The Supplementary CEPA Agreement signed in late October 2004 took effect on January 1, 2005. The Agreement allowed for a broader range of zero-tariff commodities from Hong Kong and Macao and simpler application procedures.

According to Gongbei Customs Port, the Agreement has facilitated customs clearance of goods from the two special administrative regions and broadened the scope of beneficiary commodities.

In 2005, commodities with zero-tariff status from Hong Kong and Macao include basically all existing products. The number of customs codes that suggest zero-tariff status for Hong Kong goods has increased from 374 to 1087.

Newly-added commodities include foods and raw/processed aquatic products. The number of customs codes for Macao was increased from 311 to 501, with the new inclusion of TVs, monitors, and projectors.

The Agreement will reshape the structure of the traditional manufacturing industry in Macao and usher in a new era for economic diversification in the SAR. On the other hand, the Agreement provides quicker benefits to HK and Macao enterprises by greatly reducing the time required for the enterprises to gain zero-tariff status. 

Editor : Olivia