Business opportunities
Austrade's business development specialists have prepared a select range of market profiles with potential business opportunities and to assist in your exporting investigations. Please see the list of industries at the end of this profile that you may be interested in.
In conjunction with the market profiles, the Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.
Business etiquette
Business hours in Hong Kong:
- Government offices, most European firms and the larger Chinese business houses are open Monday to Friday 9.00am–5.00pm with an hour for lunch, and Saturday 9.00am–1.00pm.
- Many Chinese businesses open from 9.00am–6.00pm or later, Monday to Saturday.
- Major department stores open from 10.30am–10.00pm, Monday to Sunday.
- Many Chinese shops keep extended hours, opening from 10.00am–10.00pm daily.
- The majority of banks are open from 9.00am–4.30pm, Monday to Friday; Saturday 9.00am– 12.30pm.
Business practices:
- Although Hong Kong is a Westernised society, Hong Kong Chinese business people still retain their local customs and practices, which have a profound effect on business relationships.
- Gifts – The exchange of gifts is not widely practised in business in Hong Kong.
Business cards – The exchange of business cards is a must in Hong Kong so it’s advisable to carry a large number on you. Business cards should be presented and received with both hands.
- Establishing contacts and networks – Exporters should send as much documented information about their companies, products and services as possible in advance of their visit. Business visitors must remember to follow up on their meetings in Hong Kong when they return to Australia. The quality of your agent or representative’s contacts is crucial, and business introductions are vital, as companies do not deal with unknown or recommended contacts.
- Business entertainment – Dinners and lunches with local representatives and customers help to develop networks. Seating should be arranged so that the Australians are spaced evenly with the Chinese guests.
- Correspondence – Answer enquiries, proposals, correspondence and invitations as soon as possible. At the very least, immediately send an acknowledgement stating that an answer will follow shortly. If you do not show sufficient interest and speed in your correspondence, your potential customer will easily find another firm who will!
- Face – Avoid embarrassing Chinese in the presence of others. To avoid the person losing face, discuss any criticisms in private. In some cases, it may be helpful to use an intermediary to convey criticism, particularly with someone of high social status.
- Punctuality – Chinese place importance on punctuality and Australian visitors should do their best to avoid arriving late at appointments. Itineraries should take this into consideration and allow adequate time to move from one appointment to the next.
- Forms of address – Many Hong Kong business people will have an English first name, used with a Chinese family name, eg. Peter Chan. In this case, the family name is used last, as in Australia. Normally when a Chinese name is written, the family name comes first, with the given name following, eg. Mr Chan Tai-Man would be addressed as Mr Chan. When addressing business correspondence to Hong Kong, all names should be written in full, with titles included.
Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.
Tariffs and regulations
Import restrictions (see also 'Special certificates')
Licences are issued by the License Branch of the Trade and Industry Department. In certain cases, import licence applications must be endorsed by other Hong Kong departments. Validity periods of licences vary from 28 days for textile products to one year for non-strategic dutiable commodities.
Import licences are required for the following items:
- rice (also subject to quota arrangements)
- frozen meat and poultry (must be supported by a valid health
- certificate issued in the country of origin)
- agricultural pesticides
- radioactive material and irradiating apparatus
- ozone depleting substances (also subject to quota arrangements)
- pharmaceutical products and medicines
- textile products
- arms and ammunitions
- radio transmitting equipment
- explosives
A range of high speed ADP apparatus and components Import licences, issued by the Crop Division of the Agriculture, Fisheries and Conservation Department, are also required for a range of plant products, and must be supported by phytosanitary certificates issued in the country of export.
Imports of live animals must be covered by import permits issued by the Agriculture, Fisheries and Conservation Department, and must be supported by health certificates issued in the country of export.
Imports of flora and fauna listed by the Convention on International Trade in Endangered Species (CITES) also require import licences issued by the Agriculture, Fisheries and Conservation Department.
