Hong Kong Customs Seizes $180 Million Worth of Smuggled Cigarettes

Customs officials in Hong Kong have arrested three men and seized black market cigarettes worth HKD 180 million (RMB 164 million), marking the second largest smuggling operation of its kind this year.

Last Tuesday morning, personnel intercepted three container trucks near Qingyi Road and the southern road of Kwai Chung Container Terminal. Approximately 31 million suspected smuggled cigarettes were found in three 40-foot containers carried by the vehicles.

Following further investigations on the same day, officials discovered an additional 33 million smuggled cigarettes in three other containers located in the same yard. The department estimated the total value of the seized 64 million cigarettes to be 180 million Hong Kong dollars. If legally imported, these prohibited items would have generated tax revenue of 120 million Hong Kong dollars.

Customs officers have seized approximately 640 million suspected black market cigarettes this year, an increase of about 50% compared to the approximately 427 million seized last year.

Three truck drivers, aged between 50 and 63, have been arrested for allegedly selling illegal cigarettes in a recent case. According to the "Excise Goods Regulations," they could face up to two years in prison and a fine of HKD 1 million. Six shipping containers were also seized in the investigation.

The illegal tobacco bust that was recently uncovered is the second-largest of its kind since 2022. Image source: South China Morning Post.

Lin Weijie, senior investigator at the Customs and Excise Department's Investigation Bureau, has stated that many of the seized brands are popular overseas but not commonly found locally. This, he suggests, may be due to inflation in other countries resulting in an increase in the price of tobacco.

He said that smuggling groups illegally imported various overseas brands into Hong Kong, repackaged them, and then profited from the price difference and tax evasion by transporting them by air or sea to other countries. He estimated that about 30% of the goods would be shipped to overseas markets.

He stated that with the relaxation of COVID-19 measures and the increase in foot traffic, there has been a slight increase in demand for illicit cigarettes on the market.

He added that with the approaching Christmas and New Year holidays, smuggling groups are taking advantage of the opportunity to increase the supply of these products, to meet the demand of local or overseas markets.

Lin Weijie stated that investigators will be examining whether the recently seized 20 million cigarettes are related to the 20 million cigarettes found on Thursday, which were hidden in hollowed-out books, speakers, and transformer boxes, and intended for export overseas. They are conducting an investigation to trace the source and distribution of illegal cigarettes and may make further arrests of people involved in the case.

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