Key facts
- Japan plans to strengthen customs authority to curb gold smuggling.
- The goal is to prevent tax evasion through the export of untraced gold.
- Gold exports in fiscal 2025 reached ¥4.09 trillion ($25.7 billion), up 35.6%.
- Imports were ¥177.7 billion ($1.1 billion) in fiscal 2025.
- Export volumes in April-May 2026 fell about 50% year-on-year.
- New verification measures for physical gold against serial numbers began in August 2026.
Japan's Finance Ministry is planning to enhance the powers of customs authorities to combat gold smuggling and prevent the export of untraced gold, which is often used to evade taxes. The scheme exploits Japan's consumption tax system, allowing criminals to profit from tax refunds on exported gold that was originally smuggled into the country. In fiscal year 2025, Japan's gold exports surged to a record ¥4.09 trillion ($25.7 billion), a 35.6% increase, while imports were significantly lower at ¥177.7 billion ($1.1 billion), resulting in a substantial export surplus of 208 tons. This sharp increase in exports is largely attributed to smuggling activities. To counter this, customs authorities implemented measures requiring documentation of gold purchase sources in November 2025, which led to a roughly 50% drop in export volumes in April-May 2026. Further verification measures, including checking physical gold against serial numbers, were introduced in August 2026.