The Chief Secretary for Administration, Mrs Anson Chan, officiated at the opening of the Kwai Chung Customhouse on January 12, 2001. Over 350 senior government officials, members of the Legislative Council, administrators of leading shipping companies and terminal operators, consulate staff, dignitaries and members of the Department attended the ceremony.

In her address at the opening ceremony, Mrs Chan praised the Customs for its important role in the remarkable achievement of the Hong Kong shipping industry and the economic development of the territory. She also complimented members of the Department for their efforts in combating smuggling activities and promoting trade facilitation.

Also speaking at the ceremony, Commissioner John C Tsang said that with the opening of the 10-storey Customhouse, the Department would be able to centralise its facilities and manpower resources to upgrade the capacity of cargo clearance so as to cope with the continuous growth in containerised cargo throughput.

"We shall take Kwai Chung Customhouse as our new base and strive for maintaining Hong Kong's status as the busiest and one of the most efficient container ports in the world, through co-operation with the industry, and with the aid of advance technology and a streamlined customs clearance procedure," the Commissioner added.

After unveiling the memorable plaque, Mrs Chan, accompanied by the Commissioner and other senior officers, toured the facilities at the Customhouse, including the dog kennel and the arms cage of the Ship Search and Cargo Command. She was impressed by the facilities and equipment that reinforced our enforcement capabilities, especially in curbing human smuggling activities.

The opening of the Customhouse has laid a milestone in the history of the Department towards its modernisation.

Ship Search and Cargo Command

Customs Motto: Commitment and Excellence

The Service Administration Group held a Departmental Motto Competition in January 2001. The aim of the competition was to devise a plain and concise slogan to promote public awareness of Customs mission and enhance the image of the Department.

A total of 65 staff members of different grades had participated in the competition, with 232 Chinese and 83 English entries. The assessment panel, chaired by the Deputy Commissioner, had selected and "Commitment and Excellence"as the winning Chinese and English motto.

The winning motto will be printed on stickers and posted up prominently on departmental vehicles and launches to publicise the Department's mission.

The first prize winner is Senior Inspector Chan Wai-chiu whereas the second prize winner is Inspector Chan Kam-hung.

Office of Service Administration and Training

International Customs Day 2001

The celebration for the International Customs Day 2001 was held at the Senior Officers' Mess on January 29, 2001.

This year, we had the honour of having the Secretary for Commerce and Industry, Mr Chau Tak Hay, to be the principal guest.

More than 350 guests, including Legislative Council members, senior government officials, Consuls-General, local dignitaries, foreign Customs attachés, and Customs Representatives from the Mainland and Macao attended the reception.

World Customs Organisation Group

Commissioner attends WCO Policy Commission Session

Commissioner John C Tsang, in the capacity of the World Customs Organisation (WCO) Vice-Chairman for the Asia Pacific Region, attended the 44th Session of the Policy Commission of the WCO in Baku, Azerbaijan between December 5 and 8, 2000. A total of 47 participants, including the Chairman, the Vice-Chairmen, 15 member administrations and three observers, had attended the Session.

The Policy Commission discussed many customs policies and strategic issues. The most prominent one was the "Restructuring of the WCO". The Commissioner presented a regional paper on "Enhancing the Strategic Capacity of the WCO". The presentation was well received and all participants agreed that there should be a comprehensive review of the structure of the various WCO's Committees by means of an ad hoc working group.

The Policy Commission also:

	reviewed the Customs Working Environment Scan exercise and identified means and measures to improve future exercises;
	re-affirmed the importance of the Customs Reform and Modernisation Programme and endorsed the recommendations of the WCO Secretariat in gearing the Programme;
	acknowledged the urgent need in developing an effective and coherent Customs response to address the challenges brought about by the e-commerce;
	acknowledged the need for the WCO to reflect positively the Customs?contribution in the fight against corruption and urged all Director-Generals to ensure Customs participation in their national delegations in the Second Global Forum on Fighting Corruption; and
	accepted the proposed Programme Budget for Financial Year 2001/2002, and the hosting criteria for members and the arrangements of meeting dates for future mid-term Policy Commission sessions.

