The discrepancy of $4.2 billion, or 79 percent of gold value reported by Hong Kong, approximates what was smuggled out of the Philippines. The UN Comtrade data show that from $590 million in 2012, smuggled gold even increased to $716 million the next year. With $4.2 billion smuggled, and therefore not sold to the BSP, the country lost about $2.5 billion in foregone foreign exchange. With P222 billion smuggled and therefore unreported, government lost P14 billion in foregone taxes. A significant part of the smuggled gold is shipped to Hong Kong through our ports, but undervalued, with the connivance of corrupt customs officials.

Source: Manila Times February 21, 2017 16:41 UTC