The National Board of Revenue (NBR) is set to amend the baggage rules as gold smuggling rises through organised syndicates exploiting loopholes in the regulations.
Experts said that weak monitoring and lax enforcement at airports have allowed a steady inflow of smuggled gold, undermining the legal trade and financial stability.
According to sources, smugglers take advantage of passenger-friendly baggage rules, which allow travelers to carry a limited quantity of gold legally.
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Currently, inbound passengers can bring up to 100 grams of gold in bars or ornaments tax free. However, smugglers dodge this provision by using multiple carriers, or “mules,” who bring in small quantities to avoid detection.
Some recent seizures highlight the growing scale of the problem.
In January 2025, customs officials at Hazrat Shahjalal International Airport seized 15 kg of gold from some passengers arriving from Dubai and Singapore.
Investigators found that syndicates recruit Bangladeshi expatriates and low-income travelers, offering them free tickets and financial incentives in exchange for smuggling gold.
Authorities Respond
“We have initiated changes to the baggage rules and are currently discussing the matter internally. Once finalised, we will open it for public consultation,” said NBR Chairman Md Abdur Rahman at a meeting with Bangladesh Jewellers’ Association (BAJUS) leaders recently.
Customs officials acknowledge that existing baggage regulations are being exploited by criminal networks, making enforcement challenging.
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“Since each passenger is legally allowed to bring gold within the permitted limit, smugglers use multiple carriers on different flights to move large quantities undetected,” said a senior customs official.
Economic Impact and Industry Concerns
Illegally imported gold enters the domestic market, bypassing official import channels.
This illicit trade causes loss to the gold industry, affects legitimate businesses, and results in significant revenue losses for the government.
BAJUS has repeatedly urged authorities to tighten regulations, warning that unchecked smuggling could destabilise the gold market.
“One passenger traveling abroad multiple times a month to bring gold cannot be allowed,” Abdur Rahman stated. “We will introduce stricter rules to bring discipline to this sector.”
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He also said that the jewelry sector’s revenue contribution remains below expectations.
“Gold smuggling impacts the overall financial management, law enforcement, and the economy,” he added.
Proposed Reforms
A senior NBR official said the government is considering reducing the duty-free gold allowance and imposing stricter penalties for violations.
BAJUS Vice President Md. Reponul Hasan suggested limiting gold imports to once per passenger per year.
“There are syndicates behind gold smuggling. Some members travel three to four times a month to exploit baggage rules,” he claimed.
He emphasised that curbing gold smuggling would encourage small industries, citing the COVID-19 period when travel restrictions significantly reduced illicit imports.
BAJUS has also called for a dedicated committee within the NBR to discuss policy changes in more detail.
“We have heard that NBR has formed a committee, but they have not officially announced it yet. We are preparing our recommendations,” Hasan added.
Experts said without regional cooperation and intelligence-sharing with transit hubs like Dubai and Malaysia, curbing gold smuggling will remain a challenge.
Authorities must ensure better coordination between law enforcement agencies for effective enforcement.
Gold Import Trends
Despite existing opportunities, commercial gold imports remain low.
According to Bangladesh Bank, only 119 kg of gold has been imported through formal channels since 2019, whereas significantly larger amounts have entered the country under baggage rules, despite higher taxes on gold imported this way.
Bangladesh ranks 42nd in global gold imports.
In 2019, Bangladesh Bank issued dealer licenses to 18 institutions, including a bank, to facilitate legal gold imports. Currently, 19 institutions hold such licenses, but their import volumes remain negligible.
Since 2020, only seven dealers have imported 139.64 kg of gold bars, spending approximately $8.2 million. In 2022, gold imports fell to 24 kg from 93 kg in 2021. However, 12 licensed dealers did not import any gold.
The disparity in taxation exacerbates the issue.
Dealers pay Tk5,000 per bhori of gold in duty, whereas passengers under baggage rules pay only Tk2,000 per bhori.
Gold Market Disruption
NBR data reveals that in 2022, Bangladeshi inbound passengers brought in 54 tonnes of gold worth approximately Tk45,000 crore—Tk35,000 crore in gold bars and the remainder in ornaments.
Airport records show that air passengers carried 5.5 tonnes of gold in 2020, 35 tonnes in 2021, and 54 tonnes (4.6 million bhoris) in 2022.
In 2018, the government introduced the Gold Policy, later revised in 2021 as the “Gold Policy 2018 (Amended, 2021).”
The policy allows registered gold dealers to obtain export certificates for gold ornaments, ensuring a legal channel for importation.
Currently, 20 institutions serve as direct dealers of Bangladesh Bank, which has also approved procedures for setting up and operating gold refineries.
Addressing Illegal Gold Trade
The amended Gold Policy estimates the country's annual gold demand between 20 and 40 metric tons, with around 20,000 kg traded daily.
This suggests an annual demand of 70-89 tonnes
Only 30% of the demand is met through old gold and formal import and the remaining demand is largely supplied through illegal means or smuggling, according to BAJUS.
According to Volza.com, a platform that provides global export-import trade data for over 209 countries, Bangladesh imports most of its gold bars from India, Ukraine, and the United Arab Emirates.