Only pharmaceutical products and medicines, which have been registered with the Hong Kong Pharmacy and Poisons Board may be imported for local sale or distribution. Health certificates may also be required to satisfy local importer's trading practices.
Import permits are valid for periods up to six months. Import permits are required for milk products from the Health Department of the HKSAR Government prior to import.
Sand permits issued by the Civil Engineering Department are required for the import of sand in excess of 100kg.
Tariff
Customs duties expressed in specific amounts per measure are levied on a limited range of items, including:
- liquor
- tobacco products
- hydrocarbon oils
- methyl alcohol
All importers of dutiable goods must be licensed with the Customs and Excise Department. The department issues registered importers with a removal permit to control the import and movement of dutiable commodities.
Packing, marking and labelling
There are no special packing requirements. In general, extreme humidity may cause rust and mildew and goods likely to be affected should be packed in weatherproof materials. Dangerous goods must be marked with labels indicating the appropriate usage.
Prepacked foodstuffs are subject to specific labelling regulations which require the following details to be indicated on the immediate packing:
- The name or designation of the product.
- A list of ingredients, in descending order of weight or volume, headed or preceded by the word ingredient, or a statement which incorporates this word.
- A statement of special storage conditions or instructions for use.
- The numerical count, net weight or net volume.
- The name and address of the manufacturer or packer.
- An indication of minimum durability (in both English and Chinese), expressed in terms of date, month and year, and in that order.
With the exception of the preceding requirement regarding expiry dates, labelling may be in either English or Chinese, or in both languages.
Weights and measures
The metric system must be used in all documents. Failure to do so will prohibit the import.
Insurance
Normal commercial practice.
Methods of quoting and payment
Quotations are usually on CIF basis. Payment is usually by letter of credit or documents against payment.
Public health requirements (see also 'Special certificates')
Regulations covering the import of animals and animal products from Australia vary with the type of animal and the region of origin.
Phytosanitary certificates must accompany shipments of live plants and potting mixture.
Sanitary health certificates issued by the appropriate authorities in the country of origin must accompany shipments of animals and their products.
Foodstuffs are subject to random testing. Only certain foodstuffs such as dairy products and frozen confection must undergo extensive laboratory testing.
Food containing preservatives or antioxidants should conform with the details specified in the HKSAR Government Preservatives in Food Regulations.
Pharmaceuticals must be registered with the Pharmaceutical Registration Section of the Department of Health.
Goods prohibited entry into Hong Kong comprise dangerous goods, arms and ammunition, some pharmaceutical products, medicines, radio transmitting equipment, endangered species, animals and plants, pesticides, ozone depleting substances, acetylating substances and textiles.
Documentation
Commercial invoice
No prescribed form. A minimum of two copies and fax signatures are not acceptable.
The invoice must indicate:
- A description of the goods
- Country of origin
- Quantities
- Number of packages
- Marks
- Prices
- Freight charges
- Insurance details
Bill of lading
No special regulations. If made out To Order must contain the consignee's name and address on copy bills or shipping instructions.
Packing list
May be required for piece goods imported into Hong Kong for making up and subsequent re-export to British Commonwealth countries.
Special certificates
All meat and poultry imports must be accompanied by a valid health certificate issued by the competent authority in the country of export (in Australia, the Department of Agriculture, Fisheries and Forestry-Australia). The certificate must state:
- That the meat or poultry has been examined by ante- and post-mortem veterinary inspection and has been found to be free from disease and suitable in every way for human consumption
- That the shipment has been properly packed under sanitary conditions
Generally, any person who imports goods into Hong Kong is required to lodge an Import Declaration with Customs and Excise Hong Kong within 14 days after importation of the goods. Declaration forms are available from:
Customs and Excise Collection Office
2/F Harbour Building
38 Pier Road
Central, Hong Kong
Crustaceans and molluscs may require an accompanying sanitary certificate, attesting to condition, to satisfy the local importer's trading practices.
