Golden ruse no match for customs

Eunice Lam

A 31-year-old man has been arrested by customs officers for allegedly attempting to smuggle 146 kilograms of gold concealed as parts in air compressors.

The gold was valued at HK$84 million, officers said, adding the ploy had gold cast into components of air compressors to evade detection.

The incident came to light when customs officers at Hong Kong International Airport, based on a risk assessment, decided to inspect an outbound freight consignment destined for Japan. The consignment was declared as containing two air compressors.

During an X-ray inspection, customs officers noticed that certain parts of the machines had an unusually high density.

Upon further investigation, it was discovered that the suspected smuggled gold had been molded and cleverly disguised as integral parts of the air compressors.

The estimated market value of the seized gold made it the most significant gold-smuggling case ever uncovered by the customs bureau.

It said the smuggled gold had been molded using poor-quality techniques with applied silver oil paint over it.

"The motors weren't the same as normal motors, so we disassembled the motors to take the motor shaft. We found suspicious glue stains on the metal components," said Ho Tin-hong, divisional commander of customs' airport command cargo division. "Officers then slightly hit the shaft with a hammer and found there were obvious dents, indicating that the metal part was relatively fragile. We tried to scrape away the silver paint and found that the inner layer of the metal part was gold in color."

Lau Yuk-lung, acting head of the Syndicate Crimes Investigation Bureau, said: "The air compressors had aroused suspicion due to the difference in density between gold and steel."

Gold is approximately 1.5 times denser than steel.

The suspect, who claimed to be a company director, was taken into custody on April 3 but has since been released on bail pending investigation.

Authorities believe the operation dealt a blow to a smuggling syndicate.

An estimated HK$8.4 million in taxes could have been evaded if the shipment successfully entered Japan.

Customs said its commitment to combating smuggling is through rigorous enforcement, risk assessment, and intelligence analysis.

Smuggling offenders can face a maximum fine of HK$2 million and imprisonment for up to seven years.

eunice.lam@singtaonewscorp.com