The Attorney General v. Lau Shui

Read the full judgment text of HCMA 757/1984 on BabelCite. This High Court CFI judgment.

1. This is an appeal by way of a case stated. The charge was as follows:

Cited by 1 case

Case No.HCMA 757/1984
Court
High Court CFI
Date
Judge
Case Document
100%Judiciary

HCMA000757/1984

IN THE HIGH COURT OF HONG KONG

APPELLATE JURISDICTION

Magistracy Appeal No. 757 of 1984

_________________

BETWEEN

The Attorney General

Appellant

and

LAU Shui

Respondent

_________

Coram: Deputy Judge Nazareth.

Date of hearing: 2nd January, 1985.

Date of judgment: 22nd January, 1985.

__________

JUDGMENT

__________

1. This is an appeal by way of a case stated. The charge was as follows:

Statement of Offence - Importing unmanifested cargo, contrary to section 18(1)(a) of the Import and Export Ordinance, Cap. 60.

Particulars of Offence - LAU Shui, you are charged that on 6th day of July l984, on board fishing vessel M60498P off West Aberdeen entrance in the waters of Hong Kong, you did import into this colony unmanifested cargo namely 22 bags containing 133 pieces of silver discs.

2. A Customs patrol launch intercepted the vessel concerned. Following a search, 22 bags containing 133 silver discs weighing 436.45 kg were found in a concealed compartment. After this discovery, the Respondent came forward and produced two copies of an Import Declaration. He admitted knowledge and ownership of the articles and stated that he was going to declare the cargo at the Western Entrance. The Respondent was asked if he had an Import Manifest, to which he made no reply.

3. At his trial, the Respondent gave evidence that he had obtained the goods from his grandfather in China, that he concealed the goods in case he was robbed by pirates, and that it was his opinion that the form he produced to the Customs Officer served the purpose of a manifest. The form he produced did not contain the name of his grandfather as the consignor, nor did it contain as the name of the consignee his own name, and it was written by someone else.

4. It was contended on behalf of the Appellant that the Import Declaration form produced by the Respondent was not a manifest as provided for by section 17 of the Ordinance.

5. The Magistrate gave judgment to the following effect:

(a) What the Respondent produced to the Customs Officers was an Import Declaration form, setting forth the goods on the vessel. This is a printed form under the Import Export Regulations, Cap. 60. There is no set form of manifest prescribed. However, it must contain information as set out under the Import and Export Manifest Notice 1984.

(b) If a person has a description of the articles and produces it as a manifest, there appears to be no reason why it cannot be a manifest provided it has the required information on it. The intention of the legislation appears to be that a written document must be produced to the authorities on demand describing the goods on the vessel at the time it is stopped.

(c) If the document is defective then that constitutes another offence under Regulation 11(5) of the said Ordinance. The document produced may have been defective in that it did not contain all the details but it was a manifest albeit a defective one.

6. Accordingly, the Magistrate dismissed the charge.

7. The questions of law stated for the opinion of this Court are:

(i) Whether the Magistrate was correct in law in finding that the Respondent did not import unmanifested cargo, contrary to the provisions of Sections 17 and 18 of the Import and Export Ordinance, Cap. 60;

(ii) more particularly, whether the Magistrate was correct in lair in ruling that the Import Declaration produced by the Respondent complied with the particular requirements provided for in section 17 of the said Ordinance;

(iii) alternatively, whether the Magistrate was correct in law in ruling that the Import Declaration constituted a manifest within the meaning of that expression in the said Ordinance.

8. Mr. McCoy, Crown Counsel for the Appellant, at once made it clear that the essence of the Appellant's submission is that the Import and Export Ordinance (Cap. 60) and the Import and Export (Registration) Regulations in effect provide that only a document that contains all the prescribed particulars can be a manifest i.e. that the prescribed particulars constitute a irreducible minimum. The Import Declaration produced by the Appellant did not contain a number of the prescribed particulars, some of which were significant; therefore it could not be a manifest. Accordingly the goods were unmanifested cargo.

9. Before proceeding to the provisions concerned, it is convenient to record the substance of Mr. Poll's submission for the Respondent. He submits that if the Appellant's submission is accepted in its entirety, it would mean that if even a single detail of the 11 heads of particulars prescribed were inadventently omitted, the relevant document would not constitute a manifest and the importer would be liable to a fine of $50,000, imprisonment for 2 years and forfeiture of the goods concerned. So harsh and draconian a measure would have to be expressed in language of the most unequivocal and clear sort. The relevant provisions fall short of this.

10. Proceeding them to be statutory provisions, section 18(1) provides that -

Any person who imports any unmanifested cargo ..... shall be guilty of an offence and shall be liable on conviction to a fine of $50,000 and to imprisonment for 2 years.

