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Slideshow Follow Reuters Facebook Twitter RSS YouTube Read Egypt in Gaza truce bid as rocket jolts Tel Aviv | 10:44am EST Mexico lawmaker introduces bill to legalize marijuana 15 Nov 2012 Rockets hit near Tel Aviv as Gaza death toll rises | 15 Nov 2012 Twinkies maker Hostess plans to go out of business 10:42am EST UPDATE 5-Four killed in Texas as train hits parade float carrying veterans 1:29am EST Discussed 160 Top Hamas commander killed in Israeli airstrike 147 Israel hammers Hamas in Gaza offensive 114 Republicans say deal can be done on ”fiscal cliff” Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption Gaza conflict Conflict escalates in Gaza and Israel in the aftermath of an Israeli air strike which killed the Hamas military chief. Slideshow Facing eviction Families in Spain face the threat of eviction after failing to pay their mortgages. Slideshow Sponsored Links China cracks down on iPhone-smuggling housewives: media Tweet Share this Email Print Related News UPDATE 4-China PICC in talks with AIG as buyer for $4 bln HK IPO Thu, Nov 15 2012 China's Alibaba Group Q2 net profit doubles: SEC filing Sun, Nov 11 2012 Apple iPad mini draws New Yorkers; crowds thin elsewhere Fri, Nov 2 2012 China Telecom, Unicom set to narrow 3G gap with iPhone 5 Mon, Oct 29 2012 Samsung posts $7.4 billion profit, handsets mask weak chips Fri, Oct 26 2012 Analysis & Opinion Historic stakes are higher in China than in U.S. China and U.S. face mirror-image leadership challenges Related Topics Tech » Media » iPad » SHANGHAI | Fri Nov 16, 2012 5:29am EST SHANGHAI (Reuters) - Suppliers for what was one of China's largest online iPhone stores have been hauled to court for allegedly evading taxes by smuggling Apple Inc's iPhones and iPads into the country, official media reported on Friday. On Wednesday, 26 suppliers of Lanyou Shuma.com were tried in a Shenzhen court as part of five rings that smuggled more than 162,000 mobile phones worth over 500 million yuan ($80 million) from Hong Kong over the past two years, the Beijing News said. Half of the suspects are described as housewives who frequently travel to Hong Kong, according to another newspaper, the Southern Metropolis Daily, adding that they were paid 20 to 30 yuan in commission for each phone they brought back to the mainland. The official Shanghai Daily said 25 defendants were tried for smuggling both iPads and iPhones. The Lanyou Shuma.com digital store, once one of the largest on China's Taobao Marketplace, was forced to close in April by Taobao after Hong Kong authorities launched an investigation on possible smuggling of the iPhone 4S, the Beijing News said. It was not clear if all 26 defendants were suppliers for Lanyou Shuma.com. Lanyou Shuma.com could not be reached for comment. Taobao Marketplace, a unit of Alibaba Group, is China's largest e-commerce website with a consumer focus. An Alibaba spokeswoman confirmed the closure of Lanyou Shuma.com store but declined to elaborate, saying the company "demands merchants run their businesses in accordance with all regulations and policies". Shenzhen court officials declined to comment. Electronics and luxury products carry steep import and luxury duties when they are sold in China. As a result, many Chinese prefer to shop for these products in places like Hong Kong or Europe where the duties are lower. 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. ($1 = 6.2334 Chinese yuan) (Reporting by Shanghai newsroom; Editing by Michael Urquhart) Tech Media iPad Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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