DUTIABLE COMMODITIES ORDINANCE

DUTIABLE COMMODITIES ORDINANCE

LAWS OF HONG KONG

DUTIABLE COMMODITIES ORDINANCE

CHAPTER 109





CHAPTER 109

DUTIABLE COMMODITIES ORDINANCE

ARRANGEMENT OF SECTIONS

Section Page

PART 1

PRELIMINARY

1. Short title ................................................................................ 4
2. Interpretation ....................... 4
3. Application .......................... 6

PART II

GENERAL

4. Duty ............................................................................................ 7
5. Drawback .............................7
6. Regulations .......................... 7

7. Grant of licences and permits ........10
8. Applications for licences and permits 11
9. Register of requisitions and permits .12

10. Deputy for absent licensee ....................... 12
11. Powers of the Customs and Excise Service 13
IIA. Books and documents ................ 14
12. Seizure without warrant ................................................................... 14
13. Ships failing to bring to ........... 14

14. Search of place or ship with warrant or authority or by police officer 15
15. Seizure of things used for commission of offences 15
16. Obstruction of member of the Customs and Excise Service or police officer 16

17. Restrictions on dealing with and possession of certain goods ..................... 16
18. (Rep-led) ...........................18
19. Goods embarked for export not to be relanded 18
20. Restrictions on import and export ... 19
21. Penalty on not bringing to at stations; or carrying away officers 19
22. Import and export statements ............................. 19
23. Removal of goods from ships, vehicles or aircraft 20
24. Ships' or aircraft stores, etc . .... 21
25. Inspection, etc. of goods ...........21





Section.................................... Page
26. Assessment of duty and drawback ......22
26A................Value of goods and assessment of ad valorem duty 22
27. Production of documents necessary for calculating duty 24
27A..................Production of document as to origin of juice 25
28. Delivery of imported goods on giving security for duty 25
28A.............Goods imported for processing or repacking for export 25
29. Liability of licensee of general bonded or licensed warehouse 26
30. Contracts for sale of duty-paid goods when duties are altered or repealed 26
31. Execution and distress against licensees 27
32. Recovery of duty, etc . ..............28
33. Search of baggage and goods ..........28
34. Examination of articles (other than baggage) on shore, ship, etc . 39
35. (Rep-led) ............................30

36. Misrepresentation, concealment, removal of goods, and defacement of licence

or permit ............................30
37........................Counterfeiting documents, etc . 31
38............Restrictions on use and transfer of permits and licences 31
39...................................(Repealed) 31
40..................................Presumptions 31
41.................Import manifests to be evidence of importation 32
42......................Certain certificates to be evidence 32
43.........................Magistrate may call in expert 32
44...................................Informers 32
45...............Manner of seizure not to be inquired into by court 33
46.............................Offences and penalties 33
46A........................Liability for acts of servants 33
47..........................Commencement of prosecution 34
48...................................Forfeiture 34
49.............................Evidence of forfeiture 36

50. Protection of members of Customs and Excise Service in forfeiture

proceedings ..........................36
51.....................Goods abandoned as not worth the duty 36
52..............................Sale of perishables 36
PART Ill
LIQUORS
53.................................Interpretation 37
54.............Provision for case of death or insolvency of licensee 39
55........................Licensee to exhibit name, etc . 39
56.....................Measures or weights for sale of liquor 39





Section..................................... Page
57....................................(Repealed) 39
58.............Illegal possession of still or fermented material, etc . 40
59...........Presumptions in proceedings for illicit distillation, etc . 40
60......Free licences for small stills for registered doctors and pharmacists 41
61.......................Distilling, etc. adulterated liquor 41
62....................................(Repealed) 42
63....................................(Repealed) 42
64......Denatured spirits to be dutiable goods until certified to the contrary 42

PART IV

TOBACCO

65..............................Definition of tobacco 42
66.....................................(Rep-led) 43
67.....................Manufacture, etc. of adulterated tobacco 43
68..........................Restriction on tobacco growing 44
PART V
HYDROCARBON OIL
69..........................Definition of hydrocarbon oil 44
69A...................................(Repealed) 45

PART VI

METHYL ALCOHOL

70.................................Interpretation 45

71..................Marking of containers
................................................................ 45

72.....................Colouring, flavouring or other substance 45
73.....................................Storage 46
74....................................Exemptions 46
PART VII
CONCENTRATES AND NON-ALCOHOLIC BEVERAGES
75..................................Interpretation 46
PART VIII
COSMESTICS
76..................................Interpretation 47
Schedule .
........................................................................................................................ 47





CHAPTER 109

DUTIABLE COMMODITIES

To amend the law relating to the taxation and control of liquors, tobacco,
hydrocarbon oil, methyl alcohol, non-alcoholic beverages, cosmetics and other
substances, for providing for the licensing of certain dealings in liquors and for
purposes connected therewith.

(Amended 3 of 1970 s. 2; 40 of 1974 s. 2; 34 of 1976 s. 2; 20 of 1985 s. 2;
66 of 1986 s. 2)

[160ctoberl9631 L.N.120of1963

Originally 26 of 1963-37 of 1967,31 of 1969,3 of 1970, L.N. 146 of 1972,61 of 1972, L.N. 181
of 1972, 19 of 1973, L.N. 56 of 1974, 40 of 1974, 34 of 1976, 83 of 1976, 46 of 1977, L.N.
206 of 1977, 44 of 1978, 68 of 1978, 4 of 1979, 46 of 1980, 34 of 1982, L.N. 189 of 1982,
L.N. 294 of 1982, 75 of 1982, 34 of 1984, 35 of 1984, 20 of 1985, 39 of 1985, 62 of 1986,
66 of 1986, R.Ed. 1986, L.N. 128 of 1987, L.N. 203 of 1987, L.N. 382 of 1987, N. 387 of
1987, 10 of 1988, L.N. 49 of 1988, L.N. 158 of 1988,16 of 1989,29 of 1989. c

PART 1

PRELIMINARY

1. Short title

This Ordinance may be cited as the Dutiable Commodities Ordinance.

2. Interpretation

(1) In this Ordinance, unless the context otherwise requires-

'Commissioner' means the Commissioner of Customs and Excise and any Deputy or
Assistant Commissioner of Customs and Excise; (Added L.N. 294 of 1982)

'container' includes any receptacle or vessel and any wrapper, packing, cover or
stopper;

'dutiable goods' means goods to which this Ordinance applies, which are not
exempt from duty and on which the full duty prescribed by law has not been
paid, and includes goods on which duty has been paid if subsequently
reimported; (Amended 3 of 1970s.3)

'duty-paid goods' means goods on which the full duty prescribed by law has been
paid;





'export' means to carry or cause to be carried out of Hong Kong by land, air or water
and includes the export of anything carried or sent from any country and
brought into Hong Kong by land, air or water for the sole purpose of being
carried to another country after transhipment into another conveyance, but
does not include transit cargo;

'former Ordinance' means the Dutiable Commodities Ordinance 1931 and also
means any provision thereof which was continued in force under the repealed
section 76 of this Ordinance; (Added3of1970s.3)

'gross tonnage' means gross tonnage determined in accordance with the Merchant
Shipping (Tonnage) Regulations (App. 1 p. AB 1); (Added 3 of 1970s.3)

'import' means to carry or cause to be carried into Hong Kong by land, air or water;

licence means a licence granted or issued under this Ordinance or under the former
Ordinance; (Replaced 3 of 1970 s. 3)

'liquor licence' means a licence for the sale or supply of liquor at any premises
specified therein for consumption on the premises; (Added 3 of 1970 s. 3)

'manifest' means the manifest of a ship or aircraft, and in relation to a vehicle, the
statement referred to in section 22 of goods imported or for export in such
vehicles;

'manufacture' includes every kind of preparation, mixing and treatment except
packing and unpacking;

'master' includes every person, except a pilot, having command or charge of any
ship;

'member of the Customs and Excise Service' means a person holding an office
specified in Schedule 1 to the Customs and Excise Service Ordinance (Cap.
342); (Amended 46 of 1977s. 18)

'net register' means register tonnage determined in accordance with the Merchant
Shipping (Tonnage) Regulations (App. 1 p. AB 1); (Replaced 3 of 1970s.3)

'offence' means an offence against any of the provisions of this Ordinance, and
includes any act or omission declared or deemed by any of the provisions of
this Ordinance to bean offence; (Amended3 of 1970s.36)

'permit' means a permit granted or issued under this Ordinance;

'place' means any area on land or water and includes any ship, aircraft, vehicle,
train, building, structure or enclosure, whether movable or not; (Added 66 of
1986 s. 3)

'railway' means the Kowloon-Canton Railway, British Section, and 'by rail' means
by means of the railway;

'Regional Council area' has the meaning assigned to it in the District Boards
Ordinance(Cap. 366); (Added 39 of 1985 s. 60)

',ship' includes every description of vessel (not being or having the status of a
vessel of war) used, or adapted for use, in navigation or for the carriage of
goods or persons;





'transit cargo' means goods which are destined for a foreign place and are passing
through Hong Kong on the same ship or aircraft without transhipment;

'Urban Council area' has the meaning assigned to it in the District Boards
Ordinance(Cap. 366); (Added 39 of 1985 s. 60)

'warehouse' means any premises or place or any part thereof specified by the
Commissioner either as a general bonded warehouse or as a licensed warehouse
and set apart for storing only dutiable goods. (Amended L.N. 294 of 1982; 66 of
1986 s. 3)

If

(2) (Repealed 66 of 1986 s. 3)

(3) For the purposes of subsection (1), where

(a)duty has been paid on goods by reference to the purpose for which
the goods were intended to be used; and

(b)the goods are used, or are intended to be used, for some other
purpose which attracts a higher rate of duty,

then, until duty is paid at that higher rate, the goods shall be deemed to be goods on
which the full duty prescribed bylaw has not been paid. (Replaced 3 of 1970 s. 3)

(4) (Repealed 66 of 1986 s. 3)

3. Application

(1) This Ordinance shall apply to alcoholic liquors, tobacco (other than any
smokeless tobacco product within the meaning of section 2(1) of the Public Health
and Municipal Services Ordinance (Cap. 132)), hydrocarbon oil, methyl alcohol,
concentrates, non-alcoholic beverages and cosmetics. (Amended 40 of 1974 s. 3; 34
of 1976 s. 3; 20 of 1985 s. 3; 62 of 1986 s. 4; 66 of 1986 s. 4)

(2) The Legislative Council may from time to time by resolution published in the
Gazette apply to any substance any of the provisions of this Ordinance specified in
the resolution with such modifications, if any, as may to them seem desirable, having
regard to the nature of the substance to which the resolution relates.

(3) While any resolution relating to any substance is in force under this section
the provisions of this Ordinance thereby applied shall have effect as if the substance
were goods to which this Ordinance applies, but subject to such modifications, if
any, as may be provided by the resolution.

(4) Except as provided in section 18, this Ordinance shall not apply to goods
which are the property of or imported or purchased for the Governor or for the
Government of the United Kingdom or of Hong Kong.

(5) Except as may be prescribed by regulations, the provisions of this
Ordinance relating to the importation, exportation and movement of goods shall not
apply to postal packets as defined in the Post Office Ordinance (Cap. 98).





PART 11

GENERAL

4. Duty

(1) Duty shall be assessed and payable on dutiable goods and refunded in
respect of such goods at the rates and in the manner set out in the Schedule.

(2) The Legislative Council may by resolution amend the Schedule and in
particular, may amend it

(a) to impose any duty on any dutiable goods or any class of dutiable

goods;

(b) to increase, decrease, recast, abolish, vary, waive or remit

whether generally or particularly any duty imposed therein to any
extent whatever;

(e) to impose new duties on any dutiable goods or class of dutiable

goods, including goods that are already in Hong Kong at the
time such new duties are imposed; or

(d) to empower the Commissioner--

(i) to make refunds of duty in any particular case or generally;

(ii) to assess duty on any dutiable goods not specified in the
Schedule; or

(iii)to assess duty on a quantity, as specified in the Schedule, of
dutiable goods at a rate so specified.

(Replaced 66 of 1986 s. 5)

5. Drawback

(1) Where it is proved to the satisfaction of the Commissioner that any duty-
paid goods have been used in Hong Kong by qualified persons in the manufacture
or preparation of any goods exported or taken as stores on board a ship, vehicle,
train or aircraft departing from Hong Kong, drawback shall be payable to such
persons in respect of such duty-paid goods at such rate as may from time to time by
regulations be prescribed. (Amended L.N. 294 of 1982)

(2) In this section, 'qualified person' means a person qualified in manner
prescribed by regulations for the purpose of drawback.