After the Policy Commission Session in Baku, the delegation paid an official visit to the Iranian Customs Administration in Tehran between December 10 and 12, 2000.

World Customs Organisation Group

Japan commends Hong Kong Customs

Hong Kong Customs was commended by Japan Customs for its efforts exerted on a number of joint investigations into drug trafficking groups smuggling heroin and amphetamines substances into Japan.

The commendation was received by Assistant Commissioner David Tong who attended the Japan Customs Day on November 28, 2000 in Tokyo.

At the event, Mr Tong met with investigators of the Japan Customs and other law enforcement agencies in discussing narcotics intelligence exchange and further co-operation. He also visited the Regional Intelligence Liaison Office of the Asia and the Pacific Region situated in Tokyo Customs House.

Senior Inspector Leung Sai-kwong was also awarded a commendation for his contribution on intelligence analysis exchange and coordination work in field operations with the Japan Customs.

Information Unit

HK and EC hold Co-operation Committee Meeting

An eight-member delegation of the European Commission, led by Mr Alfred Komaz, Director of the Directorate-General XXI - Taxation and Customs Union, European Commission visited Hong Kong Customs and attended the Second Meeting of the Joint Customs Co-operation Committee between November 21 and 23, 2000.

The Joint Committee was established under the "Agreement between the European Community and Hong Kong, China on co-operation and mutual administrative assistance in customs matters". The Joint Committee is to oversee the proper functioning of the Agreement which entered into force on June 1, 1999.

The meeting was chaired by Assistant Commissioner Lawrence Wong. The Hong Kong delegation also included Head of Trade Controls Wong Ching-wai, Senior Superintendent Wong Man-on, Senior Superintendent Chow Oi-tung and Senior Government Counsel Ms Caroline Lee. During the meeting, both parties reviewed the extent of co-operation and discussed the exchange of information, protection of intellectual property rights, computerisation of customs procedures, provision of technical assistance as well as implementation of international conventions.

The European Community delegation praised the work of Hong Kong Customs, particularly on intellectual property rights protection and the assistance given to the Member States of the European Community in the fight against various customs frauds. The delegation also toured Customs facilities at the land boundary and the Hong Kong International Airport.

The meeting concluded on November 23 with constructive and fruitful results. At the conclusion of the meeting, both parties recognised that the meeting and the visits had enhanced the co-operation and understanding between the European Community and Hong Kong.

Customs Liaison Group

HK and Korea hold Co-operation Conference

Hong Kong Customs has established a long history of co-operation with the Korea Customs Service. Since 1980, bilateral meeting has been hosted alternatively by the two administrations every year. A five-member delegation of Korea Customs Service, headed by Mr Kim Ho-shik, Commissioner of Korea Customs Service, visited Hong Kong and attended the 21st Customs Co-operation Conference between November 13 and 15, 2000.

During the meeting, both administrations shared their experiences in various aspects, ranging from organisational, operational, legislative, strategic to technological developments. The meeting concluded with the affirmation from both administrations to further enhance mutual co-operation in the areas of intelligence exchange and training. The next meeting will be held in Korea in 2001.

Customs Intelligence and Liaison Bureau

Customs conducts Root and Branch Review

The Department commissioned the Management Services Agency, with the support of its consultant, KPMG Consulting, to conduct a study for the Department in May 2000. It is aimed at realising an organisation structure that will allow better target resources to meet more aptly the Department's changing priorities and demands.

The review was completed in late 2000 with findings directing to appropriate re-focusing of some of our business process re-engineering efforts, flexible re-deployment of our staffing resources and strategical improvement of our intelligence, IT and human resources support functions.

	more flexible deployment of financial resources through "One-line Vote" financial arrangement;
	clearer service delivery accountability and more delegation of operational authority by establishing a single "Memorandum of Understanding" with the four Policy Bureaux;
	a progressive transformation towards "Intelligence-based, risk management centred" mode of operation;
	continuing the use of special task forces for strategic and flexible enforcement;
	review of legislation;
	enhancement of Training and Development; and
	business process re-engineering opportunities in areas of airside operation, ship search and trade controls to open up opportunities for redeploying existing resources to areas with more acute need.

