Hong Kong has a free trade policy, a characteristic that determines many foreign investors open trading businesses in the city. Before opening this type of company in Hong Kong, it is advisable to know the trading rules and regulations available here. The Government thoroughly controls the import and export of certain types of goods.
Importing controlled goods in Hong Kong must be done according to law and the provisions of the Customs and Excise Department. Our company registration experts in Hong Kong can offer you guidance if you intend to set up a trading company in the city-state.
Controlled goods in Hong Kong
Certain types of goods are under comprehensive control from the Hong Kong Customs and Excise Department. Trading companies in Hong Kong, carriers and logistics companies must obtain special licenses and registration for certain goods.
The Trade and Industry Department in Hong Kong, together with other Governmental agencies control the import and export of chemicals, pesticides, pharmaceutical products, medicines and dangerous drugs, ozone depleting substances waste and many other import/export commodities including items like rough diamonds, rice or wine.
A special category of goods are the strategic commodities:
– ammunition, arms and explosives;
– high precision machine tools;
– high performance computers;
– sophisticated communication systems;
– nuclear materials;
– high speed and high density integrated circuits.
Companies that want to engage in trade activities should know that these items are strictly controlled and an application form must be submitted with the Trade and Industry Department for their import and export as well as re-export and transshipment.
The import and export of strategic commodities in Hong Kong
The import and export of strategic items is controlled through the Import and Export Ordinance and the Import and Export (Strategic Commodities) Regulations. Companies in Hong Kong that commercialize controlled goods in Hong Kong must do so under a valid license issued by the Trade and Industry Department. Trading companies should ensure that these goods are suitable and that they are not destined to be sent in places where this would raise concerns.
Importing or exporting strategic goods without a license is an offence and companies or individuals who do so are liable to fine and imprisonment.
For more information about the trading regulations in Hong Kong or detailed steps for opening a trading company you can contact our company formation experts in Hong Kong.