Report Highlights:
As of Monday August 25, Macau will terminate its 15% CIF duty and
join Hong Kong as members of the extremely limited club of tax-free importers of wine and
beer. Macau’s move will greatly simplify the transshipments of wine and beer between the
two vibrant Special Administrative Regions. While both Hong Kong and Macau are part of
China, each is a separate customs territory distinct from Beijing. Traders are rejoicing nearly
as much in the elimination of the paperwork requirements as they are in the elimination of
the excise tax. For beverages exceeding 30% alcohol, Macau’s “Consumption Tax” of 10%
CIF value plus 20 Macau Pecatas (about US$2.58) per liter, will remain in force. U.S. exports
of wine and beer to Hong Kong and Macau have exploded in the wake of Hong Kong’s tax
elimination and the booming casino industry in Macau. According to U.S. Customs statistics,
U.S. wine and beer exports to Hong Kong exceeded $8 million in the first half of 2008, 132%
above 2007 levels. For Macau, January – June exports approached US$3 million, an
astonishing 1,576% increase. Post projects both Hong Kong and Macau wine imports will
continue to soar through at least 2009. Post encourages interested U.S. exporters to contact
the Agricultural Trade Office in Hong Kong for detailed information and advice on selling
product to these markets.