HONG KONG: THE FACTS
Customs and Excise
The Customs and Excise Department (C&ED) is responsible for the protection of the Hong Kong Special Administrative Region against smuggling; the protection and collection of Government revenue on dutiable goods; the detection and deterrence of narcotics trafficking and abuse of controlled drugs; the protection of intellectual property rights; the protection of consumer interests; the regulation of money service operators (MSOs); the protection and facilitation of legitimate trade and the upholding of Hong Kong's trading integrity.
Organisational Structure: The department is headed by the Commissioner of Customs and Excise. As at April 1, 2014, the department has an establishment of 5 909 posts, of which nine are directorate officers, 4 784 are members of the Customs and Excise Service, 480 are Trade Controls Officers and 636 are staff of the General and Common Grades. There are five branches:
The Administration and Human Resource Development Branch is responsible for matters concerning the overall staff management of the Customs and Excise Service; departmental administration; financial management; staff training; and the housekeeping of the Office of Service Administration, the Office of Departmental Administration, the Office of Financial Administration, the Office of Prosecution and Management Support, the Office of Training and Development and the Complaints Investigation Group.
The Boundary and Ports Branch is responsible for matters relating to import and export controls under the purview of the Security Bureau and the housekeeping of the Airport Command, the Land Boundary Command, the Rail and Ferry Command, and the Ports and Maritime Command.
The Excise and Strategic Support Branch is responsible for matters relating to dutiable commodities under the purview of the Financial Services and the Treasury Bureau; taking forward the Hong Kong Authorized Economic Operator Programme and implementation of Mutual Recognition Arrangements with partner customs administrations; international customs liaison and cooperation; project planning and equipment procurement; information technology development and the housekeeping of the Office of Dutiable Commodities Administration, the Office of Supply Chain Security Management, the Office of Customs Affairs and Cooperation, the Office of Project Planning and Development, the Office of Information Technology and the Information Unit.
The Intelligence and Investigation Branch is responsible for matters relating to narcotic drugs and anti-smuggling enforcement under the schedule of the Security Bureau and issues relating to intellectual property under the purview of the Commerce and Economic Development Bureau; the formulation of policies and strategies regarding the application of intelligence and risk management in Customs operations; and the housekeeping of the Customs Drug Investigation Bureau, the Intellectual Property Investigation Bureau, the Intelligence Bureau, the Revenue and General Investigation Bureau and the Syndicate Crimes Investigation Bureau.
The Trade Controls Branch is responsible for trade controls and consumer protection matters under the schedule of the Commerce and Economic Development Bureau and supervision of money service operators under the schedule of the Financial Services and the Treasury Bureau. It comprises the CEPA and Trade Inspection Bureau, the Consumer Protection Bureau (1), the Consumer Protection Bureau (2), the Consumer Protection Bureau (3), the Trade Declaration and Systems Bureau, the Trade Investigation Bureau and the Money Service Supervision Bureau.
Under the direct charge of the Deputy Commissioner are the Office of Service Quality and Management Audit and the Internal Audit Division. The Office of Service Quality and Management Audit and the Internal Audit Division are responsible for conducting management reviews and money-related examinations respectively, with a view to enhancing the system integrity, efficiency and effectiveness, service quality and performance standard of the department.
Protection of Revenue: There is no tariff on goods entering Hong Kong but excise duties are charged on four groups of commodities, whether they are imported or manufactured locally, for domestic consumption. These commodities are certain hydrocarbon oil (motor spirit, aircraft spirit and light diesel oil), liquor with alcoholic strength more than 30 per cent by volume, methyl alcohol and tobacco (other than smokeless tobacco). In 2013, the C&ED collected excise duty amounting to $9,216 million.
Under the Dutiable Commodities Ordinance, the C&ED controls distilleries, tobacco manufacturers, liquor manufacturers, oil depots, and industrial and commercial establishments dealing in dutiable commodities; and supervises licensed, general bonded and public bonded warehouses. The supply and storage of duty-free ships' stores and aircraft stores are also under the control of the C&ED. Licences are issued to those who import, export, manufacture or store dutiable commodities. The C&ED also assesses the taxable value of motor vehicles, for the purpose of calculating the first registration tax payable under the Motor Vehicles (First Registration Tax) Ordinance.
The Anti-illicit Cigarette Investigation Division is specially tasked to detect syndicated smuggling, distribution and peddling of dutiable cigarettes. The Anti-illicit Fuel Investigation Division focuses its efforts on detecting the smuggling and misuse of illicit fuels.
