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Smuggling and tax evasion at Lebanese ports: Can AI and technology stem the losses?
News Bulletin Reports
20-06-2025 | 13:15
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Smuggling and tax evasion at Lebanese ports: Can AI and technology stem the losses?
Report by Lara El Hachem, English adaptation by Yasmine Jaroudi
Smuggling and customs tax evasion have long plagued Lebanon's ports, draining the state's coffers by hundreds of millions of dollars over the years.
One of the primary tactics employed by smugglers involves falsifying container manifests to conceal valuable goods beneath low-taxed or duty-free items.
For example, a container officially declared as carrying baby formula, taxed accordingly, arrives in Beirut. Hidden alongside the formula are other goods of much higher value, evading proper customs fees. This layered deception involves a complex network where criminal mafias intersect with political and security interests.
The introduction of AI-powered scanners capable of detecting suspicious shipments based on coordinates promises to reduce smuggling.
However, experts caution that while technology may help curb smuggling, it cannot entirely eliminate customs tax evasion, which often involves manipulating invoice values to evade taxes.
In one common scheme, a container declared as carrying laptops under a low-duty category might actually contain higher-value models, resulting in the payment of lower customs fees. This type of fraud can only be detected through manual inspection by experienced customs officers, who can identify discrepancies between the actual goods and the declared manifest.
Historically, only about 6% of containers underwent scanning, with even fewer subject to thorough manual inspection. With the reduction of physical inspections, concerns arise about who will conduct detailed audits to catch these evasions.
Experts agree it is nearly impossible to completely shut the doors on smuggling and tax evasion, especially given the difficulty of controlling collusion among port workers and officials.
Nonetheless, efforts are underway to minimize these losses.
The Lebanese Armed Forces support customs officials by conducting secondary inspections when suspicions arise.
Meanwhile, customs authorities stress the urgent need to activate dedicated auditing and investigation units focused on verifying shipment values and uncovering fraudulent activities.
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Beirut Port overhaul: Lebanon adopts advanced scanning tech to fight smuggling
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