Dual-use Items controlled by the Wassenaar Arrangement

Applications covering import of most dual-use items are normally approved unless there is suspicion about the legitimacy of end-use or concern that the items may be re-exported illegally. However, for applications covering sensitive commodities, the licence applicant and the end-user will be required to provide information on the detailed end-use of the goods. An end-user statement is needed to support the application. Export applications covering goods returning to the original supplier countries (places) which are members of the Wassenaar Arrangement can be approved more readily.

In general, an export licence application can be approved if the application is supported by a valid export licence issued by the member countries (places) of the Wassenaar Arrangement which indicates clearly that export to the destination is permitted. Provision of the following information will facilitate the consideration of the case :

• name and full address of the end-user;
  
  
• the specific functions or usage of the commodity in relation to the consignee/end-users' business or activities (i.e. end-use) under application; and
  
  
• confirmation of whether the goods are for civil or military use.

A valid supporting export licence from member countries (places) of the Wassenaar Arrangement should take one of the following forms :

(a) the original of a valid export licence, issued by the licensing authorities of that country (place); or

(b) a certified true copy of (a) above; or

(c) a copy of the original export licence sent to the Trade and Industry Department directly via facsimile by the licensing authorities of the country (place) concerned.

The Department may approve an export licence application supported by a photocopy of the valid export licence subject to an undertaking (pdf fillable format) completed by the applicant to submit supporting export licence at (a), (b) or (c) above within 30 days from the date of signing the undertaking.

For licence applications covering exports to non-member countries (places) of the Wassenaar Arrangement and which are not supported by any valid export licence issued by the member countries (places), the Department may request further documents to support an application. Documents so required may include the original of :

• export approval issued by the originating / foreign exporting country (place) giving expressive approval to the export concerned; or
  
  
• a completed HKF5 form (pdf fillable format) and
  
  
  • an end-user statement (pdf fillable format); or
    
    
  • a completed Importer Statement on End-User and End-Use issued by the Ministry of Commerce (MOFCOM) in Beijing, the Mainland of China for certain cases involving exports to the Mainland of China; or
    
    
  • an International Import Certificate issued by the relevant authorities of the importing countries (places), for some exports to countries (places) other than the Mainland.

Depending on the technical capability of the goods, the destination and the nature of the end-user's business/activities, the Department may also request for additional supporting documents.

For details, please refer to the relevant circular.

Nuclear and Missile Related Goods and Technology

Licence applications for the import/export of materials and goods that are capable of being used to manufacture nuclear weapons or for missile technology production are assessed rigorously in accordance with stringent criteria. In addition to the provision of the necessary technical information, a licence application should also be accompanied by :

• an International Import Certificate or certificate or undertaking/end-user certificate, in the case of a purchase by a foreign consignee, confirming that the goods are for their own civil use or for resale to bona fide civil customers in the same country (place); and
  
  
• a copy of the contract in the case of a purchase by a Government agency.
  

All these applications are subject to inter-departmental reviews, as appropriate. For details, please refer to the relevant circular.

Chemical Weapon Precursors, Biological Agents and Production Equipment

Licence applications for the import/export of chemical, biological weapons, their related production equipment, and certain chemicals and biological agents which are capable of being used in the manufacture of chemical or biological weapons are assessed in accordance with stringent criteria. The policy of the Government is to control any import/export of these products or their related equipment and to ensure that there is sufficient assurance that the import/export would not be used in the manufacture of chemical or biological weapons and that the possibility of the export being diverted to unknown uses is sufficiently safeguarded. In this connection, all such applications should be accompanied by the necessary supporting technical documentation and an end-user certificate duly completed by the end-user. Additional information may also be required on the consignee/end-user by completing a HKF5 Form (pdf fillable format) . Applications involving chemical weapons precursors have to be accompanied by :

• for Import Licence
  
  
  • material safety data sheets giving full composition details of the products under application;
    
    
  • if applicable, original Chemical End-User Undertaking (pdf fillable format) and/or Chemical Trader Undertaking (pdf fillable format) duly completed by the local end-user/trader; and
    
    
  • as the case warrants, original or certified true copy of the export permit issued by the originating countries (places) of the goods giving expressive approval of the export concerned.
    
    
• for Export Licence
  
  
  • in case the consignee is also the end-user, the original of a "Chemical End-user Undertaking" (pdf fillable format) duly completed by the consignee cum end-user; in case the consignee is not the end-user, both the original of a "Chemical Trader Undertaking" (pdf fillable format) duly completed by the consignee and a "Chemical End-user Undertaking" (pdf fillable format) duly completed by the end-user;
    
    
  • material safety data sheets giving full composition details of the products under application; and
    
    
  • as the case warrants, an International Import Certificate issued by the relevant authorities of the importing countries.

Licence applications covering the import/export of chemicals, biological agents and pathogens may be subject to inter-departmental review. Where inter-departmental review is required, it may take a longer processing time, particularly so if additional technical details and/or clarifications are needed.
For details, please refer to the relevant circular.

Arms and Ammunition

Trading of munitions items in Hong Kong is subject to very stringent control by both the Trade and Industry Department under the Import and Export Ordinance and the (Strategic Commodities) Regulations (Cap. 60) and the Hong Kong Police Force under the Firearms and Ammunition Ordinance, (Cap. 238) of the Laws of Hong Kong.

