A group attempting to smuggle Chinese dried garlic and onions into Korea to evade high tariffs on imported agricultural products has been caught by customs authorities.
The Incheon Regional Customs Office of the Korea Customs Service announced on November 4 that it had apprehended five individuals-including the head of an import company and a bonded warehouse operator-on suspicion of violating the Customs Act. They are accused of smuggling a total of 206 tons of dried agricultural products, including 173 tons of dried garlic and 33 tons of dried onions from China, with a market value of approximately 1.7 billion won. The suspects have been referred for prosecution without detention.
Dried garlic from China seized by customs. Photo by Incheon Regional Customs Office, Korea Customs Service
According to Incheon Customs, the suspects disguised the dried agricultural products as frozen goods in order to avoid the high tariffs imposed on dried products.
When importing agricultural products, high tariff rates are applied to dried goods-360% for garlic and 135% for onions-whereas relatively lower rates (27% for both garlic and onions) are applied to frozen products. The suspects exploited this difference.
They evaded physical inspections by loading boxes containing dried agricultural products at the bottom of pallets and placing boxes of frozen goods only on the top.
In particular, the bonded warehouse operator directly participated in the smuggling scheme by presenting only the pre-verified frozen agricultural products as samples during inspections. Although bonded warehouse operators are supposed to be responsible for managing goods entering and leaving the warehouse, this individual abused their position to facilitate the smuggling operation.
Incheon Customs uncovered the full extent of the case through digital forensics on the suspects' mobile phones and office computers, analysis of communication records on the dates the contraband was brought in and inspected, and bank account inquiries.
Ban Jaehyun, Director of the Investigation Bureau at Incheon Customs, stated, "We will designate dried agricultural products such as garlic and onions as high-risk items for smuggling during the kimchi-making season and intensively monitor them to protect domestic farmers and prevent market disruption. In particular, if customs-related personnel such as those in bonded warehouses, bonded transportation, freight forwarding, or shipping companies are found to be involved in smuggling, we will enforce strict penalties."
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