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Chinese Customs Seizes 670 Bottles of Bordeaux First Growths

vino-joy.com by Morris Cai13/08/2024  

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Chinese customs officials have seized 670 bottles of top Bordeaux, including Lafite, Latour, and Margaux, in a smuggling case valued at more than RMB 3 million (about US$410,000).

The illicit wines were discovered at Meishan Customs, which operates under the jurisdiction of Ningbo Customs, according to a recent statement on the official Weibo account of China Customs, “Customs Release.” The wines were hidden among other imported wine shipments and were detected during a routine inspection.

Customs officials said that the wines were part of a shipment declared as bonded warehouse goods. During the inspection, officers found undeclared alcoholic products concealed within the cargo. The seized goods have been handed over to the anti-smuggling department for further investigation.

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Although the quantity of smuggled wine was relatively small, the high value of each bottle made the seizure significant. Xie Jianjiang, general manager of Ningbo Bonded Zone Yongyu Trading Co., Ltd., one of China’s top 50 wine importers, told Vino Joy News that even in ordinary vintages, the CIF (cost, insurance, and freight) prices for Lafite, Latour, and Margaux are approximately 5,500 yuan ($750), 5,000 yuan ($680), and 4,500 yuan ($615) per bottle, respectively. Based on these prices, the total value of the 670 bottles is estimated to exceed 3 million yuan.

False declarations and the concealment of high-value goods during the import process are common smuggling tactics, according to industry experts. “Customs does not inspect every shipment,” said Shen Zelin, general manager of Shenzhen Longyi Supply Chain Co., Ltd. “After reviewing the documents, they decide whether to inspect based on factors such as the company’s credit rating.” Inspection methods include machine scanning and manual checks.

Smuggling cases involving fine wines are not uncommon in China. In June, Vino Joy News reported on a case at the Gongbei Port in Zhuhai, where a driver with dual Guangdong-Hong Kong license plates attempted to smuggle French fine wines, including Latour, Dujac, and Leflaive, into mainland China. The case involved 55 bottles of wine, with a total value of 191,000 yuan (US$26,000).

China imposes a high tax on wine, including customs duties, consumption taxes, and value-added taxes, which together amount to about 43% of the wine’s cost. The tax is levied at the time of customs clearance. For example, a bottle of fine wine with a CIF price of RMB 5,000 (US$680) would incur RMB 2,150 (US$295) in taxes.

The transparent pricing of Bordeaux classified growths has squeezed profit margins for importers, and the recent decline in sales of these wines in China has further pressured legitimate operators. The difficult market conditions have led some to take risks and engage in smuggling to pursue higher profits.

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