The Financial Secretary, the Honourable Donald Tsang, JP, was the Inspecting Officer at the passing-out parade at the Customs and Excise Training School on November 27, 1999 to mark the graduation of 43 probationary Inspectors and 64 probationary Customs Officers.

In his address, he highly commended the department's dedication in combatting offences involving intellectual property rights and smuggling activities. He emphasized that the department's success upheld Hong Kong's trading integrity at the international level and contributed to the long term economic development of our society. He encouraged our officers to equip themselves for the challenges ahead to sustain the momentum of the department's good work and to continue their contribution to the stability and prosperity of the community.

Bilateral Conference with Australian Customs Service and New Zealand Customs Service

Commissioner John C Tsang led a delegation comprising Senior Superintendent Chow Oi-tung, William and Assistant Superintendent Lui Kin-hung, attended the 4th Customs-to- Customs Talks with the Australian Customs Service (ACS) in Canberra, Australia from October 11 to 12, and the 3rd Customs Co-operation Conference with the New Zealand Customs Service (NZCS) in Wellington, New Zealand from October 14 to 15 respectively.

The ACS delegation was led by Mr Lionel Woodward, Chief Executive Officer while Mr Robin Dare, Comptroller led the NZCS delegation.

In the bilateral meetings, Heads of delegation reviewed the co-operation and members discussed a range of issues of mutual concerns to the administrations. Both meetings were successfully concluded. Commissioner Tsang signed the Joint Communique with ACS and NZCS after the meetings reaffirming to enhance and continue the strong bilateral relationships with them.

During the visit, the Commissioner gave two breakfast briefings in Canberra, Australia and Wellington, New Zealand to talk to the local trading community about the recent Hong Kong economic recovery, the strategic trade controls and the intellectual property rights protection in Hong Kong.

Customs Liaison Division

Second International Potassium Permanganate Meeting

An international meeting of 17 countries and three international organisations concerned with the criminal diversion of potassium permanganate into the illicit drug trafficking market was held in Hong Kong between October 19 and 22. The meeting was organised by the U.S. Drug Enforcement Administration (DEA) with assistance of Hong Kong Customs and Excise Department. The international organisations present at the meeting were the United Nations International Narcotics Control Board, the ICPO - Interpol, and the World Customs Organisation. Three officers of the Controlled Chemicals Group, Mr Lau Ka-ming, Mr Sunny Ho and Mr Lam Ying-mau, participated in the meeting.

This is the second meeting dealing with the diversion of potassium permanganate, a chemical widely used by drug traffickers as an oxidising agent in illicit cocaine production. The first meeting, held in Madrid, Spain, in February this year, brought together the principal potassium permanganate producing, exporting, and transit/relay countries and the primary cocaine producing countries. The delegates in the Madrid meeting agreed to an action plan. The main component of the action plan was a six-month international operation to track all 100 kilograms or greater shipments of potassium permanganate from the producing or exporting countries, through all transit or relay countries, to the ultimate end-users. This operation, known as "Operation Purple", relied on real-time communication among the responsible enforcement agencies of the countries involved to provide notification for all shipments.

"Operation Purple", which began on April 15, this year, has met with unprecedented success. It has had a major impact on the traffickers' ability to obtain the chemical to process cocaine. During the operation, 21 shipments, involving over 1,300 metric tons of potassium permanganate, were seized or stopped.

In the second meeting, the outcome of "Operation Purple" was appraised. All countries and territories involved have voted to continue the operation beyond its original period and to expand it to include countries, which are emerging as potential sources of potassium permanganate diversion.

Lau Ka-ming Superintendent

US Consul General's Visit

The new American Consul General for Hong Kong, Mr Michael Klosson, visited the Department on August 26 and was briefed on functions and set up of the Special Task Force as well as Hong Kong's strategic trade controls system. Mr Klosson was impressed by the evident strength of the Hong Kong Government's determination to protect intellectual property rights and applauded the hard work of the law enforcement officers.

HK Customs Fully Committed to IPR Protection

The Customs and Excise Department is fully committed to intellectual property rights protection and will continue doing everything possible to maintain Hong Kong as a pirate-free zone.

The assurance was given by Commissioner John C Tsang when addressing a luncheon of the Hong Kong General Chamber of Commerce on September 9.

The Commissioner, while outlining Customs work in curbing the rampant piracy activities, said, "I am very happy to tell you that we have blinded the pirate in the remaining eye. The piracy situation is now under control."

He noted that the extent of CD piracy in Hong Kong was shrinking rapidly due to the hard work of the Department.

