Emergency Countermeasures to “Stop Gold Smuggling”
Background○ Need for prompt and smooth customs clearance of an increasing volume of passengers and cargo○ Increasing number of gold smuggling cases for the purpose of consumption tax evasion detected: 811
cases, about 2.8 tons (2016) → 976 cases, about 4.5 tons (Jan.–Sep. 2017)○ Possibility that cases detected by Customs are just the tip of the iceberg, and a considerable volume ofprofit is flowing into criminal organizations
Note: In this document, “gold” includes gold ingot, bullion and other gold products that are partially processed.

Travelers from foreign countries (10,000 people)

Gold smuggling to obtain profits (example)

4500
4,0003700

International
gold markets

2900
2,404
1,974

2100
1,341

1300

500

5 kg for 25 million yen
Export duty exemption(2 million yen)

835

835

861
679

Tradingcompanies, etc.

Reselling

Smuggling of 5 kg of gold generate a profitof 2 million yen
Hong Kong,etc.

5 kg for 27 million yen
Gold purchasing
shops

1,036
733

Japan

Exporting

836
622

H18
H19
H20
H21
H22
H23
H24
H25
H26
H27
H28
H29
H30
H31H32
2006 (2007)
2007 (2008)
2008 (2009)2009 (2010)2010 2011(2006)(2011) 2012(2012) 2013(2013) 2014(2014) 2015
(2015) 2016(2016) 2017(2017) 2018(2018) 2019(2019)2020(2020)

Note: Created based on materials from the Japan National Tourism Organization (JNTO)

Purchasing 5 kgof gold for
25 million yen

Smuggling
Evading consumption
tax of 2 million yen

Selling
5 kg for 27 million yen(including consumption tax of
2 million yen)

Exporting cash

Fundamental and emergency countermeasures areneeded to prevent gold smuggling.

1Detected gold smuggling cases
Trading by sea

A crime conducted without thought

In May 2017, while Moji, Nagasaki, Tokyo and Hakodate
Customs were monitoring suspects on a fishing boat
jointly with relevant regulatory agencies, officers foundthe boat departing from a port in Iki-shi, Nagasaki.

In Dec. 2016, Nagoya Customs officers at the Chubu
international airport conducted inspection on five females
who arrived at Centrair from South Korea and detected
approximately 30 kg of gold hidden in the underwear of
three of them.

The suspects were found to have received goldbullion from an unidentified ship on the open ocean in
the East China Sea, and were trying to smuggle them at
a port in Karatsu-shi, Saga. Eight related persons werearrested.
Detected gold totaled 206 kg (equivalent to 930
million yen), with evasion of consumption tax totaling 74
million yen.

This crime was conducted by a group of acquaintances
living in Japan without thought to obtain pocket money,
and was determined to be habitual.
The females who attempted to evade consumption tax
totaling 10 million yen were accused.

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Emergency Countermeasures to “Stop Gold Smuggling”
Basic Ideas Prompt and smooth customs clearance, and wide and strict regulatory measures against smuggling Comprehensive countermeasures in cooperation with relevant agencies
 Prompt implementation of fundamental and emergency countermeasures

Stop Gold Smuggling
I. Strengthening Inspections

II. Tightening Penalties

 Strengthening inspections ofpassengers, commercial cargo,
international mail and aircraft Strictly issuing notifications

 Installing metal detector gatesand increasing the number of Xray machines to conduct efficient
inspections
 Cracking down on smuggling by
sea using customs boats

 Cooperating with the police, thePublic Prosecutors Office, theJapan Coast Guard and otherrelevant agencies to increase thenumber of accusation
 Organizing the Special
Investigation Team at Tokyo,
Osaka and Moji Customs
 Tightening penalties

III. Enhancing the Collection andAnalysis of Information
 Collecting information from related
persons and citizens (using theSmuggling Hotline) Sharing information andcooperating with relevant
regulatory agencies in and outsideof Japan
 Strengthening ability of information
analysis
 Ensuring compliance with
distribution channels in Japan

