• A free trade agreement¹ between Hong Kong and mainland China (China's first FTA)
• Effective from 1 January 2004
• Significant China market liberalisation (for goods and services)
• Preferential access to China's market from Hong Kong
• Offers better deal than China's WTO commitments
• Strengthens Hong Kong as your platform for China business
  

WHAT DOES IT MEAN?

• Zero tariffs on 90% of Hong Kong exports to China
• Faster/easier market access for 18 service sectors
• Lower entry thresholds for smaller players (capital/trading history requirements)
• 100% ownership of many China ventures
• Makes Hong Kong the simplest, most profitable route into/out of China
• Manufacturers in China able to use Hong Kong services

WHO QUALIFIES?

Service providers (in 18 Cepa-eligible areas):

• Company must be incorporated in Hong Kong
• Doing business in Hong Kong for past 3-5 years
• Liable for Hong Kong profits tax
• Employing 50% of staff locally
• Any nationality of company can be eligible

Manufacturers/distributors of goods (273 categories of goods covered):

• Goods must qualify as "made in Hong Kong"
• Not necessary for company to be based in Hong Kong
• To qualify, goods must be "substantially transformed" - 30% of value must be added in Hong Kong (includes R&D, design costs)
   

HOW CAN OVERSEAS COMPANIES TAKE ADVANTAGE?

Service companies

• Partner with, invest in, or buy into a Cepa-qualified firm in Hong Kong.
  Click Service sectors covered by Cepa

Manufacturers or traders of goods

• Partner with, or outsource to, a Hong Kong manufacturer (no need to be based in Hong Kong)
  

How can I benefit from Cepa? FAQs for overseas companies
Trade and Industry Department - Detailed  FAQs

¹ What is the difference between a Free Trade Agreement and a Closer Economic Partnership Arrangement? Normally FTAs are signed between two countries. Because of the 'one country, two systems' between the Chinese mainland and Hong Kong, a new name has been used. In all other ways Cepa is a FTA.