U.S. and Hong Kong (1997)

U.S. Department of State

Hong Kong Country Commercial Guide for FY 95-96

Office of the Coordinator for Business Affairs

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CHAPTER VI. TRADE REGULATIONS AND STANDARDS

A. Trade Barriers, Including Tariffs, Non-Tariffs Barriers and Import Taxes

The Hong Kong Government levies no import tariffs. However, domestic consumption taxes (referred to as duties in Hong Kong) are imposed on certain goods, including tobacco (including cigarettes), alcoholic beverages, methyl alcohol and some fuels. These taxes are levied equally on local manufactures and imports. In addition, a steep tax, called a "First Registration Tax," which ranges from 40 - 60% of the price, is levied on new car purchases.

Useful contact for inquiring about specific products:

Customs and Excise Department
8/F, Harbor Building, 38 Pier Road
Central, Hong Kong
Tel: (852) 2852-3324
Fax: (852) 2541-9827 (Dutiable Commodities Division)

B. Customs Valuation

Customs valuation is only an issue for the taxable items listed in VI A above. The tax on tobacco is by volume. The tax on distilled spirits is 100%, on wine is 90% and on beer is 30%. The tax on petroleum products is by both volume and value. The value is based on the bill of lading as long as it represents a reasonable market value. The tax on automobiles is based on both retail price and engine size.

C. Import Licenses

Textiles are subject to import and export licensing because of the territory's obligations under agreements with the U.S. and other countries. Importers of "Reserved Commodities" which include rice and frozen meat must obtain an importer's license before they can import these commodities. Frozen/chilled meat imports must be accompanied by appropriate health certificates issued by a recognized authority of the country of origin. Plant and animal imports must be accompanied by appropriate phytosanitary health certificates. Quarantine is required for both livestock and pets.

D. Export Controls

The Hong Kong Government imposes restrictions on the export of high-technology products to countries proscribed under the former COCOM regime, such as the People's Republic of China. Restrictions on trade with China were relaxed significantly by the United States in 1991, allowing Hong Kong to re-export to the PRC on a more liberal basis. Textiles are subject to import and export licensing because of the territory's obligations under agreements with the USA and other countries.

E. Import/Export Documentation

U.S. standard trade documentation is acceptable.

F. Temporary Entry

There are no problems, as there are no duties which need to be waived.

G. Labeling, Marking Requirements

Non-tariff barriers such as labeling requirements, standards, etc. are also virtually nonexistent.

H. Prohibited Imports

The import of munitions, firearms and fireworks is strictly forbidden.

I. Standards

Few product safety standards are required for the domestic Hong Kong market. What little there are relate to fire control (gas and electricity) in the city's high rise buildings. Other standards of quality and safety control imposed on domestic manufacturers are for goods made for export or re-export outside the territory. It is fairly safe to assume, therefore, that industrial or retail products built to American standards will have no problem selling in Hong Kong.

Another guideline to use regarding quality control is the "ISO 9000" series, published by the International Organization for Standardization (ISO). These standards, now in the process of being adopted in Hong Kong via the Hong Kong Quality Assurance Agency, provide a framework for all types of manufacturing industries. The local Housing Authority has also adopted ISO 9000 for all of its consultants/contractors, and the Works Branch is considering extending ISO 9000 to engineering and architectural consultants by April 1, 1996. The Provisional Airport Authority also requires suppliers and contractors to conform to ISO 9000.

J. Free Trade Zones/Warehouses

There are no special zones since the whole territory is basically a free trade zone.

K. Special Import Provisions

None

L. Membership in Free Trade Arrangements

Hong Kong has been a GATT member in good standing, and is a founding member of the WTO.

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