It was the honour of this Department to have Mr. Chau Tak-hay, who just took over his office as Secretary for Trade and Industry on 31 March 98, as the Inspecting Officer at the passing-out parade at the Customs & Excise Training School on 4 April 1998.

In his address at the passing-out parade, Mr. Chau encouraged our officers to serve Hong Kong people and contribute to the Special Administrative Region Government by performing duties with diligence, honesty, integrity, persistence and imagination without fear or favour. He appealed to our officers to uphold our fine reputation and continue to play an active role in maintaining Hong Kong's integrity as an international financial and trading centre. He expressed also his appreciation to the painstaking efforts of the department in protecting intellectual property rights.

In the closing remarks, he emphasized that there was a need for everyone of us to know more about every aspect of China - her culture, history, geography and even the way of life and thinking of our Mainland compatriots. All of us needed to strengthen our sense of national identity so that we might be better equipped to implement faithfully the policy of 'one country, two systems'.

On that day a total of 71 probationary Inspectors and 139 probationary Customs Officers graduated from the Training School.

The 1st Legislative Council Election

The 1st Legislative Council (LegCo) election will be held on 24 May 1998. The coming LegCo election is a historic event as this is the first LegCo election since the establishment of the HKSAR. The Editorial Board would like to appeal to all registered voters of the department to cast your vote on the polling day and elect your representatives to the Legislative Council.

The Commissioner's Meeting

"The understanding and support of Policy Secretaries are essential and important to the modernization and development of the Department," said the Commissioner at the Commissioner's Meeting on 13 February 1998. "Equally important is the devotion and commitment of staff at all levels to the modernization plan."

The Commissioner had two meetings in October 97 and February 98 respectively with the three Policy Secretaries, namely the Secretary for Trade & Industry, the Secretary for Security and the Secretary for the Treasury during which the functions of the Department, the major tasks in individual programme areas, the allocation of staff and financial resources to individual programme areas, and the future development and significant issues of the Department were discussed.

At the Commissioner's Meeting on 13 February 98, the Commissioner also referred to the redistribution of duties and responsibilities of the Deputy Commissioner and the three Assistant Commissioners introduced on 19 December 1996 and said that following the successful implementation of the redistribution of business at the level of Assistant Commissioners, there was a need to further strengthen the realisation of the demarcation of functional and housekeeping responsibilities at the level of Commands and Bureaux.

"The objectives of the redistribution of business are to achieve greater accountability and fair distribution of work amongst the Directorates and Heads of Major Formations," said the Commissioner. "The ultimate goal is to improve the performance of the Department."

He thanked members for their commitment and devotion to the work of the Department, especially during this time when the Department was facing increasing challenges and rapid expansion.

"To prepare for the challenges in the years ahead, the Department is undergoing a process of modernisation and has already launched a number of projects. These include new computer systems, construction of the Kwai Chung Customhouse, additional customs launches, new installations for customs at the new airport at Chek Lap Kok and planning for a customs headquarters building," said the Commissioner. "The successful implementation of these modernisation initiatives and new projects have to rely on the commitment and devotion to work of staff at all levels."

WCO Training Seminar

Between 5 and 10 March 1998, the World Customs Organization (WCO) and the Hong Kong Customs and Excise Department co-organized a WCO Training Seminar on Control of Precursor Chemicals for the Asia and Pacific Region in Hong Kong. The Seminar was partially funded by the Japanese Customs Administration.

A total of 39 government officials from 18 countries/territories participated in the event. Participants consisted of Customs and officials from other competent authorities, such as police and drug regulatory/enforcement agencies. Also in attendance were 9 officers from the Hong Kong Customs.Assisted by 2 officials from WCO, Ms Lina Papamichalopoulou and Mr Will Robinson, Superintendent LAI Chun-kong of Hong Kong Customs chaired the seminar. There were also 2 officers from the ICPO/INTERPOL, 1 from the US Drug Enforcement Administration, 1 from the United Nations/International Narcotics Control Board and 3 from Hong Kong Customs who formed a team of 9 experts to give presentations on specific subjects in relation to the work and experience on control of precursor chemicals.

The seminar aimed at raising awareness of chemicals control, improving the multilateral chemical reporting initiative as well as promoting co-operation at national and international levels.

