APEC Customs Guide - Hong Kong, China 2009 (as at 25 February 2009) 1

APEC Customs Guide - Hong Kong, China – 2009 (as at 25 February 2009) List of Subjects: Tariffs, etc. Temporary Imports Classification Duty-free Concessions Duty Refund of Duty Clearance of Imported Consignments Prohibited Goods Importing a Motor Vehicle Import and Export of Optical Disc Mastering and Replication Equipment Valuation Schedule of Duty Rates of Dutiable Goods (Annex I) Schedule of First Registration Tax of Motor Vehicles (Annex II) Contact Information

Tariffs, etc. The Hong Kong Special Administrative Region of the People's Republic of China “HKSAR” is a free port and does not levy any customs tariff on imports. There is also no tariff quota or surcharge. There is no value added taxes nor general services taxes. Excise duties are levied on only four types of goods irrespective of whether they are imported or locally manufactured. These goods are liquors, tobacco, hydrocarbon oil and methyl alcohol. Concessions The HKSAR is a free port and maintains no customs tariff. Furthermore, the HKSAR has committed under the GATT/WTO to bind tariff at zero for certain categories of imports which cover about 64% of its imports in 2007 value terms. Our tariff bindings cover a comprehensive range of products. They include all agricultural, fish and fishery products; and a wide range of tariff lines from the following sectors:- information technology-related products; wood, pulp, paper and furniture; textiles and clothing; leather, rubber, footwear and travel goods; metals; chemical and photographic supplies; transport equipment, non-electrical machinery; electrical machinery; mineral products, precious stones and metals; and miscellaneous manufactured articles. Enquiries on tariff bindings should be made to the Multilateral Division of the Trade and Industry Department at 17/F, Trade and Industry Department Tower,

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700 Nathan Road, Kowloon, Hong Kong. Telephone: (852) 2398 5399. Facsimile: (852) 2390 7479. Email: hkcapec@tid.gov.hk Quotas Ozone Depleting Substances - Hydrochlorofluorocarbons (“HCFCs”) The quota is to ensure that the amount of ozone depleting substances retained for local consumption does not exceed the levels agreed under the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer (the “Montreal Protocol”) and its subsequent amendments. Quotas are allocated to registered importers according to their retained import performance in the previous control period as well as their need. In accordance with the control schedule under the Montreal Protocol (as amended after the Copenhagen Meeting in November 1992), imports of halons for local consumption are banned starting from 1 January 1994 and imports of other ozone depleting substances, except HCFCs and methyl bromide, for local consumption are banned starting from 1 January 1996. From 1 January 1996 onwards, import of HCFCs for local consumption is subject to quota control. Import of methyl bromide for local consumption is restricted for quarantine and pre-shipment applications since 1 January 1995. Enquiries concerning the above chemicals should be made to the Air Policy Group, Environmental Protection Department at 33/F, Revenue Tower, 5 Gloucester Road, Wanchai, Hong Kong. Telephone: (852) 2594 6275 or (852) 2594 6412. Facsimile: (852) 2827 8040.

Temporary Imports Temporary import of goods under the ATA Carnets The HKSAR accepts the ATA Carnets issued by the authorized issuing associations of countries which are contracting parties to the Customs Convention on the ATA Carnet for the Temporary Admission of Goods or, the Convention on Temporary Admission (Istanbul Convention). Any article imported into or exported from the HKSAR under and in accordance with an ATA Carnet will be granted temporary admission into the territory or export from HKSAR without payment of duty and without having to lodge an import or export declaration to the Commissioner of Customs and Excise. Payment of imports and exports declaration charge will also be exempted. The ATA Carnet however does not exempt other statutory requirements such as import / export licence or quota visa. Persons importing or exporting goods under the ATA Carnets are advised to obtain the required documents from the relevant authorities prior to importation or exportation (See PROHIBITED

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GOODS). In the HKSAR, the authorized issuing association of the ATA Carnets is the Hong Kong General Chamber of Commerce (“HKGCC”). Its office is located at 3/F, Silvercorp International Tower, 707-713 Nathan Road, Mongkok, Kowloon, Hong Kong. Telephone: (852) 2398 6011. Facsimile: (852) 2398 3309. A fee will be charged for each issue of an ATA Carnet at HK$1,000 for members of the HKGCC and HK$2,000 for non-members. In addition, each applicant must provide the Chamber with security, usually in the amount of 100% of the value of the shipment depended on the nature of the goods and/or the countries being visited. Temporary import of dutiable goods The HKSAR is a free port with no Customs tariff. There are only four types of goods subject to excise duty. They are liquors, tobacco, hydrocarbon oil and methyl alcohol. Control on dutiable goods is governed by the Dutiable Commodities Ordinance. Dutiable goods in transit, which are passing through the HKSAR without leaving the importing conveyance, are exempt from licence and permit requirements. Traders delivering dutiable goods which are passing through the HKSAR but have to be unloaded from the importing conveyance to another conveyance or a bonded warehouse within the HKSAR pending onward transmission have to obtain a licence and removal permit, unless the goods are covered by the ATA Carnet. However, dutiable goods which are air transhipment cargo (i.e. goods that are imported and consigned for export by air and which, during the period between import and export, remain within the cargo transhipment area of the Hong Kong International Airport), are exempt from licence and permit requirements. Temporary import of prohibited goods In general, prohibited goods such as pharmaceutical products and medicines, pesticides and textiles, are exempt from obtaining import licences if they are passing through the HKSAR without leaving the importing conveyance. For control on strategic commodities transit through the HKSAR, please refer to the section of “Strategic Commodities”. Enquiries in relation to licensing control on temporary imports of prohibited goods should be made to the respective Government departments (See PROHIBITED GOODS).

Classification The classification system in use in the HKSAR

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The HKSAR adopts the Harmonized Commodity Description and Coding System (“HS”) for commodity classification. The HS adopted in the HKSAR, called the Hong Kong Harmonized System (“HKHS”), is an 8-digit classification system with the first 6 digits complying fully with the HS designed by the WCO; and 2 additional digits meeting requirements for more detailed commodity classification in the HKSAR. This 8-digit classification system is published in the Hong Kong Imports and Exports Classification List (Harmonized System). Purpose of using the HS The HKSAR is a free port. There is no Customs tariff on goods imported into the HKSAR. The adoption of the HS in classifying commodities imported into or exported from the HKSAR is to ensure that a complete classification system is adopted by the HKSAR for facilitating international comparisons. How to use the HS? The HS codes are used for completing import and export declarations. The declarations should be submitted to the Commissioner of Customs and Excise via electronic means through the Government Electronic Trading Services (GETS) System. The commodity code required to be inserted in a declaration must be in accordance with those set out in the current Hong Kong Imports & Exports Classification List (Harmonized System) which can be obtained at the website: http://www.censtatd.gov.hk. Amendments to the Classification List will be announced annually in the HKSAR Government Gazette to take into account of international requirements, significant changes in trade pattern and technology, and local needs. On 1 January 2007, a new edition of the Hong Kong Imports and Exports Classification List (Harmonized System) was issued in replacement of the edition which was issued in 2002. The 2007 edition incorporates some 350 sets of amendments to the Harmonized System as recommended by the WCO in 2004. Meanwhile, country/territory code, transport mode code, unit of measure code and type of package code are in accordance with those specified in the current Implementation Instructions for Government Electronic Trading Services System. Reference materials can be obtained at the website: http://www.cedb.gov.hk/citb. The Commissioner of Customs and Excise has authorized certain officers of the Census and Statistics Department to enforce the law relating to the lodgement of import/export declarations as prescribed under the Import and Export (Registration) Regulations. Enquiries on commodity classification can be made to the Trade Statistics Branch (1) of the Census and Statistics Department at 17/F, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong. Telephone: (852) 2877 1818. Facsimile: (852) 2824 2782. Email: trade-declaration@censtatd.gov.hk

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Duty-free Concessions There are four types of goods subject to excise duty under the Dutiable Commodities Ordinance. These are liquors (with an alcoholic strength above 30% by volume measured at a temperature of 20oC), tobacco, hydrocarbon oil and methyl alcohol. The Commissioner of Customs and Excise is empowered to grant duty-free concessions on these goods to persons entering the HKSAR. Dutiable goods imported in excess of the concessionary quantities will be subject to duty.

