(Main text and Annex A updated on 14 December 2021)
 

Strategic Trade Controls Circular No. 6/2009

Import and Export Control on

Non-fluorinated Polymeric Substances and Fibrous or Filamentary Materials

     This circular reminds traders of the import and export control over non-fluorinated polymeric substances and fibrous or filamentary materials.  It sets out the licensing requirements for the import and export of these products and supersedes the previous Strategic Trade Controls Circular No. 19/2004.

The Legal Basis

2.     Under the Import and Export Ordinance, Chapter 60, Laws of Hong Kong and its subsidiary legislation i.e. Import and Export (Strategic Commodities) Regulations (Cap. 60 sub. leg. G) ("the Regulations"), import or export of any article specified in the Schedules to the Regulations must be covered by valid licences issued by the Director-General of Trade and Industry. The products that are listed in Schedules 1, 2, 3 and 4 to the Regulations are regarded as strategic commodities and are subject to licensing requirements.


3.     Non-fluorinated polymeric substances (e.g. liquid crystal polymer or LCP) and fibrous or filamentary materials (e.g. carbon fibre prepregs) are known to have wide industrial and military uses.  For industrial applications, they are commonly used in the production of electronic and electrical parts, household electrical appliances, sporting goods and machine parts etc.  Non-fluorinated polymeric substances may fall under Category 1C008, while fibrous or filamentary materials may fall under Category 1C010 under Schedule 1 to the Regulations, and are therefore subject to the import and export control under the Import and Export Ordinance.  Detailed descriptions of non-fluorinated polymeric substances and fibrous or filamentary materials subject to control under the Regulations are set out at Annex A for reference.  They can also be found at the Strategic Commodities Control System Website (the "SC Website") at http://www.stc.tid.gov.hk/english/checkprod/sc_control.html

Licensing Procedures for Paper Applications

(A) Application Forms

4.     Licence applications should be made on Import Licence (Strategic Commodities) Application Form [TID 501] (Annex B) (fillable pdf format) or Export Licence (Strategic Commodities) Application Form [TID 502] (Annex C)(fillable pdf format)  respectively. These forms are free of charge and are available at the Integrated Customer Service Centre at Room 1324, 13/F, Trade and Industry Tower, 3 Concorde Road, Kowloon City, Hong Kong. They can also be downloaded from the SC Website at http://www.stc.tid.gov.hk. Licence applications and the supporting documents as specified in paragraph 5 below should be lodged with the Integrated Customer Service Centre at the above address. A numbered receipt will be issued for each licence application.

(B) Declaration and Supporting Documents

5.     In addition to basic application particulars, the following information and documents are also required to support a licence application covering non-fluorinated polymeric substances and fibrous or filamentary materials:

1. the name and full address of the ultimate consignee and end-user;

2. the specific end-use of the goods concerned;

3. if the shipment is supported by an export/re-export authorisation issued by the supplier/originating country/place, essential details of the licence issued by the supplier/originating country/place; and

4. supporting documents including -

   Depending on the circumstances of an individual case, the following documents may also be required :

   1. technical details/specifications and/or the completed questionnaire (Annex D )(fillable pdf format) for non-fluorinated polymeric substances or Annex E )(fillable pdf format)  for fibrous or filamentary materials) of the product under application;

   2. the original End-user Statement duly completed by the end-user (Annex F (fillable pdf format) for import licence application and Annex G (fillable pdf format) for export licence application); and

   3. a copy of an export/re-export authorization issued by the supplier/originating country/place of the goods giving explicit approval to the export/re-export concerned. If the licence/authorisation is issued in languages other than English or Chinese, the applicant should provide a translated version (either in English or Chinese) prepared by a registered translation company in Hong Kong or certified correct by the relevant consulate offices in Hong Kong;
   4. a copy of the valid business registration certificate of the applicant and local end-user; and /or
   5. documents in support of the business nature and production situation of the end-user (e.g. HKF5 Form at Annex H)(fillable pdf format);  
5. The Director-General of Trade and Industry at all times reserves the right to request additional information and further documentary proof to substantiate the licence applications. Applications that are not properly completed or not accompanied by all the necessary documentation will be deferred/rejected. Blank forms for Annexes B to H can be downloaded from the SC Website at http://www.stc.tid.gov.hk/english/download/by_formno.html.

Licensing Procedures for Electronic Applications

6.     Import and export licence applications can also be made electronically ("E-Applications"). The E-Applications can be made through companies' E-Accounts in the SC Website under the program of "Apply for Import Licence" or "Apply for Export Licence" provided at the E-Application menu ( http://www.stc.tid.gov.hk > Login Your E-Account > E-Applications > Import/Export Licence Applications > Apply for Import/Export Licence). E-applicants should provide requisite supporting documents in paragraph 5(d) and then scan, upload and submit the duly completed forms together with the related E-Import/Export Licence Application. Alternatively, the supporting documents can be lodged with the Department in person or by fax (fax no.: 2396 3070). Upon successful lodging the application, E-Applicant should follow the instructions to print out the receipts for subsequent collection of the approved licences. However, please note that the provision of scanned or faxed copy of the End-user Statements and/or HKF5 Forms as required in paragraph 5 (d) (ii) and (v) above only serve to facilitate processing of the applications. The original signed copy of the supporting documents are required to be provided to the Department. The Department will withhold the issuance of licences unless and until the original End-user Statement(s) and/or HKF5 Form(s) are received. Thus, after making the E-Application, applicants are advised to deliver the original signed End-user Statements and HKF5 Forms to TID as soon as possible.


