How to Apply for Licences to Import, Export Tobacco in Hong Kong
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Hong Kong Tobacco Import/Export Licenses
How to Apply for Licences to Import, Export Tobacco in Hong Kong
In Hong Kong, the importation and exportation of tobacco are strictly controlled and require specific licenses. This falls under the purview of the Customs and Excise Department (C&ED).
Here's a general guide on how to apply for licenses to import and export tobacco in Hong Kong:
1. Understand Dutiable Commodities: Tobacco is classified as a dutiable commodity in Hong Kong. This means it's subject to excise duty for revenue protection and control. The C&ED is responsible for enforcing the Dutiable Commodities Ordinance (Cap 109).
2. Who Needs a License? Any person or company that intends to import, export, manufacture, or store dutiable commodities, including tobacco, must possess a relevant license issued by the C&ED. Failure to do so can lead to prosecution with severe penalties.
3. Types of Licenses for Tobacco: For importing and exporting, you will primarily need an Import and Export Licence for the specific type(s) of tobacco commodities you plan to handle (e.g., cigarettes, cigars, smoking tobacco, unmanufactured leaf tobacco).
4. Key Requirements for Applicants:
Company Registration: The application for a license should typically be made by a company registered with the Business Registration Office in Hong Kong.
Responsible Person: The individual making the application on behalf of the company must be 18 years of age or over. They should be appointed by the company as the responsible person for the intended licensed activities. This person should generally be a Hong Kong resident holding a Hong Kong Identity Card. If not, a Hong Kong resident with a valid HKID should be appointed as a second responsible person.
Business Address Proof: You'll need to provide proof of landlord or tenancy agreement for your business address.
5. Application Process:
Application Forms: Licence application forms (e.g., CED 28A) can be obtained from the Hong Kong Permit Office of the Customs and Excise Department or may be available online through the Dutiable Commodities System (DCS).
Online Application (Recommended): The C&ED encourages applicants to submit licence applications (new, renewal, amendment, cancellation) through their Dutiable Commodities System (DCS) website: https://www.dcs.customs.gov.hk.
Required Documents: While the exact list may vary, generally you will need:
Completed application form.
Copy of the company's valid Business Registration Certificate (for company applicants).
Copy of the responsible person's Hong Kong Identity Card or travel document.
Proof of business address (tenancy agreement, etc.).
Other supporting documents as requested by C&ED.
Interview: The appointed responsible person(s) may be invited for an interview prior to the issuance of a license.
Fees: There are annual fees associated with the Import and Export Licence for dutiable commodities. As of a previous update, this was HK$1,320.
Processing Time: Application processing time can vary. It's advisable to submit your application well in advance of your intended import/export date.
6. Important Considerations:
Alternative Smoking Products (ASPs): Be aware that Hong Kong has a strict ban on alternative smoking products (e.g., e-cigarettes, heated tobacco products, herbal cigarettes). Importing, promoting, manufacturing, selling, or possessing ASPs for commercial purposes is prohibited. There are very limited exemptions for certain transshipment scenarios.
Duty Payment: Duty has to be paid upon delivery of the dutiable goods from the importing carrier or bonded warehouse to the local market. The Office of Dutiable Commodities Administration of the C&ED performs duty assessment. A removal permit for duty-paid goods will be issued upon payment of duty.
Customs Attendance: In certain circumstances (e.g., destruction of dutiable goods, sample drawing), Customs attendance may be necessary.
Import/Export Declarations: In addition to the license, you are generally required to lodge accurate and complete import and export declarations to the Hong Kong Customs within 14 days after the import or export of goods (unless exempted). This can be done electronically through service providers appointed by the HKSAR Government (e.g., Brio, Global e-Trading Services, Tradelink).
Consulting Fees
Here's a breakdown of professional fees for an Import and Export Licence application for tobacco:
Service: If you're unfamiliar with Hong Kong's complex dutiable commodities regulations, or if your company is new to import/export in Hong Kong, you might hire a trade or customs consultant. They can:
Advise on requirements: Guide you through the specific documentation, eligibility criteria, and regulatory nuances for tobacco licenses.
Assist with application preparation: Help fill out forms accurately, ensure all supporting documents are in order, and prepare any necessary justifications or business plans.
