Anti-narcotics Strategy

As a major law enforcement agency entrusted with anti-narcotics responsibilities and legislative power, the department actively detects and prevents drug trafficking in Hong Kong. The department adopts a three-pronged approach to combat drug trafficking, i.e. drug investigation, recovery of drug/crime proceeds and control of precursor chemicals used in the illicit manufacture of drugs.

2. The Department exercises stringent control at entry and exit points to prevent the inflow of drugs and their transit through Hong Kong. Selection and inspection capabilities are supported by intelligence, computer systems, high-tech equipment and drug detector dogs. The fight against drugs is not restricted to entry and exit points only. Proactive in-depth investigations into syndicated drug trafficking activities at all levels throughout Hong Kong are also conducted through surveillance operations and collection of intelligence on targeted syndicates and individuals.

3. The department is also vested with the responsibility to trace, restrain and confiscate drug or crime proceeds derived from illicit activities. The prime goals are to detect and prevent drug traffickers or criminals from re-investing drug or crime proceeds to finance further drug trafficking and other criminal activities and use Hong Kong as a base for money laundering.

4. Being the sole agency responsible for the enforcement of the Control of  Chemicals Ordinance, the department has established an effective licensing system to monitor and control precursor chemicals. Through licensing control and an international liaison network, the department strictly inhibits the illicit diversion of such chemicals at both local and global levels.

Drug Trafficking Trend

5. Drug traffickers took advantage of the heavy vehicular and passenger flow at the entry/exit points and the long coastal lines of Hong Kong in smuggling drugs. Narcotic drugs in bulk were believed to be imported into Hong Kong through concealment in large shipments of commercial cargoes. Small-scale trafficking involved methods like body packing, internal concealment, concealment inside various items or use of false baggage compartment. Traffickers also made use of mail and express parcels adopting diversionary routings to smuggle small quantity of drugs.

6. Heroin remained the most common drug of abuse in Hong Kong. The heroin seized in Hong Kong mainly originated from the Golden Triangle and was transported overland to the southern part of the Mainland such as Guangdong or Yunan Provinces for stockpiling. Drug syndicates usually employed drug couriers and use lorries and private cars to smuggle heroin in small and frequent consignments into Hong Kong. Some traffickers concealed the drug inside their body cavities in order to circumvent detection. During 2003, the department arrested a total of 12 drug couriers (including two with internal concealment) with heroin seizures ranging from about 100 grams to two kilograms at the land boundary crossing points. In 2004, 14 drug couriers were arrested with heroin seizures ranging from about 0.3 grams to 272 grams at the land boundary crossing points.

7. Same as in 2002, ketamine was the second most widely abused drug in Hong Kong. Meanwhile, ketamine has now become firmly established as the most prevalent drug of abuse among young persons. In 2003 and 2004 respectively, 47 and 32 cases were detected with 50 and 34 arrests in connection with ketamine. Most of the ketamine were sourced from the Mainland, which were packed in small packets (250 grams) for smuggling across the boundary by passengers.

8. The sources of herbal cannabis found in Hong Kong are mainly from Cambodia and Thailand. Whilst small quantities of herbal cannabis are smuggled into Hong Kong by means of air parcels, bulk quantities are usually concealed in sea cargo shipments. Abuse of cannabis resin is not common in Hong Kong. With diminishing demand of cannabis resin in Hong Kong, smuggling activities of this drug have been quiescent for some years. However, there were three significant cases effected by Customs in 2003, one of which was the arrest of a Nepalese courier at the Hong Kong International Airport with seizure of 6.76 kilograms of cannabis resin. In January 2004, officers at the airport arrested a Nepalese man arriving from Kathmandu with the seizure of 6.5 kilograms cannabis resin. In May of 2004, 9.1 kilograms of cannabis resin were also detected from a Nepalese woman arriving from Kathmandu. The drugs were ingeniously pressed into round strips hidden in dried buffalo meat.