Arrival declaration

Travellers entering Hong Kong at entry points are required to declare to Customs officers the quantity of dutiable goods (liquor, tobacco, cigarette and cigar) which are in excess of the duty-free concessions.

The concessionary quantities

The following dutiable goods imported by passengers, for both HKSAR Identity Card holders and visitors, in their baggage and for their own use will be exempt from duty:-

Liquors - one litre of alcoholic liquor with an alcoholic strength above 30% by volume measured at a temperature of 20oC;

Tobacco - 60 cigarettes or 15 cigars or 75 grams of other manufactured tobacco.

Restrictions Passengers under eighteen years of age do not qualify for any duty-free concessions for liquors and tobacco. Passengers holding Hong Kong Identity Cards who leave the HKSAR but return in less than 24 hours are not entitled to duty-free concessions.

Duty Types of duties in the HKSAR The HKSAR is a free port. There is no Customs tariff on goods imported into the HKSAR. The Government collects excise duties on only four types of goods irrespective of whether they are imported or locally manufactured. These goods are liquors (with an alcoholic strength above 30% by volume measured at a

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temperature of 20oC), tobacco, hydrocarbon oil and methyl alcohol. The Customs and Excise Department is responsible for the collection of duties and enforcing the law for protection of revenue. All duty rates are prescribed in the Schedule to the Dutiable Commodities Ordinance (See Annex I). For tobacco, hydrocarbon oil and methyl alcohol, duties are charged at specific rates per unit quantity. For liquors, duty is assessed at the rate expressed as a percentage of value of the goods. Licence and permit control on dutiable goods The Customs and Excise Department maintains a system of licence and permit control on goods subject to duty. Any person who imports, exports, manufactures or stores these goods will have to obtain a licence for such activities. These licences are granted on an annual basis and licence fees will be charged. Until duty is paid, movements of dutiable goods within the HKSAR will be subject to permit control. For permit application, applicants have to send application, through a recognized electronic service provided by Tradelink Electronic Commerce Limited (“Tradelink”) or Global e-Trading Service Limited (“Ge-TS”), i.e. the electronic service provider specified under the Dutiable Commodities Ordinance. E-Permits will be issued free of charge by the Customs and Excise Department and service charge of permit application by the specified electronic service provider is required. Dutiable goods can be stored only in general bonded warehouses, public bonded warehouse or licensed warehouses. General bonded warehouses and public bonded warehouses are public godowns licensed for the storage of dutiable goods. Licensed warehouses are private godowns for the storage of dutiable goods by the licence holders. Applications for licences can be made at the Office of Dutiable Commodities Administration of the Customs and Excise Department at:-

2/F, Harbour Building, 38 Pier Road, Central, Hong Kong Telephone: (852) 2852 3032 Facsimile: (852) 2541 9827

Enquiries on electronic service provider for permit application can be made at:-

Tradelink 11/F & 12/F, Tower B, Regent Centre, 63 Wo Yi Hop Road, Kwai Chung, Hong Kong Website: http://www.tradelink-ebiz.com Telephone: (852) 2599 1700 Facsimile: (852) 2599 1720

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Ge-TS 30/F, Prosperity Millennia Plaza, 663 King’s Road, North Point, Hong Kong Website: http://www.ge-ts.com.hk Telephone: (852) 8201 0082 Facsimile: (952) 2503 8400

Payment of duty Duty will have to be paid prior to the delivery of the dutiable goods from the importing carriers or bonded warehouses for local consumption. No duty is required for dutiable goods for export or used as stores on board ships, aircraft or trains. Duty on goods imported is assessed by the Office of Dutiable Commodities Administration of the Customs and Excise Department. A removal permit for duty-paid goods will be issued upon payment of duty. In other cases such as importation by passengers for personal use at the entry points or importation of dutiable goods on a single commercial shipment in which duty value is less than HK$2,000, payment of duty can be made at the points of entry. The import licence which is issued on an annual basis will not be required. However, an import licence fee at the rate of 10% of the duty payable with a minimum fee of HK$2 will be charged together with the payment of duty.

Refund of Duty Granting of refund Refund of duty may be granted by the Commissioner of Customs and Excise in accordance with the Dutiable Commodities Ordinance / Regulations under the following circumstances:

duty-paid goods exported from the HKSAR with the written consent of the Commissioner of Customs and Excise and subject to conditions prescribed by him;

duty-paid goods imported that the description, quality, state or condition not in accordance with the contract of sale or damaged in transit and subsequently destroyed in the HKSAR or returned to the supplier outside the HKSAR with the written consent of the Commissioner of Customs and Excise and subject to conditions prescribed by him;

duty-paid goods used in manufacture of dutiable goods and subject to conditions prescribed by the Commissioner of Customs and Excise;

duty-paid goods supplied for consular use and subject to terms and conditions specified by the Commissioner of Customs and Excise;

duty-paid goods drawn as samples for analysis by the Government Chemist;

reasonable quantity of duty-paid fuel placed in the fuel tank of pleasure

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vessel of more than 60 tons net register and for use by that vessel in reaching an identified port outside the HKSAR; and subject to conditions prescribed by the Commissioner of Customs and Excise; and

duty-paid light diesel oil used for bus services provided by franchised bus companies, Kowloon-Canton Railway Corporation or MTR Corporation Limited; and subject to conditions prescribed by the Commissioner of Customs and Excise.

(Remarks: On 2 December 2007, the MTR Corporation Limited, another railway operator in Hong Kong, took over the operation of the KCR network under a 50-year service concession agreement. The KCRC is wholly owned by the Hong Kong Government and its activities are governed by the KCRC Ordinance as amended in 2007 by the Rail Merger Ordinance to enable the service concession agreement to be entered into with the MTR Corporation Limited.)

Refund application Applicant should furnish the application form (CED28A/CED314) for refund of duty together with all relevant supporting documents to the Commissioner of Customs and Excise. For further information, enquiries should be made to the Office of Dutiable Commodities Administration of the Customs and Excise Department at 7/F, Harbour Building, 38 Pier Road, Central, Hong Kong. Telephone: (852) 2852 3275. Facsimile: (852) 2541 3470.

Clearance of Imported Consignments Customs control on imported goods is done through inspection of documents such as cargo manifest, air waybill, bill of lading, invoice and import licence, etc., and where necessary, physical examination of the goods. Physical examination is conducted on a selective basis. Selected consignments will be detained for physical examination by Customs officers. (A) Customs clearance: commercial consignments What is the procedure? If a commercial consignment is selected by Customs for documentary verification or physical examination, the importer or his representative can approach the shipping company, airline or cargo forwarder concerned for

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advice on Customs clearance procedures. Moreover, enquiries can be made to the Customs 24-hr enquiry hotline: (852) 2815 7711. Facsimile: (852) 2542 3334. Email: customsenquiry@customs.gov.hk Documentation for Customs clearance The documents which facilitate Customs clearance of commercial consignments are:-

manifests air waybill, bill of lading or other similar document, invoice, packing list, copy of detention notice or shipment release form, if any; and other documents, such as import licence, removal permit, etc.

