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Ref: FRCP 1000/2/6
9 May 2019
Certificate of Origin Circular No. 6/2019
Commercial Information Circular No. 354/2019
Certificate of Preference Circular No. 6/2019
Notice to Exporters :
Series 1 (USA) No. 6/2019
Series 2 (EU) No. 7/2019
Series 3 (Countries other than USA & EU) No. 6/2019
Textiles Trader Registration Circular No. 7/2019
ASEAN - Hong Kong, China Free Trade Agreement (AHKFTA)
This circular sets out the application conditions and relevant information for issuing a Certificate of Origin - Re-export (Movement Confirmation) (MC) in Hong Kong under the ASEAN - Hong Kong, China Free Trade Agreement (AHKFTA) (Note 1). The commitments made under the Free Trade Agreement between Hong Kong and ASEAN amongst Hong Kong and three ASEAN Member States (AMS), namely Myanmar, Singapore and Thailand will enter into force on 11 June 2019. Goods of Hong Kong origin for exportation to Myanmar, Singapore and Thailand are eligible for preferential tariff treatment under AHKFTA. Subject to completion of the necessary procedures of the respective AMS, the effective dates for other AMS to provide preferential tariff treatment under AHKFTA will be separately announced. The Government Approved Certification Organizations (GACOs) will start accepting MC application on 11 June 2019 [Details of Issuing Authorities at paragraph 6 below].
2.Certificate of Origin Circular (CoC) No. 4/2019 informed the trade of the rules of origin and other requirements for goods claiming tariff preferences under the AHKFTA. As mentioned in the circular, two types of Certificate of Origin (CO) will be issued in Hong Kong to cover eligible goods claiming tariff preferences offered by the AMS under the AHKFTA, viz. Certificate of Hong Kong Origin - Form AHK (CO(Form AHK)) for Hong Kong-origin goods and MC for eligible re-exports passing through Hong Kong under the AHKFTA. For details on CO(Form AHK), please refer to CoC No. 5/2019.
3.The full text and other details of the AHKFTA are also available on TID's website <https://www.tid.gov.hk/english/ita/fta/hkasean/index.html>. Traders are advised to read the relevant provisions of the AHKFTA and its Annexes, 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. The format of MC is attached at Appendix.
II. Movement Confirmation
4.In general, preferential tariff treatment under the AHKFTA will only be granted to goods consigned directly between the exporting Party (Note 2) and the importing Party as set out in Article 9 of Chapter 3 (Rules of Origin) of the AHKFTA. Nevertheless, the AHKFTA provides for a mechanism whereby the intermediate exporter in Hong Kong can apply for an MC to cover goods originating from one AMS Party passing through Hong Kong for re-export to another AMS Party, so that such goods can keep the originating status of the first exporting AMS Party. In other words, the re-exported goods covered by an MC can still enjoy the corresponding tariff preference offered by the importing AMS Party, provided that the relevant requirements in the AHKFTA are met.
5.For details of tariff reduction commitments of each AMS, please refer to TID's webpage <https://www.tid.gov.hk/english/ita/fta/hkasean/text_agreement.html>.
6.MCs will be issued by the five GACOs, namely the Hong Kong General Chamber of Commerce, the Federation of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong, the Indian Chamber of Commerce, Hong Kong and the Chinese General Chamber of Commerce. Traders are reminded to check with the respective GACOs for the detailed application procedures for an MC.
Submission of MC Application and Issuing Conditions
7.Under normal circumstances, traders are required to apply for MC before exportation of goods from Hong Kong, and the departure date should be at least 2 clear working days after the date of application.
8.The goods which are to be re-exported to a final importing Party using the MC must not undergo any further processing in Hong Kong, except for repacking or logistics activities such as unloading, reloading, storing or any other operations necessary to preserve them in good condition or to transport them to the final importing Party.
9.To apply for an MC, the intermediate exporter in Hong Kong of the consignment concerned must submit the completed MC application form to one of the GACOs together with the following supporting documents:
- a valid original CO(Form AHK) or its certified true copy issued by the originating AMS Party;
- the packing list, the commercial invoice and transport documents (e.g. bill of lading, air waybill or road manifest) of the imported consignment;
- the packing list, the commercial invoice and transport documents (e.g. bill of lading or air waybill) of the consignment to be re-exported, if any; and
- the Business Registration Certificate of the intermediate exporter in Hong Kong.
The MC application form can be obtained from GACOs. If required by the issuing organization and/or the Customs and Excise Department (C&ED), the intermediate exporter of the goods applying for an MC must provide other appropriate supporting documents and relevant information.
10.In general, a CO(Form AHK) can only be used to support one MC application. As stipulated in Annex 3-1 to Chapter 3 of AHKFTA, the MC should contain the relevant information from the original CO(Form AHK), with the data requirements as follows. The information will be printed on the MC.
- Intermediate Exporter's Information: the details of the intermediate exporter in Hong Kong must be provided;
- Consignee's Name and Address: the consignee's name and address in the final importing Party must be provided;
- Shipping Details: the means of transport and route from Hong Kong to the importing Party must be provided;
- Product Description: the product details provided in the MC application, including marks and numbers on packages, HS Codes, brand names and origin-conferring criterion, etc., must be the same as those on the originating CO(Form AHK);
- Invoice Details: the number and date of the invoice(s) issued for the importation of the goods into the final importing Party must be provided; and
- FOB Value: the FOB value of the consignment to be re-exported from Hong Kong must be provided when the Regional Value Content origin criterion is applied.
