Trade Agreement With China Clause

Customs duties on imports from the PRC on some of these products remain high: from 27% to 35% for jewellery, from 18% to 22% for cosmetics, from 14% to 23% for watches and from 5% to 30% for electrical and electronic products. The agreement should be extended to other product categories from 1 January 2005, as proposed by Hong Kong exporters and approved by the Hong Kong and Chinese authorities. As of 1 January 2006, all exports of products originating in Hong Kong will be exempt from import duties. Hong Kong insurance companies can access the mainland Chinese market through a strategic merger with a local group as long as they comply with the conditions set by China`s WTO accession agreement (no Hong Kong company is affected). .