WT/TPR/M/306/Add.1  
26 January 2015  
(15-0521)  Page: 1/125  
Trade Policy Review Body 
19 and 21 November 2014 Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  TRADE POLICY REVIEW 
HONG KONG, CHINA 
MINUTES OF THE MEETING 
Addendum 
Chairperson: H.E. Mrs. Mariam MD Salleh (Malaysia) 
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by Hong Kong, China.1 
 
 
Organe d'examen des politiques commerciales 
19 et 21 novembre 2014 
EXAMEN DES POLITIQUES COMMERCIALES 
HONG KONG, CHINE 
COMPTE RENDU DE LA RÉUNION 
Addendum 
Présidente: S.E. Mme. Mariam MD Salleh (Malaisie) 
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses fournies par Hong Kong, Chine.1 
 
 Órgano de Examen de las Políticas Comerciales 
19 y 21 de noviembre de 2014 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
H
ONG KONG, CHINA 
ACTA DE LA REUNIÓN 
Addendum 
Presidenta: Excma. Sra. Mariam MD Salleh (Malasia) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por Hong Kong, China.
1 
                                               
1 In English and Spanish only./En  anglais et espagnol seulement./En inglés y español solamente. WT/TPR/M/306/Add.1 
 
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  SWITZERLAND 
Report by the Secretariat 
 1 ECONOMIC ENVIRONMENT 
1.1 Recent Economic Developments 
 Table I.1  of the Secretariat's report suggests that Hong Kong, China's real GDP per capita has 
risen steadily to an estimated US$38,125.- in 2013, that is, to a level among the highest in the 
world. In view of this both welcome and favorable economic development, could the authorities of Hong Kong, China (hereafter HKC) consider in not so distant a future to graduate Hong Kong, China in the WTO from the status of a developing country to the status of developed country? If 
not, what conditions other than a high per capita income or a high ranking in the UN human 
development index would need to be met for such a step to be considered?   
Answer 
It has been a long-standing practice under th e GATT and the WTO that a Member's development 
status is by self-election upon accession. The only  exception is the designation of least-developed 
countries for which the WTO follows the practice of the United Nations. The rights and obligations 
that a particular Member adhered to base on the development status so elected are mutually binding. Hong Kong, China (HKC) does not intend to deviate from this accepted practice, nor change the rights and obligations agreed upon among WTO Members. 
 
HKC has all along engaged constructively and responsibly in the WTO. For example, HKC is the first Member to notify the WTO that we will implem ent all the provisions in Section I of the Trade 
Facilitation Agreement (TFA) upon its entry into force, without using any of the flexibilities 
provided in the Agreement.   
Graduation affects the rights and obligations of the entire WTO membership, and is therefore a 
highly sensitive issue. As and when the WTO membership agrees on the need to conduct discussions on this issue, HKC will take part in such discussion in our usual constructive manner.   
In para. 1.10 , the Secretariat's report notes that inflation has been substantially higher in Hong 
Kong, China over the period of the review than in  the United States despite the implementation of 
tighter prudential measures in the housing sector  and some higher taxes. Given the existing peg 
between the Hong Kong dollar and the U.S. dollar, this has led to a real appreciation of the Hong 
Kong dollar vis-à-vis the U.S. dollar in recent ye ars. Could HKC please indicate whether additional 
cooling off measures are being considered to reduce inflation further in order to at least maintain 
Hong Kong, China's external competitiveness, espe cially at a time when the U.S dollar is also 
appreciating? And, if so, which measures could be considered?   Answer 
Inflation has broadly followed an easing trend since 2012, thanks to tamer food inflation, slower increase in fresh-letting residential rentals and milder imported inflation. Underlying inflation, which nets out the effects of the Government's on e-off relief measures to reflect more clearly the 
underlying inflation trend, has fallen visibly from 5.3% in 2011 to 4.0% in 2013 and further to 
3.5% in the first nine months of 2014. Looking ahead, the upside risks to inflation should remain limited in the near term, in view of the moderate local and external price pressures.  
The difference between HKC's and US's inflation rates has been moderate, averaging 
1.7 percentage points per annum in the past five  years (2009-2013). Over a longer-term horizon, 
the difference was rather small, at 0.2 percentage point per annum in the past ten years (2004-2013). The real appreciation of the Hong Kong dollar against the US dollar in the recent years has 
been part and parcel of the adjustment mechan ism under the Hong Kong Linked Exchange Rate 
System (LERS), which helps to maintain the exchange rate between the two currencies at an equilibrium level. The LERS has served HKC's economy well and helped us tide through major 
global crises in past decades without severe disruptions to our financial system and our economic 
fundamentals, including the Asian financial crisis in 1997 and the global financial crisis in 2008/09.  
HKC's external competitiveness remained strong over  the years, and the exchange rate is only one 
of the many determinants. In the past few years, the slow and unsteady recovery of the global economy was the key constraints to the pick-up of HKC's trade growth. Yet, in spite of the WT/TPR/M/306/Add.1 
 
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  challenging trading environment, our trade-to-GDP ratio climbed further in recent years to reach 
almost 460% in 2013 and is among the highest in the world, further demonstrating our 
competitive edge in providing various kinds of services (e.g. financial, trading and logistics, tourism, and professional services) to the rest of the world. 
 
In the near term, the upside risks to inflation should be contained, given the moderate rental and wage cost pressures, relatively stable internatio nal commodity prices, and mild imported inflation. 
Yet the Government stays alert to the possibility of overheating in specific economic segments, 
notably the property market. The Government ha s rolled out multi-rounds of demand management 
measures to forestall property market exuberance, while stepping up efforts to increase land and housing supply. In the medium to long term, the Government is committed to investing in 
infrastructure to enhance the capacity and efficien cy of our overall economy, so as to alleviate 
inflationary pressures arising from the supply side. The Government will continue to monitor the inflation developments in HKC closely and stay vig ilant to their impact on the lower-income people. 
 
While HKC is inevitably subject to the vicissitu des of the global economic environment, the 
Government is committed to strengthening HKC's role as an international trade and commercial 
hub through investing in infrastructure, enhancing human capital, exploring new growth areas, and 
deepening economic integration with the Mainland and forging trade ties with new and emerging markets.   
2. TRADE AND INVESTMENT REGIME 
2.3 Trade Agreements and Arrangements 2.3.2 Regional and preferential trade agreements 
2.3.2.4 Closer Economic Partnership Arrangement (CEPA) with Mainland China 
 In para. 2.32 , the Secretariat's report notes that as a general rule, at least 30% of a product's 
total value added must be incurred in HKC in order to claim HKC origin and preferences. In 
December 2011, Supplement VIII to CEPA lowered this value-added criterion to 15%, provided 
that the difference is made up with the value of raw materials and components originating from Mainland China. The value added of at least 15% is the criterion that allows to attribute to a 
merchandise the origin of Hong Kong, China. Could HKC please explain what was the reason for 
such a reduction in December 2011 (Supplement VIII CEPA) and how it can be motivated? Could this threshold in future even be lowered more and under what conditions if so? Could such a low 
threshold not be misleading to consumers?  
 Answer 
HKC has been collaborating with the Mainland of China to broaden and enrich the content of CEPA. 
In respect of trade in goods, Supplement VIII allows HKC's manufacturers to include the value of raw materials and component parts originating from the Mainland in the calculation of the local value-added content up to 15%, provided that th e overall local value-added content comprising 
value of raw materials and component parts, labour costs and product development costs should 
not be less than 30% of the FOB value of the expo rting goods. The measure facilitates the trade to 
make use of the tariff preferential treatment offered to HKC's goods under CEPA. HKC and the 
Mainland will continue to work closely for the effective implementation of CEPA.  
 In para 2.36 , the Secretariat's report indicates that a feature of CEPA is the liberalization of 
services trade through pilot measures, first introd uced in the neighbouring province of Guangdong 
in Mainland China with the aim, inter alia, of serving as role models for further liberalization n a t i o n w i d e  i n  M a i n l a n d  C h i n a .  C o u l d  H K C  p l e a s e  i n d i c a t e  w h a t  k i n d  o f  m e a s u r e s  a r e  meant/targeted/subsumed under the wording "pilot measures"?  
 
Answer 
CEPA adopts a building block approach which provides a mechanism for progressive trade 
liberalization. Inclusive of the measures in Suppl ement X, there are 403 liberalization measures for 
trade in services under CEPA, opening up 149 sub-sectors for HKC's services trade, accounting for 93.1% of the WTO services sectoral classification.  
 
While most of the liberalization measures are applicable nation-wide, for certain service sectors in individual Mainland provinces and cities where the conditions are not ripe for implementation, the liberalization measures would be introduced on a pilot basis. Since 2008, the Mainland and HKC WT/TPR/M/306/Add.1 
 
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  have so far announced 79 measures for early an d pilot implementation in Guangdong Province, 
involving important economic industries in HKC, such as legal, medical, construction, tourism, 
telecommunications, banking, securities and futu res, insurance and transportation etc. Such 
liberalization measures/preferences take the form of relaxation in equity share restrictions, 
reduction in the entry thresholds such as registered capital and business turnover, as well as 
relaxation in restrictions over geographical location and business scope, etc. Some other pilot measures have also been introduced in ot her cities such as Beijing and Shanghai. 
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.2 Measures Directly Affecting Imports 3.2.8 Sanitary and phytosanitary requirements 
 
The Secretariat's report states in para. 3.55  regarding high-risk food items that "Imports of these 
products are confined to sources recognized by th e FEHD". Furthermore it specifies that for milk 
and milk beverages recognition of sources by the FEHD is manufacturing plant-specific. Could HKC 
please specify on the basis of which criteria such recognition is based? Does recognition of a manufacturing plant have to be renewed periodically? If yes, in what interval?  
 
Answer 
The Milk Regulation (Cap. 132AQ) requires, inter alia, any milk or milk beverage to be imported into Hong Kong, China (HKC) from a source of manufacture that has been approved by the 
Director of Food and Environmental Hygiene. Wh en a food importer applies for approval, the 
following information is required:-  
(a) the full name and address of the milk or milk beverage processing plant; 
(b) the law of the country of origin governing the production of milk or milk beverages;  (c) empty containers of the milk or milk beverage with labels; 
(d) information on the heat treatment method of the milk or milk beverage and facilities, including 
production equipment and water supply, in the processing plant;  (e) a certificate from an appropriate authority in the country of origin for the purpose of: 
-  certifying the effectiveness and efficiency of  the heat treatment method in pasteurising or 
 sterilizing the milk or milk beverage and that the products have been handled, processed and 
 packed under hygienic conditions  -  showing the chemical and bacteriological quality of the products; and  
(f) a statement from the manufacturer confirming  the approximate shelf-life of the products.  
 When the above information is accepted by FEHD, an approval will be granted to the importer. 
 
There is no routine renewal of the recognition for the manufacturing plant. However, review of the work of the manufacturing plant may be required  if samples of milk product are found to be 
unsatisfactory. 
 
In the same para. 3.55  it is mentioned that "no transshipment certificate is required for imports 
of meat and poultry transshipped in sealed refrigerated containers, if the seals have remained 
intact during transport". Does the same apply for milk and milk beverages? 
 Answer 
The same does not apply for milk or milk beverages . 
 3.4. Measures Affecting Production and Trade 3.4.2 Competition policy and price controls 
3.4.2.1 Competition policy 
 In para. 3.102 , the Secretariat's report notes that the Competition Ordinance (hereafter CO) was 
adopted on 14 June 2012 and, in para. 3.104 , that it will be implemented in phases. Could HKC 
please explain whether the CO does provide for transitional provisions regarding the anti-competitive conducts that started before the adop tion of the CO and/or between the adoption of 
the CO and its full implementation?  
 WT/TPR/M/306/Add.1 
 
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  Answer 
The CO does not have retrospective effect on alleged anti-competitive conduct that had taken 
place before its full commencement.  It should however be noted that there are competition regulations in the telecommunication and 
broadcasting sectors under the Telecommunications Ordinance ("TO") and the Broadcasting 
Ordinance (BO) to deal with anti-competitive conduct in these sectors before the full commencement of the CO. 
 
According to para. 3.102  and 3.109 of the Secretariat's report, the CO does not establish a 
cross-sector merger control regime, which remains limited to mergers in the telecommunications sector. Could HKC please explain why there is no prior control of business mergers in other 
economic sectors? Furthermore, could HKC please provide information on the market conditions in 
the telecommunications sector?  
Answer 
During the stage of making the CO, there was no clear consensus in the community to apply the 
merger control to all economic sectors. The HKC Government will review the regime a few years 
after the CO has fully commenced.  
 HKC's telecommunications market is highly liberal. It does not have any foreign ownership restrictions. The local fixed carrier services market is fully liberalized. There is no pre-set limit on 
the number of licences issued, nor deadline for applic ations. There is also no specific requirement 
on network rollout or investment. Competition in the fixed broadband services market is also vibrant, with 203 internet service providers licen sed to provide broadband services as at April 
2014. As for the public mobile services market, competition within the market is keen, with four 
mobile network operators providing a wide range of public mobile services as at April 2014. 
 
It is mentioned in para. 3.103  that the CO takes into consideration the particularities of the 
business sector in HKC. Could HKC please provide information about the business sector in HKC and more specifically about its particularities?  
Answer 
HKC is a small and geographically concentrated  economy, with a large number of small and 
medium sized enterprises competing in most sectors. The CO has taken this into consideration in 
developing the conduct rules and the exclusion arrangements from those rules. 
 According to the report ( para. 3.104 ) ,  a t  t h e  t i m e  o f  w r i t i n g ,  p r e p a r a t o r y  w o r k  f o r  t h e  
establishment of the Competition Tribunal was under  way. Could HKC please elaborate on when it 
thinks the Tribunal will be established and the CO will be fully implemented? 
 Answer 
The Competition Tribunal ("Tribunal") was establishe d in August 2013. Court procedural rules of 
the Tribunal are now being developed.  In terms of preparation work for the full commencement of the CO, apart from preparation for the 
Tribunal's operation, the Competition Commission is consulting the public on its draft enforcement 
guidelines. The HKC Government will put the CO into full operation when all preparatory work is completed. 
 
Para. 3.104  further states that the members of the Commission had been appointed. Could HKC 
please provide details on the appointment procedur e, appointment criteria (such as professional 
background, expertise, independency, etc.) and the structure of the Commission? How many 
members are there? 
 Answer 
Under the CO, the HKC Government appoints members and the Chairperson of the Competition Commission ("Commission") with regard to their expertise or experience in industry, commerce, economics, law, small and medium enterprises or public policy. 
The Commission currently comprises 14 members (inclu ding the Chairperson) who hold office for a 
period of 3 years. WT/TPR/M/306/Add.1 
 
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  The Commission is assisted by the executive arm he aded by a Chief Executive Officer, who leads a 
team of professional and executive staff includin g experts with legal, economics and enforcement 
background.  
The Secretariat's report states in para. 3.105  that the objectives of the CO is to curb possible 
anti-competitive conduct so as to maintain fair and sustainable competition in the market. It also states that the CO applies to undertakings en gaged in economic activity. Could HKC please 
elaborate in more detail what the term "sustainable" means and what the term "economic activity" 
covers?   Answer 
The competition in the market is "sustainable " if the competition is not impeded by anti-
competitive agreements or conduct. Economic activities mainly involve the offer of goods or services in a given market, irrespective of whethe r such activity is for profit making, the legal 
status of the entity engaging in that activity, and the way in which such activity is financed. 
 According to para. 3.105 , statutory bodies are exempted from the application of the CO's 
substantive provisions. Could HKC please expl ain the reasons underlying this exemption? 
 Answer 
It is because the statutory bodies are established or constituted by laws, usually charged with the 
obligation under the legislation to assist the HKC Government in the delivery of essential public 
services or implementation of public policy.   
Under the First Conduct Rule mentioned in para. 3.107 , a distinction is made between serious 
anti-competitive conduct and non-serious anticompetitive conduct. Could HKC please give some examples of conducts or agreements that are considered as "non-serious"? 
 
Answer 
Serious anti-competitive conduct is specifically defined in the CO as meaning any conduct that 
consists of any of the following or any combination of the following: (i) price-fixing; (ii) market 
allocation; (iii) output restriction; and (iv) bid-rigging. Anti-competitive conduct which do not 
belong to the above include, for example, rules of a trade association or profession body which 
prohibit members from soliciting for business, from competing with other members, or from 
advertising prices.  
 According to para. 3.107 , the First Conduct Rule will not apply to agreements that enhance 
overall economic efficiency provided that cons umers are allowed a fair share of the resulting 
benefit. Could HKC please explain what these benefits can be and what is considered to be a fair share?  
Answer 
The concept implies that the pass-on of benefits gained from enhanced economic efficiency to 
consumers must at least compensate consumers for any actual or likely negative impact caused to 
them by the restriction of competition found under the First Conduct Rule. 
 The Secretariat's report states in para. 3.107  that the CO does not make any specific provision 
for vertical agreements. Could HKC please ex plain the reasons underlying this position? 
 Answer 
The conduct rules in the CO apply to all types of agreements and conduct, including vertical 
agreements. It would be for the Competition Commission to consider if individual or group of 
vertical agreements will be exempt under the exemption and exclusion provisions of the CO when the CO has fully commenced. 
 
According to para. 3.110 , the CO provides for a number of exemptions and exclusions from the 
application of the conduct rules. HKC's Chief Executive in Council may for instance exempt an 
agreement or conduct form the First or Second Conduct Rule on "exceptional and compelling" 
public policy grounds. Could HKC please give some  examples of exceptional and compelling public 
policies?   WT/TPR/M/306/Add.1 
 
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  Answer 
Following international best practices, the CO provides for an exemption on exceptional and 
compelling public policy grounds. Whether a particular agreement/ conduct satisfies the conditions of this exemption could only be determined when such a case arises.  
 
The Secretariat's report states in para. 3.114  that there are no criminal sanctions available under 
the CO. Could HKC please indicate whether there are criminal sanctions available to ordinary 
courts in relation to the conducts sanctioned by the CO? What happens when an undertaking or a 
person fails to comply with an investigation led by the Competition Commission or with a decision of the Competition Tribunal.  
Answer 
Under the CO, there are criminal sanctions in relation of investigations. For example, any person 
would commit an offence if he, who without reasonable excuse, fails to comply with a requirement 
or prohibition imposed on that person under a no tice issued by the Competition Commission or 
under a warrant issued by the court. A person would also commit an offence if, having been required to produce a document, intentionally or reck lessly destroys or disposes of it, falsifies it or 
conceals it, or causes or permits its destruction, disposal, falsification or concealment.  
As for the Competition Tribunal, any failure to comply with the decision/judgment/order by the 
Tribunal may be found guilty of contempt of court.  WT/TPR/M/306/Add.1 
 
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  NEW ZEALAND 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.2 Measures Directly Affecting Imports 3.2.3 Tariffs 
 
WT/TPR/S/306, section 3.2.3, page 34, para 3.24 – 3.25 
 
The Secretariat's report notes that in 2014, 45.6% of Hong Kong, China's tariff lines were bound 
at zero duty rates, but that all applied MFN tariffs were at zero.  
 Question 
 Does Hong Kong, China have plans to increase the proportion of its tariff lines that are 
bound in its WTO schedule?  
Answer 
We should look at the scope of our tariff bindings in context. As tariff concessions are exchanged 
predominantly on the basis of reciprocity, Ho ng Kong, China (HKC) being one of the freest 
economies in the world is left with no other concession for exchange than scope of binding. This is 
acknowledged by Members as our present scope of binding is the outcome of previous negotiations 
plus additional autonomous binding we made  since the conclusion of the Uruguay Round. 
 
While 45.6% of tariff lines are bound at zero, they have already covered 57.6% of our imports in 
terms of 2013 value. In our view, this figure breathes great commercial meaning into our commitment and provides much better reference value for tariff negotiations. 
 
We look forward to substantial reduction and elimination of tariffs by WTO Members under the Doha Development Agenda negotiations. We will review our tariff regime in the light of the 
negotiation results and consider binding additional tariff lines and the timing for doing so as 
appropriate. We hope that tariff reductions and eliminations will be implemented as soon as possible following the conclusion of the negotiations.  
3.2.9 Standards and other technical requirements 
 WT/TPR/S/306, section 3.2.9, page 42, para 3.65 
 
The Secretariat's report notes that Hong Kong, China has not developed its own standards, and that its authorities maintain that it adopts international standards or overseas standards, where 
appropriate. We have noted that Hong Kong, China is currently undertaking a programme of 
regulatory changes around the trade of infant form ula as well as the sale and marketing of infant 
formula in Hong Kong, China.  
Question 
 Could Hong Kong, China please advise which international or overseas standards will inform 
its programme of regulatory changes around the trade of infant formula? 
 
Answer 
Hong Kong, China has launched a public consultation on the legislative proposals relating to 
formula products and prepackaged food for infants and young children under the age of 36 months 
in November 2012. The proposals comprises requirements on the nutritional composition of infant formula, and nutrition labelling of infant formula, follow-up formula and prepackaged food for infants and young children under the age of 36 months. When formulating the details of our 
requirements, we have made primary referenc e to the relevant standards of the Codex 
Alimentarius Commission (Codex) and relevant intern ational practices. Reference is also drawn to 
the local market and consumption situation. This will ensure that our legislative proposals pay due 
regard to international standards and local situation. We notified the WTO Committee on Technical 
Barrier to Trade on the public consultation on 3 December 2012 (Ref. G/TBT/N/HKG/44).  WT/TPR/M/306/Add.1 
 
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   What are the objectives and timeframes for this process? What other food and food safety 
related regulatory changes are planned? 
 Answer 
The purpose of the legislative proposals is to en sure that infant formula, follow-up formula and 
prepackaged food for infants and young children under the age of 36 months are properly labelled to reflect the values of important nutrients; and as far as infant formula is concerned, it must be 
nutritionally adequate, so as to protect the health of infants and young children under the age of 
36 months in Hong Kong, China.  Hong Kong, China tabled the corresponding legislative amendments at the Legislative Council 
(LegCo) in June 2014. LegCo completed its scrutiny on the amendments in October 2014.  
 Hong Kong, China will continue to update the food sa fety standards in legislation from time to time 
and put the requisite food types or items under regulation. In so doing, Hong Kong, China will 
ensure that the regulatory regime is in line with the best international practice and the food consumption behaviour of the public in Hong Kong , China, thereby safeguarding public health. We 
will also notify WTO in accordance with the established mechanism. 
 3.4 Measures Affecting Production and Trade 3.4.4 Government procurement 
 
WT/TPR/S/306, section 3.4.4, page 54, para 3.121  
According to the Secretariat Report, the share of government procurement to GDP is relatively 
modest, ranging from 3.9% to 5.8% during the review period.   
Question 
• In reaching the percentages of the share of government procurement to GDP, does Hong Kong, China include the procurement undertaken by so me or all of the enterprises listed in Table 
3.9?  
• If it includes only some of the enterprises, which enterprises are included and why are 
others not?  
Answer 
Enterprises listed in Table 3.9 are those which the Government has financial stakes under section 
3.4.3 "State trading and state-owned enterpri ses", but not under section 3.4.4 "Government 
procurement".  
 The information provided in section 3.4.4 "Governm ent procurement" is based on annual statistical 
reports submitted by HKC to the Committee. Pursuant to paragraph 5 of Article XIX of the GPA 
1994, only entities listed in Annexes 1, 2 and 3 of  HKC are required to provide the Committee with 
the annual statistics on their procurements covere d by the Agreement. As such, the government 
procurement shown in Table 3.10 covers only those entities listed in HKC's three Annexes, which 
include the three non-government public bodies, i.e. Airport Authority, Kowloon-Canton Railway 
Corporation and MTR Corporation Limited among those listed in Table 3.9.   
4 TRADE POLICIES BY SECTOR 
4.5 Services 4.5.4 Construction, architecture and real estate services  
WT/TPR/S/306, section 4.5.4.2, page 104, box 4.16 
 The Secretariat report refers to the licensing requirements for public works construction. We note 
the requirement of appointing resident management staff that possess a minimum period of local 
experience in managing a construction firm and technical staff who have acquired the relevant academic qualifications and local working experience as prescribed in the relevant category of 
construction works.  
 WT/TPR/M/306/Add.1 
 
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  Question 
• While it is important that suppliers of public works construction have the technical ability to 
undertake the relevant procurement, how does Hong  Kong, China ensure that suppliers from other 
jurisdictions with equivalent experience in managi ng a construction firm are considered for these 
contracting opportunities?  
 Answer 
In HKC, we usually adopt the method of selective tendering for letting out public works contracts. 
Under selective tendering, contractors on the releva nt approved lists are invited to submit tenders. 
Application for admission to the approved lists may be submitted by any construction firm at any time. The admission process is open, fair, consistent and non-discriminatory. For applicants from 
other jurisdictions, evidence of their experience outside HKC shall be supported by the consul or 
trade commissioner of the applicant's country. Detailed information of how to apply or admission to the approved lists is available at the Development Bureau's website – 
http://www.devb.gov.hk/en/home/index.html . 
 
Contractors from any jurisdictions may participate in the selective tendering of public works in HKC 
in three ways: 
• as approved contractors - to apply for admission to the relevant approved lists at any time; • as approved contractors - to apply for admissio n to the relevant approved lists in response 
 to a published notice of tender invitation; or 
• by means of participation in a Joint Venture (JV) - to form a JV with a contractor on the 
 relevant approved list.  
Notices of tender invitation for public Works will be published in the Government of the Hong Kong 
Special Administrative Region Gazette at the following website - http://www.gld.gov.hk/egazette. 
 
Questions regarding the Report by Hong Kong, China 
 2 MACROECONOMIC SITUATION AND POLICY 2.1 Economic Environment 
 
WT/TPR/G/306, section 2.1, page 4, para 2.3  
As stated in the report by Hong Kong, China, we positively note Hong Kong, China's position as a 
leading international trade and financial centre.  
Question 
• What strategic decisions may be required in the future to maintain Hong Kong's position, including in terms of Hong Kong's status as a shipping hub?   
Answer 
The HKC Government strives to keep up its competitiveness as an international trade and financial 
centre, by consolidating strengths in the traditiona l pillar industries (i.e. financial services, trading 
and logistics, tourism, and professional services), developing new industries with growth 
potentials, strengthening economic ties with new and existing trading partners, and upgrading its infrastructure and human capital, amid the abundant opportunities provided by the Mainland of 
China's relatively fast economic growth and development. 
 HKC's strength as an international trade hub is  underpinned by our free port policy, highly 
transparent and efficient customs procedures, world-class logistics infrastructure, and a business-
friendly environment. HKC will continue to invest  in infrastructure to reduce trade costs and 
strengthen our economic collaboration with the Mainland of China and overseas economies.  
In order to further develop HKC as a leading sh ipping hub, the Government is fully committed to 
supporting the long term development of the maritime industry. To realize this policy goal and seize opportunities arising from the global econom ic development trend, actions have been taken 
to improve the transport infrastructure and our connectivity, strengthen manpower training, and 
raise Hong Kong Port efficiency. Capitalizing on its geographical and institutional advantages, HKC is moving towards high value-added services and a knowledge-based economy to become the preferred base in Asia for international maritime  business. In the meantime, the Government is WT/TPR/M/306/Add.1 
 
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  working towards the establishment of a new statutory maritime body to drive the long-term 
development of our maritime industry. 
 2.4 Monetary Policy 
 
WT/TPR/G/306, section 2.4, page 5, para 2.12 – 2.13 
 
The report by Hong Kong, China outlines Hong Kong, China's objective to maintain currency 
stability, defined in terms of the exchange rate  of HK$7.80 to US$1.00. Since the Global Financial 
Crisis, monetary policy loosening in the US in the form of low interest rates and additional liquidity has led to more stimulatory economic conditions in the Hong Kong economy, particularly in the 
property market. Tapering of these policies has also impacted Hong Kong. 
 Question 
• What challenges have stimulatory economic conditions after the Global Financial Crisis 
created for monetary policy and does Hong Kong, China have any plans to review or adjust the exchange rate that would define currency stability in the future?  
 
Answer 
The HKC Government is fully committed to maintaining the Linked Exchange Rate System ("LERS"), and has no intention of changing the LERS. The LERS is the cornerstone of HKC 's 
monetary and financial stability, and it has been well tested through economic cycles. Given the 
open and externally-oriented nature of HKC 's economy and its status as an international financial centre, maintaining exchange rate stability against the U.S. dollar remains the most appropriate 
monetary policy for HKC.  
 The Government has been mindful of the bubble risks facing the housing market and that wild 
fluctuations in property prices could have serious ramifications on macroeconomic and financial 
stability. Nevertheless, the extraordinary low interest rate environment amid abundant liquidity after the global financial crisis is only one of the factors accounting for the increase in housing 
bubble risks. Other demand and supply factors have also been relevant. Increasing flat supply 
through increasing land supply is the Government's top policy priority in ensuring a healthy and 
stable property market. As it takes time to increase supply, the Government has also put in significant efforts to manage demand and reduce the possible risks to financial stability arising 
from an exuberant property market, including me asures to curb speculative demand and macro-
prudential measures to tighten mortgage lending. These measures have yielded their intended effects. 
 
4 SUSTAINING LONG TERM GROWTH AND IMPROVING BUSINESS ENVIRONMENT 4.1 Sharpening Competiveness  
4.1.2 Financial services 
 WT/TPR/G/306, section 4.1.2. 5, page 12, para 4.19 
 
The report by Hong Kong, China notes the pioneer ing and development of offshore RMB business 
in Hong Kong, China. 
 
Question • How does Hong Kong, China see its role as a RMB trading hub developing in the future, particularly as RMB trading becomes possible in a wider range of financial centres?  
 
Answer 
China's move towards full convertability of the RMB and liberalization of its capital accounts has 
provided opportunities for HKC to develop a deep and liquid offshore RMB market. With the 
increase in the use of RMB and demand for RMB serv ices from overseas corpor ates, it is natural for 
financial institutions in different regions to develop RMB business. This will present new 
opportunities for HKC by providing, for example, ov erseas financial institutions with RMB financing 
and correspondent banking services. On the development of offshore RMB business, HKC enjoys the first-mover advantage and rides on its close economic ties with the Mainland of China. The plan to launch the Shanghai-Hong Kong Stock Connect is a recent example of how HKC's offshore WT/TPR/M/306/Add.1 
 
- 12 - 
 
 
  RMB market will develop further by channeling ca pital flows between the Mainland and HKC stock 
markets.  
 4.3 Protection of Intellectual Property Rights 
 
WT/TPR/G/306, section 4.3, page 16, para 4.52  
The report by Hong Kong, China notes the introduction of the Copyright (Amendment) Bill 2014 
into the legislature, against the backdrop of Hong Kong, China's commitment to protecting intellectual property rights. We note that the appropriate protection of intellectual property rights is essential to spurring innovation, promoting investment, and fulfilling Chief Executive C. Y. 
Leung's vision of making Hong Kong an intellectual property trading hub. 
 Question 
• What are the prospects for the passage of the legislation for the Copyright (Amendment) Bill 
2014 and associated Patent and Trademark ordinances?   
Answer 
To ensure that our copyright law keeps pace wi th technological and overseas developments, the 
Government introduced the Copyright (Amendment ) Bill 2014 (the Bill) into the Legislative Council 
in June 2014. A Bills Committee was formed and the Bill is now under the Committee's scrutiny. 
We will continue to work with the stakeholders and the Legislative Council with a view to 
concluding this round of update to our copyright law as soon as possible.  
In the patent area, the Government announced its policy decision in February 2013 on the 
introduction of an "original grant" patent (OGP) system. The Government has since been 
intensively undertaking various tasks to implemen t the OGP system, including the preparation of a 
bill to amend the patent legislation. The current target is to introduce the amendment bill into the 
Legislative Council in the first half of 2015, and launch the new patent system in 2016-17 at the 
earliest.   
We will continue to follow the latest international development in IP related fields and review and 
update our IP legislation as and when necessary. WT/TPR/M/306/Add.1 
 
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  COLOMBIA 
Documento WT/TPR/G/306 
 
4. SUSTAINING LONG TERM GROWTH AND IMPROVING BUSINESS ENVIRONMENT 
4.1 Sharpening Competitiveness 
 4.1.5 Innovation and technology 
 
El párrafo 4.27 del informe del Gobierno indica que... "The HKC Government has devoted considerable efforts to foster innovation and high value added, technology-intensive economic activities. Backed by strong research and development (R&D) capabilities, excellent technology 
infrastructure, world-class universities, a vibrant pool of R&D talents, a sound legal system and a 
strong intellectual property protection regime, HKC has an enabling environment for the business 
sector to collaborate with universities and R&D organizations to conduct applied research and 
commercialize their innovations." 
 1. Do Hong Kong, China's authorities count, within the mentioned sound legal system for 
intellectual property, with laws which duly protect biodiversity, traditional knowledge and natural 
resources, when they are the subject of research?  Answer 
Intellectual property protection related to biodiv ersity, traditional knowledge and natural resources 
(or for that matter genetic resources) may be sought under the current intellectual property system in HKC including under our regimes for trade marks, trade secrets, patents or plant 
varieties as appropriate. For example, plant breeders' rights are protected in HKC under the Plant 
Varieties Protection Ordinance (Cap 490). An invention derived from or developed using genetic resources may be patentable and protected under the Patents Ordinance (Cap 514) provided that 
such invention satisfies the relevant statutory requirements.
2 
 Furthermore, distinctive signs associated, for example, with traditional knowledge may be 
registered as trade marks. Traditional knowledge, such as formulae or methods, if being kept in 
confidence in a commercial setting, may also be protected as trade secrets by the common law of 
confidence. An obligation of confidence will arise whenever the information is communicated to or 
acquired by a person who knows or ought as a re asonable person to know that the other person 
wishes to keep that information confidential. An industry or trade custom or practice may also 
impose an obligation of confidence.  
 
4.1.6 Cultural and creative industries 
 El párrafo 4.32 del informe del Gobierno señala que... "The Government supports the development 
of art and culture in HKC. In 2014-15, we spend around HK$3.5 billion to nurture local arts 
groups, artistic talents and arts administrators, encourage students to participate in art and 
cultural activities, promote public art and enrich artistic programmes, etc."  
El párrafo 4.33 del informe del Gobierno indica qu e... "The West Kowloon Cultural District (WKCD) 
project is a strategic investment of the HKC Government to meet the long-term infrastructural and development needs of the arts and culture in HK C. Our vision is to develop a 40-hectare prime 
waterfront site facing the Victoria Harbour into an integrated arts and cultural district with world-
class facilities. The WKCD will serve as a platform for international cultural exchange and performances. From 2015-16, a range of arts and cultural facilities in the WKCD will come on stream in stages." 
 
El párrafo 4.34 del informe de la Secretaría seña la que... "To spearhead the development of HKC's 
creative industries, the Government also set up in 2009 a dedicated office, "Create Hong Kong" 
(CreateHK) to provide one-stop services to th e trade. We run two funding schemes, the Film 
Development Fund (FDF) and the CreateSmart Initiative (CSI) to support the industries. The FDF, with a commitment of HK$320 million, provides cofinancing support to small-to-medium budget 
                                               
2 As covered by TRIPS Art. 27(3)(b), a plant or animal variety or an es sentially biological process for the 
production of plants or animals, other than a microbio logical process or the products of such a process, is 
excluded from being patentable under the Patents Ordinance. WT/TPR/M/306/Add.1 
 
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  film productions to help nurture film talents. It also funds projects and activities which promote 
Hong Kong films in the Mainland and overseas, provides training in various aspects of film 
production and distribution, and enhances the inte rest and appreciation of HKC films by the local 
audience. The CSI, with a commitm ent of HK$600 million, provides financial support to initiatives 
that are conducive to the development and promotio n of the non-film creative sectors. Since the 
establishment of CreateHK, the FDF has funded 17  film production projects and 79 film-related 
projects while the CSI has funded 206 projects." 
 
El párrafo 4.35 del informe del Gobierno señala qu e... "In view of the significant growth potential 
of the design sector in HKC, the Government has collaborated with the Hong Kong Design Centre (HKDC) to promote Hong Kong, China's design excellence and wider use of design and design 
thinking in the business and public sectors. The HKDC also seeks to educate the professions and 
the community to be resourceful champions for sustainable development through design and innovation. The operation of the HKDC, the organization of its two flagship events, namely the 
Business of Design Week (BODW) and the HKDC Awards which help raise public/business 
awareness of the value of design and celebrate desi gn excellence, as well as its Design Incubation 
Programme (DIP) which nurtures design startups, are mainly supported by Government funding." 
 
2. Among the efforts made by Hong Kong, China authorities for boosting creative industry's 
development, is there some programme, in the same line of those mentioned in the preceding paragraphs, aimed at promoting awareness and an  adequate use of the intellectual property 
system within the aforesaid sector? 
 Answer 
Create Hong Kong is the HKC Government agency which administers funding schemes to support worthwhile projects that are conducive to the deve lopment of creative industries. It also provides 
funding support to the Hong Kong Design Centre, which is the Government's strategic partner in 
providing educational and incubation programmes to promote the design industry. Through these 
projects and programmes, such as the "Business of  Design Week", "Knowledge of Design Week", 
"Institute of Design Knowledge" and the "Design Incubation Programme" etc., sharing of knowledge relating to design, innovation, brands and enterprising creativity will embrace and 
encourage the creation, protection and realisation of the value of intellectual property generated 
from creativity and innovative ideas. Most of these activities undertaken by the Hong Kong Design Centre are funded by the HKC Government.  
 
The Film Development Fund has also provided funding support for the Hong Kong Motion Picture Industry Association to re-establish the Online F ilm Copyright Database in 2009. The database 
enables the film industry and law enforcement agencies to gain access to the information 
concerning the copyrights of HKC-produced film s and verify the authenticity of the copyright 
certificates in a timely manner.   
4.1.10 Wine trading and distribution 
 El párrafo 4.41 del informe del Gobierno indica que... "Since the Government abolished all wine 
duties in 2008, Hong Kong, China has become a regi onal wine trading and distribution hub and the 
world's largest wine auction centre. We have imported more than HK$43.6 billion worth of wine and total wine auction sales in HKC have fetched over HK$5.8 billion since 2008. HKC's position is 
also reflected in the hosting of major international wine fairs regularly. 4.42. To help maintain wine 
quality and promote authenticity, the Hong Kong Quality Assurance Agency (HKQAA) has implemented a scheme since 2009 that accredits wine storage, retail and transport operators with good management systems, which is the first of its kind in the world. Since 2013, HKQAA has 
implemented another scheme that recognizes supply chain players who trade wines with 
identifiable sources. These initiatives reinforced the development of wine businesses in HKC."  
3. Since it's such a relevant sector for Hong Kong, China's commerce, do wines receive some 
protection in terms of intellectual property?  WT/TPR/M/306/Add.1 
 
- 15 - 
 
 
  Answer 
Wine traders may seek protection of their wines under the intellectual property system. There are 
different types of intellectual property and trade mark appears to be the most relevant type of 
intellectual property in this context.  
 
In Hong Kong, China (HKC) a registered trade mark is a property right obtained by the registration of the trade mark under the Trade Marks Ordinance (Cap. 559) (TMO). As an owner of a registered 
trade mark in Hong Kong, he or she has the exclusive right to use the trade mark in relation to the 
goods or services for which the mark is register ed throughout the territory of HKC. If another 
person uses a mark identical or similar to the registered trade mark in the course of trade or business in HKC in relation to identical or similar goods or services without consent from the 
owner, and such a use is likely to cause confusion to the public, that person may be liable for 
infringement. Where a registered trade mark qualifies as a well-known trade mark, protection may be available against unauthorized use of an identical or similar mark in relation to goods or 
services not covered by the registration in cases where harm is caused to the distinctive character 
or repute of the registered mark as a result of use without due cause. Its owner may take legal action against the infringer.  
 
For wines with designated geographical origin, where appropriate, the protection may be strengthened by registering the geographical origin as a collective or certification trade mark. For details of geographical indication protection, please refer to our answers to questions 4-5 and 
21-22. 
 Criminal sanctions against commercial goods with forged trademarks or false trade descriptions 
are also provided for under the law. The Customs and Excise Department (C&ED) has been taking 
robust enforcement actions in this regard. In the area of wine, the C&ED established the Customs-Wine Industry Alliance in 2008 to enhance communication and liaison with the trade and a 
designated channel with the Mainland China Customs in 2014 to exchange counterfeit wine 
intelligence. None of the complaints received to date was found substantiated.  
 4.3.1 Legislation 
 
El párrafo 4.48 del informe del Gobierno señala que… "HKC tiene una legislación integral para la protección de patentes, marcas, derechos de autor, diseños registrados, los esquemas de trazado 
(topografías) de circuitos integrados y varied ades vegetales. Nuestras leyes de propiedad 
intelectual cumplen plenamente con los requisitos del Acuerdo de la OMC sobre los Aspectos de los Derechos de Propiedad Intelectual relacionados con el Comercio." 
 
4. Concerning Geographical Indications, does Ho ng Kong, China's legal framework comply with 
the provisions set forth in the TRIPS (ADPIC, due to its Spanish initials) with this regard?  
Answer 
In HKC, geographical indications may be registered as collective or certification marks under the 
Trade Marks Ordinance (Cap. 559), and a trade mark shall not be registered if it is likely to deceive 
the public. A registered trade mark may be revoked on the ground that the use of the mark by the 
owner is liable to mislead the public, particularly as to the nature, quality or geographical origin of the goods or services. In particular, the registration of a collective or certification mark may also 
be revoked on the ground that the owner has faile d to observe the regulations governing its use, 
o r  b e  d e c l a r e d  i n v a l i d  o n  t h e  g r o u n d  t h a t  t h e mark was registered in breach of the said 
regulations. Further, the use of a false geograph ical indication applied to goods in a fashion 
calculated to mislead consumers may be a criminal offence under the Trade Descriptions 
Ordinance (Cap. 362). It is also possible to protect a geographical indication through the common 
law action of passing off in appropriate circumstances.   
The aforesaid legal protections conferred to geographical indications in HKC are in compliance with 
the TRIPS agreement which requires that members shall provide legal means to prevent the use of 
any geographical indication which misleads the public as to the geographical origin of the goods, 
and shall refuse or invalidate the registration of a trademark which contains a geographical 
indication if its use misleads the public as to the true place of origin of the goods (Article 22).   WT/TPR/M/306/Add.1 
 
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  5. Is it required to demonstrate geographical characteristics in order to provide protection for a 
Geographical Indication? 
 Answer 
Geographical indications (GIs) may be registered as collective or certification trademarks in HKC.   For a certification mark, the applicant must file a copy of the regulations governing use of the 
mark in which it must specify the persons authorized to use the mark, the characteristics to be 
certified, how the certifying body is to test th ose characteristics and to supervise the use of the 
mark, the fees (if any) to be paid in connection with the use, and the procedures for resolving disputes. The regulations must be accompanied by evidence in the form of a statutory declaration 
or affidavit of the applicant's competence to certify the goods or services for which the certification 
mark is to be registered. In other words, for a geographical indication to be registered as a 
certification mark, the geographical characteristics to be certified should be included in the 
regulations governing use of the mark.  
 For a collective mark, the applicant must file a copy of the regulations governing use of the mark 
in which it must specify the persons authorized to use the mark, the conditions of membership of 
the association and, the conditions of use of the mark, including any sanctions against misuse. Although there is no express requirement of including the relevant geographical characteristics in the regulations governing use of the collective mark, we expect usual inclusion of such a 
characteristics as part of the conditions of use of a mark which is a geographical indication or of 
the conditions of membership of the relevant association.   
El párrafo 4.52 del informe del Gobierno indica qu e... "To meet the challenges posed by advances 
in technology, we introduced the Copyright (Amendment) Bill 2014 into the legislature in June 2014 to update HKC's copyright regime. The key proposals of the Bill include: 
 
i. introducing a technology-neutral exclusive right for copyright owners to communicate their works through any mode of electronic transmission"  
6. What is the scope of this exclusive right?  
 Answer 
The scope of the proposed exclusive right of communication to the public in the Copyright 
(Amendment) Bill 2014 refers to all forms of electronic communication of a copyright work to the public, including the broadcasting of the work; the inclusion of the work in a cable programme 
service; and the making available of the work to the public (which means making the work 
a v a i l a b l e ,  b y  w i r e  o r  w i r e l e s s  m e a n s ,  i n  s u c h  a  w a y  t h a t  m e m b e r s  o f  t h e  p u b l i c  i n  H K C  o r  elsewhere may access the work from a place and at a time individually chosen by them, such as 
through the Internet).  
 
