On January 26, 2000, the Department hosted a reception at the Customs and Excise Senior Officers' Mess to celebrate the first International Customs Day in this new millennium. We had the honour of having the Chief Secretary for Administration, Mrs Anson Chan, and the Secretary for Security, Mrs Regina Ip, to officiate at the ceremony.

Over 400 local dignitaries, senior government officials, members of the Legislative and Executive Councils, Consuls-General, foreign Customs attachés and Customs representatives from the Mainland and Macau, attended the function.

Commissioner's visits to Korea and Japan

Between November 15 and 18, 1999, the Commissioner John C Tsang led a delegation to attend the 20th Customs Cooperation Conference between Korea and Hong Kong Customs in Taejeon, South Korea. Members of the Hong Kong delegation comprised AC Poon Yeung-kwong, Supt Leung Chi-chiu and CTCO Cheung Sai-yan. The Korean delegation was led by Mr Kim Ho-shik, Commissioner of the Korea Customs Service.

The conference was successfully concluded on November 16 with the heads of two delegations signed a record of meeting, agreeing to share operational experiences between the two administrations as well as to exchange intelligence in various enforcement areas.

The Commissioner also took the opportunity to visit the Regional Intelligence Liaison Office of Japan Customs on November 19, after attending the cooperation conference in South Korea. The Office was relocated to Tokyo in January 1999, after 11 years of operation in Hong Kong. To show its support, Hong Kong Customs has seconded Senior Inspector Leung Sai-kwong to the Office as an intelligence analyst for a term of two years.

During his stay in Tokyo, the Commissioner also had a meeting with Mr Hiroyasu Watanabe, the Director-General of Customs & Tariff Bureau, Ministry of Finance. Both reviewed the cooperation between the two administrations at the regional and international levels.

Customs Intelligence & Liaison Bureau

Commissioner's Visit to London and Brussels

From November 29 to December 3, 1999, the Commissioner John C Tsang paid a week-long visit to UK Customs in London at the invitation of the UK Government.

The Commissioner took the opportunity to speak at a Hong Kong and United Kingdom Business Forum in London. He said that Hong Kong's role would be further fortified with China's imminent entry into the World Trade Organisation. He told the forum that the HKSAR, being an active and responsible player in the global economy, was fully committed to adopting the highest international standard in strategic trade control. Hong Kong had also maintained an excellent track record and the control system had been commended by all the key strategic export control regimes. Turning to anti-piracy work, the Commissioner said that the whole-hearted commitment of Hong Kong Customs was always definite.

After visiting London, the Commissioner attended the 42nd Session of World Customs Organisation Policy Commission in Brussels. During his stay in Brussels, the Commissioner delivered a speech at a luncheon to members of the Belgium/Hong Kong Society, focusing on economic recovery of Hong Kong, the HK Customs' involvement in WCO activities and the intellectual property rights protection in Hong Kong.

Customs Intelligence & Liaison Bureau

Visit by Officials from Thailand

Mr Sorasit Sangprasert, Secretary-General of Narcotics Control Board and Mr Pornthep Iemprapai, Director of the Second Area Coordination Office, Office of the Narcotics Control Board (ONCB), Thailand visited the Department in January, 2000. ONCB is an independent department in the Office of the Prime Minister and is a coordinating body for drug prevention and suppression in Thailand. They called on the Commissioner and visited Customs Drug Investigation Bureau; met Mr James To, Legislative Councillor and member of Action Committee Against Narcotics; and Mrs Clarie Lo, Commissioner for Narcotics.

Customs Drug Investigation Bureau

Renewal of Anti-piracy Reward Scheme and Anti-Cigarette-Smuggling Reward Scheme

The signing of agreement for renewal of Anti-piracy Reward Scheme took place at the Customs and Excise Senior Officers' Mess on December 16, 1999. AC Vincent Poon and representatives of the eight contributing members of the copyright industry signed the Scheme agreement.

The renewed Scheme, enlisting a capital of $508,000, came into operation on January 1, 2000 and the reward scale had been doubled to $10,000-$40,000 to enhance its effectiveness.

On the other hand, DC Raymond Li signed, on behalf of the Department, an agreement with the representative of the Tobacco Institute of Hong Kong Limited (TIHK) on January 21, 2000 to renew the Anti-Cigarette-Smuggling Reward Scheme.

TIHK contributed a total of $750,000 to finance rewards, ranging from $10,000 to $100,000, to persons who had provided information leading to seizures of contraband cigarettes.