Participants actively participated in discussions and exchange of views. The event was successfully concluded.

Cocktail Reception for Overseas Customs Officials

A cocktail reception was held at the Customs and Excise Service Senior Officers' Mess on 17 March 1998 to welcome Mr Douglas Tweddle, Director, Compliance and Facilitation Directorate, World Customs Organization, and to bid farewell to Mr Oh Tae-young, Korean Customs attaché in Hong Kong. Senior officers of the department, overseas Customs attachés and US Drug Enforcement Administration officials attended the function. Commissioner Lawrence Li presented souvenir beer mugs to Mr Tweddle and Mr Oh during the reception.

Mr Tweddle was invited by the HKSAR Government to visit Hong Kong from 15-20 March 1998. Mr Oh had worked in Hong Kong for three years and already returned to Korean Customs on 27 March 1998 to assume the post of Senior Secretary to the Commissioner of Korea Customs Service. Mr Kim Chul-Soo is his successor.

In Hong Kong, there are currently Customs attachés from India, Indonesia, Japan, Korea, Thailand, the United Kingdom and the United States. Once every month, they take turns in hosting a Customs luncheon to foster better cooperation among them.

Progress of moving to the New Airport

Hong Kong's new airport at Chek Lap Kok has been recently named as 'Hong Kong International Airport' and it will commence operations on Monday, 6th July 1998. Monday has been chosen as the opening date because it is a day of the least air traffic in a week and on the preceding Sunday there should be favourable road traffic conditions to facilitate a large scale relocation exercise. On the other hand, the Airport Railway will be commissioned in late June 98 to tie in with the opening of the new airport.

At the new airport, we shall use various types of new systems to enhance our operational efficiency, which include Trunked Mobile Radio, Close Circuit Television, Airport Operational Database, Flight Information Display and Public Address Systems. All these systems are being installed and will be ready for testing and commissioning very soon.

Working together with the Information Technology Services Department, we are in the process of developing a 175 million dollar worth of new computer system, namely "Air Cargo Clearance System (ACCS)" to facilitate the development of air cargo industry. So far, the development and implementation of ACCS are on schedule. All programming work for phase I of the system has been successfully accomplished. The main computer installed at the Asia Airfreight Terminal has been continuously undergoing various tests to ensure its operational readiness for the airport opening.

In order to cope with the anticipated increase in operational activities and the implementation of 24-hour flight operations, we have secured an approved establishment of 1,052 posts at the new airport, i.e. an increase of 507 posts against the current establishment of 545 posts at Kai Tak Airport. The creation of these additional posts will significantly strengthen our enforcement capability at the new airport and provide ample promotion opportunities for our officers in various grades.

As part of the Departmental Airport Operational Readiness Plan, the Airport Project Planning Division has started to organize familiarization and training programmes since March 98. Apart from receiving an in-house briefing session on the new airport project, officers currently working at the Airport Command (APC) and Airport Investigation Division (AID) also participate in a two-day visit programme which covers all Customs offices and other major facilities at the new airport. We aim at providing this familiarization programme to all officers currently working at Kai Tak Airport and those who will be posted to APC and AID before July 98. On the other hand, the training programme on ACCS has been running very smoothly. As at the end of March 98, about 60% of the total work force in the Air Cargo Research Division and Air Cargo Division have successfully completed the training course on ACCS.

In close cooperation with the Airport Authority, Civil Aviation Department, New Airport Project Coordination Office and other parties concerned, we have formulated a comprehensive relocation programme which will be incorporated into the Airport Authority's master mobilization and movement plan. The first three phases will start at 60 days, 30 days and 7 days respectively prior to the airport opening. The fourth phase is the overnight removal on 5 July 98, which will be the most critical part of the relocation plan. The fifth phase will fall within 30 days after the new airport opening.

With the assistance of the Government Supplies Department, removal contracts have recently been awarded for the removal of all C&ED's furniture and equipment to the new airport as well as the subsequent disposal of those discarded items at Kai Tak Airport.

Certainly, the opening of the new Hong Kong International Airport on 6 July 98 will be a great event for the whole community of Hong Kong. We are committed to contributing our utmost efforts to the success of the event.

