Press Release

Procedures for applying for exemption from Mainland export duty explained
Wednesday, June 8, 2005

Over 700 Hong Kong traders participated in a seminar today (June 8) on how to apply for exemption from Mainland export duty with a "Certificate for Outward Processing in Mainland" (OPA Certificate).

At the seminar, the Assistant Director-General of Trade and Industry, Miss Charmaine Lee, briefed participants on procedures and requirements for getting an endorsed OPA Certificate from the Trade and Industry Department (TID) , and representatives from the Guangdong Customs explained the steps for claiming duty exemption from the Mainland Customs with the endorsed OPA Certificate.

The Mainland and Hong Kong have earlier agreed to adopt a transitional arrangement for allowing Hong Kong-origin textile and clothing products to claim exemption from Mainland export duty with an OPA Certificate, before the long-term arrangement of using electronic mode is put in place.

Starting on Friday (June 10), traders exporting OPA goods from the Mainland back into Hong Kong after outward processing can present the endorsed OPA Certificate to Mainland Customs to seek duty exemption.

"We are ready to implement the interim arrangement," Miss Lee said, "the new OPA Textiles Duty Exemption Office in TID has started to process applications and answer enquiries." Details of the interim arrangement can be found in TID's Commercial Information Circular No. 192/2005, which can be downloaded from the TID's Web Portal. Traders may also call the OPA Textiles Duty Exemption hotlines at 2398 5370 or 34036432.

Miss Lee reminded traders that only those goods that have undergone principal processes in Hong Kong which are sufficient to qualify them as of Hong Kong origin can participate in Hong Kong's Outward Processing Arrangement and be eligible for the Mainland's export duty exemption. Traders are also required to apply for a Certificate of Hong Kong Origin when exporting these goods.

"To safeguard the overall trade interest of Hong Kong's textiles and clothing industry, TID also strongly encourages traders to apply for Certificates of Hong Kong Origin for all Hong Kong-origin textiles and clothing products, as proof that the products are genuinely produced in Hong Kong and to facilitate clearance at the importing countries," Miss Lee said.

TID will continue to work closely with the Customs and Excise Department, through checks and inspections, to vigorously enforce Hong Kong's origin requirements. The two Departments will take firm actions against all illegal transshipment activities. 

"Illegal transshipment is a serious breach of the law and offenders will be liable to both prosecution and administrative actions," Miss Lee stressed.

The seminar was organised by TID, Hong Kong Trade Development Council, Textile Council of Hong Kong Ltd. and Federation of Hong Kong Industries. 

Ends