9. What worth particular attention is the first ever detection of cannabis buds (1.63 kilograms) in Hong Kong by Customs in early February 2004, followed by a significant seizure of 26 kilograms effected in March, which fetched a total retail price up as much as $7.8 million. The level of THC (9-tetrahydrocannabinol-the primary active ingredient in cannabinoids) found in the seized cannabis buds was in the range of 11 to 16 percent, which showed that their potencies were much higher than the average one to three percent found in herbal cannabis. In 2004, cannabis buds were smuggled into Hong Kong through the mail system and a total seizure of 40.5 kilograms of cannabis buds were made.

10. The majority of methylamphetamine (‘ice’) seized in Hong Kong originated from neighbouring countries including the Mainland, and was either for local consumption or for small-scale re-export to other Southeast Asian countries. ‘Ice’ is an important raw material for the manufacture of "Ya Ba" tablet which is a common drug of abuse in Malaysia and Indonesia. Due to the keen demand and high profit margin, ethnic Indonesian, Malaysian and Taiwan criminal groups have been active in trafficking ‘ice’ from the Mainland to Indonesia, Malaysia and the Philippines. As a result of vigorous enforcement actions of the Customs in recent years, "ice" smuggling activities have been quiescent since the beginning of 2003. Intelligence indicated that Myanmar has become a new source of "ice" for its neighbouring consumption countries including Thailand, Indonesia and Malaysia.

11. On the other hand, Guam has recently emerged as a new market for Mainland-produced "ice". The trend was evidenced by the detection of two "ice" cases in the first half of 2003. In February 2003, a joint investigation between Hong Kong Customs and US DEA led to the seizure of 2.8 kilograms of "ice" from a parcel that arrived in Guam from Hong Kong. Another case was effected at the Hong Kong International Airport in April 2003 with seizure of 3.44 kilograms of "ice" found on a passenger departing for Guam.

12. The abuse of "ecstasy", once on a meteoric rise, has rapidly lost its popularity in the past two years. In 2003, the department cracked a total of three significant cases, one of which involved the arrest of two traffickers at the Hong Kong International Airport with seizure of 22 542 tablets of MDMA. The seizures, sourced from the Netherlands, were intended for the market in Japan. Other than the products from Europe, lower quality "ecstasy-type" tablets produced on the Mainland are commonly found in night entertainment venues. These "ecstasy-type" tablets contain substances such as ketamine, "ice" and other additives.

13. In 2004, a significant case was effected with the seizure of 62 700 tablets of high quality MDMA (concealed inside seven aquarium purifiers in an express parcel arriving from Belgium) and the arrest of four persons in the controlled delivery operation.

14. Cocaine, originating in South America, is only used among a minority of affluent sector of the community. To circumvent Customs detection, traffickers have adopted diversionary routes starting from South American countries to Europe, or the USA or South Africa, before coming into Hong Kong. Internal concealment method was popular in cocaine trafficking and it was likely the result of Customs’ heightened awareness on passenger luggage and commercial consignments. In 2003, Customs arrested seven couriers at the Hong Kong International Airport for trafficking a total of 5.74 kilograms of cocaine.

Drug Enforcement

16. With the enhanced intelligence support and vigorous enforcement actions, the department achieved significant results in the suppression of drug abuse and drug trafficking activities. In 2003, the department arrested 723 drug offenders, smashed one drug attenuating centre and eight distribution centres. Total seizures included 11.95 kilograms of heroin, 11.86 kilograms of ketamine, 51 285 tablets of MDMA (‘ecstasy’), 16.37 kilograms of cannabis, 3.46 kilograms of methylamphetamine (‘ice’), 5.76 kilograms of cocaine and 28 001 tablets of other psychotropic tablets. In 2004, the department arrested 700 drug offenders, smashed one drug attenuating centre and 16 distribution centres. Total seizures included 11.3 kilograms of heroin, 4.8 kilograms of ketamine, 116 477 tablets of MDMA (‘ecstasy’), 112.2 kilograms of cannabis, 11 kilograms of methylamphetamine (‘ice’), 13.2 kilograms of cocaine and 26 237 tablets of other psychotropic tablets.

