TOKYO (BERNAMA) – Gold smuggling cases are surging in Japan on the back of the rising price of the precious metal and the recovery of overseas tourists following the COVID-19 pandemic, according to Kyodo News.
Customs authorities are ramping up measures to tighten border controls as smuggling methods become more sophisticated, such as hiding powdered gold in clothing, they said.
Last September, two Chinese nationals arriving from Hong Kong were found hiding a total of some 2.6 kilogrammes of powdered gold in wigs at Tokyo’s Haneda airport.
Schemes for gold smuggling to Japan have been widely touted on social media in China and Hong Kong, with assurances that large profits can be made if individuals evade the import tax on the metal levied by customs, which is set at the same rate as the consumption tax.
The number of gold smuggling cases investigated by customs authorities nationwide started increasing in 2014, when the consumption tax rate was raised to eight per cent from five per cent, hitting 1,347 in 2017. The consumption tax was raised to 10 per cent in 2019.
The figure decreased in 2018 and remained low due to stricter penalties and border controls as well as entry restrictions imposed to curb the COVID-19 pandemic.
But cases have started increasing again with demand for the safe-haven asset having grown. The price of gold had jumped around 2.5-fold from five years ago to JPY14,746 (USD97) per gramme as of the end of December 2024, according to Tanaka Precious Metal Technologies Co.
Kyodo reported that in addition to the conventional method of bringing in gold by wearing it as accessories, some recent cases include hiding powdered gold in underwear, sending it by international mail after mixing it with tea powder and using it to replace other metals used in electronic components.
