Smuggling cigarettes from China through their Auckland company Enternal Trading Ltd resulted in proceeds of crime orders totalling $900,000 imposed on director Bo Lin and sales manager Jialiang Du. Customs duty evaded by smuggling was estimated at $1.2 million.
In July 2019, Customs intercepted a container at Auckland Port with some 480,000 Chinese cigarettes hidden inside boxes of food imported by Enternal Trading. A further 603,000 cigarettes were found at a storage unit linked to Mr Du. A WeChat message on Mr Lin’s phone sent after the Customs interception asked his China suppliers why cigarettes were loaded into his container. Customs found all prior WeChat messages had been deleted. It also found a handwritten note at Mr Lin’s home detailing these stratagems as ploys to deflect Customs enquiries.
Proceeds of crime restraining orders were placed over property owned by Mr Lin in Auckland suburb New Windsor and Mr Du at Whenuapai. Both were convicted of Customs fraud; Lin sentenced to nine months home detention, Du two months.
The High Court approved a negotiated settlement with profit forfeiture orders of $900,000 imposed under the Criminal Proceeds (Recovery) Act; $600,000 payable by Mr Lin, $300,000 by Mr Du. Orders were made for sale of the restrained properties. The court was told these profit forfeitures took into account the fact Enternal Trading had separately paid sums due to both Customs and Inland Revenue.
Commissioner of Police v. Lin & Du – High Court (16.05.22)
22.086