‘Demands can be 10-50% of the shipment value’: Trader says going against customs is a lose-lose battle

Paying Rs 30,000 for a free sample might not make much sense, but that’s what happened when a business wanted to get their $80 free sample released from the customs department. Business-owners, small and big, are taking to social media to share how they were made to unfairly pay up to get their consignments released. This comes after a Tamil Nadu importer spoke up about the bribery claims by the Chennai Customs, prompting the Finance Ministry to order a probe into the matter.

Scholar at Takshila Institute, Yusuf Unjhawala, who also trades in fasteners, said the import-export business is rather painful. He said that Quality Control Orders (QCOs) and the Bureau of Indian Standards (BIS) have made life merrier for the customs department. 

“From own experience and hearing from other importers, demands can be 10-50% of the shipment value. Or they threaten to put shipments for scrutiny. That is time consuming, it costs in demurrage and loss of business. So we have no option but to settle,” he acknowledged, agreeing that it is also rather difficult to win against the state, especially if one is a small business. 

“Just last week I met the purchase officer of a customer. The topic of customs came up as we discussed price increase. He agreed it’s a pain. Then went on to narrate how recently they were harassed to clear an $80 free sample and paid Rs 30,000!” he said. 

An X user pointed out that this is not corruption but extortion, while another said such incidents happen mostly to small businesses who are not fully aware of the system. “Bribery has been legalised through complicated rules which are difficult for people to understand. So the system says pay a bribe & they sort it out and if you refuse then they find loopholes & target your business. Either way you are doomed,” said another user. 

Entrepreneurs and business owners have taken to social media to vent their frustration after an importer from Tamil Nadu, Wintrack, announced that they are shutting import and export operations in India. “From October 1, 2025, our company will cease import/export activities in India. For the past 45 days, Chennai Customs officials have relentlessly harassed us. After exposing their bribery practices twice this year, they retaliated, effectively crippling our operations and destroying our business in India,” said the company. 

A furore ensued after which the Chennai Customs, in a statement, called the allegations baseless, and added that the Prawin Ganeshan, the founder of the company, “has an established pattern of making unsubstantiated allegations of corruption and bribery on this platform, only to delete such posts once factual rebuttals are provided by this department”. Ganeshan responded that he paid over Rs 2 lakh in bribes, and kept the receipts.