Smuggling in 'Money of Kings'

Bangalore: Due to the rules imposed this year to cut a high trade deficit and a record duty on imports, gold dealers and individual customers today are fanning out across Asia to buy gold, which is also called ‘the money of kings’, and sneak it back into the country, as reported by DNA.

Gold smuggling has jumped significantly in 2013, after a series of import tax hikes, obscure export rules and outright quotas have made it difficult to trade the precious metal openly. Smugglers are adopting the methods of drug couriers to sidestep a government crackdown on imports of the precious metal, stashing gold in imported vehicles and even using mules who swallow nuggets to try to get them past airport security. They even go to the extent of painting gold staples grey in order to sneak through the gold smuggled from countries like Sri Lanka, Thailand, and Dubai, the traditional source of smuggled gold. From travelers laden head-to-toe in jewellery to passengers who conceal carbon-wrapped gold pieces in their bodies - in the mistaken belief that metal detectors will not be set off - Indians are smuggling in more bullion than ever, government officials say, driven by the country's insatiable demand for the metal.

Industry experts say that the Indian government attempts to calm a robust flood of gold imports with blunt policy instruments and import duty hikes this year have actually boosted gold smuggling into the country. "Gold and narcotics operate as two different syndicates but gold smuggling has become more profitable and fashionable," said Kiran Kumar Karlapu, an official at Mumbai's Air Intelligence Unit. "There has been a several-fold increase in gold smuggling this year after restrictions from the government, which has left narcotics behind."