Chinese Contraband Found in Container

Around 10:00 a.m. on May 1 at Incheon Port, two patrol ships from Incheon Main Customs approached a 3,000ton freighter ship that had come from Shanghai, China.

It was to check a tip that the ship carried containers with counterfeit Korean automobile parts made in China.

The Cargo Inspection Department’s control team and its chief Lee Gang-won, all wore protective gear, and boarded the freighter while climbing a ladder hanging from it.

When Chief Lee found out the fact that the containers had been unloaded, he used his radio to request the Cargo Patrol Team to search warehouses where the containers were being kept.

Five minutes later, the patrol team broke into the warehouse. After removing the seal of the container and opening the door, about five tons of fake automobile parts ranging from oil filters to air conditioner cleaners were found packed inside.

The parts had Korean automobile maker’s labels on them. The customs office checked out some facts and it was disclosed that a trade company located in Goyang City, Gyeonggi Province, ordered the fake automobile parts from China and tried to smuggle them.

Incheon Main Customs Public Relations Director Moon Mi-ho said, “It is the first time that fake Korean automobile parts have been smuggled through Incheon Port. They were probably trying to profit by selling them at 10 times their original prices.”

Smuggling is steadily increasing and its methods are becoming more elaborate. Until the early 1990s, the amount of smuggled goods caught by Customs Service was below 200 billion won, but in 2001 it surpassed one trillion won for the first time ever.

If it is Profitable, Anything will be Smuggled—

With international oil prices soaring, many cases were caught, where tax-exempt oil planned to be used or hoarded on foreign ships was smuggled.

In March, Busan Coast Guard apprehended two oil sellers that pilfered 120 tons of tax-exempt oil, which was supposed to fill a British freighter anchored in Gamman Harbor in Busan.

Yeosu customs service caught a gang that smuggled 2,200 drums or 400 million won worth of tax-exempt oil loaded on a ocean-going ship, reporting it as waste oil, and then selling it in Korea.

Busan customs service also seized a smuggler in March that sold about eight billion won worth of Chinese made automobile aluminum wheels. With fake brake pads, clutches and other internal parts circulating in the market, the automobile industry is quite in an emergency situation.

Methods Becoming More Elaborate With Time—

In some cases, export goods produced in Korea are being smuggled and then sold again in Korea. It is a new method being used because export products are cheaper than domestic market products and are tax-free.

In February, the Busan Customs Service and the National Intelligence Service apprehended two trade businessmen who acquired 5,746 refrigerators and washing machines worth 1.2 billion won, from L company at prices 15 to 40 percent lower than Korean market prices, and then resold them at the market.

The Busan Postal Service caught Mr. Seo, 34, who tried to smuggle 6,800 pieces of clothing worth about 900 million won from abroad as international mail.

During January and February, nine cases worth 3.1 billion won of international postal contraband were seized at the Busan Postal Service. It is a significant surge from the same period last year when 2.3 billion won worth of illegal products were seized, and 120 million in 2004, making customs officials more alerted.

An official from Korea Customs Service commented, “Taking advantage of the fact that only about five percent of imports are inspected, in order to expedite customs, smuggling aiming a one-time jackpot continues to increase.”

Kum-Chun Hwang kchwang@donga.com