Cap. 537AE 《聯合國制裁(朝鮮民主主義人民共和國)規例》United Nations Sanctions (Democratic People’s Republic of Korea) Regulation

(Cross-heading repealed L.N. 5 of 2010)

2. Prohibition against supply, sale or transfer of supply-sanctioned items

(L.N. 5 of 2010; L.N. 115 of 2014; L.N. 122 of 2018)

(1A)

This section applies to—

(a)

a person acting in the HKSAR; and

(b)

a person acting outside the HKSAR who is—

(i)

both a Hong Kong permanent resident and a Chinese national; or

(ii)

a body incorporated or constituted under the law of the HKSAR. (L.N. 5 of 2010)

(1)

Except under the authority of a licence granted under section 10J(1)(a), a person must not supply, sell or transfer, or agree to supply, sell or transfer, directly or indirectly, or do any act likely to promote the supply, sale or transfer of, any supply-sanctioned item (other than aviation fuel)— (L.N. 115 of 2014; L.N. 122 of 2018)

(a)

to the DPRK;

(b)

to, or to the order of, a person connected with the DPRK; or

(c)

to a destination or person for the purpose of delivery or transfer, directly or indirectly to the DPRK or to, or to the order of, a person connected with the DPRK. (L.N. 5 of 2010)

(1B)

Except under the authority of a licence granted under section 10J(6)(a) and subject to subsection (1C), a person must not supply, sell or transfer, or agree to supply, sell or transfer, directly or indirectly, or do any act likely to promote the supply, sale or transfer of, aviation fuel—

(a)

to the DPRK; or

(b)

to a destination or person for the purpose of delivery or transfer, directly or indirectly to the DPRK. (L.N. 122 of 2018)

(1C)

Subsection (1B) does not apply if the aviation fuel is supplied, sold or transferred to a civilian passenger aircraft outside the DPRK exclusively for consumption during its flight to the DPRK and its return flight. (L.N. 122 of 2018)

(2)

A person who contravenes subsection (1) or (1B) commits an offence and is liable— (L.N. 122 of 2018)

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(3)

It is a defence for a person charged with an offence under subsection (2) to prove that the person did not know and had no reason to believe— (L.N. 5 of 2010)

(a)

for a contravention of subsection (1) or (1B)—that the item concerned was a supply-sanctioned item; (L.N. 122 of 2018)

(b)

for a contravention of subsection (1)—that the item concerned was, or was to be, supplied, sold or transferred— (L.N. 122 of 2018)

(i)

to the DPRK;

(ii)

to, or to the order of, a person connected with the DPRK; or

(iii)

to a destination or person for the purpose of delivery or transfer, directly or indirectly to the DPRK or to, or to the order of, a person connected with the DPRK; or (L.N. 5 of 2010)

(c)

for a contravention of subsection (1B)—that the item concerned was, or was to be, supplied, sold or transferred—

(i)

to the DPRK; or

(ii)

to a destination or person for the purpose of delivery or transfer, directly or indirectly to the DPRK. (L.N. 122 of 2018)

(4)

(Repealed L.N. 5 of 2010)

2A. Prohibition against supply, sale or transfer of luxury goods

(1)

This section applies to—

(a)

a person acting in the HKSAR; and

(b)

a person acting outside the HKSAR who is—

(i)

both a Hong Kong permanent resident and a Chinese national; or

(ii)

a body incorporated or constituted under the law of the HKSAR.

(2)

Subject to section 3B, if a person knows or has reason to believe that—

(a)

an item is luxury goods; and

(b)

the item is to be supplied, sold or transferred to a place in the DPRK,

the person must not, directly or indirectly, supply, sell or transfer the item.

(3)

A person who contravenes subsection (2) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months. (L.N. 122 of 2018)

(Cross-heading repealed L.N. 5 of 2010)

3. Prohibition against carriage of supply-sanctioned items

(L.N. 5 of 2010; L.N. 115 of 2014; L.N. 122 of 2018)

(1)

This section applies to—

(a)

a ship that is registered in the HKSAR;

(aa)

a ship that is not registered in the HKSAR and is within the waters of Hong Kong; (L.N. 5 of 2010)

(b)

an aircraft that is registered in the HKSAR;

(ba)

an aircraft that is not registered in the HKSAR and is within Hong Kong air space; (L.N. 5 of 2010)

(c)

any other ship or aircraft that is for the time being chartered to a person who is—

(i)

in the HKSAR;

(ii)

both a Hong Kong permanent resident and a Chinese national; or

(iii)

a body incorporated or constituted under the law of the HKSAR; and

(d)

a vehicle in the HKSAR.

(2)

Except under the authority of a licence granted under section 10J(1)(b), a ship, aircraft or vehicle must not be used for the carriage of any supply-sanctioned item (other than aviation fuel) if the carriage is, or forms part of, a carriage— (L.N. 5 of 2010; L.N. 115 of 2014; L.N. 122 of 2018)

(a)

from a place outside the DPRK to a place in the DPRK;

(b)

to, or to the order of, a person connected with the DPRK; or

(c)

to a destination for the purpose of delivery or transfer, directly or indirectly to the DPRK or to, or to the order of, a person connected with the DPRK. (L.N. 5 of 2010)

(2AA)

Except under the authority of a licence granted under section 10J(6)(b) and subject to subsection (2AAB), a ship, aircraft or vehicle must not be used for the carriage of aviation fuel if the carriage is, or forms part of, a carriage—

(a)

from a place outside the DPRK to a place in the DPRK; or

(b)

to a destination for the purpose of delivery or transfer, directly or indirectly to the DPRK. (L.N. 122 of 2018)

(2AAB)

Subsection (2AA) does not apply if the aviation fuel is carried by a civilian passenger aircraft exclusively for consumption during its flight to the DPRK and its return flight. (L.N. 122 of 2018)

(2A)

If a ship, aircraft or vehicle is used in contravention of subsection (2) or (2AA), each of the following persons commits an offence— (L.N. 122 of 2018)

(a)

for a ship registered in the HKSAR—the charterer, the operator and the master of the ship;

(b)

for any other ship— (L.N. 54 of 2013)

(i)

the charterer of the ship, if the charterer is in the HKSAR, or is both a Hong Kong permanent resident and a Chinese national, or is a body incorporated or constituted under the law of the HKSAR;

(ii)

the operator of the ship, if the operator is in the HKSAR, or is both a Hong Kong permanent resident and a Chinese national, or is a body incorporated or constituted under the law of the HKSAR; and

(iii)

the master of the ship, if the master is in the HKSAR or is both a Hong Kong permanent resident and a Chinese national;

(c)

for an aircraft registered in the HKSAR—the charterer, the operator and the pilot in command of the aircraft;

(d)

for any other aircraft— (L.N. 54 of 2013)

(i)

the charterer of the aircraft, if the charterer is in the HKSAR, or is both a Hong Kong permanent resident and a Chinese national, or is a body incorporated or constituted under the law of the HKSAR;

(ii)

the operator of the aircraft, if the operator is in the HKSAR, or is both a Hong Kong permanent resident and a Chinese national, or is a body incorporated or constituted under the law of the HKSAR; and

(iii)

the pilot in command of the aircraft, if the pilot in command is in the HKSAR or is both a Hong Kong permanent resident and a Chinese national;

(e)

for a vehicle—the operator and the driver of the vehicle. (L.N. 5 of 2010; L.N. 54 of 2013)

(3)

A person who commits an offence under subsection (2A) is liable— (L.N. 5 of 2010)

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(4)

It is a defence for a person charged with an offence under subsection (2A) to prove that the person did not know and had no reason to believe— (L.N. 5 of 2010)

(a)

for a contravention of subsection (2) or (2AA)—that the item concerned was a supply-sanctioned item; (L.N. 122 of 2018)

(b)

for a contravention of subsection (2)—that the carriage of the item concerned was, or formed part of, a carriage— (L.N. 5 of 2010; L.N. 122 of 2018)

(i)

from a place outside the DPRK to a place in the DPRK;

(ii)

to, or to the order of, a person connected with the DPRK; or

(iii)

to a destination for the purpose of delivery or transfer, directly or indirectly to the DPRK or to, or to the order of, a person connected with the DPRK; or (L.N. 5 of 2010)

(c)

for a contravention of subsection (2AA)—that the carriage of the item concerned was, or formed part of, a carriage—

(i)

from a place outside the DPRK to a place in the DPRK; or

(ii)

to a destination for the purpose of delivery or transfer, directly or indirectly to the DPRK. (L.N. 122 of 2018)

(5)

(Repealed L.N. 5 of 2010)

3AA. Prohibition against carriage of luxury goods

(1)

This section applies to—

(a)

a ship that is registered in the HKSAR;

(b)

a ship that is not registered in the HKSAR and is within the waters of Hong Kong;

(c)

an aircraft that is registered in the HKSAR;

(d)

an aircraft that is not registered in the HKSAR and is within Hong Kong air space;

(e)

any other ship or aircraft that is for the time being chartered to a person who is—

(i)

in the HKSAR;

(ii)

both a Hong Kong permanent resident and a Chinese national; or

(iii)

a body incorporated or constituted under the law of the HKSAR; and

(f)

a vehicle in the HKSAR.

(2)

Subject to section 3B, a person specified in subsection (4) commits an offence if—

(a)

a ship, aircraft or vehicle is used for the carriage of luxury goods;

(b)

the carriage is, or forms part of, a carriage referred to in subsection (3); and

(c)

at the time when the ship, aircraft or vehicle is so used, the person knows or has reason to believe that—

(i)

the item concerned is luxury goods; and

(ii)

the carriage of the item concerned is, or forms part of, a carriage referred to in subsection (3).

(3)

The carriage is a carriage of the item concerned—

(a)

from a place outside the DPRK to a place in the DPRK; or

(b)

to a destination for the purpose of delivery or transfer, directly or indirectly to a place in the DPRK.

(4)

The person is—

(a)

for a ship registered in the HKSAR—the charterer, the operator or the master of the ship;

(b)

for any other ship—

(i)

the charterer of the ship, if the charterer is in the HKSAR, or is both a Hong Kong permanent resident and a Chinese national, or is a body incorporated or constituted under the law of the HKSAR;

(ii)

the operator of the ship, if the operator is in the HKSAR, or is both a Hong Kong permanent resident and a Chinese national, or is a body incorporated or constituted under the law of the HKSAR; or

(iii)

the master of the ship, if the master is in the HKSAR or is both a Hong Kong permanent resident and a Chinese national;

(c)

for an aircraft registered in the HKSAR—the charterer, the operator or the pilot in command of the aircraft;

(d)

for any other aircraft—

(i)

the charterer of the aircraft, if the charterer is in the HKSAR, or is both a Hong Kong permanent resident and a Chinese national, or is a body incorporated or constituted under the law of the HKSAR;

(ii)

(iii)

the pilot in command of the aircraft, if the pilot in command is in the HKSAR or is both a Hong Kong permanent resident and a Chinese national; or

(e)

for a vehicle—the operator or the driver of the vehicle.

(5)

A person who commits an offence under subsection (2) is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(L.N. 115 of 2014; L.N. 122 of 2018)

3A.

(Repealed L.N. 122 of 2018)

3B. Exceptions to prohibitions under sections 2A and 3AA

(1)

Section 2A does not apply if the luxury goods is supplied, sold or transferred for the purposes of the activities of a diplomatic mission in the DPRK pursuant to the Vienna Convention on Diplomatic Relations of 18 April 1961.

(2)

Section 3AA does not apply if the carriage of the luxury goods is made for the purposes of the activities of a diplomatic mission in the DPRK pursuant to the Vienna Convention on Diplomatic Relations of 18 April 1961.

