CEPA II Rules of Origin announced

With the signing of further trade liberalisation under CEPA II, the Central People's Government (CPG) and the Hong Kong SAR Government have announced the agreed rules of origin for Hong Kong-made products included in this phase.

As regards the rules of origin for the 713 Mainland China product codes covered in CEPA II, 74% of the products will adopt Hong Kong's existing process-based origin rules as the CEPA rules of origin. These items include textiles and clothing, food and beverages and pharmaceutical products, as well as some plastic and metal products.

Another 11% of the products will adopt the "Change in tariff heading", and only 7% will use the "30% value-added requirement”.

CEPA II also shortens the time gap between production and zero tariff status. Under the new agreement signed recently, manufacturers will enjoy zero tariff status upon confirmation by both sides that the planned products have come into production. 

Under CEPA II, the Mainland will apply zero tariff status to products under 713 Mainland 2004 tariff codes, which are on top of the 374 products that have been enjoying zero import tariff status since January 1, 2004.

The Mainland has also granted preferential treatment in eight new services areas, and agreed to broaden the liberalisation to 11 of 18 services sectors already receiving preferential treatment under CEPA I.

Information on the new liberalisation measures and the CEPA II rules of origin, together with the legal text and annexes, is available from the Trade and Industry Department at http://www.tid.gov.hk. 

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