Smuggled Gold Seizure Soared 23% in Q2 2019

SEATTLE (Scrap Monster): The seizure of smuggled gold has recorded significant surge during the three-month period from April to June this year. The smuggling acts are feared to rise further in the upcoming months.

According to government sources, the seizure of smuggled gold by Indian customs officials totalled 1,197.7 kilograms during the quarterly period from April-June this year. This is significantly higher by 23.2% when compared with the seizures during the corresponding quarter a year before. The illegal gold trade is likely to increase further in the coming months, mainly due to lifting of gold import tax from 10% to 12.5% in the Union budget, which in turn would increase smugglers’ margins.

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DRI officials stated that duty difference has been encouraging people to smuggle in gold from the Middle East. The rising gold prices have made smuggling more lucrative. The illegal trade is unlikely to decline unless the government lowers the import duty and sales tax on the yellow metal.

It must be noted that DRI officials are conducting raids on gold traders in Mumbai Zaveri Bazaar Market since the past few days. Unofficial reports claim that huge quantities of the metal were seized from certain traders, who are alleged to be part of the gold smuggling gang. DRI officials declined to comment on the matter.