Gold was hidden in the form of air compressor parts
Source: Hong Kong Customs and Excise Department
In Hong Kong’s largest gold smuggling operation, city authorities seized an estimated $10.7 million worth of precious metal hidden in machine parts shipped to Japan.
According to a government statement on Monday, 146 kg of gold had been “cast and camouflaged” as part of two air compressors in the hold of a plane parked in the city.
Photos provided by authorities show the gold had been shaped into screw- and cylinder-shaped pieces and given a coat of paint to conceal it. Scratches on the surface of the coins revealed the gold beneath.
Hong Kong Customs detected the illicit gold during an examination of the machines on March 27 and, after a follow-up investigation, arrested a 31-year-old man in connection with the case on Wednesday.
The arrested man has been released on bail and the investigation is still ongoing. Under Hong Kong law, anyone found guilty of smuggling goods is liable to a maximum fine of $2 million and imprisonment for seven years.
A customs official told local journalists on Monday that this was the first case in which gold had been discovered hidden in machine parts.
The official added that the alleged purpose of the smuggling operation was to evade Japan’s roughly 10 percent import duties, which would have saved more than $1 million if the operation had successful.
Hong Kong, which is one of the world’s largest gold trading hubs, arrested another suspect in February for trying to smuggle gold bars out of the city. There has been at least one other gold seizure by customs this year.
In both cases, they involved vehicles bound for Macau clandestinely transporting gold worth more than $1 million.
Prices of the precious metal hit successive records in 2024 amid geopolitical uncertainty. The merchandise spot price closed at another high in the United States on Monday, above $2,340.
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