Contraband cigarettes seized highest since 2009

SINGAPORE — Contraband cigarettes continue to top the list of most-smuggled goods here, but the authorities have warned of an emerging trend of online retailers evading or under-declaring the Goods and Services Tax (GST) for imported goods.

The latest figures from Singapore Customs showed that three million packets of contraband cigarettes were seized last year, the highest number since 2009. It also seized 243 vehicles involved in smuggling contraband cigarettes last year, a 65.3 per cent increase from the 147 seized in 2013.

A total of 1.1 million packets of contraband cigarettes, valued at more than S$11 million, were recovered from those vehicles.

The cigarettes were found in modified compartments of the vehicles such as the floorboard, rooftop compartments and fuel tanks.

Customs said the operations of three contraband cigarette syndicates were disrupted last year, which led to more than 57,000 packets of contraband cigarettes being seized and the arrest of 11 individuals.

Those arrested included seven Chinese nationals, three Singaporeans and a permanent resident from Malaysia. The syndicates smuggled the goods mainly by land.

Last year, the total number of contraband cigarette offenders nabbed saw a third consecutive year-on-year decline. There were 23,862 offenders caught, down from the 2013 figure of 27,041 and 2012’s 28,502. Despite the drop in numbers, the figures suggest demand for contraband cigarettes remains strong, said Singapore Customs.

The number of people prosecuted for fuel gauge offences has also been on the decline, it said.

Last year, there were no prosecutions for the offence, while 24 were prosecuted in 2010.

The tanks of all Singapore-registered vehicles travelling to Malaysia must be at least three-quarters full. Motorists who flout this rule can be fined up to S$500.

The total number of liquor offenders rose to 1,305 last year, compared with 1,268 in 2013. Singapore Customs said a liquor syndicate was disrupted last August for attempting to smuggle about 64,800 cans of duty-unpaid beers and two Chinese nationals were arrested.

Last year, the Government raised duties for liquor by 25 per cent to keep pace with inflation, a move that took the industry by surprise.

Singapore Customs also warned yesterday of an emerging trend of online retailers attempting to evade or under-declare GST.

Nine offenders were prosecuted last year for the offence. They had attempted to evade GST by using fake invoices to suppress the value of goods imported or under-declaring the value of goods on their import permit declaration. Most of the offences involved luxury handbags and accessories.

Mr Lee Boon Chong, senior assistant director-general of Singapore Customs’ intelligence and investigation branch said he foresees the trend will continue to rise as the number of online retail shops grows and demand for their goods increases.

Singapore Customs said it will continue to keep a close watch on online retailers and clamp down on those who try to evade GST.

Buying, selling, conveying, delivering, storing, keeping, possession or dealing with duty-unpaid goods are serious offences under the Customs Act and GST Act. Offenders can be fined up to 40 times the amount of duty evaded and jailed for up to six years.