VI.  TRADE REGULATIONS AND STANDARDS


A.   Tariffs and Import Taxes

     The Hong Kong Government levies no import tariffs.  However,
     domestic consumption taxes (referred to as duties in Hong Kong) are
     imposed on certain goods, including tobacco, soft drinks, alcoholic
     beverages, methyl alcohol and some fuels.  These taxes are levied
     equally on local manufactures and imports.

     Useful contact for inquiring about specific products:

          Customs and Excise Department
          8/F, Harbor Building, 38 Pier Road
          Central, Hong Kong
          Tel  :    (852) 852-3324
          Fax  :    (852) 541-9827 (Dutiable Commodities Division)


B.   Customs Valuation

     Customs valuation is only an issue for the taxable items listed in VI A
     above.  The tax on beer and tobacco is by volume.  The tariff on
     distilled spirits, wine, and petroleum products is by both volume and
     value.  The value is based on the bill of lading as long as it represents
     a reasonable market value.  The automobile tariff is based on both
     retail price and engine size.


C.   Import Licenses

     Textiles are subject to import and export licensing because of the
     territory's obligations under agreements with the USA and other
     countries.


D.   Export Control

     The Hong Kong Government imposes restrictions on the export of
     high-technology products to COCOM-proscribed countries, such as
     the People's Republic of China.  Restrictions on trade with China were
     relaxed significantly by the United States in 1991, allowing Hong Kong
     to re-export to the PRC on a more liberal basis.  Textiles are subject
     to import and export licensing because of the territory's obligations
     under agreements with the USA and other countries.


E.   Import/Export Documentation

     U.S. standard trade documentation is acceptable.


F.   Temporary Entry

     No problem, there are no duties which need to be waived.


G.   Labeling, Marking Requirement

     Non-tariff barriers such as labeling requirements, standards, etc.
     are also virtually nonexistent.


H.   Prohibited Imports

     The import of munitions, firearms and fireworks is strictly forbidden.


I.   Standards (eg. ISO 9000 Usage)

     Few product safety standards are required for the domestic Hong
     Kong market.  What little there are relate to fire control (gas and
     electricity) in the city's high rise buildings.  Other standards of
     quality and safety control imposed on domestic manufacturers are for
     goods made for export or re-export outside the territory.  It is fairly
     safe to assume, therefore, that industrial or retail products built to
     American standards will have no problem selling in Hong Kong.

     Another guideline to use regarding quality control is the "ISO 9000"
     series, published by the International Organization for
     Standardization (ISO).  These standards, now in the process of being
     adopted in Hong Kong via the Hong Kong Quality Assurance Agency,
     provide a framework for all types of manufacturing industry.  The
     local Housing Authority has also adopted ISO 9000 for all of its
     consultants/contractors, and the Works Branch is considering
     extending ISO 9000 to engineering and architectural consultants by
     1995.  The Provisional Airport Authority gives preference to suppliers
     and contractors with ISO 9000 certification.


J.   Free Trade Zones/Warehouses

     There are no special zones since the whole territory is basically a free
trade zone.


K.   Special Import Provisions

     None


L.   Membership in Free Trade Arrangement

     Hong Kong is a GATT member in good standing.