24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref : FRCP 1000/20/7

8 December 2009

Dear Sirs,

Certificate of Origin Circular No. 13/2009

Commercial Information Circular No. 609/2009

Certificate of Preference Circular No. 3/2009

Notice to Exporters :

Series 1 (USA) No. 7/2009

Series 2 (EU) No. 8/2009

Series 3 (Countries other than USA & EU) No. 5/2009

Textiles Trader Registration Circular No. 5/2009

Mainland and Hong Kong
Closer Economic Partnership Arrangement (CEPA)

Request for Developing the CEPA Rules of Origin (ROOs)
for Goods that Have No CEPA ROOs 
(Arrangements for Making Requests in 2010)

Introduction

Since the Mainland and Hong Kong signed CEPA in June 2003, the Mainland has agreed to apply zero import tariff for Hong Kong origin products covered in 1,573 Mainland 2009 tariff codes and meeting CEPA rules of origin (ROOs). According to the Supplement II to CEPA signed by both sides on 18 October 2005, the Mainland agrees to fully implement zero tariff on imported goods of Hong Kong origin ^{Note 1} starting from 1 January 2006, upon applications by local manufacturers and upon the CEPA ROOs being agreed and met. Goods exported from Hong Kong to the Mainland must fulfil the CEPA ROOs to enjoy tariff preference. The tariff preference does not include customs duties other than tariff, such as value-added tax and consumption tax. Details of the 1,573 tariff codes with CEPA ROOs agreed and the corresponding origin criteria are set out in the table "CEPA Tariff Preference - Mainland 2009 Tariff Codes, Product Description and Origin Criteria" which can be downloaded from the Trade and Industry Department's webpage <
http://www.tid.gov.hk/english/cepa/tradegoods/files/mainland_2009.pdf>. Hard copies of the table are also available at the Trade and Industry Department Tower, 3/F, Factory Registration and Origin Certification Branch.

Arrangements for Conducting ROO Consultations with the Mainland

2. For goods that have no CEPA ROOs for the time being, both sides have agreed that Hong Kong manufacturers may apply and request to include the goods concerned in subsequent phases of ROO consultations which have been held twice a year since 2006. The detailed implementation procedures (in accordance with the Supplement II to CEPA) are as follows: 

         (1) Submission

Hong Kong manufacturers may submit the list of goods requesting for developing CEPA ROOs to the Trade and Industry Department ("TID"). TID should, prior to 1 March and 1 September each year respectively, submit the verified and certified list of goods to the Mainland Ministry of Commerce.

       (2) Consultation and Promulgation

The Mainland General Administration of Customs and TID shall complete the consultations on the ROOs before 1 June and 1 December each year respectively, add the ROOs of the relevant goods to Table 1 of Annex 2 of CEPA "Schedule on Rules of Origin of Hong Kong Goods Subject to Tariff Preference for Trade in Goods", and promulgate them.

       (3) Implementation

The Mainland shall, no later than 1 July of the same year and 1 January of the following year respectively, grant zero tariff treatment to the relevant goods upon presentation of the Certificates of Hong Kong Origin - CEPA issued by the Hong Kong issuing authorities.

Submission of Applications by Hong Kong Manufacturers for Developing the CEPA ROOs

3. Hong Kong manufacturers may wish to request for developing the CEPA ROOs for specific goods of Hong Kong origin pursuant to the procedures stated in paragraph 2 above. They are invited to provide information of the relevant goods and production details to TID by completing the application form attached to Annex 1 (pdf format) of this circular. If manufacturers are not familiar or not sure about the Hong Kong Harmonized System (HKHS) codes for the goods covered by the applications, they are encouraged to fill in the enquiry form at Annex 2 (pdf format) of the circular and forward it to the Census and Statistics Department. In such cases, manufacturers should submit the application forms together with the completed enquiry forms returned by the Census and Statistics Department to TID. Manufacturers can send in their forms by fax or by email to the Certificate of Origin - CEPA Section ( fax number : 2787 6048 / e-mail address : cepaco@tid.gov.hk ), or return the forms in person or by post to the CO(CEPA) Customer Service Officer, Room 322, 3/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon.
   
   

4. As the CEPA ROO consultations will be held twice a year, TID will conduct ROO consultations with the Mainland in respect of the goods requested by Hong Kong manufacturers twice a year according to the date of receipt of the applications concerned. Applications received on or before 31 January 2010 will be included in the first round of consultations in 2010, while applications received from 1 February 2010 to 31 July 2010 will be included in the second round of consultations in 2010. Applications received after 31 July 2010 will be included in the next phase of consultations (in 2011).
   
   

5. Manufacturers are reminded that CEPA ROOs are developed in accordance with the following principles :

1. the goods are wholly obtained in Hong Kong; or
   
   

2. the goods have undergone substantial transformation in Hong Kong.
   

Processes including simple diluting, mixing, packaging, bottling, drying, assembling, sorting or decorating will not be regarded as substantial transformation.

Important Note

6. TID will keep the data provided by manufacturers in strict confidence. However, TID may under certain circumstances disclose such data to the Customs and Excise Department ("C&ED") or other government departments, or to third parties within or outside Hong Kong. These circumstances include the following: the disclosure is necessary to facilitate the verification, certification, or consultation procedures; the disclosure is authorised or required by the laws; or an explicit consent to the disclosure is given by the manufacturers concerned.
   
   

7. When filling in the form(s), manufacturers should ensure that the information provided is accurate and complete. If there is any change in the information provided, manufacturers should immediately notify TID in writing. Furthermore, the CEPA and its Supplements provide that TID should verify and certify the information provided by manufacturers. Therefore, for the purpose of verification and certification of the information provided by individual manufacturers, TID may require the manufacturers concerned to provide further information. TID may also request C&ED to seek entry into the office and factory premises of the manufacturers concerned in order to understand more about the applications. It is the responsibility of the manufacturers to provide necessary assistance when they are so required or requested.
   
   

8. Applicants/data subjects whose personal data are collected by TID may request access to such data under the Personal Data (Privacy) Ordinance, Cap. 486. Such requests should be made on the Data Access Request Form (No. OPS003) issued by the Privacy Commissioner for Personal Data, which is available at TID's Information Counter on G/F of the Trade and Industry Department Tower, or may be downloaded from TID's webpage
   <http://www.tid.gov.hk/english/aboutus/form/publicform/others/files/dforme.pdf>. The completed form should be forwarded to the Factory Registration and Origin Certification Branch of TID. A charge will be made to cover the cost of photocopying the data supplied. In addition, if the data subject considers that the data supplied to TID is inaccurate after a data access request has been complied with, a request for correction of the personal data may be made in writing. 
   

Enquiries

9. Should you require further information on the content of this circular, please contact us through any of the following channels -

Yours faithfully,

(Andrew HO)

for Director-General of Trade and Industry

^{Note 1} Imported goods do not include those prohibited by the Mainland's rules and regulations and those prohibited as a result of the implementation of international treaties by the Mainland, as well as products that the Mainland has made special commitments in relevant international agreements. Applicants are advised to consult the Mainland customs and other relevant Mainland authorities for details about prohibited imports by the Mainland. Applicants may also refer to the commercial information circulars issued by the Trade and Industry Department, available at http://www.tid.gov.hk/english/cepa/tradegoods/trade_goods.html, for information about the catalogues of prohibited imports issued by the Mainland.