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Clifford Lo

Hong Kong customs has notched up its biggest seizure of black market cigarettes this year after officials impounded HK$140 million (US$17.9 million) worth of contraband tobacco after a sea chase by two high-speed pursuit boats.
The Customs and Excise Department on Thursday said seven crew members of a cargo vessel, including the captain, were arrested in the biggest seizure of cigarettes so far this year.
Senior Inspector Adam Lam Wai-kit of the customs revenue crimes investigation bureau said 30.4 million cigarettes, hidden in three shipping containers, were discovered after the ship was intercepted off Lamma Island in the early hours of Wednesday.
Lam said one of the containers was packed with boxes of untaxed tobacco products with the packets labelled with the Hong Kong health warning.
The type of contraband cigarettes is known as “cheap white”.
“Criminals might try to pass off such ‘cheap white’ cigarettes bearing Hong Kong’s statutory health warnings as legally taxed cigarettes,” Lam said.
“They could be offering these untaxed cigarettes to retailers like news-stands and groceries, enticing them with substantial profits to distribute these illicit tobacco products on the market.”

He appealed to businesses not to buy cigarettes of unknown origin.
“Any cigarettes sold significantly below the normal tax rate are likely untaxed illicit cigarettes,” Lam warned. “If customs reasonably suspects that a business is selling untaxed cigarettes, we will take decisive enforcement action.”
The increase in tobacco tax in February’s budget pushed the average cost of a pack of 20 cigarettes up by HK$16 to more than HK$90, with tax accounting for HK$66 of the sale price.
The Post has learned that a pack of contraband cigarettes goes for between HK$20 and HK$40 on the black market.
Lam said that if tax had been paid on the latest haul of illegal cigarettes, the city would have benefited by HK$100 million.
“It is the largest seizure of illicit cigarettes in a single operation this year,” he said.
Customs said an investigation to trace the source and route of the untaxed cigarettes continued and that further arrests had not been ruled out.
The cargo vessel was first spotted in waters to the south of the city and tried to flee when two customs boats approached it.
Senior Inspector Lam Ming-hong, of customs’ ports and maritime command, said a forced boarding was needed to get the vessel to stop because it refused to follow instructions to halt.
Customs officers carried out a search after crew members were unable to produce shipping documents and the illicit cargo was discovered.
The seven crew members were still in custody for questioning on Thursday afternoon.
The crime of importation or exportation of unmanifested cargo is punishable by up to seven years in prison and a HK$2 million fine in Hong Kong.
The latest haul followed customs officers’ first bust of an illicit cigarette factory in Lau Fau Shan on July 3.
About HK$120 million worth of contraband and processed tobacco, as well as machinery was seized and four men were arrested.
Customs also launched a crackdown on street peddling of contraband cigarettes on July 1. The operation, which continues, has already led to the arrest of 44 people.
Anyone convicted of the sale, handling, purchase or possession of illicit cigarettes faces a maximum fine of HK$1 million and two years behind bars.


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Crime in Hong Kong

Customs officers seize HK$140 million of black market cigarettes after sea chase

The three containers found to contain millions of dollars worth of illegal cigarettes on board a cargo ship. Photo: Xiaomei Chen

(From left) Lam Wai-kit and Lam Ming-hong of Hong Kong Customs with the 30.4 million black market cigarettes impounded after a sea chase of a cargo ship. Photo: Xiaomei Chen

News

Hong Kong

Law and Crime

Captain and six crew arrested after customs officers find 30.4 million contraband cigarettes concealed in three shipping containers on ship


Captain and six crew arrested after customs officers find 30.4 million contraband cigarettes concealed in three shipping containers on ship.
