Customs moves to toughen Foreign Trade Law against parallel trading

Customs is teaming up with other government entities to toughen the Foreign Trade Law against parallel trading, officials said, with 93 infringement cases logged in the first eight months of the year and 17 cases, involving 34 suspects, referred to prosecutors.

According to the Macau Customs Service (SA), enforcement data shows infringement cases have been trending steadily downward – a trend it attributes to the deterrent effect of intensified street-level patrols, the use of technology, and enhanced online monitoring through a big-data anti-counterfeiting system.

On the full-chain crackdown on parallel trading, Customs said that, as the primary enforcement agency, it is currently studying amendments to the Foreign Trade Law with relevant government entities and will fully support the legislative process, providing input from multiple perspectives, including enforcement difficulties, during consultations.

Assistant director-general Ip Wa Chio said Customs adopts a full-chain enforcement strategy covering the source of parallel goods entering Macau, the monitoring of and crackdown on distribution points within the city, and enforcement at border checkpoints.

“From cracking down on parallel goods at the source, to monitoring and targeting distribution points in the city, and enforcement at border clearance – we use more technological means to trace the chain of parallel goods, and through cooperation and intelligence exchanges with neighboring enforcement agencies, including mainland and Hong Kong customs, we enhance our enforcement capabilities,” he was quoted as saying.

Ip noted that the distribution model for parallel goods has been constantly changing, shifting from factory buildings and shopping malls to private residential units, making the activity increasingly difficult to detect.

Customs will adjust its strategy in a timely manner based on intelligence, data analysis, and individual cases, adopting targeted enforcement against different modes such as distribution from industrial buildings, delivery via transport, and parallel trading using cross-border vehicles. He acknowledged that Areia Preta and the Border Gate area have been identified as hot spots for the distribution and sale of parallel goods, adding that enforcement action would be taken against any shops found violating current regulations.