Significant achievements made by Customs

"The Customs and Excise Department last year continued to achieve notable progress in its enforcement role to uphold Hong Kong's trading integrity at the international level and contributed to the long term economic development of our society." The Commissioner John C Tsang said at the year-end press conference to review the work of the Department in 1999.

The Commissioner also announced that the tenure of the 185-member Special Task Force would be extended for another six months in view of its significant achievements in curbing copyright piracy, illicit fuel oil and contraband cigarettes activities at the street level. With vigorous enforcement actions by Customs, retail outlets had been reduced from about 1,000 at the beginning of last year to just 100 in December.

At the press conference, the Commissioner also outlined achievements in other aspects of Customs work and paid tribute to all members of the Department for their contributions in achieving a fruitful year.

Code on Conduct and Discipline

A press conference was held by the Deputy Commissioner Raymond Li on December 23, 1999 to announce the publication of the Code on Conduct and Discipline for all staff of the Department. He remarked, "our Department is committed to maintaining a Customs service of high integrity. The publication of the Code, which sets out in practical and clear terms the standard of behaviour expected of all staff members in the Department, serves to underline our efforts to achieve that and to reinforce the culture of integrity among staff at all levels."

Every staff member in the Department had been provided with a copy of the Code for personal reference and retention. To promote and to ensure that every staff member is familiar with the Code, the Deputy Commissioner briefed all Formation Heads on the Code in a seminar held in early December 1999. The Formation Heads were urged to take the lead to relay the message of integrity to staff at all levels by means of briefing sessions. To reinforce the awareness of the staff, regular seminars will be organised and a video on integrity will be produced for training purpose.

As a faithful supporter of the Customs integrity programme initiated by the World Customs Organisation (WCO), copies of the Code had also been sent to the WCO's Secretariat and its 152 member administrations. Full version of the Code can also be accessed on the Department's homepage at http://www.customs.gov.hk/.

Office of Departmental Administration

Y2K Rollover Arrangement

As a result of hefty endeavor made to Y2K rectification works, all Customs clearance and operations in the Department were free from any Y2K-induced disruptions during the rollover to the new millennium.

The Department spent about $3.56 million to make our mission-critical systems Y2K-ready. We have also drawn up various contingency plans to ensure business continuity in the event of occurrence of Y2K-induced disruptions. Besides, a Departmental Temporary Circular promulgating the Y2K rollover arrangements had also been issued in December 1999 for all staff's information.

Led by Senior Superintendent William Chow, the Departmental Y2K Co-ordination Centre (DCC) was activated to act as a nexus between the Department and the Y2K Central Coordinating Centre (CCC) of Information Technology and Broadcasting Bureau of the Government Secretariat.

Private lines was immune from any Y2K impacts and connecting the DCC with APC, CPC, SSCC as well as major sites of our mission-critical computer systems had been installed to ensure non-disruption of communication. Over 140 additional officers had also been arranged on duty and standby duties at APC, CPC and SSCC to reinforce frontline operations.

In the small hours of January 1, 2000, the Commissioner visited the Coordination Centre of the Airport Command and there had been no disruption of our services to the public. The Department had a smooth transition to the Year 2000.

Office of Information Technology

'One Stop Shop' Telephone Hotlines

Based on the recommendations of an internal review conducted on its hotline systems, the Department introduced a new arrangement in early January 2000 to improve the hotline service to the public.

Under the new arrangement, members of the public only need to remember one number - 2545 6182, when reporting Customs offences such as the illegal use of diesel oil, smuggling activities and textiles origin fraud. Before implementation of the new arrangement, the Department had six hotlines for receiving information and each hotline was designated for a particular category of offence. This was undesirable and inconvenient to the public.

Regarding general enquiries, the operator service had been extended to 24 hours a day through the hotline 2815 7711. There was no operator service after office hours and on general holidays before January.

With the improvement, we aim to provide a direct, convenient and efficient service to meet the increasing expectation of the public. We also aim to stay "one step ahead" to be more professional.

Customs Intelligence & Liaison Bureau

Graduation Ceremony of Drug Search Dogs Courses

The joyous celebration and ardent applause among officers of both Customs and Police marked the successful completion of a 3-month arduous Police training programme by 10 pairs of Customs canine and handler trainees in a graduation ceremony at the Headquarters of Police Dog Unit in Fanling on November 25, 1999. These training courses followed the first Police dog training programme offered to the Department in 1974 during which the first Customs drug detector dog "Oliva" was successfully trained by Police canine officers.

In the ceremony, Mr. Cheung Chi-sum, Assistant Commissioner of Police, conferred competence certificates on 7 males and 3 female Customs handler trainees. In return, AC David Tong presented a trophy to police Dog Unit and expressed gratefulness and appreciation for their generous assistance.