The Munitions List of Schedule 1 to the Import and Export (Strategic Commodities) Regulations sets out the munitions items which are subject to import/export licensing control administered by the Trade and Industry Department.

As a general rule, importation of firearms and ammunition into Hong Kong will be approved only if the end-users are either the security or disciplined forces of the Government or persons approved by the Commissioner of Police to possess or to deal with trade of firearms and ammunitions.

An export licence application covering arms and ammunition will be approved only if the supporting information and documentation substantiates that the transfer is for legitimate purposes.

In addition to basic application particulars, applicants are required to produce the following documents :

• technical details of the product;
  
• the original End-user Statement completed by the end-user;
  
• a copy of an export/re-export authorization issued by the supplier/originating country/place of the goods and/or a copy of an International Import Certificate or import authorization issued by the importing/destination country/place giving explicit approval to the import/export/re-export concerned.

• a copy of the valid business registration certificate of the applicant and/or local end-user;
  
• documents in support of the business nature and production situation of the end-user (e.g. HKF5 Form );
  
• if the licence applications cover arms and ammunition which are under the control of the Firearms and Ammunition Ordinance, Chapter 238, Laws of Hong Kong, the applicant should attach a full copy of his valid licence for possession/dealer's licence issued to him by the Hong Kong Police Force with its reference number stated clearly on the import/export licence application;
  
• for applications covering arms and ammunition for export or re-export to other destination, a copy of the licences or documents indicating that the ultimate consignee and/or end-users are authorized possessors or dealers of arms and ammunition in the final destination country/place should be attached.
  

For details , please refer to the relevant circular.


Temporary Exports of Strategic Commodities

Licence applications covering exports of strategic commodities to any country (place) on a temporary basis (e.g. participation in an exhibition after which the goods will be returned to Hong Kong) are processed by Trade and Industry Department under special licensing procedures for temporary exports. Such licence application must be supported by documentary evidence certifying that the goods are for export to the destinating country (place) on a temporary basis. Furthermore, as a condition of issue of the temporary export licence, the licensee is required to declare and undertake to :

• bring the same goods back to Hong Kong immediately after use; and
  
  
• present the goods and the licence to officers of the Hong Kong Customs and Excise Department at Customs Control Points for examination and endorsement, both at the time of departure of the goods to the country/ place and upon their return to Hong Kong.
  For details, please refer to the relevant circular.

Temporary Imports of Strategic Commodities

To facilitate the trade to import strategic commodities from any country(place) on a temporary basis (e.g. for repair in Hong Kong), licence applications covering the subsequent return of the goods to the originating country(place) can also be approved by the Trade and Industry Department under special licensing procedures. Physical examination of the goods at the time of importation (e.g. for repair in Hong Kong) and at the time of return (e.g. after repair) to the originating country(place) is also one of the conditions which the licensee must comply with.
For details, please refer to the relevant circular.

Licensing Arrangement for Articles in Transit

Articles in transit are normally not subject to import and export licensing control except those specified in Schedule 2 to the Import and Export (Strategic Commodities) Regulations. Schedule 2 covers specific munitions, nuclear-related materials facilities and equipment, encryption equipment, and their related documents containing technological information and articles for a use relating to nuclear, chemical or biological weapons.

Goods transiting through Hong Kong requires an import licence (in respect of the inbound journey of the consignment entering Hong Kong) and an export licence (in respect of the outbound journey leaving Hong Kong).

When applying for licences for goods in transit, applicants should :

• ensure that all details required in the application form are correctly filled in and that the application is accompanied by brochures/catalogues giving adequate technical details of the commodities;
  
  
• declare on the licence application that the goods are in transit, and state the name of the vessel or flight number; and
  
  
• declare the end-user and end-use of the goods on the application.

As the goods under exportation are normally sensitive goods, the Department may also impose licensing condition that, the exporter must produce a landing certificate or delivery verification certificate in respect of the goods to the Director-General within 12 weeks after the date of shipment.

Air Transhipment Cargo Exemption Scheme for Specified Strategic Commodities (SCTREX)

To give due facilitation to the air cargo trade in strategic commodities, an exemption scheme is implemented under the Air Cargo Transhipment (Facilitation) Ordinance to provide for exemption from individual licensing control for the less sensitive strategic commodities on air transhipment mode, which are covered by a through air waybill issued at the original port of loading indicating Hong Kong as a transhipment port, and which remain within the confines of the Airport restricted area except for onward flights.

The product scope would include all the less sensitive strategic commodities detailed in Schedule 1 to the Import and Export (Strategic Commodities) Regulations, except certain sensitive items as listed in Schedule 2 to the same Regulations, such as specified munitions, nuclear related materials, encryption equipment and articles for use relating to nuclear, chemical or biological weapons which currently are already subject to licensing control even if they are in transit through Hong Kong.

Under the Scheme, airlines and cargo operators who are able to meet specified registration criteria are eligible for registration, and, once registered, the exemption to apply licence in respect of transshipment of specified strategic commodities. The registrants are bound by the registration conditions and subject to post-shipment verification. The initiative balances the needs to give due facilitation to the air cargo industry on the one hand and maintain effective controls over movements of goods through the territory on the other.
For details, please refer to the relevant circular.