Dutiable commodities
- Document symbol
- G/LIC/N/3/HKG/27
- Original language
- English
- Published on
- 09/11/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The import of dutiable commodities (tobacco, liquors with an alcoholic strength of more than 30% by volume measured at temperature of 20°C, methyl alcohol and hydrocarbon oil) is controlled through (i) licensing of importers and (ii) issuing of removal permits. An importer has to be licensed with the Customs and Excise Department before he can apply for removal permit for import and removal of dutiable commodities.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Removal permit is issued to licensed importers by the Customs and Excise Department to control the import and movement of dutiable commodities (tobacco, liquors with an alcoholic strength of more than 30% by volume measured at temperature of 20°C, methly alcohol and hydrocarbon oil).
Q3. The system applies to goods originating in and coming from which countries?
The import licensing system applies to dutiable commodities coming from all places outside HKSAR.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The import licensing system is not intended to restrict the quantity or the value of import, but to protect and collect the excise duty imposed on the dutiable commodities.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The licence and permit requirement is statutory under the Dutiable Commodities Ordinance (Cap.109). Legislation does not leave designation of products to be subject to licensing to administrative discretion. Any changes to the import licensing system require legislative approval.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
For an importer to be licensed, the normal application processing time is not more than 12 working days, upon receipt of all necessary documents and information from the applicants. Application for removal permit from a licensed importer should be lodged in advance of importation taking into account the processing time. Normally, the issue of a removal permit to a licensed importer requires half a working day, upon receipt of all necessary documents and information from the applicants.
Q7.b. Can a licence be granted immediately on request?
A licence cannot be granted immediately on request because of the time required to process the application, including validation of the information provided by the applicant.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
There is no limitation of time during the year on the application for licence and/or importation.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
The import licences and removal permits are issued by the Customs and Excise Department only. It is not necessary for the applications to be passed on to other departments or authorities for note or approval.
All licence applications shall be submitted electronically to the Customs and Excise Department through the Dutiable Commodities System (DCS) at https://www.dcs.customs.gov.hk. Please visit the DCS website for further information.
For the removal permit application, applicants have to lodge the application using the recognized electronic service provided by any of the three electronic service providers specified under the Dutiable Commodities Ordinance. Please visit the following website or contact the electronic service providers for further information:
https://www.customs.gov.hk/en/trade_facilitation/dutiable/licence_permit/permits/index.html#3.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Application for an importer to be licensed will normally be approved provided that the necessary criteria are met. Reason for refusal will be given to the applicant. An applicant has the right to appeal to the Administrative Appeals Board against the decision of refusal to grant an import licence or a removal permit by the Commissioner of Customs and Excise.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
All persons, firms and institutions are eligible to apply to be licensed by the Customs and Excise Department.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
For an importer to be licensed, information including particulars of the applicant and the premises related to the application has to be provided. Checklists of supporting documents required for licence application are at https://www1.dcs.customs.gov.hk/dcsext/dcs/checkListLicApp. Please visit the DCS website (https://www.dcs.customs.gov.hk) for further information.
A removal permit is required upon actual importation of the dutiable commodities. For the application of a removal permit, commercial documents relating to the dutiable commodities may be required. Please visit the following website or contact the electronic service providers for further information:
https://www.customs.gov.hk/en/trade_facilitation/dutiable/licence_permit/permits/index.html#3.
Q11. What documents are required upon actual importation?
For the import of liquors, a certificate of age/origin may be required upon actual importation.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
The issue of a removal permit by the Customs and Excise Department is free of charge, but a service charge of permit application is required by the specified electronic service provider. The administrative charge for issue of each import licence is HK$1,320.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
No deposit or advance payment is required under normal circumstances.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The import licence for dutiable commodities is valid for one year which can be renewed upon application on a yearly basis.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for non-utilization.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
The licence is not transferable.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
The Commissioner of Customs and Excise may impose special conditions or restrictions in particular cases as he thinks fit.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures required prior to importation.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
The banking authorities automatically provide foreign exchange for goods to be imported. No licence is required as a condition to obtaining foreign exchange.