6. Regulations

(1) The Governor in Council may by regulation prescribe or provide for

(a) regulating, restricting, licensing or prohibiting, except by licensed

persons and on, from or to licensed premises, vehicles, trains,
ships or aircraft, as the case may be, the importation, exporta-





tion, manufacture, storage, sale, supply, use and possession of
goods to which this Ordinance applies; (Amended 66 of 1986
s.6)
(b)standards of quality for and determining the quality and origin
of, and for packing, canning or bottling any goods (to which this
Ordinance applies) to be manufactured, sold or exported under
licence; and for materials to be used in such manufacture;
(c)the form of licences and permits and any conditions to be
attached thereto, the public officers who may grant licences or
permits, the periods for which licences and permits may be
issued, the surrender of permits after issue and exemptions for
any requirements prescribed by this Ordinance in relation to a
licence or permit; (Replaced 66 of 1986 s. 6)
(d)the construction, maintenance, management and control of
licensed premises;
(e)books and records to be kept for the purposes of this Ordinance,
the manner in which they are to be kept, and the periods for
which they are to be preserved, and empowering the Com-
missioner and any member of the Customs and Excise Service
so authorized in writing by him to grant exemptions from any
such requirement; (Amended 66 of 1986 s. 6)
(f)the containers in which goods to which the Ordinance applies
may be imported, exported, kept, sold or supplied and for the
labelling or marking of such goods and containers;
(g)fees other than fees for liquor licences issued by the Urban
Council or the Regional Council; (Replaced 19 of 1973 s. 54.
Amended 39 of 1985 s. 60)
(h)the payment of fees, duties and drawback; (Replaced 66 of 1986
s.6)
(ha) the refund of duty-
(i)on duty-paid goods used in the manufacture of dutiable
goods;
(ii)on duty-paid goods destroyed in Hong Kong with the
written consent of the Commissioner;
(iii)on duty-paid goods exported from Hong Kong with the
written consent of the Commissioner;
(iv)on duty-paid goods drawn as samples for analysis by the
Government Chemist;
(v)on such other duty-paid goods as the Legislative Council
may by resolution direct; (Added 66 of 1986 s. 6)
(i)dispensing with or relaxing any of the provisions of this
Ordinance or duties imposed thereunder relating to goods-
(Amended 3 of 1970 s. 36)





(i) used or intended to be used in the sacrament, or solely for
educational, scientific, medical or charitable purposes;

(ii)used or intended to be used in navigation, air or land traffic
through or outside Hong Kong, or as ships' or aircraft stores;

(iii) imported for their own use and in their baggage by passengers
and crew members of ships, aircraft, trains or vehicles;
(Replaced 66 of 1986 s. 6)

(iv) exported and subsequently reimported, or to such other goods
as the Legislative Council may by resolution direct;

(v) used or intended to be used as samples or advertising matter of
no commercial value and not intended for resale;

(vi) which are bona fide gifts sent to residents of Hong Kong and are
not intended for resale;

(vii) used in the blending of fuel oil or marked by means of chemicals
and coloration; (Added66 of 1986s.6)

(viii) drawn as samples for analysis by the Government Chemist;
(Added 66 of 1986 s. 6)

(ia) exemptions from or refunds of duty which are required by any

Ordinance as to immunities and privileges of a diplomatic,
consular or similar nature; (Added40 of 1974s. 4)

(j) the furnishing of bonds, or cash or other securities, by licensees

and others to secure the due payment of duty and the observance
of the provisions of this Ordinance and the conditions of licences;
(Amended 3 of 19 70 s. 36)

(k) the examination of the baggage and goods of persons entering or

leaving Hong Kong;

(1) requiring importers and exporters of goods to which this

Ordinance applies to furnish certificates relating to the goods from
places outside Hong Kong;

(m) marking by means of chemicals and coloration of hydrocarbon

oil; (Amended 66 of 1986 s. 6)

(n) the issue, suspension and revocation of liquor licences and the

establishment, functions and procedure of boards appointed for
the purpose; (Added3 of 1970s.4. Amended4of1979s.2)

(o) regulating the premises in respect of which a liquor licence is

granted; (Added3of1970s.4)

(p) regulating or prohibiting the sale and supply of liquor to minors;

(Added 3 of 1970 s. 4)

(q) regulating or prohibiting the employment and presence of minors

on licensed premises;







(r) the conditions of employment of minors on licensed premises;

(Added 3 of 19 70 s. 4)





(ra) the issue of certificates as evidence of landing, shortages and
breakages of cargo or relating to entries in official records; (Added 66
of 1986 s. 6)

(s)matters in which the Commissioner may give directions for the
protection of the revenue and the carrying out of the provisions of
this Ordinance, and for empowering him to give such directions;
(Amended 3 of 1970 s. 36,- L.N. 294 of 1982)

(sa) empowering the Commissioner to grant exemptions in any particular
case or generally from any regulations made under this section;
(Added 66 of 1986 s. 6)

(t)anything which is by this Ordinance to be prescribed or provided for
by regulation;

(u) generally, carrying into effect the provisions of this Ordinance.

(2) Without prejudice to subsection (1)(n), regulations made under this section
may provide that a contravention of any regulation shall be an offence and prescribe
a penalty therefor: (Amended4of 1979s.2)

Provided that no penalty so prescribed shall exceed a fine of $100,000 and
imprisonment for 2 years.

(3) Any regulation made under this Ordinance may provide that in any criminal
proceedings for a contravention thereof

(a)it shall be for the person charged with such contravention to prove
certain facts; or

(b)facts may be presumed, with or without proof of other facts, until the
contrary is proved.

(4) Any regulation made in exercise of the powers conferred by subsection (3)
shall be subject to the approval of the Legislative Council.

(5) Where by regulations made under subsection (1)(n) the Urban Council is
appointed as a board empowered to issue liquor licences, the Urban Council may, by
notice published in the Gazette, specify the fees payable in respect of such licences.
(Added19of1973s.54. Amended L.N. 56 of 1974)

(6) (Repealed 66 of 1986 s. 6)

(7) Where by regulations made under subsection (1)(n) the Regional Council is
appointed as a board empowered to issue liquor licences, the Regional Council may,
by notice published in the Gazette, specify the fees payable in respect of such
licences. (Added 39 of 1985 s. 60)

(8) (Spent)

7. Grant of licences and permits

(1) Subject to the provisions of this Ordinance-

(a)the Commissioner or other officer deputed by him in that behalf may
in his absolute discretion grant and issue licences or permits on
payment of the fees, for the periods prescribed, or if no such





period is prescribed in any case, for periods of one year at a time, and
may renew such licences or permits

(b) the Commissioner or an officer deputed by him to grant a licence

or permit may-

(i) in granting or renewing the licence or permit impose such special
conditions or restrictions in particular cases as he thinks fit;

(ii) permit the transfer of the licence or permit from one person to
another or, if the licence was issued for certain premises, the
substitution therefor of other premises, or may amend the
licence or permit, on sufficient cause being shown to his
satisfaction and on payment of the fee prescribed for such
transfer, substitution or amendment and of such fee, or such
proportionate part of such fee, payable under paragraph (a) as
the change may involve;

(iii) give either personally or by registered post such directions to
licensees or holders of permits in writing in prescribed matters as
he may deem necessary for the protection of the revenue;
(Amended 66 of 1986 s. 7)

(iv)revoke the licence or permit on proof to his satisfaction of an
offence against this Ordinance, whether any person has been
convicted of such offence or not;

(v) any licence or permit shall be in the prescribed form or, if no form
is prescribed in a particular case, in such form as the
Commissioner may approve;

(e) a list of general bonded warehouses shall be published in the

Gazette in January of each year and additions thereto or
deletions therefrom shall be similarly published within 1 month
of such addition or deletion becoming necessary. (Amended3of
1970 ss. 5 & 36)

(2) Any person who is aggrieved by the exercise of the powers conferred by
this section by the Commissioner or by any officer deputed by him in that behalf
may appeal by way of petition to the Governor in Council.

(Amended L.N. 294 of 1982)

8. Applications for licences and permits

Any person seeking a licence or permit or the renewal, extension, transfer or
amendment of a licence or permit shall make application

(a) in accordance with regulations; or

(b) in any case not provided for by regulations, either personally

or in writing to the Commissioner in accordance with a form
approved by him and subject to his directions,





and shall furnish such information and evidence relating to the application as may
be prescribed or as the Commissioner may require.

(Replaced3of1970s.6. Amended L.N. 294 of 1982)

9. Register of requisitions and permits

Every requisition for a permit and a copy of every permit issued shall be entered
in a book or books in the office of the officer authorized to issue the permit, and the
absence of a requisition or copy therefrom shall be prima facie evidence that a permit
has not been applied for or, as the case may be, that a permit has not been issued.

10. Deputy for absent licensee

(1) If a licensee intends to leave Hong Kong for more than 14 days at a time, or
is, by reason of any disability, incapable of acting, he, or in the case of disability, his
legal representative, shall, unless he has appointed a deputy licensee under
subsection (2), appoint a responsible person, approved by the Commissioner, to act
on his behalf during his intended absence or during his disability and shall lodge
with the Commissioner a notice of such appointment endorsed and countersigned
by the person appointed and during the absence or disability of the licensee the
person appointed shall, without prejudice to the responsibility of the licensee, have
the same duties and liabilities as the licensee under this Ordinance.

(2) A licensee may, subject to the prior approval of the Commissioner obtained
in accordance with subsection (3), appoint a deputy licensee.

(3) An application for the approval of the Commissioner under subsection (2)
shall be made in writing in a form approved by him, signed by both the licensee and
the proposed deputy licensee and giving such information and evidence relating to
the application as the Commissioner may require.

(4) Whenever a licensee who has appointed a deputy licensee intends to leave
Hong Kong, or is, by reason of any disability, incapable of acting, he, or in the case
of disability, his legal representative shall by notice in writing notify the
Commissioner of such intention to leave or of such disability.

(5) A deputy licensee shall while the licensee is absent from Hong Kong, or is,
by reason of any disability, incapable of acting

(a) during such absence or disability;

(b)notwithstanding any absence of any notice under subsection (4); and

(c) without prejudice to the responsibility of the licensee, have the same
duties and liabilities as the licensee under this Ordinance.

(6) If a licensee and a deputy licensee leave Hong Kong at the same time for
more than 14 days subsection (1) shall apply as if no deputy licensee had been
appointed under subsection (2).





(7) In this section-
'deputy licensee' means a deputy licensee appointed under subsection (2);

'licensee' means the holder of a licence in respect of any premises in which

dutiable goods are thereby authorized to be stored or manufactured.

(Replaced 66 of 1986 s. 8)

11. Powers of the Customs and Excise Service

(1) Every member of the Customs and Excise Service shall for the purposes of
this Ordinance have power to do all or any of the following things

(a)to enter at all reasonable times or, if specially authorized in writing by
the Commissioner for the purposes of this section, at any time by day
and night and remain as long as he thinks fit upon any premises or
place in respect of which any person holds a licence and to inspect
and examine the premises or place and every part thereof,
(Amended3of1970s.7)

(b)to require the production of any licence, permit, and any book or
document kept in pursuance of this Ordinance or any other document
which has a bearing on the quantity, origin, value or nature of any
goods to which this Ordinance applies, and to inspect, remove and
detain for the purpose of examination for so long as the Commissioner
may consider necessary and to examine and copy any such books or
documents; (Amended 3 of 1970 s. 36; 34 of 1984 s. 2; 66 of 1986 s.
9)

(c)to make such examination and inquiry as may be necessary to
ascertain whether the provisions of this Ordinance are complied with
as respects any goods to which this Ordinance applies; (Amended 3
of 19 70 s. 36)

(d)without payment, to take such samples of any goods to which this
Ordinance applies as the Commissioner may direct for examination or
for ascertaining the duty payable on such goods, and samples so
taken for examination or for ascertaining the duty payable may be
disposed of as the Commissioner may think fit; and

(e)to exercise such other powers as may be necessary for giving effect
to the provisions of this Ordinance.

