Hong Kong is famous for being a free port, implying that there are no duties levied on the goods imported except in a few and minor cases. This principle has served as one of the keys to Hong Kong’s role in global trade. In detail, here is the Hong Kong import tax policy.
No General Import Tax
Hong Kong does not levy import taxes or customs tariffs on goods imported into its territory, with the exception of a very limited list comprising only four types of dutiable commodities. This exemption from general import duties is one of the ingredients of Hong Kong’s free port status, which promotes trade and helps to maintain the city’s competitiveness as a major international business and shipping centre.
Dutiable Commodities
While import tax is not generally imposed, Hong Kong levies duties on four types of commodities, namely,
- Alcohol: All types of liquor with an alcoholic strength above 30% by volume measured at a temperature of 20 degrees Celsius
- Tobacco: All kinds of tobacco products, including cigarettes and cigars, are dutiable
- Hydrocarbon Oil: Products like gasoline and all kinds of fuel.
- Methyl Alcohol: Includes preparations containing methyl alcohol.
These duties are mainly imposed to prevent over-consumption and on public health grounds.
Calculation of Duties
In the case of dutiable goods mentioned above, duty rates are different:
- Spirit: Duties are charged depending upon alcoholic strength and quantity.
- Tobacco: Duties are charged on every one thousand cigarettes or every kilogram of other tobacco products
- Hydrocarbon Oil and Methyl Alcohol: Duties are usually charged depending on volume.
Import Licensing
Some products are not subject to import taxes but may require import licenses. These include pharmaceuticals, chemicals, ozone-depleting substances, and controlled substances, which are regulated for reasons of public safety, health, and compliance with international agreements.
Conclusion
In all, Hong Kong is a free port, but with certain exemptions mainly in the nature of consumable commodities. The minimal barrier to trade underpins the region’s approach toward maintaining its status as a world leader in global commerce, thus encouraging both trade and economic growth. To businesses and individuals, this environment is very conducive, as it guarantees lower costs and greater access to a wide variety of products.