Overview of import/export tax in Hong Kong.

Overview of import/export tax in Hong Kong

We have put together an overview of the import/export taxes in Hong Kong.

Hong Kong is one of the world’s busiest ports, and many products are imported into and exported out of Hong Kong every year. If you wish to import or export from Hong Kong, it is necessary to know what types of taxes you are subject to.

Let’s find out more.

What are the import/export taxes in Hong Kong?

There are three types of taxes that are involved in the import and export of goods and services.

These taxes include:

  • Custom fees:
  • GST or VAT
  • Excise duty

Because Hong Kong is a free port, it does not impose VAT, GST or custom fees on exports and imports.

However, excise duty is imposed on four types of commodities which are liquors, tobacco, hydrocarbon oil and methyl alcohol.

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Excise duty rates in Hong Kong

Liquors

Liquor with an alcohol content per cent of less than 30 are not subject to excise duty, and this includes wine and any other liquor.

Liquor containing more than 30% alcohol content is subject to an excise rate of 100%.

In the case that the beverage will be re-exported and not consumed in Hong Kong, no excise duty will be imposed.

Tobacco

Excise duty rates imposed on tobacco (per kilogram) are as follows:

  • Every 1,000 cigarettes – HKD 1,906
  • Cigars – HKD 2,455
  • Chinese produced tobacco – HKD 468
  • Other manufactured tobacco except tobacco intended for the manufacture of cigarettes – HKD 2,309

For cigarettes that are longer than 90mm, each additional 90mm will be treated as a separate cigarette.

Hydrocarbon oil

According to the Customs and Excise Department, excise duty is levied on hydrocarbon oil at the following rates per litre:

  • Aircraft spirit – HKD 6.51
  • Motor spirit (leaded petrol) – HKD 6.82
  • Motor spirit (unleaded petrol) – HKD 6.06
  • Light diesel oil – HKD 2.89
  • Ultra-Low Sulphur diesel – HKD 2.89
  • Euro V diesel – HKD 0.00

Methyl alcohol

Methyl alcohol or any combination containing methyl alcohol is subject to excise duty at a rate of HKD 840 per hectolitre.

In the case that methyl alcohol strength exceeds 30%, each 1% will be imposed to an additional rate of HKD 28.10 per hectolitre.

Conclusion

Hong Kong is a free port and does not levy any tax or custom fees on imports and export. However, only four dutiable commodities are subject to excise duty. Feel free to contact Acclime if you have any enquiries.

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