Visit to Yantian Customs Marine Base at Shenzhen

For further strengthening of the co-operation between the Guangdong and the Hong Kong Customs in tackling smuggling activities, Deputy Commissioner Raymond Li led a delegation comprising Assistant Commissioner Vincent Poon and other 48 members visited the Yantian Customs Marine Base at Shenzhen on November 23, 1999. Four Hong Kong customs boats conveyed the delegation there and this was the first time Customs fleet of HKSAR visited the Mainland. During the trip, the delegation visited their Anti-smuggling Command Centre; their patrol launches No. 812 and 831 and saw the demonstration of their drug detector dogs.

STI Visited Seizures Identification Office

The Secretary for Trade and Industry (STI), Mr Chau Tak-hay, visited the Seizures Identification Office of Intellectual Property Investigation Bureau (IPIB) at Chai Wan Government Logistic Centre on August 25. He was met by Commissioner John C Tsang, Assistant Commissioner (Control and Intellectual Property) Vincent Poon and Acting Senior Superintendent Chow Wing-keung of IPIB.

The visit began with a briefing on the process of seizure identification regarding copyright cases given by Senior Inspector Mak Wai-chung, followed by a brief account of the work of the seizures identification teams on sorting and counting of pirated optical discs, the examination of suspected infringing optical discs including video CDs, Music CDs and CD-Roms. STI was also briefed on the administrative support behind protection of intellectual property rights, which was laborious and indispensable. In essence,

STI was very impressed by the millions of seizures which depicted the efforts and achievements of the Department in combating infringing activities. He also took the opportunity to commend the Department's on-going efforts in protecting intellectual property rights.

Intellectual Property Investigation Bureau

Visit by ACAN Members to Boundary

Twenty members of the Action Committee Against Narcotics (ACAN), accompanied by the Commissioner for Narcotics, Mrs Clarie Lo and Assistant Commissioner (Border and Drugs) David Tong, toured Customs Control Points at Lo Wu and Man Kam To in the morning of September 15.

In the afternoon, the group visited the Hong Kong International Airport. They were given a demonstration of detecting narcotics with the X-ray machine and the ion scanner and followed by the Customs Drug Detector Dog show. They were later shown the "Special Toilet System" and the EMIT test machine for detecting internal concealment of drugs.

The group then visited Super-Terminal One, where they were briefed on how the Air Cargo Clearance System helps in selection of Air Cargo for examination.

Commissioner's Visit To Optical Discs Factory

Commissioner John C Tsang, accompanied by Assistant Commissioner (Control and Intellectual Property) Vincent Poon and Acting Senior Superintendent Chow Wing-keung of the Intellectual Property Investigation Bureau, visited an advanced licensed optical discs factory in Tsuen Wan on September 14. They toured the facilities at the factory and were briefed by the factory management on the operation of optical disc production machinery, the manufacturing process of optical discs and stampers. They also exchanged views, among other things, on the protection of intellectual property rights and general situation of the optical discs manufacturing industry.

Commissioner was particularly impressed by the factory management's active development in manufacturing high quality optical discs and its mechanism in checking the authenticity of authorisation documents before going ahead with the manufacturing process.

During the visit, Commissioner pointed out that the piracy situation in Hong Kong was under control following a two pronged enforcement strategy directed at source and the retail end of the pirated optical discs business by the Customs. With the enforcement of the Prevention of Copyright Piracy Ordinance in August1998 when a compulsory licensing system for the manufacture of optical discs was introduced, we were well guarded against the manufacturing of pirated optical discs in local factories, he said. Notwithstanding the present achievement, Commissioner appealed to copyright associations, licensed optical discs manufacturers and members of the public to continue giving full support to Customs to curb piracy activities, to protect intellectual property rights in the territory and to preserve the good image of Hong Kong.

The visit, lasting for two hours, was interesting and informative. Before leaving, Commissioner thanked the factory management for their hospitality and excellent arrangements in working out the visit programme.

Intellectual Property Investigation Bureau

Narcotics Investigation Course for the Royal Thai Customs

The Department has a long history of good friendship with the Royal Thai Customs. The Narcotics Investigation Course held from October 11 to 16 has flourished the close tie between the two Customs administrations.

The Higher Training Division organised this five-day programme for a delegation of 10 officers from the Royal Thai Customs. The delegation was led by a Chief Customs Inspector. Members included six Customs Inspectors and three Customs Aids. They were all from the Narcotics Enforcement Sub-Division of the Investigation Bureau.

The primary objectives of the course were to introduce narcotics control in Hong Kong and to enable the Thai colleagues to master the techniques and tools applied by this Department in narcotics enforcement.

The programme was designed to strike a good balance embodying theoretical lectures on drug investigation and intelligence system, and supplemented by practical visits and attachments to various operational formations.

Higher Training Division

Mess Dinner

A Special Guest Night was held in the Customs and Excise Service Senior Officers' Mess on October 22. The Principal Guest was the Secretary for Security Mrs Regina Ip, J.P.. Other senior officials of the Security Bureau also attended.

