Australian Border Force intercepts 12 million illegal cigarettes mislabelled as vending machine

Australian Border Force officers in Sydney have discovered an estimated $15.3m in illegal cigarettes after examining a consignment from China, which purported to be a vending machine.

The Australian Border Force says it has seized an estimated $15.3 million worth of illegal cigarettes, which arrived in NSW from China last week.

On Tuesday, the ABF said more than 12 million illegal cigarette sticks had been detected inside a single consignment.

The shipment arrived at the Sydney Container Examination Facility last Friday, August 23, when it was found to have been wrongly declared as a vending machine.

The shipping container where the illegal cigarettes coming in from China were located. Picture: Australian Border Force/Supplied

The shipment is estimated to have been worth more than $15 million, with ABF commander Ken McKern stating that this was money that criminals won’t get their hands on.

“The Australian Border Force is targeting and seizing record levels of illicit tobacco at the border, which serves as a significant deterrent to those involved in the illegal importation of tobacco into Australia,” Commander McKern said.

“There is a common misconception that engaging in the illicit tobacco trade is a victimless crime, but it is far from it. “Involvement in illicit tobacco is a serious offence. There are well-documented links between the distribution and sale of illicit tobacco in Australia and serious and organised crime syndicates.”

The shipping container was wrongly declared to be carrying a vending machine. Picture: Australian Border Force/Supplied

Commander McKern pointed out that money gained from illicit tobacco trade was used to fund other illegal activities.

“Organised crime syndicates use illicit tobacco income to fund other illicit activities that cause significant harm to our community, such as illicit drugs,” he said.

“Organised crime syndicates pressure tobacco retailers across Australia to buy and sell their illicit product. They use gangs to enforce compliance including torching tobacco shops, standover tactics and shootings.”

During the 2023-24 financial year, the ABF uncovered more than 51,600 detections of illicit tobacco. This consisted more than 1.8 billion cigarettes and in excess of 436 tonnes of loose leaf tobacco.

Law enforcement estimates that more than $15 million worth of illegal cigarettes were seized. Picture: Australian Border Force/Supplied

These seizures have cost criminals an estimated $3 billion in potential evaded duty.

The penalties for smuggling tobacco include up to 10 years in jail, and a fine of up to five times the amount of tax evaded.

An estimated 12 million illegal cigarettes were seized. Picture: Australian Border Force/Supplied

Interim Illicit Tobacco and E-cigarette Commissioner Erin Dale warned people against buying illegal cigarettes.

“The ABF and their partners continue to work together to identify, disrupt and prosecute those responsible for causing harm in the community by trading in illicit tobacco but this threat cannot be defeated by law enforcement alone,” Commissioner Dale said.

“At a community level, we need to reduce the demand for all illicit commodities, and I remind people that by purchasing illicit cigarettes, you are directly supporting organised crime.”