(Chief Superintendent Lawrence S P Wong)

Allocation of Funds and Distribution of Manpower Resources for Financial Year 1998-99

In the draft Estimates for the financial year 1998-99, an appropriation of $1,750.1m, an 18% increase over last financial year, has been allocated to the Department.

As for the distribution of manpower resources, the establishment ceiling of non-directorate posts for the Department in 1998-99 will be increased from an estimated 4,793 posts at 31 March 1998 to 5,323 at 31 March 1999, representing a net increase of 530 posts. In addition to the nine directorate posts, the estimated total establishment will be 5,332 posts by the end of 31 March 1999.

The new posts created will be deployed to five programme areas to enable the Department to cope with the substantial increase in demands at the new airport and the new River Trade Terminal Tuen Mun (458 posts), and to step up enforcement actions under various ordinances relating to intellectual property rights (49 posts), trade controls (35 posts) and dutiable commodities (5 posts).

These 530 posts are:

Civil Service Charity Walk

The first HKSAR Civil Service Charity Walk, held on Sunday 15 March 1998, was attended by over 12,000 civil servants across the civil service. Money raised in this event will benefit 140 welfare agencies through the Community Chest.

The 7.5-kilometer walk, which started at the Shatin Park Main Plaza, was officiated by the Chief Executive Mr Tung Chee Hwa.

The Acting Commissioner, Mr Raymond Li and 277 officers of the Department and their families participated in the walk with $66,000 raised.

(Sports & Recreation Club)

"Put Them Into Hot Water At Wharton"

"There are no good or bad scenarios: only good or bad strategies."

"Don't try to solve a problem within the area in which the problem occurred. It is easier to find a solution in the area with interacting relations."

"Companies and people are like tea bags - you don't know what colour they are until you put them into hot water."

"Before I invest capital in that business, you must make me believe that we have a competitive advantage. We know how to use it in order to earn more than the cost of capital, and create sustained economic value."

"Never accept that something cannot be done. Always ask if there is a better way or if someone might have a better idea."

"Communication is not what is being said-it is what is being listened to."

"Fixing the individual parts of a system does not improve the whole."

"Without changing our patterns of thought, we will not be able to solve the problems we created with our current patterns of thought."

These are but some of the insights of the professors who taught in the Advanced Management Program (AMP) of the Wharton School of the University of Pennsylvania, USA which I attended in February 1998. With the class meeting six days a week from 8 a.m. to 4.30 p.m., followed by supplementary sessions running until 6 p.m. and individual and group preparations arranged in the evenings, the Wharton AMP was certainly an intense and demanding programme.

Without doubt, however, it was the most stimulating educational experience I have had in many years.

As a five-week programme for senior line or functional executives, the Wharton AMP focused on global business competition, critical thinking and leadership. In addition to increasing their depth of knowledge in key functional areas, participants examined their personal thought processes, explored how they were viewed by others and developed a new understanding of group behaviour and leadership.

Early in the programme, participants received the results of an assessment profile which characterized how they were viewed in a variety of situations by their superiors, peers and subordinates. This information formed a basis on which group dynamics, the role of leaders and conflict management issues were examined and discussed. Unique to the programme was the degree to which paradoxical, non-traditional thinking was introduced and explored. The human dimension component used material from the arts and sciences to underscore the effects of personal and cultural biases in interpreting data and formulating decisions.

The composition of the staff and class was another factor contributing to the uniqueness of the programme. To expose participants to a broad set of ideas and approaches, over 30 faculty members from Wharton and other business schools, from the sciences and industry, and often with differing views, were used. Meanwhile, there were in the class 45 participants, of diverse professions and cultures, from 20 countries/territories throughout the world. In my own learning group of 8, we got one participant each from Australia, Argentina, Italy, Puerto Rico, Taiwan, USA, UK and Hong Kong. It was in such cross-cultural surroundings that members of the class pursued and explored individual and collective issues, problems, concepts, etc. through collaborative studying in an atmosphere of mutual trust, openness and respect that was not easily found in other settings.

It was indeed a first-rate, challenging and yet rewarding experience in going through this 5-week programme. Some of the learnings could certainly be applied in bringing about positive changes to the work of the Department and to my career. I would recommend it to those colleagues who see the need to face the challenge.

