RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/231
19 October 2000
(00-4343)
Council for Trade in Goods Original:  English
TRADE FACILITATION
Import and Export Procedures and Requirements, and Facilitation Measures -
Experience paper by Hong Kong, China
The following communication, dated 17 October 2000, has been received from the Permanent
Mission of Hong Kong, China.
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This note1 outlines the import and export procedures and requirements of Hong Kong, China,
and highlights the relevant measures taken by the Government to facilitate trade in the past few years.
1. Import and Export Procedures and Requirements
(a) Import and Export Requirements
Hong Kong, China is a free port with no tariff on the importation or exportation of goods.
Licensing is imposed only to fulfill our obligations under international agreements, or to protect
public health, safety, security, the environment and intellectual property rights.  Further details are set
out in Annex I.
(b) Customs Procedures
Customs control on goods is done through inspection of documents such as manifests and
licences if applicable, and where necessary, physical examination of the goods.  Physical examination
is done on a selective basis by using risk management and systematic cargo-profiling techniques fordetecting contraband.  Further details are set out in Annex II.
2. Recent Facilitation Measures
It is the aim of Hong Kong, China to implement measures to facilitate trade whenever
opportunities arise.  Some of the measures taken recently are set out below.
(a) Improved Quality of Services to Traders
Under the Serving the Community Scheme, performance pledges are made by Government
departments including those responsible for administering import and export procedures and
requirements  to promulgate the service standards to the general public.  The pledges are also reviewed
regularly with a view to improving the standards as far as possible.
                                                     
1This note updates Hong Kong, China's earlier communication (G/C/W/125) on the same subject.G/C/W/231
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The Trade and Industry Department, which provides import and export licensing service to
the trade, was among the first group of departments to announce their performance pledges. A
Customer Liaison Group was also set up in 1994 fo r exchange of views between the trade and the
Department on issues such as services provided by it.
The Customs and Excise Department pledges to provide an efficient, courteous and
professional service to legitimate trade.  Its pledges and targets are also made public and reviewed
regularly for the purpose of improving customs services. To enhance communication with the
business sector, the Customs and Excise Department has also set up four customer liaison groups.
(b) Enhanced Transparency in Licensing and Customs Procedures and Requirements
Licensing Procedures and Requirements
Apart from making available a variety of publications on licensing procedures and
requirements to the public, the Trade and Industry Department has introduced an Interactive VoiceResponse System to handle general public enquiries through telephone 24 hours a day.  Moreover, the
Trade and Industry Department has created an internet homepage for public access to information and
activities of the Department.  Recent events, new services provided, quota-related information and
answers to frequently asked questions are available on the homepage.
Three Customer Service Centres were opened in late 1997 in the Trade and Industry
Department to provide better and more comprehensive services to the trade.  The Centres are staffed
by trained officers.  The purpose is to provide assistance to traders who have queries on or difficulties
in matters related to textiles licensing requirements and procedures, and to handle any suggestions and
comments from traders.
Customs Procedures and Requirements
The customs laws and regulations of Hong Kong, China and most of the customs
administrative guidelines and procedures are easily accessible by the public, in paper form and on the
internet.  The latter, in particular, greatly enhances the transparency of our customs procedures and
requirements as the homepage is accessible by both local and overseas traders round-the-clock.
Moreover, the customs guidelines and procedures are reviewed regularly for improvement.
(c) Simplified Licensing Procedures and Requirements
Hong Kong, China has taken many measures to simplify textiles licensing procedures and
requirements, but without compromising the integrity of the control system.  In this regard, two major
trade facilitation measures have been put in place.  In 1993, a Textiles Trader Registration Scheme
was introduced to exempt exports of textile products to non-restrained markets and imports of such
products from the licensing requirement provided that a set of conditions could be met.  Traders
registered under the Scheme can cover their imports and exports with notifications.
The second measure, implemented in August 1998, was to lift the requirement for certificate
of origin to support textiles exports to the US.  The measure could help textiles traders save costs and
efforts in making applications for certificate of  origin to cover textiles exports to the US.
Apart from the above two major measures, we have kept our textiles licensing procedures and
requirements under constant review.  Trade facilitation measures, however minor, are implementedfrom time to time to provide a more efficient and cost effective service to textiles traders.  For
example, as a result of a review of procedures in 1997/98, applicants for textiles export licences and
for advance use of textiles quotas are no longer required to attach supporting documents at the time ofG/C/W/231
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application.  Instead, the documents need to be submitted only on request.  This has simplified the
documentation requirements.
