The World Gold Council estimated that 200 tonnes of gold was smuggled in 2014 to India, which closely competes with China for being the title of the largest consumer of the metal in the world.
But experts believe that gold smuggling is beginning to wane since the Government in November abolished a rule that required importers to keep apart 20 per cent of their purchase for re-export.
Now the 10 per cent import duty – which the Government had increased in a series of steps from 2 per cent in March 2012 – is the only other major control in the trade of the gold metal.
Already, the commission for carrying smuggled gold has fallen. An official from the Kerala’s Customs office said that the rate for carriers has come down to about ?20,000 per kg of gold from about ?30,000 a year ago.Carriers have used all kinds of methods to conceal gold; from hiding it inside laptops or under wigs to ‘installing’ it inside a mobile phone and mixing gold dust with coffee powder. The most effective method, for decades, has been to put it up the rectum.
“We often work on tip-offs. We also keep a tab on frequent flyers or those who make quick return journeys,” says the official from Kerala. Of late, there has been increasing involvement of airline crew and ground-handling staff. Further, as the Customs check is limited to international flights, often the gold is left behind in the aircraft and collected only once the flight operates on the domestic route.
From the aircraft, a ground staff then collects it, putting the gold bar or biscuit in a waste bag. The consignment often changes hands in toilets, which unlike other parts of the airport have no security cameras.
24/02/15 Prince Mathew Thomas/Business Line
But experts believe that gold smuggling is beginning to wane since the Government in November abolished a rule that required importers to keep apart 20 per cent of their purchase for re-export.
Now the 10 per cent import duty – which the Government had increased in a series of steps from 2 per cent in March 2012 – is the only other major control in the trade of the gold metal.
Already, the commission for carrying smuggled gold has fallen. An official from the Kerala’s Customs office said that the rate for carriers has come down to about ?20,000 per kg of gold from about ?30,000 a year ago.Carriers have used all kinds of methods to conceal gold; from hiding it inside laptops or under wigs to ‘installing’ it inside a mobile phone and mixing gold dust with coffee powder. The most effective method, for decades, has been to put it up the rectum.
“We often work on tip-offs. We also keep a tab on frequent flyers or those who make quick return journeys,” says the official from Kerala. Of late, there has been increasing involvement of airline crew and ground-handling staff. Further, as the Customs check is limited to international flights, often the gold is left behind in the aircraft and collected only once the flight operates on the domestic route.
From the aircraft, a ground staff then collects it, putting the gold bar or biscuit in a waste bag. The consignment often changes hands in toilets, which unlike other parts of the airport have no security cameras.
24/02/15 Prince Mathew Thomas/Business Line
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