Customs procedures at airports: Do you have anything to declare?

By Neha KishoreAnyone who has travelled internationally would have noticed the words ‘Red Channel’ and ‘Green Channel’, written in big bold letters, at the arrival terminals of international airports. But how many of us understand what this actually means and what is expected from incoming passengers?Essentially, the Red Channel and Green Channel system is a self-declaration mechanism under the Customs law. It is designed to allow passengers entering India to declare what they are bringing into the country.Red Channel is to be used by passengers who are bringing in restricted, prohibited or dutiable goods and require incoming passengers to stop, make relevant declaration(s), and after receiving clearance (which may range from payment of applicable Customs duty to confiscation of goods), exit from the airport terminal. Green Channel on the other hand, is for passengers who have nothing to declare; walking through the Green Channel is, in effect, a declaration that the passenger is not carrying any prohibited or restricted items and that the goods being brought is within limits prescribed under the Baggage Rules, 2016.Passengers are required to familiarize themselves with what is permissible v/s what is not and which channel is most appropriate for them.Under the Baggage Rules, the duty-free allowance for an Indian resident or foreigner residing in India or a tourist of Indian origin arriving from abroad is capped at INR 50,000, (INR 15,000 when the passenger is arriving from Nepal, Myanmar and Bhutan other than land or is a tourist of foreign origin). It is a common thing, especially for the first time international travelers, to bring back many gifts for their friends and families. Given the current exchange rate(s), this threshold of INR 50,000 may be crossed easily.Import of gold, gold bars and coins as well as silver is tightly controlled and is required to be mandatorily declared.Drones are restricted items and require additional approvals. Carrying more than one laptop also attracts Customs duty.Authorities have effectively communicated expectations to passengers through in-flight forms, airport signage, and available helpdesks, facilitating smooth operations and addressing passenger concerns; however, challenges persist.In this context, one area which may merit consideration with the upcoming Budget is rationalisation of passenger’s baggage allowance. Routine travel purchases today often exceed the prescribed threshold; an upward revision would be a pragmatic measure, better aligned with current price levels and travel behaviour.Recently, an allegation of corruption and harassment was made by Wintrack Inc., a logistics company, against the Customs authorities in Chennai. The Customs authorities have refuted the allegations and said that shipments were stopped due to misdeclaration and misclassification of goods. While the rift between Wintrack Inc and the Customs authorities is still ongoing, the Board has decided that Customs officers at arrival stations will now have body worn cameras. The purpose, to record interactions with passengers. The objective, to alleviate fears of passengers of any kind of harassment from the Customs officers and also protect the Customs officers against any false accusations by the passengers.In conclusion, while the authorities have done and are continuing to do their part, it is also the responsibility of the passengers to make themselves aware of the rules and the declarations required to be made by them. Understanding of the customs procedures at airports is essential for all travelers and the distinction between the Red and Green Channels plays a crucial role in facilitating smooth entry into the country.(Neha Kishore is a tax partner at EY India)