Hong Kong customs makes record haul of HK$222 million worth of illegal cigarettes
- The nearly 78 million cigarettes uncovered are part of a wider haul totalling HK$270 million in operation against new smuggling syndicate
- Criminal activities thought to be sparked by eased pandemic situation and rise of seaborne logistics operations
Hong Kong customs officers have seized HK$222 million (US$28.3 million) worth of black-market cigarettes in a crackdown on a newly established smuggling syndicate, marking their biggest single seizure of the contraband since records began more than two decades ago.
The nearly 78 million cigarettes confiscated were part of a HK$270 million haul of illegal tobacco products made in a week-long operation citywide that ended on Tuesday. Customs arrested 20 men and three women.
One of the 23 suspects arrested in the week-long operation was a truck driver, 58, picked up at the remote Ha Tsuen area of Lau Fau Shan in the New Territories. Officers discovered 13.6 million cigarettes in his vehicle, and further investigation led to six shipping containers stashed with 64.2 million more.
Officers from customs’ revenue crimes investigation bureau intercepted the man’s container truck at around midday and discovered 13.6 million contraband cigarettes in the vehicle.
A subsequent investigation led officers to uncover another six shipping containers stashed with 64.2 million cigarettes in two storage yards in the remote area.
“The consignment has an estimated street value of HK$222 million. It is the biggest seizure of illicit cigarettes found in a single operation in 21 years since our records began in 2002,” Superintendent Lee Hoi-man of the bureau said on Friday.
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He said the investigation suggested the syndicate started its operation about four weeks ago as the eased pandemic situation and resumption of seaborne logistics business might have led to a rise in demand for illicit cigarettes in the city and abroad.
“To stay ahead of other suppliers, the gang stashed a large amount of illegal tobacco products in Hong Kong over the past two weeks, with the goods ready to be distributed once buyers are found,” he said.
He believed the syndicate stockpiled such a huge volume of black-market cigarettes in the city as it anticipated a possible rise in the price of the items in Europe amid high inflation. “Once the price goes up, they sell their stock and pocket more money,” Lee said.
According to the Customs and Excise Department, half of the haul was intended for the local underground market while the rest was believed to be destined for countries such as Britain, Germany, Australia and New Zealand.
The superintendent said the syndicate worked cautiously and used two container yards to store the contraband in an attempt to reduce financial losses in case one of the sites was discovered.
“The shipping containers stashed with illegal cigarettes were also placed along with several empty containers to evade detection,” Lee said.
He added that officers were still investigating the origins of the seized goods, with an investigation under way and further arrests possible.
In Hong Kong, a pack of 20 cigarettes sells for anywhere between HK$50 and HK$60, whereas illegal ones can go for as little as HK$20 a pack.
Dealing with, possession of, selling or buying illicit cigarettes is punishable by up to two years in jail and a HK$1 million fine under the Dutiable Commodities Ordinance.
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The seizures made in the week-long operation have pushed the number of illicit tobacco products uncovered this year until July 12 to 259 million, with an estimated street value totalling HK$719 million, up 22 per cent from 215 million cigarettes worth HK$591 million over the same period last year.
If legally imported, the contraband found this year would have generated HK$495 million in tax revenue.
Lee stressed Hong Kong customs would continue stringent enforcement actions and the exchange of intelligence with counterparts to combat the illegal trade.
He also appealed to young people not to be tempted into illegal activities such as the peddling or delivery of illicit cigarettes to earn extra cash over the summer holidays.
Customs officers confiscated 430 million contraband cigarettes worth HK$1.17 billion last year – the highest volume in such seizures ever, more than double the quantity confiscated in 2020.