Division 3 — Procurement of Items or Services from DPRK

(Cross-heading repealed L.N. 5 of 2010)

4. Prohibition against procurement of procurement-sanctioned items or certain services by certain persons

(1A)

This section applies to—

(a)

a person acting in the HKSAR; and

(b)

a person acting outside the HKSAR who is—

(i)

both a Hong Kong permanent resident and a Chinese national; or

(ii)

a body incorporated or constituted under the law of the HKSAR. (L.N. 5 of 2010)

(1)

Except under the authority of a licence granted under section 10K(1)(a), a person must not procure, agree to procure, directly or indirectly, or do any act likely to promote the procurement of any procurement-sanctioned item— (L.N. 122 of 2018)

(a)

from the DPRK; or

(b)

from a person connected with the DPRK. (L.N. 5 of 2010)

(2)

A person who contravenes subsection (1) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months. (L.N. 122 of 2018)

(3)

It is a defence for a person charged with an offence under subsection (2) to prove that the person did not know and had no reason to believe— (L.N. 5 of 2010)

(a)

that the item concerned was a procurement-sanctioned item; or (L.N. 122 of 2018)

(b)

that the item concerned was—

(i)

from the DPRK; or

(ii)

from a person connected with the DPRK.

(3A)

A person must not procure, agree to procure, directly or indirectly, or do any act likely to promote the procurement of any technical training, service (including brokering or other intermediary service), assistance or advice related to the provision, manufacture, maintenance or use of any specified arms— (L.N. 115 of 2014)

(a)

from the DPRK; or

(b)

from a person connected with the DPRK. (L.N. 5 of 2010)

(3B)

A person who contravenes subsection (3A) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months. (L.N. 5 of 2010; L.N. 122 of 2018)

(3C)

It is a defence for a person charged with an offence under subsection (3B) to prove that the person did not know and had no reason to believe—

(a)

that the technical training, service, assistance or advice concerned related to the provision, manufacture, maintenance or use of any specified arms; or

(b)

that the technical training, service, assistance or advice concerned was, or was to be, procured from the DPRK or a person connected with the DPRK. (L.N. 5 of 2010; L.N. 122 of 2018)

(4)

(Repealed L.N. 5 of 2010)

5. Prohibition against procurement of procurement-sanctioned items or certain services using ships, aircraft or vehicles

(1)

This section applies to—

(a)

a ship that is registered in the HKSAR;

(aa)

a ship that is not registered in the HKSAR and is within the waters of Hong Kong; (L.N. 5 of 2010)

(b)

an aircraft that is registered in the HKSAR;

(ba)

an aircraft that is not registered in the HKSAR and is within Hong Kong air space; (L.N. 5 of 2010)

(c)

any other ship or aircraft that is for the time being chartered to a person who is—

(i)

in the HKSAR;

(ii)

both a Hong Kong permanent resident and a Chinese national; or

(iii)

a body incorporated or constituted under the law of the HKSAR; and

(d)

a vehicle in the HKSAR.

(2)

Without limiting section 4, a ship, aircraft or vehicle must not be used for or in connection with the procurement of—

(a)

(except under the authority of a licence granted under section 10K(1)(b)) any procurement-sanctioned item— (L.N. 122 of 2018)

(i)

from the DPRK; or

(ii)

from a person connected with the DPRK; or

(b)

any technical training, service (including brokering or other intermediary service), assistance or advice related to the provision, manufacture, maintenance or use of any specified arms— ( L.N. 115 of 2014)

(i)

from the DPRK; or

(ii)

from a person connected with the DPRK. (L.N. 5 of 2010)

(2A)

If a ship, aircraft or vehicle is used in contravention of subsection (2), each of the following persons commits an offence—

(a)

for a ship registered in the HKSAR—the charterer, the operator and the master of the ship;

(b)

for any other ship— (L.N. 54 of 2013)

(i)

the charterer of the ship, if the charterer is in the HKSAR, or is both a Hong Kong permanent resident and a Chinese national, or is a body incorporated or constituted under the law of the HKSAR;

(ii)

the operator of the ship, if the operator is in the HKSAR, or is both a Hong Kong permanent resident and a Chinese national, or is a body incorporated or constituted under the law of the HKSAR; and

(iii)

the master of the ship, if the master is in the HKSAR or is both a Hong Kong permanent resident and a Chinese national;

(c)

for an aircraft registered in the HKSAR—the charterer, the operator and the pilot in command of the aircraft;

(d)

for any other aircraft— (L.N. 54 of 2013)

(i)

the charterer of the aircraft, if the charterer is in the HKSAR, or is both a Hong Kong permanent resident and a Chinese national, or is a body incorporated or constituted under the law of the HKSAR;

(ii)

(iii)

the pilot in command of the aircraft, if the pilot in command is in the HKSAR or is both a Hong Kong permanent resident and a Chinese national;

(e)

for a vehicle—the operator and the driver of the vehicle. (L.N. 5 of 2010; L.N. 54 of 2013; L.N. 122 of 2018)

(3)

A person who commits an offence under subsection (2A) is liable— (L.N. 5 of 2010)

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months. (L.N. 122 of 2018)

(4)

It is a defence for a person charged with an offence under subsection (2A) to prove that the person did not know and had no reason to believe—

(a)

for a contravention of subsection (2)(a)—that the item concerned—

(i)

was a procurement-sanctioned item; or

(ii)

was from the DPRK or a person connected with the DPRK; or (L.N. 122 of 2018)

(b)

for a contravention of subsection (2)(b)—that the technical training, service, assistance or advice concerned—

(i)

related to the provision, manufacture, maintenance or use of any specified arms; or

(ii)

was, or was to be, procured from the DPRK or a person connected with the DPRK. (L.N. 122 of 2018)

(c)-(d)

(Repealed L.N. 122 of 2018)

(5)

(Repealed L.N. 5 of 2010)

5AA. Prohibition against procurement of ship or aircraft crewing service

(1)

This section applies to a person (whether acting in or outside the HKSAR) who is—

(a)

both a Hong Kong permanent resident and a Chinese national; or

(b)

a body incorporated or constituted under the law of the HKSAR.

(2)

A person must not procure, agree to procure, directly or indirectly, or do any act likely to promote the procurement of any ship or aircraft crewing service—

(a)

from the DPRK; or

(b)

from a person connected with the DPRK.

(3)

A person who contravenes subsection (2) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(4)

It is a defence for a person charged with an offence under subsection (3) to prove that the person did not know and had no reason to believe that the ship or aircraft crewing service concerned was, or was to be, procured from the DPRK or a person connected with the DPRK.

Division 4 — Financial and Banking Activities

5A. Prohibition against engaging in certain financial transactions

(1)

This section applies to—

(a)

a person acting in the HKSAR; and

(b)

a person acting outside the HKSAR who is—

(i)

both a Hong Kong permanent resident and a Chinese national; or

(ii)

a body incorporated or constituted under the law of the HKSAR.

(2)

A person must not engage, directly or indirectly, in any financial transaction related to the provision, manufacture, maintenance or use of any specified arms the supply, sale, transfer or carriage of which is prohibited under section 2 or 3.

(3)

A person must not engage, directly or indirectly, in any financial transaction related to the provision, manufacture, maintenance or use of any specified arms the procurement of which is prohibited under section 4.

(4)

A person who contravenes subsection (2) or (3) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(5)

It is a defence for a person charged with an offence under subsection (4) to prove that the person did not know and had no reason to believe—

(a)

for a contravention of subsection (2) or (3)—that the financial transaction concerned related to the provision, manufacture, maintenance or use of any specified arms;

(b)

for a contravention of subsection (2)—that the supply, sale, transfer or carriage of the arms concerned was prohibited under section 2 or 3; or

(c)

for a contravention of subsection (3)—that the procurement of the arms concerned was prohibited under section 4.

5B.

(Repealed L.N. 122 of 2018)

5C. Prohibition against provision of financial services or transfer of funds, etc.

(1)

A regulated person must not provide, directly or indirectly, any financial services that could contribute to a prohibited programme or activity.

(2)

A regulated person must not transfer, directly or indirectly, any funds or other financial assets or economic resources that could contribute to a prohibited programme or activity.

(3)

A regulated person must not accept, directly or indirectly, the transfer of any funds or other financial assets or economic resources that could contribute to a prohibited programme or activity.

(4)

A regulated person must not make available, or deal with, directly or indirectly, any funds or other financial assets or economic resources if the funds, financial assets or economic resources are associated with a prohibited programme or activity.

(5)

A person who contravenes subsection (1), (2), (3) or (4) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months. (L.N. 122 of 2018)

(6)

It is a defence for a person charged with an offence under subsection (5) to prove that the person did not know and had no reason to believe—

(a)

for a contravention of subsection (1)—that the financial services concerned could contribute to a prohibited programme or activity;

(b)

for a contravention of subsection (2)—that the funds or other financial assets or economic resources concerned could contribute to a prohibited programme or activity;

(c)

for a contravention of subsection (3)—that the funds or other financial assets or economic resources concerned could contribute to a prohibited programme or activity;

(d)

for a contravention of subsection (4)—that the funds or other financial assets or economic resources concerned were associated with a prohibited programme or activity. (L.N. 122 of 2018)

(7)

A person is not to be regarded as having contravened subsection (1), (2), (3) or (4) by reason only of having credited an account described in subsection (8) with—

(a)

interest or other earnings due on that account; or

(b)

payment due under contracts, agreements or obligations that arose before the date on which this section comes into operation.

(8)

The account is an account in which the funds or other financial assets or economic resources are kept.

(9)

In this section—

prohibited programme or activity (禁制計劃或活動) means—(a)DPRK’s nuclear or ballistic missile programme; or(b)any other activity that is prohibited by the Security Council Resolutions; (L.N. 122 of 2018) regulated person (受規管人士) means—(a)a person acting in the HKSAR; or(b)a person acting outside the HKSAR who is—(i)both a Hong Kong permanent resident and a Chinese national; or(ii)a body incorporated or constituted under the law of the HKSAR.

5D. Prohibition against certain banking activities in HKSAR

(1)

A person connected with the DPRK must not carry on a banking business or a business of taking deposits in the HKSAR.

(2)

A DPRK bank must not establish or maintain an office in the HKSAR.

(3)

A person who contravenes subsection (1) or (2) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(4)

In this section—

banking business (銀行業務) has the meaning given by section 2(1) of the Banking Ordinance (Cap. 155); deposit (存款) has the meaning given by section 2(1) of the Banking Ordinance (Cap. 155).

5E. Prohibition against certain activities of financial institutions in DPRK or in connection with DPRK banks

(1)

This section applies to—

(a)

a financial institution acting in the HKSAR; and

(b)

a financial institution acting outside the HKSAR that is—

(i)

both a Hong Kong permanent resident and a Chinese national; or

(ii)

a body incorporated or constituted under the law of the HKSAR.

(2)

A financial institution must not—

(a)

open or maintain a representative office, or establish or maintain a subsidiary or branch, in the DPRK; or

(b)

open or maintain a bank account in the DPRK.

(3)

Except under the authority of a licence granted under section 10L(1), a financial institution must not—

(a)

establish or maintain a joint venture with a DPRK bank;

(b)

acquire or maintain an ownership interest in a DPRK bank; or

(c)

establish or maintain a correspondent banking relationship with a DPRK bank.

(4)

A financial institution which contravenes subsection (2) or (3) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(5)

It is a defence for a financial institution charged with an offence under subsection (4) for a contravention of subsection (3) to prove that the financial institution did not know and had no reason to believe that the bank concerned was a DPRK bank.

(6)

In this section—

correspondent banking relationship with a DPRK bank (與朝鮮銀行的代理銀行關係), in relation to a financial institution, means a relationship involving— (a)the provision of banking services by the financial institution to a DPRK bank to enable the DPRK bank to provide services and products to the DPRK bank’s customers; or (b)the provision of banking services by a DPRK bank to the financial institution to enable the financial institution to provide services and products to the financial institution’s customers.

5F. Prohibition against opening or maintaining certain bank accounts

(1)

Except under the authority of a licence granted under section 10M(1), a financial institution must not open a new bank account, or maintain a bank account, for—

(a)

a diplomatic mission or consular post of the DPRK; or

(b)

an accredited diplomat or consular officer of the DPRK.

