Free Trade Agreement between Hong Kong, China and the Republic of Peru Exporting Goods Originating in Hong Kong to Peru

24-hour hotline : 23 922 922

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

Ref.: FRCP 1000/2/9

25 August 2026

Dear Sirs,

Hong Kong and Peru signed the Free Trade Agreement between Hong Kong, China and the Republic of Peru (HKCPEFTA), which will enter into force on 1 September 2026.

2.Under the HKCPEFTA, Hong Kong-origin exports which comply with the preferential rules of origin (ROOs) and other relevant requirements set out in Chapter 3 (Rules of Origin and Origin Procedures) can enjoy applicable preferential tariff treatment provided by Peru. This Circular outlines the preferential ROOs, documentary requirements, record keeping requirements and other relevant issues for exporting Hong Kong-origin goods to Peru under the FTA. The application conditions and procedures for Certificate of Hong Kong Origin - Peru (CO(Peru)) are set out in Certificate of Origin Circular No. 3/2026.

3.The full text and other details of the HKCPEFTA are available at the Trade and Industry Department (TID)’s website <https://www.tid.gov.hk/en/our_work/trade_and_investment_agreements/ftas/peru.html>. Traders should read the relevant provisions of the FTA, other relevant circulars issued by TID as well as updated information posted on TID’s website from time to time, in conjunction with this Circular.

4.Under the HKCPEFTA, Peru has committed to eliminate tariffs on approximately 98.3% of its tariff lines for Hong Kong-origin exports to Peru, amongst which tariff elimination concerning 91.3% of the tariff lines will take immediate effect upon the entry into force of the FTA, while tariffs of the remaining 7% tariff lines will be phased out gradually. Another 0.6% of Peru’s tariff lines will be subject to partial tariff elimination upon the entry into force of the FTA. While the remaining 1.1% of tariff lines will continue to be subject to customs duties, such tariff lines will be subject to negotiation for liberalisation in the fifth year from the date of entry into force of the FTA. Details of Peru’s tariff reduction commitments are available at <https://www.tid.gov.hk/en/our_work/trade_and_investment_agreements/ftas/peru/files/PEHKFTA_Chapter_2_Annex_2-B-Tariff_Schedule_of_Peru.pdf>.

Originating Goods

5.The ROOs for the purpose of preferential tariff treatment under the HKCPEFTA are set out in Chapter 3 and its Annexes. According to the FTA, a good is originating if it is -

1. wholly obtained or produced entirely in the Area of one or both Parties¹, in accordance with Article 3.3 (Wholly Obtained or Produced Goods) (please refer to Appendix A for details);
2. produced entirely in the Area of one or both Parties, exclusively from originating materials²; or
3. produced entirely in the Area of one or both Parties using non-originating materials, provided the good satisfies all applicable requirements of Annex 3-B (Product-Specific Rules of Origin), available at <https://www.tid.gov.hk/en/our_work/trade_and_investment_agreements/ftas/peru/files/PEHKFTA_Chapter_3_Annex_3-B.pdf>,

and the good satisfies all other applicable requirements of Chapter 3.

6.Some special rules regarding application of the ROOs are highlighted in paragraphs 7-23 below.

Regional Value Content

7.The regional value content (RVC) for goods subject to RVC requirement under the HKCPEFTA is calculated as follows -

RVC

=

FOB - VNM

/

FOB

x

100%

where:

RVC is the regional value content of a good, expressed as a percentage;

FOB is the value of the good free on board, inclusive of the cost of transportation to the port or site of final shipment abroad, regardless of the means of transportation; and

VNM is the value of non-originating materials, including materials of undetermined origin, used in the production of a good. It has to be -

8.The values mentioned in paragraph 7 above should be determined in accordance with the Customs Valuation Agreement³.

Accumulation

9.Originating materials of Peru incorporated into a good in Hong Kong should be considered as originating in Hong Kong.

De Minimis

10.A good that does not meet the change of tariff classification (CTC) requirement in accordance with Annex 3-B of the HKCPEFTA will still be considered as originating if the value of all non-originating materials used in its production not meeting the CTC requirement does not exceed 10% of the total value of the good.

