Ref : TRA CR1015/9

Strategic Trade Control Circulars no. 2/01

Import and Export Control on Chemicals,
Biological Agents and Dual-Use Facilities and Equipment
Related to the Manufacture of Chemical and Biological Weapons

Under Import and Export Ordinance, Chapter 60, Laws of Hong Kong and its subsidiary legislation i.e. Import and Export (Strategic Commodities) Regulations, import and export of certain chemicals, biological agents as well as dual-use facilities and equipment related to the manufacture of chemical and biological weapons, and transit of articles which are for a use relating to chemical and biological weapons, must be under and in accordance with a licence issued by the Director-General of Trade and Industry. This circular sets out the details of the licensing requirements for the aforementioned controlled articles. The circular with the same title issued by the Trade and Industry Department in February 2000 is hereby superseded.

SCOPE OF CONTROL

2. Chemicals, biological agents and dual-use facilities and equipment related to the manufacture of chemical and biological weapons, which are subject to the restrictions laid down in the Import and Export Ordinance, are listed in Schedules 1, 2, 3 and 4 to the Import and Export (Strategic Commodities) Regulations. The scope encompasses the control lists of two international regimes, i.e. the Australia Group (AG) and the Chemical Weapons Convention (CWC).

3. Schedule 1 to the Regulations comprises two lists: the Munitions List and the Dual-use Goods List. For traders' ease of reference, below sets out the part of the Munitions List and the Dual-use Goods List which they should refer to with respect to the coverage of the controlled articles -

Chemicals ( see Appendix I ) (pdf format) -

Munitions List: ML7(b)
Dual-use Goods List: 1C350 and 1C450

Biological Agents (see Appendix II) (pdf format)-

Dual-use Goods List: 1C351, 1C352, 1C353 and 1C354

Dual-use Facilities and Equipment related to Chemical and Biological Weapons (see Appendix III) (pdf format)-

Dual-use Goods List: 2B350, 2B351 and 2B352

4. Schedule 2 to the Regulations extends controls on articles in transit which are for a use relating to, among others, chemical and biological weapons (see paragraphs 13 and 14 below). Schedule 3 brings END-USE under control for, among others, chemicals, biological agents and equipment for use in relation to the production, development or storage of chemical and biological weapons in so far that the importer or exporter knows that they will be used, or suspects that they might be used, for those purposes (see paragraph 15 below).The text of the Schedule 3 is at Appendix IV. Schedule 4, the text of which is reproduced in Appendix V, lists the activities under control in relation to articles specified in Schedule 3.

LICENSING CONTROL SYSTEM

5. Licence applications for import and export of chemicals, biological agents and dual-use facilities and equipment related to the manufacture of chemical and biological weapons as shown in Appendices I (pdf format), II and III should be made on Import Licence and Export Licence respectively. The forms are available for sale at:

Collection Office
Trade and Industry Department
Room 104, 1/F
Trade and Industry Department Tower
700 Nathan Road
Kowloon

Licence applications and the supporting documents as specified in the following paragraphs should be submitted to the Trade and Industry Department (Room 516B, 5/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon).

6. When applying for an import or export licence, applicant should ensure that all details required in the application form are correctly filled in and that the licence application is supported by the documents as required by the Director-General of Trade and Industry (see paragraphs 9 and 11 below). The Director-General of Trade and Industry reserves the right to request for additional information and further documentary proof to substantiate the licence applications. Application forms that are not properly completed or not accompanied by all the necessary documentation will be rejected.

7. Licence applications are processed by the Strategic Trade Controls Branch of the Trade and Industry Department. Other government departments with an interest may be consulted as and when necessary on a case-by-case basis. Under normal circumstances, applications properly received will be processed, approved and ready for collection within 2.5 clear working days after the date of submission of the licence application. Applicants should present valid collection slip to Room 516B, 5/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon for collection of the licence copies. Applicants should note that it may take a longer time to process if additional technical details and/or clarifications are required or if it is considered that inter-departmental review of the licence application is required. Applicants should therefore submit their applications well in advance in order that the licences can be issued before shipment.

A. Import Licensing Procedures

8. Applications for import licences for the scheduled chemicals, biological agents and dual-use facilities and equipment related to the manufacture of chemical and biological weapons must be completed in triplicate on (TID 501) (pdf format). Import licences approved are normally valid for six months and are not transferable.Specimen of a completed import licence application is at Appendix VI (pdf format).

