ENG-2012 — Page 329

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Public Order

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 2011-12, the excise duties collected amounted to $7.72 billion, of which 54.5 per cent was from tobacco, 40.7 per cent from hydrocarbon oil, 4.7 per cent from liquor and 0.1 per cent from methyl alcohol and other alcohol products, representing a total increase of 2.3 per cent over 2010-11.

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 2012, the department registered 123 motor traders, assessed the provisional taxable value on 60,609 vehicles and re-assessed 17,057 of them, resulting in the collection of $7.55 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. In April, a Telephone Order Task Unit comprising 15 officers was established, in particular to conduct intelligence analysis and law enforcement against peddling via telephone orders and online sale of illicit cigarettes. In 2012, there were 2,242 cases involving smuggling, storage, distribution and peddling of illicit cigarettes, a decrease of 9.5 per cent compared with 2011. A total of 72.5 million sticks of illicit cigarettes were seized.

In 2012, 8,668 people were fined under the Compounding Scheme for abuse of duty-free cigarette concessions, an increase of 30.7 per cent compared with 2011, involving 3.2 million sticks of cigarettes.

The department continued co-operating with overseas customs administrations to stamp out transnational cigarette smuggling. In 2012, by monitoring suspicious shipments and through intelligence exchange, the department's efforts led to the seizure of 9.3 million sticks of illicit cigarettes by overseas enforcement authorities.

The department took sustained action to stamp out illicit fuel activities. In 2012, it solved 189 illicit fuel cases, arrested 210 people and seized 0.27 million litres of illicit fuel. The number of seizures was 17 per cent less than that of 2011.

Anti-narcotics Operations

The department continues to take vigorous enforcement action to prevent and suppress the unlawful manufacture, distribution and trafficking of dangerous drugs; to trace, confiscate and recover drug proceeds from illegal drug activities; and to prevent the diversion of chemicals

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