Oil Industry Reward Scheme 1999

Assistant Commissioner (Administration & Excise) Lawrence Wong said the Department was determined to take all necessary efforts to repress all kinds of illicit fuel activities. On September 29, Mr. Wong signed, on behalf of the Department, an agreement with the representatives of the Oil Industry to renew the Oil Industry Reward Scheme for another year effective from October 1, 1999.

The Oil Industry Reward Scheme financed by Caltex, CRPC, Esso, Mobil and Shell was first launched on 1 April 1996 to encourage the public to give information on illicit fuel activities. The five oil companies contribute a total of $1 million to pay rewards ranging from $3,000 to $140,000 to any person who provides information leading to seizure of illicit fuels with or without the arrest of persons.

Since the implementation of the agreement running from 1 April 1996 to 30 September 1999, a total reward of $520,000 was paid out in 17 cases in which 49 people were arrested and 591,850 litres of illicit fuel were seized. Another sum of $473,000 involving 31 cases with the arrest of 67 persons and seizure of 858,580 litres of illicit fuel will be released upon the conclusion of the cases.

Office of Dutiable Commodities Administration

Customs Provides Better Service

The Department has been vigorously providing a more efficient and professional services to the public.

This was said by Commissioner John C Tsang, when addressing the inauguration of the Cross Boundary Transport Industry Customer Liaison Group (CBTICLG) on October 5.

"In achieving our goal of providing better service, the establishment of customer liaison group could assist well in monitoring our service quality and enhancing communication between the Department and the public." he noted.

The main objective of CBTICLG is to provide a channel for representatives from the cross boundary transport industry to reflect their views on clearance services by Customs at the land boundary control points.

The liaison group comprises 12 non-official members, who are the representatives from the cross boundary transport industry, and two official members - Assistant Commissioner (Border and Drugs) David Tong and the Head of Customs Control Point Command, Ronny Tsang Hing-kam.

The non-official members are appointed by Commissioner and their membership are subject to review once every two years.

New Shallow Water Patrol Launches

Two new shallow water patrol launches joined the Customs fleet in the anti-smuggling battle this on of November 2. They are converted speed boats built in the United States, each powered by two 250 horsepower outboard engines, giving them the ability to cruise at a maximum speed of 38 knots. Characterised by their shallow draft and swift maneuverability, these launches are particularly effective for patrolling and enforcement missions, including diving operations in shallow water and coastal areas. These are also the reasons that they are widely used in the United States as enforcement patrol boats and rescue boats.

A 21-strong Shallow Water Patrol Team has been established to operate these launches. The team will shoulder the responsibilities of being one of the powerful striking forces of Marine Enforcement Division.

Formation Inspection Team

The Formation Inspection Team (FIT), a centralised body in the Department to conduct research, inspection and review on administrative and operational procedures and practices in Major Formations, came into operation on November 15.

Senior Superintendent Chow Kwong heads the FIT and he has a mixed staff complement of eight officers. The Inspection Unit is formed by one Assistant Superintendent, one Senior Trade Controls Officer and one Executive Officer I, while the Research Unit has one Chief Trade Controls Officer, one Senior Inspector and one Executive Officer I.

The mixed staff complement is aimed at the pooling of resource and expertise so that the FIT can be better equipped to make practicable contributions for improvement on procedures and practices in the Department.

The FIT is now temporarily housed at an office on the eighth floor, Harbour Building. It is expected that by early January 2000, the team can move into its permanent office accommodation at Rumsey Street Carpark Building.

The FIT will conduct programmed inspections on Major Formations and undertake ad hoc studies on topical issues or specific areas of concern. It will look at matters both from the Major Formation's perspective as well as the Departmental perspective. It is expected to work in close partnership with the Major Formations concerned in producing practicable solutions for the improvement of procedures and practices in the Department.

Formation Inspection Team

Regional Customs Football Tournament

The Hong Kong Customs Football Team won the 1st runner-up of the 7th Regional Customs Football Tournament held in Bangkok, Thailand between September 23 and 25.

Hong Kong Customs and Macau Marine Police and Customs joined the tournament hosted by the Royal Thai Customs. Hong Kong Team lost 1 - 4 to Royal Thai Customs in the first match, but beat Macau by 1 - 0. Thai Team was the champion after beating Macau by 4 - 3. Hong Kong was the 1st runner up.

Sports and Recreation Club

Expansion Project of Lok Ma Chau

Lok Ma Chau Control Point (LMC) is about to celebrate its tenth anniversary of operation (it began to operate on December 29, 1989). Currently, LMC operates round-the-clock and, on the average, about 18 000 vehicles and 18 000 passengers travel through it every day.

To cope with the phenomenal growth in cross-boundary traffic, the facilities at LMC crossing will be expanded in two phases. The estimated cost of Customs facilities to be constructed in the Expansion Project is about HK$254 million, including HK$216.7 million for the purchase and setting up of two vehicle X-ray scanner houses.