(2) The holder of every licence or permit issued under this Ordinance and his
servants or agents shall furnish the means required by a member of the Customs and
Excise Service as necessary for any entry, inspection, examination, inquiry or the
exercise of his powers under this Ordinance in relation to any goods to which this
Ordinance applies and which are or have been in the possession, custody or control
of such licensee or permittee.





(3) If in pursuance of this section any member of the Customs and Excise
Service, having demanded admission into any premises and declared his name
and business at any entrance thereof, is not immediately admitted, he and any
person acting in his aid may break into and forcibly enter the premises.

11A. Books and documents

(1) Any book or document kept in pursuance of this Ordinance shall be
kept in a legible form or in a non-legible form capable of being reproduced in a
legible form.
(2) If any book or document is kept otherwise than in a legible form, any
power conferred by this Ordinance to require the production of such book or
document, to remove and detain it for the purpose of examination, to examine
it or to take copies of it shall be construed as including power to require
production of it, to remove it and to detain it for the purpose of examination, to
examine or to take copies of a reproduction of the book or document or of the
relevant part of it in a legible form.
(Added 66 of 1986 s. 10)

12. Seizure without warrant

Any member of the Customs and Excise Service may without warrant-
(a)seize, remove and detain any goods to which this Ordinance
applies and in respect of which he finds or has reasonable cause
to suspect that an offence against this Ordinance has been
committed, or that the goods are otherwise liable to forfeiture
under this Ordinance; (Amended 3 of 1970 s. 36)
(b)stop and board any ship, aircraft, train or vehicle and search the
same and every part thereof, and may remain thereon as long as
it remains in Hong Kong.

13. Ships failing to bring to

The master of any ship not exceeding 250 tons gross tonnage in the waters
of Hong Kong who shall refuse to stop and receive any member of the Customs
and Excise Service on board such ship or who shall refuse or neglect, to bring
his ship to when hailed by a member of the Customs and Excise Service in
charge of any ship employed in the service of the Government of Hong Kong
having displayed the customary flag or having exhibited or made a recognition
signal shall be guilty of an offence and shall be liable to a fine of $5,000 in
addition to any other penalty to which he may be liable under the provisions of
this Ordinance.
(Amended 3 of 1970 s. 8)
[cf. 1952 c. 44 s. 78 U.K.]





14. Search of place or ship with warrant

or authority or by police officer

(1) Where it appears to any magistrate upon the oath of any person that there is
reasonable cause to believe that in any place there are concealed or deposited any
goods subject to forfeiture under this Ordinance, or with respect to which an offence
has been committed or is about to be committed against the provisions of this
Ordinance, the magistrate may, by his warrant directed to any member of the
Customs and Excise Service or to any police officer, empower such member or officer
by day or by night- (Amended3of1970s.36)

(a)to enter the place named in the warrant and there to search for and
seize, remove and detain any such goods; and

(b)to arrest any person being in such place in whose possession such
goods may be found, or whom such member or officer may
reasonably suspect of having concealed or deposited any such
goods there or thereabout. (Amended 66 of 1986 s.]])

(2) Such member or officer may, if necessary

(a)break open any outer or inner door of the place and enter thereinto;

(b) forcibly enter the place and every part thereof,

(e)remove by force any obstruction to such entry, search, seizure and
removal as he is empowered to effect;

(d)detain every person found in such place and prevent every person
from approaching or entering the same, until the search is complete;

(e)seize, remove and detain any such goods, whether in such place or in
any place whatever within Hong Kong, in the possession, custody or
control of any of the persons against whom his warrant has been
issued. (Amended 66 of 1986 s. 11)

(3) Whenever it appears to any member of the Customs and Excise Service
generally or specially authorized in writing by the Commissioner for the purposes of
this section, or to any police officer not below the rank of inspector, that there is
reasonable cause to believe that in any place there are concealed or deposited
goods liable to forfeiture under this Ordinance, or with respect to which an offence
has been committed or is about to be committed against this Ordinance, and he has
reasonable ground for believing that unless the place are searched forthwith the
goods are likely to be removed, the said officer in virtue of his office may exercise in,
upon and in respect of such place all the powers mentioned in this section as if he
were empowered to do so by warrant. (Amended 66 of 1986 s.]])

(4) (Repealed 66 of 1986 s. 11)

15. Seizure of things used for commission of offences

(1) Whenever it is lawful under this Ordinance for a member of the Customs and
Excise Service or a police officer to seize, remove and detain any





goods, it shall be lawful for him in a like manner to seize, remove and detain

(Amended 66 of 1986 s. 12)

(a) any receptacle in which the goods are contained;

(b)any ship not exceeding 250 tons gross tonnage or any vehicle or
aircraft not being a public transport or state aircraft in which the
goods are found; (Amended3of 1970s.9)

(c)any machinery, implement, utensil or material used or intended to be
used for the commission of an offence against this Ordinance;anf

(d)anything which may appear to be or to contain evidence that any
offence against this Ordinance has been or is about to be committed.
(Amended 3 of 1970 s. 36)

(2) For the purposes of this section, 'public transport' in relation to ,'vehicle'
means 'taxis' or 'public buses' as defined in section 2 of the Road Traffic
Ordinance (Cap. 374). (Amended 75 of 1982 s. 114)

16.Obstruction of member of the Customs
and Excise Service or police officer

No person shall-

(a)delay, obstruct, hinder or molest any person duly engaged in the
performance of any duty or in the exercise of any power imposed or
conferred on him by or under this Ordinance or any person acting in
his aid; or (Amended 3 of 1970 s. 36)

(b)rescue, damage or destroy any thing so liable to forfeiture or do
anything calculated to prevent the procuring or giving of evidence as
to whether or not any thing is so liable to forfeiture; or

(c)fail to produce any licence, permit, book or document which he is
required by or in pursuance of this Ordinance to produce; or

(d)fail to comply with the requisition of any person duly engaged in the
performance of any duty or the exercise of any power under this
Ordinance.

17. Restrictions on dealing with and
possession of certain goods

(1) No person shall import or export or have in his possession, custody or
control, or in any way deal with or dispose of, any goods to which this Ordinance
applies

(a)except in accordance with the provisions of this Ordinance; or
(Amended 3 of 19 70 s. 36)

(b)unless he has discharged all the obligations with respect to the
goods imposed upon him by or under this Ordinance.





(2) No person shall have in his possession, custody or control any goods
knowing that in respect thereof an offence against this Ordinance has been
committed:

Provided that no person shall be convicted of an offence against this
subsection if he proves that when such goods came into his possession, custody or
control he had good and sufficient reason to believe that the provisions of this
Ordinance relating to the goods had been complied with. (Amended 3 of 1970s.36)

(3) Subject to subsection (3A), where regulations prohibit the import, export,
production or manufacture of any goods to which this Ordinance applies except on
the authority of a prescribed licence or permit, no person shall import, export,
produce or manufacture such goods except on the authority of such a licence or
permit and in accordance with the terms thereof. (Replaced 29 of 1989 s. 2)

(3A) Subsection (3) does not apply in the case of goods which are exempt from
duty or in such other cases, in relation to duty-paid goods, as may be prescribed by
regulations, or in the case of transit cargo. (Added29 of 1989 s.2)

(3B) Where regulations prohibit the sale or supply of any liquor except on the
authority of a prescribed licence or permit, no person shall sell, or advertise or
expose for sale, or supply, or possess for sale or supply, such liquor except on the
authority of such a licence or permit and in accordance with the terms thereof.
(Added29of 1989s. 2)

(4) No person shall manufacture, make, distil, rectify, purify, refine or process
any spirit except under and in accordance with a licence. (Added 3 of 1970s.10)

(5) No person shall sell, advertise or expose for sale, or supply, or possess for
sale or supply, any goods to which this Ordinance applies as goods of a standard
prescribed by regulations, if the goods are not goods of that standard. (Amended 66
of 1986 s. 13)

(6) No person shall have any dutiable goods in his possession, custody or
control unless

(a) he is-

(i) the holder, or the servant of the holder, of a removal or export
permit, personally conveying the goods direct from one place,
ship, vehicle, train or aircraft to another place, ship, vehicle,
train or aircraft in accordance with the permit; or

(ii) the licensee, or the servant of the licensee, of a general bonded
warehouse, personally conveying the goods, if imported in a
ship, vehicle, train or aircraft and duly entered in the manifest,
direct from the ship, vehicle, train or aircraft in which they were
imported to the warehouse; or





(b) the goods are-

(i) in a general bonded or a licensed warehouse; or

(ii) in a place licensed for the manufacture of such goods; or

(iii)on railway premises and under the control of the railway
authorities, if the nature of the goods has been disclosed to
those authorities; or

(iv) in a ship, vehicle, train or aircraft, if the goods were imported, or
are to be exported, in that ship, vehicle, train or aircraft and are
duly entered in the manifest; or (Amended 66 of 1986 s. 13)

(v) in a place approved by the Commissioner under section 28A.
(Added66of1986s.13)

(7) No person, not being authorized so to do by permit or otherwise in
accordance with the provisions of this Ordinance, shall remove, deliver or send out
any dutiable goods from his stock, custody or possession; nor shall any person
take, receive or have in his stock, custody or possession any dutiable goods
removed or delivered thereto in contravention of this subsection.
(Amended3of1970s.36) [cf.1832c.16s.10 U.K.1

(8) No person shall, on his own account or on behalf of another, sell, offer for
sale or buy any dutiable goods which are in Hong Kong, unless the goods are

(a) in a general bonded or licensed warehouse; or

(b) in the place where they were manufactured; or

(c) in the ship, vehicle, train or aircraft in which they were imported;

or

(d) on the railway premises.

(9) The onus of proving that dutiable goods are in course of direct removal from
any place, ship, vehicle, train or aircraft to any other place, ship, vehicle, train or
aircraft shall be upon the accused.

(10) It shall be no defence to any charge under this section that the possession
or control of the accused was a joint possession or control. (Added 66 of 1986 s.
13)

18. (Repealed 29 of 1989 s. 3)

19. Goods embarked for export not to be relanded

(1) If any goods to which this Ordinance applies are placed on board any ship,
vehicle, train or aircraft for exportation or as stores and, except with the express
permission of the Commissioner in writing, are not duly exported or are unshipped or
removed or relanded in any part of Hong Kong, the master of the ship, the person in
charge of the vehicle, train or aircraft and any person by whom or by whose orders
or means the goods are so unshipped, removed or relanded, shall be guilty of an
offence, and the ship, if less than 250 tons gross





tonnage, vehicle, train or aircraft, not being a public transport or state aircraft, may
by order of a magistrate be forfeited. (Amended L.N. 294 of 1982)

(2) For the purpose of this section, 'public transport' in relation to ,'vehicle'
means 'taxi', 'public light bus' or 'public bus' as defined in section 2 of the Road
Traffic Ordinance (Cap. 374). (Amended 75 of 1982 s. 114)

(Amended 3 of 1970 s. 12)

[cf. 1876 c. 36 s. 120
U.K.]

20. Restrictions on import and export

Except with the written permission of the Commissioner, no goods to which this
Ordinance applies shall

(a)be imported or exported otherwise than by air, road, rail or sea and to
or from such ports or places and by such routes, or

(b)be landed from or loaded or taken on any ship, aircraft, train or vehicle
elsewhere than at such places,

as the Commissioner by notification in the Gazette may appoint.
(Amended L.N. 294 of 1982)

21. Penalty on not bringing to at stations;

or carrying away officers

(1) If any ship arriving in or departing from Hong Kong or on which any goods
to which this Ordinance applies are being imported or exported does not bring to at
such stations as may be appointed by the Commissioner for examination or for the
landing of officers from such ships, the master of the ship shall be guilty of an
offence and shall be liable on summary conviction to a fine of $5,000. (Amended3of
1970s. 13;L.N. 294 of 1982)

(2) If any ship departs from any such station without the knowledge of the
proper member of the Customs and Excise Service or from Hong Kong with any
member of the Customs and Excise Service or other Government officer on board,
without the consent of such member or officer, the master of the ship shall be guilty
of an offence and shall be liable on summary conviction to a fine of $5,000.

(3) This section shall apply to aircraft and vehicles and persons in charge
thereof as it applies to ships and the masters of ships.

[cf. 1876 c. 36 s. 136 U.K.; 1883 c. 55 s. 5 U.K.]

