Preferences

Many airports only do spot checks on bags and they're specifically looking for their own citizens smuggling locally-expensive luxuries in by the suitcase.

This will be a short-lived company because if you have a significant volume of stuff you don't declare you will either be taxed on the spot or arrested. If you have a discrete amount of stuff then you'd need eg, 5 or 6 people to fulfill an order for 10 iphones, and if 1 of them eats a $1000 customs bill the entire order approaches worthless.


Hmm.. You are right though. Here is an implicit Premise that this works on & and its not being declared verbally.

- "The way airports works in these destinations" - Customs officials don't stop and question everybody ; in most cases - if you are dressed well and speak respectfully , they let you go.

- I have heard Mumbai and Bangalore Customs officials could be unyielding at times ; they stick to the rule book and levy all taxes if caught . Not the case for other airports in India ;

- I m not sure about airports in Bangladesh ; Thailand ; Nepal ; Sri Lanka ; Malaysia and Indonesia - I guess the founders do have a certain insight into how these airports work.

It is encouraging illegal activity, though, correct?
Yes. The entire purpose is to save money by not paying taxes on items by illegally not declaring those items when you enter a country.

It may break US exporting laws and embargos, or international laws too. It's almost certain the founders and everyone near them is going to end up arrested and probably imprisoned like any other smuggling organization.

Hyperbolic much? At least a portion of the purpose access to items that might be difficult or impossible to obtain. Further, it's entirely legal to bring home modest quantities of various items for possible resale, in some cases at a profit, others not.
Lying on customs forms, for profit, as a member of a smuggling organization, really is a big deal. It doesn't matter that it's not what you would consider conventional "contraband", the socks on your feet are illegal until a customs official has permitted them into their country with or without tax.

These guys used ziplines instead of mules to move untaxed iPhones and iPads into Hong Kong, till the police shut them down.

http://www.intomobile.com/2011/08/09/chinese-ninjas-use-cros...

Here's some more people specifically dodging import taxes and then being arrested:

http://www.cnet.com/news/chinese-children-used-to-smuggle-ip...!

http://www.intomobile.com/2013/08/14/man-caught-smuggling-ip...

http://www.phonearena.com/news/Bad-ideas-lady-caught-smuggli...

This stuff is really black and white illegal.

"At least a portion of the purpose access to items that might be difficult or impossible to obtain" I'm sure that argument can be applied to things such as drugs, firearms, dangerous animal, etc, pretty much anything restricted by export/import laws of a country.

And for your last point, no, it's not entirely legal without paying a tax in all countries. Please research your own country's custom laws before making a statement like that.

In the US it is not legal to bring home items for resale without declaring them.

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