Commercial Information Circulars

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18 December 2015

Dear Sirs,

Commercial Information Circular No. 1194/2015

The Free Trade Agreement Transhipment Facilitation Scheme -
Service on handling goods routed through Hong Kong

INTRODUCTION

This circular promulgates and sets out details of the service provided by the Customs and Excise Department (C&ED) from 20 December 2015 onwards for voluntary use by traders to enjoy tariff reduction under 13 Free Trade Agreements (FTAs) signed by the Mainland (see Annex (pdf format)).

FREE TRADE AGREEMENTS

2.  Under the abovesaid FTAs, consignments are generally required to be shipped directly between the Mainland and its FTA signatories so as to enjoy tariff reduction.  However, consignments routing through a third place shall be regarded as direct consignment and be eligible for tariff benefits under certain circumstances, in particular, if they remain under the control of Customs or other designated parties of the third place.  For details about the 13 FTAs concerned, please visit the following websites –

http://fta.mofcom.gov.cn/english/index.shtml
http://tga.mofcom.gov.cn/

CUSTOMS SERVICE

3.Since 1 January 2011, C&ED has provided a voluntary certification service for traders to meet the "direct consignment" requirement for goods passing through Hong Kong to enjoy the tariff benefits under the Economic Cooperation Framework Agreement between the Mainland and Taiwan (ECFA).  To extend such trade facilitation for goods under other FTAs and to streamline the existing procedures for ECFA goods, C&ED has developed the Free Trade Agreement Transhipment Facilitation Scheme (the FTA Scheme) which extends the customs facilitation measures to cover other FTAs of the Mainland in consultation with the Customs authorities in the Mainland and the FTA signatories concerned.  Under the FTA Scheme, C&ED will provide facilitation services and issue certificates under conditions agreed with the relevant authorities for the goods passing through Hong Kong to benefit from the tariff reductions under respective FTAs.  The new service will be provided as from 20 December 2015 onwards.  The procedures, set out in the ensuing paragraphs, are designed to minimise the costs to traders.  They will be subject to review in the light of actual experience. 
 
4.According to the requirements of respective FTA signatories, transhipment cargoes in Hong Kong in some scenarios should possess certificates issued by C&ED for maintaining the entitlement for tariff preferential treatment.  For details about the scenarios, please visit the following C&ED's website –

http://www.customs.gov.hk/en/trade_facilitation/fta/index.html

APPLICATION METHOD

5. Traders who wish to apply for the said Customs services are required to submit their applications to C&ED at least one calendar day in advance of the arrival of the FTA consignments.  The application form can be downloaded from C&ED's website.  Supporting document, such as Business Registration of applicant, bill of lading, Certificate of Origin, authorisation letter of cargo owner, packing list and records of storage (if applicable), etc., should also be provided.  Under exceptional circumstances where the application cannot be made in time, C&ED may assist the traders as far as possible.

FEES

6. The Customs service is voluntary for use and the user-pay principle applies.  C&ED will collect, from the applicant before delivering the service, a fee set on the "cost recovery" principle taken into account the need to minimize the cost.  Different fee levels are set for different scenarios as follows -

ENQUIRIES

Yours faithfully,
 

(Angus LAU)
for Director-General of Trade and Industry

Note : While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.