The gold was hidden as air compressor parts
Source: Hong Kong Customs and Excise Department
In the largest gold smuggling bust in Hong Kong, city authorities seized an estimated $10.7 million worth of the precious metal that was hidden while shipping machinery parts to Japan.
A government statement on Monday said that 146 kilograms of gold had been “molded and camouflaged” as part of two air compressors in the cargo of a plane parked in the city.
Pictures provided by officials show that the gold was formed into spiral and cylindrical shaped pieces with a layer of paint to hide it. Scratches on the surface of the parts revealed the gold underneath.
Hong Kong Customs discovered the illicit gold while conducting a machinery inspection on March 27, and after a follow-up investigation, they arrested a 31-year-old man in connection with the case on Wednesday.
The arrested man was released on bail and the investigation is still ongoing. Under Hong Kong law, anyone found guilty of smuggling goods is subject to a maximum fine of $2 million and imprisonment for seven years.
A customs official told local reporters on Monday that this is the first case in which gold hidden as machinery parts has been found.
The official added that the suspected goal of the smuggling operation was to evade import duties amounting to about 10% in Japan, which would have saved more than a million dollars if the operation had succeeded.
In Hong Kong, one of the world's largest gold trading centers, another suspect was arrested in February for trying to smuggle gold bullion out of the city. There has been at least one other gold seizure by customs this year.
Both cases involved Macau-bound vehicles smuggling gold worth more than $1 million.
Prices of the precious metal reached successive record highs in 2024 amid geopolitical uncertainty. Spot price It closed at another high in the US on Monday, above $2,340.
