Further to Strategic Trade Controls Circular No. 4/2021, this is to inform traders that the Chemical Weapons (Convention) Ordinance (Amendment of Schedule 1) Order 2021 and  the Import and Export (Strategic Commodities) Regulations (Amendment of Schedules 1 and 2) Order 2021 (“the Orders”) will come into operation on 17 September 2021.
 

2.            The Orders serve to amend the relevant schedules in the Chemical Weapons (Convention) Ordinance (Cap. 578) and the Import and Export (Strategic Commodities) Regulations (Cap. 60, sub. leg. G) to reflect the changes to the control lists adopted by international non-proliferation regimes.  For details, please refer to the Orders [Legal Supplement No.2 of the Gazette published on 11 June 2021 (L.N. 88 and 89 of 2021, No. 23, Vol. 25)] at the Gazette online (www.gld.gov.hk/egazette).
 

 3.            Section 30(1) of the Chemical Weapons (Convention) Ordinance stipulates that a person who without, or otherwise than in accordance with, such a permit, intentionally or recklessly produces, acquires, retains or uses Schedule 1 chemicals at their facility, or transfers Schedule 1 chemicals from their facility, commits an offence and is liable:

(a)     on summary conviction to a fine of HK$200,000 and to imprisonment for 2 years; and

(b)     on conviction on indictment to a fine of HK$500,000 and to imprisonment for 5 years.

4.           Furthermore, Section 6A of the Import and Export Ordinance stipulates that no person shall import or export any article specified in the Schedules to the Import and Export (Strategic Commodities) 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:

(a)     on summary conviction to a fine of HK$500,000 and to imprisonment for 2 years; and

(b)     on conviction on indictment to an unlimited fine and to imprisonment for 7 years.

In addition to prosecution, the Trade and Industry 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.
 

5.            For reference by traders, three lists of “Commonly Not-Controlled Items” (including commonly not-controlled Integrated Circuits, Electronic Components and Equipment, Computers, Computer Related Equipment and Software, and Telecommunications Equipment, Computer Networking Equipment and Related Accessories) are provided at Annex.  The lists contain updated information which is going to be effective when the Orders come into operation on 17 September 2021.   For further enquiries, please contact Classification Section of Strategic Trade Controls Branch at 2398 5587.  For information on licensing matters, please contact our Licensing Section at 2398 5575.

  
 
Strategic Trade Controls Branch
Trade and Industry Department