HONG KONG: The government has announced that following the exemption of wine duties, HK$2.71 billion in wine imports were recorded in the first nine months of the year, up 41 percent on the same period last year.

Secretary for Commerce & Economic Development Rita Lau told lawmakers that fourteen wine auctions have been held in the city so far this year, with aggregate sales amounting to $496 million.

Lau was quoted as saying by Bloomberg that Hong Kong may overtake London this year as the second-biggest wine-auction market, behind New York.

"We have seasoned professionals proficient in Chinese and English armed with years of experience in wine trading as well as conducting business in the mainland market," she said.

Hong Kong wants to be a conduit for selling to the mainland, Lau added.

Christie's International, Sotheby's and Bonhams have resumed regular wine sales in the city since the duties were abolished.

In October, Sotheby's said Hong Kong has surpassed London as its second-largest market. Christie's says it offers the best and priciest wines, such as first-growth Bordeaux, in the city because there's demand.

Lau said many wine-related companies have set up or expanded their businesses in Hong Kong, covering trading, storage, retailing and other areas.

She said the exemption has also brought economic benefits through the tourism, catering and hospitality, exhibitions and brand promotion industries, bringing new job opportunities.

Rita Lau said the Government is helping the industry develop, in partnership with the Hong Kong Quality Assurance Agency, a certification scheme whereby wine storage facilities meeting certain required standards will be accredited.

"The scheme is expected to be launched before the end of the year. It will first cover wine storage facilities, with possible extension to other logistics facilities such as vehicles later," Mrs Lau said, adding the Government is working on various fronts to enhance the further development of Hong Kong as a regional hub for wine trading and distribution.

China Daily/Bloomberg News

(HK Edition 12/10/2009 page4)