New Delhi, Feb 9 (PTI) Gold smuggling has reduced significantly since July 2024 when the government slashed import duty on the precious metal to 6 per cent, Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal said.

As per the latest available data, Customs and DRI officers seized 847 kg of gold worth Rs 544 crore at various airports in the April-June period of the current fiscal.

In July, the government reduced customs duty on gold to 6 per cent from 15 per cent.

"After the rate of duty was reduced on gold in the last year's budget, there is a significant reduction in the smuggling of gold," Agarwal told PTI in an interview.

Although Agarwal did not reveal the quantum or value of gold seizures, he said authorities are keeping regular watch over the international passenger traffic, porous borders, and commercial cargoes coming into the country to cut the smuggling of narcotics through any route.

Smuggling is the secret movement of goods across national borders to avoid customs duties or import or export restrictions. It typically occurs when either customs duties are high enough to allow a smuggler to make a large profit on the clandestine goods or when there is a strong demand for prohibited goods, such as narcotics or weapons.

The Directorate of Revenue Intelligence (DRI), under CBIC, is the apex agency of the Indian customs in the field of anti-smuggling in India.

During the 2023-24 financial year, DRI officers alone seized 1,319 kg of gold and smuggling through India’s porous eastern borders, particularly with Bangladesh and Myanmar, has also emerged as a major concern for law enforcement agencies.

This is part of the 4,869.6 kg of gold seized by the CBIC, including by Customs officers, in 2023-24. 1,922 persons were arrested by the CBIC during the year.

As per DRI's Smuggling in India Report released in December, India has become a major destination for illicit gold imports, with gold and silver predominantly originating from Gulf states such as the UAE and Saudi Arabia, where these metals are sourced and available at lower prices.

Gold smuggling through air routes in India remains a prominent method used by smugglers. Middle East and South East Asian countries have traditionally been the major points of origin.

Recently, African airports such as Nairobi and Addis Ababa, along with Central Asian airports like Tashkent, have also emerged as key locations for smuggling operations.

Smugglers frequently use passengers to conceal gold in innovative ways, including by hiding it in their clothing, luggage, or even within their bodies, to evade customs detection. PTI JD JD MR

Import duty reduction on gold linked to reduced smuggling; enforcement targets porous borders and air routes. Decline in illicit gold imports followed the July 2024 reduction of import duty to 6 percent, while customs reported continued airport seizures and substantial annual seizures and arrests. Enforcement focuses on international passengers, commercial cargo and porous borders-notably eastern borders-where air routes, inventive concealment methods and evolving transit hubs in Middle Eastern, South East Asian, African and Central Asian airports sustain smuggling risks.