$35.62 billion is the UAE gold export value in 2023, the country ranks as one of the top 5 gold exporters worldwide. With such valuable cargo, whether it’s bullion, coins, or jewelry, you can't afford any mistakes during international shipping. In logistics, there are essential considerations we keep in mind when shipping gold overseas!
Here is a comprehensive overview of the precautions and preparations needed to execute an international gold delivery flawlessly.
Gold Cargo Classification:
We accurately classify gold shipments, considering the distinctions between various forms (e.g., bullion, coins, and jewelry) and their respective HS Codes, such as gold bullion: 7108.12.10 versus non-monetary gold coins: 7118.90.00. The correct classification is crucial for determining tariffs, taxes, and trade restrictions. Failure to accurately classify can result in significant fines, delays, and the potential seizure of the shipment.
Gold Cargo Packaging:
For internal packaging, we start with durable, industry-standard materials like hard plastic cases. For external packaging, we use strong, non-descript outer packaging such as plain cardboard boxes without any markings that indicate the contents are valuable. This helps in avoiding unwanted attention.
Gold is often transported in specialized sealed containers, AKA tamper-evident containers, that show clear signs of interference. This ensures that any unauthorized access during transit is easily noticeable. Then we reinforce the package with strong packing tape, especially at edges and openings, to prevent accidental or intentional opening.
We do not use any labels on the packaging that suggest the contents are valuable (e.g., avoid labels like "expensive," “precious metals," etc.). Still, we properly label the package for any specific handling instructions needed to protect the contents without revealing their nature (e.g., "Handle with Care," "Do Not Crush").
Insurance and Liability Considerations:
Shipping gold internationally necessitates comprehensive insurance coverage. Our role is to arrange adequate insurance that covers all potential risks, including theft, loss, and damage during transit. Insurance for gold shipments typically falls under "All Risks" policies rather than "Named Perils" coverage. Always insure the gold shipment for its full value, it is a worthwhile investment.
Additionally, liability must be clearly defined at every stage of the logistics chain. Incoterms (International Commercial Terms) play a crucial role in determining the point at which risk transfers from the seller to the buyer (the shipping and receiving parties), affecting how liability is managed.
Some employ a risk management information system (RMIS) to collect and analyze data on every aspect of the shipment journey. This expedites the claims process and ensures a high level of transparency for all parties involved. We require a detailed declaration of the shipment's value, which often necessitates third-party verification or a professional appraisal.
Policies might still have specific exclusions; for instance, certain geopolitical regions may be excluded from coverage, or there may be limitations related to acts of war or nuclear hazards.
The insurer may require the use of approved secured packaging methods and for their own representative to escort sensitive gold shipments.
Insurance protocols for high-value gold cargo also require thorough documentation of packing methods, security measures, and chain of custody. 24/7 monitoring and guarding are often deployed during transit and storage.
Route Analysis for Gold Shipments:
As a high-value, high-risk commodity, gold requires specialized security measures if shipped in large quantities. Route analysis is a must to mitigate risks associated with geopolitical instability, piracy, or theft.
We evaluate and select secure routes, sometimes opting for multi-modal transport solutions that balance speed, security, and cost, and be prepared to alter routes dynamically in response to real-time global events.
For ground shipping, armored car pickup and transport might be required, along with trained personnel. Armored vehicles used for gold transportation are rated for specific levels of ballistic resistance, following the European standard EN 1063. These ratings range from BR1 to BR7, with BR7 being capable of withstanding armor-piercing rounds.
The armored vehicles used often have multiple layers of steel and bullet-resistant glass to protect against theft attempts. The armoring is not only to the body but extends to the vehicle's fuel tank, battery, and electronic control module.
Modern armored vehicles used for gold transportation may also incorporate other military-grade countermeasure systems. These systems can include features such as run-flat tire inserts, smoke screen dispensers, oil slick deployers, and electromagnetic pulse (EMP) defense mechanisms.
The armoring process involves using materials such as Kevlar, ballistic nylon, and hardened steel plates.
As for air freight, cargo is kept in controlled access cargo holds in the aircraft. We manage strategic flight scheduling to minimize layovers and ensure direct routes when possible. Depending on the shipment’s value, planning air routes also involves negotiating with airlines for priority loading and unloading to reduce tarmac exposure time.
In-Transit Visibility:
Real-time tracking technologies are employed to maintain precise in-transit and customs clearance visibility. Secured transit corridors are established using geo-fencing technology, which creates a virtual boundary around the transportation route. If the shipment deviates from this route, automated alerts are triggered, and response protocols are activated.
Each piece of gold can be equipped with IoT sensors that record and transmit data on location, temperature, shock, and more, directly to a blockchain. This creates an immutable record of the shipment's journey, enhancing security and accountability.
For air cargo, security measures extend to active monitoring systems that not only track but also allow for in-flight control. Gold containers can be remotely locked or unlocked via secure satellite communication links, allowing for mid-journey security adjustments if necessary.
We provide accurate declarations of contents for customs, where applicable, while maintaining thorough documentation and records of the shipment, including insurance certificates, bill of lading, and tracking information. For confidentiality purposes, information about the shipment should only be shared on a need-to-know basis via secure communication channels.
Shipping Gold — Handling Protocols:
Based on the value of the shipment, a security escort may accompany the cargo in transit, maintaining custody and surveillance from origin to destination.
The secure handling protocol extends to the chain of custody documentation, recording every handover point in the shipment's journey. This includes personnel identification, time stamps, and secured access controls at each transit point.
Some logistics companies employ smart custody chains using digital tokens to represent physical gold bars or parcels, with the digital token being transferred between parties instead of the physical item for each leg of the journey. This reduces the risk of theft or tampering, as the physical gold can remain in secure vaults while its ownership changes hands virtually.
Gold shipments are not only at risk from physical theft but also cyber threats that target logistics and tracking systems. We employ advanced intrusion detection systems (IDS) to monitor networks for unusual activity that could indicate a cyberattack.
Some airports have Secured loading areas with Access control includes biometric identification, multi-factor authentication, and segregated door interlocking to prevent piggybacking. CCTV coverage has built-in analytics to detect perimeter breaches. To note, many logistics providers adhere to the Transported Asset Protection Association (TAPA) standards, which include facility security requirements (FSR) for air cargo.
As logistical experts, we always have a process in place for the recipient to verify the contents immediately upon delivery in the presence of the delivery personnel, if possible. This helps in quickly resolving any disputes related to shipment tampering or loss.
UAE Regulations on Responsible Sourcing of Gold:
According to the UAE Ministry of Economy on responsible sourcing of gold:
- Companies must conduct risk-based due diligence on the source and chain of custody for imported gold.
- Know Your Customer (KYC) procedures should be established to identify and verify suppliers, including collection of ownership, license, and origin information for documentation purposes.
- A record-keeping and database system should trace gold from origin to export, including chain of custody and transaction details, that is what we offer as a logistics partner.
- Companies trading in gold should adopt a gold supply chain policy, appoint a compliance officer, provide staff training, and have audit procedures. We, as a logistics partner, also help with the compliance process.
- Risk assessments should consider country, supplier, transaction, product, and delivery risks. Enhanced due diligence, like site visits, may be required for high-risk supply chains.
- Companies trading in gold must submit annual audit reports on their due diligence framework to the Ministry of Economy.
- Failure to comply with the regulations can lead to penalties, restrictions, or the loss of trade/operational licenses.
Moving gold to or from the UAE? We can tailor an end-to-end logistical solution today! Our team customizes gold shipping services in the UAE and beyond, covering over 120 countries. Describe your shipment to our logistics team via