Our services
Hong Kong services include
- Utilising CEPA for preferential treatments (e.g. zero-tariff application, origin certification) on goods exported from Hong Kong to China
- Utilising Free Trade Agreements that do not include Hong Kong as a signatory country, while using Hong Kong as a regional hub for goods consolidation, such as the application of Certificates of Non-manipulation
- Facilitating First Sale for Export to the US or EU – achieve duty savings through using a Hong Kong enterprise as middleman
- Enhance compliance with export control rules and regulations in Hong Kong and China
Being a major gateway to Southern China and the base of a vast number of regional headquarters of MNCs, our Customs and international trade practice provides a wide range of tailored solutions in Hong Kong and through leveraging our local China specialists within our network.
Regional management of the customs and trade function
As many organisations house their regional management of the customs and trade function in Hong Kong, our team focuses on offer assistance in the requirements of this role, such as:
- Risk profile assessments of entities throughout the region
- “Trade Intelligence Plus”: dedicated knowledge provision services of developments in trade and customs requirements around the region
- Design, review and standardisation of processes and procedures
- Centralised training
Creating value
- Customs supply-chain business modelling
Ensuring compliance
- Customs valuation (e.g. transfer pricing documentation, obtaining advanced ruling)
- Tariff classification (e.g. technical analysis)
Managing risk
- Setting up best-in-class operating procedures
Case studies
Audit of China processing trade entity of a Hong Kong principal on its import and export activities
WMS assisted the Hong Kong principal to approach the audit case strategically in order to avoid suspension of manufacturing activities at the processing trade entity.
How we helped
- Aligned appropriate documents to be presented to Customs for investigation
- Assessed exposure arising from Customs handbook imbalance and other risk areas and advised on mitigating strategies
- Provided strategies, technical information and regulations to support the negotiation process with Customs to minimise the duty and tax exposure arising from the audit case
- Compliance review to identify areas of customs and trade non-compliance risk for the China processing trade entity
Benefit for the client
- Rectified non-compliant customs operations through on-site practical assistance
- Set-up best-in-class operational procedures to improve customs operations on an on-going basis
Cost savings opportunities for sales from ASEAN to the United States, European Union and China through a Hong Kong sourcing hub
WMS assisted the client to capture and materialise cost saving opportunities through utilising and implementing the following:
First Sale for Export (FSFE) for sales made to United States and European Union
- Led a feasibility study on the supply chain structure and access if documentary trail is sufficient to meet FSFE requirements
- Submitted application for FSFE to US/ EU Customs authorities and use first sale price as dutiable basis
- Implementation review of FSFE supply chain and monitored post-implementation process
ASEAN-China Free Trade Agreement (ACFTA) for sales made to China
- Assessed whether goods sourced from ASEAN countries met the rules of origin prescribed under the ACFTA and the likelihood of the successful application for a preferential Certificate of Origin and advised on the necessary processing structure to meet such rules
- Advised on the requirements to obtain the Certificate of Non-Manipulation in Hong Kong to substantiate the non-processing of ASEAN-originated goods when passing through the Hong Kong hub
- Assessed whether other provisions under ACFTA were met including direct consignment and minimal processing
- Implementation support including ensuring documentation could adequately support preferential treatment upon importation into China.
Location study for hub establishment
- Completed a study on potential hub relocation options such as Singapore and China bonded / free trade zones to achieve potential cost-savings
- Feasibility report on utilising e-commerce