4.3.3 Public education  
El párrafo 4.57 del informe del Gobierno señala que... "In 2006, the C&ED, the IPD, the IPR 
industry and eleven local uniformed youth grou ps worked together and launched the "Youth 
Ambassador Against Internet Piracy" Scheme. At present, the number of participating uniformed 
youth groups has increased to thirteen. By encour aging local young people to report online piracy, 
the Scheme helps heighten awareness of the im portance of IPR protection and secure their 
commitment to serving the community. Various educational activities including IPR workshops, visits to production companies and competitions are organized for the 200,000 members of the 
Scheme." 
 7. Are there any statistics showing the results of these activities? What impact have they 
produced?  
 Answer 
The "Youth Ambassador Against Internet Piracy" Scheme (YAS) enables local youngsters to have direct participation in fighting internet piracy an d allows them to cultivate the sense of respecting 
others' IPRs in their young age. Through the part icipation in various IPR workshops, competitions WT/TPR/M/306/Add.1 
 
- 17 - 
 
 
  and visits to IPR industries, YAS members gain a deeper understanding of the importance of IPR 
protection and help spread the positive message in society.  
 Documento WT/TPR/S/306 
 2 TRADE AND INVESTMENT REGIME 2.1 General Constitutional and Legal Framework 
 
El párrafo 2.5 del informe de la Secretaría indi ca que… "A free-trade agreement between HKC and 
its trading partners need not be subject to rati fication by the legislature before the agreement 
enters into force. However, when legislative mean s are required in order to implement provisions 
in the free-trade agreement (e.g. introduction of  new legislation, or amendment of existing 
legislation), the usual legislative procedures will be followed."  
8. Has Hong Kong, China performed the internal ratification process for any of the free-trade 
agreements that have already been signed?  
Answer 
Free trade agreements (FTAs) signed by HKC an d the Mainland of China, New Zealand, the 
European Free Trade Association and Chile re spectively in 2003, 2010, 2011 and 2012 have 
specific set of preferential rules of origin. To fac ilitate the implementation of the preferential origin 
rules under these FTAs and enable traders to appl y these preferential rules of origin, amendments 
were made to the Trade Descriptions Ordinance,  which regulates trade descriptions of goods 
including the place of origin.  
 
9. What is the technical and legal criteria used by Hong Kong, China in order to decide whether 
a trade agreement, which has been negotiated an d signed, shall be ratified by the Legislative 
Council or not?  
 Answer 
Similar to other international agreements concluded by HKC, there is no ratification procedure by 
the Legislative Council for trade agreements. In deciding whether any legislative amendment or 
new legislation is required to implement a trade agreement, it would be necessary to consider whether the current legal and administrative framework is sufficient to implement the trade 
agreement. If it is found that the current framewor k is insufficient, the usual legislative procedures 
will follow for introducing the necessary legislative changes to implement the trade agreement.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Overview  El párrafo 3.4 del informe de la Secretaría señala  que... "HKC does not impose export taxes. In 
general, export prohibitions and licensing apply to the same goods as those subject to import 
licences, and are applied mainly to protect the environment, public health, and safety; comply with international obligations; and enforce intellectual property rights (IPRs). Licensing and notification 
requirements for textiles trade with "non-sensitive markets" and for textiles transhipments were 
lifted in 2011. Since March 2013, powdered formula for infants and young children is subject to export licencing in order to ensure local supply of  the product. Excise duties may be refunded, if 
the goods on which they were paid are exported. HKC, as a free port, does not maintain any other 
special economic or free zones schemes. The Government supports exporters mainly through export credit insurance and funding for export promotion activities." 
 
3.2 Measures Directly Affecting Imports 
3.2.6.2 Import licensing  
El párrafo 3.46 del informe de la Secretaría indica  que... "Textile imports from Mainland China are 
subject to an import licence per consignment ente ring HKC. Licences are issued by the Director-
General of Trade and Industry, and serve as a surv eillance system to back up the export control 
system. Importers registered under the Textiles Tr ader Registration Scheme (TTRS) are exempt 
from the licensing requirements, but are required to  lodge import notifications. In 2013, almost all 
textiles imports from Mainland China were under the TTRS. The authorities note that the licensing and notification requirements will be removed after the passage of the relevant legislation WT/TPR/M/306/Add.1 
 
- 18 - 
 
 
  amendment, which they expect will be completed before end 2014. The TTRS will remain in 
operation for academic and statistical purposes." 
 10. According to the preceding paragraphs, how can those countries which have imposed 
commerce defence measures to textile products from Mainland China be sure that some of these 
textile products from Mainland China, once in Hong Kong, China, will not be re-exported as originating in Hong Kong, China, in order to evade the measures imposed in other markets?   
 
Answer 
HKC's textiles control system is a law-based system. It is built upon an import/export licensing system and an origin certification system. Enforcement is taken to forestall origin abuses and any 
textiles malpractices where appropriate.  
 Notwithstanding the cessation of textiles import and export licensing requirement from 
21 November 2014, the origin certification system will continue to operate. Under the system, a 
Certificate of Hong Kong Origin will only be i ssued to cover goods originated from HKC and can 
fulfill HKC's rules of origin. Officers of Customs and Excise Department carry out consignment 
checks and factory inspections, as well as conduct investigations as necessary to prevent abuses of 
the certification system. Breach of any of the provisio ns of the origin certificate system or failure to 
comply with other requirements may result in pr osecution under the Hong Kong laws. In addition 
to legal actions, administrative actions may be taken against the parties concerned.  
 
3.3 Measures Directly Affecting Exports 3.3.3 Export prohibitions, restrictions, and licensing 
 
El párrafo 3.81 del informe de la Secretaría seña la que... "The Textiles Control System has been 
further relaxed since 20 May 2011. Textiles imports and exports involving "non-sensitive markets" 
as well as textiles transhipments are no longer subject to textiles licence or notification. HKC 
categorizes markets for textiles and clothing products as "sensitive" and "non-sensitive". Sensitive markets are Mainland China for both imports and exports, and the United States for exports.51 All other markets are non-sensitive. Textiles imports/exports for sensitive markets must be covered 
by either consignment-specific import/export licence s, or textiles notifications by traders registered 
under the Textiles Trader Registration Scheme (TTRS) administered by the TID. The authorities indicate that the licensing and notification re quirements will be removed by a legislation 
amendment, which is expected to be passed before the end of 2014." 
 11. Which was the criteria used by Hong Kong, China when classifying the clothing and textile 
products export markets in "sensitive" and "non-sensitive" markets? 
 Answer 
Markets or places which are more prone to textiles abuses in terms of origin claims are classified 
as "sensitive markets". All other markets/countries  are classified as "non-sensitive" markets.  
 12. Which are the benefits obtained by Mainland China and the United States from the licensing 
and notification requirements' removal in clothing and textile products?  
 Answer 
The liberalization of the textile control system will remove administrative burden and compliance costs arising from the licensing and notification requirements for textiles imports and exports. Textiles trade will essentially be free of control. It is a trade facilitation measure and will have a 
positive business impact on the traders concerned.  
 
13. Can this paragraph be understood as that clothing and textile products export markets' 
classification in "sensitive" and "non-s ensitive" markets will be "removed"?  
 
Answer 
The classification of "sensitive"/"non-sensitive" market will no longer apply after the removal of the 
licensing and notification requirements for all textiles imports and exports.  WT/TPR/M/306/Add.1 
 
- 19 - 
 
 
  14. Which are, for Colombia, the benefits comi ng from Hong Kong, China removing the 
classification in "sensitive" and "non-sensitive" of clothing and textile products export markets, 
taking into consideration the fact that Colombia has applied certain commerce defence measures for products of the aforementioned sectors, originating in Mainland China?  
 
Answer 
The removal of classification between "sensitive" and "non-sensitive markets" will not affect the 
textiles trade between HKC and Columbia. Columbia has not been classified as a sensitive market 
and the textiles trade between the two places is not subject to any licensing or notification requirements.  
 
3.2.2 Rules of origin 
 El párrafo 3.23 del informe de la Secretaría seña la que... "HKC maintains preferential rules of 
origin under its free-trade arrangements with Mainland China, the EFTA member states, and New 
Zealand. In the case of exports, HKC implements a certification of origin system (section 3.3.1); for re-exports, the origin initially conferred by the place where goods originated is maintained." 
 
15. May Hong Kong, China's government please explain what are the mechanisms and controls 
currently implemented in order to prevent the re-exporting of products manufactured within Mainland China, but which may have documentation of  origin in Hong Kong, China, in general, and 
particularly for those products of companies whose capitals are from Hong Kong, China and whose 
production is performed in Mainland China?  
 
Answer 
The HKC Government accepts international responsibility for the integrity of the HKC's origin 
certification system, which is backed up by the Export (Certificates of Origin) Regulations (Cap. 
60H) of the Import and Export Ordinance (Cap. 60), and the Protection of Non-Government 
Certificates of Origin Ordinance (Cap. 324). Under the HKC's origin certification system, a Certificate of Hong Kong Origin will only be i ssued to cover goods originated from HKC and can 
fulfill HKC's rules of origin. Officers of the Customs and Excise Department carry out consignment 
checks and factory inspections, as well as conduct investigations as necessary to prevent abuses of 
the certification system. Breach of any of the provisio ns of the origin certificate system or failure to 
comply with other requirements may result in prosecution under the above-mentioned Ordinances. 
In addition to legal actions, administrative acti ons may be taken against the parties concerned.  
 3.4 Measures Affecting Production and Trade 
3.4.5 Intellectual property rights 
3.4.5.1 Legislation  En la página 58; Table 3.12 Framework prot ecting some intellectual property rights, 
2014 
 Eligibility of protection Eligibility of protection Length of protection  
 
Patents  
Standard patent Inventions that are new, involve an inventive step and susceptible of industrial 
application. Grant of a standard patent is base d on reregistration of the corresponding patent 
already granted by the State Intellectual Property Office of the People's Republic of China; the European Patent Office (designating the UK); or the United Kingdom Patent Office 
 
16. What is the concept referred to as "re-registration"? What is the scope of that term? Does 
this figure ratify the substantive examination made by the first office? 
 
Answer 
Under the existing standard patent system of HKC, a standard patent is granted in HKC on the 
basis of a patent granted by one of the three designated patent offices, namely the State 
Intellectual Property Office (SIPO) of Mainland Ch ina, the UK Intellectual Property Office (UKIPO) 
and the European Patent Office (EPO) for patents designating the United Kingdom. This process of acquiring a standard patent in HKC is refe rred to as a "re-registration system".  WT/TPR/M/306/Add.1 
 
- 20 - 
 
 
  Under this "re-registration" system, an application for a standard patent is filed in two stages, 
namely (i) a request to record (filed within 6 months after the date of publication of the 
corresponding patent application in a designated patent office), and (ii) a request for registration and grant (filed within 6 months after the date of  grant of the patent by the designated patent 
office or publication of the request to record in HKC, whichever is the later.) Under such 
application procedures, a standard patent application is subject to formality examination of the documents in support of the application withou t substantive examination of the invention in 
question. In other words, whether the invention is novel, involves an inventive step and is 
susceptible of industrial application would not be assessed and determined by the Patents Registry in HKC.  
Short-term patent 
 Inventions that are new, involve an inventive step and susceptible of industrial application - 8 
years from the filing date. 
 17. What are the requirements for granting this patent?  
 
Answer 
An application for a short-term patent can be made by filing a request for grant directly with the Patents Registry in HKC without first having to appl y for a patent in a designated patent office. The 
application has to be supported by, amongst others, a search report containing the findings of a 
search undertaken by any of the International Sear ching Authorities appointed under Article 16 of 
the Patent Cooperation Treaty or any designated patent office. In a manner similar to the 
examination approach for standard patent applications, a short-term patent is granted on the basis 
of formality examination of the documents in su pport of the application. In other words, the 
Patents Registry of HKC does not conduct substa ntive examination of the patentability of the 
invention in question prior to the grant of a short-term patent.  
 18. What is the purpose of the "Short-term patent"?  
 
Answer 
The short-term patent system in HKC is intended  to supplement the standard patent system by 
offering a fast and inexpensive means of protecting inventions with a shorter commercial life.  
 
Copyright  
Unregistered industrial designs - Protected under the Copyright Ordinance, for articles produced 
from the original design drawing. Protection is  automatic - 15 years from first marketing of the 
article  
19. If protection is given by copyright, why is  there an exclusive term for this right?  
 Answer 
Under the Copyright Ordinance of HKC, an original ar tistic work is entitled to copyright protection 
for the life of the creator plus 50 years without any need for registration if it has not been exploited through an industrial process. However, if an artistic work has been exploited, by or with 
the license of the copyright owner by making an industrial process articles and marketing such 
articles in HKC or elsewhere, it can be protected as a registered design for a total period of 25 years from the end of the calendar year in which such articles incorporating a corresponding registered design are first marketed. If an artistic work has been applied in an industrial article but 
has not been registered as a design, the copyrigh t in the artistic work will expire after 15 years 
from the date of the first marketing of the article.  On expiry of the relevant term, the work may be 
copied by making articles of any description, or doing anything for the purpose of making articles 
of any description, without infringing copyright in the work. 
 The difference in the terms of protection is to encourage registration of artistic works as designs to 
facilitate industrial exploitation of artistic works.  
 WT/TPR/M/306/Add.1 
 
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  Copyrights in original literary (including computer programs), dramatic, musical, and artistic 
works; sound recordings, films, broadcasts, cable programmes; typographical arrangement of 
published editions of literary, dramatic or musical works; performers and persons who have exclusive recording contracts with performers No formalities are required for copyright protection 
for a work in HKC. Works of authors from anyw here in the world, or works first published 
anywhere in the world (including those made available to the public on the internet), also qualify Protection usually extends for 50 years after the death of the creator or from the end of the year 
in which the work was made Exceptions: 
 (1) Protection for the typographical arrangement of  published editions of literary, dramatic or 
musical works is for 25 years from the end of th e year in which the edition was first published 
 
(2) Government copyright is protected for 125 years from the end of the year in which the work  
20. What is the scope of exception number 2, "Government copyright is protected for 125 years 
from the end of the year in which the work"? Why is the protection term so long?  
Answer 
Where a work (i.e. original literary, dramatic, musical or artistic works, sound recordings, films, 
broadcasts or cable programs; and the typographic arrangement of published editions) is made by an officer of the HKC Government in the course of his duties, the HKC Government is the first 
owner of any copyright in the work. Government co pyright in a work continues to subsist (a) until 
the end of the period of 125 years from the end of  the calendar year in which the work was made; 
or (b) if the work is published commercially before  the end of the period of 75 years from the end 
of the calendar year in which it was made, until th e end of the period of 50 years from the end of 
the calendar year in which it was first so pub lished. For copyright works other than Government 
copyright works, the term of protection is lif e of the author plus 50 years unless otherwise 
specified. The 125 years' protection of Government  copyright is not necessarily longer than non-
government copyright work (which depend s on the life span of the author).  
 The term of protection of Government copyright was considered by the Law Reform Commission of 
HKC in 1993. It concluded that a maximum length of protection of 125 years for unpublished 
works generated by employees in the service of the Government does not seem excessive in the 
context of the normal rule of the author's life plus  50 years. To reduce the period of protection of 
Government copyright works may contravene th e Berne Convention, and may create problems 
regarding joint authorship between a Government author and a non-Government author. It should 
be noted that the other jurisdiction(s) also conf ers 125 years' protection to Government copyright 
works.  
 Geographical indications (GIs)  
Same as for registered trade marks but only registrable as collective or certification trade marks. 
The use of a false geographical indication applied to goods in a fashion calculated to mislead consumers may be a criminal offence under the Trade Descriptions Ordinance. 
 
21. If the Geographical Indications shall be registered as collective or certification trade marks, 
does that mean that it is not required in Hong Kong, China to demonstrate that the product has a 
good reputation, or any other feature derive d mainly from its geographical origin?  
 Answer 
For a geographical indication to be registered as a certification or collective mark, the applicant 
must file a copy of the regulations governing use of the mark. We expect that the relevant 
reputation or feature derived from its geographical origin will usually be included in the regulations as the characteristics to be certified in the case of certification mark, or as part of the conditions of 
use of the mark in the case of collective mark or the conditions of membership of the relevant 
association. Please see our answer to question 5 above for more details.   
22. Is there any difference between a collective trade mark, a certification trade mark, and a 
geographical indication, as understood within Hong Kong, China's legal framework?   
 WT/TPR/M/306/Add.1 
 
- 22 - 
 
 
  Answer 
Geographical indications (GIs) may be registered as collective or certification trademarks in HKC. A 
collective mark distinguishes goods or services of  members of the association which is the owner 
of the collective mark from those of other undertaki ngs. A certification mark distinguishes goods or 
services which are certified from those which are not. For more details, please see our answer to 
question 5 above.   
El párrafo 3.140 del informe de la Secretaría indica que... "There were no fundamental changes to 
HKC's legal framework protecting intellectual proper ty during the review period (Table A3.6). The 
latest HKC notifications to the WTO regarding-IP legislation mainly refer to amendments to update 
the membership coverage of international conventi ons. However, there have been some important 
initiatives to amend the legislation on copyrights and patents, as well as the introduction of new 
practices, such as the IPRs trading platform (section 3.4.5.1.4)." 
 
23. What would be the purpose of the IP trading platform? Which would be its contributions?   
 Answer 
Launched by the Hong Kong Trade Development Council (HKTDC) in December 2013, Asia IP 
Exchange (AsiaIPEX) is a free online platform and database aiming to facilitate international IP trading and connection to global IP players. At present, it has formed alliances with 23 strategic partners local and overseas and covers over 25,000 entries of tradable intellectual property rights 
(including copyright, patents, registered design and trademarks) sourced from around the globe in 
the biotech, nanotech, medical, electronics, textile , film, publishing and other sectors. For details 
please refer to http ://www.asiaipex.com.  
 
The number of registered AsiaIPEX members ex ceeded 8,000 by Oct 2014, including IP owners, 
users or service providers. We observe the growin g importance of Asia in the global IP-related 
business, in particular Mainland China as a major player. 
  Other than the portal, the HKTDC holds the annual Business of IP Asia Forum, aiming to connect IP owners, buyers and sellers as well as financial, le gal and technology professionals from around the 
world. This year's Forum, to be held in Dece mber, will bring together around 2,000 participants. 
Since 2011, the Business of IP Zone (BIP Zone) has also been set up in HKTDC local trade fairs for IP intermediaries to provide free consultation services to the fair exhibitors and visitors. This 
arrangement benefited 11 trade fairs in 2014 receiving positive responses. To promote the 
AsiaIPEX among global IP elites, we have also staged promotions at local and overseas renowned IP events including AUTM Annual Meeting, IPBC Global, LES Annual and Mid-Year Meeting, etc.  
 
3.4.5.1.1 Copyright law  El párrafo 3.142 del informe de la Secretaría indica  que… "After extensive public consultations to 
amend the copyright law to enhance protection  in the digital environment, the Copyright 
(Amendment) Bill 2011 was submitted to the Legislative Council (LegCo) in June 2011. Among the proposed amendments were the recognition of co pyright owners' exclusive right to communicate 
their works through any mode of electronic transmission and the introduction of criminal liability 
for the electronic communication of copyright wo rks; asafe harbour for online service providers 
(OSPs), underpinned by a Code of Practices for OSPs; and additional factors to assist the courts in 
considering the award of damages in civil proc eedings pertaining to online infringement.98 
However, due to a very tight legislative agenda, it  was not possible for the LegCo to have a second 
reading of the Bill before the expiration of its term. A new Bill introduced in June 2014, includes the aforementioned amendments as well as new pr ovisions regarding the treatment of parodies on 
the internet." 
 24. Which are the new provisions included in the Bill, as regards the treatment given to parodies 
on the Internet?  
 WT/TPR/M/306/Add.1 
 
- 23 - 
 
 
  Answer 
The Bill introduces a new fair dealing copyright exception for parody, satire, caricature and 
pastiche which provides that:-  
"(1) Fair dealing with a work for the purpose of parody, satire, caricature or pastiche does not 
infringe any copyright in the work.  
(2) In determining whether any dealing with a work is fair dealing under subsection (1), the 
court must take into account all the circumstances of the case and, in particular—  (a) the purpose and nature of the dealing, incl uding whether the dealing is for a non-profit-
making purpose and whether the dealing is of a commercial nature; 
(b) the nature of the work; (c) the amount and substantiality of the portion dealt with in relation to the work as a whole; 
and 
(d) the effect of the dealing on the potential market for or value of the work."  
The Bill also expands the existing fair dealing provisions for "criticism, review and news reporting" 
by including fair dealings for "quotation" and "commenting on current events".   3.4.5.1.2 Patent law 
 
El párrafo 3.144 del informe de la Secretaría señala que... "Two types of patents are granted in HKC, standard patents and short-term patents. Standard patents are granted based on the re-
registration of corresponding patents already granted by one of the three "designated patent 
offices", i.e. the patent offices of the People's  Republic of China, the United Kingdom or the 
European Patent Office (designating the UK). An application for a standard patent may also be 
based on an international application under the Patent Cooperation Treaty (PCT) that has been 
published and entered its national phase in one of the designated patent offices. Standard patents 
are granted subject to formality examination; no substantive examination is carried out." 
 
25. Is it required, in order to grant a standard pate nt, that there is a previous registration in one 
of the three offices mentioned in the precedin g paragraph? Is it ratified the substantive 
examination?   
 
Answer 
Please refer to our written reply to question 16 above.  
 
El párrafo 3.145 del informe de la Secretaría indica que... "Short-term patents are granted to protect products or processes with a short commercial life. An application for a short-term patent may be filed directly with HKC's Patents Registry based on a search report from an international 
searching authority or one of the three designated patent offices (i.e. no prior application 
elsewhere is needed). It may also be based on an international patent application for a utility model, designating Mainland China under the PCT that has entered its national phase in Mainland 
China. There is also no substantive examination of an application for a short-term patent" 
 26. Is this figure considered equivalent to a utility model? Is this type of patent granted basing 
only in the search report? Why doesn't it require any substantive examination?  
 Answer 
Short-term patents in HKC are akin to utility models or petty patents in other jurisdictions to the 
extent that they are generally granted without substantive examination and that they generally 
have a shorter term of protection. However, it should be noted that the patentability requirements for both standard patents and short-term patents in HKC are the same. 
 
A search report issued by any of the International Searching Authorities appointed under Article 16 of the Patent Cooperation Treaty or any designated  patent office is one of the essential documents 
in support of a short-term patent application. Short-term patents are granted after the Hong Kong 
Patents Registry conducts formality examination of the applications. Please refer to our written replies to question 17 above.   WT/TPR/M/306/Add.1 
 
- 24 - 
 
 
  To recap our written reply to question 18 above, th e short-term patent system in HKC is intended 
to supplement the standard patent system by offering a fast and inexpensive means of protecting 
inventions with a shorter commercial life. In fact, there are views that substantive examination of short-term patents may impair the user-friendliness, increase costs and lead to longer processing 
time. Also, imposing a mandatory requirement of substantive examination of a short-term patent 
before grant would defeat the underlying purpose se rved by the short-term patent system, namely 
offering a fast and inexpensive means of protecting inventions with a limited commercial life span 
in the market.  
 Having conducted a comprehensive review of the local patent system, the HKC Government announced its policy decision in February 2013 on, amongst others, refining the short-term patent 
system, notably by making substantive examination a pre-requisite to commencement of 
infringement proceedings. This should strike a reasonable balance between the legitimate interests of short-term patentees and defendants to infringe ment actions. Subject to the legislative progress 
and other implementation tasks, the Government tentatively aims at launching the refined short-
term patent system in 2016/17 at the earliest.  
 
3.4.5.1.4 IP trading 
 El párrafo 3.154 del informe de la Secretar... "In March 2013, the Government established a Working Group on IP trading, led by the Secretary for Commerce and Economic Development, to 
advise on strategies to enhance the development of  HKC as an IP trading hub, and on policy and 
support measures to facilitate IP trading. In  November 2013, the Working Group endorsed a 
strategic framework that covers four strategic areas: enhancing the IP protection regime; 
supporting IP creation and exploitation; fostering IP intermediary services and manpower capacity; 
and pursuing promotion, education, and external  collaboration efforts. The Working Group will 
explore specific policies and support measures unde r each strategic area. In addition, an online IP 
trading portal was launched by the Hong Kong Trade Development Council in December 2013." 
 27. What kind of information does the "online IP trading portal" include?  
 
Answer 
Launched by the Hong Kong Trade Development Council (HKTDC) in December 2013, Asia IP 
Exchange (AsiaIPEX) is a free online platform and database aiming to facilitate international IP 
trading and connection to global IP players. At present, it has formed alliances with 23 strategic 
partners local and overseas and covers over 25,000 entries of tradable intellectual property rights 
(including copyright, patents, registered design and trademarks) sourced from around the globe in 
the biotech, nanotech, medical, electronics, textile , film, publishing and other sectors. For details, 
please refer to: http://www.asiaipex.com .  
 
3.4.5.2 Enforcement 
 
El párrafo 3.155 del informe de la Secretaría seña la que... "The institutional framework for the 
enforcement of IPRs comprises the Intellectual Property Department (IPD) and the Customs and 
Excise Department (C&ED). The IPD is responsi ble for advising the Secretary for Commerce and 
Economic Development on IP policy and legislation;  operating HKC registries for patents, designs, 
trade marks, and copyright licensing bodies; and pr omoting public awareness of the importance of 
IPR protection, mainly through educational programmes and publicity campaigns (e.g. the "No 
Fakes Pledge" campaign). The IPD is also HKC's WTO contact point on IPRs matters." 
 28. Regarding the referred promotion of public awareness about the importance of IPR 
protection, what regular programmes are being carried out? Have these programmes had a 
positive result? Do you possess statistics that make it possible to measure the impact of these programmes? 
 
Answer 
The Intellectual Property Department (IPD) has been  striving to promote the awareness of respect 
for IPRs in the general public and two of the territory-wide campaigns are the "No Fakes Pledge" 
Scheme and "I Pledge" Campaign. The campaigns aim to encourage pride in the selling and buying of genuine goods among HKC retailers, tourists  and local consumers. In 2013, nine trade 
associations with 808 retail merchants, covering 6,426 outlets in HKC, took part in the "No Fakes WT/TPR/M/306/Add.1 
 
- 25 - 
 
 
  Pledge" Scheme. For the "I Pledge" Campaign, it attracted over 10,000 members to join and IPD 
collaborates with the right-holders and youth associations to organise a variety of activities for 
members every year, such as live band shows and design competitions.  
To promote respect for IPRs in the younger generation, in 2013 the IPD's primary and secondary 
school visit programmes covered 75 schools and 17,640 students and the interactive drama programme covered 117 schools and 36,924 students. 
 
To evaluate the effectiveness of its promotion and education efforts targeting at the general public, the IPD has been conducting the "Survey on Public Awareness on IP Rights Protection" and the "Survey on Business Attitudes to Intellectual Prop erty" from time to time since 1999. We make 
reference to these findings in drawing up the relevant publicity strategies and activity plans. 
According to the findings of the surveys conduc ted in November 2012, nearly two-thirds of the 
general public and business establishments interviewed considered the promotional activities held 
by the IPD effective in raising the awareness of general public and HKC businesses on IPR 
protection. The full reports of these su rveys are available to the public at 
http://www.ipd.gov.hk/eng/promotion_edu/survey.htm . We will be conducting a new round of 
surveys in end 2014. 
 As the law enforcement arm of IPRs in HKC, the C&ED has also promoted public awareness of IPRs. For example, the C&ED launched the "Youth Ambassador Against Internet Piracy" Scheme 
(YAS) to encourage local youngsters to have direct participation in fighting internet piracy and 
allow them to cultivate the sense of respecting others' IPRs in their young age. For more details of this scheme, please refer to Q7 above.  
 
El párrafo 3.165 del informe de la Secretaría señala que... "Using an innovative enforcement approach, developing new technologies, sharing intelligence, and maintaining cooperation with 
stakeholders are key aspects in the fight against IPRs infringing activities, in the physical market 
and the rapidly changing digital environment. Legi slative proposals currently being formulated by 
the HKC Government to update and enhance the copyright regime may also facilitate enforcement of IPRs in the digital environment" 
 
29. What are the contents of the new legislative proposals? Will they only comprehend the 
copyright regime? When are these rules expected to become effective?  
 
Answer 
To enhance copyright protection in the digital environment, the HKC Government introduced a 
Copyright (Amendment) Bill 2014 (the Bill) into the Legislative Council in June 2014. The key 
proposals of the Bill include:  i. introducing a technology-neutral exclusive ri ght for copyright owners to communicate their 
 works through any mode of electronic transmission;  
ii. introducing corresponding criminal sanctions against unauthorized communication of  copyright works to the public;  
iii. expanding the scope of copyright exception to  cover the following purposes in appropriate 
 circumstances:   
(a) parody, satire, caricature and pastiche;  
(b) commenting on current events;  (c) quotation;  (d) temporary reproduction of copyrigh t works by Online Service Providers;  
(e) media shifting of sound recordings; and 
(f) giving education instructions;   
iv. establishing a statutory safe harbour for Onlin e Service Providers so that their liabilities for 
 copyright infringement occurring on their serv ice platforms could be limited under prescribed 
 conditions; and 
v. providing additional factors for the court to consider in assessing damages in civil cases in 
 which infringement has been established.  WT/TPR/M/306/Add.1 
 
- 26 - 
 
 
  The above legislative proposals seek to strike a fa ir balance between protection of copyright, free 
flow of information and reasonable use of copyright works.  
 The Bill is currently under the scrutiny of the Bills Committee in the Legislative Council and the 
Government will continue to work with the legislature and stakeholders to strive for the early 
passage of the Bill.  WT/TPR/M/306/Add.1 
 
- 27 - 
 
 
  CANADA 
Report by the Government (WT/TPR/G/306) 
 
Part 4. Sustaining Long Term Growth  and Improving Business Environment; 
4.1 Sharpening Competitiveness; 4.1.9 In tellectual property trading, page 15, 
para. 4.40:  
The report mentions that the Government has set up a Working Group on Intellectual Property 
Trading, which Canada welcomes.   1. Could Hong Kong, China (HKC) clarify whether the Working Group meets on a standing 
basis, or whether it aims at a particular outcome (or set of outcomes) and, if so, what that 
outcome would be, and are the timelines to achieve this outcome?   
Answer 
The Working Group on Intellectual Property Trad ing (the Working Group) was set up in March 
2013 for a term of two years. It is led by the Secretary for Commerce and Economic Development, 
with members drawn from various IP intermediary  service sectors, industries and government 
bodies. The terms of reference are as follows:  (a) To advise on the overall strategies to pr omote the development of Hong Kong, China (HKC) 
 as an intellectual property (IP) trading hub; and 
(b) To identify possible policy and other support  measures to facilitate intellectual property 
 trading in HKC. 
 
Since its establishment, the Working Group has been meeting regularly and engaging stakeholders to exchange views. Taking account of stakehol ders' views and after careful deliberation, the 
Working Group endorsed in end-2013 a strategic framework. It sets out HKC's vision, missions and 
ten focus strategies in four strategic areas, namely enhancing the IP protection regime; supporting IP creation and exploitation; fostering IP inte rmediary services and manpower capacity; and 
pursuing promotion, education and external collaboration efforts. Details can be found at: 
http://gia.info.gov.hk/general/201 311/22/P201311220572_0572_136351.pdf . Based on this 
framework, the Working Group is exploring spec ific policies and other support measures to 
formulate proposals for the Government's consideration.  
 
The report mentions that the Government is, through the Working Group on Intellectual Property Trading "pursuing promotion, education and external collaboration efforts".  
 
2. Could HKC provide examples of external collaboration efforts, particularly in the Pearl River 
Delta, and indicate whether the cooperation arrangement on patents between the HKC's Intellectual Property Department and the State Intellectual Property Office of Mainland China (as 
mentioned in para. 3.149 of WT/TPR/S/306) is part of that strategy?  
 Answer 
The Intellectual Property Department of HKC (IPD) maintains close liaison with its relevant Mainland counterparts at the national level, as well as authorities in the Pan-Pearl River Delta region and Guangdong Province to promote the protection and management of intellectual 
property (IP) rights.  
 Collaboration with the State Intellectual Property Office (SIPO) of Mainland China and Economic 
Services of the Government of the Macao SAR 
 
Since 2000, IPD has co-organized with SIPO and the Economic Services of the Government of Macao, China the "Intellectual Property Symposiu m" annually in order to keep the industries 
abreast of the latest development of IP in the th ree respective regions of Mainland China, Macao, 
China and HKC.   WT/TPR/M/306/Add.1 
 
- 28 - 
 
 
  Collaboration with SIPO 
 
In November 2011, IPD signed a co-operation agreement with SIPO to strengthen co-operation in the IP area. As part of the government's efforts to implement the "original grant" and refined 
short-term patent systems in HKC, IPD and SIPO further signed "the Co-operation Arrangement in 
the Area of Patent in Hong Kong" in December 20 13 under which SIPO agrees to provide technical 
assistance and support to IPD for substantive examination of the patentability of inventions and 
the training of staff for operating and administering the new patent system.  
 Collaboration with Counterparts in the Pan-Pearl River Delta (Pan-PRD) of Mainland China 
 
IPD also joined the IP cooperation agreement concluded between Macao, China and the nine Pan-
PRD provinces of Fujian, Jiangxi, Hunan, Guan gdong, Guangxi, Hainan, Sichuan, Guizhou and 
Yunnan in 2005, to promote comprehensive collaboration on IP protection, and enhance the 
overall strength and competitiveness in the Pan-PRD region. Under the agreement, IPD has been 
co-operating with the provinces/regions to promote creation, protection, administration and application of IP rights so as to strengthen the order of market economy, speed up business and 
technology transfer, foster growth of inter-regional investment and boost the joint economic 
development of the Pan-PRD region. Joint Conf erences and Pan-PRD staff exchange programmes 
have been organised regularly for the provinces/ regions to exchange views and keep abreast of 
the latest development of IP in the different places. 
 
Collaboration with Counterparts in the Guangdong Province of Mainland China 
 
In August 2003, a Guangdong/Hong Kong Expert Gr oup on the Protection of Intellectual Property 
Rights under the Guangdong/Hong Kong Co-operation Joint Conference was set up which aimed at enhancing exchanges and co-operation on various aspects of IP including promotion and 
education, training, enforcement, research stud y and information dissemination. The Expert Group 
meets annually. Under the framework of the Expert  Group, IPD has been co-operating with the 
Guangdong counterparts on promoting the developm ent of IP trading in both places, and IP 
trading has been one of the focuses under the st rategic plan of the Expert Group since 2013. 
 
Since 2007, IPD and the Guangdong Intellectual Property Office (GDIPO) has signed four agreements on Guangdong/Hong Kong Co-operation on Intellectual Property with a view to 
strengthening and actively promoting the co-operation and development in the IP area in 
Guangdong and HKC. Building upon the close co-o peration between IPD and GDIPO in the past 
years, both sides are committed to deepening and promoting co-operation on IP in HKC and 
Guangdong and fostering the development of IP trading in both places.  
 3. Could HKC provide more specifics on the framework put forth by the Working Group for the 
development of IP trading in HKC? For instance: 
 
 In what specific intellectual property areas did the Working Group advise to enhance the IP 
 protection regime? Was there a timeline proposed for these enhancements? 
 What type of intermediary services did the Working Group advise on fostering? In what 
 sense did they recommend fostering manpower capacity?  Did the Working Group advise on pursuing external collaboration efforts with any specific 
 parties (e.g. with Mainland China, other countries and trading partners)?  
 Answer 
Hong Kong, China set up the Working Group in March 2013 to advise on the overall strategy for 
promoting HKC as a premier IP trading hub in the region, and devise specific policies and 
measures in support. In end-2013, the Working Gr oup promulgated a strategic framework. It sets 
out HKC's vision, missions and ten focus strategies in four strategic areas, namely enhancing the 
IP protection regime; supporting IP creation and exploitation; fostering IP intermediary services 
and manpower capacity; and pursuing promotion, education and external collaboration efforts. Details can be found at: 
http://gia.info.gov.hk/general/201 311/22/P201311220572_0572_136351.pdf .  
Based on this framework, the Working Group is exploring specific policies and other support 
measures to formulate proposals for the Government's consideration.  WT/TPR/M/306/Add.1 
 
- 29 - 
 
 
  Protection of Intellectual Prop erty Rights; 4.3.1 Legislatio n, page 16, paragraph 4.49: 
 
It is noted that HKC constantly reviews its "intellectual property laws to ensure that they remain appropriate in present-day circumstances" and th at since its last Trade Policy Review HKC has 
"reviewed the patent and the copyright regime" and rolled out new initiatives. 
 4. Could HKC indicate whether there is a set sched ule for reviewing intellectual property laws 
or if it is done on an ad hoc  basis? 
5. Does HKC anticipate also reviewing other IP laws, such as trade mark laws, trade secret 
laws, etc.? If so, when does HKC plan to do so?  
Answer  
Hong Kong, China is committed to protecting Intellectual Property (IP) rights through legislation, 
law enforcement, public education, and co-operati on with stakeholders. Our IP legal framework is 
fully compatible with our obligations under international treaties such as the World Trade 
Organization (WTO) Agreement on Trade-Related As pects of Intellectual Property Rights (TRIPS). 
We have kept our IP regime under  constant review to ensure that it meets the prevailing needs. 
 
To ensure that our copyright law keeps pace with technological and overseas developments, the HKC Government introduced the Copyright (Amendment) Bill 2014 (the Bill) into the Legislative Council on June 18 2014. A Bills Committee was formed and the Bill is now under the 
Committee's scrutiny. One of the key proposals of th e Bill is the introduction of a new technology-
neutral right for copyright owners to communicate their works to the public through any mode of electronic transmission. A corresponding criminal sanction against unauthorised communication of 
copyright works to the public was also introduced. 
 In the patent area, the Government announced its policy decision in February 2013 on, amongst 
others, the introduction of an "original grant" patent (OGP) system with substantive examination 
conducted by other patent office(s). The proposed introduction of an OGP system bears strategic significance in facilitating the development of HK C into a regional innovation and technology hub, 
as well as a premier IP trading hub. The Govern ment has been intensively undertaking various 
critical tasks for implementing the OGP system, including introducing appropriate amendments to 
the patent legislation. Subject to the progress of the legislative exercise and other implementation 
tasks, we tentatively aim at launching the new patent system in 2016-17 at the earliest. 
 
We will remain vigilant about technological and international developments and update our IP laws as and when necessary. 
 
Part 4. Sustaining Long Term Growth and Improving Business Environment; 4.3 
Protection of Intellectual Pr operty Rights; 4.3.1 Legislat ion, page 16, paragraph 4.50:  
 
6. Could HKC describe some of the key findings from the 2011 comprehensive review and 
public consultations on the patent system mentioned in this paragraph?  
Answer 
To ensure that the patent system of HKC would continue to meet the needs of present-day 
circumstances and that it would facilitate the development of HKC into a regional innovation and 
technology hub, the Government commenced a comp rehensive review of the patent system in 
October 2011 with the launch of a public consultation exercise. The Advisory Committee on Review of the Patent System in Hong Kong (the Advisory Committee) was appointed by the Secretary for Commerce and Economic Development in the same  month to advise him on relevant issues. 
 
Having carefully taken into account the submissions of respondents to the public consultation and all relevant considerations, the Advisory Committee submitted to the Government a report 
containing its strategic recommendations on the future positioning of HKC's patent system in 
December 2012.  
In February 2013, the HKC Government, having endorsed the recommendations made by the 
Advisory Committee, announced the way forward for the development of the patent system in HKC: WT/TPR/M/306/Add.1 
 
- 30 - 
 
 
  i. introducing an OGP system with substantive examination outsourced to other patent 
 office(s);  
ii. retaining the existing re-registration system for grant of standard patents; iii. retaining the short-term patent system subject to suitable refinements; and 
iv. developing a full-fledged regulatory regime for patent agency services in the long run to be 
 achieved in stages, with possible interim measures.   
According to the analysis of the Advisory Committ ee, introducing an OGP system would bear long-
term strategic significance in facilitating the development of HKC into a regional innovation and technology hub. More specifically, it could demonstrate the Government's commitment to 
intellectual property (IP) protection by developing a patent system on a par with those of 
advanced economies. It would also allow HKC to determine its own patentability criteria and 
standards, procedures etc., in a way that would best meet the development needs of HKC. Furthermore, it would help nurture and attract ta lents, stimulate the growth of patent agency 
business and widen career paths for graduates with science and engineering degrees. 
 In recommending that an OGP system should be introduced, the Advisory Committee also 
recommended retaining the re-registration system for grant of standard patents for running in 
parallel with the new OGP system. In making such a recommendation, the Advisory Committee 
took into account the effective operation of the cu rrent re-registration system, the high quality of 
patents granted under the system and the majori ty of the public views in support of such 
retention. 
 Regarding the short-term patent system for inve ntions with a shorter commercial life cycle, the 
Advisory Committee recommended retaining it with suitable refinements, such as requiring 
substantive examination before commencement of infringement proceedings to prevent abuse.  
As for patent agency services, a sector which is  generally regulated under a statutory regime in 
many places with an OGP system, the Advisory Committee recommended that establishing a full-fledged regulatory regime for local patent agency services should be set as the ultimate goal in the long run, and that such a goal should be achieved in stages, with possible transitional measures, 
as a complementary component of the OGP system. 
 For more information about the recommendations of  the Advisory Committee, please refer to the 
Advisory Committee's report at: 
http://www.ipd.gov.hk/eng/intellectual_ property/patents/review_report.pdf . 
 
