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24-hour hotline : 23 922 922
e-mail address : stc@tid.gov.hk
Ref : TRA CR 1506/2
       
19 May 2023
 

 Strategic Trade Controls Circular No. 3/2023

  Amendment of Schedules 1 and 2 to the
Import & Export (Strategic Commodities) Regulations
 

Background

                 As a responsible trading partner and an international trading hub, Hong Kong updates its control list of strategic commodities from time to time to closely follow the lists and standards adopted by leading international regimes and convention of non-proliferation of weapons of mass destruction, namely the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, the Nuclear Suppliers Group, the Missile Technology Control Regime, the Australia Group and the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction.

2.                 With the accession of the country to the Arms Trade Treaty (ATT) as a State Party, the Central People’s Government has extended the application of the ATT to the Hong Kong Special Administrative Region under Article 153 of the Basic Law.  Hong Kong therefore has to update the control list of strategic commodities to cover the articles regulated under the ATT through the Import and Export (Strategic Commodities) Regulations (Amendment of Schedules 1 and 2) Order 2023 (Amendment Order).


Amendment Order 
 
3.               The Amendment Order serves to amend Schedules 1 and 2 to the Import and Export (Strategic Commodities) Regulations (Cap. 60, sub. leg. G).
 
4.               Schedule 1 sets out the goods for which a licence is required for import into/export from Hong Kong.  The amendments to Schedule 1 are for:
(a)  reflecting the recent updates and changes on the control lists adopted by the international regimes1; and
(b)  adding items which are regulated by the ATT but currently not on Schedule 12.
 
5.                   Schedule 2 sets out those “more sensitive” Schedule 1 items that are subject to licensing control, even they are only in-transit3 or air transhipment cargoes4.  Amendments to Schedule 25 are to update it to fully cover the scope of ATT in order to implement the ATT control requirements regarding the transhipment and transit of conventional arms, their ammunitions/munitions as well as their parts and components.
 
6.                For details of the amendments, please refer to the Amendment Order [Legal Supplement No.2 of the Gazette published on 19 May 2023 (L.N. 85 of 2023, No. 20, Vol. 27)] at the Gazette online (www.gld.gov.hk/egazette).
 

Effective Date of the Amendment Order
 
7.                    The Amendment Order was gazetted today (i.e. 19 May 2023) and will be tabled at the Legislative Council on 24 May 2023.  It will come into operation on a day to be appointed by notice published in the Gazette.  Another circular will be issued in due course to inform traders of the effective date of the Amendment Order.
  

Enquiry

8.                   Three lists of “Commonly Not-Controlled Items” (covering three types of major trading items: 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.  For further enquiries, please contact our Classification Section at 2398 5587.  For information on licensing matters, please contact our Licensing Section at 2398 5575.
 
 
Strategic Trade Controls Branch
Trade and Industry Department
 

1For example, adding some newly developed technologies / items (e.g. precursors for toxic chemical agents, sub-orbital craft) to the list, while the control threshold for some dual-use items (e.g. signal generators, supercomputers, thermal imaging cameras and semiconductor lasers) are relaxed.
2The prevailing Schedule 1 has basically covered the conventional arms, their ammunitions / munitions as well as parts and components regulated by the ATT.  ML101 would be added as a new entry in this amendment to control the following three types of specified articles so that the control fully covers the scope of ATT: 

  • weapons using non-centre fire cased ammunition and which are not of the fully automatic firing type
  • rifles, smooth-bore weapons and combined guns manufactured from 1899 to 1937
  • smooth-bore weapons used for hunting or sporting purposes that meet both of the following descriptions:
    • not specially designed for military use; and
    • not of the fully automatic firing type 

3An article in transit means an article which (a) is brought in to Hong Kong solely for the purpose of taking it out of Hong Kong; and (b) remains at all times in or on the vessel or aircraft in or on which it is brought into Hong Kong.
4The Trade and Industry Department implements the “Air Transhipment Cargo Exemption Scheme for Specified Strategic Commodities” (SCTREX) to facilitate air transhipment cargoes of “non-Schedule 2 strategic commodities”.  Eligible companies which have registered under SCTREX are exempted from applying licences.
5The amendments refer to the addition of new entries ML101, ML9 (Warships) and ML10 (Combat Aircraft and  Attack  Helicopters).  By doing so, Schedule 2 would fully cover the scope of ATT.

 


 

Last Revision Date : 19 May 2023