It is a common deal when a passenger goes to Dhaka from Dubai, he gets a delivery proposal for a biscuit (Gold bar) for the payment of Tk 10,000 to 15,000. Regular passengers and airport authorities are habituated to seeing it.
In our country, we adjust the fuel price with the neighboring country India, but we never adjust the gold price with them. That is the basic reason for gold smuggling.
A huge amount of gold is coming to the country legally by paying taxes through the country's international airports. But the gold is being smuggled out of the country illegally.
In the last three months, about 1,000 kg of gold has entered the country through the international airport after paying taxes. Apart from this, there is no estimate of how much gold has been smuggled into the country. Although a large amount of gold comes to the country legally by paying taxes, they are being smuggled to other countries. This information is known from Bangladesh Jeweller’s Association (BAJUS) sources.
According to the sources, the activities of gold smugglers in the country have increased more than ever before. Especially the activities of Dubai-based smugglers. In July last year, gold bar tax collection at Hazrat Shahjalal International Airport was Tk 14,37,33,220, in August it was Tk 7,43,06,428 and in September it was Tk 10,35,19,427.
In the last three months, only Tk 32 crore 15 lakh 59 thousand 75 tax has been collected on gold bars. The tax on each gold bar is Tk 40,000. That counted 8,038 times. Each bar weighs 117 grams. As a result, a little more than 940 kg of gold has come to the country.
Besides, Tk 1 crore 80 lakh 46 thousand 551 was collected as tax for jewelry at the airport in July, while Tk 24 lakh 26 thousand 294 came in August. And last September, Tk 15 lakh 99 thousand 120. In all, jewellery tax collection in the last three months has been Tk 2,20,71,965. In the last three months, about 1,000 kg of gold has entered the country, including gold bars and jewellery.
It was known that Bangladesh is being used as a transit route for gold smuggling. Gold is being smuggled to India using this route. The smugglers brought gold consignments from Saudi Arabia, the United Arab Emirates, Malaysia and even Singapore through the country's three international airports Shahjalal, Shah Amanat and Osmani.
Later, in collusion with dishonest officials and employees, they are being brought out and they are going to India through Benapole, Bhomra, Maheshpur border of Jhenaidah. Now no one can import gold in India except jewelry makers. But the demand for gold in India's domestic market is not possible for jewellers alone.
As a result, smuggling is entering India through Bangladesh to meet the demand in the domestic market. Gold is also used to pay for drugs.
Al-Amin, joint commissioner of Hazrat Shahjalal Airport Customs, said that earlier two gold bars were allowed to be brought along with tax as gold was smuggled. It was reduced to a gold bar. Now the government has no problem if any expatriate or any passenger pays tax on a gold bar. The passenger has declared the gold and paid the tax. So he can take the gold legally.
In this way, if every passenger brings a gold bar and pays the tax, the customs does not consider what the passenger who brought the gold later did or used it for what purpose. If they commit any crime or smuggle it out of the country or want to do it, it is a matter of other law enforcement agencies to see.
Masudur Rahman, spokesman of the BAJUS, said that if the amount of gold entering the country was in the country, it would have been better for the jewelry traders to sell gold at a lower price. But they are being smuggled through smugglers.
Colonel Mohammad Shariful Islam, deputy director general of Border Guard Bangladesh (BGB) headquarters, said the BGB has taken a strict position against any smuggling including gold. In particular, the BGB is conducting operations along the borders with the help of its own intelligence agencies as well as other intelligence agencies to prevent smuggling.
The government formulated gold import policy in 2018. It was later amended in 2021. Bangladesh Bank granted gold import license to 19 institutions including a commercial bank that year to bring transparency in the gold market and jewelery business.
In the beginning five-six companies imported some gold, but later it collapsed. Businessmen themselves admit that gold is not imported legally in Bangladesh.
But on the question of why it does not happen, traders are blaming the gold import policies of the former government.
Masudur Rahman, chairman of BAJUS price determination committee, said, "The gold import category of the previous government was quite flawed. We have applied many times that they gave a license to import gold, but there is no opportunity to import gold!
“Because the tax category that is imposed there is almost 18 to 19 percent of everything. On the other hand it was 'hasselful'", said Rahman.
Besides, the whole process of gold import was time-consuming and it could not move forward due to various complications, said Rahman.
He said, 24 to 25 days pass from permission for gold import to almost finishing. Some licenses were granted from Bangladesh Bank. Five or six importers had imported, but they could not move forward because of these obstacles!”
Traders claim that the government has imposed import policies to import gold, while the baggage rules have been relaxed. Baggage rules allow bringing home a load of gold for just four thousand rupees.