7. Can HKC provide some insight into the stages and potential interim measures to developing 
its regulatory regime for patent agency services?  Answer 
In paragraph 5.25 of its report, the Advisory Committee recommended the following -  (a) A full-fledged regulatory regime on patent ag ency services (i.e. by combining Options A and 
 B
3 altogether) should be set as the ultimate goal in the long run, which has to be achieved in 
 stages, with possible interim measures; (b) Option A(ii) is preferred to Option A(i) in  introducing the regulatory regime in the first 
 instance, given the retention of the re-registration system in parallel with the new OGP 
 route. The need for Option A(i) may be review ed in the longer term subject to the future 
 development of the patent system in HKC; (c) Interim measures to be developed should have regard to the existing patent agency services 
 being provided on the one hand (e.g. throug h appropriate grandfathering provisions) and 
 the early building and recognition of a regulate d patent agency profession on the other (e.g. 
 through Option B or a list or register of patent agents with their qualifications). 
 
                                               
3 Option A is to regulate the provision of either –all patent-related services (i ncluding services for re-
registration); or only services that involve technical expertise (mainly under the OGP system e.g. drafting patent specification and claims, conducting clearance search, advising on responding to the queries on 
patentability raised by examiners, giving advice on th e validity or infringement of  patents); so that only 
qualified persons or firms may provide such services. Option  B is to limit the use of particular titles such as 
“patent agents” and “patent attorneys” to qualified persons or qualified firms. WT/TPR/M/306/Add.1 
 
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  For more information, please refer to Chap ter 5 of the Advisory Committee's report at: 
http://www.ipd.gov.hk/eng/intellectual_ property/patents/review_report.pdf . 
 
Part 4. Sustaining Long Term Growth and Improving Business Environment; 4.3 
Protection of Intellectual Prop erty Rights; 4.3.1 Legislatio n, page 16, paragraph 4.52: 
 This paragraph indicates that HKC introduced the Copyright (Amendment) Bill 2014 into the 
legislature in June 2014 to update HKC's copyri ght regime and it describes some of the key 
proposals of the Bill.  8. Were there any specific challenges posed by advances in technology that led to the 2014 
Copyright (Amendment) Bill? 
 Answer 
At present, the Copyright Ordinance gives copyright owners certain exclusive rights, including the right to make a copy of a copyright work availabl e to the public on the Internet, to broadcast a 
work or to include a work in a cable programme service. With advances in technology, new modes 
of electronic transmission such as streaming ha ve been emerging. The current scope of statutory 
protection may not be adequate to cope with such  rapid changes, allowing an infringer to evade 
liability and sanctions on technicality. We therefore proposed in the Copyright (Amendment) Bill 2014 to introduce a new exclusive right for copyright owners to communicate their works to the 
public through any mode of electronic transmission. 
 9. Could HKC explain what is encompassed in "commenting on the current events," and how it 
differs from "quotation"? 
 Answer 
To tie in with the proposed introduction of th e communication right under the 2014 Bill, we would 
revise and expand the scope of copyright exception4 under the existing law to seek a broad and 
overall balance between different interests, including copyright protection and reasonable uses of copyright works, by exempting criminal and civ il liabilities for a number of uses including:  
 
i. parody, satire, caricature and pastiche ; ii. commenting on current events;  
iii. quotation;  
iv. giving educational instructions (especially for distance learning) and facilitating daily  operations of libraries, archives and museums;  
v. data caching by online service providers; and 
vi. media shifting for sound recordings.  We accept that in some cases the use of copyright works for "reporting current events" does not 
necessarily rely on parody or like elements, and in some cases there may be strong justifications 
for facilitating freedom of expression in such a co ntext. The existing section 39(2) of the Copyright 
Ordinance provides for the fair dealing exception for "reporting current events" taking care of the 
freedom of expression together with other public  interests. As commenting on current events is 
analogous or akin to "reporting current events', it can and should be given the same treatment under the Ordinance.  
 
The 2014 Bill also proposes a fair dealing exception for the use of a quotation. This would cover common uses of copyright works which are without any alterations or parodic or like elements if it is to facilitate expression of opinions or discu ssions in the online and traditional environment. 
Possible examples may include quotation of various copyright works for the purposes of facilitating 
discussions, providing information or expressing opinions as used on blogs and social media 
websites.  
 
                                               
4 The existing Copyright Ordinance contains over 60 sections specifying a number of permitted acts 
which may be done in relation to copyright works notwit hstanding the subsistence of copyright (such as for the 
purposes of research, private study,  education, criticism, review and reporting current ev ents), and thus 
attracting neither civil nor criminal  liability for unauthorised use.  
 WT/TPR/M/306/Add.1 
 
- 32 - 
 
 
  The exceptions proposed, each serving a particul ar purpose, may encompass overlapping concepts 
and applications. Together they form a reasonable  package of legislative proposals under the 2014 
Bill to allow users, in appropriate circumstances, to use copyright works without seeking consent of 
copyright owners. 
 
10. Could HKC provide more details on the nature and scope of the exception for education 
instructions? 
 
Answer 
The 2014 Bill proposes that educational establishments may communicate to authorised recipients (e.g. their students) a recording or copy of a reco rding of a broadcast or cable program, a copy of 
an artistic work, a passage from a published literary, dramatic or musical work, or an extract from 
a published sound recording or film for the purpose of education on condition that (a) the communication is made for the educational purposes of the establishment; (b) only authorised 
recipients can receive the communication; and (c) the authorised recipients do not make any copy 
of further transmission of the communication.  
11. Could HKC elaborate on the additional factors for courts to consider when assessing 
damages in civil infringement cases and what was the motivation for adding these new factors?  Answer 
Section 108(2) of the Copyright Ordinance provides that "the Court may in an action for infringement of copyright having regard to all the circumstances, and in particular to -  
(a) the flagrancy of the infringement; 
(b) any benefit accruing to the defendant by reason of the infringement; and (c) the completeness, accuracy and reliability of  the defendant's business accounts and records, 
award such additional damages as the justice of the case may require." 
 In view of the difficulties encountered by the copyri ght owner in proving actual loss in particular in 
the digital environment, the 2014 Bill proposes to introduce two additional factors for the court's 
assessment of damages, namely (a) the unreasonabl e conduct of an infringer after having been 
informed of the infringement; and (b) the likelihood of widespread circulation of infringing copies as a result of the infringement. In formulating the new factors, we have considered the 
corresponding legal position and case law in several overseas common law jurisdictions. 
 Report by the Secretariat (WT/TPR/S/306) 
 Part 3. Trade Policies and Practices by Me asure; 3.2 Measures Directly Affecting 
Imports; 3.2.9 Standards and other technica l requirements: page 42, paragraph 3.65 
 
As per paragraph 3.2.9 of the Report, Canada understands that HKC has not developed its own 
standards, and adopts international standards or overseas standards, where appropriate.   
12. Could HKC please elaborate on what considerations HKC commonly takes into account when 
evaluating which overseas standards to adopt? Is there a particular market that HKC commonly draws these overseas standards from? 
 
Answer 
Hong Kong, China does not have a central standards body developing and issuing domestic standards. Our regulatory authorities are empo wered under relevant regulations to specify 
standards and requirements under their respective purview. 
 Where standards have to be applied in HKC, our regulatory authorities in general adopt available 
international standards and where not available or not applicable, adopt regional or prevailing 
overseas standards, if they are deemed applicable and relevant to the objectives of the regulatory 
measure per se and local circumstances. There is not a particular market that HKC commonly 
draws these overseas standards from. 
 WT/TPR/M/306/Add.1 
 
- 33 - 
 
 
  13. Given the relationship between HKC and the People's Republic of China, could HKC please 
indicate whether any technical regulatory cooperative initiatives exist and what form they may 
take?  
Answer 
HKC has technical cooperative arrangements with the Mainland of China. Examples are given 
below on the areas of (1) safety of toys, children's products and consumer products; and (2) on 
development of Chinese Materia Medica Standards.  
 The Customs and Excise Department as the law enforcement agency concerning safety of toys, children's products and consumer products has en tered into a cooperative arrangement with the 
General Administration of Quality Supervision, In spection and Quarantine of Mainland China. The 
cooperative arrangement covers, inter alia, tec hnical exchange and cooperation between the two 
sides (e.g. meetings between the technical experts of  the two sides) concerning the safety of these 
products. 
 The Department of Health has entered into a co operative arrangement on development of Chinese 
Materia Medica Standards with the National Institutes for Food & Drug Control under the State 
Food and Drug Administration of the People's Repub lic of China. The collaboration is in the form of 
contract research programme. More details are available at the following website: http://www.cmd.gov.hk/html/eng/se rvice/hkcmms/development.html . 
 
Part 3. Trade Policies and Practices by Meas ure; 3.4 Measures Affecting Production and 
Trade; 3.4.5 Intellectual Property Rights; 3. 4.5.1 Legislation; 3.4. 5.1.1 Copyright Law: 
page 59, paragraph 3.141 
 This paragraph refers to the introduction of criminal sanctions against unauthorized copying or 
distribution of infringing copies of certain printed works.  
 14. Could HKC clarify which particular printed work s benefit from criminal protections and why 
other printed works do not benefit from criminal protection? 
 
Answer 
In view of the concern of considerable financial lo ss caused to the publishing industry by business 
end-users in copying or distributing infringing copies of copyright works in printed form on a 
regular or frequent basis, we have introduced criminal sanction against unauthorised copying or distribution of infringing copies of copyright works contained in four major types of printed works, 
namely, books, magazines, periodicals and newspapers, by business end-users to an extent that 
exceeds the numeric limits set out in the legislation.  For any other types of printed works, criminal 
sanctions have been made available under the general provisions governing offences in relation to making or dealing with infringing articles, including in particular the offence for distributing 
infringing copies of copyright works for the purpos e of or in the course of any trade or business 
which consists of dealing in infringing copies of copyright works, or distributing infringing copies 
otherwise than for the purpose of or in course of any trade or business but to such an extent as to 
affect prejudicially the copyright owner.  
 Part 3. Trade Policies and Practices by Meas ure; 3.4 Measures Affecting Production and 
Trade; 3.4.5 Intellectual Property Rights; 3. 4.5.1 Legislation; 3.4. 5.1.1 Copyright Law: 
page 59, paragraph 3.142  
 This paragraph refers to the Copyright (Ame ndment) Bill 2011, which was submitted to the 
Legislative Council (LegCo) in June 2011 and it lists some of the proposed amendments. 
 15. Could HKC elaborate on the details of its proposed amendment for safe harbour for online 
service providers (OSPs), including the role and content of the Code of Practices? 
 Answer 
To provide incentives for online service providers (OSPs) to cooperate with copyright owners in 
combating online piracy, we propose to introduc e safe harbour provisions in the Copyright 
(Amendment) Bill 2011 (which lapsed in 2012) and the Copyright (Amendment) Bill 2014. In brief, the proposed safe harbour provisions would limit OSPs' liability for copyright infringement provided WT/TPR/M/306/Add.1 
 
- 34 - 
 
 
  that they meet certain prescribed conditions, incl uding the taking of reasonable steps to limit or 
stop an infringement occurring on their service platforms when being notified. 
 The proposed safe harbour provisions are underpinned by a voluntary Code of Practice which sets 
out suggested practical guidelines and procedures for OSPs to follow when being notified of 
infringing activities on their service platforms. OS Ps which comply with the Code of Practice will be 
treated as having taken reasonable steps to limit or stop the infringement in question and will not 
be liable for any monetary claim for copyright infr ingement that occurs on the provider's service 
platform. A latest version of the draft Code of Practice can be found at: http://www.cedb.gov.hk/citb/doc/en/Code_of_ Practice_English_2nd_Draft_(final).pdf . 
 
16. Are OSPs operating in HKC also operating in Mainland China, and if so do the proposed safe 
harbour amendments for OSPs, as well as the Code of Practices, also apply to OSPs operating in Mainland China? 
 
Answer 
The safe harbour provisions apply to service providers which provides service within the 
jurisdiction of Hong Kong, China irrespective of whether they also provide service in other 
jurisdictions, such as the Mainland China.  Part 3. Trade Policies and Practices by Meas ure; 3.4 Measures Affecting Production and 
Trade; 3.4.5 Intellectual Property Rights; 3. 4.5.1 Legislation; 3. 4.5.1.2 Patent Law: 
page 60, paragraph 3.144  
 
The report notes that "[s]tandard patents are granted based on the re-registration of 
corresponding patents already granted by one of the three "designated patent offices"". 
 
17. Could HKC elaborate on the process for re-regis tration of a standard patent, including the 
distinction between formality examination and substantive examination and the depth of formality examination?  
Answer 
The current Hong Kong, China's patent system for grant of standard patents and short-term 
patents has been in place since 1997. 
 
Standard Patent 
"Re-registration" forms the basis of grant of a standard patent in HKC. More specifically, a 
standard patent is granted in HKC on the basis of  a patent granted by one of the three designated 
patent offices, namely the State Intellectual Prop erty Office (SIPO) of Mainland China, the UK 
Intellectual Property Office (UKIPO) and the European Patent Office (EPO) for patents designating the UK. 
 
An application for standard patent is filed in two stages, namely (i) a request to record filed within six months after the date of publication of the corresponding patent application in a designated 
patent office, and (ii) a request for registration and grant filed within 6 months after the date of 
grant of the patent by the designated patent office  or publication of the request to record in HKC, 
whichever is the later. 
 
The application is subject to formality examinatio n of the documents in support of the application 
without substantive examination of the invention in  question, i.e. whether the invention is novel, 
involves an inventive step and is susceptible of  industrial application would not be assessed and 
determined by the Patents Registry. 
 Short-term Patent 
The short-term patent system seeks to supplem ent the standard patent system by offering 
protection to inventions with a shorter commercial life cycle, although the patentability requirements for both short-term patents and standard patents are identical. 
 
An application for a short-term patent can be made in HKC without having first to go through a designated patent office. One of the essential documents in support of a short-term patent WT/TPR/M/306/Add.1 
 
- 35 - 
 
 
  application is a search report from one of the searching authorities, namely an international 
searching authority under Article 16 of the Pate nt Co-operation Treaty, SIPO, UKIPO and EPO.  
 Same as the examination approach for a standard patent application, an application for a short-
term patent is mainly subject to formality ex amination of the documents in support of the 
application rather than substantive examination of the invention in question.  
Part 3. Trade Policies and Practices by Meas ure; 3.4 Measures Affecting Production and 
Trade; 3.4.5 Intellectual Property Rights; 3.4. 5.1 Legislation; 3.4.5. 1.3 Parallel Imports: 
page 61, paragraph 3.152  
This paragraph explains that "[t]here are no restrictions on parallel imports of computer software 
products, including for commercial dealings, except  if the principal attraction of the product 
involves musical sound or visual recordings, movies, TV dramas, e-books, or a combination of 
them".  
 18. Could HKC outline the rationale behind allowing parallel imports of computer software 
products while excluding parallel imports of other copyrighted works, such as books? 
 Answer 
In 2003, both the civil and criminal liabilities rela ted to parallel importation of and the subsequent 
dealing in (i.e. the selling, hiring or distribu ting of) computer software were removed. The 
liberalization of parallel imports of computer software products is supported by the Legislative Council and users of computer software, and is in line with HKC's free-market philosophy and the 
growing popularity of purchases through the Internet. Allowing parallel importation of computer 
software would increase competition and availability  of products in the market, resulting in more 
choices and lower prices. This would help to ease the financial burden especially of small and 
medium sized enterprises. 
 Since 2007, civil and criminal liabilities in relation to importation or possession of parallel import of 
all other types of copyright works by end-users (including business end-users) have also been 
removed except in cases where parallel imported movies, television dramas, musical sound 
recordings or musical visual recordings are used for showing or playing in public (other than by educational establishments for educational purposes or library uses). Selling, hiring or distributing 
the parallel imported copies of copyright works (o ther than computer software) for profit are still 
prohibited taking into account the serious concerns expressed by the relevant industries about a complete relaxation for parallel import of other types of copyright works.  We believe the current 
level of restriction on parallel importation of copyright works strikes a reasonable balance between 
the interests of copyright owners and users.  Part 3. Trade Policies and Practices by Meas ure; 3.4 Measures Affecting Production and 
Trade; 3.4.5 Intellectual Property Rights; 3. 4.5.1 Legislation; 3.4.5.1.4 IP Trading: 
page 62, paragraph 3.154  
 
This paragraph indicates that the  Working Gr oup on IP trading "will explore specific policies and 
support measures under each strategic area. In addition, an online IP trading portal was launched by the Hong Kong Trade Development Council in December 2013."  
 
19. Could HKC describe its online IP trading portal, including its purpose, what types of trading 
of IP the portal facilitates and who uses the portal?  
Answer 
Launched by the Hong Kong Trade Development Council (HKTDC) in December 2013, Asia IP 
Exchange (AsiaIPEX) is a free online platform and database aiming to facilitate international IP 
trading and connection to global IP players. At present, it has formed alliances with 23 strategic 
partners local and overseas and covers over 25,000 entries of tradable intellectual property rights 
(including copyright, patents, registered design and trademarks) sourced from around the globe in 
the biotech, nanotech, medical, electronics, textile , film, publishing and other sectors. For details 
please refer to http ://www.asiaipex.com.  
 WT/TPR/M/306/Add.1 
 
- 36 - 
 
 
  The number of registered AsiaIPEX members ex ceeded 8,000 by Oct 2014, including IP owners, 
users or service providers. We observe the growin g importance of Asia in the global IP-related 
business, in particular Mainland China as a major player.  
Other than the portal, the HKTDC holds the annual Business of IP Asia Forum, aiming to connect IP 
owners, buyers and sellers as well as financial, le gal and technology professionals from around the 
world. This year's Forum, to be held in Dece mber, will bring together around 2,000 participants. 
Since 2011, the Business of IP Zone (BIP Zone) has also been set up in HKTDC local trade fairs for 
IP intermediaries to provide free consultation services to the fair exhibitors and visitors. This arrangement benefited 11 trade fairs in 2014 receiving positive responses. To promote the AsiaIPEX among global IP elites, we have also staged promotions at local and overseas renowned 
IP events including AUTM Annual Meeting, IPBC  Global, LES Annual and Mid-Year Meeting, etc 
 Part 3. Trade Policies and Practices by Meas ure; 3.4 Measures Affecting Production and 
Trade; 3.4.5 Intellectual Property Ri ghts; 3.4.5.2 Enforcement: page 62, 
paragraph 3.156  
The report specifies that the Customs and Excise Department (C&ED) "is responsible for enforcing 
the criminal aspects of IPR infringement, by in vestigating and prosecuting copyright and trade 
mark offences, and false trade descriptions." 20. Is the C&ED responsible for enforcing the criminal aspects of IPR infringement both within 
HKC's domestic market and at the border, or just infringements related to the border? 
 Answer 
C&ED is the sole enforcement arm of the IPR laws. It is responsible for taking criminal enforcement actions both in the inland and at the border  
 
21. Does the police also have jurisdiction over criminal IPR infringement enforcement in HKC, 
and if so, what is the nature and scope of its jurisdiction?   Answer 
As C&ED is the sole enforcement arm of the IPR laws, all criminal IPR infringements fall under C&ED.   
Part 3. Trade Policies and Practices by Meas ure; 3.4 Measures Affecting Production and 
Trade; 3.4.5 Intellectual Property Ri ghts; 3.4.5.2 Enforcement: page 63, 
paragraph 3.161  
 
The report notes that "the growth of e-commerce, in particular trading through online auction sales, has led to higher volumes of counterfeit products being shipped in smaller quantities in the form of postal packages, representing another new challenge to intelligence and enforcements 
efforts". 
 22. Does the challenge posed by counterfeit products being shipped in smaller quantities arise 
from a personal exemption under HKC law for small quantities of goods sent in small assignments? 
 Answer 
There is no "personal exemption" under HKC's law for small quantities of goods sent in small consignments. HKC is an international and regional  transportation hub for transshipment cargoes. 
Goods from nearby regions come to HKC by cro ss-boundary vehicles and river trading vessels en-
route to ocean liners and air flights for export to different countries around the globe. To 
effectively combat the transshipment of IPR infrin ging goods, in particular the current trend of 
delivering small quantities of IPR infringing good s in express and postal parcels passing through 
HKC, the C&ED has been taking a series of initiatives, including exchanging intelligence and 
conducting parallel operations with enforcement authorities both overseas and in Mainland China. 
C&ED has collaborated with express courier companies and Hong Kong Post in enhancing detections through intelligence and experience sh aring. A Memorandum of Understanding will be 
signed with express courier companies in the near future. 
 WT/TPR/M/306/Add.1 
 
- 37 - 
 
 
  23. What changes to its laws, if any, is HKC considering to resolve this issue? 
 
Answer 
To guard against the transshipment of IPR infringing goods, the C&ED has taken various initiatives 
as set out in answer to Q22. The C&ED will continue to maintain close cooperation with law 
enforcement authorities overseas and in Mainland China to combat IPR infringement. We consider that the existing law is in order to provide adeq uate protection with no change necessary. We will 
continue to review our enforcement strategies from time to time to ensure that they are up to 
speed to meet the prevailing needs  Part 3. Trade Policies and Practices by Meas ure; 3.4 Measures Affecting Production and 
Trade; 3.4.5 Intellectual Property Ri ghts; 3.4.5.2 Enforcement: page 63, 
paragraph 3.163  
This paragraph describes initiatives by the C&ED to monitor and trace infringement on the internet 
"with a view to strengthening enforcement capab ilities and effectiveness in combating online 
piracy and counterfeiting" and "to undertake research and development into the latest 
technologies, formulate online investigation procedures, and conduct training courses for front-line 
enforcement officers."  
24. Could HKC elaborate on whether any of the initiatives mentioned in this paragraph are 
linked with or done in cooperation with counterparts in Mainland China?  
Answer 
Liaison channels have been established with the Mainland Customs and the IPR 
administrative/enforcement authorities in Mainland China such as the National Copyright 
Administration and the State Intellectual Property Office to expedite intelligence and information 
sharing. Both sides are committed to conducting parallel operations on a need basis.  Part 4. Trade Policies by Sector; 4.2 Agri culture and fisheries; 4.2.2 Farm support 
measures: page 68, paragraph 4.17 
 According to the Report, the total value of loans at concessional rates for farm production under 
the various funds administered by the Agriculture,  Fisheries and Conservation Department (AFCD) 
was HK$29 million in 2010-13.  
25. What has been the rate of repayment on these loans? 
 Answer 
As at 31 December 2013, the repayment rate of  loans granted between 2010 and 2013 under the 
various fund administered by AFCD was 97%. The funds covered include the Kadoorie Agriculture 
Aid Loan Fund, the JE Joseph Trust Fund and the Vegetable Marketing Organisation Loan Fund.  
Appendix Tables; Table A3. 7 Enforcement of  intellectual property rights, 2010-2013; 
page 135, paragraph 3.154  
26. We notice there is a significant decrease in th e number of people given prison sentences for 
copyright violations and fines between 2011 and 2013. Could HKC please elaborate on the reasons for this?   
Answer 
The C&ED of the HKC Government has been adopting a multi-pronged approach in tackling 
criminal IPR infringements through close cooperation with the rights holders and other local, 
Mainland China and overseas law enforcement agencies; stringent enforcement actions to crack 
down syndicates; and invocation of the Organized and Serious Crimes Ordinance to confiscate crime proceeds and seek stiffer sentences and penalties to deter organized piracy and 
counterfeiting activities. The C&ED has also worked with copyright owners and the Intellectual 
Property Department to enhance public awarenes s of IPR protection. We observe that the IPR 
infringement situation has well been contained in re cent years. The IPR offences detected in recent 
years have been less serious than before and the number of convicted cases given prison WT/TPR/M/306/Add.1 
 
- 38 - 
 
 
  sentences has decreased. The C&ED will continue its relentless efforts in combating IPR 
infringements.  WT/TPR/M/306/Add.1 
 
- 39 - 
 
 
  MEXICO 
Hong Kong's report 
 3.3.4  Free-Trade Agreement between Hong Kong, China and Chile (P.8)  
 
Given the environmental considerations of Hong Kong, how are environmental issues going to be approached in order to reach high levels of environmental protection, while at the same time 
complying with the respective multilateral enviro nmental agreements, particularly those related to 
trade?  
 Answer 
There are a number of 'trade-relevant' multilateral environmental agreements applicable to Hong Kong, China (HKC). These include, for instance, the Rotterdam Convention on the International 
Trade in Hazardous Chemicals, Stockholm Convention on Persistent Organic Pollutants, Basel 
Convention on Control of Transboundary Movement s of Hazardous Waste, CITES on International 
Trade in Endangered Species of Wild Fauna and Flor a, Vienna Convention for the Protection of the 
Ozone Layer, etc. To fulfil HKC's obligation under  these international conventions and to achieve 
the relevant environmental objectives and standards, HKC has introduced and enforced the 
necessary local legislation. For instance, the Hazardous Chemicals Control Ordinance has been enacted in HKC to regulate the trade of hazardous chemicals listed in the Stockholm & Rotterdam conventions. 
 
The Free-Trade Agreement between HKC and Chile (C hapter 14: Environment) establishes a set of 
shared principles and measures and a framewor k for collaboration between the Parties. Among 
others, the Parties affirm their intention to continue to pursue a high level of environment 
protection and to fulfil their respective multilateral environmental commitments. The Parties agree that it is inappropriate to either encourage trade and investment by relaxing or not enforcing their 
environmental laws and regulations, or to set or use those laws and regulations for trade 
protectionist purposes. The Parties also agree to establish a collaborative framework to advance the common commitments on environmental protection.  
 
3.3.9  Negotiations of the agreement on trade of environmental goods (P.9)  
 a) Within the framework of the aforementioned initia tive, does it adhere to the provisions made by 
Doha's Ministerial Declaration, in its paragraph 31, item iii)? And how is it planned to align it to 
Doha Development Agenda (DDA)?  
 
Answer 
HKC and other participants to the negotiation for the Environmental Goods Agreement (EGA) have 
agreed that the agreement would be pursued with the ultimate goal of multilateralization. The EGA will take effect only when a critical mass of WTO Members agree to participate and the benefit of it 
will be applied on a most-favoured-nation (MFN) basis. 
 HKC and other participants of the EGA consider that the EGA negotiation is a viable building block 
for achieving multilateral liberalization in the trade of environmental goods under the Doha 
Ministerial Declaration, Paragraph 31(iii), and the EGA would also provide impetus to the DDA negotiations. The participants will keep the WTO membership informed of the progress of the EGA 
negotiation for transparency. WTO Members who shar e the goal of achieving global free trade in 
environmental goods are welcome to join the negotiation.  
 b) Considering how the exercises work within the core of the WTO, and taking into account the 
aforesaid initiative, which is the institutional structure (Committee on Trade Negotiations, 
Committee on Trade and Environment, Group for Rules Negotiation, etc.) that HK assigns aimed at performing the initiative's negotiations? 
 
Answer 
The EGA negotiation is a plurilateral negotiat ion currently being conducted amongst 14 WTO 
Members. The EGA participants will keep the WTO membership informed of the progress of the 
negotiation, and have provided updates on our ne gotiation to other WTO Members at meetings of 
the Committee on Trade and Environment.  WT/TPR/M/306/Add.1 
 
- 40 - 
 
 
  4.1.8  Environmental industries (P.16-17) 
 
As regards the support given to the industry for its participation in activities that promote the commerce, such as commercial missions and sample s related to the environment, in which ways 
does HK provide such support? 
 Answer 
The HKC Government supports the environmental industry through organising exhibitions and trade missions to help explore business opportunities in HKC and Mainland China, as well as increase collaboration with overseas enterprises. For instance, the Government co-organises the annual Eco Expo, which is a major event for local and international businesses to showcase their 
latest innovations in environmental technologies, services and products. The event also facilitates 
communication between local and international businesses, and promotes the development of green market in the region. Besides the Eco Expo, the HKC Government also organises trade 
missions for the environmental service sector to visit Mainland China and other countries to foster 
exchange of experience in green technology deve lopment, identify opportunities for cooperation 
and promote the environmental market in HKC a and the Pearl River Delta region. 
 
4.1.9 Trade related to Intellectual Property  4.40 Concerning the strategic goals of the Working Group, are there policies or measures currently 
being applied by the Workin g Group? If so, which?  
 Answer 
Hong Kong, China set up the Working Group in March 2013 to advise on the overall strategy for promoting HKC as a premier IP trading hub in the region, and devise specific policies and measures in support. In end-2013, the Working Gr oup promulgated a strategic framework. It sets 
out HKC's vision, missions and ten focus strategies in four strategic areas, namely enhancing the 
IP protection regime; supporting IP creation and exploitation; fostering IP intermediary services and manpower capacity; and pursuing promotion, education and external collaboration efforts. Details can be found at: 
http://gia.info.gov.hk/general/201 311/22/P201311220572_0572_136351.pdf . 
 
Based on this framework, the Working Group ha s been exploring specific policies and other 
support measures. Examples of initiatives underway include the following: 
 • setting up an "Original Grant" Patent (OGP) System with substantive examination of patent 
 application (subject to the progress of legislation and other implementation tasks, we aim at 
 launching the OGP system in 2016/17 at the earliest); • updating our copyright regime, through the Copyright (Amendment) Bill 2014 which was  introduced into HKC's legislature in June 2014 and is being scrutinised by a Bills Committee;  
• co-organizing the Business of Intellectual Property (BIP) Asia Forum with the Hong Kong 
 Trade Development Council (HKTDC) and Hong Kong Design Centre again in 2014 to  underline the strategic importance of this annual IP flagship event; 
• promoting the Asia IP Exchange, an online IP trading portal, launched by the HKTDC in 
 December 2013 to enhance HKC's IP trading volume, capabilities and connections; and  • conducting a baseline survey on IP trading and manpower in HKC for providing statistical 
 and other relevant data to underpin appropriate supporting policies and measures. 
 The Working Group will continue its work in earnest to promote HKC as a premier regional IP trading hub. 
 
Secretariat's Report  
3.65 May you please explain further when do you refer to the adoption of international or foreign 
rules, when appropriate?   
 
Answer 
HKC does not have a central standards body developing and issuing domestic standards. Our 
regulatory authorities are empowered under relevant regulations to specify standards and requirements under their respective purview. WT/TPR/M/306/Add.1 
 
- 41 - 
 
 
  Where standards have to be applied in HKC, our regulatory authorities in general adopt available 
international standards and where not available or not applicable, adopt regional or prevailing 
overseas standards as appropriate, if they are deem ed applicable and relevant to the objectives of 
the regulatory measure per se and local circumstances. 
 
3.68 Given that you indicate product certification as non-mandatory, may you explain what is the 
procedure you established in order to veri fy the adequate compliance of a product?   
 
Answer 
Conformity assessment procedure includes testing by laboratories. For example, for safety of 
consumer goods, toys and children's products, and electrical and electronic products, conformity 
with the requirements is assessed by laboratory testing. 
 3.69 May you provide more information about the th ree accreditation systems that you have, and 
whether there is any relation between th em or they are independent processes? 
 Answer 
Hong Kong Accreditation Service (HKAS) operates in accordance with ISO/IEC 17011, the international standard for accreditation bodies accrediting conformity assessment bodies. The accreditation body in Mexico - entidad mexicana de acreditación a.c (ema) also operates under the same international standard.  
 
Conformity assessment bodies (CABs), according to international standard ISO/IEC 17011, are 
bodies that perform conformity assessment services  and that can be the object of accreditation. 
Laboratories, inspection bodies and certification bodies are 3 types of CABs.  
 The 3 accreditation schemes are established to pr ovide accreditation to the respective types of 
CABs as follows: 
 (a) Hong Kong Laboratory Accreditation Scheme (HOKLAS) – provides accreditation to laboratories to ISO/IEC 17025 for non-medical laboratories or to ISO 15189 for medical testing 
laboratories; 
(b) Hong Kong Inspection Body Accreditation Scheme (HKIAS) – provides accreditation for 
inspection bodies to ISO/IEC 17020; and 
(c) Hong Kong Certification Body Accreditatio n Scheme (HKCAS) – provides accreditation for 
certification bodies to ISO/IEC 17021 for manageme nt system certification bodies or to ISO/IEC 
17065 for product certification products. Accreditation for greenhouse gas assertion validation and 
verification bodies to ISO 14064 is also provided under this scheme. 
 3.70.  What products have been covered by the mutual recognition agreements subscribed? Are 
the 87 currently effective? If that may not be the case, what is the situation of those MRA that are 
not currently effective? 
 Answer 
Paragraph 3.70 refers to the "mutual recognitio n arrangements" of ILAC, IAF, APLAC and PAC 
signed among accreditation bodies in various economies. These "mutual recognition arrangements" are different from the "mutual recognition agreements" signed between 
governments. The mutual recognition arrangements among accreditation bodies are not directly 
related to products but are related to the stan dards for accreditation of conformity assessment 
bodies. Signatories to these "mutual recognition arrangements" recognize the accreditations by the other signatories as equivalent to their own. 
 
3.71. Regarding the recommendation to enhance the accreditation system, what measures have 
been carried out in order to comply with the aforesaid recommendation? 
 
Answer 
A number of measures have been implemented on HKC's accreditation system. 
 
1. HKAS has increased its manpower by 38% since April 2010. 2. HKAS has introduced new accreditation services  to meet the changing needs of the industry 
 and the community at large. Examples include: WT/TPR/M/306/Add.1 
 
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  (a) identification of Chinese Materia Medica  by microscopic examination, chemical and 
 physicochemical methods; 
(b) forensic testing; (c) radioactivity measurement for food and qualitative screening of consumer products for 
 radioactivity; 
(d) new types of food chemical testing: (i) determination of nutrient composition for nutrition  labelling, (ii) determination of phthalate conten t, (iii) determination of aflatoxin content, and 
 (iv) determination of formaldehyde and primary aromatic amines in plastic food wares; 
(e) authentication of food by species identification using DNA sequencing analysis; (f) testing for the US Energy Star product certification program; and (g) building diagnostic testing on concrete. 
 
3. HKAS has provided training to its accreditat ion officers, in particular on the accreditation 
standards for new accreditation services. 
 
4. The types of certification services that can be accredited by HKAS have expanded by 125% 
since April 2010. Examples include: 
 
(a) food safety management system to ISO 22000; (b) occupational health and safety management system to OHSAS 18001; (c) information security management system to ISO 27001; 
(d) energy management system to ISO 50001; and 
(e) verification and validation for greenhouse gas assertions using ISO 14064.  
3.72 You described the rules applying to food labelling and they are specified in Annex 3 of the 
Regulation on foods and drugs. Was th is regulation notified to the WTO? 
 
Answer 
Yes. On 20 October 2000, HKC notified the WTO Committee on Sanitary and Phytosanitary 
Measures of the "Consultation Paper on Proposed  Amendments to Food and Drugs (Composition 
and Labelling) Regulations, Chapter 132, Laws of Hong Kong" under G/SPS/N/HKG/11. 
 
3.73 You mentioned genetically modified foods labelling, was this regulation notified to the WTO? 
 
Answer 
Yes. HKC first notified the WTO Committee on Technical Barriers to Trade on 4 April 2001 of the 
"Consultation Paper on Labelling of Genetically Modified Food" under G/TBT/N/HKG/2, and then 
the adoption and effective day of the relevant labe lling guidelines under an addendum notification 
G/TBT/N/HKG/2/Add.1 dated 4 August 2006.  3.4.5 Intellectual Property Rights 
3.4.5.1.1 Copyright legislation 
3.141. What are the numeric limits set as to when the unauthorized copy or distribution of printed 
works' illegitimate copies shall be deemed as a criminal offence? 
 
Answer 
Section 119B(1) of the Copyright Ordinance provides criminal sanctions against the following acts 
done without the copyright owner's authorisation for the purpose of or in the course of any trade 
or business on a regular or frequent basis to an  extent beyond the prescribed numeric limits, 
resulting in a financial loss to the copyright owners –  
(i) making an infringing copy of a copyright work in printed books, newspapers, magazines and 
 periodicals (all in printed form) for distribution ; or 
(ii) distributing an infringing copy of any of the above copyright works in printed form. 
 
There are two separate sets of numeric limits prescribed for different categories of copyright works: WT/TPR/M/306/Add.1 
 
- 43 - 
 
 
  (a) For newspapers, magazines or periodicals (other than academic journals), the number of 
 "infringing pages" (i.e. those pages each containing in whole or in part any infringing copy) 
 made for distribution or distributed within any 14-day period must not exceed 500  (calculated on the basis of A4-size pages).  
(b) For books or academic journals, the total value of infringing copies made for distribution or 
 distributed within any period of 180 days must not exceed HK$6,000 based on the following  evaluation methods: 
(i) where the infringing copies contain more than  25% of the total number of printed pages of a 
 book or an issue of an academic journal, the value of such infringing copies is taken to be 
 the same as the relevant book or the relevant issue of the academic journal; and (ii) where the infringing copies contain not more than 25% of the total number of printed pages 
 of an issue of an academic journal but includ e one or more than one complete article(s) of 
 that issue, the value of such infringing copies is taken to be the same as the relevant  article(s). 
 
3.142 . Concerning the proposed Bill:  
Which was the code of practices created for the online service providers? 
Which are the additional factors that were defined in order to consider the payment for damages in 
civil procedures as re gards online offences? 
 Answer 
To provide incentives for online service providers (OSPs) to cooperate with copyright owners in 
combating online piracy, we propose to introduc e safe harbour provisions in the Copyright 
(Amendment) Bill 2014. In brief, the proposed sa fe harbour provisions would limit OSPs' liability 
for copyright infringement provided that they me et certain prescribed conditions, including the 
taking of reasonable steps to limit or stop an infringement occurring on their service platforms when being notified. 
 
The proposed safe harbour provisions are underpinned by a voluntary Code of Practice which sets out suggested practical guidelines and procedures for OSPs to follow when being notified of infringing activities on their service platforms. OS Ps which comply with the Code of Practice will be 
treated as having taken reasonable steps to limit or stop the infringement in question and will not 
be liable for any monetary claim for copyright infr ingement that occurs on the provider's service 
platform. A latest version of the draft Code of Practice can be found at: 
http://www.cedb.gov.hk/citb/doc/en/Code_of_ Practice_English_2nd_Draft_(final).pdf . 
 
Under the existing Copyright Ordinance, the court may award additional damages in an action for 
infringement of copyright (not limited to online infringement) as the justice of the case may 
require having regard to all the circumstances, and in particular the following factors:-   (a) the flagrancy of the infringement; 
(b) any benefit accruing to the defendan t by reason of the infringement; and 
(c) the completeness, accuracy and reliability of  the defendant's business accounts and records. 
 
In view of the difficulties encountered by the copy right owner in proving actual loss in the digital 
environment, the Bill proposes to introduce two additional factors for the court to consider in awarding additional damages, namely, 
 
"(1) any unreasonable conduct of the defendant after the act constituting the infringement 
occurred, including any act done or attempt made by  the defendant to destroy, conceal or disguise 
evidence of the infringement after having been in formed of the infringement by the plaintiff; and 
(2) the likelihood of widespread circulation of infr inging copies as a result of the infringement".  
 3.4.4.1.2 Patents legislation 
3.145. What is understood as a product or process with a short commercial life? 
 Answer 
The short-term patent system in HKC is intended  to supplement the standard patent system by 
offering a shorter protection term to inventions (covering products and processes) with a shorter commercial life. Whether an invention would have  a shorter commercial life would depend on 
factors and individual circumstances such as the nature of the invention, technological WT/TPR/M/306/Add.1 
 
- 44 - 
 
 
  advancement in the relevant field and market trends. It is however not a requirement for an 
invention to have a short commercial life in order to be eligible for short-term patent protection. 
 3.147.  What does the substantive exam, required to  initiate the offence procedures related to 
short term patents, consist of? 
 Answer 
Under the existing short-term patent system in HKC, an application for a short-term patent is mainly subject to formality examination of the docu ments in support of the application rather than 
substantive examination of the invention in ques tion. For example, one essential document in 
support of a short-term patent application is a sear ch report from one of the searching authorities, 
namely an international searching authority under Article 16 of the Patent Co-operation Treaty, or 
one of the three designated patent offices (namely the State Intellectual Property Office of Mainland China, the UK Intellectual Property  Office and the European Patent Office). 
The HKC Government announced its policy decision in February 2013 on, amongst others, refining 
the short-term patent system, notably making substantive examination a pre-requisite to commencement of infringement proceedings. The proposed substantive examination would involve 
an assessment of whether the invention for which the short-term patent was granted has satisfied 
the patentability requirements on novelty,
 5 inventiveness 6 and industrial applicability.7 
 3.4.5.2 Abidance 
3.155, 3.158 y 3.159 What campaigns have been developed pursuing the awareness about the 
importance of protecting the IPRs, and what do they consist of?  
Answer 
The Intellectual Property Department (IPD) has been  striving to promote the awareness of respect 
for IPRs in the general public and two of the territory-wide campaigns are the "No Fakes Pledge" 
Scheme and "I Pledge" Campaign. The campaigns aim to encourage pride in the selling and buying 
of genuine goods among HKC retailers, tourists  and local consumers. In 2013, nine trade 
associations with 808 retail merchants, covering 6,426 outlets in HKC, took part in the "No Fakes Pledge" Scheme. For the "I Pledge" Campaign, it attracted over 10,000 members to join and IPD 
collaborates with the right-holders and youth associations to organize a variety of activities for 
members every year, such as live band shows and design competitions.  
To promote respect for IPRs in the younger generation, in 2013 the IPD's primary and secondary 
school visit programmes covered 75 schools and 17,640 students and the interactive drama programme covered 117 schools and 36,924 students. 
 
