The Outward Processing Arrangement (OPA) concerns the
textile industry
The textile industry is primarily concerned with the design, production and distribution of yarn, cloth and clothing. The raw material may be natural, or synthetic using products of the chemical industry.
Industry process
Cotton manufac ...
in
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...
and the
People's Republic of China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's List of countries and dependencies by population, most populous country, with a Population of China, population exceeding 1.4 billion, sli ...
. It states that Hong Kong manufacturers can subcontract subsidiary and
finishing processes to mainland factories, as long as the "major transformation" of the garment takes place in Hong Kong.
Major transformation, however, only needs to amount to 10% of total cloth processing. Any products exported to China for outward processing must be reimported to Hong Kong within 2 months.
Effective from 10 June 2005, Hong Kong manufacturers can apply to the
Trade and Industry Department of Hong Kong for exemption of
export duty in association with the processed garments as they are being exported from China.
References
External links
Outward Processing Arrangement (OPA): Exemption from Mainland Export Duty(archived from th
on 26 September 2007): links to related publications by the Hong Kong Trade and Industry Department
Commercial treaties
Economy of Hong Kong
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