The charge here is smuggling. The exception is they did not personally import the wine or carry it into the China. The importation would have to had been done by a third party such as a Chinese controlled corporate entity hence not smuggled. What is the issue is some layer of Chinese bureaucracy claiming  a discrepancy in the valuation which should be the importers problem. When a question of value comes up most countries simply seize the shipment and levy an assessment against the importer.