Amendments to the strategic commodities control list gazetted
Friday, January 7, 2000

The Government will table at the Legislative Council on 12 January 2000 an Amendment Order to relax licensing controls over the import and export of microprocessors and computers.

The amendments seek to relax the control thresholds of microprocessors from 260 million theoretical operations per second (Mtops) to 3,500 Mtops, and that of computers from 2,000 Mtops to 6,500 Mtops.

"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," a spokesman for the Trade Department said.

"In December 1999, the Wassenaar Arrangement, the international non-proliferation regime which governs the controls over industrial dual-use goods and conventional weapons, relaxed the control thresholds of microprocessors and computers. The amendments contained in the Import and Export (Strategic Commodities) Regulations (Amendment of Schedule 1) Order 2000 gazetted today (Friday) aim to reflect these latest control standards in our legal framework, in order to facilitate import and export of microprocessors and computers and to enable Hong Kong traders to benefit from the relaxation in the first instance." he 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.

"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," he said.

If the Legislative Council raises no objection to the amendments, they will come into force on a day in February 2000, to be appointed by the Director-General of Trade, by notice in the Government Gazette.

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 be made to the Strategic Commodities Section, Trade Department, 5th floor, Trade Department Tower, 700 Nathan Road, Mong Kok, Kowloon or by telephone at 2398 5581 or 2398 5572.

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