Strategic Trade Controls Circular No. 8/04

Import of Strategic Commodities
from the United Kingdom

In recognition of the autonomy of the Hong Kong Special Administrative Region (HKSAR) in customs, trade and economic matters and its well-established strategic trade control system, the United Kingdom (UK) created an Open General Licence⁽¹⁾ and an Open General Transhipment Licence for the HKSAR in January 1998 to allow the continued export and transhipment of a wide range of dual-use goods to the territory for civil end-use. This circular reminds traders of the licensing arrangement regarding import of strategic commodities from the UK.

How to Apply for Licences?

(A) Paper Applications

2. To complement the export arrangement of the UK, licence applicants are required to submit Importer/End-user Statement (SC002) as set out in Annex A (fillable pdf format) to support applications covering import of strategic commodities from the UK. In both the Importer/End-user Statement and the import licence application form TID 501 (Rev 2009) (fillable pdf format), the importer is required to :
   
   
   1. confirm the export channel of the goods from the UK by stating the name of the Export Licence (if it is a Open Licence) or the licence number (if it is an individual licence). For this purpose, the Hong Kong importer may seek clarification/confirmation with the concerned exporter in the UK. In case of doubt, the Department may request further documentary evidence to support this statement;
      
      
   2. whenever possible, provide the following information :
      
      
      1. name and full address of the end-user;
         
         
      2. the specific operations to be performed by the commodity in support of the end-user's activities (i.e. end-use) under application;
         
         
   3. confirm whether the goods are for civil or military use.
      
      
3. If the goods under application are not to be used by the importer but are for resale or transfer to other end-user(s) in Hong Kong, in addition to the statement at Annex A (fillable pdf format), End-user Statement (SC003) at Annex B (fillable pdf format) should also be completed by the end-user(s) identified during the licence application stage and be submitted to support the import licence application. If the goods are to be exported to an end-user in other destinations, further supporting documents/information, including a valid re-export authorization of the UK authorities, are required to support the subsequent export licence application.

(B) Electronic Applications

4. Companies can also apply import licence applications electronically. The E-Application for import licence can be made through companies' E-Accounts in the Strategic Commodities Control System Website ("SC Website") under the program of "Apply for Import Licence" provided at the E-Application menu (At http://www.stc.tid.gov.hk > Login Your E-Account > E-Applications > Import Licence Applications > Apply for Import Licence).
   
   
5. When compared, making E-Application for import of strategic commodities from the UK is certainly more convenient than filling in paper forms because -
   
   
   1. For the requirement of stating the applicable UK export authorization [details is set out in paragraph 2 (i)], E-Applicants need not to type them word by word. They can simply select the appropriate type of authorization (e.g. Open General Export Licence (HKSAR), Individual Export Licence etc.) from Part F "Export Authorisation of Foreign Exporting or Product's Originating Country (Place) / Import Authorisation of Destination" provided at the E-Application program.
      
      
   2. While both paper and E-Applicants are required to submit the Importer/End-user Statement (Annex A) (fillable pdf format) and/or End-user Statement (Annex B) (fillable pdf format), E-Applicants are allowed to do it more flexibly. They can scan, upload and submit the duly completed statement(s) together with the related electronic Import Application or submit it/them to TID by fax or in person. In this connection, applicants are reminded that the provision of scanned or faxed copy of the statement(s) will only serve to facilitate TID in processing their applications more expeditiously. It is however not equivalent to the original signed copy of the Importer/End-user Statement(s) which is required to be submitted to TID in all circumstances. Thus, after making the E-Application, applicants should make sure to deliver the original signed statement(s) to TID as soon as possible. TID will withhold approval and issuance of the import licence unless and until the original statement(s) is/are received.
      
      
   3. As for all E-Applications, upon successful submission, E-Applicant can follow the instructions easily to print out by themselves the receipts for future collection of the approved licences.
      
      
6. To use and submit E-Applications, companies are required to complete a special registration with TID in advance. Details of the special registration and other requirements for the use of E-Applications can be found in the specific sections in SC Website : http://www.stc.tid.gov.hk/english/circular_pub/files/open_e-account.htm.

Issuance of Licence

7. Depending on the technical capability of the goods and individual circumstances of the case, the Department may request further documents and information to support an application. To govern the end-use of the goods, licensing conditions may also be imposed. Such conditions may include, but not necessarily be limited to, the following :
   
   
   1. 'This licence only authorizes import of the goods for the stated end-use by the stated end-user. Any change of end-use or end-user, or further re-export, resale, transfer, or disposal of the goods requires prior notice to and approval from the Director-General of Trade and Industry';
      
      
   2. 'No resale, transfer, or disposal of the goods without prior notice to and approval from the Director-General of Trade and Industry'.

Warning

8. Traders are reminded that the Trade and Industry Department works closely with the Customs and Excise Department to ensure by means of consignment checks at pre-licensing stage or post-licensing stage that all applicants for strategic commodities licences comply with the licensing conditions and the provisions of the Import and Export Ordinance and its subsidiary Regulations. Suspected malpractices are subject to full investigations which may result in legal and/or administrative proceedings against the company concerned.

Enquiries

9. Should you have any enquiries, please contact us at tel. no. 2398 5575 or by electronic mail at stc@tid.gov.hk.

Strategic Trade Controls Branch
Trade and Industry Department