(2)

A financial institution which contravenes subsection (1) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(3)

It is a defence for a financial institution charged with an offence under subsection (2) to prove that the financial institution did not know and had no reason to believe that the person for whom the new bank account was opened, or the bank account was maintained, was—

(a)

a diplomatic mission or consular post of the DPRK; or

(b)

an accredited diplomat or consular officer of the DPRK.

5G. Prohibition against provision of financial support for trade with persons connected with the DPRK

(1)

Except under the authority of a licence granted under section 10N(1), a regulated person must not provide financial support to any person for trade with a person connected with the DPRK.

(2)

A regulated person who contravenes subsection (1) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(3)

It is a defence for a regulated person charged with an offence under subsection (2) to prove that the regulated person did not know and had no reason to believe that the financial support was provided for trade with a person connected with the DPRK.

(4)

In this section—

financial support (金融支持) includes— (a)export credit; (b)guarantee; and (c)insurance; regulated person (受規管人士) means— (a)a person acting in the HKSAR; or (b)a person acting outside the HKSAR who is—(i)both a Hong Kong permanent resident and a Chinese national; or(ii)a body incorporated or constituted under the law of the HKSAR.

Division 5 — Technical, Scientific and Training Activities

(Cross-heading repealed L.N. 5 of 2010)

6. Prohibition against provision of technical training, services, etc. to certain persons

(1A)

This section applies to—

(a)

a person acting in the HKSAR; and

(b)

a person acting outside the HKSAR who is—

(i)

both a Hong Kong permanent resident and a Chinese national; or

(ii)

a body incorporated or constituted under the law of the HKSAR. (L.N. 5 of 2010)

(1)

A person must not provide, directly or indirectly, to a person connected with the DPRK any technical training, service (including brokering or other intermediary service), assistance or advice related to the provision, manufacture, maintenance or use of any specified item. (L.N. 5 of 2010; L.N. 115 of 2014)

(2)

A person who contravenes subsection (1) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(3)

It is a defence for a person charged with an offence under subsection (2) to prove that the person did not know and had no reason to believe—

(a)

that the technical training, service, assistance or advice concerned related to the provision, manufacture, maintenance or use of any specified item; or

(b)

that the technical training, service, assistance or advice concerned was, or was to be, provided to a person connected with the DPRK. (L.N. 5 of 2010)

(4)

(Repealed L.N. 5 of 2010)

6A.

(Repealed L.N. 122 of 2018)

7. Prohibition against acceptance of technical training, services, etc. provided by certain persons

(1A)

This section applies to—

(a)

a person acting in the HKSAR; and

(b)

a person acting outside the HKSAR who is—

(i)

both a Hong Kong permanent resident and a Chinese national; or

(ii)

a body incorporated or constituted under the law of the HKSAR. (L.N. 5 of 2010)

(1)

A person must not accept, directly or indirectly, any technical training, service (including brokering or other intermediary service), assistance or advice that is provided by a DPRK-related person and related to the provision, manufacture, maintenance or use of any specified item. (L.N. 5 of 2010; L.N. 115 of 2014)

(2)

A person who contravenes subsection (1) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months. (L.N. 122 of 2018)

(3)

It is a defence for a person charged with an offence under subsection (2) to prove that the person did not know and had no reason to believe—

(a)that the technical training, service, assistance or advice concerned related to the provision, manufacture, maintenance or use of any specified item; or (b)that the technical training, service, assistance or advice concerned was, or was to be, provided by a DPRK-related person. (L.N. 5 of 2010; L.N. 115 of 2014; L.N. 122 of 2018)

(4)-(5)

(Repealed L.N. 5 of 2010)

(6)

In this section—

DPRK-related person (關乎朝鮮人士) means— (a)a person connected with the DPRK; or (b)a national of the DPRK who is in a place outside the DPRK. (L.N. 115 of 2014)

7A. Prohibition against provision of certain specialized teaching and training

(1)

This section applies to—

(a)

a person acting in the HKSAR; and

(b)

a person acting outside the HKSAR who is—

(i)

both a Hong Kong permanent resident and a Chinese national; or

(ii)

a body incorporated or constituted under the law of the HKSAR.

(2)

A person must not provide any specified teaching or training to a national of the DPRK.

(3)

A person who contravenes subsection (2) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(4)

It is a defence for a person charged with an offence under subsection (3) to prove that the person did not know and had no reason to believe—

(a)

that the teaching or training concerned was specified teaching or training; or

(b)

that the person to whom the teaching or training concerned was provided was a national of the DPRK.

(5)

In this section—

specified teaching or training (指明教學或培訓) means specialized teaching or training that could contribute to the DPRK’s proliferation of sensitive nuclear activities or the DPRK’s development of nuclear weapon delivery systems, including teaching or training in— (a)advanced physics; (b)advanced computer simulation and related computer sciences; (c)geospatial navigation; (d)nuclear engineering; (e)aerospace engineering; (f)aeronautical engineering; (g)advanced materials science; (h)advanced chemical engineering; (i)advanced mechanical engineering; (j)advanced electrical engineering; (k)advanced industrial engineering; or (l)any related discipline.

7B. Prohibition against engaging in certain scientific or technical co-operation

(1)

This section applies to—

(a)

a person acting in the HKSAR; and

(b)

a person acting outside the HKSAR who is—

(i)

both a Hong Kong permanent resident and a Chinese national; or

(ii)

a body incorporated or constituted under the law of the HKSAR.

(2)

Except under the authority of a licence granted under section 10O(1), a person must not engage in any scientific or technical co-operation involving a person officially sponsored by the DPRK or a person representing the DPRK, except for medical exchanges.

(3)

A person who contravenes subsection (2) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(4)

It is a defence for a person charged with an offence under subsection (3) to prove that the person did not know and had no reason to believe that the scientific or technical co-operation concerned involved a person officially sponsored by the DPRK or a person representing the DPRK.

Division 6 — Making Available or Dealing with Funds etc.

(Cross-heading repealed L.N. 5 of 2010)

8. Prohibition against making available funds, etc. or dealing with funds, etc.

(1A)

This section applies to—

(a)

a person acting in the HKSAR; and

(b)

a person acting outside the HKSAR who is—

(i)

both a Hong Kong permanent resident and a Chinese national; or

(ii)

a body incorporated or constituted under the law of the HKSAR. (L.N. 5 of 2010)

(1)

Except under the authority of a licence granted under section 11(1)— (L.N. 122 of 2018)

(a)

a person must not make available, directly or indirectly, any funds or other financial assets or economic resources to, or for the benefit of, a relevant person or a relevant entity; and

(b) a person (first-mentioned person) must not deal with, directly or indirectly, any funds or other financial assets or economic resources belonging to, or owned or controlled by, a relevant person or a relevant entity, and if the first-mentioned person is a relevant person or a relevant entity, including any funds and other financial assets or economic resources belonging to, or owned or controlled by, the first-mentioned person. (L.N. 115 of 2014)

(2)

A person who contravenes subsection (1) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months. (L.N. 122 of 2018)

(3)

It is a defence for a person charged with an offence under subsection (2) to prove that the person did not know and had no reason to believe— (L.N. 122 of 2018)

(a)

for a contravention of subsection (1)(a)—that the funds or other financial assets or economic resources concerned were, or were to be, made available to, or for the benefit of, a relevant person or a relevant entity; or

(b)

for a contravention of subsection (1)(b)—that the person was dealing with funds or other financial assets or economic resources belonging to, or owned or controlled by, a relevant person or a relevant entity. (L.N. 5 of 2010; L.N. 115 of 2014; L.N. 122 of 2018)

(4)

(Repealed L.N. 5 of 2010)

(5)

A person is not to be regarded as having contravened subsection (1) by reason only of having credited an account belonging to, or owned or controlled by, a relevant person or a relevant entity with— (L.N. 115 of 2014)

(a)

interest or other earnings due on that account; or

(b)

payment due under contracts, agreements or obligations that arose before the date on which the person or entity became a relevant person or a relevant entity. (L.N. 5 of 2010; L.N. 140 of 2012)

(6) In this section, deal with (處理) means— (a)in respect of funds—(i)use, alter, move, allow access to or transfer;(ii)deal with in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination; or(iii)make any other change that would enable use, including portfolio management; and (b)in respect of other financial assets or economic resources—use to obtain funds, goods or services in any way, including by selling, hiring or mortgaging the assets or resources. (L.N. 5 of 2010; L.N. 122 of 2018)

Division 7 — Entry and Transit

(Cross-heading repealed L.N. 5 of 2010)

9. Prohibition against entry or transit by certain persons

(1)

Subject to section 10, a specified person must not enter or transit through the HKSAR. (L.N. 5 of 2010; L.N. 115 of 2014)

(2)

A person who contravenes subsection (1) commits an offence and is liable on conviction to a fine at level 4 and to imprisonment for 2 years.

(3)

This section does not apply to a person having the right of abode or the right to land in the HKSAR. (L.N. 5 of 2010)

(4)

(Repealed L.N. 5 of 2010)

(5)

In this section—

specified person (指明人士) means— (a)a person designated by the Committee or the Security Council for the purposes of paragraph 8(e) of Resolution 1718; or (L.N. 122 of 2018) (b)a person acting on behalf of, or at the direction of, a person mentioned in paragraph (a). (L.N. 122 of 2018) (c)(Repealed L.N. 122 of 2018)

10. Exceptions to prohibition against entry or transit by certain persons

Section 9 does not apply to a case in respect of which—

(a)

the Committee has determined that the relevant entry or transit is justified on the ground of humanitarian need, including religious obligation; or

(b)

the Committee has determined that the relevant entry or transit would otherwise further the objectives of Resolution 1718.

Division 8 — Ships and Aircraft

10A. Prohibition against certain activities in connection with ships and aircraft

(1)

This section applies to—

(a)

a person acting in the HKSAR; and

(b)

a person acting outside the HKSAR who is—

(i)

both a Hong Kong permanent resident and a Chinese national; or

(ii)

a body incorporated or constituted under the law of the HKSAR.

(2)

Subject to section 10B(1), a person must not provide, directly or indirectly, any specified services to a ship registered in the DPRK if the person knows or has reasonable grounds to believe that the ship is carrying a prohibited item. (L.N. 122 of 2018)

(2A)

Except under the authority of a licence granted under section 11A(1), a person must not—

(a)

lease or charter a ship or aircraft that is registered in the HKSAR to a relevant person, relevant entity or person connected with the DPRK;

(b)

provide a ship or aircraft crewing service to a relevant person, relevant entity or person connected with the DPRK;

(c)

(d)

obtain an authorization for a ship to use the flag of the DPRK;

(e)

own, lease, charter or operate a ship registered in the DPRK;

(f)

provide a ship classification, certification or associated service to a ship registered in the DPRK; or

(g)

insure a ship registered in the DPRK. (L.N. 122 of 2018)

(2B)

Except under the authority of a licence granted under section 11A(3), a person must not provide an insurance or reinsurance service to—

(a)

a ship owned, controlled or operated by a person connected with the DPRK; or

(b)

a ship that is involved in an activity prohibited by the Security Council Resolutions. (L.N. 122 of 2018)

(2C)

Except under the authority of a licence granted under section 11A(5), a person must not provide a ship classification service to a ship if—

(a)

the ship—

(i)

was registered in the HKSAR and the registration was closed under section 64(6) of the Merchant Shipping (Registration) Ordinance (Cap. 415); or

(ii)

was registered in a place outside the HKSAR and the registration was closed (however described) by the authority of that place; and

(b)

the closure of registration was related to the ship’s involvement in an activity prohibited by the Security Council Resolutions. (L.N. 122 of 2018)

(2D)

Subject to section 10B(2), a person must not, directly or indirectly, deal with a relevant ship. (L.N. 122 of 2018)

(3)

A person who contravenes subsection (2), (2A), (2B), (2C) or (2D) commits an offence and is liable— (L.N. 122 of 2018)

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months. (L.N. 122 of 2018)

(3A)

It is a defence for a person charged with an offence under subsection (3) to prove that the person did not know and had no reason to believe—

