The Hong Kong Special Administrative Region (HKSAR) has expanded the scope of its Free Trade Agreement Transshipment Facilitation Scheme (FTA Scheme). The extension now includes transshipments from the Chinese mainland to Vietnam and Nicaragua via Hong Kong, and from Serbia via Hong Kong to the mainland, according to a statement released by Hong Kong customs on Sunday.
With this extension, local traders can now apply for a certificate of non-manipulation. This certificate verifies that transshipment cargo has not undergone any further processing during its stay in Hong Kong, allowing traders to claim preferential tariffs under related Free Trade Agreements (FTAs) and preferential trade agreements between the Chinese mainland and other countries and regions, such as the Regional Comprehensive Economic Partnership Agreement.
Previously, Hong Kong’s FTA Scheme covered shipments from 68 economies under 20 trade agreements, facilitating transshipments northbound to the mainland and southbound to destinations like Taiwan, South Korea, Singapore, and Australia under seven trade agreements.
Liang Haiming, chairman of the Hong Kong-based China Silk Road iValley Research Institute, noted that these arrangements positively impact Hong Kong’s economy. “They strengthen the logistics and transportation sectors, further reinforcing Hong Kong’s role as an international logistics hub,” Liang said in a statement to the Global Times on Sunday.
He added that offering tariff incentives is likely to attract more international transactions through Hong Kong, enhancing its competitiveness in the global trade network by streamlining customs procedures and improving efficiency.
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