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28 February 2013

Powdered Formula Licensing Circular No. 2/2013

Export Control on Powdered Formula in Hong Kong

I. Introduction

As foreshadowed in paragraph 6 of the Powdered Formula Licensing Circular No. 1/2013 of 22 February 2013, this is to inform the trade of the export licensing arrangements for laboratory service provider/other agency authorised by registered importers of powdered formula (Note 1) (registered importer) to export small quantities of powdered formula outside Hong Kong for testing purposes.

II. Details

2.Traders are requested to note that the detailed arrangements announced in Powdered Formula Licensing Circular No. 1/2013 issued on 22 February 2013 are valid and continue to apply.  The purpose of this circular is to announce the export licence arrangements for registered importers that have authorised specified laboratory service provider/other agency to export small quantities of powdered formula outside Hong Kong for testing purposes.

Licensing Arrangements for Powdered Formula Exported for Testing

3.For the purpose of their business, importers of powdered formula every now and then need to engage laboratory service providers/other agencies for testing their powdered formula products, so as to ensure that the products are of quality, are fit for consumption, and/or are in compliance with local food legislation etc.  While some of such testing is conducted locally, there are occasions whereby the laboratory service providers/other agencies need to arrange the tests outside of Hong Kong.  With the amendments to the Import and Export (General) Regulations (Cap. 60 sub. leg. A), exports of powdered formula (Note 2) are required to be covered by an Export Licence issued by the Director-General of Trade and Industry (DGTI).  The export control system would facilitate normal trading activities where importers of powdered formula would be able to re-export a certain portion of their imports outside Hong Kong under the cover of an Export Licence.  In general, only importers registered with the Director of Food and Environmental Hygiene (FEHD) as a food importer and holds a valid registration under the Food Safety Ordinance (Cap. 612) could apply for an Export Licence.  To facilitate the laboratory service providers/other agencies to send samples of the powder formula to places outside of Hong Kong for testing purpose, the laboratory service providers/other agencies may apply for Export Licence provided that it is authorised by the registered importer of the powdered formula.  Each Export Licence application must be supported by an authorisation letter issued by the registered importer which the laboratory service provider/other agency works for.  The authorisation letter serves to confirm that the registered importer engages the laboratory service provider/other agency in providing overseas testing services, and the laboratory service provider/other agency therefore needs to export samples of powdered formula imported by the registered importer for testing purpose.  A photocopy of the authorisation letter is acceptable to support the Export Licence application.  The following information must be included in the authorisation letter:

1. date of issue of the letter;
2. the "Name of Business" registered under the Food Safety Ordinance (Cap. 612) of the importer, its Business Registration Number, and its Importer Registration Number or food importer exemption number under the Food Safety Ordinance (Cap. 612);
3. company name of the laboratory service provider/other agency engaged by the registered importer and its Business Registration Number;
4. the start date and the end date of the period during which the laboratory service provider/other agency needs to export the powdered formula for testing purpose.  The start date does not necessarily be the same as the date of issue of the letter.  The authorisation letter shall cover a period not exceeding 6 months or until the last day of the validity of the Importer's registration under the Food Safety Ordinance (Cap. 612) or exemption under section 4(3)(a) of Cap. 612, whichever is the earlier.  When submitting export licence applications, the laboratory service providers/other agencies are reminded to ensure that shipments must be made within the period covered by the authorisation letter ;
5. the brand name(s) of the powdered formula imported by the importer to be tested;
6. name and designation of the signatory of the registered importer to sign the authorisation letter.  The signatory must be a company principal (e.g. Director, Partner or sole-proprietor) or a managerial staff authorised by the Board of Directors of a limited company;
7. a clear and legible company chop of the registered importer.

4.Registered importers are advised to follow the sample at Annex 1 in preparing the authorisation letter.  Relevant guidance notes for preparing the letter are at Annex 2.

5.Instead of a laboratory service provider, some powdered formula importers engage an agency to assist in their overseas testing work.  The export licence application procedures set out in this circular also apply to these agencies.

6.When processing an application submitted by a laboratory service provider/other agency, Trade and Industry Department (TID) will pass the Export Licence together with the authorisation letter to FEHD for verification of the status and validity of the registered importer.  After receiving confirmation from FEHD, TID will process the Export Licence application which will normally be ready for collection after two clear working days.  Export Licence applications submitted to TID on working day 1 will be ready for collection on working day 4.  Export Licences are issued free of charge.

7.Please refer to the guidance notes and the specimen copy of a completed Export Licence at Annex 3 and Annex 4 for reference.

8.Traders are requested to refer to Powdered Formula Licensing Circular No. 1/2013 for details of the export licensing arrangements for powdered formula which will continue to apply.

III. Important Notes and Warning

9.TID works closely with the Customs and Excise Department (C&ED) to enforce the export control licensing system for powdered formula in Hong Kong.  Authorised officers of C&ED may conduct inspections on exports of powdered formula from time to time. Suspected malpractices are subject to full investigation. Legal and/or administrative actions may be taken against any traders engaged in any malpractice.

10.Under the Import and Export Ordinance (Cap. 60), any person who exports powdered formula to all places outside Hong Kong without a valid licence, or fails to comply with any of the conditions of exemption, shall be guilty of an offence and shall be liable on conviction to a maximum fine of $500,000 and to imprisonment for 2 years.

11.Under the Import and Export Ordinance (Cap. 60), the owner of a vessel, aircraft or vehicle are obliged to receive from the exporter an export licence before accepting powdered formula for export.  Any person who contravenes this requirement shall be guilty of an offence and shall be liable on conviction to a fine of $500,000 and to imprisonment for 1 year.

12.In addition to prosecution, TID may take administrative actions against the persons who have breached the Conditions of Issue on the Export Licence.  Such administrative actions include but are not limited to, cancellation/suspension/revocation of a licence, refusal to issue a licence, debarment of all licensing facilities.

13.The data collected in the Export Licence applications will be kept in confidence.  TID reserves the right to disclose to other governmental departments, or to third parties either in Hong Kong or elsewhere, for the purposes of or in connection with the exercise or performance of any of the powers duties under the legislation; or the institution of criminal proceedings under the legislation.

IV. Enquiries

14.If there are any enquiries about the controls announced by Food and Health Bureau (FHB) on regulating the supply of powdered formula, please contact FHB at fhbenq@fhb.gov.hk.  Details of the control measures, including frequently asked questions, can be found at http://www.fhb.gov.hk/en/powderedformula (Note 3).

15.If there are any enquiries about the registration of Food Importer, please contact FEHD at the following:

Contact Point	Telephone No.
Food Importer/Distributor Registration and Import Licensing Office	2156 3017/2156 3034

16.If there are any enquiries about the export licensing arrangements, please contact TID at the following:

Contact Point	Telephone No.
Powdered Formula Licensing Unit	3403 6220
Miss Ada LEUNG	3403 6087

Yours faithfully,

(Donald CHUNG)
for Director-General of Trade and Industry