Illicit Chinese-imported cigarettes are being delivered Uber-style to desperate smokers’ homes and sold under the counter at hot spots including Dandenong Market, as Melbourne’s tobacco black market flourishes. WATCH VIDEO
Paul Shapiro and Suzan Delibasic,
October 29, 2019
Herald Sun
Australian Border Force arrested a number of people after a series of raids across Melbourne in connection to illegal tobacco
Smokers desperate to avoid the rising cost of cigarettes are fuelling the black market in illegal tobacco which is flourishing in Melbourne’s southeast.
And the sale of the contraband is boosting crime and leaving legitimate retailers struggling to compete.
According to government data, Australian Border Force made more than 286,600 illicit tobacco detections in the last financial year, grabbing more than 426.2 million cigarettes, 310.6 tonnes of tobacco, which equated to more than $668.9 million in evaded duty.
An ABF taskforce last week raided four houses, a storage facility and three commercial properties across Melbourne, seizing a large quantity of illicit sticks, tobacco, cigarette manufacturing supplies, drug paraphernalia and one vehicle and detaining three unlawful non-citizens found working at the manufacturing facility.
Illicit “chop chop” is easily available at Dandenong Market.
At one stall last week, people queued to buy cartons of illegal cigarettes which were hidden under the counter.
The Leader obtained a box, which was sold as Rollo Red filter tubes – but the tubes were already packed with the prohibited tobacco.
One woman said she buys from the stall once a week to stock up because of the price.
“I pay $80 for 200 cigarettes – why wouldn’t I come here? I’m saving so much money now,” she said.
“I don’t think it’s wrong what they’re doing – the reality is it’s too expensive to get support and products when you’re trying to quit … that’s why I haven’t yet.”
In Victoria a packet of 25 cigarettes cost about $45.
Another woman from Dandenong, revealed she buys illegal Chinese imported cigarettes via an Uber-style delivery to her house every week.
“I met the seller at a market stall and he lets me order the smokes via text and delivers them straight to my door every week,” she said.
“It’s easy and convenient and the cigarettes are really good quality – heaps of people are doing this.”
An ABF spokesman warned criminal syndicates use illicit tobacco profits to fund other “illegal activities”.
“Criminal syndicates, and those who import undeclared tobacco are motivated by Australian tax rates on cigarettes which are among the highest in the world,” the spokesman said.
“This makes the enterprise of smuggling tobacco more appealing and profitable. As a result, the ABF has seen a rise in transnational crime groups seeking opportunities to enter into the illicit tobacco market in Australia.
“Those criminal organisations tend to be well networked, well-funded and highly organised.
Earlier this month Chinese national Xin Wang, 35, was jailed for his role in a sophisticated racket to illegally smuggle cigarettes hidden in metal fans from China.
He was sentenced in the County Court on October 2 to 12 months’ prison after pleading guilty to attempting to possess tobacco products knowing the goods were imported with the intention to defraud the Commonwealth.
Wang, who was in Australia on an expired visa, was caught with cigarettes and $160,000 by Australian Border Force officers on June 5, 2018.
He had been under ABF surveillance since the illegal smokes were tracked to a Wheelers Hill home in early April.
Wang was spotted at the home handing an envelope to two men who had received the illegal consignment.
Some of the estimated 800,000 Chinese branded smokes were loaded into a vehicle bound for Springvale station. It was estimated the cigarettes would have cost the government more than $560,000 in revenue.
Wang, who also pleaded guilty to handling money suspected to be the proceeds of crime, was sentenced to 22 months in prison but 10 months were wholly suspended.
He walked free from court as he had spent 485 days in custody at the time of sentencing.
Co-accused Han Hua Chen fled to China but will be charged if he returns to Australia.
A third man connected to the scheme has pleaded not guilty several charges and will face court next year.
Last week, a Dandenong tobacconist, who asked not to be named, said she gets “people of all ages including students” coming to her store asking for illegal cigarettes.
“We send them away, but they tell us the market sells it to them – it really hurts our business,” the business owner said.
Dandenong Market general manager Jennifer Hibbs said she was unaware of illegal tobacco sales at the market and said the City of Greater Dandenong was responsible for enforcing the laws on tobacco sales.
“We work closely with the City’s Health Department which monitors these kinds of activities.”
Greater Dandenong Council planning and design manager Brett Jackson said the council would liaise with DHHS to investigate the claims of illegal sale “as a priority”.
Mr Jackson said the maximum penalty under the Tobacco Act for a tobacco retailer processing illicit tobacco was $198,264 for a company and $39,652 for a person.
Victoria Police said they knew of several platforms, both online and in public settings, where illegal tobacco sales occurred and worked with councils, Border Force, Australian Federal Police, the Australian Taxation Office and the Department of Health and Human Services in “detecting and disrupting offences relating to illegal tobacco”.
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