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 manufacturi ...

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 Delt ...

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 most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...

. 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 The Trade and Industry Department of the Hong Kong Government is responsible for supporting traders and small businesses in the global market. History The Imports and Exports Department was renamed the Commerce and Industry Department in 194 ...

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 {{HongKong-stub