The agency was established to protect Hong Kong from smuggling, ensure the collection of duties on taxable goods, detect and prevent drug trafficking and abuse, safeguard intellectual property rights, protect consumer interests, facilitate legitimate business and uphold Hong Kong's trade reputation, regulate money service operators and dealers in precious metals and stones, and combat money laundering and terrorist financing.

During times of war, the service prevented the export of precious metals and other commodities to the enemies of the United Kingdom and its allies.

From 21 October 2021, this position is held by Louise Ho Pui-shan, its first female occupant and wife of Erick Tsang, Hong Kong's Secretary for Constitutional and Mainland Affairs.

[18] As with all of the HK Disciplined Services, British-pattern ranks and insignia continue to be utilised, the only change being the exchange of the St. Edward's Crown for the Bauhinia flower crest post-1997.

The current crest of the force was adopted in 1997 to replace most of the colonial symbols: There are no tariffs on goods entering Hong Kong, but excise duties are charged on four groups of commodities: hydrocarbon oil, liquor, methyl alcohol and tobacco.

The C&ED prevents and detects smuggling activities under the Import and Export Ordinance and enforces the licensing controls on prohibited articles by inspecting cargoes imported and exported by air, sea and land; processing passengers and their baggage at entry /exit points; and searching aircraft, vessels and vehicles entering and leaving Hong Kong.

[25][26][27][28][29] The Control Points Investigation Division is tasked to strengthen the intelligence collection capability at the land boundary and suppress the cross-boundary smuggling activities.

The smuggling of frozen meat to mainland China, using barges and powerful speedboats off the west coast of Hong Kong, remains a serious problem, with an estimated 600 tonnes being transshipped every day.

It is also the department's enforcement strategy to administer a monetary reward scheme to encourage the supply of information on textile origin fraud.

A 147-strong Special Task Force has also been playing an important role in combating copyright piracy, and serves as a mobile brigade to reinforce the suppression of other customs-related crimes.

At the working level, the department and the Mainland customs have each established designated liaison officers to facilitate the exchange of intelligence through direct telephone hotlines.