Hong Kong customs officers seize HK$190 million worth of black market cigarettes in second-largest smuggling bust
- Haul of 69 million cigarettes found hidden in seven cargo containers on board barge berthed in Yau Ma Tei
- Customs officers arrested 49 people for being involved in storage, distribution and peddling of contraband cigarettes during two-week operation
Officers arrested a woman and confiscated HK$190 million (US$24.2 million) worth of black market cigarettes in the second-largest smuggling bust of the contraband in two decades, Hong Kong customs said on Thursday.
The haul of 69 million cigarettes, hidden in seven cargo containers, was discovered on board a barge berthed at the Yau Ma Tei cargo handling area on Wednesday last week.
One of the containers was packed with two British brands of cigarettes, L&B and Benson & Hedges, with a UK health warning, while another container was filled with the Japanese-made Seven Stars.
Acting Assistant Superintendent Leung Chun-man of customs’ revenue crimes investigation bureau on Thursday said the two containers of illicit cigarettes were destined for Britain and Japan.
He said part of the haul was to replenish the stock in the city and the rest was waiting for delivery instructions while illegal tobacco traders were trying to find buyers in Hong Kong and abroad.
“It is the second biggest seizure of illegal tobacco products discovered since our records began in 2002,” Leung said.
Their biggest single seizure of black market cigarettes was made in July last year when they confiscated HK$222 million worth of contraband.
He said the investigation to trace the source and route of the untaxed cigarettes was still under way and further arrests were possible.
If the contraband had been legally imported, he said, it would have generated HK$130 million in tax revenue.
After the investigation, the woman, who was found aboard the vessel and arrested, was released unconditionally.
Figures from the Customs and Excise Department show they confiscated 732 million black market cigarettes worth HK$2.01 billion last year – the biggest annual haul since records began two decades ago.
They seized 427 million contraband cigarettes worth HK$1.17 billion in 2021 and 205 million tobacco products worth HK$563 million the year before.
The seizure of HK$190 million worth of tobacco products last week was part of a customs operation to combat illegal cigarette activities, which ran from January 3 to 17.
At the storage, distribution and peddling level, customs officers arrested 49 people and seized HK$5.3 million worth of contraband cigarettes in 48 cases during the two-week operation, code-named “Thunder”.
As the city’s coronavirus restrictions eased last month, the investigation suggested tobacco dealers increased their peddling activities mainly in public housing estates across the city.
Leung said illicit cigarettes were usually sold in markets, car parks and lift lobbies of public housing blocks.
In Hong Kong, a pack of 20 cigarettes sells for HK$50 to HK$60, whereas illegal ones can go for HK$15.
The 49 suspects, aged between 16 and 82, included buyers and sellers of illegal tobacco products. Three of them were teenage schoolboys. The department said all the cases had been duly followed up.
He also reminded the public that buying or selling illicit cigarettes was in breach of the Dutiable Commodities Ordinance and carried a maximum penalty of two years in jail and a HK$1 million fine.
Customs officers also raided and shut down three storage centres for the contraband and impounded two vehicles used to deliver illicit cigarettes.
“With the Lunar New Year around the corner, customs will continue to step up enforcement to vigorously combat illicit cigarettes through risk assessment, intelligence analysis and interception at source before and during the holiday,” Leung said.
