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FedEx signs MOU with Hong Kong Customs on cargo clearance facilitation

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FedEx signs MOU with Hong Kong Customs on cargo clearance facilitation
Policy
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John Dietrich FedEx Executive Leadership Executive Vice President and CFO | FedEx

Federal Express Corporation, commonly known as FedEx, has entered into a Memorandum of Understanding (MOU) with the Hong Kong Customs and Excise Department (C&ED). This agreement pertains to the Cross-boundary Express Cargo Clearance Facilitation Arrangement (CEFA), aimed at improving customs clearance efficiency for shipments from mainland China to Hong Kong. FedEx is the first company to participate in this initiative.

The MOU stipulates that C&ED will handle customs clearance at one of FedEx's stations in downtown Hong Kong for inbound shipments from mainland China. These shipments are transported via FedEx cross-border trucks equipped with electronic locks and GPS, originating from the company's APAC Hub in Guangzhou.

Joining CEFA allows FedEx to benefit from more efficient customs clearance processes. Shipments delivered through its flight network at the APAC Hub will be sent directly to FedEx stations instead of undergoing inspection at Shenzhen Bay Control Point. Constrained shipments will be sorted and examined by C&ED at a designated area within one of these stations.

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Anthony Leung, managing director of FedEx Hong Kong and Macau, expressed enthusiasm about the partnership: “We are excited to sign the MOU with Hong Kong C&ED to join CEFA, and deepen our partnership with the Hong Kong Customs by implementing an innovative customs clearance process.” He highlighted that over 200 cross-border trucks operate weekly between their APAC Hub in Guangzhou and Hong Kong. This collaboration aims to enhance customs clearance efficiency for inbound shipments from various regions and support local e-commerce customers.

The arrangement aligns with initiatives outlined in the 2024 Policy Address by the HKSAR government, which emphasizes developing smart logistics ports. The CEFA is expected to boost trade flow efficiency between Hong Kong and other cities within the Greater Bay Area (GBA). In 2023, Hong Kong's total merchandise trade amounted to HK$8,822.4 billion, with mainland China being a significant trading partner. The city's e-commerce market revenue is projected to grow annually by 8.72% until 2029.

FedEx continues efforts with C&ED to improve clearance efficiency and has been recognized as an Authorized Economic Operator Tier 2 since 2014. The company has also received accolades such as the Elite Enterprise Partnership Award for its contributions.

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