Clarification on Designating 'Kwai Chung Container Terminal' (Terminal 3) Under 'Kwai Tsing Container Terminals' Guidelines for Hong Kong Transit Cargo NMC Released

We are responding to your inquiry regarding the issuance of a Non-Manipulation Certificate (NMC) for cargo transiting via Hong Kong. Specifically, you requested confirmation on whether Terminal 3, designated as 'Kwai Chung Container Terminal' on documents, is recognized as a designated area under the Korea Customs Service guideline for 'Kwai Tsing Container Terminals (1-9).'

To summarize the conclusion: The use of the name 'Kwai Chung Container Terminal' is accepted as a designated area under the relevant guidelines. This is because 'Kwai Tsing Container Terminals (1-9)' and 'Kwai Chung Container Terminal' are terms used interchangeably in Hong Kong. The major container terminal complex is located across the Kwai Chung and Kwai Tsing districts. Therefore, 'Kwai Chung Container Terminal' refers to a part of the entire Kwai Tsing Container Terminals complex, and legally, both names refer to the same designated physical location. Thus, even if the nomenclature differs on documents, it is judged to refer to the same valid designated area.

Importance of the Non-Manipulation Certificate (NMC) and Designated Areas

The Non-Manipulation Certificate is a mandatory document for claiming Free Trade Agreement (FTA) benefits. When originating goods are imported via a third country (non-party to the FTA), it must be proven that no processing or manipulation occurred in the transit country to maintain their originating status. If any processing that alters the nature or form of the goods occurs, the goods lose their originating status and are ineligible for FTA preferential tariffs.

The 'Designated Area' for transit refers to a credible location where the safe management of cargo and the maintenance of its non-manipulated state can be guaranteed. Customs authorities recognize storage and transshipment within these areas as non-manipulation; however, activities outside these designated areas may be interpreted as processing that affects originating status. Hong Kong's Kwai Tsing Container Terminals (1-9) are designated for this purpose, serving a critical role in proving that no physical changes occurred during storage, transport, or unloading.

Practical Considerations and Documentation Advice

Although the interchangeable use of names is recognized, clarity in documentation is crucial for the actual customs clearance process. We recommend preparing your documents with the following considerations:

• 1. Efforts for Consistent Nomenclature: Ideally, use 'Kwai Tsing Container Terminals (1-9)' or a similar comprehensive term on the Bill of Lading (B/L) or transport documents to minimize potential misunderstandings. If 'Kwai Chung Container Terminal' is used, it is advisable to clearly specify the terminal number (e.g., Terminal 3) to indicate that it is a specific facility within the designated complex. This facilitates the review process by customs officials.
• 2. Preparation of Supporting Documents: Generally, the following documents are required for NMC issuance:
  • Copy of the original Bill of Lading (B/L) and transport documents proving the transit route.
  • Transport documents issued in the transit country (e.g., Transit B/L, Cargo Manifest).
  • Warehouse records (Entry/Exit proof, storage duration, and cargo condition).
  • Container Seal records (documenting seal numbers and proving no unauthorized changes).
  • Copy of the original (final) Certificate of Origin.
  These documents must consistently prove the movement path, storage condition, and absence of manipulation. Particularly if cargo is unpacked or repacked due to unavoidable circumstances (e.g., container damage), detailed proof such as photos and a statement of facts must be provided.
• 3. Understanding Customs Review Criteria: When reviewing non-manipulation, customs authorities consider both documentary consistency and the actual management status of the cargo. Therefore, beyond matching names, you must be prepared to logically demonstrate that the cargo was safely managed without physical alteration. Thorough record-keeping is essential for potential post-verification requests.

In conclusion, while the use of 'Kwai Chung Container Terminal' is acceptable due to local usage in Hong Kong, using the official guideline name 'Kwai Tsing Container Terminals' or providing supplementary details about the specific terminal is recommended to prevent confusion. If uncertainty remains, consulting a professional customs broker or the customs authority beforehand is the safest approach.