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Trade Compliance Update: New Rules for Exporting and Re-Exporting to and from Hong Kong

February 21, 2017

The U.S. Commerce Department, Bureau of Industry and Security (BIS) published a rule on January 19, 2017, amending the supporting documentation requirements for items being exported or re-exported to Hong Kong, and re-exports from Hong Kong. Following the new rule will help companies stay within the strict guidelines of global trade compliance.

When the new rule goes into effect on April 19, 2017, companies exporting/re-exporting items to Hong Kong must obtain a copy of a valid import license from Hong Kong Trade and Industry (HD TID) prior to the export/re-export, if the item is controlled for one of the following reasons:trade compliance Hong Kong

  • National security (NS)
  • Missile technology (MT)
  • Nuclear proliferation (NP column 1)
  • Chemical and biological weapons (CB)

A written statement from the government of Hong Kong stating that the import does not require an import license is also acceptable. This statement may be used for more than one export as long as it remains accurate.

Trade Compliance: What does the new rule cover?

Export Control Classification Number (ECCN) entries on the BIS Commerce Control List (CCL) identify one or more reason(s) for which listed items are controlled.  For example, 5A002 items are controlled for NS, AT and EI, and are therefore covered under this new rule/requirement.  5A992 is controlled for AT (anti-terrorism) only and is therefore NOT covered under this new rule/requirement.

This rule requires exporters (the USPPI) and re-exporters using a BIS license or a license exception, such as license exception ENC, to export or re-export to Hong Kong items controlled for NS, MT, NP column 1, or CB reasons to first obtain certain documents that verify the items’ status under the Hong Kong Import and Export (Strategic Commodities) Regulations.

What This Means for Flash Global Customers

Clients/customers using Flash Global’s Partner Manager/Broker as their IOR for shipments to Hong Kong of items captured by this new rule/regulation, will receive either a copy of the valid import license issued to the Hong Kong IOR by the Hong Kong government authorizing import of the item(s) to be shipped to Hong Kong, or a copy of a written statement issued by the Hong Kong government stating that no import license is required.

A No License Required (NLR) statement from the HK TID website for the item(s) is also acceptable. The exporter (USPPI) or re-exporter must have the copies in its possession, and any Hong Kong import license must not have expired at the time of the export or re-export to Hong Kong.

NOTE: this BIS rule does not impose any new license requirements.

Flash Global: Trade Compliance Expertise You Can Trust

Clients/customers NOT using Flash Global’s Partner Manager/Broker as their IOR for shipment to Hong Kong of items captured by this new rule/requirement will be required to provide proof of compliance.

Flash Global has the experts and resources to help you navigate what can be extremely complicated waters of IOR/EOR and all facets of trade compliance. Connect with us today to learn more about the services we provide and how they can help you.

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