Chinese customs recently intercepted a smuggling attempt involving 596 Intel Xeon CPUs valued at over 1 million. Hong Kong customs successfully halted a large-scale tax evasion through CPU smuggling by apprehending the culprit with the 596 CPUs hidden under the car's dashboard. Such intense cases of smuggling often occur in China, aiming to evade regional taxes and policies with estimated incidents totaling 4 million in 2022-2023.
In this particular incident, Hong Kong Customs intercepted a vehicle at the local borders in Shenzhen Bay, revealing the smuggled goods during an X-ray inspection in compartments on the sides. The car was carrying 596 Intel Xeon CPUs wrapped in plastic film, marking it as a significant PC hardware smuggling attempt. The total worth of the smuggled processors is approximately USD 1 million, with potential taxr evasion of USD 380,000 if successful.
While the specific CPU model remains undisclosed, initial images suggest they are likely older server-grade Intel Xeon CPUs. Given the rising demand for AI technologies, similar incidents involving AI accelerators and other advanced hardware have become more frequent. As China establishes itself as a key player in AI and cloud computing, such smuggling activities are not uncommon, particularly among third-party sourcing groups in the area. The smuggler is now facing potential imprisonment of up to seven years, emphasizing the severity of engaging in smuggling activities globally.