Live plants and plant material must be accompanied by a phytosanitary certificate issued by the approved authority in the country of origin with a special endorsement attesting that the product is free from parasitic organisms. Plant import is subject to strict quarantine control and approval by the Hong Kong Agriculture, Fisheries and Conservation Department.
Pesticides entering Hong Kong are controlled under General Import Regulations and the Pesticide Ordinance. Under the Pesticide Ordinance, companies handling pesticide imports, whether for local use or subsequent re-export, must possess a pesticides licence or permit issued by the Agriculture, Fisheries and Conservation Department to trade in such products. A licence is required for pesticides registered in Hong Kong; a permit for those not registered in the Territory. Pesticides imported on a valid bill of lading are exempt from the control of the Pesticides Ordinance.
Live animals must be accompanied by a sanitary certificate issued by the approved authority in the country of origin with a special endorsement attesting that the animal is free from parasitic organisms, subject to strict quarantine control and approval by the HKSAR Agriculture, Fisheries and Conservation Department.
The prohibition on textile imports includes any natural or artificial fibre products and any combination of natural and artificial fibre products in the form of yarn, fabrics, garments or other manufactured articles. Some products are exempt and only require the issue of an import license.
Whisky imports must be accompanied by a certificate of age (minimum three years) and a certificate certifying that alcohol content is not less than 43 per cent ethyl alcohol by volume.
Taxation
Hong Kong has a low tax structure and levied only on income or profits arising in or derived from Hong Kong for the fiscal year ending March 31. Corporate tax is 17.5 per cent and personal tax is set at a 16 per cent flat rate. However, the effective rate of tax payable in any of the categories may be considerably less due to the personal allowances and reduced rates available for salaries tax. In general, direct taxation is levied under the following categories:
Property tax is payable by the owner of land or property that is not used for residential purposes. The tax is calculated at the standard rate of 15.5 per cent on the rent receivable, less 20 per cent (which means in fact, a net levy of 12.4 per cent on rent). If the owner uses the property for business purposes, it may either be exempt from payment of property tax or may offset the tax against profits tax assessed.
Profits tax is charged on any individual, partnership or corporation in business in Hong Kong. A single assessment is made on the aggregate profits, less any losses by businesses owned by a firm. Separate assessments are made on each business owned by an individual or partnership but a taxpayer who suffers a loss in one business can obtain relief against his other assessable income by electing for personal assessment. Alternatively, the loss can be carried forward and set off against future profits of the same business. Branches of foreign corporations are liable to profits tax in the same way as local companies.
Salaries tax is paid by all individuals who earn income from employment or a pension. The taxable income is limited to income arising in and derived from Hong Kong after deduction of various allowances, which vary with family circumstances.
Motor vehicles are subject to a first registration tax. The rate of tax may vary depending on the class of the vehicle and the taxable value of the vehicle. In general, the first registration tax of vehicle will be derived from the taxable value less deductions for the value of the exempted accessories (ie. the value of air-conditioning unit, audio equipment and anti-theft device) times the appropriate tax rates as shown below:
Private cars:
- Where the taxable value of the private car does not exceed HK$100,000: 40 per cent
- where the taxable value of the private car exceeds HK$100,000 but does not exceed HK$200,000: 45 per cent
- Where the taxable value of the private car exceeds HK$200,000 but does not exceed HK$300,000: 50 per cent
- where the taxable value of the private car exceeds HK$300,000: 60 per cent
Motor cycles and motor tri-cycles: 40 per cent
Goods vehicles, other than van-type light goods vehicles (LGV): 18 per cent
Van-type LGV not exceeding 1.9 tonnes permitted gross vehicle weight:
- Where the taxable value of the van-type LGV does not exceed HK$100,000: 40 per cent
- Where the taxable value of the van-type LGV exceed HK$100,000 but does not exceed HK$200,000: 45 per cent
- Where the taxable value of the van-type LGV exceed HK$200,000: 50 per cent
Van-type LGV exceeding 1.9 tonnes permitted gross vehicle weight: 20 per cent
Taxis, light buses, buses and special purpose vehicles: 4 per cent Trade declaration charge is collected on all imports (except transshipment cargo). The rate is charged at HK$0.50, where the value of the article or the aggregate value of the articles specified in the declaration does not exceed HK$46,000. Each additional HK$1000 or part thereof over the first HK$46,000 incurs an additional charge of HK$0.25.