(a)

for a contravention of subsection (2A)(a) or (b)—that the person to whom the ship or aircraft was leased or chartered, or to whom the crewing service was provided, was a relevant person, relevant entity or person connected with the DPRK;

(b)

for a contravention of subsection (2A)(e), (f) or (g)—that the ship concerned was registered in the DPRK;

(c)

for a contravention of subsection (2B)(a)—that the ship concerned was owned, controlled or operated by a person connected with the DPRK;

(d)

for a contravention of subsection (2B)(b)—that the ship concerned was involved in an activity prohibited by the Security Council Resolutions;

(e)

for a contravention of subsection (2C)—

(i)

that the registration of the ship concerned was closed; or

(ii)

that the closure of registration was related to the ship’s involvement in an activity prohibited by the Security Council Resolutions; or

(f)

for a contravention of subsection (2D)—that the ship concerned was a relevant ship. (L.N. 122 of 2018)

(4)

In this section— (L.N. 122 of 2018)

deal with (處理), in relation to a ship, means— (a)use (including use to obtain funds, goods or services in any way, such as by selling, hiring, chartering or mortgaging the ship); (b)alter, allow access to or transfer; (c)deal with in any other way that would result in any change in location, ownership, possession, character or destination; or (d)make any other change that would enable use; (L.N. 122 of 2018) relevant ship (相關船舶) means a ship named in the list published under section 31A(1); (L.N. 122 of 2018) specified services (指明服務), in relation to a ship, means the provision of any bunkering service to the ship or any of the following services— (L.N. 122 of 2018) (a)the provision of fuel to the ship; (b)the provision of tools or equipment for shipboard maintenance; (c)the provision of lubricants, chemicals, expendable parts, spare parts, supplies or any other requirements that are necessary for the safe operation of the ship; (d)the servicing or repair of any part of the ship or any item referred to in paragraphs (b) and (c).

10B. Exception to prohibition under section 10A

(1)

Section 10A(2) does not apply if the provision of the specified services concerned is necessary for humanitarian purposes. (L.N. 122 of 2018)

(2)

Section 10A(2D) does not apply if the ship concerned is dealt with in accordance with—

(a)

for a ship registered in the HKSAR—a direction given by the Director of Marine under section 10E(1); or

(b)

for a ship registered in a place outside the HKSAR—a direction given by the authority of that place for the purposes of paragraph 12(b) of Resolution 2321. (L.N. 122 of 2018)

10C.

(Repealed L.N. 122 of 2018)

10D. Prohibition against ship-to-ship transfer

(1)

Subsection (2) applies to—

(a)

a person acting in the HKSAR; and

(b)

a person acting outside the HKSAR who is—

(i)

both a Hong Kong permanent resident and a Chinese national; or

(ii)

a body incorporated or constituted under the law of the HKSAR.

(2)

A person must not facilitate or engage in a ship-to-ship transfer to or from a ship registered in the DPRK of any item that is being supplied, sold or transferred to or from the DPRK.

(3)

A person who contravenes subsection (2) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(4)

A ship registered in the HKSAR must not be used for facilitating or engaging in a ship-to-ship transfer to or from a ship registered in the DPRK of any item that is being supplied, sold or transferred to or from the DPRK.

(5)

If a ship registered in the HKSAR is used in contravention of subsection (4), the charterer, the operator and the master of the ship each commits an offence.

(6)

A person who commits an offence under subsection (5) is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(7)

It is a defence for a person charged with an offence under subsection (3) or (5) to prove that the person did not know and had no reason to believe—

(a)

that the item concerned was being supplied, sold or transferred to or from the DPRK; or

(b)

that the ship concerned was registered in the DPRK.

10E. Director of Marine to give directions to certain ships

(1)

If—

(a)

a ship registered in the HKSAR is designated by the Committee for the purposes of paragraph 12 of Resolution 2321; and

(b)

the Committee requires that the ship be directed to a port identified by the Committee,

the Director of Marine must direct the ship to the port.

(2)

Subsection (1) applies whether or not—

(a)

the ship is within the waters of Hong Kong; and

(b)

the port to which the ship is directed is in the HKSAR.

(3)

A charterer, operator or master of a ship who, without reasonable excuse, fails to comply with a direction given under subsection (1) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

10F. Prohibition against certain aircraft from taking off, landing and flying

(1)

This section applies to—

(a)

an aircraft that carries a supply-sanctioned item or luxury goods to the DPRK (except for a carriage under the authority of a licence, or a carriage referred to in section 3(2AAB) or 3B(2)); and

(b)

an aircraft that carries a procurement-sanctioned item from the DPRK (except for a carriage under the authority of a licence).

(2)

If the Director-General of Civil Aviation has information that provides reasonable grounds for the Director-General to believe that an aircraft is one to which this section applies, the Director-General must deny permission for the aircraft—

(a)

to take off from the HKSAR;

(b)

to land in the HKSAR, except in the circumstances specified in subsection (3); or

(c)

to fly within Hong Kong air space.

(3)

An aircraft to which this section applies may land in the HKSAR—

(a)

for the purpose of an inspection under section 17; or

(b)

in the case of an emergency.

(4)

The pilot in command of an aircraft to which permission is denied under subsection (2) must not cause the aircraft—

(a)

for subsection (2)(a)—to take off from the HKSAR;

(b)

for subsection (2)(b)—to land in the HKSAR; or

(c)

for subsection (2)(c)—to fly within Hong Kong air space.

(5)

A pilot in command who contravenes subsection (4) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

Division 9 — Property and Joint Ventures etc.

(Division 9 added L.N. 122 of 2018)

10G. Prohibition against certain activities in connection with immovable property

(1)

A person must not—

(a)

lease, or otherwise make available, immovable property, directly or indirectly, to the DPRK Government if the person knows or has reason to believe that the property is to be used for any purpose other than diplomatic or consular activities;

(b)

lease immovable property, directly or indirectly, from the DPRK Government; or

(c)

subject to subsection (2), engage in any activity linked to the use of immovable property that the DPRK Government owns or leases.

(2)

Subsection (1)(c) does not apply to the provision of goods and services which—

(a)

are essential for the functioning of a diplomatic mission or consular post; and

(b)

cannot be used to generate income or profit, directly or indirectly, for the DPRK Government.

(3)

A person who contravenes subsection (1) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(4)

It is a defence for a person charged with an offence under subsection (3) to prove that the person did not know and had no reason to believe—

(a)

for a contravention of subsection (1)(a)—that the immovable property concerned was leased, or otherwise made available, to the DPRK Government;

(b)

for a contravention of subsection (1)(b)—that the immovable property concerned was leased from the DPRK Government; or

(c)

for a contravention of subsection (1)(c)—that the activity concerned was linked to the use of immovable property that the DPRK Government owned or leased.

(5)

In this section—

DPRK Government (朝鮮政府) means— (a)an entity or body of the Government of the DPRK; or (b)a person acting on behalf of the Government of the DPRK.

10H. Prohibition against joint ventures or co-operative entities with persons connected with the DPRK

(1)

This section applies to—

(a)

a person acting in the HKSAR; and

(b)

a person acting outside the HKSAR who is—

(i)

both a Hong Kong permanent resident and a Chinese national; or

(ii)

a body incorporated or constituted under the law of the HKSAR.

(2)

Except under the authority of a licence granted under section 11B(1), a person must not—

(a)

establish, maintain or operate a joint venture or co-operative entity with a person connected with the DPRK; or

(b)

invest in such a joint venture or co-operative entity.

(3)

A person who contravenes subsection (2) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 7 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(4)

It is a defence for a person charged with an offence under subsection (3) to prove that the person did not know and had no reason to believe that the joint venture or co-operative entity concerned was one with a person connected with the DPRK.

Part 3 — Licences

10I. General licence for all prohibited acts

(1)

If on application the Chief Executive determines that the requirement in subsection (2) is met, the Chief Executive must grant a licence for doing an act prohibited by any provision of Part 2 (whether or not the act is one for which a licence may be granted under another provision of this Part).

(2)

The requirement is that the Committee determines that the act is—

(a)

necessary to facilitate the work of international and non-governmental organizations carrying out assistance and relief activities in the DPRK for the benefit of the civilian population of the DPRK; or

(b)

for any other purpose consistent with the objectives of the Security Council Resolutions.

10J. Licence for supply, sale, transfer or carriage of certain supply-sanctioned items

(1)

If on application the Chief Executive determines that the applicable requirements in subsection (2), (3), (4) or (5) are met, the Chief Executive must grant, as appropriate—

(a)

a licence for the supply, sale or transfer of, or the doing of any act likely to promote the supply, sale or transfer of, a supply-sanctioned item referred to in the subsection concerned—

(i)

to the DPRK;

(ii)

to, or to the order of, a person connected with the DPRK; or

(iii)

to a destination or person for the purpose of delivery or transfer, directly or indirectly to the DPRK or to, or to the order of, a person connected with the DPRK; or

(b)

a licence for the carriage of a supply-sanctioned item referred to in the subsection concerned that is, or forms part of, a carriage—

(i)

from a place outside the DPRK to a place in the DPRK;

(ii)

to, or to the order of, a person connected with the DPRK; or

(iii)

to a destination for the purpose of delivery or transfer, directly or indirectly to the DPRK or to, or to the order of, a person connected with the DPRK.

(2)

For a new helicopter or a new or used ship, the applicable requirement is that the Committee has approved the supply, sale, transfer or carriage of the helicopter or ship in advance on a case-by-case basis.

(3)

For a refined petroleum product, the applicable requirements are all of the following—

(a)

the supply, sale, transfer or carriage of the product will not result in the quota referred to in paragraph 5 of Resolution 2397 being exceeded;

(b)

information about all parties to the supply, sale, transfer or carriage of the product has been given to the Chief Executive;

(c)

the supply, sale, transfer or carriage of the product does not involve an individual or entity that is associated with the DPRK’s nuclear or ballistic missile programmes or other activities prohibited by the Security Council Resolutions (including a relevant person, a relevant entity, and an individual or entity assisting in the evasion of sanctions);

(d)

the supply, sale, transfer or carriage of the product is exclusively for livelihood purposes of the nationals of the DPRK and unrelated to generating revenue for the programmes or activities referred to in paragraph (c);

(e)

there is no instruction from the instructing authority not to allow the supply, sale, transfer or carriage of the product.

(4)

For crude oil, the applicable requirement is either—

(a)

the Committee has approved in advance on a case-by-case basis that the supply, sale, transfer or carriage of the crude oil is exclusively for livelihood purposes of the nationals of the DPRK and unrelated to the DPRK’s nuclear or ballistic missile programmes or other activities prohibited by the Security Council Resolutions; or

(b)

both of the following—

(i)

the supply, sale, transfer or carriage of the crude oil will not result in the quota referred to in paragraph 4 of Resolution 2397 being exceeded;

(ii)

there is no instruction from the instructing authority not to allow the supply, sale, transfer or carriage of the crude oil.

(5)

For an item specified in item 9 of Schedule 3, the applicable requirement is that the supply, sale, transfer or carriage of the item is for the provision of spare parts needed to maintain the safe operation of the DPRK’s commercial civilian passenger aircraft.

(6)

If on application the Chief Executive determines that the requirement in subsection (7) is met, the Chief Executive must grant, as appropriate—

(a)

a licence for the supply, sale or transfer of, or the doing of any act likely to promote the supply, sale or transfer of, aviation fuel—

(i)

to the DPRK; or

(ii)

to a destination or person for the purpose of delivery or transfer, directly or indirectly to the DPRK; or

(b)

a licence for the carriage of aviation fuel that is, or forms part of, a carriage—

(i)

from a place outside the DPRK to a place in the DPRK; or

(ii)

to a destination for the purpose of delivery or transfer, directly or indirectly to the DPRK.

(7)

The requirement is that the Committee has approved in advance on an exceptional case-by-case basis that the supply, sale, transfer or carriage of the aviation fuel to the DPRK is for verified essential humanitarian needs and is subject to specified arrangements for the effective monitoring of delivery and use.

