New Zealand Customs has seized 1.5 million cigarettes and about $500,000 in cash, in a large-scale tobacco smuggling operation across Auckland.
Two men – a 36-year-old Chinese national working as an accountant, and a 43-year-old Malaysian national on a work visa – were arrested following coordinated search warrants executed at five storage units and homes, Customs said in a statement on Thursday.
The cigarettes represent an estimated $2.2 million in evaded excise taxes, the statement said.
Both defendants appeared in the Manukau District Court on Tuesday on charges including possession of undeclared goods and defrauding Customs revenue. They were remanded in custody, Customs said.
Chief Customs Officer – Fraud and Prohibition, Nigel Barnes, said the bust was part of a wider crackdown on illicit tobacco entering New Zealand through various smuggling methods.
“In recent months, Customs has taken enforcement action against several individuals involved in illicit tobacco activities, with smuggling attempts seen through air, sea, and mail channels,” Barnes said.
“Illicit tobacco smuggling is not without criminal consequences. This operation included the seizure of significant cash assets, which could have been used for other unlawful purposes,” he said.
Barnes added the $2.2 million in lost tax revenue was money that would otherwise support public services in New Zealand.