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Commerce and Industry
Under CEPA, the Mainland applies zero tariff to all imported goods of Hong Kong origin that meet agreed CEPA rules of origin. As at end-2017, the rules of origin for some 1,890 products had been agreed.
The government's Dedicated Fund on Branding, Upgrading and Domestic Sales helps Hong Kong enterprises enhance competitiveness and further business development on the Mainland through developing brands, upgrading and restructuring operations and promoting domestic sales.
Investment Promotion and Protection Agreements
Hong Kong has 20 Investment Promotion and Protection Agreements (IPPAs) with foreign economies to assure overseas investors that their investments in Hong Kong are protected and to enable Hong Kong investors to enjoy similar protection overseas. In 2017, Hong Kong forged an investment agreement with ASEAN and concluded IPPA negotiations with Bahrain and Mexico, while negotiations with the Russian Federation and Iran were under way.
Trade in Goods
In 2017, the Customs and Excise Department carried out 26,737 factory and consignment inspections and concluded 219 investigations to ensure compliance with factory registration conditions and import and export licensing requirements. The department also conducted 41 blitz operations on consignments of goods at various import and export control points. It successfully prosecuted 18 companies and five offenders, leading to fines totalling $420,000.
Trade in Strategic Commodities
The Trade and Industry Department maintains a comprehensive import and export control licensing system to monitor the movement of strategic commodities through Hong Kong. The system ensures that while the territory has access to advanced products and technologies to sustain its economic development, it is not used as a conduit for illicit diversion of strategic commodities. The department also administers a permit system to monitor activities involving sensitive chemicals, as required by the Chemical Weapons Convention. Hong Kong cooperates closely with its trading partners to keep abreast of international developments on strategic trade controls and to make sure its control arrangements complement those of its trading
partners.
In 2017, the Customs and Excise Department investigated 231 cases of unlicensed import and export of strategic commodities and successfully prosecuted 36 companies and two offenders, resulting in fines totalling $750,000. Goods valued at $1.17 million were confiscated.
Customs Cooperation
The Customs and Excise Department plays an active role in the work of the World Customs Organisation (WCO) and APEC's Sub-Committee on Customs Procedures. It maintains close liaison with the WCO and seconds one officer each to the WCO Compliance and Facilitation Directorate in Brussels, Belgium, the WCO Regional Intelligence Liaison Office for Asia and the Pacific in Seoul, South Korea, and the WCO Asia Pacific Regional Office for Capacity Building in Bangkok, Thailand.
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