Outward Processing Arrangement

{{Short description|Law in China and Hong Kong affecting the textile industry}}

{{EngvarB|date=April 2015}}

{{Use dmy dates|date=February 2025}}

The Outward Processing Arrangement (OPA) concerns the textile industry in Hong Kong and the People's Republic of China. It states that Hong Kong manufacturers can subcontract subsidiary and finishing processes to mainland factories, as long as the "major transformation" of the garment takes place in Hong Kong.{{cite web |last1=Kwan |first1=Herman |title=Certificate of Origin Circular No. 13/2006: Outward Processing Arrangement (OPA) Registration |url=https://www.tid.gov.hk/english/aboutus/tradecircular/coc/2006/coc132006.html |website=Trade and Industry Department |access-date=9 January 2019 |date=1 August 2006}} Major transformation, however, only needs to amount to 10% of total cloth processing.{{cite news |last1=Windle |first1=Charlotte |title=Stores fashion new Chinese supplies |url=http://news.bbc.co.uk/2/hi/business/4207350.stm |access-date=9 January 2019 |publisher=BBC News |date=5 September 2005 |location=Hong Kong}} Any products exported to China for outward processing must be reimported to Hong Kong within 2 months. Effective from 10 June 2005, Hong Kong manufacturers can apply to the Trade and Industry Department of Hong Kong for exemption of export duty in association with the processed garments as they are being exported from China.{{cite web |last1=Kwan |first1=Herman |title=Certificate of Origin Circular No. 3/2005—Outward Processing Arrangement (OPA): Exemption from Mainland Export Duty for Hong Kong Textiles Products |url=http://www.tid.gov.hk:80/english/aboutus/tradecircular/all_in_one/2005/as062005.html |website=Trade and Industry Department |access-date=9 January 2019 |date=2 June 2005 |archive-url=https://web.archive.org/web/20051102121716/http://www.tid.gov.hk/english/aboutus/tradecircular/all_in_one/2005/as062005.html |archive-date=2 November 2005 |url-status=dead }}

The arrangement allow companies in Hong Kong to manufacture and export textile products from China to rest of the world without being subjected to quota and tariff imposed by other countries against China.{{cite web | url=http://www.jdonline.com.hk/index.php?m=content&c=index&a=show&catid=38&id=3326 | title=面對貿易糾紛用Opa解香港紡織業難題 }}