10. Customs Co-operation

World Customs Organization (WCO)

During 2005 and 2006, the department actively participated in the WCO's meetings, including the Customs Co-operation Council Sessions, the Permanent Technical Committee, the Enforcement Committee, the Integrity Sub-Committee, and the Information Management Sub-Committee and rendered full support to other activities, seminars, campaigns, joint enforcement operations, relating to the promotion of capacity building, customs integrity, trade facilitation, anti-piracy and counter-terrorism measures.

In order to show our support to WCO's initiative on trade facilitation and securing international supply chain, Hong Kong, China (HKC) has signed the Letter of Intent to implement SAFE Framework of Standards (SAFE FoS) on 10 November 2005. Prior to that, the department has provided logistic support to the WCO for organizing a Consultative High-level Meeting on SAFE FoS in Hong Kong for Members and the Business in the Asia-Pacific Region between 22 and 24 March 2005. Delegates from 24 Member administrations and representatives from 32 companies attended the meeting.

In June 2006, HKC submitted to the WCO Secretariat the "WCO SAFE FoS Self-assessment Checklist", which indicated the implementation status of various standards under the SAFE FoS in Hong Kong. A Diagnostic Mission for the implementation of the SAFE FoS, was taken place in the period between 4 and 15 December 2006. This was a study conducted by the WCO Diagnostic Experts in Hong Kong for assessing strategically the capability of HKC to reform and modernize its Customs service, as well as providing advice on the implementation of the SAFE FoS and the emerging World Trade Organization (WTO) facilitation agenda. A full report, which provides a strategic gap analysis, as well as findings and recommendations, would be submitted by the Diagnostic Experts to HKC in early 2007.

In September 2006, HKC submitted the Member Reporting Matrix (MRM) to the WCO Vice-Chair for the Asia Pacific Region for his consolidation of a Regional Reporting Matrix. The MRM is a self-reporting mechanism in assessing the progress of an administration in implementing the WCO SAFE FoS programme.

Regional Intelligence Liaison Office (RILO)

Since the relocation of the base of the RILO in the Asia Pacific region (RILO-AP) to Beijing on 1 January 2004, the department continued to render its support to the RILO-AP by deploying an officer to work as an intelligence analyst at the Beijing office.

Co-operation with other Customs Administrations

Through regular bilateral meetings, the department has enhanced mutual co-operation with the Mainland and other Customs administrations by establishing strong exchange networks for combating transnational crimes. On 22 and 23 November 2005, Deputy Commissioner Lawrence Wong led a three-member delegation to attend the 26th Customs Cooperation Conference with Korea Customs Service in Jeju Island of Korea. The Conference aimed at reviewing the cooperation between the two administrations in past year, updated each other on the recent strategic and technological developments, and discussed various issues of mutual and regional concern.

Hong Kong Customs and Macao Customs have been maintaining close working relationships for years. In 2005 and 2006, the two administrations held annual meetings respectively in Macao and Hong Kong. During the meetings, the latest developments of the two sides were introduced and matters of mutual concern were also discussed. Other than the annual meetings, the liaison officers of Hong Kong Customs and Macao Customs Service also held meetings on a quarterly basis to enhance mutual cooperation.

The Commissioner hosted the Annual Liaison Dinner on 6 January 2006. The Annual Liaison Dinner is a social function, which is held annually for the overseas Customs and law enforcement agencies stationed in Hong Kong to foster cooperation.

To further strengthen cooperation and mutual administrative assistance between Hong Kong Customs and the Customs Department of Thailand, both administrations signed a Customs Co-operative Arrangement on 1 March 2006. The Commissioner and Director-General of Thai Customs, Dr. Sathit Limpongpan represented their administrations in signing the Arrangement. It marked the will of both administrations to cooperate even more closely in such areas as fighting against smuggling and drug trafficking, and protecting intellectual property rights through  arrangements for mutual administrative assistance exchanged by the two sides.

With a view to enhancing the cooperative relationship with the local Consulates-General, the department held a familiarization visit to Lok Ma Chau Control Point for a delegation of the consular staff in Hong Kong on 24 October 2006. The delegation composed of Consuls-General, Customs attachés and representatives of overseas law enforcement agencies. Taking this opportunity, the Commissioner hosted a cocktail reception for the delegation while Mr. Lu Xinhua, Commissioner of the Ministry of Foreign Affairs of the People’s Republic of China in Hong Kong was invited as well.

