The Mainland has applied zero import tariff from 1 January 2004 for exports from Hong Kong meeting CEPA origin rules for goods in 374 Mainland 2004 tariff codes.  For other products, the Mainland has undertaken to apply zero tariff latest by 1 January 2006 upon applications by local manufacturers and upon CEPA origin rules being agreed and met.  The HKSARG invited local manufacturers to submit their requests from January to April 2004.  The requests were consolidated and submitted to the Mainland in May 2004.  After a series of meetings, the Mainland has agreed to apply zero tariff to products under 713 Mainland 2004 tariff codes.  They are on top of the 374 tariff codes which have already been enjoying zero import tariff from 1 January 2004.   A list of the 713 tariff codes is at Annex I.

The 713 Mainland 2004 tariff codes cover both existing production (529 tariff codes) and planned production (184 tariff codes).  The products under the 529 tariff codes will enjoy zero tariff from 1 January 2005.  For the remaining 184 codes, zero tariff will be applied from 1 January of the following year upon confirmation by both sides that the products have come into production.  The Trade and Industry Department (TID) will announce the detailed arrangements shortly.

The two sides will begin formal discussions on the rules of origin (ROO) for the 713 Mainland 2004 tariff codes.  Consultations on the ROOs will be completed by October 2004.

Procedures for Claiming Zero Tariff

To claim zero import tariff under CEPA, products being exported into the Mainland must be accompanied by a Certificate of Hong Kong Origin-CEPA (CO(CEPA)) issued by TID or one of the Government Approved Certification Organizations (Note 1).  Before applying for CO(CEPA), manufacturers are required to apply for a Factory Registration (FR) with TID to demonstrate that their factories possess sufficient capacity to produce the goods for export.  The application procedures and the conditions of issuing CO(CEPA) are set out in Certificate of Origin Circulars No. 23/2003 and No. 24/2003, both issued on 14 November 2003, and No. 7/2004 issued on 7 June 2004.  All these circulars can be downloaded from TID's website (www.tid.gov.hk/english/cepa/trade_goods.html).


(Note 1)  Under the Protection of Non-Government Certificates of Origin Ordinance (Cap. 324), there are five Government Approved Certification Organizations (GACOs) designated to issue certificates of origin: Chinese Manufacturers' Association of Hong Kong; Federation of Hong Kong Industries; Hong Kong General Chamber of Commerce; Indian Chamber of Commerce, Hong Kong; and Chinese General Chamber of Commerce.