Hong Kong seizes over $10 million worth of gold disguised as machine parts

YEREVAN, APRIL 9, ARMENPRESS. Hong Kong Customs on March 27 seized an estimated $10.7 million worth of gold concealed as machine parts being shipped to Japan. According to the Customs and Excise department statement, this is the largest gold-smuggling case detected by Hong Kong Customs on record in terms of the seizure value.

146 kilograms of gold had been “molded and camouflaged” as part of two air compressors in the cargo of an airplane at Hong Kong International Airport.

After a follow-up investigation, Customs officers on April 3 arrested a 31-year-old man suspected to be connected with the case. The arrested man has been released on bail pending further investigation. Under Hong Kong law any person found guilty of importing or exporting unmanifested cargo is liable to a maximum fine of $2 million and imprisonment for seven years.

According to CNBC, a customs official told reporters that he suspected aim of the smuggling operation was to evade import tariffs of about 10% in Japan, which would have saved more than $1 million had the operation been successful.

Prices of the precious metal have hit record highs in 2024 amid geopolitical uncertainty. The commodity’s spot price closed at another high in the U.S. on April 8, at above $2,340.