Logistics Firm Quits India Citing Customs Harassment: What Happened?

Chennai-based logistics company Wintrack Incorporated has announced it's shutting down all its import-export services in India from October 1, 2025. The company claims relentless harassment and bribery demands from Chennai Customs officials have ruined their business after they exposed corruption twice this year. The Finance Ministry has ordered an investigation, but the founder details a dispute over a shipment of massagers, undeclared charging cables, and compliance rules, leading to delays and penalties.

The Wintrack Shutdown Announcement

Wintrack Incorporated, a logistics company based in Chennai, made a significant announcement on social media: they are ceasing all import-export operations in India starting October 1, 2025. The company stated on the social media platform X that they have faced continuous harassment from Chennai Customs officials for the past 45 days. According to Wintrack, this harassment began after they exposed the officials' alleged bribery practices twice this year, leading to retaliatory actions that have crippled their operations and ruined their business in India. They expressed gratitude to those who supported them during this difficult time. Their social media bio was updated to reflect their experience: "Exposed Chennai Customs bribery. Faced retaliation. Business ruined. Corruption won. They can destroy our business, but not our voice."

Government Response and Investigation

Following Wintrack's announcement, the Finance Ministry responded swiftly. The Ministry acknowledged the matter raised by Wintrack and ordered the Revenue Department to conduct a fair, transparent, and fact-based investigation. This indicates the government is taking the allegations seriously and intends to look into the situation.

The Core Dispute: Massagers and Charging Cables

Praveen Ganeshan, the founder of Wintrack Incorporated, explained the origin of the dispute. The issue began with a shipment of massagers, which he described as sexual wellness products, not explicit toys. These products are commonly sold globally. Wintrack helps import goods from Chinese and Thai e-commerce sites to India, offering doorstep delivery.

Ganeshan stated that the customs department questioned why charging cables were not separately declared, even though they are an integral part of the massager. He also mentioned that the company faced initial requests for Extended Producer Responsibility (EPR) and Legal Metrology Packaged Commodity (LMPC) compliance, which caused delays and penalties. He believes there are loopholes in the law that officials exploit for personal gain.

• EPR (Extended Producer Responsibility): Companies take responsibility for the lifecycle of their products, including waste management and recycling.
• LMPC (Legal Metrology Packaged Commodity): This relates to legal standards for product packaging, labelling, and weight.

Wintrack's stance is that the charging cable is part of the product and essential for its function. Customs, however, treated it as a separate item, sparking the conflict.

Customs Department's Counter-Narrative

The Chennai Customs department offered a different perspective. They stated that the declared Harmonized System (HS) code for the goods was incorrect. The importer had admitted to a mistake on September 1, 2025. During inspection, eight boxes of USB charging cables were found, but they were not listed on the bill of entry, invoice, or packing list, which is a violation of Section 111 of the Customs Act, 1962.

Customs also pointed out that the massagers contained rechargeable batteries, making EPR registration under the Battery Waste Management Rules, 2022, necessary. Despite multiple requests, the importer allegedly failed to provide a valid EPR certificate and submitted incorrect documents. Authorities denied any bribery demands and stated that a bond was granted on September 11 to avoid demurrage charges, which are incurred when shipments are held at the port beyond the free time.

Allegations of Bribery and Retaliation

Despite the official statement, Ganeshan shared images of transactions on X, claiming they were bribes paid to officials. He detailed a timeline of events:

• January: A shipment valued at $1300 faced an alleged bribe demand of 8 lakh rupees. After Ganeshan recorded and posted the conversation online, the shipment was released.
• May: Three shipments were held up, with demands from SIB assessment and shed officers. Ganeshan claims he paid 3 lakh rupees but couldn't meet the full demand. The shipment was released.
• June: While Ganeshan was in China, another shipment was stopped because the shed officers allegedly did not receive their share. After negotiations, a compromise was reportedly reached, but Ganeshan refused to pay further due to prior losses. He posted proof online, and the issue was resolved, but he did not delete the post this time.

Ganeshan further alleged that even after forming a new company under his wife's name to distance himself, the demands continued. He claims that shed officers began finding faults with every subsequent shipment. By August, the situation escalated, and despite meeting officials and offering to stop complaining on social media, the harassment persisted.

Wintrack's Decision and Future Options

Frustrated by the continuous cycle of demands and alleged harassment, Ganeshan decided to cease operations in India. He stated that he has businesses in Thailand, China, and Nepal and would not be significantly impacted by closing his Indian operations. He believes officials are planning further retaliation, such as raids or personal attacks, but he is prepared for it now that the issue is public.

Broader Implications and Political Reactions

The Central Board of Indirect Taxes and Customs (CBIC) reiterated that the issue stems from the importer's incorrect declarations and classification, and Chennai Customs had already responded. They stated that all facts would be investigated. Senior customs house agents noted that this issue highlights broader problems with doing business at Indian ports, where regulations like BIS, LMPC, and EPR can cause significant delays. While these rules are meant for safety and environmental protection, the line between strict enforcement and harassment can become blurred. The situation also drew political attention, with Congress MP Shashi Tharoor commenting on the pervasiveness of corruption, which many companies accept as a cost of doing business.

Other News: India's LPG Imports from the US

In other economic news, India is planning long-term Liquefied Petroleum Gas (LPG) imports from the United States. This move is a response to disruptions in global LPG supply caused by the US-China trade war. Government oil companies aim to import three large LPG ships from the US monthly starting in 2026. This is significant as India imports 60% of its LPG needs, serving over 33.1 million households. Traders note this would be India's first long-term agreement with US suppliers. The trade dispute has affected LPG prices and availability, with China shifting its purchases to West Asian countries, making US LPG more affordable.