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standards and effectiveness of Hong Kong certificates of origin have boon acknowledged by hor major trading partners, who accept those certificates without any requirement for consular endorsement.

The system for the issue of certificates of origin in Hong Kong, including the provisions for inspection and the legal protection and penalties, is very rigorous and is sufficient in itself to guarantee their validity; thus the process of endorsement by the Italian Consulate-General cannot, in practice, add any further guarantee. Full

in any case, dotails of the Hong Kong certification of origin system are, always available to the Italian Consulate-General, who can have direct access to any part of this system at any time. The Hong Kong Government would welcome any inspections into, or further consultations on, their certificate of origin system which the Italian Government might consider

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It might also be noted that the Contracting Parties to the Ceneral Agreement on Tariffs and Trado have, for a number of years, been pressing

Article VIII for the abolition of unnecessary consular formalities and fees.

of the GATT also provides that consular fees and charges, where they exist, should be limited in amount to the approximate cost of the services rendered. The imposition of a sliding scale of Tecs is difficult to reconcile with these provisions. Furthermore, the charging of fees for endorsement of certificates of origin for imports into Italy from Hong Kong, which are not required on similar imports from other contracting parties to the GATT, constitutes a discriminatory impost on Hong Kong exporte which is still more onerous when the charges are levied on a sliding scale.

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