Last month, Chinese customs extradited the mastermind behind a smuggling operation valued at RMB 25 million (US$ 3.43 million) involving fine wines such as Penfolds and Lafite. This marks the first publicly reported wine smuggling case involving extradition in China.
In the wee hours of November 17, an international flight brought the fugitive, known as Lin, to Shenzhen Bao’an International Airport in China. Lin was the ringleader of a smuggling case that took place on July 9, 2021, and had been hiding overseas for three years.
Xian Chengxian, an officer from Liantang Anti-Smuggling Agency in Shenzhen, stated: “Lin, the mastermind of the ‘July 9’ smuggling gang, evaded capture by operating from the shadows and remotely commanding the operations for an extended period, largely remaining unknown to the public.”
According to Xian, on July 9, 2021, Lin instructed gang members to smuggle high-value goods into China using false trade declarations. The smuggled goods included imported wines and other goods. Videos from official media showed that the wines involved included Penfolds and Lafite.
After the case was blown open, all other members of Lin’s gang were captured, while Lin hurriedly fled abroad. He first escaped to a country in West Asia and then moved through several countries, frequently changing hiding places and laundering his identity to evade capture.
The Shenzhen Customs Anti-Smuggling Bureau issued a red notice through Interpol, systematically narrowing his options for escape. Finally, in November of this year, he was apprehended and extradited back to China.
Vino Joy News uncovered a report published in 2021 that is likely related to this case. According to the report, in July 2021, during an inspection, Liantang Customs officers discovered that the declared 18.57 tons of rubber granules did not exist. Instead, the shipment contained a substantial quantity of undeclared high-end wines, seafood, and hair care products. Upon inspection, a total of 4,174 bottles of wine and spirits were seized, including brands such as Lafite, Mouton, and Penfolds, as well as champagne and whiskey.
Vino Joy News contacted the Liantang Anti-Smuggling Agency to confirm whether the 2021 report pertains to Lin’s “July 9” case, but the office declined to comment.
Shenzhen, Top of Wine Import but Troubled by Smuggling
Shenzhen, located in southern China, is one of the country’s four first-tier cities and a major hub for wine imports. According to the Shenzhen Liquor Association (深圳市酒类行业协会), there are approximately 3,800 wine importers in the city, the highest number in China. Thanks to the city’s high per capita spend, the city’s drinks market is valued at RMB 35 billion (US$5.18 billion).
Due to its proximity to Hong Kong, a free port with zero wine tax, many wine merchants in Shenzhen benefit from the access to abundant wine supply resources. However, this closeness also makes Shenzhen a hotspot for wine smuggling cases.
The methods of wine smuggling are diverse. Cases revealed by Shenzhen customs include smuggling through “parallel traders” (locally known as “water guests”) from Hong Kong into Shenzhen, as well as under-reporting or falsely reporting goods.
In 2017, the Shenzhen Customs Anti-Smuggling Bureau conducted an operation targeting wine smuggling, seizing 100,000 bottles of suspected smuggled wine on-site, with an estimated value of around RMB 80 million (US$ 10.99 million) and an alleged tax evasion of about RMB 20 million (US$ 2.75 million). These wines were smuggled through under-reporting and “parallel traders.”
The “July 9” smuggling case involved the illicit transport of wine and other items through false declarations. This case occurred in 2021 during the pandemic, when border closures made the use of “parallel traders” nearly impossible, likely prompting smuggling groups to resort to falsifying cargo information.
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