Success requires staff support

For such a fundamental review to bring about positive changes to the Department, we need to go through a lengthy process with concerted efforts from all parties concerned. In particular, the successful implementation of the various recommendations requires staff support at all levels. That was why intensive staff consultation started as early as the study commenced in May 2000.

Apart from keeping Heads of Formations informed of the progress throughout the study and fully consulting officers concerned on the recommendations affecting their areas of work, we had discussed with staff representatives and listened to their views on the initial findings. Altogether we had organised two consultation seminars with all staff associations and members of the Departmental Consultative Committee (DCC). Staff members' views were reported for reference when the Project Steering Group, chaired by the Commissioner with representatives from our four policy bureaux, scrutinised the recommendations in late November 2000. Thereafter the staff associations and DCC members were briefed on the Review findings and recommendations as well as the departmental strategy of implementation. On January 13, 2001, some 160 colleagues attended the Departmental Seminar to learn more about the Review.

In the coming years, we are going to implement phase by phase the various Review recommendations which we believe will contribute towards transforming and sustaining the Hong Kong Customs as a progressive and forward-looking Department capable of standing up to unprecedented challenges in a rapidly changing environment.

Customs Civil Secretariat

Commissioner holds year-end review

"The Customs and Excise Department had again attained tremendous success in its law enforcement, trade facilitation and transnational Customs co-operation work last year," Commissioner John C Tsang said during the year-end press conference to review the work of the Department in 2000.

The Commissioner also outlined the Department's achievements in other aspects of Customs work, including cargo clearance, consumer protection and anti-illegal textiles transshipment. He commended all staff members for their contributions in achieving another fruitful year.

Information Unit

CS presents awards to Customs

The Chief Secretary for Administration, Mrs Anson Chan, presented the Fight Crime Committee's "Outstanding Performance Award for the Crime Fighting Staff" to five Customs teams and one Customs officer at the Hong Kong Convention and Exhibition Centre on December 2, 2000.

The Special Task Force, the Diesel Oil Enforcement Division, the General Investigation Division, the Informer Recruitment Unit and the Air Mail Unit were awarded the Team Award in recognition of their devotion and ability in the deterrence of crime, effective protection of Government revenue and significant contribution to the community.

Senior Inspector Fong Wing-kai was awarded the Individual Award for his excellent performance displayed in a two-and-a-half year investigation leading to the eradication of a drug syndicate.

3,000 people attend IPR seminar

In view of the comparatively wide implications of the Intellectual Property (Miscellaneous Amendments) Ordinance 2000, the Customs, the Intellectual Property Department (IPD) and the Business Software Alliance (BSA) have co-hosted a series of seminars in November 2000 to brief the trading sector on the provisions of the new law and their implications on companies and organisations using pirated software.

Over 3 000 representatives of companies and associations attended the seminars. The opening of the seminar on November 23 was officiated by Commissioner John C Tsang, Director of Intellectual Property Mr Stephen Selby, and Vice President of BSA Mr Tom Robertson.

Addressing the opening ceremony, the Commissioner pleaded for the active involvement and co-operation of the industrial and business sector in the protection of intellectual property rights.

The Amendment Ordinance, gazetted on July 7, 2000, will come into operation on April 1, 2001. It not only stipulates that the act of bringing video recording equipment into places of public entertainment without authorisation constitutes a criminal offence, but also clarifies the provisions contained in the Copyright Ordinance that it is a criminal offence for any person to use knowingly any infringing copies in the course of his trade or business.

Intellectual Property Investigation Bureau

Computer Forensic Seminar

A five-day Computer Forensic Seminar, jointly organised by the Hong Kong Customs and the US Customs Service, was held between November 27 and December 1,2000.

