Home
About Us
Hong Kong To Retain Anti-Parallel Trading Measures
09/05/2016 12:00
After having earlier taken action to prevent Chinese nationals from profiting from selling goods purchased in Hong Kong tax-free in the Mainland, Hong Kong has confirmed it will retain parallel trading countermeasures.
Hong Kong decided to operate a "one trip per week" for Chinese nationals in an effort to curtail parallel trading activity, whereby Mainland parallel traders were taking advantage of the multiple-entry visa policy to buy stock tax-free in Hong Kong to resell in Mainland China at a profit. They were purchasing supplies in Hong Kong, which does not charge a sales tax, and taking them across the border to the Mainland in small quantities to avoid paying import duties.
As a consequence of the traders' activity, law enforcement agencies in Hong Kong had to implement a series of countermeasures to reduce the nuisance caused, and to improve order at railway stations and boundary control points.
Secretary for Commerce and Economic Development Gregory So said that parallel trading activities have now subsided. However, the Government will continue to take targeted measures against such activities and monitor the effect of the one trip per week measure, he said. It will liaise with the Chinese Government on the overall arrangements for Mainland residents travelling to Hong Kong.
Hong Kong decided to operate a "one trip per week" for Chinese nationals in an effort to curtail parallel trading activity, whereby Mainland parallel traders were taking advantage of the multiple-entry visa policy to buy stock tax-free in Hong Kong to resell in Mainland China at a profit. They were purchasing supplies in Hong Kong, which does not charge a sales tax, and taking them across the border to the Mainland in small quantities to avoid paying import duties.
As a consequence of the traders' activity, law enforcement agencies in Hong Kong had to implement a series of countermeasures to reduce the nuisance caused, and to improve order at railway stations and boundary control points.
Secretary for Commerce and Economic Development Gregory So said that parallel trading activities have now subsided. However, the Government will continue to take targeted measures against such activities and monitor the effect of the one trip per week measure, he said. It will liaise with the Chinese Government on the overall arrangements for Mainland residents travelling to Hong Kong.
Source: Tax News
Các tin khác
- New-generation FTAs open wider export opportunities to Middle East and South Asia (15/06/2026)
- Updated regulations on foreign trade management and import quotas (15/06/2026)
- Mandatory traceability for high-risk goods from July 1st: What should businesses prepare for? (15/06/2026)
- Tariff pressure is forcing businesses to restructure in order to adapt. (15/06/2026)
- Coffee Citizens model aims to lift Vietnamese value chain (15/06/2026)