Consignment of dutiable goods Goods that are subject to duty in the HKSAR are liquors (with an alcoholic strength above 30% by volume measured at a temperature of 20oC), tobacco, hydrocarbon oil and methyl alcohol. An importer is required to obtain an import and export licence from the Customs and Excise Department. In addition, removal permits will also be required (See DUTY). Consignment of prohibited goods Prohibited goods are goods the import of which is controlled under the provisions of the Import and Export Ordinance or any other laws of the HKSAR. Importers who wish to import prohibited goods should obtain in advance import licences, permits or certificates from the Government departments concerned. Examples of prohibited goods are dangerous drugs, chemicals that are essential for the manufacturing of dangerous drugs or psychotropic substances, arms and ammunition, strategic commodities, pharmaceutical products, medicines, radioactive substances, irradiating apparatus, radio transmitting equipment, endangered species, animals and plants, pesticides, ozone depleting substances, textiles, rough diamonds and certain foodstuff (See PROHIBITED GOODS for details). Lodgement of import / export declarations In general, every person who imports or exports any article other than an exempt article is required to lodge with the Commissioner of Customs and Excise an accurate and complete import or export declaration within 14 days after the importation or exportation of the article. The declarations should be lodged electronically through the Government Electronic Trading Services (GETS) System via (i) Direct Electronic Declaration Service or (ii) Paper-to-electronic Conversion Service via Specified Agents.

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Upon lodgement of a declaration other than declaration for imports/exports of articles exempt from declaration charge, payment of a declaration charge is required. The rate of imports and exports declaration charge for the import of food items is HK$0.5 per declaration irrespective of the value whereas for non-food items, the rate is HK$0.5 for the first HK$46,000 of the value of the articles or part thereof and HK$0.25 in respect of each additional HK$1,000 or part thereof and rounded up to the nearest HK$0.1. With regard to exports/re-exports, the rate is HK$0.5 in respect of the first HK$46,000 of the value of the articles or part thereof and HK$0.25 in respect of each additional HK$1,000 or part thereof and rounded up to the nearest HK$0.1. For exports of locally manufactured clothing or footwear items, the clothing levy is HK$0.3 in respect of each HK$1,000 value or part thereof. For further details about the GETS System, please make enquiries with the Government designated agencies as follows:-

Tradelink Electronic Commerce Limited (Enquiry hotline: 2599 1700; Website: http://www.tradelink.com.hk)

Global e-Trading Services Limited (Enquiry hotline: 8201 0082; Website: http://www.ge-ts.com.hk) The Census and Statistics Department consolidates the data collected from import and export declarations and used them for compiling trade statistics. Besides providing detailed information on commodity trade, statistics are widely used in Hong Kong and abroad as an indicator of the trade position, and some major decisions on economic policy are taken on the basis of them. Certain officers of the Census and Statistics Department are authorized by the Commissioner of Customs and Excise to enforce the law relating to import and export declarations. Enquiries concerning the submission of import and export declarations can be made to the Trade Statistics Branch (2) of the Census and Statistics Department at 18/F, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong. Telephone: (852) 2877 1818. Facsimile: (852) 2877 5399. Email: trade-declaration@censtatd.gov.hk Exemption from import/export declarations Articles that are exempt from the lodgement of import and export declarations are stipulated in the Import and Export (Registration) Regulations. Some of the examples are goods covered under the ATA Carnets, transit cargo, personal baggage of which the articles contained are not for trade or business, samples valued less than HK$1,000, gifts or goods temporarily imported into the HKSAR for exhibition. Specific conditions are attached to the exemptions. Enquiries relating to the exemption from import/export declarations can be made to the Customs 24-hr enquiry hotline: (852) 2815 7711. Facsimile: (852) 2542 3334. Email: customsenquiry@customs.gov.hk

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(B) Customs clearance: personal and household effects Accompanied baggage Travellers entering Hong Kong are required to declare to Customs officers the quantity of dutiable goods (liquor, tobacco, cigarette and cigar) which are in excess of the duty-free concessions. As regards merchandise imported for commercial purposes, travellers are required to lodge an import declaration to the Commissioner of Customs and Excise within 14 days after the importation of the articles while for prohibited goods, relevant import licences, permits or certificates will be required upon importation of the goods. A brief outline on the restrictions and licensing control on prohibited/controlled goods in Hong Kong is available under ‘Advice to Travellers’ in the Hong Kong Customs’ homepage http://www.customs.gov.hk/eng/advice_advice_e.html. Besides, passengers may also obtain a brochure named ‘Prohibited/Controlled Items - Advice to Travellers’ at Customs offices at all entry points in Hong Kong. Unaccompanied baggage The procedures and documents required for Customs clearance of unaccompanied baggage, e.g. personal and household effects, which are sent by freight as imported cargo are the same as that of commercial consignments mentioned in “(A) Customs clearance: commercial consignments” above. No duty-free concessions will be given in respect of dutiable goods contained in unaccompanied baggage. For identification, the owner of unaccompanied baggage is required to produce his/her passport at the time of clearance. In the event that clearance is done by the owner's representative, a letter of authorization and photocopy of the owner's passport should be produced. Enquiries can be made to Customs 24-hr enquiry hotline: (852) 2815 7711. Facsimile: (852) 2542 3334. Email: customsenquiry@customs.gov.hk

Prohibited Goods Prohibited goods refer to any goods the import or export of which is prohibited or controlled under the provisions of the Import and Export Ordinance or any other laws of the HKSAR. The importation of such goods must be covered by import licences, permits or certificates issued in advance by the relevant Government departments unless otherwise exempt subject to certain conditions. Absolute prohibitions Under the Dogs and Cats Ordinance, the import of fighting dogs has been

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banned since June 2000. “Fighting dogs” are Pit Bull Terriers, Japanese Tosas, Dogo Argentinos, Fila Brazilieros, or any dog which is a cross involving any of these breeds or types. Imports of smokeless tobacco products which the World Health Organisation has ruled to be carcinogenic and food containing non-permitted colouring matters, sweeteners, preservatives, anti-oxidants, or prohibited substances are prohibited to protect public health. Imports of halons for local consumption have been banned since 1 January 1994 in accordance with the Montreal Protocol. With effect from 1 January 1996, imports of CFCs, carbon tetrachloride, 1,1,1-trichloroethane and HBFCs for local consumption have also been banned. The following goods of which a licence, permit or certificate is required for import into the HKSAR. Dangerous drugs The common types of dangerous drugs are stimulants, hypnotics, tranquilizers and sedatives. Examples are opium, morphine, heroin, cannabis, cocaine, ecstasy and amphetamines. Dangerous drugs are listed in the First Schedule to the Dangerous Drugs Ordinance. Importation of dangerous drugs requires an import licence and import certificate issued by the Department of Health. A valid export authorization or diversion certificate will be required from the exporting country. Enquiries relating to licence applications should be made to the Pharmaceuticals Registration and Import/Export Control Section of the Department of Health at 3/F, Public Health Laboratory Centre, 382 Nam Cheong Street, Kowloon, Hong Kong. Telephone: (852) 2319 8462. Facsimile: (852) 2803 4962. Controlled chemicals The Control of Chemicals Ordinance groups 25 chemicals under three Schedules for different levels of control. There are 19 substances listed under Schedules 1 and 2, and 6 substances under Schedule 3, all of which are commonly used for the manufacture of narcotic drugs or psychotropic substances. Importation and exportation of any Schedule 1 and 2 substances are subject to licence and authorization control. In addition, a removal permit is required to remove the substance which is in transhipment from the incoming conveyance in which it was imported into the HKSAR; or in any way move the substance within the HKSAR after its removal from the incoming conveyance in which it was imported into the HKSAR.