22. Import and export statements

(1) The owners, charterers or agents of every ship, aircraft or vehicle, in which
goods to which this Ordinance applies are imported or exported, or the master of
every such ship, the person in charge of every such aircraft or the driver of every
such vehicle shall, within 7 days or such longer period as the





Commissioner may specify, after the arrival in or departure from Hong Kong
of such ship, aircraft or vehicle furnish to the Commissioner at the office of
the Commissioner an accurate and complete statement of all such goods.
(Amended L.N. 294 of 1982)
(2) The owners, charterers or agents of every ship or aircraft which
arrives in or departs from Hong Kong having on board no goods to which this
Ordinance applies, or the master of every such ship or the persons in charge
of every such aircraft, shall, within 7 days or such longer period as the
Commissioner may specify, after such arrival or departure furnish to the
Commissioner or other prescribed officer at the office of the Commissioner a
statement that no such goods were carried in the ship or aircraft. (Amended 3
of 1970 s. 14; L.N. 294 of 1982; 66 of 1986 s. 14)
(3) Every statement furnished in accordance with the provisions of this
section shall be in a form approved by the Commissioner, signed by the party
furnishing it, and shall contain such particulars, if any, as may be prescribed
by regulations and such further particulars as the Commissioner or other
prescribed officer may require. (Amended L.N. 294 of 1982; 66 of 1986 s. 14)
(4) Separate statements shall be furnished in respect of each class of
goods specified in section 3 or by any resolution under that section:
Provided that-
(a)where no goods of a class so specified were carried, it shall be
sufficient to include a statement to that effect in any other
statement made under this section; and
(b)where no goods to which this Ordinance applies were carried, a
single statement to that effect shall suffice. (Replaced 3 of 1970
S.14)
(5) If any statement is not furnished in accordance with, or is furnished in
breach of, the provisions of this section, the owners, charterers and agents of
the ship, aircraft or vehicle, the master of the ship, the person in charge of the
aircraft and the driver of the vehicle, in respect of which the statement is, or
should have been, furnished, shall each and all be guilty of an offence.
(6) The Commissioner may, with respect to any case or class of cases,
grant in writing exemptions from any of the requirements of this section and
may impose conditions with respect to such exemptions. (Added 66 of 1986
s.14)

23. Removal of goods from ships, vehicles or aircraft

(1) If any goods to which this Ordinance applies are in any ship, vehicle
or aircraft or on the railway premises they shall not be removed therefrom by,
or discharged or delivered therefrom to, any person except the licensee of a
general bonded warehouse or the holder of a valid permit in that behalf or the
servant of such permittee or licensee:





Provided that

(a)goods put on board any ship, vehicle or aircraft or on the railway
premises under permit shall not be relanded or removed therefrom
except under permit; and

(b)this subsection shall not apply to duty-paid goods after their first
removal within Hong Kong from the ship, vehicle or aircraft on which
they were imported or from the railway premises.

(2) Where an offence of removing, discharging or delivering any goods from
any ship, vehicle or aircraft contrary to subsection (1) is proved to have been
committed, every person being an owner, charterer, agent, master or other person in
charge or comprador of the ship, vehicle or aircraft shall be deemed guilty of that
offence unless he proves that the goods were removed or discharged without his
knowledge and that he had exercised due diligence to prevent such removal or
discharge. (Amended3of1970s.15)

(3) Goods thrown overboard from any ship, vehicle or aircraft shall be deemed
to have been unlawfully removed therefrom in contravention of this section. [cf.
1876c.36s. 179 U.K.]

24. Ships' or aircraft stores, etc.

(1) Goods to which this Ordinance applies and which are imported as transit
cargo or which are to be used as ships' or aircraft stores shall, while the ship or
aircraft is in Hong Kong, be kept in the prescribed manner or, in the absence of such
provision, in a secure place under the custody and control of the master or person in
charge of the ship or aircraft. Goods so imported shall not be landed in Hong Kong
unless the landing of such goods is specially authorized by the Commissioner in
writing. (Amended 40 of 1974 s. 5)

(2) The issue of permits to export any dutiable commodities as ships' or aircraft
stores shall be at the absolute discretion of the Commissioner or any person
authorized by him.

(3) The master shall use only such quantity of dutiable commodities as ships'
stores as the Commissioner or any person authorized by him shall in his discretion
provide.

(Amended L.N. 294 of 1982)

25. Inspection, etc. of goods

(1) The Commissioner or any member of the Customs and Excise Service or
other person authorized by him in writing either generally or in any particular
instance may at all times inspect any goods to which this Ordinance applies and
place locks, marks or seals on any container or place in which they maybe. (Amended
L.N. 294 of 1982)

(2) Where in pursuance of any powers conferred by this section the
Commissioner, any member of the -Customs and Excise Service or an





authorized officer has placed any lock, mark or seal upon any goods in any place,
ship, vehicle, train or aircraft or upon any container in which such goods are kept,
then if, without the authority of the Commissioner or such member or officer, at any
time or in the case of a ship, vehicle, train or aircraft, while the ship, vehicle, train or
aircraft is within the limits of Hong Kong, that lock, mark or seal is opened, altered or
broken, or if, before that lock, mark or seal is lawfully removed, any of the goods are
conveyed away, any person so doing and the person who was in control of the
goods, container or place at the time any such lock, mark or seal was placed upon
them or the master of the ship or person in charge of the vehicle, train or aircraft
shall be guilty of an offence and shall be liable to a fine of $5,000. (Amended 66 of
1986 s. 15) [cf. 1952 c. 44 s. 70 U.K.]

26. Assessment of duty and drawback

(1) Subject to the provisions of sections 4 and 26A, the duty on dutiable goods
or any drawback shall be assessed by the Commissioner or any officer authorized by
him in that behalf, and the duty shall be paid at such times and to such officer, at the
office of the Commissioner or elsewhere, as he may direct. In assessing the duty or
drawback on any goods allowance may be made for any loss or contraction which
may since the goods became dutiable have occurred therein from unavoidable
accident or natural causes and, in the discretion of the Commissioner, for waste or
loss in manufacture if the loss, contraction or waste has been duly notified and
accounted for to the satisfaction of the Commissioner. The decision of the
Commissioner as to the amount of duty or drawback payable on any goods shall be
final. (Amended`46of 1980s. 3;34of 1984s.3)

(2) Where any notification of duty payable is given under the provision of
subsection (1) such notice shall be deemed to have been duly served on the person
concerned

(a)if given verbally by the Commissioner or other authorized officer to
the person responsible; or

(b) if delivered to him personally; or

(c)if addressed to him and left or forwarded by registered post to him at
his usual or last known place of abode or business.

(Amended L.N. 294 of 1982)

26A. Value of goods and assessment of ad valorem duty

(1) Subject to subsections (2), (2A), (3), (4) and (5), for the purpose of assessing
and calculating duty by reference to the value of any goods, the value shall be the
normal price which the goods would fetch, at the relevant time, on their sale in the
open market between a buyer and seller independent of each

other.(Replaced 20 of 1985 s. 5)





(2) The normal price of any imported dutiable goods shall be determined on the
assumptions that

(a)the goods are treated as having been delivered to the buyer at the
place of importation;

(b)the seller will bear freight, insurance, commission and all other costs,
charges and expenses incidental to the sale and the delivery of the
goods at that place;

(c) the buyer will bear any duty payable in Hong Kong.

(M) The normal price of any dutiable goods manufactured in Hong Kong shall
be determined on the assumptions that

(a)the goods are treated as having been delivered to the buyer at his
premises;

(b)the seller will bear transport, insurance, commission and all other
costs, charges and expenses incidental to the sale and the delivery of
the goods to the buyer; and

(c)the buyer will bear any duty payable in Hong Kong. (Added 20 of
1985 s. 5)

(3) A sale in the open market between a buyer and seller independent of each
other pre-supposes that

(a) the price is the sole consideration;

(b)the price made is not influenced by any commercial, financial or other
relationship, whether by contract or otherwise, between the seller or
any person associated in business with him and the buyer or any
person associated in business with him (other than the relationship
created by the sale of the goods in question); and

(c)no part of the proceeds of the subsequent re-sale, use or disposal of
the goods will accrue either directly or indirectly to the seller or any
person associated in business with him.

For the purposes of this subsection, 2 persons shall be deemed to be associated in
business with one another if, whether directly or indirectly, either of them has any
interest in the business or property of the other, or both have a common interest in
any business or property, or some third person has an interest in the business or
property of both of them.

(4) For the purpose of subsection (1), the Commissioner or any officer
authorized by him in that behalf may, subject to subsection (5), accept the value of
the goods as stated in the contract of sale, invoice or other document, relating to the
goods and produced under section 27, if the date of the contract of sale, invoice or
other document precedes the date on which the duty is assessed by not more than
12 months.

(5) 1f--

(a)an importer or manufacturer fails to produce any contract of sale,
invoice or other document required to be produced by the

Commissioner under section 27;(Amended20 of 1985 s.5)





(b)in the opinion of the Commissioner or any officer authorized by him in
that behalf the information in any contract of sale, invoice or other
document produced under section 27 is insufficient or inaccurate as to
the value of the goods; or

(e)in the opinion of the Commissioner or any officer authorized by him in
that behalf the value of the goods stated in any contract of sale,
invoice or other document produced under section 27 is not the value
in accordance with subsection (1),

the Commissioner or such officer may fix a value which shall be deemed to be the
value of the goods for the purpose of assessing and calculating duty.

(6) If in any contract of sale, invoice or other document produced under section
27 the value of the goods is stated in any currency other than Hong Kong dollars,
the Hong Kong dollars equivalent of such other currency shall be calculated at the
opening indicative counter exchange selling rate published by the Hong Kong
Association of Banks, in the case of a person permitted to make monthly returns, on
the last date of that return or, in any other case, on the day the goods are imported,
and where no such rate is published the Hong Kong dollars equivalent shall be
calculated at such rate of exchange as may be determined by the Commissioner, after
consulting the 2 note-issuing banks. (Amended 66 of 1986 s. 16)

(7) Any person who is aggrieved by the exercise of the powers conferred by
subsection (5) or (6) may appeal by way of petition to the Governor.

(8) In this section 'relevant time' means

(a) in the case of imported goods the time such goods are imported;

(b)in the case of goods manufactured in Hong Kong the time such goods
are removed from the premises on which they were manufactured.
(Added 20 of 1985 s. 5)

(Added 34 of 1984 s. 4)
[cf. 1952 c. 44 s. 258 U.K.]

27. Production of documents necessary

for calculating duty

(1) The Commissioner may require the importer or manufacturer of any goods to
which this Ordinance applies to produce contracts of sale, invoices, books of
account and any other documents which the Commissioner considers are necessary
for the purpose of assessing and calculating duties and such documents may be
retained by the Commissioner and disposed of as he may think fit. (Amended L.N.
294 of 1982; 34 of 1984 s. 5)

(2) Any document required to be produced under subsection (1) shall, if the
Commissioner so requires, be accompanied by a declaration in a form

specified by the Commissioner.(Added34 of 1984 s.5)





27A. Production of document as to origin of juice

The Commissioner may require the importer or manufacturer of any juice, or of
anything which purports to be juice, to produce a document in a form approved by
the Commissioner accurately showing the type of fruit or vegetable from which the
juice was obtained, and, in the case of juice which is a mixture of juices, the
proportion of each in the mixture.

(Added 20 of 1985 s. 6)

28. Delivery of imported goods on giving security for duty

(1) Where it is impracticable immediately to ascertain whether any or what duty
is payable in respect of any imported goods which are imported into, or
manufactured in, Hong Kong, the Commissioner or other officer authorized in
accordance with section 26 or 26A may, if he thinks fit and notwithstanding any
other provision of this Ordinance, allow these goods to be delivered upon the
importer giving a security by deposit of money or otherwise to his satisfaction for
the payment of any amount unpaid which may be payable by way of duty.
(Amended3of 1970s. 16;34 of 1984s. 6;20of1985s. 7)

(2) Where goods are allowed to be delivered under this section the
Commissioner or authorized officer shall, when he has determined the amount of
duty which in his opinion is payable, give to the importer a notice specifying the
amount; and the amount so specified or, where any amount has been deposited
under subsection (1), any difference between those amounts shall forthwith be paid
or repaid, as the case may require.

(Amended L.N. 294 of 1982)
[cf. 1952 c. 44 s. 255(1) & (3) U.K.]

