24-hour hotline : 23 922 922
e-mail address : enquiry@tid.gov.hk
Ref: FRCP 1000/20/7
5 December 2022
Dear Sirs,
Certificate of Origin Circular No. 7/2022
Commercial Information Circular No. 953/2022
Certificate of Preference Circular No. 2/2022
Notice to Exporters :
Series 1 (USA) No. 4/2022
Series 2 (EU) No. 4/2022
Series 3 (Countries other than USA & EU) No. 4/2022
Textiles Trader Registration Circular No. 6/2022
Mainland and Hong Kong
Closer Economic Partnership Arrangement (CEPA)
Agreement on Trade in Goods (The Agreement)
Request for Revisions to CEPA Rules of Origin (ROO)
(Arrangements for Making Requests in 2023)
Introduction
This circular outlines the arrangements for conducting Rules of Origin (ROO) Consultations between the Mainland and Hong Kong and the application procedures for Hong Kong manufacturers to submit requests for revisions to CEPA ROO under the Agreement on Trade in Goods (the Agreement) of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) in 2023.
Details
Arrangements for Conducting ROO Consultations between the Mainland and Hong Kong under the Agreement
2.Under the Agreement, all goods of Hong Kong origin can enjoy zero tariff preference when importing into the Mainland1, upon the CEPA ROO being met. According to the Agreement, a good will qualify as an originating good if it meets other applicable provisions, as well as2:
(1) the good is wholly obtained or produced in Hong Kong; or
(2) the good is produced in Hong Kong exclusively from originating materials; or
(3) the good is produced using non-originating materials in Hong Kong and
- the good falls within the scope of the Annex of the Agreement (Product Specific Rules of Origin, where details can be found in TID's webpage at: <https://www.tid.gov.hk/english/cepa/tradegoods/rules_origin.html>) and complies with the corresponding change in tariff classification, regional value content (RVC), manufacturing or processing operations, or other requirements; or
- the good does not fall within the scope of the Annex of the Agreement (Product Specific Rules of Origin), but complies with the requirement that the RVC is greater than or equal to 30% when calculated by the build-up method, or the RVC is greater than or equal to 40% when calculated by the build-down method ("General Rule").
A product shall not be considered as originating if it has only undergone one or more of the minimal operations or processes in Hong Kong.
3.If manufacturers need to request for revisions to CEPA ROO due to improvement in production technology or other reasons, they can submit their proposed revisions with the relevant information to TID. The Working Group on Rules of Origin established under the Agreement will conduct consultations on the proposed revisions to ROO in accordance with the agreed mechanism and time frame. The detailed implementation procedures for the ROO Consultations in 2023 are as follows:
(1) Submission of Applications
Hong Kong manufacturers may submit the applications for revisions to CEPA ROO to TID. TID will submit the proposed revisions which have been verified and certified to the Mainland before 1 March 2023 and 1 September 2023 respectively.
(2) Consultation and Promulgation of the Revision to CEPA ROO
The Working Group on Rules of Origin envisages to complete the CEPA ROO Consultations before 1 June 2023 and 1 December 2023 respectively. Upon the completion of the consultations, both the Mainland and Hong Kong will include the revised CEPA ROO in the Annex of the Agreement (Product Specific Rules of Origin) and promulgate them.
(3) Implementation of the Revised CEPA ROO
The revised CEPA ROO will be implemented no later than 1 July 2023 and 1 January 2024 respectively.
Submission of Applications for Revisions to CEPA ROO by Hong Kong Manufacturers
4.Hong Kong manufacturers intending to request for revisions to CEPA ROO pursuant to the procedures stated in paragraph 3 above shall provide information of the concerned goods and production details to TID by completing the application form at Annex (pdf format) of this circular. The completed application form and all required documents can be submitted by fax (fax number: 2787 6048), by e-mail (e-mail address: cepaco@tid.gov.hk), by post (address: Factory Registration and Origin Certification Branch, 14/F, Trade and Industry Tower, 3 Concorde Road, Kowloon City, Hong Kong), or submitted electronically via the Department's e-Form Submission Service <https://www.tid.gov.hk/english/aboutus/form/publicform/others/allforms.html>.
5.According to the time frame of the CEPA ROO Consultations agreed by the Mainland and Hong Kong, TID will conduct two rounds of ROO Consultations with the Mainland in respect of the revisions proposed by Hong Kong manufacturers in 2023. Applications received on or before 15 January 2023 will be included in the first round of consultation; while applications received from 16 January 2023 to 15 July 2023 will be included in the second round of consultation. Applications received after 15 July 2023 will be included in the next phase of consultations (in 2024).
Important Note
6.TID will keep the data provided by manufacturers in strict confidence. However, TID may under certain circumstances disclose such data to the Customs and Excise Department (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 verification, certification, or consultation procedures; the disclosure is authorised or required by the laws; or an explicit consent to the disclosure is given by the manufacturers concerned.
7.When filling in the application form(s), manufacturers should ensure that the information provided is accurate and complete. If there is any change in the information provided, manufacturers should immediately notify TID in writing. Furthermore, according to the arrangements for ROO Consultations agreed by the Mainland and Hong Kong, TID should verify and certify the information provided by manufacturers. Therefore, for the purpose of verification and certification of the information provided by individual manufacturers, TID may require the manufacturers concerned to provide further information. TID may also request C&ED to seek entry into the office and factory premises of the manufacturers concerned in order to understand more about the applications. It is the responsibility of the manufacturers to provide necessary assistance when they are so required or requested.
8.Applicants / data subjects whose personal data collected by TID may request access to such data under the Personal Data (Privacy) Ordinance (Cap. 486). Such requests should be made in writing by lodging a completed Data Access Request Form (No. OPS003) issued by the Privacy Commissioner for Personal Data, which is available at the Information Counter of the Integrated Customer Service Centre in Room 1324 on 13/F of the Trade and Industry Tower, 3 Concorde Road, Kowloon City, Hong Kong, or can be downloaded from TID's webpage, to the Factory Registration and Origin Certification Branch of TID. A charge will be made to cover the cost of photocopying the data supplied. In addition, if the applicant / data subject considers that the data supplied to TID is inaccurate after a data access request has been complied with, a request for correction of the personal data may be made in writing.
Enquiries
9. For any enquiries on the content of this circular, please contact us through the following channels -
| Postal Address: | Factory Registration and Origin Certification Branch 14/F, Trade and Industry Tower 3 Concorde Road, Kowloon City, Hong Kong |
|
| Telephone No.: | 3403 6432 | |
| Fax. No.: | 2787 6048 | |
| E-mail Address: | cepaco@tid.gov.hk | |
Yours faithfully,
(Jasper LAM)
for Director-General of Trade and Industry
1 Imported goods do not include those prohibited by the Mainland's rules and regulations and those prohibited as a result of the implementation of international treaties by the Mainland, as well as products that the Mainland has made special commitments in relevant international agreements.
2 For definition of originating goods and related information, please refer to the Certificate of Origin Circular No. 4/2018 issued by TID on 14 December 2018 at
<https://www.tid.gov.hk/english/aboutus/tradecircular/all_in_one/2018/as022018.html>.