ENG-2014 — Page 322

15

Public Order

through other channels such as the visiting Justices of the Peace, the Ombudsman and Legislative Councillors.

Customs and Excise Department

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, its establishment was about 5,958 staff. (See also Chapter 5).

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 2013-14, the excise duties. collected amounted to $9.72 billion, of which 60.1 per cent was from tobacco, 35.5 per cent from hydrocarbon oil, 4.3 per cent from liquor and 0.1 per cent from methyl alcohol and other alcohol products, representing a total increase of 8.3 per cent over 2012-13.

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 2014, the department registered 145 motor traders, assessed the provisional taxable value of 77,690 vehicles and re-assessed 25,944 of them, resulting in the collection of $9.58 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 sustained enforcement action against illicit cigarette activities at all fronts. In 2014, there were 2,034 cases involving smuggling, storage, distribution and peddling of illicit cigarettes (an increase of 0.4 per cent compared with 2013) and 49 million sticks of illicit cigarettes were seized.

In 2014, 9,512 people were fined under the Compounding Scheme for abuse of duty-free cigarette concessions (an increase of 4.1 per cent compared with 2013), involving 3.1 million. sticks of cigarettes.

The department co-operates with overseas customs administrations to stamp out transnational cigarette smuggling, including monitoring suspicious shipments through intelligence exchange with overseas enforcement authorities.

262