28A. Goods imported for processing
or repacking for export

(1) Where the Commissioner is satisfied that any dutiable goods

(a)were imported solely for the purpose of further processing or
repacking for export; or

(b) which are beer, are solely for export, he may in writing grant permission
for those goods to be delivered to, or stored in, a place approved by him. (Replaced
16 of 1988 s. 2)

(2) The Commissioner may impose conditions in relation to permission granted
under subsection (1) and may, in addition, require the owner of such goods to
furnish such security, either in cash or by means of a bond, as the Commissioner
requires to ensure~-

(a) the due observance of conditions imposed under this section;

(b) the export of the goods; and

(c) the safe and secure keeping of the goods in the place.





(3) Upon any failure to observe any condition imposed under subsection (2),
any security furnished under that subsection shall be forfeited to the Crown,
without prejudice to any other penalty which may be imposed.

(4) Notwithstanding subsection (3), the Governor in Council may entertain and
give effect to any moral claim in respect of any security so forfeited.

(Added 66 of 1986 s. 17)

29. Liability of licensee of general

bonded or licensed warehouse

(1) The licensee of every general bonded or licensed warehouse shall be liable
for the duty payable in respect of any goods of which he has, or has had, the
custody, whether the goods are in his warehouse or not, until the goods are removed
from the warehouse in accordance with a permit under this Ordinance and shall in
addition be presumed to have unlawfully and in contravention of this Ordinance
removed any dutiable goods of which he has had the custody and for which he
cannot account; a deficiency shall be deemed not sufficiently accounted for unless it
is shown to the satisfaction of the Commissioner to have been caused by natural
waste, leakage, breakage or by some other accident or event, other than an error in
accounting, which the licensee could not reasonably have foreseen.
(Amended3of1970s.17)

(2) If when assessing duty under the provisions of subsection (1) it is not
possible to ascertain the exact quantity, nature or value of the goods concerned, the
Commissioner may assess duty on the basis of the best evidence available or where
such evidence does not exist or is not considered to be correct he may decide on the
quantity and nature of the goods or he may fix a value which shall be deemed to be
the value of the goods for the purposes of calculation of duty.

(3) Any person who is aggrieved by a decision of the Commissioner made
under subsection (2) may appeal by way of petition to the Governor in Council.

(Amended L.N. 294 of 1982)

30. Contracts for sale of duty-paid goods

when duties are altered or repealed

(1) When any new duty is imposed and when any duty is increased and any
duty-paid goods are delivered on or after the day on which the new or increased
duty takes effect, in pursuance of a contract made before that day, and the seller has
paid such new or increased duty, he may in the absence of any agreement to the
contrary recover as an addition to the contract price a sum equal to the amount paid
by him in respect of the goods on account of the new duty or the increase of duty,
as the case may be.





(2) When any duty is repealed or decreased and any duty-paid goods are
delivered on or after the day on which the duty ceases or the decrease in duty
takes effect, in pursuance of a contract made before that day, the buyer, in the
absence of any agreement to the contrary, may, if the seller has had in respect of
those goods the benefit of the repeal or decrease in the duty, deduct from the
contract price a sum equal to the amount of the duty or the decrease of duty, as
the case may be.
(3) When any addition to or deduction from the contract price may be
made under this section on account of any new or repealed duty, such sum as
may be agreed upon, or in default of agreement as may be determined by the
Commissioner, as representing in the case of a new duty any expenses incurred
and in the case of a repealed duty any expenses saved may be included in the
addition to or deduction from the contract price and may be recovered or
deducted accordingly. (Amended L.N. 294 of 1982)
(4) This section shall apply although the goods have undergone some
process of manufacture since the duty was paid.

31. Execution and distress against licensees

(1) Where any sum is owing by any person licensed under the provisions
of this Ordinance in respect of any duty or of any penalty incurred by him
under this Ordinance, all goods on which duty is liable to be paid, whether or
not that duty has been paid, and all materials for manufacturing or producing
any such goods and all apparatus, equipment, machinery, tools, vessels and
utensils for, or for preparing any such materials for, such manufacture or
product or by which the trade in respect of which the duty is imposed is carried
on, which are in the possession, custody or control of that licensee or of any
agent of his or of any other person on his behalf or which, whether or not still
in such custody or possession, were in such custody or possession-
(a)at the time when the duty was charged or became chargeable or
at any time while it was owing; or
(b)at the time of the commission of the offence for which the penalty
was incurred,
shall be liable to be taken in execution in default of the payment of that sum.
(Amended 3 of 1970 s. 36)
(2) Notwithstanding anything in subsection (1), where the Commissioner
or other officer authorized under section 26 or 26A has taken account of and
charged any goods chargeable with duty, and those goods are in the ordinary
course of trade sold for full and valuable consideration to a bona fide purchaser
and delivered into his possession before the issue of any warrant or process for
distress or seizure of the goods, those goods shall not be liable to be seized
under subsection (I):(Amended L.N. 294 of 1982; 34 of 1984 s. 7)





Provided that, where any goods have been so seized, the burden of proof
that the goods are by virtue of this subsection not liable to be so seized shall lie
upon the person claiming that they are not so liable.
(3) Where any duty payable by a licensee remains unpaid after the time
within which it is payable, the Commissioner may authorize in writing any
person to distrain anything liable to be taken in execution under this section
and to sell anything so distrained by public auction after giving 7 days' notice of
the sale:
Provided that where the licensee is a distiller, brewer, or manufacturer, he
may, subject in the case of a distiller to the requirements of this Ordinance as to
permits for the removal of spirits, at any time before the date appointed for the
sale, remove the whole or part of any product or materials for his manufacture
which may have been so distrained upon paying to the Commissioner in or
towards payment of the duty the true value of those products or materials.
(Amended 3 of 1970 s. 36; L.N. 294 of 1982)
(4) Any notice required by subsection (3) shall be given by the
Commissioner in writing to any person, who to his knowledge was at the time
of seizure the licensee or the agent or servant of the licensee, and shall be
deemed to have been duly served on the person concerned- (Amended L.N.
294 of 1982)
(a) if delivered to him personally; or
(b)if addressed to him and left or forwarded by registered post to
him at his usual or last known place of abode or business.
(5) Where such notice cannot be served as provided in subsection (4) then
a notice that anything has been seized in default of any payment in accordance
with the provisions of subsection (1) shall be exhibited in a place available to
the public at the office of the Commissioner for a period of 7 days, such period
to commence 7 days before anything is sold. (Amended L.N. 294 of 1982)
(6) The proceeds of sale of any such distress as aforesaid shall be applied
in or towards payment of the cost and expenses of the distress and sale and in
or towards payment of the duty due from the licensee, and the surplus, if any,
shall be paid to the licensee.
[cf. 1952 c. 44 s. 253 U.K.]

32. Recovery of duty, etc.
Without prejudice to any other mode of recovery provided in this
Ordinance, any duty payable or sum forfeited or deemed to be forfeited under
this Ordinance shall be deemed to be a debt due to the Crown.

33. Search of baggage and goods
(1) Any person landing from or proposing to embark in any ship or
aircraft or entering or leaving Hong Kong by land shall on demand by any





member of the Customs and Excise Service or police officer either permit his
person, goods and baggage to be searched by such member or officer or
together with his goods and baggage accompany such member or officer to a
place appointed by the Commissioner or to the office of the Commissioner or to
a police station and there permit his person, goods and baggage to be searched
by any member of the Customs and Excise Service or police officer in the
presence or under the supervision of a member of the Customs and Excise
Service not below the rank of revenue inspector or a police officer not below the
rank of inspector: (Amended 46 of 1977s. 17; L.N. 294 of 1982)
Provided that-
(a) no female person shall be searched except by a female; and
(b)the goods and baggage of any person who wishes to be present
when they are searched shall not be searched except in his presence.
(2) Any member of the Customs and Excise Service or police officer may
make the searches authorized by this section and any person who refuses to
comply with any lawful demand under this section may be arrested without
warrant by the officer making the demand.

34. Examination of articles (other than
baggage) on shore, ship, etc.
Any box, chest, package or other article, other than passenger's baggage
accompanied by the owner thereof, which is being landed from or is being
embarked on any ship, aircraft, vehicle or train or has been landed therefrom or
is in or on board thereof, or which is on or is being removed from or on to any
island, landing place, wharf, warehouse, platform or place adjoining thereto or
used in connection therewith, or which is being brought into or which is being
taken out of or has been brought into Hong Kong by land, sea or air-
(a)may be examined and searched by any member of the Customs
and Excise Service and may be detained until any person in
charge thereof has opened the same for such examination and
search, and if not so opened may be removed by such member
of the Customs and Excise Service to such place as the
Commissioner may direct;
(b)may be broken open by the orders of any member of the Customs
and Excise Service authorized by the Commissioner in that behalf
either generally or for a particular occasion, or of any police
officer not below the rank of inspector, for such examination and
search:
Provided that any person in charge or possession of such
box, chest, package or other article shall be given every
reasonable facility for being present at such breaking,
examination and search.
(Amended L.N. 294 of 1982)





35. (Repealed 66 of 1986 s. 18)

36. Misrepresentation, concealment, removal of

goods, and defacement of licence or permit

(1) No person shall make any incomplete statement or declaration or furnish any
incorrect information, whether or not such statement, declaration or information is
made verbally or in writing, or apply any incorrect description or supply any
incorrect particulars in any document made or furnished for the purposes of this
Ordinance or in connection with any application for any drawback or for any licence
or permit to be issued under this Ordinance.

(2) Any person who

(a)with intent unduly to obtain any drawback or any greater drawback
than that to which he is entitled or who attempts to evade payment of
duty on any goods to which this Ordinance applies, embarks or
causes to be embarked for exportation on any ship or aircraft, or
produces or causes to be produced to any member of the Customs
and Excise Service to be so embarked--

(i)any goods to which this Ordinance applies and which are not
entitled to drawback or not intended for export; or

(ii) any goods, matter or thing as goods to which this Ordinance
applies, the same not being goods to which this Ordinance
applies or which are different in type, nature, quantity or quality
from the goods shown on any export permit or statement which
is presented and which purports to cover such goods; or

(b)with any such intent fraudulently removes, deposits or conceals any
goods, matter or thing; or

(e)after any goods to which this Ordinance applies have been embarked
for exportation on any ship or aircraft, without the consent of the
Commissioner opens the packages in which the goods are contained
or cancels, or obliterates, or alters the marks, letter or devices thereon,

shall on summary conviction, in addition to all other penalties which he may thereby
incur, pay or forfeit either treble the amount of duty payable on any goods involved
or such drawback as the case may be or the sum of $5,000, at the election of the
Commissioner (which election shall be certified by the Commissioner in writing under
his hand), and all such goods, matters or things shall be forfeited and may be seized
by any member of the Customs and Excise Service. (Amended L.N. 294 of 1982)

(3) No person shall without lawful authority alter, deface or make any erasure
on a licence or permit, or have in his possession a licence or permit on which such
an erasure has been made or which has been so defaced or altered.

[cf. 1840 c. 18 s. 15 U.K.; 1918 c. 15 s. 15(5) U.K.]





37. Counterfeiting documents, etc.

No person shall-
(a)counterfeit or falsify any document which is required by or under
the provisions of this Ordinance or which is used in the
transaction of any business relating to any trade involving goods
to which this Ordinance applies; or
(b)knowingly accept, receive, or use any such document so
counterfeited or falsified; or
(c)without lawful authority alter or deface any such document after
it is officially issued; or (Amended 66 of 1986 s. 19)
(d)counterfeit any seal, signature, initials or other mark of or used
by any officer for the verification of such a document or for
the security of goods or for any other purpose relating to the
provisions of this Ordinance.
(Amended 3 of 1970 s. 36)
[cf. 1952 c. 44 s. 302 U.K.]

