Manufacturers must first register under the Factory Registration (FR) system^Note to demonstrate that they possess sufficient capacity to produce the products concerned before they can apply for Certificates of Origin to cover their relevant exports, or to participate in Outward Processing Arrangement (OPA) and Local Subcontracting Arrangement (LSA).

A manufacturer’s FR is valid for one year. A registration fee is chargeable annually for factories which want to renew their FR with the Trade and Industry Department (TID). A manufacturer’s FR will become invalid and the FR number will be deleted if it is not renewed before its expiry. The Customs and Excise Department conducts pre-registration inspection and re-inspections on registered factories periodically to ensure that the registration information is accurate.

The FR system is maintained by TID for the purpose of origin certification. Manufacturers have the responsibility to ensure compliance with other statutory requirements as well as regulatory requirements administered by other government departments in relation to its operation and products. Such requirements may relate to manufacturing of food and pharmaceutical products, fire safety or environmental permits / licences, etc.

To be considered as a registrable manufacturing concern, the factory must:

1. be registered with the Business Registration Office of the Inland Revenue Department;
2. have fixed, self-contained premises (which may be self-owned or rented);
3. have machinery installed in the factory premises suitable for the manufacture of the product to be registered;
4. have labour force employed by the factory to produce the goods to be registered (the labour may be regular or casual workers on monthly, daily-paid or piece-rate basis); and
5. maintain up-to-date and accurate books and records on the factory's operations.