C. Liquor Licensing System

C. Liquor Licensing System

Any person who sells liquor for consumption on those premises, or at any place of public entertainment, or public occasion for consumption at that place must, in accordance with the Dutiable Commodities Ordinance (Cap. 109) and the Dutiable Commodities (Liquor) Regulations (Cap. 109B), apply for and obtain an appropriate liquor licence from the Liquor Licensing Board or the Commissioner of Police. Offenders are liable to a fine of $1,000,000 and imprisonment for 2 years.

At the same time, under regulation 32 of the Dutiable Commodities (Liquor) Regulations, drinking intoxicating liquor at retail premises without a liquor licence (such as restaurants or convenience stores) is an illegal act. Offenders are liable to a maximum fine of HK$2,000.

Types of liquor licences

The current liquor licensing regime in Hong Kong covers several types of licences, mainly divided into the following three categories:

1. Liquor licence

Liquor licences are issued by the Liquor Licensing Board and apply to any operator who sells or supplies liquor for consumption on the premises to the public, including restaurants, bars, nightclubs, hotels, karaoke establishments, etc. Regardless of whether liquor is the principal business, a liquor licence is required as long as liquor is supplied for on-site consumption.

2. Club liquor licence

Clubs (such as private clubs, sports clubs, country clubs, etc.) that supply liquor to their members at the premises they occupy must apply for a club liquor licence. A club liquor licence is restricted to members and their invited guests, and public sale is strictly prohibited. Club liquor licences are issued by the Liquor Licensing Board.

3. Temporary liquor licence

Temporary liquor licences are issued by the Commissioner of Police and apply to the temporary retail sale of liquor liquor at any public entertainment or on any public occasion (such as exhibitions, carnivals, wine-tasting events, etc.). Only holders of a full liquor licence are eligible to apply, and they must meet specified conditions.

Application and Renewal of Liquor Licences
Applicants must submit proof of identity, a business registration certificate, floor plans of the premises, company registration documents, and publish a notice in newspapers to invite public comments. During the application process, the views of various departments, including the Police, the Home Affairs Department, and the Fire Services Department, will be sought. The processing time is generally 8 to 10 weeks.

A liquor licence is normally valid for two years, and applications for renewal must be submitted not more than 4 months and not less than 3 months before the licence is due for renewal.

Licence conditions and responsibilities of licensees

A liquor licence will generally set out clearly the hours during which liquor may be sold and supplied, the address of the premises, and the approved licensed area. It will also specify whether liquor may be supplied in outdoor areas (such as balconies, terraces, areas outside the shopfront, etc.). The licence may also contain specific conditions, for example: noise control requirements (including restrictions on the use of sound equipment), whether live performances or live singing are prohibited, and arrangements for entrance/exit management and crowd control. The licensee is responsible for strict compliance with all such conditions.

The licensee must not permit persons under 18 years of age to consume liquor on the premises; must not employ persons under 15 years of age at any time; and must not employ persons under 18 years of age between 10 p.m. and 6 a.m. If persons aged between 15 and 18 are to be employed between 6 a.m. and 10 p.m., prior written approval must be obtained from the Liquor Licensing Board, and the specific conditions it imposes must be observed.

In addition, premises holding a liquor licence must comply with various requirements to safeguard customer safety and maintain good order. In brief, troublemaking, violence, disorderly drunken behaviour, or any immoral or illegal activities must not be allowed on the premises; prostitutes, reputed thieves, or persons of known bad character must not be allowed to assemble or remain on the premises; and gambling activities must not be conducted. The licensee must personally supervise the premises, ensure that liquor is not supplied to any person who is drunk, and prominently display notices prohibiting the consumption of liquor by persons under 18, as well as the liquor licence notice provided by the Liquor Licensing Board. If dancing is to take place on the premises or bar businesses are to be conducted, prior special approval from the Liquor Licensing Board is required. All liquor supplied, if it falls within specified categories under the regulations, must be clearly labelled on the container with its name. In addition, toilets must be kept clean and in good condition for for the use of customers, and, in general, licensed premises must also hold a valid restaurant licence issued by the Food and Environmental Hygiene Department (unless exempted).