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Cigarette Smuggling

New smuggling operation proves easy case to crack

Wednesday, 14 August, 2013, 12:00am

News›Hong Kong

CRIME

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New smuggling op proves easy case to crack

Clifford Lo clifford.lo@scmp.com

Customs find 1.3m cigarettes inside fake water heaters after cheap material gives game away

Contraband cigarettes from the mainland have been found hidden in fake electric water heaters that look just like the real thing – complete with built-in electric socket, power switch and an energy-efficiency label stuck on the casing.

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Only the plastic casing gave the game away; they are usually made out of metal.

The new smuggling technique was uncovered by customs during a raid in Kwun Tong.

“It comes in a white, metre-tall shell. From its appearance, it looks like a real electric water heater,” said Walter Mak Hoi-wan, head of the Customs and Excise Department’s revenue and general investigation bureau.

“But the shell is made of plastic and is empty inside. It’s just a plastic container.”

Each container was used to hold 70 packs of cigarettes, Mak said.

The discovery was made on Monday, when officers raided an industrial unit that was used as a repackaging and distribution centre for illicit cigarettes.

Officers arrested two Hong Kong men, aged 29 and 45, and seized 1.3 million cigarettes with an estimated market value of HK$3.3 million.

Most of the cigarettes were found hidden in 69 of the fake water heaters. Another 26 fake heaters were at the site.

Lai Sau-ieng, deputy head of the bureau, said she believed recent enforcement action had led some syndicates to look for new concealment methods in an attempt to evade detection.

She said investigations showed the centre had been in operation for less than a week and the consignment was for local consumption.

The two Hongkongers were understood to have been hired to repack the cigarettes. They were held for questioning last night and had not been charged yet.

Customs seized 51 million contraband cigarettes worth HK$127.5 million in the first seven months of this year.

That compared with 36.8 million cigarettes worth HK$92 million found in the same period last year. The department attributed the increase to enhanced enforcement action against the sources of illicit cigarettes.



Spain seizes HK$22m of fake cigarettes from China

Published on South China Morning Post (http://www.scmp.com)

Home > Spain seizes HK$22m of fake cigarettes from China



Spain seizes HK$22m of fake cigarettes from China

Tuesday, 13 August, 2013, 10:41am

News›World

SPAIN

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The counterfeit Marlboro cigarettes were destined for France, authorities believed. Photo: AFP

Agence France-Presse in Madrid

Police in Spain have seized 465,000 packs of fake cigarettes worth more than 2.2 million euros (HK$22.6 million) smuggled by boat from China, the interior ministry said on Monday.

The seizure in Valencia led to 10 arrests, the ministry added.

Police believe the counterfeit Marlboro cigarettes were destined for France as the text on the packets was in French, the ministry said in a statement.

Two Spaniards and eight Polish nationals were arrested in the operation.

The cigarettes arrived in Valencia last month on a ship from the port of Chiwan, just north of Hong Kong.



Links:
[1] http://www.scmp.com/news/hong-kong/article/1295971/customs-seizes-5m-cigarettes-smuggled-mainland-china

Seven held as customs bust cigs racket

A multimillion-dollar cross-border illicit cigarette smuggling racket has been smashed and seven men arrested.

Monday, August 12, 2013

A multimillion-dollar cross-border illicit cigarette smuggling racket has been smashed and seven men arrested.

Customs officers seized five million sticks of illicit cigarettes with a market value of HK$12 million and a duty potential of HK$8 million.

Five were arrested in Sha Tin last Wednesday while unloading the cigarettes, and the other two separately at Man Kam To Control Point on Friday.

“The cigarettes were concealed in the center of cartons that were packed with electronic goods,” Investigation Bureau deputy head Catherine Lai Sau- ieng said yesterday.

Anti-illicit-cigarette investigation division commander Wan Hing-chuen added: “The way they distribute illicit cigarettes has changed from selling on the streets to telephone orders, and the main distribution areas are East Kowloon and the northwest part of Hong Kong, due to the large number of public housing estates.”

Officers also seized 5,000 counterfeit mobile phones and 400 tablet computers with a value of about HK$5.2 million.

