Customs seizes 701 refurbished iPhones hidden in vegetable boat

AYER KEROH: A total of 701 refurbished iPhones of various models were seized by the Royal Malaysian Customs Department in Melaka.

The phones were believed to have been smuggled out to Indonesia using a boat from the country.

The seized phones, including iPhone 11 to iPhone 16 Pro Max models, were estimated to be worth RM716,184 including duties and taxes.

Melaka Customs director Roslan Yusoff said the phones were found by the Melaka Customs Marine and Enforcement Team during an inspection of a barter trade boat at Port Klang jetty, Selangor, at 4.30am on July 23.

He said the boat had arrived from Indonesia on July 22 carrying vegetables.

It was scheduled to return to Indonesia without any cargo except 250 empty boxes.

"However, following information from the public and further checks, 701 iPhones of various models were found wrapped in black plastic, placed in boxes and hidden inside the boat.

"The mobile phones were believed to have been obtained in Malaysia and were being taken out without declaration or payment of the prescribed export duties," he said at a press conference at the Melaka Customs Department building here yesterday.

Roslan said the total value of the seizure was estimated at RM716,184, including duties and taxes.

He said the used goods should have been declared under Tariff Code 8517.13.000, which is subject to 5 per cent tax.

They also require a permit from the Department of Environment (DOE) and must comply with the Customs (Prohibition of Exports) Order 2023.

"Based on preliminary information, the refurbished phones were believed to fetch higher prices in the country concerned, reaching RM1,000 each compared with prices in Malaysia.

"High demand for the models is believed to be one of the factors behind the smuggling activity," he said.

In the operation, 11 foreign crew members aged between 34 and 61 and a local man in his 30s believed to represent a shipping agent were detained to assist in the investigation.

"The case is being investigated under Section 135(1)(a) of the Customs Act 1967," he said.

In a related development, Roslan said Melaka Customs had also foiled an attempt to smuggle 870,000 sticks of duty-unpaid cigarettes.

The cigarettes were estimated to be worth RM811,180, including duties and taxes.

He said the seizure was made at about 1.15pm on Aug 13 in Kuala Lipis, Pahang, after enforcement officers conducted intelligence gathering and surveillance the previous day.

"The cigarettes were found in a 3-tonne bonded lorry fitted with the logo of a courier company to mislead the authorities.

"Checks found the cigarettes hidden inside the lorry and covered with other goods.

"No official order from the courier company or valid documents relating to the consignment were found," he said.