But after being targeted by Customs officials they were now importing undeclared tobacco directly into warehouses and holding facilities for possible export later, said Superintendent David Fong Tai-wai, group head of the anti-illicit cigarette taskforce.

Some 212 million undeclared cigarettes were seized last year during transshipment, said Mr Fong. That compares with just 8.2 million so far this year.

But the amount of smuggled tobacco has increased to 128 million cigarettes so far this year, up from 69.8 million last year.

Rather than being declared as cigarettes - which would attract duty of $804 per 1,000 sticks - they are reported as other types of cargo such as toys, furniture, decorations or footwear.

'Last year we caused the smugglers a great loss so they have been routing around Hong Kong and they have also moved away from transshipments,' said Mr Fong. 'Smugglers are very flexible, they will change their methods quickly to avoid detection. It is a cat-and-mouse game.'

The imported illicit tobacco is mostly genuine cigarettes manufactured by suppliers for major international brands. Some of it is destined for the black market on Hong Kong's streets but a large part is also re-exported to other markets.

It is not possible to tell how much is consumed locally but the street trade has not grown visibly recently as a result of the rise in imports.

Black market cigarettes sell for about half of the retail price on the street in Hong Kong - $32 for a packet of Marlboro.

Counterfeit cigarettes, usually brands such as Benson and Hedges or Marlboro, were detected being exported from China for destinations such as South Asia and the Middle East through Hong Kong using river trading vessels, said Mr Fong.

Customs officials have described cigarette smuggling through Hong Kong as 'rampant' in official documents.

RAMPANT TRADE

128 million smuggled cigarettes have been seized this year

69.8 million were seized last year

Black market cigarettes sell for about $16 a packet, half the normal price