Customs seized 927,000 cigarettes hidden in shipments from China. Photo / New Zealand Customs
Customs seized 927,000 cigarettes hidden in shipments from China. Photo / New Zealand Customs
A man has been arrested for importing nearly one million uncustomed cigarettes into New Zealand and avoiding a tax bill of $1.4 million.
The 43-year-old appeared in Manukau District Court yesterday following his arrest on August 25, when Customs executed search warrants at several addresses with assistance from the police.
He was charged with importing prohibited goods, defrauding Customs revenue, and possession of uncustomed goods.
In early August, Customs officers intercepted two shipments from China at NZ Post’s Auckland Processing Centre.
They discovered the consignments, which were declared as clothes, had instead been filled with packets of the Chinese cigarette brand Double Happiness.
The first shipment contained 340,000 cigarettes while the second had 587,000, bringing the number of cigarettes seized to 927,000.
Customs seized 927,000 cigarettes hidden in shipments from China. Photo / New Zealand Customs
Subsequent investigations determined the consignments had been illegally imported, as neither the man nor the company listed to receive the goods held an import permit for the cigarettes.
Customs determined the revenue allegedly evaded through these imports came to approximately $1.4m.
Additionally, an undisclosed commercial quantity of uncustomed cigarettes was found on the day the search warrants were executed.
Nigel Barnes, chief customs officer of fraud and prohibition, said Customs has seen a rise in large seizures of illegally imported tobacco, which is arriving by air, sea and mail.
The two shipments from China seized by Customs were declared as clothes. Photo / New Zealand Customs
“Customs is getting good successes at the Auckland Processing Centre – the new international mail processing facility – thanks to the systems and technology we’re using to inspect international parcels and goods before they’re released to the importers," Barnes said.
“Anyone involved in cigarette smuggling should know there’s a very good chance that they will be caught and face the consequences.”
Excise tax on tobacco now makes up around 80% of the cost of a pack of cigarettes, and the cost has long raised concerns that it would make tobacco products more desirable on the black market.
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