CONFIDENTIAL
XCCI(92)
BACKGROUND
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Smuggling between Hong Kong and China has a long history. It has increased dramatically in recent years as the demand for luxury goods on the mainland has grown. The most popular items are cigarettes, electrical appliances and vehicles.
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The favoured method of transportation has been by sea, initially by fishing vessel and now additionally by high powered speedboats.
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Speedboats fall into two general categories. Medium sized (20- 25 feet) "chung feis" powered by two engines up to 300 hp each and larger (35-40 feet) “daai feis" powered by four to six engines of up to 300 hp each. Both can travel at speeds up to 70 knots. Estimates of the volume of goods smuggled is based upon known factors such as the number of speedboats, or Fast Moving Targets (FMT) sightings, business records of electrical appliance companies and seizures in individual cases.
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The start of 1990 saw increased smuggling activities and by the year's end there were on average 700 FMT sightings per month compared with 386 in April 1992.
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In mid-1990, additional licensing conditions were imposed by the Director of Marine on suspected targetted speedboats identified by the Marine Police. The use of multiple outboard engines exceeding 600 hp and fuel tanks larger than 180 gallons were effectively prohibited. Restrictions were imposed on the use of high powered speed boats between sunset and sunrise and a ban was introduced preventing cigarettes from being carried on ships under 250 tonnes. The Marine Police established an Anti-Smuggling Unit to collate intelligence and formulate strategy.
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Subsequently, cigarette smuggling virtually ceased, but the smuggling of electrical appliances continued throughout 1990 and was accompanied by the emergence of a new trend, the smuggling of stolen vehicles.
Executive Council
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