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Liquor

Q.1How is duty on liquor assessed?
A.1

Duty on liquor is assessed and calculated according to the value of the goods. According to the Dutiable Commodities Ordinance, Chapter 109, Laws of Hong Kong, the value of the goods for assessment of duty shall be the normal price which the goods would fetch, at the relevant time, on their sale in the open market between a buyer and seller independent of each other.

'Relevant time' means in the case of imported goods, the time when such goods are removed from the seller's premises for the purpose of export, or in the case of goods manufactured in Hong Kong, the time when such goods are removed from the premises on which they were manufactured.

Please refer to the Dutiable Commodities Ordinance (Opens a new window) for details.

Q.2What are the documents required for duty assessment of liquors?
A.2

C&ED may accept the value of liquors stated in the contract of sale, invoice, book of account, etc., if the date of such documents precedes the date on which the duty is assessed by not more than 12 months.

If
(i) the aforesaid documents cannot be produced,
(ii) the information stated in the aforesaid documents is insufficient or inaccurate as to the value of the goods, or
(iii) the value of the goods stated in the aforesaid documents is not the normal price which the goods would fetch, at the relevant time, on their sale in the open market between a buyer and seller independent of each other,

C&ED may fix a value which shall be deemed to be the value of the goods for the purpose of assessing and calculating duty.

Q.3How to calculate the duty for liquor if a foreign currency is stated in a document submitted for duty assessment?
A.3

If in any contract of sale, invoice or other document, the value of the liquor is stated in a currency other than Hong Kong dollars, the Hong Kong dollars equivalent of the other currency will be calculated at the opening indicative counter exchange selling (ICES) rate published by the Hong Kong Association of Banks (HKAoB) on the 15th day of the month immediately preceding the month in which the goods are imported. If the rate is not published on the aforesaid day, C&ED shall calculate the Hong Kong dollars equivalent at the ICES rate published by the HKAoB on the immediately preceding working day.

Q.4According to the Dutiable Commodities Ordinance, Chapter 109, Laws of Hong Kong, what are the labelling requirements of liquors for local consumption?
A.4

According to the Dutiable Commodities Regulations, Chapter 109A, Laws of Hong Kong, every container containing liquor that is imported into or manufactured in Hong Kong for local consumption shall bear a label on which is printed the alcoholic strength, or the range of alcoholic strength, of the liquor. The label shall include the information needed which is printed legibly in English letters, Chinese characters, Arabic numerals or the symbol "%", or any combination of them. The label shall be securely affixed to or be part of the container and so placed as to be clearly visible.

Tobacco

Q.1How does the length of a cigarette affect the calculation of its duty?
A.1

According to the Dutiable Commodities Ordinance, Chapter 109, Laws of Hong Kong, a cigarette more than 90 mm long, excluding any filter or mouthpiece, shall be treated as if each additional 90 mm or portion of 90 mm were a separate cigarette.

Hydrocarbon Oil

Q.1Is marked oil exempt from duty?
A.1

Marked oil is referred to as light diesel oil to which a marker and a colouring substance have been added in the manner and proportion specified by the Dutiable Commodities (Marking and Colouring of Hydrocarbon Oil) Regulations, Chapter 109C, Laws of Hong Kong. According to Dutiable Commodities Regulations, Chapter 109A, Laws of Hong Kong, marked oil is exempt from duty.

According to the Dutiable Commodities (Marking and Colouring of Hydrocarbon Oil) Regulations, Chapter 109C, Laws of Hong Kong, no person shall use or permit the use of marked oil as a fuel in any motor vehicle (except the motor vehicle specified in the Regulations) or pleasure vessel.

Q.2Are disabled drivers eligible for exemption of duty using hydrocarbon oil in their private cars?
A.2

Yes. According to the Dutiable Commodities Ordinance, Chapter 109, Laws of Hong Kong, duty payable on hydrocarbon oil for use by a disabled person within the meaning of the Road Traffic Ordinance, Chapter 374, Laws of Hong Kong, in a private car, invalid carriage, motor cycle or motor tricycle owned and driven by him shall be waived, such waiver to be subject— (a) in the case of a private car or an invalid carriage, to a limit of 200 litres per month; and (b) in the case of a motor cycle or motor tricycle, to a limit of 100 litres per month, for each such person.

Calculation / Assessment of Duty