The Narcotics Dog Unit has a strength of 14 serviceable drug detector dogs, including 12 proactive dogs and 2 passive-alert dogs that would be primary employed on the screening of passengers in boundary-control stations.

By late 2000, the number of drug detector dogs is expected to further increase in order to reinforce the drug detection capabilities of the Service. And the entire expansion project of the Narcotics Dog Unit is anticipated to conclude in mid-2001. To cope with future expansion, Narcotics Dog Unit sent inspectors and handlers to attend related professional training courses in Japan and the United Kingdom in January 2000.

Narcotics Dog Unit

Implementation of Government Office Automation (GOA) Programme

On September 10, 1999, the Government Office Automation (GOA) programme at a cost of $9.944 million was launched. The programme aims to facilitate efficient and paperless communication. Dissemination of information, group work and individual productivity within the Government have been enhanced. Currently, the GOA programme is available to officers of Superintendent and above, heads of functional units and personal secretaries.

With the introduction of the Government Communication Network (GCN) in January 2000, GOA users can share information on-line with individuals with access to any Internet services provider. They will soon be able to have access to information on the Central Cyber Government Office (CCGO) which provides information on Hong Kong Laws, Civil Service Circulars, Information Technology news, and training information, etc. Web browsing will also be available in the future.

To further enhance the efficiency of the Department's work as a whole, the GOA programme will be extended to all Assistant Superintendents, Chief Trade Controls Officers, Office Managers and Duty Officers. The extension project would be completed by the end of June 2000 with a cost of $2.6 million. Another 143 officers would be included to the current 107 users, making it a total of 250 GOA users in the Department.

Office of Information Technology

Biggest Seizure of Falsely Labelled Garments

On November 21, 1999, officers of Trade Licensing Investigation Bureau (TLIB) and Ship Search and Cargo Command seized the biggest-ever shipment of falsely labelled garments worth $13.67 million in a joint operation. In the operation, they intercepted an incoming Mainland river trade vessel and seized seven containers containing 331,326 pieces of China-made garments and clothing accessories which were labelled with false origin markings. Among them 3,828 pieces were also applied with forged brand names/trade marks. The case was widely publicised by the media. The recovery from the economic down-turn within the South-East Asian region saw increases in the demand of garments and clothing accessories and the number of cases involving falsely labelled garments and clothing accessories transshipping through Hong Kong has increased. Officers of the Department are aware of the situation and well prepared to watch out illegal transshipments at all fronts.

Trade Licensing Investigation Bureau

"WTO Valuation Agreement Course" in Malacca, Malaysia

Is November a good time for sightseeing in Malaysia?

Yes, but I went there for attending "WTO Valuation Agreement Course". The course was organised by the Royal Customs Academy Malaysia and lasted for nine days, from November 2 to 10, 1999.

With the objective to help participants understand the rules and principles of the WTO Valuation Agreement, the training programmes covered widely on the Customs valuation control, risk assessment and post clearance verification under the WTO Valuation Agreement. Particular emphasis was put in areas of determination of transaction value, elements of transaction value, identical and similar goods, deductive and computed value methods. The discussion was followed by complex case study of each method.

There were 29 participants coming from Brunei, Cambodia, China, Ghana, South Korea, Laos, Malaysia, Sri Lanka, Sudan, Vietnam and Hong Kong. All were arranged to live in the same dormitory to promote social interactions and other activities.

As part of the programme, the participants were invited to make presentation on the valuation systems operating in their countries. Other participants were amazed that Hong Kong is practically a place without customs duties. I needed to explain even after the class that although Hong Kong is a free port, Hong Kong Customs had valuation work on dutiable commodities and render assistance to the overseas Customs in the verification of values of goods exported to their countries.

I am glad that I was given a chance to attend this international course which enabled me to have a better understanding of the WTO Valuation Agreement and to meet many Customs officers from the other Asian countries.

Leung Suk-ching
Senior Trade Controls Officer

Study the Operation of Cargo Hubs in Singapore and the Philippines Airports

From December 1 to 4, 1999, I led a party comprising acting Supt Tam Yiu-keung and SI Lam Kam to pay a familiarisation visit to Singapore and the Philippines to study the operation of cargo hubs at Changi Airport and Subic Bay Airport respectively. Cargo hub is a modern concept in the air cargo industry which means the setting up of a centralised transit point in a selected airport in the region to act as a distribution centre, for the collection, sorting and onward delivery of air transshipment cargo. The Government of HKSAR is keen to develop Hong Kong as an international and regional air cargo hub. A number of leading international air cargo operators had expressed interest in expanding their transshipment operations in Hong Kong.

