Relevant Legislation
The legal basis for strategic trade control in Hong Kong is the Import and Export Ordinance, Chapter 60 of the Laws of Hong Kong ("The Ordinance"). The Ordinance lists strategic commodities as one of the few categories of goods the import or export of which is prohibited unless licensed by the Director-General of Trade and Industry ("Director-General"). The Ordinance establishes a licensing requirement for import and export of such commodities. These commodities are listed in the Schedules to the Import and Export (Strategic Commodities) Regulations.
The Ordinance also requires that carriers cannot accept licensable goods for export without receiving from the exporter a valid copy of the export licence. Besides, carriers are required to receive from the importer a valid import licence before releasing the goods. In addition, the carrier has the responsibility to return the copy of the import/export licence to the Director-General together with the cargo manifest of the carrier.
Trade and Industry Department
The legal powers conferred upon the Director-General under the Ordinance encompass all those necessary to administer a comprehensive licensing control system. They include :
- the power to approve licence applications, to refuse applications, to impose conditions on a licence, to revoke, suspend or cancel a licence; and
- the power to specify the list of items subject to control and to amend the list.
Customs and Excise Department
Officers of the Customs and Excise Department are also conferred under the Ordinance with powers for the enforcement of the control system :
- to stop and search any person on exit or entry and any carrier;
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to enter and search any premises without search warrant, except for domestic premises;
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to inspect, examine and seize any goods;
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to require the production of any licence, or any document which may relate to any offence under the Ordinance; and
- to direct goods be removed to and kept at a place specified by the Customs authorities and not to be removed without prior approval.
Violation of the Ordinance
The Ordinance also makes the following acts in connection with the import or export of strategic commodities criminal offences :
- importing or exporting prohibited goods without valid licence;
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failure on the part of the carrier to retain any imported strategic commodities before an import licence is produced to him;
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accepting any strategic commodity for export without receiving an export licence;
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failure to deliver the manifest and copies of import or export licences to the Director-General within 14 days after importation/ exportation of goods;
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importing or exporting unmanifested cargo;
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obstructing or disobeying a requirement or demand by any Customs officer in his/her discharge of duties;
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falsely declaring any material information to the Director-General or furnishing false information on licence applications; and
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forging or making unauthorised alterations to a licence.
The maximum penalty for importing or exporting strategic commodities not under and in accordance with a valid licence is mandatary forfeiture of goods, unlimited fine and imprisonment for seven years.