LegCo approved a resolution under the Dutiable Commodities Ordinance to amend regulations to provide duty exemption for methanol used as fuel for outbound vessels.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On October 15, 2025, LegCo approved a resolution under the Dutiable Commodities Ordinance (section 6 of Cap. 109) - Dutiable Commodities (Amendment) Regulation 2025, which proposes an amendment to provide duty exemption for methanol ("MA") used as fuel for outbound vessels.
This proposal aligns with the global trend of adopting low-emission fuels in the maritime industry and Hong Kong's goal to bolster its green bunkering capabilities. The justification for the amendment is based on the significant cost increase due to high MA duty in Hong Kong, which hampers the competitiveness of local ports.
Exempting MA duty for outbound vessels will make Hong Kong a preferred center for green bunkering, attracting more businesses and enhancing its environmental sustainability.
The subsidiary legislation involves providing duty exemption for methanol used as fuel for outbound vessels under Regulation 12 of Cap. 109A. This amendment allows for duty exemption with written approval from the Commissioner of Customs and Excise for MA placed in fuel tanks of outbound vessels.
The implementation plan involves gazetting the Amendment Regulation following LegCo's approval and preparing a forthcoming amendment bill in 2026 to solidify long-term regulatory frameworks. Consultations have been conducted with the LegCo Panel on Economic Development, and industry support is anticipated.
A press release and spokesperson are available for inquiries. Annex B provides details on economic, environmental, and sustainability implications.
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