INDUSTRY AND TRADE
83
Except in the case of exports to the United Kingdom the department also issues Commonwealth Preference Certificates for exports claiming entry at preferential rates into those Common- wealth countries which grant preference to Hong Kong. They certify the proportion of Commonwealth or single country content in the goods they cover and are based on cost statements prepared by public accountants approved for the purpose. For exports to the United Kingdom, the accountants themselves issue the certifi- cates and submit cost statements in support direct to HM Customs and Excise.
The certification work of the department continued to expand during 1960 and the administrative practices for the issue of certificates of origin were always under review. The department modified its practices and procedures wherever possible to hasten the issue of certificates and to simplify the handling of an ever larger number of applications. The co-operation and liaison established with overseas customs authorities was beneficial to both the promotion and the control of certified exports. Exports of goods certified by the Commerce and Industry Department to be of Hong Kong origin were valued at $744.3 million. Common- wealth Preference Certificates were also issued to the value of $171.2 million, to cover exports to other Commonwealth countries than the United Kingdom.
An additional complication arises from the need for Hong Kong's trade with the United States to comply with the United States Foreign Assets Control Regulations; these prohibit the import of a range of products which are presumed to originate in the Chinese People's Republic or in North Korea unless evidence is produced to the contrary. The department again devised fresh procedures to produce this evidence in 1960. 'Presumptive' com- modities were exported to the value of over $529.5 million.
THE PREVENTIVE SERVICE
After an extensive re-organization last year, the Preventive Service, which is the uniformed and disciplined branch of the Commerce and Industry Department, was able to improve the efficacy of its control over the smuggling of dutiable goods and narcotics. Inspections and spot-chécks of factories exporting the