Curbs on import spurred gold smuggling in Kochi.

KOCHI: Ever since the Centre clamped restrictions on gold imports in June 2013, smuggling of the yellow metal has gone up manifold. In order to smuggle in gold in large quantities via Cochin international airport, smugglers have resorted to various innovative modus operandi, what with 80.9 kg of gold worth Rs 22 crore being seized by the intelligence wing of the airport over the last one year. In sharp contrast, gold seized during the 2011-12 period was 6.14 kg while it was a mere 2.39 kg in 2012-13.

A total of 141 cases were registered during the period between May 2013 and May 2014 for smuggling gold. While 27 persons were arrested in connection with the cases, charges under COFEPOSA (Conservation Of Foreign Exchange, Prevention Of Smuggling Activities) Act were registered against one person. And this could well be the tip of the iceberg. Several incidents of smuggling have came to light of late with the Union government deciding to change the pattern of Customs duty collection by the end of April 2013. The government had then decided to fix the Customs duty for gold according to its value. "Till then, customs duty had been decided on the basis of the weight of gold.

Since the value based system came into existence, the amount to be paid as tax went up manifold due to frequent increase in the price of gold," said S A S Navaz, deputy commissioner of customs, air intelligence wing, Cochin International Airport. The smugglers, meanwhile, turned increasingly creative in their attempt to escape Customs checking. Gold that was smuggled in took various forms - as liquid, wires and even as a mixture with chocolate powder. "Smugglers also use the hawala network to accomplish their task. Members of the network would approach persons working abroad and offer to send their family an amount which they intend to send home. In return, the agents take payment from the persons abroad in foreign currency. This helps them avoid the risk of carrying cash to foreign countries to buy gold. The buyers are usually jewellers. The jewellers would give the money required for purchase of gold in advance. The smugglers would then pay this money to the families of expatriates," Navaz added.

Source : timesofindia.indiatimes.com