General enforcement scenario
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In 2022, a complete of seven 148 circumstances had been detected, 8 per cent fewer than in 2021. About 48 per cent of the circumstances are associated to illicit cigarettes, adopted by circumstances associated to harmful medication and mental property rights infringement.
Harmful medication
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In 2022, 931 drug circumstances had been detected, which was a 3 per cent improve from the 2021 determine. A complete seizure of about 6.9 tonnes of medicine was made, representing a surge of 70 per cent from 2021.
Main seizures in amount order had been methamphetamine (“Ice”) (3 127.2 kilograms, a 1.5-fold improve), cocaine (1 016.3kg, a rise of 17 per cent), hashish (807.8kg, a rise of 4 per cent), ketamine (638.5kg, a rise of 6 per cent) and ecstasy (367 966 tablets, a rise of 48 per cent), whereas the entire heroin seizure fell 49 per cent to 91.6kg in comparison with 2021’s determine.
The pandemic has modified the development and mode of drug trafficking. As transnational drug cartels are extremely organised and collude amongst themselves, drug trafficking actions have develop into extra internationalised and cartelised. In consequence, there’s a important improve within the variety of main circumstances by sea or by air detected in recent times, with “Ice” and cocaine being the dominant ones. Hong Kong is just not alone on this regard as your complete Asia-Pacific area is going through the identical problem. Regional legislation enforcement co-operation is especially essential to successfully fight drug trafficking actions.
Smuggling
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A complete of 226 smuggling circumstances had been detected final 12 months, representing a lower of three per cent from 2021. The overall seizure worth dropped 44 per cent to $1.319 billion.
Mainland-Hong Kong circumstances accounted for round 86 per cent of the entire quantity, a drop of 11 per cent from 2021. The overall worth of the products seized additionally dropped 52 per cent from 2.234 billion in 2021 to $1.064 billion in 2022. Among the many objects smuggled from Hong Kong to the Mainland, electrical and digital merchandise (together with cellphones, computer systems and equipment) had been the most well-liked seizure, adopted by meals after which meat.
The development of smuggling between the Mainland and Hong Kong continued to alter through the epidemic, from the usage of high-powered speedboats for smuggling in 2020 to fishing boats and barges in 2021. Underneath the stringent enforcement actions by legislation enforcement businesses, smuggling syndicates switched to make use of river commerce vessels in 2022. After Customs has consecutively detected river commerce vessel smuggling circumstances, the smuggling syndicates modified the smuggling route once more and smuggled items to Macao after which to the Mainland by parallel merchants. On the finish of final 12 months, Customs discovered that the smuggling syndicates used ocean-going vessels at a better value to smuggle items to extra distant Mainland ports similar to Shanghai and Tianjin, after which transhipped the products to Guangdong. Guangdong, Hong Kong and Macao Customs have been adopting a real-time notification mechanism to strengthen communication and share case data, thereby enabling customs officers of the three locations to maintain abreast of the ever-changing smuggling tendencies after which alter their fight methods extra successfully.
Illicit cigarettes
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On the anti-illicit cigarette operation entrance, the variety of detected circumstances in 2022 dropped 14 per cent to three 436 circumstances from 2021, with 732 million cigarettes seized, representing a 71 per cent important surge as in comparison with 2021’s determine. The quantity of seizure in 2022 has reached a document excessive of the annual seizure quantities.
As a result of epidemic, the tightened world provide chain has led to delays in transportation and will increase in prices. Due to this fact, illicit cigarette syndicates tended to smuggle a lot of illicit cigarettes into Hong Kong by sea every time and improve the inventory of illicit cigarettes to stabilise the provision. Customs’ legislation enforcement technique of strengthening intelligence evaluation and tackling at supply has proved to be efficient. Customs has repeatedly intercepted smuggling syndicates once they replenished their provide, leading to a document excessive within the variety of illicit cigarettes seized final 12 months. Twenty-eight in-bound mega circumstances (these involving 500 000 cigarettes or above) had been detected final 12 months, which was a rise by 1.3 instances in comparison with 2021, ensuing within the seizure of about 585 million cigarettes.
