Hong Kong's Special Administrative Regional Government decided to abolish a duty on wine imports that previously stood at 40 percent in order to encourage wine imports.
DelWine was one of the first in the world to report and laud the exciting news and had predicted that the policy must be to make Hong Kong as a hub-especially because of the proximity to China and the increasing influence of Australia and New Zealand. In one stroke, they pre-empted Singapore who could have been a major contender, but for their uncertain, confusing and incomprehensible import policy that does not encourage the imports with a free hand to export further to the neighbouring countries. Even Macau followed it later, making it duty-free imports.
U.S. seems to be one of the big beneficiaries. The U.S. Department of Commerce figures show that the wine exports to Hong Kong rose by more than 500 percent year-on-year through February 2009. U.S. exports there reached $18 million in value in 2008, double of what they were in 2007 according to a report by the winebusiness.
"Hong Kong has been a top three export market for U.S. wines ever since," California Wine Institute regional director for emerging markets, Eric Pope said while speaking during an event held at the Culinary Institute of America in Napa Valley where John Tsang, Financial Secretary for Hong Kong's Regional Government had gone to promote Hong Kong as a wine market hub.
Eric was in India last December heading a delegation of around 9 producers to promote Californian wines and attended the IFE- India 2008 wine show where he also conducted a conference on California wines, organised by the Indian Wine Academy.
Tsang and his country made the decision to waive the import duty last year. He said the decision to lift the duties and forego that revenue was made to promote trade and create related jobs in sales, storage and logistics. "We aim to be one of the world's great wine trade and distribution centers," he said.
He added that their vision was to make Hong Kong the platform for getting wine into other regions and for promoting wine market growth throughout Asia. Hong Kong customs has reportedly teamed up with the industry and overseas enforcement agencies to exchange information on counterfeiting. Tsang claimed that no cases of counterfeit wine have been recorded in recent years.
He also said an accreditation system for cellars to establish standards for storage is in the works, which would be a first for the industry. As Indian importers would appreciate it, this will be yet another step to make it as a hub. It would soon make sense for them to consider importing from Hong Kong as wines from different countries can be consolidated at one location.
In the past year, Hong Kong hosted ten wine auctions, the first such sales in the city for more than a decade, including two by U.S. auction houses, one of which drew more than $8.2 million and was reported by delWine.
Hong Kong's trade development council organized the inaugural Hong Kong International Wine and Spirits Fair last year. The fair will be held again this year in early November. |