The course, designed as a continuation of the Cyber Investigation Seminar held six months ago, aimed at further developing the skills of Customs investigators to net the cyber criminals. It provided the participants with the essential information on computer forensics and collection of digital evidence at the scene of crime.

The seminar was conducted by three cyber investigation experts from the US Cyber Smuggling Centre of the US Customs Service. They are Senior Special Agents Mr James Thomas, Mr Paul Laymen and Mr Mark Klemm.

A total of 55 participants, including Customs officers, officers from the Police, the Independent Commission Against Corruption and the Intellectual Property Department attended the seminar.

Intellectual Property Investigation Bureau

Computer Forensic Laboratory

As part of our effort in combating computer crimes in Hong Kong, the Department has established a Computer Forensic Laboratory (CFL) under the Office of Information Technology (OIT) in October 2000. The CFL aimed at providing forensic services and technical support to investigation officers regarding the collection, recovery, examination and analysis of digital evidence, which may reside in computer exhibits or other seized electronic storage media.

The CFL is equipped with an array of specialised computer forensic hardware and software equipment, which is crucial to the successful collection and analysis of digital evidence. Currently, the CFL has four computer forensic examiners including two Senior Inspectors, one Inspector and one Senior Trade Controls Officer. The examiners would retrieve and examine all the digital evidence, prepare the corresponding computer forensic examination reports, and provide expert testimonies in court to assist frontline officers in investigating and prosecuting computer crime cases.

Since the opening of the CFL in October 2000, officers of the Intellectual Property Investigation Bureau have delivered six sets of computer exhibit involving in two Internet piracy cases to the laboratory for forensic examination. With the vigorous enforcement actions of the frontline officers and the formation of the CFL, the Department stands ready to deal with customs offences in the cyberspace.

Office of Information Technology

Strategic Intelligence and Analysis Training

A total of 74 officers attended a training package on "Strategic Intelligence and Analysis" organised by the Customs Intelligence and Liaison Bureau from November to December in 2000. The package included two 10-day courses for frontline officers and two one-day seminars for supervisory grade officers.

The aim of the programme was to provide professional training in strategic intelligence theory and applications to both practitioners and supervisors of the Department. The Intelligence Study Centre (ISC) of Australia was engaged to run the training programme. The Chief Executive Officer of ISC Mr Don McDowell, an expert in intelligence study, designed and led the training programme.

Intelligence Collection Division
Customs Intelligence and Liaison Bureau

Pilot Scheme of the Open Bond System

In order to assess the practicability of the Open Bond System and prepare for the basis of legislative amendments, a pilot scheme has been launched on one General Bonded Warehouse, two Public Bonded Warehouses and two Licensed Warehouses from January 1, 2001 for six months until June 30, 2001.

A temporary unit - the Excise Compliance and Audit Unit - has been created under the Office of Dutiable Commodities Administration. It consists of one Senior Inspector, two Inspectors, five Chief Customs Officers, one Customs Officer, one Clerical Assistant and one motor driver. These officers are responsible for performing audit and stock checks on the five warehouses during the pilot scheme.

Should everything go smoothly, the Open Bond System will come into operation in June 2002.

Office of Dutiable Commodities Administration

Anti-piracy Reward Scheme renews

Assistant Commissioner Vincent Poon and representatives of nine major copyright organisations signed the agreement for renewal of the Anti-piracy Reward Scheme 2001 on December 14, 2000.

The Reward Scheme for 2001, operated since 1998, has been renewed with a contribution of $608,000 from nine contributors: the International Federation of the Phonographic Industry, Motion Picture Association, Hong Kong Motion Picture Industry, Business Software Alliance, Interactive Digital Software Association, Software Publishers Association, Optical Disc Manufacturers Association, Sony and Philips.

Intellectual Property Investigation Bureau

Anti-Illicit-Cigarette Reward Scheme renews

Assistant Commissioner Simon Wong and the Chairman of the Tobacco Institute of Hong Kong, Mr Albert Chan, renewed the agreement on the Anti-Illicit-Cigarette Informer Reward Scheme for another year on January 10, 2001. The Scheme aims at encouraging reports from the public on illicit cigarettes activities.