9. Import licence applications must also be accompanied by the following documents:

Chemicals (Appendix I)

1. original Hong Kong Chemical Importer Statement (Appendix VII) (pdf format) duly completed by the local importer;

2. data sheet giving full composition, or technical details as appropriate, of the product under application; and

3. if applicable, original Chemical End-User Undertaking (Appendix VIII) (pdf format) and/ or Chemical Trader Undertaking (Appendix IX) (pdf format) duly completed by the local end-user/trader of the product under application.

If circumstances so warrant, the following documents may also be required -

4. original or certified true copy of the export permit issued by the originating countries of the goods giving expressive approval to the export concerned; and/or

5. documents in support of the business nature and production situation of the end-user.

Biological Agents (Appendix II) and Dual-use Facilities and Equipment related to the Manufacture of Chemical and Biological Weapons (Appendix III)

1. original End-User Statement duly completed by the end-user (Appendix X) (pdf format); and

2. data sheet giving full composition, or technical details as appropriate, of the product under application.

B. Export Licensing Procedures

10. Applications for export licences for the scheduled chemicals, biological agents and dual-use facilities and equipment related to the manufacture of chemical and biological weapons must be completed on (TID 502) (pdf format) in triplicate. Export licences approved are normally valid for three months and are not transferable. Specimen of a completed export licence application is at Appendix XI (pdf format).

11. Export licence applications should also be accompanied by the following documents:

Chemicals (Appendix I) (pdf format)

1. in case the consignee is also the end-user, original Chemical End-User Undertaking (Appendix XII) (pdf format) duly completed by the consignee cum end-user; in case the consignee is not the end-user, the original of both Chemical Trader Undertaking (Appendix IX) (pdf format) duly completed by the consignee and Chemical End-User Undertaking (Appendix XII) (pdf format) duly completed by the end-user; and

2. data sheet giving full composition, or technical details as appropriate, of the product under application.

If circumstances so warrant, the following documents may also be required -

3. an International Import Certificate issued by the relevant authorities of the importing countries; and/or

4. documents in support of the business nature and production situation of the end-user.

Biological Agents (Appendix II) and Dual-use Facilities and Equipment related to the Manufacture of Chemical and Biological Weapons (Appendix III)

1. original End-User Statement duly completed by the end-user (Appendix XIII) (pdf format); and

2. data sheet giving full composition, or technical details as appropriate, of the product under application.

LICENSING ARRANGEMENT FOR CHEMICALS CONTROLLED UNDER THE CHEMICAL WEAPONS CONVENTION

12. Certain chemicals listed in Appendix I (pdf format) are controlled under the Chemical Weapons Convention (CWC) in three different Schedules (i.e. 1, 2 and 3 as shown in Appendix I (pdf format)). In this regard, traders are required to note that in applying for import licences or export licences covering chemicals controlled under the CWC, the following conditions, which are laid down in the Convention, must be complied with in addition to the licensing control requirements set out in the above paragraphs -

1. Schedule 1 and Schedule 2 chemicals [except Schedule 2 chemicals which fulfill all conditions stated in (e) below] may only be imported from/exported to a CWC State Party and only for purposes permitted by the Convention including, for example, research, medical or pharmaceutical uses;

2. Re-export of Schedule 1 chemicals to a third country is prohibited. ( Please be informed that the list of the State Parties (as at Appendix XIV)will change as and when there are new members joining the Chemical Weapons Convention. You are advised to visit the website of the Organisation for the Prohibition of Chemical Weapons (OPCW) at http://www.opcw.org for the most updated list of the State Parties).

3. Properly completed applications for the import or export of Schedule 1 chemicals [except Saxitoxin as mentioned in (d) below] must be received by the Trade and Industry Department not less than 45 days before the shipment date;

4. However, the 45-day time frame set out in (c) above does not apply to import and export of Saxitoxin (CAS Registry no. 35523-89-8) of quantities of 5 milligrams or less and which is for medical/diagnosis purposes. Instead, traders can submit licence application under the normal time frame, but they are required to notify the Trade and Industry Department of the details of the actual arrival/departure date of such shipments. In this regard, traders have to submit an undertaking (a specimen at Appendix XV (pdf format)) on notifying the Trade and Industry Department of details of the exports/imports within one clear working day after the actual arrival/departure date of the shipment concerned. Notification of the details of the exports/imports should be made by lodging to the Trade and Industry Department a duly completed notification form (a specimen at Appendix XVI (pdf format)) together with copy of documents showing details on the actual importation or exportation of the consignment concerned. The documents may include bill of lading showing the date of shipment, the consignee, the product description and the quantity or other relevant documents such as invoice or packing list which contain the above information;