38. Restrictions on use and transfer of permits and licences

(1) No person shall without the consent of the Commissioner or an officer
authorized in accordance with section 7-
(a) transfer; or
(b) supply, permit or allow any other person to use,
any licence or permit issued under this Ordinance.
(2) No person shall, without the consent of the Commissioner or an
officer authorized in accordance with section 7, receive, obtain or use any
permit or licence issued to any other person under this Ordinance.
(Amended 3 of 1970 s. 36; L.N. 294 of 1982)

39. (Repealed 66 of 1986 s. 20)

40. Presumptions

In all proceedings under this Ordinance and in all proceedings for the
recovery of any duties imposed by or under this Ordinance, it shall be presumed
until the contrary is proved-
(a)that any goods to which this Ordinance applies are dutiable
goods;
(b)that dutiable goods on any premises are in the possession of
the licensee, tenant, lessee, occupier or person in charge of such
premises;





(c)that every person employed in or about any licensed premises is
employed by the person named in the licence or in charge of the
premises, as the case may be;
(d) that goods delivered or supplied are goods sold;
(e)that goods are of the weight and measure described in any bill of
lading, air waybill, permit or other document accompanying or
relating to the goods.(Amended 66 of 1986 s.21)

41. Import manifests to he evidence of importation

In any proceedings in respect of or involving any matter, civil or criminal,
arising from or in connection with this Ordinance, if any cargo appears on any
import manifest furnished to the Commissioner by the owners, charterers or
agents of any ship or aircraft, or by the master of a ship or person in charge of
an aircraft, at any time before or after the arrival of such ship or aircraft in
Hong Kong, it shall be presumed in favour of the Crown against any other
party that such cargo was imported into Hong Kong on board such ship or
aircraft unless any such other party proves affirmatively that such cargo was
not in fact carried into Hong Kong on board such ship or aircraft.
(Amended 3 of 1970 s. 36; L.N. 294 of 1982)

42. Certain certificates to he evidence

In all proceedings under this Ordinance and in all proceedings for the
recovery of any duty on goods to which this Ordinance applies, copies of or
extracts from the records of the Commissioner or the officer authorized to grant
any licence or permit, purporting to be certified by him, shall be prima facie
evidence of the facts stated or appearing therein or to be inferred therefrom.
(Amended 31 of 1969 Schedule; L.N. 294 of 1982)

43. Magistrate may call in expert

The magistrate hearing any charge under this Ordinance may, at the
request of the accused, employ an analyst or other expert to report on any
matter of a technical nature.

44. Informers

Save where, in the opinion of the court or magistrate, justice so requires,
the name or identity of any informer and the information given by such
informer shall not be disclosed in any civil or criminal proceedings and the
court or magistrate may make any order and adopt any procedure necessary to
prevent any such disclosure.





45. Manner of seizure not to be inquired into by court

On any trial before any magistrate and in any proceedings on appeal in the
High Court relating to the seizure of anything under this Ordinance, the magistrate
or the court shall proceed to such trial and to the hearing of such appeal on the
merits of the case only, without reference to matters of form and without inquiring
into the manner or form of making any seizure except in so far as the manner or form
of seizure may be evidence on such merits.

46. Offences and penalties

(1) Except as otherwise expressly provided, any person who contravenes the
provisions of sections 16, 17, 19, 20, 22, 23, 24, 36, 37, 38, 55, 56, 58, 61, 68, 71 and 73
shall commit an offence and shall, in addition to any forfeiture which may be ordered,
be liable on summary conviction to a fine of $100,000 and to imprisonment for 2
years. (Amended 3 of 1970 s. 19; 40 of 1974 s. 7; 34 of 19 76 s. 5; 66 of 1986 s. 22)

(2) Any person who contravenes any condition, restriction, requirement or
direction lawfully imposed, made or given under this Ordinance shall be guilty of an
offence and, in addition to any forfeiture which may be ordered, shall be liable on
summary conviction to a fine of $10,000 and to imprisonment for 1 year. (Added3 of
1970s.19. Amended 34 of 1984 s. 8)

(3) In any case where a magistrate is of the opinion that an offence was
committed with intent to avoid payment of duty, he may in addition to any fine
imposed under subsection (1) or (2) inflict a fine not exceeding 10 times the amount
of duty payable on the goods in respect of which the offence was committed.
(Amended3of 1970s. 19)

46A. Liability for acts of servants

(1) Where an offence against this Ordinance is committed by a servant of a
licensee, the licensee shall, without prejudice to the liability of any other person, also
be guilty of that offence but shall not be liable to any term of imprisonment.

(2) Where a prosecution is brought against a licensee by virtue of this section
in respect of an offence committed by a servant, it shall be a defence

(a) in the case of an offence against section 61, 71, 72 or 73, if the

licensee shows that he exercised such control over the servant
as would ensure that the servant was not likely to act in
contravention of that section; or (Amended 40 of 1974 s. 8; 34
of 1976 s. 6)

(b)in the case of any other offence, if the licensee shows that he took all
practicable steps to prevent the commission of the offence.





(3) Where a licence is granted to any person wholly or partly for the benefit of a
company references to 'licensee' in this section shall be read as including
references to the company.

(Added 3 of 1970 s. 20)

47. Commencement of prosecution

Any prosecution of any person for any offence against the provisions of this
Ordinance shall be commenced within 12 months from the date of such offence or 6
months from the discovery of the offence whichever is the later.

(Amended 3 of 1970 s. 36)

48. Forfeiture

(1) Wherever there occurs a contravention or an attempted contravention of
any provision of this Ordinance in respect of any goods, such goods shall be liable
to forfeiture whether or not any person is convicted of any offence. (Amended 3 of
1970 s. 36)

(2) Wherever there occurs a contravention or an attempted contravention of
any provision of this Ordinance, any thing which is mentioned in section 15(1)(a),
(b), (e) and (d) and which is made use of in such contravention or attempted
contravention shall be liable to forfeiture whether or not any person is convicted of
any offence. (Amended3of1970s.36)

(3) The Commissioner shall within 21 days of seizure give notice of the seizure
of any such goods or thing as liable to forfeiture to any person who to his
knowledge was at the time of the seizure the owner or one of the owners thereof..
(Amended L.N. 294 of 1982)

Provided that where there appears to be more than one owner notice given to
any one such owner shall satisfy the provisions of this section.

(4) Notice under subsection (3) shall be given in writing and shall be deemed to
have been duly served on the person concerned

(a) if delivered to him personally; or

(b)if addressed to him and left or forwarded by registered post to him at
his usual or last known place of abode or business.

(5) Where a notice under subsection (3) cannot be given, then a notice of the
seizure together with the date and place thereof shall be exhibited in a place available
to the public at the office of the Commissioner for a period of 7 days, such period to
commence within 21 days after the seizure. (Amended L.N.294 of 1982)

(6) Any person claiming that any goods or thing seized as liable to forfeiture is
not so liable shall, within 1 month of the date of notice of seizure, give notice of his
claim in writing by registered post or by delivery by hand of

the same to the office of the Commissioner.(Amended L.N. 294 of 1982)





(7) If on the expiration of the relevant period aforesaid for the giving of
notice of claim in respect of any goods or thing no such notice has been given to
the Commissioner, the goods or thing in question shall be deemed to have been
duly condemned as forfeited. (Amended L.N. 294 of 1982)
(8) When notice of claim in respect of any goods or thing is duly given in
accordance with subsection (6), the Commissioner shall apply to a magistrate
for the condemnation of such goods or thing and if the magistrate finds that the
goods or thing was at the time of seizure liable to forfeiture he shall condemn
them or it as forfeited. (Amended L.N. 294 of 1982)
(9) In any application to a magistrate as aforesaid-
(a)the claimant shall first satisfy the magistrate that at the time of
the seizure the claimant had a proprietary interest in the goods or
thing so seized;
(b)a certified true copy of the record of evidence and proceedings,
including the decision of the court in any criminal trial relating to
such goods or thing, shall be admissible in evidence;
(c)a certificate purporting to be issued under the hand of the
Director of Marine certifying the gross tonnage of any ship shall
be admissible in evidence upon production of the certificate and
without proof of the signature thereon;
(d)a certificate purporting to be issued under the hand of the
Director of Marine certifying that the gross tonnage of any
ship does not exceed 250 gross tons shall upon production of
the certificate and without proof of the signature thereon be
conclusive evidence as to the facts stated therein.
(10) If no claimant satisfies the magistrate that at the time of seizure he had
a proprietary interest in the article or thing so seized, such article or thing shall
be deemed to be forfeited.
(11) Where proceedings as aforesaid are taken for condemnation of a
ship, vehicle or aircraft the magistrate may order delivery to the claimant of
the ship, or vehicle or aircraft seized until the hearing of the case on security
being given by payment into court of a sum of money equivalent to the value
of the ship, vehicle or aircraft as assessed by the Commissioner and if the ship,
vehicle or aircraft is not surrendered to the Commissioner before or at the
hearing of the case the security shall be deemed to be forfeited: (Amended
L.N. 294 of 1982)
Provided that nothing in this subsection shall prevent an order for
forfeiture being made in respect of such ship, vehicle or aircraft.
(12) Notwithstanding the earlier provisions of this section, it shall be
lawful for the Governor in Council in his absolute discretion after the
conclusion of legal proceedings, if any, to entertain and to give effect to any
moral claim to or in respect of any article or thing liable to forfeiture if, within 6
weeks after the article or thing is condemned as forfeited, notice in writing of





such oral claim is given either personally or by registered post to the Clerk of
Councils. (Amended3of 1970s.21)

49. Evidence of forfeiture

Forfeiture by order of a magistrate under this Ordinance may be proved in any
court, or before any competent tribunal, by the production of a certificate of such
forfeiture purporting to be signed by the magistrate or by an examined copy of the
record of such forfeiture certified by the magistrate's clerk.

50. Protection of members of Customs and Excise

Service in forfeiture proceedings

(1) Where in any proceedings which may involve the condemnation of anything
seized as liable to forfeiture judgment is given for the claimant the magistrate may
certify that there were reasonable grounds for the seizure.

(2) Where any proceedings, civil or criminal, are brought against the
Commissioner, any member of the Customs and Excise Service or other public officer
in respect of anything seized or forfeited which has subsequently been restored to
any person under the provisions of this Ordinance, then if the court is satisfied that
there were reasonable grounds for the seizure and for the restoration of such thing,
the plaintiff or the prosecutor shall not be entitled to recover any damages or costs
and the defendant shall not be liable to any punishment. (Amended3of 1970s. 22;L.N.
294 of 1982)

51. Goods abandoned as not worth the duty

(1) Dutiable goods abandoned by the importer or proprietor as not worth the
duty may be destroyed or disposed of within such time and in such manner as the
Commissioner may direct.

(2) Dutiable goods unclaimed by the importer or proprietor after a period of 7
days from the time of notice being given by the Commissioner that the goods had
been received into his custody shall be deemed to have been abandoned as not
worth the duty and may be disposed of in the manner prescribed in subsection (1).

(Amended L.N. 294 of 1982)

52. Sale of perishables

If any article seized under the provisions of this Ordinance is, in the opinion of
the Commissioner, of a perishable nature or of such nature that it may deteriorate if
stored for any length of time, such article may, by direction of the Commissioner, be
sold and the proceeds thereof retained to abide the result of any claim that may
legally be made in respect thereof.

