PUBLIC ORDER
no fewer than eight non-official Members, with the Ombudsman, or his representative, serving as an ex officio member.
During the year, the council endorsed 3419 complaint investigations and interviewed 11 witnesses in seven selected cases. Members participated in 26 scheduled and surprise visits to observe CAPO investigations under a trial IPCC Observers Scheme introduced in April 1996.
A review of CAPO's procedures and a comparative study of the police complaints systems in selected overseas jurisdictions were completed during the year. The associated recommendations to improve the police complaints system in Hong Kong will be implemented in phases.
Customs and Excise
The Customs and Excise Department is primarily responsible for the collection of revenue and the prevention of revenue evasion on dutiable goods, the suppression of illicit trafficking in narcotics, the prevention and detection of smuggling, and the protection of intellectual property rights. It has an establishment of 4 273.
The department is also responsible for enforcing legislation to safeguard the integrity of Hong Kong's trade (see also Chapter 7).
Revenue Collection
The department collects revenue from four categories of dutiable commodities: alcoholic beverages, tobacco, hydrocarbon oil and methyl alcohol. In 1996, the department collected $8.15 billion in revenue from dutiable commodities, compared with $7,788 million in 1995, an increase of $362 million.
The department also assesses the taxable values of motor vehicles under the Motor Vehicles (First Registration Tax) Ordinance for the purpose of levying first registration tax. In 1996, the Motor Vehicles Valuation Group registered a total of 65 motor traders and assessed the provisional taxable value on 40 498 vehicles.
Prevention of Revenue Evasion
Cigarette smuggling continued to be a major target of the department's enforcement action. In 1996, the department processed a total of 19 676 cases and seized 406 million cigarettes with a duty potential of $272 million.
The Anti-Cigarette Smuggling Task Force established in 1994 continued to take effective action against cigarette smuggling. Seizures made by the Task Force accounted for 77 per cent of the total cigarette seizure in 1996. In August, the Task Force detected Hong Kong's second-largest cigarette smuggling case and seized 97 million cigarettes with a retail value of $126 million. The department also maintained close liaison with the tobacco industry and launched a reward scheme to encourage information from the public about cigarette smuggling. Close contacts were maintained with local and overseas enforcement agencies for the exchange of intelligence on cigarette smuggling activities.
The illegal use of industrial diesel oil by road vehicles and the unauthorised removal of markers and colouring substances from industrial diesel oil are also major targets of the department's enforcement action. A Diesel Oil Enforcement Division was set up in May 1996. Its main task is to investigate syndicates involved in illegal activities
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