China struggles with logistics based smuggling

"Even if they do register the consignors'  names, it does not help much because these cunning crooks will obviously provide fake information, adding to the trouble of tracking them down,"  Mo said.

Mo added that a lack of proper laws and regulations and the low cost of this kind of smuggling contributed to the trend.

Another problem is poor cooperation, with each department assuming its own role instead of making joint efforts.

For instance, in Dongxing, the administration of industry and commerce is only responsible for checking the business licenses, while the transportation department just keeps an eye on traffic violations.

Local police place cases on file for investigation and prosecution only when the value of the illegal goods reaches 50,000 yuan (about $8,200), which has allowed the illegal wheel of smuggling to keep on rolling. Unless a coordination office is set up, it will be hard to make different departments to work together, said Chu Xuejian, vice chairman of the Shanghai Logistics Association.

Experts are calling for enhanced management in the logistics industry to prevent such crimes.

Zhang Jiasheng, a logistics expert with the Shanghai Lawyers Association, said that different places in China could set up specific regulations to supervise local companies, emphasizing that punishment should be clear and definite.

In addition, a real-name registration system should be in place so that each link in the logistics chain is effectively monitored, according to Zheng Sigan, deputy director of Dongxing' s Administration of Industry and Commerce.

Xue Chao, a regional border control officer, proposed that public security bureaus network with logistics companies to check information provided by logistics staff, while supervising the transported goods via video.

Chu Xuejian suggested that China speed up the building of distribution parks where logistics companies can conduct business and government staff will be able to monitor them more efficiently.