Source:
https://scmp.com/news/china/society/article/1877043/hundreds-police-southern-china-seize-smuggled-infant-formula
China

Hundreds of police in southern China seize smuggled infant formula worth HK$630 million

Foreign brands of infant formula are in high demand in China. Smuggling gangs avoid paying taxes by hiring individuals to carry small quantities of legally bought duty-free goods across the border. Stock Photo

More than 18,000 cans of smuggled milk powder – estimated to be worth 520 million yuan (HK$630 million) – have been seized at warehouses in southern China, according to local media

Customs officials seized 18,586 tins of overseas brands such as Friso, Abbott, and Wyeth at warehouses at Guangzhou, Shenzhen and Zhuhai, the New Express Daily reported on Sunday.

Also seized were 120 tonnes of biscuits from the UK, Japan, and Hong Kong, and 100 tonnes of Japanese energy drinks, worth a total of 16,150,000 yuan.

The raid resulted in 42 arrests involving seven alleged smuggling groups. More than 300 customs and police officers and 80 vehicles were involved in the operation at more than 30 locations

Police say that smuggling groups hoard milk powder, biscuits, and other daily goods in Macau and Hong Kong.

The gangs use “parallel traders” to legally buy small quantities of the goods tax-free and carry them across the border. The gangs collect the goods on the other side, then resell them without paying import duties, making large profits.

According to the report, it was the largest milk powder-smuggling caught in China so far. Investigations are continuing.