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Australian and Chinese authorities have confiscated almost $100 million worth of illicit tobacco in what federal authorities are touting as a major boost for bilateral relations amid Beijing’s crackdown on the lucrative illegal cigarette market.
Australian Border Force officials, acting on intelligence from Chinese authorities, intercepted more than 100 shipping containers between January and May, 91 of which contained 60 million illegal cigarettes and 60 kilograms of loose-leaf tobacco. The haul has an estimated value of more than $92 million, the ABF said.
Officers from the Anti-Smuggling Bureau of General Administration of China Customs arrested 60 people suspected of being involved in an international criminal syndicate smuggling millions of South-East Asian-manufactured cigarettes into Australia after identifying the network’s smuggling routes.
Chinese authorities believe the majority of the tobacco was manufactured in South-East Asia and smuggled to Shanghai, where it left in shipments purported to contain LED lamps and printers.
Assistant Commissioner Penelope Spies said the seizures at Sydney and Melbourne, under two investigations – Project Seahorse and Operation Trailblazer – were some of the most significant to arise from information shared by Chinese authorities.
“This outcome demonstrates the value of working beyond Australia’s borders to stop illicit tobacco before it reaches Australian communities,” she said.
“We use comprehensive and trusted targeting intelligence – including from offshore partners and international referrals, that allows us to target specific containers and consignments to ensure our resources are focused where they will have the greatest impact.”
The seizures come amid a pledge from One Nation leader Pauline Hanson to slash Australia’s tobacco excise by 75 per cent to make legal cigarettes nearly as cheap as those sold on the black market.
Intelligence shared by China’s anti-smuggling authorities with the ABF since last July has led to seizure of 89 million illegal cigarettes, 11 tonnes of loose-leaf tobacco and a million vapes.
Wang He, the deputy director-general of China’s anti-smuggling bureau, said the joint operation had cut off a major smuggling route utilising mainland China.
Assistant Customs Minister Julian Hill told this masthead that “intelligence from foreign partners is critical to fighting these transnational serious and organised criminals”.
“Disrupting the trade means going after the criminal syndicates and dismantling their operations, which is what the Australian Border Force and Chinese customs have done in this large-scale operation.”
Officials from both agencies this week held a roundtable focused on strengthening their relationship as part of an increased effort to combat the multibillion-dollar illegal market that has left a gaping hole in Australia’s budget.
The four-day meeting has allowed officials to share information about illicit supply chains and map the layout of the illegal market and the impact of transnational organised crime.
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