10K. Licence for procurement of certain procurement-sanctioned items

(1)

If on application the Chief Executive determines that the applicable requirements in subsection (2), (3) or (4) are met, the Chief Executive must grant, as appropriate—

(a)

a licence for the procurement of, or the doing of any act likely to promote the procurement of, a procurement-sanctioned item referred to in the subsection concerned—

(i)

from the DPRK; or

(ii)

from a person connected with the DPRK; or

(b)

a licence for the use of a ship, aircraft or vehicle for or in connection with the procurement of a procurement-sanctioned item referred to in the subsection concerned—

(i)

from the DPRK; or

(ii)

from a person connected with the DPRK.

(2)

For coal, the applicable requirements are both of the following—

(a)

the authority of a place outside the DPRK confirms, on the basis of credible information, that the coal has originated in that place and is transported through the DPRK solely for export from the Port of Rajin (Rason);

(b)

the procurement is unrelated to generating revenue for the DPRK’s nuclear or ballistic missile programmes or other activities prohibited by the Security Council Resolutions.

(3)

For a statue, the applicable requirement is that the Committee has approved the procurement in advance on a case-by-case basis.

(4)

For textiles (within the meaning of item 15 of Schedule 4), the applicable requirement is that the Committee has approved the procurement in advance on a case-by-case basis.

10L. Licence for certain activities in connection with DPRK banks

(1)

If on application the Chief Executive determines that the requirement in subsection (2) is met, the Chief Executive must grant, as appropriate, a licence for—

(a)

establishing or maintaining a joint venture with a DPRK bank;

(b)

acquiring or maintaining an ownership interest in a DPRK bank; or

(c)

establishing or maintaining a correspondent banking relationship with a DPRK bank.

(2)

The requirement is that the Committee has approved the activity concerned in advance on a case-by-case basis.

10M. Licence for opening or maintaining certain bank accounts

(1)

If on application the Chief Executive determines that the requirements in subsection (2) are met, the Chief Executive must grant, as appropriate, a licence for opening a new bank account, or maintaining a bank account, for—

(a)

a diplomatic mission or consular post of the DPRK; or

(b)

an accredited diplomat or consular officer of the DPRK.

(2)

The requirements are both of the following—

(a)

the opening or maintaining of the bank account will not result in there being more than one bank account in the HKSAR for the diplomatic mission or consular post of the DPRK or the accredited diplomat or consular officer of the DPRK;

(b)

there is no instruction from the instructing authority not to allow the bank account to be opened or maintained.

10N. Licence for provision of financial support for trade with persons connected with the DPRK

(1)

If on application the Chief Executive determines that the requirement in subsection (2) is met, the Chief Executive must grant a licence for the provision of financial support for trade with a person connected with the DPRK.

(2)

The requirement is that the Committee has approved the financial support in advance on a case-by-case basis.

10O. Licence for engaging in certain scientific or technical co-operation

(1)

If on application the Chief Executive determines that the requirement in subsection (2) is met, the Chief Executive must, subject to subsection (3), grant a licence for engaging in scientific or technical co-operation involving a person officially sponsored by the DPRK or a person representing the DPRK.

(2)

The requirement is that—

(a)

for scientific or technical co-operation in the field of nuclear science and technology, aerospace and aeronautical engineering and technology, or advanced manufacturing production techniques and methods—the Committee has determined on a case-by-case basis that the co-operation will not contribute to the DPRK’s proliferation of sensitive nuclear activities or ballistic missile-related programmes; or

(b)

in any other case—the co-operation will not contribute to the DPRK’s proliferation of sensitive nuclear activities or ballistic missile-related programmes.

(3)

If the Chief Executive determines that the requirement in subsection (2)(b) is met, before granting the licence, the Chief Executive must cause the Committee to be notified of the determination.

11. Licence for making available funds, etc. to certain persons or entities or dealing with funds, etc. of certain persons or entities

( L.N. 5 of 2010)

(1)

If on application the Chief Executive determines that any of the requirements in subsection (2) is met, the Chief Executive must, subject to subsection (4), grant, as appropriate, a licence for—

(a)

making available funds or other financial assets or economic resources to, or for the benefit of, a relevant person or a relevant entity; or

(b)

dealing with funds or other financial assets or economic resources belonging to, or owned or controlled by, a relevant person or a relevant entity. (L.N. 5 of 2010; L.N. 115 of 2014)

(2)

The requirements are as follows— (L.N. 54 of 2013)

(a)

the funds or other financial assets or economic resources are—

(i)

necessary for basic expenses, including payment for foodstuffs, rents, mortgages, medicines, medical treatments, taxes, insurance premiums and public utility charges;

(ii)

exclusively for the payment of reasonable professional fees or reimbursement of incurred expenses associated with the provision of legal services under the law of the HKSAR; or (L.N. 122 of 2018)

(iii)

fees or service charges, under the law of the HKSAR, for the routine holding or maintenance of funds or other financial assets or economic resources belonging to, or owned or controlled by, a relevant person or a relevant entity; (L.N. 115 of 2014)

(b)

the funds or other financial assets or economic resources are necessary for extraordinary expenses;

(c)

the funds or other financial assets or economic resources—

(i)

are the subject of a judicial, administrative or arbitral lien or judgment that was entered before 14 October 2006 and is not for the benefit of a relevant person or a relevant entity or an individual or entity identified by the Committee or the Security Council; and (L.N. 140 of 2012)

(ii)

are to be used to satisfy the lien or judgment; (L.N. 5 of 2010; L.N. 122 of 2018)

(d)

both of the following—

(i)

the relevant person or relevant entity concerned falls within the definition of relevant person or relevant entity in section 1 because of the Foreign Trade Bank or the Korean National Insurance Company being named in the list published under section 31(1);

(ii)

the funds or other financial assets or economic resources are solely for—

(A)

the operation of diplomatic or consular missions in the DPRK; or

(B)

humanitarian assistance activities that are undertaken by, or in co-ordination with, the United Nations; (L.N. 122 of 2018)

(e)

both of the following—

(i)

the relevant person or relevant entity concerned falls within the definition of relevant person or relevant entity in section 1 because of an entity referred to in section 31(2)(c) being named in the list published under section 31(1);

(ii)

the funds or other financial assets or economic resources—

(A)

are required to carry out activities of the DPRK’s missions to the United Nations and its specialized agencies and related organizations or other diplomatic and consular missions of the DPRK; or

(B)

are, as determined by the Committee in advance on a case-by-case basis, required for the delivery of humanitarian assistance, denuclearization or any other purpose consistent with the objectives of Resolution 2270. (L.N. 122 of 2018)

(3)

(Repealed L.N. 5 of 2010)

(4)

If the Chief Executive determines that—

(a)

the requirement in subsection (2)(a) is met, the Chief Executive—

(i)

must cause the Committee to be notified of the intention to grant a licence under subsection (1); and

(ii)

must grant the licence in the absence of a negative decision by the Committee within 5 working days of the notification;

(b)

the requirement in subsection (2)(b) is met, the Chief Executive—

(i)

must cause the Committee to be notified of the determination; and

(ii)

must not grant the licence unless the Committee approves the determination;

(c)

the requirement in subsection (2)(c) is met, before granting the licence, the Chief Executive must cause the Committee to be notified of the determination. (L.N. 5 of 2010)

11A. Licence for certain activities in connection with ships and aircraft

(1)

If on application the Chief Executive determines that the requirement in subsection (2) is met, the Chief Executive must grant, as appropriate, a licence for—

(a)

leasing or chartering a ship or aircraft that is registered in the HKSAR to a relevant person, relevant entity or person connected with the DPRK;

(b)

providing a ship or aircraft crewing service to a relevant person, relevant entity or person connected with the DPRK;

(c)

registering a ship in the DPRK;

(d)

obtaining an authorization for a ship to use the flag of the DPRK;

(e)

owning, leasing, chartering or operating a ship registered in the DPRK;

(f)

providing a ship classification, certification or associated service to a ship registered in the DPRK; or

(g)

insuring a ship registered in the DPRK.

(2)

The requirement is that the Committee has approved the activity concerned in advance on a case-by-case basis.

(3)

If on application the Chief Executive determines that the requirement in subsection (4) is met, the Chief Executive must grant, as appropriate, a licence for the provision of an insurance or reinsurance service to—

(a)

a ship owned, controlled or operated by a person connected with the DPRK; or

(b)

a ship that is involved in an activity prohibited by the Security Council Resolutions.

(4)

The requirement is that the Committee determines on a case-by-case basis that—

(a)

the ship is engaged in activities exclusively for livelihood purposes and will not be used by the DPRK’s individuals or entities to generate revenue; or

(b)

the ship is engaged in activities exclusively for humanitarian purposes.

(5)

If on application the Chief Executive determines that the requirement in subsection (6) is met, the Chief Executive must grant a licence for the provision of a ship classification service to a ship where—

(a)

the ship—

(i)

was registered in the HKSAR and the registration was closed under section 64(6) of the Merchant Shipping (Registration) Ordinance (Cap. 415); or

(ii)

was registered in a place outside the HKSAR and the registration was closed (however described) by the authority of that place; and

(b)

the closure of registration was related to the ship’s involvement in an activity prohibited by the Security Council Resolutions.

(6)

The requirement is that the Committee has approved the provision of the ship classification service in advance on a case-by-case basis.

11B. Licence for joint ventures or co-operative entities with persons connected with the DPRK

(1)

If on application the Chief Executive determines that the requirement in subsection (2) is met, the Chief Executive must grant, as appropriate, a licence for—

(a)

establishing, maintaining or operating a joint venture or co-operative entity with a person connected with the DPRK; or

(b)

investing in such a joint venture or co-operative entity.

(2)

The requirement is that the Committee has approved the joint venture or co-operative entity in advance on a case-by-case basis.

12. Provision of false information or documents for purpose of obtaining licences

(1)

A person who, for the purpose of obtaining a licence, makes any statement or provides or produces any information or document that the person knows to be false in a material particular commits an offence and is liable— (L.N. 5 of 2010)

(a)

on conviction on indictment—to a fine and to imprisonment for 2 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(2)

A person who, for the purpose of obtaining a licence, recklessly makes any statement or provides or produces any information or document that is false in a material particular commits an offence and is liable— (L.N. 5 of 2010)

(a)

on conviction on indictment—to a fine and to imprisonment for 2 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

Part 4 — Things Done outside HKSAR

13. Licence or permission granted by authorities of places outside HKSAR

(1)

If the circumstances described in subsection (2) apply, a provision of this Regulation that prohibits the doing of a thing by a person except under the authority of a licence does not have effect in relation to any such thing done in a place outside the HKSAR by the person. (L.N. 5 of 2010)

(2)

For the purposes of subsection (1), the circumstances are that the thing is done by the person under the authority of a licence or with permission granted, in accordance with any law in force in that place outside the HKSAR (being a law substantially corresponding to the relevant provision of this Regulation), by the authority competent in that behalf under that law. (L.N. 5 of 2010)

Part 5 — Enforcement of Regulation

(Part 5 replaced L.N. 5 of 2010)

Division 1 — Investigation, etc. of Suspected Ships

14. Investigation of suspected ships

(1)

If any of the circumstances specified in subsection (1A) exists, an authorized officer may— (L.N. 115 of 2014; L.N. 122 of 2018)

(a)

either alone or accompanied and assisted by any person acting under the officer’s authority, board the ship concerned and search it and, for that purpose, use or authorize the use of reasonable force; and (L.N. 122 of 2018)

(b)

request the charterer, operator or master of the ship to provide any information relating to the ship or its cargo, or produce for inspection any of its cargo or any document relating to the ship or its cargo, that the officer may specify.

