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e-mail address : enquiry@tid.gov.hk
22 February 2013
Powdered Formula Licensing Circular No. 1/2013
Export Control on Powdered Formula in Hong Kong
I. INTRODUCTION
Hong Kong will implement an export control system for powdered formula. This circular informs the trade of the details about the implementation arrangements.
II. DETAILS
Background
2.Parallel traders have been diverting large quantities of powdered formula away from the supply chain in Hong Kong resulting in serious shortage in certain brands for our local mothers. The Government has been closely monitoring the supply of powdered formula in the local market. To protect the health of persons aged under 36 months who may still rely heavily on powdered formula, it is necessary to ensure a safe and stable supply in Hong Kong. To combat the huge demand of parallel traders which often lead to a serious shortage of certain brands of powdered formula, it is considered necessary to regulate the export of powdered formula from Hong Kong. The Import and Export (General) Regulations (Cap. 60 sub. leg. A) have been amended to prohibit the export of powdered formula from Hong Kong except under and in accordance with an Export Licence issued by the Director-General of Trade and Industry (DGTI).
Definition of Powdered Formula
3.As defined in the Import and Export (General) Regulations (Cap. 60 sub. Leg. A), "powdered formula" means a substance in powder form that:
- is or appears to be for consumption by a person aged under 36 months; and
- is or appears to be milk or milk-like substance in powder form to satisfy wholly or partly the nutritional requirement of a person aged under 36 months;
4.Please refer to the website of Food and Health Bureau (http://www.fhb.gov.hk/en/powderedformula) for examples of powdered formula that fall under the definition. Enquiries concerning the types of powdered formula that fall under the definition can be directed to Food and Health Bureau (fhbenq@fhb.gov.hk) (Note 1).
Eligibility to Apply for an Export Licence
5.Hong Kong does not produce powdered formula and all demands for powdered formula are met by imports. The export control system would facilitate normal trading activities where importers of powdered formula would be able to re-export a certain portion of their imports outside Hong Kong under the cover of an Export Licence. As all importers of powdered formula must register with the Director of Food and Environmental Hygiene in accordance with the Food Safety Ordinance (Cap. 612), TID would, in general, only issue Export Licence to those importers of food who hold a valid registration with Food and Environmental Hygiene Department (FEHD) listed at (i) and (ii) below. If you wish to make enquiries regarding registration as a food importer, please refer to the contact information for FEHD in para. 22.
Registration with Food and Environmental Hygiene Department
- registered as a food importer for powdered formula under Food Safety Ordinance (Cap.612) with a valid food importer registration number ; or
- exempted under Cap. 612 section 4(3)(a) with a valid food importer registration (notice of exemption) exemption number
Powdered Formula re-exported for testing
6.The export licensing arrangements to address the need of laboratories appointed by registered importers of powdered formula to ship small quantities of powdered formula outside Hong Kong for testing purposes will be announced shortly.
Effective Date of the Export Licence Control System
7.The amendments to the Import and Export (General) Regulations (Cap. 60 sub. leg. A) will commence on 1 March 2013. That is to say, with effect from 1 March 2013, all exports of powdered formula from Hong Kong must be covered by valid Export Licences issued by TID. To facilitate traders to plan their exports and apply for an Export Licence before shipment, TID will start to accept applications for Export Licence with immediate effect, i.e., 22 February 2013.
Export Licensing Requirements
8.Applications for Export Licence shall be made on Export Licence Form 6 (TRA 394). These forms are for sale at the Collection and Form Sales Office of TID (Note 2) at Room 104, 1/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon.
9.Each Export Licence shall cover one consignment of powdered formula. As the control system is to facilitate importers of powdered formula to re-export a certain portion outside Hong Kong, the exporter submitting the Export Licence application should normally be the importer of the powdered formula. To prove that the powdered formula has been imported into Hong Kong, the exporter is required to produce a copy of the relevant import invoice to support the Export Licence application. The product description and shipment details on the import invoice should not be inconsistent with that declared on the Export Licence application.
10.The Export Licence application and the supporting documents should be lodged with the Powdered Formula Licensing Unit (Note 3) at Room 214, 2/F of the Trade and Industry Department Tower. TID will pass the Export Licence application to FEHD for verification of the status and validity as a Food Importer for powdered formula. After receiving confirmation from FEHD, TID will process the Export Licence application which will normally be ready for collection after two clear working days. Export Licence applications submitted to TID on working day 1 will be ready for collection on working day 4. Export Licences are issued free of charge.
11.An Export Licence is valid for 28 days from the date of issue. Exporters are reminded to make applications for amendments or cancellations of their Export Licence if the goods exported are not in accordance with those declared on the Export Licence.
12.Please refer to the guidance notes and the specimen of a completed Export Licence Form 6 at Annex 1 and Annex 2 for reference.
