Hong Kong Customs said it broke up six suspected illicit-cigarette storage sites across the city on 1 September, seizing about 11.3 million cigarettes and arresting eight people. The cigarettes had an estimated market value of HK$50.8 million and an estimated dutiable value of HK$37.35 million.
The largest disclosed seizure was at a concealed metal shed in Hung Shui Kiu, Yuen Long, where officers found about 4.68 million suspected duty-unpaid cigarettes. A 57-year-old local man who reportedly works in transport was arrested. The cigarettes were estimated to be worth HK$21.17 million, with a dutiable value of HK$15.49 million.
The shed covered about 4,000 square feet and had only one access road. Customs said it was almost sealed and located near a recycling yard, factors that made detection more difficult.
At a logistics site in Chek Lap Kok, officers found 1.6 million cigarettes and arrested two Chinese men aged 40 and 30 near suspicious cigarette cartons. Both were reportedly unemployed. Customs believes they may have helped send the cigarettes overseas.
A follow-up search at an industrial building unit in Tsuen Wan found a further 760,000 cigarettes, and a 34-year-old local man who reportedly works as a driver was arrested. The linked case involved 2.36 million cigarettes in total, estimated to have a market value of HK$10.62 million and a dutiable value of HK$7.8 million. Customs suspects the Tsuen Wan unit was used for storage and repackaging, and believes the cigarettes may have been intended for export.
Customs believes some of the seized cigarettes may have been repackaged for export to places with higher tobacco taxes, while it has not ruled out some entering the local market. Reports did not provide details of the other four storage sites or say whether the eight arrests had led to charges. The cigarettes’ source and intended destinations have also not been publicly detailed.