The Intellectual Property Department (IPD) has been  striving to promote the awareness of respect 
for IP rights in the general public and two of  the territory-wide campaigns are the "No Fakes 
Pledge" Scheme and "I Pledge" Campaign. The campaigns aim to encourage pride in the selling 
and buying of genuine goods among HKC's retailers , tourists and local consumers. In 2013, nine 
trade associations with 808 retail merchants, cove ring 6,426 outlets in HKC, took part in the "No 
Fakes Pledge" Scheme. For the "I Pledge" Campaign, it attracted over 9,000 members to join and 
IPD collaborates with the right-holders and youth associations to organize a variety of activities for 
members every year, such as live band shows and design competitions.  
To promote respect for intellectual property rights in the younger generation, the department's 
primary and secondary school visit programmes covered 75 schools and 17,640 students and the interactive drama programme covered 117 schools and 36,924 students in 2013.  
Since 2006, the Customs and Excise Department (C&ED), IPD and the IPR industry has been 
working together to run the "Youth Ambassador Against Internet Piracy" Scheme (YAS) jointly with thirteen local youth uniformed groups. The Scheme  aims to cultivate the sense of respecting 
others' IPRs among local youngsters in their young age. Through the participation in various 
workshops, competitions and visits to IPR industries, the YAS members can gain a deeper 
                                               
5 An invention is considered as novel if it does not form part of the state of the art. 
6 An invention is considered as involving an inventive st ep if, having regard to th e state of the art, it is 
not obvious to a person skilled in the art. 
7 An invention is considered as susceptible of industrial application if it can be made or used in any kind 
of industry, including agriculture. WT/TPR/M/306/Add.1 
 
- 45 - 
 
 
  understanding of the importance of IPR protection and help spread the positive message in 
society. 
 3.156.  Does the Customs and Excise Department act on its own account or upon request of the 
interested party in the search and seizure of illegitimate goods?  
 Answer 
Under the laws of HKC, criminal sanctions are available against infringement of copyright, 
trademarks and false trade descriptions. A Customs Officer is empowered to search and seize IPR infringing goods when he reasonably suspects an IPR criminal offence has been or is being committed.  
 
Our legislation also complies fully with the WT O's TRIPS Agreement. IPR owners may file an 
application to the Court for a detention order if they have reasonable grounds to suspect that 
importation of infringing goods will take or has taken place. A Customs Officer may seize the goods 
subject to the terms and conditions of the order to  facilitate the IPR owners in taking civil action 
against the infringement activity.  
 
3.163.  What is the procedure followed by the Custom s and Excise Department in order to penalise 
and dissuade the infractions made, on the Internet, to the intellectual property rights, detected by the "Lineament Monitoring Systems"? 
 
Answer 
The "Lineament Monitoring Systems" assist the C&ED in detecting copyright piracy and 
counterfeiting activities on the internet platforms. They scan through large volumes of information 
on the internet and identify suspicious activities for taking follow up investigations. If there is sufficient evidence of someone committing online infringement, C&ED will institute prosecution 
against the suspects and bring them to the court for trial. 
 3.164.  How does the Centre for Electronic Registration and Classification work? Which is the scope 
of its faculties? 
 
Answer 
The Electronic Recordation and Triage Centre (ERTC) aims to facilitate overseas right owners to 
complete recordation formalities with the C&ED. The following facilities are provided: (1) high 
definition video conferencing system to enable the arrangement of multi-point live meetings and 
preliminary examiner assessment interviews with right holders across different time zones and 
geographical boundaries; and (2) 3-D printer to al low the printing of samples of genuine goods of 
right holders to expedite the initial seizure iden tification process. The ERTC enables the C&ED to 
take prompt action against copyright and trademark infringing activities, and thus increase the overall enforcement efficiency.  
 
3.165.  Which are the proposals of amendment regarding copyright abidance? 
 
Answer 
To enhance copyright protection in the digital environment, the HKC Government introduced a 
Copyright (Amendment) Bill 2014 (the Bill) into the Legislative Council in June 2014. The key 
proposals of the Bill include: 
 i. introducing a technology-neutral exclusive ri ght for copyright owners to communicate their 
 works through any mode of electronic transmission;  
ii. introducing corresponding criminal sanctions against unauthorized communication of 
 copyright works to the public;  iii. expanding the scope of copyright exception to  cover the following purposes in appropriate 
 circumstances:  
 (a) parody, satire, caricature and pastiche;   (b) commenting on current events;  
 (c) quotation;  
 (d) temporary reproduction of copyrigh t works by Online Service Providers;  
 (e) media shifting of sound recordings; and  (f) giving education instructions;  WT/TPR/M/306/Add.1 
 
- 46 - 
 
 
  iv. establishing a statutory safe harbour for Onlin e Service Providers so that their liabilities for 
copyright infringement occurring on their servic e platforms could be limited under prescribed 
conditions; and v. providing additional factors for the court to consider in assessing damages in civil cases in 
which infringement has been established. 
 The above legislative proposals seek to strike a fa ir balance between protection of copyright, free 
flow of information and reasonable use of copyright works. WT/TPR/M/306/Add.1 
 
- 47 - 
 
 
  CHILE 
WT/TPR/S/306 and WT/TPR/G/306  
3. Trade Policies and Practices by measure   
3.4.2 Competition policy and price controls  
3.4.2.1  Competition Policy   
 
According to Paragraph 106, there are three types of anticompetitive conduct, which are prohibited 
under the Competition Ordinance. It is explained that the third of these behaviors is on mergers, 
and that only applies to the telecommunications sector.  
 Questions  
Can Hong Kong, China explain why only this third conduct in the telecommunications sector is 
prohibited rather than extend this prohibition to all sectors? Has Hong Kong, China contemplated 
applying the third rule to other sectors in the future?   
Answer 
During the stage of making the Competition Ordinance ("CO"), there was no clear consensus in the 
community to apply the merger control to all economic sectors. The HKC Government will review 
the regime a few years after the CO has fully commenced. 
 According to Paragraph 113, the Competition Ordinance requires that the Competition Commission 
and the Communications Authority signed a memorandum of understanding in which it is 
established how to exercise their shared jurisdiction.  
 Question   
Can Hong Kong, China provide more information regarding this MOU?  
 Answer 
The Memorandum of Understanding between the Competition Commission and the Communications Authority seeks to coordinate the performance of functions of the two bodies under the CO, and set out the detailed arrangements for the two bodies in respect of dispute resolution, provision of assistance, allocation of re sponsibility, supply of information, authorship of 
educational materials or guidelines, etc. 
 3.4.5 Intellectual Property Rights  
3.4.5.1 Legislation   
 Question  
Chile would appreciate it if more information were made available on the system of protection for 
trademarks and geographical indications. In particular, we would like to know which types of trade marks are protected in Hong Kong, and also whethe r the actual and effective use of trade marks is 
required as a condition for their registration. With regard to Geographical Indications, we would 
like to have more details on granting requirements. 
 Answer 
In Hong Kong, China (HKC), a registered trad e mark is a property right obtained by the 
registration of the trade mark under the Trade Marks Ordinance (Cap. 559) (TMO). The registration of a trade mark is valid for a period  of 10 years and registration may be renewed for 
further periods of 10 years each.  
 There are four types of registered trade marks,  namely ordinary, certification, collective and 
defensive trade marks. Certification marks are registered by non-trading organisations with 
regulations and declarations of competency that ce rtify the quality or certain characteristics of the 
goods or services. Unlike an ordinary trade mark, a certification mark does not indicate origin by identifying the manufacturer, producer or provid er of the goods or services. Collective marks 
indicate goods or services provided by members of  a trade association rather than origin in one 
particular manufacturer or service provider. They are registered by trade associations with regulations that control the use of the mark by  members of the association. Registration of 
defensive marks is available to protect marks that  have become exceptionally well-known in HKC. WT/TPR/M/306/Add.1 
 
- 48 - 
 
 
  Generally, trade marks which consist exclusively of signs which may serve, in trade or business, to 
designate the kind, quality, geographical origin or other characteristics of goods or services shall 
not be registered. Geographical indications (GIs) may however be registered as collective or certification trade marks in HKC. The applicant has to indicate on the application form that the 
application is for registration of a certification mark or collective mark. For a certification mark, the 
applicant must file a copy of the regulations govern ing use of the mark in which it must specify the 
persons authorized to use the mark, the characterist ics to be certified, how the certifying body is 
to test those characteristics and to supervise the us e of the mark, the fees (if any) to be paid in 
connection with the use, and the procedures fo r resolving disputes. The regulations must be 
accompanied by evidence in the form of a statut ory declaration or affidavit of the applicant's 
competence to certify the goods or services for which the certification mark is to be registered. For 
a collective mark, the applicant must file a copy of the regulations governing use of the mark in 
which it must specify the persons authorized to us e the mark, the conditions of membership of the 
association and the conditions of use of the mark, including any sanctions against misuse. 
 
As an owner of a registered trade mark in HKC, he or she has the exclusive right to use the trade mark in relation to the goods or services for which the mark is registered throughout the territory 
of HKC. If another person uses a mark identical or similar to the registered trade mark in the 
course of trade or business in HKC in relation to identical or similar goods or services without consent from the owner, and such a use is likely to cause confusion to the public, that person may be liable for infringement. Where a registered trade mark qualifies as a well-known trade mark, 
protection may be available against unauthorized use of an identical or similar mark in relation to 
goods or services not covered by the registration in cases where harm is caused to the distinctive character or repute of the registered mark as a result of use without due cause. Its owner may 
take legal action against the infringer.  
 Trade marks may also be unregistered and an unr egistered trade mark may be protected by the 
common law of passing off, where the plaintiff must establish goodwill or reputation attached to 
the goods or services under the mark, a misrepresentation by the defendant leading or likely to lead the public to believe that the defendant's go ods or services are the goods or services of the 
plaintiff and the plaintiff suffers or likely to suffe r damage as a result of the misrepresentation.  
 
Question  
Chile would appreciate it if more information were available on the system of protection for genetic 
resources and traditional knowledge in Hong Kong. 
 Answer 
On genetic resources, according to the website of the World Intellectual Property Organization8,  
 "Genetic resources (GRs) refer to genetic material of  actual or potential value. Genetic material is 
any material of plant, animal, microbial or other origin containing functional units of heredity. 
Examples include material of plant, animal, or microbial origin, such as medicinal plants, 
agricultural crops and animal breeds.  
GRs as encountered in nature are not creation s of the human mind and thus they cannot be 
directly protected as intellectual property (IP). Ho wever, there are IP issues associated with GRs. 
 
Inventions or plant varieties based on or developed using GRs (associated with traditional 
knowledge or not) may be patentable or protected by plant breeders' rights."  In HKC, an invention derived from or developed using GRs may be patentable and protected under 
the Patents Ordinance (Cap 541) provided that such invention satisfies the relevant statutory 
requirements. On the other hand, plant breeders' rights are protected in HKC under the Plant Varieties Protection Ordinance (Cap 490). 
 
On traditional knowledge, there is currently no legislation conferring any sui generis right that specifically protect traditional knowledge in HKC.  Innovations or creations based on traditional 
knowledge may be protected by trade marks, trade secrets, patents, etc. For example, distinctive 
signs associated with traditional knowledge may be registered, in the appropriate form, as trade marks. Traditional knowledge, in such forms as form ulae or methods, if being kept in confidence in 
                                               
8 Viewed at: http://www.wipo.int/tk/en/genetic . WT/TPR/M/306/Add.1 
 
- 49 - 
 
 
  a commercial setting, may also be protected as trade secrets by the common law of confidence. An 
obligation of confidence will arise whenever the in formation is communicated to or acquired by a 
person who knows or ought as a reasonable person to know that the other person wishes to keep that information confidential. An industry or trade custom or practice may also impose an 
obligation of confidence. Moreover, generally speaking, a technical invention based on or 
developed using traditional knowledge may be protected by patents provided that the invention satisfies the patentability requirements on novelty,  inventiveness and industrial application. An 
example of this patent protection category is a pharmaceutical/chemical/drug patent, which 
involves application of knowledge of traditional medicines.   3.4.5.1.2 Patent Legislation  
 
Questions  
Chile would appreciate it if more information could be made available on the "Original Grant 
Patent" (OGP) system and how this system relates to the current patent system that makes a 
distinction between the "Standard" and "Short Term" patents.  
Answer 
The current patent system in Hong Kong, China (HKC) for grant of standard patents and short-
term patents has been in place since 1997.  
Standard Patent 
- "Re-registration" forms the basis of grant of a standard patent in HKC. More specifically, a 
standard patent is granted in HKC on the basis of  a patent granted by one of the three designated 
patent offices, namely the State Intellectual Prop erty Office (SIPO) of Mainland China, the UK 
Intellectual Property Office (UKIPO) and the Europe an Patent Office (EPO) for patents designating 
the UK. 
- An application for standard patent is filed in two stages, namely (i) a request to record filed 
within six months after the date of publicatio n of the corresponding patent application in a 
designated patent office, and (ii) a request for re gistration and grant filed within 6 months after 
the date of grant of the patent by the designated  patent office or publication of the request to 
record in HKC, whichever is the later. 
- The application is subject to formality examinatio n of the documents in support of the application 
without substantive examination of the invention in question. In other words, whether the 
invention is novel, involves an inventive step and is susceptible of industrial application would not 
be assessed and determined by the Patents Registry.  
Short-term Patent 
- The short-term patent system seeks to supplement the standard patent system by offering 
protection to inventions with a shorter commercial life cycle, although the patentability requirements for both short-term patents and standard patents are identical. 
- An application for a short-term patent can be ma de in HKC without having first to go through a 
designated patent office. One of the essential documents in support of a short-term patent 
application is a search report from one of the searching authorities, namely an international 
searching authority under Article 16 of the Patent  Co-operation Treaty or any designated patent 
office.  - In a manner similar to the examination approach for standard patent applications, a short-term 
patent is granted on the basis of formality examination of the documents in support of the 
application.  "Original Grant" Patent (OGP) 
- The Government announced its policy decisi on in February 2013 on, amongst others, the 
introduction of an OGP system with substantive ex amination outsourced to other patent office(s), 
and retaining the existing re-registration system for grant of standard patents. 
- More specifically, the proposed OGP system will provide an applicant for a standard patent an 
alternative route for applying for grant of a standard patent. The main difference between the proposed OGP system and the existing patent system is that there would be substantive 
examination of the invention in question under the OGP system. 
- The Government has been intensively undertaking various critical tasks for implementing the OGP system, including introducing appropriate amendments to the patent legislation. Subject to the progress of legislative exercise and other implementation tasks, HKC tentatively aims at WT/TPR/M/306/Add.1 
 
- 50 - 
 
 
  launching the new patent system in 2016-17 at the earliest.  
 
4 TRADE POLICIES BY SECTOR Air Transport: Box 4.10 and Paragraph 4. 55, Page 93. Paragraph 4.58, Page 94 
 
"In general, HKC is prepared to consider removing restrictions on third and fourth freedom rights and exchanging fifth freedom rights for operation of both passenger and all-cargo services with 
aviation partners when it serves the overall interests of HKC." 
 4.5.3.1.2 Regulatory framework for aviation services "4.58. None of these agreements grants sevent h freedom (including for all cargo flights)". 
 
Questions Could Hong Kong clarify the need of keeping restrictions on third, fourth and fifth freedom rights 
for operation of both passenger and all-cargo services and how these restrictions affect 
competition of air transport services?  
Could Hong Kong clarify how removing restrictions and exchanging rights on discriminatory basis 
serves overall interests? Could Hong Kong explain its policy on not negotiating seventh freedom?  
 Answer 
Hong Kong, China has been liberalising the air services regime progressively with a view to 
expanding HKC's aviation network and strengthening our status as an international hub. Such 
progressive liberalization policy on air services has encouraged liberal market access and promoted competition in the interest of the public and HKC's aviation industry. So far, we have signed Air 
Services Agreements (ASAs) with 62 aviation partners with different levels of commitments on 
various freedom rights. Such commitments reflect th e outcomes of individual ASA negotiations and 
are in line with our aspiration to strengthen HKC's position as the leading international and 
regional aviation centre.  WT/TPR/M/306/Add.1 
 
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  EU 
WT/TPR/S/306 – WTO Secretariat's Report 
 1 ECONOMIC ENVIRONMENT 
1.3 Foreign Direct Investment 
Page 21, paragraph 1.3  
EU Question No 1 
Could HKC submit statistics on the latest trends of FDI outflows in terms of regional destination (final destination of the physical investment)?  
 
Answer 
The FDI statistics of Hong Kong, China (HKC) are compiled in accordance with the latest 
international statistical standards stipulated in the International Monetary Fund's Sixth Edition of 
the Balance of Payments and International Invest ment Position Manual (BPM6) and Organisation 
for Economic Co-operation and Development's Four th Edition of Benchmark Definition of Foreign 
Direct Investment (BD4). According to BPM6 and BD4,  FDI statistics are to be classified in terms of 
immediate source or destination of investment. For our outward FDI figures released, the 
destination country/territory refers to the immediate destination of the investment, which does not necessarily reflect the ultimate (or final) destination of the investment. FDI statistics classified by ultimate (or final) destination of investment are not compiled in HKC mainly because of the 
technical difficulties in collecting reliable data.  
 2 TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2 TRADE AND INVESTMENT REGIME 
2.1 General Constitutional and Legal Framework Page 22, paragraph 2.1  
 
EU Questions No 2 and 3 
Could HKC explain the decision making process to decide and conclude trade or investment negotiations with foreign partners? Is there any authority involved outside HKC or does the Basic 
Law grant full competence to HKC?  
 Answer 
The Basic Law of the Hong Kong Special Administrative Region (HKSAR) is the "mini-constitution" of Hong Kong, China (HKC). Article 151 of the Basic Law provides that Hong Kong Special Administrative Region may on its own, using th e name "Hong Kong, China", maintain and develop 
relations and conclude and implement agreements with foreign states and regions and relevant 
international organizations in the appropriate fiel ds, including the economic, trade, financial and 
monetary, shipping, communications, tourism, cultural and sports fields. This is the legal basis for HKC to enter into free trade agreements and invest ment agreements with foreign states or regions 
on its own. Nevertheless, as some elements of typical investment agreements may involve HKC's 
sovereign state (e.g. expropriation, and compensation for losses owing to war or other armed conflicts), HKC would need to obtain the approv al of the Central People's Government of the 
People's Republic of China for conducting and co ncluding negotiations of agreements including 
such elements.  
In deciding whether to negotiate and conclude free trade agreements with our trading partners, we 
will consider whether the agreements are consis tent with the principles of the World Trade 
Organization, can contribute to multilateral trade lib eralization, and will bring material or potential 
economic benefits to HKC. 
 
2.3.2.4 Closer Economic Partnership A rrangement (CEPA) with Mainland China 
Page 26 and subsequent 
 
Full liberalization of services trade between HKC and the rest of the PRC had been announced for 
end of 2015. We understand that full liberalization is now postponed.  
 WT/TPR/M/306/Add.1 
 
- 52 - 
 
 
  EU Question No 4 
Could HKC explain whether there is any specific reason of the postponement and if they have 
envisaged a new date?  
Answer 
The Central People's Government of China announced in August 2011 the goal of basically 
achieving liberalization of trade in services be tween the Mainland and Hong Kong, China by the 
end of the National 12th Five-Year Plan period (i.e. end of 2015). Both sides are working closely 
and cooperatively towards this goal. In fact, fr om the signing of Supplement VIII to CEPA in 
December 2011 to the signing of Supplement X in August 2013, the two sides have been taking 
steps to achieve this goal progressively. 
 
Shanghai's new free-trade zone (FTZ) does not pose an immediate threat to Hong Kong, Secretary for Financial Services and the Treasury Chan Ka-keung said recently to the press (South China 
Morning Post, 3 October 2014), but urged local firms to prepare for competition. "There is no 
immediate competition from the free-trade zone but Hong Kong companies should not sit back and relax," he said. "There will be competition in future and we need to prepare ourselves as the game 
is changing." 
 EU Questions No 5 to 7 
Could HKC elaborate on how they see the relationship with Shanghai's FTZ will be? Does HKC 
expect the Shanghai Free Trade Zone to increase trade and investment opportunities with HKC, 
over time? Is HKC envisaging any reform to prepare the companies to the changing game, as defined by Mr Chan Ka-keung?  
 
Answer 
The Shanghai Free Trade Zone (FTZ) was set up in September 2013 to serve as a "testing ground" 
to propel the Mainland's opening-up and refo rms. The establishment of FTZ will bring both 
opportunities and competition to Hong Kong, Chin a (HKC), and the impacts in the long run will 
depend on the measures of the FTZ to be implemented. But generally speaking, the liberalization measures pioneered by the Shanghai FTZ, and the further opening-up of the Mainland economy 
that may follow, will enhance trade and investment opportunities with the Mainland, in which HKC 
is poised to benefit. The Hong Kong, China Government will forge a closer economic collaboration with Shanghai to seize the opportunities in the process.  
 
In the financial area, the establishment of the FTZ has brought about more financial cooperation opportunities between Shanghai and Hong Kong, China. As an international financial centre, Hong 
Kong, China has been the largest source of foreign investment in the Mainland as well as the 
largest intermediation platform for the Mainla nd's external direct investment. With the 
announcement and implementation of relevant measures in the FTZ, this will certainly facilitate and promote trade and investment between Shanghai and HKC. We will continue to play the role 
of an intermediation platform and a springboard for the Mainland so as to seize the ample business 
opportunities. For example, the relevant Mainland  authorities recently announced measures to 
facilitate cross-border RMB settlement and overseas  borrowing by the enterprises within the FTZ. 
This will further promote the circulation and use of offshore RMB funds and will further enhance 
the offshore RMB business in HKC.   
As an international financial centre, HKC faces an array of challenges. To maintain 
competitiveness, Hong Kong, China will make cont inuous efforts to enhance its inherent strengths 
and improve the efficiency of its existing financial platforms. This will also help us grasp new business opportunities that will come along when  the Mainland of China implements further 
financial reforms and liberalization. The establis hment of the FTZ will promote a wider use of the 
RMB and increase its liquidity, thereby accelerating its internationalisation. As the world's largest offshore RMB business centre, HKC will also  benefit from a wider use of the RMB . 
 
2.3.2.1 Closer Economic Partners hip Agreement with New Zealand 
Page 24, paragraph 2.20 
 
EU Question No 8 
Could HKC explain in more detail the difference between the "GATS floor" and the "GATS + offer floor" reservations scheduled  in the FTA with NZ?  WT/TPR/M/306/Add.1 
 
- 53 - 
 
 
  Answer 
"GATS floor" refers to the reservation of the righ t to adopt or maintain any measure that is not 
inconsistent with HKC's obligations under the re levant Articles of GATS, whereas "GATS + offer 
floor" refers to the reservation of the right to adopt or maintain any measure that is not 
inconsistent with HKC's obligations under the rele v a n t  A r t i c l e s  o f  G A T S  o r  w i t h  H K C ' s  R e v i s e d  
Offers on Services contained in the WTO document TN/S/O/HKG/Rev.1 of 16 June 2005.  
 
2.3.2.4 Closer Economic Partnership A rrangement (CEPA) with Mainland China 
Page 28, paragraph 2.38  EU Question No 9 
Could HKC explain whether, at some stage, they envisage widening the scope of the CEPA agreement so as to include Government Procurement and Competition Policy?   
Answer 
We will continue to explore further development of CEPA when appropriate. At this stage there is 
not substantive discussion on expanding the covera ge of CEPA to include the two specific areas 
mentioned in the question.  
 EU Question No 10 
We understand that HKC's Securities and Futures Commission (SFC) and China Securities 
Regulatory Commission (CSRC) have agreed in June 2014 on an arrangement for the mutual 
recognition of investment funds, that would facilita te cross-border sale of those funds including to 
retail clients. Neither the report by the Secretariat nor the Government reports mention such 
discussions. Could HKC give indication on the curre nt status of such agreement and details of its 
content?  
Answer 
The Securities and Futures Commission ("SFC") has already reached general consensus with the 
relevant Mainland authorities on the mutual recognition of funds arrangement. The arrangement is pending formal policy approval. Upon implementation, the arrangement will further promote the 
diversification of fund products in the Mainland and Hong Kong, China.  
 3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.2 Measures Directly Affecting Imports 
3.2.1 Customs procedures and requirements Page 34, paragraph 3.20 
 
HKC has signed AEO mutual recognition arrangements with Mainland China (October 2013), India (November 2013), and the Republic of Korea (February 2014), through which traders accredited as AEOs by the C&ED receive the benefits provided und er the AEO schemes in Mainland China, India, 
and the Republic of Korea, and vice versa. HKC is also holding discussions on an AEO MRA with 
Singapore.  
 
EU Question No 11 
What are the criteria for HKC to decide with which trading partner to negotiate a Mutual 
Recognition Agreement for Authorised Economic Operators? 
 
Answer 
In principle, we welcome negotiation with any trading partner for mutual recognition of similar programmes. So far, we have concluded such agreements with Mainland China, India and Republic 
of Korea and Singapore. 
 3.2.4.1 Internal taxes collected at the border  
Page 35, paragraph 3.27 and Table 3.3 
 EU Questions No 12 and 13 
Does HKC plan to review liquor duty as it did with wine, beer and liquor up to 30% leading to elimination of duty in 2008? Have HKC considered moving away from ad valorem duty, which penalises more expensive products despite having equal alcohol content to cheaper liquors?   WT/TPR/M/306/Add.1 
 
- 54 - 
 
 
  Answer 
HKC does not plan to review liquor duty. The adop tion of the ad valorem duty system in Hong 
Kong, China seeks to alleviate the concern on the re gressive effect of specific duty system, under 
which the duty on more expensive alcohol products represents a lower percentage of total cost as 
compared with cheaper products. We consider that the ad valorem duty system is simple to 
administer, and is in line with the "ability to pay" principle.  
When reviewing the duty of alcoholic products, HKC also needs to take into account policy issues 
such as" trade benefits" and "public heal th" apart from "fiscal considerations".  
 3.2.8 Sanitary and phytosanitary requirements 
Page 40, paragraph 3.55 
 "… Importers of certain high-risk food items are required to obtain an import licence and/or written 
permission from the FEHD prior to importation. High-risk food items include frozen confections; 
milk and milk beverage; and meat and poultry. Im ports of these products are confined to sources 
recognized by the FEHD. In general, game, me at, and poultry sources are country-specific; 
whereas sources for frozen confections, milk, and milk beverage, are manufacturing plant-specific. 
…" 
 EU Questions No 14 and 15 
The EU would like to receive detailed information on all the necessary steps of the import procedure to be followed for trading partners to export the so-called high risk food items (items 
referred to in the Secretariat Report) to HKC. The EU would like to receive details on the 
authorities involved in HKC in this import procedure and on the standard processing period for 
each of the steps of this application procedure providing thus an indicative timeline for completion of the whole application procedure. 
 
Answer 
(A) Import of frozen confections  
The Frozen Confections Regulation (Cap. 132AC) requ ires, inter alia, any frozen confection to be 
imported into Hong Kong, China (HKC) from a source of manufacture that has been approved by the Director of Food and Environmental Hygiene. When a food importer applies for approval, the 
following information is required: 
 (a) the full name and address of the frozen confection processing plant;  
(b) the law of the country of origin governing the production of frozen confections;  
(c) empty containers or wrappers of the frozen confection with labels; (d) information on the heat treatment method of the frozen confection and facilities, including 
 production equipment and water supply, in the processing plant; 
(e) a certificate from an appropriate authority in the country of origin for the purpose of: 
 - certifying the effectiveness and efficiency of the heat treatment method in sterilizing the 
 frozen confection and that the products have been handled, processed and packed under 
 hygienic conditions 
 - showing the chemical and bacteriological quality of the products; and  (f) details of ingredients, including colouring matters, stabilizers and sweeting agents, etc., and 
 their amount in the frozen confection. 
 When the above information is accepted by th e Food and Environmental Hygiene Department 
(FEHD), an approval will be granted to the importer. 
 
(B) Import of milk and milk beverages  
The Milk Regulation (Cap. 132AQ) requires, inter alia, any milk or milk beverage to be imported 
into HKC from a source of manufacture that ha s been approved by the Director of Food and 
Environmental Hygiene. When a food importer ap plies for approval, the following information is 
required: 
 WT/TPR/M/306/Add.1 
 
- 55 - 
 
 
  (a)  the full name and address of the milk or milk beverage processing plant; 
(b)  the law of the country of origin governing the production of milk or milk beverages;  
(c) empty containers of the milk or milk beverage with labels; (d) information on the heat treatment method of the milk or milk beverage and facilities, 
 including production equipment and water supply, in the processing plant;  
(e) a certificate from an appropriate authority in the country of origin for the purpose of -   - certifying the effectiveness and efficiency of  the heat treatment method in pasteurizing or 
 sterilizing the milk or milk beverage and that the products have been handled, processed 
 and packed under hygienic conditions   - showing the chemical and bacteriological quality of the products; and  (f)  a statement from the manufacturer confirming  the approximate shelf-life of the products.  
 
When the above information is accepted by FEHD, an approval will be granted to the importer.  
(C) Import of game, meat and poultry 
 Regulation 4(1)(a) of the Imported Game, Meat and Poultry Regulations requires meat or poultry 
to be imported with an official certificate issued by a competent authority recognised by Director of 
Food and Environmental Hygiene. If an importer wishes to import meat or poultry from a country where the authority responsible for issuing official certificates is yet to be recognised as a competent authority, he should ask the relevant authority or government to apply to FEHD in 
writing and provide the following information related to its country: 
 (a) the animal disease situation; 
(b) the legislation governing hygienic standards of meat or poultry; 
(c) the location of processing plants and facilities for handling, processing, production, storage 
 and transport of meat or poultry; 
(d) details of inspection of meat or poultry in the ante and post-mortem process and 
 qualifications of officers responsible for the inspection process; (e) a sample of the official veterinary and health certificate; and 
(f) the official name of the authority responsible for issuing veterinary and health certificates. 
 
Upon satisfactory assessment based on the above information, FEHD will recognise the competent 
authority of the exporting countries as the authority responsible for issuing official certificates. 
Importers could then apply to the FEHD for the import of game, meat and poultry from the 
exporting countries, which is to be accompanied by an official certificate issued by the competent 
authority. 
 
Page 40, paragraph 3.57  "… In line with notifications from the OIE, the Ce ntre for Food Safety will temporarily suspend 
imports of poultry meat and poultry products (including poultry eggs) for human consumption 
from areas where avian influenza in poultry is reported…"  
EU Questions No 16 and 17 
The World Organisation for Animal Health (OIE) standard on avian influenza stipulates clearly 
different trade conditions for specific AVES commo dities making a difference between the detection 
of Low or High pathogenicity avian influenza (LPAI and HPAI). The EU would like to understand whether HKC makes a difference between LPAI and HPAI with regard to the temporarily 
suspension for imports of poultry meat and poultry products (including eggs). 
 The EU would appreciate to receive a detailed clarification from HKC on this aspect in the light of the relevant OIE standard.  
 
Answer 
Hong Kong, China (HKC) establishes import protocols and/or bilateral agreements for the import of 
poultry and poultry products with individual exporting countries. The competent authority is 
required to issue an official health certificate attesting that such poultry commodities must come from a notifiable avian influenza free area. To protect the public health of local population, import 
suspension would be imposed when a confirmed LP/HP avian influenza outbreak is reported by the 
OIE or the competent authority of an exporting co untry. HKC would consider lifting the suspension 
when the affected areas regain their AI free status. WT/TPR/M/306/Add.1 
 
- 56 - 
 
 
  3.4.2 Competition policy and price controls 
3.4.2.1 Competition policy 
Page 51, paragraph 3.110  
According to the report, the HKC's Chief Executive has the power to exempt a "specified 
agreement or conduct or a specified class of agreement or conduct from the First or Second Conduct Rule on" exceptional and co mpelling" public policy grounds".  
EU Question No 18 
Could HKC clarify whether the Competition Commission intend to issue guidelines on the 
interpretation of this provision/power?   
Answer 
The Competition Ordinance ("CO") empowers the Chief Executive in Council to make orders to 
specified agreement or conduct which is exempt from the First or Second Conduct Rule on" 
exceptional and compelling" public policy grounds. The Competition Commission ("Commission") 
may then make a decision upon application on whether or not an agreement or conduct is exempt by virtue of the public policy exemption. The Co mmission has issued draft guidelines on how it will 
handle such applications. 
 EU Question No 19 
The EU welcomes the progress made during review period on Competition legislation. Does the 
HKC have plans to revisit legislation to include merger controls or application to statutory bodies?  
 Answer 
HKC will conduct a review on the CO after the CO comes into full operation for a few years, taking account of the operational experience acquired an d the issues encountered. The review will include 
merger controls and application to statutory bodies. 
 
3. 4. Other measures affecting production and trade 3.4.4 Government procurement Page 55, paragraph 3.124  
 
According to the report, government procurement in HKC is guided by the twin policy objectives of 
achieving best value for money and open and fair competition. Furthermore, in 3.124 it is said that 
"…the authorities are committed to providing equal opportunities for domestic and foreign 
suppliers and service providers, participating or competing in government procurement ". 
 
Despite this, in Hong Kong it seems that local experience is required as a precondition to 
participate in contracts covered by the GPA.  EU Questions No 20 and 21 
Being aware that a required experience may be demanded by a contracting authority, could HKC justify the existence of probation periods and the limits of value of the contracts for which companies can bid during such periods, in compliance with WTO GPA?  
 
Answer 
The requirements on probation periods and the limits of value of the contracts for which 
companies can bid are applicable to public works contracts that adopt the procurement mode of 
selective tendering.   Under selective tendering, contractors on the relevant List of Approved Contractors for Public 
Works ("Approved Lists") are invited to submit te nders. Application for admission to the Approved 
Lists may be submitted by any contractors at any time. In considering a contractor's admission to the Approved Lists, both HKC and overseas ex periences are counted. When a contractor is 
admitted to the Approved List, he is on probation status, eligible to bid and be awarded 
government works contracts of values commensurate with the relevant categories/groups/status. The probation mechanism, which is part of the qualification procedures, allows the freshly 
admitted contractor to demonstrate his management and technical abilities to qualify for works 
under the confirmed status. As the probation mechanism focuses on the contractor's capability, no minimum length of a probation period is set. When the contractor has satisfactorily acquired the relevant works experience in accordance with the criteria, he may apply for confirmation. All WT/TPR/M/306/Add.1 
 
- 57 - 
 
 
  contractors, local and overseas, are subject to the same admission, probation and confirmation 
mechanism.  
 Will the HKC look at ways to increase number of companies eligible to bid for government 
procurement and tendering?  
 Answer 
Adoption of open tendering is the norm in government procurement in HKC. HKC will continue to promote open competition through fair, competitive and transparent procurement procedures and practices. In particular, procuring entities are reminded to keep the essential requirements to the minimum to promote competition. 
 
For public works, application for admission to the Approved Lists of contractors may be submitted by any contractors at any time. The admission process is open, fair, consistent and non-
discriminatory. Detailed information of how to apply or admission to the approved lists is available 
at the Development Bureau's website: http://www.devb.gov.hk/en/home/index.html . All notices of 
tender invitation for public works are published in the HKSAR Government Gazette at the following 
website: http://www.gld.gov.hk/egazette . Contractors from any jurisdictions can have easy access 
to information on the tendering opportunities in HKC and the admission procedures.  
 EU Questions No 22 and 23 
Does the HKC SARG plan to review Government Procurement practice? Could HKC clarify what 
weighting is given to innovation in government tenders?  
Answer 
HKC regularly reviews its procurement procedures and practices with a view to encouraging 
competition, enhancing efficiency and keeping abreast of the latest developments and changing 
needs of the respective industries.  
Could HKC clarify what weighting is given to innovation in government tenders?   Answer 
The use of input-based specifications at the outset might limit innovative solutions or new technologies or products which tenderers might be able to offer, and restrict competition. With a 
view to attracting competitive offers from innovative tenderers who are capable of meeting the 
performance levels required in a more cost effective manner, procuring entities are encouraged to 
adopt output- or performance-based, rather than input-based, specifications.  
For public works contracts where specific aspects requiring innovation are identified, we may 
include this attribute in the tender evaluation. The weighting of this attribute is contract specific and would be decided case-by-case. The weightings of attributes in the tender evaluation are set out clearly in the tender documents.  
 
Page 57, paragraphs 3.136 - 3.137  
EU Questions No 24 
What is respective remit of competence of the various remedy bodies- Legislative Council, 
Independent Commission against corruption, Au dit Commission and Office of Ombudsman?  
 
Answer 
Hong Kong, China (HKC) is committed to maintaining an open and fair procurement system. Any contractor/supplier/service provider who feels aggrieved may lodge a complaint with the procuring 
entity or the relevant tender board/committee considering that particular tender. 
 In addition, HKC's government procurement system has an independent scrutiny mechanism to 
ensure due process and accountability. The Independent Commission Against Corruption deals 
with allegations involving corruption. The Office  of Ombudsman deals with complaints involving 
misadministration by the government departments/agencies and specified public bodies. Members 
of the public who are aggrieved by government actions may lodge complaints to the Legislative 
Council, which has the power to raise questions on the work of the Government. As for the Audit Commission, it is empowered to examine, inquire into and audit government accounts in respect of public moneys and stores. WT/TPR/M/306/Add.1 
 
- 58 - 
 
 
  EU Question No 25 
Is there a second instance after the Review Body on Bid Challenges?  
 Answer 
While decisions of the Review Body on Bid Challenges are final and conclusive, complainants may lodge a fresh challenge in respect of the same procurement if new basis of challenge could be raised within specific timeframe.  
 
EU Question No 26 
Is there any stand still period prior to the conc lusion of a contract after the decision on the 
successful bidder is taken? 
 
Answer 
Pursuant to the Rules of Operation of the Review Body on Bid Challenges ("Review Body"), the 
Review Body may, on the establishment of panel and before the final decision, recommend any 
appropriate rapid interim measures to preserve commercial opportunities of the complainant.  
3.4 Measures Affecting Production and Trade  
3.4.5 Intellectual property rights 3.4.5.1 Legislation Pages 58/59, paragraph 3.139 and Table 3.12:  
 
EU Questions No 27 to 30 
The EU would like to receive the following detailed information: 
 
- With reference to the registered industrial design: What are the substantive requirements for registered industrial designs, apart from nove lty? Are these requirements examined during the 
application stage? 
 Answer 
In Hong Kong, China, "design" is defined under Registered Designs Ordinance (Cap. 522) to mean 
features of shape, configuration, pattern or orname nt applied industrially to a finished article which 
appeal to and are judged by the eye, but does not include a method or principle of construction, or 
features of shape or configuration dictated solely  by the function of the article or are dependent 
upon the appearance of another article of which the article is intended to form an integral part. In 
order to be registrable, a design must be new. A de sign is not registrable in respect of an article of 
manufacture if aesthetic considerations are not normally taken into account to a material extent by 
persons acquiring or using the articles. Further, a design the publication or use of which would be 
contrary to public order or morality is not registrable. The Registrar only conducts formality examination for the applications and shall register the design if the application for registration is found to have satisfied the formal requirements. The Registrar may refuse an application for 
registration of a design if he determines th at the application does not satisfy the formal 
requirements or that, on the face of the application, the design is not new or is not registrable for any other reason. 
 
 With reference to the unregistered industrial design: Does the protection for unregistered 
industrial designs under copyright law apply the sa me substantive requirements (as the registered 
industrial design protection)? Is the concept of "fir st marketing", as starting point of the protection 
for unregistered industrial designs, to be understood in a world-wide sense?  Answer 
Under the Copyright Ordinance, a unregistered industrial design may be protected as an artistic work irrespective of its artistic quality subject to the originality requirement. Originality is not defined in the Ordinance and its meaning has to be deduced from case law. "Original" in this 
context means that the work must originate from the author, in the sense that it must not be 
slavishly copied from another work. The author is required to have expended more than negligible 
or trivial effort or relevant skill in the creation of the work. This is essentially a question of fact and 
degree and can only be determined on the facts of the particular case. 
 WT/TPR/M/306/Add.1 
 
- 59 - 
 
 
  "First marketing" for the purpose of determin ing the duration of copyright protection for 
unregistered industrial designs refers to marketing in HKC or elsewhere. This follows from the 
express provision in section 87(1)(b) of the Copyright Ordinance.  
 
 With reference to the geographical indications: Is there no sui generis  system for protecting 
geographical indications in place? If not, might HKC envisage implementing a similar system as it 
is already in place in Mainland China (at AQSIQ and the Ministry of Agriculture)? 
 
Answer 
There is no sui generis system for protecting geographical indications in Hong Kong, China. As stated in the report, geographical indications may be registered as collective or certification marks 
under the Trade Marks Ordinance (Cap. 559), and the use of a false geographical indication 
applied to goods in a fashion calculated to mislead consumers may be a criminal offence under the Trade Descriptions Ordinance (Cap. 362). Where appropriate, it is also possible to protect a 
geographical indication through the common law action of passing off. The current system has 
worked well and there is no plan to implement in HKC a similar system as it is already in place in Mainland China.  
 
 With reference to trade secrets: Are there figures available on the number of trade secret 
cases brought before the courts in HKC? Accord ing to the present law, what is the maximum 
punishment (damages / imprisonment) in trade secret cases? 
 
Answer 
HKC has no specific statutory provision for trade secrets imposing either civil or criminal sanctions. 
Hence, there is no maximum punishment (damages/imprisonment) prescribed in our laws. Trade 
secrets are protected by the common law of confiden ce in HKC, for which civil remedies including 
damages may be available. The amount of damage s the court may award will depend on the facts 
and circumstances of each case, so as to compensate for any harm done to the trade secret 
proprietor. The courts in HKC do not publish statistics on the number of trade secret cases brought before them.  
 
EU Questions No 31 and 32 
Could HKC share more information on the cooperation with the PRC on IPR protection? Are there 
regular exchanges, cooperation programmes? 
 