(Principle Trade Controls Officer Andrew C W Wong)

Visit of Provisional Legislative Councillors

On 14.2.1998 morning, five Provisional Legislative Councillors led by the Honourable Mrs. Selina CHOW, JP visited the Department. Guests were briefed by the Commissioner and the senior management about the organization and functions of the Department. The Councillors later toured the Customs Drug Investigation Bureau, the Intellectual Property Investigation Bureau, the Prosecution, Intelligence & Investigation Bureau and the Museum. They were particularly impressed by the seizures and photographs display which depicted the efforts and achievements of the department in various areas.

Family Gala Day

The Family Gala Day 1998, organized by the Customs & Excise Department Sports & Recreation Club, was held on Sunday 22 February 1998 at the Customs & Excise Training School (Perowne Barracks). It provided officers of all ranks of the Department and their families the opportunity to relax, to foster relationship, to cultivate a sense of belonging and, more essentially, to extend care and friendship to each other.

The Ship Search & Cargo Command Lion Dance Team was invited to perform the traditional lion dance to mark the opening ceremony, which was officiated by the Commissioner, Mr Li Shu-fai Lawrence after inspecting a squad of Honour Guard at the Training School. The Police Band staged a live music performance throughout the event. Over 2,000 participants attended the Gala including the young and the old, serving officers and those who have retired, families and guests.

Games of every sort were offered to participants by Major Formations, each of which mobilized its staff to man a games stall and have it decorated in the best possible way they could as they were all vying for the Best Games Stall Design Competition. The title eventually went to the Control Points Command after an unanimous decision by a team of honoured judges.

The whole event drew to a close in the evening as the sun retreated. Sounds of applause, joyfulness and laughter began to subside with the departure of participants. Some of them were reluctant to leave, apparently still brooding on how they could have slipped the chance to get a prize in the games. Despite the time of happiness was short, the spirit lingered on. It is hoped that similar event will be organized again in the not too distant future.

(Sports & Recreation Club)

The 6th Customs Regional Football Tournament

Football teams from five customs administrations, namely China (Guangdong Branch), Hong Kong, Japan, Macau and Thailand took part in the 6th Customs Regional Football Tournament, held in Hong Kong from 3 to 7 March 1998.

All matches were held at Shamshuipo Sports Ground, which was thronged with team officials, players, guests, Customs attachés, Consuls and officers of the Department. The Thai Customs team won the title after an up-hill battle against its long-time rival China (Guangdong), which was slipped to the second place after holding the championship for four consecutive years since 1994. The Macau team was the second runner-up, followed by the Hong Kong team on the fourth place and the Japan team the fifth.

A farewell dinner was hosted on 7.3.98 for all participating teams at the Pearl of the Orient Nightclub Floating Restaurant. All participants enjoyed thoroughly of the gathering.

(Sports & Recreation Club)

Study Visit to Heathrow Airport from 9.2.98 to 21.3.98

My 6-week study visit to London Heathrow began on a fine morning of February 98. After one and half hour's underground journey from London to Heathrow, I met my Coordinator Ron Trevaskis, the surveyor (Superintendent) of the London Airport Collection (LAC) Intelligence Division, at Terminal 2.

There are over 600 HM Customs officers working at Heathrow which has an average of 400 daily flights and an annual passenger through-put of about 45 million. Work of HM Customs at the airport was mainly divided into 4 areas, namely Intelligence Collection, Anti-smuggling, Passenger Service and Cargo Clearance. Narcotic-drugs seizures and under declaration of imported goods are the common cases handled everyday as LAC seized ? 101M worth of drugs and recovered ? 14M worth of import under payment in 1996/1997. Information technology and intelligence supports enables LAC to implement risk assessment striking a sound balance between enforcement and facilitation.

I went through the 4 areas of work with detailed explanations given by the LAC officers. Their hospitality and the generosity in sharing their work experiences with me despite their busy schedules was really commendable. I was treated like a family-member of the LAC.

I have now brought home what I have seen, heard and observed and I hope I would be able to apply them to good use in helping to run our new airport.

Finally, I wish to take this opportunity to thank everyone, both in Hong Kong and the United Kingdom, for making my trip so successful.

(Senior Superintendent Ronald Y L Au)

Intellectual Property Tights Training Seminar

Superintendent Chow Wing-keung and Senior Inspector Suen Kwok-cheung of the Intellectual Property Investigation Bureau were invited to attend an Intellectual Property Rights (IPR) Training Seminar organized by the Customs General Administration of China in Shenzhen on 16-19 March 1998 and provide contribution on IPR protection in Hong Kong.

