ENG-2004 — Page 417

Public Order | 355

independent body comprising members appointed by the Chief Executive. It has a chairman, three vice-chairmen and 14 other members. The Ombudsman or her representative serves as an ex officio member.

During the year, the IPCC endorsed the investigation results of 3 299 complaint. cases, involving 5 837 allegations. The number of IPCC Lay Observers rose to around 70. The Lay Observers could attend CAPO interviews and site visits on a scheduled or surprise basis to ensure that investigations were conducted in a thorough and impartial manner. The IPCC continued to launch publicity programmes such as talks for secondary school students to promote public awareness of the operation of the police complaints system and the role played by the IPCC.

Customs and Excise

The Customs and Excise Department is primarily responsible for the collection of revenue on dutiable goods and the prevention of its evasion, the suppression of narcotics trafficking and abuse of narcotic drugs, the prevention and detection of smuggling, and the protection of intellectual property rights. It has an establishment of 4 947. The department also enforces legislation to protect consumer interests, safeguard and facilitate legitimate trade and industry, uphold Hong Kong's trading integrity and fulfil the relevant international obligations (See also Chapter 5).

Revenue Collection

The department is responsible for the collection of excise duties derived from dutiable commodities stipulated in the Dutiable Commodities Ordinance. These are liquors, tobacco, hydrocarbon oil and methyl alcohol. During the year, the excise duties collected amounted to $6.54 billion, of which 52.6 per cent came from hydrocarbon oil, 35.0 per cent from tobacco, 12.4 per cent from liquors and 0.1 per cent from other alcohol products, representing an increase of 0.9 per cent over 2003.

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 2004, the department registered 60 motor traders and assessed the provisional taxable value on 43 768 vehicles.

Revenue Control

Dutiable commodities in Hong Kong are stored in warehouses licensed by the department (bonded warehouses) after import or local manufacture. Removal of dutiable commodities is subject to a permit being issued by the department, and the commodities can only be released for local consumption upon payment of duty.

Before April 1, 2003, the bonded warehouses for dutiable liquor and tobacco operated under the physical supervision of the department while the oil companies' and breweries' warehouses adopted the open system whereby no physical supervision by the department was necessary. In February 2003, the Legislative Council passed legislative amendments proposed by the Government to phase out the physical supervision requirement with an open system, based on risk management strategies including stricter licensing criteria, random checking, documentary verification and post-transaction auditing. The open bond system was implemented with respect to all