Smuggler's smokescreen ends up a real drag

By Kate McClymont
September 2, 2005





The duty Coulton paid on his "soap" was $154.67 instead of the $75,000 due on the tobacco. The tobacco was seized by customs officers in January 1999.


When the drums arrived in Australia, no duty was payable for motor oil whereas $83,000 would have been payable for the tobacco. This shipment was not intercepted by customs.

Coulton bought the third lot of tobacco from an Australian importer who was holding the tobacco in bond. If Coulton was to sell the tobacco in Australia he would have had to pay duty.

Instead he claimed he would be air-freighting it to Fiji and, on that basis, no duty was payable. He used three false names - Mark Wilson, Mark White and Mark James - to obtain three bank cheques to pay the $31,000 for the tobacco. Receipts for the cheques were later found by customs investigators at Coulton's Palm Beach house.

Coulton shipped this tobacco to the US, hid it in oil drums and sent it back into Australia, thereby avoiding the duty of $232,000. This tobacco was seized by customs when it arrived in May 1999.

Describing Coulton, 45, as a "serial offender", Supreme Court Justice Carolyn Simpson yesterday imposed fines totalling $2,135,215 and ordered Coulton to pay customs' costs.

The fines included penalties for smuggling, evasion of duty and making false statements.

Coulton has a colourful past when it comes to importations, including being fined over a racket involving the importation of fake Levi jeans from China.
