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.
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Tips on buying property during a pandemic
Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.
While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.
While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar.
Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.
Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.
Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities.
Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong.
Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
Anghami
Started: December 2011
Co-founders: Elie Habib, Eddy Maroun
Based: Beirut and Dubai
Sector: Entertainment
Size: 85 employees
Stage: Series C
Investors: MEVP, du, Mobily, MBC, Samena Capital
UAE currency: the story behind the money in your pockets
Karwaan
Producer: Ronnie Screwvala
Director: Akarsh Khurana
Starring: Irrfan Khan, Dulquer Salmaan, Mithila Palkar
Rating: 4/5
The specs: 2018 Mercedes-Benz E 300 Cabriolet
Price, base / as tested: Dh275,250 / Dh328,465
Engine: 2.0-litre four-cylinder
Power: 245hp @ 5,500rpm
Torque: 370Nm @ 1,300rpm
Transmission: Nine-speed automatic
Fuel consumption, combined: 7.0L / 100km
MATCH INFO
First Test at Barbados
West Indies won by 381 runs
Second Test at Antigua
West Indies won by 10 wickets
Third Test at St Lucia
February 9-13
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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.”
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
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Griselda
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Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5