Hong Kong enacted the Liquors Ordinance. To levy duties on liquors, the Government set up the Preventive Service subordinate to the Imports and Exports Department on 17 September.

The Preventive Service began levying duties on tobacco.

The Dangerous Drugs Ordinance was enacted to empower the Preventive Service in combating transnational drug smuggling activities. In the same year, the Preventive Service, for the first time, seized heroin.

The Government started levying duties on petrol. In 1939, diesel was subject to regulation as well.

Toilet preparations and medicated spirits became dutiable commodities until 1959.

Preferential Tariff System was introduced in Hong Kong. The Imports and Exports Department implemented the system of Certificate of Origin, benefiting the local industries with the low tariff for export to western countries.

Sheung Shui Revenue Station went into operation. Upon commissioning of this first outstation, the Preventive Service strengthened nocturnal inspections of licensed distilleries, clamped down on illicit distillation activities, searched the train for contrabands.

Duties were imposed on table waters until 1973.

The Preventive Service was reinstalled to assist the control of supplies such as rice.

The Hong Kong Government abolished the Opium Monopoly, classifying opium as a dangerous drug.

The China-Hong Kong Anti-smuggling Agreement was made to enhance cooperation between the China Customs and the Preventive Service in combating the rampant smuggling activities in the vicinity of the Hong Kong waters.

The United Nations' measure of food rationing ended. The Imports and Exports Department was renamed the Commerce and Industry Department. Its branch, the Preventive Service, resumed the responsibilities of import and export control, revenue protection and anti-smuggling operations etc.

The Hong Kong Government imposed an embargo against North Korea, prohibiting any goods from being exported to North Korea. The Hong Kong Government amended the Importation and Exportation Ordinance to impose stringent control on of strategic commodities.

Industrial methyl alcohol was abused to adulterate liquors, resulting in casualties after consumption. The Preventive Service therefore started to regulate and levy duties on methyl alcohol to safeguard public health. Duty on methyl alcohol was once abolished between 1972 and 1976.

The Preventive Service Ordinance was enacted. The legal status of the Preventive Service was thus established.

The Dutiable Commodities (Marking and Colouring of Hydrocarbon Oil) Regulations were introduced to authorize the Preventive Service to detect illegal activities such as the abuse of marked diesel oil as fuel for motor vehicles and the detreatment of marked oil etc.

The Industry Inspection Branch was established to inspect factories applying for Certificate of Preference and Certificates of Origin and to investigate textile product quota restrictions matters.

The Preventive Service assumed the sole responsibility for the enforcement of the copyright legislation. The Hong Kong Preventive Service Training School located in Tai Lam Chung was inaugurated.

The Commerce and Industry Department underwent restructuring with the Preventive Service renamed the Customs and Excise Service.

The Joint Intelligence Unit was co-established by the Customs and Excise Service and the Police at Kai Tak Airport for drug intelligence exchange.

The Department became an independent department on 1 August.

The Department became an official member of the World Customs Organization.

The World Customs Organization's Regional Intelligence Liaison Offices came into operation and the Department became its first operating unit.

The Financial Investigation Group was set up to investigate and confiscate the proceeds of drug trafficking.

An inter-departmental anti-smuggling task force (members including the Department, the Police and the Royal Navy) was established to combat smuggling involving high-powered speedboats.

The Department started assessing Motor Vehicle First Registration Tax.

Anti-cigarette Smuggling Task Force was set up to combat cigarette smuggling problem.

Controlled Chemical Group was set up to strengthen the control on the import and export of precursor chemicals used in illicit manufacture of dangerous drugs.

Following the reunification with the motherland, Hong Kong became a special administrative region of the People's Republic of China. Under the Basic Law, Hong Kong Special Administrative Region remains a separate customs territory and the Commissioner became one of the principal officials of the HKSAR Government.

The Prevention of Copyright Piracy Ordinance took effect, authorizing the Department to impose licensing requirements upon manufacturing of optical disc.

The Special Task Force was set up to take enforcement actions against illicit oil, dutiable cigarettes and copyright piracy activities at retail level.

The Anti-Internet Piracy Team was set up to cooperate with the industry in fighting piracy on the Internet. The Department was elected Vice-Chair of the World Customs Organization in the Asia-Pacific Region, leading members in the Region to formulate the Regional Strategic Plan as the strategic blueprint for the customs in the region.

The Computer Forensic Laboratory was set up to provide other formations in the Department with professional service in computer forensic examination.

Implementation the Electronic Data Interchange System for Dutiable Commodities Permit allows licensees of dutiable commodities to apply for dutiable commodities permits through electronic means.

The installation of two Fixed X-ray Vehicle Inspection Systems at Lok Ma Chau Control Point, substantially speed up the clearance of cross-boundary vehicle and cargo. The implementation of the Open Bond System, sparing Customs deployment of staff to bonded warehouses, reduce the warehousing industry's operating costs and facilitating trade.

The installation of Automatic Vehicle Recognition System was installed at four land boundary control points to capture vehicle registration numbers automatically, greatly reduce the vehicle clearance time.

The "Red and Green Channel System" was launched at all control points to enhance passenger clearance efficiency.

The Department, together with the Intellectual Property Department and the copyright industry, launched the "Youth Ambassador Against Internet Piracy Scheme" to combat illegal file-sharing of copyright works on the Internet.

The Department and the General Administration of Customs of the People's Republic of China jointly organized the Pan-Pearl River Delta Customs Trade Facilitation Forum cum Regional Customs Commissioners' Joint Conference in HKSAR to strengthen inter-customs and customs-business partnership in the region.

The Department celebrated its centenary.