Hong Kong is a major global trade hub, known for its seamless import and export process. A crucial element of this process is the import and export declaration charge, which businesses must pay when goods are brought in or sent out of the region. Since August 1, 2018, the charge for each declaration has been capped at $200, providing businesses with more cost predictability compared to previous, uncapped fees. Let’s dive into the details of these changes and how they impact your business.
Current Import and Export Declaration Charges
As of August 1, 2018, the charge for declaring goods imported, exported, or re-exported to and from Hong Kong is capped at $200 per declaration. This cap is particularly beneficial for businesses dealing with high-volume or low-value shipments, significantly reducing costs that were once unpredictable due to unlimited charges based on goods’ value.
This fixed rate simplifies financial planning for businesses, helping to avoid surprises related to declaration fees.
Breakdown of Import Declaration Charges
The import declaration charges vary depending on whether the goods are food items or non-food items:
- Non-Food Items:
◦$0.2 for the first $46,000 of the goods’ value.
◦$0.125 for each additional $1,000 or part thereof, rounded to the nearest 10 cents.
- Food Items:
◦A flat rate of $0.2 per declaration, irrespective of the goods’ value.
Export Declaration Charges
For export declarations, the fee structure mirrors that of imports:
- $0.2 for the first $46,000 of the value of the goods.
- $0.125 for each additional $1,000 or part thereof, rounded to the nearest 10 cents.
Note: For exports of Hong Kong-manufactured clothing and footwear items, an additional Clothing Industry Training Levy of $0.3 per $1,000 of the goods’ value is required.
Late Lodgement Penalty
If declarations are not lodged within 14 days of importation or exportation, a penalty applies based on the value of the goods:
- For goods valued at $20,000 or less:
◦$20 if lodged within 1 month and 14 days.
◦$40 if lodged within 2 months and 14 days.
◦$100 if lodged after 2 months and 14 days.
- For goods valued over $20,000. Penalties are doubled:
◦$40 for 1 month and 14 days.
◦$80 for 2 months and 14 days.
◦$200 for more than 2 months and 14 days.
These penalties emphasize the importance of timely declaration submissions to avoid unnecessary costs and disruptions in your trade operations.
Benefits of the $200 Cap on Declaration Charges
The introduction of the $200 cap on declaration charges brings several benefits to businesses engaged in trade in Hong Kong:
- Cost Savings: The fixed charge ensures businesses can more easily manage import and export costs, especially for high-volume shipments.
- Predictability: The cap eliminates unexpected fees, helping businesses plan their financial commitments with confidence.
- Boost to Trade: Reduced declaration fees encourage more businesses to participate in international trade, knowing the process is more affordable.
Conclusion
The $200 cap on import and export declaration charges in Hong Kong is a welcome change for businesses involved in global trade. With predictable costs and clear rules for food and non-food items, companies can more easily manage their import/export fees. Additionally, the penalty structure serves as a reminder to submit declarations on time to avoid fines.
For businesses looking to optimize their trade operations, working with customs brokers or trade consultants can help streamline the declaration process and ensure full compliance with regulations. At Premia TNC Trading Team, we provide expert services to assist with import/export declarations, saving you time and helping you avoid unnecessary fees. Contact us today to learn how we can support your international trade efforts.