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Photo by Photo Illustration by Lance Cpl. John S. Rafoss

Black-marketing: profitable yet punishable

1 Feb 2006 | Lance Cpl. John S. Rafoss Marine Corps Air Station Iwakuni, Japan

An unscrupulous entrepreneur could buy a 20-pound bag of rice cheap on base. Then go out to town where there is a high demand for these types of products and sell it for $80, making nearly a $72 profit. Does this sound like a good idea? No, it isn’t and it is also punishable under the Uniform Code of Military Justice. Under the Status of Forces Agreement (SOFA), while serving overseas service members and their dependents are able to shop in on-base stores and commissaries for items that are exempt from Japanese taxes. This privilege may tempt some service members to abuse it by black-marketing high-demand items. “A good example of black-marketing is buying goods on base and selling them on the Japanese market for a profit,” said Capt. Adam J. Workman, prosecutor and native of Salt Lake City. According to Workman, black-marketing is harmful to the Japanese economy because the goods are not subject to Japanese customs and duties. “When you buy a product on base and sell it off base, you are taking away from Japanese business off base,” added Maj. Matthew D. Razvillas, Station Inspector and native of Camp Hill, Pa. “By Japanese law you are not paying the import taxes.” Many popular products on the black market right now are tobacco, alcohol and food items, with rice being a big item. “For example, a 20 pound bag of rice at the commissary could be taken out in town and sold for $80,” said Kalani Patsel, assistant commissary manager and native Roanoke, Va. However there are some exceptions, gift giving to Japanese civilians is allowed, as long as the gift is of nominal value. “It’s okay to give gifts purchased from the commissary or exchange as long as the gifts are of like kind with gifts given by the local Japanese,” said Workman. For those who take advantage of commissary shopping privileges, the maximum punishment for black-marketing is up to two years confinement and a dishonorable discharge. Enforcing black-marketing regulations helps preserve our relationship with the Japanese since the illegal exchange is harmful to their economy. “Surveillance is conducted in the commissary and exchange parking lots to identify potential black marketers,” said Razvillas. “The majority of black marketers are caught in these places.” Through education of black-marketing techniques and consequences, Station residents have kept this crime to a minimal problem, citing a mere one to two incidents per year. “Naval Criminal Investigative Service, military police and the Criminal Investigative Division do a great job on policing, identifying and reporting black-marketing,” said Razvillas.