We had a very tight schedule for the trip. We visited Singapore Airport Customs and observed the operation of the cargo hubs operated by DHL, FedEx and UPS at the Changi Airport in the first two days, both day and night. Through discussions with Singapore Customs and the cargo operators, we were able to see and understand the Modus Operandi of air-to-air transshipment cargoes in Changi Air Freight Centre which is a fenced-off free trade zone area. In the Philippines, we visited the FedEx cargo hub at Subic Bay Airport during its main operating hours between 11:30 pm and 3:00 am when transshipment cargo from more than 10 FedEx cargo planes are sorted for redistribution at the same time. We also had a thorough and constructive meeting with the officer-in-charge of the FedEx hub to exchange views on the mode of air-to-air transshipment operation. The discussion had enhanced our understanding of the business needs of the cargo operators, especially in the smooth clearance of transshipment cargoes.

The whole visit was indeed very useful and eye-opening, and we returned with a deeper knowledge of the field experience which would enable us to design for ourselves a proper customs control system on cargo hubs which are likely to be set up at the Hong Kong International Airport in the near future.

Mrs Kwok Young Mei-ki
Head of Airport Command

Baby gibbon netted at the Airport

On December 14, 1999, a live baby gibbon was seized by SCO Cheng Cho-kam (8284) inside a handbag carried by a Taiwanese man arriving from indonesia en route Hong Kong to Taiwan at the Airport. Agriculture, Fisheries and Conservation Department (AF &CD) confirmed that the gibbon belonged to "Hylabatidae Species" and had been classified as highly endangered species. The Taiwanese man was charged and convicted under the Animal and Plants (Protection of Endangered Species) Ordinance and was fined $20,000.

The poor gibbon is now kept in the Kadoorie Farm and Botanic Garden. The Airport Command is very concerned about the future of the little gibbon. We had met a Senior Field Officer of AF&CD and visited the gibbon recently. Fortunately, the veterinary said that the little gibbon was in good shape.

There had been no record on seizing gibbon in the past 15 years. The AF&CD was deciding on the best arrangement for the gibbon. Since the gibbon was the only one in Hong Kong, the AF&CD was considering a "new home" for it overseas.

Airport Command

Letter from Mr Douglas H Knox

Mr Douglas H Knox, former Assistant Chief Preventive Officer retired on November 8, 1965, wrote to the Customs News Editorial Board and expressed his sentiments about the dramatic changes and development of the Department in the past few decades. In his letter, Mr Knox also remarked that both the 90th Anniversary Bulletin and Customs News are most interesting readings to him. Mr Knox is currently living in Auckland, New Zealand.

Meeting Old Friends in Australia

I was most happy to have attended the Customs Integrity Workshop in July 1999 in Australia where I could meet our old friends there - former Senior Superintendent Mak Kam-lau; former Senior Inspectors Tsang Kwok-keung, "KK" and Kam Koon-ying, "Kelvin".

Mak is now running his own business and leading a happy and carefree life in Australia. Both "KK" and "Kelvin" were investigators when they left the Department and the professional knowledge they had amassed is still very useful to them. "KK" is an investigator in the Joint Organised Crime Task Force of the National Crime Authority whereas "Kelvin" is a Federal Agent in the Australian Federal Police. Coincidentally, "Kelvin" is currently on secondment to the Task Force and they are now working together on anti-narcotic enforcement. As a Chinese, I am proud to report their achievements in Australia. To quote but one of the many, their joined hands had led to the seizure of 7.5 kg of heroin sealed inside picture tubes in May 1999. The seizure was particularly significant because it had unveiled a new and very sophisticated method of drug smuggling.

If you want to say hello or visit them in Australia, please give me a ring.

Lee Cheung-wing, John
Assistant Superintendent

Training in Computer Forensics

The Department is organising a Computer Forensic Course jointly with the Police, the ICAC and the Hong Kong University of Science and Technology in June 2000. Concurrently, a Computer Forensics Special Interest Group (CFSIG) will be formed.

The aim of CFSIG is to promote officers' interest in computer forensics and to agglomerate interested officers for sharing of case experiences, exchanging ideas as well as transferring skills. CFSIG members will be invited to attend forums and seminars on computer forensics periodically to further their knowledge and understanding of computer forensics and related topics. CFSIG members are encouraged to research into the computer and cyber crimes at their spare time and to contribute any constructive opinions and findings to the Group.

Leung Koon-wah
Superintendent