N.V. No. 273

HOTE VERDALD

Her Britannic Majesty's Embassy present their compliments to the

Ministry of Foreign Affairs and have the honour to submit the following

note on behalf of the Hong Kong Government regarding the requiremento

for Consular endorsements of Hong Kong Certificates of Origin on exports to Italy.

A problem first arose when the Italian Ministry of Finance issued

a circular in October 1966 abolishing the requirement for such cortificates,

with the exception of certain products imported from Hong Kong, Macao and

Singapore.

It is also a requiremont that certificates of origin should be

endorsed at an Italian Consulate. Before the 1st July, 1967, the Italian

Consulate-Coneral in Hong Kong levied a standard fee of lire 3,000 (HK 28.50) for such endorsements. However, since then this standard fee

has been replaced by a sliding scale of charges which increases with the

value of the shipment.

It is appreciated that the geographical position of Hong Kong and

her status as a free port could give cause for concern as to the true

origin of goods exported from her territory. For this reason, and to

protect the status of her own industrial exports, the Hong Kong Government

has built up a very rigorous system for issuing certificates of origin.

The zocognised certificate-issuing bodies all adopt similar rules under

Government co-ordination; inspection is carried out by trained government

officers and all Hong Kong certificates of origin are protected by appropriate legislation, including heavy ponelties for offences. The importance of this system is attested by the fact that 80 per cent of all Hong Kong exports are

now of domestic origin and only 20 per cent are re-exports; and the high

/ standards

12/E

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