Hong Kong customs arrests 45 people, seizes HK$10 million worth of black market cigarettes in crackdown at public housing estates
- Source familiar with operation says 35 buyers and 10 sellers detained last month, with public housing tenants accounting for most of those purchasing goods
- Officers seize 2.8 million untaxed cigarettes in raids, including 160 packs found on one buyer
Hong Kong customs officers have arrested 45 people and seized HK$10 million (US$1.3 million) worth of black market cigarettes in a two-week crackdown on the sale of the contraband by phone orders at public housing estates.
A source familiar with the operation on Wednesday said the 35 buyers and 10 sellers were detained last month while allegedly making transactions for the illegal tobacco products.
The insider said most of the buyers were public housing tenants who received fliers with price lists of different brands and contact numbers, and then placed orders over the phone.
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“The transactions took place in public housing estates, such as in alleys or indoor car parks in the morning when residents left for work or in the evening when they returned home,” the source said.
He said illicit cigarette syndicates used different members to collect money from buyers and hand over the contraband to avoid detection.
The largest seizure of goods from one of the buyers involved 160 packs of 20 untaxed cigarettes, he said.
Black market cigarettes are priced between HK$18 and HK$30 (US$2.30 and US$3.80) for a pack of 20, while the average cost for a taxed one is more than HK$70.
Officers from customs’ revenue crimes investigation bureau swooped on public housing estates between October 16 and 31 during the operation code-named “Thunder”.
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The 39 men and six women, aged between 16 and 75, were arrested in connection with 44 illicit cigarette cases. They were detained on suspicion of buying or selling illicit cigarettes – an offence punishable by up to two years in jail and a HK$1 million fine.
Officers also raided two public housing flats and an industrial unit that were allegedly used to store illicit cigarettes, according to the source. The Customs and Excise Department impounded two seven-seater vehicles used to distribute untaxed cigarettes, and seized a batch of fliers.
Officers seized 2.8 million untaxed cigarettes with an estimated street value of about HK$10 million, which would have generated HK$7 million in tax revenue if they had been imported legally.
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“Customs will continue to step up enforcement to vigorously combat illicit cigarette activities through risk assessment, intelligence analysis and interception at source,” the department said.
“If [public rental housing] flats are found to be involved in illicit cigarette activities, customs will notify the Housing Department for follow-up action after the conclusion of court proceedings.”
Customs officers have confiscated 572 million black market cigarettes worth HK$1.96 billion in the first 10 months of this year.
They seized 732 million illegal cigarettes worth HK$2.01 billion in the whole of last year – the biggest annual haul since records began two decades ago.
