Conditions for Pre-licence Screening (PLIS) Application
and Use of the Related Facilitation

1. Pre-licence Screening (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 application for PLIS or the submission of licence application with reference to a PLIS case.

2. A certification by the Trade and Industry Department (the Department) that the trader has gone through PLIS in respect of specified shipment does not exempt him from the need to submit licence applications to cover the import and export of the strategic commodities as required under Section 6A of the Import and Export Ordinance (Cap. 60). Importers/exporters should submit application for a strategic commodities licence before effecting the related import or export shipment. Also, PLIS only facilitates the processing of the related licence application(s). There is no necessary implication that applications for licences covering shipments that have gone through PLIS would be granted as a matter of course.

3. All licence applications submitted in relation to a PLIS case should be quoted with the PLIS case number assigned by the Department (case number). It is the responsibility of the trader concerned to ensure that licence applications quoted with a case number cover the same goods, foreign exporters/consignees, end-users, foreign exporting countries/destinations as approved in or part thereof the relevant PLIS case. In this connection, a declaration to the effect that "I declare that the consignment under application is the consignment or part thereof screened by the Trade and Industry Department under pre-licence screening case number _____________________." should be made in all related licence applications. Any misuse of the PLIS service, or misrepresentation of information on the related licence application constitutes a serious offence under the Import and Export Ordinance (Cap. 60), and may render the applicant to legal and/or administrative action, and suspension/revocation of licensing facilities and the facilitation granted in relation to the PLIS case.

4. All licence applications submitted in relation to a PLIS case should cover goods imported/exported/transferred for civilian uses only. The shipment/goods should not be of a use in relation to nuclear, biological or chemical weapons or missile capable of delivering these weapons.

5. Applicants for PLIS and holders of PLIS cases should take all precautionary measures to ensure that the anticipated shipments in the PLIS cases are in full compliance with the export/re-export control regulations and arrangement of supplier/originating countries of the goods. These measures may involve, but shall not necessarily be confined to, screening against persons and destinations denied by the supplier/originating countries for export as set out in the relevant export regulations of those governments. In case of discovery of contravention to such export regulations, either arising from misrepresentation of information by the applicant when the PLIS application was made, or subsequent changes of export control regulations and requirements by the supplier/originating countries, or other circumstances, the holder of the PLIS case concerned must immediately inform the Department in writing of the details of the findings. The same precautionary measures should also be taken in submitting licence applications under the facilitative arrangement covered by PLIS cases. The holder of a PLIS case should not make an application under the facilitative arrangement to cover a shipment which he knows is not consistent with the export control regulations of the supplier/originating countries or he knows is prohibited under such export control regulations. The Department reserves the right to refuse processing of licence applications submitted under the facilitative arrangement covered by PLIS cases even though the shipments concerned have gone through the screening under the PLIS arrangement.

6. In making use of the facilitation granted in relation to a PLIS case, the parties concerned would be required to submit to the Department post shipment reports in the specified format and in such regular intervals as specified by the Director-General of Trade and Industry (DGTI). Besides, records of all shipments made under a PLIS case should be maintained for no less than two years after the date of import/export, and made available for inspection by officers of the Customs and Excise Department. The records should include technical specifications, data sheets or brochures/catalogues of the products, full description of each item imported/exported, the quantities shipped, copies of the relevant import/export licences, dates of the transactions/import/export, the name and address of the foreign exporters/consignees/end-users, enduser statements and any other additional information as may be requested by DGTI. DGTI may require the holder of a PLIS case to provide additional reports on shipments related to the PLIS case where necessary.

7. Holders of PLIS cases should comply with the relevant provisions of the Import and Export Ordinance (Cap. 60) and its subsidiary Regulations. They should note that the certification by the Department that specified shipments have gone through PLIS does not relieve them from the need to comply with the above legislation. Breach of any of the provisions of the Import and Export Ordinance and its subsidiary Regulations is an offence.

8. The Department may, together with the Customs and Excise Department, conduct system reviews on holders of PLIS cases. The review will involve interviews with company officers, inspection of records and the companies' internal operations etc. If there is reason for the Department or the Customs and Excise Department to believe that a holder of a PLIS case has improperly made use of the PLIS case or the related arrangement, or has failed to comply with the conditions applicable to the case, additional review on the holder may also be conducted.
   

9. DGTI may take administrative actions against the holder of a PLIS case who contravenes or fails to comply with any of the conditions imposed in relation to a PLIS case, independent and irrespective of any prosecution actions which may be instituted against him. Such administrative actions may involve but shall not necessarily be confined to :
   

   - suspension of the facilitative arrangement provided in relation to the PLIS case, in whole or in part, or imposition of other restrictions;
   
   - revocation of facilitation granted in relation to the PLIS case in whole or in part;
   
   - suspension, revocation or cancellation of licences granted in relation to the PLIS case; and/or
   
   - refusal to process other applications submitted in relation to the PLIS case.

10. DGTI may, whether at the time of processing an application for PLIS or subsequently, impose such conditions as he thinks fit, and the holder of the PLIS case concerned shall comply with any condition imposed. The conditions may involve, but shall not necessarily be confined to, restrictions on eligible items, countries/places, end-uses, end-users, or that certain sales or transfers of items covered by the case and related licence applications are subject to prior notification to and approval from DGTI.
    
    

11. DGTI may suspend, revoke or cancel a PLIS case and its related licences at any time he deems appropriate, without regard to any contracts or agreements that may have been made.

12. A request for additions in respect of products, consignees/ foreign exporters/endusers, foreign exporting countries/places, and destinations covered by a PLIS case should be made in writing to the Department. Only with written approval from DGTI can the PLIS case be regarded as revised and licence applications for the consignments covered by the PLIS case be submitted accordingly.

13. Prior approval from DGTI for removing any products, consignees/foreign exporters/endusers, foreign exporting countries/places and destinations from the scope of a PLIS case is not required but the holder should notify the Department of such deletions in writing [as soon as practicable].

14. All or any of the information provided in a PLIS application may be disclosed by the Department to third parties either in Hong Kong or elsewhere provided that such disclosure facilitates the consideration or processing of the application, facilitates enforcement by enforcement agencies, is in the interests of Hong Kong, is authorized by law, or explicit consent to such disclosure has been given by the applicant or relevant parties.

15. Any licensing facilitation to be granted in relation to a PLIS case is given on the merits of individual cases and should not in any way be quoted as a precedent for similar treatment for other cases. The scope of a PLIS case, the conditions that it is subject to, and the related facilitation, is subject to modification, revision and revocation at any time as warranted by changes in circumstances. DGTI reserves the right to change the scope of a PLIS case, suspend or cancel it if he has doubt on the reliability and eligibility of certain foreign exporter, consignee, end-user, destination, or products covered by the case.

16. If the holder of a PLIS case proposes to extend the related licensing facilitation to his business partners which handle import and export of the goods supplied by him, he should submit the request in writing to the Department by producing evidence of an established, ongoing business relationship with these business partners, information about the internal control system maintained by these business partners and their compliance records in respect of strategic commodities control. Only with written approval by DGTI of the request can the holder of the PLIS case advise and allow his business partners to submit licence applications under the facilitative arrangement covered by the PLIS case concerned.