Hong Kong Customs smashed a supply chain for telephone ordering of illicit cigarettes yesterday (March 31) at Tin Shui Wai. About 400 000 sticks of suspected illicit cigarettes were seized on a light goods vehicle and in a storehouse. The total market value of the cigarettes was about $1.1 million with a duty potential of about $800,000. In the operation, two men aged 40 and 42 were arrested and the vehicle used for distribution of suspected illicit cigarettes was seized.
In the first quarter of this year, Customs conducted stringent enforcement action targeting supply chains for telephone ordering of illicit cigarettes. In total, 193 cases were effected and about 3.3 million sticks of suspected illicit cigarettes were seized. The total market value of the cigarettes was about $8.5 million with a duty potential of about $6.3 million. Eight vehicles suspected to be used for delivering illicit cigarettes were also seized.
A Customs spokesman said today (April 1) that telephone ordering of illicit cigarettes had become the predominant means of transaction in the illicit cigarette market. Customs adopted strategies targeting cross-boundary smuggling of illicit cigarettes as well as smashing illegal sale and distribution of illicit cigarettes by telephone ordering, thereby intercepting the supply chain from source to the retail level. Customs will continue to closely monitor the situation and conduct stringent enforcement action against illicit cigarette activities.
Under the Import and Export Ordinance, smuggling is a serious offence. The maximum penalty is a fine of $2 million and imprisonment for seven years.
Under the Dutiable Commodities Ordinance, anyone involved in dealing with, possession of, selling or buying illicit cigarettes commits an offence. The maximum penalty is a fine of $1 million and imprisonment for two years.
Members of the public are urged to report suspected illicit cigarette activities by calling the Customs hotline 2545 6182.
Ends/Wednesday, April 1, 2015