Import Licensing Notification Portal

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.

Import licences/certificates are required for import of ozone depleting substances. These import measures are applied for environmental protection reason. The licensing system for the above products is primarily operated by the Trade and Industry Department. Ozone depleting substances import licences are issued by the Trade and Industry Department under delegation from the Environmental Protection Department.

Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.

Import licensing/certification system for ozone-depleting substances is intended to protect the environment.

Q3. The system applies to goods originating in and coming from which countries?

For ozone depleting substances, the imports of ozone depleting substances are banned unless such imports are allowed under the Montreal Protocol on Substances that Deplete the Ozone Layer.

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 principal objective of the import licensing/certification system is not to restrict the quantity or value of imports, but for environmental protection. A quantitative limit is imposed for imports of some ozone depleting substances to ensure that the amount of ozone depleting substances retained for local consumption does not exceed levels agreed under the Montreal Protocol.

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/certification system for ozone-depleting substances is a statutory requirement maintained under the Ozone Layer Protection Ordinance (Cap. 403). Legislation does not leave designation of product to be subject to licensing/certification to administrative discretion. Any changes to the import licensing/certification system require legislative approval.

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):

Having all other ozone depleting substances (except for essential or critical uses) fully banned, only the importation of hydrochlorofluorocarbons (HCFCs) for local consumption is subject to quantitative restriction

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?

Under the current quota allocation system, annual quotas are allocated on a pro rata basis among the existing registered importers, based on their 12-month performance (from November of the preceding year to October of the current year) as normal quotas. If there are any unallocated normal quotas and/or any quantities of HCFCs that are exported from HKSAR to other places in the control period, the amount will be allocated to the free quotas which are open to all applicants on a first-come-first-served basis. Before the end of the control period, letters are sent to existing registered importers informing them the normal quotas allocation for the subsequent control year. Within the control period, all registered importers could also apply for free quotas. However, for the registered importers who have been allocated normal quotas, they cannot apply for free quota until their normal quotas have been exhausted. A common ceiling of a certain amount of quota is assigned to each individual importer applying for free quotas. Information concerning the quota allocation and licensing systems is available to the general public through a website: http://www.epd.gov.hk/epd/english/environmentinhk/air/ozone_layer_protection/wn6_info.html. Information on the total amount of quota under the quota allocation system is also available upon request.

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?

The size of quotas, which is calculated on yearly basis, is determined according to the requirements of the Montreal Protocol. Licences are issued to registered companies on individual consignment basis. According to the HCFCs accelerated phase-out schedule of the Montreal Protocol decided in the Meeting of the Parties held in September 2007, the annual quota for importing HCFCs for consumption in Hong Kong from 2020 to 2029 would be further reduced to 0.5% of the baseline level of 1989 for servicing of refrigeration and air-conditioning equipment.

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.)

The Government will closely monitor the utilization of quotas and licences. Importers are required to notify the Trade and Industry Department of details of the import within 14 days after importation. Unused allocations will not be carried forward to the quotas for the succeeding control period because the maximum level for each control period i.e. per calendar year is fixed in accordance with the requirements of the Montreal Protocol.

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?

Submission of applications for licences may be made at any time. However, applications for imports of HCFCs for local consumption will only be considered if the applicants have enough valid quotas or sufficient quotas could be allocated to the applicants for the relevant control period. Methyl bromide could be imported with a valid licence provided that importers have obtained a valid Pesticides Permit from the Agriculture, Fisheries and Conservation Department and the import of methyl bromide is restricted to quarantine and pre-shipment applications.

Q6.V. What are the minimum and maximum lengths of time for processing applications?

Import licences are normally issued in two clear working days.

Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?

The control period for ozone depleting substances is on a calendar year basis. To facilitate imports at the beginning of the succeeding control period, the Trade and Industry Department will provide licensing service about one week prior to the expiry of the current control period.

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?

Importers only need to approach the Trade and Industry Department for registration and application and issue of licences.

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?

Normal quotas are allocated to registered importers with regard to their performance in the previous control period. Free quotas for HCFCs, if available, are allocated throughout the control period to all eligible applicants (see paragraph 1.2.9 below), including new importers, on a first-come-first-served basis. A common ceiling of a certain amount of quota is assigned to each individual importer applying for free quota. Registered importers can also acquire the quotas through quota transfer from the existing normal quota holders.

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?

The questions are not applicable as there is no bilateral quotas or export restraint arrangements in place.

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?

The questions are not applicable as there is no bilateral quotas or export restraint arrangements in place.

Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?

In the case of import for re-export where quotas will not be debited against the import quota, combined "import and export licence" or separate licences where applicable, will be issued on condition that the goods will have to be exported in full within the validity period of the licences.

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)?

Application for import licences/certificates should be lodged in advance of importation taking into account the processing time. The processing time is two clear working days for ozone depleting substances. The processing time is two clear working days for ozone depleting substances.

Q7.b. Can a licence be granted immediately on request?

In exceptional cases, a licence can be granted immediately on request.

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 are no limitations as to the period of the year during which application for licence/certificate 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?

The Trade and Industry Department is the sole administrative organ for the processing and approval of import licences/certificates.

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?

Under normal circumstances, an application for an import licence/certificate is usually granted if it meets the ordinary criteria. Reasons for refusal will be given to the applicant. The Chief Executive may confirm, vary or reverse the decision of the Director-General of Trade and Industry. The right to appeal to the Chief Executive is provided in relevant statutes. For ozone depleting substances, applicants may appeal to the Administrative Appeals Board against decision of refusal to grant a licence by the Director of Environmental Protection.

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?

For ozone depleting substances, a company is required to register with the Trade and Industry Department before it can apply for an import licence. Registration is open to all companies. Registration is open to all companies on payment of a fee of HK$2,430 (valid for two calendar years). A list of registered importers is available upon request.

Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?

In general, information to be supplied includes particulars of the importer, of the importation and of the products to be imported.

https://www.tid.gov.hk/english/aboutus/form/sampleform/forms_maincontent.html. Online applications for Import Licence for Ozone Depleting Substances are also available through the Trade and Industry Department's website at https://www.tid.gov.hk/english/aboutus/form/publicform/nontextiles/form_nontextiles.html and Trade Single Window at https://www.tradesinglewindow.hk/portal/en/index.html respectively.

Q11. What documents are required upon actual importation?

The import licence is the only document required on actual importation.

Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?

For ozone depleting substances, a fee of HK$815 and HK$1,210 is charged on the issue of an import licence and a combined "import and export licence" respectively. The price of ozone depleting substances import licence forms and combined "import and export licence" forms are HK$28 per pad (containing 5 sets) and HK$34 per pad (containing five sets) respectively.

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.

Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?

Unless otherwise stated, an import licence is valid for 60 days for ozone depleting substances. The period of validity can be extended by the Director General of Trade and Industry depending on the merits of individual requests.

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 cancel or amend the licences/certificates.

Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?

The licence/certificate 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 licensing/certification conditions are printed on the front or back of the import licence/certificate.

Samples of the Import Licence Form and Combined "Import and Export Licence" Form for ozone depleting substances can be downloaded at:

https://www.tid.gov.hk/english/aboutus/form/sampleform/forms_maincontent.html.

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.

Ozone depleting substances

Outline of Systems

Purposes and Coverage of Licensing