Hong Kong Customs combats illicit cigarette smuggling activities involving air passengers and dismantles related illicit cigarette storage centres
Hong Kong Customs mounted enforcement operations to combat illicit cigarette smuggling activities involving air passengers and shut down related illicit cigarette storage centres between September and December, successfully neutralising a transnational syndicate that smuggled illicit cigarettes through air passengers. A total of about 11.64 million illicit cigarettes and 1.4 million alternative smoking products were seized, with an estimated market value of about $56.5 million. The duty potential of the illicit cigarettes was about $38.5 million. Sixty-one persons connected with the cases were arrested.
During the operations, Customs detected 38 illicit cigarette smuggling cases involving passengers at the airport and seized a total of about 1.44 million illicit cigarettes. Forty-three passengers, aged between 21 and 61 and arriving in Hong Kong from the East and Southeast Asian regions, were arrested.
Following intelligence analyses and in-depth investigations into the cases, Customs discovered that a cigarette smuggling syndicate had been using hotel rooms as distribution points for the illicit cigarettes. After sorting and packaging, the illicit cigarettes would be transported to storage centres in industrial or commercial buildings for temporary storage and subsequently supplied to different districts or transported to logistics centres for overseas transshipment.
Customs then mounted a series of enforcement actions and raided various illicit cigarette distribution points and storage centres, including three hotel rooms in Tsuen Wan, Ting Kau and Tuen Mun, five industrial building units in Kwai Chung, Fanling, Tuen Mun and Ap Lei Chau, one commercial building unit in Tsuen Wan, and one logistics centre in Tsing Yi. A total of about 10.2 million illicit cigarettes and 1.4 million alternative smoking products were seized, and 18 men, aged between 22 and 52, were arrested.
Fifty-seven of the arrestees had been charged for dealing with or possessing duty-not-paid cigarettes, failing to declare them to Customs officers, or importing alternative smoking products, in contravention of the Dutiable Commodities Ordinance (DCO) or the Import and Export Ordinance (IEO), while 35 of them were convicted and sentenced to imprisonment for between four weeks and nine months at the Magistrates' Courts. Customs welcomes the sentences. The custodial sentences have imposed a considerable deterrent effect and reflect the seriousness of the offences.
It is believed that the operations have effectively disrupted the source and the local supply chains of the illicit cigarettes. As some of the brands of the illicit cigarettes seized were uncommon in Hong Kong, Customs believes that the syndicate planned to transport part of the illicit cigarettes to regions with higher tobacco duty for profit.
Customs will continue its risk assessment and intelligence analysis for interception at source as well as through its multipronged enforcement strategy targeting storage, distribution and peddling to vigorously combat illicit cigarette activities.
Under the DCO, any person who imports, deals with, possesses, sells or buys illicit cigarettes commits an offence. The maximum penalty upon conviction is a fine of $2 million and imprisonment for seven years. In addition, under the IEO, any person who imports an alternative smoking product into Hong Kong commits an offence. The maximum penalty upon conviction is a fine of $2 million and imprisonment for seven years.
Members of the public may report any suspected illicit cigarette activities to Customs' 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).
Hong Kong Customs combats illicit cigarette smuggling activities involving air passengers and dismantles related illicit cigarette storage centres Source: HKSAR Government Press Releases
Hong Kong Customs combats illicit cigarette smuggling activities involving air passengers and dismantles related illicit cigarette storage centres Source: HKSAR Government Press Releases
Hong Kong Customs combats illicit cigarette smuggling activities involving air passengers and dismantles related illicit cigarette storage centres Source: HKSAR Government Press Releases
