News On Japan

Gold Smuggling Hits Record High in Japan

TOKYO, Nov 29 (News On Japan) - Gold smuggling into Japan has reached unprecedented levels, with smugglers employing increasingly ingenious methods to evade detection. Customs officials have uncovered gold hidden in wigs, the tips of golf clubs, and even within luggage cart components.

One major factor behind the surge is the rapid increase in gold-buying shops across the country. Over the past four years, more than 100,000 such stores have opened, providing smugglers with ample opportunities to offload their contraband. Many of these newer establishments lack experience in detecting illicit gold, making them easier targets.

Japan’s consumption tax system also plays a significant role. Smugglers often purchase gold in tax-free regions such as Hong Kong, bypass customs declarations, and then sell the gold domestically at tax-inclusive prices. This loophole creates substantial profit margins, fueling the rise in smuggling activity.

Customs officials warn that penalties for gold smuggling are severe, with fines up to five times the undeclared value or potential imprisonment. They also note an increase in smuggling-related recruitment through social media, disguised as “under-the-table” jobs. Authorities are urging the public to report any suspicious activity to the police.

As the gold smuggling trade continues to grow, Japan faces mounting challenges in tightening its tax and trade systems to combat this evolving threat.

Source: ANN

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