Gold hidden inside mobile phones and body cavities on Dubai to India flights this week were the latest in a long list of recent smuggling cases.
Customs officials in India found smuggled gold worth $74,000 on Dubai to India flights.
Officials warned they are on high alert for people trying to dodge India's luxury tax, which must be paid on arrival and is often more than 10 per cent of the total gold value.
Recently, authorities in Chennai also recently recovered gold worth about $340,000 hidden underneath fake hairpieces of passengers headed for the UAE.
The travellers were set for flights to Sharjah and Dubai, but were rumbled by their suspicious hairstyles. They were also found to be concealing $33,000 in cash.
And it is not just Chennai reporting a spike in recent interceptions.
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15 audacious smuggling attempts - in pictures
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Authorities at Chaudhary Charan Singh International Airport in Lucknow, the main transit hub for Uttar Pradesh, seized 752 grams of gold worth around $49,000 from two passengers landing from Dubai and Sharjah last week.
The gold ‘biscuits’ were hidden inside the shoes of one passenger and concealed in the body of the other.
Smugglers are constantly changing the way they attempt to import gold and cash illegally across borders.
On Saturday, March 27, Delhi Customs intercepted an Indian passenger on a Spicejet flight from Dubai who had hidden 798 grams of silver-coated gold wires on the frame of their trolley bags.
The hidden bullion was worth an estimated $44,270 (Dh162,600) and the passenger was arrested under India’s Customs Act.
Gold smugglers have been caught trying to carry illegal gold from the UAE into India nearly a dozen times already this year.
Hand-carrying gold on a plane is not in itself illegal, but passengers do need to consider the quantity they are importing or exporting to and from India, and have the correct documentation.
The National looked into the rules
Importing gold into the UAE
The UAE is one of the major importers and re-exporters of gold and jewellery, in part because there is no import duty tax or value added tax on gold bars brought into the country.
Travellers are required to declare cash, or any other financial instrument exceeding Dh100,000, according to the UAE’s government website.
Dubai is known as the City of Gold. It's very laissez-faire, entrepreneurial place
The cost of gold varies from day to day, but in practice this means you can import about 500 grams of gold without declaring it to customs.
Gold traders often wish to import much more than that, and they can do so entirely legally, according to Jeff Rhodes, founder and managing consultant for Rhodes Precious Metals Consultancy, DMCC.
"Dubai is simply the most well-organised, regulated and most competitive market in the world for gold and diamond jewellery.
"That's the reason why Dubai is known as the City of Gold. It's a very laissez-faire, entrepreneurial place.
"There are no restrictions on how much gold you can bring in and there are no restrictions on the amount you can take out, either as bars or jewellery," he said.
However, there are regulations.
If the value of the gold is more than Dh100,000, then customs officers in UAE airports will expect to see a certificate of origin or purchase receipt when you enter the country.
This measure of authentication was brought in by the UAE authorities to combat money laundering and suspicious financial activities.
Also, the Federal Tax Authority charges 5 per cent import duty on gold jewellery, although if the jewellery is imported for re-export then no customs duty needs to be paid.
This occurs in the UAE because the country is a hub for the rest of the Middle East, and some jewellery is imported and re-exported to countries around the region.
Gold jewellery also attracts 5 per cent value added tax, although when retailers sell the items to their customers, this VAT is passed on to them.
Exporting gold from the UAE
There is no limit on the amount of gold an individual can export from the UAE, and there are no taxes to be paid as you leave the country.
In fact, if you are a visitor to the UAE, and you have purchased gold jewellery or artefacts, you can claim back the VAT at the airport.
The rules for importing the precious metal vary from country to country, and these need to be considered before you board a flight from the UAE to travel abroad.
For example, India has clear rules regarding the importation of gold.
As of April 1, 2016, male passengers can bring in up to 20 grams of gold worth Rs50,000 ($688) duty free.
Female passengers can bring in 40 grams of gold worth Rs100,000 ($1,377).
If a traveller wants to bring in more gold jewellery, they need to declare the amount at customs and pay import duty to the government.
This fee changed in February 2021 when finance minister Nirmala Sitharaman cut import duties on gold and silver from 12.5 per cent to 7.5 per cent, but imposed a 2.5 per cent cess – an extra, separate tax.
The total import duty now is 10.75 per cent, compared to 12.5 per cent before the changes.
The government said they hoped the reduction would make smuggling less attractive and improve revenue.
Up to 120 tonnes of gold were smuggled into India in 2019, according to the World Gold Council’s Indian operations.
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Skoda Superb Specs
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Sanchez's club career
2005-2006: Cobreloa
2006-2011 Udinese
2006-2007 Colo-Colo (on loan)
2007-2008 River Plate (on loan)
2011-2014 Barcelona
2014–Present Arsenal
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
FA Cup quarter-final draw
The matches will be played across the weekend of 21 and 22 March
Sheffield United v Arsenal
Newcastle v Manchester City
Norwich v Derby/Manchester United
Leicester City v Chelsea
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Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
All about the Sevens
Cape Town Sevens on Saturday and Sunday: Pools A – South Africa, Kenya, France, Russia; B – New Zealand, Australia, Spain, United States; C – England, Scotland, Argentina, Uganda; D – Fiji, Samoa, Canada, Wales
HSBC World Sevens Series standing after first leg in Dubai 1 South Africa; 2 New Zealand; 3 England; 4 Fiji; 5 Australia; 6 Samoa; 7 Kenya; 8 Scotland; 9 France; 10 Spain; 11 Argentina; 12 Canada; 13 Wales; 14 Uganda; 15 United States; 16 Russia
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
Result
Crystal Palace 0 Manchester City 2
Man City: Jesus (39), David Silva (41)