Answer 
The Intellectual Property Department (IPD) of HKC Government maintains close liaison with its 
relevant Mainland counterparts at the national leve l, as well as authorities in the Pan-Pearl River 
Delta region and Guangdong Province to promote the protection and management of intellectual 
property (IP) rights.   
Collaboration with the State Intellectual Property Office (SIPO) of Mainland China and Economic 
Services of the Government of the Macao SAR 
 
Since 2000, IPD has co-organised with SIPO and the Economic Services of the Government of the 
Macao SAR the "Intellectual Property Symposium" a nnually in order to keep the industries abreast 
of the latest development of IP in the three resp ective regions of Mainland China, Macao SAR and 
Hong Kong SAR.  
 Collaboration with SIPO 
 
In November 2011, IPD signed a co-operation agreement with SIPO to strengthen co-operation in 
the IP area. As part of the government's efforts to implement the "original grant" and refined short-term patent systems in HKC, IPD and SIPO further signed "the Co-operation Arrangement in 
the Area of Patent in Hong Kong" in December 20 13 under which SIPO agrees to provide technical 
assistance and support to IPD for substantive examination of the patentability of inventions and the training of staff for operating and administering the new patent system.  
 WT/TPR/M/306/Add.1 
 
- 60 - 
 
 
  Collaboration with Counterparts in the Pan-Pearl River Delta (Pan-PRD) of Mainland China 
 
IPD also joined the IP cooperation agreement concluded between the Macao SAR and the nine 
Pan-PRD provinces of Fujian, Jiangxi, Hunan, Gu angdong, Guangxi, Hainan, Sichuan, Guizhou and 
Yunnan in 2005, to promote comprehensive collaboration on IP protection, and enhance the 
overall strength and competitiveness in the Pan-PRD region. Under the agreement, IPD has been co-operating with the provinces/regions to promote creation, protection, administration and 
application of IP rights so as to strengthen the order of market economy, speed up business and 
technology transfer, foster growth of inter-regional investment and boost the joint economic development of the Pan-PRD region. Joint Conf erences and Pan-PRD staff exchange programmes 
have been organised regularly for the provinces/ regions to exchange views and keep abreast of 
the latest development of IP in the different places. 
 Collaboration with Counterparts in the Guangdong Province of Mainland China 
 In August 2003, a Guangdong/Hong Kong Expert Gr oup on the Protection of Intellectual Property 
Rights under the Guangdong/Hong Kong Co-operation Joint Conference was set up which aimed at 
enhancing exchanges and co-operation on various aspects of IP including promotion and 
education, training, enforcement, research stud y and information dissemination. The Expert Group 
meets annually. Under the framework of the Expert  Group, IPD has been co-operating with the 
Guangdong counterparts on promoting the developm ent of IP trading in both places, and IP 
trading has been one of the focuses under the st rategic plan of the Expert Group since 2013. 
 Since 2007, IPD and the Guangdong Intellectual Property Office (GDIPO) has signed four 
agreements on Guangdong/ Hong Kong Co-operation on Intellectual Property with a view to 
strengthening and actively promoting the co-operation and development in the IP area in Guangdong and Hong Kong, China. Building upon the close co-operation between IPD and GDIPO 
in the past years, both sides are committed to de epening and promoting co-operation on IP in HKC 
and Guangdong and fostering the developm ent of IP trading in both places.  
 3.4.5.1.2 Patent Law 
Page 60, paragraphs 3.144 and 3.145:  
 EU Question No 33 
Would it be possible to know the number of standard patents and short-term patents granted in HKC during the recent years?   
Answer 
The statistics are as follows: 
 Number of standard patent granted 
Year 2008 2009 2010 2011 2012 2013 2014 
(as at 30.09) 
Number of grants 4,001 5,625 5,353 5,050 5,035 6,564 4721 
 Number of short-term patents granted 
Year 2008 2009 2010 2011 2012 2013 2014 
(as at 30.09) 
Number of grants 435 474 522 517 515 538 350 
 Page 60, 3.4.5.1.2 Patent Law, point 3.148 
 
EU Question No 34 
Does HKC (IPD) intend to carry out the substantive examination for short-term patents itself, or via other patent offices?  
 
Answer 
The Government announced its policy decision in February 2013 on, amongst others, refining the 
short-term patent system, notably making substantive examination a pre-requisite to 
commencement of infringement proceedings. The substantive examination would be outsourced to other patent office(s) at the beginning pending establishment of an indigenous examination 
capacity. In December 2013, the Intellectual Property Department of HKC and State Intellectual WT/TPR/M/306/Add.1 
 
- 61 - 
 
 
  Property Office of Mainland China (SIPO) signed  the "Co-operation Arrangement in the Area of 
Patent" under which SIPO has agreed to provide technical assistance and support to the Patents 
Registry of HKC in substantive examination and the training of manpower.  
 
Page 60, 3.4.5.1.2 Patent Law, point 3.149 
 EU Question No 35 
Does the training of IPD by SIPO on substantive examination of patent applications imply that IPD will carry out at least a part of the substant ive examination under the OGP system (note: the 
Report of HKC, point 4.50, mentions that the subs tantive examination will be outsourced to other 
patent office(s))? 
 
Answer 
Taking into account the lead time required to  build an indigenous capacity for conducting 
substantive examination, HKC will outsource substantive examination to a reputable and 
authoritative patent office at the beginning of operating its original grant and refined short-term patent systems so as to ensure that the patents granted under the new regime are of a high 
quality. This underlies the signing of the "Co-operation Arrangement in the Area of Patent" 
between SIPO and IPD of HKC under which SIPO ha s agreed to provide technical assistance and 
support to the Patents Registry of HKC in substa ntive examination and the training of manpower. 
Depending on users' acceptance of the new regime and positive developments that may be 
brought about, consideration may be given to developing in incremental stages in-house 
substantive patent examination capacity (e.g. focusing on some specific technological areas on which HKC has acquired considerable expertise).  
 
Page 61, 3.4.5.1.2 Patent Law, point 3.150  
EU Question No 36 
Would it be possible to get further explanations on the understanding of "not being commercially 
worked in HKC" in the context of compulsory licences under the Patents Ordinance?   
Answer 
The term "commercially worked" is not defined in the Patents Ordinance. Given that the relevant 
statutory provisions containing reference to the term are modelled on the corresponding statutory 
provisions in the UK, the interpretation of the term in the UK case law should be of reference value 
for the courts in HKC. In particular, we note that  under the relevant UK case law, the term should 
be construed in its plain and ordinary meaning. The straightforward manufacture of patented 
goods for the purposes of trade, whether or not th e invention in question has been exploited to the 
full, has been held as an example of "commercial working". In addition, section 6(4) of the Patents 
Ordinance provides that unless the context otherw ise requires, a reference to "an invention being 
worked in Hong Kong" includes a reference to th e invention "being worked by importation into 
Hong Kong for the purpose of putting the patented product on the market or stocking it for that 
purpose". Hence, the legal concept of "commercially worked in HKC" should also cover importation of a patented product from abro ad to HKC for marketing apart fr om manufacture of a patented 
product in HKC.  
 Page 61, 3.4.5.1.4 IP trading, point 3.154 
 
EU Question No 37 
Could HKC clarify whether they intend to set up a specialised IPR Court or whether such a specialised IPR Court already exist? 
 
Answer 
HKC does not have a specialised IPR Court under its judicial system. There is no plan for setting 
one up either. 
 Page 62, 3.4.5.2 Enforcement, point 3.160 
 
EU Question No 38 
Would it be possible to receive enforcement figures on other IP rights than copyrights and trademarks (in particular, on patents and designs)? WT/TPR/M/306/Add.1 
 
- 62 - 
 
 
  Answer 
Under the laws of Hong Kong, criminal sanctions are only available against infringements of 
copyright, trademarks and false trade descriptions for IPR protection. As such, there is no enforcement figure for other IPRs such as patents and designs.  
 
Page 62, 3.4.5.2 Enforcemen t, point 3.160, table 3.13 
 
EU Question No 39 
Could the figures of this table be divided into the enforcement numbers as regards imported goods 
and as regards exported goods?  
Answer 
The Customs and Excise Department (C&ED), the sole enforcement arm of the IPR laws, is 
responsible for taking criminal enforcement actions against infringing activities. Table 3.13 shows 
the overall numbers of cases, seizures and arrests in relation to IPR infringements. We do not 
maintain breakdown figures and therefore cannot provide the information.  
 
EU Question No 40: In view of the continuous si gnificant problem with counterfeiting goods in the 
EU originating from HKC (see Annex 5 of the last EU report on customs enforcement of intellectual 
property rights, please see hyperlink below), does HKC consider cooperating more closely with EU customs authorities and ports in the near future? 
http://ec.europa.eu/taxation_customs/resources/documents/customs/customs_controls/counterfei
t_piracy/statistics/2014_ipr_statistics_en.pdf . 
 
Answer 
The C&ED and its EU counterparts have been exchanging intelligence and seizure particulars in IPR 
enforcement. To further enhance the cooperation in  combating IPR infringing goods throughout the 
supply chain, the two sides intend to sign an Action Plan in the upcoming Joint Customs 
Cooperation Committee Meeting to be held in the near future.  
 4 TRADE POLICY BY SECTOR 
4.1 Overview 
Page 65, paragraph 4.5 (togethe r with box 4.1 at page 75) 
 
According to the report, the HK -EFTA FTA, under which the serv ices regime defined in the 
agreement (including standstill and reservations) is applicable erga omnes.  
EU Question No 41  
Could HK elaborate on this? How does this erga omnes regime relate to HK GATS obligation and to 
its position in the DDA and TiSA?   
Answer 
Hong Kong, China's applied services regime is liberal and generally applied erga omnes as noted 
by the Report by the Secretariat. Commitments  of Hong Kong, China under the HK-EFTA FTA 
largely reflect our liberal applied services regime. 
 As a staunch supporter of free trade, Hong Kong, China has been championing services trade 
liberalization. Hong Kong, China looks forward to further services liberalization by WTO Members, 
including TISA participants, to enhance market access to services sectors and promote trade in services.   
4.5 Services  
4.5.5.2 Trade regulatory regimes Page 107, paragraph 4.78 
 
According to the report, the regulatory regimes for distribution appear very liberal and the sector is largely unregulated .  
 WT/TPR/M/306/Add.1 
 
- 63 - 
 
 
  EU Question No 42 
Considering that there is no specific regulation establishing economic needs tests for the creation 
of supermarkets or any legislation regulating market access for franchising, can HKC demonstrate whether local and foreign operators, in the supermarkets and hypermarkets sector have equal 
opportunities? 
 Answer 
HKC is committed to creating a business-friendly environment conducive to overseas investments 
in a free and open market with emphasis on provid ing a level-playing field for all companies. There 
is no legislation prohibiting the establishment of fo reign distributors in HKC. The current regulatory 
environment benefits numerous retailers in fa shion, homeware and accessories as well as 
supermarkets in setting up their operations he re. A number of foreign hypermarket chains are 
operating sourcing offices (such as Meijer), and many global retailers (such as Ikea, Marks and Spencer, H&M, Inditex, AEON Stores, Uniqlo and Muji) are present in the city, either as wholly-
owned subsidiaries or on a franchise basis. It is a business decision for hypermarket and 
supermarket operators, both local and foreign, on whether or not to start business in HKC taking into account relevant factors such as market condition. 
 
WT/TPR/G/306 –Government's Report  1 INTRODUCTION 
Page 4 
 According to the report, in 2013 the domestic labour market was in a state of almost full 
employment.  
 EU Question 43 
Does HKC have any plans to open up  labour market for skilled labour? 
 Answer 
Hong Kong, China welcomes people with valuable  skills, knowledge and experience from around 
the world to work and live here. The Security Bu reau and the Immigration Department administer 
an open immigration regime for non-local tale nts and professionals, who may enter HKC for 
employment or residence through various admission schemes: 
 
(a) General Employment Policy – allows overseas, Taiwan and Macao professionals to take up  employment in HKC. It is largely market-drive n as applicants must have first secured a job 
 that cannot be readily taken up by the local workforce and is remunerated at the prevailing 
 market rate. There is no quota or sector restriction; (b) Admission Scheme for Mainland Talents an d Professionals – also a market-driven, non-
 quota, non-sector specific scheme with eligibility criteria similar to the General Employment 
 Policy, but is only applicable to Mainland professionals; 
(c) Quality Migrant Admission Scheme – a points-based scheme that allows talents from around  the world to come to HKC for residence withou t first securing an offer of local employment. 
 Applicants may choose to be assessed under the General Points Test (for highly skilled or 
 talented persons) or the Achievement-based Points Test (for individuals with exceptional  skills or talents and outstanding achievements). There is no sector restriction and an annual 
 quota of 1,000; and 
(d) Immigration Arrangements for Non-local Graduates – allows non-local fresh graduates of  full-time locally-accredited local programmes at degree level or above to stay in HKC for a  year to take up employment freely. Returning graduates are also eligible if they are offered 
 a job commonly taken up by degree holders and their remuneration is in line with the 
 market level. There is no quota or sector restriction.  
(e)  In addition to the schemes admitting fore ign and Mainland professionals, we also have 
 established mechanisms for employers with ge nuine difficulties in finding suitable staff 
 locally to import full-time live in domestic helpers and other workers at technician level or  below.  
 WT/TPR/M/306/Add.1 
 
- 64 - 
 
 
  Page 15, 4.1.9 Intellectual Property Trading, point 4.40 
EU Question 44 
Does the set-up of a Working Group for IP "Tradi ng" imply that HKC extends its focus, beyond IP 
awareness and protection, to trading (licencing) of IP assets? 
 
Answer 
In a knowledge-based economy, IP has become increasingly important to drive innovation and 
growth. HKC fully realise the opportunities presente d, and wish to capitalise on its unique strength 
and potential to develop into an IP trading hub ag ainst the backdrop of a remarkable growth in the 
global creation and exploitation of IP in recent years, as well as the increasing demand for IP in 
the region. In March 2013 HKC set up the Working Group on IP trading (the Working Group) to 
advise on the overall strategies to promote its development as a premier IP trading hub in the region, and also explore specific policy and measur es in support. After deliberations, the Working 
Group endorsed in end-2013 a strategic framework (the Framework) which covers four strategic 
areas, namely enhancing the IP protection regime; supporting IP creation and exploitation; 
fostering IP intermediary services and manpower capacity; and pursuing promotion, education and 
external collaboration efforts. Under the Framework, the scope of IP education and promotion 
efforts of HKC will cover raising awareness of innovation and IP management among the SMEs, 
and also support SMEs to explore potential IP solutions to further develop and expand their business, such as the types of IP that may be available for sale or exploitation in their target 
markets.  
 Page 16, 4.3.1 Legislation, point 4.50 
EU Question No 45 
Is HKC planning to outsource the substantive ex amination for the OGP system to SIPO (Mainland 
China) only, or to patent offi ces of other countries as well? 
 
Answer 
As part of the Government's efforts to implement the "original grant" and refined short-term 
patent systems in HKC, IPD and SIPO signed the "Co-operation Arrangement in the Area of Patent 
in Hong Kong" in December 2013 under which SIPO agrees to provide technical assistance and 
support to IPD for substantive examination of the patentability of inventions and the training of 
staff for operating and administering the new patent system.   
Whether the assistance of other patent offices is necessary in future would be subject to review 
having regard to operational needs.  
 
Page 16, 4.3.1 Legislation, point 4.52 
EU Questions No 46 to 48 
Could HKC indicate the timetable for putting the Copyright Amendment Bill into force?  As regards 
the planned statutory "safe harbour" of Online Provider Services: How does the foreseen proposal 
intend to treat cases of negligent behaviour? How would HKC evaluate the present situation as regards Collective Management Organisations (CMO) in HKC? 
 
Answer 
In June 2014 the Government introduced into the Legislative Council the Copyright (Amendment) 
Bill 2014 (the Bill) containing a package of legislative proposals including the statutory "safe 
harbour" provisions for Online Service Providers (O SP). The Bill is currently under the scrutiny of 
the Bills Committee in the Legislative Council. 
 
The proposed safe harbour provision is underpinned by a voluntary Code of Practice which sets out 
suggested practical guidelines and procedures for OS Ps to follow when being notified of infringing 
activities on their service platforms. OSPs who comp ly with the Code of Practice will be treated as 
having taken reasonable steps to limit or stop th e infringement in question and will not be liable 
for any monetary claim for copyright infringement th at occurs on the provider's service platform. If 
a service provider has, in good faith, removed an y material, or disabled access to any material or 
activity pursuant to a notice of alleged infringe ment, the provider is not liable to any person for WT/TPR/M/306/Add.1 
 
- 65 - 
 
 
  any claim made in respect of the removal or disa bling, whether or not the relevant material or 
activity is ultimately determined to be infrin ging. Any person who knowingly makes any statement 
in a notice of alleged infringement or counter notice will be liable to criminal and/or civil liability.   
Currently, there are 5 registered licensing bodies seen as the major Collective Management 
Organisations for various industries, namely: 
 1. Composers and Authors Society of Hong Kong Limited  
 2. Hong Kong Recording Industry Alliance Limited  
 3. Phonographic Performance (South East Asia) Limited  
 4. The Hong Kong Copyright Licensing Association Limited  
 5. The Hong Kong Reprographic Rights Licensing Society Limited  
 
The registration of copyright licensing bodies is based on a voluntary registration scheme which aims to enhance the transparency of these bodies by requiring registered licensing bodies to make 
available to the public essential information such as scales of royalty charges for different uses. 
The Director of Intellectual Property is the Registrar of Copyright Licensing Bodies and is empowered to establish and maintain a register of copyright licensing bodies, and to specify the 
form and manner of registration or renewal of registration. The register is open for public 
inspection.   Page 17, 4.3.2 Enforcement, point 4.54: 
EU Question No 49 
How does the recently implemented "Lineament Monitoring System" take private data protection 
into account? 
 
Answer 
The recently implemented "Lineament Monitoring System" (LMS) only obtains data from the open 
domain and collects information posted onto open internet platforms such as discussion forums, 
auction site platforms etc.  
 
4 SUSTAINING LONG TERM GROWTH AND IMPROVING BUSINESS ENVIRONMENT 
4.1.4 Business and professional services Page 12  
According to the report, HKC wants to further develop and position itself as a legal services hub in 
the Asia-Pacific region.   
EU Questions No 50 and 51 
Could HKC clarify which is the status of legal services? Could HKC provide more information on the 
main economic indicators and the regulatory  regime, and any plans in terms of further 
liberalization, under the FTAs and/or applied erga omnes, of legal services?  
 Answer 
Two economic indicators about the legal services for 2012 are provided below: 
 
Contribution of legal activities to GDP: 0.6% Exports of legal services : HK$ 2,068.6 million 
 
Who may practise domestic law in Hong Kong, China? 
 Lawyers are admitted to practise in Hong Kong, China either as solicitors or barristers. There are 
different admission requirements for the two branches of the profession. 
 Such requirements are provided in the Legal Prac titioners Ordinance (Chapter 159, Laws of Hong 
Kong") ("the Ordinance"). Pursuant to the Ordina nce, the two professional bodies, namely the Law 
Society and the Bar Association, are vested with the power to regulate solicitors and barristers in areas such as practice, conduct, discipline, ex amination and continuing education by way of 
subsidiary legislation. The Ordinance provides that the rules and regulations made by the Law 
Society and the Bar Association require the prior approval of the Chief Justice.  WT/TPR/M/306/Add.1 
 
- 66 - 
 
 
  Solicitors 
 
Admission of solicitors with local qualifications in Hong Kong, China 
 
The Court may admit a person as a solicitor of the High Court if the Court considers him a fit and 
proper person to be a solicitor and who has complied with the requirements prescribed by the Law Society Council with respect to the employment of a trainee solicitor, passing of examinations and 
completion of courses as well as satisfying the prescribed residency requirements: sections 4(1)(a) 
and 4(1A) of the Ordinance.  A person may only enter into a two-year trainee so licitor contract if he has passed or received a 
certificate of completion or certificate of sati sfactory completion as the case may be in the 
Postgraduate Certificate in Laws and such examin ation or course required by the Law Society: 
section 7 of the Trainee Solicitor Rules (Chapter 159J, Laws of Hong Kong). 
 
Overseas lawyers may qualify as solicitors in Hong Kong, China 
 
In the case of a person who seeks admission on the basis of qualifications acquired outside Hong 
Kong, China, he must have complied with the re quirements prescribed by the Council of the Law 
Society of Hong Kong: section 4(1)(b) of the Ordinance.  
The applicant must be an overseas lawyer, namely, a person entitled to practise the law of a 
foreign jurisdiction: sections 1 and 2(a), Overseas Lawyers (Qualification for Admission) Rules (Chapter 159Q, Laws of Hong Kong) ("the OL (QA) Rules"). 
 
The applicant must be a person of good standing in his jurisdiction of admission: section 2(b) of the OL(QA) Rules. 
 
Through an accreditation scheme under the Rules, an overseas lawyer from common law or non-common law jurisdictions can gain admission as Hong Kong, China solicitor if he satisfies the requirements set out in section 4 or 5 respecti vely of the OL(QA) Rules including passing the 
Overseas Lawyers Qualification Examination. 
 Barristers 
 Admission of barristers with local qualifications in Hong Kong, China 
 
Under the current legislation, the Court may admit a person to be a barrister if the applicant is 
considered to be a fit and proper person to be a barrister and has complied with the general admission requirements, including passing the requ ired examinations to be set by the Bar Council 
and paying any required fee: section 27(1)(a) to (c) of the Ordinance.  
 
Overseas lawyers may qualify as barristers in Hong Kong, China 
 
Under section 4(2)(a)-(d) of the (Barristers (Qualif ication for Admission and Pupillage) Rules ("the 
B ( Q A P )  R u l e s " )  ( C h a p t e r  1 5 9 A C ,  L a w s  o f  H o n g  K o n g ) ,  a n  o v e r s e a s  l a w y e r  i s  q u a l i f i e d  f o r  admission as a barrister if he: 
(a) holds a certificate of admission as a legal pr actitioner from the appropriate authority in his 
 jurisdiction of admission and such certificate of admission is valid and currently in force; (b) has practised for at least 3 years in his jurisdiction of admission; (c) is a person of good standing in his jurisdiction of admission; and 
(d) has passed the Barristers Qualification Examination. 
 Residency requirements 
 Under section 27(2)(b) of the Ordinance, a person who applies for admission as a barrister (whether with local or overseas qualifications) would need to satisfy one of the following residency 
requirements : 
- he has resided in Hong Kong, China for at le ast 3 consecutive months immediately before 
 the date of his application for admission;  - he has been ordinarily resident in Hong Kong, China for at least 7 years; or WT/TPR/M/306/Add.1 
 
- 67 - 
 
 
  - he has been physically present in Hong Kong, China for at least 180 days of each of at least 
 7 years within the 10 years immediately preceding the date of his application for admission. 
 Other requirements 
 In addition to the above requirements, a person who seeks admission as a barrister must enter into pupillage for a period of not less than one year in the chambers of a practising barrister of not 
less than 5 years' standing in Hong Kong, China and complete at least 6 months of pupillage: 
sections 4(3) and 10(1)(a) of the B(QAP) Rules.  An overseas lawyer may also be admitted by the Court, on an ad hoc basis, as a barrister for the 
purpose of any particular case or cases, provided that he has substantial experience in advocacy in 
a court and has the qualification acquired outside Hong Kong, China to engage in work that would, if undertaken in Hong Kong, China, be similar to that undertaken by a barrister in the course of 
ordinary practice as a barrister in the High Court or Court of Final Appeal: section 27(4) of the 
Ordinance.  
 
How foreign lawyers may participate in intern ational law practice and the professional 
requirements 
 
Entry and practice of foreign lawyers in Hong Kong, China 
 Foreign lawyers are required to register as foreign lawyers with the Law Society of Hong Kong in order to practise foreign law in Hong Kong, China: section 39A of the Legal Practitioners Ordinance 
("the Ordinance") (Chapter 159, Laws of Hong Kong).  
 In order to qualify for registration, a foreign lawyer must show that: 
 
(a) he or she is a person of good standing in the foreign jurisdiction in which he or she is  qualified to practise law; and (b) he or she has satisfied the Law Society of Hong Kong that he or she is a fit and proper 
 person to be registered; and 
(c) he or she is covered by professional indemnity insurance.  
(Sections 3 and 4 of the Foreign Lawyers Registration Rules ("FLR Rules") (Chapter 159S, Laws of 
Hong Kong))  
As to the scope of practice, a registered foreign lawyer is prohibited from advising on Hong Kong, 
China law. A foreign lawyer may give ad vice on or handle any matter which: 
 (a) is expected to be subject to the law of a jurisdiction other than Hong Kong, China; or 
(b) involves private or public international law or conflict of laws.  
 (Section 12(2) of the FLR Rules) 
 
Entry and practice of foreign law firms in Hong Kong, China 
 
All foreign law firms must register with the Law Society before they may practise foreign law in 
Hong Kong, China. Pursuant to section 39B(1) of the Ordinance, a foreign law firm may apply to the Hong Kong Law Society for registration as a foreign law firm if all partners who intend to practise in Hong Kong, China are foreign lawyers or the sole proprietor is a foreign lawyer and the 
firm intends to have, within two months after regi stration, a place of business in Hong Kong, China 
for the purpose of practising or advising on foreign law.   
A firm to which section 39B(1) of the Ordinance applies may be registered as a foreign law firm if 
it satisfies the qualifications set out in section 7 of the FLR Rules.   
A registered foreign law firm may practise the law of the jurisdictions(s) in which their partners 
and associates are qualified, and third jurisdicti ons in which they are competent to practise.  
 HKC has not made any specific commitments under the General Agreement on Trade In Services WT/TPR/M/306/Add.1 
 
- 68 - 
 
 
  ("GATS") in respect of legal services. HKC do es not have any plan to undertake further 
liberalization of legal services.  WT/TPR/M/306/Add.1 
 
- 69 - 
 
 
  PAKISTAN 
1. HKC has only 36.7% binding of non-agricultural  lines. It did not change its bound rate 
coverage during the review period. Does Hong Kong, China plan to increase its binding coverage 
and in what time frame? 
Answer 
We should look at the scope of our tariff bindings in context. As tariff concessions are exchanged 
predominantly on the basis of reciprocity, Ho ng Kong, China (HKC) being one of the freest 
economies in the world is left with no other concession for exchange than scope of binding. This is 
acknowledged by Members as our present scope of binding is the outcome of previous negotiations 
plus additional autonomous binding we made  since the conclusion of the Uruguay Round. 
While HKC has bound 36.7% of non-agricultural lines at zero, they have already covered 53.8% of our imports of such products in terms of 2013 va lue. In our view, this figure breathes great 
commercial meaning into our commitment and provides much better reference value for tariff 
negotiations. We look forward to substantial reduction and elimination of tariffs by WTO Members under the 
Doha Development Agenda negotiations. We will review our tariff regime in the light of the 
negotiation results and consider binding additional tariff lines and the timing for doing so as appropriate. We hope that tariff reductions and eliminations will be implemented as soon as 
possible following the conclusion of the negotiations.  
 2. What is meant by Surveillance for HKC's textiles export control system?  
Answer 
HKC's textiles control system is a law-based system. It is built upon an import/export licensing 
system and an origin certification system. This is to forestall origin abuses and any textiles malpractices where appropriate. The purpose of the textiles control system is to ensure textiles 
exports claiming HKC's origin are manufactured in HKC.  
 3. Merchandise re-exports and imports of textiles and textiles articles have registered a small 
decrease over the review period. Could Hong Kong elaborate reasons for such decrease?  
Answer 
The small decrease in merchandise re-exports and imports of textiles and textiles articles 
registered over the review period can be attributed to fluctuations in the global trade flows and the changing patterns of supply and demand.  
 
4. As of early 2014, 7,143 lines (98% of total lines in the New Zealand schedule) were duty-
free for Hong Kong-origin goods. The remaining lines affect products such as textiles, clothing, and 
footwear. Are there plans for coverage of the remaining lines and when? 
Answer 
The HKC-New Zealand Closer Economic Partnership Agreement provides for elimination of tariffs 
on all imports of originating goods from HKC into New Zealand by 1 January 2016.  
 
5. HKC improved its commitments under the revised GPA by adding two government entities 
and six new types of services in its schedule. Hong Kong is requested to list these.  
Answer 
The two additional government entities are the Chief Executive's Office and the Secretariat, 
Commissioner on Interception of Communications and Surveillance. As for the six new types of 
services, they include telecommunications services, services incidental to forestry and logging, services incidental to mining, sanitation and similar services, cleaning services of exhaust gases, 
and nature and landscape protection services. 
 6. The Secretariat Report states that the legal fram ework protecting intellectual property rights 
remained largely unchanged during the review period. However, there are ongoing initiatives to 
amend legislation on copyrights, with the aim of a ddressing protection in the digital environment, 
and on patents, to introduce an original grant pa tent system that would coexist with the current 
registration system. HKC has gained international recognition for its actions to improve IPRs 
awareness and enforcement, and is taking steps to fight the new global challenges raised by IPR-WT/TPR/M/306/Add.1 
 
- 70 - 
 
 
  infringing activities in the digital environment. Could Hong Kong explain whether its success is 
attributable in larger part to legislation or enforcement efforts? What in Hong Kong's assessment 
would be the main success factors? 
Answer 
HKC is committed to protecting intellectual property rights (IPRs). We protect IPRs through 
legislation, law enforcement, public education and co-operation with rights holders and law 
enforcement agencies of other jurisdictions. We have kept our IP laws and enforcement strategies under constant review to ensure that it meets the prevailing needs. Some of the major 
developments are set out below. 
Legislation 
HKC has comprehensive legislation for the protection  of patents, trademarks, copyright, registered 
designs, layout-designs (topographies) of integrated circuits and plant varieties. Our intellectual 
property laws comply fully with the requirements  of the WTO Agreement on Trade-Related Aspects 
of Intellectual Property Rights.  We constantly review our intellectual property la ws to ensure that they remain appropriate in 
present-day circumstances. Since the last Trade Policy Review in 2010, we have reviewed the 
patent and the copyright regime. Law enforcement 
The Customs and Excise Department (C&ED) is the department responsible for taking criminal sanctions against IP infringements in HKC, with a dedicated enforcement arm in this area. In view 
of technological advancements, the C&ED set up the Electronic Crime Investigation Centre in February 2013 to identify potential challenges of IP enforcement on the Internet. The C&ED will 
remain vigilant about technological and overseas developments to ensure effective enforcement 
strategies.  Public education 
The Intellectual Property Department (IPD) of the HKC Government promotes awareness of and 
respect for IPRs in the community through on-going and sustained public education programmes. These include school visits and programmes for school children, activities collaborated with the 
rights-holders and youth associations and territory-wide publicity campaigns (e.g. seminars, 
exhibitions, printed and electronic advertisements, No Fakes Pledges Scheme and I Pledge Campaign) targeted at the business community (both in HKC and the Mainland cities where HKC enterprises have a strong presence) and the general public.  
Cooperation with rights owners and law enforcement agencies of other jurisdictions 
The HKC Government liaises closely with IPR owners to solicit their assistance in fighting IPR 
infringement. For example, the C&ED has taken the lead in forming an Intellectual Property Rights 
Protection Alliance (IPRPA). Membership encompasses individual companies and stakeholders in 
the IPR industry. The IPRPA serves as a platform for IPR owners' voluntary monitoring of IPR infringement activities in the retail market. Members will report to the C&ED on finding any 
suspected IPR violation. 
The C&ED has also maintained close cooperation with overseas enforcement authorities to exchange intelligence on both regular and ad ho c bases, as well as to mount parallel and joint 
operations. The C&ED also coordinates closely with international organizations, including the WCO, 
the WTO, APEC and the INTERPOL in the protection  of IPRs, and participates actively in various 
operations coordinated by such international organizations.  WT/TPR/M/306/Add.1 
 
- 71 - 
 
 
  AUSTRALIA 
Report by the Secretariat - WT/TPR/S/306 
 
4 TRADE POLICIES BY SECTOR 
4.5.1.2 Trade regulatory regimes 
Page 76, Box 4.2, Regulatory Supervision, Paragraph 2  
Question 
Australia notes that from 1 April 2012 to 31 March 2013, Hong Kong, China's Communications Authority (CA) was referred nine cases of alleged anti-competitive conduct involving telecommunication licensees and carrier licensees, which the CA concluded did not require further 
investigation. 
 Can Hong Kong, China provide more details on what forms of anti-competitive conduct was alleged 
in these nine cases?  
 Answer 
As given in Box 4.2 of the Report by the Secretar iat, during the period of 1 April 2012 to 31 March 
2013, the Communications Authority ("CA") considered five complaints under sections 7K, 7L and 7N of the Telecommunications Ordinance ("TO"), which prohibit anti-competitive conduct by telecommunications licensees. All five complaints we re lodged by individuals/service users. Two of 
the complaints involved mere allegations of pric e-fixing behaviour of operators without providing 
details or evidence. The remaining three compla ints respectively involved allegations of 
overcharging, refusal to supply and discriminatory practice on the part of the operators concerned 
in respect of certain services required by the complainants.  
 The five cases were closed without proceeding to investigation, on the basis that the complaints 
were about service disputes which were since resolved between the complainants and the 
operators concerned (two cases), or that the complaints lacked sufficient information and/or did not raise a genuine competition concern to warrant further processing (three cases).  
 
During the period, the CA also considered four cases under section 7P of the TO, which oversees 
merger and acquisition activities involving carrier licensees. The transactions of these four cases technically fell within the scope of section 7P of the TO but none of them was considered to have 
raised any competition concerns. 
 Page 77, Box 4.2, Interconnection and competition issues, paragraph 2 
 
Question Australia notes that beginning October 2014, all types of carrier-to-carrier local interconnection charges, including those between fixed carriers, an d between mobile carriers, will no longer be 
subject to any regulatory guidance by the Communications Authority. 
 Can Hong Kong, China advise what kind of oversight the CA will retain in relation to 
interconnection?  
 Answer 
After the withdrawal of the regulatory guidance on the charging principles of all types of carrier-to-
carrier interconnection, Hong Kong, China (HKC) will continue to adopt the light-handed and market-driven policy to regulate the interconnection market. Licensees are encouraged to establish interconnection arrangements among themselves through commercial negotiations. In case a 
commercial negotiation fails, the Communications Authority ("CA") may intervene to make a 
determination on the terms and conditions of the interconnection pursuant to section 36A of the 
Telecommunications Ordinance ("TO"). The terms and conditions in a determination may include 
any technical, commercial and financial terms and conditions that the CA considers fair and 
reasonable. The charges in a determination sha ll be based on the relevant reasonable costs 
attributable to the interconnection. The determ ination will be binding on the parties to the 
interconnection.  
 WT/TPR/M/306/Add.1 
 
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  In any event, interconnection between licensees will be safeguarded by the licence conditions, 
under which licensees are required to interconnect  its service and network with the services and 
networks of other interconnecting parties to ensure  any-to-any connectivity, i.e. any customer in 
any one network can have access to any other customer in any interconnecting network, and 
where directed by the CA, to any service offered in any interconnecting network. Licensees are 
also required under their licences to ensure that interconnection is effected promptly, efficiently 
and on terms, conditions and at charges which are based on the licensees' reasonable relevant 
costs attributable to interconnection. The CA has the statutory power under the TO to direct a 
licensee to secure the interconnection, to impose financial penalty on the carrier which has failed to comply with the requirement, and to suspend or withdraw the relevant licence.  
Furthermore, carriers are required to file with the CA a copy of the interconnection agreement 
among themselves within 14 days after the agreement has been made. The CA will publish the interconnection agreements to facilitate the industry to conduct commercial negotiations for 
similar types of interconnection. 
 4.5.2.2.1 Trade and regulatory regimes for insurance services 
Page 81, Paragraph 4.49 
 Question Australia notes that the applied regime for insurance services, as defined by the Hong Kong, 
China's 2012 free trade agreement with EFTA, is also applied to all participants. 
 Could Hong Kong, China advise whether it has experienced an increase in foreign participation in 
the insurance services sector, since binding its applied regime in its free trade agreement with 
EFTA?   
Answer 
In terms of both the number and percentage of foreign insurers over the total number of 
authorized insurers in HKC, we are not aware of a significant increase in foreign participation since 
the implementation of the HK-EFTA Free Trade Ag reement in 2012. As such, we would comment 
that the increase of foreign participation in the industry since binding the applied regime in the 
free trade agreement with EFTA is not obvious. This might be due to the fact that HKC has always been an open economy. There are no barriers of access imposed on foreign insurers and therefore 
they have already had a strong presence in HKC. 
 4.5.2.3 Trade and regulatory regimes fo r banking and other financial services 
Page 85, Paragraph 4.52 
 Question Australia notes that in 2012 Hong Kong, China removed the requirement that overseas banks have 
three continuing years of presence in order to es tablish a locally incorporated fully licensed bank. 
 Given the recent removal of presence requirem ents, could Hong Kong provide information on 
whether it has experienced an increase in foreign participation in its banking market?   
 Answer 
We do not see a direct correlation between the number of applications from foreign banks for authorization as locally-incorporated licensed banks and the removal of the requirement for three continuing years of presence prior to incorporation.  
Page 87, Box 4,6, Supervisor y Authorities, Paragraph 1 
 Question 
Australia notes that Hong Kong, China is proposin g to extend the supervision of the Hong Kong 
Monetary Authority (HKMA) to Stored Value Faci lities (SVF) and Retail Payment Systems (RPS) to 
ensure the safety and soundness of such facilities and systems. 
 
Can Hong Kong, China provide details on what industry stakeholders have identified should be addressed in the legislation for the new regulatory regime? What is the likely impact of this new regulatory regime on business?   WT/TPR/M/306/Add.1 
 
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  Answer 
Given the growing public acceptance and usage of innovative retail payment products and 
services, as well as the international regulatory  trend, we propose to introduce a regulatory 
framework to ensure the safety and soundness of the operation of SVF and RPS in Hong Kong, 
China (HKC). Enhancement to the regulatory regime is essential to maintain public confidence in 
payment systems which, in turn, may contribute to the stability and effective operation of the 
financial and payment systems in HKC. Please refer to the Consultation Conclusions published on 
31 October 2014 for details on comments received and our responses 
(http://www.fstb.gov.hk/fsb/ ). 
 
Page 89, Box 4.8, Securities and Futures Short Position Reporting Rules, para 1 
 
Question Australia notes the new Securities and Futures (Short Position Reporting) Rules came into effect in 
June 2012, which Hong Kong, China identifies will assist the Securities and Futures Commission 
(SFC) in collecting further market information and strength the SFC's ability to monitor short-selling activities in the market. 
 
Is Hong Kong able to share the data it has collected on short-selling since these rules came into effect?   
Answer 
The SFC started its weekly publication of the short position data it received on its website: 
(http://www.sfc.hk/web/EN/regula tory-functions/market-infrast ructure-and-trading/short-
position-reporting/aggregated-short-positions-of-specified-shares.html ) on 7 September 2012. The 
publication that covers aggregated short positions of each stock, on an anonymous basis, usually 
takes place three business days after th e receipt of the short positions report. 
 
The regular publication of the short position data will enhance transparency of short-selling 
activities to the market. This information is complementary to the information on aggregated short selling turnover published: ( http://www.hkex.com.hk/eng/stat/smstat/ssturnover/sstoday.htm ) 
twice a day by the Hong Kong Exchanges and Clearing Limited on its website and together, they 
offer the public a better picture of the short-selling activities in the Hong Kong, China's market.   
In contingency situations, notwithstanding the reporting of short positions must be done on a daily 
basis (as opposed to a weekly basis under normal market condition), the SFC will however maintain the publication of the aggregated data on a once-a-week basis. This would continue to 
allow the market to have information on short positions and at the same time would enable the 
SFC to focus its attention and resources to monitor and assess the market situation.  Is there evidence of the new supervisory mechanism reducing the risks that short-selling activities 
can bring into a market?  
 Answer 
The short position data collected by the SFC comp lements the short-selling turnover data currently 
published by the HKEx, which records the short- selling transactions, i.e., the number of shares 
being sold short on the exchange. The short positi on data provides an additional indicator on 
whether short positions are still outstanding or closed out.  
 Based on the short position data, the SFC can assess if short-selling activities would pose any systemic impact on Hong Kong, China's market. It provides an early warning sign of changes in 
short positions that may be potentially disruptive to the orderly functioning or stability of the 
market.  
The data can be used to detect significant build-u p of short positions and analyse whether there is 
concentration of short positions in certain stocks or by certain holders. The SFC will conduct further analysis and take follow up actions if signs of irregularities are observed. 
 
The data provides ready access to information on  short selling to improve insight into market 
dynamics. It is important to monitor the trends of  various components of the information collected 
over time to identify any changes which may wa rrant further regulatory attention or actions. WT/TPR/M/306/Add.1 
 
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  Report by Hong Kong, China - WT/TPR/G/306 
 
4  SUSTAINING LONG TERM GROWTH AND IMPROVING BUSINESS ENVIRONMENT  
4.1.4 Business and Professional services 
Page 12, Paragraph 4.24  
Question 
Australia notes that Hong Kong, China's professional services industry has recorded high growth in recent years, contributing nearly 5% of GDP.  
Could Hong Kong, China advise whether this growth has been supported by any changes to 
domestic policy settings? Is Hong Kong, China able to provide any further information on planned liberalization measures to support continued growth in business and professional services? 
 
Answer 
The relatively high growth in professional servic es industry in part reflected the ever-growing 
demand for these high-end services in a vibrant international business hub, and it was also the 
fruit of our long-standing efforts to strengthen the economic ties with the Mainland of China and to invest in human capital.  
Hong Kong, China (HKC) is a prominent international business hub, thanks to a business-friendly 
environment provided by the free market policies, rule of law, and a simple and low tax regime. It is an appealing place for overseas companies to se t up their regional headquarters here to develop 
their business in Asia-Pacific, and of late an increasingly important springboard for enterprises 
from the Mainland of China to go aboard, thereb y generating higher demand for our professional 
services.  
 
The steps to strengthen the economic ties with the Mainland of China, which allow HKC-based companies in various services sectors to enter the Mainland market at preferential terms, has brought further support to the growth of the prof essional services industry. In particular, the 
Mainland and Hong Kong Closer Economic Partne rship Arrangement (CEPA) and its Supplements, 
have provided more than 400 liberalization and trade facilitation measures. Under CEPA and its Supplements, 28 sectors have already been partly liberalised for HKC including many professional 
services industries such as legal as well as technical testing and analysis services sectors.  
 Besides CEPA, the Government announced the establishment of the Economic Development 
Commission in early 2013, which includes a Working Group on Professional Services aiming to 
continue to make best use of HKC's existing edge s, to explore new advantages and to develop new 
strengths. We are looking forward to the counsel  of the Commission for drawing up an overall 
industry policy with a view to creating jobs and improving people's livelihoods. 
 
Skilled labour is a vital fuel for the sustained development and expansion of the professional services industry. In this regards, the Government  attaches great importance to investment in our 
human capital, allocating over 20% of the re current government expenditure budget in the 
financial year 2014-15 on education. The proportion of labour force with tertiary education has increased from 28% a decade ago to the current 36%, supplying quality talent supporting the 
development of the professional service sector. 
 Page 12, Paragraph 4.25-4.26  
Question 
Australia notes Hong Kong, China's increasing role as a dispute resolution centre in the Asia-Pacific region. 
 
