Hong Kong Government Denounces US Tariffs as Unreasonable and Unfair

HKSAR Government expresses strong disapproval of US’s imposition of so-called reciprocal tariff on products of Hong Kong

The Government of the Hong Kong Special Administrative Region (HKSAR) today (April 3) expressed strong disapproval of and discontent with the United States (US)’s imposition of the so-called reciprocal tariff as well as its elimination of the duty-free de minimis treatment for and imposition of duty on covered goods from Hong Kong with effect from May 2.

A spokesman for the HKSAR Government said, “The US’s measures are bullying and unreasonable, and grossly inconsistent with the World Trade Organization (WTO) rules, willfully undermining the multilateral trading system which is the cornerstone for international trade. Once again, the HKSAR Government firmly requests the US to withdraw its so-called reciprocal tariff measures.”

The spokesman said that Hong Kong, being a free port, supports and upholds free trade all along. Hong Kong has never imposed any tariffs on imported goods including those from the US. The US’s imposition of the so-called reciprocal tariff is illogical. As a separate customs territory under the “one country, two systems” principle, Hong Kong has put in place an effective system for import and export, including the origin certification system, trade declaration and manifest requirements, and has taken robust enforcement actions on this basis. The US’s allegation about the imposition of the so-called reciprocal tariff on Hong Kong products due to the risk of transshipment and evasion is ungrounded, fully showing that it is a bullying act for suppressing its competitors.

“In 2023, the US was the third largest trading partner of Hong Kong, with the total merchandise trade value amounting to US$60.3 billion. During the past 10 years, the US has realised a trade surplus of US$271.5 billion with Hong Kong, the largest among its global trading partners. The US’s measures are mere unilateral protectionism that harm the interests of all,” the spokesman added.

As for the duty-free de minimis treatment for postal items despatched from Hong Kong to the US, the US has been repeatedly changing its policies unilaterally. Hongkong Post has requested the postal administration of the US to promptly clarify the matter and should not cause inconvenience to the public. From now until May 2, Hongkong Post will temporarily maintain postal services to the US but will not collect any so-called tariffs on behalf of the US authorities.

In sum, the HKSAR Government will continue to closely monitor and assess any unilateral measures of the US that are inconsistent with fair trade and take actions to defend Hong Kong’s legitimate interests, including filing of a complaint in accordance with the WTO dispute settlement mechanism.

Incoming passenger convicted and jailed for importing duty-not-paid cigarettes and alternative smoking products

An incoming male passenger was sentenced to seven months and five days of imprisonment at the West Kowloon Magistrates’ Courts today (April 3) for importing duty-not-paid cigarettes and failing to declare to Customs Officers, in contravention of the Dutiable Commodities Ordinance (DCO), as well as for importing alternative smoking products, in contravention of the Import and Export Ordinance (IEO).

Customs officers intercepted a 38-year-old incoming male passenger at Hong Kong International Airport (HKIA) on February 6. About 34 000 duty-not-paid cigarettes and 12 000 alternative smoking products were seized from his personal baggage. He was subsequently arrested. Upon investigation, Customs officers also discovered that the passenger had arrived at HKIA on July 10, 2024, and had not yet claimed his personal baggage, which contained about 14 000 duty-not-paid cigarettes. As such, a total of about 48 000 duty-not-paid cigarettes and about 12 000 alternative smoking products, with a total estimated market value of about $239,000 and a duty potential of about $163,000, were seized in this case.

Customs welcomes the sentence. The custodial sentence has imposed a considerable deterrent effect and reflects the seriousness of the offences.

Under the DCO, tobacco products are dutiable goods to which the DCO applies. Any person who imports, deals with, possesses, sells or buys illicit cigarettes commits an offence. The maximum penalty upon conviction is a fine of $1 million and imprisonment for two years.

Under the IEO, any person who imports an alternative smoking product into Hong Kong commits an offence. The maximum penalty upon conviction is a fine of $2 million and imprisonment for seven years.

Members of the public may report any suspected illicit cigarette activities to Customs’ 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).