CEPA Benefits for Hong Kong Businesses 2025

For Hong Kong businesses aiming to grow beyond the city, the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) remains one of the most effective gateways into the Mainland market. In 2025, CEPA continues to offer tariff‑free trade, preferential market access for services, and mutual recognition of professional qualifications — benefits that are particularly valuable for SMEs seeking to expand cross‑border and tap into one of the world’s largest consumer bases.

What is CEPA?

CEPA is a free trade agreement between the Hong Kong Special Administrative Region (HKSAR) and the Mainland, first signed in 2003 and expanded through multiple supplementary agreements and sector‑specific liberalisation measures.

It provides:

• Zero tariffs for qualifying goods of Hong Kong origin
• Preferential access for Hong Kong service suppliers in the Mainland market
• Mutual recognition of professional qualifications in designated sectors
• Simplified customs and trade facilitation procedures

CEPA is available exclusively to Hong Kong‑based companies and eligible Hong Kong residents, giving them a competitive edge over businesses from jurisdictions without a comparable arrangement.

Main CEPA Benefits in 2025

1. Tariff‑Free Exports

• Scope: All goods of Hong Kong origin can enter the Mainland at zero import tariff under CEPA.
• Rules of Origin (ROO): Goods must meet CEPA’s ROO criteria, which are set out in product‑specific ROO (PSR) schedules. These typically require that the goods are substantially manufactured or processed in Hong Kong.
• Examples:
  
  • Food and beverages
  • Textiles and garments
  • Electronics and electrical appliances
  • Pharmaceuticals and health supplements

2. Expanded Services Access

• CEPA grants Hong Kong service suppliers preferential treatment in over 160 service sectors (following the full liberalisation measures under the Agreement on Trade in Services effective June 2016, and subsequent enhancements).
• Examples of sectors with liberalised or preferential entry:
  
  • Logistics and freight forwarding
  • Legal and accounting services
  • Advertising and audiovisual production
  • Education and healthcare services
  • Financial services, including banking, securities, and insurance (subject to sector‑specific rules)
• In many sectors, Mainland entry thresholds are reduced or waived, allowing Hong Kong providers to operate under more favourable terms than foreign competitors.

3. Recognition of Qualifications

• CEPA includes mutual recognition and pilot schemes enabling Hong Kong professionals in law, accounting, architecture, construction, and finance to obtain Mainland practice qualifications or exemptions.
• Some professional sectors benefit from Greater Bay Area (GBA) pilot measures, allowing cross‑border practice in designated Mainland cities.

Who is Eligible?

To benefit from CEPA:

For goods trade:

• The exporting business must be registered in Hong Kong.
• Goods must satisfy CEPA’s Rules of Origin requirements.
• A Certificate of Hong Kong Origin (CEPA) issued by the Trade and Industry Department or an authorised body is required.

For services trade:

• The business must qualify as a Hong Kong Service Supplier (HKSS) — generally meaning it is incorporated in Hong Kong, has engaged in substantive business operations in Hong Kong for 3–5 years (depending on the sector), and meets sector‑specific criteria.
• Individuals must be Hong Kong permanent residents or residents with the right to work in Hong Kong, hold relevant professional qualifications, and meet any required work experience thresholds.

How can Ask.Legal help with CEPA?

Navigating CEPA eligibility and paperwork can be complex. Ask.Legal’s AI trade research assistant helps SMEs:

• Identify CEPA-covered goods and services
• Check Hong Kong trade advantages and market access rules
• Generate plain-English summaries of CEPA provisions
• Flag key documentation for customs and compliance

For more on expanding cross-border operations, see our blog on Hong Kong fintech regulations and digital compliance.

Need help navigating this issue? Check out Ask.Legal — our AI-powered legal assistant is ready to help 24/7.

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