Certificate of Origin Circulars
24-hour hotline : 23 922 922
e-mail address : enquiry@tid.gov.hk
Ref. : TRA CR 1308
FRCP 500
2 December 2014
Dear Sirs,
Certificate of Origin Circular No. 12/2014
Certificate of Preference Circular No. 5/2014
Hong Kong Certificate of Origin System
Introduction
This Circular outlines Hong Kong's Certificate of Origin System. The certificate of origin system in Hong Kong is administered to facilitate Hong Kong's exports to foreign markets. The certification system also supports certain Hong Kong products for claiming zero/preferential tariff under certain free trade agreements (FTAs) which Hong Kong has concluded with its trading partners. The following Certificate of Origin Circulars (CoCs) and Notices to Exporters (NE) are hereby superseded:
| - | CoC No. 7/98 (9 July 1998) |
| - | CoC No. 15/2004 (3 December 2004) |
| - | CoC No. 16/2004 (13 December 2004) |
| - | CoC No. 2/2008 cum NE Series 1 (USA)/Series 2 (EU)/Series 3 (Countries other than USA and EU) No. 1/2008 (12 February 2008) |
| - | CoC No. 3/2012 (21 March 2012) |
Hong Kong Certificate of Origin System
2.Certificates of Origin (COs) are issued by the Trade and Industry Department (TID) of the Government of the Hong Kong Special Administrative Region (HKSAR). Apart from TID, there are five organisations in Hong Kong which have been designated by the HKSAR Government as Government Approved Certification Organisations (GACOs) to issue COs. The GACOs are:
- The Hong Kong General Chamber of Commerce
- The Federation of Hong Kong Industries
- The Indian Chamber of Commerce, Hong Kong
- The Chinese Manufacturers' Association of Hong Kong
- The Chinese General Chamber of Commerce
3.To maintain the integrity of the Hong Kong certificate of origin system, the HKSAR Government ensures that all CO issuing organisations in Hong Kong referred to in paragraph 2 above adopt the same practices and procedures in the issue of COs; and in particular, that the Hong Kong rules of origin are followed. TID assists the GACOs in the training of their administrative and inspection staff, and ensures maintenance of a uniform high standard of integrity by all the above-mentioned certification organisations. The COs issued by the GACOs are protected by Hong Kong law and have the same status as those issued by TID. Non-government approved organisations may issue their own certificates for trade facilitation purpose, but traders should be aware that these certificates do not carry any legal status recognized by the law of Hong Kong.
4.The issue of COs by TID and by the GACOs is governed by the Export (Certificates of Origin) Regulations (Cap. 60H) of the Import and Export Ordinance (Cap. 60) and the Protection of Non-Government Certificates of Origin Ordinance (Cap. 324) respectively. The laws provide the Director-General of Trade and Industry with the power to administer the certification system, and provide penalty for certification offences. The Commissioner of Customs and Excise of the HKSAR Government has legal responsibility for the enforcement of the laws.
5.The detailed Hong Kong origin criteria for specific products are established in accordance with internationally accepted practice and the provisions contained in the Agreement on Rules of Origin of the World Trade Organisation. They are subject to review periodically to take account of technological changes and industrial development in Hong Kong. Any changes to the origin criteria for specific products follow the basic principle of substantial transformation. The origin criteria, including the principal processes which confer origin to a finished article, for specific products and periodic refinement to them are published in circulars sent to traders
6.With effect from 21 November 2014, manufacturers are no longer required to lodge Production Notification (PN) for any cut-and-sewn garments manufactured in Hong Kong. Hence, the requirement that CO applications covering cut-and-sewn garments to the US market must be supported by PN is also lifted. Details are set out in CoC No. 6/2014 of 30 September 2014 (https://www.tid.gov.hk/english/aboutus/tradecircular/all_in_one/2014/as042014.html).
7.Since Hong Kong's well-established origin certification system is widely accepted by the international trading community, a CO serves as a convenient proof of Hong Kong origin which facilitates customs clearance of Hong Kong products at the importing ends.
