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With slash in import duty, gold smuggling at RGIA falls by 70%

With slash in import duty, gold smuggling at RGIA falls by 70%

Time of India3 days ago
Hyderabad: Gold smuggling at Rajiv Gandhi International Airport (RGIA) has seen a sharp decline following a reduction in import duty from 15% to 6% last year and heightened surveillance.
According to data obtained through an RTI application filed by TOI with the customs department, gold seizures decreased by 68%, from 132.4 kg in 2023-24 to 42.5 kg in 2024-25. The worth of gold seized at RGIA during 2024-25 is Rs 32.11 crore. On the other hand, cigarette seizures experienced a threefold increase, rising from 54 cases in 2023-24 to 175 cases in 2024-25.
The RTI data shows that in the previous fiscal, authorities apprehended 133 flyers involved in gold smuggling, down from 240 in 2023.
Whenever a passenger is caught smuggling goods, including gold, the case is investigated and a showcause notice is issued under section 124 of the Customs Act, 1962, says the RTI reply.
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"Passenger profiling, baggage scanning, deployment of officers for monitoring, and coordinating with intelligence agencies have helped prevent smuggling of gold and other goods. We have a staff of 96 in the office of deputy/assistant commissioner at RGIA," said AV Ramana Murthy, deputy commissioner, customs, RGIA.
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The majority of smuggled gold originates from West Asian cities, such as Jeddah, Sharjah, Dubai, Muscat, Kuwait, and Bahrain, with passengers attempting to conceal gold in various forms such as paste, capsules and garments.
During screening, authorities have also discovered gold hidden in passengers' rectums. In one incident reported on June 25, 2024, RGIA customs officials seized 806 gm of gold worth Rs 58.8 lakh from a passenger arriving from Abu Dhabi, who had hidden it inside his rectum.
The current market rate for 24-carat gold in Hyderabad stands at approximately Rs 1 crore per kg, indicating that a smuggler can potentially gain Rs 5 lakh to Rs 6 lakh per kg of gold. Usually, gold is cheaper by 5% to 7% in countries like the United Arab Emirates (UAE) and Qatar.
Under customs regulations, passengers can carry gold, including jewellery, up to a maximum limit of 1 kg in their baggage. For jewellery owned for more than one year, male travellers are permitted a duty-free allowance of up to 20 grams, whilst female passengers can bring up to 40 gm without paying customs duty as part of their legitimate baggage.
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