I am delighted to join you as a member of the Customs and Excise Department, a disciplinary service which is renowned for its professionalism and integrity. Since I took up the post on March 6, I have been going out to visit the major formations to see for myself the work and operation of the Department. I have also been meeting individually with supervisory level officers in the Department and with Staff Union representatives. It will take some time to complete the first cycle but the interaction has been useful and constructive. In the months ahead, I shall continue with this programme with a view to meeting all of you and learning more about your work.

The Customs and Excise Department is facing a great deal of unprecedented challenges in a rapidly changing environment. We are under tremendous pressure to cope with a huge amount of work and to take proactive responses to calls to deal with a wide range of issues, from the suppression of drug trafficking, copyright piracy, and illegal smuggling of diesel oil and contraband cigarettes, to the upholding of the integrity of the textile export control and the strategic trade control systems. In the face of these challenges, your unfailing support is of paramount importance in sustaining our efforts on the successful enforcement of our work. This is critical to the integrity and well being of Hong Kong.

I am impressed with what I have seen so far, and I look forward to a happy working relationship with all of you.

Brief Introduction of the New Commissioner

Mr John Chun-wah Tsang, aged 48, joined the Administrative Service in November 1982. He served in a number of policy bureaux and departments, including the former City and New Territories Administration, Finance Branch, Office of the Commissioner for Securities and Futures, Economic Services Branch and Monetary Affairs Branch. From 1987 to 1992, he served as the Administrative Assistant to Sir Piers Jacobs, the then Financial Secretary. He was Assistant Director-General of Trade from 1992 to 1995 and Private Secretary to the last Governor, Mr Chris Patten, from 1995 to 1997. Mr Tsang took up the position of Director-General of the Hong Kong Economic and Trade Office in London in July 1997 and returned to Hong Kong to assume the post of Commissioner of Customs and Excise on March 6, 1999.

Mr Tsang received his high school and tertiary education in the USA. He attended Stuyvesant High School in New York City where he graduated in 1969. He went on to obtain a Bachelor of Science degree in architecture from Massachusetts Institute of Technology, a Master of Education degree from Boston State College and a Master of Public Administration degree from the John F Kennedy School of Harvard University.

Mr Tsang is married with two children.

Visit of Chief Executive Officer of Australian Customs
"The programme was comprehensive and very relevant to what we are trying to do here in Customs," Mr Lionel Woodward, Chief Executive Officer of Australian Customs Service, said in his letter to the Commissioner after his visit to Hong Kong in February.

Mr Woodward visited not only the Air Cargo Terminal, Lok Ma Chau Control Point and Customs and Excise Training School, but also various civil and private institutions including the Department of Justice, Trade and Industry Bureau, Security Bureau, Civil Service Bureau, Financial Services Bureau, Works Bureau, Central Policy Unit, Independent Commission Against Corruption, Intellectual Property Department, Information Services Department, Legislative Council Secretariat, Hong Kong General Chamber of Commerce and the Australian Chamber of Commerce. The schedule was very tight but fruitful.

In fact, the working relationship between Hong Kong Customs and Australian Customs Service has been close. Officials of both sides have often met and worked together at different international fora. Mr Woodward's visit has certainly helped promoting exchange of knowledge and experience of the two administrations.

Open Bond System
As at May 1999, there are three distilleries, eight general bonded warehouses, 13 public bonded warehouses and 21 licensed warehouses for liquors and tobacco in Hong Kong. They are controlled under a closed bond environment where Customs officers are stationed to supervise the movement of dutiable goods to protect revenue.

In October 1998, a working group was formed in this Department to study the feasibility on implementation of an Open Bond System. With this system, no Customs officer will be stationed and the Customs control is applied through documentary verification, random checking and post-auditing. This is a business re-engineering project which also aims to facilitate the trade.

In addition, a consultant firm has been appointed to conduct a research on international open bond experience, and to identify potential threats and the measures needed to address such threats.

It is hoped that after the recommendations proposed by the consultants, there will be a revamp to the existing Customs attendance at bonded warehouses and the Customs supervisory duties on handling dutiable goods.

