Since 1 April 2003 Customs and Excise Department (C&ED) has implemented an Open Bond System (OBS). Under the OBS, no Customs officer will station at the warehouses and therefore no Customs attendance fee is charged. C&ED instead executes control on the warehouses through documentary verification, selective physical checks and post-transaction auditing. Separately, the warehouse licensees are required to ensure safekeeping and accurate recording of the goods in their warehouses.

The OBS aims to facilitate the trade by lowering the compliance costs and allowing more flexibility in the business operations. Traders of the industry are also in support of the implementation of the OBS. In fact, a number of other countries including the United Kingdom, USA, Canada, Australia, New Zealand and Singapore have already adopted the above Customs control mode which is proven to be an effective measure to achieve the objectives of facilitation of trade as well as protection of government revenue.

Any person who wishes to operate a warehouse under the OBS is welcome to contact the following office for details :

Licence Unit
Office of Dutiable Commodities Administration
Customs and Excise Department
2/F, Harbour Building,
38 Pier Road,
Central, Hong Kong
(Tel. No. : 2852 3032)

Prepared by ODCA
Customs and Excise Department
April 2003