Taobao Store Stands Trial for Smuggling iPhone

CCIDnet, 11/15/12

Lanyou Shuma ("Lanyou Digital"), a vendor on Hangzhou-based C2C & B2C e-commerce site Taobao, came under investigation and had its online store suspended in April 2012 following suspicions that the store was smuggling grey-market iPhones in China. 25 individuals in five grey-market smuggling gangs stood trial in the case in the Shenzhen Intermediate People's Court on November 14. The defendants were accused of having smuggled 162,000 iPhones and other mobile phones into the country, evading more than RMB 54.87 mln in taxes. Figures previously released by China Customs put the total value of the case at over RMB 500 mln.

Keywords: e-commerce Taobao iPhone Internet B2C C2C Shenzhen Intermediate People's Court handset black market General Administration of Customs smartphone law

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