31st October 2024 – (Hong Kong) Hong Kong Customs has dismantled an underground cigarette factory in Tuen Mun, seizing approximately 3.3 million suspected illicit cigarettes and around 1,100 kilograms of duty-not-paid manufactured tobacco. The total estimated market value of the seized items stands at about HK$22 million, with a potential duty loss of approximately HK$15 million.
On October 29, following intelligence analysis, Customs officials identified a unit within an industrial building in Tuen Mun and conducted an in-depth investigation. The operation culminated in the arrest of four men and three women, aged between 35 and 63, outside the facility. Notably, six of the individuals are believed to be illegal workers.
Inside the unit, Customs uncovered a fully operational illegal cigarette production line, equipped with machinery for manufacturing and packaging illicit cigarettes, alongside a substantial quantity of raw materials.
The seven arrested individuals have been charged with “dealing with goods to which the Dutiable Commodities Ordinance applies” and are scheduled to appear in Tuen Mun Magistrates’ Courts on 1st November. Authorities are continuing their investigation into the source of the raw materials and the machinery used in the operation, with the possibility of further arrests.
In light of these events, Customs has urged the public to exercise caution when purchasing cigarettes, advising consumers to buy from reputable merchants to avoid health risks associated with illicit products.
Under the Dutiable Commodities Ordinance, manufacturing tobacco without a licence is strictly prohibited. Offenders involved in dealing with, possessing, selling, or buying illicit cigarettes face severe penalties, including fines of up to HK$1 million and imprisonment for two years.
In response to the operation, Philip Morris Asia Limited issued a statement expressing gratitude to Hong Kong Customs for its ongoing efforts to combat illegal cigarette activities. The company highlighted the severity of the issue, noting that the recent bust comes just four months after a similar operation. Philip Morris emphasised the importance of purchasing tobacco products from legitimate sources to avoid counterfeit products and associated legal risks. The company confirmed it does not operate any cigarette manufacturing facilities in Hong Kong and reserves the right to take legal action against infringement.
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