“This is a very rare case of mixing illicit cigarettes and electronic products,” Wan said. “We suspect that the syndicates combined their smuggling activities for the sake of convenience.”

The electronic goods were for transhipment to Third World countries.

Wan believes customs dismantled a major smuggling syndicate with the seizure of the largest volume of illicit cigarettes in the past three years. CLEO TSE

Customs seizes 5m cigarettes smuggled from mainland China

Monday, 12 August, 2013, 12:00am

News›Hong Kong

CUSTOMS

Department believes smuggling syndicate smashed after cross-boundary operation

About 5 million illicit cigarettes were seized by the Customs and Excise Department in a one-week special operation to combat the smuggling of cigarettes from the mainland to Hong Kong through a cross-boundary logistics network.

The total market value of the cigarettes alone in the three seizures was about HK$12 million with a duty potential of about HK$8 million. However, in one of the seizures the department also netted 5,000 counterfeit mobile phones and 400 tablet computers that were together worth HK$2.2 million.

Customs believes that a major cigarette-smuggling syndicate has been dismantled, with the seizure of the largest volume of illicit cigarettes in three years.

Seven Hong Kong men aged between 38 and 55 were arrested, one of whom was allegedly a core member of the syndicate.

Lai Sau-ieng, deputy head of the revenue and general investigation bureau of the customs department, said the syndicate had tried to conceal the cigarettes in a hollow stack of paper cartons.

“The cartons were stacked together and were put at the innermost part of the truck.

“After we opened them, we could see that the illicit cigarettes were placed inside the hollow cartons,” she said.

The cigarettes would have been conveyed to designated points for speedy distribution to various buyers in Hong Kong, she added.

Customs last Wednesday intercepted a cross-boundary container truck unloading goods at a factory building in Sha Tin. About 2.4 million illicit cigarettes were seized from the truck and five men were arrested.

With information revealed from the first case, two cross-boundary trucks declared to contain assorted goods were intercepted at Man Kam To Control Point at two different times on Friday, and about 2.6 million illicit cigarettes were seized. On board one of the trucks, a large batch of suspected counterfeit mobile phones and tablet computers were also found. The two male truck drivers were arrested.

So far this year customs has cracked 18 big smuggling attempts involving at least 500,000 cigarettes in each case. There were 17 such cases all of last year.

The maximum penalty for smuggling is a fine of HK$2 million and imprisonment for seven years, while anyone involved in dealing with, possessing, selling or buying illicit cigarettes can be punished with a fine of HK$1 million and a two-year jail term.



Links:
[1] http://www.scmp.com/news/hong-kong/article/1273359/customs-bolsters-seizures-142pc
[2] http://www.scmp.com/news/hong-kong/article/1277485/empty-truck-yields-113m-illegal-cigarettes
[3] http://www.scmp.com/news/hong-kong/article/1268867/illicit-tobacco-trade-sparks-call-joint-response-police-customs
[4] http://www.scmp.com/news/hong-kong/article/1227041/customs-seize-hk24-million-worth-counterfeit-cigarettes-and-tobacco

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Customs bolsters seizures by 142pc

2 Jul 2013

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‘Empty’ truck yields 1.13m illegal cigarettes

8 Jul 2013

Illicit tobacco trade sparks call for joint response by police, customs

26 Jun 2013

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Customs seize HK$24 million worth of counterfeit cigarettes and tobacco

1 May 2013

Customs seizes five million sticks of illicit cigarettes

http://7thspace.com/headlines/442825/customs_seizes_five_million_sticks_of_illicit_cigarettes.html

Customs seizes five million sticks of illicit cigarettes

Hong Kong (HKSAR) – Hong Kong Customs mounted a one-week special operation against cross-boundary smuggling of illicit cigarettes by a targeted syndicate and smashed three cases in the action. A total of about five million sticks of illicit cigarettes were seized and the total market value was about $12 million with a duty potential of about $8 million. In the operation, seven men aged between 38 and 55 were arrested and three cross-boundary vehicles used for conveying the illicit cigarettes were detained.

A batch of counterfeit mobile phones and tablet computers were also seized.

