Luxury items, worth $15.5 million, seized in Hong Kong raid
Customs agents from mainland China and Hong Kong recently seized around $15.5 million (HK $120 million) worth of authentic luxury goods, totalling nearly 70,000 articles, in a raid that made headlines for both its scale and stark departure from more typical reports of confiscated counterfeit or trademark infringing goods by international law enforcement officials.
Authentic Hermès, Celine and Balenciaga handbags, footwear by Gucci and Louis Vuitton, Cartier watches, Louis Vuitton jewellery and “expensive food ingredients and highly endangered species” were reportedly among the items seized.
According to sources familiar with the matter, officials in both Hong Kong and the mainland are currently working overtime in a collaborative effort to prevent the smuggling of goods from Hong Kong (most commonly shipped into the region from Europe and the United States) over the border into China.
Cross-border commerce often means various forms of value-added taxes and customs duties for mainland Chinese consumers, which is not the case for neighbouring Hong Kong, known for its lower taxation policies. Hence the persistent threat of smuggling over the Hong Kong-Shenzhen border, for example.
Whereas Chanel, for instance, harmonised its pricing across different markets beginning in 2015 (Bottega Veneta, Celine and Tod’s are all reportedly considering following suit), significant price discrepancies remain across the global luxury sector, particularly when comparing mainland China to the rest of the world.
Further, despite the Chinese government lowering import taxes in recent years, $83 billion out of a total $120 billion spent on luxury goods by Chinese shoppers was done in the United States and Europe in 2019, according to The Fashion Law.
Image: Christie’s handbags and accessories department via Instagram.
