Customs smashes Tsuen Wan illicit cigarette outlet disguised as Chinese medicine clinic

Hong Kong Customs has dismantled a suspected illicit cigarette retail and distribution point operating under the guise of a traditional Chinese medicine clinic in Tsuen Wan, seizing approximately 100,000 contraband cigarettes with an estimated market value of HK$440,000.

During the enforcement operation on Thursday, customs officers intercepted the illicit operation and arrested the 78-year-old male person-in-charge at the scene. 

The seized cigarettes carried an estimated duty potential of about HK$320,000, and the arrested suspect has been formally charged.

Undercover sting operation

The operation followed an extensive investigation by the Revenue Crimes Investigation Bureau after officers identified suspicious activities linked to the clinic.

Posing as customers, undercover officers carried out a test-purchase operation at the premises on Thursday afternoon.

During the sting, the clinic's operator offered cigarettes for sale at prices well below the statutory tobacco duty rate. 

Officers immediately moved in, arrested the man, and confiscated the stash of duty-unpaid tobacco found inside the premises.

Concealment in aging tenement buildings

Initial inquiries revealed that the syndicate had deliberately rented a subdivided unit inside an older, elevator-free tenement building to store and distribute the contraband. 

Authorities noted that the location was chosen specifically to deter law enforcement inspections and minimize detection risks, using the herbal medical practice as a front. 

Customs officials stated that the swift raid successfully eradicated an active illicit cigarette distribution hub and retail node servicing the Tsuen Wan district.

Legal presumption and strict penalties

The department reminded the public that the amended Dutiable Commodities Ordinance, which took effect in September last year, introduces a statutory presumption regarding low-cost tobacco. 

Under the law, any cigarettes sold below the statutory tobacco duty rate are legally presumed to be illicit unless the seller can prove duty has been paid.

Buying, selling, possessing, or dealing in duty-unpaid cigarettes constitutes a serious criminal offense under the Dutiable Commodities Ordinance. 

Offenders face a maximum penalty of a HK$2 million fine and up to seven years in prison upon conviction.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