Saturday, November 14, 2009

Goods Made in China Flood Indian Market

There is a huge demand in India for low-cost, less durable consumer goods, from China.

So in order to escape customs fees and other mandatory regulations, China smuggles goods into India through the India-Nepal border.

These goods are very popular with people who wish to buy the fake versions of their favorite brands at throwaway prices.

Both locals and tourists flock to borders like Soloni to buy everything from IPods and DVD players to warm clothes.

[Kamal, Customer]:
“I know that the products available here are made in China but the look is so good that I want to buy them. Apart from shoes, items like warm clothes, electronic items like DVD players, Ipods, and so on, are available here at low prices. I know that the life expectancy of Chinese products is low but I buy them as they fulfill my desire to own a branded product."

Smugglers take advantage of the easily accessible Indian-Nepal border and even use improper routes into India to avoid border customs.

One customs officer says Indian laws make it tough to crack down on smugglers.

[Satpal Yadav, Gorakhpur Customs Officer]:
"An individual is allowed to carry personal consumption goods worth RMB 25,000 each time he comes to India from Nepal. The individuals who know this fact often misuse it. Some people come in large groups of 8 to 10 people and while traveling in public transport like buses they divide the goods among themselves with each person carrying two goods each. Thus they make it difficult for officials to detect whether the goods are meant for personal use or are smuggled."

Another problem is customs officers not inspecting the luggage of tourists properly… as well as bribery.

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