Factory Registration
8.Factory Registration (FR) is a pre-requisite for manufacturers and subcontractors intending to apply for a CO, participate in the Outward Processing Arrangement (OPA) and Local Subcontracting Arrangement (LSA). To apply for and maintain registration under FR, factories must, among others, have appropriate machinery and labour for producing the products for which they are registered. They are also required to keep up-to-date and accurate books and records of production. As a condition of registration, all registered manufacturers have an obligation to notify TID immediately in writing of any changes in registration particulars. The Department conducts an annual updating exercise on the registration particulars. The Customs and Excise Department (C&ED) conducts pre-registration inspection and re-inspections on registered factories periodically to ensure that their registrations are in order.
Outward Processing Arrangement (OPA)
9.OPA enables manufacturers registered with TID to subcontract outside Hong Kong the subsidiary or minor finishing processes without affecting the eligibility of such goods for attaining Hong Kong origin status. A pre-requisite for participation in the OPA is that the goods concerned must have undergone the principal manufacturing processes in Hong Kong which are sufficient to qualify them as of Hong Kong origin. On both exportation and importation of goods under OPA, all documents required would be checked by C&ED officers who may also conduct selective cargo examination. For OPA conditions and procedures, please refer to the following webpage (https://www.tid.gov.hk/english/import_export/cert/cert_othercodoc_outward.html).
Local Subcontracting Arrangement (LSA)
10. LSA allows manufacturers to employ local subcontractors to carry out the principal/origin-conferring process(es) of manufacture or the entire production of goods, provided that certain conditions are met and prior approval has been obtained from TID. Both the principal manufacturer and subcontractor must be registered with TID for the production of the same type of goods. Manufacturers employing local subcontractors to carry out principal process(es) of manufacture or the entire production of goods are required to provide the subcontractor's information and declaration on their CO applications. They must also keep books and records which clearly indicate when and to whom the principal process(es) of manufacture have been subcontracted.
Compliance with Consignment Check Requirements
11.In order to uphold the integrity of the origin certification system, TID, in conjunction with C&ED, may conduct consignment checks to verify the accuracy of material particulars declared on CO applications. Traders are required to comply with the consignment check requirements as stipulated in CoC No. 5/2005 dated 13 July 2005 (https://www.tid.gov.hk/english/aboutus/tradecircular/coc/2005/coc052005.html). In particular, CO applicants should note that if an 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.
Reminder
12.Notwithstanding the above, traders are reminded to comply with the local regulatory requirements, as well as to find out from their overseas buyers and the government authorities at the importing ends any other specific requirements they need to observe before exportation of their goods from Hong Kong, including but not limited to origin classification and origin labelling requirements.
Warning
13.TID works closely with C&ED through checks and inspections to ensure compliance with the provisions of the origin certification system. Breach of any of the provisions of the origin certification system or failure to comply with other requirements promulgated by TID through notices and circulars may result in prosecution under Cap. 60 or Cap. 324 as appropriate, which provides for a penalty of a fine of HK$500,000 and 2 years' imprisonment. In addition, TID may take administrative actions against the exporters and manufacturers (including subcontractors as the case may be) concerned, irrespective of whether they have been prosecuted.
Enquiries
14.The requirements and application procedures of the above-mentioned arrangements and the updated rules of origin, including those established under FTAs, are set out in TID's website (https://www.tid.gov.hk/english/import_export/cert/cert_maincontent.html). Should you require further information on the content of this circular, please contact the following sections of the Factory Registration and Origin Certification Branch:
| Service | Telephone Number |
| FR, OPA & LSA | 2398 5531 |
| CHKO, COP, CO(Georgia), CO(Form AHK) & Statutory Declarations for Export of Antiques | 2398 5545 |
| CO(CEPA), CO(NZ) & Preferential Rules of Origin under other FTAs | 3403 6432 |
Yours faithfully,
(Miss Winnie CHIEN)
for Director-General of Trade and Industry