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Exportation of any Schedule 3 substance to a country specified in the same Schedule is also subject to licence and authorization control. Enquiries and applications for licence, authorization and removal permit should be made to the Controlled Chemicals Group of Customs and Excise Department at Room 631, 6/F, North Point Government Offices, 333 Java Road, North Point, Hong Kong. Telephone: (852) 2541 4383. Facsimile: (852) 2541 1016. Email: cedcdibl@netvigator.com. Website: http://www.info.gov.hk/customs. Pharmaceutical products and medicines The importation of pharmaceutical products and medicines is controlled under the Import and Export (General) Regulations. Importation of these articles must be covered by a licence issued by the Department of Health. Pharmaceutical products and medicines imported in the personal baggage of a person entering the HKSAR and which are accompanied by him and in a reasonable quantity for his personal use may be exempt from licensing requirement. Also, transhipment cargo may be exempt from licensing requirements under certain conditions (See TRANSHIPMENT CARGO EXEMPTION SCHEME). Enquiries relating to licence applications may be made to the Pharmaceuticals Registration and Import/Export Control Section of the Department of Health at 3/F, Public Health Laboratory Centre, 382 Nam Cheong Street, Kowloon, Hong Kong. Telephone: (852) 2319 8459. Facsimile: (852) 2803 4962. Endangered species The Protection of Endangered Species of Animals and Plants Ordinance, which replaced the Animals and Plants (Protection of Endangered Species) Ordinance on 1 December 2006, gives effect to the Convention on International Trade in Endangered Species of Wild Fauna and Flora. The importation, exportation or possession of endangered species of animals and plants, and their parts and derivatives, is strictly controlled under the Ordinance. To import, export or possess any endangered species, a licence must be obtained for individual shipment in advance from the Agriculture, Fisheries and Conservation Department. Applications, supported with valid documents such as export permit from the exporting country and invoice, should be made in specified form and submitted to the Agriculture, Fisheries and Conservation Department at 5/F, Cheung Sha Wan Government Offices, 303 Cheung Sha Wan Road, Sham Shui Po, Kowloon, Hong Kong. Telephone: (852) 1823. Facsimile: (852) 2376 3749. Email: hk_cites@afcd.gov.hk. Website: www.cites.org.hk. Live animals

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The import of mammals, birds and reptiles is strictly controlled under the Public Health (Animals and Birds) Ordinance and the Rabies Ordinance. These animals should not be brought into the HKSAR unless a special (import) permit is obtained in advance from the Agriculture, Fisheries and Conservation Department. The terms and conditions of the permit must be fully complied with. Dogs, cats and some other mammals may be subject to quarantine for up to 4 months. Birds are subject to health and testing controls for the prevention of avian influenza and other diseases. Enquiries and permit applications should be directed to the Import and Export Section of the Agriculture, Fisheries and Conservation Department at 5/F, Cheung Sha Wan Government Offices, 303 Cheung Sha Wan Road, Sham Shui Po, Kowloon, Hong Kong. Telephone: (852) 2708 8885. Facsimile: (852) 2375 3563. Enquiries can also be made through Citizen’s Easy Link (CEL) Tel: (852) 1823. Email: icsenquiry@afcd.gov.hk. Website: http://www.afcd.gov.hk. Plant & plant pests Under the Plant (Importation and Pest Control) Ordinance, it is illegal to import plants, plant pests or soil into the HKSAR without a valid licence /permit issued in advance by the Agriculture, Fisheries and Conservation Department. The import of plants produced in the Mainland of China is exempt from the requirement. The exemption further applies to the import of cut flowers, fruits and vegetables for consumption from other countries. Enquiries can be made with the Plant and Pesticides Regulatory Division of the Agriculture, Fisheries and Conservation Department at 5/F, Cheung Sha Wan Government Offices, 303 Cheung Sha Wan Road, Sham Shui Po, Kowloon, Hong Kong. Telephone: (852) 2150 7000/ (852) 1823. Facsimile: (852) 2314 2622. Email: plantlic@afcd.gov.hk. Website: http://www.afcd.gov.hk. Pesticides The import of pesticides into the HKSAR is controlled under the Import and Export (General) Regulations and Pesticides Ordinance. Under the former, an import licence must be obtained in advance from the Agriculture, Fisheries and Conservation Department (as delegated by the Trade and Industry Department) for every consignment of pesticides imported into the HKSAR including those on valid through bills of lading. However, import licence for methyl bromide is issued by the Trade and Industry Department. Under the Pesticides Ordinance, companies handling pesticide imports into the HKSAR whether for local use or subsequent re-export, must possess a pesticides licence or permit issued by the Agriculture, Fisheries and Conservation Department. A licence is required for pesticides registered in the HKSAR, a permit for those not registered. Pesticides imported on a valid through bill of lading are exempt from the control of the Pesticides Ordinance.

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Also, transhipment cargo may be exempt from licensing requirements under certain conditions (See EXEMPTION OF CERTAIN AIR TRANSHIPMENT CARGO FROM LICENSING REQUIREMENTS). In addition, the import of methyl bromide into the HKSAR is also controlled under the Ozone Layer Protection Ordinance. Under the Ordinance, import of methyl bromide into the HKSAR for local consumption is allowed only if it is used for quarantine and pre-shipment cargo applications. Anyone who imports methyl bromide into the HKSAR should hold a certificate of registration under the Ozone Layer Protection Ordinance issued by the Environmental Protection Department and a Pesticides Permit under the Pesticides Ordinance issued by the Agriculture, Fisheries and Conservation Department. Enquiries and application for import licence, pesticides licence or permit should be directed to the Plant & Pesticides Regulatory Division of the Agriculture, Fisheries and Conservation Department at 5/F, Cheung Sha Wan Government Offices, 303 Cheung Sha Wan Road, Sham Shui Po, Kowloon, Hong Kong. Telephone: (852)2150 7007 / (852) 1823. Facsimile: (852) 2314 2622. Email: pestlic1@afcd.gov.hk; Website: http://www.afcd.gov.hk. Enquiries and application for import licence regarding methyl bromide should be directed to the Non-Textiles Licensing Unit of the Trade and Industry Department at Room 101A, 1/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon, Hong Kong. Telephone: (852) 2398 5560. Facsimile: (852) 2380 8504. Radioactive substances and irradiating apparatus The import of radioactive substances and irradiating apparatus, as set out in the Schedule to the Import (Radiation) (Prohibition) Regulations, is subject to licensing control. An import licence must be obtained in advance from the Department of Health (as delegated by the Trade and Industry Department) for every consignment of radioactive substances and irradiating apparatus imported into the HKSAR. The manufacturing, production, selling, dealing in or with, possession and use of radioactive substance and irradiating apparatus are required to be covered by licences issued by the Radiation Board in accordance with the Radiation Ordinance. A removal permit is also required for conveyance of radioactive substances on vehicles or vessels in the HKSAR. Enquiries relating to import licence, radioactive substances licence, irradiating apparatus licence and removal permit may be made to the Radiation Health Unit, Department of Health at 3/F, Sai Wan Ho Health Centre, 28 Tai Hong Street, Sai Wan Ho, Hong Kong. Telephone: (852) 2569 8204 (for import licences), (852) 2886 1551 (for radioactive substances licence, irradiating apparatus licence, removal permit). Facsimile: (852) 2834 1224. Email: rhu@dh.gov.hk. Website: http://www.info.gov.hk/dh-rhu. E-submission of applications: http://www.dh-rhu.gov.hk. Rough diamonds

