On 21 March, the Guangdong Provincial Tax Service unveiled 30 tax measures geared towards facilitating a modern industrial system. The measures aim to stimulate the drive for science and technology innovation through implementing preferential tax policies such as a lower income tax rate for high-tech enterprises and value added tax refunds for the purchase of domestic-made equipment by R&D institutions. They are also designed to strengthen emerging future industries and give rise to taxation systems and collection and administration measures suited to various industries. Qualifying modern service enterprises in Hengqin and Nansha are eligible for a reduced enterprise income tax rate of 15%. Traditional industries will also be helped to undergo transformation and upgrading. Steps will be taken to enhance the alignment of tax regulations in Guangdong, Hong Kong and Macao in a bid to optimise the regional industrial structure. Industrial openness and co-operation will be deepened by helping “going out” businesses and individuals to better understand the tax policies of their investment destinations and implementing “refund-upon-departure” measures for cross-border e-commerce exports to overseas warehouses. Preferential tax policies and services will also be offered to attract high-calibre talents.

The U.S. Department of Energy recently took certain regulatory actions involving consumer products and certain commercial and industrial equipment, showerheads, electric spas and manufactured housing.

A number of electronic products have been exempted from President Trump’s reciprocal import tariffs but could soon be subject to Section 232 tariffs instead.

The imposition of new export controls on specific medium and heavy rare earth materials has been jointly confirmed by the Ministry of Commerce and the General Administration of Customs. Following the 4 April announcement, with immediate effect, a licence from the relevant State Council Commerce Department is required for all exports of samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium (as well as a number of other controlled items) in accordance with China’s Export Control Law and its Regulations on the Export Control of Dual-Use Items. In addition, it is now incumbent on exporters to ensure all such items are properly classified, with all relevant customs declaration forms clearly stating whether or not controlled items are being shipped (with dual-use item control codes specified where applicable). Should there be any uncertainties with regard to the information provided, China Customs reserves the right to delay or cancel the shipments concerned.

Hong Kong is a world-renowned sourcing centre for houseware products, including tableware, kitchenware, non-electric domestic cooking/heating appliances and sanitary ware, made from a large range of materials. In response to intensified competition from indigenous Chinese companies and other Asian suppliers, Hong Kong companies are shifting from original equipment manufacturing (OEM) to original design manufacturing (ODM). A few also develop and market their own brands. They are moving upmarket by using more advanced technology in production, providing innovative designs and improving product quality.

CBP has reclassified certain earrings with cubic zirconia as jewellery of semi-precious stones under HTSUS 7116.20.0500 (3.3 percent duty) rather than as imitation jewellery of plastic under HTSUS 7117.90.7500 (duty-free) and is seeking public input through 26 April on a proposal to reclassify certain optical patch panels.

The ASEAN retail e-commerce sector is growing rapidly, this is particularly the case for the bloc’s six largest economies – Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam (the ASEAN-6). In order to assist Hong Kong SMEs as they look to refine their ASEAN-oriented e-commerce strategies, HKTDC Research conducted a quantitative survey of over 1,800 online shoppers in the ASEAN-6 countries, seeking to identify their spending patterns, preferences, and perceptions of Hong Kong brands.

The House of Representatives on 10 March approved legislation that would prohibit the U.S. Department of Homeland Security from using appropriated funds to procure batteries made by certain mainland Chinese entities, effective from 1 October 2027.

According to the State Administration for Market Regulation, a global standard for senior care robots was released recently by the International Electrotechnical Commission (IEC).

The European Commission has published a ‘Call for Evidence’ from any interested parties on the EU’s rules on the environmental impact of professional refrigeration products. The notification states that, although annual primary energy savings are expected to reach an estimated 15.6 TWh by 2030, this current initiative will review the ecodesign and energy labelling requirements to assess whether further energy and resource savings can be attained. Hong Kong traders wishing to provide feedback may do so by the deadline of 31 March 2025.