Frequently Asked Questions
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General
1. Why does Hong Kong implement strategic trade control?
As an active and responsible trading partner in the global economy, the HKSAR is committed to adopting the highest international standard of strategic trade control. Our objectives in maintaining an effective control system are:
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to monitor the inflow and outflow of strategic commodities so as to prevent the HKSAR from being used as a conduit for proliferation of weapons of mass destruction; and
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to ensure our continued access to high-tech products and advanced technology which are of vital importance to Hong Kong's infrastructural and economic development.
2. What is the legal basis of control?
To enable the strategic trade control system to be more comprehensive and effective, Hong Kong has enacted a
Weapons of Mass Destruction (Control of Provision of Services) Ordinance in June 1997 which prohibits the provision of services that are knowingly provided and that may or will assist the development, production, acquisition or stockpiling of weapons capable of causing mass destruction, or the means designed for the delivery of such weapons, irrespective of whether the activities are carried out in the HKSAR.
The latest piece of legislation enacted is the
Chemical Weapons (Convention) Ordinance which came into operation in June 2004. It enables Hong Kong to comply in full with the requirements of the Chemical Weapons Convention.
3. How does Hong Kong implement the control?
The strategic trade control system in Hong Kong is made up of a licensing system administered by the Trade and Industry Department and an enforcement system under the purview of the Customs and Excise Department. The Trade and Industry Department implements licensing control on both import and export of strategic commodities into and out of the Hong Kong territory. In addition, it imposes licensing control for transhipment and certain sensitive articles in transit.
Hong Kong also implements end-use control under which items not caught by the specific control lists in Schedules 1 and 2 are still subject to licensing control if they are intended for use in the production, development or use of weapons of mass destruction.
On the enforcement side, the Customs and Excise Department has dedicated units to:
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conduct physical examination of suspected export shipments and shipments to sensitive destinations;
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verify the authenticity of information given in licence applications;
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conduct disposal checks to ensure that imports are used as declared; and
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investigate possible circumvention. The Customs and Excise Department also co-operates closely with other enforcement agencies in combating unlicensed transhipment and in-transit cargoes.
In maintaining the effectiveness of our control system, we also rely on close bilateral and international co-operation.
4. What types of goods are subject to strategic trade control?
The scope of control is laid down by way of Schedules to the Import and Export (Strategic Commodities) Regulations. The Import and Export (Strategic Commodities) Regulations consist of 4 Schedules.
Schedule 1 is composed of two lists:-
- the Munitions List which covers items specially designed or adapted for military use, and includes both conventional and weapons of mass destruction items. They include: small arms (rifles, pistols, etc.), large artillery weapons, ammunition, bombs, mines, etc, combatant vehicles (air, sea and land, manned and unmanned), kinetic and directed energy weapons systems, countermeasure and imaging equipment, plus their parts, components and accessories, as well as military explosives and fuels and a range of chemical and biological warfare agents and precursors. Also included in the list are protective equipment (body armour, bullet proof vests, etc.), military training equipment, electronic items for military use, and software and technology for the production and use of Munitions List items; and
- the Dual-use Goods List which covers goods such as nuclear materials, facilities and equipment, advanced materials, a range of chemicals which may be used as toxic agent precursors, micro-organisms and toxins, high precision machine tools, production and processing equipment, inspection and measuring systems, high speed and high density integrated circuits, electronic test equipment, semiconductor materials, high performance computers, sophisticated communication systems, single mode optical fibre, sensors and lasers, navigation systems and avionics, marine systems including advanced surface-ship hulls and propellers, deep-submergence vessels, under-water vision systems, space vehicles and rocket systems including engines and rocket fuels.
Articles-in-transit are normally not subject to licensing control except for goods covered by Schedule 2.
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.
Schedule 3 brings enduse under control. Goods will be subject to import and export licensing control if the importer or exporter knows or there are reasonable grounds for him to believe that they will be used, or suspect that they might be used in connection with chemical, biological or nuclear weapons.
Schedule 4 specifies the activities in relation to articles specified in Schedule 3.
