Chinese customs reveal details of RMB 500m smuggling case

New details released by Chinese Customs regarding one of the biggest drinks smuggling cases in China in recent years have revealed a sophisticated network of shell companies, operating in both Tianjin and Beijing, smuggling untaxed wines, spirits and beers worth about RMB 500 million (US$73.5 million).

Chinese customs uncovered two illegal warehouses owned by Lin Sen.

According to a report by Chinese language Legal Daily, a company called Lin Sen International Trading caught Tianjin customs officials’ attention following the complete disappearance of its trading activities in Tianjin after it imported RMB 100 million (US$14.7 million) worth of spirits, wines, beers and mineral waters between August and December in 2015.

The sudden halt raised customs officials’ suspicion and further investigation led them to discover a company with the same name in Beijing. The company opened up in the Chinese capital shortly after the Tianjin one went silent, and within a short span of three months, it imported more than RMB 100 million worth of alcoholic beverages before going off radar again.

Further investigation revealed that five companies – Tianjin Lin Sen, Beijing Lin Sen, Tianjin Site, Tianjin Lexin, Beijing Jiabao – all operated in similar ways and shared the same staff, logistics patterns and financial activities.

From March 2015 to December 2016 the five shell companies, led by suspects named Kong and Peng, under-declared the value of imported drinks from Germany, France and Russia by 60% to 90%, according to the report.

The lead suspect in the case, named Peng, turned out to be the same fugitive that has been flagged by customs officials in Dalian for smuggling wines back in 2000.

Tianjin is one of the main ports in China, located near Beijing, and is considered a gateway into the northern China market.

The investigation is still ongoing.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

International Sales Manager

Crush Wines Ltd
Home based/Wiltshire office, UK

Head of Marketing

Amathus Drinks Plc
London, UK

Sales Representative - Private Customers

Corney and Barrow
Central Hong Kong, HK

Export Manager UK On Trade

AdVini
Home based in London or the South East, GB

Global Head of Marketing

ATOM Brands
Tunbridge Wells, GB

Sales Executive

Three Wine Men
Home-based but must be available to travel throughout the UK with frequent trips to London, GB

Senior Sales Operations Executive

Enotria&Coe
Park Royal, London, GB

Sales Administrator

Les Caves de Pyrène
Guildford, UK

On Trade & Corporate Accounts Manager

The Champagne Company
Birmingham, UK

Customer Service Assistant

The Champagne Company
Birmingham, UK

Pink Rosé Festival

Cannes,France
7th Feb 2018

VinoVision Paris

Paris,France
12th Feb 2018

Vinisud

Montpellier,France
18th Feb 2018
Click to view more

The Global Pinot Noir Masters 2018

Deadline : 31st January 2018

The Global Organic Masters 2018

Deadline : 12th February 2018

Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more