Phase I

Building of 10 additional Customs manifest-processing kiosks with air conditioning will be completed at the end of December, 99. By then, there will be a total of 24 (12 incoming and 12 outgoing) Customs kiosks at LMC. Fifty new posts, including one Assistant Superintendent, one Senior Inspectors, eight Inspectors, thirty-one Senior Customs Officers and other supportive staff, will be created.

Phase II

The Passenger Terminal will be expanded. New Customs cargo examination compounds to house two vehicle X-ray inspection systems will replace the existing facilities. A dog kennel, a warehouse and other ancillary facilities will also be constructed. Phase II is expected to be completed by the end of 2002. By then, 45 additional posts will be created.

When the whole Project is completed, LMC will be able to handle a maximum of 35 000 cross-boundary vehicles and 35 000 passengers daily.

Control Points Command

Better Working Environment

To provide a better working environment to our officers and to safeguard their health, the Department has commenced to improve the air-quality in the vehicle declaration kiosks at the Control Points. Air handling units and air ducts will be installed over the kiosks to provide fresh air to officers in the kiosks. The air pressure in the kiosks will also be increased to prevent the contaminated air from entering the kiosks.

Installation work at Sha Tau Kok Control Point were completed in September this year. According to staff members thereat, air quality in the kiosks has greatly improved.

Installation work at Man Kam To Control Point is still in progress and expected to complete by mid-November this year. Installation work of air handling system for the new vehicle declaration kiosks at Lok Ma Chau Control Point will be completed by the end of this year upon completion of its Phase 1 extension project.

Office of Management Services

Personnel News

New staff

Thirty Six colleagues joined the Department as Probationary Customs Officers in October 1999.
Miss Poon Wing-sze joined the Department as a Chinese Translation Officer II on September 15, 1999.

Promotion

The following officers were promoted to Assistant Superintendent on August 11, 1999:

Au Kin-chung
Liu Hon-chun
Lam Ying-mou
Leung Shung-chi
Leung Tak-yin
Mr Ng Sun-ming was promoted to Statistical Officer I on August 8, 1999.
Thirteen Assistant Trade Controls Officers were promoted to Trade Controls Officer on August 25, 1999.

Retirement

The following officers proceeded on pre-retirement leave between August and October 1999:

Commendation

Thirty-nine officers and one drug detector dog were commended by respective Assistance Commissioners, and one officer was commended by the Senior Principal Trade Controls Officer on September 23, 1999.

Tough line on Departmental Code of Conduct

The local disciplinary forces are widely recognised for its efficiency and standard of integrity. While treasuring our established reputation and facing new challenges ahead, the Hong Kong Customs is determined to inculcate a sense of strict discipline to her staff members at all levels.

Apart from the Civil Service Regulations, the Customs & Excise Service (Disciplined) Rules made under the Customs & Excise Service Ordinance constitutes another statutory legislation that governs the codes of conduct of all Customs officers. Internally, the Customs & Excise Standing Orders issued by the Commissioner also lay down discipline guidelines for members to observe as well. Members who breach any disciplinary rules stipulated in these regulations are subject to disciplinary charges and subsequent punishment which range from a reprimand, a fine, a stoppage or deferment of increment, a demotion or a dismissal.

The Department takes a tough line on staff who accepts advantage without permission or defraud the Department by taking bribes, falsifying claims and misusing equipment. An officer who solicits or accepts any advantage which leads to a conflict between his private interests and official position is liable to a disciplinary action.

As specified in the Service Standing Orders, members are further obliged to follow a code of conduct which disagrees certain personal acts. Such acts include the connection with undesirable characters and the permission of a subordinate member to act as his loan guarantor, etc. Indebtedness is another common staff problem. Supervisors at all levels within the department are reminded regularly to observe signs of staff indebtedness, including tax defaults, outstanding credit card payment and frequent gambling, which may impair the officers' job performance and will create opportunities for corruption.

Members who fall in heavy debt and become insolvent are required to report to the Civil Service Branch via the Department as soon as possible. In particular, officers entrusted with the handling of public money are liable to disciplinary proceedings on the failure of disclosing their bankruptcy or insolvency.

At present, indebtedness cases involving Inspectorate grade and COG members will be managed by Assistant Superintendent (Service Welfare), whereas those for Superintendent grade officers will be handled by Assistant Commissioner (Administration and Excise).

Disciplinary action is the management's last resort to handle a staff problem. Close communication is always a more effective means to identify a potential staff problem before it develops into an irremediable mistake. While subordinates should seek guidance and counselling from their supervisors in case of doubt, the management will ensure a strict monitoring system to safeguard staff discipline and integrity at all times.

Pak Suet-yee Customs News Reporter