The following is the statement of the Commissioner of Customs and Excise, Mr Richard Yuen, at the department¡¦s year-end press conference 2007 today (February 1):

The Customs and Excise Department¡¦s responsibilities include anti-smuggling, prevention of drug trafficking, protection of revenue from duty on dutiable commodities and intellectual property rights, and consumer protection.

The following is a summary of the overall situation of these cases last year.

Smuggling
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The Department detected 172 cases of smuggling in 2007, a decrease of 15.7% compared with the year before. Goods seized valued a total of $435 million and 352 persons were arrested. Among these cases, 82 involved smuggling through land boundary while 90 were carried out at sea.

The most common types of goods smuggled out of Hong Kong (mainly into the Mainland of China) are high-end and high-value consumer products such as computer accessories, electronic products, electrical appliances, precious metals like silver and nickel, and consumer items including leather, fur, ginseng and dried seafood, vehicle accessories, etc.

Items smuggled into Hong Kong (mostly from the Mainland) are usually cigarettes, counterfeit and infringing articles.

Anti-Narcotics
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In respect of anti-drug trafficking, the Department detected a total of 695 cases in 2007, an increase of 9% over the year before, and arrested 627 persons, including smashing 5 drug storage/distribution centres and 3 cannabis in-door plantations. Seizures included heroin, cannabis, cocaine, methylamphetamine (ice), ecstasy, ketamine (K Chai). While the amount of cannabis, cocaine and ice seized was higher than 2006, the amount of ketamine, ecstasy and heroin seized was on the decline.

A case worth mentioning is in July last year, the Hong Kong Customs detected and intercepted the biggest ever transnational cocaine trafficking case in Hong Kong history. A total of 160 kilograms of cocaine with an estimated value of $110 million was found concealed inside the secret compartments of the wooden pallets in several incoming containers from Panama and 7 persons were arrested.

Dutiable Commodities
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On offences involving dutiable commodities, 6 052 incoming passengers were found contravening the Dutiable Commodities Ordinance with a seizure of 2.16 million sticks of excessive duty-free cigarettes (decreased by 23% compared with the year before) and 535 litres of excessive duty-free liquor (a drop of 35%).

In respect of illicit cigarettes, the Department dealt with 1 810 cases of illicit cigarette smuggling, storage and distribution and street-level illicit cigarette peddling in 2007. The figure represents a decline of 41% compared to the previous year. A total of 1 437 persons were arrested with over 109 million sticks of cigarettes seized, of which about 40% were found to be counterfeit cigarettes. There has also been a 34% decrease in the number of public complaints relating to such cases received by the Department.

In the same year, the Department effected a total of 1 235 cases concerning illicit fuel, a decrease of 3% over the year before. A total of 841 persons were arrested and 950 000 litres of illicit fuel valued at $7.17 million was seized. The duty potential of the confiscated fuel is estimated at $3.56 million. The number of related public complaints concerning the sale of illicit fuel has also decreased by 15%.

Intellectual Property Rights Protection
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In 2007, the Department handled a total of 9 200 copyright infringement cases, an increase of 1% over the previous year. 4.3 million pirated optical discs were seized and 1 225 persons arrested. The seized articles were valued at $116 million in total.

What is worth mentioning is since the Department launched a ¡§Lineament Monitoring System¡¨ in March 2007 to conduct round-the-clock monitoring of online BT infringement activities, no new cases of infringement activities in Hong Kong using BT technology have been detected.

The Department established two ¡§Anti-Internet Piracy Teams¡¨ in 2000 and 2004 respectively, which so far have detected a total of 27 internet infringement cases.

In general, we estimate that the number of shops still engaging in the sale of pirated optical discs has reduced to about 30 and they are mainly concentrated in certain shopping centres with heavy flow of passengers. These remaining shops are our main targets of enforcement at present.

The Department detected a total of 970 counterfeit goods cases last year, a decrease of 2% over the previous year. Altogether 4.86 million pieces of counterfeit products were seized with a total value estimated at $174.5 million, and 763 persons were arrested.

