Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)
Trade in Goods
Under CEPA, the Mainland agreed to fully implement zero tariff on imported goods of Hong Kong origin from 1 January 2006, upon applications by local manufacturers and upon the CEPA origin rules (ROOs) being agreed and met. Imported goods do not include goods prohibited by the Mainland's rules and regulations and those prohibited as a result of the implementation of international treaties by the Mainland. So far, both sides have reached agreements on the CEPA ROOs for over one thousand nine hundred items of goods. For goods that have no agreed ROOs for the time being, their relevant ROOs will be jointly worked out twice a year on applications by the trade from 2006.
Goods exported from Hong Kong to the Mainland must fulfill the CEPA origin rules in order to claim zero tariff under CEPA. To claim the tariff preference, each consignment of goods exported to the Mainland must be accompanied by a Certificate of Hong Kong Origin - CEPA ("CO(CEPA)") issued by the Trade and Industry Department or one of the five Government Approved Certification Organizations (i.e. the Hong Kong General Chamber of Commerce; Federation of Hong Kong Industries; the Chinese Manufacturers' Association of Hong Kong, the Chinese General Chamber of Commerce and the Indian Chamber of Commerce, Hong Kong). Before applying for CO(CEPA), the Hong Kong manufacturer concerned is required to apply for Factory Registration (FR) with the Trade and Industry Department to demonstrate that its factory possesses sufficient capacity to produce the goods for export.