In 1999, a Central Registration Office was established in the Trade and Industry Department
to provide one-stop service for traders who have to register under three separate registration schemes
for different textiles licensing purposes.  Therefore, traders can enjoy greater convenience as commonsupporting documents only need to be submitted once and changes in any registration particulars are
automatically updated in all related registration records.
Apart from some sensitive strategic commodities, nuclear related materials, narcotic drugs
and infectious goods, licensing requirements on air-to-air transhipment cargo have been relaxed since
26 May 2000.  Extension of the relaxation to other modes of transhipment is under study.
(d) Liberalization of Rice Trade
In line with Hong Kong, China’s commitment to trade liberalisation and facilitation,
progressive measures to achieve full liberalisation of the rice trade are being implemented.  In
January 2000, the timeframe of the series of measures to achieve full liberalisation of the rice trade by
2003 through removal of barriers to enter into the rice trade, for all interested parties to register as rice
importers with minimum registration requirements and for import quota to be removed, has been
mapped out for implementation.
(e) Introduction of the Electronic Data Interchange (EDI) Service for Government Trade
Documents
Recognising the international trend and benefits in electronic commerce, Hong Kong, China
is committed to promoting the application of electronic commerce through the use of EDI in trade
documents.  The introduction of the EDI service is a remarkable improvement in cost-and-time-efficiency in the trade documentation process for traders in Hong Kong, China.  The service has
greatly facilitated trade and will bring increasingly significant benefits to the trading community, as
its scope expands.
Coverage of the EDI Service
The Community Electronic Trading Service (CETS) now covers restrained textiles export
licences (RTEL) for the export of textiles products to restrained markets (i.e. where import quotas are
imposed by our trading partners); trade declarations (TDEC) required for imports, exports and re-
exports; certificates of origin; cargo manifest (EMAN); carrier not ification (CN); electronic visa
information system (ELVIS); production notification (PN); and dutiable commodities permit (DCP).
Through extending the CETS to other trade and co mmercial documents over time, Hong Kong, China
aims to benefit the trade fully from the use of EDI.
Schedule of Implementation and Progress(i) EDI Restrained Textiles Export Licence (RTEL)
EDI service for RTEL was introduced in January 1997.  Following the successful launch of a
phased migration programme in 1998, full implementation of the service has commenced starting
from January 1999 with the closure of receipt counters for paper submission.  Apart from electronic
licence applications, the service enables the transmission of electronic licence visa under ELVIS forcustoms clearance in the US market upon traders’ requests.G/C/W/231
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(ii) EDI Certificates of Origin (CO) [including Production Notifications (PN) for Cut and Sewn
Garments]
The new EDI services for PN and CO were roll ed out in July and August 1999 respectively.
In the light of the enthusiastic response from the trade, full migration to electronic submission of PN
was implemented in February 2000.  And for the benefits of traders and improved efficiency of theHong Kong business community as a whole, full EDI service for CO will be implemented as from
25 September 2000.
(iii) EDI Trade Declaration (TDEC), Cargo Manifest (EMAN), and Dutiable Commodities Permit
(DCP)
Full migration to EDI submission for TDEC wa s completed in April 2000.  In addition, EDI
services for EMAN and DCP are scheduled respectively for implementation in May and June 2001.
(iv) Services for Non-EDI Service Users
To cater for the needs of those non-EDI traders, such as those occasional applicants,
Tradelink
2 provides the service of data input and message transmission for paper submissions through
its service centres.
Feedback from Traders
Traders recognise the benefits of electronic commerce brought about by the EDI services.
EDI service possesses the advantages over the paper-based service in speed, accuracy, convenience
and efficiency.  Taking RTEL for example, under the paper system, traders will only be notified of the
results of their applications in two clear working days; whereas under the EDI system, they will be
notified of the errors in application within 15 minutes and of the application approval in one clear
working day after submission.  Similar improvement in service is available for CO and PN.  Theimproved services are reinforced by the streamlining and standardisation of processing procedures
and arrangements.  Moreover, traders need not pay a higher fee for the improved services.
Traders at large support the CETS as an infrastructure to facilitate their business operation.
During the past few years, traders have in general built up their confidence in and adapted to the new
mechanisms for the EDI services.  It is foreseen th at over time traders will call for greater application
of electronic commerce in conducting their business.
(f) Faster Boundary Crossings
There are currently one railway crossing point and three road vehicles crossing points along
the boundary with the mainland China.  One of the road vehicles crossing points is being expanded to
double the capacity so as to cope with the traffic growth.  Advanced technology and devices such as
fixed x-ray vehicle inspection system and automatic vehicle recognition system will be employed to
enhance customs efficiency.  One new railway crossi ng point and one new road crossing point are in
the pipeline and will respectively come into operation in 2004 and 2005.