11.However, if the good mentioned in paragraph 10 above is also subject to a RVC requirement, the value of all non-originating materials must be considered in calculating the RVC of the good.

Minimal Operations or Processes

12.The HKCPEFTA lists out certain minimal operations or processes, which are extracted at Appendix B. A good will not be considered as originating merely by going through one or more of the listed minimal operations or processes, even if it has satisfied other requirements in Chapter 3 of the FTA.

Fungible Goods or Materials

13.Fungible goods or materials refer to goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical. In determining whether a good is originating, any fungible good or material must be distinguished by -

1. physical segregation of each fungible good or material; or
2. use of any inventory management method recognised in the generally accepted accounting principles if the fungible good or material is commingled, and the inventory management method selected should be used throughout the fiscal year.

Accessories, Spare Parts, Tools or Instructional or Other Information Materials

14.A good’s accessories, spare parts, tools or instructional or other information materials should have the originating status of the good if -

1. they are classified and delivered with but not invoiced separately from the good; and
2. their types, quantities and value are customary for that good.

15.In determining whether a good is an originating good in accordance with paragraph 5(a) or 5(b) above, or satisfies the applicable process or CTC requirement set out in Annex 3-B of the HKCPEFTA, accessories, spare parts, tools or instructional or other information materials should be disregarded.

16.However, in determining whether a good meets a RVC requirement, the value of the accessories, spare parts, tools or instructional or other information materials should be taken into account as originating or non-originating, as the case may be, in calculating the RVC of the good.

Packaging Materials and Containers for Retail Sale

17.In determining whether all non-originating materials used in the production of a good have satisfied the applicable process or CTC requirement set out in Annex 3-B of the HKCPEFTA, or whether a good is originating in accordance with paragraph 5(a) or 5(b) above, packaging materials and containers in which the good is packaged for retail sale, if classified with the good, should be disregarded.

18.Nevertheless, if a good is subject to a RVC requirement, the value of such packaging materials and containers should be taken into account as originating or non-originating, as the case may be, in calculating the RVC of the good.

Packing Materials and Containers for Shipment

19.Packing materials and containers for shipment should be disregarded in determining whether a good is originating.

Indirect Materials

20.In determining whether a good is originating, indirect materials (please refer to Appendix C for the definition) should not be taken into account.

Sets of Goods

21.Sets, as defined in General Rule 3 of the Harmonized Commodity Description and Coding System (HS), will be regarded as originating when all their components are originating. Nevertheless, when a set is composed of originating and non-originating goods, the set as a whole will still be regarded as originating if the value of the non-originating goods does not exceed 15% of the total value of the set.

Direct Transport

22.In order for a Hong Kong-origin good to maintain its originating status, the good must be transported directly from Hong Kong to Peru. That said, a good transported from Hong Kong to Peru through one or more non-parties⁴ in transit, with or without transhipment or temporary storage of up to three months in such non-parties, will still maintain its originating status, provided that -

1. it remains under customs control in those non-parties; and
2. it does not undergo any operation in those non-parties other than unloading, reloading, repacking, labelling required by the laws of Peru or any operation required to keep it in good condition or to transport it to Peru.

23.In cases of transit or transhipment without temporary storage, the importer must submit transport documents covering the whole transporting route from Hong Kong to Peru upon request by the customs administration of Peru. In cases of storage in one or more non-parties, the importer should also submit customs documents of the non-parties or supporting documents issued by other relevant agencies in accordance with the laws and regulations of such non-parties.

Obligations Regarding Importations

24.To claim preferential tariff treatment for a Hong Kong-origin good, the importer should -

1. make a written statement in the import customs declaration, based on a valid CO(Peru) issued by TID or one of the Government Approved Certification Organisations (GACOs)⁵, indicating that the good qualifies as an originating good;
2. hold the CO(Peru) at the time the statement referred to in subparagraph (a) above is made;
3. hold the documents which evidence that the requirements in Article 3.14 (Direct Transport) of the HKCPEFTA have been met, if applicable; and
4. submit the valid CO(Peru) as well as the documents indicated in subparagraph (c) above to the customs administration of Peru.