Re-organisation of Prosecution, Intelligence and Investigation Bureau (PIIB)

With effect from March 1, the Prosecution, Intelligence and Investigation Bureau (PIIB) has been re-organised to form the Customs Intelligence and Liaison Bureau (CILB). The re-organisation does not create or delete any posts. It re-groups existing staff under different functions and re-distributes business amongst Formations to better utilise existing resources to meet the needs of the department through the rationalisation of departmental functions in the areas of international customs affairs, prosecution, anti-cigarette smuggling, specialist training and photographic support, and the enhancement of intelligence collection and analysis. In the re-organisation, Anti-Cigarette Smuggling Task Force is transferred to the Office of Dutiable Commodities Administration, the Specialist Training Division is transferred to the Office of Service Administration and Training and the Prosecution Group to the Office of Management Services. After the re-structuring, the CILB bears the main responsibility of processing intelligence and handling all international customs affairs, including the APEC issues and conclusion of bilateral agreements with other customs administrations.

Commissioner's visit to the Ship Search & Cargo Command

On April 28, the Commissioner visited the Ship Search & Cargo Command to see the work and operations of the Command. He met officers rummaging in the engine-room onboard the incoming vessel 'Cape Henry' at Western Anchorage; officers examining sea cargo at the Yau Ma Tei Public Cargo Working Area; officers examining containerised cargo at Kwai Chung Terminal and other logistic staff at the Command Headquarters.

The visit also included a lunch gathering which was attended by over 50 officers of the Command comprising different ranks and grades. The lunch gathering won the applause of the officers as it enabled them to communicate closely with the Commissioner.

Tin Hau Birthday Ceremony

The annual Tin Hau Birthday Celebration Ceremony organised by the Marine & Land Enforcement Command was held on April 27 at Tai Miu, Joss House Bay. Commissioner officiated at the worshipping ceremony and prayed for good health of Customs mariners during the coming year. More than 200 dignitary guests, directorates, senior officers and colleagues attended the celebration. Lion Dance Team of Sports & Recreation Club was invited to perform a lion dance for the ceremony. A cocktail reception was held afterwards and all participants enjoyed themselves at the ceremony.

Sports Day 1999

Sports Day 1999 was held with success on February 27. Over 300 participants, representing eight different Formations, participated in the competitions. The event was filled with excitement. At last, the overall championship went to Airport Command.

Apart from the sport events, there was also a Cheering-team Competition. The cheering team of Control Points Command was made up by piper and drummer, whose fabulous performance won the championship of the competition.

The events were concluded by a Fun Game, in which senior officers of our department matched with overseas Customs attachés on football-mastering skill, a game of high entertainment value.

In Sports Day 1999, I found that all of us really enjoyed the event, including staff competing in the games, spectators and working members. If sportsmanship also includes team cooperation, championship is not material, as everyone involved in Sports Day 1999 has won something more meaningful than a pendant or trophy.

Ng Shi-tuen Acting Senior Inspector

Expansion of Trainees's Accommodation Facilities at CETS

The C&E Training School (CETS) at Tai Lam Chung was first founded in 1974, it was meant to accommodate a maximum of 120 residential trainees at any one time. In order to meet the rapid expansion of the Department in recent years, the training capacity of CETS has increased by 80 to 200.

The conversion work started in August 1998, all departmental quarters inside the boundary of CETS were vacated gradually and all occupants were provided with replacement quarters outside CETS. The 15 quarters at Block C were converted into two classrooms, two common rooms and 11 dormitories. Each dormitory can accommodate four trainees. The seven quarters at Block B were converted into one library and six dormitories for Inspectors, each dormitory can accommodate six trainees. The quarters in Block A were converted into office for instructors. The original library at the Administration Block was converted into a new classroom.

With the assistance of the Architectural Services Department, the conversion work ran smoothly and met the opening of new classes in October 1998. We now have nine classrooms and sufficient training and boarding facilities to accommodate 200 trainees at any one time.

LEE Cheung-wing Assistant Superintendent

Opening of a new IPIB office at Kai Tak

On March 31 the former desserted Kai Tak Airport was full of joyful laughter again with good food and wine. Why is the buzzing? It is the housewarming of Intellectual Property Investigation Bureau (IPIB) to celebrate the inauguration of their new office there. C, DC, AC(C), the Deputy Secretary for Trade & Industry, Miss S H Cheung and other dignitaries of the government and copyright and trade mark industries also joined in the celebration.