Could Hong Kong, China confirm whether there have been any changes to the ability of foreign lawyers to practice foreign law or international law in HK, including in relation to legal arbitration, 
mediation and conciliation services? Could Hong Kong, China provide any update on when recent 
amendments to the Legal Practitioners Ordinance might become operational?   
 WT/TPR/M/306/Add.1 
 
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  Answer 
It is one of the policy objectives of the Gove rnment of Hong Kong, China (HKC) to actively 
promote HKC's legal and dispute resolution services to enhance its status as a centre for international legal and dispute resolution services  in the Asia-Pacific region. To this end, the 
relevant regulatory framework in HKC is continuously reviewed and updated to enhance its 
position as a friendly jurisdiction for internationa l legal and dispute resolution services providers. 
The following is an update on the regulatory framework in relation to the practice of foreign law or 
international law by foreign lawyers in HKC.  
 Legal Services in Hong Kong, China  
There have been no changes on the statutory requirements for foreign lawyers to practise foreign 
law or international law in HKC since the last Trade Policy Review in 2010.  
Arbitration Services in Hong Kong, China 
 The position in relation to whether foreign lawyers are allowed to participate in arbitral 
proceedings in HKC (e.g., as arbitrators or party's representatives) has not changed since the last 
Trade Policy Review in 2010. A person who is not qualified to practise HKC's law may undertake arbitration-related work in HKC provided that the nature of the work falls under the descriptions in 
section 63 of the Arbitration Ordinance (Cap. 609), which reads: 
 
"Section 44 (Penalty for unlawfully practising as a barrister or notary public), section 45 
(Unqualified person not to act as solicitor) and section 47 (Unqualified person not to prepare 
certain instruments, etc.) of the Legal Practitioners Ordinance (Cap 159) do not apply to: 
 (a) arbitral proceedings; 
(b) the giving of advice and the preparation of documents for the purposes of arbitral 
 proceedings; or (c) any other thing done in relation to arbitral proceedings, except where it is done in  connection with court proceedings: 
 (i) arising out of an arbitration agreement; or 
 (ii) arising in the course of, or resulting from, arbitral proceedings."  
The Arbitration Ordinance does not provide for any qualifications that a person must possess 
before one can practise as an arbitrator or participate in arbitral proceedings in HKC.  
Mediation Services in Hong Kong, China 
 The Mediation Ordinance (Cap.620), which came into operation on 1 January 2013, provides a legal framework for the conduct of mediation, with emphasis on the protection of confidentiality of 
mediation communications without hampering the flexibility of the mediation process. Section 7 of 
the Mediation Ordinance expressly provides that se ctions 44, 45 and 47 of the Legal Practitioners 
Ordinance (Cap. 159) regarding penalty for unlawfully  practising as a barrister or notary public, 
unqualified person not to act as solicitor, an d unqualified person not to prepare certain 
instruments, etc., do not apply to the provision of assistance or support to a party to mediation in the course of the mediation. The purpose of the provision is to make clear that non-lawyers and 
foreign lawyers may participate in mediation conducted in HKC.  
 To ensure the quality of mediators, the Hong Kong Mediation Accreditation Association Limited (HKMAAL), a non-statutory and industry-led body in the form of a company limited by guarantee 
was incorporated in August 2012. The HKMAAL discharges both accreditation and disciplinary 
functions and regulates the standards for training and accreditation of mediators in HKC.  
Amendments to the Legal Practitioners Ordinance (Cap. 159) 
 The Legal Practitioners (Amendment) Ordinance 2012 ("Amendment Ordinance") was enacted in 
July 2012. It has not yet come into operation, and wh en it does it will enable law firms in HKC, i.e. 
including foreign law firms, to operate in the form of a limited liability partnership ("LLP"). Unlike a general partnership (which is the normal business model that law firms operate in HKC), the personal assets of an innocent partner of an LLP (other than his/her interests in the partnership WT/TPR/M/306/Add.1 
 
- 76 - 
 
 
  property) would be protected from liability caused  by the professional default of his/her fellow 
partners. A number of consumer protection measures are built into the Amendment Ordinance. 
One key measure is that a law firm which opts to practise in the form of LLP must take out top-up insurance providing additional indemnity coverage of HK$10 million in respect of any one claim. 
This top-up insurance coverage together with the coverage of HK$10 million provided by the 
compulsory primary insurance under the existing legislation will provide a total of at least HK$20 million per claim for clients engaging the service of an LLP. 
The Department of Justice and the Law Society are working on certain incidental matters relating 
to the Amendment Ordinance. Once these matters  are completed, we would bring the Amendment 
Ordinance into operation as soon as practicable.  
4.2 Trade Facilitation 
Page 15, Paragraph 4.44   
1. At the commencement of the Hong Kong AEO Programme were there limitations on the 
number of operators that could become AEOs? Was that number manageable?  
Answer 
There is no limitation on the number of operators that can become AEOs in the Hong Kong AEO 
Programme.  
2. How many operators are currently in the Programme and what is the industry sector 
breakdown?  
Answer 
As of October 2014, 20 companies have been accred ited as AEOs in Hong Kong, China. They can 
be grouped under the following industry sectors: 
 
Industry sectors Number of AEOs 
Importer/exporter 9 
Forwarder/logistics company 8 
Terminal operator 1 
Warehouse operator 1 
Manufacturer 1 
3. Is there an intention to expand the list of benefits over time? 
 
Answer 
Hong Kong, China always endeavours to expand the benefits through signing of mutual recognition 
arrangements on the AEO Programmes with other economies with a view to enabling industry 
stakeholders to enjoy more clearance facilitation in the global trade.   4. Does the entire supply chain need to be secure to receive the benefits or will the benefits be 
achieved if only one operator, e.g. exporter bu t not customs broker or transport company, is 
granted AEO status?   
Answer 
The Hong Kong AEO Programme is open to all stakeholders, such as manufacturers, importers, 
exporters, freight forwarders, warehouse operators, carriers, etc., engaging in business principally 
related to the international supply chain. Local co mpanies that meet the pre-determined criteria 
may be accredited as AEOs and enjoy relevant trade facilitation.  5. What is the breakdown of entities for each tier?  
 
Answer 
As of October 2014, there is a total of 20 AEOs in Hong Kong, China and all of them are in Tier 2. 
 
6. Have there been operators moving between tiers since the commencement of the Programme? 
 WT/TPR/M/306/Add.1 
 
- 77 - 
 
 
  Answer 
Among the AEOs in Hong Kong, China, two have been upgraded from Tier 1 to Tier 2. 
 7. What has been industry feedback from those that have become AEOs and have been 
granted the benefits? 
 Answer 
The industries generally welcome the implementati on of AEO Programme in Hong Kong, China and 
positive responses in the improvement of the co mpanies' integrity of security practices are 
received.   
8. How has the benefit "reduced stock loss, theft and pilferage" been enforced and monitored? 
Is it a tangible benefit for industry?  
Answer 
The Programme helps the industries to optimize inve ntory control. With high standard of premises 
and cargo security, the companies have benefitted  from improved supply chain security, thereby 
reducing stock loss, theft and pilferage with consequential cost savings.  
 9. What is the criteria for membership?  
Answer 
Hong Kong, China will grant AEO status to companies in two tiers according to their level of 
compliance with the pre-determined criteria, which are in line with the requirements of the WCO 
SAFE Framework and with reference to relevant ISO standards. The 12 accreditation criteria 
including three general criteria and nine security / safety criteria are enumerated as follows:  
General Criteria 
(a) Customs Compliance (b) Maintenance of Commercial Records (c) Financial Soundness 
Security and Safety Criteria 
(d) Premises Security and Access Control (e) Personnel Security 
(f) Cargo Security 
(g) Conveyance Security (h) Business Partner Security 
(i) Security Education and Training 
(j) Information Exchange, Access and Confidentiality (k) Crisis Management and Incident Recovery (For Tier 2 AEO Status only) (l) Measurement, Analysis and Improvement (For Tier 2 AEO Status only) 
 
When applying for Tier 1 AEO status, a company has to comply with the criteria listed from (a) to (j). To apply for Tier 2 status, a company should be  in conformity with all the criteria listed from 
(a) to (l). 
 10. What is meant by "good compliance with  Customs requirements" are there specific 
standards or numerical values linked to this? 
 Answer 
An applicant shall have a clear record of Customs offences or other offences involving fraudulence, 
corruption or dishonesty in the past two years when submitting the applications. 
 11. Are the same security and safety measures applied across all operators or are they tailored 
based on individual business circumstances? 
 Answer 
Hong Kong, China adopts a dynamic framework to address the complexity of international supply 
chain, particularly the variation of business op eration sizes and risks across different sectors. 
 WT/TPR/M/306/Add.1 
 
- 78 - 
 
 
  12. Are there any systems that operators need to have in place to confirm "good maintenance of 
verifiable commercial records" or is based on individual circumstances? 
 Answer 
An applicant shall maintain verifiable commercial re cords up to a satisfactory level as required by 
the relevant provisions under ISO9001:2008. These measures include: maintaining a system to keep commercial records, authorizations, licences, permits, certificates or 
other relevant documents relating to the importation or exportation of goods; 
conducting internal audit systems and records at planned intervals; putting in place procedures to define the controls for identification, storage, protection, retrieval, retention and disposition of the commercial records; and 
devising security measures to protect computer ized record system from unauthorized access.  WT/TPR/M/306/Add.1 
 
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  SINGAPORE 
PART I: Questions regarding the Secretariat Report 
 
II TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
Questions 
 
Trade Policies and Practices by Measure 
 
Pages 32 (Para 3.13) 
 1. We note that all import declarations must be submitted electronically via one of the 
government-appointed service providers. Could Hong Kong share how these service providers are selected, e.g. the criteria? Also, how does the Hong Kong government regulate these service 
providers? 
 Answer 
Trade declaration is one of the services under the Government Electronic Trading Services which are operated by commercial service providers (S Ps) appointed by the Hong Kong, China (HKC) 
Government through open tender. In the last GETS tender in 2008, we assessed the tender 
proposals based on the following criteria: 
 - Relevant experience of the company and its project team 
- Technical solution offered, its security, ongoing system support and operation 
- Services offered for traders and customer support services  
- Business and marketing plan of the company 
- Project implementation plan 
- Level of fees for each services 
 The Government regulates the performance, the se rvice charges on traders and other conduct of 
the SPs through the service contracts signed betw een the Government and the SPs concerned. SPs 
are required to abide by the prescribed technica l specifications and performance indicators which 
cover such areas as data security, customer support, response time, disaster recovery and response to Government requirements. The Go vernment would request the SPs to supply 
information to ensure their compliance with the provision of the service agreements. Besides, 
regular review meetings would be held with the SPs to monitor their services.  
 
Trade Policies by Sector  
 
Page 34 (Para 3.19); Page 97 (Para 4.68 and 4.69); Page 99 (box 4.13) 
 2. We note that there has been a change in Hong Kong's maritime transport services 
competition regime with the launch of a new generic, non-sector-specific, legislation and supply chain security initiative, the Authorized Economic Operator (AEO) Programme. We are interested 
to learn more about the effects and benefits that the implementation of the AEO Programme has 
brought about. In addition, we would like to understand if the AEO Programme takes into account other accreditation programmes in other sectors, e.g., aviation. 
 
Answer 
The HKC AEO Programme integrates both targets of  enhanced supply chain security and improved 
business performance. The industry stakeholders reap multiple benefits through the Programme 
including:  (a) less cargo inspections as AEOs are acknowledged to be trusted partners of Customs and 
 their goods are considered of lower risk; 
(b) prioritized Customs clearance if their goods are selected for inspection; (c) enhanced goodwill as a secure trader with industry "kitemark" as the AEO certification 
 demonstrates commitment in safeguarding the global supply chain; 
(d) strengthened competitiveness and marketability as a result of the enhanced customer  confidence, improved cooperation with partners in the global supply chain; WT/TPR/M/306/Add.1 
 
- 80 - 
 
 
  (e) reduced stock loss, theft and pilferage as a re sult of improved security and safety of their 
 supply chains; and  
(f) benefits granted by other Customs administrations under mutual recognition arrangements,  such as reduced Customs inspections, expedited clearance, deferred payment or priority 
 treatment. 
 Apart from the requirements of the WCO SAFE Fr amework, the criteria of the HKC AEO Programme 
are in line with the following documents of the International Organization for Standardization 
(ISO):  (a) ISO 9001:2008 on Quality Management Systems - Requirements; 
(b) ISO 27001:2005 on Information Security Management Systems - Requirements; and 
(c) ISO 28001:2007 on Security Management Systems for the Supply Chain - Best Practices for  Implementing Supply Chain Security – Requirements and Guidance.  
 
HKC Customs also takes into consideration certificates awarded by professional associations such as TAPA, C-TPAT etc. in accrediting an AEO a pplicant. However, such certificates will not 
automatically exempt the applicant from any of the assessment criteria but may to a certain 
extent shorten the processing time of the entire application.  
 Intellectual Property Rights 
 Page 61 (Para 3.154) 
 
3. We note that an online IP trading portal was launched by the Hong Kong Trade Development 
Council (HKTDC) in Dec 2013. For learning purposes, we would like to request for Hong Kong to share more about the success of this trading portal. Specifically, how has the visitor traffic to the 
site been, and how has this traffic been converted into leads and successful IP trading 
transactions? What are some interesting trends that have emerged from the running of this portal and what are some learning points that have arisen from the experience of running this online portal so far? Apart from running this portal, how does HKTDC facilitate IP trading between the 
interested parties?   
 Answer 
Launched by the Hong Kong Trade Development Council (HKTDC) in December 2013, Asia IP 
Exchange (AsiaIPEX) is a free online platform and database aiming to facilitate international IP trading and connection to global IP players. At present, it has formed alliances with 23 strategic 
partners local and overseas and covers over 25,000 entries of tradable intellectual property rights 
(including copyright, patents, registered design and trademarks) sourced from around the globe in 
the biotech, nanotech, medical, electronics, textile , film, publishing and other sectors. For details 
please refer to http ://www.asiaipex.com.  
 
The number of registered AsiaIPEX members ex ceeded 8,000 by Oct 2014, including IP owners, 
users or service providers. We observe the growin g importance of Asia in the global IP-related 
business, in particular Mainland China as a major player. 
 Other than the portal, the HKTDC holds the annual Business of IP Asia Forum, aiming to connect IP 
owners, buyers and sellers as well as financial, le gal and technology professionals from around the 
world. This year's Forum, to be held in Dece mber, will bring together around 2,000 participants. 
Since 2011, the Business of IP Zone (BIP Zone) has also been set up in HKTDC local trade fairs for IP intermediaries to provide free consultation services to the fair exhibitors and visitors. This 
arrangement benefited 11 trade fairs in 2014 receiving positive responses. To promote the 
AsiaIPEX among global IP elites, we have also staged promotions at local and overseas renowned IP events including AUTM Annual Meeting, IPBC Global, LES Annual and Mid-Year Meeting, etc. 
 WT/TPR/M/306/Add.1 
 
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  Appendix Tables 
 
Page 130 (Table A3.5 Selected incentives and assistances measures, Hong Kong, China, 2011 – 
13)  
 4. We note from the table that there is a Film Development Fund (FDF) and a Film Guarantee 
Fund Scheme (FGF). In order to learn from best practices, we would like to seek Hong Kong's 
elaboration on how these two sector-specific schemes are structured and how they are 
administered. Answer 
Film Development Fund Scheme (FDF). 
 
The FDF was first set up in 1999 to support film-related programmes which are beneficial to the long-term and healthy development of the HKC's film industry. The scope of FDF was expanded 
and its approved commitment increased to HK$320 million in July 2007 to finance the production 
of small-to-medium budget films with the aim to nurture film talents.   
The eligibility and financing criteria for financing th e production of film projects under the FDF are: 
 (a) The applicant should be a company formed and registered in HKC; (b) The applicant, or the film producer, or the f ilm director should have produced at least two 
 completed films for commercial theatrical release in HKC; 
(c) The applicant may only receive the Governme nt financial support under the FDF for up to 
 two approved film projects at any one time; 
(d) The film project must: 
 
i.  have a production budget of not more than HK$15 million;  
ii.  be in the form of a full script to produce a feature film intended for commercial theatrical 
exhibition in HKC; 
iii.  be identifiable as commercially viable and have secured some form of third-party 
financing; and  
iv.  constitute at least 50% of the main cast and film crew with HKC permanent residents; and  
 
(e) The Government will contribute in the form of investment of up to 40% of the production 
 budget of the film project under the FDF, i. e. a maximum of HK$6 million per film project. 
 As for other film-related projects, the applicant should normally be a locally incorporated film 
industry organization or a related body. The project –  
 (a) must be beneficial to the overall development of the HKC's film industry; (b) must serve the interests of the entire film  industry and not just an individual private 
 company or a consortium of private companies; and 
(c) should mainly be non-profit making in nature.   
The Commerce and Economic Development Bureau of the HKSAR Government decides whether to 
approve the funding applications having regard to the recommendation of the Film Development 
Council. WT/TPR/M/306/Add.1 
 
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  SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (CHINESE 
TAIPEI) 
PART I: REGARDING THE SECRETARIAT REPORT (WT/TPR/S/306)  
2 TRADE AND INVESTMENT REGIME 
2.1 General Constitutional and Legal Framework 
Page 22 (Para 2.5)  
A free-trade agreement between HKC and its trading partners need not be subject to ratification 
by the legislature before the agreement enters into force. However, when legislative means are required in order to implement provisions in th e free-trade agreement (e.g. introduction of new 
legislation, or amendment of existing legislation), the usual legislative procedures will be followed. 
 
Question(s) 1. Have there been any cases in which the usual le gislative procedures (e.g. introduction of new 
legislation, or amendment of existing legislatio n) have been followed in order to implement a 
provision in an FTA?  
Answer 
Free trade agreements (FTAs) signed by Hong Ko ng, China (HKC) and the Mainland of China, New 
Zealand, the European Free Trade Association and Chile respectively in 2003, 2010, 2011 and 
2012 have specific set of preferential rules of origin. To facilitate the implementation of the 
preferential origin rules under these FTAs and enab le traders to apply these preferential rules of 
origin, amendments were made to the Trade Descriptions Ordinance, which regulates trade descriptions of goods including the place of origin.   
 
2. Is the legal ranking of an FTA in HKC below that of a law (i.e., is it characterized as an 
executive order only)? 
 
Answer 
Like many other common law jurisdictions, implementing legislation is often required to give legal effect to an international agreement. Thus, an FTA would be given legal effect in HKC by the 
existing law or by new legislation. As such, (existing or new) legislation implementing an FTA has 
the same "legal ranking" as other pieces of domestic legislation.   
2 TRADE AND INVESTMENT REGIME 
2.3.2 Regional and preferential trade agreements Page 24 (Para 2.18) 
 
In November 2011, HKC submitted a request to ASEAN join the Free Trade Area between China and ASEAN (CAFTA); in April 2013, HKC and ASEAN agreed to pursue a separate free-trade agreement instead. Public consultation documents for these negotiations were published on the 
TID website in May 2014.  
 Question(s) 
3. HKC and ASEAN began the FTA negotiation in June, 2014. What kind of approach does HKC 
negotiate with ASEAN? What is the current progress of this FTA? Does the FTA adopt a positive or 
negative listing approach in services negotiation? When is this FTA going to be signed?  
 
Answer 
Negotiation of the HKC-ASEAN FTA commenced in July 2014 and is progressing smoothly.  HKC and ASEAN will soon discuss the principles  and modalities for scheduling commitment for 
services. We envisage that the question of whethe r the FTA will adopt a positive or negative listing 
approach or otherwise will also be discussed. Both sides are working closely to conclude the FTA negotiation as soon as possible.  
 
4. Aside from the FTA HKC is negotiating with ASEAN , does HKC plan to conduct FTA negotiations 
with other Members?  
 WT/TPR/M/306/Add.1 
 
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  Answer 
Our current priority is the HKC-ASEAN FTA. Nevert heless, HKC has an open mind on entering into 
FTAs with other economies, so long as they are in  our interests, are consistent with the principles 
of the World Trade Organization and can contribute to multilateral trade liberalizations.  
 
2 TRADE AND INVESTMENT REGINE 2.3.2 Regional and preferential trade agreements 
2.3.2.4 Closer Economic Partnership Arra ngement (CEPA) with Mainland China  
Page 26 (Para 2.34)  Under CEPA provisions for trade in services, Hong Kong service suppliers (HKSS) enjoy preferential 
access to the Chinese market. To be qualified as an HKSS, any business that provides services in 
the form of a juridical person must have "substan tive business operations" in HKC. As of the end 
of May 2014, 2,800 HKSS certificates had been issued, up from 2,233 in May 2010. Service 
sectors with the most certificates issued include transport and logistics, distribution services, 
placement services, and advertising services. CEPA is "nationality blind" as it allows Hong Kong-based companies of any nationality to use preferential access opportunities to Mainland China. The 
authorities note that almost half of the HKSS certificates have been issued to companies with 
majority foreign ownership, including se rvice providers from HKC's FTA partners. 
 Question(s) 
5. CEPA has been signed for 10 years since 2003. However, the report mentions that only 2,800 
HKSS certificates had been issued in the end of May 2014. Why are the HKSS numbers not high?   
Answer 
Applications for HKSS Certificate is not the only indicator to reflect the interest of HKC's service 
suppliers in CEPA. Indeed, some CEPA benefits can be enjoyed by HKC's service suppliers without 
obtaining a HKSS Certificate. Examples are: thos e available to HKC's professionals who can enjoy 
CEPA benefits as a natural person may participate in qualification examinations for professionals and technicians, mutual recognition of profession al qualifications arrangements; waiving residency 
requirement for practising in the Mainland; to open solo clinics for medical and dental services, 
motion pictures jointly produced by HKC and the Mainland, etc.  
 Moreover, holders of valid HKSS Certificates are no t required to obtain another HKSS Certificate in 
order to enjoy new CEPA benefits, and can appl y to the Mainland authorities to enjoy CEPA 
benefits available in service sectors not limited to  the service sector they are currently engaged in 
HKC. 
 
6.  Which are the top three Chinese provinces that Hong Kong service suppliers (HKSS) invest in 
by utilizing CEPA?   
Answer 
HKC does not possess such information as HKSS Certificate holders are not required to report to 
Trade and Industry Department which Mainland authorities they have approached for obtaining the 
preferential treatment under CEPA.  
 2.TRADE AND INVESTMENT REGIME 
2.4 Investment Regime 
Page 29 (Para 2.42-2.43)  Under the Basic Law, HKC does not maintain any restriction on investment, capital flows, and 
foreign exchange. All service sectors are open to foreign investment, and foreign services 
providers and foreign investors generally receive national treatment, except for (limited) 
regulatory requirements on investment in the ba nking (section 4.5.2) and broadcasting sectors, 
which, according to the authorities, are aligned with international standards. There are no 
minimum capital requirements for investments. With the aim of modernizing company law and further enhancing the role of HKC as a major 
international business and financial centre, the Companies Ordinance was re-written and approved 
by the legislature in July 2012; the legislation (Chapter 622) entered into force in March 2014. The new Companies Ordinance provides a number of measures for facilitating business operations, including streamlined procedures and the simplification of companies' reporting obligations, in WT/TPR/M/306/Add.1 
 
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  particular for SMEs. The Ordinance also has provisions to enhance corporate governance to ensure 
better regulation, such as provisions for improving company information disclosure and 
shareholder protection.  
Question(s)  
7. How does the Hong Kong government collect statistics on inward and outward investment?  
 
Answer 
In HKC, statistics on inward and outward investment are compiled mainly based on data collected 
through the Survey of External Claims, Liabilities and Income. It is a mandatory statistical survey 
conducted by the Census and Statistics Department  of the HKC's Government. For more details of 
the Survey, please refer to Appendix I of the repo rt External Direct Investment Statistics of Hong 
Kong 2012 which can be downloaded from the following link: [http://www.censtatd.gov.hk/hkstat/s ub/sp260.jsp?prod uctCode=B1040003 ]. 
 
3.TRADE POLICIES AND PRACTICES BY MEASURE 3.4 Measures Affecting Production and Trade 
3.4.2 Competition Policy and Price Controls  
3.4.2.1 Competition policy  
Page 50 (Para 3.102.)  
Unlike in many other jurisdictions, the Ordinance does not establish a cross-sector merger regime, 
which remains limited to mergers in the telecommunications sector.  
Question(s) 
8. Does HKC plan to include apply the Ordinance to mergers in all sectors in the future? 
 
Answer 
Hkc plans to review the ordinance a few years after the ordinance has come into full operation, 
including the merger control regime.  
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.4 MEASURES AFFECTING PRODUCTION AND TRADE 3.4.5 Intellectual property rights 
3.4.5.1 Legislation 
3.4.5.1.2 Patent law Page 60 (Para 3.147) 
 
In order to keep the patent system up-to-date an d facilitate the development of Hong Kong, China 
as a regional innovation and technology hub, in October 2011 the HKC Government conducted a public consultation on the review of the pate nt regime and appointed a committee to provide 
advice on relevant issues. In February 2013, the Government endorsed the recommendations 
made by the committee, and announced the way forward for the development of the patent system in HKC: 
•introduce an original grant patent (OGP) system with substantive examination outsourced to 
other patent offices in the beginning, while keeping the existing re-registration system for grant of 
standard patents. 
• retain the short-term patent system, but with certain refinements such as introducing 
substantive examination into the system as a pr e-requisite to commence infringement proceedings 
and requiring the short-term patentee to disclose full particulars about the patent (i.e. documentation, research report, etc.) to the person  to whom the threat of infringement is made. 
• develop a full-fledged regulatory regime for pa tent agency services in the long-run to be 
achieved in stages, with possible transitional measures.   
Question(s) 
9. To our knowledge, Hong Kong, China will be outsourcing its substantive examination service to 
other patent offices once the OGP is in place. What might be the potential candidates for the 
service? 
 WT/TPR/M/306/Add.1 
 
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  Answer 
As part of the government's efforts to implement the "original grant" and refined short-term 
patent systems in HKC, IPD and SIPO signed the "Co-operation Arrangement in the Area of Patent 
in Hong Kong" in December 2013 under which SIPO agrees to provide technical assistance and 
support to IPD for substantive examination of the patentability of inventions and the training of 
staff for operating and administering the new patent system.  Whether the assistance of other patent offices is necessary in future would be subject to further 
review having regard to operational needs. 
 10. Should a person seeking to invalidate or make a correction to a standard patent go to the 
patent office where the patent was originally granted and then proceed to make a recordation 
thereof at the patent competent authority in Hong Kong? 
 Answer 
The grant of a standard patent in HKC is based on  the registration of a patent granted by one of 
the three designated patent offices, namely, th e State Intellectual Property Office (SIPO) of 
Mainland China, the European Patent Office (EPO) (regarding a patent granted under the European 
Patent Convention designating the United Kingdo m) and the United Kingdom Intellectual Property 
O f f i c e  ( U K I P O ) .  O n c e  a  s t a n d a r d  p a t e n t  h a s  b e e n  g r a n t e d  i n  H K C ,  i t  i s  i n d e p e n d e n t  o f  i t s  corresponding patents granted by the relevant designated patent office, and is enforceable in HKC. Any person seeking to revoke a HKC standard patent or amend the specification of the same 
generally has to apply to the Court of First Instance of HKC. In this connection, the following 
points are worth noting -  
(i) Where the corresponding patent granted by one of the three designated patent offices on which 
grant of a HKC standard patent was based has been revoked following prescribed revocation or opposition in that designated patent office, such a fact can be invoked as a legal ground in support 
of an application for revocation of the HKC standard patent before the Court of First Instance of 
HKC.  (ii) Where a HKC standard patent is granted on the basis of an EPO patent and where the 
corresponding EPO patent or its specification, as a result of prescribed opposition or revocation 
proceedings before EPO, has been revoked or amended, the proprietor of the HKC standard patent has to notify the Registrar of Patents in HKC who will record and publish the revocation or 
amendment accordingly. Also, any person other than the proprietor may, following the revocation 
of the corresponding EPO patent, apply to the Regi strar of Patents for an order that the standard 
patent be revoked in accordance with the prescribed procedure. The Registrar of Patents may 
either revoke the standard patent or refer the application to the Court of First Instance for 
determination.  11. Regarding the introduction of substantive examination into the infringement proceedings 
involving short-term patents, will Hong Kong, China be outsourcing its substantive examination of 
short-term patents to other patent offices?  
Answer 
See reply to question 9 above.  
 
12. Can people of other nationalities or regions take patent agent examination held by Hong Kong 
IP authorities and practice patent matters in Ho ng Kong? If yes, can people from the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu take the exam? And what are the requirements?  
 
Answer 
Under the current patent system in HKC, for patent applications or proceedings before the HKC 
Patents Registry, the Registrar of Patents shall refuse to recognize as an agent a person who 
neither resides nor has a place of business in HK C. In addition, the Registrar may refuse to 
recognize the capacity of a person to act as an agent in respect of business under the Ordinance in 
certain circumstances, for example, where the pe rson has been convicted of a criminal offence 
before. Save the aforesaid, there is generally no re gulation of provision of patent agency services 
in HKC.  WT/TPR/M/306/Add.1 
 
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  In February 2013, the Government announced its policy decision on the development of the patent 
system in HKC, which included the development of a full-fledged regulatory regime on patent 
agency services in the long run. Such a target wo uld have to be achieved in stages, with possible 
interim measures. In this regard, the Government will continue the discussions with the Advisory 
Committee on Review of the Patent System in HKC to work out the details of the implementation 
plan.  
4. TRADE POLICIES BY SECTOR 
4.5 SERVICES 4.5.1 Telecommunication services Page 72 (Box 4.2) 
 
1. The Communications Authority (CA), the independent regulator stricto sensu , and the Office of 
the Communications Authority (OFCA), the administrative department providing support to the 
regulator, were established in April 2012. They oversee both the broadcasting sector and the 
telecommunications sector with the aim of meeting the regulatory challenges arising from the new era of convergence.  
2. The Competition Ordinance (Ordinance) prohibits three types of anti-competitive conduct in 
the market: (i) anti-competitive agreements, concerted practices and decisions of an association of undertakings (known as the First Conduct Rule); (ii) abuse of market power (Second Conduct Rule); and (iii) mergers that are likely to substantially lessen competition, which is applicable only 
to the telecommunications sector (the Merger Rule). 
3. The Ordinance provides that the CA will have concurrent jurisdiction with the Competition 
Commission (Commission) in respect of the investigation and bringing of enforcement proceedings 
of competition cases in the broadcasting and telecommunications sectors. On the handling of 
complaints against anti-competitive practices, the Commission and the CA will conduct enforcement actions in accordance with the requ irements on concurrent jurisdiction in the 
Ordinance upon the full commencement of the Competition Ordinance. 
4. The Commission and the CA are required to prepare and sign a Memorandum of Understanding 
(MoU) under the Ordinance. The MoU seeks to co ordinate the performance of functions of the 
Commission and the CA under the Ordinance, and set out the detailed arrangements for the two 
bodies in respect of dispute resolution, provision of assistance, allocation of responsibility, supply 
of information, authorship of educational materials or guidelines, etc.  
Question(s): 
13. Given that the Communications Authority and the Competition Commission have signed a 
Memorandum of Understanding under the Competition Ordinance, could HKC please provide more 
information on how the responsibility is shared between the two authorities and how disputes in 
the telecommunications sector and broadcasting sector are resolved?  14. In addition, have the CA and the Commission ever encountered situations in which it was 
unclear which body had authority? If so, could HKC please clarify how the responsibility was 
decided and assigned?  
Answer to Q.13 and 14 
As the CO has yet to come into full operation, actual coordination on competition matters between 
the Competition Commission ("Commission") and the Communications Authority ("CA") has not 
commenced.  
 As required under the CO, the Commission and the CA have to sign a memorandum of understanding ("MoU"). The MoU seeks to coor dinate the performance of functions of the 
Commission and the CA under the CO, and set out th e detailed arrangements for the two bodies in 
respect of dispute resolution, provision of assi stance, allocation of responsibility, supply of 
information, authorship of educational materials or guidelines, etc.. The Commission and the CA 
have initiated the preparation of the MoU, and would consult the local legislature on the draft 
before signing it.  WT/TPR/M/306/Add.1 
 
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  PART II: Regarding the Government Report (WT/TPR/G/306) 
 
3. TRADE POLICY OBJECTIVES AND DEVELOPMENTS  3.3 Bilateral and Plurila teral Trade Cooperation 
3.3.1 Mainland and Hong Kong Closer Ec onomic Partnership Arrangement (CEPA) 
Page 7 (Para 3.8)  
On the services front, there are 403 liberalization measures under CEPA, enabling HKC service 
suppliers to have preferential access to the Main land market in 48 service sectors. CEPA also 
enhances cooperation of the two sides in financial services, tourism promotion and mutual recognition of professional qualifications.  
 
Question(s) 15. In the future follow-up Supplement to the CEPA trade in services agreement, will a negative-
list approach be used?  
 Answer 
Insofar as it is conducive to the goal of basica lly achieving liberalization of trade in services 
between the Mainland and HKC by the end of the Na tional 12th Five-Year Plan period, we are open 
to the adoption of whatever format, includ ing the negative list approach, in CEPA.  
 
16. How does the HKC government assist HKC service suppliers that encounter local regulatory 
obstacles when they invest in Mainland Ch ina using the preferential terms of CEPA? 
 
Answer 
The HKC government has been working closely with the authorities in the Mainland China through 
various mechanisms to address and follow up on problems encountered by HKC's enterprises in 
using CEPA liberalization measures. Meanwhile, HKC would maintain close liaison with the trade to 
render necessary assistance as and when required to facilitate the fuller and better use of CEPA liberalization measures.   WT/TPR/M/306/Add.1 
 
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  CHINA 
REPORT BY THE SECRETARIAT 
 3.4.2 Competition policy and price controls 
Page 51 
3.109. No merger notification is required under the Competition Ordinance Q1. What are the conditions laid out for the Competition Commission of Hong Kong, China to 
initiate a merger and acquisition review? What proceedings and timings have been defined for the 
review?  
 Answer 
The Competition Commission in conjunction with the Communications Authority are in the process of developing draft guidelines on how the merger  rule will be applied and enforced, against the 
background that the merger rule under the current law is only applicable to the 
telecommunications sector. 
 Page 52 
3.113. In the telecommunications sector, the Competition Commission has concurrent jurisdiction 
with the Communications Authority. Q2. In practice, how does the competition agency coordinate with the communication authority?  
 
Answer 
The Competition Ordinance requires that the Competition Commission and the Communications 
Authority have to sign a memorandum of understanding ("MoU"). The MoU will coordinate the 
performance of functions of the two bodies, set out the detailed arrangements for the two bodies 
in respect of dispute resolution, provision of a ssistance, allocation of responsibility, supply of 
information, authorship of educational materials or guidelines, etc. 
 
4.2.3 Rice Page 68 4.21. Hence, imports and exports of rice are subj ect to licenses, and the Government enforces a 
reserve-stock to ensure sufficient supply for local consumption. ……Upon registration, they are 
required to make an undertaking to import specific quantities on a quarterly basis and to import such quantities within the relevant period. 
Q3. Please provide more information on the proced ures and requirements for obtaining licenses.  
 Answer 
All imports and exports of rice into and from Ho ng Kong, China (HKC) must be covered by valid 
import or export licences. Applicants shall subm it completed licence forms to the Government. The 
Government will check and verify the applicatio ns, and may request the applicants to provide 
further information/supporting documents if deemed necessary. Normally, the Government 
processes a licence application in one working day. An import licence is valid for 6 weeks while an 
export licence is valid for 28 days, both from the date of issue.  
Q4. Please explain how "the relevant period" is defined?  
 Answer 
The "relevant period" refers to an import period of a quarter of a calendar year, namely January to March, April to June, July to September and Octobe r to December. The rice stockholder is required 
to import the quantity of rice he has undertaken to import within that specified import period. 
 
4.22. The last time part of the stocks was released was in 1989.  
Q5. Please provide the detailed information on how the situation was handled at that time. 
 
Answer 
There was a sudden surge in demand of rice by consumers in early June 1989. The Government, 
in consultation with the rice trade, decided to release 20% of the reserve stock (the reserve stock 
in 1989 was 45,000 tonnes) to the market to meet the rising demand. With the timely increase in 
rice supply, the market situation quickly returned to normal.   WT/TPR/M/306/Add.1 
 
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  2.4 Investment Regime 
Page 30 
2.50. HKC considers investment promotion and protection agreements (IPPAs) as a means to attract foreign investment and to enhance protec tion of HKC's outbound investment. ……HKC will 
start negotiations on an investment agreement with Chile upon the entry into force of the HKC-
Chile FTA. Q6. Please list the specific names of IPPAs that Ho ng Kong, China has entered into and brief the 
main features of the investment protection and promotion mechanism, as well as whether they 
contain any articles that could cover outbound investment protection for the Chinese mainland companies and other foreign companies based in Hong Kong, China?  
Answer 
HKC signed 17 IPPAs with the following economies: 
 
1. Australia; 
2. Austria; 3. the Belgo-Luxembourg Economic Union; 
4. Denmark; 
5. Finland;  6. France; 7. Germany; 
8. Italy; 
9. Japan; 10. Republic of Korea; 
11. Kuwait; 
12. the Netherlands; 13. New Zealand; 
14. Sweden; 
15. Switzerland; 16. Thailand; and 17. the United Kingdom. 
 
HKC's IPPAs generally provide for the following:  
1. fair and equitable treatment as well as full protection and security of investments; 
2. non-discriminatory treatment of investments; 3. non-discriminatory treatment in compensation for losses owing to, among others, war or 
other armed conflict; 
4. compensation for expropriation of investments; 5. free transfer abroad of investments and returns; 6. settlement of investment disputes between a contracting party and an investor of another 
contracting party; and 
7. settlement of disputes between the contracting parties on interpretation or application of the 
IPPA. 
 
Under HKC s IPPAs, "investors" in respect of HK C typically include companies incorporated or 
constituted under HKC's law. Therefore, outbound investments (in the other contracting parties' 
areas) of companies incorporated or constituted under HKC's law, regardless of the ownership of 
such companies, are generally protected by the IPPAs.  
 3.1 Overview 
Page 31 
Since March 2013, powdered formula for infants and young children is subject to export licensing in order to ensure local supply of the product. Excise duties may be refunded, if the goods on 
which they were paid are exported. HKC, as a free port, does not maintain any other special 
economic or free zones schemes. The Government supports exporters mainly through export credit insurance and funding for export promotion activities. 
 
Q7. It will be appreciated if Hong Kong, China could provide the measures applied to fulfill funding 
for export promotion activities.   WT/TPR/M/306/Add.1 
 
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  Answer 
The government of Hong Kong, China puts in place the SME Export Marketing Fund (EMF) which 
provides financial assistance (in form of a monetary grant) to all eligible enterprises registered in HKC under the Business Registration Ordinance (Chapter 310) and fulfil the definition of an SME 
(i.e. employing fewer than 100/50 workers for enterprises engaging in manufacturing/non-
manufacturing businesses respectively). The grant can be used for their participation in export promotion activities (including trade fairs/exhibitions and trade missions to overseas markets), as 
well as placement of advertisements on printed trade publications and eligible trade websites. For 
each application, the EMF provides a grant up to 50% of the total approved expenses in connection 
with an eligible export promotion activity, or HK$50,000 (~USD6,410) whichever is the less. Since 10 June 2013, the cumulative amount of grant that each SME may apply for has been raised from 
HK$150,000 (~US$19,230) to HK$200,000 (~US$25,641), with the condition that the additional 
HK$50,000 (~USD6,410) must be used by the SME to participate in new export promotion activities other than those previously funded by the EMF. 
 
Q8. Apart from export credit insurance and tax refund, are there any other supporting measures 
for export? If the answer is positive, please elaborate on them. 
 
Answer 
Trade promotion activities, which are supporting measures for export, are promoted by the Hong Kong Trade Development Council (HKTDC). It is the international marketing arm for HKC -based 
traders, manufacturers and service providers. With more than 40 global offices, including 13 in the 
Mainland, the HKTDC promotes HKC as a platform for doing business with Mainland China and throughout Asia. The HKTDC promotes exports, with particular focus on exports by SMEs, through, 
inter alia, organizing trade fairs, conferences, se rvices promotion activities and overseas business 
missions while providing information on industri es and services through trade publications, 
research reports and online.   
 
Q9. Hong Kong, China's export credit insurance market is open to competition. Please explain 
what kind of attitude does the government of Hong Kong, China hold towards the export credit insurance institutions? Does it provide any support measures for these institutions? And does it 
provide any preferential policy treatment to ECIC? 
 Answer 
As a free market economy, Hong Kong, China welcomes insurance companies which are well established and managed, and financially sound to enter the insurance market of HKC, regardless 
of their place of incorporation. The export credit insurance market is no exception.  
 
At present, several of the world's leading specialist export credit insurers have established their presence in HKC. On the regulatory front, we do not have any supportive measures particularly applicable to them. All insurers authorized in HK C are subject to the same authorization criteria 
and prudential regulatory supervision.  
 The ECIC was set up under the Hong Kong Export Credit Insurance Corporation Ordinance. It does 
not aim to compete with the private market, but to  fill the market gap where the capacity of the 
private commercial sector is limited or insuffi cient to support the needs of HKC's exporters, 
especially SMEs. 
 
3.3.4 Export assistance and facilitation Page 46  3.84. The Hong Kong Export Credit Insurance Corporation (ECIC) provides insurance to exporters 
against losses from non-payment by buyers due to commercial and political risks. ……. In March 
2013, the ECIC introduced a Small Business Policy (SBP) for enterprises with an annual business turnover of less than HK$50 million, providing ex porters with more flexibility in taking out 
insurance cover.  
 Q10. Please describe the specific measures applied to implement ECIC's Small Business Policy 
(SBP). What kind of facilitation these measures have brought about for the SMEs? How does the 
Hong Kong, China evaluate the practical effects of the measures?  WT/TPR/M/306/Add.1 
 
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  Answer 
Introduced in March 2013, the ECIC's Small Business Policy (SBP) is an insurance product 
specifically designed for HKC's exporting compan ies with an annual turnover of less than HK$50 
million (~USD6.41million). SBP offers flexible arrang ements to suit the needs of SMEs, including 
options for different indemnity ratios (60% to 90%), and shortened waiting period for claim 
payments below HK$0.5 million (~USD64,100) in the event of buyer default to 3 months from 4 
months. In addition, special concessions includ ing waiver of annual policy fee and up to 20% 
premium discount are offered to SBP policyholders for a period of two years from the product 
launch.   The features and measures of SBP aim to assist SMEs to grow business while maintaining prudent 
credit management, and to reduce their financial burden amidst a challenging external 
environment. So far, the measures have been well received. As of end September 2014, more than 1,000 HKC's exporters have taken out SBP with  the insured export volume amounting to over 
HK$3 billion (~USD384.6million).  
 REPORT BY HONG KONG, CHINA 
 
Page 18  4.4 Enhancing Corporate Governance 
4.62. The HKC Government attaches much importance to upholding HKC's corporate governance 
standards in line with international standards. One significant development in this area was the enactment of the new Companies Ordinance (Chapter 622), which came into operation in March 
2014. This new Ordinance contains provisions that enhance corporate governance on multiple 
fronts. These include strengthening accountability of directors, improving disclosure of company information, strengthening auditors' rights, enhancing shareholders' engagement in the decision-
making process and fostering shareholder protection. 
 Q11. Does the new Companies Ordinance strengthen management control of shell Company 
registered in Hong Kong, China? Does the new regulation oblige the companies registered in Hong 
Kong, China to disclose more information?  
 Answer 
The new Companies Ordinance has introduced a number of new provisions to enhance shareholders' rights as regards the management of companies incorporated in HKC and to strengthen the accountability of directors. Examples include: 
- provisions to restrict the appointment of corporate directors by requiring every private 
company to have at least one natural person to act as a director; 
- provisions to clarify a director's duty of care, skill and diligence; 
- provisions that expand the scope of the unfair prejudice remedy available to the shareholders; 
and 
- more effective rules to deal with directors' conf licts of interests, including expanding the scope 
of prohibition on loans or similar transactions with directors, expanding the requirement for 
seeking shareholders' approval to cover direct ors' employment contracts which exceed three 
years. 
 
