In Hong Kong, the import and export of goods, including strategic commodities, are tightly regulated to ensure that sensitive materials do not contribute to the proliferation of weapons or violate international trade laws. Articles in transit, which pass through Hong Kong but are not intended to stay in the city, are generally not subject to licensing control. However, there are exceptions—certain goods specified in the Import and Export (Strategic Commodities) Regulations, particularly in Schedule 2, are subject to stringent control.
What Are Articles in Transit?
Articles in transit refer to goods that pass-through Hong Kong on their way to another destination. While most of these goods are not subject to import/export licensing requirements, certain strategic commodities are still regulated, particularly those that could be linked to weapons of mass destruction or military applications.
According to the regulations, articles in transit are not automatically exempt from licensing control. Specifically, Schedule 2 of the Import and Export (Strategic Commodities) Regulations lists items that require licenses even when in transit through Hong Kong. This includes:
- Munitions: Military weapons and related equipment.
- Nuclear-related materials: Materials, facilities, and equipment used in nuclear technology.
- Chemical and biological weapons: Materials and technologies that could contribute to the production of chemical or biological weapons.
These goods, even if simply transiting through Hong Kong, must be licensed for both their inbound and outbound journeys.
Licensing Requirements for Articles in Transit
While goods in transit are not generally subject to licensing control, strategic commodities that fall under Schedule 2 do require both an import license (for the inbound journey) and an export license (for the outbound journey). Businesses involved in the transit of such goods must comply with these licensing requirements to ensure they are legally allowed to pass through Hong Kong.
Here’s what businesses need to do when applying for the import and export licenses for goods in transit:
1. Complete the Application Form Accurately
Applicants must fill out the application form for both the import and export licenses accurately. It’s crucial that all details are correctly filled in, including:
- The description of the goods.
- The quantity and value of the goods.
- Any technical details that could help verify the nature of the goods, such as brochures or catalogues.
Providing adequate technical details of the commodities is essential for the Customs and Excise Department to assess whether the goods fall under the regulations of Schedule 2.
2. Declare the Goods Are in Transit
When applying for the import and export licenses, applicants must explicitly declare that the goods are in transit. The application form should also state the following:
- Vessel or Flight Number: Identify the transport vehicle, such as the name of the vessel or flight number, which will carry the goods during their journey through Hong Kong.
This information is essential for tracking the goods during their passage through Hong Kong, ensuring transparency and compliance with Hong Kong’s trade regulations.
3. Declare the End-User and End-Use
Another crucial aspect of the licensing application is the declaration of the end-user and the end-use of the goods. The application should clearly state:
- End-User: The company, organization, or individual who will ultimately receive the goods once they leave Hong Kong.
- End-Use: The specific use of the goods by the end-user, which could relate to military applications, nuclear technology, or other regulated uses.
This ensures that the goods are not diverted to unauthorized uses, particularly for the development or production of weapons of mass destruction.
Conditions Imposed on Exporters of Sensitive Goods
Since many of the goods that require licenses for transit through Hong Kong are sensitive, the Department of Customs and Excise may impose specific conditions to ensure compliance with international laws. One of the conditions often imposed is the requirement for a landing certificate or delivery verification certificate.
- The exporter must provide this certificate within 12 weeks of the shipment’s departure. This certificate proves that the goods were delivered to their intended destination as stated in the license application.
Failure to comply with this condition could result in the cancellation of the license, fines, or other penalties.
Why This Matters for Your Business
Understanding the licensing requirements for articles in transit is crucial for businesses dealing with sensitive goods. By ensuring compliance with the Import and Export (Strategic Commodities) Regulations, you can avoid potential legal issues and ensure that your goods move smoothly through Hong Kong without unnecessary delays.
Non-compliance with the licensing requirements could result in penalties, including the seizure of goods, delays in shipments, or even revocation of trade licenses. It is important to ensure that all applications are completed accurately and that all required documentation is submitted to the relevant authorities.
How We Can Help
At Premia TNC Trading Team, we assist businesses in obtaining import and export licenses for articles in transit, including strategic commodities. Our team provides expert guidance on the application process, ensuring that all documents are accurately filled out and submitted on time. We can help you navigate Hong Kong’s licensing requirements, allowing you to focus on running your business while we ensure that your goods comply with local regulations.
Contact us today for more information on how we can assist you with the licensing process for goods in transit through Hong Kong.