A group that built a "secret tank" in a refrigerated truck carrying Russian snow crabs and king crabs to divert them into distribution without paying the tariff has received finalized prison sentences. They were ordered to pay forfeitures exceeding their revenue.
The Supreme Court's Second Division (presiding Justice Eom Sang-pil) on the 14th finalized a lower court ruling that sentenced A, a seafood distributor in their 40s indicted on charges including special theft and violating the Customs Act, to six years in prison, a fine of 15 million won, and a forfeiture of 3.69294 billion won.
In a separate trial, 17 accomplices, including B, a refrigerated truck driver involved in unloading seafood, received prison terms or suspended sentences and fines, and forfeitures ranging from hundreds of millions to tens of billions of won were also finalized. The total forfeiture for the 18 people including A and the accomplices is 36.4 billion won.
A, who runs a seafood distribution company, was brought to trial on charges of stealing and smuggling 62 tons of snow crabs and king crabs imported through Donghae Port and Sokcho Port in Gangwon from Feb. 2023 to Apr. 2023. Based on pre-clearance valuation, the smuggled seafood was worth about 3 billion won.
To import Russian snow crabs and king crabs for domestic distribution, a 20% tariff and 10% value-added taxes generally apply. Goods imported from abroad are brought into a bonded (保稅, tariff payment deferred) warehouse, then released after an import declaration and review and after paying the tariff.
Truck driver B decided to steal part of the Russian snow crabs and king crabs during unloading and sell them below market price, and approached A. Under the deal, A would take 65% or 75% of the sales revenue and B would take 25% or 35%.
A, B and others stole the snow crabs in the process of transporting them from the port to the bonded warehouse by using a refrigerated truck that had a secret tank installed in its cargo box. B participated in driving the modified truck, and they used a method of handing the goods to A at a secluded spot. The accomplices hid in the truck's secret compartment, and when the driver gave a signal, they came out and put the snow crabs into the secret tank.
The first trial sentenced A to six years in prison. The first trial panel said, "The crime method was meticulous and audacious, and the conduct was organized, so the nature of the crime is poor," adding, "A led the crime and fled without attending the warrant review."
A appealed, but the second trial dismissed the appeal. During the proceedings, A argued that the importer led the clearance process and, as a distributor, only stole snow crabs and king crabs for which the tariff had not been paid, so the Customs Act was not violated. The second trial panel said, "The importer appears not to have even recognized that a crime occurred during transport."
A also argued that the forfeiture exceeded the profit gained from the crime. The forfeiture was calculated based on the domestic wholesale price at the time of the offenses.
The second trial panel ruled, "Unlike forfeiture under criminal law, forfeiture under the Customs Act has a punitive character," adding, "If several people conspire to evade the tariff and one of the offenders owns or possesses the goods, each of the offenders can be ordered to forfeit."
The Supreme Court dismissed the appeal, saying the lower court's determination had no error in its application of the law regarding the establishment of a Customs Act violation and forfeiture under the Customs Act.