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Hong Kong Customs combats counterfeit goods activities and seizes suspected counterfeit and smuggled goods worth over $17 million ahead of Christmas (with photo)

     â€‹Hong Kong Customs conducted a two-week enforcement operation codenamed “Santa Guardian” from December 9 to 20 to combat counterfeit goods activities involving cross-boundary transshipments with the approach of Christmas. During the operation, Customs detected 10 related cases and seized about 43 000 suspected counterfeit and smuggled goods with an estimated market value of over $17 million. One person involved in the cases was arrested.
      
     Customs discovered that criminals intended to ship counterfeit goods and unmanifested cargo abroad via Hong Kong to meet the huge shopping demand with the approach of Christmas. As such, through risk assessment, Customs inspected three containers at the Tuen Mun River Trade Terminal Customs Cargo Examination Compound and one incoming lorry at the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port Inbound Cargo Examination Building. After inspection, Customs officers seized a total of about 35 000 suspected counterfeit and smuggled goods with a total estimated market value of about $11 million.
      
     Moreover, through intelligence analysis and detailed investigations, six related cases were uncovered in a number of local logistics companies. In the operation, Customs officers mounted strike-and-search actions against six logistics companies in Kwai Chung and Tsing Yi, seizing about 7 400 suspected counterfeit goods, including watches, mobile phones, footwear and clothing, with a total estimated market value of about $6 million.
      
     Investigations into the above-mentioned cases are ongoing. One person involved in the cases was arrested, and he has been released on bail pending further investigation.
      
     Customs appeals to consumers to purchase goods from reputable shops or websites and to check with trademark or copyright owners, or authorised agents if the authenticity of a product is in doubt to avoid buying counterfeit or infringing goods.
      
     Customs will continue to step up inspections and conduct intelligence-led enforcement to vigorously combat counterfeit and infringing goods activities at different levels.
      
     Under the Trade Descriptions Ordinance, any person who imports or exports, or sells or possesses for sale any goods to which a forged trademark is applied, commits an offence. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years.
      
     Under the Import and Export Ordinance, any person found guilty of importing or exporting unmanifested cargo is liable to a maximum fine of $2 million and imprisonment for seven years upon conviction.
      
     Members of the public may report any suspected counterfeiting or infringing activities to Customs’ 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

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Exchange Fund Bills Tender Results

The following is issued on behalf of the Hong Kong Monetary Authority:

     Exchange Fund Bills Tender Results:
 

Tender date : December 24, 2024
Paper on offer : EF Bills
Issue number : Q2452
Issue date : December 27, 2024
Maturity date : March 26, 2025
Amount applied : HK$128,440 MN
Amount allotted : HK$62,749 MN
Average yield accepted : 3.92 PCT
Highest yield accepted : 3.97 PCT
Pro rata ratio* : About 43 PCT
Average tender yield : 4.04 PCT
****************************
Tender date : December 24, 2024
Paper on offer : EF Bills
Issue number : H2481
Issue date : December 27, 2024
Maturity date : June 25, 2025
Amount applied : HK$42,598 MN
Amount allotted : HK$19,800 MN
Average yield accepted : 3.65 PCT
Highest yield accepted : 3.68 PCT
Pro rata ratio* : About 52 PCT
Average tender yield : 3.71 PCT
 
*”Pro rata ratio” refers to the average percentage of allotment with respect to each tender participant’s tendered amount at the “highest yield accepted” level. read more

Accrual-based Consolidated Government Accounts for 2023-24

     The Government published today (December 24) its accrual-based consolidated accounts for the financial year 2023-24.

     A Government spokesman said that the accrual-based accounts differ from the cash-based ones in the purposes they serve. “Compiled on the basis of actual cash revenue and expenditure within a financial year, the cash-based accounts serve mainly to demonstrate that public money has been paid within the limits and ambits approved by the legislature. The accrual-based accounts, on the other hand, aim to present more information on the financial performance and position of the Government,” he said.

     “The cash-based accounts consolidate the General Revenue Account (GRA) and the Funds established under section 29 of the Public Finance Ordinance (Cap. 2) except the Bond Fund, the balance of which is not part of the Fiscal Reserves. In addition to the GRA and Funds consolidated in the cash-based accounts, the accrual-based accounts include the Exchange Fund, the Hong Kong Housing Authority (HKHA), government business enterprises such as the MTR Corporation Limited and the Kowloon-Canton Railway Corporation, and other government funds such as the Bond Fund and the Quality Education Fund. There are also more comprehensive disclosures of the Government’s assets and liabilities in the accrual-based accounts, e.g. fixed assets, provision for pensions and government debts,” he added.

     The key figures shown in the accrual-based accounts as compared with those in the cash-based accounts are highlighted below:
 

                         2023-24
  Cash-based
(HK$ billion)
Accrual-based
(HK$ billion)
  ————- —————
Financial results    
  • Fiscal deficit
(100.2)  
  • Net deficit
  (85.7)
Reserves    
  • Fiscal Reserves
734.6  
  • General Reserve
  340.1
  • Exchange Fund Reserve
  669.5
  • Capital Expenditure Reserve
  639.5
  ————– —————-
  734.6 1,649.1
  ————– —————-
Net assets 734.6 1,649.1

     The accrual-based Consolidated Statement of Financial Performance reports a deficit of HK$85.7 billion, whereas the cash-based accounts show a deficit of HK$100.2 billion. This is mainly due to inclusion of the surpluses of the Exchange Fund, the HKHA and other funds.

