Tariffs, Quotas and Licensing Control

The regulation of goods flow in China will be ever evolving with the accession to the WTO. Under the "One country two systems" situation, Hong Kong still enjoys its free port status.

China

As part of its WTO commitments, China will gradually remove all non-tariff measures (quota, license and special tender for mechanical and electronic products) for more than 400 import items before 1 January 2005. China has cancelled the quota and licensing requirements on the export products concerned. China has also introduced reforms in the import management of agricultural products. Certain bulk agricultural produce such as wheat, grains and cotton, which used to be under absolute quota management are now subject to tariff-rate quota management. In the long run, direct administrative measures such as quota and licensing control will be slashed now that China is a WTO member. In December 2001, China promulgated a series of new administrative measures for import and export in keeping with its WTO commitments. These rules have formed a new administrative framework for the quota management and licensing control of imports and exports.

For the import of commodities subject to quota and licensing control in general trade as well as commodities subject to voluntary import licensing, it is necessary to apply for an import quota certificate and an import license before customs declaration. For commodities subject to export quota control in general trade, it is necessary to apply for an export license by presenting the export quota certificate. For the export of commodities subject to export licensing, it is necessary to apply for an export license by presenting the export contract. For the export of commodities whose export quotas are obtained with compensation through tenders, utilized with compensation, or obtained without compensation through tenders, application for the license should be made after a successful bid has been made and the quota amount confirmed ("Guide to Doing Business," n.d.).

Generally speaking, foreign companies will be treated no differently by the authorities in Hong Kong than local companies. There are a few exceptions to this but none that should hinder an e-Commerce. Foreign investment is permitted in all sectors of the Hong Kong economy.