AGI Front

18^th November, 2005

Dear Valuable Customers / Partners,

IMPORTANT ANNOUNCEMENT

Control on Import/Export of Hazardous Electronic Wastes

Under HKSAR Waste Disposal Ordinance, Cap. 354

An important announcement from Environmental Protection Department in Hong Kong for the control of import & export of hazardous electronic Wastes / cargo. This is governed by the captioned ordinance & any violation will lead to legal prosecution and penalty without any prior warning, as the Ordinance itself set-forth.

We hereby quoted part of the most important texts of the document for your easier understanding of the prevailing law it concerns:-

Environmental Protection Department, The Government of the Hong Kong Special Administrative Region (here-in-after referred as EPD-HKSAR) writes solemnly to alert that no company or person shall import or export hazardous electronic waste, in particular used/wasted computer monitors and televisions; if one is engaged or involved in transportation, trading, or recycling of such articles.

Recently, EPD-HKSAR sees an increase in importing hazardous electronic waste from developed countries to countries in the Asia Pacific Region for improper recycling or disposal. Such practice has already caused serious environmental and health problems in the region; more important is that this is both unethical and in most cases illegal and restricted under the Basel Convention, an international treaty regulating trans-boundary movements of hazardous wastes and their disposal.

In Hong Kong, the import and export of hazardous electronic wastes are subject to permit control of the Waste Disposal Ordinance (WDO), Cap. 354. We notice that some importers have tried to bypass this control by claiming that the used electronic appliances/equipment they imported are not waste. This, however, is proved to be unsubstantiated at court recently. In several consecutive prosecution cases involving the import of used computer monitors and/or so-called scrap metal but found contained electronic waste without permit, the court unequivocally ruled that these commodities, after formal inspection by authorized party or persons, which had been abandoned by the original users overseas were considered ‘’waste’’ under the Ordinance, irrespective of whether they could be reused or had any commercial value. In other words, it is now stark clear that these commodities if found consisted of hazardous components like cathode ray tubes from overseas are hazardous waste and subject to permit control under the Ordinance.

Please note that in most cases, import and export of hazardous electronic waste are prohibited. Any person or company who imports or exports hazardous electronic wastes without a valid permit commits an offence and is liable to a fine of HKD200,000 and 6 months’ imprisonment for the first offence; a fine of HKD500,000 and 2 years’ imprisonment for the second and subsequent offences. In the case of import, the illegally imported waste shall be returned to the state of export at the expense of the importer. The offence is by all means serious. In one of the prosecution cases mentioned above, the importer who failed to follow the instruction given by the control authority to return the illegally imported waste to the country of origin was sentenced to a 2-month imprisonment suspended for 12 months together with a fine of HKD10,000.

EDP-HKSAR is resolute in curbing illegal movements of hazardous electronic waste in and out of Hong Kong and has strengthened the control in collaboration with other relevant control authorities. Traders and transportation companies are strongly advised NOT to import or export, without permit, any hazardous electronic waste, or used electronic appliances/equipment with hazardous components; otherwise, it would automatically run the risk of contravening the control by the Ordinance and being prosecuted by this department without warning.

Detailed information of Hong Kong’s waste import and export control is available at EPD’s website at http://www.epd.gov.hk/epd/ . Queries can go directly to the department at (852) 2755 5462.

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Shipment out of Hong Kong

In compliance with the Ordinance, our Export Department will carry out all necessary precautions & standard procedures. So this part of forwarding would normally not to involve your Goodselves.

Shipment into Hong Kong

However, we need your keen attention to exercise a strict screening of the description of goods before loading the shipment. Never allow shipper to submit retrospectively the description of goods to your office after shipment dispatched from any point of loading under your control to Hong Kong. Sufficient due diligence work is mandatory whenever you see the commodity name is among one of the categories mentioned in this article and/or may fall into the list of controlled items. Some overseas exporters are trying to bypass the control by mis-declaring or applying a misleading or collective name. Such mis-declaration may include ‘used’, ‘scrap’, ‘household’, ‘recycle’ or can be anything not common. When EDP-HKSAR suspects an import shipment, they are empowered by the HKSAR Government to levy cargo inspection before customs clearance. If the content is found violating the captioned Ordinance, not only the Hong Kong importer, but also the forwarding agent here (that is AGI Logistics under such instance) will be prosecuted.

If we, AGI Logistics (HK) Limited, will be charged with an offence due to your consignment without prior approval from us and unfortunately offended the captioned Ordinance, then we are definitely to hold you fully responsible for and demand you to pay us all cost to be incurred not only limited to the penalty and legal costs, etc. Please immediate take ‘’all reasonable precautions and exercise sufficient due diligence’’ now for your shipment to HONG KONG. BEFORE you send a consignment to us, when you have any doubt in the description of goods, please shall check with us in advance & obtain a formal approval. Failure of such doing, in the worst scenario, may force us to reluctantly decline handling the consignment. Whenever possible, a third-party certified surveyor attendance is a strong evidence to protect mutual interest.

We hope you have studied this announcement thoroughly & completely understand the issue. Pls acknowledge receipt by returning us a confirmation email which shall mention your Full Company name, person in charge as well as sender’s position. Pls send back to us at info@agihk.com ASAP. Thank-you for your attention & co-operation.

For further information, pls feel free to contact us.

AGI LOGISTICS (HONG KONG) LIMITED

TEL : (852) 29530288

FAX : (852) 21047686 / 21047696

CTC: KAZE CHAN GENERAL MANAGER kaze@agihk.com

JOHN LAM DIRECTOR/SEAFREIGHT john@agihk.com

GRACE TAO SEAFREIGHT MANGER grace@agihk.com

VANESSA LAM IMPORT MANGER (AIR) vanessa@agihk.com