AlwaysAisle

This time on JW (Vanilla Air) 172 TPE KIX on July 9. Upon arrival at KIX a flight attendant found black cloth pouch with something inside at rear lavatory. Since it was international flight, Japanese customs took possession of the item. Customs found inside of cloth poach was 10 kg + (22 lbs. +) of gold bars.

What is with people these days at Japanese toilet? First bullets and now gold bars?

Authorities are suspecting this was part of attempt to smuggle gold into Japan, which authorities have seen increase lately. According to authorities this is how it works. When bringing gold into Japan 8% consumption tax is due at customs. Smugglers are trying to avoid paying consumption tax and reselling gold in Japan for profit.

When bringing 1 million yen worth of gold to Japan, 80,000 yen of consumption tax is due. Smugglers are avoiding paying this 80,000 yen consumption tax. When reselling this gold in Japan, smugglers are selling this gold with 1,080,000 yen price tag, the price which includes consumption tax. Where 80,000 yen will be pure profit for smugglers.

If price of gold sold in Japan includes consumption tax paid for gold, then isn’t that artificially increasing value of gold by 8% each time gold are sold in Japan? When selling gold with a price tag of 1,080,000 yen then there should be 86,400 yen consumption tax collected, then if new owner sell that gold then the price tag become 1,166,400 yen?

Anyway, this is the way authority is describing thing work and they have seen increase of gold smuggling into Japan as consumption tax increased form 5% to 8%. When consumption tax will increase from 8% to 10% then authorities are expecting to see further increase of gold smuggling. Advantage of gold is it can easily melted and get rid of any marking which can be traced.

Authority has obtained passenger list of JW172 on July 9 and start investigating by flowing up on passengers onboard the flight.

jib71

The bullets were in a trash can. [Toilet was suggested as a better place to dispose of them, but that was part of a discussion that was closed by the moderator].

Perhaps the Japanese authorities aren't the only ones looking for the person who lost the gold bars in the lav.

And, if my calculations are right, 10Kg of gold would enable about 3Million JPY of tax dodge (roughly $26K).

mkjr

would diamonds not be easier?

AlwaysAisle

As mentioned, advantage of gold is can easily melted and get rid of any marks which can be traced.

shuigao

An ~8% profit margin (not counting the costs of the flight and other stuff) seems remarkably low for a smuggling operation, considering the risks of getting the gold confiscated. I mean, even legitimate, law-abiding companies / businesses should mostly be hitting at least double-digit profit margins, so why bother going the illegal route for lower returns?

beep88

Lots of casual travellers from HK are being recruited to smuggle gold, hence increased searches for these travellers.

http://www.scmp.com/news/asia/east-a...ld-bought-hong

mwalsh

If it's stolen gold to start with then the margins are much, much better.