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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
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Press Release 2008

Coverage of trade facilitation measure extended
Wednesday, May 28, 2008

With effect from today (May 28), the Trade and Industry Department (TID) will extend the coverage of its "Approval-in-Principle Arrangement for Bulk Users of Strategic Commodities Licensing Service" to include electronic products, in addition to the current telecommunications and information security products. 

The arrangement, first implemented in July 2007, is a major trade facilitation initiative of the department on the strategic trade controls front. Licence applications lodged under the arrangement require less processing time and the approved licences can be obtained electronically.

The scheme aims to further streamline licensing procedures and expedite processing time for certain frequent and qualified users of the licensing service for strategic commodities. A company which frequently imports a less sensitive product from the same supplier or frequently exports a less sensitive product to the same consignee may apply for an "Approval-in-Principle" for such consignments. Once an "Approval-in-Principle" has been granted, the company may then electronically apply for and receive the import/export licence that covers the individual shipments within the scope of the "Approval-in-Principle". The processing time is shorter for licence applications covering individual shipments under this arrangement.

"The department has organised briefings for the eligible companies to introduce the arrangement and explain the relevant operations and procedures. This is a further effort made by the department to improve licensing services," a TID spokesman said.

Under the Import and Export Ordinance (Cap 60), import and export of strategic commodities are subject to licensing controls by the Director-General of Trade and Industry. "Such controls are necessary in order to monitor and control the flow of strategic commodities, and hence to maintain the confidence of the technology supplying countries in our control system, thereby ensuring Hong Kong's continued access to high technology products," the spokesman said. 

"The 'Approval-in-Principle' arrangement does not change the existing legislative requirement in strategic trade controls. In other words, the legal responsibilities of importers, exporters and carriers under the Import and Export Ordinance (Cap 60) do not change under the scheme." 

For details of the new phase of the scheme, traders may refer to the Strategic Trade Controls Circular No 6/2008 dated May 5 which can be downloaded from the Strategic Commodities Control System website (www.stc.tid.gov.hk) of the TID, or contact its Strategic Trade Controls Branch at 3403 6424.

Ends