Hong Kong Advantages - The Closer Economic Partnership Agreement (CEPA)

The Closer Economic Partnership Agreement (CEPA) was signed in 2003 by the Central People's Government and the Government of the Hong Kong Special Administrative Region and came into full effect from 1 January 2004. It provides preferential access to the Mainland market and reduced tariffs for certain enterprises and individuals in Hong Kong, whether locally or foreign-owned.

Strategically, it opens a new chapter in cross-border trade and investment between Hong Kong and the Mainland and it reinforces Hong Kong's role as a bridge between China and the rest of the world. In essence, CEPA is a World Trade Organisation (WTO)-compliant, free trade agreement.

CEPA currently affects:
- trade in services,
- trade in goods, and
- trade and investment facilitation.

CEPA will evolve over time and new benefits will be introduced in phases.

This means that CEPA-qualified enterprises and individuals in Hong Kong, will have earlier and in some instances more privileges than will ultimately be available when doing business with the Mainland, following its accession to the World Trade Organisation (WTO).

For example, jewellery (a CEPA zero import tariff product) exported by a CEPA qualified Hong Kong enterprise or person, could enjoy zero import tariff. The same item exported once the Mainland has acceded to WTO will suffer a tariff rate of 20-35%.

These CEPA benefits are exclusive to Hong Kong no other jurisdiction in the world can enjoy these preferential market access and import tariff rules. This package further strengthens Hong Kongˇs position as the ideal location from which to do business with China and underlines Hong Kongˇs importance as an international trade and business centre.

The following documents are prepared by InvestHK:

Download an overview of the steps to receiving CEPA benefits (85k, PDF)
Download CEPA benefits (529k, PDF)