MAIL order racketeers are illegally selling pornography using Territory postal addresses to avoid bans on the sale of X-rated material in other Australian states.

Several NSW-based businesses are allegedly using Darwin post boxes as a front to take orders for videos that have been refused classification.

The interstate pornography dealers are listing Darwin post office boxes on their websites.

The sale of X-rated material is legal in the NT -- even without a licence -- but it's unlawful to make a porn film.

In all states, the sale or purchase of X-rated videos or DVDs is illegal. Refused classification and unclassified material is unlawful everywhere in Australia.

One of the companies uses the fictitious "XXX" rating on its website to sell videos that feature teenage lesbians.

Office of Film and Literature Classification director Des Clark said the non-existent "XXX" rating meant some videos could have been refused official classification or be unclassified, and therefore illegal.

NT police spokeswoman Sandra Mitchell said police were aware of NSW mail order groups setting up Territory mail boxes to sell either X-rated or illegal material and were investigating.

Attorney-General Peter Toyne, who was informed about a NSW business using NT addresses in 2003, said he had referred the matter to the NSW police.

The Department of Justice said as the sales happened in NSW no NT laws were broken.

But NSW Police's Constable Daniel Pyle said the sex crimes squad were unsure if NSW customers, who had bought porn through an NT mail box, had broken the law.

Mr Clark said interstate businesses had set up NT post office boxes to "get around" state laws banning the sale of X-rated videos and DVDs.

Adult product retailers in the ACT must have a licence to sell X-rated videos or DVDs, which costs $11,000 a year.

Classified films that show consensual, non-violent sex are granted an X-rating and can be sold in either the NT or the ACT.

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