Mental property rights
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Customs detected 523 mental property rights infringement circumstances final 12 months, representing annual decreases of 27 per cent. The variety of infringing objects seized elevated by 9 per cent to 640 000 whereas the seizure worth was round $180 million as in comparison with 2021’s determine.
As for Web infringement, 80 circumstances had been detected (constituting 15 per cent of the entire infringing circumstances), representing a lower of 26 per cent from 2021. The seizure worth of the infringing objects dropped by 22 per cent to about $5.08 million (9 060 objects). The circumstances primarily concerned sale of counterfeit items by way of on-line neighborhood market (74 per cent) or social media platforms (20 per cent).
Shopper safety
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Customs final 12 months obtained 6 075 complaints relating to suspected circumstances of violating the Commerce Descriptions Ordinance (TDO), representing a lower of 13 per cent from 2021. Amongst them, 5 547 complaints had been dealt with:
(i) With regard to 2 298 complaints, a complete of 107 investigation circumstances had been made after consolidation, primarily involving allegations of false commerce description, wrongly accepting fee and deceptive omission;
(ii) The remaining 3 249 complaints have been closed since they weren’t in contravention of the TDO, or have been referred to different related legislation enforcement businesses (such because the Police) or businesses for follow-up actions.
Prior to now, Customs obtained many complaints about pay as you go consumption in health centres and wonder parlours, particularly these involving aggressive industrial practices. As Customs continues to strengthen legislation enforcement and the courts impose corresponding penalties on severe circumstances, the variety of complaints obtained by Customs final 12 months involving aggressive industrial practices in health and wonder companies has dropped considerably, from 140 complaints in 2021 to 82 complaints final 12 months, leading to a drop of about 41 per cent.
As for tourism business, with the relief of the inbound and outbound epidemic prevention management measures in Hong Kong and abroad within the second half of 2022, outbound journey actions by the general public have elevated. The variety of reviews obtained by Customs final 12 months on journey companies additionally elevated from 173 in 2021 to 232 final 12 months, representing a rise of about 34 per cent. The reviews primarily concerned journey company companies similar to journey membership membership and resort and air ticket reservations. Because the tourism business step by step returns to regular, Customs will intently monitor complaints about journey companies, overview the development of unfair commerce practices and formulate acceptable measures to guard the rights of shoppers.
Aside from taking mandatory and well timed enforcement actions, Customs can also be dedicated to driving publicity to boost shopper consciousness of the TDO. As well as, Customs took precautions by taking the initiative to hold out publicity in newly accomplished public housing estates by distributing leaflets to remind members of the general public to concentrate to the widespread unfair commerce practices within the renovation business in addition to merchants to adjust to the necessities of the TDO.
Good Customs
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Good Customs achieved good progress final 12 months. Customs has launched extra superior gear with auto-detection perform to enhance the effectivity and accuracy of detection of contraband on one hand, and to hurry up customs clearance of passengers and items at boundary management factors however. Customs additionally developed an interactive Q&As system final 12 months, together with the availability of digital Customs Service Ambassadors at numerous management factors, and the introduction of an internet chatbot to the Customs web site, in order to supply immediate, correct and constant solutions to public enquiries. Customs has additionally accomplished the examine on the Good Proof Administration System to additional streamline the management and safety of seized objects throughout deposit, storage and retrieval.
Commerce facilitation
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The Nationwide 14th 5-12 months Plan clearly helps Hong Kong to boost its function as a global maritime centre and worldwide aviation hub. The Define Improvement Plan for the Guangdong-Hong Kong-Macao Larger Bay Space (GBA) additionally clearly states Hong Kong’s key function within the GBA logistics chain.
(1) Hong Kong Customs actively co-operates with the Authorities to develop intermodal operation. Concerning the establishing of the Hong Kong Worldwide Airport Logistics Park by the Airport Authority Hong Kong in Dongguan, export cargo from the Mainland can undergo procedures, together with customs clearance, safety screening, palletisation and cargo acceptance, prematurely within the logistics park, after which be transported by sea to the cargo pier on the airside of Hong Kong Worldwide Airport for direct transhipment to abroad locations. Hong Kong Customs has been offering facilitation measures for customs clearance and a set of tailored new customs clearance procedures for related plans, which permit diminished inspection below an efficient threat management, in order to avoid wasting value and promote logistics collaboration between Hong Kong and the Mainland;
(2) The Hong Kong Licensed Financial Operator (AEO) Programme launched by Hong Kong Customs, which was aimed to boost cargo safety and supply clearance facilitation to the accredited operators, has additionally made good progress prior to now 12 months.
