Customs Seizes $8.3 Million in Counterfeit Goods During ‘Double Sticks’ Crackdown

HONG KONG—Authorities have intercepted a sophisticated cross-border smuggling operation, seizing an estimated HK$65 million (approximately US$8.3 million) worth of counterfeit goods hidden within legitimate e-commerce shipments during the recent “Double 11” shopping festival period.

Customs officials, operating under the specialized intelligence-led initiative codenamed “Double Sticks,” conducted a targeted enforcement action between October 20 and November 14, resulting in 29 separate arrests and the confiscation of approximately 120,000 suspected fake items. The operation highlights the increasing challenge authorities face as criminals exploit the massive logistical volumes and high-speed transactions associated with global online shopping events, particularly those around the world’s largest digital sale.

Criminals Exploit E-Commerce Boom

The crackdown was a direct response to syndicates attempting to capitalize on the shopping frenzy and the resulting surge in international logistics traffic. According to Liao Wai-kit, Senior Investigation Officer of the Customs and Excise Department’s Task Force on Cross-boundary Counterfeit Activities, criminals leverage the inherent complexity and anonymity of online transactions to camouflage illegal shipments among genuine consumer products moving through Hong Kong’s transit hubs.

“We continually monitor the evolving trends and patterns of cross-border smuggling to formulate effective strategies,” Mr. Liao stated. “The massive scale of the ‘Double 11’ shopping festival provides an ideal cover.”

After an initial investigation, officials determined that all seized counterfeit items were destined for transatlantic markets, specifically North America, Europe, and the Middle East, confirming Hong Kong’s role as a major transit point for global illicit trade.

Focus on High-Value and Trendy Items

The variety of seized items indicates that smugglers are meticulously catering to promotional-driven consumer demand across diverse demographics. Analysts noted several defining characteristics of the contraband:

• Diverse Product Mix: Confiscated items included a wide array of products, such as apparel, footwear, luxury handbags and watches, and high-demand electronic gadgets. This breadth reflects the criminals’ strategy of supplying goods sought after by various consumer segments during the promotional period.
• Targeting of Electronics: A significant portion of the haul involved electronic products and accessories, often comprising new models like wireless earphones. These smaller, high-value items are easily concealed within larger shipments, simplifying transportation and enhancing profit margins compared to bulkier appliances.
• High-Fidelity Luxury Fakes: Investigators also discovered highly realistic replicas of prestigious luxury brands. These high-end forgeries are specifically designed to target wealthier consumers looking for discounted branded goods, enabling criminals to achieve substantial profits by manipulating the perceived quality of the fake products.

Criminals banking on consumers’ desire to acquire branded goods at significantly reduced prices during peak promotional times drive an aggressive supply chain.

Industry Cooperation and Legal Consequences

The success of Operation Double Sticks was attributed partly to enhanced collaboration with major logistics platforms that manage cross-border e-commerce flow, including increased inspections at high-risk transit centers. Officials conducted focused checks at logistics facilities handling transshipment cargo across various districts.

Customs authorities issued a stern warning to the local logistics sector, urging vigilance regarding the contents of client shipments. Industry partners are encouraged to promptly report any suspected intellectual property infringement activities.

Under the Trade Descriptions Ordinance, importing, exporting, selling, or possessing counterfeit goods for trade purposes carries severe penalties. Conviction can result in a maximum fine of HK$500,000 and five years of imprisonment.

Consumers are advised to only purchase branded items from reputable, authorized retailers. The public can report suspected intellectual property crimes via the Customs 24-hour hotline at 1828080. Customs vow to maintain relentless enforcement operations based on sophisticated intelligence to protect intellectual property rights across all levels of commercial activity.