Gold smuggling all-time high

In the absence of an appropriate import policy on gold, Bangladesh is being used as a transit point for smuggling of the precious metal.
The detection of smuggling bids this year has crossed all past records.
Jewellers, police and customs officials said gold is entering the country through aerial routes and being smuggled out to neighbouring India by road.
According to them, most of the smugglers use the Dubai-Singapore-India route via Bangladesh.
"A record 348 kg of gold bars, worth Tk 1.453 billion, were seized from Hazrat Shahjalal International Airport (HSIA) in the capital in the current calendar year so far," Commissioner of Customs at the HSIA Zakiya Sultana told the FE.
She said two Indian nationals were arrested with 5.5 kg smuggled gold bars at the HSIA Saturday.
"The gold smugglers use Bangladesh as a transit point and such smuggling has increased in recent times," she said.
She said: "Over the last one year, use of gold jewellery has declined in Bangladesh but the incidence of smuggling of the metal, particularly to neighbouring countries, has increased remarkably".
"India, the world's top gold consumer, raised the import duty on gold to 15 per cent from 10 per cent recently which might be a cause for increase in its smuggling," she added.
In last July the officials had seized 1,064 gold bars, weighing around 124 kg, from the luggage chamber of a Biman Bangladesh flight. This was the biggest ever gold haul at the airport in the 42-year history of Bangladesh, according to the customs office.
President of Bangladesh Jewellery Manufacturers and Exporters Association (BJMEA) Anwar Hossain told the FE that the gold smugglers come by airways and smuggle out the precious metal by road.
Border areas like Benapole in Jessore, Tamabil in Sylhet, Hilli in Dinajpur, Shyamnagar in Satkhira, are being used as transit points for the smugglers, he said.
Secretary General of Bangladesh Jewellers' Samity (BJS) Dewan Aminul Islam told the FE that everyday a sizeable quantity of illegal gold enters the country through the airports but a small quantity of the same gets into the local bullion market.
He said not only the HSIA but also Sylhet Osmani International Airport and Chittagong Shah Amanat International Airport are also used for gold smuggling.
He said the lack of an easy import policy is encouraging illegal gold business which is depriving the country of a large amount of revenue.
The jewellers the FE interviewed urged for a proper import policy on gold to help curb smuggling and thus facilitate smooth business of gold.
According to the BJMEA, Bangladesh's annual demand for gold was 17 tonnes (1 tonne = 1000 kg) five years back which has now come down to 12 tonnes.
A number of customs officials said law enforcers can hardly seize even 5.0 per cent of the total gold usually smuggled into the country.
Sources said in the last few years more than 4,000 people, including smugglers, airline crew, civil aviation officials and Ansar, were arrested for their involvement in gold smuggling.