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Massive HK pipe tobacco smuggling ring busted
By Chen Xiaobin |
January 10, 2012, Tuesday
|
Online Edition
Online Edition
THE biggest-ever pipe tobacco smuggling bust has been carried out by the Hong Kong Customs and Excise Department, Hong Kong Mingpao Newspaper reported today.
The department seized around 9,600 kilograms of pipe tobacco, valued at almost HK$27 million (US$3.5 millions), from over 400 parcels at an airmail center and in three mini storages in the Tai Kok Tsui area.
Four men were arrested on suspicion of smuggling, of which two were believed to be the ringleaders of the group.
Foreign smokers reportedly have large demands for smuggled tobacco under high tobacco tax regimes. Taking advantage of this, the suspects smuggle pipe tobacco from the Chinese mainland to Hong Kong and then mail it to Britain batch by batch. Once there, the tobacco is processed into counterfeit brands and sold at an estimated 300 percent profit.
According to investigators, the group on average posted tens to hundreds of kilograms of pipe tobacco on a daily basis 鈥 once posting 1,600 kilograms in a single day at a cost of 140,000 yuan.
Li Yuanwen, chief officer of the Customs Anti Cigarette Team, said the officers grew suspicious about some of the parcels being sent to Europe, reportedly as gifts or as tea leaves, and seized about 6,600 kilograms of pipe tobacco from 471 parcels following spot checks.
C&ED then tracked down the mini storages in Tai Kok Tsui and arrested the suspects, according to the post office.
The department seized around 9,600 kilograms of pipe tobacco, valued at almost HK$27 million (US$3.5 millions), from over 400 parcels at an airmail center and in three mini storages in the Tai Kok Tsui area.
Four men were arrested on suspicion of smuggling, of which two were believed to be the ringleaders of the group.
Foreign smokers reportedly have large demands for smuggled tobacco under high tobacco tax regimes. Taking advantage of this, the suspects smuggle pipe tobacco from the Chinese mainland to Hong Kong and then mail it to Britain batch by batch. Once there, the tobacco is processed into counterfeit brands and sold at an estimated 300 percent profit.
According to investigators, the group on average posted tens to hundreds of kilograms of pipe tobacco on a daily basis 鈥 once posting 1,600 kilograms in a single day at a cost of 140,000 yuan.
Li Yuanwen, chief officer of the Customs Anti Cigarette Team, said the officers grew suspicious about some of the parcels being sent to Europe, reportedly as gifts or as tea leaves, and seized about 6,600 kilograms of pipe tobacco from 471 parcels following spot checks.
C&ED then tracked down the mini storages in Tai Kok Tsui and arrested the suspects, according to the post office.
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