Forty-four Customs officials and government intellectual property protection personnel from over 25 different localities of China attended the Seminar. They received briefings from the copyright industry on a number of technical topics which included the operation of optical disc production machinery, the manufacturing process of compact discs and stampers, and ways to identify pirated copies of visual and musical CDs and CD-ROMs.

The Seminar also covered enforcement aspects. Superintendent Chow briefed participants on the IPR protection regime in Hong Kong, its governing legislation, and the operational aspects of copyright protection enforcement, such as how the IPIB worked in the fight against piracy, and what copyright owners should do to cooperate with Customs for successful prosecution.

Participants reacted positively to the presentations and expressed keen interest in Hong Kong Customs' contributions to protect intellectual property rights. They also exchanged ideas and experiences on IPR protection.

Personnel News

Promotion

9 officers were promoted to the rank of Senior Trade Controls Officer on 9 February 98.

66 officers were promoted to the rank of Senior Customs Officer on 13 March 98.

5 officers were promoted to the rank of Superintendent on 17 March 98. They were Messrs Chow Wing-keung, Wong Ching-lim, Leung Chi-chiu, Ko Chi-lok, and Ip Che-wo.

Congratulations!

New Staff

13 recruits joined the Department as Assistant Trade Controls Officers in April 98.

71 Inspectors and 139 Customs Officers in 12 classes graduated from the Customs and Excise Training School on 4 April 98. The best recruits were Probationary Inspectors Ng Chun-wah, Lam Hing-kui, Hui Chi-wai, Wong Yung-wai, Probationary Customs Officers Yeung King-shing, Chu Wing-kin, Yip Hang-kin, Ng Yuk-lan, Chan Siu-kwan, Chow Hop-wah, Tang Lai-ching and Yuen Kwong-ming.

Retirement

The following officers retired during January - March 1998:

Senior Inspector Tang Chiu-yuen

Chief Customs Officer Pang Wing-cheung

Senior Customs Officer Ngan Kwan-shing (6513)

Sham Yiu-tong (7334)

Customs Officer Chan Yau-lin (Ms) (7099)

Senior Training Officer Wong Ka-hong

Complaints Statistics

The Department has a clear vision on serving the community with efficiency and courtesy, while embracing the values of professionalism, justice, accountability and integrity. Our public complaints handling system, which aims at redressing the public grievances, is one of the mechanisms to keep the Department open and accountable to the public.

In 1997, we have initiated a number of reforms. They included the review of our public complaints handling procedures and re-structuring of the Complaints Investigation Unit with a view to enhancing the capability and efficiency in the handling and investigation of public complaints. We have set up clear and well-defined detailed procedures and guidelines in handling complaints and provided sufficient channels for members of the public to redress their grievances concerning the Department.

In 1997, which was the same as that of 1996, a total of 77 complaints were received and investigated. Among them, we have only 5 cases found to be substantiated which included the complaint against the Hong Kong Permit Office, Hong Kong Collection Office, Kowloon Collection Office, Trading Standards Investigation Bureau and Customs and Excise Training School respectively. The majority of the complainants was satisfied with the findings of investigation into these complaints which were mostly related to the conduct and behaviour of members of the Department. Major formations which have frequent contacts with members of the public are likely to receive more complaints. Pie charts showing the statistics of nature and distribution of complaints are at Figure 1 and 2.

In spite of the low substantiation rate of the complaints, there is no reason for complacency. We shall continue to focus our attention on promoting impartial and speedy handling of public complaints. We treasure the value of each complaint as it gives us an opportunity to review our working procedures and monitor the performance of our staff.

Customs Home Page

The Customs and Excise Department Home Page was launched on 24 December 1997. To enhance the Customs Home Page, a new version was launched on the departmental web site at "http://www.info.gov.hk/customs/" on 27 March 1998.

Several new topics have been added to enrich the Home Page's contents. They include "Excise Duty", "Licence and Permit Application", "Trade Declaration", "Notice Board", "Statistics" and "Related Web Sites". A Chinese version of the Customs Home Page is also made available for the Internet users to browse through. From now on, the public can send electronic mail to the department their enquiries and comments through the Home Page mailbox.

