Honestly, I don't know. Sandalwood smuggling is very common in China, it has been there for thousand years. Even custom officers would buy sandalwood from smugglers, because its cheaper than legal sandalwood. During the "strike hard" period, custom catch a few big fish, charge a big fine, then everything retuns to normal.
I don't know if these sandalwood are from TFS, as long as TFS get the money first, I wouldn't worry too much.
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