MUMBAI: Indian Directorate General of Intelligence has seized around 161 kg of gold in the past four days.
The agency seized 88 kg of gold in Siliguri, which was being brought in from Myanmar. A consignment from a Gulf country with 57 kg gold was seized at the Delhi Airport, while two seizures were made in Tamil Nadu.
“One consignment of 7 kg and another consignment of 8 kg were being smuggled through the sea route via the East Coast to the Southern State,” a DRI official said, adding that both consignments originated in Sri Lanka.
Despite the removal of restrictions such as the ‘80:20 scheme’ , smuggling is still an attractive option because of the demand and supply mismatch as well as the difference in domestic and international prices.
The 80:20 scheme was introduced in 2013 and scrapped last year. It prescribed that any entity importing gold had to re-export 20 per cent of it in value-added form.
India levies an import duty of 10 per cent, while neighbouring countries, such as Sri Lanka, have a lower duty.
Though the exact quantum of smuggled gold is not known, officials believe that the ratio of gold seizures versus smuggled gold could be 1:3.
Also, smuggled gold forms almost one-fifth of legal imports. The World Gold Council estimates that around 175 tonnes of gold was smuggled into the country in 2014, while legal imports stood at around 850 tonnes.
Tax intelligence officials are increasing surveillance outside airports as porous borders on land and water offer alternative routes to smugglers.
Also, new points of origin, such as Sri Lanka, are now being used to smuggle gold via the Southern States.
Meanwhile, legal imports have risen significantly despite the high duty. A senior Finance Ministry official said the increase in imports is expected to improve indirect tax (custom/import, excise duties and service tax) collections.
