Hong Kong Customs Seizes $180 Million Worth of Smuggled Cigarettes

Nov.23.2022
Hong Kong Customs Seizes $180 Million Worth of Smuggled Cigarettes
Hong Kong customs officials seize 64 million worth of black market cigarettes and arrest three suspects.

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.


Statement:


This article is compiled from third-party information and is intended solely for industry exchange and learning.


This article does not represent the views of 2FIRSTS, and 2FIRSTS cannot confirm the truthfulness or accuracy of the contents. The translation of this article is solely intended for internal industry discussion and research.


Due to limitations in the level of translation proficiency, the translated article may not fully reflect the original text. Please refer to the original text for accuracy.


2FIRSTS is fully aligned with the Chinese government's stance and position on any expressions or viewpoints concerning domestic issues, matters pertaining to Hong Kong, Macau and Taiwan, and those involving foreign affairs.


The copyright of compiled information belongs to the original media and author. If there is any infringement, please contact us for deletion.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Why AIRSCREAM Built its European Production Hub for Regulated Market Growth
Why AIRSCREAM Built its European Production Hub for Regulated Market Growth
AIRSCREAM’s production hub in the Czech Republic brings nicotine pouch manufacturing, e-liquid bottling, product documentation, warehousing and international logistics into one operation, giving brands and commercial partners a practical platform from which to launch, expand and enter new markets.
Market
Sep.16 by 2Firsts Perspectives
Australian Coalition Unveils Illicit Tobacco Plan With 80% Excise Cut and Legal, Taxed Vapes and Nicotine Pouches
Australian Coalition Unveils Illicit Tobacco Plan With 80% Excise Cut and Legal, Taxed Vapes and Nicotine Pouches
Australia’s Coalition has unveiled a national illicit-tobacco policy that would cut tobacco excise by 80% and create legal, regulated and taxed adult markets for vaping products and nicotine pouches if it wins government. The plan proposes an excise of A$0.50 per millilitre of e-liquid and A$0.025 per milligram of nicotine in pouches, alongside A$200 million in additional enforcement and a A$60 million three-year public-awareness campaign. The Coalition says the package would narrow the price advantage of illicit products and undermine organised crime, while Labor and public-health groups warn that dramatically cheaper cigarettes could reverse long-term declines in smoking.
Sep.03
2Firsts Data|China’s Vape-Related Exports Rose 3.3% in August 2026 as UK Shipments Jumped 51.4% and U.S. Exports Fell 12.4%
2Firsts Data|China’s Vape-Related Exports Rose 3.3% in August 2026 as UK Shipments Jumped 51.4% and U.S. Exports Fell 12.4%
China exported $979 million of vape-related products in August 2026, up 3.3% from a year earlier but down 6.4% from July. The UK replaced the U.S. as the main source of growth: UK-bound shipments jumped 51.4% to a 2026 high of $177 million, while exports to the U.S. fell 12.4% to $339 million. Shipments to markets outside the U.S. increased 14.2%, broadening growth beyond the market that had driven July’s rebound.
News
Sep.23 by 2Firsts Perspectives
NATO Executive Director David Spross Sees U.S. Vape Regulation Improving, Calls for More PMTA Authorizations and Warns of 2027 State Tax Pressure
NATO Executive Director David Spross Sees U.S. Vape Regulation Improving, Calls for More PMTA Authorizations and Warns of 2027 State Tax Pressure
The National Association of Tobacco Outlets is calling for more FDA marketing authorizations, greater transparency in the PMTA process and continued enforcement against unauthorized e-cigarettes, even as its executive director, David Spross, points to recent regulatory developments as signs of progress. At the state level, excise taxes, flavor restrictions and vapor product directories remain major issues for tobacco retailers. By August 2026, 17 states had enacted laws establishing state-managed e-cigarette directories or similar systems.
Innovation
Sep.29 by 2Firsts Perspectives
German Bundestag Passes Tobacco Tax Hikes: Vape Liquid Duty to Reach €0.44/ml, Heated Tobacco Taxes to Rise and Cigarettes Seen Near €12 a Pack
German Bundestag Passes Tobacco Tax Hikes: Vape Liquid Duty to Reach €0.44/ml, Heated Tobacco Taxes to Rise and Cigarettes Seen Near €12 a Pack
Germany's Bundestag passed amendments to the Tobacco Tax Act on October 15, 2026, setting out annual excise tax increases from 2027 through 2030 for e-cigarette liquids, heated tobacco, cigarettes and other tobacco products. Under the Finance Committee's amended bill, duty on qualifying e-liquids will rise from €0.32/ml in 2026 to €0.44/ml in 2030, an increase of 37.5%. Heated tobacco will retain its tax calculation based on 80% of the corresponding cigarette excise duty. The average price of a 20-cigarette pack is projected to approach €12 by 2030, with some brands potentially reaching €14. The legislation is projected to generate approximately €11.8 billion in additional tax revenue over four years and remains subject to further legislative procedures.
Regulations
Oct.19
Germany Probes 7.6 Million Illegal Vape Case With Estimated €33.3 Million Tax Loss; Four Chinese Manufacturer Employees Under Investigation, Some Packaging in Enforcement Images Resembles FUMOT Products
Germany Probes 7.6 Million Illegal Vape Case With Estimated €33.3 Million Tax Loss; Four Chinese Manufacturer Employees Under Investigation, Some Packaging in Enforcement Images Resembles FUMOT Products
German prosecutors and customs authorities are conducting a criminal investigation into an alleged cross-border organised vape network. Authorities say that between January 2024 and March 2025, four employees of an unnamed Chinese e-cigarette manufacturer allegedly built a network of sales agents and wholesalers that brought more than 7.6 million nicotine disposable vapes into Germany, causing an estimated €33.3 million in excise-tax losses. The manufacturer has not been named. Some products visible in enforcement images have packaging resembling products from FUMOT’s portfolio. European regulatory records from 2024, FUMOT’s public overseas-sales materials and records involving German vape importer and distribution company Zamu-Pro GmbH also show FUMOT/RandM products and German distribution activity during the period covered by the investigation.
Sep.21