Taxation duties of Hong Kong
Whether you are a private individual or a commercial entity group, you are required to pay import duty and taxes when importing goods into the country. The importation valuation cost is dependent on:
- The price of the goods or products that are about to be imported
- The insurance cost
- The freight cost and
- The sales tax that is subjected to the imports.
All the products imported into the country must be subjected to the tax and duties, and there is no minimum value under which a tax or duty does not apply. Otherwise, the duties are collected by the customs. The Importation Regulations are dynamic and might change with time. It is, therefore, essential to double-check with us if the goods or commodities that you are about to import is permitted in Hong Kong or not. The importance of double-checking is to help you save on time and get the most recent list of items and conditions or requirements for the importation process.
Hong Kong’s Strategic Commodities Control System requires that all the Hong Kong companies that are willing to venture into exportation or importation to have the licenses that permit them to do so. Goods like chemicals or military equipment require licensing for them to be imported or exported. Goods in transit, if they do not leave the vehicle, they are being transported in, are exempt from the license requirement.
Anyone who fails to complete the necessary customs clearance as stipulated by the importation and exportation acts defined by the ministry of trade and industry or who intentionally gives false information is considered to break the law and be liable for charging or subjected to a penalty.
Further, any delay in the documentation if the total cost of goods is over HKD 20,000 could attract a fine of up to HKD 40-200 per item declaration. On the other hand, willingly giving false information makes someone at risk of being fined at least HKD10, 000. Heavier breaches may make an individual to be imprisoned or subjected to administrative actions like revocation of license or suspension from carrying out business in Hong Kong.
The process of importation and exportation of goods and commodities into and out of Hong Kong requires that those who are doing so meet certain conditions, as discussed above. However, the conditions might still vary depending on the requirements that are set by the Hong Kong authorities at a given moment. The Ministry of Trade and Industry regulates the importation and exportation trade. Besides the prohibited items, it is essential to have relevant licensing and documents to permit an individual to engage in the process smoothly. Therefore, to have a better relationship with the relevant authorities regulating the process, it is essential to ensure that you are on the same page and have complied with all the requirements and expectations of such authorities. Exportation requires that one have a certificate of origin while importation requires that an individual only imports the permitted items into the territories of Hong Kong. Since the conditions and the prohibited items might be reviewed anytime, it is thus important to confirm with us through our consultation services to ascertain that the products you are about to import meet the standards are allowed in the country.
Nonetheless, the good news is that Hong Kong does not put restrictions on the importation of most normal foods into the country. If you are not importing animals or products that are made from animals or plants other normal foods are not restricted.