(1A)

The circumstances are as follows—

(a)

the authorized officer has reason to suspect that the ship is one to which section 3 or 5 applies and it has been, is being or is about to be used in contravention of section 3(2) or (2AA) or 5(2);

(b)

the authorized officer has reason to suspect that the ship is one to which section 3AA applies and it has been, is being or is about to be used as described in section 3AA(2)(a) and (b);

(c)

the ship carries cargo that has originated in the DPRK;

(d)

the ship carries cargo that is destined for the DPRK;

(e)

the ship carries cargo that has been brokered or facilitated by—

(i)

the Government or a national of the DPRK;

(ii)

an individual acting on behalf of, or at the direction of, the Government or a national of the DPRK;

(iii)

an entity acting on behalf of, or at the direction of, or owned or controlled by, the Government or a national of the DPRK;

(iv)

a relevant person; or

(v)

a relevant entity;

(f)

the ship carries cargo and is using the flag of the DPRK. (L.N. 122 of 2018)

(1B)

If an authorized officer has reason to suspect—

(a)

that a ship to which section 3 or 5 applies is being or is about to be used in contravention of section 3(2) or (2AA) or 5(2); or

(b)

that a ship to which section 3AA applies is being or is about to be used as described in section 3AA(2)(a) and (b),

the officer may, for the purpose of stopping or preventing the ship from being so used or pursuing enquiries, either there and then or on consideration of any information provided, or cargo or document produced, in response to a request made under subsection (1)(b), do one or more of the acts specified in subsection (2). (L.N. 122 of 2018)

(1C)

Also, if any of the circumstances specified in subsection (1A)(c), (d), (e) and (f) exists, an authorized officer may do one or more of the acts specified in subsection (2). (L.N. 122 of 2018)

(2)

The acts are as follows— (L.N. 122 of 2018)

(a)

directing the charterer, operator or master of the ship to refrain, except with the consent of an authorized officer, from landing, at any port specified by the authorized officer, any part of the ship’s cargo that is so specified; (L.N. 122 of 2018)

(b)

requesting the charterer, operator or master of the ship to take any of the following steps— (L.N. 122 of 2018)

(i)

to cause the ship and any of its cargo not to proceed with the voyage on which the ship is then engaged or about to be engaged until the charterer, operator or master is notified by an authorized officer that the ship and its cargo may so proceed;

(ii)

if the ship is in the HKSAR, to cause the ship and any of its cargo to remain in the HKSAR until the charterer, operator or master is notified by an authorized officer that the ship and its cargo may depart;

(iii)

if the ship is in any other place, to take the ship and any of its cargo to a port specified by an authorized officer, and to cause the ship and its cargo to remain in that place until the charterer, operator or master is notified by an authorized officer that the ship and its cargo may depart;

(iv)

to take the ship and any of its cargo to another destination specified by an authorized officer in agreement with the charterer, operator or master.

(3)

A power conferred by this section to request a person to provide any information or produce any cargo or document for inspection includes a power to—

(a)

specify whether the information should be provided orally or in writing and in what form; and

(b)

specify the time by which, and the place in which, the information should be provided or the cargo or document should be produced for inspection.

15. Offences by charterer, operator or master of ship

(1)

A charterer, operator or master of a ship who disobeys any direction given under section 14(2)(a), or, without reasonable excuse, refuses or fails to comply with a request made under section 14(1)(b) or (2)(b) within the time specified by an authorized officer or, if no time is specified, within a reasonable time, commits an offence and is liable on conviction to a fine at level 6 and to imprisonment for 6 months.

(2)

A charterer, operator or master of a ship who, in response to a request made under section 14(1)(b) or (2)(b), provides or produces to an authorized officer any information or document that the charterer, operator or master knows to be false in a material particular, or recklessly provides or produces to an authorized officer any information or document that is false in a material particular, commits an offence and is liable on conviction to a fine at level 6 and to imprisonment for 6 months.

16. Power of authorized officers to enter and detain ships

(1)

Without limiting section 15, if an authorized officer has reason to suspect that a request that has been made under section 14(2)(b) may not be complied with, the officer may take any steps that appear to the officer to be necessary to secure compliance with that request including, in particular, any of the following steps—

(a)

enter or authorize the entry on any land or the ship concerned;

(b)

detain or authorize the detention of that ship or any of its cargo;

(c)

use or authorize the use of reasonable force.

(2)

Subject to subsection (3), subsection (1) does not authorize the detention of a ship for more than 12 hours.

(3)

The Chief Secretary for Administration may, by order in writing, authorize the detention of a ship for further periods of not more than 12 hours each, and the order must state the time from which, and period for which, the order is effective.

Division 2 — Investigation, etc. of Suspected Aircraft

17. Investigation of suspected aircraft

(1)

If any of the circumstances specified in subsection (1A) exists, an authorized officer may— (L.N. 115 of 2014; L.N. 122 of 2018)

(a)

either alone or accompanied and assisted by any person acting under the officer’s authority, board the aircraft concerned and search it and, for that purpose, use or authorize the use of reasonable force; and (L.N. 122 of 2018)

(b)

request the charterer, operator or pilot in command of the aircraft to provide any information relating to the aircraft or its cargo, or produce for inspection any of its cargo or any document relating to the aircraft or its cargo, that the officer may specify.

(1A)

The circumstances are as follows—

(a)

the authorized officer has reason to suspect that the aircraft is one to which section 3 or 5 applies and it has been, is being or is about to be used in contravention of section 3(2) or (2AA) or 5(2);

(b)

the authorized officer has reason to suspect that the aircraft is one to which section 3AA applies and it has been, is being or is about to be used as described in section 3AA(2)(a) and (b);

(c)

the aircraft carries cargo that has originated in the DPRK;

(d)

the aircraft carries cargo that is destined for the DPRK;

(e)

the aircraft carries cargo that has been brokered or facilitated by—

(i)

the Government or a national of the DPRK;

(ii)

an individual acting on behalf of, or at the direction of, the Government or a national of the DPRK;

(iii)

an entity acting on behalf of, or at the direction of, or owned or controlled by, the Government or a national of the DPRK;

(iv)

a relevant person; or

(v)

a relevant entity;

(f)

the aircraft is using the flag of the DPRK. (L.N. 122 of 2018)

(2)

If the aircraft referred to in subsection (1) is in the HKSAR, an authorized officer may, either there and then or on consideration of any information provided or cargo or document produced in response to a request made under subsection (1)(b), further request the charterer, operator or pilot in command of the aircraft to cause the aircraft and any of its cargo to remain in the HKSAR until the charterer, operator or pilot in command is notified by an authorized officer that the aircraft and its cargo may depart.

(3)

A power conferred by this section to request a person to provide any information or produce any cargo or document for inspection includes a power to—

(a)

specify whether the information should be provided orally or in writing and in what form; and

(b)

specify the time by which, and the place in which, the information should be provided or the cargo or document should be produced for inspection.

18. Offences by charterer, operator or pilot in command of aircraft

(1)

A charterer, operator or pilot in command of an aircraft who, without reasonable excuse, refuses or fails to comply with a request made under section 17(1)(b) or (2) within the time specified by an authorized officer or, if no time is specified, within a reasonable time, commits an offence and is liable on conviction to a fine at level 6 and to imprisonment for 6 months.

(2)

A charterer, operator or pilot in command of an aircraft who, in response to a request made under section 17(1)(b) or (2), provides or produces to an authorized officer any information or document that the charterer, operator or pilot in command knows to be false in a material particular, or recklessly provides or produces to an authorized officer any information or document that is false in a material particular, commits an offence and is liable on conviction to a fine at level 6 and to imprisonment for 6 months.

19. Power of authorized officers to enter and detain aircraft

(1)

Without limiting section 18, if an authorized officer has reason to suspect that a request that has been made under section 17(2) may not be complied with, the officer may take any steps that appear to the officer to be necessary to secure compliance with that request including, in particular, any of the following steps—

(a)

enter or authorize the entry on any land or the aircraft concerned;

(b)

detain or authorize the detention of that aircraft or any of its cargo;

(c)

use or authorize the use of reasonable force.

(2)

Subject to subsection (3), subsection (1) does not authorize the detention of an aircraft for more than 6 hours.

(3)

The Chief Secretary for Administration may, by order in writing, authorize the detention of an aircraft for further periods of not more than 6 hours each, and the order must state the time from which, and period for which, the order is effective.

Division 3 — Investigation, etc. of Suspected Vehicles

20. Investigation of suspected vehicles

(1)

If any of the circumstances specified in subsection (1A) exists, an authorized officer may— (L.N. 115 of 2014; L.N. 122 of 2018)

(a)

either alone or accompanied and assisted by any person acting under the officer’s authority, board the vehicle concerned and search it and, for that purpose, use or authorize the use of reasonable force; (L.N. 122 of 2018)

(b)

request the operator or driver of the vehicle to provide any information relating to the vehicle or any article carried on it, or produce for inspection any article carried on it or any document relating to the vehicle or any article carried on it, that the officer may specify; and

(c)

further request, either there and then or on consideration of any information provided or article or document produced in response to a request made under paragraph (b), the operator or driver to take the vehicle and any article carried on it to a place specified by an authorized officer, and to cause the vehicle and the article to remain in that place until the operator or driver is notified by an authorized officer that the vehicle and the article may depart.

(1A)

The circumstances are as follows—

(a)

the authorized officer has reason to suspect that the vehicle is one in the HKSAR and it has been, is being or is about to be used in contravention of section 3(2) or (2AA) or 5(2);

(b)

the authorized officer has reason to suspect that the vehicle is one in the HKSAR and it has been, is being or is about to be used as described in section 3AA(2)(a) and (b);

(c)

the vehicle carries cargo that has originated in the DPRK;

(d)

the vehicle carries cargo that is destined for the DPRK;

(e)

the vehicle carries cargo that has been brokered or facilitated by—

(i)

the Government or a national of the DPRK;

(ii)

an individual acting on behalf of, or at the direction of, the Government or a national of the DPRK;

(iii)

an entity acting on behalf of, or at the direction of, or owned or controlled by, the Government or a national of the DPRK;

(iv)

a relevant person; or

(v)

a relevant entity. (L.N. 122 of 2018)

(2)

A power conferred by this section to request a person to provide any information or produce any article or document for inspection includes a power to—

(a)

specify whether the information should be provided orally or in writing and in what form; and

(b)

specify the time by which, and the place in which, the information should be provided or the article or document should be produced for inspection.

21. Offences by operator or driver of vehicle

(1)

An operator or driver of a vehicle who, without reasonable excuse, refuses or fails to comply with a request made under section 20(1)(b) or (c) within the time specified by an authorized officer or, if no time is specified, within a reasonable time, commits an offence and is liable on conviction to a fine at level 6 and to imprisonment for 6 months.

(2)

An operator or driver of a vehicle who, in response to a request made under section 20(1)(b) or (c), provides or produces to an authorized officer any information or document that the operator or driver knows to be false in a material particular, or recklessly provides or produces to an authorized officer any information or document that is false in a material particular, commits an offence and is liable on conviction to a fine at level 6 and to imprisonment for 6 months.

22. Power of authorized officers to enter and detain vehicles

(1)

Without limiting section 21, if an authorized officer has reason to suspect that a request that has been made under section 20(1)(c) may not be complied with, the officer may take any steps that appear to the officer to be necessary to secure compliance with that request including, in particular, any of the following steps—

(a)

enter or authorize the entry on any land or enter or authorize the entry into the vehicle concerned;

(b)

detain or authorize the detention of that vehicle or any article carried on it;

(c)

use or authorize the use of reasonable force.

(2)

Subject to subsection (3), subsection (1) does not authorize the detention of a vehicle for more than 12 hours.

(3)

The Commissioner may, by order in writing, authorize the detention of a vehicle for further periods of not more than 12 hours each, and the order must state the time from which, and period for which, the order is effective.

Division 3A — Powers to Search, Arrest, etc.

(Division 3A added L.N. 122 of 2018)

22A. Powers to stop and search etc.

