293766199 - CEPA - EASIER ACCESS TO CHINA THROUGH HONG KONG...

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1 CEPA - EASIER ACCESS TO CHINA THROUGH HONG KONG Cepa' is China's free trade agreement with Hong Kong. It grants easier access to China markets for Hong Kong-made products, and Hong Kong-based service companies. 1. Duty-free export to China for Hong Kong-made products 1087 categories of 'Made in Hong Kong' products will be exempt from tariffs when exported to the Chinese mainland. More information. 2. Easier market entry for Hong Kong-based service providers Cepa covers 26 service sectors and reduces, or removes geographical, financial and ownership restraints. Any nationality company can apply if it: Is incorporated in Hong Kong Has operated for 3 to 5 years (depending on the sector) Is liable to pay Hong Kong profits tax Employs 50% of its staff locally More information. Cepa Update Summary by Susan Lavender, Associate, Dibb Lupton Alsop (European-based law firm in Hong Kong) BENEFITS FOR NON-HONG KONG COMPANIES Overseas companies, not based in Hong Kong, can take advantage of Cepa by outsourcing to , or partnering with a Cepa-qualified manufacturer or service provider in Hong Kong. Overseas manufacturers , you do not need an office in Hong Kong to benefit from Cepa. For your goods to qualify as 'Made in Hong Kong', you need only satisfy simple Rules of Origin. In essence, your products must be "substantially transformed" in Hong Kong. More information. If you are a service-provider , you can partner with, or invest in, a Cepa-qualified company to benefit from easier access to the Chinese mainland. More information. SECTOR-SPECIFIC REPORTS Manufacturing Services CEPA FEATURES Italian firm qualifies as Hong Kong service supplier More business opportunities for overseas firms under Cepa II Global logistics provider taps Cepa opportunities 'Big four' gear up for post-Cepa rush World banks localise for first-mover advantage in China HK & EU business leaders hail Cepa opportunities Luxury goods group sees Cepa as business generator CEPA and Opportunities for Hong Kong Introduction Following the signing of the main parts of the Closer Economic Partnership Arrangement (CEPA) on 29th June 2003, Hong Kong and the Mainland signed the six Annexes to the main text of the Arrangement on 29th September 2003, setting out the implementation details. To be implemented from 1st January 2004, the Arrangement is to ensure Hong Kong will be "economically interlocked" with the Mainland and that smaller Hong Kong companies will benefit from the opening-up and
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2 liberalisation on the Mainland beyond China's commitments in its WTO accession. With CEPA, 90% of Hong Kong domestic exports to the Mainland can enjoy zero tariffs. Also, CEPA opens up 18 service industries to Hong Kong companies. More important, CEPA provides long-term opportunities for Hong Kong people to establish business or work on the Mainland. CEPA - A Special Arrangement Abiding by International Practices
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293766199 - CEPA - EASIER ACCESS TO CHINA THROUGH HONG KONG...

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