17. On the international co-operation front, the department continued to take an active role in the exchange of intelligence and the conduct of joint operations with other Customs administrations and law enforcement agencies. In 2003, significant cases included a seizure of 2.8 kilograms of methylamphetamine and one arrest in Guam; a seizure of 1.15 million tablets of MDMA and 13 arrests in Australia and Malaysia; a seizure of 100 kilograms of heroin and three arrests in Australia; and a seizure of 20 kilograms of herbal cannabis and one arrest in Japan. Besides, there were the smash of a drug factory with a seizure of 1 070 kilograms of methylamphetamine and five arrests in the Philippines; a seizure of 13.36 million tablets of pseudoephedrine (precursor for manufacture of methylamphetamine) and 14 arrests in Mexico; and a seizure of 20 000 kilograms of potassium permanganate (precursor for manufacture of cocaine) in Turkey.

18. For the year of 2004, significant cases included a seizure of two kilograms of liquid methylamphetamine and one arrest in Guam; a total seizure of 4.91 kilograms of methylamphetamine and two arrests in Japan in two cases; a total seizure of 1.4 kilograms of heroin, 2 230 tablets of MDMA and nine arrests on the Mainland; and the neutralization of a drug attenuating and storing centre on the Mainland with a seizure of 15 kilograms of heroin and 11 arrests. In addition, notable cases includes a seizure of 1.2 kilograms of methylamphetamine and one arrest in New Zealand; a seizure of 675 kilograms of methylamphetamine and 11 arrests in the Philippines; a seizure of 15.8 kilograms of liquid methylamphetamine and one arrest in Australia; and a total seizure of 53.64 million tablets of pseudoephedrine (precursor for manufacture of methylamphetamine) and one arrest in Mexico and the USA in five cases.

Superintendent C K Cheung, Daniel paid a liaison visit to various law enforcement agencies in Thailand for enhancing mutual cooperation and intelligence exchange in July 2004.

Financial Investigation

19. The department has been taking an active role in tracing proceeds derived from drugs and organized crimes, and the result is encouraging. In recognition of the substantial assistance rendered by the department in the confiscation of US$100 millions of drug proceeds from a drug syndicate in the USA, the US Government awarded US$2.9 million of forfeited drug proceeds to the HKSAR Government in July 2003. Locally, the Joint Financial Intelligence Unit operated by the Customs and the Police received 11 678 suspicious transaction reports from the financial institutions in 2003, among which 704 were forwarded to the department for follow-up investigation. In 2004, the department restrained assets of $0.95 million from a drug trafficker. The Joint Financial Intelligence Unit received 13 223 suspicious transaction reports from the financial institutions, among which 399 were forwarded to the department for follow-up investigation.

Control of Chemicals

20. The department maintains a licensing system under the Control of Chemicals Ordinance to regulate the trade of 25 chemicals, which are commonly used for the illicit manufacture of narcotic drugs and psychotropic substances.

21. In addition, the department has been participating in a global co-operation mechanism to monitor the movements of precursor chemicals in a bid to prevent illicit diversion. Pre-export Notifications (PENs) are issued to the importing countries or territories for verifying the legitimacy of the shipment before export approval is granted. In 2003 and 2004 respectively, 367 and 463 PENs were issued to 23 and 21 countries.

22. In 2003 and 2004, the department continued to participate actively in three international tracking programmes, namely "Operation Purple", "Operation Topaz" and "Project Prism" for respectively monitoring the movements of potassium permanganate, acetic anhydride and chemicals that could be used for illicit manufacture of amphetamine-type stimulants.

23. Since July 2003, Customs officers of Customs Drug Investigation Bureau and the Airport Command have been participating in a prolonged operation with local and overseas authorities with a view to tracking shipments of pseudoephedrine tablets exported from Hong Kong and preventing the same from illicit diversion for use in the manufacture of drugs. In 2003, the operation resulted in a total seizure of 13.36 million pseudoephedrine tablets and the arrest of 14 persons by the Mexican authority. By the end of 2004, the operation joined by multi-agencies including the Department of Health resulted in a total seizure of 66.42 million pseudoephedrine tablets and the arrest of 15 persons by the US and Mexican authorities.

24. In April 2003, customs officers seized at the Hong Kong International Airport 30 kilograms of potassium permanganate which were found inside an inbound consignment from Sydney, Australia without a valid import licence.