The Closer
Economic Partnership Arrangement, or CEPA, is a free trade deal signed
between Hong Kong and Mainland China. It offers favourable trading and
investment conditions to Hong Kong-based companies interested in
exporting goods, or expanding business, into Mainland China.
Importantly,
CEPA is non-nationality specific. As long as you satisfy the CEPA
criteria your company can benefit. This has made Hong Kong an
attractive location for overseas companies interested in expanding into
China in sectors that may otherswise have restrictions.
CEPA provisions cover three broad areas:
Trade in Goods
Almost all goods (1,510 product categories)
which qualify as 'Made in Hong Kong' can be exported duty-free to
Mainland China. Non-Hong Kong companies can benefit by outsourcing
production or partnering with a manufacturer whose products satisfy the
CEPA 'Rules of Origin'.
Trade in Services
CEPA covers a broad range of service sectors
and reduces, or removes, geographical, financial and ownership
restraints. This applies to a company of any nationality which
satisfies the following criteria:
- Is incorporated in Hong Kong
- Has a three to five year operating history (depending on the sector)
- Is liable to pay Hong Kong tax
- Employs 50% of its staff locally
To
fast-track your CEPA status, you may consider partnering with, or
investing in, a company which is already CEPA qualified.
Trade & Investment Facilitation
Hong
Kong and the Mainland China governments have agreed on a series of
measures to make business between the two economies easier and more
efficient. Measures cover customs clearance, inspections and quality
standardisation, e-business, transparency in legal issues and improving
intellectual property protection.
For more details on your business sector or product, contact one of our Invest Hong Kong sector specialists.
