Border Force busts huge illicit tobacco ring in China with 60m cigarettes worth $92 million heading to Australia

Australian Border Force (ABF) has helped bust a major illicit tobacco smuggling ring operating out of China, targeting the Australian tobacco black market.

Officers have seized over 60 million cigarettes and 60 kilograms of loose-leaf tobacco, worth a combined duty evasion of $92 million.

Police in China arrested more than 60 people believed to be involved in the criminal network, leading to the referral of 112 concerning shipping containers headed to Australia to the ABF.

All of the containers were expected to arrive in ports across Australia between January and May.

Officers in Australia and China believed the consignments contained illicit tobacco, planned to enter the Australian black market.

The Anti-Smuggling Bureau of General Administration in China Customs (ASB) uncovered the methods of the criminal ring, believing the tobacco was manufactured in Southeast Asia and smuggled into China.

Officials reported the tobacco was then transported to logistics centres where it was hidden within legitimate cargo like LED lamps and printers destined for Australia from Shanghai.

ABF Assistant Commissioner Targeting and Intelligence Operations Penelope Spies marked the bust as one of the most important tobacco takedowns in Australian history.

“We use comprehensive and trusted targeting intelligence – including from offshore partners and international referrals, that allow us to target specific containers and consignments to ensure our resources are focused where they will have the greatest impact,” she said.

“This outcome demonstrates the value of working beyond Australia’s borders to stop illicit tobacco before it reaches Australian communities.”

The country has seen an astonishing increase in the illicit tobacco industry over the past years, with 80 per cent of tobacco consumed in Australia now believed to be illicit.

Australia has been working closely with border control in China over the past year in a bid to crack down on illegal tobacco and vapes.

In the past year, the ASB has shared information with the ABF that has now led to the seizure of more than 89 million cigarettes, 11 tonnes of loose-leaf tobacco and one million vapes at Australian borders.

Ms Spies honoured the international communication between border forces.

“This exceptional result would not have been possible without the close and enduring partnership between the Australian Border Force and the Anti-Smuggling Bureau of General Administration of China Customs, and I thank them for their continued support,” she said.

Pressure has been put on government to make changes to stop the booming illicit market, with high tobacco excise believed by some to be the primary factor in its rise.

Currently, the government has opted for an approach that tightens enforcement, citing that excise cuts won’t stop the illegal trade.

The tobacco black market, and the desire for control of it by criminal groups, is also a driving factor behind frequent violent criminal scenes across big cities, including arson attacks and shootings.