The National Board of Revenue (NBR) is preparing to amend baggage regulations as gold smuggling continues to rise, facilitated by organised syndicates exploiting loopholes in existing policies. Weak monitoring and lax enforcement at airports have enabled a steady influx of smuggled gold, undermining legal trade and financial stability, experts have warned.
Currently, inbound passengers can bring up to 100 grams of gold in bars or ornaments tax-free. However, smugglers circumvent this provision by deploying multiple carriers or ‘mules,’ who transport small quantities to evade detection. Recent seizures illustrate the growing scale of the issue.
In January 2025, customs officials at Hazrat Shahjalal International Airport confiscated 15 kg of gold from passengers arriving from Dubai and Singapore. Investigations revealed that syndicates recruit Bangladeshi expatriates and low-income travelers, offering them free tickets and financial incentives to smuggle gold.
Authorities acknowledge that the existing baggage rules are being exploited. “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,” a senior customs official stated.
In response, NBR Chairman Md Abdur Rahman announced that changes to baggage rules are underway and will be opened for public consultation once finalised. The jewellery sector’s revenue contribution has remained below expectations due to gold smuggling, which has also led to significant revenue losses for the government.
Business leaders have urged the government to tighten regulations. The Bangladesh Jewellers’ Association (BAJUS) has highlighted that unchecked smuggling disrupts the gold market and undermines legitimate businesses. “One passenger travelling abroad multiple times a month to bring gold cannot be allowed,” Abdur Rahman asserted. He confirmed that stricter rules would be introduced to bring discipline to the sector.
The proposed reforms under consideration include reducing the duty-free gold allowance and imposing stricter penalties for violations. BAJUS Vice President Md. Reponul Hasan suggested restricting gold imports to once per passenger per year, citing cases where individuals travel three to four times a month to exploit baggage rules.
He further noted that during the COVID-19 pandemic, travel restrictions significantly reduced illicit imports, highlighting the impact of regulatory enforcement. BAJUS has also called for a dedicated NBR committee to assess policy changes in detail, although an official announcement regarding its formation is pending.
Experts stress that addressing gold smuggling requires regional cooperation and intelligence-sharing with transit hubs such as Dubai and Malaysia. Enhanced coordination among law enforcement agencies is also necessary for effective enforcement.
Despite opportunities for legal imports, commercial gold imports remain low. According to Bangladesh Bank, only 119 kg of gold has been imported through formal channels since 2019, whereas substantially larger amounts have entered under baggage rules, despite higher taxes on such imports.
Bangladesh ranks 42nd in global gold imports. Since 2020, seven licensed dealers have imported only 139.64 kg of gold bars, spending approximately $8.2 million. However, in 2022, imports fell to 24 kg from 93 kg in 2021, with 12 licensed dealers failing to import any gold.
A key factor behind the reliance on smuggling is the disparity in taxation. Licensed dealers pay Tk5,000 per bhori in duty, while passengers using baggage rules pay only Tk2,000 per bhori. This imbalance incentivises smuggling, disrupting the domestic gold market.
NBR data indicates that in 2022, inbound passengers carried 54 tonnes of gold worth approximately Tk45,000 crore—Tk35,000 crore in gold bars and the rest in ornaments. Airport records reveal that air passengers transported 5.5 tonnes in 2020, 35 tonnes in 2021, and 54 tonnes (4.6 million bhoris) in 2022. The government introduced the Gold Policy in 2018, later amending it in 2021 to facilitate legal gold imports.
The policy allows registered gold dealers to obtain export certificates for gold ornaments, ensuring a formal importation channel. Currently, 20 institutions serve as direct dealers of Bangladesh Bank, which has also approved procedures for setting up and operating gold refineries.
The amended Gold Policy estimates Bangladesh’s annual gold demand at 70-89 tonnes. However, only 30% of this demand is met through old gold and formal imports, while the remaining supply is sourced through illegal means, according to BAJUS. Volza, a global trade data platform, reports that Bangladesh imports most of its gold bars from India, Ukraine, and the United Arab Emirates.
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