Applications for Import and Export Licences
5. Does Hong Kong have any bulk licence for import or export of strategic commodities?
Hong Kong does not implement any bulk licence for import or export of strategic commodities. Under the current legislative framework, licences for strategic commodities are granted to importers or exporters on an individual consignment and pre-shipment basis. Carriers are obliged to obtain from an importer a valid import licence before releasing the strategic commodities to the consignee. Likewise, carriers have to receive from the exporter an export licence before accepting the goods for export. An approved import and export licence has a validity period of six and three months respectively.
As stipulated in the Import and Export Ordinance (Chapter 60) of the Law of Hong Kong, import licence allows for part shipments (i.e. products covered by one import licence may be imported into Hong Kong in separate shipments) within the validity of the licence. There is however no such arrangement for exports of strategic commodities in our legislation. Traders thus need to apply for separate licence for each export shipment of strategic commodities.
6. How do I know whether a product is subject to licensing control?
You may compare the specification of a product to be imported/exported with the description of the equipment or technology and uses set out in the Schedules to the Import and Export (Strategic Commodities) Regulations to determine if the product is controlled or not.
Alternatively, you may lodge an import/export licence or pre-classification application enclosing all technical information and specifications of the goods. Based on the information provided, we will advise whether the goods in question require a licence. Applications can be made electronically or in paper mode.
Please see Q.8 for details. It should be noted that even if the goods are not caught by the specific control lists in Schedules 1 and 2 to the Regulations, they may still be subject to the end-use control as elaborated in
Q.4 above. Therefore, we encourage traders to approach us in case they have doubts on the control status of their goods.
7. How do I make a strategic commodities licence application?
Applications can be made in either
paper or
electronic mode.
Paper mode
Applicants should complete an import or export strategic commodities licence application form and submit it together with the required supporting documents (e.g. technical information, specifications, catalogues or brochures of the goods) to the Integrated Customer Service Centre (address : Room 1324, 13/F, Trade and Industry Tower, 3 Concorde Road, Kowloon City, Hong Kong). Upon submission, applicants will be given a receipt number for each licence application.
Electronic mode
By logging into their "E-Accounts" in this website, applicants can make use of the functions provided therein to prepare and file applications. For each E-Application successfully made in the E-Accounts, the computer system will generate an acknowledgement and receipt immediately (for details of the special registration and use of E-Applications, please refer to Strategic Trade Controls Circular
No.3/04). Requirements for making "E-Applications" are basically no different from paper applications. But the provision of such supporting documents are much more flexible, e.g. forwarded in electronic form together with the E-Applications, by fax or in person to the Integrated Customer Service Centre (address : Room 1324, 13/F, Trade and Industry Tower, 3 Concorde Road, Kowloon City, Hong Kong). Applicants should state clearly in their E-Applications how each document would be forwarded to Trade and Industry Department.
To avoid licence applications being deferred and thus prolonging the licence processing time, applicants should ensure that they have completed the licence application form fully, accurately and attached all necessary supporting documentation. Normally, straightforward cases require no more than 2.5 clear working days to process. Complicated cases may take longer time to process. Traders are thus advised to apply for licences well in advance. Processing of a licence is free of charge.
8. What are the considerations for approving a licence application ?
Each application is considered on its own merits. An application for licence will be approved only when the following factors are favourable:
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there is no risk of illegal diversion at the country/ place of consignment or en route;
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the technical capabilities of the goods are suitable for the end-use declared;
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the end-use is acceptable and believed to be genuine;
- there is no adverse consideration against the consignor, the consignee, the end-user, and the applicant.
Intangible Transfer of Technology
9. Does Hong Kong maintain control on intangible transfer of technology?
Intangible transfer of technology broadly refers to the export or transfer of software and technology via intangible means, such as fax transmissions, e-mails, downloads from the Internet, oral transmission (e.g. conversation, speeches and lectures), etc. Our licensing system based on the Import and Export Ordinance (Chapter 60) and the Import and Export (Strategic Commodities) Regulations (Chapter 60G) only controls import and export of specified strategic commodities as well as their technology in physical and tangible forms (e.g. those recorded on media such as papers, disks, tapes, etc). As such, intangible transmission does not fall under the above Ordinance.
