Hong Kong and the Mainland have signed a co-operation agreement on customs facilitation measures for wine entering the Mainland market through the city.

The measures include:

* wine duty pre-valuation - registered wine traders can request Mainland customs do a valuation of wine duty 10 working days before the shipment is exported from Hong Kong to the Mainland. When the shipment arrives at a Mainland boundary point, Mainland customs will normally complete the procedure within a working day; and,

* expediting the clearance process at Mainland ports - for registered wine traders who do not choose to use the wine duty pre-valuation service, Mainland customs will shorten the clearance time at the boundary points. For wines which have been imported to the Mainland before, with the submission of all necessary documents, the clearance procedure will normally take up to three working days. For wines new to the Mainland market, the clearance procedures will usually be completed within seven working days. If customs clearance cannot be completed within the said timeframe, the goods can still be released for sale on the payment of a guarantee deposit. This enables traders to sell their wines as soon as possible.

Registration eligibility

These measures are open to registered traders. Firms formed in Hong Kong for at least six months and engaged in wine-related businesses such as trading, storage and logistics, can seek registration.

The Trade & Industry Department will handle registration for local traders while Mainland customs will deal with Mainland traders. Participation in the registration scheme is voluntary and the list of registered traders will be published online.

Hotlines will be set up to answer traders' enquiries. Registered traders can also directly contact Mainland customs through its hotline if their wine shipments encounter clearance problems.

Pilot scheme

The measures will be implemented as a pilot scheme in Shenzhen in the second quarter of the year. The two sides will review it in six to nine months and consider extending it in phases to other major Mainland cities, like Beijing, Shanghai and Guangzhou.

At the signing ceremony today Secretary for Commerce & Economic Development Rita Lau said the agreement will enhance co-operation between Hong Kong and Mainland customs on wine-related matters, and fortify the city's position as a regional wine trading and distribution hub.

"The measures to be put in place will help enhance transparency and certainty in doing business, thus facilitating Hong Kong's wine traders who wish to expand their operations on the Mainland," Mrs Lau said.