328 Public Order
Customs and Excise
The Customs and Excise Department is responsible primarily for the collection. of revenue on dutiable goods, prevention of duty evasion, suppression of drug trafficking and abuse, prevention and detection of smuggling of contraband, and protection of intellectual property rights. The department also enforces legislation to protect consumer interests, safeguard and facilitate legitimate trade and industry, uphold Hong Kong's trading integrity and fulfil relevant international obligations. At year-end, it had an establishment of about 5 582 staff. (See also Chapter 5).
Revenue Collection
The Customs and Excise Department is responsible for the collection of excise duties derived from dutiable commodities stipulated in the Dutiable Commodities Ordinance: liquor, tobacco, hydrocarbon oil and methyl alcohol. During the financial year 2010-11, the excise duties collected amounted to $7.55 billion, of which 55.9 per cent was from tobacco, 40.1 per cent from hydrocarbon oil, 3.9 per cent from liquor and 0.1 per cent from methyl alcohol and other alcohol products, representing a total increase of 16.9 per cent over 2009-10.
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 2011, the department registered 132 motor traders, assessed the provisional taxable value on 63 707 vehicles and re-assessed 16 722 of them, resulting in the collection of $7.41 billion first registration tax by the Transport Department.
Revenue Control
The department administers a licensing and permit system to control the manufacture, import, export, storage and movement of dutiable commodities. It ensures that no dutiable commodities, whether imported or locally manufactured, are released for local consumption unless full duty has been paid.
Revenue Protection
The department has stepped up enforcement actions to suppress illicit cigarette activities following the new limits on tobacco products brought into Hong Kong since August 2010 and the increase of tobacco duty since February 2011. In 2011, there were 2 425 cases involving smuggling, storage, distribution and peddling of illicit cigarettes, an increase of 12 per cent compared with 2010. A total of 103 million sticks of illicit cigarettes was seized.
In 2011, 6 681 people were fined under the Compounding Scheme for abuse of duty-free cigarette concessions, an increase of 61 per cent compared with 2010, involving 2.7 million sticks of cigarettes.
The department continued co-operating with overseas customs administrations to stamp out transnational cigarette smuggling. In 2011, by monitoring suspicious shipments and through intelligence exchange, the department's efforts led to the seizure of 56.28 million sticks of illicit cigarettes by overseas enforcement authorities.