Customs & Indirect Taxes (IANS) 
Chennai

Duty hike: Customs gear up for surge in gold smuggling, up surveillance at Chennai airport

Officials now fear that the latest hike which took the duty back to 15 per cent could once again increase the gold smuggling

DTNEXT Bureau

CHENNAI: Amid fears of a surge in gold smuggling through Chennai after the Union government increased the Customs duty on imported gold to 15 per cent from 6 per cent, officials at Chennai airport have stepped up anti-smuggling surveillance.

Customs authorities have deployed additional officers and staff at the airport's international arrival and departure terminals to strengthen checks on passengers, especially those arriving from Gulf and Southeast Asian countries. The Air Intelligence Unit of Chennai Customs has also been reinforced with extra personnel, including additional women officers.

Officials are monitoring flights arriving from Dubai, Abu Dhabi, Singapore, Malaysia, and Hong Kong, which have been identified as major routes for gold smuggling into Chennai. According to Customs officials, gold smuggling through the airport here had increased sharply in 2022 after the Centre previously raised import duty on gold to 15 per cent. Large quantities of smuggled gold were seized at the airport during that period.

However, when the Finance Ministry reduced the duty to 6 per cent in July 2024, gold smuggling cases at Chennai airport declined significantly. Instead, the smuggling networks then shifted focus to narcotics, e-cigarettes, and premium electronic goods.

Officials now fear that the latest hike which took the duty back to 15 per cent could once again increase the gold smuggling. Customs authorities said surveillance has been intensified not only for inbound passengers suspected of carrying smuggled gold, but also for outbound travellers over possible hawala money movement from Chennai to foreign countries.

A senior official said, smugglers often approach unsuspecting passengers at foreign airports, especially in Dubai, Abu Dhabi, Singapore, and Malaysia, requesting them to carry bags or parcels to Chennai by claiming that relatives would collect them upon arrival.

Officials advised passengers against accepting luggage or parcels from unknown individuals, as the items could contain smuggled gold, contraband, or other hazardous materials.

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