- 2.

Ref.: EIC 294/11/6/2

must be given and, if possible, the invoice description should be used. The actual specifications of each size should be detailed in a separate sheet as per the specimen at Appendix IX. The relevant United Kingdom Customs authorities approved line number, or in the absence of this, the manufacturer's reference number, must be quoted in all cases. Applications containing inadequate or misleading description will be rejected.

g.

Each application must be supported by documentary evidence

of firm contracts in the form of:-

and

(i)

the originals of the contracts placed by the U.K. buyers;

(ii) copies of the original contracts;

and a costing prepared by the approved accountant who represents the manufacturer in Commonwealth Preference matters, certifying the Hong Kong cost content of the goods concerned. Certified true copies or photostat copies together with the original cost statement may be used where any company is submitting a number of applications for the same items in the same quarter. The cost of imported raw materials used in any stage of their production should not be included in the costings.

10.

To facilitate examination of costs and to expedite the issue of approved export authorizations, all costings submitted must be in the exact form of Appendix V or VI to this Notice. No other costing layout will be accepted by the Department. The notes for accountants in Appendix IV should be studied carefully before costings are prepared. Costs allocated to the principal grey fabrics, yarns, finishes and yarn bleaching/dyeing in the production of towels, made-ups or garments must be in accordance with the costs shown in Appendices I, II, IIA and III as appropriate. Your attention is drawn to Appendix I to the new costs for permanent press. Certain finishes have been found to be incom- patible with one another and these groups of finishes cannot now be claimed in respect of the same fabric (see also the footnotes to Appendix I):-

11

(i) Sanforising, schreiner and pre-shrinking.

(ii) Napping one side and napping two sides.

(iii) Optical white treatment and dyeing.

When the Hong Kong cost of material or finish is not shown in Appendices I, II, IIA or III, costings should first be obtained from the Department. New Costings will not normally be made available at short notice. Requests for costings should be lodged with the Department as early as possible, preferably three months in advance of the beginning of each quarter.

Materials Used 127

Only material spun, woven and finished in Hong Kong may be used unless special permission is obtained from the Department. However, British origin cotton woven lining material may be used in the manufacture of garments and in such cases the lining yardage should not be taken into account when calculating the Hong Kong cost content of the goods. To qualify as being of British origin, the material must be woven in Britain, consigned directly to Hong Kong and be supported by an E Form XS 120 issued in Britain.

Special Cutting and Processing Charges for cotton Corduroy - Appendix IIIA

13.

As from this quarter, shippers will be allowed to claim additional costs for the use of corduroy; this is in recognition of the special cutting and processing necessary. The following special cost

/factors have

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