Guidelines for Airlines on Refund Arrangements of Air Passenger Departure Tax

I. PURPOSE

1. The purpose of these guidelines is to provide guidance to airlines on the procedures for handling Air Passenger Departure Tax (“APDT”) refund/ unclaimed APDT such that passengers who have paid APDT but eventually did not depart by air from Hong KongNote will better comprehend their rights and what to do and expect when they need to apply for refund of APDT from airlines.

2. These guidelines are not mandatory. Airlines should, having regard to their customers, actual operations and other relevant factors, formulate their own APDT refund policy and adopt the most appropriate procedures that are efficient, convenient and transparent to the passengers eligible for applying for and receiving APDT refund.

Note: Section 3 of APDT Ordinance ("the Ordinance") (Cap. 140) provides that, unless otherwise exempted, a passenger aged 12 or above intending to depart from Hong Kong by air at the airport shall, before embarking on the aircraft for that purpose, pay an APDT of $120. Section 4 of the Ordinance requires that APDT shall be paid to the operator of the aircraft (which generally refers to an airline) which shall collect and pay the APDT collected to the Director of Accounting Services. It is an offence for any person who authorizes or permits a passenger liable to pay the tax to embark on an aircraft, unless the passenger has previously paid the tax.

II. THE GUIDELINES

(A) Application Channels and Time Limit for Application for Refund of APDT

3. Airlines should provide passengers with as many channels of submitting application for refund of APDT as possible, preferably with electronic means such as online application made through airline’s website.

4. Airlines are encouraged not to set a time limit for passengers to submit application for refund of APDT. If airlines choose to set a time limit for application, the time limit should preferably be no less than three months after the original scheduled departure date or the end of the validity of the cancelled air ticket whichever is later.

(B) Processing Time

5. Airlines should set their own performance pledge such that passengers would get the APDT refund within a reasonable period of time, say within six weeks after the application is received. Airlines should clearly inform passengers of such pledge in their refund policy and set up effective monitoring mechanism to ensure that their performance pledge is met.

(C) Airline's APDT Refund Policy and Procedures

6. Airlines should draw up clear policy and procedures for processing application for and payment of APDT refund as well as handling the unclaimed APDT, being an arrangement between the airline and the passenger concerned, and endeavour to clearly communicate the policy and application procedures to their passengers at appropriate junctures, such as when the air ticket fare, which includes the APDT and other charges, is paid; when the passenger notifies the airline of cancellation of trip, etc.

7. Airlines should display their refund policy in their websites in a clear and conspicuous manner, highlighting the fact that they are obliged under the APDT Ordinance (Cap. 140) that refund of APDT will be made in full, without handling charge, to passengers who have not departed by air from Hong Kong, and the relevant procedures for eligible passengers to submit applications for refund of APDT, including the time limit and processing time required. Airlines are also encouraged to clearly set out the same information on the invoice or other form of leaflet/ information sheet so that the passengers are well informed, upon or before paying the air ticket fare, of their rights and APDT refund application procedures in case they cancel their trips.

III. ENQUIRY

8. If airlines may wish to raise any enquiries about these guidelines, please contact us by email enquiry@cad.gov.hk.