Amendments to Strategic Commodities Control List to Take Effect Today
Friday, February 11, 2000

The Import and Export (Strategic Commodities) Regulations (Amendment of Schedule 1) Order 2000, gazetted on 7 January and tabled at the Legislative Council on 12 January, will come into operation today (Friday). The Amendment Order relaxes the import and export control thresholds of microprocessors from the current 260 million theoretical operations per second (Mtops) to 3,500 Mtops, and that of computers from the present 2,000 Mtops to 6,500 Mtops. This would mean import and export of most of the commonly available computers and microprocessors will be exempt from licensing control.

"Hong Kong has followed closely the control thresholds adopted by the international control regimes as our reference in imposing the licensing requirements. Whenever these regimes introduce changes to their control lists, Hong Kong would follow suit to ensure that on the one hand, we would always be upholding controls to the highest international standards and on the other, we would be exempting traders from licensing controls whenever international standards are being relaxed." a spokesman for the Trade Department said.

"The current exercise, for instance, seeks to reflect in Hong Kong's control framework relaxations recently adopted by the Wassenaar Arrangement, the international non-proliferation regime governing the controls over industrial dual-use goods and conventional weapons, over computers and microprocessors." he added.

"Hong Kong traders would certainly welcome the relaxation as it would in practice relieve them of the burden of taking out import and export licences for commonly available microprocessors and computers", the spokesman said.

Under Hong Kong's legislative framework, the import and export of microprocessors and computers above a specified control threshold, measured in terms of their Mtops, are classified as strategic commodities and are subject to licensing controls by the Director-General of Trade.

"Such licensing controls are necessary to maintain the confidence of the supplying countries of these products on our control system, thereby ensuring Hong Kong's continued access to the high-tech products we need to sustain our growth," said the spokesman.

Copies of the Amendment Order are available for sale at the Government Publications Centre, Queensway Government Offices, Low Block, ground floor, 66 Queensway, Hong Kong. Enquiries on the amendments can also be made to the Strategic Commodities Section, Trade Department, 5th floor, Trade Department Tower, 700 Nathan Road, Mongkok, Kowloon or by telephone at 2398 5581 or 2398 5572.

Trade Department will also inform traders of the amendments by circular.