ENG-1998 — Page 369

PUBLIC ORDER

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 1998, the department registered a total of 56 motor traders and assessed the provisional taxable value on 47 033 vehicles.

Revenue Protection

Cigarette smuggling continued to cause concern in 1998 because of the differential in the retail price between the HKSAR and neighbouring places including the Mainland. During the year, the department prosecuted 1 635 cigarette cases and seized 104.6 million cigarettes with a duty potential of $79.7 million.

The illegal use of industrial diesel oil (marked oil) and decolourised marked oil as fuel for vehicles was contained in 1998. However, the smuggling of diesel oil from the Mainland emerged as a major concern. This was mainly because of the price. disparities. In July, a new trend emerged when an oil tanker was caught relanding duty-free diesel oil which had been declared for export. Similar occurrences have led to increased vigilance to curb this activity.

In 1998, the department neutralised 16 illicit oil detreating plants and 377 illicit refuelling stations. Seizure of diesel oil rose from 2.2 million litres in 818 cases in 1997 to 5.1 million litres in 656 cases in 1998. The duty potential of the seized diesel oil in 1998 amounted to $11.5 million.

Anti-narcotics Operations

The department continued to take vigorous action to prevent and suppress unlawful trafficking in dangerous drugs and their manufacture and distribution. It also enforced the Control of Chemicals Ordinance, which aims at preventing the diversion of chemicals for the illicit manufacture of dangerous drugs and psychotropic substances.

The Customs Drug Investigation Bureau is the department's major investigative arm. Its main functions are to conduct investigations and surveillance in cases involving illegal trafficking or use of drugs. The department worked closely with the Hong Kong Police Force, various provincial public security bureaux of the Mainland, and overseas drug enforcement agencies in the exchange of intelligence and in the arrest of drug criminals.

In 1998, the department cracked 15 major trafficking cases, and neutralised three heroin attenuating and 15 distribution centres. Officers seized 47.5 kilograms of heroin, 94.4 kilograms of cannabis, 1.1 kilograms of raw opium, 1 kilogram of prepared opium, 166.3 kilograms of cocaine, 17.9 kilograms of methamphetamine and 71 153 tablets of other psychotropic drugs. In all, 824 persons were arrested for drug-related offences. The department had several successes in preventing the diversion of controlled chemicals at the international level involving 18 000 kilograms of chemicals.

During the year, the department confiscated assets worth $150,000 derived from drug trafficking and conducted 646 investigations into money laundering. Drug- related assets worth $420,000 were retained as exhibits pending restraint action.

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