Liaise with C&ED: Act as an intermediary between your company and the Customs and Excise Department, answering their queries and facilitating the process.
Set up internal compliance: Advise on establishing internal procedures to ensure ongoing compliance once the license is obtained.
Range: This could be a few thousand HKD for basic advice and review, or significantly more (HK$10,000 − HK$50,000+) for comprehensive application management and ongoing support, depending on the scale and duration of the engagement.
Where to Find More Information and Apply:
Hong Kong Customs and Excise Department (C&ED) Website: This is your primary source for official information, forms, and online application portals. Look for sections on "Dutiable Commodities" and "Licence and Permit Application."
General Dutiable Commodities page: https://www.customs.gov.hk/en/service-enforcement-information/trade-facilitation/dutiable-commodities/index.html
About Licenses: https://www.customs.gov.hk/en/service-enforcement-information/trade-facilitation/dutiable-commodities/about-licences/index.html
Forms: https://www.customs.gov.hk/en/service-enforcement-information/trade-facilitation/forms/index.html
Trade and Industry Department (TID) Website: While the C&ED handles dutiable commodities, the TID is responsible for overall import and export licensing, especially for strategic commodities. While tobacco isn't a "strategic commodity" in the same vein as military equipment, it's good to be aware of TID's role in the broader import/export framework.
TID Licensing Information: https://www.stc.tid.gov.hk/english/hksarsys/licensing.html
Trade Single Window (TSW): This platform aims to streamline trade document submission. Check if it's applicable for your specific tobacco import/export needs.
It is highly recommended to contact the Hong Kong Customs and Excise Department directly for the most up-to-date and specific requirements for your particular tobacco import/export activities. Their contact details are usually available on their website.
How Bestar can Help
How to Apply for Licences to Import, Export Tobacco in Hong Kong
Here's how Bestar can assist with importing and exporting tobacco, from the initial license application to ongoing operations:
Pre-application Assessment:
Feasibility Study: Evaluate the viability of your tobacco import/export business in Hong Kong, considering all regulations, duties, and potential complexities.
Regulatory Guidance: Provide a deep dive into the Dutiable Commodities Ordinance (Cap 109) and other relevant Hong Kong laws (e.g., the ban on Alternative Smoking Products) as they apply to your specific tobacco products.
Eligibility Check: Determine if your company and proposed operations meet all the C&ED's stringent requirements for a tobacco Import & Export Licence.
License Application Assistance:
Document Preparation: Help gather, review, and organize all necessary documents (company registration, proof of address, responsible person details, business plans, etc.) to ensure they meet C&ED standards.
Form Filling Accuracy: Ensure all application forms (like CED 28A) are completed correctly, minimizing the risk of rejections or delays due to errors.
Liaison with C&ED: Act as your point of contact with the Customs and Excise Department, handling queries, clarifications, and follow-ups on your application. This can save significant time and effort.
Interview Preparation: Advise and prepare the "responsible person(s)" for potential interviews with C&ED officers.
Regulatory Interpretation:
Contract Review: Review supply and distribution agreements to ensure they align with Hong Kong's import/export and dutiable commodities laws.
Company Formation in Hong Kong:
Incorporation: If you don't already have a Hong Kong entity, we facilitate the incorporation of your company with the Companies Registry.
Business Registration: Obtain the essential Business Registration Certificate, a prerequisite for the Import & Export Licence.
Statutory Compliance:
Registered Office: Provide a registered office address in Hong Kong, as required by law.
Appointing Responsible Persons: Ensure proper appointment of directors, company secretary, and the "responsible person(s)" for the dutiable commodities license, meeting residency requirements.
Maintaining Records: Maintain statutory registers (e.g., directors, shareholders, significant controllers) and minute books.
Annual Filings: Handle annual return filings with the Companies Registry and renewal of the Business Registration Certificate, keeping your company in good standing.
Designated Representative for Significant Controllers Register (SCR): Act as the designated representative to assist the company in complying with the SCR requirements, which is a critical aspect of anti-money laundering and combating terrorist financing in Hong Kong.
By engaging Bestar, businesses dealing with tobacco in Hong Kong can navigate the intricate regulatory landscape more efficiently, minimize risks of non-compliance, avoid costly delays, and focus on their core business operations.
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