In this course · 5 of 8
Course 4
Sell across borders
8 lessons · 8 min
- 1Must a Hong Kong seller charge EU VAT when selling to EU customers?
- 2Must I charge UK VAT on goods shipped from Hong Kong to UK customers?
- 3Do I owe US sales tax when selling from Hong Kong to US customers?
- 4Do I need an import or export declaration for online orders shipped in or out of Hong Kong?
- 5Is selling alcohol or tobacco online legal in Hong Kong, and which goods are dutiable?
- 6Is dropshipping legal in Hong Kong, and do I need to register and pay tax?
- 7Can a Hong Kong online store sell to mainland China consumers?
- 8Does selling to mainland China create mainland tax for a Hong Kong company?
The short answer
Four categories are dutiable in Hong Kong: liquor above 30% alcohol by volume, tobacco, certain hydrocarbon oil and methyl alcohol. Duty and licensing rules from the Customs and Excise Department apply to importing, storing and trading them. Do not list them until you have checked the Customs requirements.
Customs and Excise administers the Dutiable Commodities Ordinance. The dutiable goods are liquor, tobacco (excluding smokeless tobacco and alternative smoking products), certain hydrocarbon oil and methyl alcohol.
On liquor, Customs' schedule shows that liquor with an alcoholic strength of more than 30% by volume (measured at 20 degrees Celsius) is dutiable at 100% of value, while liquor not above 30% (other than wine) is charged at 0%. Tobacco, hydrocarbon oil and methyl alcohol are charged at specific rates per unit quantity.
Where a business imports, stores, or removes dutiable goods, licences or permits may be required, and applications are made through Customs' online Dutiable Commodities System. Whether any extra approval is needed for selling these goods through a website depends on the circumstances, and Customs' published guidance does not appear to set out a separate online-sale licence, so ask Customs.
The import of alternative smoking products is prohibited, and sale to minors of tobacco is an offence.
Legal basis and sources
The law
- Dutiable Commodities Ordinance (Cap. 109)
- Dutiable Commodities Regulations (Cap. 109A)
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
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