11.The intermediate exporter in Hong Kong is required to make the following declaration on the MC. Upon collection of the issued MC from the issuing organization, the signatory of the intermediate exporter must sign the declaration (Box 11) on the MC before passing it to the final importer for claiming tariff preferences.
The undersigned hereby declares that the above details and statements are correct; and that all the goods were produced in ____________________ (Country/Party of origin) and that they comply with the rules of origin, as provided in Chapter 3 (Rules of Origin) of the ASEAN - Hong Kong, China Free Trade Agreement for the goods exported to _______________ (Importing Country/Party).
12.An MC is valid until the expiry of the original CO(Form AHK).
Record Keeping Requirement
13.Under the AHKFTA, the manufacturer and/or exporter applying for a CO(Form AHK) should keep its supporting records for application for not less than three years from the date of issuance of the CO(Form AHK) concerned. The same should apply to the intermediate exporter applying for the issuance of an MC.
Verification of MC
14.Similar to other types of CO applications, C&ED may conduct consignment checks to verify the accuracy of material particulars declared on MC applications. In particular, applicants should note that if an MC application is selected for pre-issue check, it will normally take a relative longer time to process that application. Traders should bear this in mind in drawing up their shipment schedules.
15.In the event that the information on the MC is not complete or circumvention is suspected, the final importing Party may request the original CO(Form AHK) be submitted to its respective competent authority. The final importing Party may also request C&ED to conduct retroactive checks on an MC at random or when it has reasonable doubt as to the authenticity of the document, or as to the accuracy of the information regarding the true origin of the goods in questions or of certain parts thereof. It may also request verification visits to the premises of the intermediate exporter, in accordance with the procedures laid down in Rule 17 and Rule 18 respectively of Annex 3-1 to Chapter 3 of the AHKFTA.
Application for Certified True Copy (CTC)
16.In the event of theft, loss or destruction of an MC, traders may apply for a CTC of the MC by:
- explaining in writing the circumstances leading to the request; and
- providing supporting documents to substantiate the claim of theft, loss or destruction, and a photocopy of the MC concerned, where available.
17.Application for a CTC of an MC must be fully substantiated by documentary evidence. The CTC of an MC will be issued within one year from the date of issuance of the original CO(Form AHK) and will be valid during the term of validity of the original CO(Form AHK). Issuing organizations will consider each case on its own merits and reserve the full right to approve or reject the application. Traders are reminded that if the original MC had been used in claiming preferential tariff treatment under the AHKFTA, the CTC of the MC will at once become invalid. Likewise, the original MC will become invalid once the CTC is used.
III. Customs Clearance
18.In the event that traders encounter problems in customs clearance of goods covered by an MC, they may seek assistance from the issuing GACOs or TID [Contact details at paragraph 22 below]. However, TID will not accept any liability in cases where the customs authorities of the final importing Party do not accept the claim for preferential tariff treatment under the AHKFTA.
IV. Handling of Information
19.MC issuing organizations will keep the data provided by traders in strict confidence. However, GACOs may under certain circumstances disclose such data to the C&ED or other government departments, or to third parties within or outside Hong Kong. These circumstances include the following: the disclosure is necessary to facilitate the consideration or verification of the MC in question; the disclosure is authorized or required by the laws; or an explicit consent to the disclosure is given by the traders concerned.
V. Important Note and Warning
20.It is the responsibility of traders to complete the application for MC fully and truthfully, and provide the supporting documents as required under the issuing conditions for MC. Failure to provide accurate and complete information may affect the consideration and processing of the application, and may result in the application being deferred or rejected.
21. TID and GACOs work closely with C&ED, through checks and inspections, to ensure compliance with the provisions of the Import and Export Ordinance (Cap. 60) and its subsidiary legislations as well as the Protection of Non-Government Certificates of Origin Ordinance (Cap. 324). Companies/registered businesses/individual may be liable to criminal prosecution for circumventing the conditions of MC. A company/registered business/individual which commits an offence under the above Ordinances is liable to a maximum penalty of a fine of HK$500,000 and 2 years' imprisonment. Moreover, GACOs may take administrative actions against the traders concerned irrespective of whether they have been prosecuted. Such administrative actions may involve, but shall not necessarily be confined to, refusal to issue a CO.
22.For enquiries, please contact us through the following channels:
|Trade and Industry Department
(Factory Registration and Origin Certification Branch)
|Tel : 2398 5545
Fax : 2787 6048
E-mail : firstname.lastname@example.org
|- The Hong Kong General Chamber of Commerce||Tel : 2395 5515|
|- The Federation of Hong Kong Industries||Tel : 2396 3318|
|- The Chinese Manufacturers' Association of Hong Kong||Tel : 2542 8613|
|- The Indian Chamber of Commerce, Hong Kong||Tel : 2525 0138|
|- The Chinese General Chamber of Commerce||Tel : 2526 0623|
for Director-General of Trade and Industry
Note 1: ASEAN comprises Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam.
Note 2: "Party/Parties" refers to Hong Kong and/or AMS whose commitments made under the AHKFTA have entered into force. As set out in paragraph 1 of this Circular, the commitments made under the Free Trade Agreement between Hong Kong and ASEAN amongst Hong Kong and three AMS, namely Myanmar, Singapore and Thailand will enter into force on 11 June 2019.