Hong Kong Customs recently mounted an operation codenamed "Cutflow" to combat illicit cigarette smuggling activities and dismantled a transnational illicit cigarette smuggling syndicate. During the operation, Customs seized a total of about 49 million suspected illicit cigarettes from 20 containers, with an estimated market value of about $220 million and a duty potential of about $162 million, and arrested two men.
      
     Through risk assessment and intelligence analysis, Customs on March 28 selected and inspected a 40-foot container, arriving from Singapore to Hong Kong and declared as carrying tumbler mug, at the Kwai Chung Customhouse Cargo Examination Compound. Upon inspection, Customs officers found about 4.7 million suspected illicit cigarettes in the container.
      
     After a follow-up investigation, Customs officers on the same day seized about 8.2 million suspected illicit cigarettes, believed to have come from two containers, inside a logistic warehouse in Yuen Long and arrested two men who came to pick up the goods.
      
     Subsequently, Customs further seized large batches of illicit cigarettes in 17 containers arriving from Singapore within a month. 
      
     Investigations revealed that the illicit cigarettes were originated from different Southeast Asian countries, and some of the brands were uncommon in Hong Kong. It is not ruled out that part of the illicit cigarettes would be transshipped overseas.
      
     Investigations of the cases are ongoing. Customs will continue to trace the source and flow of the illicit cigarettes. The likelihood of further arrests is not ruled out.
      
     The outcomes of the operation fully illustrate Customs' enforcement effectiveness in intercepting illicit cigarettes at the source. Customs will continue its risk assessment and intelligence analysis for interception at the source, as well as through its multipronged enforcement strategy targeting storage, distribution and peddling, to spare no effort in combating illicit cigarette activities.
      
     Customs stresses that smuggling is a serious offence. Under the Import and Export Ordinance, any person found guilty of importing or exporting unmanifested cargo is liable to a maximum fine of $2 million and imprisonment for seven years upon conviction. Moreover, under the Dutiable Commodities Ordinance, anyone involved in dealing with, possession of, selling or buying illicit cigarettes commits an offence. The maximum penalty upon conviction is a fine of $1 million and imprisonment for two years.
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     Members of the public may report any suspected illicit cigarette activities to Customs' 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

Ends/Wednesday, May 7, 2025
Issued at HKT 16:18

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