That said, in our legislation, there is a Weapons of Mass Destruction (WMD) (Control of Provision of Services) Ordinance (Cap 526) that prohibits the provision of services that will or may assist the development, production, acquisition or stockpiling of WMD in Hong Kong or elsewhere. For the purpose of the Ordinance, the provision of services covers a wide range of activities.A person arranges to have a technology transmitted to another person through intangible means is a service provided, and it is prohibited under the Ordinance if such intangible transfer is related to WMD.
Even in case the intangible transfer is not related to WMD, traders are also advised to check with the relevant authorities of the technology-originating country (place) to ensure that the intangible transfer is properly authorised.
Internal Compliance
10. How can I obtain more information about maintaining an internal compliance programme of a company?
The Trade and Industry Department recognises the value of maintaining internal compliance programmes by individual companies in contributing to the effective control of strategic trade in Hong Kong. Traders who are interested in the details of an internal compliance programme may approach the Strategic Trade Controls Branch of the Department for advice. In addition, a
booklet and a set of
core elements of a company's internal contol programme issued by the Department can be downloaded from this website.
11. If we receive an order for items not controlled in Hong Kong from an overseas company, does it mean that they are not subject to any licensing control?
Import and export of goods not listed in Schedules 1 and 2 to the Import and Export (Strategic Commodities) Regulations (Chapter 60G) into and out of Hong Kong are not required to be covered by import and export licences provided that they are not for a use in relation to nuclear, chemical or biological weapons or missile capable of delivering these weapons.
That said, even though the goods are not subject to the licensing control under Hong Kong¡¦s strategic trade controls system, traders are advised to check with the corresponding technology originating country (place) to ensure that the exports/ re-exports are also in compliance with the export control requirements of the technology originating country (place). Breach of the export control regulations of the technology originating country (place) may adversely affect traders' access to similar or other products from that country (place) in future.For ease of reference, a list of sanctions or trade restrictions maintained by our major trading partners can be found in this
website .
12. If we receive an order from an overseas entity for decontrolled or non-controlled items that may be involved in proliferation activities, what should we do?
Traders should make all reasonable enquiries to ascertain the stated or intended end-use of the products and should not proceed with the transactions if in doubt. They should also consult the Trade and Industry Department where the items are suspected for a use in relation to WMD.
Even if the goods are not subject to the licensing control under Hong Kong's strategic trade controls system, traders are advised to check with the corresponding technology originating country (place) to ensure that the exports/re-exports are also in compliance with their export control requirements.
Please see Question 11 for details.
13. We have received an order for excessive quantities of decontrolled/non-controlled items from a company located in a sensitive overseas country (place). The customer appears to have no legitimate need for products in question. What should we do?
Again, traders who harbour suspicions about the end use of their goods should make all reasonable enquiries as to the stated or intended use and should not proceed with the transactions if in doubt. They should also consult the Trade and Industry Department where the items are suspected for a use in relation to WMD.
Even if the goods are not subject to the licensing control under Hong Kong's strategic trade controls system, traders are advised to check with the corresponding technology originating country (place) to ensure that the exports/re-exports are also in compliance with their export control requirements.
Please see Question 11 for details.
14. Do I need to apply for an import or export licence if the strategic commodities are imported or exported on behalf of the HKSAR Government?
A private individual or company importing or exporting strategic commodities into or out of Hong Kong on behalf of the HKSAR Government should apply for a licence to import or export strategic commodities into or out of Hong Kong in accordance with the Import and Export Ordinance (Chapter 60) and Import and Export (Strategic Commodities) Regulations (Chapter 60G).
Others
15. How do I get more information about the Strategic Trade Control System or the licensing requirements?
You can obtain further information from -
Integrated Customer Service Centre
Trade and Industry Department
Room 1324, 13/F
Trade and Industry Tower
3 Concorde Road, Kowloon City, Hong Kong
Tel. No.: 2398 5575
Fax No.: 2396 3070