Iran Reports Discovery and Seizure of Three Large Smuggled Gold Shipments in Three Provinces

The head of Iran's Central Headquarters for Combating Smuggling of Goods and Currency announced the discovery and seizure of three large shipments of smuggled gold in the provinces of Hormozgan, West Azerbaijan, and Bushehr. According to a report on Wednesday, March 10, from the ISNA news agency, Habibollah Haghighi stated: "The smuggled shipment in Hormozgan included 214 kilograms of gold worth 32 billion and 300 million tomans discovered in the waters of the Persian Gulf, which was supposed to be transferred to the UAE along with a load of potatoes." According to Mr. Haghighi, the defendants in this case have been fined 64 billion and 700 million tomans. He mentioned that in another shipment, 24 kilograms of gold worth 1 billion and 700 million tomans was supposed to be transferred from the UAE to Iran via suitcase, and the smugglers have been arrested. Mr. Haghighi stated that the defendants in this case have been sentenced to two years in prison and must pay a fine of three billion and 400 million tomans, which is double the value of the smuggled goods. He also mentioned that another shipment worth 2 billion and 900 million tomans and weighing 17 kilograms was supposed to enter Iran through the northwestern borders hidden in a CNG cylinder in a Samand vehicle. According to Mr. Haghighi, one of the defendants in this case has been sentenced to one year, while the others have received five-year sentences, and the gold shipments have been handed over to the Central Bank. He also noted that the Samand vehicle used by the smugglers has been confiscated for the benefit of the government. Various statistics have been reported regarding the amount of gold smuggling into Iran and also the smuggling of gold from Iran to other countries. In the latest instance, Abdollah Mohammad Vali, the head of the Gold and Jewelry Producers Union, announced in March that despite the ban on importing gold and jewelry products, about 50 to 60 percent of the Iranian market consists of foreign products. The Iranian Ministry of Industry has stated in recent years that 90 percent of jewelry and gold transactions in the country are smuggled. On the other hand, some Iranian officials have reported a significant outflow of gold being smuggled out of Iran. For instance, in 2012, following fluctuations in the currency market in Iran, Arsalan Fathipour, the head of the Economic Commission of the Islamic Consultative Assembly, mentioned that a significant amount of gold had been smuggled out of Iran. The head of the Central Headquarters for Combating Smuggling of Goods and Currency also stated that it is predicted that the amount of smuggling in 2014 will decrease compared to the previous year. Mr. Haghighi emphasized: "Last year, the volume of smuggling was about 20 billion dollars." The head of the Central Headquarters for Combating Smuggling of Goods and Currency announced on February 21 that the value of goods smuggled into Iran in 2013 was between 20 to 25 billion dollars, which is about half the value of goods that were officially imported into Iran last year. Mr. Haghighi also mentioned on January 21 that the volume of smuggling was 20 billion dollars in 2013, which was twice the total development budget of the country. In recent years, several Iranian officials have criticized organized smuggling in the country and have spoken about docks and entry points for goods that are beyond government control. Meanwhile, Hassan Rouhani, the President of Iran, on March 7, instructed the country's Headquarters for Combating Smuggling of Goods and Currency to take necessary and coordinated action to combat "illegal entry points and docks" and to prevent the interference of "irresponsible agencies" in imports to Iran. Previously, Mahmoud Ahmadinejad, the former President of Iran, had stated in July 2011 that several institutions and organizations were importing goods through illegal docks and borders, and that this should be stopped. Just one day after Mr. Ahmadinejad's criticism, Mohammad Ali Jafari, the commander of the Islamic Revolutionary Guard Corps, emphasized that the agency under his command "like other military agencies, has military docks at its disposal, but no commercial transactions are conducted there."