Agencies find rise in gold smuggling after import duty hike

Officials from the Directorate of Revenue Intelligence said smuggling networks often operate with what the agencies describe as a “seasonal approach” – moving products that bring them higher profits. Image is for representational purposes only.

Gold has again come under the scrutiny of law enforcement agencies at Hyderabad’s Rajiv Gandhi International Airport, with officers involved in surveillance and detention operations noting a pattern of increased smuggling attempts following a recent increase in import duty and a surge in domestic prices of the precious metal.

Officials from the Directorate of Revenue Intelligence and Customs said passenger profiling, seizure analysis and apprehension trends over the past few months indicate a renewed shift by organized syndicates to smuggle gold through air routes, particularly from Gulf countries and parts of Africa.

The trend comes after the Union government raised import duty on gold and silver to 15% from 6% in a move aimed at curbing overseas purchases and reducing pressure on the country’s foreign exchange reserves. Officials said the widening gap between international and domestic prices has again made gold smuggling profitable for syndicates, transporters and handlers.

“Gold is now very much under our radar as seizure patterns clearly indicate an increase in attempts following the import duty change and price hike,” said an officer involved in anti-smuggling surveillance.

Gold rushes

On June 25, Hyderabad customs officials arrested two Indian passengers arriving from Kuala Lumpur after seizing 2.271 kg of 24-carat gold worth about ₹ 3.36 crore at the Rajiv Gandhi International Airport. The gold, hidden in the form of a paste inside specially sewn pouches hidden along the waist of their trousers, was recovered during the rinsing process.

Earlier on May 2, DRI officials seized 3.5 kg of foreign-origin gold worth over ₹ 3.45 crore at RGIA and arrested three persons, including two airport ground handling staff, who were allegedly involved in the operation. Officials said the gold bars were discreetly transferred near the aerobridge before being moved from the airport premises.

Also Read: Passenger detained with 1.8 kg of smuggled gold worth ₹ 2.37 crore at Hyderabad airport

In February, based on Advance Passenger Information System (APIS) profiling, customs officials detained a passenger arriving from Jeddah on flight 6E 68. During a baggage search, 44.40 grams of gold worth ₹7.09 lakh was found in an iron press.

Officials said that following the import duty changes, similar methods of concealment and detention have been reported at airports across the country. On May 21, customs officials at Delhi’s IGI airport seized 396 grams of 24-karat gold dust hidden inside commercial chocolate packets from a passenger arriving from Riyadh. On 15 May, officials detained a US citizen arriving from San Francisco with 3.565 kg of gold, including 115 bars worth over ₹5.5 million, sewn into his trouser pockets and a specially designed belt. A day earlier, on May 14, officials seized 350.5 grams of gold welded into silver-plated fake compartments inside water bottles carried by passengers arriving from Jeddah and Doha.

“Whenever gold prices spike, smuggling and black marketing also increase as margins become substantial. Syndicates constantly evaluate which commodity fetches better commissions at a particular time,” said a senior DRI officer.

Adapting to market demand

Another officer said smuggling networks often operate with what agencies describe as a “seasonal approach”. “If gold yields better returns, they move to gold. If narcotics make higher profits, they move to narcotics. These networks are constantly adapting to market demand and profit margins,” the officer said.

A customs official said teams rely heavily on profiling, behavioral analysis and intelligence to identify suspects. “We monitor travel patterns, suspicious movement of luggage, activity of loyal passengers and intelligence alerts. After interception, detailed investigation is done and hidden gold is recovered depending on the method used,” the officer said.

Carriers

Officials said the syndicates are increasingly using ordinary travelers, airport insiders and frequent international travelers as carriers, constantly changing their concealment techniques to avoid detection.

Published – May 25, 2026 12:09 PM IST