Currency and Bearer Negotiable Instruments

The system is established for the purpose of anti-money laundering ("AML") and counter-financing of terrorism ("CFT"). It implements Recommendation 32 of the Financial Action Task Force, the international standard-setter of AML/CFT, which requires member jurisdictions to establish by statute a declaration and/or disclosure system to detect the cross-boundary transportation of large quantities of CBNIs. It should be stressed that the declaration/disclosure system is NOT any form of capital or currency control.

In accordance with section 2 of the Cross-boundary Movement of Physical Currency and Bearer Negotiable Instruments Ordinance, Chapter 629, Laws of Hong Kong ("the Ordinance"), "CBNI" means -

1. a note, or coin, that is legal tender in Hong Kong or a place outside Hong Kong; or

2. a negotiable instrument (Note) that is:

   • in bearer form;
   • endorsed without any restriction;
   • made out to a fictitious payee;
   • in a form under which the title of it passes on delivery; or
   • signed but does not state a payee"s name.

In accordance with Schedule 4 to the Ordinance, a large quantity of CBNIs means CBNIs with a total value of more than HKD120,000.

No. Diamonds, gold or casino tokens are neither currencies nor bearer negotiable instruments. They are therefore not CBNIs.

A cheque in bearer form is CBNI but an order cheque which is payable to a specified payee is not.

If a commemorative banknote is legal tender in Hong Kong or a place outside Hong Kong, it is CBNI. The value of the commemorative banknote is determined by its nominal value.

If an old banknote is legal tender in Hong Kong or a place outside Hong Kong, it is CBNI. The value of the old banknote is determined by its nominal value.

A gold coin is not CBNI if it is not legal tender in Hong Kong or a place outside Hong Kong.

Pursuant to the Cross-boundary Movement of Physical Currency and Bearer Negotiable Instruments Ordinance, Chapter 629, Laws of Hong Kong ("the Ordinance"), any person arriving in Hong Kong via a specified control point set out in Schedule 1 to the Ordinance and in possession of a large quantity of CBNIs (i.e. CBNIs of a total value more than HKD120,000), must make a written declaration to a Customs officer, using the Red Channel under the Red and Green Channel System.

Any person arriving in Hong Kong other than at a specified control point (e.g. passengers and crew arriving on cruise ships berthing at anchorages), upon the requirement of a Customs officer, must disclose whether he/she is in possession of a large quantity of CBNIs. If so, he/she must make a written declaration.

Any person about to leave Hong Kong must upon the requirement of a Customs officer disclose whether he/she is in possession of a large quantity of CBNIs (i.e. CBNIs of a total value of more than HKD120,000). If so, he/she must make a written declaration.

According to section 2 of the Ordinance , a person is in possession of a large quantity of CBNIs if such CBNIs are -

1. on the person;
2. in the baggage accompanying the person; or

3. for a person arriving in or about to leave Hong Kong on a cross-boundary conveyance -

   1. part of the personal belongings of the person carried on the conveyance; or
   2. in the checked baggage of the person (whether or not carried, or to be carried, on the same conveyance).

If a traveller is in transit at the Hong Kong International Airport and does not pass through immigration control at any specified control point while in Hong Kong, he/she is not required to make a declaration or disclosure of CBNIs in his/her possession.

Yes. Any person arriving in Hong Kong at a specified control point set out in Schedule 1 to the Ordinance and in possession of a large quantity of CBNIs (i.e. CBNIs of a total value of more than HKD120,000), must make a written declaration to a Customs officer, using the Red Channel under the Red and Green Channel System. Any person arriving in Hong Kong other than at a specified control point (e.g. passengers and crew arriving on cruise ships berthing at anchorages), upon the requirement of a Customs officer, must disclose whether he/she is in possession of a large quantity of CBNIs. If so, he/she must make a written declaration.

If you are not the owner of the CBNIs concerned, you are required to provide information of the CBNIs" owner in the declaration form.

Each person must declare or disclose on his/her own the large quantity of CBNIs in his/her possession. However, an adult who accompanies a young person (i.e. a person under the age of 16 years) and knows that the young person is in possession of a large quantity of CBNIs must declare or disclose for the young person.

