Millions of contraband cigarettes are flooding into Hong Kong after a crackdown on smugglers using the SAR as a transit port.
Hong Kong is a transit point for international smuggling syndicates - shipments have been seized destined for the mainland and Southeast Asian nations such as Malaysia and the Philippines and as far afield as South America and the Middle East.
Until last year the masterminds behind this billion-dollar trade had brought their cargo into port and transferred it to vessels heading for other destinations.
But after being targeted by Customs officials they were now importing undeclared tobacco directly into warehouses and holding facilities for possible export later, said Superintendent David Fong Tai-wai, group head of the anti-illicit cigarette taskforce.
Some 212 million undeclared cigarettes were seized last year during transshipment, said Mr Fong. That compares with just 8.2 million so far this year.
But the amount of smuggled tobacco has increased to 128 million cigarettes so far this year, up from 69.8 million last year.
Rather than being declared as cigarettes - which would attract duty of $804 per 1,000 sticks - they are reported as other types of cargo such as toys, furniture, decorations or footwear.
