This represents a fall of 12.5 and 0.3 per cent respectively when compared with the same period last year, sources with the Customs General Administration said yesterday. Customs officials said large-scale smuggling had been severely squeezed and cases were diminishing in size.

The majority of smuggling cases in the first six months of the year involved attempts to avoid taxes. Many smugglers deliberately under-valued imports to customs to escape being levied with heavy charges.

China's customs launched a three-month national campaign in May to crack down on tax-dodging with great success.

In the first half of this year, customs detected 272 such cases worth 380 million yuan (US$45 million), 3.9 and 4.2 per cent up on the same period of 2001.

Smuggling by post is emerging as an important channel for criminals with customs detecting 104 such cases in the first six months, 55 per cent up on last year.

Customs sources said smuggling cases involving large amount of funds have soared this year with 56 cases involving more than 10 million yuan (US$1.2 million) detected in the first six months. Three huge smuggling cases involving 100 million yuan (US$12 million) each have been detected and are still being investigated.

(China Daily July 23, 2002)