ENG-2008 — Page 376

308 Public Order

enhancing the independent status as well as the monitoring function of the IPCC. The IPCC will start operating as a statutory body from June 1, 2009.

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 5 600 staff. (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: liquor, tobacco, hydrocarbon oil and methyl alcohol. During the financial year 2007-08, the excise duties collected amounted to $7.06 billion, of which 47.6 per cent was from hydrocarbon oil, 42.6 per cent from tobacco, 9.7 per cent from liquor and 0.1 per cent from methyl alcohol, representing a total increase of 0.5 per cent over 2006-07.

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 2008, the department registered 79 motor traders, assessed the provisional taxable value on 54 101 vehicles and re-assessed 18 843 of them, resulting in the collection of $5.63 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

In 2008, the department detected 3 705 cases of abuse of duty-free cigarette concessions, involving 1.9 million sticks of cigarettes, representing a decrease of 37 per cent and 16 per cent respectively compared with 2007.

In 2008, a total of 4 660 offenders involved in illicit cigarette activities were arrested and 81 million sticks of illicit cigarettes seized, a decrease of 34 per cent and 32 per cent respectively when compared with 2007.

The department continued co-operating with overseas customs administrations to stamp out transnational cigarette smuggling. In 2008, by monitoring suspicious shipments and through intelligence exchange, the department's effort led to the successful seizure of 69.6 million sticks of illicit cigarettes and 1 300 kilogrammes of manufactured tobacco by overseas enforcement authorities.