A memorandum of understanding between Hong Kong Customs and the Mainland Customs was signed final 12 months to boost AEO co-operation within the GBA and optimise the advice and processing of AEO functions, publicity and personnel coaching by Hong Kong and the Mainland Customs. Additionally, Hong Kong and Indonesia Customs signed an AEO Mutual Recognition Association (MRA) final 12 months, bringing the entire variety of MRA signed between Hong Kong and different Customs administrations to 13, additional increasing the protection of the Hong Kong MRA community. It helps to assist the Authorities’s efforts to encourage enterprises to grab new alternatives led to by the Belt and Highway Initiative and the GBA improvement.
(3) The Commerce Single Window permits merchants concerned in cross-border commerce and logistics to submit paperwork to the Authorities by way of a single entrance, enhancing the effectivity of customs clearance of products. Part 1 is now absolutely operational and properly obtained by the business. Part 2 will cowl some 28 further kinds of commerce paperwork. It’s deliberate to roll out in phases ranging from mid-2023. The preparatory work for the IT system of Part 3 has additionally commenced.
Human sources
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In regard to recruitment, about 75 Customs Inspectors had been recruited by way of open recruitment and in-service appointment final 12 months. The primary batch of newly recruited Inspectors have began their induction coaching in February 2023. Furthermore, 85 Customs Officers had been recruited by way of the all-year-round recruitment train. In an effort to refill the retirement vacancies and supply manpower for different companies to satisfy the division’s work and improvement wants, about 90 Customs Inspectors and 170 Customs Officers will probably be recruited in 2023. A brand new recruitment spherical for Customs Inspectors will probably be opened for software within the second quarter of 2023.
In an effort to deepen the understanding of newly recruited Inspectors concerning the operation and newest improvement of the Mainland Customs, nationwide safety and nationwide affairs, the division will prepare the primary batch of Inspectors, who’re receiving induction coaching, to attend a examine and trade programme on the Shanghai Customs Faculty on the finish of this month. The related preparations will develop into a daily a part of the Inspector Induction Course.
Means ahead
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Hong Kong Customs actively dovetails with the Authorities to totally leverage the distinctive benefits of having fun with sturdy assist of the motherland and being intently related to the world below “one nation, two methods”.
(1) Hong Kong grew to become a member of the World Customs Group (WCO) in 1987 and has been collaborating within the WCO actions and regional occasions. Hong Kong Customs will probably be extra proactive sooner or later and can try to play a extra essential function within the WCO to carry out its enhanced roles as “promoter” and “facilitator” in full scale. The division can even spare no effort in elevating the voice of the nation and Hong Kong within the WCO, telling good tales of the nation and Hong Kong, safeguarding multilateralism, selling worldwide co-operation, and enhancing effectiveness in regional legislation enforcement.
(2) Hong Kong Customs will signal a Memorandum of Understanding with the WCO this 12 months to arrange a Regional Canine Coaching Centre in Hong Kong. The division will organise various kinds of coaching programs, workshops and seminars associated to detector canines for members within the Asia-Pacific area of the WCO. By means of strengthening co-operation and experience-sharing with members within the area, Hong Kong Customs will be capable of additional improve the division’s professionalism in detector canine dealing with coaching and to ascertain the division’s worldwide recognition within the discipline of detector canines.
(3) Hong Kong Customs implements the essence of the twentieth Nationwide Congress of the Communist Occasion of China and insists on selling high-level opening up. The division absolutely promotes mutual recognition of AEOs with an emphasis on collectively constructing the Belt and Highway international locations and areas, making the co-operation between AEOs develop into a stable community of co-operative bond. This may assist Hong Kong enterprises “go world” to discover worldwide markets, increase the extent of facilitation of overseas commerce, and contribute in enhancing Hong Kong’s standing as a global commerce centre.