The new Companies Ordinance requires a company incorporated in HKC to disclose more company 
information. Examples include: - public companies and large private companie s and guarantee companies are required to 
prepare a more comprehensive directors' report which includes an analytical and forward-
looking business review. The business review pr ovides useful information for shareholders, 
including information relating to environmental and employee matters that have a significant effect on the company. 
- the ambit of disclosure of material interests of directors in contracts of significance with the 
company is widened to cover transactions and arrangements, and the coverage includes the 
material interests of entities connected with a director in the case of public companies. WT/TPR/M/306/Add.1 
 
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  UNITED STATES  
Questions related to the Secretariat's Report (WT/TP R/S/306) 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.2 Measures Directly Affecting Imports  
3.2.8 Sanitary and phytosanitary requirements  
 
Page 39, paragraph 3.50 and 3.51 : In paragraph 3.50, the Secretariat report states, "HKC 
notified 8 regular SPS measures to the WTO between January 2010 and April 2014." Furthermore, 
in paragraph 3.51 of the Secretariat report, at the same page, the Secretariat states, "There was a relevant international standard for five of the notified measures, and HKC considers that all five 
were in conformity with that international standard." 
 
- With regards to one such notification circulated under  G/SPS/N/HKG/38, which is 
HKG's notification of its draft Code of  Marketing and Quality of Formula Milk and Related 
Products and Food Products for Infant & Young Children, what is the scientific rationale for  
the application of the marketing ban for products for children up to 36  months of age? 
 
- Furthermore, regarding G/SPS/N/HKG/38, has a scientific justification,  and/or risk 
analysis, been conducted and provided for the Code? 
 
Answer 
As a public health measure, the Hong Kong Code of Marketing and Quality of  Formula Milk and 
Related Products and Food Products for Infant & Young  Children ("HK Code") aims to protect 
breastfeeding and contribute to the provision of safe and adequate nutrition for infants and young children. A
 balanced and reasonable approach has been adopted to protect public health  
while ensuring the policies are in conformity with the principles and objectives underpinning the World Trade Organization ("WTO") Agreements. HKC would like to clarify and emphasize that the HK Code is a voluntary
 guideline. It applies non-discriminately to local or overseas 
manufactures  and distributors of designated products as defined by the HK Code which are  
marketed in Hong Kong, China (HKC). Moreover, the HK Code is still in the  drafting stage. 
In drafting the HK Code, the Taskforc e on Hong Kong Code of Marketing of  Breast Milk 
Substitutes ("Taskforce") has made reference to the International Code of Marketing of Breast 
Milk Substitutes ("WHO Code") and relevant  subsequent World Health Assembly ("WHA") 
resolutions which clarified the WHO Code and sought to bring it up-to-date with scientific development and evolving marketing strategies. The WHO Code and WHA resolutions
 prescribe 
the international standards on the matters covered, which  underpin the national public health 
policies of its Member States. 
According to the World Health Organization statement entitled "information concerning the use 
and marketing of follow-up formula" in 2013 ("WHO statement"), "follow-up formula is 
unnecessary and unsuitable when used as  a breast milk replacement from six months of age 
onwards" and "even though follow-up formula is not necessary, and is unsuitable when used as a  
breast milk replacement, it is marketed in a way that may cause confusion  and have a negative 
impact on breastfeeding". The WHO statement concluded that "if follow-up formula is marketed or otherwise represented to
 be suitable, with or without modification, for use as a partial or total 
replacement for breast milk, it is covered by the (WHO) Code. In addition,  where follow-up 
formula is otherwise represented in a manner which results  in such product being perceived or 
used as a partial or total replacement for  breast milk, such product also falls within the scope of 
the WHO Code. 
Regarding the practice of implementing the WHO Code, HKC notices that it varies worldwide 
among different economies according to their specific social needs and legislative frameworks, ranging from full implementation through
 regulation to partial implementation in the form of a 
voluntary code. As of  April 2011, 165 countries have im plemented the WHO Code through  
different measures such as enacted legislation, voluntary Code, etc. Among  the 37 countries 
which have fully adopted the WHO Code by mandatory  approach, the age group also 
varied, ranging from 0 to 6 months, to 24  months or above, or even up to 5 years old. WT/TPR/M/306/Add.1 
 
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  HKC completed the 4-month public consultation of the draft HK Code on 28  February 2013 and 
reported the consultation result to the Legislative Council of HKC in July 2014. HKC is now in 
the process of refining the detailed provisions of the HK Code, taking into consideration the views collated from public consultation, the recent legislative amendments to the Food and 
Drugs (Composition and Labelling) Regulations (Cap. 132W, the Laws of
 Hong Kong) 
regarding nutritional composition and labelling requirements for  formula products and foods 
intended for infants and young children under  the age of 36 months, and the plan to conduct a 
public consultation on the  regulation of nutrition and health claims relating to the concerned 
products.  In other words, HKC has yet finalized and issued the HK Code. In the course  of refining 
the HK Code, advice will be sought from the HKC Government's legal advisor to ensure it is in conformity with WTO Agreements before
 launching. WT/TPR/M/306/Add.1 
 
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  INDONESIA 
Government Report 
 
4 SUSTAINING LONG TERM GROWTH AND IMPROVING BUSINESS ENVIRONMENT 
4.1.9 Intellectual property trading 
Page 15 Para. 4.40 
 
"The Government set up a Working Group on Intellectual Property (IP) Trading (the Working 
Group) in March 2013 to advice on the overall strategy to promote HKC as a premier IP trading hub in the region, and devise specific polici es and measures in support. The Working Group 
promulgated a strategic framework for forging ahea d the development of IP trading in November 
2013. This framework covers four strategic areas, namely (i) enhancing the IP protection regime; 
(ii) supporting IP creation and exploitation; (iii) fostering IP intermediary services and manpower 
capacity; and (iv) pursuing promotion, education and external collaboration efforts. In 2014, the 
Working Group is working to explore specific policies and other support measures under each 
strategic area for promoting Hong Kong, China as a regional IP trading hub."  
Question 
1. Concerning the Working Group on Intellectual Property (IP) Trading, what is the task and 
authority of this Working Group? 
 
Answer 
The Working Group was set up in March 2013 under the chairmanship of the Secretary for 
Commerce and Economic Development. Its task is to advise on the overall strategy to promote 
Hong Kong, China (HKC) as a premier IP trading hub in the region, and devise specific policies and 
measures in support.  
2. Could you elaborate more the contribution of this Working Group for the formulation of 
strategy for the development of IP trading since its establishment?   
 Answer 
The Working Group endorsed in end-2013 a strate gic framework for further developing Hong 
Kong, China as an IP trading hub. It sets out HKC's vision, missions and ten focus strategies in four strategic areas, namely enhancing the IP protection regime; supporting IP creation and 
exploitation; fostering IP intermediary services and manpower capacity; and pursuing promotion, 
education and external collaboration efforts. Details can be found at http://gia.info.gov.hk/general/201 311/22/P201311220572_0572_136351.pdf . Based on this 
framework, the Working Group is exploring spec ific policies and other support measures to 
formulate proposals for the Government's consideration.  
 SECRETARIAT REPORT 
 SUMMARY  
Page 7 Para. 2 
 
"In the aftermath of the global financial turm oil (2008-09), the HKC Government implemented 
countercyclical measures to preserve financial stability and stimulate the local economy, affected 
by weak external demand. The economy quickl y rebound in 2010 and 2011, and after a brief 
slowdown in 2012, grew by 2.9% in 2013. It is now forecast to expand by 3.75% in 2014."  
Question 
3. Could HKC elaborate more about " countercyclical measures to preserve financial stability and 
stimulate the local economy " that implemented by the government. 
 
Answer 
The global financial turmoil (2008-09) was the most severe financial crisis for the world economy 
since the Great Depression in the 1930s. Being a small open economy, HKC economy was 
inevitably hit. Indeed, it slid into recession in  its aftermath. In response, the HKC government WT/TPR/M/306/Add.1 
 
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  introduced various countercyclical measures to support the economy and employment as well as to 
safeguard financial stability. The measures also provided relief to people. The more notable 
measures introduced in 2008 and 2009, which were mostly one-off, included:  ‐ enhancing the existing and introducing the new Small and Medium Enterprises (SME) Loan 
 Guarantee Scheme to address the funding needs of SMEs 
‐ expediting works projects and creating temporary and other posts to increase new job 
 opportunities  
‐ providing one-off tax reduction and tax relief, rates concession, rental reduction for most 
 government properties, and an extended freeze on government fees and charges related to  people's livelihood  
‐ waiving public rental housing tenants part of their rental payments  
 
On preserving financial stability, local regulatory  bodies provided liquidity assistance to the 
banking system and provided full deposit guarant ee according to the principles of the Deposit 
Protection Scheme from late 2008 to late 2010 and the establishment of a Contingent Bank Capital 
Facility in September 2008.  
Page 9 Para. 20 
 
"HKC has a relatively liberal regime for its bilate ral air transport agreements. However, having the 
number one air-cargo airport in the world, considering this activity as strategic, and facing 
capacity and land constraints, HKC has a relatively less liberal regime for certain auxiliary services 
(e.g., cargo ground handling and maintenance services), which are subject to a limited number of licenses. Computer reservation services, and selling and marketing services are fully liberalized." 
 
Question 
4. What is consideration to limit the issuance of license for cargo ground handling and 
maintenance services?  
 Answer 
As one of the guiding principles for the award and management of various license/franchises, Hong 
Kong International Airport (HKIA) encourages competition on the provision of ground handling 
services (including but not limited to air cargo, aircraft maintenance services, etc.) amongst the service providers to ensure competitive prices and service standards. There is no pre-set limitation 
on the number of service providers.  
 However, the Airport Authority Hong Kong (AA) will continue to review the service demand and the 
market sustainability in order to determine the num ber of service providers required having regard 
to the optimisation of land usage and operation constraints.  
5. Are there any other services that subject to a limited number of licenses? 
 
Answer 
There is no pre-set limitation on the number of licenses for each respective ground handling 
services at HKIA. The AA will continue to review the service demand and the market sustainability 
in order to determine the number of service provid ers required having regard to the optimisation 
of land usage and operation constraints. 
 
2 TRADE AND INVESTMENT REGIME 2.3 Trade Agreements and Arrangements 2.3.1 WTO 
 
Page 23 Para. 2.12 
 
"HKC was the first Member to notify the WTO that it would implement all provisions contained in 
Articles 1 to 12 of the Agreement on Trade Facilitation upon its entry into force, without using any of the flexibilities provided in the Agreement." 
 
Question 
6. We would like to know Hong Kong views concer ning Public Stock Holding (PSH)? We ask Hong 
Kong gives its effort and commitment to success PSH and to conclude the DDA? WT/TPR/M/306/Add.1 
 
- 96 - 
 
 
  Answer 
HKC is a staunch supporter of the multilateral tr ading system. Within and outside the WTO, we 
have reiterated our commitment to the early conclusion of the Doha Development Agenda (DDA) negotiations. We stand ready to work constructive ly with other Members towards an outcome that 
will strike a balance between agriculture, NAMA and services, with development at its core. The 
decisions made at the Ninth WTO Ministerial Conference (MC9) in Bali are significant milestones in revitalizing the multilateral trading system. They pave the way for further negotiations on the 
remaining issues under the DDA. 
 In this regard, HKC supports the implementation of  the Bali package in full as agreed at MC9, 
which encompasses the Ministerial Decision on Pu blic Stockholding for Food Security Purposes. 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 3.2 Measures Directly Affecting Imports 
3.2.1 Customs procedures and requirements 
 Page 32 Para. 3.11 
 "Anyone in HKC may engage in import and export business. However, prior to commencement of business, traders of dutiable goods and controlle d chemicals must be licensed by the C&ED; and 
traders of foods must register with the FEHD in accordance with the Food Safety Ordinance 
(Chapter 612)." 
 Question 
7. Referring to controlled chemical must be licensed by the C&ED, are there only for raw 
chemical product or also applied to products with chemicals contained? 
 
Answer 
Under the Control of Chemicals Ordinance, Chapter 145, Laws of Hong Kong, 25 substances are 
classified as precursors or essential chemicals for manufacturing of dangerous drugs or psychotropic substances. Hence, licensing control is applied to these 25 raw chemical substances.  
 
However, manufacturing products containing these raw chemicals are not subject to licensing control, unless a license is required for importing, exporting or transshipping the products under 
other Ordinances. 
 3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.2 Measures Directly Affecting Imports 
3.2.1 Customs procedures and requirements  Page 34 Para. 3.19 
 "After a pilot phase, HKC started formal implementation of the Authorized Economic Operator (AEO) Programme in April 2012, to grant local companies that satisfy pre-determined security 
criteria accredited trader status. There are two tiers of AEOs, Tier 1 AEOs and Tier 2 AEO; the 
latter have to comply with additional criteria. The benefits for AEOs include fewer customs controls, such as less customs inspection and prio rity customs clearance. The authorities expect 
that the 2-tier mechanism will attract more operators, in particular SMEs. Usually, Tier 1 AEOs will 
further enhance their security measures to acquire Tier 2 status. Participation in the AEO programme is voluntary and free of charge. The AEO programme is not open to companies not established in HKC. An AEO certificate is valid for three years, renewable.11 As of 30 April 2014, 
16 applicants held accredited trader status." 
 Question 
8. Concerning AEO, what are the authority and tasks of this Body? 
 Answer 
HKC has formed the Office of Supply Chain Security Management (OSCS) under the Customs and Excise Department to take forward the AEO Programme in HKC since 2012. Apart from assessing the level of compliance with the accreditation crit eria of the AEO applicants, OSCS will also help 
them to review their security profiles and give th em advice for rectification whenever appropriate. WT/TPR/M/306/Add.1 
 
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  OSCS will also monitor the state of compliance wi th the relevant standards by the accredited 
companies during the valid period of certification. 
 Besides, OSCS is taking active steps to develop mutual recognition arrangements on the AEO 
Programmes with other Customs administrations with a view to facilitating a seamless and secure 
flow of goods across border.  
9. What is the criteria to determine AEO as Tier 1 and Tier 2? 
 Answer 
To cater for different stakeholders of the industri es, HKC grants AEO status to qualified companies 
at two tiers. When applying for Tier 1 AEO status, a company has to comply with the criteria listed 
from (a) to (j) as enumerated below:  
a. customs compliance; 
b. maintenance of commercial records; c. financial soundness; 
d. premises security; 
e. personnel security; f. cargo security; g. conveyance security; 
h. business partner security; 
i. security education and training; j. information exchange, access and confidentiality; 
k. crisis management and incident recovery; and 
l. measurement, analysis and improvement.  
When applying for a Tier 2 status, a company should be in conformity with all the criteria. 
 
10. Who is authorized agency that determined AEO whether as Tier 1 or Tier 2? 
 
Answer 
Customs and Excise Department will grant AEO status to companies in accordance with their level 
of compliance with the pre-determined criteria. 
 
11. Is it possible for foreign operators that have its representative's office in Hong Kong to 
designate as AEO? 
 
Answer 
Under the HKC's AEO Programme, only local stakeholders such as manufacturers, importers, exporters, carriers, terminal operators, freight forwarders, warehouse operators, etc. engaging in 
the international supply chain activities may apply for the AEO status. 
 3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.2 Measures Directly Affecting Imports 
3.2.9 Standards and other technical requirements  
Page 42 Para. 3.67 
 
"Compulsory standards, i.e. technical requirements, apply to motor vehicles, machinery, fuels, consumer goods, toys, children's products, household electrical apparatus, portable firefighting 
equipment, and telecommunication apparatus and equipment. The authorities note that these 
technical requirements are imposed for safety, health, and environmental protection reasons"  
Question 
12. Are there any other products that required technical requirements other than set forth in this 
paragraph? 
 WT/TPR/M/306/Add.1 
 
- 98 - 
 
 
  Answer 
The examples set forth in this paragraph are not exhaustive. There are other products that require 
technical requirements. Some examples of other products include civil engineering construction components, food, pesticides, pharmaceutical products, etc. Product Standards Information 
Bureau (PSIB) has listed in its website1 contact points for various regulatory authorities which 
formulate their respective standards by making reference to international standards. PSIB is the WTO TBT enquiry point of HKC, and will also make referrals to relevant regulatory authorities in 
response to enquiries about standards from WTO Members.  WT/TPR/M/306/Add.1 
 
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  GUATEMALA 
¿Podría explicar cuáles son las características, beneficios y alcance de la calificación "puerto 
franco"? (related to paragraph 3.83 of the report prepared by the Secretariat).  
Answer 
A "free port" carries no barriers on trade. As an example, Hong Kong, China (HKC) is a "free port", 
which has no tariff on all imports and exports, tariff quota or surcharge. HKC does not maintain 
any non-tariff measures unless such measures ar e necessary to protect public health, safety, 
security and environment, and to fulfil obligations under international agreements.   HKC's free trade policy, coupled with its other market-oriented institutions, including free flows of 
capital and information, has helped to facilitate the working of market forces in allocating 
resources. This raises the degree of competition in the economy and enhances its overall efficiency and productivity, making HKC one of the world's major financial centres and a leading global trade, 
business and service hub, with business connections worldwide.  
 HKC, as a small and open economy, relies hugely on  international trade. In 2013, trade in goods 
and services of HKC amounted to around 460%  of its GDP, placing the city among the top 
economies in the world in terms of openness an d external trade. More than 7 000 overseas 
companies are operating in HKC, among them some 4 000 use HKC as their regional headquarters or offices.  
 
Moreover, HKC has been ranked the world's freest economy by the Heritage Foundation for the 20
th consecutive year, and also remains as the 3rd easiest place to do business in the world 
according to the World Bank's Doing Business 2015 Report. All these reflect that an open and free 
trade regime is the key to sustaining HKC's economic strength and competitiveness.  
 WT/TPR/M/306/Add.1 
 
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  HONDURAS 
1. In the Economic Environment, pages 12 and 13, paragraphs 1.6 and 1.8 .Could you 
please let us know, in addition to the set-up of a Working Group on Long-Term Fiscal Planning, what other policy measures Hong Kong, China, is ad opting to maintain fiscal sustainability in an 
ageing population context?  
 Answer 
 Fiscal prudence has long been the guiding principle of the Hong Kong, China (HKC) 
Government. Expenditure has to be kept with in the limits of revenues in drawing up the 
budget. These guiding principles have also been clearly reflected in Article 107 of the Basic Law which stipulates that "the Hong Kong Sp ecial Administrative Region Government shall 
follow the principle of keeping expenditure with in the limits of revenues in drawing up its 
budget, and strive to achieve a fiscal balance, avoid deficits and keep the budget commensurate with the growth rate of its gross domestic product." HKC Government also 
adheres to the principles of pragmatism, commitment to society and sustainability in 
managing public finances. 
 HKC has had ten consecutive years of surplus since 2004-05, with an accumulated fiscal 
reserve of HK$755.7 billion (equ ivalent to US$96.9 billion) as at 31 March 2014. Consolidated 
surplus for 2013-14 is HK$21.8 billion (equivalen t to US$2.8 billion or 1% of GDP). In 2014-
15, the Government will continue to enhance its competitiveness, help keep HKC's economy growing, improve its business environment, incr ease employment opportunities and maintain 
the health of public finances. In the medium term to 2018-19, the Government forecasts 
consolidated surpluses in four out of five years in the medium range forecast, with fiscal reserves accumulating to around HK$799.2 b illion (equivalent to US$102.5 billion) by end-
March 2019, representing approximately 29 % of GDP and 19 months of government 
expenditure. 
 In preparation for fiscal challenges arising from an ageing population, the HKSAR 
Government appointed the Working Group on Long-term Fiscal Planning ("Working Group") to 
perform a comprehensive fiscal sustainability appraisal on the current state of HKC's public finances and make projections of the Government's long-term fiscal position up to 2041-42. The Working Group Report released in March 2014 reveals that the Government's overall 
fiscal position in the short to medium term remains healthy. To ensure fiscal sustainability 
and avoid structural deficit in the longer term, the Government must seek to foster economic growth, and align the growth rate of govern ment expenditure with that of government 
revenue and GDP. To follow up on this Report , the Working Group has been invited to make 
further recommendations on possible options for a savings scheme for HKC and stepping up the management of government assets. 
 The Government is implementing a series of fiscal measures to tackle the anticipated 
structural deficit problem. They include effici ency savings programmes seeking to control the 
growth of government expenditure, and measures to preserve, stabilize and broaden the revenue base. The Government's fiscal position remains strong. HKC is confident that with 
resolute and timely action to address the fiscal sustainability issue, a structural deficit 
problem can be averted.  
2. Recent economic development, page 12, paragraph 1.7. Could Hong Kong, China, 
provide further explanation on how it applies land premiums?   
Answer 
Land premium is one of the major government re venue sources. Land premium revenue received 
has to be credited to a dedicated fund called Capital Works Reserve Fund. Money from the Fund may be spent for the purposes of the public works programme of the Government of HKC; 
purchase and installation of equipment consequential on implementing the public works 
programme; the development, purchase and installation of major systems and equipment used by the Government; capital subventions; acquisition of land, etc. 
 
3. Recent economic development, page 13, paragraph 1.11. To address the shortage of 
labour, has Hong Kong, China considered entering in to Agreements on the inflow of foreign labour?  
 WT/TPR/M/306/Add.1 
 
- 101 - 
 
 
  Answer 
It has not been the policy of the HKC to enter into agreements with other administrations on 
matters relating to foreign workers.  
4. Trade Policy Aims, page 23, paragraph 2.7. Is there any initiative or interest on the 
part of Hong Kong, China, in negotiating Free Trade Agreements with our country or the Region?   
Answer 
Hong Kong, China (HKC) has an open mind on entering into free trade agreements (FTAs) with 
other economies, so long as they are in our inte rests, are consistent with the principles of the 
World Trade Organization and can contribute to multilateral trade liberalizations. We welcome any 
of our trading partners to jointly explore the possibility of forging FTAs. 
 5. Competition and Price Control Po licy, page 50, paragraph 3.102.  Could you clarify 
which types of anticompetitive practices the Competition Tribunal has penalized. 
 Answer 
Since the Competition Tribunal has yet to come into operation pending the full commencement of the Competition Ordinance, no competition-related cases have been brought before the Tribunal.  
 6. Public Procurement, (page 54, para 3.122)  In October 2011, Hong Kong, China, 
presented an offer to extend its commitments under the Agreement to cover a further two Central 
Government entities and a further six service subsectors. What are these new Central Government entities and the six subsectors covered? Please indicate whether these sectors are open in the 
Trade Agreements subscribed by Hong Kong, China.  
 Answer 
The two additional government entities are the Chief Executive's Office and the Secretariat, Commissioner on Interception of Communications and Surveillance. As for the six new types of services, they include telecommunications services, services incidental to forestry and logging, services incidental to mining, sanitation and similar services, cleaning services of exhaust gases, 
and nature and landscape protection services. 
 Government procurement (GP) is covered under three of the agreements mentioned in 
Section 2.3.2 of the Secretariat Report (Regiona l and preferential trade agreements). The above 
six service subsectors are covered in our Free Trade Agreement (FTA) with Chile, which was negotiated after we tendered our offer to ex tend our commitments under the Agreement on 
Government Procurement (GPA) of the WTO, but not our Closer Economic Partnership Agreement 
with New Zealand. As regards the FTA with Member States of the European Free Trade Association (i.e. namely Iceland, Liechtenstein, Norway and Switzerland), since both HKC and all EFTA 
Members States are Parties to the GPA, the GPA including the commitments to open the six service 
subsectors has been incorporated into and made part of the FTA. 
 7. Intellectual Property Rights , page 61, paragraph 3.151.  Please indicate whether the 
protection granted by Hong Kong, China, to data exclusivity for originating pharmaceutical 
products and their clinical data is only effectiv e under the Free Trade Agreement signed with the 
Member-States of the European Free Trade Association (EFTA).  
 
Answer 
The data exclusivity period (currently for 8 years) under the HKC/EFTA FTA applies to all WTO Members by virtue of Article 4 of the TRIPS. 
 
8. Compliance,  page 63, paragraph 3.155.  Please indicate what the "No Fakes Pledge" 
publicity campaign promoting Hong Kong, China, Intellectual Property Department involves?  
 
Answer 
Intellectual Property Department has launched the "No Fakes Pledge" Scheme since 1998. The 
Scheme encourages participating retail merchants to set a good example by pledging not to sell or 
distribute counterfeit or pirated products, thus establishing and upholding honest and trustworthy trading practices.   WT/TPR/M/306/Add.1 
 
- 102 - 
 
 
  All participating retail merchants of the "No Fakes Pledge" Scheme have committed themselves to 
selling only genuine goods. All retail merchants participating in the "No Fakes Pledge" Scheme will 
post the "No Fakes" stickers and tent cards in their shops. With the "No Fakes" logo, tourists and consumers can easily identify reliable retailers an d shop with confidence. In November 2014, more 
than 950 retail merchants covering 6,715 outlets have participated in the Scheme. 
 The "No Fakes Pledge" Scheme not only promotes a sense of pride among traders, but also 
enhances awareness of intellectual property prot ection among retailers and consumers alike. For 
details, please visit: www.nofakes.hk . 
 
9. Energy, page 70, paragraph 4.30  Issues connected to electricity and gas prices are 
supervised by the Environment Agency. What is  the role of the Ministry of Commerce and 
Economic Development?   
Answer 
Energy policy is put under the portfolio of the Environment Bureau of the HKC Government, which 
is the ministry responsible for environmental protection, energy and sustainable development 
policies. 
 10. Manufacturing Sector, page 72, paragraph 4.39.  How can the shrinking 
manufacturing activity in the textile sector be explained?  
 
Answer 
The textiles and apparel industry of HKC has in creasingly moved away from the low value-added 
production activities to the high value-added manufacturing activities. With the relocation of 
production facilities offshore, firms today focus on supply chain management, marketing, product 
development and brand building, taking advantage of HKC's infrastructure, manpower and 
strategic location. WT/TPR/M/306/Add.1 
 
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  PERU 
2. TRADE AND INVESTIMENT REGIME 
2.3 Trade agreements and arrangements 3.2.9 Standards and other technical provisions 
 
General questions: - Which Hong Kong, China bilateral trade agreements contain provisions on Technical Barriers to 
Trade? 
 Answer 
The Hong Kong, China (HKC)-New Zealand Closer Economic Partnership Agreement, the HKC-Chile 
Free Trade Agreement (HKC-Chile FTA), and the HK C-EFTA FTA contain provisions on Technical 
Barriers to Trade (TBT).   
- What are the main features of such agreements and their contributions with regard to existing 
rights and obligations in the WTO TBT Agreement?  
Answer 
The HKC-New Zealand Closer Economic Partnership Agreement affirms the existing rights and 
obligations of the Parties with respect to each other under the WTO Agreement on Technical Barriers to Trade (TBT), promote information ex change and strengthen regulatory cooperation 
between the Parties (such as recognising equivale nt measures, aligning audit and verification 
procedures, improving transparency, etc.), elim inate unnecessary TBT between the Parties, and 
strengthen cooperation between the Parties in the work of international bodies related to 
standardisation and conformity assessments.  
 The TBT Chapter of the HKC-Chile FTA aims to in crease and facilitate trade by preventing and 
eliminating unnecessary obstacles to trade and enha ncing bilateral cooperation in accordance with 
the rights and obligations of the Parties with respect to the WTO TBT Agreement. 
 The Chapter contains provisions on, among others, international standards, trade facilitation, 
equivalence of technical regulation, conformity assessment procedures, transparency, and 
technical cooperation. In addition to reaffirming the rights and obligations of the Parties under the WTO TBT Agreement, mechanisms are established under the Chapter to enhance communication 
and cooperation in the fields of standards, technical regulations and conformity assessment 
procedures with a view to facilitating bilateral trade.  
 
The HKC-EFTA FTA consists of an Article on Technical Regulations (Article 2.7) under the Trade in 
Goods chapter.   The main features of the Article are that: 
(i) the rights and obligations of the Parties in respect of technical regulations, standards and 
 conformity assessment procedures shall be governed by the WTO TBT Agreement; 
(ii) the Parties shall strengthen their co-operation with a view to increasing the mutual 
 understanding of their respective systems and facilitating access to their respective markets; 
(iii) the Parties agree to hold ad hoc consultations when a relevant measure is considered by a  Party to be an obstacle to trade, in order to find an appropriate solution in conformity with 
 the WTO TBT Agreement; and 
(iv) the Parties shall exchange names and addre sses of designated contact points in order to 
 facilitate communication and the exchange of information.  
The Article reinforces the existing rights and obligations under the TBT Agreement as between the 
Parties, and through enhanced exchanges, comm unications, cooperation and consultations helps 
ensure that the relevant measures do not create unnecessary obstacles to trade.  
 WT/TPR/M/306/Add.1 
 
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  3. TRADE POLICIES AND PRACTICES BY MEASURES 
3.2 Measures directly affecting imports 
3.2.9 Standards and other technical provisions  
Paragraph 3.65 
 - If there is no official standardisation institution in Hong Kong, China, which bodies are 
responsible for adopting international or foreign standards? 
- What criteria are taken into account in the adoption of international or foreign standards?  Answer 
HKC does not have a central standards body developing and issuing domestic standards. Our regulatory authorities are empowered under relevant regulations to specify standards and requirements under their respective purview. 
 
Where standards have to be applied in HKC, our regulatory authorities in general adopt available 
international standards and where not available or not applicable, adopt regional or prevailing 
overseas standards, if they are deemed applicable and relevant to the objectives of the regulatory 
measure per se and local circumstances.   Paragraph 3.66 
- What is the average period allowed by Hong Ko ng, China between the publication of a regulation 
and its entry into force? - What is in the four addenda with additional information presented by Hong Kong, China for the 
adoption of technical regulations? 
 Answer 
The four addenda presented by HKC notified WTO members of the following information further to 
previous related WTO TBT notifications: (a) the date on which the legislative amendment for inclusion of two types of electrical 
 appliances, viz washing machines and dehumidifiers, into Mandatory Energy Efficiency 
 Labelling Scheme has been passed by the Legislative Council in HKC [Document number 
 G/TBT/N/HKC/31/Add 1]; (b) the date on which the Buildings Energy Efficiency Ordinance would come into full operation 
 [Document number G/TBT/N/HKC/33/Add 1]; 
(c) the date on which the Food Safety Ordinance would enter into force [Document number 
 G/TBT/N/HKC/35/Add 1]; and  
(d) extension of the final date for comments on the "Consultation Document on Legislative 
 Proposals Relating to Formula Products and Foods Intended for Infants and Young Children 
 under the Age of 36 Months in Hong Ko ng" [Document number G/TBT/N/HKC/44/Add 1]. 
 
Amongst the 11 TBT notifications made by HKC in the period January 2010 to April 2014 (i.e. 
G/TBT/N/HKG/34-44), only three are related to mandatory technical regulations that have been entered into force (G/TBT/N/HKG/34, G/TB T/N/HKG/35 and G/TBT/N/HKG/40). The average 
period between the publication of the regulation and its entry into force (including grace period) is 
about nine months. As regards the four addenda to the original notifi cations, three serve to notify the final date of 
entry into force and the availability of the ad opted final text of the relevant TBT measure 
(including information on where the final text can be obtained (e.g. website address)), and one is to notify the extension of the final date for co mments in response to the interest expressed by 
certain Members.  
 
OTHER QUESTIONS  
With regard to subparagraph 3.9 on page 37, wh ere it is indicated that the Customs & Excise 
Department is responsible for applying border measures, including those concerning intellectual property rights: 
- What are these measures and what is the role of the intellectual property authority in the 
application or follow-up of such measures?  
 WT/TPR/M/306/Add.1 
 
- 105 - 
 
 
  Answer 
The Customs and Excise Department (C&ED), the sole enforcement arm of the IPR laws, is 
responsible for taking criminal enforcement actions against infringing activities both in the inland and at the border.  
 
To combat the import, export and transhipment of IPR infringing goods, the C&ED has been taking stringent enforcement actions through close cooperation with the rights holders, intelligence 
exchange and parallel operations with Mainland China and overseas law enforcement agencies, 
and collaboration with international organiza tions. There are provisions under our Trade 
Descriptions Ordinance and Copyright Ordinance for a trade mark owner or a right holder to apply to the Court where he has reasonable grounds for suspecting that the importation of goods that 
constitutes infringing goods in respect of which he is a right holder may take place, the Court may 
make an order directing the Commissioner of Custom s and Excise or an authorized officer to take 
reasonable measures to seize or detain the goods on or after its importation . 
 
- Is there a Single Window for Foreign Trade mechanism in Hong Kong? If so, does it only cover entry procedures for goods or is it also applicable to other stages of the import logistic process?   
 
Answer 
There is a platform, namely Government Electronic  Trading Services, for the trading community to 
submit a number of trade-related documents (e.g. trade declaration and manifest) to the 
Government electronically to fulfil import and ex port-related regulatory control requirements. On 
the B-B front, importers, logistics operators etc.  handle transactions among themselves. There are 
commercial platforms to facilitate their information flow.  
 
In subparagraph 3.14 on page 38, it is stated that  for air freight, carriers may submit information 
on the cargo before the arrival of the aircraft. On this matter: 
- Can this import declaration submitted by the importer or his representative also be submitted 
before arrival of the means of transport, whether it is by sea or by air? If so, what is the clearance 
rate for this type of declaration made befo re the arrival of the means of transport?  
 
Answer 
There are arrangements for the lodging of advance cargo information to Customs for air and other 
transport modes. The advance information facilitates risk-profiling for decision on which 
consignments are to be examined by Customs. Without a fixed "examination rate", our Customs 
will endeavour to maintain a smooth flow of legitimate goods as always.   
Subparagraph 3.17 on page 39 
- How does the electronic lock technology referred to in subparagraph 3.17 on page 39 work?   
 Answer 
Upon import Customs clearance, the cargo on the conveying GPS-monitored truck will be sealed by 
an electronic lock that is equipped with a Radio Frequency Identification (RFID) reader. Customs officers will then keep track of the movement of truck and the status of the electronic lock 
throughout the journey via an internet-based real-time monitoring platform. At the point of exit, 
the cargo will be unsealed by the RFID reader during Customs clearance.  
Subparagraph 3.18 on page 39 
- Is the amount to be paid by users to obtain the confirmation certificate for goods which are subject to preferential treatment by virtue of th e ECFA provided for in subparagraph 3.18 on page 
39 based on the cost of the service or does it represent income for the C&ED?  
 
Answer 
The amount charged under the scheme, which is up to US$20 only for most cases, is calculated on 
a cost-recovery basis. For more information, please visit the webpage: 
http://www.customs.gov.hk/en/trade_f acilitation/ecfa/charge/index.html  
 
Subparagraph 3.18 on page 39 
- What is the current percentage of customs declaration rates applicable to the imports and exports mentioned in subparagraph 3.18 on page 39?  
 WT/TPR/M/306/Add.1 
 
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  Answer 
The following sets out the rate of declaration char ge (in HK$) per import or export declaration: 
 Import 
Non-food items: HK$0.2 (or US$0.0256) in respect of the first HK$46,000 of the value of the goods, and HK$0.125 in respect of each additional HK$1,000 or part thereof (rounded up to the nearest 10 cents) 
 
Food Items: HK$0.2 per declaration irrespective of the value  Export 
HK$0.2 in respect of the first HK $46,000 of the value of the goods, and HK$0.125 in respect of 
each additional HK$1,000 or part thereof (rounded up to the nearest 10 cents)  
According to subparagraph 3.19 on page 39, for the period between April 2012 and April 2014: 
- How many companies requested to qualify for the status of accredited trader?  
 
Answer 
Since the formal launch of the HKAEO Programme in April 2012, Hong Kong, China has received 
about 40 applications for joining and a number of enquiries.  
Subparagraph 3.21 on page 40: 
- In practice, what is the percentage of users who employ of the services of customs brokers, 
according to the provisions of subparagraph 3.21 on page 40? 
 
Answer 
There is no customs broker system in Hong Kong, China. WT/TPR/M/306/Add.1 
 
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  ECUADOR 
1. In accordance with Chapter 3, page 34, paragraph 3.20, about the mutual recognition 
agreements with the authorized economic operator s, signed by Hong Kong, China, with Mainland 
China (October 2013), India (November 2013), and the Republic of Korea (February 2014), 
through which traders accredited as AEOs by the C&ED receive the benefits provided under the 
AEO schemes in Mainland China, India, and the Republic of Korea, and vice versa . 
Chapter 3, page 34, and paragraph 3.19, regarding the Authorized Economic Operator (AEO) 
Programme of Hong Kong, China: "The authorized  operators have the following benefits: fewer 
customs controls, fewer inspections and priority customs clearance." 
Could Hong Kong, China let us know if there exis ts any difference between the advantages granted 
to the HKC AEO accredited traders and those auth orized economic traders granted by countries 
with which HKC has signed mutual recognition agreement? If any, please explain how these 
differences are implemented, so as to provide domestic and imported products with the same treatment. 
Answer 
Hong Kong, China (HKC) has ratified mutual reco gnition agreements (MRA) with Mainland China, 
India, Korea and Singapore. Under the MRA, bo th Hong Kong AEOs and authorized economic 
traders of these four economies will enjoy the following clearance facilitation in HKC: 
(a) reduced inspections as they are acknowledged to be trusted partners of Customs and the  goods they import / export are considered of lower risk; and (b) prioritized Customs clearance if the goods they import/export are selected for inspection.  
In addition, could Hong Kong China, explain how this type of agreement complies with the 
principles of Most-Favoured-Nation (MFN) treatm ent, regarding the import of similar products 
originating in other WTO members?   
Answer 
Hong Kong, China applies the same clearance procedures for goods imported from all WTO 
Members. To enhance global supply chain securi ty, we would develop the MRA with WTO Members 
which have fully launched their AEO programmes.  
2. In accordance with chapter 3, page 31, paragraph 3.4, "The government supports exporters, 
mainly through export credit insurance, and funding for export promotion activities."  
Could Hong Kong, China explain who will assume the premium costs, and how this export credit 
insurance is financed?   
Answer 
Policyholders who take out insurance cover assume the premium costs. In Hong Kong, China, 
export credit insurance is provided by private insurance companies and an export credit agency 
known as the Hong Kong Export Credit Insurance Corporation (ECIC). The ECIC was established by statute under the Hong Kong Export Credit Insurance Corporation Ordinance and operates on a 
commercial basis. The Government does not provide any recurrent subvention to the ECIC.  
3. In accordance with chapter 3, page 39, paragraph 3.46, "Textile imports coming from Mainland 
China are subject to an import licence per consig nment entering HKC. Licences are issued by the 
Director-General of Trade and Industry, and serve as  a surveillance system to back up the export 
control system."  
Could Hong Kong, China explain how this license can help back up the export control system, 
when these licenses are taken out for imports? 
Answer 
Hong Kong, China (HKC)'s textiles control system is a law-based system. It is built upon an 
import/export licensing system and an origin ce rtification system. The purpose of the textiles 
control system is to ensure textiles exports claiming Hong Kong origin are manufactured in HKC. 
Enforcement is taken to forestall origin abuses and any textiles malpractices where appropriate.  
4. In accordance with Chapter 3, page 51, paragraph 3.110, regarding exemptions and exclusions 
from the application of rules of conduct. 
Could Hong Kong, China provide an example where the Chief Executive in Council is allowed to 
exercise the exemption from the application of ru les of conduct for "exceptional and compelling WT/TPR/M/306/Add.1 
 
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  public policy reasons, or to avoid conflicts between  the Order and an international obligation that 
directly or indirectly relates to Hong Kong, China?"  
Answer 
Following international best practices, the Ordinance provides for an exemption from the First and 
Second Conduct Rules on exceptional and compelling  public policy grounds. Whether a particular 
agreement/ conduct satisfies the conditions of this  exemption could only be determined when such 
a case arises.  
5. In accordance with Chapter 3, page 61, paragraph 3.150, "Hong Kong, China has amended its 
legislation to apply the WTO paragraph 6 system, wh ich allows it to grant compulsory licenses for 
export of pharmaceutical products to WTO Members with no or insufficient capacity to manufacture patented products." 
Could Hong Kong, China let us know how this comes to terms with the regulations included in 
paragraph f) of the Article 31 of the Agreement on  Trade-Related Aspects of Intellectual Property 
Rights?  
Answer 
Under Article 31 of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS 
Agreement) of the World Trade Organization (WTO), a WTO Member may issue a compulsory 
licence allowing a third party to use the subject matter of a patent (such as generic versions of 
patented drugs) provided that the conditions prescr ibed are fulfilled. By paragraph (f) of Article 31, 
any such use shall be authorized predominantly fo r the supply of the domestic market of the WTO 
Member authorizing such use, which means that  the majority of the product should not be 
exported. WTO Members with insufficient or no manufacturing capacities in the pharmaceutical 
sector can therefore face difficulties in making effective use of the compulsory licensing system as they cannot appeal to other economies with manufacturing capacity to export generic versions of 
the product to them. As such, the General Co uncil of the WTO decided in August 2003 to 
temporarily waive the obligations as set out in the above Article and to allow pharmaceutical products made under compulsory licences in on e WTO Member to be exported to another WTO 
Member lacking production capacity.  
In December 2005, the General Council of the WTO further adopted a Protocol which would replace 
permanently the temporary waiver if it was acce pted by two thirds of the WTO Members. The 
original deadline for acceptance was 1 December 2007. The latest WTO General Council decision of 
26 November 2013 extended the deadline to 31 December 2015. The system under the Protocol 
provides a means for an eligible WTO member to import a patented pharmaceutical product, which 
cannot be produced locally, from a generic prod ucer in another WTO Member (the Exporting 
Member).  
Hong Kong, China (HKC), as a WTO Member, notified  the WTO of its acceptance of the Protocol on 
27 November 2007. In this connection, the Hong Kong Patents Ordinance, which provided for a 
compulsory licensing framework in line with Article 31 of the TRIPS Agreement, was amended by 
the Patents (Amendment) Ordinance 2007 on 22 February 2008 to allow the flexibility as provided by the temporary waiver and the Protocol. 
Under the Patents Ordinance as amended, HKC, as an Exporting Member, can make use of the 
system under the Protocol to export generic versions of patented pharmaceutical products if 
another WTO Member has indicated that it intends to avail itself of the Protocol to source a certain pharmaceutical product. The Director of Health of HKC is empowered to issue such export 
compulsory licences in circumstances prescribed  in the Ordinance which fully comply with the 
conditions set out in the waiver and in the Prot ocol. This includes, for example, the requirement 
that the grant of an export compulsory licence  should be subject to payment of adequate 
remuneration to the patent proprietor. 
6. In accordance with Chapter 3, page 35, paragraph 3.27; footnote 13; page 121, Chart A3. 1 
"Excise duties, 2010-2013." Excise duties are levied on  liquor, but liquor with an alcoholic strength 
of not more than 30% by volume is exempted. 
Hong Kong, China is known to produce wine with imported raw materials. 
Considering the limits of alcohol content for wines, could Hong Kong, China let us know how the 
excise duties exemption for liquor with less than 30% of alcohol content comes to terms with the 
non-discrimination principles (National Treatment), when liquors in general, regardless of its kind, 
can be considered as competitive or replaceable amongst each other?  WT/TPR/M/306/Add.1 
 
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  Answer 
To support the further development of the wine and related business in Hong Kong, China, with 
effect from February 2008, we have exempted the duties on wine, beer and all other alcoholic beverages with an alcoholic strength not more  than 30%. Having considered, amongst others, 
consumer preferences and the product's properties an d nature, we do not consider that liquor with 
an alcoholic strength of not more than 30% by volume (e.g. table wine) and that with alcoholic strength above 30% (e.g. spirits) are like products. 
 
