G. Duty on Liquor

G. Duty on Liquor

Since 2008, Hong Kong has fully exempted wine and beer from dutiable commodities duty; that is, no duty is payable on the importation of wine and beer, and the statutory duty rate on such products in Hong Kong is 0%. In addition, non‑wine liquor with an alcoholic strength not exceeding 30% (for example, certain liqueurs and Japanese sake) are likewise subject to a 0% duty rate.

Spirits with an alcoholic strength above 30% remain dutiable goods. With effect from 16 October 2024, the duty rate has been changed to a two‑tier system: for each bottle of spirits not exceeding 1 litre in volume, duty is calculated on its “import value”, with the first $200 taxed at 100%, and the portion exceeding $200 taxed at 10%. Where a single container exceeds 1 litre, its value is first converted to a “value per litre” and the same formula of 100% on the first $200 and 10% on the remainder is then applied.

Offences involving duty-not-paid liquor

It is illegal to import, export, handle, manufacture, possess, sell or purchase duty-not-paid liquor. The maximum penalty for such offences is a fine of $1,000,000 and imprisonment for 2 years.

If a person is in possession of 5 litres or more of liquor in a container bearing the mark HKDNP, or in a container bearing a mark indicating that the liquor is for export from Hong Kong or for ships’ or aircraft stores, the liquor is presumed, in the absence of evidence to the contrary, to be duty-not-paid.

Passengers, duty-free concessions and declarations

Passengers aged 18 or above may bring into Hong Kong, for personal use, up to 1 litre of alcoholic liquor with an alcoholic strength by volume above 30%. This 1 litre is duty‑free. If the passenger holds a Hong Kong Identity Card, he must have stayed outside Hong Kong for not less than 24 hours in order to enjoy this concession. Any spirits exceeding the duty‑free limit, or brought in for commercial purposes, must be declared to the authorities and are subject to duty.

Under section 34A of the Dutiable Commodities Ordinance (Cap. 109), if a passenger brings in spirits exceeding the 1litre dutyfree concession, they must voluntarily declare them to the Customs and Exercise Department and pay duty. Failure to declare, or making a false or incomplete declaration, is an offence; upon conviction, the maximum penalty is a fine of $1,000,000 and imprisonment for 2 years.

For individual cases, the Customs and Excise Department may, instead of instituting criminal prosecution, deal with the matter under a “compounding of offences” arrangement. The person concerned must pay a penalty equal to 5 times the amount of duty payable plus an additional $5,000.

It should be noted that the duty-free concession for passengers only applies to alcoholic liquor that are carried into the territory as accompanied baggage and are for personal use. It does not apply to goods for trade, commercial purposes, or mail orders. Where spirits are brought into Hong Kong via online purchase, courier, or postal services, the 1-litre duty-free concession for passengers does not apply, regardless of the quantity or whether the goods are ultimately for personal consumption. The importer or consignee must pay all applicable duties in full based on the customs value of the goods, and a licensed importer must handle the declaration and customs clearance procedures on their behalf.