The Customs and Excise Department on Wednesday said it has intensified its crackdown on cross-boundary vehicles illegally transporting large quantities of petrol from the mainland into Hong Kong, a practice driven by the recent surge in oil prices because of the Middle East conflict.

Speaking to reporters at a customs press conference, Commissioner Chan Tsz-tat said the widening gap between retail petrol prices in Hong Kong and on the mainland has created a strong economic incentive for these illicit activities.

He said that some cross-boundary vehicles are exploiting the situation by using modified, enlarged fuel tanks to carry cheaper mainland petrol into Hong Kong.

Once here that fuel is extracted and sold to illegal fuel stations, he added.

Chan stressed the serious legal and safety implications of the trade.

"Buying and selling untaxed petrol is illegal and carries criminal liability. Hong Kong customs will vigorously combat this because it involves not only tax evasion but also significant risks," he said.

"When this untaxed petrol is put into private cars, there is a considerable fire hazard. This poses a serious danger not only to the vehicle concerned but also to the surrounding neighbours."

As part of enforcement efforts, the commissioner said the department would seize vehicles involved in such cases and would subsequently apply to the courts for their forfeiture.

He urged the public not to break the law for small gains, warning that the resulting losses would far outweigh any benefits.

Beyond the fuel smuggling issue, Chan addressed the broader impacts of the Middle East situation on Hong Kong, noting that the department has observed considerable disruptions to shipping, as well as the movement of both people and goods.

However, he framed the situation as both "a risk and an opportunity" for Hong Kong.

"In fact, Hong Kong exemplifies how, under the 'One Country, Two Systems' framework, we are able to provide a highly secure, convenient and transparent customs clearance and transportation system in areas such as logistics and trade," he said.

Chan outlined the department's forward-looking strategy.

"In the days ahead, Hong Kong customs will continue to actively promote various trade-friendly measures to ensure that industries from around the world can conduct business, trade and logistics in Hong Kong with peace of mind," he said.

"By providing a better enforcement environment, we enable businesses operating in Hong Kong to calculate their costs with certainty. This, I believe, is our advantage."

Chan said the department would closely monitor the situation in the Middle East for any further impact on Hong Kong, particularly in maritime and air transport.

He pledged to maintain close contact with the industry to provide appropriate assistance when necessary.



Edited by Thomas McAlinden