(g) Pre-arrival Clearance to Enable Speedy Customs Clearance
The document required for the purpose of customs clearance is cargo manifest.  It is required
to be submitted to Customs when cargoes are imported into or exported from the Hong Kong Special
Administration Region.  Currently there is no requir ement of submission of cargo manifest prior to
                                                     
2In 1992, the Tradelink Electronic Commerce Limited (Tradelink) was set up jointly by the Government
(its largest shareholder) and key private sector organisations to implement CETS.G/C/W/231
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the import of the cargoes.  However, in order to en able speedy customs clearance, it is permissible for
traders to submit import cargo manifests prior to im porting the cargoes.  Such being the case, the
desirability of making it a legal requirement is under study.
(h) Co-operation with Other Customs Administrations
The Customs and Excise Department has been keen on seeking cooperation with other
customs administrations with a view to facilitating trade and enhancing customs efficiency.  A
working team has been formed to study the feasib ility of acceding to the Kyoto Convention of the
World Customs Organisation.  The Convention aims at facilitating trade through harmonizing and
simplifying customs procedures among member administrations.
3. Conclusion
Hong Kong, China adopts a free trade policy and applies no tariff.  Import and export
licensing is kept to a minimum.  In addition to having an open and free trade regime, we haveimplemented in the past few years a number of measures to facilitate trade, such as simplified
licensing procedures and requirements, enhanced transparency in licensing and customs procedures,
and the introduction of the EDI services for Gove rnment trade documents.  Hong Kong, China will
continue to look for opportunities and share specific experience with other economies in order to
further facilitate international trade.G/C/W/231
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Annex I:  Import and Export Requirements
Licenses are required for the import and/or export of products including strategic
commodities (e.g. high speed digital computers; chemical or biological weapons precursors;
and certain arms and ammunition), rice, frozen  or chilled meat and poultry, pharmaceutical
products and medicines, pesticides, radioactive substances and irradiating apparatus, opticaldisc mastering and replication equipment, ozone-depleting substances, endangered species of
animals and plants, waste, and textiles and clothing.
There is no tariff quota, surcharge, value added tax or general services tax.  Excise
duties are levied on four types of goods, namely, liquors, tobacco, hydrocarbon oil and methyl
alcohol, and apply equally to imported and locally produced goods.  Imported goods ofdifferent origins are treated the same.  Only imports of rice and ozone depleting substances
for local consumption require quotas.  The purpose of the rice quota is not to restrict imports,
but to ensure a stable and adequate supply of rice, a staple food for the community, and to
provide a reserve stock for emergency and cushioning purposes. The quota in respect of
ozone depleting substances is imposed in connection with the implementation of the Montreal
Protocol.
Restrictions on exports are few.  Apart from a tight regulatory framework in the
textiles and clothing sector arising from the quantitative restrictions on textile products
maintained by Canada, the European Union and the United States under the WTO Agreement
on Textiles and Clothing, other export controls are mainly in respect of strategic commodities
or to implement our obligations under international agreements.G/C/W/231
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Annex II:  Customs Procedures
All import and export cargoes are subject to an import and export manifest containing
detailed information on description of goods, packages, the consignor, the consignee and the carrier.
Hong Kong, China is a tariff-free port.  However, customs valuation for assessment of excise duty is
consistent with the spirits of the WTO Valuation Agreement.  Except in the case where a consignment
is selected for physical examination, cargoes are allowed immediate delivery upon fulfilling licensingrequirement, if any.
In general, trade declarations (TDEC) mu st be lodged with the Customs and Excise
Department within 14 days after the goods have been imported or exported.  However, certain articles
are exempted from the lodgement of trade declarations, such as goods under Carnets, transit cargoes,
personal baggage, samples and gifts.  In particular, articles imported under ATA Carnets are granted
temporary admission without payment of duty a nd without having to lodge an import or export
declaration to the Customs and Excise Department.  TDEC can be lodged by using the ElectronicData Interchange (EDI) service.  Details of the lodgement procedures and any charges payable are
made available to the public through publications, hotline services and internet homepages of the
Customs and Excise Department as well as  the Census and Statistics Department.
Where import and/or export licences are required, traders may apply for the licences from the
issuing authorities before the importation or exportation of the goods.  Details of the applicationprocedures and any fees payable are made available to the general public by the relevant authorities
through publications, hotline services, internet homepages or other means.
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