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Hong Kong Commissioner for Economic and Trade Affairs, USA, Mr Donald Tong, urged the US wine industry to make use of new facilitation measures to tap into the tremendous growth potential of Hong Kong as a regional wine trading hub.
Addressing close to 300 guests at the "Wine Boom in Hong Kong" reception at the Asia Society in New York City in the evening of May 26 (New York time), Mr Tong said wine exporters in Hong Kong can pre-valuate their wine before exporting it to the Mainland at designated ports, shortening clearance time to one to seven working days.
This is part of the program implemented with the Mainland Chinese Customs to make it easier to export wine from Hong Kong to the Mainland since June 2010.
The Mainland Government is conducting this program on a pilot basis at Shenzhen and plans to extend this to other major Mainland ports later.
"A key point is that these measures would only be applied to wine exports from Hong Kong to the Mainland. No other ports can do it," Mr Tong said.
"US companies can easily enjoy these benefits by setting up offices in Hong Kong," he added.
With the Mainland market growing to as much as US$870 million by 2017, or about 60% of the Asian market, excluding Japan, according to market analysts, Mr Tong said the potential for further growth in business opportunities for both wine traders and wine auction houses in Hong Kong was huge, given Hong Kong's proximity and cultural affinities with Mainland China, which is the world's fifth largest wine consumer.
On the booming wine business in Hong Kong, Mr Tong said the elimination of wine duties in 2008 had helped create a most conducive environment for wine trading and related business.
"With no VAT or sales tax, Hong Kong is now the first free wine port among major economies," Mr Tong said.
Wine imports into Hong Kong were around US$370 million in 2008, but breached the US$1 billion mark in 2010. Over the same period, wine imports from the US went up to around US$57 million, nearly a five-fold increase.
Hong Kong has also seen a surge in the number of fine-wine auctions held in Hong Kong in the past few years.
"Our location obviously makes it very convenient for Asian collectors, particularly those from the Mainland China, to take part in our auctions. The total wine auction sales in Hong Kong reached over US$160 million and now Hong Kong, together with New York, has become one of the two largest fine wine auction centres in the world," said Mr Tong.
Hong Kong is the third largest market for US wine and the US has become the city's fourth largest wine supplier. "With our forecast of 5% to 6% economic growth this year, our wine industry anticipates another year of very good business," said Mr Tong.
During his visit to New York City, Mr Tong was also the keynote speaker at a breakfast session. Mr Tong highlighted Hong Kong's bridging role for US business to grow in China and Asia, as well for Chinese capital to invest and expand overseas.
The event was co-organised by Hong Kong Economic and Trade Office New York and the five Boro Chambers of Commerce of New York City. Over 120 business executives attended.
Ends/Friday, May 27, 2011
Issued at HKT 12:25
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