Business travel
Hong Kong’s international airport, Chek Lap Kok, is located in Lantau Island. The best way to get to and from the airport is via the Airport Express train which takes 23 minutes from Hong Kong Station in Central to the airport, and costs HK$100. It operates daily from 6.00am to 1.30am at 10-minute intervals. Free in-town check-in service and free porter service are available at Hong Kong and Kowloon Stations.
Passengers can check in up to 90 minutes before flight, even the day before. This can prove very convenient for business travellers. A free shuttle service transports passengers between all major hotels and Hong Kong or Kowloon Station at 20-minute intervals.
The taxi fare from the major Hong Kong Island hotels to Chek Lap Kok airport is around HK$400. A taxi from Kowloon and the New Territories hotels will cost about HK$350 and HK$250 respectively. Generally allow one hour to reach Chek Lap Kok airport, except in peak hours (7.00am-10.00am, 4.00pm-7.00pm) when the trip may take one and a half hours or longer. From Kowloon and the New Territories hotels it will take around 30 minutes and 45 minutes respectively by taxi to reach the airport. All air passengers must pay a departure tax of HK$120 (which is normally included in the price of the ticket).
Hong Kong has a very efficient public transport system that makes travelling within the city easy and convenient. Rail, bus, ferry, taxi, minibuses and other public transport services offer commuters a good choice of different transport modes at reasonable fares and different levels of comfort, speed and convenient. Both Chinese and English are displayed on the vehicles or broadcasted at the stations, and most of the taxi drivers can understand some degree of English. A stored valued ticket, the ‘Octopus’ card, enables commuters to pay fares for the rails, buses, ferries and some light buses.
Taxis in Hong Kong are all licensed and air-conditioned and you can catch them to anywhere in Hong Kong except some restricted areas. Taxis are relatively cheap and plentiful and hailing from the curb is the best way to hire a cab.
Taxis of different colours serve different areas. Red – Hong Kong Island and Kowloon; Green – New Territories and Blue – Lantau Island. Pay the fare shown on the meter, however, surcharges will be added for tunnel/bridge toll, large-size luggage and pets. Price list on these charges is displayed inside the taxi.
Mass Transit Railway (MTR) is the main public transport means in the urban area, serving Hong Kong Island, Kowloon, Tsuen Wan and the airport. It also connects the KCR train (see below) at Kowloon Tong. Operation hours are generally from 6am to midnight. Train frequency is one in every one to two minutes. Ticket prices range from HK$4 to HK$23.
Kowloon-Canton Railway (KCR) runs between Kowloon and New Territories and connects with MTR at the Kowloon Tong Station. There are also through trains to Mainland China. Ticket prices range from HK$3.5 to HK$33. Light Railway Transit (LRT) runs between Tuen Mun and Yuen Long in the New Territories, with shuttle bus service for more isolated areas. Ticket prices range from HK$3.70 to HK$5.80
Bus – Most fares for urban routes are around $3. Air-conditioned buses with a higher fare are also available. The Public Light Buses are either green or red in colour, and are mini-buses that have fares similar to buses. In general, they serve places where the MTR cannot reach.
Ferries operate between Hong Kong and outlying islands such as Lamma Island, Lantau Island and Cheung Chau.
Trams serve Hong Kong Island only and the fare is the cheapest of all types of transport in Hong Kong.
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