Fourteen women were caught smuggling a total of 88 Pads and 340 iPhones from Hong Kong to Shenzhen. The women had the devices strapped to their bodies. The smuggling has forced the Chinese government to put a tax on all iPads entering the country, whether they are for personal use or not which, if you think about it, totally sucks.
It may seem odd that smugglers would need to sneak iPads from Hong Kong (a Chinese Special Administrative Region) and Shenzhen a few dozen miles away, but thanks to limits on 3G iPads in China proper there is actually a lucrative grey market for the devices.