The value of CBNIs in the possession of a traveller and denominated in a currency other than HKD (e.g. foreign currency) would be calculated in accordance with the opening indicative counter exchange selling rate published by the Hong Kong Association of Banks ("HKAB") on the day when the traveller arrives or is about to depart. If HKAB does not publish such rate on the day, or the time when the traveller arrives or is about to depart is before the publication time of such rate, the value of the CBNIs would be calculated according to the most recent rate HKAB published before the day. For example, if a traveller arrives in Hong Kong on 29 July 2018 (which is a Sunday on which HKAB normally does not publish exchange rates), reference should be made to the rate published on 28 July 2018. Historical rates are available at HKAB"s website.

If no opening indicative counter exchange selling rate is published by HKAB for a particular currency, the value of the CBNIs would be determined by reference to the United Nations Operational Rates of Exchange ("UN rate") being effective for the currency concerned on the day when the traveller arrives or is about to depart. The value of the CBNIs in HKD can be obtained by converting the nominal value of the CBNIs first to USD and then HKD using the UN rate.

In making a written declaration, the value of CBNIs should be stated in the currency in which the CBNIs are denominated. No conversion to HKD is necessary. For example, in declaring USD20,000, the value should be stated as "USD 20,000".

If you are not sure about the prevailing exchange rate adopted for a currency at the time of arrival or departure, you should approach a Customs officer for assistance.

You should calculate the equivalent value in HKD for each currency. If their total equivalent value in HKD exceeds HKD120,000, you are required to make a declaration. In making a written declaration, the value of CBNIs should be stated in the currency in which the CBNIs are denominated. No conversion to HKD is required.

A declaration should be made by using a specified declaration form. After completing the declaration form, you should hand it to a Customs officer. Declaration forms are available at the Red Channel of the Customs Arrival Hall of various control points, and can be downloaded from the website of the Customs and Excise Department (C&ED).

If the driver of the cross-boundary vehicle or the passenger on the cross-boundary limousine is in possession of a large quantity of CBNIs (i.e. CBNIs of a total value of more than HKD120,000), a declaration should be made by handing the declaration form to a Customs officer as the vehicle passes through the Customs kiosk.

Declaration forms are available at the Red Channel of the Customs Arrival Hall of various control points, and can be downloaded from the website of the C&ED.

No. According to the Ordinance, a person who makes a declaration on a large quantity of CBNIs in the possession of individuals should give a duly completed declaration form to a Customs officer.

The Customs officer(s) will check if all information required has been provided and verify the information on the declaration form. If necessary, the officer(s) may also need to check or count the declared CBNIs to ascertain the accuracy of the declared value.

According to the performance standard of the C&ED, the time required for passenger clearance at the Hong Kong International Airport, land boundary control points and ferry terminals is within 15 minutes, except for passengers who undergo further examination.

Any traveller who breaches the declaration/disclosure requirements for the first time may make a payment of HKD2,000 to discharge his/her legal liability, provided that he/she has not previously been convicted of any money laundering or terrorist financing offences and whose CBNIs are not reasonably suspected to be crime proceeds or terrorist property. Other cases are subject to criminal proceedings, and the maximum penalty is a fine of HKD500,000 and imprisonment for two years.

Pursuant to the Cross-boundary Movement of Physical Currency and Bearer Negotiable Instruments Ordinance, Chapter 629, Laws of Hong Kong ("the Ordinance"), an advance electronic declaration must be made to the Customs and Excise Department ("C&ED") via the Currency and Bearer Negotiable Instruments Declaration System("CDS") for importing or exporting on a cross-boundary conveyance a large quantity of CBNIs (i.e. CBNIs of a total value of more than HKD120,000) as cargo in one batch. The above declaration requirement does not apply to the following types of CBNIs:

1. CBNIs in the possession of a person arriving in or about to leave Hong Kong on a cross-boundary conveyance (e.g. the personal belongings or checked baggage of air passengers);

2. CBNIs that are cargo in transit, i.e. CBNIs -

   • that are imported on an aircraft or vessel solely for the purpose of exporting them on the aircraft or vessel; and
   • that, while in Hong Kong, remain at all times on the aircraft or vessel;
3. CBNIs that are air transhipment cargo within the meaning of section 2 of the Import and Export Ordinance (Cap. 60); and
4. CBNIs contained in a postal packet within the meaning of section 2 of the Post Office Ordinance (Cap. 98), i.e. mail.

