Chinese To Liberalise Customs Procedures For Hong Kong Manufacturers

by Mary Swire, Tax-News.com, Hong Kong

14 May 2002

While attending a trade and business fair for Guangdong in Hong Kong, Guangdong Province Vice-governor Tang Bingquan said he would announce measures today to strengthen economic co-operation between the booming Shenzhen region and Hong Kong, including a simplified clearance system for moving products from factory to factory.

Mr Tang says that more than 40,000 Hong Kong firms have relationships with Guangdong manufacturers which involve product transfers from factory to factory. Under current rules, if a Hong Kong firm with a factory in one Guangdong city sells raw materials to another Hong Kong-owned factory in another part of the province, both the seller and the buyer need to report to their local Customs offices.

The proposed reforms will slash the time it takes for goods to clear checkpoints by more than 50% per cent, benefiting the 68,500 Hong Kong companies that invest in the province. Mr Tang said port administration procedures also would be simplified, reducing the time it takes to clear Customs.

The vice-governor said the measures were being tested in Shenzhen, Dongguan and Guangzhou and would come into force in all Guangdong cities next month. Guangdong is also looking at ways to provide more flexible working hours for mainland employees working for Hong Kong manufacturers - the present eight-hour maximum working day has long been a source of complaint for SAR manufacturers.

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