"Unmanifested cargo" is defined in section 2 in the following terms:

"unmanifested cargo" means any cargo which is not recorded in a manifest.

The same section contains the following definition of manifest:

"manifest" means a manifest containing the particulars prescribed under section 17.

This takes us to section 17 which reads as follows:

17 (1) All cargo which is imported or exported shall be recorded in a manifest which shall contain such particulars as the Commissioner may prescribe.

(2) For the purposes of subsection (1) the Commissioner may, by notice published in the Gazette, prescribe the particulars of the cargo and the particulars of the consignment of cargo to be recorded.

11. The particulars are prescribed in the Import and Export Manifest Notice at page C1 of Cap. 60, which came into force on 1st January 1984. It provides in paragraph 2 that an import manifest relating to the import of any cargo into Hong Kong shall contain the following particulars in the case of cargo in packages:

(a) where the cargo is ..... carried by vessel, the number, description, gross weight and gross volume of the packages;

(b) the distinguishing marks or numbers appearing on each package;

(c) a description of the articles contained in each package;

(d) the name and address of the consignor of each package;

(e) the name and address of the consignee of each package;

(f) the place at which each package was loaded in or onto vessel .....;

(g) the reference number and letters of the bill of lading ..... issued in respect of the consignment of each package;

(h) a clear indication whether or not the cargo is transhipment cargo;

(i) the import licence number where applicable;

(j) the name, date of arrival and the voyage...... number of the carrying vessel.

(k) the container numbers, if the cargo is containerized and a clear indication whether or not such containers are refrigerated containers.

12. I am not able to read into the definition of manifest, particularly in the context of an offence under section 18(1), that the omission of any prescribed particular would render the document concerned incapable of being a manifest. “Cargo" is very widely defined in section 2, in substance including every article imported other than equipment or stores of the vessel and food and provisions for and personal property required for the personal use of the crew and passengers. Clearly, as in this case, it will not always be possible to furnish all the particulars, since some of them will simply not apply e.g. there will not always be a bill of lading.

13. Furthermore, Regulation 11(5) of the Import and Export (Registration) Regulations provides that -

"Any person who, without reasonable excuse, lodges a manifest that, ..... does not give all the particulars required ..... in respect of any articles specified in the manifest, ..... shall be guilty of an offence and shall be liable on summary conviction to a fine of $10,000."

Regulation 11(5) preceded the introduction of the present definition of "manifest", of section 17, and of the increased penalty of 2 years under section 18. Thus in not repealing it when introducing those provisions, the implication must be that the legislature not only intended to preserve it but did so in the contemplation of manifests which did not contain all the prescribed particulars.

14. What the Magistrate held in this regard is that if the document was defective then that constituted another offence under Regulation 11(5) of the Ordinance; and that the document may have been defective in that it did not contain all the details but that it was a manifest albeit a defective one. Clearly Regulation 11(5) would be meaningless if "manifest" is to be so construed that it would not include any document that did not contain every single prescribed particular. Mr. McCoy nevertheless says the Magistrate was wrong in placing any emphasis on Regulation 11(5). He drew attention to Regulation 12A which provides as follows:

12A. A manifest required to be lodged under Regulation 11 or 12 shall be in addition to any manifest required to be furnished under section 15 of the Ordinance.

15. He also drew attention to section 15 which provides that the master of a vessel shall on entering Hong Kong furnish any member of the Customs and Excise Service a manifest in respect of the cargo being imported if he is requested to do so by such member of the Customs and Excise Service. Accordingly, Mr. McCoy says that one manifest is required to be furnished upon entry, and then another to be lodged 7 days thereafter. With that one must agree. But he goes on to say Regulation 11(5) applies only to the manifest to be lodged and that therefore it can have no application to the section 18 offence in this appeal which is related to the manifest to be furnished on entry. That would require "manifest" notwithstanding its single definition in section 2, to have one meaning in section 18 and another in Regulation 11(5). If anything, it is prima facie unlikely that the legislature contemplated an importer having at the time of importation all the prescribed particulars in his manifest and yet not having all those particulars 7 days later when another manifest is to be lodged. If, notwithstanding that it "does not give all the particulars required" a document can nevertheless be a manifest under Regulation 11, then I can see no reason why it cannot equally be a manifest for the purposes of section 18.

16. Mr. McCoy went on to point out that the offence of importing unmanifested cargo has been held to be an absolute offence in a long line of cases including Cathay Pacific Airways Limited v The Crown (1) .That may well be, but it does not affect the foregoing view. Once a document was found to be a manifest, the offence would remain an absolute offence.