(Amended L.N. 294 of 1982)





PART 111

LIQUORS

53. Interpretation

(1) In the application of this Ordinance to liquor-, (Amended 66 of

1986s.23)

'adulterated liquor' means any liquor mixed or coloured with any ingredient
whatever or with water, so as to increase the bulk and measure of the liquor, to
impair its quality or to conceal its inferior quality, and any liquor, whether
injurious to health or not, which is in nature and quality not virtually as labelled,
but does not include

(a)whisky or rum mixed with water only so as not to reduce the strength
below 42% of ethyl alcohol by volume; (Amended 34 of 1982 s. 2; 35
of 1984 s. 2)

(b)brandy, gin or vodka mixed with water only so as not to reduce the
strength below 40% of ethyl alcohol by volume; (Amended 34 of 1982
s. 2)

(e)brandy which in the opinion of the Commissioner is very old liqueur
brandy; (Amended L.N. 294 of 1982)

(d)beer mixed with water in course of its manufacture by a person
licensed under section 17 to manufacture such beer; (Added 46 of
1980 s. 4)

(Replaced 83 of 19 76 s. 2)

'alcoholic strength' in relation to

(a)any liquor means the volume of ethyl alcohol (also known as ethanol)
contained in the liquor in percentage proportion to the volume of the
liquor at the standard temperature of 20'C as determined by a method
approved by the Government Chemist; and

(b)a mixture containing methyl alcohol (also known as methanol) means
the volume of methyl alcohol contained in the mixture in percentage
proportion to the volume of the mixture at the standard temperature of
20'C as determined by a method approved by the Government Chemist;
(Added34 of 1982 s.2)

'beer' includes ale, porter, stout, spruce beer, black beer and any other kind of beer
and extends to any liquor made or sold as beer or as a substitute for beer;
(Amended 66 of 1986 s. 23)

'Chinese type spirits' means any intoxicating liquor

(a)obtained by the distillation of the fermented mash of rice, molasses,
sugar, millet or an admixture of molasses and sugar up





to and including a strength of alcohol by volume at 20'C of 58% for
spirit made from rice or from molasses or sugar or both, and 70% for
spirit made from millet; and

(b)commonly consumed by Chinese and not by Europeans; (Replaced
66 of 1986 s. 23)

'cider' means any intoxicating liquor obtained from the fermentation of apple juice;
(Added 66 of 1986 s. 23)

'denatured spirits' means

(a)liquor to which has been added crude pyridine, of a quality approved
by the Government Chemist, in the proportion of half a litre of such
pyridine to each 100 1 of liquor, and which has been coloured to the
satisfaction of the Government Chemist with methyl violet; (Amended
L.N. 189 of 1982)

(b)liquor which has been mixed with an equal volume of Chinese
vinegar, if such vinegar contains not less than 2% by weight of acetic
acid;

(ba) liquor which has been mixed with a substance or substances
approved by the Government Chemist and which the Commissioneris
satisfied is for industrial use; and (Added61of1972 s. 2. Amended
L.N. 294 of 1982)

(e)any other liquor which the Government Chemist certifies cannot
practicably be converted to an intoxicating liquor by dilution,
distillation, flavouring, or any other process or processes; (Replaced
3 of 1970 s. 23. Amended 61 of 1972 s. 2; 20 of 1985 s.8)

'industrial type liquor' means a liquor not intended for use as a beverage; (Added
66 of 1986 s. 23)

'intoxicating liquors' includes spirits, liqueurs, wines, beer, Chinese type spirits and
all other liquors fit or intended for use as a beverage;

liquor 'alcoholic liquor', 'spirituous liquor' or 'spirit' means any liquid which
contains more than 1.2% of ethyl alcohol by volume except

(a) denatured spirits;

(b)any such liquid that is an ingredient in any goods, if that liquid
cannot be converted to pure ethyl alcohol or to an intoxicating liquor
or if such a conversion would not be economical; (Replaced 29 of
1989 s. 4)

perry means any intoxicating liquor obtained from the fermentation of pear juice;
(Added66 of 1986s.23)

'sparkling wine' means wine which, when the receptacle containing the beverage is
opened, releases carbon dioxide and having, when contained in the receptacle
prior to such opening, an excess pressure of not less than 300 kPa at a
temperature of 20' C; (Added 66 of 1986 s. 23)

',still wine' means wine other than sparkling wine;(Added 66 of 1986 s. 23)





'wine' means a liquor obtained from the fermentation of fresh grapes or fruit,

or of the must of fresh grapes or fruit, whether or not that liquor is
fortified with spirits or flavoured with aromatic extracts. (Added 66 of
1986s.23)

(2) Where the Schedule provides for different rates of duty in respect of
European-type liquors and Non-European-type liquors for the purpose of assessing
the duty to be paid in respect of liquor the Commissioner may, if he is of the opinion
that a liquor is of a type commonly consumed by Chinese but not by Europeans,
treat that liquor as Non-European-type liquor. (Added 66 of 1986 s. 23)

54. Provision for case of death or insolvency of licensee

In case of the death or insolvency of the holder of a licence issued under this
Ordinance, his executor or administrator or trustee may carry on the business on the
licensed premises until the expiration of the licence, subject in every respect to the
same regulations and conditions as the licensee.

(Amended 66 of 1986 s. 24)

55. Licensee to exhibit name, etc.

Every holder of a liquor licence or canteen licence shall have his full name, the
nature and number of his licence, and such other particulars as may be prescribed by
regulations, painted legibly and permanently in letters at least 75 nun high on some
conspicuous part of his licensed premises; and no person who is not the holder of a
liquor licence or canteen licence shall exhibit any sign, writing, painting or other mark
reasonably calculated to suggest that his premises are licensed for the sale or supply
of intoxicating liquors for consumption on the premises, or that such liquors are sold
or supplied for consumption on the premises.

(Replaced 29 of 1989 s. 5)

56. Measures or weights for sale of liquor

Every person licensed under this Ordinance to sell liquor shall sell and dispose
of his liquors by measures or weights of the standards in use in Hong Kong and not
otherwise, except when the quantity is less than 250 mi, or except when the liquor is
sold in bottles; he shall also measure or weigh such liquors in the presence of any
customer who may require him to do so.

(Amended L.N. 189 of 1982)

57. (Repealed 66 of 1986 s. 25)





58. Illegal possession of still or fermented material, etc.

(1) No person shall, except under and in accordance with a licence, or except
with the specific approval in writing of the Commissioner or officer authorized by
him in that behalf- (Amended L.N. 294 of 1982)

(a)knowingly keep or have in his possession, custody or control any
still or part of a still or other utensil or apparatus suitable and
intended for manufacturing, making, purifying, refining, distilling,
rectifying or processing spirits; (Amended 29 of 1989 s.6)

(b)have in his possession, custody or control any fermenting or
fermented material. (Amended3of 1970s. 25)

(2) No person shall remove any denaturants from any denatured spirits without
the specific authority in writing of the Commissioner. (Amended L.N. 294 of 1982)

(3) Where there is insufficient evidence to convict a person of an offence under
subsections (1) and (2), but it is proved that such an offence has been committed on
some part of the premises belonging to or occupied by that person in such
circumstances that it could not have been committed without his knowledge, that
person shall be liable on summary conviction to a penalty of $1,000. [cf. 1952 c. 44
s. 106(2)-(5) U.K.]

(4) Any person found on premises on which spirits are being unlawfully
manufactured, made, distilled, rectified, purified, refined or processed may be
detained. (Amended3of 1970s. 25)

(5) All spirits and all stills, apparatus, vessels, utensils, fermenting or fermented
materials or other materials for manufacturing, making, distilling, rectifying, purifying,
refining or processing spirits- (Amended 3 of 1970 s.25)

(a)found in the possession of any person who commits an offence
under subsection (1); or

(b)found on any premises on which such offence has been committed,

shall be liable to forfeiture.

(6) Notwithstanding any other provisions of this Ordinance relating to goods
seized as liable to forfeiture, any member of the Customs and Excise Service by
whom anything is seized as liable to forfeiture under this section may at his
discretion forthwith spill, break up or destroy that thing.

59. Presumptions in proceedings for illicit distillation, etc.

(1) In any proceedings under this Ordinance relating to illicit distillation, all
spirits and all stills, apparatus suitable for distilling, vessels, utensils, fermenting
and fermented materials or any chattels or things, whether fixed to





the premises or not, found in or upon any land or other premises shall be deemed to
have been in the possession, custody or control of the occupier of the premises
unless he proves that he did not know, and could not with reasonable diligence have
known, that such spirits, stills, apparatus, vessels, utensils, materials or other such
chattels or things were in or upon the premises. (Amended3of 1970s. 26) [cf. 1923
c. 14s. 13(5) U.K.]

(2) Every person found in or escaping from any room or place where, in
contravention of this Ordinance, materials are being fermented or fermenting
materials or intoxicating liquors are being made or prepared or in which any stills,
apparatus suitable for distilling, vessels, utensils or other materials for
manufacturing, distilling, rectifying, purifying, refining or processing spirits are
found or are being made or prepared shall, until the contrary is proved, be deemed to
have been unlawfully making, distilling, rectifying, purifying, refining or processing
spirits. (Amended 3 of 1970 ss. 26 & 36; 66 of 1986 s. 26) [cf. 1831 c. 55 s. 19
U.K.]

60. Free licences for small stills for registered

doctors and pharmacists

The Commissioner may in his discretion issue a licence free of charge to any
practitioner registered under the Medical Registration Ordinance (Cap. 161), or to
any pharmacist registered under the Pharmacy and Poisons Ordinance (Cap. 138), to
keep and use on any specified premises a still of not more than 40 l capacity for the
purposes only of his profession or business.

(Amended L.N. 189 of 1982; L.N. 294 of 1982)

61. Distilling, etc. adulterated liquor

(1) Any person who imports, distils, makes, manufactures, sells, exposes for
sale or has in his possession for sale, supplies or deals in, or puts in any container
for any such purpose, any adulterated liquor shall be guilty of an offence and shall,
if such adulterated liquor is proved to the satisfaction of a magistrate to be injurious
to health, be liable to imprisonment for 2 years, in addition to any other penalty to
which he may be liable under this Ordinance. (Amended 3 of 1970 s. 27; 34 of 1976
s. 7)

(IA) Where a person is convicted under this section and it is proved to the
satisfaction of a magistrate that an adulterant in any adulterated liquor in respect of
which that person has been convicted is a denaturant which is present in such
quantities as not to render the liquor being a denatured spirit within the meaning of
this Ordinance, that person shall, in addition to any other penalty to which he is
liable under this Ordinance, be liable to imprisonment for 2 years. (Added 34 of
1976s.7)





(IB) For the purposes of subsection (1), any adulterated liquor found in
licensed premises shall be presumed until the contrary is proved, to be in the
possession of the licensee for the purpose of sale. (Added34 of 1976s.7)

(2) In the case of any conviction under this section the magistrate may order
that any liquor to which the conviction relates and any similar liquor, whether the
same be proved to have been adulterated or not, which was on the defendant's
premises or in his possession or under his control at the time of the commission of
the offence, or which has been seized under this Ordinance, shall be forfeited:

Provided that no such liquor shall be forfeited if it is proved to the satisfaction
of the magistrate by the defendant, or by any person into whose possession such
liquor may have come, that the same has not been adulterated or was not for sale.

(3) Any liquor forfeited under this section shall be disposed of as the
Commissioner directs. (Amended L.N. 294 of 1982)

62. (Repealed 66 of 1986 s. 27)

63. (Repealed 16 of 1989 s. 4)

64. Denatured spirits to he dutiable goods

until certified to the contrary

(1) All the provisions of this Ordinance relating to dutiable goods shall apply to
any denatured spirits unless and until the Government Chemist has certified in
writing in each case that such spirits are denatured spirits, and upon the issue of
such certificate the liquor to which it relates shall be deemed to be not dutiable.
(Amended3of 1970s. 28)

(2) Any fee prescribed by the Governor in Council for such certificate may be
proportionate to the duty which would have been payable had the liquor not been
denatured: but no such fee (except a minimum fee) shall exceed one-tenth of the
duty.

PART IV

TOBACCO

65. Definition of tobacco

In the application of this Ordinance to tobacco---

'Chinese prepared tobacco' (Suk Yin) is tobacco prepared in the traditional
Chinese manner from tobacco leaf grown in China, and comprises 7 main types,
namely--





Sang Chit
Ting Sook
Yee Sook
Chai See
Kan Yip

Sheung Sook

and Jing Chit
and may include any other traditional Chinese prepared tobacco which,
in the opinion of the Commissioner, is of a type and quality approximate
to any of the 7 types of Chinese prepared tobacco specified above;
(Amended 3 of 1970 s. 29; L.N. 294 of 1982)

'cigar' means any roll of tobacco capable of being smoked by itself and which

(a) has an outer wrapper of natural tobacco; or

(b)predominately contains broken or threshed leaf and has a binder of
reconstituted tobacco and an outer wrapper of reconstituted tobacco
fitted spirally; (Added66 of 1986s.29)

'cigarette' means any roll of tobacco capable of being smoked by itself not being a
cigar; (Added 66 of 1986 s. 29)

'manufacture' means the conversion of tobacco into manufactured tobacco;

'manufactured tobacco' includes cigarettes, cigars, snuff, hand-rolling tobacco,
smoking tobacco, cigar cuttings, reconstituted tobacco and Chinese prepared
tobacco; (Added 66 of 1986 s. 29)

'manufacturer' includes any person who owns or controls any factory or other
place wherein tobacco is manufactured;

'tobacco' includes manufactured and umnanufactured tobacco of every description
and tobacco stalks, tobacco refuse, tobacco seedlings and tobacco plants;

'unmanufactured tobacco' means tobacco which has undergone no process of
manufacture except curing, stripping or drying or any of them.