The Anti-Illicit-Cigarette Informer Reward Scheme has proved to be very effective in assisting Anti-Illicit-Cigarette Task Force officers to combat the importing and local distribution of illicit cigarettes and heightening public awareness on the offences involving smuggling, selling and buying of illicit cigarettes.

Anti-Illicit-Cigarette Task Force

ACCS wins Productivity Achievement Award

The Air Cargo Clearance System (ACCS) won the Meritorious Award in the Productivity Achievement Awards Scheme organised by the Efficiency Unit in April 2000. A total of 75 entries from 33 departments and bureaux took part in the competition.

The ACCS, at a development cost of $175 million, provides a proper balance between trade facilitation and effective control. In terms of facilitation, it enables pre-arrival clearance of air cargo through speedy transfer of consignment data and Customs clearance instructions between air cargo operators and the Customs.

Airport Command

Gift of life in the Millennium

In November 2000, a Senior Inspector of the Marine and Land Enforcement Command saved the life of a little girl whom he has never met. This officer has bravely donated 850cc of his bone marrow to a six-year-old blood cancer patient.

This Officer of the Department has no hesitation in giving his helping hand when he spared a thought for the little girl who is suffering and struggling for life. In reality, there is usually an adverse perception about bone marrow donation. As a bone marrow donor, this officer wishes to share his unforgettable experience with us.

Painless operation

"I was admitted to Prince of Wales Hospital one day before the operation for the final tests of my physical state. In the early morning of the second day, I was sent to an operation theater. In a painless operation, two doctors punctured my loins by using large syringes and extracted marrow from my pelvic bone.

The pain was much beyond my expectation. The internal wounds caused radiating pain. Not only did I get a low back pain and fatigue thighs, I also suffered from the pressing pain at the spiral and around the wounds. Fortunately, it was not persistent with the aid of painkillers.

Swimming after one week

On the third day, I could leave the ward for strolling. Three days after the operation, I could undergo light exercise. After one week, I could do some swimming but definitely not in butterfly style. The internal wounds occasionally caused some dull and crushing pain.

I resumed my normal life and work after two weeks. There was so far no adverse effect on my health, besides the pain was bearable. In comparison with the patient's constant pain, it is nothing at all!" the officer said.

This officer remains anonymous because of the restriction bound by the donor regulations. However, his impartial, meaningful and courageous act has been well supported by every one of us.

Marine Enforcement Division
Marine and Land Enforcement Command

My life in Tokyo

A "Hello" to all of my Customs colleagues in Hong Kong! I have returned from working in the Regional Intelligence Liaison Office (RILO) in Tokyo.

My experience in Japan is a very mixed feeling: there were difficult moments, but certainly there were even more happy times!

I worked as an Intelligence Analyst in RILO. My job was to analyse raw data and information received from various sources regarding the contravention of Customs offences and process them into useful materials for dissemination to the Customs Administrations in the Asia Pacific Region as well as to other related organisations all over the world. I had also been involved in conducting training courses and participating in international conferences.

During my first few months in RILO, the weather was chilly. Guess what time I could leave my office? It was after 9pm every night. Maybe working long hours is a Japanese culture. It is very difficult in the beginning to cope with this "Office culture" but very quickly I was able to adapt to it. So, when I left the office at 9 pm, I had to say "I'm sorry, I have to leave early".

My secondment in Japan was an unforgettable experience in my life. Not to mention the immense knowledge I gained in intelligence work, it has offered me some golden opportunities to work with people of different culture, to establish connection with other customs counterparts, and most important, to build up valuable friendship with many of them.

Senior Inspector Leung Sai-kwong

Macao Customs Chief visits HK

The Commissioner of Macao Marine Police and Customs, Mr Choi Lai Hang, and Assistant Commissioner, Mr Ng Kuok Heng, visited the Hong Kong Customs on December 7, 2000.