Customs International Executive Management Programme in Australia

Under the context of international co-operation, this year the Australian Customs Service organised the 10th Customs International Executive Management Programme from 16 Feb to 13 March 1998 in Canberra, Australia. I had the honour for being nominated to participate in the programme.

There were 14 participants from 14 Customs administrations of different regions and countries in the Pacific and Caribbean region. The programme was mainly run by a team of management and training consultants from the University of Canberra and co-ordinated by officers of the Australian Customs Service (ACS).

The theme of the programme was "Managing Customs into the 21st Century". Well before the commencement of the programme, the coordinator worked with participants for identifying critical issues confronting Customs. During the programme the professors and participants developed strategies for managing the issues and for managing self and staff through change processes.

There were two different but closely interrelated aspects in the programme. One was provided by the team from University of Canberra and involved the theoretical aspects of management and leadership. The other was provided by highly experienced managers from the ACS and involved the practical context for the theory.

After the management programme I spent two more days observing the passenger clearance process by the ACS in the Sydney International Airport. I found some of the management and law-enforcement practices and tactics may be applicable at HK airport for improving our service and performance.

(Superintendent Colin C W Ip)

APEC Sub-committee on Customs Procedures

In February 1998, Assistant Commissioner (Administration and Excise) Mr Michael Chik, and Mr Alex Liu, Acting Superintendent of the Office of Management Services attended an APEC meeting in Penang, Malaysia. This is the sixth year that Hong Kong Customs has been participating in this Asia-Pacific Forum.

There are several Committees, Sub-Committees, Working Groups and Task Forces in APEC. Hong Kong Customs has participated in the APEC Committee on Trade and Investment ("CTI") and Sub-Committee on Customs Procedures ("CCP") meetings since March 1993. Usually, there are 3 sessions of CTI and SCCP meetings in a year. The CTI and SCCP formulate, in parallel, collective action plans to achieve APEC objectives.

The SCCP has developed a customs action plan along five guiding principles * Facilitation, Accountability, Consistency, Transparency and Simplification to facilitate trade. The action plan consists of twelve items which need to be achieved by SCCP members within set time frames before the year 2000. The SCCP has also developed a Blueprint for Customs Modernization and a Tariff Database, and they are made publicly available on the Internet web sites respectively at http://www.sccp.org and http://www.apectariff.org.

During the last SCCP meeting in Canada, Hong Kong Customs distributed to each SCCP member a video introducing its practices on "Dissemination of Customs Information to the Public"as part of a technical assistance programme of one of the SCCP action items.

This year, the APEC hosting economy is Malaysia. The first session of APEC meetings (SOM, CTI and SCCP) was held in Penang in February. Next session of APEC meetings will be held in Kuching in June 1998.

Acting Senior Customs Officer Wong Ying-choi(7880) died on duty at Lok Ma Chau on the morning of April 12 while engaged in customs clearance on board a container truck. On 24 April 1998, a Service Funeral was arranged for him in which the Commissioner, officers of the Department and representatives from various government departments and organizations attended. He was later burried at the Galant Garden, a cemetery for civil servants who died on duty.

"Customs News" Editorial Board

Mr Li Wai-man, Raymond (Chairman)

Mr Wong Man-on

Mr Wong Shiu-ming, Simon

Mr Chu Chan-pui, Francis

Mr Wong Chun-kwong

Mr Sek Gon-sing

Mr Tiu Shui-pui, Peter

Mr Leung Shung-chi, Alex

Mr Chan Kai-hing (Secretary)

Welcome the following officers to join as Reporters:-

Mr. Lee Kwok-keung

Miss Shek Yuk-ying

Mr. Tang Chik-siu, Jack

Miss Lau Pui-shan, Shirley

Miss Pak Suet-yee

Mr. Wu Yan-kit, Parry

Ms. Ma Siu-fong, Gladys

Mr. Lau Bun, Terence

Miss Lee Suk-ting, Michelle

Miss Cheuk Yu-sing, Romy

Mr. Lee Chi-ming, Simon

Address:-

Office of Service Administration & Training

9/F Harbour Building

38 Pier Road, Central, Hong Kong

Tel: 2852 3373

Fax: 2815 3558