Hong Kong authorities seize tonnes of American ginseng bound for mainland China in biggest bust for a decade
- Smugglers’ plot to evade mainland taxes foiled by customs, police operation
- Source believes traditional medicine herb may be in high demand because of coronavirus outbreak
More than three tonnes of imported American ginseng worth about HK$4.6 million (US$591,000) have been seized and five people arrested in what Hong Kong authorities say is the largest bust of its type for a decade.
Police and customs officers swooped on a gang in Lantau Island as it attempted to load the herb hidden in 102 boxes onto a speedboat bound for mainland China, it was revealed on Thursday.
The last seizure of ginseng, which is popular in traditional Chinese medicine, was in 2014 with the consignment weighing less than a kilogram (2.2 pounds).
“Amid the coronavirus outbreak, it is possible there is a high demand of American ginseng on the mainland because people believe it can help boost the immune system,” a law enforcement source said.
Another source said the smuggling operation was designed to evade hefty mainland tariffs of more than 50 per cent.
He said the cargo was valued at HK$4.6 million in the city, but could be sold for more than HK$7 million on the mainland.
Officers began investigating a cross-border smuggling syndicate that became active around Hong Kong’s southwestern waters last week, according to senior inspector Ip Hau-foon from the Marine Police task force.
‘Largest smuggling bust’ as Hong Kong officials seize mainland-bound goods
The joint operation by the Customs and Excise Department and Hong Kong police was mounted on Wednesday night when officers lay in wait off Tung Chung Waterfront Road on Lantau Island.
In the early hours of Thursday, a truck was driven in and boxes of goods were unloaded before the vehicle left.
About three hours later, five men arrived and moved the boxes to a nearby pier before a speedboat with two outboard engines berthed at the pier.
As the five men began unloading the cargo onto the speedboat, officers sprang into action, but the speedboat loaded with several boxes of goods sped away with two smugglers on board.
They got away from two pursuit crafts and left Hong Kong waters, heading towards Shenzhen.
At the pier, officers seized 111 boxes in total. The 3.3 tonnes (3.6 short tons) of ginseng was found in 102 of them. The other nine contained 2,200 cosmetic products such as lipstick with an estimated street value of HK$800,000 (US$103,000).
HK$85 million worth of cigarettes in largest seizure of its kind in 20 years
The five suspects – all Hongkongers aged between 24 and 39 – were arrested for trying to export unmanifested cargo, an offence carrying a maximum penalty of seven years in jail and a HK$2 million fine. Four of them are unemployed and the fifth is a goods vehicle driver.
Jonathan Leung Yiu-man, head of Customs’ marine investigation division, said they were investigating the source of the smuggled goods and trying to track down the ringleader of the cross-border syndicate.
Police said the five suspects had been released on bail pending further investigation. The five men are required to report back to police in May.
