GOLD NEWS

Significant reduction in gold smuggling post July import duty cut: CBIC Chief

Sun Feb 09 2025

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.

Source: https://economictimes.indiatimes.com/