Customs detained $4 million in counterfeit goods at the demartion yard, detained 400 males, the highest market value of similar operations in the past

Highlights: Hong Kong Maritime launched a two-week campaign codenamed "Tracer" to crack down on cross-border transshipment and supply of counterfeit and infringing goods. During the operation, Customs seized about 7,8 suspected counterfeit and infringed goods. Counterfeit goods seized included watches, telephone accessories, designer handbags, clothes, shoes and infringing CDs. 400 local men (aged 22 to 3), 55 as truck drivers and 57 as person in charge of a disc shop, suspected of contraventing Trade Descriptions Ordinance and Copyright Ordinance.

For two weeks from 5 to 15 May, Hong Kong Maritime launched a code-track operation to crack down on cross-border transshipment and supply of counterfeit and infringing goods, seizing about 29,7 suspected counterfeit and infringing goods, including

For two weeks from 5 to 15 May, Hong Kong Maritime launched a two-week campaign codenamed "Tracer" to crack down on cross-border transshipment and supply of counterfeit and infringing goods in Hong Kong, seizing about 29,7 suspected counterfeit and infringing goods, including watches, telephone accessories, designer handbags, clothes, shoes and infringing CDs, with a market value of over $8 million. During the operation, the Customs and Excise Department detected 4 cases and arrested 400 local men (aged 22 to 3), 55 as truck drivers and 57 as the person in charge of a disc shop, suspected of contraventing the Trade Descriptions Ordinance and the Copyright Ordinance.

During the operation, Customs seized about 7,8 suspected counterfeit and infringing goods. (Photo by Huang Weimin)

Criminals use the demartial yard as a disguise to transfer counterfeit goods

Mr Yeung Yuen-seng, Commander of the Cross-boundary Investigation Unit of the Customs and Excise Copyright and Trade Marks Investigation Division, pointed out that Hong Kong has the status of a global logistics transshipment hub, and logistics companies commonly known as "destocking yards" play an important role. The depot will receive air, land and sea cargo from all over the world, unload the goods at the deliberation yard, and then place the re-export cargo in the yard for temporary storage, and then arrange the transshipment of the goods to all parts of the world. He mentioned that the demolition yard needs to handle a large amount of goods every day, so criminals use the huge volume of goods in the demollition yard as a cover to transfer counterfeit goods to evade the detection of law enforcement officers.

Cracked 20 cases involving the transshipment of counterfeit goods at the demolition yard

In the past two months, Customs has stepped up intelligence analysis and on-site detection, and used data system analysis to target a number of depots with high risk of cross-border transshipment of counterfeit goods. After a series of surveillance operations, 15 customs officers were mobilized for two weeks from the 50th of last month, a total of 22 cases were detected, and more than 7,8 suspected infringing items, including watches, telephone accessories, handbags, sneakers and clothing, with a market value of over $4 million, were seized.

Freight is mostly transshipped to Europe, America, the Middle East, Africa and South Asia

Of the 22 cases, 20 involved demartiring yards, accounting for 9% of the total operation, and the survey revealed that <>% of counterfeit goods would be transshipped to Europe, the United States, the Middle East, Africa and South Asia. Yang pointed out that compared with similar enforcement operations in the past, the counterfeit items seized in this operation had the highest market value.

Mr Yeung Yuen-seng, Commander of the Cross-boundary Investigation Unit of the Customs and Excise Copyright and Trade Marks Investigation Division, Mr Leung Cheuk-fai (right), Commander of the Cross-boundary Investigation Unit of the Customs and Excise Copyright and Trade Marks Investigation Division, explains the details of the operation. (Photo by Huang Weimin)

Leung Cheuk-fai, Investigation Officer of the Copyright and Trademark Cross-border Investigation Unit 3 of the Customs and Excise Copyright and Trademark Investigation Bureau, said that the Customs and Excise Department conducted detailed observation and analysis according to the location and operation mode of the demartion yard and made corresponding arrangements. With the global epidemic slowing down and full customs clearance in Hong Kong, the logistics industry is gradually recovering. Compared with before the epidemic, Customs has noticed that the temporary storage time of the detachment yard to process the goods has been shortened, so front-line personnel need to select suspicious goods from a large number of goods for inspection in a short period of time after the goods are dropped off and before pick-up, which greatly increases the difficulty of law enforcement.

In raids, frontline customs officers adopt risk management measures, use intelligence systems and data analysis, review cargo information documents, and enhance the threshold for seizing cross-boundary infringing goods based on various risk indicators and past operational experience.

The location of the dismantling yard is concealed, mostly covered by industrial buildings, trucks and hoardings

He mentioned that criminals have also changed tactics in response to customs actions, such as changing transport routes or finding other demartial yards for stock. Leung pointed out that criminals have instead used more remote road and more secluded demolition yards. Customs uses the analysis of the cargo big data system and various investigation methods to conduct in-depth investigation and locate the relevant deliberation yard. Leung pointed out that one of the demolition yards was located under the industrial building, the iron gate was closed for a long time, there was no signboard or indication of the location, and the entrance and exit had to pass through the industrial building parking lot to enter, describing it as "extremely hidden".

In addition, several demolition yards are located in remote areas of roads, and personnel need to turn from roads to hidden mountain roads, and then walk for more than 10 minutes to reach them. Most of these detachment yards are covered by trucks or hoardings.

Shenzhen Bay Port Solved Local Delivery Cases and Inspected More than 3000,<> suspected infringing CDs

As for the other two cases involving the smuggling of counterfeit goods by inbound trucks, Mr Leung said that on the evening of the 2th of last month, customs officers inspected a truck entering the country through the Shenzhen Bay Port, seized more than 15 suspected infringing Blu-ray discs with a market value of about $900,3, and arrested a 7-year-old male driver.

The next day (16th), Customs conducted a surveillance delivery operation in a shopping mall in Mong Kok, broke down a shop selling suspected infringing CDs, seized more than 2100,8 suspected infringing Blu-ray CDs with a market value of more than 7,57 yuan, and arrested a 1-year-old male person in charge of the shop on the spot. The CDs seized during the operation were procured by the shop manager, who procured the infringing CDs from different channels and transported them to his shop through a Hong Kong logistics company for storage or sale. The infringing CDs were of poor quality and had a lower price, 2 to <>% lower than the original price.

Under the Trade Descriptions Ordinance, any person who sells or possesses counterfeit articles for sale is unlawful and liable on conviction to a maximum fine of $50,5 and imprisonment for 24 years, members of the public can report suspected infringing activities by calling the Customs and Excise Department's 2545-hour hotline at 6182 <> or through the dedicated Crime Reporting Email Account (crimereport@customs.gov.hk).

Under the Copyright Ordinance, any person who sells or leases the device for any purpose of circumventing business or in the course of any circumvention of business commits an offence and is criminally liable and liable on conviction to a fine of $50,4 and imprisonment for <> years.