By HK government law, as the consignee, HKCOLO has to lodge an import declaration application with the Custom (Census and Statistic dept) for the received shipment.

Under the Import and Export (Registration) Regulations, Chapter 60, every person who imports or exports any article, is required to lodge an accurate and complete import/export declaration within 14 days after the importation/exportation of the articles with the Commisioner of Customs and Excise. Otherwise, a penalty charge will be required to be paid. Prosecution may be initiated against any person who fails to lodge the required declaration, or knowingly or recklessly lodges any declaration that is inaccurate in any material. The Commissioner of Customs and Excise has also authorised specific officers of the Census and Statistic Dept to enforce the regulations relating to the ledgment of accurate and complete import/export declarations.

The categories of exempted articles as stipulated in regulation 3 of the Import and Export Registration) Regulations are as follows:

• Any article valued at less than HK$1,000 (about USD128), which consists solely of a sample of any product and is intended, to the satisfaction of the Commissioner, to be used for the purpose of advertising the article of which it is a sample.

• Any article which consists solely of, and is marked clearly as, advertising material and which is supplied free of charge.