Report Highlights:
Hong Kong imports of US wines are expected to reach a new record of US$25 million and 6.5 million liters in 2009, a surge of 34% and 13% respectively over 2008. US wine exports to Hong Kong soared over 250% last year in response to the HKG eliminating the 40% excise tax on wine, making it one of the only tax free wine markets in the world. The surge in exports has made Hong Kong our fastest growing and 4th largest market behind Canada, the EU and Japan, up from the 9th largest in 2006 The U.S. has also moved up to be Hong Kong’s 3rd

For the first 4 months of 2009, Hong Kong imports of wine exceeded US$133 million and 10.4 million liters, representing an increase of 58% and 41% respectively over the same period in 2008. In addition to being a vibrant local market, Hong Kong also serves as a gateway to wine markets in the region because of its prime geographical location, superior logistical infrastructure and sound legal and financial system. This allows U.S. exporters to access China and other Asian markets while remaining protected by the sanctity of a Hong Kong contract. For the first 4 months of 2009, HKG statistics indicate traders re-exported 19% of U.S. wine imports and retained 81% for local consumption. Wine imports from all sources in 2009 are expected to reach US$400 million and 35 million liters. Exporters of U.S. wine are encouraged to contact ATO Hong Kong or check the ATO Hong Kong website for information on upcoming trade shows and other promotion opportunities.