After conducting a series of in-depth investigations, Customs found that the targeted illicit cigarettes syndicate smuggled cigarettes into Hong Kong by cross-boundary trucks. The cigarettes were then conveyed to designated points for speedy distribution to various buyers in the territory. After comprehensive intelligence analysis and thorough investigation, Customs took action on August 7 and intercepted a cross-boundary container truck unloading goods at a factory building in Sha Tin.

About 2.4 million sticks of illicit cigarettes were seized from the container truck and five men were arrested.

With information revealed from the first case, Customs identified further targets for action. Two cross-boundary trucks declared to contain assorted goods were intercepted at Man Kam To Control Point on August 9 and about 2.6 million sticks of illicit cigarettes were seized. Onboard one of the trucks, a large batch of suspected counterfeit mobile phones and tablet computers were also found.

The two male truck drivers were arrested.

Customs believed that a major illicit cigarette smuggling syndicate has been dismantled, with seizure of the largest volume of illicit cigarettes in the past three years. Customs officers found that the syndicate tried to conceal illicit cigarettes in a hollow stack of carton paper boxes, a concealment method detected by Customs before. Meanwhile, this was also the first time that significant quantities of counterfeit electronic goods were found to have been smuggled together with illicit cigarettes in order to increase profit.

The Deputy Head of the Revenue and General Investigation Bureau, Ms Lai Sau-ieng, said at a press conference today (August 11), “The operation showed the effectiveness of our enforcement strategy, especially the stepped-up enforcement actions at source.

Customs will continue to undertake stringent enforcement against illicit cigarettes activities for protection of government revenue.”

Under the Import and Export Ordinance, smuggling is a serious offence. The maximum penalty is a fine of $2 million and imprisonment for seven years.

Under the Dutiable Commodities Ordinance, anyone involved in dealing with, possession of, selling or buying illicit cigarettes commits an offence. The maximum penalty is a fine of $1 million and imprisonment for two years.

Members of the public are urged to report suspected illicit cigarette activities by calling the Customs’ 24-hour hotline 2545 6182.

Source: HKSAR Government

Tobacco lobby’s counterfeit argument – Letters – The Scotsman

http://www.scotsman.com/news/opinion/letters/tobacco-lobby-s-counterfeit
-argument-1-3039194

Tobacco lobby’s counterfeit argument

Published on the09  August 2013  19:52

THE Tobacco Retailers -Alliance (TRA) is promoting a disturbing story of
one in ten corner shops at risk of closing due to sales lost to -illegal
tobacco (your report, 8 August).

Yet this dramatic claim quickly falls apart under the briefest
examination.

After a long and loud campaign telling their members that counterfeit
tobacco is damaging local shops, the TRA asked shopkeepers whether they
thought their shop was at risk of closing due to counterfeit and
smuggled tobacco.

We are not told how those involved made sure of an unbiased sample or
whether they just relied on their existing friends and contacts.

Of those who responded, 92 were from Scotland.

So the dramatic “one in ten” headline is based on nine individuals
across Scotland giving their personal opinion.

Why would the TRA make so much of such flimsy evidence, and then use it
to argue against the level of tax on cigarettes?

Why would its spokesperson claim that tobacco smuggling “continues to
worsen” when the figures from Her Majesty’s Revenue and Customs actually
show the illegal market has been declining for -at least a decade?

Perhaps the answer is that the Tobacco Retailers Alliance is paid for by
British American Tobacco, Imperial Tobacco and Japan Tobacco, three of
the world’s largest tobacco companies.

Funnily enough, a quick glance at the group’s website makes it perfectly
clear that the TRA’s primary role is to argue against the regulation of
tobacco. If only the tobacco companies felt able to come forward and
argue their own case, rather than hide behind front groups, then we
might at least be able to have a more honest debate.

Sheila Duffy

Chief Executive

Action on Smoking and Health (Ash) Scotland

Frederick Street

Edinburgh

PHILIP MORRIS INTERNATIONAL INC.’s NINTH ANNUAL CERTIFICATION OF COMPLIANCE

Download (PDF, 6.39MB)

Ratification of illicit trade pact nears halfway mark

http://www.tobaccojournal.com/Ratification_of_illicit_trade_pact_nears_halfway_mark.51806.0.html

Ratification of illicit trade pact nears halfway mark

19 Jun 2013. Ratification of the World Health Organisation’s protocol to combat illicit tobacco trade neared the halfway mark on 18 June when Qatar became the 19th country to sign the pact, according to the Framework Convention on Tobacco Control (FCTC).

