Hong Kong Launches Pilot Duty Stamp System for Cigarettes to Combat Tax Evasion

Hong Kong Customs launches pilot run for duty stamp system for three months

According to the Dutiable Commodities Ordinance (Cap. 109) amended by the Government of the Hong Kong Special Administrative Region through the Tobacco Control Legislation (Amendment) Ordinance 2025, the duty stamp system will be implemented to help distinguish between duty-paid and duty-not-paid cigarettes. Hong Kong Customs launched a three-month pilot run for the duty stamp system on October 6 and plans to implement the first phase of the system in the fourth quarter of 2026, followed by full implementation in the second quarter of 2027.

The pilot run for the duty stamp system aims to simulate workflow and technology in practical operations to evaluate their effectiveness and feasibility, as well as to promote industry and public awareness of the key features of the system that enable them to prepare related compliance in advance.

In the first phase of the pilot run, Customs officers at Duty Collection Offices of designated control points, namely the Lok Ma Chau Spur Line Control Point, the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port and selected cargo terminals of Hong Kong International Airport, will affix a trial duty stamp to each unopened retail package of cigarettes brought into Hong Kong by incoming passengers or imported for single shipments upon full duty payment. Meanwhile, local tobacco manufacturers are also invited to join the pilot run and affix trial duty stamps to retail packages of cigarettes intended for local sale. Therefore, cigarettes that bear the trial duty stamps will be supplied on the market later.

The trial duty stamps are designed to bear both physical and digital anti-counterfeiting features. Customs officers and members of the public can scan the encrypted QR code on the trial duty stamp using dedicated devices available at the designated control points or retail outlets to ascertain the duty-paid status of the cigarettes. For easy identification, trial duty stamps affixed by Customs officers and local manufacturers are respectively in blue and green colours.

Participation in the pilot run is voluntary. Hong Kong Customs welcomes the public to give suggestions and views on the pilot run throughquestionnaires. After the mid-term evaluation, Hong Kong Customs will extend the pilot run to more Duty Collection Offices at various control points.

Source: AI-found images

Hong Kong Customs launches pilot run for duty stamp system for three months Source: HKSAR Government Press Releases

Hong Kong Customs launches pilot run for duty stamp system for three months Source: HKSAR Government Press Releases

Hong Kong Customs launches pilot run for duty stamp system for three months Source: HKSAR Government Press Releases

Source: AI-found images

Seven persons arrested during anti-illegal worker operation

The Immigration Department (ImmD) mounted an anti-illegal worker operation codenamed "Contribute" today (January 15).During the operation, ImmD Task Force officers raided premises under renovation in a newly built public housing estate in Sheung Shui district.A total of six suspected illegal workers and one suspected employer were arrested. Thearrested suspected illegal workers comprise six men, aged 22 to 41. Furthermore, one man, aged 45, suspected of employing the illegal workers, was also arrested. An investigation into the suspected employers is ongoing, and the possibility of further arrests is not ruled out.

Apart from mounting the enforcement operation, ImmD officers and a promotional vehicle have been deployed to distribute "Don't Employ Illegal Workers" leaflets and convey the message in the estate.

An ImmD spokesman said, "Any person who contravenes a condition of stay in force in respect of him or her shall be guilty of an offence. Also, visitors are not allowed to take employment in Hong Kong, whether paid or unpaid, without the permission of the Director of Immigration. Offenders are liable to prosecution and upon conviction face a maximum fine of $50,000 and up to two years' imprisonment. Aiders and abettors are also liable to prosecution and penalties."

The spokesman stressed that it is a serious offence to employ people who are not lawfully employable. Under the Immigration Ordinance, the maximum penalty for an employer employing a person who is not lawfully employable, i.e. an illegal immigrant, a person who is the subject of a removal order or a deportation order, an overstayer or a person who was refused permission to land, has been significantly increased from a fine of $350,000 and three years' imprisonment to a fine of $500,000 and 10 years' imprisonment to reflect the gravity of such offences. The director, manager, secretary, partner, etc, of the company concerned may also bear criminal liability. The High Court has laid down sentencing guidelines that the employer of an illegal worker should be given an immediate custodial sentence.

According to the court sentencing, employers must take all practicable steps to determine whether a person is lawfully employable prior to employment. Apart from inspecting a prospective employee's identity card, the employer has the explicit duty to make enquiries regarding the person and ensure that the answers would not cast any reasonable doubt concerning the lawful employability of the person. The court will not accept failure to do so as a defence in proceedings. It is also an offence if an employer fails to inspect the job seeker's valid travel document if the job seeker does not have a Hong Kong permanent identity card. Offenders are liable upon conviction to a maximum fine of $150,000 and to imprisonment for one year. In that connection, the spokesman would like to remind all employers not to defy the law by employing illegal workers. The ImmD will continue to take resolute enforcement action to combat such offences.

Under the existing mechanism, the ImmD will, as a standard procedure, conduct an initial screening of vulnerable persons, including illegal workers, illegal immigrants, sex workers and foreign domestic helpers, who are arrested during any operation with a view to ascertaining whether they are trafficking in persons (TIP) and/or forced labour victims. When any TIP and/or forced labour indicator is revealed in the initial screening, the ImmD officers will conduct a full debriefing and identification by using a standardised checklist to ascertain the presence of TIP and/or forced labour elements. Identified TIP and/or forced labour victims will be provided with various forms of support and assistance, including urgent intervention, medical services, counselling, shelter or temporary accommodation and other supporting services. The ImmD calls on TIP and/or forced labour victims to report crimes to the relevant departments immediately.

For reporting illegal employment activities, please call the dedicated hotline 3861 5000, by fax at 2824 1166, email to anti_crime@immd.gov.hk, or submit "Online Reporting of Immigration Offences" form at www.immd.gov.hk.

Seven persons arrested during anti-illegal worker operation Source: HKSAR Government Press Releases

Seven persons arrested during anti-illegal worker operation Source: HKSAR Government Press Releases