25.For details on applications for CO(Peru), please refer to Certificate of Origin Circular No. 3/2026.

Exemption of Certificate of Origin

26.A CO(Peru) is not required if the customs value of an importation covered under a single invoice and single import customs declaration does not exceed US$600 or an equivalent amount in the currency of Peru. However, this exemption will not apply if Peru considers such importation to be evading compliance with its laws and regulations for claiming preferential tariff treatment under the HKCPEFTA.

Refund of Import Customs Duty

27.If a Hong Kong-origin good is imported into Peru without a CO(Peru) and the importer had provided, before release of the good, a written declaration or record in the import customs declaration that the good was eligible for preferential tariff treatment under the HKCPEFTA, the importer may apply for a refund of any excess import customs duty paid within one year of the date on which the good was imported. To apply for a refund, the following documents have to be presented -

1. a valid CO(Peru); and
2. other documentation related to the importation of the good as the customs administration of Peru may require.

Record Keeping of Certificate of Origin and Supporting Documents

28.The exporter applying for a CO(Peru) has to keep the documents referred to in Article 3.21 (Supporting Documents) of the HKCPEFTA for at least three years from the date of issuance of the CO.

29.As for the producer that provides supporting documents to the exporter, TID or a GACO for the purposes of issuance of a CO(Peru), it has to keep records relating to the origin of the good for at least three years from the date of the delivery of such documents.

30.The importer claiming preferential tariff treatment for a good imported into Peru should keep records related to the importation, including a copy of the CO(Peru), for at least three years from the date of importation of the good.

Verification Process

31.In order to determine whether a good imported into Peru qualifies as an originating good, Peru may conduct verification processes by different means in accordance with the requirements and procedures set out in Article 3.23 (Verification Process) of the HKCPEFTA.

32.In addition, as with other types of certificates of origin, the Customs and Excise Department will conduct factory inspections and consignment checks on CO(Peru) applications or CO(Peru) issued.

Denial of Preferential Tariff Treatment

33.Peru may deny a claim for preferential tariff treatment if -

1. the CO(Peru) does not meet the requirements of Chapter 3 of the HKCPEFTA;
2. compliance with Article 3.14 (Direct Transport) of the HKCPEFTA is not proven;
3. it is proven based on the results of the origin verification in Hong Kong pursuant to Article 3.23 (Verification Process) of the HKCPEFTA that the documentary evidence of origin is not authentic or not accurate;
4. it is determined through a verification process pursuant to Article 3.23 (Verification Process) that the good does not meet the requirements of Chapter 3 of the HKCPEFTA;
5. there is material evidence that the good does not qualify as an originating good in accordance with the applicable provisions of Chapter 3 of the HKCPEFTA; or
6. the importer does not comply with any requirements of Chapter 3 of the HKCPEFTA.

34.If preferential tariff treatment is denied, the customs administration of Peru would provide to the importer the reasons for that decision in writing.

35.For enquiries, please contact us through the following channels -

Postal Address:	Factory Registration and Origin Certification Branch Trade and Industry Department 14/F, Trade and Industry Tower 3 Concorde Road, Kowloon City Hong Kong
Telephone No.:	3403 6432
E-mail Address:	cepaco@tid.gov.hk
Fax. No.:	2787 6048

Yours faithfully,

(Nicholas FUNG)
for Director-General of Trade and Industry

¹ “Both Parties” refers to the Parties to the FTA, which are Hong Kong, China (hereinafter referred as Hong Kong) and the Republic of Peru (hereinafter referred as Peru).
² “Originating materials” means materials that qualify as originating in accordance with Chapter 3 of the HKCPEFTA.
³ “Customs Valuation Agreement” means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994.
⁴ “Non-parties” means places other than Hong Kong or Peru.
⁵ The GACOs are Federation of Hong Kong Industries; the Chinese General Chamber of Commerce; the Chinese Manufacturers’ Association of Hong Kong; the Hong Kong General Chamber of Commerce; and the Indian Chamber of Commerce, Hong Kong.