Australia cracks down on major tobacco smuggling case, involving tax evasion exceeding US$24.21 million

Key Points:

·Operation Scale: Australian police carried out multiple search warrants, seizing several tons of loose tobacco leaves, tens of millions of cigarettes, and tens of thousands of e-cigarette products, in what is being described as one of the largest illegal tobacco cases in the state of Victoria.

·Suspects: Two individuals have been arrested, including a 29-year-old suspect involved in coordinating transportation and a 49-year-old leader of the group.

·Criminal technique: The main culprit utilized logistics relationships to falsely declare tobacco as "kitchenware and clothing" and smuggle it into the country through sea and air transport, before distributing it through a network of tobacco shops.

·Massive tax evasion: The criminal group evaded over 36.6 million Australian dollars (approximately 24.21 million US dollars) in federal consumption tax within 10 months.

·Official statement: Law enforcement agencies emphasize that they will continue to crack down on organized crime networks profiting from the black market trade, as they exacerbate community violence and crime.

2first, on September 11, 2025, according to Star Weekly, A 29-year-old Meadow Heights man has been arrested as part of an operation which police say also resulted in the arrest of a major player in Victoria’s illegal tobacco trade.

Authorities have carried out a large-scale raid in the northern suburbs of Melbourne, charging two men and seizing several tonnes of illegal tobacco, tobacco manufacturing equipment, and e-cigarette products. The operation covered Campbellfield, Meadow Heights, Mickleham, Gladstone Park, Craigieburn, and North Coburg.

On September 9th, police carried out a series of search warrants, uncovering what is believed to be one of the largest illegal tobacco smuggling operations in the state of Victoria.

The police officers seized tobacco manufacturing equipment, filters, a cash counting machine, electronic devices, and approximately 70 trays of illegal products.

Authorities have announced that the seized items include several tons of loose tobacco, tens of millions of cigarettes, and tens of thousands of e-cigarette products. The exact quantities are still being counted.

A 29-year-old man from Meadow Heights has been charged with conspiring to import and possess illegally imported tobacco, and is suspected of coordinating the transportation of illicit products across the state.

A 49-year-old man from North Coburg has been accused of being the ringleader of the criminal group and was arrested at his home. He is facing a series of federal and state charges, including importing tobacco, illegal supply, and possession of nicotine e-cigarettes.

The police have accused a man from North Coburg of planning to import over 7 tons of loose tobacco, 5 million cigarettes, and over 5000 e-cigarettes into the state of Victoria within a span of 10 months, evading over 36.6 million Australian dollars (approximately 24.21 million US dollars) in federal excise tax.

Investigators say that the man utilized freight and logistics relationships to transport contraband disguised as kitchen supplies and clothing through air and sea shipments, before distributing them through a network of tobacco shops.

On September 11th, two men appeared in Melbourne Local Court and it is expected that more individuals will be arrested as the investigation continues.

Ray Imbriano, the acting commander of the Australian Federal Police (AFP) investigation, stated that this case demonstrates law enforcement agencies are cracking down on organized crime groups driving the illegal tobacco trade.

He said, "Illegal tobacco has fueled unprecedented levels of violence and crime in our community. Criminal networks mistakenly believe they can operate outside of Australian law. We want to remind them - they cannot.

Commander Greg Dowse of the Australian Border Force (ABF) stated that officials have been working diligently to dismantle groups profiting from black market trade.

The arrests were made following an investigation by the Victoria Joint Organized Crime Task Force (JOCTF). This task force consists of members from the Australian Federal Police, Victoria Police, and the Australian Border Force, who launched an investigation in November 2024 based on intelligence provided by an illegal tobacco task force led by ABF, regarding a criminal group suspected of smuggling large quantities of illegal tobacco into Australia.