Smuggling of gold involving ‘carriers’ through various airports in Kerala and neighbouring states is getting a makeover as the bullion flow is turning legal with a vengeance. Showing the way forward is a trend that has emerged in Calicut International Airport, where the last 15 days starting December 3, 2013, have witnessed around 1040 kg of gold or over a tonne in bullion form being brought in by passengers coming in from Dubai by paying a duty Rs 2.70 lakh per kg. Believe it or not, the passengers included a six-month-old baby as well and it is being done not without reason.
Even after paying customs duty, bullion fetches Rs 70,000 to Rs 1.5 lakh more in the domestic market, depending on the purchase rate in the Dubai market.
Clearly, none of this is being brought in for personal use as it is believed that each and every item finds its way into various jewellery shops in Kerala. The law of the land allows those returning to the country after a six-month-long stay to bring one kg of gold in person after paying duty. The new trend becomes clear when seen in the backdrop of the quantum of gold brought by passengers in October and November - 32 kg and 235 kg respectively.
“Since July, traders are not getting gold through banks and there is a huge need for the metal.
As these bullion is coming through proper channel, we have no problem in buying it. However, all these bullion need not be sold in jewelleries of Kerala as selling the same Gold would yield more profit for customers in Tamil Nadu and Andhra Pradesh,’’ P C Natesan, general secretary of All Kerala Gold and Silver Merchants Association told Express.
Thus, after the arrival of each flight, what is visible for in the Calicut airport is the sight of dozens of passengers queuing up to pay duty for gold, something not seen in the initial months after the government imposed curbs on gold import by drastically hiking customs duty on the yellow metal.
The enforcement agencies view this sudden gold rush through proper channel with an element of scepticism.
“This is mainly due to difference in gold rate here and in Dubai. Roughly, there is a difference of around Rs 5 lakh per kg gold of 24-carat. For instance, the rate of one kg 24-carat gold in Dubai on Wednesday was Rs 24.5 lakh. While rate here was Rs 29.9 lakh. After remitting Rs 2.70 lakh as duty, Rs 25,000 as commission to passengers and arranging tickets, one can pocket a good amount." said a senior officer, Customs and Central Excise Dept, Kozhikode.