The Kai Tak office is the third office of IPIB. It is located on the third floor of the Kai Tak Passenger Terminal Building, occupying a total floor area of 1,176 square metres. The total fitting-out costs amounted to over $4 million. Over 160 operational staff of the Copyright Investigation Division, Trade Descriptions Investigation Division and part of the Identification Unit moved from the Middle Road, Tsim Sha Tsui office to Kai Tak on April 8.

The new office provides a spacious and comfortable working environment for IPIB staff. Other than substantial working areas furnished with fashionable office furniture and equipment, there is also an elegantly furnished conference room with advanced audio-visual facilities, a briefing room with a seating capacity of 40 officers, a large Kwan Dei-cum- recreation room, as well as high security interview rooms and detention cells for case processing.

The Kai Tak office has been the result of long and painstaking negotiations with the Government Property Agency which commenced in early 1997 because of new staff creation as well as the Bureau's senior management's determination to improve officers' working environment. Following the completion of Phase l, Phase II of the IPIB's Kai Tak office which comprises another wing of 666 square metres will soon commence the fitting-out work and will house another 48 new staff of the Bureau in mid-1999.

Departmental Seminar on Civil Service Reform

A departmental seminar on Civil Service Reform was held at the Senior Officers' Mess on April 24. More than 150 departmental officers and representatives from six staff associations actively participated in the seminar.

Participants were briefed by the Customs Civil Secretary and Departmental Secretary on details of the reform covering areas on entry and exit, pay and conditions, conduct and discipline, performance management, training and development. The seminar provided a good opportunity for departmental officers to understand more about the reform and express their views.

Annual International Visitor Programme in U.S.

I had the honour for being invited to participate in the U.S. International Visitor Programme organised by the U.S. Information Agency's (USIA) Bureau of Education and Cultural Affairs from February 20 to March 20. The emphasis of the programme is to increase mutual understanding through communication at personal and professional levels.

I met more than 150 professionals and counterparts in the United States. I visited eight major cities including Washington DC, New York, Orlando, Miami, El Paso, San Francisco, Las Vegas and Los Angeles across the country.

The whole visiting programme provided precious chances for me to meet the key anti-narcotic bodies at different levels. It not only gave me an insight about the drug problems from another angle, but also a wider perspective in various strategies against the problem. We shared experience and information in drug detection techniques including profiling on passengers and cargo at airports, container ports and land border crossings. I also viewed various specialised equipment used in anti-narcotics operations. Our discussion and exchange of information on anti-narcotics activities enhanced the mutual understanding and cooperation between the Hong Kong and the U.S. administrations.

The trip was fruitful, I had a comprehensive overview of the strategy, policy, organisation and function of different law enforcement agencies. I was impressed by the huge resources used and the coordinated efforts in implementing the U.S. National Drug Control Strategy. Most importantly, I was able to promote the image of Hong Kong through informal discussion with American friends about HKSAR as a separate customs territory, one country two systems, and that Hong Kong was no longer a drug transiting centre.

Taking this opportunity, I would like to express my greatest gratitude to all who gave me the chance to participate in the visit and to all who made the programme successful.

William Ng Wai-ming
Head of Drug Investigation Group
Customs Drug Investigation Bureau

Specialised Training on Methampetamine and Precursor Chemical Control

Senior Inspectors Lam Ying-mou, Tsui Wong-bun, Wong Pak-tong, Lam Kam and Inspector Sou Chi-sing of Hong Kong Customs participated in an international training, first organised by the International Law Enforcement Academy (ILEA) in Bangkok, Thailand. The ILEA is a joint venture between the United States and Thai Government. Between March 8 and 19, a specialised course on Methampetamine and Precursor Chemical Control was conducted for 54 participants from different law enforcement agencies from Hong Kong, Indonesia, Laos, Malaysia, China, the Philippines, Singapore, Thailand and Vietnam. The course was conducted by experts from the United States Drug Enforcement Administration and the Thai Office of the Narcotics Control Board. It was aimed at providing the participants with an understanding of current approaches in dealing with precursor chemicals and clandestine laboratories.