CBNIs imported or exported as cargo in one batch refer to CBNIs imported or exported on a cross-boundary conveyance by:

1. a person (other than a carrier*);
2. the same carrier for the same customer* who directly engages the carrier; or
3. the same carrier for the same customer who engages the same forwarder* to transport or arrange for the transportation of the CBNIs to the carrier (Note).

* Please refer to section 10 of the Ordinance for the definitions of "carrier", "customer" and "forwarder".

"Customer" is a party who is not a carrier and -

1. directly engages a carrier to import or export the CBNIs; or
2. directly engages a forwarder who transports or arranges for the transportation of the CBNIs to a carrier for importing or exporting the CBNIs.

Example:
If Company A engages a forwarder to export CBNIs to Hong Kong from USA via an airline, Company A is the "customer" as mentioned in the Ordinance, no matter whether Company A is located in or outside Hong Kong.

The requirement of making an advance declaration does not apply to cargoes in transit and air transhipment cargoes (see Q1). Declaration through the CDS are necessary for other types of cargoes.

The value of CBNIs denominated in a currency other than HKD (e.g. foreign currency) would be calculated in accordance with the opening indicative counter exchange selling rate published by the Hong Kong Association of Banks ("HKAB") on the 15th day of the month preceding the month in which the CBNIs are imported or exported. If HKAB did not publish such rate on the day mentioned above, the value of the CBNIs would be calculated according to the most recent rate HKAB published before the day. For example, if the CBNIs are imported or exported on 31 July 2018, the declarant should refer to HKAB"s opening indicative counter selling rate on 15 June 2018. If the CBNIs are imported or exported on 1 August 2018, the declarant should refer to the rate published on 14 July 2018, since 15 July 2018 is a Sunday on which HKAB normally does not publish exchange rates. Historical rates are available at HKAB"s website.

If no opening indicative counter exchange selling rate is published by HKAB for a particular currency, the value of the CBNIs would be determined by reference to the United Nations Operational Rates of Exchange ("UN rate") being effective for the currency concerned on the 15th day of the month preceding the month in which the CBNIs are imported or exported. The value of the CBNIs in HKD can be obtained by converting the nominal value of the CBNIs first to USD and then HKD using the UN rate.

In making a declaration, the value of CBNIs should be stated in the currency in which the CBNIs are denominated. No conversion to HKD is necessary. For example, in declaring USD20,000, the value should be stated as "USD 20,000".

Making a declaration for CBNIs through the CDS is free of charge.

Pursuant to the Ordinance, an advance electronic declaration must be made to the C&ED via the Currency and Bearer Negotiable Instruments Declaration System ("CDS") for importing or exporting on a cross-boundary conveyance a large quantity of CBNIs (i.e. CBNIs of a total value of more than HKD120,000) as cargo in one batch. Upon receiving the confirmation on acceptance of the declaration by the CDS, the declarant can notify other relevant parties that declaration has been made for the CBNIs concerned.

If an advance declaration has not been made before the import or export of the CBNIs, C&ED will investigate each case carefully to determine who should be held liable for the failure to declare and decide whether enforcement action should be taken.

For information on how to access the CDS, please refer to Q9 and Q10.

All breaches are subject to criminal proceedings. The maximum penalty is a fine of HKD500,000 and imprisonment for two years.

Yes. For the purpose of confirming the user's identity, the declarant should use a valid digital certificate or iAM Smart+ to log into the CDS for submitting a declaration. Please click this link for more information about the recognized certification authorities in Hong Kong. Please click this link for more information about iAM Smart+.

A Registered User of TSW with a valid digital certificate issued by the recognized certification authorities or iAM Smart+ can access to the CDS through single sign-on from TSW upon successful service subscription and link-up with the CDS in TSW.

To enjoy single sign-on after service subscription of the CDS, a Registered User of TSW is required to establish link-up with a valid digital certificate or iAM Smart+, of which the identity information must be the same as the TSW account. The linked digital certificate or iAM Smart+ must be used for digital signing for making declarations in the CDS.

Please refer to the online demonstration on the CDS website or the TSW website (by selecting (D) Submission of individual trade document -> Customs and Excise Department -> Declaration Form for Cross-boundary Transportation of Currency and Bearer Negotiable Instruments (CBNIs)) for the procedures of accessing the CDS through TSW.

Please refer to Q9 for more information about the recognized certification authorities in Hong Kong and iAM Smart+.