5. Notwithstanding the restriction as set out in (a) above, Schedule 2 chemicals can be imported from or exported to States not party to the CWC provided that the products concerned -

1. contain 1% or less of a Schedule 2A or 2A* chemical;

2. contain 10% or less of a Schedule 2B chemical; and

3. are identified as consumer goods packaged for retail sale for personal use or packaged for individual use;

6. Applications to export Schedule 2 [see (e) above] and Schedule 3 chemicals to a country that is not a party to the CWC need to be accompanied by written assurances and end-use information issued by the responsible authorities in the receiving country, stating :

1. that the chemicals will only be used for purposes not prohibited by the CWC;

2. that they will not be re-transferred;

3. the types and quantities of chemicals involved;

4. their end-use(s); and

5. the name(s) and address(es) of the end-user(s).

ARTICLES IN TRANSIT

13. When applying for licences for goods in transit (see paragraph 4 above), apart from adhering to the requirements as stated in above paragraphs, applicants should also-

1. submit both the import and export licence applications together to the Trade and Industry Department; and

2. declare on the licence applications that the goods are in transit, and state the name of the vessel or flight number.

14. As most chemicals, biological agents and dual-use facilities and equipment related to the manufacture of chemical and biological weapons are normally sensitive goods, a condition of issue of the export licence that the exporter must produce a landing certificate or delivery verification certificate in respect of the goods detailed in the licence to the Director-General of Trade and Industry within 12 weeks after the date of shipment may also be imposed when the export licence is approved.

END-USE CONTROLS

15. The Import and Export (Strategic Commodities) Regulations also impose licensing requirement on articles specified in Schedule 3 to the Regulations,(Appendix IV refers) or any technological document containing information relating to any such article:

1. if the importer/exporter knows that the article or document is intended or likely to be used in any activity related to chemical or biological weapons as specified in Schedule 4 to the Regulations(Appendix V refers); or

2. if there are reasonable grounds for he or she to believe that the article or document may be used in any activity specified in Schedule 4.

WARNING

16. Section 6A of the Import and Export Ordinance stipulates that no person shall import or export any article specified in the Schedules to the Import and Export (Strategic Commodities) Regulations except under and in accordance with a licence issued by the Director-General of Trade and Industry. Any person who contravenes this provision shall be guilty of an offence and is liable:

1. on summary conviction to a fine of HK$500,000 and to imprisonment for two years; and

2. on conviction on indictment to an unlimited fine and to imprisonment for seven years

In addition to prosecution, the Trade and Industry Department may impose administrative actions against these persons. 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.

17. Importers, exporters, manufacturers, shipping companies, airline companies and freight forwarders are reminded that the Department works closely with the Customs and Excise Department to ensure that all licence applicants comply with the provisions of the Import and Export Ordinance and its subsidiary Regulations by means of consignment checks at pre-licensing or post-licensing stage. Officers of the Customs and Excise Department are empowered by law to enter the premises of the companies concerned, and to conduct inspections at any reasonable time. It is the trade's responsibility to produce documentation related to the goods in question to officers of the Customs and Excise Department for inspection. The Director-General of Trade and Industry may impose administrative actions, as mentioned in paragraph 16 above, against companies that fail to comply with the consignment check requirement.

ENQUIRIES

18. The following officers will be happy to respond to any inquiries concerning the licensing procedures governing the import and export of chemicals, biological agents and dual-use facilities and equipment related to the manufacture of chemical and biological weapons -

1. Ms Connie Y. F. HO
   Licensing Officer
   Tel No. 2398 5625

2. Miss Annie LOONG
   Assistant Trade Officer
   Tel No. 2398 5670

19. If traders have doubts as to whether the goods they intend to import or export are classified as chemicals, biological agents and dual-use facilities and equipment related to the manufacture of chemical and biological weapons as mentioned in paragraphs 2 to 4 above, the Trade and Industry Department provides a classification service for this purpose. Traders may submit the technical information to the Classification Section of the Strategic Trade Controls Branch at Room 516A, 5/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon. Officers of the Classification Section can also be reached by telephone no. 2398 5587 and fax no. 2396 3070.

Strategic Trade Controls Branch
Trade and Industry Department

Distribution

Shipping and Airlines companies

Trade Commissions and Chambers of Commerce
Trade and Industry Associations relating to trading and manufacturing of chemicals, biological agents and dual-use facilities and equipment related to the manufacture of chemical and biological weapons

Importers and Exporters of chemicals, biological agents and dual-use facilities and equipment related to the manufacture of chemical and biological weapons