Hong Kong Customs & Excise Department Retired Officers' Association

The Hong Kong Customs & Excise Department Retired Officers' Association was established in August 1998. Since then, 170 retired officers have joined the Association to express their full support to the Association. Meanwhile, the Association has received generous donations amounted to $150,000 from distinguished donors. With a good foundation, the Association has confidence to step forward in significant paces in the near future.

To enhance the communication between retired officers, the Association has organised two general meetings and two dinners for all members during the past eight months. In the meeting on March 15, the Association announced that Mr Lawrence S F Li, ex-Commissioner, had been elected as Honorary Life President of the Association and other distinguished donors as Honorary Presidents. After the meeting, all participating retired officers and guests spent a wonderful evening with lots of fun and chat.

On the other hand, Mr W L Lee, the Chairman of the Association, accompanied by other executive committee members, met the Commissioner Mr John C Tsang on March 18, and formally invited him to be the Honorary President of the Association. On April 29, the Association held a dinner reception for all Honorary Presidents. Officers of SS and above were also invited to attend the function.

Retired officers, who wish to become a member of the Hong Kong Customs & Excise Department Retired Officers' Association, may contact Mr W C Chui, the Secretary of the Association, via the Service Welfare Division at 2231 4370.

Personnel News

Meeting at Madrid, Spain

Superintendent K M Lau and Assistant Superintendent Sunny Ho of Controlled Chemical Group of Hong Kong Customs attended the Operational Meeting on Potassium Permanganate held in Madrid, Spain from February 2 to 5 and thereafter they paid a visit to the UN International Narcotics Control Board (INCB) in Vienna, Austria on February 8.

The Madrid meeting was instrumental to establishing improved cooperation at international level in accordance with Article 12 of the 1988 UN Convention for curtailing availability of precursor chemicals for illicit manufacture of narcotics and psychotropic substances, potassium permanganate for cocaine in particular. The meeting was very fruitful.

Outside the meeting, small scale meetings were held individually among different parties to sort out problems and enhance cooperation. Hong Kong delegation was able to secure agreement from the Competent Authorities of Colombia to have the latter's future correspondence sent to the Government of the Kong Special Administrative Region in English language instead of Spanish.

Hong Kong delegation had discussions with representatives of South Africa, the Czech Republic, and Mainland China on the exchange of pre-export notifications and related information, and as a result they had better understanding of each other's systems for improved cooperation in the future.

During the meeting, we were greatly impressed by the high regard from the participants for Hong Kong Customs' commitment to Article 12 of the 1988 UN Convention and our excellent performance in this aspect.

Sunny S L Ho Assistant Superintendent

White Collar Crime

Between March 29 and April 9, Assistant Superintendent W H Lai and I have the honour to be invited to participate in the "White Collar Crime" Course organised by the International Law Enforcement Academy (ILEA) in Bangkok. Special agents of the FBI have taken the trouble to travel far away from the States to Thailand and act as the course instructors.

"White Collar Crime" is the largest criminal programmes among the seven major investigation programmes of the FBI. Money laundering, bank fraud and embezzlement, computer related crimes and intellectual property crimes are some of the typical white collar crimes that we have heard of in our daily lives. They are in fact illegal acts committed by non-physical means or by concealment or guile, to obtain money, property, business/personal advantage or to avoid payment. We might not be familiarised with the terms but such crimes are not uncommon in Hong Kong.

There were 55 participants in this course. They came from different law enforcement agencies in nine different countries. We all had benefited much from the course by learning the current approach to the complex white collar crimes and grasping the appropriate investigation techniques against them.

CHAN Shiu-Keung Assistant Superintendent

$$$ for Helping Business Proposals

Have you sent in your proposal for the 1999 Helping Business Awards Scheme yet? Winning Entries will each get $7,000. An additional cash prize of $30,000 will be awarded to the outstanding proposal.

Helping business is everyone's business. It is also a "Win-win" solution for all. Both civil servants and the business community will benefit from helping business initiatives.

The Helping Business Awards Scheme, organised by the Business & Services Promotion Unit of the Financial Secretary's Office, is open to all civil servants.

The objective of the Awards Scheme is to encourage every civil servant to be a business facilitator.

Participants should submit proposals to BSPU on or before July 30. Submissions can be made either individually or as a team. For details, please refer to the Awards Scheme leaflet available from the Department Secretary or BSPU on 2810 3440.