Rising Gold Smuggling Incidents: A Growing Concern for India

Rising Gold Smuggling Incidents: A Growing Concern for India

Asif Iqbal | October 25, 2023 | 09:06 PM IST | India | Follow on Google News

Rising Gold Smuggling Incidents: A Growing Concern for India.image/ndtv

Smuggled gold seizures are on the rise, posing a significant challenge to Indian authorities. Between April and September, there has been a staggering 43% increase in gold seizures, with the total reaching 2,000 kilograms. Most of this illicit yellow metal enters India through its land borders, particularly from Myanmar, Nepal, and Bangladesh. This alarming trend has caught the attention of the Central Board of Indirect Taxes and Customs (CBIC), and its Chairman, Sanjay Kumar Agarwal.

Escalating Gold Smuggling: A Deepening Crisis

The scale of gold smuggling incidents in 2023 is a cause for concern, as the seized amount during the same period last year was only 1,400 kilograms. According to Mr. Agarwal, these precious contraband goods are being funneled through land borders, primarily from neighboring countries.

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The increase in smuggling cannot be attributed solely to changes in the duty structure; it is also influenced by the ever-fluctuating gold prices in both the international and domestic markets.The CBIC is actively working to combat this surge in gold smuggling, focusing on all possible entry points, be it land borders or airports. They employ various strategies, including passenger profiling, risk-based interdiction, cargo inspections, non-intrusive examinations, and coordination with other law enforcement agencies.

The Demand-Driven Gold Smuggling Conundrum

India’s unceasing demand for gold, coupled with import duties on legal imports, has contributed to the rise in smuggling activities. The basic Customs Duty rate on gold is 12.5%, with an additional 2.5% for the Agricultural Infrastructural Development Cess (AIDC) and 3% under the Integrated Goods and Services Tax (IGST). The cumulative tax rate reaches 18.45%, making the illicit gold market more appealing.India’s limited domestic gold production forces it to depend heavily on gold imports, including gold dore bars and refined gold.

The incessant demand for this precious metal within the country has spurred a lucrative market for smugglers. This escalating issue of gold smuggling requires not only stringent customs measures but also addressing the underlying drivers of demand.

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Asif Iqbal

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.