Enhancing Publicity Activities and Strengthening Systems

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Emergency Countermeasures to “Stop Gold Smuggling”
I. Strengthening Inspections(1) Strengthening passenger inspections
 Conducting strict and thorough inspections in a flexible
and bold manner at any time, day and night Ensuring that all passengers are checked forpossession of gold
 Utilizing equipment for inspections and strengthening
body search(2) Installing metal detector gates and increasing thenumber X-ray machines
 To conduct body search without stopping the flow ofpeople, introducing metal detector gates for customs
inspections upon entry
 To conduct prompt inspections without opening
suitcases or other baggage, increasing the number of
X-ray machines(3) Countermeasures against cash couriers
 Through cooperation with relevant agencies, strictly
controlling exportation of large amounts of cash hiddenin accompanied baggage

Example of a metal detector gate

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Emergency Countermeasures to “Stop Gold Smuggling”
I. Strengthening Inspections(4) Strengthening inspections of commercial cargo
 Responding to changes in logistics, and conducting
strict examinations based on the analysis of past
seizure cases
 Checking cargo weight and conducting strict inspections
using X-ray machines , regardless of means oftransportation(5) Strengthening inspections inside aircraft

X-ray machine Conducting thorough and strict inspections of aircraftthat may be used to conceal gold for smuggling byutilizing inspection equipment in cooperation withairline companies(6) Cracking down on smuggling by sea by utilizing
customs boats
 Utilizing customs boats for surveillance activities against
gold smuggling by sea and strengthening control over
the ocean and isolated islands in cooperation with theJapan Coast Guard, etc.

Customs boat5

Emergency Countermeasures to “Stop Gold Smuggling”
II. Tightening Penalties(1) Strictly issuing notifications
 Strictly issuing notifications not only to “couriers,” but also to related persons behindthe couriers after fully disclosing the case(2) Increasing the number of accusation (Organizing the Special Investigation Team) To increase the number of accusation, cooperating with prefectural police
departments, the Public Prosecutors Office, the Japan Coast Guard and otherrelevant agencies, and promoting thorough joint investigations, including detention,
 To address the expansion of crime areas and advanced role sharing, organizing theSpecial Investigation Team, a special division at Tokyo Customs, Osaka Customs andMoji Customs that conducts cross-customs investigations involving smuggling(3) Tightening penalties
 Tightening penalties by posing heavier economic disadvantages on gold smugglers,and further enhancing deterrent effects against smuggling
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Emergency Countermeasures to “Stop Gold Smuggling”
III. Enhancing the Collection and Analysis of Information(1) Collecting information and enhancing cooperation
 Promoting information collection from related persons and information exchange between relevant
regulatory agencies to detect more gold smuggling cases and clarify the overall picture of organized
smuggling Related persons: Collecting information through the Smuggling Hotline (0120-461-961)
 Foreign Customs: Exchanging information under the Customs Mutual Assistance Agreement
 National Tax Agency: Cooperating and exchanging information for appropriate taxation
 Police and Japan Coast Guard: Exchanging information on the situation and individual cases
 Immigration Bureau: Exchanging information and cooperating to prevent smuggling at theborder(2) Strengthening ability of information analysis
 Conducting effective and efficient control through analysis and advance selection of passengers by
utilizing the Passenger Name Record and other available information
 Increasing the number of violations detected by analyzing information obtained from relevant agencies(3) Ensuring compliance with distribution channels in Japan
 Extremely important to prevent smuggled gold from being easily sold in Japan Expecting business operators who engage in gold distribution to take voluntary measures to ensurecompliance In cooperation with METI, collecting information on gold distribution routes starting from adeclaration of export and import by interviewing trading companies
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Other Emergency Countermeasures to “Stop Gold Smuggling”(1) Enhancing publicity activities Conducting publicity activities in multiple
languages to raise awareness of gold
smuggling with the aim of preventing
citizens, whether living in Japan or not,from becoming couriers(2) Strengthening Systems
 Establishing a task force in the Customs andTariff Bureau of the Ministry of Finance forcontrolling gold smuggling to provide direction
to and coordinate with regional Customs
 Organizing the Special Investigation Team
conducting cross-customs investigations ofgold smuggling (as mentioned above) Requesting an increase in the number of staff
who conduct passenger and cargoinspections, and increased budget for
inspection equipment, including metal
detector gates (for JFY 2018)8