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Swiss Chinese Law Association — Geneva

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Legal Observatory / Trade and Customs

Legal Update China Hong Kong SAR Rules in force

Hong Kong Customs Conducts Joint Campaign at Sai Wan Estate to Highlight Duty Stamp System and Anti-Illicit Cigarette Penalties

Hong Kong Customs and interdepartmental partners conducted an anti-illicit cigarette publicity campaign at Sai Wan Estate to publicise statutory penalties and the Duty Stamp System.

What Changed

  • Hong Kong Customs and partner agencies conducted a joint publicity campaign at Sai Wan Estate on November 12, 2026.
  • Customs reiterated statutory maximum penalties under Cap. 109 ($2 million fine and 7 years' imprisonment) and Cap. 371 ($50,000 fine).
  • Customs reported progress on refining the Duty Stamp System following the conclusion of its three-month pilot run earlier in the year.

Hong Kong residents, estate management personnel, and tobacco supply chain stakeholders in Hong Kong SAR face intensified regulatory outreach and strict enforcement regarding illicit cigarettes. On November 12, 2026, Hong Kong Customs conducted joint anti-illicit cigarette publicity operations at Sai Wan Estate in collaboration with a member of the Central and Western District Council, the Tobacco and Alcohol Control Office (TACO) of the Department of Health, the Housing Department (HD), and the Hong Kong Police Force.

During the campaign, officers patrolled the estate to inform residents and security personnel about enforcement mechanisms and statutory penalties. Customs highlighted that under the Dutiable Commodities Ordinance (Cap. 109), dealing with, possessing, selling, or buying duty-not-paid cigarettes constitutes an offence carrying a maximum penalty of a $2 million fine and seven years' imprisonment. Furthermore, under the Smoking (Public Health) Ordinance (Cap. 371), distributing smoking product advertisements, including promotional leaflets, is prohibited and carries a maximum fine of $50,000.

Customs also detailed progress on the Duty Stamp System aimed at distinguishing duty-paid cigarettes from illicit products and tackling "cheap whites". Following the conclusion of a three-month pilot run early in the year, Customs is continuing stakeholder consultations to optimise the system's design and operational details prior to full implementation.

To deter illegal trade within residential premises, Customs confirmed that if public rental housing units are found involved in illicit cigarette offences, the department will notify the HD for administrative follow-up action upon the conclusion of court proceedings. Members of the public were warned against engaging in illicit cigarette trade or leaflet distribution to avoid gaining a criminal record, and were urged to report suspected activities to dedicated Customs and TACO hotlines.

Who May Be Affected

Residents, estate security personnel, public rental housing tenants, and commercial entities involved in tobacco distribution in Hong Kong SAR.

Cross-Border Context

Not applicable; actions pertain strictly to domestic enforcement and regulatory compliance within Hong Kong SAR.

What to check next

  • Official announcements regarding the final implementation timeline and technical specifications of the Duty Stamp System.
  • Housing Department policy updates regarding public housing tenancy enforcement post-conviction.

This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.

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