In regard to Mainland Customs, the department held Annual Review Meetings in 2005 and 2006 with the General Administration of Customs (GAC) of  People’s Republic of China and its Guangdong Sub-Administration. Liaison officers of the two sides also met regularly during these two years to exchange information and experience on anti-smuggling work, collaborative measures, and ways to strengthen Customs co-operation.

The Guangdong Sub-Administration held the China Customs Basic Course in Guangdong Province in 2005 and 2006 respectively. The Shenzhen Customs District also organized visits to Huanggang and Luohu Control Points for our frontline officers in 2006. Besides, the department and the Mainland Customs have also organized various training programmes and seminars for each other, covering topics as human resource management, protection of intellectual property rights, intelligence analysis and risk management, valuation techniques, anti-smuggling and narcotics control.

Recognizing the importance of international cooperation with other Customs Administrations and law enforcement agencies in combating transnational crimes, the department continued to build up closer working relationships with Macao Customs Service, Customs attaché and representatives of other law enforcement agencies stationed in Hong Kong.

The department engaged actively in the exchange of information and intelligence on illegal activities involving smuggling, drug trafficking, excise duty evasion, intellectual property right infringement, and other Customs fraud. In 2005 and 2006, the department encountered 202 and 163 incidents respectively for information exchange with overseas Customs and law enforcement agencies in more than 20 countries.

Asia Pacific Economic Cooperation (APEC)

The department participated actively in various meetings of the APEC, in particular, those related to the Sub-Committee on Customs Procedures (SCCP). Between 2005 and 2006, the department attended workshops on Common Data Elements, and seminars on Supply Chain Security to share experience with other APEC SCCP members as well as to keep up with the latest development .

As the lead co-ordinator for the Collective Action Plans (CAPs) on Public Availability of Information and Customs-Business Partnership, the department updated the “Best Practices” handbook on disseminating Customs information in 2005, and revised the “Customs-Business Partnership Programmes” compendium in 2006. The handbook provides a good reference to APEC SCCP members on the dissemination methods of Customs information to the public while the compendium serves as a practical guide for APEC SCCP members to develop and enhance their own partnership programmes. Both publications can be downloaded from the APEC website
<http://www.apec.org/apec/apec_groups/
committees/committee_on_trade/sub-committee_on_customs.html>.

The APEC Framework for Secure Trade (same as WCO SAFE FoS) was adopted as a new CAP item at the APEC Sub-Committee on Customs Procedures Meeting in 2005.

In February 2006, HKC submitted the completed “APEC Framework Capacity Building Questionnaire” to the United States, the lead shepherd of the CAP for assessing our capacity building needs on various aspects related to the FoS implementation.

Co-operation with the Mainland Counterparts

For the prevention and detection of smuggling activities at the land boundary, the department maintained close communication and cooperation with the Mainland Customs. There was frequent exchange of information and parallel/joint operations at the land boundary control points.

Operational Co-operation

With a view to safeguarding public health, two parallel operations code-named “Parrot” were conducted during the periods 20 - 22 February 2006 and 17 - 30 June 2006 with the Mainland Customs at the Huanggang, Wenjindu, Shataojiao and Luohu control points. The operations aimed at combating the smuggling of live birds and poultry into Hong Kong by passengers and vehicles. As a result, 3 848 vehicles and 13 923 passengers were processed. 18 passengers abandoned a total of 25.85 kilograms of fresh chicken, 5.9 kilograms of frozen chicken, 11.5 kilograms of fresh goose and 2.8 kilograms of frozen duck during the operations.

Other joint operations with the Mainland Customs during the period are described below.

1. Officers of Man Kam To Control Point conducted 21 joint operations with the Shenzhen Wenjindu Customs with a view to combating the smuggling of dutiable commodities into Hong Kong and mobile phones out of Hong Kong by passengers. As a result, 5 cases involving 5 incoming passengers and 613 sticks of cigarette were effected.
   
