20 January 2017

Strategic Trade Controls Circular No. 3/2017
 

Exports or Re-exports of US-Origin Strategic Commodities to Hong Kong
and/or Re-exports from Hong Kong

                This circular informs traders of a new measure by the U.S. concerning its control on exports or re-exports of U.S.-origin strategic commodities to Hong Kong and/or such items re-exported from Hong Kong.


Details

2.           On 19 January 2017, the U.S. Department of Commerce published a final rule in the U.S. Federal Register announcing the new support documentation requirements for exports or re-exports of U.S.-origin items subject to the U.S. Export Administration Regulations (EAR) to Hong Kong and/or re-exports from Hong Kong.  The rule will take effect on 19 April 2017.  The rule can be found at the following web link: https://www.federalregister.gov/documents/2017/01/19/2017-00446/support-document-requirements-with-respect-to-hong-kong .

3.          In short, the rule requires the following:-

(a)        Exports and re-exports to Hong Kong:  The U.S. exporters and re-exporters, prior to exports or re-exports of a U.S.-origin item under a U.S. licence or a licence exception, need to obtain a copy of a valid Hong Kong import licence authorising imports of the items to Hong Kong, or a copy of a written statement issued by the Government of the Hong Kong Special Administrative Region (HKSARG) stating that such a licence is not required.

(b)        Re-exports from Hong Kong:  The re-exporters in Hong Kong, prior to exports or re-exports of a U.S.-origin item under a U.S. licence or a licence exception, need to obtain a valid Hong Kong export licence authorising exports from Hong Kong, or a copy of a written statement issued by the HKSARG stating that such a licence is not required.

(c)        Recordkeeping: The documents required to be obtained, i.e. the Hong Kong import/export licence or a copy of a written statement issued by the HKSARG stating that such a licence is not required, must be retained and made available to the U.S. authorities upon request.

According to the rule, a written statement issued by the HKSARG includes either: (a) a written communication to a licence applicant informing the applicant that the item does not require a licence; or (b) a statement available to the general public (including a statement on a website by the HKSARG) that a licence is not required for the item.
 
4.           There is no change to Hong Kong’s licensing control requirements on strategic commodities.  Import and export of strategic commodities are subject to licensing control under the Import and Export Ordinance (Chapter 60 of the Laws of Hong Kong) and its subsidiary legislation, the Import and Export (Strategic Commodities) Regulations (Chapter 60G of the Laws of Hong Kong).

5.            Traders are advised to liaise with their U.S. exporters/manufacturers to prepare for implementation of the new rule.  For implementation details, traders may approach the U.S. Consulate-General in Hong Kong at telephone number 2521 1467 or by email at Office.Hongkong@trade.gov.  Traders may also wish to refer to the Frequently Asked Questions on the U.S. Department of Commerce’s website at: https://www.bis.doc.gov/index.php/policy-guidance/foreign-import-export-license-requirements/hong-kong.

6.            To help traders better understand the new rule, this Department will arrange a briefing for the trade.  More information on the briefing session will be announced separately.

Enquiry

7.             If you have any enquiry concerning this circular, please contact Ms. Cas Lam or Mr. Jacky Chow at telephone number 2398 5575 or by email at stc@tid.gov.hk.

Strategic Trade Controls Branch
Trade and Industry Department