In Hong Kong’s largest gold smuggling bust, the city’s authorities seized an estimated $10.7 million worth of the precious metal that had been concealed as machine parts being shipped to Japan.
According to a government statement Monday, 146 kilograms of gold had been “molded and camouflaged” as part of two air compressors in the cargo of an airplane parked in the city.
Photos provided by officials show that the gold had been shaped into screw-like and cylinder-shaped parts and with a coat of paint to conceal it. Scrapes on the surface of the parts revealed the gold underneath.
Hong Kong customs detected the illicit gold while conducting an examination of the machines on March 27, and after a follow-up investigation, arrested a 31-year-old in connection with the case on Wednesday.
The arrested man has been released on bail with the investigation still ongoing.
Under Hong Kong law, any person found guilty of smuggling cargo is liable to a maximum fine of $2 million and imprisonment for seven years.
A customs official told local reporters Monday that this was the first case in which gold had been found concealed as machine parts.
The official added that the suspected aim of the smuggling operation was to evade import tariffs of about 10 percent in Japan, which would have saved more than $1 million had the operation been successful.
Hong Kong, which is one of the world’s largest gold trading hubs, in February arrested another suspect for trying to smuggle gold bars out of the city.
There’s been at least one other gold seizure by customs this year.
Both the cases had involved Macao-bound vehicles smuggling gold worth more than $1 million.
Prices of the precious metal have hit successive record highs in 2024 amid geopolitical uncertainty. The commodity’s spot price closed at another high in the US on Monday, at above $2,340.
CNBC.
