If I only trade in medicines for re-export, meaning the goods do not enter Hong Kong’s customs territory, do I still need to comply with Hong Kong’s pharmaceutical licensing regulations?

This question concerns the meaning of “re-export” trade. If a consignment of pharmaceutical products is shipped from Country A to Country C and merely transits through a Hong Kong port or airport, remaining in a bonded area without being cleared into Hong Kong, it is generally regarded as “goods in transit” and may not require a Hong Kong import/export licence. However, if your company is established in Hong Kong and conducts the commercial transaction in the name of the Hong Kong company—for example, purchasing from a supplier in Country A and reselling to a customer in Country C—your company may be required to hold a wholesaler licence because it is engaging in the “wholesale” of pharmaceutical products, even if the goods do not enter Hong Kong. The Department of Health’s position is that if the transaction (that is, the transfer of ownership) takes place at the level of the Hong Kong company, this constitutes a regulated activity. This is a complex legal grey area and must be analysed on a case-by-case basis according to the specific business model.