Exemptions
13.Certain exemptions from export licensing requirement are applicable for personal use or in the case of cargo in transit or transhipment. Please refer to details below:
Personal Exemptions:
powdered formula that is exported in the accompanied personal baggage of a person aged 16 or above leaving Hong Kong who did not leave Hong Kong in the last 24 hours:
- the formula (whether of the same composition and whether in 1 or more containers) does not exceed 1.8 kg in total net weight;
in exceptional cases where the 24 hour period restriction may cause inconvenience, powdered formula that is exported by a person who left Hong Kong one or more times in the last 24 hours must satisfy the following requirements:
- who is leaving Hong Kong together with a person aged under 36 months (child); and
- the formula is in an unsealed container and does not exceed a reasonable quantity for the child's consumption during the travelling time from a point of exit in Hong Kong to the next point of entry in a place outside Hong Kong. ;
Exemptions for Goods in Transit and Transhipment:
- any powdered formula in transit ;
- for air-to-air transhipment cargo whereby at any time between its being brought into and taken out of Hong Kong the powdered formula has remained in the cargo transhipment area of Hong Kong International Airport ;
- for transhipment of other modes or inter-modal transhipment, where the carrier or the forwarder handling the cargo has valid registration under the Transhipment Cargo Exemption Scheme (TCES) subject to complying with the conditions of registration under the TCES. Details of the TCES can be found in the following website at http://www.tid.gov.hk/english/import_export/tces/tces_maincontent.html.
Export Process
14.With effect from 1 March 2013, an exporter must obtain an Export Licence issued by TID before exporting a shipment of powdered formula. Exporters are requested to lodge their application in advance and allow sufficient time for the processing of Export Licence.
15.The exporter must comply with all the Conditions of Issue on the Export Licence and any other Conditions of Issue promulgated by the DGTI in circulars from time to time. The Export Licence form consists of 3 copies. The Original copy and the Triplicate will be issued to the exporter. The Original copy is for the exporter's retention. The exporter is required to pass the Triplicate copy to the carrier. Under the Law, the carrier shall not accept a shipment of powdered formula for export except under and in accordance with a valid Export Licence. The Duplicate copy will be retained by TID.
III. IMPORTANT NOTES AND WARNING
16.TID works closely with the Customs and Excise Department (C&ED) to enforce the export control licensing system for powdered formula in Hong Kong. Authorized officers of C&ED may conduct inspections on exports of powdered formula from time to time. Suspected malpractices are subject to full investigation. Legal and/or administrative actions may be taken against any traders engaged in any malpractice.
17.Under the Import and Export Ordinance (Cap. 60), any person who exports powdered formula to all places outside Hong Kong without a valid licence, or fails to comply with any of the conditions of exemption, shall be guilty of an offence and shall be liable on conviction to a maximum fine of $500,000 and to imprisonment for 2 years.
18.Under the Import and Export Ordinance (Cap. 60), the owner of a vessel, aircraft or vehicle are obliged to receive from the exporter an export licence before accepting powdered formula for export. Any person who contravenes this requirement shall be guilty of an offence and shall be liable on conviction to a fine of $500,000 and to imprisonment for 1 year.
19.In addition to prosecution, TID may take administrative actions against the persons who have breached the Conditions of Issue on the Export Licence. Such administrative actions include but are not limited to, cancellation/suspension/revocation of a licence, refusal to issue a licence, debarment of all licensing facilities.
20.The data collected in the Export Licence applications will be kept in confidence. TID reserves the right to disclose to other governmental departments, or to third parties either in Hong Kong or elsewhere, for the purposes of or in connection with the exercise or performance of any of the powers duties under the legislation; or the institution of criminal proceedings under the legislation.
IV. ENQUIRIES
21.If you have any enquiries about the controls announced by Food and Health Bureau (FHB) on regulating the supply of powdered formula, please contact FHB at fhbenq@fhb.gov.hk. Details of the control measures, including frequently asked questions, can be found at http://www.fhb.gov.hk/en/powderedformula (Note 1).
22.If you have any enquiries about the registration of Food Importer, please contact FEHD at the following:
Registration with FEHD
Contact Point Telephone No. Food Importer/Distributor
Registration and Import Licensing Office2156 3017/2156 3034
23.If you have any enquiries about the export licensing arrangements, please contact TID at the following:
Export Licence issue by TID
Contact Point Telephone No. Powdered Formula Licensing Unit 3403 6220 Miss Ada LEUNG 3403 6087
Yours faithfully,
(Donald CHUNG)
for Director-General of Trade and Industry
Note 1 : Starting from 1 July 2022, the policy portfolio on powdered formula export control has been transferred to the Environment and Ecology Bureau. For details, please refer to the website (https://www.eeb.gov.hk/food/en/powderedformula/index.html) or contact (pfenq@eeb.gov.hk).
Note 2 : With effect from 5 October 2015, the Shroff and Form Sales Counter (formerly known as the Collection and Form Sales Office) has moved to Room 1309 on 13/F of the Trade and Industry Tower, 3 Concorde Road, Kowloon City, Hong Kong.
Note 3 : With effect from 20 February 2023, the counter services of the Powdered Formula Licensing Unit has moved to the Integrated Customer Service Centre in Room 1324 on 13/F of the Trade and Industry Tower, 3 Concorde Road, Kowloon City, Hong Kong.