(4) Hong Kong Customs additionally plans to bolster the intermodal operations with a view to totally utilising the infrastructure and transport community of Hong Kong Worldwide Airport and the Hong Kong-Zhuhai-Macao Bridge and to leveraging Hong Kong’s strengths in dealing with high-value items to advertise the event of high-end and excessive value-added logistics companies, such because the processing of chilly chain items, contemporary meals and prescribed drugs. The division is in excessive gear to discover a pilot scheme for creating a devoted specific route for air-land contemporary and stay merchandise and can provoke a examine and dialogue with the Mainland Customs.
(5) Because the Basic Administration of Customs of the Individuals’s Republic of China (GACC) has launched the Good Customs, Good Borders and Good Connectivity (3S) Initiative, with good building as core of the initiative, Hong Kong Customs has proven full assist and put ahead the Good Customs Blueprint to deliver it consistent with the 3S Initiative. The division has invested considerably in creating know-how similar to synthetic intelligence, blockchain, cloud computing and massive information analytics to attain built-in good customs by way of innovation and know-how. The division hopes to place extra give attention to selling cross-border collaboration between the Mainland and Hong Kong Customs to assist improve the connectivity.
Hong Kong Customs will signal agreements with the GACC this 12 months to start co-operation within the 3S Initiative. The initiative carries nice significance and performs an essential function for the Mainland and Hong Kong Customs to start sensible co-operation with good building as the idea and to attain the unity of “supervision and repair” and “security and facilitation”. Additionally it is a serious key for Hong Kong Customs to contribute to the event of the Guangdong-Hong Kong-Macao Larger Bay Space.
Copyright (Modification) Ordinance 2022 preparatory work
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The Authorities printed within the Gazette that the Copyright (Modification) Ordinance 2022 will come into operation on Might 1. The Modification Ordinance goals to replace Hong Kong’s copyright regime to strengthen copyright safety within the digital surroundings.
To successfully fight unauthorised communication of copyright works, Hong Kong Customs has began the associated preparatory works, together with commissioning native universities to analysis on illicit streaming actions, creating evidence-gathering and evaluation methods for illicit streaming and strengthening Customs officers’ capabilities in conducting on-line investigation and processing digital proof. Hong Kong Customs will work intently with the Commerce and Financial Improvement Bureau and the Mental Property Division to launch a collection of preparatory work, together with publicity, training and coaching, to boost public consciousness of the brand new provisions after the modification. The division can even strengthen in-house coaching to arrange for enforcement work sooner or later.
Sellers in Treasured Metals and Stones Registration Regime
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The Anti-Cash Laundering and Counter-Terrorist Financing (Modification) Invoice 2022, which reinforces Hong Kong’s standing as a global monetary centre by enhancing Hong Kong’s regulatory regime for combating cash laundering and terrorist financing, has been handed on December 7 final 12 months. The Sellers in Treasured Metals and Stones Registration Regime will come into pressure on April 1 this 12 months. Any one who is in search of to hold on a enterprise of dealing in treasured metals and stones in Hong Kong and have interaction in transactions at or above HK$120,000 (money or non-cash) is required to register with the Commissioner of Customs and Excise. As such, Hong Kong Customs has arrange the Sellers in Treasured Metals and Stones Supervision Bureau and developed a registration system of sellers in treasured metals and stones to supply on-line registration. Along with a quicker registration course of, the system additionally has administration, verification and evaluation features. Customs will launch the publicity work in full swing to make sure a greater understanding of the Ordinance by associated sellers and individuals in addition to a easy operation of the registration regime.
Conclusion
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Concluding her briefing, Ms Ho mentioned that 2023 will probably be a particular and extraordinary 12 months for Hong Kong Customs. She pledged that the division would preserve its unity with the aim of enhancing connectivity in direction of safety and prosperity. Customs will proceed to proactively preserve in depth ties with totally different international locations and worldwide enforcement businesses, try to protect the frontline of customs clearance, enhance the effectiveness of legislation enforcement, and preserve nationwide safety.
Ends/Wednesday, March 1, 2023
Issued at HKT 19:08
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