Hong Kong and Sri Lanka's trade relationship is both dynamic and significant, underpinned by robust trade volumes and diversity of imported goods. Sri Lanka Export Development Board (EDB) reported that the total export value from Hong Kong to Sri Lanka reached a substantial US$727.39 million in 2021. Predominantly, these imports include products from key sectors like electronics, machinery, and textiles, as found by World Integrated Trade Solutions (WITS), which not only highlight Hong Kong's industrial capabilities but also cater to the demands of the Sri Lankan market.
In this article, we'll explore the process of importing into Sri Lanka from Hong Kong, highlighting the importance of understanding import procedures, customs regulations, documentation, and packaging standards.
Understanding customs regulations
1. Calculating duties and taxes
When exporting from Hong Kong to Sri Lanka, understanding the customs regulations is crucial. Duties and taxes are a significant aspect of the export and import process. These fees vary based on the type of product and its value. Importers should be aware of Sri Lanka’s tariff schedules and calculate costs accordingly.
Free trade agreements (FTAs) play a pivotal role, as they facilitate easier and often cheaper cross-border trade by reducing or eliminating tariffs, hence fostering more efficient and cost-effective trade. Currently, while there is no direct FTA between Hong Kong and Sri Lanka, talks between Beijing and Colombo over a free-trade agreement that began in 2014 have recently resumed, according to the South China Morning Post (SCMP). This potential agreement could significantly impact trade dynamics and tariffs in the future. Regional agreements and trade policies might influence tariffs.
2. Identifying restricted & prohibited items
When considering importing from Hong Kong into Sri Lanka, it's essential to take into account both the export regulations of Hong Kong and the import regulations of Sri Lanka. The Hong Kong Special Administrative Region (HKSAR) has stringent laws governing the exportation of certain items, and similarly, Sri Lanka imposes strict import rules. In Hong Kong, the list of prohibited or controlled items includes:
- Dangerous drugs
- Psychotropic substances
- Controlled chemicals
- Antibiotics
- Arms and ammunition
- Weapons
- Fireworks
- Strategic commodities
- Rough diamonds
- Specific types of telecommunication equipment
Restrictions also apply to the movement of the following goods:
- Animals
- Plants
- Endangered species
- Game
- Meat
- Poultry
- Eggs
- Powdered formula
Violations of these regulations can lead to serious legal consequences. Passengers or businesses attempting to transport these items into or out of HKSAR without the required license, permit, health certificate, or written permission will face legal prosecution. Moreover, these items are subject to seizure and confiscation.
