Hong Kong – Reducing Transaction Costs To Boost External Trade

By Author: martin well
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Having a large market of its own, Hong Kong is a strong trading partner with an open trading environment. Inherently linked to China, Hong Kong is an attractive destination for expansion with investment incentives.

When doing business overseas, having a good understanding of the viability of expanding your business is very important. In any foreign locale it is the issues of regulations, laws and the cost of opening and running your business that probably play an important role in deciding whether to go ahead or not. If you have already expanded to Hong Kong and China, then here is a glimpse of the changes in the transaction costs.

With an aim to boost external trade by reducing transaction costs, Hong Kong proposes to reduce its import and export declaration charges (TDEC) by half.

The proposal which is subject to the Legislative Council's consent can save HKD 9,000 annually (on an average) for each company that lodges trade declarations.

At present, individuals who import, export or re-export ...
... any article except for the exempted ones, require lodging an import or export declaration with Hong Kong's Commissioner of Customs and Excise within 14 days in addition to paying the TDEC.

The TDEC for imported food items is HKD 0.5 per declaration regardless of value. For other imported goods and for all exports regardless of the origin, the charge is HKD 0.5 for the first HKD 46,000 worth of goods and HKD 0.25 for each additional HKD 1,000 or part thereof.

Expert guidance can make all the difference

It is prudent to seek the help of professionals who can assist you in your venture when expanding business overseas. Understanding the changes in taxes and regulations can be a mammoth task, and it is therefore essential to take professional help and work with someone who is aware of the legal system of the given country. The fear of the unknown can be a big impediment in your international business expansion, but partnering with an expert can be the best solution. A professional partner can provide unlimited assistance in offering global integrated solutions in all areas of business, like HR, legal, tax, finance, or international financial accounting.

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