1. prior approval has to be obtained before the employment of the subcontractor;
2. both the principal manufacturer and the subcontractor must be registered with the Trade and Industry Department for the production of the same type of goods;
3. subcontractors are not allowed to further subcontract the principal/origin-conferring manufacturing process(es) to other factories;
4. where the manufacturer wishes to employ more than one subcontractor, separate applications are required; and

5. the principal manufacturer is required to maintain books and records clearly indicating when and to whom the principal process(es) of manufacture have been subcontracted. The despatch and receipted record should include the following details:

   1. description of materials;
   2. quantity;
   3. date passed to subcontractor;
   4. name of subcontractor;
   5. process(es) carried out;
   6. date returned from subcontractor;
   7. remuneration paid for work done.

1. Applications have to be made on the Application Form for Local Subcontracting Arrangement (TID 107).
2. Application forms should be completed and jointly signed by the authorized representatives of the manufacturer and the subcontractor.
3. Return the completed form by the following means:
   • through the e-Form Submission Service;
   • by fax (fax no.: 2787 6048);
   • by email (email address: fr_section@tid.gov.hk);
   • by post (address: Factory Registration and Origin Certification Branch, 14/F, Trade and Industry Tower, 3 Concorde Road, Kowloon City, Hong Kong); or
   • in person, including by courier (address: Information Counter, Integrated Customer Service Centre, Room 1324, 13/F, Trade and Industry Tower, 3 Concorde Road, Kowloon City, Hong Kong).
4. If the application is in order, the form will be endorsed with an approval reference number.

An approved LSA is valid for a period of 12 months from the date of endorsement. Manufacturers may renew the approved LSA by submitting a fresh application if they wish to continue the arrangement.