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The importation of rough diamonds is controlled under the Import and Export (General) Regulations which gives legal backing to the implementation of the Kimberley Process Certification Scheme (Certification Scheme) for rough diamonds in the HKSAR. Under the Regulations, all parties carrying on a business of importing, exporting, buying, selling or carrying rough diamonds (including carrying rough diamonds in transit and transhipment) (other than a person falling under paragraph (1A) of Regulation 6DB of the Import and Export (General) Regulations (Cap. 60, subsidiary legislation A)) must be registered with the Trade and Industry Department, which is responsible for implementing the Certification Scheme in the HKSAR. Before importation of rough diamonds, Kimberley Process Certificate (Import) issued by the Trade and Industry Department must be obtained and no person, whether as agent or otherwise, shall import rough diamonds from a country or place other than the countries or places for which the Certification Scheme is effective or as permitted by the Kimberley Process. Rough diamonds in transit or as air transhipment cargo do not need to be subject to the Kimberley Process certification requirement provided that the rough diamonds are sealed in a container, the container has not been tampered with, and the seals on the container remain intact. Transhipment of rough diamonds by other modes covered by through bill of lading or through air waybill may also be exempt from certification requirement, provided that the handlers have been registered as rough diamond traders, have applied for transhipment exemption and comply with the conditions of exemption, or have been registered under the Transhipment Cargo Exemption Scheme and comply with the conditions of exemption under the Scheme. Enquiries relating to the control of rough diamonds in the HKSAR should be made to the Non-Textiles Licensing Unit of the Trade and Industry Department at Room 101A, 1/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon, Hong Kong. Telephone: (852) 2398 5557. Facsimile: (852) 2380 8504. Strategic commodities The import of strategic commodities is required to be covered by import licences in accordance with the Import and Export Ordinance and the Import and Export (Strategic Commodities) Regulations. The licensing control on the import of strategic commodities is administered by the Trade and Industry Department. Strategic commodities include items such as munitions, chemical and biological weapons and their precursors, nuclear materials and equipment, industrial dual-use goods, and facilities and articles for a use relating to nuclear, chemical or biological weapons. For certain sensitive items, transit through the HKSAR is also subject to import and export licensing control. The control system serves to monitor the flow of strategic commodities through the HKSAR to prevent the HKSAR from being used as a conduit for proliferation of weapons

APEC Customs Guide - Hong Kong, China 2009 (as at 25 February 2009) 17

of mass destruction and to ensure its continued access to high-technology products and advanced technology. Enquiries relating to import control of strategic commodities may be made to the Strategic Trade Controls Branch of the Trade and Industry Department at Room 516B, 5/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon, Hong Kong. Telephone: (852) 2398 5575 (for licensing advice) and (852) 2398 5587 (for technical assessment and classification). Facsimile: (852) 2396 3070 and (852) 3525 1526. Explosives, arms and ammunition Explosives, arms and ammunition that fall under the Import and Export (Strategic Commodities) Regulations are subject to import licensing control administered by the Trade and Industry Department under the Import and Export Ordinance. Certain explosives, arms and ammunition are also subject to the control of other Ordinances. Explosives are controlled under the Dangerous Goods Ordinance, while arms and ammunition are controlled under the Firearms and Ammunition Ordinance. Trade and Industry Department is responsible for the processing and approval of strategic commodities import licences. For applications covering explosives, arms or ammunition, the importer has to separately approach the relevant government departments for endorsement on import or legitimate possession of the subject articles. Import licences for explosives are issued by the Trade and Industry Department with the prior endorsement of the Mines Division of the Civil Engineering and Development Department, address at 25/F, 410 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong. Telephone: (852) 2716 8666. Facsimile: (852) 2714 0193, Email:mines@cedd.gov.hk. Import licences for arms and ammunition are issued by the Trade and Industry Department, the validity of which is subject to a valid licence for possession, exemption or arms dealer’s licence issued by the Arms Licensing Section of the Hong Kong Police Force at, 12/F., Arsenal House, Police Headquarters, 1 Arsenal Street, Wanchai, Hong Kong. Telephone: (852) 2860 6534. Facsimile: (852) 2200 4323. Hotline: (852) 2866 0300. Email: arms-licensing@police.gov.hk. Enquiries relating to import license applications on explosives, arms and ammunition can be made to the Strategic Trade Controls Branch of the Trade and Industry Department at Room 516B, 5/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon, Hong Kong. Telephone: (852) 2398 5575 (for licensing advice) and (852) 2398 5587 (for technical assessment and classification). Facsimile: (852) 2396 3070 and (852) 3525 1526. Weapons

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The Weapons Ordinance prohibits the possession of certain weapons, including Chinese-style throwing dart, gravity knife, gravity-operated steel baton, knuckle-duster, Chinese-style fighting iron, spring-loaded steel baton, any knife the blade of which is exposed by a spring or other mechanical or electrical device, and any blade or pointed weapon designed to be held in a clenched fist protruding between fingers. There is no license or permit that may be issued to cover the possession of these weapons. Textiles Textiles include any natural or artificial fiber products and any combination of natural and artificial fiber products in the form of yarn, fabrics, garments or other manufactured articles. The import and export control system on textiles products operated by the HKSAR primarily aims to ensure that goods claiming Hong Kong origin are genuinely manufactured in Hong Kong so as to safeguard the interest of Hong Kong's textiles trade. Under the Import and Export (General) Regulations, importers of textiles must apply for import licences with the Trade and Industry Department prior to the actual arrival of the consignment, unless they have been registered under the Textiles Trader Registration Scheme and granted exemption by the Director-General of Trade and Industry in respect of textiles which fall within the scope of the scheme, in which case they may lodge Import Notifications in lieu of import licences. The following textiles articles are exempt from import licensing requirement:-

for personal use or as bona fide gifts, woven or knitted fabric swatches and sample yarn imported by air and not

exceeding 0.8 square metre in size in respect of fabric swatches and 1.2 kilograms in weight in respect of each type of yarn, and

textiles articles constituting part of the provisions required for consumption by the crew or passengers of the vessel, aircraft or vehicle on which the articles are carried. Enquiries regarding textile import licensing should be made to the Customer Service Centre of the Textiles Licensing Branch of the Trade and Industry Department at 2/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon, Hong Kong. Telephone: (852) 2398 5288. Enquiries regarding the Textiles Trader Registration Scheme should be made to the Central Registration Office of the Trade and Industry Department at the same address. Telephone: (852) 2398 5512. Facsimile: (852) 2394 6485. Website: http://www.tid.gov.hk. Rice Rice is a reserved commodity under the Reserved Commodities Ordinance. In

APEC Customs Guide - Hong Kong, China 2009 (as at 25 February 2009) 19

order to maintain a reserve stock of rice at all times sufficient for about 15 days’ consumption by the local population, importers are required to register with the Trade and Industry Department as stockholders and share the responsibility of maintaining the reserve stock. In general, licences for rice imported for local consumption are issued only to companies registered with the Trade and Industry Department as rice stockholders. No licence is required for the import of rice in the personal luggage of a person solely for his own consumption or as gifts, in an amount not exceeding 15 kg. Also, transhipment cargo may be exempt from licensing requirements under certain conditions (See TRANSHIPMENT CARGO EXEMPTION SCHEME). Enquiries should be directed to the Rice Control Unit of the Trade and Industry Department at Room 102B, 1/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon, Hong Kong. Telephone: (852) 2398 5570. Facsimile: (852) 3525 0987. E-mail: enquiry@tid.gov.hk. Milk Importation of milk requires prior permission from the Food and Environmental Hygiene Department. Each consignment of milk imported into the HKSAR shall be accompanied by a Health Certificate issued by the competent health authority of the country of origin, a report of chemical analysis and a report of bacteriological examination. In addition, the importer shall report to the Food and Environmental Hygiene Department the arrival of each such consignment at least 48 hours in advance. Each shipment is to be examined or if necessary, sampled by Health Inspectors of the Food and Environmental Hygiene Department to check on the chemical and bacteriological quality of the product and shall not be released for sale except with the written permission from the Food and Environmental Hygiene Department. Enquiries on application of permit should be directed to the Centre for Food Safety of the Food and Environmental Hygiene Department at 43/F, Queensway Government Offices, 66 Queensway, Hong Kong. Telephone: (852) 2867 5694, (852) 2867 5990 or (852) 2867 5571. Facsimile: (852) 2521 4784. Email: http://www.fehd.gov.hk/comments/qform2.html. Frozen confections Importation of frozen confections requires prior permission from the Food and Environmental Hygiene Department. Each consignment of frozen confections imported into the HKSAR shall be accompanied by a Health Certificate issued by the competent health authority of the country of origin, a report of chemical analysis and a report of bacteriological examination. In addition, the importer shall report to the Food and Environmental Hygiene Department the arrival of each such consignment at least 48 hours in advance. Each shipment is to be examined or if necessary, sampled by Health Inspectors of the Food and Environmental Hygiene Department to check on the chemical and

