Monday 27 June 2022
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Hong Kong busts lobster smugglers amid China ban on Australian products

Exports have soared as Hong Kong and Australia have a separate free trade deal with some live seafood finding its way to mainland cities

Amid the Chinese trade embargo on Australian lobsters, authorities in Hong Kong have arrested smugglers who were trying to take nearly 2,000 kg of live lobster and sea cucumber into China.

Hong Kong Customs officials said they had seized 890 kilograms of live lobsters and 930 kilograms of sea cucumbers, with a total estimated value of 10 million Hong Kong dollars ($ 1.75 million).

Two men aged 40 and 45 suspected to be connected to the case were also arrested, the statement said.

Divisional commander of the city’s Syndicate Crimes Investigation Bureau Lui Siu-fai said the origin of the smuggled goods was still under investigation and the boxes were not labelled with their country of origin.

A suspected smuggler is escorted by officers from the Hong Kong Customs

The seized seafood was found aboard a double-engined speedboat trying to leave a harbour on the south of Hong Kong Island under the cover of darkness, he said.

“I believe that most of the smuggled goods were [to be] shipped to mainland China,” he said.

Blocking lobsters part of ‘national security’ drive

Lobsters are considered a delicacy in Chinese cuisine, and China had previously accounted for over 90% of Australia’s lobster exports.

But that changed in 2020, when diplomatic tensions saw Beijing impose a series of unofficial trade hurdles on Australian produce.

Exports of lobsters to Hong Kong then soared Hong Kong and Australia have a separate free trade deal with some of the live seafood finding its way to mainland cities.

This is known as “grey trading” that is, when fishers export the sanctioned goods first to a third country to circumvent a ban.

The practice, which is not illegal, allows the goods to then be repackaged and delivered to the intended country. 

Red lobsters are seen close up underwater

The latest Customs seizure came weeks after a similar anti- operation in October saw authorities seize 5,300 kilograms of Australian lobster and arrest 13 people suspected to be connected to the case.

Hong Kong Customs head Louise Ho cited the crackdown on alleged of Australian lobsters to the Chinese mainland as part of a mission to safeguard national security.

“On the face of it, it’s just a normal case, smuggling lobsters. But actually, these smuggling activities would undermine the country’s trade restrictions on Australia,” she said.

“Therefore, tackling lobster- activities is an important task in safeguarding national security.”

China’s lobster ban came after the Australian government pushed for an international investigation into the origins of Covid-19.

China has since blocked other Australian imports including wine, barley, cotton and coal.

Beijing’s trade practices are being reviewed by the World Trade Organization, with Australia arguing they are inconsistent with WTO rules.

Australia’s ambassador to the WTO said last month that China had “implemented trade disruptive measures” which had ended Australia’s exports of a dozen commodities, including lobster.

Australia lobster exports to China, previously worth more than $ 720 million a year, had been “significantly impacted following the General Administration of Customs China notification on 5 November 2020 they would be subjected to enhanced inspection”, a spokesperson for Australia’s Trade Minister Dan Tehan said.

Australians are expected to be able to purchase half-price lobsters this Christmas, with Victorian lobsters expected to cost $70 per kilo compared to the usual $ 140, due to the Chinese market being closed to exports.

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