Following a sharp hike in customs duty on gold, Indian revenue intelligence and customs officers are intensifying border surveillance to combat potential gold smuggling activities.
Key Points
- Customs and revenue intelligence to intensify surveillance on international borders to curb gold smuggling.
- Increased import duty on gold and silver from 6% to 15% is expected to drive grey market activity.
- Key smuggling routes include Maharashtra, Tamil Nadu, Gujarat, and West Bengal.
- Land routes, especially along the eastern and northeastern borders, remain a major challenge for customs officials.
- In FY 2024-25, authorities seized 2,600 kg of gold and arrested 533 individuals involved in smuggling.
The revenue intelligence and customs officers are likely to intensify surveillance and step up vigil on international borders to check possible gold smuggling after the sharp hike in customs duty on the yellow metal to 15 per cent on Wednesday, officials said.
Enhanced Monitoring of Smuggling Routes
The tax officers will step up monitoring of land and coastal infiltration routes, domestic handlers acting as distribution nodes, organised carrier networks, and foreign national-based syndicates to deter syndicates from exploiting the gold market.
"The idea is to disrupt the supply chain and intercept gold smuggling syndicate and cross border cartels. Intelligence driven surveillance and enforcement will be key in tackling the challenge of gold smuggling," an official told PTI.
Changes in Import Duty
Effective May 13, import duty on gold and silver has been increased from 6 per cent to 15 per cent and that on platinum has been raised from 6.4 per cent to 15.4 per cent. Consequential changes have also been made to other items such as gold/silver dore, coins, findings, etc.
Although import duty does not have a direct co-relation with smuggling, it is perceived that higher duties lead to spurt in grey market activity.
Factors Fueling Gold Smuggling
Gold's cultural, economic and social significance, along with high liquidity and value, has fuelled smuggling over the years.
Global uncertainties, geopolitical tensions and high inflation amplifies international gold demand, thereby increasing smuggling.
Key Smuggling Hotspots
Smuggling of the precious metal is mostly concentrated in the states of Maharashtra, Tamil Nadu, Gujarat and West Bengal, officials said.
As per latest available data, DRI and Customs officers have seized 260 kg gold valued at over Rs 254 crore between April-October 2025 at airports and seaports.
Land Route Challenges
Gold smuggling via land route remained a major challenge particularly along India's eastern and north eastern borders with syndicates exploiting the porous and rugged terrain adjoining Myanmar, Bangladesh, China and Nepal. Assam, Manipur, Mizoram continued to be key routes among the northeastern states.
In the 2024-25 fiscal, land accounted for the majority of DRI's gold smuggling cases at 55.90 per cent, followed by air (43.70 per cent) and sea (0.50 per cent).
As per the latest data available, in FY 2024-25, a total of 2,600 kg gold was seized by the officers of Central Board of Indirect Taxes and Customs (CBIC), and 533 persons were arrested.
