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China Cracks Down On iPhoneSmuggling

November 16, 2012 by  

China Cracks Down On iPhoneSmuggling, Suppliers for what was one of China’s largest online iPhone stores have been hauled to court for allegedly evading taxes by smuggling Apple Inc’s iPhones and iPads into the country, official media reported on Friday.

On Wednesday, 26 suppliers of Lanyou Shuma.com were tried in a Shenzhen court as part of five rings that smuggled more than 162,000 mobile phones worth over 500 million yuan from Hong Kong over the past two years, the Beijing News said.

Half of the suspects are described as housewives who frequently travel to Hong Kong, according to another newspaper, the Southern Metropolis Daily, adding that they were paid 20 to 30 yuan in commission for each phone they brought back to the mainland.

The official Shanghai Daily said 25 defendants were tried for smuggling both iPads and iPhones.

The Lanyou Shuma.com digital store, once one of the largest on China’s Taobao Marketplace, was forced to close in April by Taobao after Hong Kong authorities launched an investigation on possible smuggling of the iPhone 4S, the Beijing News said.

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