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Calculation/Assessment
of Duty/Tax |
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(i) |
Liquor |
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Q1. |
How is
duty on liquor assessed? |
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A1. |
Duty
on liquor is calculated according to the value
of the goods. The value of the goods for assessment
of duty will 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. The 'relevant time'
will be, for imported liquor, the time when such
goods are removed from the seller's premises for
export to a buyer in Hong Kong, or, for locally
manufactured liquor, the time when such goods
are removed from the factory.
Therefore, the value for duty assessment would
be the ex-warehouse price which should include
all costs incidental to the sale of the goods
borne by the seller such as packing cost, commission,
royalty and licence fee but exclude the freight
and insurance charges incurred in bringing them
into Hong Kong. |
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Q2. |
What are
the documents required for duty assessment? |
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A2. |
Upon
C&ED's request, importers or manufacturers
of dutiable goods are required to produce contracts
of sale, invoices, books of account and any other
documents like payment records, export market
price lists issued by the suppliers and purchase
orders, which are considered to be necessary for
the purpose of assessing and calculating duties.
If the importers or manufacturers fail to submit
the requested document, C&ED may fix a value
which shall be deemed to be the value of the goods
for assessing duty by virtue of S. 26A(5) of the
Dutiable Commodities Ordinance, Cap. 109 (the
Ordinance). In the circumstances, the importers
or manufacturers can provide with any document
that can substantiate its declared dutiable value
is the 'normal price' stipulated in Section 26A(1)
of the Ordinance for C&ED's consideration. |
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Q3. |
Is there
any penalty for false declaration? |
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A3. |
Any
person deliberately makes a false declaration
by providing forged or falsified document may
be liable to prosecution with maximum penalty
for a fine of HK$1,000,000 and to imprisonment
for 2 years. |
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Q4. |
What do
the different kinds of codes appeared on a Dutiable
Commodities permit represent? |
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A4. |
'Supplier
Code': code for a specific supplier of the goods.'Carrier
Code': code for a specific carrier, i.e., a specific
flight, vessel, etc. 'Commodity Code': unique code
for a specific dutiable commodity. |
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Q5. |
What will
be the exchange rate if foreign currencies are involved
in the duty assessment? |
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A5. |
The
Hong Kong dollars equivalent of the other currency
is calculated at the opening indicative counter
exchange selling rate published by the Hong Kong
Association of Banks: -
(a) for a person permitted to make monthly
returns, on the last date of that return; and
(b) in any other case, on the 15th day of the
month immediately preceding the month in which
the goods are imported.
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Q6. |
Is there
any other obligation for an importer or a manufacturer
of Dutiable Commodities? |
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A6. |
In pursuance
of Reg. 22A of the Dutiable Commodities Regulations,
Cap. 109A, the importer or manufacturer of dutiable
goods should keep contracts of sale, invoices, books
of account or other documents for at least 2 years
after their creation. |
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Q7. |
Are all
the costs relating to the transportation of the
imported dutiable goods deductible from dutiable
value? |
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A7. |
Only delivery
cost incurred at the time when the imported dutiable
goods are removed from the supplier's premises for
the purpose of export to the buyer is deductible
from the dutiable value. Supporting documents relating
to the delivery costs would be required to be submitted
for proof upon request. |
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Q8. |
I have
been offered a 10% price discount by my supplier.
Should the discount be reflected in the declared
dutiable value? |
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A8. |
Discounts
given by suppliers under normal trade practices,
such as cash discount and quantity discount, are
acceptable deductions and can be excluded for duty
assessment. When filling in permit application,
you should input the amount of discount offered
into the 'discount %' field and the total dutiable
value before discount into the 'dutiable item cost'
field. |
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Q9. |
My overseas
supplier intends to offer me liquor sample that
is free-of-charge (FOC). Is duty charged on the
FOC item? |
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A9. |
Unless
an exemption from duty on the FOC liquor samples
has been granted by C&ED, you should obtain
a normal market price of the goods from the supplier
for the purpose of duty assessment on the sample.
