What do you mean by smuggling?
Smuggling is a criminal offense as it involves transfer of goods, especially from one country to another, without paying the necessary price for the goods or transferring the goods illegally and the goods which are not allowed to be sold. Goods like this usually have high customs or excise duties.
This is why people smuggle them so that they do not have to pay that high amount of excise duties or taxes. Basically, these types of goods are secretly moved.
In order to be saved from the duties and taxes people smuggle these goods so that they do not have to pay the duties on it but instead they get profit from it.
People smuggle these goods when such goods are demanded highly but it is not easy to get those goods. So, in order to fulfill those demands, the goods are smuggled.
Usually the goods which are smuggled are drugs or weapons or which are harmful and injurious to the health and welfare of the public.
This is why people are checked properly when they cross the borders so that there is no illegal transfer of goods.
For this purpose, the government keeps special agents to find out if people are involved in smuggling or not. In some places the agents cannot randomly check the people.
They need to have the special warrant or authority to search the people and their belongings.
What are the causes of smuggling?
There are many causes or factors due to which people involve themselves in smuggling. The main reason for smuggling is that people think just about their profit by transferring of the illegal goods.
If they do not smuggle these goods illegally, they believe they will not get so much profit if the goods are transferred within the boundaries of the law.
Different countries charge differently for the goods or for their transfer. Some charge higher taxes on the goods while some charge less.
This means that the same goods will have different price in different countries. In order to make up the price of the goods, people transfer and sell these goods by smuggling.
Sometimes the government of different countries put different amount of tax. So anyone who is transferring or selling goods there will have problem.
This also affects the people to involve in smuggling. The government applies high taxes and rate tobacco and alcohol.
This is why people smuggle them. There some protective policies for the local industries. This actually encourages these industries to smuggle.
As the business circle involves costly employment legislation and business licensing, some people do not like work to work within this business circle.
This encourages the people to smuggle the goods. People also smuggle the goods so that their home country does not face any conflict, disaster or poverty because of the goods which are not sold and prohibited.
What are the effects of smuggling?
Smuggling actually happens to get saved from the high taxes and duties that are implied on the goods. So, if those goods are smuggled there is a loss of revenue. This is a loss for the government as they will not be able to generate revenue for the welfare of the public.
The market prices get distorted because of smuggling. The smuggled goods are obviously sold in cheap price compared to the other goods sold in the market properly.
So due to this there is no competition in the market. The local industries collapse as because of smuggling the price of the goods which are produced by the local industries gets reduced.
This destroys the local market. As there is unfair competition and the industries collapse even the labour market that is employment also gets battered.
The production experiences a great slowdown, consumer spend less. There is bankruptcy and the tax collected also becomes less.
Sometimes when smuggling increases, the government reduces the tariff rates. When the government reduces the tariff rates on the goods, even the smuggling activities gets reduced.
It gets reduced because they do not have to pay high amount of taxes as the taxes and tariff rates applied by the government is also reduced.
The used clothing, shoes, agricultural products, jewelleries, second hand or luxury cars, garments and ceramic tiles all of them fill the local market. This reduces the income and earning of the small traders who are disciplined and honest in their work.
The local economy gets reduced because of smuggling. Poverty exists in the country as almost most of the local industries get closed.
Even the agricultural production, jobs loss, loss of government revenues, risk in the welfare of the consumer, no competition or unfair competition, increase in the corruption in the bureaucracy, happens all because of smuggling.
In some places smuggling has become a problem for some of the goods. These goods include petroleum, fuels, sugar, steel, wood, bicycles, leather, textiles, chemicals, and cigarettes.
As smuggling is a problem for the local business, there is inequality.
Not only this, the goods which are produced in the local market are replaced by the goods which are smuggled, that is, illegally imported. Moreover, the domestic industries’ profit margins and employment gets negatively affected.
Evils of smuggling
Even though smuggling is a crime, many people have still managed to get themselves involved in smuggling during their entire life. They have risked their lives by doing illegal activities like smuggling.
Even though they took the risk, they have also enjoyed their life by these activities.
Some these people include Frank Lucas, Jose Figuero Agosto, Nicky Barnes, Paul Lir Alexander, Freeway Rick Ross, Rafael Caro Quintero, Joaquin Guzman Leora, Griselda Blanco, Carlos Lehder, Amado Carrillo Fuentes and Pablo Escobar.
Frank Lucas earned almost $50 million by smuggling heroin. Agosto made $100 million by trafficking drugs. Nicky Barnes sold heroin and was able to earn around $105 million dollars.
Paul Lir Alexander earned $170 million by the sale of cocaine.
Freeway Rick Ross smuggled crack cocaine and earned around $600 million. Rafael Caro Quintero earned around $650 million by murdering many people who were involved in his business of drug dealing. Joaquin Guzman was involved in smuggling heroin.
His net earnings in this business were around $1 billion. Griselda Blanco was a gangster and drug trafficker and earned almost $2 billion. Carlos Lehder was very influential drug dealer.
His earnings were around $2.7 million. Amado Carrillo Fuentes earned over $25 billion smuggling huge amounts of cocaine. Pablo Escobar was involved in exchanging lead, silver for bullets. This business made his earning around $30 billion.
Solution to smuggling
In most places smuggling takes on a large scale because no strict actions have been taken against this illegal activity and the people who are involved in activities like these.
The smuggled goods are found almost everywhere, major cities and tribal areas as well. In such places, there are separate markets for goods like these.
They are set apart. No matter how many policies are set up by the government to eradicate smuggling, this illegal activity does not end.
The tasks to eradicate show that removing the illegal activity of smuggling is not a priority of the government.
If the government wants to stop smuggling then such people should be given this responsibility who will be honest and reliable to do this work.
But it is very difficult and rare to get such people. But it is important to find out the people who are the culprits for such illegal activities present in our society.
If the culprits are found and given punishment, it would be great service and help in the welfare of the public as well.
The places where smuggling can take place, entry to all such places should be closed and no one should be allowed to go such places. Officials who check the people and the goods must be honest.
Moreover the checked goods should have a particular mark so that it will show which official had checked those goods.
This will further help to find if the official working for the government to eradicate this illegal activity are honest or they working for their own benefit.
If the goods are found to be smuggled, then that official will be in problem who gave the permission to transfer those goods.
On the other hand, if any official who finds the smuggled goods while checking or inspection, and then they should get rewards for doing such good work.