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Clifford Lo

Hong Kong customs has arrested three men and confiscated HK$33 million (US$4.2 million) worth of untaxed cigarettes hidden in a secret cargo hold on a tugboat, after intercepting the vessel that arrived from mainland China.
The Customs and Excise Department said on Friday they had seized the 7.4 million black-market cigarettes the day before, following increased sea patrols prompted by intelligence on cross-border sea smuggling activities.
The tugboat was spotted taking a roundabout path in the southwest waters of Hong Kong after entering the city from the mainland at daybreak on Thursday, according to Inspector Chan King-fung of customs’ marine support unit.
He said the vessel, carrying three Hong Kong crew members, was intercepted off Aberdeen.
“The crew claimed it did not carry any declared goods aboard, but their nervous behaviour aroused our suspicion,” he said.
Customs officers searched the vessel and found a metal plate concealing the entrance to a secret compartment, after removing two huge water tanks from the boat’s cargo hold.
Inside the compartment, they discovered a large number of cardboard boxes containing illicit cigarettes.
The inspector said the haul had an estimated street value of HK$33 million and government tax revenue on those goods would have generated about HK$24 billion if imported legally.
“We believe the criminals used the bulky and heavy water tanks as cover to make any search more difficult,” Chan said.
He said smugglers altered the cargo hold’s structure to store smuggled goods in an attempt to avoid detection.
The three men, aged from 26 to 57, were arrested on suspicion of importing unmanifested cargo – an offence punishable by up to seven years in prison and a HK$2 million fine.
Inspector Brian Cheung Yu-hin of customs’ marine investigation unit said the seized illicit cigarettes were mainly for local consumption.
Cheung said further arrests had not been ruled out as the investigation into the origin of the contraband was still ongoing.

He said customs officers seized 56 million untaxed cigarettes worth HK$250 million in anti-seaborne smuggling operations between January and August this year.
He added that customs would continue to carry out stringent enforcement actions to combat all types of smuggling activities through risk assessment and intelligence analysis.
An increase in the tobacco tax under Hong Kong’s budget this year has pushed up the average cost of a pack of 20 cigarettes by HK$16 to more than HK$90, with the levy accounting for HK$66 of the retail price.
The Post has learned that a pack of contraband cigarettes goes for an average price of HK$30.
Customs confiscated HK$1.4 billion worth of illegal tobacco products between January and August this year. The goods would have generated about HK$1 billion in government tax revenue if legally imported.
In Hong Kong, anyone convicted of the sale, handling, purchase or possession of illicit cigarettes faces a maximum fine of HK$1 million and two years imprisonment under the Dutiable Commodities Ordinance.


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Hong Kong customs seizes HK$33 million of illicit cigarettes hidden on tugboat

Government tax revenue from the cigarettes will have brought an estimated HK$24 billion if legally imported, according to authorities. Photo: Facebook/Kong Kong Customs

Customs officers arrested three men over the smuggling of the illicit cigarettes. Photo: Facebook/Kong Kong Customs

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News

Hong Kong

Law and Crime

Officers arrest three men, aged from 26 to 57, after searching vessel and finding 7.4 million black-market cigarettes in hidden compartment


Officers arrest three men, aged from 26 to 57, after searching vessel and finding 7.4 million black-market cigarettes in hidden compartment.


Crime

Smoking and vaping