China smashes gangs suspected of US$750 million scrap-steel export scam
Hundreds detained in clampdown on non-payment of taxes meant to encourage use of scrap in domestic industry
China has detained 245 people after a nationwide raid of gangs suspected of illegally selling more than 2.4 million tonnes of steel scrap to buyers across Southeast Asia.
Chinese authorities carried out multiple raids starting Monday morning after an investigation into unusual activity unearthed a network that was shipping scrap without fully paying the 40 per cent export duty, the General Administration of Customs said in a statement on Wednesday.
Some 65 gangs were targeted and the value of the goods is estimated at 4.8 billion yuan (US$750 million).
The authorities said their suspicion was raised by a sudden increase in the volume of iron and steel scrap exports.
After investigating, customs police moved to break up the ring, which they believe was coordinated by a Chinese company and a Thai company, according to the statement which did not name either firm.