Economy

Luxury garment smuggling cases busted

(Xinhua)
Updated: 2010-04-26 11:28

HANGZHOU: Eight suspects have been arrested on charges of smuggling 102 million yuan ($14.9 million) garments of international luxury brands into the Chinese mainland, the Customs of Hangzhou city, east China's Zhejiang province, said on Sunday.

The local customs' anti-smuggling department said the suspects smuggled and sold 24,000 garments of about 70 international brands, including luxury LV, Prada, D&G and Gucci, with a value of 102 million yuan ($14.9 million).

The smuggling suspects were accused of evading 25.65 million yuan ($3.75 million) in taxes and court proceedings against them have started, local Customs said.

The Customs in Hangzhou City uncovered in November 2008 during their routine inspection that some local garment shops sold clothing of genuine international brands one fifth or one fourth cheaper than franchise stores in large numbers.

Customs enforcement officers then launched investigations and later found three local garment shop owners were suspected of smuggling the clothes into the Chinese mainland from Hong Kong since 2005.

After buying those luxury garments from 10 suppliers in Hong Kong, they hired individual smugglers to transport the clothes into the Chinese mainland via Shenzhen, which borders Hong Kong.

China imposes about 10 percent to 16 percent of tariff of imported garments, together with an value added tax rate at 17 percent.