Macau’s move will greatly simplify the trans-shipments of wine and beer between the two Special Administrative Regions. While both Hong Kong and Macau are part of China, each is a separate customs territory distinct from Beijing.

A US Government source said traders have expressed their approval both for the reduction in tax and the lifting of the heavy administrative and bureaucratic burden associated with beer and wine shipments to Macau.

But for beverages exceeding 30% alcohol, Macau’s Consumption Tax of 10% CIF value plus 20 Macau Pecatas (about US$2.58) per litre, will remain in force.

A US Government source said: “U.S. exports of wine and beer to Hong Kong and Macau have exploded in the wake of Hong Kong’s tax elimination and the booming casino industry in Macau.”

US beer and wine exports rose 132% to US8 million dollars in 1H 2008 compared to the previous year. For Macau, January – June exports approached US$3 million, an astonishing 1,576% increase.