Individual Corruption

According to Global Integrity 2006, the customs department is generally viewed as rife with corruption, favouritism and nepotism. Corruption within the department affects ordinary citizens and, consequently, the department enjoys little credibility among the general public. Furthermore, a substantial number of responding households from the Transparency International Global Corruption Barometer 2010 state that they have paid a bribe to the customs department in 2009.

Business Corruption

Companies can expect routine visits from customs inspectors and, as in many other government sectors, customs inspectors hold considerable discretion in deciding which rules to enforce and to whom these should be applied. Thus, Global Integrity 2009 reports that customs and excise laws are seldom enforced uniformly or without discrimination in practice, and some groups are likely to evade customs and excise laws due to their connections.

Time-consuming bureaucracy related to trade across borders also opens the way for public officials to demand bribes. A significant number of companies in the World Bank & IFC Enterprise Surveys 2006 report that they expect to give gifts to obtain import licences. Similarly, according to the World Economic Forum Global Enabling Trade Report 2010, trade in India is impeded by customs procedures, which remain largely inefficient. In addition, according to the report, exporting and importing require much time and paperwork to clear goods at the border, and the process is plagued by corruption and bribery.

Frequency

The World Bank & IFC: Doing Business 2012:
- A standard export shipment of goods requires 8 documents and takes an average of 16 days at a cost of USD 1,095 per container.

- A standard import shipment of goods requires 9 documents and takes an average of 20 days at a cost of USD 1,070 per container.

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in India a score of 3.8 on a 7-point scale (1 being 'extremely inefficient' and 7 'extremely efficient').

Transparency International: Global Corruption Barometer 2010:
- 39% of households who had contact with the customs administration throughout 2009 report to have paid a bribe.

World Economic Forum: The Global Enabling Trade Report 2010:
- Business executives give the transparency of border administration (pervasiveness of undocumented extra payments or bribes connected with imports and exports) in India a score of 3.4 on a 7-point scale (1 'non-transparent' and 7 'transparent').

Trace International: Business Registry for International Bribery and Extortion – India Report 2009:
- Of the total reported bribe demands at the national level, 13% was from the national office of customs.

Transparency International: Bribe Payers Index 2008:
- Business executives give the customs a score of 3.3 on a 5-point scale (1 'not at all corrupt' and 5 'extremely corrupt').

The World Bank & IFC: Enterprise Surveys 2006:
- 46% of companies report that they expect to give gifts to obtain an import licence.