Rahman said, it is totally contradictory. If you want to encourage import and allow it under baggage rules, then there will be no import."
"We have tried many times with Chairman Sayem Sobhan Anveer for three years. But those who were the leaders of NBR then did not listen to us."
A report by BFIU said that the import-export opportunities in this sector would be $22 billion in trade. So that ten thousand crores of VAT will be collected from the country.
Referring to this report Rahman claimed that the sector was 'not allowed to grow' and that the sector 'did not get the support of the government'. Traders say that BAJUS sets the price of gold following the price set by Bullion (Poddar) market in Tantibazar of the capital.
The bullion market is the market of traders who trade in gold. In Bengal the same is called poddar. Traders claim that those involved in gold smuggling have a syndicate. They claim that the area of bajus price determination is 'helpless'. The government sets the dollar rate, but not the gold rate.
Rahman said, the government neither brings gold nor supplies gold. Bajus rates gold to maintain the unity of the country's gold traders."
"How does BAJUS give the rate? Take for example the bullion market of Tantibazar. But we follow the rate of the bullion market. The bullion market deals with solid gold", he said.
On the question of where the gold is brought in the bullion market, Rahman claims, we have no idea. It is totally based on smuggling. that we know. The administration of this country also knows."
Claiming that they have a syndicate, Rahman said, the gold that comes from Dubai under the baggage rules or the gold that people bring or the gold that comes through the informal way controls the gold rate by determining the high price profit of that gold.
"Since gold is not imported into the country from outside the world, they increase the rate by Tk 10-12 thousand and set a rate. Bajus is bound to follow that," said Rahman
He claimed that the bullion market syndicate is quite strong. This businessman said that BAJUS determines the price basically by following the market rate. As a result, the bullion market of Tantibazar claims that the price is determined by adding only 2.8 percent profit on the basis of the gold rate determined by this gold trader.
There is 12 percent 'wastage' (waste) in making gold jewelery in Bangladesh, which is much higher than the rest of the world. In other countries this amount ranges from 1 to a maximum of 6 percent.
In Bangladesh, it is taken as a charge for making ornaments, said Rahman. This also increases the price. He also said that many buyers from Bangladesh are moving to the markets of Dubai, Qatar or neighboring countries due to the increase in the price of gold.
On the condition of anonymity, gold traders claim that the current gold trade in the country is not going according to international standards. They say, those who used to smuggle are partners of this syndicate. They claim that this trend has been going on since 2009. Traders are also pointing to former president Enamul Haque Khan Dolan and general secretary Dilip Aggarwal. They claim that the gold rate was high at that time.
Meanwhile, Rahman claims that they have already reduced the gold rate by five percent to get out of that clause. However, no effect of his claim has been seen in the gold market of Bangladesh in the last few months. Rahman's claim, if the previous rate, the price of gold would have increased by at least Tk 10,000.
He also said that BAJUS does not take into account the international market rate in determining the price.
"We don't have a chance to see. There was an opportunity to determine if the gold was imported, or left the refinery. Since it is not there is no idea", said Rahman.
In Bangladesh on Wednesday, the price of gold per 22 carat was Tk 1 lakh 26 thousand 321.
On the same day, the price of 22 carat gold in the neighboring country of Kolkata, India, is Tk 1 lakh 10 thousand 653.
That is, the difference in the gold supply of the two countries on the same day is Tk 15 thousand 668.
Analysts say the country's main smugglers should be identified and brought under accountability.
At the same time, policies to control smuggling should be brought into legal framework. Not only the carriers involved, but the main culprits should be brought to justice.
For this reason, analysts believe that it is possible to prevent smuggling by increasing surveillance at border areas and airports by involving every law enforcement agency.
Executive Director of Transparency International Bangladesh. Iftekharuzzaman said, in addition to law and order forces, the rest of the institutions including the National Board of Revenue should also be involved in gold smuggling control activities. By creating a permanent coordination opportunity, smuggling can be controlled.”
“Above all, if those who are involved in smuggling can be held accountable, not just one or two, but the entire syndicate is being talked about...if law enforcement can play its role properly in the changing context, i.e., the example of punishment for crime. must be established. Only then will it be possible to prevent smuggling," he said.
Economists also urged the government to encourage legal import of gold to prevent smuggling.
Saima Haque Bidisha, Professor of Economics Department of Dhaka University and newly appointed Deputy Vice-Chancellor, said that if we see that the government is brought to pay a fixed price for the import of gold through legal channels, then the government should be encouraged. That is, the government needs to take what steps can be taken to encourage the matter to be brought on the legal path”.
"There is almost no transparency in this place. Therefore, it is necessary to give a little more flexible terms and conditions in order to bring it in the legal way", she said.
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