Other (Strategic 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 licensing system for strategic commodities is administered by the Trade and Industry Department. Certain strategic commodities are also subject to other controls administered by other government departments.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Import licences are required for strategic commodities, covering nuclear materials, facilities and equipment, body armours, carbon fibres and prepregs, high speed digital computers, microprocessors made from compound semiconductors, sophisticated communication systems, encryption equipment for information security, night vision image intensifier systems, chemical weapon precursors and manufacturing facilities, certain biological agents, plant pathogens and related manufacturing equipment, and facilities and articles for a use relating to nuclear, chemical or biological weapons.
Q3. The system applies to goods originating in and coming from which countries?
The import licensing system applies to goods originating in and coming from all places.
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 value of imports. Instead, it seeks to prevent the Hong Kong Special Administrative Region (HKSAR) from being used as a conduit for proliferation of weapons of mass destruction and to ensure HKSAR's continuous access to technology and high tech products.
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 import licensing system is a statutory requirement maintained under the Import and Export Ordinance (Cap. 60) and the Import and Export (Strategic Commodities) Regulations (Cap. 60G). 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)?
Licence applications should be lodged in advance of importation taking into account the processing time required by the Trade and Industry Department, which is normally 2.5 clear working days for import licence applications covering strategic commodities.
For strategic commodities imported without a licence owing to unforeseen circumstances, based on the merit of individual cases, consideration will be given to issuing an import licence retrospectively on an exceptional basis.
Q7.b. Can a licence be granted immediately on request?
Requests for expeditious processing of import licence application will be entertained when there are sufficient justifications.
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 as to the period of the year during which applications for licence and/or importation may be made.
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?
Trade and Industry Department is responsible for the processing and approval of import licence for strategic commodities.
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?
Applications for import of strategic commodities for legitimate use would normally be approved, unless there is doubt on the end-use of the goods or there is suspicion that the items imported may be re-exported illegally. Import licence applications may also be refused in cases where an international trade sanction on the exporting country/ place is in force. Reasons for refusal will be given to the applicant. The applicant has a right to appeal to the Chief Executive of the HKSAR by writing to the Chief Secretary for Administration. The right to appeal to the Chief Executive is statutorily provided.
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 firms, institutions and individuals in HKSAR are eligible to apply for import licences except under special circumstances where licensing facilities to them are denied owing to malpractice of the firm/institution/individual or some other special reasons.
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?
The import licence application form for strategic commodities can be viewed at https://www.stc.tid.gov.hk/english/download/files/il_paper_form.pdf. Catalogues/technical specifications of the products under application have to be lodged with the application for technical assessment purpose.
As the case warrants, additional supporting documents/information may be required to substantiate the case.
Q11. What documents are required upon actual importation?
The import licence is the only document required upon actual importation.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
No licensing fee or administrative charge is required.
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.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
An import licence covering strategic commodities is valid for six months from the date of issue. The validity cannot be extended under normal circumstances.
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. Importers should however return an unused licence to the Trade and Industry Department for cancellation.
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?
An import licence concerning strategic commodities is usually issued with the following conditions: "Re-export must be covered by an export licence issued by the Director-General of Trade and Industry" and "The goods covered by this licence are not to be used in relation to nuclear, biological or chemical weapons or missile capable of delivering these weapons".
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.