Hong Kong Customs Completes Successful Pilot Run for New Duty Stamp System on Cigarettes

Pilot Run for Duty Stamp System by Hong Kong Customs concludes

The three-month Pilot Run for the Duty Stamp System launched by Hong Kong Customs concluded on January 4. The Pilot Run simulated the operational procedures of the Duty Stamp System in a real setting for testing operational procedures and related technologies, monitored the delivery of cigarettes affixed with trial duty stamps throughout the entire supply chain from the manufacturing premises to their sale at retail outlets, and collected views and feedback from various stakeholders.

During the Pilot Run, under the supervision of Customs officers and a technical consultant, local cigarette manufacturers conducted several operations of affixing trial duty stamps. Overall, the affixing operations achieved a successful rate of 99 per cent. Those cigarettes affixed with trial duty stamps have been delivered to various retail outlets for sale after duty payment, including chain convenience stores, newspaper stalls and stores. Customs also arranged distribution of promotional posters, leaflets and questionnaires to all related retail outlets for facilitating a better understanding of the tobacco retail industry and the public on key features of the Pilot Run.

As well, Customs officers affixed trial duty stamps to packets of cigarettes brought into Hong Kong by travellers or imported via small shipments after duty payment at Duty Collection Offices of six border control points and Hong Kong International Airport (HKIA) cargo terminals.

As of January 3, Customs collected a total of 504 questionnaire responses from the public. The consolidated views showed that the public expressed positive feedback towards the publicity information of the Pilot Run, the design of the trial duty stamps, and the condition of cigarette retail packets after affixation.

To enhance public awareness of the Duty Stamp System, Customs conducted a series of promotional activities during the Pilot Run, including disseminating relevant information through the Customs website, social media and press releases. Customs also displayed promotional posters, distributed information leaflets at all border control points, HKIA and public housing estates, as well as set up mobile promotional booths in selected districts. In addition, Customs also arranged multiple briefing sessions for stakeholders with the aim of delivering details about the Duty Stamp System and the Pilot Run to different sectors in society.

Customs has been actively maintaining a close communication with the tobacco industry and relevant stakeholders. Following the introduction of the Pilot Run in meetings with representatives from the tobacco industry and chain convenience stores held in mid-October 2025, Customs organised two briefing sessions in early December 2025 and called on members of Customs' Dutiable Commodities Customer Liaison Group, tobacco affairs concern groups and an association of newspaper stalls industry to participate. The two briefing sessions were joined by a total of 42 representatives from local tobacco manufacturers and importers, overseas cigarette manufacturers and the newspaper stalls industry. Apart from providing participants with information on the content and objectives of the Pilot Run, the procedure of stamp application and data flow tested in the Pilot Run, Customs also answered enquires from participants on-site. The tobacco industry held positive views towards the information disseminated by Customs. After the briefing sessions, Customs distributed questionnaires to collect the industry's views, and distributed samples of the trial duty stamp to participants for their reference or testing purposes.

Industry views are still being gathered, Customs will, upon concluding the experience gained in the Pilot Run and examining the feedback collected from the industry, work with the technical consultant to optimise the design of the Duty Stamp System, including the procedures for applying duty stamps, the affixation requirements, and the details regarding installation and design of dedicated devices. Customs will continue to disseminate information to the tobacco retail industry through various channels. Customs takes this opportunity to encourage industry members to participate in briefing sessions organised by Customs and to contact Customs directly with inquiries.

Customs plans to implement the first phase of the Duty Stamp System in the fourth quarter this year, with full implementation in the second quarter of 2027, thus achieving the ultimate goal of effective distinguishment of duty-paid cigarettes from duty-not-paid ones, and to combat "cheap whites".

The Hong Kong Customs

Two male drivers convicted and jailed for importing and dealing with duty-not-paid cigarettes

Two male drivers, aged 36 and 51, were sentenced to eight months' and seven months' imprisonment respectively by the West Kowloon Magistrates' Courts today (January 7) for importing and dealing with duty-not-paid cigarettes, in contravention of the Dutiable Commodities Ordinance (DCO).

On October 13, 2025, Hong Kong Customs and Traffic New Territories Southof the Hong Kong Police Force mounted joint anti-smuggling operations at the Hong Kong-Zhuhai-Macao Bridge (HZMB) Hong Kong Port. Through risk assessment and intelligence analysis, officers of Customs and the Police intercepted two inbound private cars at the HZMB Hong Kong Port on that day. Upon inspection, Customs officers seized about 130 000 duty-not-paid cigarettes from the front and rear passenger seats, the boot and hollow spaces of the private car of the 36-year-old man. He was sentenced today to eight months' imprisonment for importing duty-not-paid cigarettes.

Also, Customs officers seized about 140 000 duty-not-paid cigarettes with a similar concealment in the 51-year-old man's private car. The man was sentenced today to seven months' imprisonment for dealing with duty-not-paid cigarettes.

The two private cars were also seized. The total estimated market value of the cigarettes seized in the case was about $1.33 million, and the duty potential was about $880,000.

Customs welcomes the sentences. The custodial sentences have imposed a considerable deterrent effect and reflect the seriousness of the offences.

Customs reminds members of the public that under the DCO, tobacco products are dutiable goods to which the DCO applies. 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.

Customs will continue to combat cross-boundary smuggling activities with firm enforcement action.

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).

Two male drivers convicted and jailed for importing and dealing with duty-not-paid cigarettes Source: HKSAR Government Press Releases

Two male drivers convicted and jailed for importing and dealing with duty-not-paid cigarettes Source: HKSAR Government Press Releases