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Hong Kong declined its effect as the exchange hub of imported wine
www.wines-info.com by Written By JOHNSON QU Translated by Feng Xia fei 2008-2-3 15:58:12   


With the development of economy and frequencies of international commuications between foreign countries and China, Hong Kong declined its effect as the exchange hub of imported wine. More and more Hong Kong's wine companies have set up their offices at the littoral of mainland, with the employment of mainland's personnel and the adoptating of Chinese wine market strategy. The Hong Kong wine companies, which are still  in Hong Kong, are the traditional wine companies, and their main customers are Hong Kong's habitual customes, business customers and travellers.


The traditional alcohol consumption of Hong Kong are main of beer,brandy,whiskey and wine. The per capita consumption of wine is more than China mainland. As we known,  Hong Kong is a metroplis. In many people's heart, it can make good use of its international effect, information network and products exported channel to promote wine. Many foreign vintners take Hong Kong as the springboard and maidan to enter Chinese wine market.


But, the situation is opposite. Although Hong Kong 's consumption level is high, its consumption trend played an unimportant  role in China mailand's market in recent ten years. Several years ago, some China mainland's vintners imported wine frrom Hong Kong. Because many wine companies which began to sell wine held poor knowledge of wine, such as production region and variety. The wine company lack international trade person with ability and international communication tips.Because import and export is controlled by the govermant,  the importers felt it is very difficult to deal with the procedures, plus high tariff. So, they chose to import the wine from Hong Kong's general agents due to it can simplify  the imported procedures, such as seeking for foreign wineries, choosing wine items, business discussion, signing cintract, shipping the wine, inspectation and terms of payment. The Chinese importers just choose the wine which they want to sell in Hong Kong's wine agents' wine warehouse. But, lured by the high profits and high imported tariff, some Hong Kong wine importers smuggled the wine, even worse of colluding Chinese landing-waiters.


In recent year, few Chinese vintners imported wine from Hong Kong. The reasons are as follows: Firstly, with the development of Chinese economy, Chinese wine imported componies increased their strength, and they can import wine by themselves. Secondly, the imported wine tariff declined. Thirdly, the international trade manage authority is loosened and the wine imported procedures are simplified.


Now, foreign wineries can contact with the Chinese wine agents directly and convenient by any means and channels. Owing to the swift and abundant imported wine information and the control and check of circulation tax rate, it is no advantage for Chinese vintners to imported wine from Hong Kong. In China, wine promotion became mature and the wine imported tariff declined to the level which the smuggler can make no profit in it, many foreign vintners who want to enter Chinese wine market, prefer seeking for general wine agents in China to Hong Kong.


In genral, Hong Kong lose its superiority as the exchange hub for wine. Wine carrying trade in Hong Kong is behind the times.

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--------------------------------------------------------------- 2 comments
[Bruno LAFON]  • Hi Johnson ! yu are so right in your article. Only HK politicians or outsiders to Wine trade in Asia might believe that HK could play a role as a HUB for wines shipments to mainland China. It's far too late for this. HK should have abolish taxes 5 years ago already to play this role. Imports are well organised now in Chineese port. Especialy in Shanghai at the Free zone However for hight value Grand Crus Wines market HK give some interest to keep some stock there pending final sales to end buyers (not only to mainland China) And that is what I realise everydays with our weekly Air Shipments from London, NY and Bordeaux that we currently receive at TGD HK (dedicated to Wine logistics) 2008-06-04
[orchard bank]  • hello nice site! http://theodorejlacour52.blogspot.com 2008-04-29
 
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