APEC Customs Guide - Hong Kong, China 2009 (as at 25 February 2009) 20

bacteriological quality of the products and shall not be released for sale except with the written permission from the Food and Environmental Hygiene Department. Enquiries on application of permit should be directed to the Centre for Food Safety of the Food and Environmental Hygiene Department at 43/F, Queensway Government Offices, 66 Queensway, Hong Kong. Telephone: (852) 2867 5694, (852) 2867 5990 or (852) 2867 5571. Facsimile: (852) 2521 4784. Email: http://www.fehd.gov.hk/comments/qform2.html. Chilled/Frozen meat and poultry The import of chilled/frozen meat and poultry into the HKSAR is controlled under the Import and Export Ordinance, Cap. 60. An import licence must be obtained in advance from the Food and Environmental Hygiene Department (as delegated by the Trade and Industry Department) for every consignment of chilled/frozen meat or poultry imported into the HKSAR. Import licences are only issued to firms registered with the Food and Environmental Hygiene Department. No licence is required for the import of chilled/frozen meat or poultry in an amount not exceeding 15 kilograms in the personal baggage of a person for personal consumption or as gifts. However, such import shall be accompanied by a health certificate issued by the competent authority of the country of origin of the meat or poultry recognized by the Food and Environmental Hygiene Department and/or with prior permission from the Food and Environmental Hygiene Department. Licensing enquiries should be directed to the Centre for Food Safety of the Food and Environmental Hygiene Department at 43/F, Queensway Government Offices, 66 Queensway, Hong Kong. Telephone: (852) 2156 3041 or (852) 2156 3042. Facsimile: (852) 2521 4784. Email: http://www.fehd.gov.hk/comments/qform2.html. Game, meat and poultry Under the Imported Game, Meat and Poultry Regulations, anyone who imports chilled/frozen game, meat and poultry has to obtain prior permission for importation from the Food and Environmental Hygiene Department unless the import of the frozen meat or poultry is supported by a health certificate issued by the competent authority of the exporting country recognized by the Food and Environmental Hygiene Department. Importation involving transhipment should obtain written permission from the Food and Environmental Hygiene Department. The consignment should be accompanied by a health certificate issued by the competent health authority of the country of origin and accompanied by a transhipment certificate issued by the competent authority of the country of transit certifying that the goods

APEC Customs Guide - Hong Kong, China 2009 (as at 25 February 2009) 21

were properly imported into the country of transit and that during the time there they did not suffer any spoilage or deterioration (if the consignment was conveyed other than in sealed refrigerated containers). In case a consignment is conveyed in a sealed refrigerated container, certification and records on description and quantity of goods, proper refrigeration during the voyage and seal intact from carrier(s) and a surveyor report certifying the same at time of unloading in Hong Kong should be produced for inspection in lieu of transhipment certificate. In addition, the importer shall report to the Food and Environmental Hygiene Department the arrival of each such consignment at least 48 hours in advance. Each shipment is to be examined or if necessary, sampled by Health Inspectors of the Food and Environmental Hygiene Department to check on the chemical and bacteriological quality of the products and shall not be released for sale except with the written permission from the Food and Environmental Hygiene Department. Enquiries relating to importation of game, meat and poultry should be directed to the Centre for Food Safety of the Food and Environmental Hygiene Department at 43/F, Queensway Government Offices, 66 Queensway, Hong Kong. Telephone: (852) 2867 5577 or (852) 2156 3040. Facsimile: (852) 2521 4784. Email: http://www.fehd.gov.hk/comments/qform2.html. Ozone depleting substances Under the provisions of the Ozone Layer Protection Ordinance, certain ozone depleting substances are subject to quota and licensing control. The importation and exportation of chlorofluorocarbons (“CFCs”), halons, methyl chloroform, methyl bromide, carbon tetrachloride, hydrobromofluorocarbons (“HBFCs”) and hydrochlorofluorocarbons (“HCFCs”) as listed in the Schedule to the Ozone Layer Protection Ordinance must be covered by a valid licence issued by the Trade and Industry Department under delegated authority by the Environmental Protection Department. Only HCFCs and methyl bromide can be imported for local consumption with effect from 1 January 1996 and 1 January 1995 respectively. The import of HCFCs for local consumption is subject to quota control. The import of methyl bromide is strictly for quarantine and pre-shipment applications. Enquiries concerning the Ozone Layer Protection Ordinance and on the import and export of ozone depleting substances should be directed to the Air Policy Group, Environmental Protection Department at 33/F, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong. Telephone: (852) 2594 6275 or (852) 2594 6412. Facsimile: (852) 2827 8040. Enquiries regarding the application for import or export licences under the Licensing Unit of the Trade and Industry Department at Room 101A, 1/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon, Hong Kong. Telephone: (852) 2398 5560. Facsimile: (852) 2380 8504. Hazardous chemicals

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Under the provisions of the Hazardous Chemicals Control Ordinance, certain hazardous chemicals are subject to licensing control. The importation, exportation and transhipment of hexachlorobenzene and polychlorinated biphenyls as listed in Schedule 1 to the Hazardous Chemicals Control Ordinance; as well as asbestos (actinolite, anthophyllite, amosite, crocidolite, tremolite), polybrominated biphenyls (hexabromobiphenyl, octabromobiphenyl, decabromobiphenyl), polychlorinated terphenyls, tetraethyl lead, tetramethyl lead and tris(2,3-dibromopropyl) phosphate as listed in Schedule 2 to the Hazardous Chemicals Control Ordinance must be covered by a valid licence issued by the Environmental Protection Department under the delegated authorities from the Director-General of Trade and Industry. Enquiries concerning the Hazardous Chemicals Control Ordinance and the application for import or export licences should be directed to the Territorial Control Office, Environmental Protection Department at 28/F, Southorn Centre, 130 Hennessy Road, Wan Chai, Hong Kong. Telephone: (852) 2835 1963 or (852) 2835 2256. Facsimile: (852) 2180 6596. Radio transmitting apparatus The importation of radio transmitting apparatus is controlled under the Telecommunications Ordinance. Any person who imports these articles is required to obtain an Import Permit from the Telecommunications Authority unless he is a holder of a Radio Dealers Licence (Unrestricted) issued by the Telecommunications Authority. Applicant for Import Permit is required to complete an application form (Form OFTA A120). The completed application form together with a fee of HK$150 and copies of business registration documents or other documents in support of the applicant’s identity should be returned to the Office of the Telecommunications Authority for processing which normally takes one working day. Applicant for Radio Dealers Licence (Unrestricted) is required to complete an application form (Form OFTA A112). The completed application form together with the licence fee of HK$1,500 and copies of business registration documents should be returned to the Office of the Telecommunications Authority for processing which normally takes 4 working days. Subject to certain conditions stipulated by the Telecommunications Authority, a transhipment notification system is in place to exempt transhipment cargo which is radiocommunications transmitting apparatus from the import/export permit or licensing requirements. The importer/exporter or cargo forwarder may instead submit a transhipment notification form (Form OFTA A175) to the Telecommunications Authority at least one working day before importation of the transhipment cargo. Submission of the transhipment notification can be made by hand, post, facsimile or electronic means through OFTA’s Online

