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27.10) and on 40.11 and 64.02 A and 64.02B
the latter being footwear items), 74.03 and 79.03;
(ii) the 30% butoirs on 41.02, 64.01 (a footwear item),
70.13, 84.41, 94.01 and 94.03.
Origin Items
5.
The only origin items still mentioned in any part of the document or its annexes are 85.21 A III (where radios and televisions have now been combined into one quota). Hong Kong is excluded for "not appearing to be able to meet the rules of origin" and Hong Kong performance is not included in the basic amount (although it is not clear whether it has been included in the supplementary amount).
6.
"
I can see no mention of any of the other five "origin................. items and they are not included in either the sensitive or semi-sensitive lists. This does not necessarily mean however, that they have been forgotten or dropped. The Community might still. try to refuse preferences to Hong Kong on these items on ostensible "origin" grounds but see no need to mention the fact in the case of apparently "non sensitive" items.
Semi-sensitive items
7.
(Annex V)
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Again, all the Hong Kong semi-sensitive list has been retained but item 97.06 B (tennis racquets etc.. is now a combined quota with a 30% butoir (Pakistan being far and away the largest supplier). In addition, the ceiling on 84.21 A seems to have been significantly increased. Note also the 30% butoirs on 31.02 and 31.05 (of no apparent interest to Hong Kong).
Textiles
(Annex VI A and B)
8.
Annex VI A covers the CTA and "substitute" items and Annex VI B other textiles. I have not gone through these lists in detail but it would appear from the points made in paragraph 3 (ii) above (together with the fact that, at least initially, Taiwan is excluded) that the offer as it now appears is significantly more restrictive than previously. This is, of course, of benefit to Hong Kong as it reduces the degree of discrimination arising from exclusion. The same point arises to a lesser degree on the footwear sensitive items with their 20% and 30% butoirs.
Comments
9.
The overall impression I get from this document is that the detailed changes and clarifications made to the EEC's scheme which are improvements from Hong Kong's point of view probably outweigh the points where the scheme has been made
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