Forty countries must sign the protocol agreed to at last year’s FCTC general session in Seoul, Korea, for it to become international law. The protocol will remain open for signature until 9 Jan, 2014. Countries that have signed the protocol include China, France, Turkey, the Republic of Korea and South Africa

Customs swoops on illicit cigarette smuggling case in Lok Ma Chau

http://7thspace.com/headlines/438887/customs_swoops_on_illicit_cigarette_smuggling_case_in_lok_ma_chau.html

Hong Kong (HKSAR) – Hong Kong Customs swooped on an illicit cigarette smuggling case at Lok Ma Chau Control Point and seized about 1 million sticks of duty-not-paid cigarettes on board a cross-boundary lorry today (June 3).The total value of the cigarettes was about $2.5 million with a duty potential of about $1.7 million.In the operation, one 42-year-old male driver was arrested and the lorry used in the smuggling of illicit cigarettes was seized.

At about 9am, Customs officers at Lok Ma Chau Control Point intercepted a cross-boundary lorry declared to have 450 boxes of furniture, plastics and glassware on board.After X-ray examination and thorough inspection by Customs officers, about 1 million sticks of illicit cigarettes were found in 83 carton boxes, mix-loaded with other goods and concealed in the rear of the lorry.

Hong Kong Customs will continue to carry out stringent enforcement action against the smuggling of illicit cigarettes at boundary control points to protect government revenue.

Under the Import and Export Ordinance, smuggling is a serious offence. The maximum penalty is a fine of $2 million and imprisonment for seven years.

Members of the public are urged to report suspected illicit cigarette activities by calling the Customs’ 24-hour hotline 2545 6182.

Source: HKSAR Government

Customs seizes illicit cigarettes and tobacco from transshipment container

http://7thspace.com/headlines/436827/customs_seizes_illicit_cigarettes_and_tobacco_from_transshipment_container.html

Customs seizes illicit cigarettes and tobacco from transshipment container

Hong Kong (HKSAR) – Hong Kong Customs yesterday (April 29) smashed a transshipment smuggling case at Kwai Chung Customshouse Cargo Examination Compound, resulting in the seizure of about 9.3 million sticks of illicit cigarettes and 90 kilogrammes of illicit tobacco. The total value of the seizure was about $24 million,with a duty potential of about $16 million.

Customs intelligence analysis has revealed that some smuggling syndicates deliberately make use of the transnational sea network to smuggle illicit cigarettes and tobacco by means of the “merry-go-round” mode. The contraband is transshipped through different ports before being smuggled to the final destination in order to evade Customs detection.

Through exchange of intelligence with the related overseas law enforcement agencies and in-depth investigation, Customs identified and selected a 40-foot transshipment container from Malaysia which was declared as containing “toilet paper”, for examination.

Upon inspection, a total of 9.3 million sticks of illicit cigarettes and 90 kilogrammes of illicit tobacco were found. According to the packing of the seized cigarettes and tobacco, it is believed they were destined for Australia.

The unmanifested cigarettes and tobacco were seized and the responsible local shipping agent was invited for assistance in the investigation. Customs will also conduct a follow-up investigation with the related overseas law enforcement agencies.

The Divisional Commander (Anti-Illicit-Cigarette Investigation) of the Revenue and General Investigation Bureau, Mr Wan Hing-chuen, said today (April 30) at a press conference, “Hong Kong Customs will spare no effort in closely monitoring illicit cigarette and tobacco smuggling activities using the transnational sea network and exchange intelligence with overseas law enforcement agencies to trace and track smuggling activities.”

Under the Import and Export Ordinance, smuggling is a serious offence. The maximum penalty is a fine of $2 million and imprisonment for seven years.

Members of the public are urged to report suspected illicit cigarette activities by calling the Customs 24-hour hotline on 2545 6182 2545 6182 FREE

Source: HKSAR Government