China housewives in iPhone scam
This discrepancy in prices has led to a booming smuggling industry where, for example, iPhones are bought in the United States or Hong Kong, carried into China in suitcases by smugglers and then passed to scalpers in China.
China has cracked down on smugglers over the past two years. In 2010 it levied taxes on imported iPads, even if they were for personal use. In September China jailed an ex-flight attendant accused of evading taxes of more than 1 million yuan by smuggling cosmetics from South Korea.
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