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24-hour hotline : 23 922 922
Ref : TRA CR 1015/35
1 November 2001
Strategic Trade Controls Circular No. 12/01
Import and Export Control of Strategic Commodities
Pre-licence Screening (PLIS) Service
Introduction
The Department has introduced a new licensing service to facilitate traders in making import and export licence applications to cover shipment of strategic commodities. This circular sets out the details of this new arrangement - Pre-licence Screening (PLIS) - and invites applications from eligible traders. PLIS will further streamline the existing licensing procedures and provide more expeditious licensing service to traders which have gone through PLIS.
What is Pre-licence Screening (PLIS)?
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Currently, licence applications are considered on the merits of individual cases. To streamline the licence application processes for traders, and to enable the Department to review applications submitted by an importer/exporter in a comprehensive and integrated manner, the Department has introduced a PLIS service through which traders may provide information about their anticipated business activities, trading patterns, potential orders, and anticipated import and export shipments to the Department for a one-time review so that when a licence application is submitted subsequently to cover actual shipment, the screening process can be simplified and the application processed more expeditiously.
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In applying for PLIS, applicants will be required to provide information on the types of products to be imported or exported, the suppliers and destinations of shipments, the names and addresses of the foreign exporters, consignees and end-users etc. for an overall assessment. Applicants may also be required to provide the relevant technical specifications, data sheets or brochures/catalogues for the products to be covered by PLIS. In assessing the eligibility of a trader for a PLIS application, the Department may analyse the applicant's past import and export transactions, inspect the import and export documents, and interview the responsible persons. An outline of the criteria for determining the applicant's eligibility for PLIS is set out in Appendix A which may provide useful reference for traders in making applications for the arrangement.
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One will note from Appendix A that a trader's commitment in implementing and maintaining an effective Internal Control Program (ICP) is an important factor for being eligible for PLIS. In this respect, the Department has issued a guidance note describing the major elements of an effective ICP to assist traders intending to put in place a ICP program. Copies of the guidance note (pdf format) can be obtained from the Customer Service Counter of the Strategic Trade Controls Branch at Room 516B, 5/F of Trade and Industry Department.
Processing of a request for PLIS
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The Department will review a PLIS application with reference to the criteria outlined in Appendix A. The Department reserves the right in respect of each application or group of applications generally, to limit the eligibility of parties/shipments for the arrangement, or to exclude specified items or licensing parties or specified countries/places to be covered by the PLIS application. The Department needs to be satisfied that the applicant could adhere to the conditions as set out in Appendix B before certifying it and its anticipated shipments as having gone through the screening process under the PLIS arrangement. For cases which have gone through PLIS, an advice will be issued by the Department to the effect that PLIS has been done on shipments of a broad variety of goods for import/export from/to specified/unspecified parties in specified countries/places for specified/unspecified endusers and enduses in a specified period, as well as the conditions attached to the PLIS case.
Licensing Facilitation in relation to PLIS
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Traders whose anticipated shipments have gone through PLIS can quote the case number of the relevant PLIS case in a related licence application and enjoy the following facilitation :
- there is no need to provide technical specifications or data sheets for the products covered by the application;
- the requirement for providing certain supporting documents such as end-user statement may be waived;
- except as warranted by the circumstances of individual cases, the application can be processed instantaneously.
How to apply for PLIS
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Applications for PLIS should be made in writing and forwarded together with the products' specifications, data sheets or brochures/catalogues and other information as may be required for the consideration of the case to the Customer Service Counter of Strategic Trade Controls Branch at Room 516B, 5/F of Trade and Industry Department. PLIS applications would be considered with reference to the criteria outlined in Appendix A. Where necessary, additional documents may be required from the applicant to facilitate the processing of the case. However, before making a PLIS applications, interested traders should approach the Strategic Trade Controls Branch of the Department for arranging a consultation session to assess their eligibility for the arrangement and clarify the details of the information which should be provided.
Important Note
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Traders are requested to note that PLIS is part of the licence application procedures. It is an offence if one makes or causes to be made any statement or furnishes or causes to be furnished any information which is false or misleading in a material particular or omits any material particular in relation to the PLIS application or the submission of licence application with reference to a PLIS case. Traders should also note that PLIS is not a substitution for strategic commodities licences. This means that, even though a particular shipment may have gone through PLIS, the relevant importer/exporter is still required to seek a licence from the Director-General of Trade and Industry (DGTI) to cover the import/export of that shipment as required under the Import and Export Ordinance (Cap. 60). It should also be noted that PLIS only facilitates processing of licence applications. There is no necessary implication that applications for licences covering shipments that have gone through PLIS will be granted as a matter of course.
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The Department works closely with the Customs and Excise Department to ensure that all applications for strategic commodities licences, as well as applications for PLIS, are properly made in accordance with the provisions and requirements of the Import and Export Ordinance (Cap. 60) and its subsidiary Regulations by means of consignment checks at either the pre-licence stage or post-licence stage.
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Traders should note that the certification by the Department of a PLIS case for specified shipments does not relieve them from the need to comply with any of the requirements under the Import and Export Ordinance (Cap. 60) and the subsidiary Regulations in respect of strategic commodities control. Breach of any of the provisions of the Import and Export Ordinance (Cap. 60) and its subsidiary Regulations is an offence. Any person who imports or exports any article specified in the Schedules to the Import and Export (Strategic Commodities) Regulations (Cap. 60 sub. leg.) not under and in accordance with a licence issued by DGTI commits an offence and is liable :
- on summary conviction to a fine of HK$500,000 and imprisonment for two years; and
- on conviction on indictment to an unlimited fine and imprisonment for seven years.
In addition to prosecution, the Department may impose administrative actions against such a person. Such administrative actions may involve but shall not necessarily be confined to, suspension of a licence, refusal to issue a licence, debarment of all licensing facilities, etc.
Enquiry
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Traders who are interested in the PLIS service are welcome to contact Miss Helen Cheng (at tel. no 2398 5639) for further information.
Strategic Trade Controls Branch
Trade and Industry Department |
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