'CEPA' is the short form of Closer Economic Partnership Arrangement. This is a free trade agreement between mainland China & Hong Kong. The mainland China government grants easier access/lower entry barrier into China markets for Hong Kong manufactured goods & 27 service industry types to enter into the mainland market.

1. Zero tariff export to China for Hong Kong manufactured products:
Some categories of 'Made in Hong Kong' products will be exempt from tariffs when exported to the Chinese mainland. Please contact us for more information.

2. Lower entry barrier for Hong Kong-based service providers:
The latest CEPA covers 27 service sectors that lower its entry barrier into the mainland China market from lowering of registered capital; lower the industry barrier requirements; allow controlling share or 100% owned etc. For information, please contact us for the application requirements for CEPA and the China Company.

Basic requirements for application of the CEPA service provider certificate:

› Is incorporated in Hong Kong

› Has operated for 3 to 5 years (depending on the sector)

› Is liable to pay Hong Kong profits tax

› Employs 50% of its staff locally

Benefits For Non-Hong Kong Companies

Overseas companies, not based in Hong Kong, can take advantage of CEPA by outsourcing to, or partnering with a CEPA-qualified manufacturer or service provider in Hong Kong.

1. Overseas manufacturers can enjoy zero tariff by sourcing “Hong Kong-made” products. For your goods to qualify as 'Made in Hong Kong', you need only satisfy simple Rules of Origin. In essence, your products must be "substantially transformed" in Hong Kong.

2. Overseas service-provider, you can partner with, or invest in, a CEPA-qualified company to benefit from easier access to the Chinese mainland.

Some figures & facts on CEPA:

› 1026 CEPA Service Provider Certificate was submitted as of Aug 2006

› Most applied industries are transportation & logistics; Distribution services; construction professional services; advertising; management consulting

› 25% in terms of value of goods that entitle to CEPA zero-tariff are exported to the Shanghai port (represent 30% of the total tax saved)

Contact Us for more information.