The Trade and Industry Department is responsible for issuing licences covering the import and export of strategic commodities. The processing of a licence application involves a technical assessment process, which determines whether the product in question is controlled, for what reason it is controlled and what its technical capabilities are; and a risk assessment process which assesses the possible risk of diversion for illegitimate uses or proliferation activities. In some cases, inter-departmental consultation will be conducted to ensure that concerns of all relevant agencies in the Government are taken into account.

Licensing Control System

• An individual validated licence is required for the importation or exportation of commodities under control. 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. Such licensing requirement extends to all imports and exports irrespective of destination. Re-export and transhipment cargoes are treated as import and export and therefore are also subject to the licensing requirement. On the other hand, articles in transit, i.e. goods which remain at all times in or on the vessel or aircraft in or on which brought into Hong Kong throughout its passage through Hong Kong, are normally not required to be covered by a licence except for particularly sensitive items as listed in Schedule 2.

When applying for a licence for import or export of strategic commodities, the applicant should ensure that :

• all details required in the application form are correctly filled in; and

• the application is accompanied by technical specifications, data sheets or brochures/catalogues giving adequate technical details of the commodities. In the case of computers, telecommunications systems, numerical control products, completion of a technical questionnaire may also be required