Otherwise, C&ED would fix a value which shall
be deemed to be the value of the goods for assessing
duty by virtue of S. 26A(5) of the Dutiable Commodities
Ordinance, Cap. 109. |
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Q10. |
What should
I do if my imported dutiable liquors, which is now
stored in a bonded warehouse, do not bear labels
on their containers stating their alcoholic strength
information? |
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A10. |
To comply
with Reg. 67A of the Dutiable Commodities Regulations,
Cap. 109A, you should contact the related manufacturer
of the imported liquors to ascertain the alcoholic
strength information and then serve Customs a "Notification
of Operation-in-bond" (CED86) to apply for
operation-in-bond with the available information
(Please refers to the 'Public Forms' Section to
download the form for use). However, if you cannot
ascertain the alcoholic strength information from
the manufacturer after effort, you can apply for
exemption from the labelling requirement on alcoholic
strength in writing or in the form of an electronic
record. |
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(ii) |
Tobacco |
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Q1. |
Is there
any limit on the length of a stick of cigarette
produced? |
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A1. |
No. However,
for the purpose of applying the duty under the Dutiable
Commodities Ordinance, a cigarette more than 90
mm long, excluding any filter or mouthpiece, shall
be treated as if each additional 90 mm were a separate
cigarette. |
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Q2. |
Is there
any legal limit on the tar content of a stick of
cigarette produced? |
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A2. |
Yes. No
person shall sell, offer for sale or possess for
the purposes of sale any cigarette containing an
amount of tar exceeding 17 milligrams. However,
this section does not apply to cigarettes held in
bond or by a manufacturer of tobacco products for
export from Hong Kong. |
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Q3. |
What is
the packing requirement of cigarettes? |
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A3. |
No
person shall sell, offer for sale or possess for
the purposes of sale any cigarettes unless they
are in a packet of at least 20 sticks; and the
packet thereof and, if the packet is within a
retail container, the container also, bears in
the prescribed form and manner: -
(a) a health warning;
(b) the tar and nicotine yields.
Nothing shall apply to anything done in relation
to cigarettes, cigarette tobacco, cigars or pipe
tobacco which are held in bond; or by a manufacturer
of tobacco products, for export from Hong Kong. |
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Q4. |
Could the
public get a reward if they provide information
on illicit cigarette activities? |
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A4. |
A reward
will be given under the Informer Reward Scheme
if any person who provides information leading
to seizure and forfeiture of illicit cigarettes
and conviction of person involved. Information
can be given to Customs and Excise Department
:
(a) by telephone 2545 6182 (24 hours);
(b) by fax 2543 4942 (24 hours);
(c) by letter to the Department, GPO Box 1166
or
(d) in person.
The identity of the person(s) providing information
to the Department will be kept strictly confidential. |
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(iii) |
Hydrocarbon
Oil |
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Q1. |
Is Marked
Oil dutiable? |
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A1. |
No, but
no person shall use or permit the use of marked
oil as a fuel in any motor vehicle or pleasure vessel. |
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Q2. |
Who are
eligible for exemption of duty? |
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A2. |
Disabled
drivers (in the case of private car, to a limit
of 200 litres per month; and in the case of motorcycle,
to a limit of 100 litres per month) and those covered
by R12 (1) of the Dutiable Commodities Regulations. |
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Q3. |
Could the
public get a reward if they provide information
on illicit fuel activities? |
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A3. |
Yes, any
person who provides information leading to seizure
and forfeiture of illicit fuels and conviction of
person involved would get a reward under the Oil
Industry Reward Scheme. |
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Q4. |
How to
report these illicit fuels activities? |
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A4. |
Information
can be given to Customs & Excise Department:
(a) by telephone 2545 6182 (24 hours);
(b) by fax 2543 4942 (24 hours);
(c) by letter to the Department, GPO Box 1166;
or
(d) in person.
The identity of the person(s) providing information
to the Department will be kept strictly confidential. |
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(iv) |
Locally manufactured alcoholic liquors |
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Q1. |
What do I need to do if I have to manufacture alcoholic liquors in Hong Kong? |
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A1. |
According to the Dutiable Commodities Ordinance, if you intend to manufacture liquor with an alcoholic strength of more than 30% by volume measured at a temperature of 20oC, you are required to apply for a 'Manufacturer's Licence for Liquor' from Customs & Excise Department. You may call 2852 3260 for more information. However, no licence is required for the manufacturing of 'zero-rated specified goods' including wine and liquor with an alcoholic strength of not more than 30% by volume measured at a temperature of 20oC (such as beer). |
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Q2. |
Do I need to pay duty for selling my liquor here in Hong Kong? |
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A2. |
You do not need to pay duty for selling your 'zero-rated specified goods' here in Hong Kong. As for the sale of liquor with an alcoholic strength of more than 30% by volume measured at a temperature of 20oC, you are required to apply for a permit and to pay 100% of the goods' value as duty. |
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