     According to the accrual-based Consolidated Statement of Financial Position, the Government’s net assets were HK$1,649.1 billion as at March 31, 2024. These net assets were represented by three reserves: General Reserve of HK$340.1 billion, Exchange Fund Reserve of HK$669.5 billion and Capital Expenditure Reserve of HK$639.5 billion. Notwithstanding these, the cash resources available for the Government’s spending remain to be the Fiscal Reserves, which stood at HK$734.6 billion as at March 31, 2024.

     “The General Reserve represents the net financial assets of the Government. The Exchange Fund Reserve refers to the net assets of the Exchange Fund, the use of which is governed by the Exchange Fund Ordinance (Cap. 66), whereas the Capital Expenditure Reserve represents the total net book value of fixed assets,” the government spokesman added.

     “The Government’s General Reserve as at March 31, 2024, was HK$340.1 billion, HK$394.5 billion less than the Fiscal Reserves of HK$734.6 billion reported in the cash-based accounts. The difference arises because the net financial assets of the Government in the accrual-based accounts take into account the Government’s liabilities such as government bonds, pensions and untaken leave of staff, partly offset by financial assets such as investments in the MTR Corporation Limited and the Airport Authority.

     “Totalling HK$445.6 billion, the government bonds refer to the debt instruments issued under the Government Green Bond Programme and Government Bond Programme. The provision for pensions of HK$967.6 billion, in terms of present value, represents the statutory liabilities in relation to civil servants’ pensions.

     “Apart from the liabilities shown in the accrual-based Consolidated Statement of Financial Position, there are also outstanding commitments, largely for capital works, of HK$1,190.4 billion and guarantees of HK$304.8 billion provided under various schemes,” the Government spokesman said.

     The public can access the accrual-based and cash-based accounts at the Treasury’s website: www.try.gov.hk. read more

Hong Kong Customs detects dangerous drugs internal concealment case involving passengers at airport (with photo)

     Hong Kong Customs on December 22 detected a dangerous drugs internal concealment case involving two incoming passengers at Hong Kong International Airport and seized about 1.5 kilograms of suspected cocaine with an estimated market value of about $1.3 million.
      
     Two female passengers, aged 46 and 42, arrived in Hong Kong from Entebbe, Uganda, via Doha, Qatar, on that day. During Customs clearance, Customs officers suspected that the passengers had dangerous drugs concealed inside their body cavities. They were then escorted to the hospital for examination. Upon examination, doctors confirmed that foreign objects were concealed inside their body cavities and they were arrested immediately. As at 2pm today (December 24), the arrested persons have discharged a total of 115 pellets of suspected cocaine weighing about 1.5kg in total.
      
     The arrested persons have each been charged with one count of trafficking in a dangerous drug. The case will be brought up at the West Kowloon Magistrates’ Courts on December 26.
      
     Customs will continue to apply a risk assessment approach and focus on selecting passengers from high-risk regions for clearance to combat transnational drug trafficking activities.
      
     Under the Dangerous Drugs Ordinance, trafficking in a dangerous drug is a serious offence. The maximum penalty upon conviction is a fine of $5 million and life imprisonment.
      
     Members of the public may report any suspected drug trafficking activities to Customs’ 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

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Inspection of aquatic products imported from Japan

     In response to the Japanese Government’s plan to discharge nuclear-contaminated water at the Fukushima Nuclear Power Station, the Director of Food and Environmental Hygiene issued a Food Safety Order which prohibits all aquatic products, sea salt and seaweeds originating from the 10 metropolis/prefectures, namely Tokyo, Fukushima, Ibaraki, Miyagi, Chiba, Gunma, Tochigi, Niigata, Nagano and Saitama, from being imported into and supplied in Hong Kong.
 
     For other Japanese aquatic products, sea salt and seaweeds that are not prohibited from being imported into Hong Kong, the Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department will conduct comprehensive radiological tests to verify that the radiation levels of these products do not exceed the guideline levels before they are allowed to be supplied in the market.
 
     As the discharge of nuclear-contaminated water is unprecedented and will continue for 30 years or more, the Government will closely monitor and step up the testing arrangements. Should anomalies be detected, the Government does not preclude further tightening the scope of the import ban.
 
     From noon on December 23 to noon today (December 24), the CFS conducted tests on the radiological levels of 197 food samples imported from Japan, which were of the “aquatic and related products, seaweeds and sea salt” category. No sample was found to have exceeded the safety limit. Details can be found on the CFS’s thematic website titled “Control Measures on Foods Imported from Japan” (www.cfs.gov.hk/english/programme/programme_rafs/programme_rafs_fc_01_30_Nuclear_Event_and_Food_Safety.html).

     In parallel, the Agriculture, Fisheries and Conservation Department (AFCD) has also tested 50 samples of local catch for radiological levels. All the samples passed the tests. Details can be found on the AFCD’s website (www.afcd.gov.hk/english/fisheries/Radiological_testing/Radiological_Test.html).
 
     The Hong Kong Observatory (HKO) has also enhanced the environmental monitoring of the local waters. No anomaly has been detected so far. For details, please refer to the HKO’s website
(www.hko.gov.hk/en/radiation/monitoring/seawater.html).
 
     From August 24, 2023, to noon today, the CFS and the AFCD have conducted tests on the radiological levels of 107 236 samples of food imported from Japan (including 69 589 samples of aquatic and related products, seaweeds and sea salt) and 24 318 samples of local catch respectively. All the samples passed the tests. read more