Illegal tobacco factory bust: Boxes labelled as imported tea

June 25, 2024

A man has been arrested and charged after a burglary at a Christchurch warehouse led police and Customs to uncover an alleged illegal cigarette factory.

The alleged robbery saw approximately 80 kilograms of tobacco stolen from the warehouse – where boxes of goods described as tea imported from China were being held while awaiting Customs clearance – on Sunday, June 16, Customs said. The full weight and quantity of the tobacco seized is currently being calculated.

Customs also confiscated machinery used to manufacture individual cigarettes, boxes of cigarettes, cigarette branded labels, and almost $2500 in cash, among other items.

A 42-year-old Christchurch businessman appeared in the Christchurch District Court today charged with one count of using an area that is not licensed to manufacture cigarettes, one count of interference with goods subject to Customs control, one count of burglary, and one count of possession or custody of uncustomed goods or prohibited imports (tobacco).

Chief Customs Officer, fraud and prohibition, Nigel Barnes said uncovering the alleged illegal tobacco importing and manufacturing operation has stopped significant criminal efforts to defraud Crown revenue and New Zealand taxpayers.

"With the help of police and members of the public, Customs have been able to dismantle a major black-market tobacco operation where the offender has imported large quantities of loose tobacco with the aim of selling it at a cut-price and avoid paying legally required taxes.

"The alleged offender was not licensed to be importing or producing tobacco products and this offending undermines legitimate trade and revenue collection."

Anyone with information about suspicious activity can contact Customs at 0800 WE PROTECT (0800 937 768) or Crimestoppers anonymously on 0800 555 111.

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