Hong Kong Plans To Exempt Aircraft Parts From Import/Export Declarations

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

24 January 2008

The Hong Kong government on Wednesday announced plans to introduce a legislative amendment to exempt all import/export declaration charges in respect of aircraft parts and accessories used in the repair or maintenance of aircraft owned or chartered by local-based airlines.

A spokesman for the Commerce and Economic Development Bureau revealed that the scope of exemption under the proposal also covered the import declaration charges on articles used in the repair and maintenance of freight containers operated by local-based sea or air freight transport companies.

"This is a technical amendment to regulation 8 of the Import and Export (Registration) Regulations to better reflect our policy concerning the exemptions. Nevertheless, while the proposal seeks to exempt the declaration charges, traders will continue to be required to lodge relevant trade declarations," the spokesman announced.

The Amendment Regulation will be introduced into the Legislative Council on 20th February. Subject to approval by the Legislative Council, the Amendment Regulation will be gazetted on 22nd February, and will commence operation on the same date.

At present, anyone who lodges an import/export declaration in respect of an article not exempted from declaration charges is required to pay a declaration charge.

Currently, for non-food items, the declaration charge for the imports and exports is 50 cents for the first HKD46,000 of the value of goods declared and 25 cents for each additional HKD1,000 or part thereof, rounded up to the nearest 10 cents.

The administration said that it has briefed the affected companies on the proposal. On the enactment of the Amendment Regulation, the Customs and Excise Department and the Census and Statistics Department will also provide information about the exemption through their departmental websites, and relevant enquiry hotlines and newsletters.

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