• Thu
  • Oct 3, 2013
  • Updated: 4:14pm

Parallel trading

The influx of parallel traders who buy their stock tax-free in Hong Kong to resell it in mainland China at a profit is causing growing unrest. Residents of Sheung Shui, a town close to China's border, say the increase in parallel importers has pushed up retail prices and causes a general nuisance. Importers argue that their trade benefits the Hong Kong economy.

NewsHong Kong
TRADE

Scuffles in Sheung Shui as parallel traders return in growing numbers

Sheung Shui residents take issue with traders again just months after limit on milk formula

Sunday, 14 July, 2013, 1:52pm

Scuffles broke out in Sheung Shui yesterday between parallel-goods traders and residents, who complained the cross-border smuggling trade has again become rampant in the district.

Residents' protests died down in March after a new law came into force limiting to two tins the amount of infant formula - one of the items most heavily trafficked by parallel-goods traders - each outbound traveller may carry.

Protesters said yesterday they had found a large number of parallel-goods traders distributing formula milk on streets and in parks and complained that they were obstructing pedestrians and creating a nuisance.

The protesters first went to spots where traders often sell their goods and then to the town's MTR station, where they told traders to have their bags weighed in line with railway rules. Scuffles occurred when the protesters and traders began pushing each other.

North District councillor Law Sai-yan, of the Democratic Party, said the number of parallel-goods traders had increased recently after a decline following the introduction of the new law.

He said some traders were still carrying formula milk across the border, but many were switching to foods such as instant noodles, which are also in demand.

"They are more confident in food sold in Hong Kong," Law said. "They may not be able to carry a lot of formula milk to the mainland after the ban, but other food is in demand."

Since the legislation came into force, the government has been working with formula milk producers, retailers and consumers to stabilise supply.

Health minister Dr Ko Wing-man said yesterday that the restriction could be lifted if those measures proved to be effective.

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This article is now closed to comments

likingming
Open the restricted area of the Lo Wu railway station to the traders so that they could by-pass the over-crowded Sheung Shui station.
johnyuan
Let Hong Kong plays down the political aspect of the mess created by parallel trading in using public transportation. Parallel trading is legal. Government’s concern is that it should be that first, Hong Kong’s own demand is protected. After that, it is done orderly – forbid using passenger train for cargos. All such measures, CY Leung resolutely obliged the first, he should now order the MTR to set and limit carryon parcels. Forget the politics but do what common sense can achieve. If it is unachievable, collusion most likely is at work again.
rthk
SAR people..............you will tired at last and will be loser with the only option to keep your eyes blind and ears deaf
its just because of corruption every where in sar departments from A to Z
no Lawmaker is sincere to SAR so...........
daniel18
It is not a huge problem if HK does not have China financial support. On the contrary, without HK, Mainlanders still suffer from contaminated formula or other polluted foods. Worse still, nobody can pluck up the courage to say that products made by China is up to international standard.
babyhenry
"It is not a huge problem if HK does not have China financial support." What company invest in HK or hire people not to serve mainland China or use HK as a gateway to mainland China? because we all know that it is the lucrative HK 7 Million pop market that is soooo tempting. Or are you one of those fools that actually believe that HK is a "international" financial hub n not just a "Chinese" financial hub? What you think the listing of Prada is sign that HK is international? Actually it just further proof HK can't attract anything with out the China logo behind it.
"On the contrary, without HK, Mainlanders still suffer contaminated formula or other polluted foods." - Unless all 1.3 billion of them are benefiting, you are really BSing yourself, since most are still suffering from it and got used to it already whether you or they like it or not.

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