AUSTRALIAN and Chinese customs authorities have seized more than 60 million cigarettes and 60 kilograms of loose-leaf tobacco after dismantling an international smuggling network that moved illicit tobacco through legitimate cargo to Australia.
The Australian Border Force (ABF) and the Anti-Smuggling Bureau of the General Administration of China Customs (ASB) said the operation also resulted in the arrest of more than 60 people in China suspected of involvement in the network.
Information shared between the two countries led to 112 shipping containers being referred to ABF officers in Beijing while en route to Australia.
The consignments, identified through Project SEAHORSE and Operation TRAILBLAZER, were suspected of containing illicit tobacco and were due to arrive at Australian ports between January and May 2026.
ABF officers conducted targeted inspections when the containers arrived, with most coming through Sydney. Of the 112 containers, 91 were found to contain illicit tobacco.
The seizures represented more than AUD $92 million in evaded duty.
Investigations by the ASB identified a supply chain that allegedly began with illicit tobacco manufactured in Southeast Asia before it was smuggled into China.
The tobacco was then moved to logistics centres, concealed within legitimate cargo under cover loads including LED lamps and printers, and shipped from Shanghai to Australia.
The method relied on the appearance of ordinary freight to move illicit goods through the international supply chain and evade border detection.
ABF Assistant Commissioner Targeting and Intelligence Operations Penelope Spies said the operation was one of the most significant international illicit tobacco disruptions involving Australia.
She said the result demonstrated the value of intelligence-sharing arrangements and operational partnerships between customs and law enforcement agencies.
“This outcome demonstrates the value of working beyond Australia’s borders to stop illicit tobacco before it reaches Australian communities,” Assistant Commissioner Spies said.
“This exceptional result would not have been possible without the close and enduring partnership between the Australian Border Force and the Anti-Smuggling Bureau of the General Administration of China Customs, and I thank them for their continued support.
“We use comprehensive and trusted targeting intelligence – including from offshore partners and international referrals – that allow us to target specific containers and consignments to ensure our resources are focused where they will have the greatest impact.”
The operation highlights the role of offshore intelligence in shifting border intervention further up the logistics chain.
Rather than relying only on inspections once cargo reaches an Australian port, ABF officers were able to use information from Chinese counterparts to identify specific containers and conduct targeted examinations on arrival.
The arrangement has produced detections beyond the latest operation.
Since 1 July 2025, the ASB has shared information with ABF officers offshore that has contributed to the detection of more than 89 million cigarettes, 11 tonnes of loose-leaf tobacco and one million vapes at the Australian border.
Wang He, deputy director-general of the ASB, said the joint operation had cut off a major route for illicit tobacco moving into and through mainland China.
He said it had also disrupted cross-border tobacco-smuggling activity and demonstrated the importance of cooperation between customs agencies.
“The Anti-Smuggling Bureau of the General Administration of China Customs remains committed to strengthening cooperation with the Australian Border Force and other international partners to combat cross-border smuggling activities and protect the integrity of global trade,” Mr Wang said.