APEC Customs Guide - Hong Kong, China 2009 (as at 25 February 2009) 23

Licensing Service. Further information on the transhipment notification system and Online Licensing Service is available at OFTA’s website: http://www.ofta.gov.hk. Enquiries should be directed to the Licensing Unit of the Office of the Telecommunications Authority at 26/F, Wu Chung House, 213 Queen's Road East, Wanchai, Hong Kong. Telephone: (852) 2961 6671. Facsimile: (852) 2180 9828. Email: license@ofta.gov.hk. Sand Under the Sand Ordinance, it is illegal to import and remove sand in the HKSAR without a valid permit issued by the Civil Engineering and Development Department. Enquiries and permit applications should be made with the Fill Management Division of the Civil Engineering and Development Department at 5/F., Civil Engineering and Development Building, 101 Princess Margaret Road, Homantin, Kowloon, Hong Kong. Telephone: (852) 2762 5593. Facsimile: (852) 2714 9481, Email: sandpermit@cedd.gov.hk. Other prohibited goods Enquiries on importation of other goods that are subject to import and export control should be made to Customs 24-hr enquiry hotline: (852) 2815 7711. Facsimile: (852) 2542 3334. Email: customsenquiry@customs.gov.hk Goods under Trade Sanctions In the HKSAR, trade sanctions are implemented against certain countries in accordance with the Resolutions of the United Nations Security Council under the United Nations Sanctions Ordinance. Enquiries about trade sanctions should be directed to the Non-Textiles Licensing Unit of the Trade and Industry Department at Room 101A, 1/F, Trade and Industry Department Tower, 700 Nathan Road, Mongkok, Kowloon. Telephone: (852) 2398 5560. Facsimile: (852) 2380 8504. Transhipment Cargo Exemption Scheme Subject to certain conditions stipulated by the Trade and Industry Department, shipping companies, transportation companies, airline companies and their appointed agents who are registered with the Department under the Transhipment Cargo Exemption Scheme are exempt from import and export licensing requirements in respect of the following types of transhipment cargo:

pharmaceutical products and medicines; rice; frozen or chilled meat and poultry; Chinese herbal medicines and proprietary Chinese medicines; and

APEC Customs Guide - Hong Kong, China 2009 (as at 25 February 2009) 24

rough diamonds. Enquiries concerning the Transhipment Cargo Exemption Scheme may be made to the Manifest Checking Unit of the Trade and Industry Department at Room 409, 4/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon, Hong Kong. Telephone: (852) 2398 5565. Facsimile: (852) 2398 3747. Exemption of certain Air Transhipment Cargo from licensing requirements The Air Cargo Transhipment (Facilitation) Ordinance came into effect on 26 May 2000, whereby certain categories of non-sensitive goods meeting the requirement of air transhipment cargo are exempt from the need to obtain licences. Enquiries concerning exemption of certain air transhipment cargo from licensing requirements may be made to the Trade and Industry Department at Room 504A, 5/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon, Hong Kong. Telephone: (852) 2398 5565. Facsimile: (852) 3525 1804. Air Transhipment Cargo Exemption Scheme for specified strategic commodities With the implementation of Air Transhipment Cargo Exemption Scheme for Specified Strategic Commodities, airlines, ground handling agents and freight forwarders registered with the Trade and Industry Department are, subject to the registration conditions, exempt from licensing requirement in respect of air transhipment cargo of specified strategic commodities. The Scheme is confined to transhipment cargo of specified strategic commodities that is both imported and consigned for export in an aircraft and which, during the period between its import and export, remains within the cargo transhipment area of the Hong Kong International Airport. Enquiries concerning the Air Transhipment Cargo Exemption Scheme for Specified Strategic Commodities may be made to the Strategic Trade Controls Branch of the Trade and Industry Department at Room 516B, 5/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon, Hong Kong. Telephone: (852) 2398 5575 (for licensing advice) and (852) 2398 5587 (for technical assessment and classification). Facsimile: (852) 2396 3070 and (852) 3525 1526.

Importing a Motor Vehicle What kind of tax applies to a motor vehicle? All motor vehicles for use on the roads of the HKSAR are subject to a First Registration Tax under the Motor Vehicles (First Registration Tax) Ordinance. The tax is administered by the Transport Department on the basis of the

APEC Customs Guide - Hong Kong, China 2009 (as at 25 February 2009) 25

published retail price. For vehicles without a published retail price, the tax will be assessed on the basis of the declared purchase price of the vehicle, incidental insurance, freight charge and any brokerage or agency fee related to the purchase and importation plus the cost of materials and work required to put the vehicle into the state necessary to meet first registration requirements. The tax system Under the First Registration Tax system for motor vehicles, officers of the Customs and Excise Department are delegated with the authority to register motor vehicle importers and distributors, process Import Returns and assess the taxable values of motor vehicles. The Transport Department remains responsible for the calculation and collection of the Tax (See Annex II). The following paragraphs briefly outline the procedures:- Importing a vehicle for commercial purpose (A) Who should apply for registration? All importers and distributors of vehicles for trade purposes should be registered with the Customs and Excise Department. New importers and distributors should be registered within 30 days of the commencement of their business. Application forms for registration can be obtained from:-

the Motor Vehicles Valuation Group of the Customs and Excise Department at 11/F, North Point Government Offices, 333 Java Road, North Point, Hong Kong (telephone: (852) 2231 4391 facsimile: (852) 2598 4975 website address: http://www.customs.gov.hk/eng/major_licence_motor_e.html); or

the Hong Kong Licensing Office of the Transport Department at 3/F, United Centre, 95 Queensway, Hong Kong (telephone: (852) 2804 2637. facsimile: (852) 2804 2599 website address: http://www.td.gov.hk/public_services/licences_and_permits/vehicle_first_registration/guidelines_for_importation_and_registration_of_mot/index.htm).

Registration is subject to the payment of a prescribed fee and is not transferable. Exception: The registration requirement does not apply to traders who import motor vehicles other than for use in the HKSAR e.g. for re-export, scrapping, etc. (B) Documents required for importation of motor vehicles

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A registered importer who imports motor vehicles for use in the HKSAR should file an Import Return with the Customs and Excise Department within 30 days of the importation of the motor vehicles and not less than 5 working days before delivering or offering for sale that vehicle to the buyer. For motor vehicles not intended for use in the HKSAR, the requirement of filing an import return does not apply. A registered distributor should, before offering motor vehicles for sale or distribution, publish a retail price for the make and model of the motor vehicles. He should also submit a copy of the retail price list to the Customs and Excise Department for assessment. Importing a vehicle by an individual for own use If the motor vehicle is imported by an individual for his own use and not for sale, registration as an importer is not required. However, the importer of the motor vehicle has to file an Import Return and a Declaration in prescribed forms with the Customs and Excise Department within 30 days of the importation of the motor vehicle. Left hand drive vehicles Left hand drive vehicles are not for use on roads of the HKSAR except approved by the Transport Department. How to apply for first registration and licensing of a motor vehicle? Any person applying for first registration and licensing of a motor vehicle for use on the roads of the HKSAR should submit an application in prescribed form to the Hong Kong Licensing Office of the Transport Department at the address mentioned above. Application forms are available there or can be downloaded from the following hyperlink of Transport Department Homepage: http://www.td.gov.hk/public_forms/td_forms/vehicle_registration_and_licence/index.htm.

Import and Export of Optical Disc Mastering and Replication Equipment To import or export Optical Disc Mastering and Replication Equipment into or out of the HKSAR, the importer or exporter is required to obtain the relevant licence from the Intellectual Property Investigation Bureau of the Customs and Excise Department at Room 1035, 10/F, Skyline Tower, 39 Wang Kwong Road, Kowloon Bay, Hong Kong. Telephone: (852) 2851 1625. Facsimile: (852) 2716

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3261. Facilitation for the transhipment of Optical Disc Mastering and Replication Equipment (ODMRE) Importation and exportation of ODMRE as transhipment cargo is exempt from the requirement of an import licence and an export licence respectively provided that a transhipment notification in regard to the goods concerned has been endorsed in advance by the Commissioner of Customs and Excise before the importation. The completed transhipment notification form should be submitted to the Optical Disc Licence Office at Room 1035, 10/F, Skyline Tower, 39 Wang Kwong Road, Kowloon Bay, Hong Kong.