17. Mr. McCoy also referred to an unreported Criminal Appeal(2) in which Addison, J, held that Regulation 12(2) of the Import and Export (Registration) Regulations (which requires a manifest to be lodged not less than 7 days after departure of the ship) presupposes the existence of a manifest prior to departure. If that has any bearing on the present appeal, it must be to strengthen the view that manifest must have the same meaning in the context of the initial import or export as in the context of the subsequent lodging 7 days thereafter.

18. Finally Mr. McCoy very properly referred me to Attorney General v C. Jaranilla(3). The legislation at that time was evidently very different, and for instance the Unmanifested Cargo Regulations referred to in that case have disappeared. There was also no definition of “manifest" and although in that case Morley-John, J. refers to particulars that must be specified in a manifest of cargo, he did not consider the question of whether a document could be a manifest despite its failure to contain all the requisite particulars, having found that the document before him did in fact contain all the particulars. I am therefore not able to derive any assistance from these cases, and the latter does not prejudice the Appellant's submissions.

19. Quite apart from the effect of the existing language of the relevant provisions of the Ordinance and Regulations, Mr. McCoy contends that in the context of the provisions they displaced, it clearly must have been the intention of the legislature to provide that a document could only be a manifest if it contained all the particulars prescribed. He points to the following provisions which were replaced:

"Manifest" means a document which records or purports to record such particulars of the consignment of cargo in or on any vessel, aircraft or vehicle as may be prescribed by the Commissioner under section 17.

17. Any cargo which is imported or exported shall either -

(a) be recorded in a manifest which shall contain such particulars of the consignment of the cargo as may be prescribed by the Commissioner for the purposes of this Ordinance by notice published in the Gazette; or

(b) be recorded in a document which complies with such requirements in respect, of the cargo as may be prescribed by the Commissioner for the purposes of this Ordinance by notice published in the Gazette.

20. Comparing those provisions with their present replacements, I do not see that there is any implication or any sufficiently clear implication that under the new provisions each and every particular prescribed must be contained in the document concerned, failing which it would not be a manifest. Arguably the object of replacement was not that contended for, but rather to exclude documents that merely purported to record the prescribed particulars, and also to empower particulars to be prescribed in respect of the cargo as opposed to those in respect only of the consignment thereof.

21. Lastly Mr. McCoy drew attention to the long title of the Ordinance, i.e. “To provide for the regulation and control of the import of articles into Hong Kong ..... and any matter incidental to or connected with the foregoing", and to section 19 of the Interpretation and General Clauses Ordinance (Cap. 1) which provides as follows:

An Ordinance shall be deemed to be remedial and shall receive such fair, large and liberal construction and interpretation as will best ensure the attainment of the object of the Ordinance according to its true intent, meaning and spirit.

22. In regard to the latter Mr. McCoy. referred me to the New Zealand case of Union Motors Limited v Motor Spirits Authority(4) . He pointed out that for the purposes of controlling the smuggling of drugs and for security and related purposes it is most important to have the information sought to be provided by the several particulars prescribed. I do not see that the construction urged upon me by the Appellant would to any significant degree better ensure the attainment of the object of the Ordinance, than the view taken by the Magistrate. In any case, having regard to the oppressive penal effect of the construction sought, I find little scope for the operation of section 19.

23. Having regard to the foregoing considerations, the relatively severe penalties and the possibly trivial and unintended omissions that could attract those penalties on the basis of absolute liability. I do not accept the construction advanced by the Appellant, I conclude therefore that in law a document is capable of being a manifest even if it does not contain every single one of the particulars prescribed.

24. As to the facts, I should like to observe that in the present case the Import Declaration presented by the Respondent contained the following particulars:

(1)    the number of packages;

(2)    a description of the articles contained in each package;

(3)    the address of the consignee i.e. the importer;

(4)    the place where the packages were loaded;

(5)    the name (number) and date of arrival of the vessel.

In addition the following particulars did not apply –

(1)    distinguishing marks or numbers on each package;

(2)    the reference number and letter of the bill of lading;

(3)    the import licence number;

(4)    the container numbers

25. The latter two items are of course expressly stated to be required only if applicable. Having regard to the extent to which particulars were provided and to the extent to which prescribed particulars were not applicable, I do not feel able to say that a court properly directing itself could not have come to the conclusion that the Magistrate did i.e. that the Import Declaration was a manifest.

26. I answer all three questions of law stated for the opinion of this Court in the affirmative.

27. The appeal is accordingly dismissed.

(G. P. Nazareth)
Deputy Judge

(1)    [1952] HKLR 30.

(2)    No, 321 of 1983

(3)   [1968] HKLR 648

(4)    [1964] NZLR 146 at P150

Representation:

Mr. McCoy for Crown.

Mr. M. Poll (Chung, Kwan, Chan & Evans) for Respondent.

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