(1)

If an authorized officer has reasonable grounds to suspect that an offence under this Regulation has been, is being or is about to be committed, the officer may do one or more of the following—

(a)

stop and search a person arriving in or about to leave the HKSAR and examine anything in the person’s possession;

(b)

examine at a point of entry to or exit from the HKSAR—

(i)

any cargo (other than any baggage), together with any manifest and supporting documents;

(ii)

any unaccompanied baggage; or

(iii)

any unaccompanied personal belongings;

(c)

examine any cargo (other than any baggage), together with any manifest and supporting documents—

(i)

at a place where the cargo is stored before it is exported from the HKSAR; or

(ii)

at a place where the cargo is stored after it has been imported into the HKSAR and before, or at the time of, its collection by the consignee.

(2)

An authorized officer may seize and detain anything—

(a)

found as a result of the exercise of a power under subsection (1); and

(b)

that the officer reasonably suspects to be connected with a contravention of this Regulation.

(3)

A person may only be searched under this section by a person who is of the same sex.

(4)

An authorized officer may use any force reasonably necessary for exercising a power under subsection (1) or (2).

22B. Arrest and detention

(1)

An authorized officer may without warrant arrest or detain for further inquiries a person whom the officer reasonably suspects of having contravened this Regulation.

(2)

An authorized officer who arrests a person under subsection (1) must take the person to a police station to be dealt with in accordance with the Police Force Ordinance (Cap. 232).

(3)

However, if further inquiries are necessary, an authorized officer (other than a police officer) may take the person to an office of the Customs and Excise Department for further inquiries before taking the person to a police station in accordance with subsection (2).

(4)

A person must not be detained for more than 48 hours from the time the person is arrested without being charged and brought before a magistrate.

(5)

An authorized officer who arrests a person may require the person to give the person’s name and to produce evidence of identity to the officer.

(6)

If a person forcibly resists or attempts to evade arrest under this section, an authorized officer may use any force reasonably necessary to effect the arrest.

Division 4 — Proof of Identity

23. Production of proof of identity

Before or on exercising a power conferred by section 14, 16, 17, 19, 20, 22, 22A or 22B, an authorized officer must, if requested by any person so to do, produce proof of the officer’s identity to the person for inspection.

Part 6 — Evidence

Division 1 — Interpretation

(Division 1 added L.N. 122 of 2018)

23A. Interpretation of Part 6

In this Part—

material (材料) includes any book, document or other record in any form, and any article or substance; possession (管有) includes control; premises (處所) includes any place and, in particular, includes— (a)any ship, aircraft, vehicle or offshore structure; and (b)any tent or movable structure; seized property (被檢取財產) means anything seized under section 22A(2) or 24(3).

Division 2 — Making Material Available

(Division 2 added L.N. 122 of 2018)

23B. Order to make material available

(1)

The Secretary for Justice or an authorized officer may, for the purpose of an investigation into an offence under this Regulation, make an ex parte application, by information on oath, to a judge for an order under subsection (2) in relation to particular material or to material of a particular description.

(2)

Subject to subsection (3), the judge may on the application make an order—

(a)

that the person who appears to the judge to be in possession of the material must, within the period specified in the order—

(i)

produce the material to an authorized officer for the officer to take away; or

(ii)

give an authorized officer access to the material;

(b)

that the person who appears to the judge likely to come into possession of the material must, within the period specified in the order—

(i)

produce the material to an authorized officer for the officer to take away; or

(ii)

give an authorized officer access to the material; or

(c)

in terms both of paragraphs (a) and (b).

(3)

The judge may make the order only if the judge is satisfied—

(a)

that there are reasonable grounds for suspecting that the offence has been committed;

(b)

that there are reasonable grounds for believing that the material is likely to be relevant to the investigation for the purpose of which the application is made;

(c)

that there are reasonable grounds for believing that it is in the public interest that the material should be produced or that access to it should be given, having regard to—

(i)

the benefit likely to accrue to the investigation if the material is obtained; and

(ii)

the circumstances under which the person in possession of the material holds, or will hold, it; and

(d)

for an application relating to material of a particular description—that an application in relation to particular material is not reasonably practicable.

(4)

The period to be specified in the order must be—

(a)

for subsection (2)(a)—a period of 7 days after the date on which the order is served on the person concerned; or

(b)

for subsection (2)(b)—a period of 7 days after the later of the following dates—

(i)

the date on which the order is served on the person concerned;

(ii)

the date on which the person concerned comes into possession of the material,

unless it appears to the judge that a longer or shorter period would be appropriate in the particular circumstances of the application.

(5)

If the application relates to material outside the HKSAR, it may be made only by the Secretary for Justice.

(6)

The application must be heard in camera.

(7)

As soon as practicable after an order is made under subsection (2), the Secretary for Justice or authorized officer must serve the order personally on the person who is subject to the order.

23C. Supplementary provisions to section 23B

(1)

An order under section 23B(2), in so far as it is in terms of paragraph (b) of that section, ceases to have effect on the expiry of—

(a)

3 months after the date on which the order is made; or

(b)

any lesser period specified in the order.

(2)

However, subsection (1) does not—

(a)

affect any obligation incurred under the order before it ceases to have effect; or

(b)

prevent, whether before or after the order (first order) ceases to have effect, the making of any further order under section 23B(2) in respect of the person who is subject to the first order.

(3)

If a judge makes an order under section 23B(2)(a)(ii) or (b)(ii) in relation to material on any premises, a judge may, on the same application or a subsequent application by the Secretary for Justice or an authorized officer, order any person who appears to the judge to be entitled to grant entry to the premises to allow an authorized officer to enter the premises to obtain access to the material.

(4)

If the material to which an application under section 23B(1) relates consists of information recorded otherwise than in a legible form—

(a)

an order under section 23B(2)(a)(i) or (b)(i) has effect as an order to produce the material in a form in which it can be taken away; and

(b)

an order under section 23B(2)(a)(ii) or (b)(ii) has effect as an order to give access to the material in a form in which it is visible and legible.

(5)

If an order under section 23B(2)(a)(i) or (b)(i) relates to information recorded otherwise than in a legible form, an authorized officer may, by notice in writing served on the person concerned—

(a)

require the person to produce the material in a form in which it is visible and legible and can be taken away; and

(b)

release the person from any obligation under the order to produce the material in the form in which it was recorded.

(6)

An authorized officer may photograph or make copies of any material produced under this section or section 23B.

(7)

Subject to section 23F, a person is not excused from producing any material in relation to which an order under section 23B(2) is made on the ground that to do so would breach an obligation as to secrecy or another restriction on the disclosure of information imposed by statute or otherwise.

(8)

An application under subsection (3) must be heard in camera.

23D. Revocation or variation of order under section 23B or 23C

(1)

A person who is subject to an order under section 23B(2) or 23C(3) may apply for the revocation or variation of the order.

(2)

The application must be made to a judge by a summons supported by an affidavit.

(3)

The summons and affidavit in support must state the grounds on which the applicant seeks the revocation or variation of the order and the relevant facts.

(4)

The summons and a copy of the affidavit in support must be served on the Secretary for Justice not less than 3 clear days before the date fixed for the hearing of the application.

(5)

At the hearing of the application, the judge may revoke or vary the order as the judge considers appropriate.

23E. Procedures for application under section 23B, 23C or 23D

(1)

This section applies to an application made under section 23B, 23C or 23D.

(2)

At the hearing of the application, a judge may receive evidence.

(3)

All documents and information relating to the application must be treated as confidential.

(4)

All documents, and anything containing any information, relating to the application must, immediately after the application is determined, be placed in a packet and sealed by order of the judge hearing the application.

(5)

The packet—

(a)

must be kept in the custody of the court in a place to which the public has no access or in another place authorized by the judge;

(b)

must not be opened, and its contents must not be removed, except by order of a judge; and

(c)

must not be destroyed except by order of a judge.

23F. Privileges

(1)

An order under section 23B(2) does not—

(a)

confer any right to production of, or access to, any item subject to legal professional privilege; or

(b)

restrict the privilege against self-incrimination.

(2)

If, in the course of the exercise of powers conferred by an order under section 23B(2), a claim of legal professional privilege is made in respect of any material, the person making the claim must—

(a)

in the presence of an authorized officer, secure the material in a sealed container;

(b)

deposit the sealed container with a judge as soon as practicable or handle the sealed container in another way as directed by a judge;

(c)

within 3 days of so depositing or handling the sealed container, apply to a judge by a summons supported by an affidavit for a declaration that the material is an item subject to legal professional privilege; and

(d)

not less than 3 clear days before the date fixed for the hearing of the application, serve the summons and a copy of the affidavit in support on the Secretary for Justice.

23G. Offence for failure to comply with order under section 23B

A person who, without reasonable excuse, fails to comply with an order under section 23B(2) commits an offence and is liable on conviction to a fine at level 6 and to imprisonment for 6 months.

23H. Investigation not to be prejudiced

(1)

This section applies if an order under section 23B(2) has been made, or has been applied for and has not been refused.

(2)

A person who knows or suspects that an investigation in relation to which the order has been made or applied for is taking place must not—

(a)

without lawful authority or reasonable excuse, make any disclosure intending to prejudice the investigation; or

(b)

falsify, conceal, destroy or otherwise dispose of, or cause or permit the falsification, concealment, destruction or disposal of, any material—

(i)

knowing or suspecting that the material is likely to be relevant to the investigation; and

(ii)

intending to conceal the facts disclosed by the material from persons carrying out the investigation.

(3)

If a person has been arrested in connection with an investigation referred to in subsection (2), that subsection does not apply as regards any disclosure in respect of the investigation made after the arrest.

(4)

A person who contravenes subsection (2) commits an offence and is liable—

(a)

on conviction on indictment—to a fine and to imprisonment for 2 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

Division 3 — Search Warrant

24. Power of magistrate or judge to grant warrant

(1)

A magistrate or judge may grant a warrant if satisfied by information on oath given by an authorized officer that there are reasonable grounds for suspecting that— (L.N. 5 of 2010)

(a)

an offence under this Regulation has been committed or is being committed; and

(b)

there is on any premises specified in the information evidence in relation to the commission of the offence.

(2)

A warrant granted under subsection (1) may authorize any authorized officer, together with any other person named in the warrant, to enter the premises specified in the information at any time within one month from the date of the warrant, and to search the premises.

(3)

A person authorized by a warrant to search any premises may exercise any or all of the following powers— (L.N. 122 of 2018)

(a)

search any person who is found on, or whom the authorized person has reasonable grounds to believe to have recently left or to be about to enter, the premises; (L.N. 5 of 2010)

(b)

seize and detain anything found on the premises or on any person referred to in paragraph (a) that the authorized person has reasonable grounds to believe to be evidence in relation to the commission of an offence under this Regulation; (L.N. 5 of 2010)

(c)

take in relation to anything seized under paragraph (b) any other steps that may appear necessary for preserving it and preventing interference with it. (L.N. 5 of 2010)

(4)

A person may only be searched under this section by a person who is of the same sex.

(5)

If a person is empowered under this section to enter any premises, the person may use any force that is reasonably necessary for that purpose. (L.N. 5 of 2010)

Division 4 — Forfeiture and Detention of Seized Property

24A. Seized property liable to forfeiture

(1)

If an authorized officer intends to apply to a magistrate or judge under section 24B for an order for forfeiture of any seized property, the officer must, within 30 days from the date of the seizure, serve notice of that intention on every person who was, to the knowledge of the officer at the time of, or immediately after, the seizure, an owner of the seized property.

(2)

A notice under subsection (1) is to be regarded as having been duly served on a person if—

(a)

it is delivered personally to the person;

(b)

it is sent by registered post addressed to the person at any place of residence or business of the person known to the authorized officer; or

(c)

where the notice cannot be served in accordance with paragraph (a) or (b), the notice is exhibited at the offices of the Customs and Excise Department, in a place to which the public have access, for a period of not less than 7 days commencing within 30 days from the date of the seizure of the seized property.

(3)

An owner, or the authorized agent of an owner, of the seized property referred to in a notice served under subsection (1), or a person who was in possession of the seized property at the time of seizure, or a person who has a legal or equitable interest in the seized property, may object to the proposed forfeiture by serving a notice in writing on the Commissioner.

