02
Jun
2025
3
min read

Hong Kong Customs raids shake used phone sector

Hong Kong Customs carried out enforcement operations on 13th and 15th May targeting the sale of counterfeit mobile phones and accessories, according to Stuart Blackhurst’s Finsur based on a report from Hong Kong based Orient Telecom. Raids took place in Kwun Tong and Sham Shui Po, resulting in the seizure of approximately 3,300 suspected counterfeit items worth an estimated € 500,000. Nine individuals were arrested in connection with the case.

Three wholesale firms under investigation

Based on intelligence reports and cooperation with trademark owners, Customs officers raided three wholesale companies in the Kwun Tong Industrial Area. These operations led to the confiscation of about 3,250 suspected counterfeit mobile phones and accessories, most of them allegedly Apple iPhones or related products. The total estimated value of the seized items was HK$ 4.25 million, or roughly € 495,000.

Retail raids uncover more accessories

Two days later, on 15th May, Customs conducted additional raids on three retail shops in Sham Shui Po. These inspections yielded another 50 counterfeit accessories with a value of around € 560. Though smaller in scale, the retail seizures were connected to the same ongoing investigation.

Nine arrests made during operations

Among the nine individuals arrested were three company directors, a shop owner, and five sales staff. They range in age from 23 to 46. All were released on bail, pending further investigations. Authorities have not ruled out additional arrests.

Customs pledges continued enforcement

A Hong Kong Customs spokesperson emphasized the department’s ongoing efforts to tackle counterfeit goods. Officials noted that enforcement actions will continue to intensify to protect intellectual property rights and consumer safety in the region.

Wholesale disruption alarms global buyers

According to Orient Telecom, a long-established distributor in Hong Kong’s second-hand device sector, these raids have caused widespread concern. A spokesperson confirmed that some recent inspections were triggered by sample orders — often involving just a few Apple iPhones — which turned out to be undercover operations.

Within 30 minutes of invoice issuance, Customs arrived, shut down operations, detained executives, and seized all available inventory. Devices are expected to be held in government storage for at least three months, with no compensation or fixed timeline for return.

Growing concern over market stability

Orient Telecom has not been directly affected by the recent raids but says the impact is already being felt across the industry. The seized phones were sourced from standard, trusted channels used globally. If such inventory is now considered suspicious, the implications for international wholesalers are significant.

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