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Rumor: CEO of B2C Luxury E-tailer Xiu.com Arrested for Smuggling

21st Century Business Herald, 8/17/17

The CEO of online and mobile luxury B2C e-commerce platform Xiu.com has been taken into custody in China after fleeing the country over a smuggling case that has been under investigation by the Gongbei customs office of Zhuhai city in Guangdong province since April 5, 2016.

George Ji was arrested in Bali, Indonesia on August 4, and was recently deported back to China and handed over to the authorities.

While original media reports in Chinese did not reveal the identity of the person taken into custody, multiple sources familiar with the matter told Chinese media outlet 21st Century Business Herald that the person arrested was Ji.

In an interview with 21st Century Business Herald, a spokesperson for Xiu.com said that the company was suspected of smuggling due to its use of third-party cross-border shipment companies, and that various members of the company have been investigated. The case is still being tried, and all of Xiu.com's businesses are operating normally.

Records show that Xiu.com has been engaged in illegal smuggling for 5 years, and a portion of the total value involved in the case reached RMB 321 mln.

On April 5, 2016, the Gongbei customs anti-smuggling office received a tip that a trading company in Zhongshan had smuggled in a large amount of brand name jewelry. In the course of the investigation, it was discovered that a Shenzhen logistics company that smuggled the goods for the Zhongshan company was also providing smuggling services to Xiu.com.

In May 2016, officials found Xiu.com to have smuggled luxury items into the country and to have evaded a large sum in taxes. The company's vice president, finance director, and others were arrested shortly thereafter.

Keywords: scandal e-commerce Internet B2C luxury Xiu.com George Ji law

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