Hong Kong Customs busts largest ever gold smuggling operation

On April 8, Hong Kong Customs (China) announced that it had busted the largest gold smuggling case ever, seizing 146kg of precious metals disguised as air compressor parts at the international airport of this special administrative region.

At a press conference, the Hong Kong Customs Department said the gold had been melted and cast into parts such as engine cores, screws and gears.

Authorities busted the smuggling operation last month when they discovered gold worth an estimated HK$8.4 million ($1.07 million) hidden in two air compressors and sent by air from Hong Kong to Japan. Hong Kong authorities said it was the largest gold smuggling operation ever in the territory.

In this latest case, the gang took advantage of the space and structure of the air compressor to hide the gold, according to authorities. However, the unusual structure and weight of the compressor aroused the suspicion of customs inspectors. Investigations revealed that the gang planned to smuggle the gold to evade taxes in Japan.

Authorities have arrested a 31-year-old man, the director of a company, and the subject is currently on bail. Authorities have not ruled out the possibility of more arrests.

Hong Kong is one of the world's largest gold trading centers and the price of the precious metal has risen recently as investors seek to protect their wealth against geopolitical uncertainty and inflation.

Under Hong Kong law, smuggling carries a maximum sentence of seven years and a maximum fine of HK$2 million ($255,375).