NEW DELHI: July 2015 saw a mere 24 kg gold being smuggled in, the lowest in two years, thanks to the Dubai markets being closed for a five-day period after Ramzan, international prices crashing, and better surveillance at the airport following the involvement of senior airline and airport staff in the crimes being revealed.
Mumbai airport had witnessed the attempted smuggling of 150 kg of gold in between January and June. “With international prices crashing, the margins have disappeared, making it less attractive,” said A P S Suri, commissioner of customs at Mumbai airport, to explain the change. Of late, gold prices have fallen from Rs 28,000 per kg to Rs 23,500 per kg.
Customs officials had other reasons to cite as well. “July saw a lull because of Ramzan, which led to the closure of markets in Dubai. It will start picking up again from mid-August when the south Indian wedding season kicks off,” an official said.
“With prices down, gold has lost its shine as there are other lucrative items like narcotics and red sanders which give smugglers a higher margin,” Suri said, adding that what was worrying revenue intelligence officials was an increase in the airlines’ involvement.
“The latest to be involved are insiders. It is not just low-income or financially constrained employees, but well-educated, mid or even high level employees. This is our biggest nightmare,” said a senior official.
With better surveillance, however, customs officials have managed to spook airport staffers. “The recent arrest of the head of security for Etihad Airways has spread fear among many who’d been involved in smuggling,” a batch officer said.
Milind Lanjewar, additional commissioner, Customs said smuggling increases with demand in the market. “It increased when the duty went up to 10%,” Lanjewar said, adding that after the introduction of the 80:20 scheme in July 2013, smuggling compensated for the reduced legal channels of import. “After the 80:20 scheme was withdrawn, smuggling went down,” he said. The scheme was scrapped in November end last year.
DRI and customs on an average register about five cases of gold smuggling every day. The number increases to 12-15 on some days.