Valuation What kind of charges and levy apply to goods? In the HKSAR, no Customs tariff is imposed on imports and exports. Yet importers and exporters are required to pay a nominal import and export declaration charge on the goods imported or exported, other than exempt articles. The imports and exports declaration charge is calculated at a percentage value of the goods and is payable at the time an importer (or exporter) lodges the import (or export) declaration to the Commissioner of Customs and Excise. In the case of clothing or footwear items of the HKSAR origin for export, an additional export clothing industry training levy will be collected. The calculation of the import declaration charge on imports is based on the CIF (Cost, Insurance and Freight) value, whereas the FOB (Free on Board) value is used for calculation of export declaration charge as well as clothing industry training levy. Rate of import and export declaration charge and clothing industry training levy The rate of import and export declaration charge for the import of food items is HK$0.5 per declaration irrespective of the value whereas for non-food items, the rate is HK$0.5 for the first HK$46,000 of the value of the goods or part thereof and HK$0.25 in respect of each additional HK$1,000 or part thereof and rounded up to the nearest HK$0.1. With regard to exports/re-exports, the rate is HK$0.5 in respect of the first HK$46,000 of the value of the goods or part thereof and HK$0.25 in respect of each additional HK$1,000 or part thereof and rounded up to the nearest HK$0.1. For export of locally manufactured clothing or footwear items, the clothing industry training levy is HK$0.3 in respect of each HK$1,000 value or part thereof payable in addition to the import and export declaration charge.

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Annex I Schedule of Duty Rates of Dutiable Goods under Dutiable Commodities Ordinance, Cap. 109 (with effect from 25 February 2009) Part I Duty on Liquor 1. Duty shall be payable on the following types of liquor at the rates, expressed as a percentage of the value (calculated in accordance with section 26A of the Dutiable Commodities Ordinance), set out opposite each type of liquor :

Type of Liquor Rate

Liquor with an alcoholic strength of more than 30% by volume measured at a temperature of 20oC

100%

Liquor, other than wine, with an alcoholic strength of not more than 30% by volume measured at a temperature of 20oC

0%

Wine 0%

2. Where there is no or insufficient information available from which the Commissioner of Customs and Excise (or any officers authorized by him in that behalf) is able to determine the value of any quantity of liquor of less than 12 litres, imported at any time in one consignment, he may assess the duty payable on such liquor at the rate of HK$160 per litre. Part II Duty on Tobacco 1. Duty shall be payable on tobacco at the following rates: HK$ (a) for each 1 000 cigarettes 1,206.00 (b) cigars 1,553.00/kg (c) Chinese prepared tobacco 296.00/kg (d) all other manufactured tobacco except tobacco intended

for the manufacture of cigarettes 1,461.00/kg

2. For the purpose of applying the duty under paragraph 1(a) a cigarette more

than 90 mm long, excluding any filter or mouthpiece, shall be treated as if

APEC Customs Guide - Hong Kong, China 2009 (as at 25 February 2009) 29

each additional 90 mm or portion of 90 mm were a separate cigarette.

Part III Duty on Hydrocarbon Oil

1. Duty shall be payable on hydrocarbon oil other than ultra low sulphur diesel and Euro V diesel at the following rates per litre:

HK$

(a) aircraft spirit 6.51

(b) light diesel oil 2.89

(c) motor spirit (leaded petrol) 6.82

(d) motor spirit (unleaded petrol) 6.06

1A. Duty shall be payable on ultra low sulphur diesel at the following rates:

(a) from 7 July 2000 to 31 December 2008 (both dates inclusive), at HK$1.11 per litre; and

(b) from 1 January 2009, at HK$2.89 per litre

IB. Duty shall be payable on Euro V diesel at the following rates:

(a) from 1 December 2007 to 13 July 2008 (both dates inclusive), at HK$0.56 per litre; and

(b) from 14 July 2008, at HK$0 per litre.

Part IV Duty on Methyl Alcohol 1. Duty shall be payable on methyl alcohol and any admixture containing methyl alcohol at the rate of HK$840.00 per hectolitre measured at a temperature of 20oC and in addition, for every 1% by which the alcoholic strength by volume exceeds 30%, HK$28.10 per hectolitre.

Annex II Schedule of First Registration Tax of Motor Vehicles under Motor Vehicles (First Registration Tax) Ordinance, Cap 330

APEC Customs Guide - Hong Kong, China 2009 (as at 25 February 2009) 30

Item Class of Motor Vehicle Rate of tax%

1. Private cars- (a) on the first HK$150000 ..............………….......……………. 35 (b) on the next HK$150000 ............…………......……………... 65 (c) on the next HK$200000 ..........…………........………………. 85 (d) on the remainder .............…………...…………………………. 100 2. Taxis ....................………………………………….…..………………. 3.7 3. Public light buses and private light buses ……………………….. 3.7 4. Public buses, except buses which are to be used solely in

connection with operating a public bus service under the Public Bus Services Ordinance (Cap 230); under the Kowloon-Canton Railway Corporation Ordinance (Cap 372) within the North-west Transit Service Area as defined in thatOrdinance or within the North-west Transit Service Area by the MTR Corporation Limited. ................................……..…

3.7

5. Private buses, except buses which are to be used solely in connection with the training of drivers for the purposes of operating a public bus service under the Public Bus ServicesOrdinance (Cap 230); within the North-west Transit Service Area under the Kowloon-Canton Railway Corporation Ordinance (Cap 372) or within the North-west Transit Service Area by the MTR Corporation Limited...........……….

3.7

6. Motorcycles ................………………………..……..………………… 35 7. Motortricycles .................……………….………….………………… 35 8. (a) Goods vehicles, other than van-type light goods

vehicles ..........…………………………………………..………………...15

(b) Van-type light goods vehicle not exceeding 1.9 tonnes permitted gross vehicle weight-

(i) on the first HK$150000 ...............…....…………..………….. 35 (ii) on the next HK$150000 ................……………...…………... 65 (iii) on the remainder .......................…………………………….. 85 (c) Van-type light goods vehicle exceeding 1.9 tonnes

permitted gross vehicle weight…………………….………………….17

9. Special purpose vehicles ............……………………………………. 3.7

Contact Information

Ms. LEUNG Pui-yuen, Alice Head of Customs Liaison Bureau Customs & Excise Department Hong Kong, China Room 1039, 10/F,

Rumsey Street, Multi-storey Carpark, Central, Hong Kong E-mail: alice_py_leung@customs.gov.hk

Tel: (852) 2852 1439 Fax: (852) 2850 7952

APEC Customs Guide - Hong Kong, China 2009 (as at 25 February 2009) 31

Mr. NG Yan Kwong, Ronny Deputy Head of Customs Liaison Group

Customs & Excise Department Hong Kong, China Room 1032, 10/F,

Rumsey Street, Multi-storey Carpark, Central, Hong Kong

E-mail: yk_ng@customs.gov.hk

Tel: (852) 2852 1404 Fax: (852) 2541 6585

Mr. CHUI Chi Fai Divisional Commander (WCO and APEC) Customs & Excise Department Hong Kong, China Room 1038, 10/F, Rumsey Street, Multi-storey Carpark, Central, Hong Kong E-mail: cf_chui@customs.gov.hk

Tel: (852) 2815 1150 Fax: (852) 2542 1447

Ms. YU Sau Mee, Martha Head of APEC Unit Customs & Excise Department Hong Kong, China Room 1037, 10/F,

Rumsey Street, Multi-storey Carpark, Central, Hong Kong E-mail: sm_yu@customs.gov.hk

Tel: (852) 2852 1466 Fax: (852) 2541 6072