A Guide to What to Expect When Doing Business in Hong Kong

Hong Kong Custom Duty Rate & Dutiable Goods Hong Kong is a destination that is duty-free, in line with tis status in Asia as a free port. However, certain dutiable goods are subject to the Hong Kong custom duty rate.

 

What Gets Taxed in Hong Kong?

Hong Kong is a special administrative region (SAR). This means that it is part of the People’s Republic of China. As a duty-free destination, imports, in general, are tax-free except for the following:

  • Motor vehicles (subject to the First Registration Tax)
  • Importing animals (subject to the Agriculture, Fisheries and Conservation Department)
  • Dutiable goods that are subject to excise duties, regardless of whether they are imported or produced locally.
  • These goods include the following:
    • Tobacco
    • Liquors
    • Hydrocarbon oil
    • Methyl alcohol

The amount to be paid for the dutiable goods above will differ depending on certain criteria. The breakdown for the categories above is as follows:

  • Liquor of more than 30% alcoholic strength – 100% tax
  • Liquor of not more than 30% alcoholic strength – 0% tax
  • Wine – 0%
  • For every 1000 cigarettes – $1,906
  • Cigars per kilo – $2,455
  • Chinese-prepared tobacco per kilo – $468
  • Other manufactures tobacco except those intended for cigarette manufacturing – $2,309 per kilo
  • Aircraft spirit – $6.51
  • Motor spirit (leaded petrol) – $6.82
  • Motor spirit (unleaded petrol) – $6.06
  • Light diesel oil – $2.89
  • Ultra-Low Sulphur diesel – $2.89
  • Euro V diesel – $0.00
  • Methyl alcohol and any admixture that contains methyl alcohol – $840 per hectolitre. Every 1% increase in alcoholic strength is $28.10 per hectolitre if the volume exceeds 30%.

If your business involves any of the above, it is best to check with the local Hong Kong authorities about the possible custom duty rate your dutiable goods may be subject to.

More information can be found at the Hong Kong Customs and Excise Department here.

Hong Kong Custom Duty Rate & Dutiable Goods