66. (Repealed 10 of 1988 s. 2)

67. Manufacture, etc. of adulterated tobacco

(1) A tobacco manufacturer shall not in manufacturing tobacco use any

substance other than water or steam, except to such extent as may be permitted

by the Commissioner and subject to such conditions as the Commissioner may

impose. (Amended L.N. 294 of 1982)

(2) Save where their use by him is permitted by or under this section, a

tobacco manufacturer shall not receive or have in his possession any of the

following substances, namely





(a)sugar or any other saccharine substance or extract, except such as he
proves to be for domestic use;

(b)leaves or plants of any description other than tobacco leaves or
plants;

(e)any substance for use, or capable of being used, as a substitute for or
to increase the weight of tobacco.

(3) Any tobacco manufacturer who contravenes any of the provisions of this
section shall be liable to a fine of $5,000 and the tobacco or other substance in
respect of which the offence was committed shall be liable to forfeiture.

68. Restriction on tobacco growing

No person shall plant or cultivate tobacco (on any land of any category)
without the written approval of the Commissioner or other officer deputed by him in
that behalf.

(Amended 3 of 1970 s. 30; 29 of 1989 s. 7)

PART V

HYDROCARBON
OIL

(Amended 66 of 1986 s. 30)

69. Definition of hydrocarbon oil

In the application of this Ordinance to hydrocarbon oil-

,,aircraft spirit' means any light oil suitable and intended for use as fuel in any
aircraft;

'heavy oil' means any hydrocarbon oil other than light oil; (Replaced 66 of
1986s.31)

'hydrocarbon oil' means petroleum oil, coal tar, and oil produced from coal, shale,
peat, or any other bituminous substances, and all hydrocarbons that are in a
liquid form at a temperature of 15'C and under a pressure of 101 kPa, except any
such hydrocarbons that are an ingredient in any goods that do not have the
usual characteristics of hydrocarbon oil; (Replaced 29 of 1989 s. 8)

'kerosene' means heavy oil of which more than 50% by volume distils at a
temperature not exceeding 240 C; (Added66 of 1986s.31)

'light diesel oil', commonly known as 'gas oil', means a heavy oil of which not more
than 50% by volume distils at a temperature not exceeding 240'C and of which
more than 50% by volume distils at a temperature not

exceeding340'C;(Added44of 1978s. 2. Amended L.N. 189 of 1982)





'light oil' means hydrocarbon oil of which not less than 50% by volume distils at a
temperature not exceeding 185'C, or of which not less than 95% by volume
distils at a temperature not exceeding 240'C, or which gives off an inflammable
vapour at a temperature of less than 23'C when tested in the manner prescribed
by the Commissioner of Customs and Excise of the United Kingdom; (Amended
L.N. 189 of 1982)

'marked oil' means light diesel oil to which a marker and a colouring substance have
been added as provided by regulations made under section 6; (Added66 of
1986s.31)

'motor spirit means any light oil which has been rendered suitable for use as a fuel
in any internal combustion engine by the addition of any compound or
compounds of lead, and any other fight oil suitable and intended for use in any
internal combustion engine, but shall not include aircraft spirit.,

(Amended 66 of 1986 s. 31)

69A. (Repealed 66 of 1986 s. 32)

PART VI

METHYL ALCOHOL

70. Interpretation

In the application of this Ordinance to methyl alcohol

'denatured methyl alcohol' means methyl alcohol certified by the Government
Chemist to have been mixed with a substance or substances approved by the
Government Chemist, in such manner that it cannot practicably be returned to
its original form; (Added66 of 1986s.33)

'methyl alcohol' means the substance also known as methanol, but does not
include methyl alcohol that is an ingredient in any goods, if that methyl alcohol
cannot be converted to pure methyl alcohol or if such a conversion would not
be economical. (Amended 29 of 1989 s. 9)

71. Marking of containers

No person shall place or cause to be placed or keep or cause to be kept

in any container any methyl alcohol unless such container is conspicuously

marked in English and Chinese with the word 'poison'.

72. Colouring, flavouring or other substance

The Commissioner may direct an importer to add such colouring,

flavouring or other substances, and in such quantities, as the Commissioner

may from time to time specify, to any methyl alcohol in his possession.

(Amended L.N. 294 of 1982; 29 of 1989 s. 10)





73. Storage

A distiller or importer of intoxicating liquor shall not bring onto of have in any
premises used for holding intoxicating liquor any methyl alcohol.

(Amended 29 of 1989 s. 11)

74. Exemptions

No duty shall be payable on denatured methyl alcohol.

(Replaced 66 of 1986 s. 34)

(Part VI Added 34 of 1976 s. 9)

PART VII

CONCENTRATES AND NON-ALCOHOLIC
BEVERAGES,

75. Interpretation

In the application of this Ordinance to concentrates and non-alcoholic

beverages

'concentrate' means any liquid intended for consumption as a beverage after
dilution;

'juice' means

(a) the undiluted juice of any fruit or vegetable; or

(b)in relation to any particular fruit or vegetable, juice which is obtained
by the addition of water to a concentrate made from the juice of that
fruit or vegetable and which has the organoleptic and analytical
characteristics of the undiluted juice of that fruit or vegetable; or

(c) a mixture of such juices, to which no flavouring or colouring has been
added;

'milk' means milk obtained from cows, buffaloes or goats, whether or not it is
skimmed or partly skimmed, or is reconstituted milk, buttermilk or whey
produced from such milk:

Provided that no flavouring or colouring has, in any case, been added;

'non-alcoholic beverage' means any liquid which is placed in a sealed container for
sale as a beverage and includes soda water, Indian or quinine tonic water,
mineral water, ginger beer, a herbal or botanical beverage, shandy, and any
liquid which is or which purports to be a carbonated or non-carbonated drink
with a fruit, syrup or milk base but does not include concentrate, liquor, distilled
water, milk, juice or soup;

'sealed' includes closed by means of a screw top or cork.

(Part VII added 20 of 1985 s. 9)





PART VIII

COSMETICS

76. Interpretation

In the application of this Ordinance to cosmetics-

'cosmetics' means any preparation designed to improve, beautify and generally
increase the attractiveness of the person by external application and includes
any preparation which

(a)is, or purports to be, for the care of skin or hair, including any cream,
emulsion, gel, lotion, powder, spray or liquid;

(b)is, or purports to be, a make-up for beautification, including any
powder, lipstick, eye make-up, rouge, or preparation for manicure;

(c)promotes, or purports to promote, good grooming, including any
talcum powder, deodorant, depilatory, antiperspirant, suntan product
or a salt or foam for the bath;

(d)is, or purports to be, a fragrance, including any cologne, sachet,
perfume, scent or toilet water,

but does not include any preparation which is a soap, liquid soap, toothpaste,
or shampoo for the cleansing of hair and scalp, unless such preparation
purports to be any of the preparations referred to in paragraph (a), (b), (c) or
(d).

(Part VIII added 20 of 1985 s. 9)

SCHEDULE [ss. 4(1),(2) & 53(2)]

PART I

DUTY ON LIQUOR

1. Duty shall be payable on the following types of European-type liquor at the rate of 30% of the

value of the liquor (in accordance with section 26A of the Ordinance) and, in addition, at the rate

specified against that type of liquor, per litre measured at a temperature of 20'C
Type of Liquor
...........................................
Brandy ....................................$52.00
Liqueurs, Whisky, Gin, Rum, Vodka and other spirituous liquors 52.00

Intoxicating liquors in this Part above the strength of 45% alcohol by volume,. for

every 1 % above such strength in addition to the duties specified above ..... 1.50 .

(Replaced L.N. 158 of 1988. Amended 16 of 1989 s. 5)

1A. Duty shall he payable on the following types of European-type liquor at the rate of 20% of
accordance '

the value of the liquor (in accordance it,

tion 26A of the Ordinance) and, in addition, at the
rate specified against that type of liquor, 7 measured at a temperature of 20'C





Type of Liquor

Champagne and other sparkling wines..................................................................... 32.00
Still wines above 15% alcohol by volume ................................................................ 22.00
Still wines not more than 15% alcohol by volume ........................................................ 18.00
(Replaced L.N. 158 of 1988. Amended 16 of 1989 s.5)

2. Duty shall be payable on the following type of European-type liquor at the following rate per
hectolitre measured at a temperature of 20'C

Type of Liquor

$

Cider and Perry and other similar beverages............................................................ 145.00

Bear (Added 16 of 1989 s. 5) ........................................................................... 220.00
(Amended L.N. 128 of 1987; L.N. 158 of 1988; 16 of 1989 s. 5)

3. (Repealed 16 of 1989 s. 5)

4. Duty shall be payable on the following types of Non-European-type liquor at the following

rates per hectolitre measured at a temperature of 20 C
Type of Liquor
..........................................$
Non-European-type wines ..................950.00
Chinese-type spirits and other spirituous liquors, Sake, Arrack 490.00

and in addition for every 1 % by which the alcoholic strength by volume exceeds 30% 16.35
(Amended L.N. 128 of 1987, L.N. 158 of 1988; 16 of 1989 s. 5)

5. Duty shall be payable on the following types of Industrial-type liquor at the following rates
per

hectolitre measured at a temperature of 20'C-
Type of Liquor
....................................... $
Ethyl alcohol, and admixtures containing ethyl alcohol 490.00
and in addition for every 1 % by which the alcoholic strength exceeds 30 % 16.35
(Amended L.N. 128 of 1987; L.N. 158 of 1988; 16 of 1989 s. 5)

6. The Commissioner may assess the duty on

(a)intoxicating liquors not specified in this Part at the rate prescribed for liquor which
in his opinion most nearly approximates to the liquor on which duty is to be
assessed; and

(b)any quantity of liquor of less than 12 1 imported at any time in one consignment at
$85.00 per litre.

PARTII

DUTY ON TOBACCO




1......................................Duty shall be payable on tobacco at the following rates-
..................................... $
(a) for each 1000 cigarettes 190.00
(b) cigars ..........................250.00 /kg

(e) Chinese prepared tobacco ....50.00


(d) all other manufactured tobacco except tobacco intended for the

manufacture of cigarettes 230.00
...................(AmendedL.N. 158 of1988; 16 of.1989 s. 5)





2. For the purpose of applying the duty under paragraph 1(a) a cigarette more than 90 mm long,
excluding any filter or mouthpiece, shall be treated as if each additional 90 mm or portion of 90
rum were a separate cigarette.

(Replaced 10 of 1988 s.
3)

PART III

DUTY ON HYDROCARBON
OIL

1 ..........................................Duty shall be payable on hydrocarbon oil at the following rates per litre-
(a) motor spirit and aircraft spirit 2.75
(b) light diesel oil ..................... 1.37

(Amended L.N. 128 of 1987; L.N. 158 of1988; 16 of 1989 s. 5)

2. Where it is proved to the satisfaction of the Commissioner that light diesel oil on which duty
has been paid under paragraph 1(b) has been used in road vehicles owned and operated by the
grantee of a franchise under section 5 of the Public Bus Services Ordinance (Cap. 230) in
maintaining public bus services on specified routes as defined by section 2 of that Ordinance, a
sum amounting to $0.65 per litre of the light diesel oil so used shall be refunded to the grantee.

3. Where it is proved to the satisfaction of the Commissioner that light diesel oil on which duty
has been paid under paragraph 1(b) has been used in road vehicles owned and operated by the
Kowloon-Canton Railway Corporation under section 4(1)(d) of the Kowloon-Canton Railway
Corporation Ordinance (Cap. 372) in maintaining bus services within the North-west Transit
Service Area, a sum amounting to $0.65 per litre of the light diesel oil so used shall be refunded to
the Corporation.

(Added L.N. 203
of1987)

PART IV

DUTY ON METHYL
ALCOHOL



1. Duty shall be payable on methyl alcohol and any admixture containing methyl alcohol at the
rate of $490.00 per hectolitre measured at a temperature of 20'C and in addition, for every 1 % by
which the alcoholic strength by volume exceeds 30% $16.35 per hectolitre.

(Amended L.N. 128. 1987; L.N. 158 of 1988; 16 of1989 s.5)

PART V

DUTY ON NON-ALCOHOLIC
BEVERAGES

1 . Duty shall be payable on non-alcoholic beverages at the rate of $60.00 per
hectolitre.

PART VI

DUTY ON COSMETICS

1. Duty shall be payable on cosmetics at the rate of 25% of the value of the cosmetics (in
accordance with section 26A of the Ordinance).

(Replaced 66 of 1986 s. 35)

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