Hong Kong authorities have confiscated over 6 million suspected illicit cigarettes and heated tobacco devices, valued at more than HK$29 million ($3.7 million), in two separate operations, officials announced on Friday.
According to customs officials, the confiscated tobacco products were from a brand that is not widely known in Hong Kong. They estimated the market value at approximately HK$28 million, with a duty potential of HK$19 million. In China, heated tobacco sticks are considered the same aa traditional cigarettes.
“It is believed that the products would later have been exported to other countries. But we do not rule out the possibility that some might have got into the local illicit cigarette market for sale,” said Chan Sing-lung, a senior investigator from the Revenue Crimes Investigation Bureau.
In a separate Friday morning operation, customs officers seized 90,000 tobacco products and 110,000 heated tobacco products.
A 36-year-old mainland man was intercepted in Tin Shui Wai, with officers discovering 60,000 heated tobacco products in his truck. Upon searching his hotel room, authorities found an additional 140,000 untaxed traditional cigarettes from Japan and heated tobacco products, along with a large number of empty Japanese duty-free bags. The total value of these seized goods was HK$1.1 million, with an estimated duty loss of HK$310,000.
Customs officials believe the operation was part of a smuggling network using air passengers to bring illicit tobacco into Hong Kong, storing the products in hotel rooms before distributing them.
“Our investigation shows the group took advantage of air passengers to bring illicit tobacco products into the city, store them in hotel rooms, and then distribute them to customers,” said Wong Wing-yuen, a senior investigator with the Customs and Excise Department.
Authorities have increased enforcement at the airport after noticing this growing trend. Over the past two weeks, customs arrested 13 men and eight women, mostly mainland China tourists traveling from Japan, in connection with 20 cases involving 600,000 untaxed cigarettes and 240,000 alternative tobacco products. The total market value of these seizures was HK$4 million, with a potential duty loss of HK$2 million.
“Customs believes that the trial has had a deterrent effect and reflects the seriousness of the crime. We urge visitors to Hong Kong not to engage in smuggling activities for financial gain,” Wong added, advising hotels and residents to report any suspicious individuals frequently carrying large suitcases in and out of rooms, according to media reports.
Hong Kong has raised its tobacco tax significantly in recent years. In last year’s budget, the duty increased by 80 HK cents per cigarette, pushing the price of a pack of 20 cigarettes to over HK$90, with tax accounting for HK$66 of the total cost.
Among last year’s untaxed cigarette seizures, nearly 93% (19,702 cases) involved passengers carrying more than the permitted duty-free limit and failing to declare the excess at customs checkpoints.
