Indian airport reports drastic decline in gold seizure incidents

NEW DELHI (Scrap Monster):  According to Customs Department data, the seizure of smuggled gold at the Mumbai International Airport has reduced by more than 50% during the fiscal year 2016. The sharp decline in seizure incidents is mainly on account of the Indian government’s decision to scrap the 80:20 gold import scheme. Incidentally, the scheme was a restriction on importers of gold, making it necessary for an importer to export at least 20% of the gold from previous import, before making new import.

Following the imposition of 80:20 gold import rule in August 2013, there was a sudden surge in volume of gold seized at airports across the country. In Mumbai International Airport alone, 345 kilograms of smuggled gold were seized by the Customs Department and Directorate of Revenue Intelligence (DRI) officials during 2013-’14. This is significantly higher when matched with just under 65 kilograms seized during 2013-’14. The quantity of seized gold almost tripled to 923 kilograms during 2014-’15.

With the government scrapping the 80:20 import restriction in November 2014, there was a sudden decline in gold seizures. The data released by the Air Intelligence Unit (AIU) under the Mumbai Customs Department indicate that gold seizures dropped considerably during 2015-’16 to as low as 355 kilograms. Furthermore, this number has reduced to 87 kilograms during the initial nine-months of the current fiscal 2016-‘17. Also, only 2.5 kilograms of gold were seized during December. The quantity of seized gold is unlikely to increase much during the remaining three months of the current fiscal.

On the other hand, increased number of gold smuggling attempts was busted by officials at the airport over the past three days. A total of 8.26 kilograms of gold worth INR 2.3 Crores were seized from three passengers.

A passenger hailing from southern state of Kerala was caught at the airport on Saturday while attempting to smuggle cylindrical-shaped gold hidden in the motor of portable car washing machine. The seized gold was worth INR 61 lakhs, weighing approximately 2.2 kilograms. The passenger who arrived from Dubai by the Emirates Airways flight EK 506 was taken into custody for interrogation. Upon interrogation, the passenger admitted that he was used as a carrier to hand over the smuggled gold to another person for a hefty commission. Acting on the information, officials also nabbed the intended receiver of gold.

In the second incident, a passenger who arrived at the airport from Sharjah by Air Arabia Airways flight number G9 401 was interrupted by Customs officials. Two pieces of crude gold weighing over 1 kilogram were recovered from him. The gold, valuing at around INR 27 lakhs, was found hidden in electric mixer grinder.

In addition, 13 gold bars and two cut pieces of gold bars were seized from a passenger who had arrived at the airport from Dubai by Air India flight number AI 984 early morning today. Each of the 13 gold bars weighed 10 grams each, whereas the cut pieces weighed around 1.6 kilograms. The combined value of seized gold amounted to INR 44 lakhs, according to Customs officials.