(4)

A notice of objection under subsection (3)—

(a)

must be served on the Commissioner by a person referred to in subsection (3) (claimant) within 30 days from—

(i)

if the notice under subsection (1) is delivered personally to the person named in the notice, the date of delivery;

(ii)

if the notice under subsection (1) is sent by registered post, 2 days after the date of posting; or

(iii)

if the notice under subsection (1) is exhibited as described in subsection (2)(c), the first day it is so exhibited;

(b)

must state the claimant’s full name and address for service in Hong Kong; and

(c)

if the claimant does not have a permanent address in Hong Kong, must state the name and address of a solicitor who is qualified to practise under the Legal Practitioners Ordinance (Cap. 159) and is authorized to accept service on behalf of the claimant in relation to any forfeiture proceedings.

(5)

An authorized officer may apply to a magistrate or judge for an order for forfeiture of any seized property in respect of which a notice has been served under subsection (1)— (L.N. 122 of 2018)

(a)

after the expiration of the appropriate period of time specified in subsection (4)(a) for the serving of a notice of objection; or

(b)

if a notice of objection is served in accordance with subsections (3) and (4), after the receipt of the notice.

24B. Power of magistrate or judge to make order for forfeiture and disposal

(1)

If an application is made to a magistrate or judge for an order for forfeiture of any seized property, the magistrate or judge may, if satisfied that the seized property is a prohibited item or a document relating to the provision, manufacture, maintenance or use of a prohibited item, make such order as the magistrate or judge considers appropriate for the forfeiture of the seized property and its subsequent destruction or disposal. (L.N. 122 of 2018)

(2)

An order under subsection (1) may be made in respect of any seized property whether or not any person has been convicted of any offence in connection with the seized property. (L.N. 122 of 2018)

(3)

Before making an order for forfeiture of any seized property, a magistrate or judge must issue a summons to any person who serves a notice of objection in accordance with section 24A(3) and (4) to appear on a day specified in the summons to show cause why the seized property should not be forfeited. (L.N. 122 of 2018)

(4)

If any summons issued under subsection (3) has not for any reason been served and the magistrate or judge is satisfied that all reasonable efforts have been made to serve the summons on the person named in the summons, the magistrate or judge may make an order for forfeiture under this section despite the fact that the summons has not been served on that person.

25. Detention of seized property

(1)

Subject to subsection (2) and any order made under section 24B, any seized property may not be detained for more than 3 months.

(2)

If the seized property is relevant to an offence under this Regulation, and proceedings for the offence have begun, it may be detained until the completion of those proceedings.

Part 7 — Disclosure of Information or Documents

26. Disclosure of information or documents

(1)

Any information or document provided, produced or seized under this Regulation may be disclosed only if— (L.N. 5 of 2010)

(a)

the person who provided or produced the information or document or from whom the document was seized has given consent to the disclosure; (L.N. 5 of 2010)

(b)

the information or document is disclosed to a person who would have been empowered under this Regulation to request that it be provided or produced;

(c)

the information or document is disclosed on the authority of the Chief Executive, subject to the information or document being transmitted through and with the approval of the instructing authority, to—

(i)

any organ of the United Nations;

(ii)

any person in the service of the United Nations; or

(iii)

the Government of any place outside the People’s Republic of China,

for the purpose of assisting the United Nations or that Government in securing compliance with, or detecting evasion of, measures in relation to the DPRK decided on by the Security Council; or (L.N. 5 of 2010)

(d)

the information or document is disclosed with a view to the institution of, or otherwise for the purposes of, any proceedings for an offence under this Regulation.

(2)

For the purposes of subsection (1)(a)—

(a)

a person may not give consent to the disclosure if the person has obtained the information or possessed the document only in the person’s capacity as servant or agent of another person; and (L.N. 5 of 2010)

(b)

a person may give consent to the disclosure if the person is entitled to the information or to the possession of the document in the person’s own right. (L.N. 5 of 2010)

Part 8 — Other Offences and Miscellaneous Matters

27. Liability of persons other than principal offenders

(1)

If the person convicted of an offence under this Regulation is a body corporate and it is proved that the offence was committed with the consent or connivance of, or was attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate, the director, manager, secretary or other similar officer is guilty of the like offence.

(2)

If the person convicted of an offence under this Regulation is a firm and it is proved that the offence was committed with the consent or connivance of, or was attributable to any neglect on the part of, any partner in the firm or any person concerned in the management of the firm, the partner or the person concerned in the management of the firm is guilty of the like offence.

28. Offences in relation to obstruction of authorized persons, etc.

A person who obstructs another person (including a person acting under the authority of an authorized officer) in the exercise of the powers of that other person under this Regulation commits an offence and is liable on conviction to a fine at level 6 and to imprisonment for 6 months.

29. Offences in relation to evasion of this Regulation

A person who destroys, mutilates, defaces, secretes or removes anything with intent to evade any of the provisions of this Regulation commits an offence and is liable— (L.N. 5 of 2010; L.N. 122 of 2018)

(a)

on conviction on indictment—to a fine and to imprisonment for 2 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

30. Consent and time limit for proceedings

(1)

Proceedings for an offence under this Regulation may only be instituted by or with the consent of the Secretary for Justice.

(2)

Summary proceedings for an offence under this Regulation that is alleged to have been committed outside the HKSAR may be commenced at any time not later than 12 months from the date on which the person charged first enters the HKSAR after the alleged commission of the offence. (L.N. 5 of 2010)

31. Publication of list of individuals and entities by Secretary

(1)

The Secretary may publish on the website of the Commerce and Economic Development Bureau a list of individuals and entities for the purposes of the definitions of relevant person and relevant entity in section 1.

(2)

The Secretary may include in the list the name of—

(a)

an individual or entity designated by the Committee or the Security Council for the purposes of paragraph 8(d) of Resolution 1718;

(b)

an individual or entity to whom measures referred to in paragraph 8(d) of Resolution 1718 apply under a decision of the Committee or the Security Council; or

(c)

an entity of the Government of the DPRK or of the Worker’s Party of Korea determined by the instructing authority as an entity associated with the DPRK’s nuclear or ballistic missile programmes or other activities prohibited by Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270.

(3)

The list may also contain other information that the Secretary considers appropriate.

(4)

The Secretary may remove the name of an individual or entity from the list if the individual or entity no longer meets the description under subsection (2).

(5)

If a list is published under subsection (1), the Secretary is to make a copy of the list available for inspection by the public free of charge at the office of the Secretary during normal office hours.

(6)

In any legal proceedings, a document purporting to be a copy printed from the website referred to in subsection (1)—

(a)

is admissible in evidence on production without further proof; and

(b)

unless the contrary is proved, is evidence of the information contained in the list of individuals and entities referred to in that subsection.

31A. Publication of list of ships by Secretary

(1)

The Secretary may publish on the website of the Commerce and Economic Development Bureau a list of ships for the purposes of the definition of relevant ship in section 10A(4).

(2)

The Secretary may include in the list the name of—

(a)

a ship designated by the Committee or the Security Council for the purposes of paragraph 8(d) of Resolution 1718, paragraph 12 of Resolution 2270 or paragraph 12 of Resolution 2321; or

(b)

a ship to which measures referred to in paragraph 8(d) of Resolution 1718, paragraph 12 of Resolution 2270 or paragraph 12 of Resolution 2321 apply under a decision of the Committee or the Security Council.

(3)

The list may also contain other information that the Secretary considers appropriate.

(4)

The Secretary may remove the name of a ship from the list if the ship no longer meets the description under subsection (2).

(5)

(6)

In any legal proceedings, a document purporting to be a copy printed from the website referred to in subsection (1)—

(a)

is admissible in evidence on production without further proof; and

(b)

unless the contrary is proved, is evidence of the information contained in the list of ships referred to in that subsection.

32. Access to Security Council Resolutions etc.

The Director-General of Trade and Industry is to make available at his or her office, for inspection by the public during normal office hours, free of charge, an English version and a Chinese version of each of the following documents— (L.N. 5 of 2010)

(aa)

the Security Council Resolutions; (L.N. 122 of 2018)

(a)

the Security Council document S/2006/814;

(b)

the Security Council document S/2006/815;

(c)

the Security Council document S/2006/853;

(d)

the Security Council document S/2006/853/Corr.1; (L.N. 5 of 2010)

(e)

the International Atomic Energy Agency document INFCIRC/254/Rev. 9/Part 1a; (L.N. 5 of 2010)

(f)

the International Atomic Energy Agency document INFCIRC/254/Rev. 7/Part 2a; (L.N. 5 of 2010)

(g)

the Security Council document S/2009/205; (L.N. 5 of 2010; L.N. 140 of 2012)

(h)

the Security Council document S/2012/235; (L.N. 140 of 2012)

(i)

the International Atomic Energy Agency document INFCIRC/254/Rev. 10/Part 1; (L.N. 140 of 2012; L.N. 54 of 2013)

(j)

the International Atomic Energy Agency document INFCIRC/254/Rev. 12/Part 1; (L.N. 115 of 2014)

(k)

the International Atomic Energy Agency document INFCIRC/254/Rev. 9/Part 2; (L.N. 115 of 2014)

(l)

the Security Council document S/2014/253; (L.N. 115 of 2014; L.N. 122 of 2018)

(m)

the Security Council document S/2016/308; (L.N. 122 of 2018)

(n)

the Security Council document S/2016/1069; (L.N. 122 of 2018)

(o)

the Security Council document S/2017/728; (L.N. 122 of 2018)

(p)

the Security Council document S/2017/760; (L.N. 122 of 2018)

(q)

the Security Council document S/2017/822; (L.N. 122 of 2018)

(r)

the Security Council document S/2017/829. (L.N. 122 of 2018)

33. Exercise of powers of Chief Executive

(1)

The Chief Executive may delegate any of the Chief Executive’s powers or functions under this Regulation to any person or class or description of person.

(2)

The Chief Executive may authorize a person to whom a power or function is delegated to sub-delegate it to any other person or class or description of person.

(3)

A delegation or authorization under subsection (1) or (2) may be subject to any restrictions or conditions that the Chief Executive considers appropriate. (L.N. 122 of 2018)

34. Exercise of powers of Secretary

(1)

The Secretary may delegate any of the Secretary’s powers or functions under this Regulation to any person or class or description of person.

(2)

A delegation under subsection (1) may be subject to any restrictions or conditions that the Secretary considers appropriate.

35. Transitional provision for United Nations Sanctions (Democratic People’s Republic of Korea) (Amendment) Regulation 2018

During the period from the commencement date of the United Nations Sanctions (Democratic People’s Republic of Korea) (Amendment) Regulation 2018 (L.N. 122 of 2018) to 31 July 2018, section 5F(1) does not apply in relation to a bank account that was maintained by a financial institution immediately before that commencement date.

(L.N. 122 of 2018; E.R. 3 of 2022)

Editorial Note: Commencement date: 22 June 2018.

Schedule 1 — Luxury Goods

[s. 1](L.N. 115 of 2014)

1. Jewelry

(1)

Jewelry which contains any, or any combination of, the following materials—

(a)

pearl;

(b)

diamond;

(c)

sapphire;

(d)

ruby;

(e)

emerald;

(f)

silver;

(g)

gold;

(h)

platinum.

(2)

In this section—

jewelry (首飾) means— (a)a small object of personal adornment; or (b)an article of personal use of a kind carried in the pocket, in the handbag or on a person.

2. Transportation item

(1)

A yacht.

(2)

A motor vehicle constructed or adapted for the carriage of not more than 8 persons (including a driver).

(3)

An aquatic recreational vehicle (such as a personal watercraft). (L.N. 122 of 2018)

(4)

A snowmobile valued greater than US$2,000. (L.N. 122 of 2018)

3. Others

(1)

A wrist watch, pocket watch, or any other watch, with a case of precious metal or of metal clad with precious metal.

(2)

An item of lead crystal.

(3)

Sporting goods or equipment.

(4)

A rug or tapestry valued greater than US$500.

(5)

Tableware of porcelain or bone china valued greater than US$100.

Schedule 2 — Specified Items

[s. 1]