11 Nov 2019
Do ASEAN-origin products qualify for the ASEAN-China FTA preferential tariffs If they have been imported into mainland China via Hong Kong?
Under the terms of the Framework Agreement on Comprehensive Economic Co-operation Between ASEAN and the People’s Republic of China, products from ASEAN countries imported into China must be directly shipped in order to qualify for the specified customs duty concessions. In the case of goods shipped from ASEAN to mainland China via Hong Kong, however, traders can take advantage of the Free Trade Agreement Transhipment Facilitation Scheme (FTA Scheme), an initiative launched by the Hong Kong Customs and Excise Department. In line with this, if the goods have not undergone any subsequent processing and are otherwise compliant (including having been approved for supervision by the Hong Kong Customs and Excise Department) they may be considered to have satisfied the direct shipment requirement and will be eligible for preferential tariff treatment when transshipped to the mainland.