Consumer Protection
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On consumer protection, last year the Department handled 1 161 cases concerning the safety of consumer goods and suspected contravention of the Ordinances on consumer protection. The figure represents a small increase of 1.1% compared with the year before. These cases were mostly related to unsafe cosmetic, personal care and household products or consumers who suspected that they were cheated on the weight and/or measurement of the goods they purchased.

A case worth mentioning is the Department, with a view to crack down improper sales practices targeting at Mainland tourists, prosecuted a jewellery shop for selling goods with false trade descriptions last April. As a result, the shop was fined $100,000 and the director sentenced to 6 months¡¦ imprisonment by the court. The total value of goods confiscated amounted to over $1.3 million.

The overall situation of smuggling, drug trafficking and intellectual property rights infringement cases remained under control and showed no sign of deterioration last year. Looking forward, the Department will continue to clamp down on these illegal activities and at the same time step up enforcement measures in those areas which are of particular public concern.

Food Smuggling
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To ensure the safety of food in Hong Kong and protect public health, we will work closely with relevant departments, including the Food and Environmental Hygiene Department and Agriculture, Fisheries and Conservation Department, to detect and prevent food smuggling of all kinds. An inter-departmental task force has been set up recently to co-ordinate inter-departmental efforts and enhance communication with industries, with a view to further enhancing the effectiveness of enforcement action against food smuggling activities.

Intellectual Property Rights Protection
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We have noticed a rising trend of people using the internet to market and sell IPR infringement articles. In 2007, we detected 27 such cases which is 50% more than a year before (18 cases in 2006). We are monitoring the situation closely and have stepped up surveillance and enforcement action. We will work closely with the auction website operators to identify effective measures to curb such activities. Separately, we will carry out more raids against shops and hawker stalls selling or attempting to sell counterfeit goods during festivals, such as the coming Lunar New Year.

Anti-Narcotics
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Although statistics show some decrease in the overall number of drug addicts, there has been an upward trend of youth engaging in drug abuse. The Department will contribute to and support the work of the Task Force on Youth Drug Abuse led by the Secretary for Justice by stepping up measures against cross-boundary drug trafficking and drug abuse especially by the youths. We have increased random inspections of cross-boundary vehicles, especially cross-boundary coaches, and will carry out more joint operations with the Shenzhen Customs to provide a stronger deterrence against youths engaging in cross boundary drug abuse.

Fight against Illicit Fuel Activities
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We are keeping a close watch on the possible impact of rising international oil price on the smuggling of illicit fuel oil from the Mainland. Although we have not so far detected any worsening trend, we have already stepped up patrolling and enforcement action against the usual black spots of such activities. These illicit activities involve not only an evasion of tax but also considerable fire hazards. To enhance the deterrence effect, we will target our operation not only at the vendors but also car owners and drivers who buy illicit fuel. We will work with the Fire Services Department and apply to the court for a closure order to close those premises which committed repeated offence, especially those vehicle repairing workshops engaging in the sale of illicit fuel.

Consumer Protection
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The incidents of Mainland tourists deceived by the unscrupulous jewellery and electronic product shops happened last year have seriously affected the image of Hong Kong. To prevent the recurrence of such problems, we have stepped up inspection and enforcement and we are looking forward to the passing of the Trade Descriptions (Amendment) Bill later this year, which will provide the Customs with more convenience and facilitation in taking prosecution action against the offenders, especially those involving making false or misleading representations on the specifications of electronic products and short weighting of seafood and dried seafood. We have plans to redeploy more manpower to deal with such cases and carry out more frequent patrol and inspection once the new law comes into effect. We hope to take the opportunity to stamp out the unscrupulous shops and protect the interests of only tourists but also local shoppers.

The Commissioner of Customs and Excise, Mr Richard Yuen, reviews the work of the Customs and Excise Department in 2007.

The Commissioner of Customs and Excise, Mr Richard Yuen (right), reviews the work of the Customs and Excise Department in 2007 at the year-end press conference. Also attending the press conference is the Deputy Commissioner of Customs and Excise, Mr Lawrence Wong.

Ends/Friday, February 1, 2008