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The Mainland has been proactive in establishing Free Trade Agreements (FTAs) with different countries and regions in recent years. It is stipulated in the FTAs that consignments routed through a third place can also be regarded as direct consignments/transport and are qualified to apply for tariff reduction under certain circumstances, in particular, if they remain under the control of Customs or designated authorities in the third place.

To further enrich the facilitation services provided under the Economic Cooperation Framework Agreement (ECFA) and to facilitate more transhipment cargo in Hong Kong to be qualified for preferential tariff, the Customs and Excise Department (C&ED) has launched the Free Trade Agreement Transhipment Facilitation Scheme (FTA Scheme) on 20 December 2015. This voluntary scheme provides traders with Customs supervision service and issues Certificate of Non-manipulation to certify transhipment cargo that have not been undergone any further processing during their stay in Hong Kong.

The FTA Scheme