ENG-2001 — Page 405

PUBLIC ORDER

clearance arrangements have also been provided to facilitate the operation of the new Marine Cargo Terminal at the airport for processing air-sea intermodal transhipment cargo to and from the Pearl River Delta in the Mainland since April. The first logistics centre at the airport is scheduled to commence operation in 2003. New measures to facilitate the cargo flow at the new centre are under active consideration.

The department has been preparing for the provision of customs services at the Container Terminal No. 9, being constructed on the south-eastern shore of Tsing Yi Island. Customs facilities and services will be ready when the first berth comes into operation, expected in the fourth quarter of 2002.

Smuggling

In 2001, the department detected 187 smuggling offences, arrested 196 persons and seized contraband goods worth $507.5 million. Smuggling between Hong Kong and the Mainland remained a cause for concern and is under close scrutiny by the Customs.

Goods commonly smuggled to the Mainland included vehicles, vehicle spare parts, electrical appliances, computer parts, marked oil, optical discs and vegetable oil. In 2001, two left-hand drive vehicles and 183 dismantled vehicles were seized. Smuggling of marked oil to the Mainland was less rampant during the year, and only 0.7 million litres were seized compared with 2.9 million litres in 2000. Smuggling of electrical appliances recorded an upward trend. The total value of such goods seized increased from $15.13 million in 2000 to $31.24 million in 2001.

Cigarettes and frozen meat were the main items being smuggled into Hong Kong. Hong Kong continued to be exploited as a transit point for the smuggling of counterfeit cigarettes but the situation had improved when compared with 2000. Altogether, officers seized 151.9 million counterfeit cigarettes originating in the Mainland. These were believed to be destined for other countries. The total quantity of frozen meat seized was 155 165 kilograms, compared with 301 064 kilograms in 2000.

The capability of the department in curbing smuggling by using cargo containers and lorries, especially those with false compartments, has been much enhanced since the procurement of two sets of a hi-tech Mobile X-ray Vehicle Scanning System in August. This equipment has been deployed for use at the boundary control points and the container terminals to reinforce customs control.

A Special Unit under the department's Ship Search and Cargo Command, comprising 19 Customs Officers, was established in February to step up action against smuggling by means of river trading vessels mainly from the Pearl River Delta. Officers conducted surprise checks at cargo handling basins located along the coastlines.

The Customs continued to maintain close liaison with the Police Force and overseas law enforcement agencies in exchanging intelligence and this contributed considerably to the successful interdiction of smuggling activities. Enhanced co- operation with the Mainland authorities in exchanging information and mounting parallel operations at the land boundary crossing points continued to produce satisfactory results.

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