They were briefed on the Department's development and the implementation of the Electronic Data Interchange (EDI) Trade Declaration System.

Trade Controls Administration and Training Division

The voice of new Passive-Alert Dog handler

Dog is man's loyal companion. At home, it is a lovely pet. At work, it is a reliable partner. As dog possesses acute olfactory nerves which enable it to discriminate minute smell of different substances, the Customs has recently made use of this characteristic in the passenger-screening work to enhance enforcement actions against drug-related crimes and I am glad to join the Narcotics Dog Unit in July 2000.

"Merry", a Passive-Alert Dog (PAD) I am now working with is different from traditional drug-detecting dogs which are primarily trained to examine luggage and will scratch and bite any objects emitting drug scents. "Merry" is trained to target on people. She follows the target quietly and sits in front of the suspect to block his way. She will also point at him with her nose and repeat the process as required by the dog handler.

It is a challenging job for me to handle a PAD. Not only do I have to pay close attention to the dog and the surroundings, I also have to make quick decision and alert the scouting team of the suspect. When "Merry" gets close to the public, people may be feared because they have no knowledge on the work of a PAD.

Being a PAD team, both "Merry" and I would strive to curb the smuggling of drugs into and out of Hong Kong.

Customs Officer Nancy Ng Shuk-fong
Narcotics Dog Unit

A small team with special duties

The Customs and Excise Department is a law enforcement body. One of its missions is to protect and facilitate legitimate trade and industry and to uphold Hong Kong's trading integrity. To achieve the mission, a team is set up to perform duties that have no relation to law enforcement. Yet, it still works closely together with their counterparts in the Department - it is the Trade Complaints Unit (TCU) under the Trade Controls Branch.

The TCU offers mediation service to trade disputes between overseas traders or tourists and local companies or shops. It deals with cases from people all over the world, particularly those from the Mainland and Taiwan. Their complaints are about unfair trading practices and unequal bargain. Occasionally, some fraud cases and infringements are detected and referred to other Government departments concerned.

In most cases, lack of communication, misunderstanding and lack of trust between both parties are the causes of trade complaints. With our mediation, most cases end up in a "win-win situation". Those local companies or shops involved are co-operative in making settlement, and hence contributing to the success of our mediation.

We are committed to solving trade disputes with an all-out effort.

Trade Complaints Unit
Trading Standards Investigation Bureau

Customs Launches make historical visit to Macao

A 51-member delegation, headed by Commissioner John C Tsang, laid another milestone in the history of Hong Kong Customs on November 18, 2000 when two Customs Launches paid historical visit to Macao and attended the last Macao Marine Police and Customs Day.

After the two hours' journey, we arrived Macao. Being escorted by the Macao Marine Police and Customs launches, Hong Kong Customs Launches No. 8 "Sea Reliance" and No. 6 "Sea Glory" slowly entered the Maritime Museum Pier and started the visit. The Commissioner was greeted by the Commissioner of Macao Marine Police and Customs, Mr Choi Lai Hang, and was invited to take salute from the Guards of Honour. The delegates then attended the celebrating ceremony, which was officiated by the Chief Executive of Macao Special Administrative Region, Mr Edmund Ho Hau Wah.

After the ceremony, Mr Ho, Mr Choi and other Macao senior officials took the opportunity to visit our newly commissioned Launch No. 8. They were impressed by the advanced equipment installed on the launch, particularly the third Generation Thermal Image Surveillance System, the Electronic Narcotic and Explosive Detector and the Inflatable Launch System.

Marine and Land Enforcement Command

Customs News Editorial Team

Mr Richard Law Chi-ming (Editor)
Mr Ben Leung Lun-cheung
Mr Cheung Kun-wan
Mr Peter Tiu Shui-pui
Ms Natalie Chan
Miss Bess Chow (Secretary)

Address:
Information Unit
Room 512B, Harbour Building,
38 Pier Road, Central, Hong Kong
Tel: 2852 3227
Fax: 2850 7569