In view of the above and given the fact that imported liquors and those produced locally are 
treated equally, we consider that the duty exemption is consistent with the national treatment principle.  
 
7. Regarding Section 3.2.8, Sanitary and Phytosanitary Provisions, para. 3.53. Modification of the Regulations about pesticides and residues in food, 1 August 2014. 3.59. The regulations about 
pesticides and residues in food came into force in August 2014. The regulations include a list of 
limits of residues of certain pesticides in specific food products, mainly on the basis of international standards recommended by the Codex Alimenta rius Commission, and supplemented by the 
standards of major food exporting economies to HKC. Import and sale of food containing pesticide 
residues whose limits are not specified in the Regulation is permitted only if consumption of such food is not dangerous or prejudicial to health, as  confirmed by risk assessment carried out by the 
Centre for Food Safety under the FEHD.  
 
More details are requested about the modification of the regulations applied to the list mentioned 
above.  
 
Answer 
The Pesticide Residues in Food Regulation (Cap . 132CM) (The Regulation) entered into force on 
1 August 2014. The Regulation aims to achieve the following objectives: 
(a) better protect public health; (b) facilitate effective regulation of pesticide residues in food; and (c) promote harmonisation between local and international standards 
 
The Regulation specifies in Schedule 1 a list of 360 pesticides and 7 083 maximum residue limits (MRLs) and extraneous maximum residue limits (EMR Ls) for certain pesticide-food pairs, i.e. the 
maximum concentration of specified pesticide residues permitted in specific food commodities. 
 The formulation of the list of MRLs/EMRLs is  based primarily on the available standards 
recommended by Codex, supplemented by standards of the Mainland and other major food 
exporting countries to Hong Kong, China (HKC) (inc luding the United States and Thailand), while 
taking into account comments received during public consultation. These standards have been scrutinised by conducting risk assessment to ensu re that the proposed standards are adequate to 
protect public health in HKC, taking into account the heavy reliance of HKC on imported food. Such 
an approach will strike a balance between protecting public health and maintaining a stable supply of food in HKC.  
 
8. It is requested to explain the procedure established by Hong Kong to import new products of agricultural and/or livestock origin, and the estimated time to carry out a risk analysis for those 
requirements.   
 Answer 
Currently, certain high-risk or perishable import ed food items (milk, milk beverages, frozen 
confections, game, meat, and poultry) are governed by subsidiary legislation of the Public Health 
and Municipal Services Ordinance (Cap. 132). The import procedures are as follows:  
(A) Import of frozen confections 
 The Frozen Confections Regulation (Cap. 132AC) requ ires, inter alia, any frozen confection to be 
imported into Hong Kong, China (HKC) from a source of manufacture that has been approved by 
the Director of Food and Environmental Hygiene. When a food importer applies for approval, the 
following information is required:  WT/TPR/M/306/Add.1 
 
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  (a) the full name and address of the frozen confection processing plant;  
(b) the law of the country of origin governing the production of frozen confections;  
(c) empty containers or wrappers of the frozen confection with labels; (d) information on the heat treatment method of the frozen confection and facilities, including 
 production equipment and water supply, in the processing plant; 
(e) a certificate from an appropriate authority in the country of origin for the purpose of: 
 certifying the effectiveness and efficiency of  the heat treatment method in sterilizing the 
frozen confection and that the products have  been handled, processed and packed under 
hygienic conditions; 
 showing the chemical and bacteriological quality of the products; and  
(f) details of ingredients, including colouring matters, stabilizers and sweeting agents, etc., and 
 their amount in the frozen confection.  
 When the above information is accepted by th e Food and Environmental Hygiene Department 
(FEHD), an approval will be granted to the importer. 
 (B) Import of milk and milk beverages 
 
The Milk Regulation (Cap. 132AQ) requires, inter alia, any milk or milk beverage to be imported into HKC from a source of manufacture that ha s been approved by the Director of Food and 
Environmental Hygiene. When a food importer ap plies for approval, the following information is 
required: 
 (a) the full name and address of the milk or milk beverage processing plant; 
(b) the law of the country of origin governing the production of milk or milk beverages;  
(c) empty containers of the milk or milk beverage with labels; (d) information on the heat treatment method of the milk or milk beverage and facilities, 
 including production equipment and water supply, in the processing plant;  
(e) a certificate from an appropriate authority in the country of origin for the purpose of: 
-  certifying the effectiveness and efficiency of the heat treatment method in pasteurising 
 or sterilizing the milk or milk beverage and that the products have been handled, 
 processed and packed under hygienic conditions; 
-  showing the chemical and bacteriological quality of the products; and  
(f) a statement from the manufacturer confirming  the approximate shelf-life of the products.  
 
When the above information is accepted by FEHD, an approval will be granted to the importer.  
(C) Import of game, meat and poultry 
 Regulation 4(1)(a) of the Imported Game, Meat and Poultry Regulations requires meat or poultry to be imported with an official certificate is sued by a competent authority recognized by the 
Director of Food and Environmental Hygiene. If an importer wishes to import meat or poultry from 
a country where the authority responsible for issuing official certificates is yet to be recognized as a competent authority, he should ask the relevant authority or government to apply to FEHD in 
writing and provide the following information related to its country: 
 (a) the animal disease situation; 
(b) the legislation governing hygienic standards of meat or poultry; 
(c) the location of processing plants and facilities for handling, processing, production, storage  and transport of meat or poultry; (d) details of inspection of meat or poultry in the ante and post-mortem process and 
 qualifications of officers responsible for the inspection process; 
(e) a sample of the official veteri nary and health certificate; and 
(f) the official name of the authority responsibl e for issuing veterinary and health certificates. 
 
Upon satisfactory assessment based on the above information, DFEH will recognize the competent 
authority of the exporting countries as the authority responsible for issuing official certificates. 
Importers could then apply to FEHD for the import  of game, meat and poultry from the exporting 
countries, which is to be accompanied by an official certificate issued by the competent authority.   WT/TPR/M/306/Add.1 
 
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  9. Page 31. Chapter 3. Trade policies and practices for measure. 3.1. Overall; in paragraph 3.1, it 
is mentioned that "during the examination period, Hong Kong, China, applied several measures to 
facilitate trade and strengthen its function as a regional transit centre, among which, the official 
adaptation of an authorized economic operators program, and an international trade facilitation 
plan."  
 Regarding this subject, we would appreciate it if you could provide us with a detailed description of 
all the applied measures, and the way the economic operators program works. 
 Answer 
AEO Programme 
Hong Kong, China formally launched the Hong Kong AEO Programme in April 2012. Participation is free, open and voluntary. Any local companies engaging in business principally related to the international supply chain are welcome to apply. Accredited companies will be granted an AEO 
certificate with a validity of three years.  
 The Hong Kong AEO Programme has two tiers. Local companies that meet the pre-determined 
security criteria (a) to (j) will be accredited as Ti er 1 AEOs. For Tier 2 AEOs, they have to meet all 
the pre-determined security criteria: (a) customs compliance; (b) maintenance of commercial records; 
(c) financial soundness; 
(d) premises security; (e) personnel security; 
(f) cargo security; 
(g) conveyance security; (h) business partner security; 
(i) security education and training; 
(j) information exchange, access and confidentiality; (k) crisis management and incident recovery; and (l) measurement, analysis and improvement. 
 
Intermodal Transhipment Facilitation Scheme (ITFS) 
In general, air-land or sea-land intermodal transhippment cargoes may be subject to Customs 
inspections at both entry and exit control points. Under ITFS, a GPS-monitored truck conveying 
the transhipment cargoes from entry to exit control point will be affixed with an electronic lock to ensure that the cargoes on board will not be te mpered with during the delivery. After import 
Customs clearance and upon leaving the point of en try, the cargoes on the conveying truck will be 
sealed by electronic lock with Radio Frequency Id entification (RFID) reader. C&ED officers will then 
keep the movement of truck and the status of el ectronic lock under surveillance throughout the 
whole journey via an internet-based real-time monitoring platform. At the point of exit, the 
cargoes will be unsealed by RFID reader during the export Customs clearance. With the greatly 
enhanced security and visibility of the transhipment  process, the likelihood of repeated inspections 
on the same shipment at entry and exit points is much reduced. 
 
10. Page 33, Chapter 3, Trade Policies and Practices for Measure, 3.2. Measures that affect imports directly; 3.2.1. Customs procedures and requirements; paragraph 3.18; it is stated that "On 
1 August 2012, HKC halved the customs declaration fees for imports and exports."  
 It would be appreciated if the type of existing duties at that time could be specified, as well as the way they were applied and the merchandise covered. 
 
Answer 
Any person who imports or exports any article is required to lodge an import or export declaration 
and pay a declaration charges. The following sets out the declaration charge rates (in Hong Kong 
dollars) with effect from 1 August 2012: WT/TPR/M/306/Add.1 
 
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  Import 
Non-food items: $0.2 in respect of the first $ 46,000 of the value of the goods, and $0.125 in 
respect of each additional $1,000 or part thereof (rounded up to the nearest 10 cents). 
Food Items: $0.2 per declaration irrespective of the goods value. 
Export 
$0.2 in respect of the first $46,000 of the value of the goods, and $0.125 in respect of each 
additional $1,000 or part thereof (rounded up to the nearest 10 cents). 
 
11. Page 45, Chapter 3, Trade Policies and Practices for Measure. 3.2. Measures that affect imports directly; 3.3.3 Prohibitions, restrictions and export licenses; paragraph 3.81; it is explained that Hong Kong, China is implementing a Textiles Control System for imports and exports in this 
paragraph. This is applied to "sensitive and non-sensitive" markets.  
 Regarding this subject, in particular, it would be useful to know in detail how the mechanism works 
with import and export licensing for origins or destinations with sensitive markets, the parameters 
in order to qualify for a "sensitive" - "non-sensitive" market, and the progress in the legislative amendment for removing the measures, as reported in the Secretariat Report.  
 
There is a need to deepen the analysis of the po ints made, given that the shared experience of 
these results could contribute to a better underst anding of trade policy and the economy of Hong 
Kong China, which will provide important inputs for the strengthening of bilateral relations in the 
field of foreign trade. 
 Answer 
Markets or places which are more prone to textiles abuses in terms of origin claims are classified as "sensitive markets". All other markets/countries are classified as "non-sensitive" markets. Textiles imports/exports for sensitive markets must be covered by either consignment-specific 
import/export licences, or textiles notifications by traders registered under the Textiles Trader 
Registration Scheme administered by the Trade and Industry Department.  Following the completion of the legislative amendment process, the licensing and notification 
requirements for all textiles imports and exports will cease from 21 November 2014. WT/TPR/M/306/Add.1 
 
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  THAILAND 
3. TRADE POLICIES AND PRACTICES BY MEASURE 
 Pages 36-37 (paragraphs 3.35-3.36) 
 
Question 1 Please provide the list of goods, with HS Codes,  which are subject to certain radio-communications 
apparatus that have recently been banned? What are the rationales behind the ban of such 
imports? Could HKC provide detail on the law and/or regulations governing this import prohibition?  
 Answer 
During the review period between 2010 and 2013, Personal Handy Phone System (PHS) radiocommunications apparatus operating in the 1895-1906.1 MHz band and radio jammers have been banned from importation unless they are for subsequent re-export. 
 
PHS radiocommunications apparatus operating in the 1895-1906.1 MHz band has been banned from importation with a view to vacating the 1895-1906.1 MHz band for use by other mobile 
radiocommunications services. In fact, the deployment of PHS in Hong Kong, China (HKC) was not 
as successful as anticipated when it was introduced into HKC in 1997, and such products were not available for sale in the local market when the ban was introduced. The relevant law is section 9 of the Telecommunications Ordinance (Cap.106). 
 
Radio jammers have also been banned from importation in order to prevent interference to legitimate radiocommunications services in HKC. The relevant law is the Telecommunications 
(Control of Interference) Regulations (Cap.106B). 
 There are no specific HS Code for PHS radi ocommunications apparatus operating in the 1895-
1906.1 MHz or radio jammer.  
 Page 64 (paragraph 3.165)  
Question 2 
Could HKC elaborate more on its measures, either legislative or administrative, undertaken by the HKC Government to update and enhance its copyri ght regime to strengthen IPRs enforcement in 
the digital environment, particularly on the issues of: 
 1. safe harbor for online service providers; and  2. criminal liability for electronic communications of copyrighted works.  
 
Answer 
To ensure that our copyright law keeps pace wi th technological and overseas developments, the 
Government introduced the Copyright (Amendment ) Bill 2014 (the Bill) into the Legislative Council 
in June 2014. A Bills Committee was formed and the Bill is now under the Committee's scrutiny. 
The key proposals of the Bill include: i. introducing a technology-neutral exclusive ri ght for copyright owners to communicate their 
 works through any mode of electronic transmission;  
ii. introducing corresponding criminal sanctions against unauthorized communication of  copyright works to the public;  
iii. expanding the scope of copyright exception to cover use for the following purposes in 
 appropriate circumstances:  
(a) parody, satire, caricature and pastiche;  (b) commenting on current events;  
(c) quotation;  
(d) temporary reproduction of copyright wo rks by online service providers (OSPs);  
(e) media shifting of sound recordings; and 
(f) giving education instructions;  
iv. establishing a statutory safe harbour for OSPs so that their liabilities for copyright  infringement occurring on their service platforms could be limited under prescribed 
 conditions; and 
v. providing additional factors for the court to consider in assessing damages in civil  cases in which infringement has been established. WT/TPR/M/306/Add.1 
 
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  The proposed safe harbour is to provide incentives for OSPs to cooperate with copyright owners in 
combating online piracy by meeting certain prescribed conditions, including the taking of 
reasonable steps to limit or stop an infringement occurring on their service platforms when being notified. The statutory provisions are underpinned by  a voluntary Code of Practice which sets out 
suggested practical guidelines and procedures for OS Ps to follow when being notified of infringing 
activities on their service platforms. OSPs which co mply with the Code of Practice will be treated as 
having taken reasonable steps to limit or stop the infringement in question and will not be liable 
for any monetary claim for copyright infringement that occurs on the provider's service platform. A 
latest version of the draft Code of Practice can be found at: http://www.cedb.gov.hk/citb/doc/en/Code_of_ Practice_English_2nd_Draft_(final).pdf . 
 
To facilitate copyright owners in exploiting their works in the digital environment and promote the 
development of digital content, we propose to  introduce an exclusive right for owners to 
communicate their copyright works to the public. The scope of this right covers all forms of 
electronic communication of a copyright work to the public, including the broadcasting of the work; 
the inclusion of the work in a cable programme se rvice; and the making available of the work to 
the public (which means making the work available,  by wire or wireless means, in such a way that 
members of the public in Hong Kong or elsewhere may access the work from a place and at a time 
individually chosen by them such as through the Internet).   A corresponding criminal sanction will be introduced against those who make unauthorized 
communication of copyright works to the public (a) for the purpose of or in the course of any trade 
or business which consists of communicating works to the public for profit or reward, or (b) to such an extent as to affect prejudicially the copyright owners. 
 
QUESTIONS REGARDING THE REPORT BY HONG KONG, CHINA  
Page 6 (paragraph 3.6) 
 Question 3 Thailand would like to learn about the privileges/preferences given to HKC by the Mainland and 
how are those privileges/preferences beneficial to HKC's other FTA partners? Could HKC elaborate 
on the key differences between trade and investment regulations in HKC and the Mainland?   
Answer 
The preferences given by the Mainland to HKC und er CEPA cover three main areas, namely, trade 
in goods; trade in services; as well as trade and investment facilitation.  
 
In gist, for trade in goods, all HKC's products can enjoy zero tariff on importation into the Mainland since 1 January 2006 provided that the relevant CE PA origin rules are agreed and met. As for 
trade in services, inclusive of the measures in Supplement X, there are 403 liberalization measures 
under CEPA, enabling HKC service suppliers (HKSS) to have preferential access to the Mainland 
market. Details can be found in our government's website at: http://www.tid.gov.hk/english/cepa/index.html . 
 
CEPA does provide business opportunities to foreign investors. As CEPA does not impose any restriction on the source of investments of serv ice suppliers or manufacturers, foreign investors 
are welcome to leverage on the preferential tr eatment offered by CEPA. For instance, foreign 
service providers can establish their businesses in HKC, or join force with HKC's enterprises so as to be qualified as HKSS and enjoy the CEPA benefits.   
Page 14 (paragraph 4.38) 
 Question 4 
HKC states that "the Government invests heavily in the development of environmental 
infrastructure facilities and the setting up of various funding schemes to encourage adoption of 
clean technologies." Thailand would like to learn about detail of HKC's overall policies to promote 
clean technologies. Please provide such detail. With regard to investment, does the Government of 
HKC allow foreign investors to set up a business in the environmental industries?  WT/TPR/M/306/Add.1 
 
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  Answer 
The HKC Government invests heavily in the development of environmental infrastructure facilities 
and the setting up of various funding schemes to encourage adoption of clean technologies. Examples of environmental infrastructure developed include the EcoPark, the Sludge Treatment 
Facility and the state-of-the-art district cooling system at Kai Tak Development Area. Examples of 
funding schemes include the Environment and Conservation Fund and the Innovation and Technology Fund. Detailed information on key enviro nmental infrastructure projects, as well as the 
various funding schemes available can be found on the Environmental Protection Department 
website at the below link: http://www.epd.gov.hk/e pd/english/top.html  With regards to 
investment, foreign investors are welcome to set up businesses in the environmental industries in 
HKC.  
 
Page 14 (paragraph 4.39)  
Question 5 
As HKC indicates that it has been pursuing policy initiatives to promote business opportunities for environmental friendly products and services and HKC provides examples of some measures. 
Thailand is interested in learning more about such policy initiatives and would appreciate it if HKC 
can provide more details, such as the objective(s), a comprehensive list of measures, and the person(s)/entities required to implement such measure(s).   
Answer 
The HKC Government has been implementing a series of policy measures to create a more 
favourable business environment for sustainable de velopment of the recycling and green industries 
in HKC. Details on the policy measures includin g their objectives and targeted time frame for 
implementation are set out in the Hong Kong Blueprint for Sustainable Use of Resources (2013-2022) published by the Environment Bureau in Ma y 2013. The HKC Government actively leads the 
implementation of these policy measures. The Blueprint is available for download at the following 
link: http://www.enb.gov.hk/en/files/WastePlan-E.pdf . 
 
OTHER QUESTIONS 
 
Question 6 HKC is a regional hub for financial services, telecommunications, maritime transport and air 
transport from many countries. With the current development of the Occupy Central movement 
which likely has a negative impact on trade and investment, Thailand is interested in learning about HKC's measures and/or policies in response to the situation in order to restore foreign 
traders' and investors' confidence? 
 Answer 
The impact of the protests on the operation of HKC's financial industry has so far been limited. 
Except for individual bank branches at the affected areas which have to be closed temporarily, 
thus causing some inconvenience to the general public. HKC's financial system, including the banking system, stock market and foreign exchange market, etc. has been functioning in a normal 
and orderly manner. There is no evidence of abnormal fund outflow.  
 Indeed, the HKC Government, financial regulators and major financial institutions have earlier 
conducted risk assessments and devised contingency measures with regard to the protests, with 
an aim to maintaining the continued operation of, and minimizing the impact on, the core businesses.  
Together with the financial regulators, we will continue to monitor closely the financial system and 
market situation, and take appropriate measures as and when necessary to ensure that important 
financial infrastructure, the monetary system, the settlement system, as well as the securities and 
futures trading markets will continue to function in an orderly manner.  
 As for investment facilitation of foreign investment, InvestHK is the government department 
responsible for helping companies from all over the world to establish a presence or expand their 
business in HKC. We proactively conduct on-going  investment promotion visits and meetings as 
well as promotion events to attract overseas and Mainland companies to HKC.  WT/TPR/M/306/Add.1 
 
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  As yet, InvestHK is not aware of any plans on the part of client companies to withdraw their 
business from HKC nor to postpone their investment plans because of the protests. We will 
continue to promote the fundamental strengths of HKC to overseas and Mainland companies and encourage them to set up or expand their business in here. We will also closely monitor the 
developments and provide our overseas and Mainland clients with any additional investment  
promotion services they may need.   
Question 7 
Among the sectors under professional services, e. g. architectural and engineering services, legal 
services, accountancy services and computer services, are there sectors under which the Government of HKC allows foreign professionals to work in HKC? Please provide brief detail on the 
conditions in order to work under those sectors in HKC?  
 Answer 
HKC government administers an open immigration regime for non-local professionals, who may enter HKC for employment through the General Employment Policy (GEP) or the Admission Scheme for Mainland Talents and Professionals (ASMTP). Both schemes have no quota and are 
non-sector specific. 
 Overseas, Taiwan and Macao professionals may apply under the GEP to take up employment in HKC, while Mainland professionals may apply under the ASMTP. Applicants under both schemes 
must meet the following criteria: 
i. having a good education background, norma lly a first degree in the relevant field; 
ii. having a confirmed offer of employment and are employed in a job relevant to their 
 academic qualifications or work experience that cannot be readily taken up by the local 
 workforce; and  iii. the remuneration package is broadly commensurate with the local prevailing market level. 
 Apart from these two schemes, non-local talents may apply under the Quality Migrant 
 Admission Scheme to come to HKC for reside nce without first securing an offer of local 
 employment. Applicants who meet the prerequisites may choose to be assessed under the  General Points Test (for highly skilled or tale nted persons) or the Achievement-based Points 
 Test (for individuals with exceptional skills or talents and outstanding achievements). There 
 is an annual quota of 1,000 but no sector restriction.  
Question 8 
Thailand is interested in details of the principles and methods used in HKC's policy formulation with regard to the e-learning programs for education in HRC. In this light, does HKC's educational 
system, including e-learning programmes, permit foreign investors to invest in this services 
sector? If so, please provide information on the law and/or regulations governing the operation of foreign investment in education.  
Answer 
Organizations, including non-local organizations, providing educational courses in HKC are 
regulated by the Education Ordinance (Cha pter 279, the Laws of Hong Kong at: 
http://www.legislation.gov.hk/blis_pdf.nsf /6799165D2FEE3FA948257 55E0033E532/8338564FED4
5F302482575EE0055FBF6/$FILE/CAP_279_e_b5.pdf ). The Ordinance stipulates that an institution, 
organization or establishment which provides for 20 or more persons during any one day or 8 or 
more persons at any one time, any nursery, kind ergarten, primary, secondary or post-secondary 
education or any other educational course by an y means, including correspondence delivered by 
hand or through the postal services, shall be registered or provisionally registered as a school with the Education Bureau. Schools must comply with the relevant provisions of the Education 
Ordinance including its subsidiary legislation relating to areas such as registration of schools, 
teachers and managers, health and safety re quirements, fees and charges, and teacher 
qualifications. With respect to the provision of e-learning programme in HKC, registration as a 
school under this Ordinance is required if the co nditions specified above are met. There is no 
provision in this Ordinance prohibiting foreign op erators/institutions to register a school in HKC 
subject to their compliance with the applicable legal requirements. 
 WT/TPR/M/306/Add.1 
 
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  Overseas institutions may provide higher education in HKC by offering non-local courses. They can 
operate these courses directly by themselves or with a local partner. The Non-local Higher and 
Professional Education (Regulation) Ordinance (Chapter 493, the Laws of Hong Kong at: http://www.legislation.gov.hk/blis_pdf.nsf /6799165D2FEE3FA94825755E 0033E532/E8739504D97
F5109482575EF000F3B77/$FILE/CAP_493_e_b5.pdf ) is the regulatory regime for non-local 
courses.  
 
Under the Non-local Higher and Professional Education (Regulation) Ordinance, all courses 
conducted in HKC which lead to the award of non-local higher academic qualification or professional qualification are subject to regulation  through a system of registration. A course is 
regarded as being conducted in HKC if any of the following activities is undertaken: 
- holding of lectures, tutorials, seminars or group discussion sessions or dissemination of 
 information or materials; - conducting examinations, tests or other assessments. 
 
For non-local courses which are conducted in HKC in collaboration with any one of the 11 "local institutions of higher education" specified in th e Ordinance, registration is not required but the 
course need to secure an exemption status by furn ishing to us a statement issued by the head of 
the "local institution of higher education" concerned which certifies that the course fulfills the same criteria applicable to registration. Details about regulation and registration of non-local courses in HKC are available from the website: http://www.edb.gov.hk/ . 
 
As regards the setting up and operation of post-s econdary programmes in HKC, it is governed by 
the Post-secondary Colleges Ordinance (Chapter 320, the Laws of Hong Kong at: 
http://www.legislation.gov.hk/blis_pdf.nsf /6799165D2FEE3FA94825755E 0033E532/67DEABE9E9A
7D68C482575EE006038C7/$FILE/CAP_320_e_b5.pdf ). There is no provision in this Ordinance 
prohibiting foreign operators/institutions to operate such programmes subject to their compliance 
with the applicable legal requirements. 
 WT/TPR/M/306/Add.1 
 
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  MALAYSIA 
3.2.3 Tariffs 
 Paragraph 3.25 of the report indicates "HKC is not a contracting party to the International 
Convention on the Harmonized Commodity Descrip tion and Coding System (HS Convention), but 
indicates that it applies the Harmonized System." Malaysia would like to learn the rationale of not becoming a contracting party to the HS Convention given that tariff liberalization under the WTO is 
conducted using the HS system.  
 Answer 
In practice, HKC has been applying HS since 1992 to meet the global standard on commodity 
classification, and facilitate the collection, compar ison and analysis of trade statistics. We are 
actively considering the case for formal application of the Convention to HKC.   WT/TPR/M/306/Add.1 
 
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  KOREA, REP. OF 
PART I: Questions Regarding the Secretariat Report 
 
Page 29 (Para 2.43) 
 With the aim of modernizing company law and further enhancing the role of HKC as a major international business and financial center, the Companies Ordinance was re-written and approved 
by the legislature in July 2012; the legislation (Chapter 622) entered into force in March 2014. The 
new Companies Ordinance provides a number of measures for facilitating business operations, including streamlined procedures and the simplification of companies; reporting obligations, in particular for SMEs. The Ordinance also has provisions to enhance corporate governance to ensure 
better regulation, such as provisions for improving company information disclosure and 
shareholder protection.  
Question 1 
After the launch of the initial exercise to re-write the Companies Ordinance in 2006, as indicated on the official website given in note 43 of page 29, nearly one decade was required to finalize the 
work. Could HKC please provide the main concerns raised over the development of the law, 
especially those posed by foreign investors, and how these concerns were addressed within the law?   
Answer 
Overview of the Rewrite Exercise 
In mid-2006, HKC embarked on an extensive exercise to comprehensively rewrite our company law with a view to enhancing HKC's competitiveness as a major international business and 
financial centre. Following extensive public co nsultation, the Companies Bill was subsequently 
introduced in January 2011 and passed by the Legislative Council ("LegCo") in July 2012 to 
become the new Companies Ordinance. The legislative process for 12 pieces of subsidiary 
legislation made under the new Companies Ordina nce was subsequently completed in June 2013 
and the new Companies Ordinance has commenced operation in March 2014.  
Main Topics Covered in the Rewrite 
In the course of preparing the Companies Bill, HK C conducted three topical public consultations on 
the following major issues: 
 
  accounting and auditing provisions; 
  company names, directors' duties, corporate directorship and registration of charges; and 
  share capital, the capital maintenance regime and statutory amalgamation procedure. 
 Comments were received from diffe rent stakeholders including the relevant professional sectors, 
academics, the business community (including foreign chambers of commerce) and members of 
the public. We have taken them into account in the preparation of the Companies Bill as 
appropriate. The relevant consultation papers and the consultation conclusions are available on the 
website of the Companies Registry ( http://www.cr.gov.hk/en/publications/consultation.htm ). 
 
Initiatives relating to shareholder protection 
To foster shareholder protection, the new Comp anies Ordinance has introduced a number of new 
measures including: 
 
  more effective rules to deal with directors' conflicts of interests; 
  expanding the requirement for seeking shareholders' approval for transactions to cover 
directors' employment contracts which exceed three years; 
  extending the scope of the unfair prejudice re medy to cover "proposed acts and omission, 
so that a shareholder may bring an action for unfair prejudice even if the act or omission 
that would be prejudicial to the interests of shareholders is not yet effected; 
  improving the disclosure of company informatio n by requiring public companies and larger 
private companies and guarantee companies to  prepare a more comprehensive directors' 
report which includes an analytical and forw ard-looking business review and widening the 
ambit of disclosure of material interests of di rectors in contracts of significance with the 
company. WT/TPR/M/306/Add.1 
 
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  Page 34 (Para 3.24 & 3.25) 
 
All applied MFN tariffs are at zero. HKC does not operate tariff-rate quotas. HKC is not a contracting party to the International Convention on the Harmonized Commodity Description and 
Coding System (HS Convention), but indicates th at it applies the Harmonized System. In 2014, 
45.6% of HKC's tariff lines (HS 2012 nomenclature) were bound; all at a zero rate (Table 3.2). The slight increase in the percentage of bound lines (from 44.8% in 2010) merely reflects the change 
of nomenclature. HKC did not change its bound  rate coverage during the review period. 
 Question 2 It is our understanding that the average tariff binding coverage of developed countries amounts to 
99%, and that of developing countries 73%, while in HKC's case only 45.6% of tariff lines are 
bound. Korea would like to know if HKC has plans to expand the binding coverage in the future.  
Answer 
We should look at the scope of our tariff bindings in context. As tariff concessions are exchanged 
predominantly on the basis of reciprocity, Hong Kong, China being one of the freest economies in 
the world is left with no other concession for exch ange than scope of binding. This is acknowledged 
by Members as our present scope of binding is  the outcome of previous negotiations plus 
additional autonomous binding we made since the conclusion of the Uruguay Round.  
While 45.6% of tariff lines are bound at zero, they have already covered 57.6% of our imports in 
terms of 2013 value. In our view, this figure breathes great commercial meaning into our commitment and provides much better reference value for tariff negotiations. 
 
We look forward to substantial reduction and elimination of tariffs by WTO Members under the Doha Development Agenda negotiations. We will review our tariff regime in the light of the 
negotiation results and consider binding additional tariff lines and the timing for doing so as 
appropriate. We hope that tariff reductions and eliminations will be implemented as soon as possible following the conclusion of the negotiations.   
Page 50 (Para 3.105) 
 
The objective of the Ordinance is to curb possible anti-competitive conduct so as to maintain fair 
and sustainable competition in the market. It applies to "undertakings", defined as entities 
engaged in economic activity, regardless of their legal status or the way in which they are financed. However, the Ordinance exempts all statutory bodies (i.e. bodies established by law) 
from the application of its substantive provisions. In addition, undertakings with turnover below 
specified thresholds are excluded from the applicat ion of certain provisions of the Ordinance. The 
latter exclusion was meant to address the concerns expressed by SMEs during the legislative process as well as the general public aspiration for an effective cross-sector competition law.  
 
Question 3 The report states in paragraph 3.116 on page 53 that anti-competitive complaints were made 
against the practices of certain statutory bodies under the current regulation system. However, 
according to the above paragraph, it appears that all statutory bodies are exempted from the newly established Competition Ordinance. In this  regard, Korea would like to know how HKC will 
regulate anticompetitive practices of statutory bodies in the future.  
 Answer 
Most of the statutory bodies do not engage in economic activities which affect competition. This 
being said, the Competition Policy Advisory Group, a body established in the Hong Kong, China 
(HKC) Government, will look into complaints against these bodies. If a statutory body is found to have breached competition principles without justifiable causes, the HKC Government would 
request the body concerned to rectify its anti-competitive behavior.  
 Page 106 (Para 4.76) 
 Distribution is a major and vibrant sector in the economy of Hong Kong, China representing approximately 10% of total employment and nearly 5% of GDP in 2012. Numerous foreign distributors are present but the supermarket segm ent is largely dominated by local interests. WT/TPR/M/306/Add.1 
 
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  Traditional open-air fresh food markets ("wet markets") remain an important component of Hong 
Kong, China distribution system. 
 Question 4 
Could HKC please further explain why the supermarket segment is largely dominated by local 
interests and whether there are any licensing requirements or entry barriers for foreign distributors seeking to open retail stores in HKC? 
 
Answer 
Hong Kong, China (HKC) is committed to creating  a business-friendly environment conducive to 
overseas investments in a free and open market with emphasis on providing a level-playing field 
for all companies. There is no legislation prohibit ing the establishment of foreign distributors in 
HKC. The current regulatory environment benefits numerous retailers in fashion, homeware and accessories as well as supermarkets in setting up their operations here. A number of foreign 
hypermarket chains are operating sourcing office s (such as Meijer), and many global retailers 
(such as Ikea, Marks and Spencer, H&M, Inditex, AEON Stores, Uniqlo and Muji) are present in the city, either as wholly-owned subsidiaries or on a franchise basis. WT/TPR/M/306/Add.1 
 
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  BRAZIL 
According to the Secretariat Report (WT/TPR/S/306, page 40 paras. 3.54 and 3.55), it is 
mentioned that, under the new Food Safety Ordinance, in force since 1 February 2012, importers of certain high-risk food items must not only be registered to the Food and Environmental Hygiene 
Department (FEHD), but also "obtain an import licence and/or written permission from the FEHD 
prior to importation".   
Questions 
Is the licence automatic? If not, what are the grounds on which these licences and permissions are 
conceded? Moreover, how this process relate to the Food Safety Orders, a mechanism by which 
the Director of Food and Environmental Hygiene may "prohibit imports/supply of any food [...] on 
the grounds of public health"?  
 Answer 
Currently, certain high-risk or perishable import ed food items (milk, milk beverages, frozen 
confections, game, meat, and poultry) mentioned in paragraph 3.55 of the report are governed by subsidiary legislation of the Public Health and Municipal Services Ordinance (Cap. 132), rather than 
by the Food Safety Ordinance (Cap. 612) mentioned in paragraph 3.54 of the report.  
 The grounds for issuing the licences for importing / written permissions to import such high-risk or perishable food items are as follows: 
 
(A) Import of frozen confections  
The Frozen Confections Regulation (Cap. 132AC) requ ires, inter alia, any frozen confection to be 
imported into Hong Kong, China (HKC) from a source of manufacture that has been approved by the Director of Food and Environmental Hygiene. When a food importer applies for approval, the 
following information is required: 
 
(a) the full name and address of the frozen confection processing plant;  (b) the law of the country of origin governing the production of frozen confections;  
(c) empty containers or wrappers of the frozen confection with labels; 
(d) information on the heat treatment method of the frozen confection and facilities, including 
production equipment and water supply, in the processing plant; 
(e) a certificate from an appropriate authority in the country of origin for the purpose of: 
-  certifying the effectiveness and efficiency of the heat treatment method in sterilizing the 
frozen confection and that the products have been handled, processed and packed 
under hygienic conditions 
-  showing the chemical and bacteriological quality of the products; and  
(f) details of ingredients, including colouring matters, stabilisers and sweeting agents, etc., and 
their amount in the frozen confection.  
 
When the above information is accepted by the Food and Environmental Hygiene Department (FEHD), an approval will be granted to the importer. 
 
(B) Import of milk and milk beverages  
The Milk Regulation (Cap. 132AQ) requires, inter a lia, any milk or milk beverage to be imported 
into HKC from a source of manufacture that ha s been approved by the Director of Food and 
Environmental Hygiene. When a food importer ap plies for approval, the following information is 
required: 
 
(a) the full name and address of the milk or milk beverage processing plant; (b) the law of the country of origin governing the production of milk or milk beverages;  
(c) empty containers of the milk or milk beverage with labels; 
(d) information on the heat treatment method of the milk or milk beverage and facilities, 
including production equipment and water supply, in the processing plant;  WT/TPR/M/306/Add.1 
 
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  (e) a certificate from an appropriate authority in the country of origin for the purpose of: 
-  certifying the effectiveness and efficiency of the heat treatment method in pasteurising 
or sterilizing the milk or milk beverage an d that the products have been handled, 
processed and packed under hygienic conditions; 
-  showing the chemical and bacteriological quality of the products; and  
(f) a statement from the manufacturer confirming  the approximate shelf-life of the products.  
 
When the above information is accepted by FEHD, an approval will be granted to the importer. 
 (C) Import of game, meat and poultry  
Regulation 4(1)(a) of the Imported Game, Meat and Poultry Regulations requires meat or poultry 
to be imported with an official certificate is sued by a competent authority recognised by the 
Director of Food and Environmental Hygiene. If an importer wishes to import meat or poultry from 
a country where the authority responsible for issuing official certificates is yet to be recognised as 
a competent authority, he should ask the relevant authority or government to apply to FEHD in writing and provide the following information related to its country: 
 
(g) the animal disease situation; 
(h) the legislation governing hygienic standards of meat or poultry; 
(i) the location of processing plants and facilities for handling, processing, production, storage 
and transport of meat or poultry; 
(j) details of inspection of meat or poultry in the ante and post-mortem process and 
qualifications of officers responsible for the inspection process; 
(k) a sample of the official veterinary and health certificate; and 
(l) the official name of the authority responsible for issuing veterinary and health certificates. 
 
Upon satisfactory assessment based on the above information, DFEH will recognise the competent 
authority of the exporting countries as the authority responsible for issuing official certificates. Importers could then apply to FEHD for the import  of game, meat and poultry from the exporting 
countries, which is to be accompanied by an official certificate issued by the competent authority. 
 
The issue of import licences and import permission is not related to the making of Food Safety Orders. Section 30(1) of the Food Safety Ordinanc e (Cap. 612) provides that the Director of Food 
and Environmental Hygiene (DFEH) may make a Food  Safety Order to, among others, prohibit the 
import and the supply of any food for the period spec ified in the order, as well as to direct that any 
food supplied be recalled and specify the manner in which, and the period within which, the recall 
is to be conducted. Section 30(2) stipulates that DFEH may only make a food safety order under 
section 30(1) if DFEH has reasonable grounds at th e time of making the order to believe that the 
making of the order is necessary to prevent or reduce a possibility of danger to public health or to mitigate any adverse consequence of a danger to  public health. WT/TPR/M/306/Add.1 
 
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  FOLLOW UP QUESTIONS BY AUSTRALIA 
4.2 Trade Facilitation  
Page 15, Paragraph 4.44 
 
1. Does the entire supply chain need to be secure to receive the benefits or will the benefits 
be achieved if only one operator, e.g. exporter but not customs broker or transport company, is 
granted AEO status?  
 Answer  
The Hong Kong AEO Programme is open to all stakeholders, such as manufacturers, importers, 
exporters, freight forwarders, warehouse operators, carriers, etc., engaging in business principally related to the international supply chain. Local co mpanies that meet the pre-determined criteria 
may be accredited as AEOs and enjoy relevant trade facilitation. 
 Follow up question  
Australia seeks clarification around the offering of benefits. Does the entire supply chain need to 
be accredited for any one stakeholder in the supply chain to receive the benefit e.g. where a 
transaction is undertaken and everyone involved in the supply chain except the freight forwarder is accredited will the benefit still be offered to the importer? 
 
Answer  
Under the Hong Kong AEO Programme, stakeholders of the international supply chain that meet 
the pre-determined criteria may be accredited as AEOs. The accredited companies may enjoy 
clearance facilitation even if their business partners are not accredited. Nevertheless, the Hong Kong AEOs are required to fulfil the following criteria for Business Partner Security:   
  To have procedures in place for screening and selecting their business partners before 
entering into contractual relations; 
  To have security requirement incorporated into the written contracts with their business 
partners, and/or request their business partners to provide security declarations to 
ascertain their level of security compliance; and 
  To regularly review their business partners' practices to ensure their compliance with the 
security requirements stated in the contracts or security declarations. WT/TPR/M/306/Add.1 
 
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  FOLLOW UP QUESTIONS BY SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, 
KINMEN AND MATSU (CHINESE TAIPEI) 
Regarding the Secretariat Report (WT/TPR/S/306) 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.4 MEASURES AFFECTING PRODUCTION AND TRADE 
3.4.5 Intellectual property rights 
3.4.5.1 Legislation 
3.4.5.1.2 Patent Law Page 60 (Para 3.147) 
 
Follow-up Question Will the court of law make substantive judgments by applying HK patent regulations in the event 
that an applicant files a request with the Court of First Instance for the revocation or amendment 
of an HKC standard patent rather than with the th ree designated patent offices for the invalidation 
or correction of the same patent?  
Answer 
Under the Hong Kong Patents Ordinance, Cap 514, any person may apply to the Court of First 
Instance for an order to revoke a HKC standard patent based on any of the grounds prescribed 
under the Ordinance.9 If the Court is satisfied that the ground(s) of revocation has/have been 
established, it will make an order for the unconditional revocation of the patent. Where the Court finds that the ground(s) of revocation has/have only  established in relation to a limited extent of 
the patent, it will make an order that the patent be revoked unless the specification of the patent 
is amended to the satisfaction of the Court within a specified time.  Similarly, applications for amendments to the specification of a HKC standard patent may be made 
to the Court of First Instance by the proprietor of the patent.
10 The Court will determine whether 
or not the proposed amendments should be allowe d in accordance with the provisions under the 
Patents Ordinance, in particular, whether the pr oposed amendment will expand the scope of the 
patent in question.11 The Court would however not allow any amendment where there are pending 
court proceedings in which the validity of the patent may be put in issue.12 
 
__________  
                                               
9 Section 91(1) of the Patents Ordinance provides for an exhaustive list of the prescribed grounds of 
revocation. 
10 Section 46(1) of the Patents Ordinance 
11 Section 103(3) of the Patents Ordinance 
12 Section 46(2) of the Patents Ordinance