7.     To make E-Applications, companies are required to complete a special registration with the Department in advance. For details, please refer to Strategic Trade Controls Circular No. 3/04, "Introduction of "E-Applications" for Import/Export Licences and other Documents in Strategic Commodities Control System Website" or the specific sections in the SC Website at http://www.stc.tid.gov.hk/english/eaccount/how_open.html.

Issuance of Licence

8.     If licence applications are approved, regardless of whether the applications are made in paper or electronic format, only paper licences will be issued. Under normal circumstances, applications duly completed and supported by the documents required will be processed within 2.5 clear working days after the date of submission of the licence application. However, for cases with complications or if additional documents/information are necessary, longer time may be required to process the applications. Other government departments may also be consulted as and when necessary on a case-by-case basis. To check whether their applications have been processed and are ready for collection, applicants can visit the SC Website at http://www.stc.tid.gov.hk/service/eaccount/login.do?locale=eng&text=o (for applicant with e-account) or https://www.stc.tid.gov.hk/service/applicationStatusQuickcheck.do?locale=eng (general). Applicants are advised to submit their applications well in advance of the shipments.


9.     To collect the approved licence copies, paper licence applicants can present the receipt issued to them to the Integrated Customer Service Centre . For applicants of E-Applications, they can follow the instructions to print out the receipt for subsequent collection of the approved licences at the same location. Approved import and export licences are valid for six months and three months respectively. 

Licence Conditions

10.     On top of the standard licence conditions, the Director-General of Trade and Industry may, depending on the circumstances of individual cases, impose special and additional conditions on approved licences. At the time of receiving the licences, companies are advised to read the designated part, "Licence Conditions", for the imposition of both the standard and special conditions.


11.     For Non-fluorinated polymeric substances and fibrous or filamentary materials, one special licence condition often imposed on import licences issued is "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". Licensees imposed with this condition should write to seek approval fromthe Director-General of Trade and Industry for any change in end-use or end-user and for resale/transfer/disposal of their products or lodge export licence applications for re-export. A designated form SC047) (Annex I (fillable pdf format)) "Application for Resale/Transfer/Disposal of Products Under Approved Import Licence" may be used for cases of resale, transfer or disposal of the goods. Supporting documents such as the original end-user statement completed by the proposed end-user, and valid export permit/authorisation issued by the originating or exporting country/place of the product giving approved to the proposed resale/transfer, must also be provided. Only after receipt of Department's approval should the licensee proceed with the re-export/resale/transfer/disposal of the goods or the change of end-use/end-user respectively. Otherwise, the licensee would have, among others, breached the above licence conditions.

Pre-classification Service

12.     For applicants who frequently import or export the same types of non-fluorinated polymeric substances and fibrous or filamentary materials, it is advisable for them to make use of our pre-classification service. In general, this service enables traders to know whether a specific product is classified as strategic commodities and hence whether a licence is required for its import and export. Traders may download the pre-classification application form SC013 (fillable pdf format) from the SC Website at http://www.stc.tid.gov.hk, and make application together with the technical specifications of the product concerned to the Integrated Customer Service Centre. After pre-classification, the Department will assign a Pre-Classification Reference Number to the product concerned. By quoting this reference number on future licence applications covering the same goods, the requirement to provide the technical specification is waived. For details of the pre-classification procedures, please refer to Strategic Trade Controls Circular No.5/2004, "Pre-classification Service on Strategic Commodities."

End-use Controls

13.     In addition to the control imposed on specific items as set out in Schedules 1 and 2 to the Import and Export (Strategic Commodities) Regulations, traders are reminded that end-use control are imposed under Schedules 3 and 4 to the Regulations. The Regulations impose licensing requirement on articles specified in Schedule 3 to the Regulations (Annex J)(pdf format), 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 activities related to nuclear, chemical or biological weapons or missiles capable of delivering them as specified in Schedule 4 to the Regulations (Annex K)(pdf format); or

2. if the importer/exporter has grounds for suspecting that the article or document may be used in any activity specified in Schedule 4.

Import and/or export licences are required if the end-use of the goods fall under (a) and/or (b) above.

Reminder

14.     Section 6A of the Import and Export Ordinance stipulates that no person shall import or export any article specified in the Schedules to the Regulations except under and in accordance with a licence issued by the Director-General of Trade and Industry. Any person who contravenes the provision commits 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 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.

Enquiry

15.     If you have any enquiry concerning licensing requirements for non-fluorinated polymeric substances and fibrous or filamentary materials, please contact the Licensing Section of the Strategic Trade Controls Branch at 2398 5575. For specific technical questions or matters concerning classification of the goods and the pre-classification service, please call the Classification Section of the Strategic Trade Controls Branch at 2398 5587. Enquiry could also be sent by fax to 2396 3070 (Licensing Section) or 3525 1526 (Classification Section) or by email to stc@tid.gov.hk.

Strategic Trade Controls Branch
Trade and Industry Department