   
2. Officers of Lok Ma Chau Control Point conducted 14 joint operations with the Shenzhen Huanggang Customs with a view to combating the smuggling of dutiable commodities, counterfeit goods and infringing optical discs into Hong Kong by incoming passengers. As a result, 1 case involving 1 incoming passenger and 220 sticks of cigarette were effected.
   
   
3. Officers of Sha Tau Kok Control Point conducted 3 joint operations with the Shenzhen Shataojiao Customs with a view to combating the smuggling of dutiable commodities into Hong Kong by incoming passengers. As a result, 2 cases involving 2 incoming passengers and 300 sticks of cigarette were effected.
   
   
4. Officers of Lo Wu Control Point conducted 7 joint operations with the Shenzhen Lohu Customs with a view to combating the smuggling of dutiable commodities into Hong Kong by incoming passengers. As a result, 13 cases involving 13 passengers and 4 508 sticks of cigarette, 0.7 litre of liquor, 4 kilograms of fresh pork and 1 kilogram of fresh chicken were effected.

Training Co-operation

In December 2005, the department signed an agreement with the General Administration of Customs (GAC) during the Annual Review Meeting held in Beijing for training of drug detector dogs and dog handlers. The GAC undertook to organize a total of four courses in 2006 and 2007 for officers of the department at the Ruili Drug Detector Dog Base in Yunnan. Each course will cater for three trainees and the dogs for training are provided by GAC. The first two courses were successfully held in 2006.

The training scheme not only provides an opportunity for exchange of drug detector dog training techniques, but also enhances cooperation between the two Customs Administrations.

Visits by Counterparts

On 9-11 November 2005, Mr. Mu Xinsheng, Minister of Customs of GAC led a 6-member delegation to visit the department. During the visit, Minister Mu discussed with the Commissioner the cooperation and future development of various aspects of Customs work, including simplified procedures on trade facilitation and co-location in new control points to promote economic development in the Pan-Pearl River Delta district.

On 23 January 2006, Mr Joop Wijn, State Secretary for Finance and Deputy Minister for Foreign Affairs of the Netherlands visited the department and discussed with the Commissioner on matters of mutual concern.

On 13 October 2006, Ms Karien van Gennip, Minister for Foreign Trade of the Netherlands visited the department and met with the Commissioner to discuss matters of mutual concern.

Officers of the department at the Hong Kong International Airport have maintained close relationship and co-operation with local and overseas counterparts through organizing numerous receptions of courtesy in the past two years. In 2005 and 2006, a total of 38 and 40 courtesy visits were arranged respectively.  Of the 38 visits in 2005, 15 were visits for overseas officials, 9 for Mainland officials and 14 for local agencies. For the year 2006, 17 of the visits were for overseas counterparts, ? for Mainland officials and 7 for local agencies.

In 2005-06, Customs officers of the Airport Command conducted familiarization visits to the Baiyuen Airport and the Pudung Airport in Mainland China and the Incheon Airport in Korea to share experience on Customs control at airports. In 2006, officers of the Command participated in a training seminar in Wuyi Shan, Fuzhou as guest speakers.

Co-operation with Other Government Departments

To combat various types of cross-boundary smuggling activities, the Control Points Command mounted periodic and special joint operations with other government departments at various entry and exit points. Details of these operations are provided below:-

Joint Operation with Agriculture, Fisheries and Conservation Department (AFCD)

Weekly joint operations were mounted since April 2005 with the AFCD at the Man Kam To Control Point and Sha Tau Kok Control Point. The operations aimed to ensure that the plant and wood products destined for Hong Kong from the Mainland are free of Red Imported Fire Ants.

Periodic joint operations were mounted with HKPF at the Lok Ma Chau, Man Kam To and Sha Tau Kok Control Points to prevent the smuggling of fireworks and firearms into Hong Kong. In addition, other joint operations that aimed to detect the smuggling of stolen trailers out of Hong Kong via the three control points were also mounted by the two departments.

Joint Operation with Immigration Department (ImmD)

Joint operations were mounted with ImmD at the Lok Ma Chau, Man Kam To and Sha Tau Kok Control Points to detect illegal immigrants hiding in incoming goods vehicles.

Joint operation with Food and Environmental Hygiene Department (FEHD)