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INDUSTRY AND TRADE

Generalised preference schemes are operated by most developed countries to promote the export of goods manufactured by developing countries. The schemes include provisions allowing duty-free or low tariff entry for products from beneficiary developing countries. Following the decision by the Norwegian Government to include Hong Kong as a beneficiary in its scheme as from August 1, 1981, Finland becomes the only developed country operating a preference scheme that excludes Hong Kong. Some products from Hong Kong are however specifically excluded from the schemes operated by Australia, Austria, Japan, Norway and Switzerland. Hong Kong has consistently made it clear to the countries concerned that it seeks no special advantages under these schemes; it only wants treatment similar to that accorded to close competitors. The difference in treatment has been the subject of continuing official exchanges which, in 1981, led to a decision by the Japanese Government to reduce the number of items in the list of Hong Kong exceptions from seven to five with effect from April 1, 1981.

Documentation of Imports and Exports

Import and export licensing formalities are kept to a minimum in line with Hong Kong's international obligations. The most complex licensing formalities are those resulting from Hong Kong's obligations to restrain certain exports of textile products. Apart from export licences covering textiles - for which a fee of $15 an application is charged - all other import and export licences are issued free.

Since August 1, 1980, all textile imports have been made subject to an automatic licensing system. The main purpose of the system is to monitor the flow of textiles into Hong Kong to help identify possible instances of circumvention of the textile export control system.

Work continued in 1981 on the computerisation of the system controlling textile exports to the EEC. This represented the second phase of a programme of computerisation being carried out by the Trade Industry and Customs Department in co-operation with the government's Data Processing Division; the first phase, which dealt with the computerisa- tion of the system controlling textile exports to the USA, was completed in August 1979.

In accordance with the action taken by the United Kingdom and the other Member States of the European Economic Community, the government announced, on February 11, the lifting of economic sanctions against Iran. This means that the export licensing requirements regarding trade with Iran are now the same as those applicable to other countries.

With Hong Kong's dependence on the export of manufactured goods - mostly made from imported materials - and on the substantial re-export trade, a certification of origin system to meet the requirements of overseas customs authorities is important. The Trade Industry and Customs Department issues certificates of origin and accepts responsibility for safeguarding the integrity of the entire Hong Kong certification system. To this end, close liaison is maintained with overseas authorities and with five government-approved certification organisations - the Hong Kong General Chamber of Commerce, the Indian Chamber of Commerce, the Federation of Hong Kong Industries, the Chinese Manufac- turers' Association of Hong Kong and the Chinese General Chamber of Commerce. The value of domestic exports covered by certificates of origin issued by the department and the five approved organisations during 1981 was estimated at $20,834 million, of which $12,581 million was covered by government-issued certificates.

Form 'A' certificates are issued by the Trade Industry and Customs Department to support exports claiming preferential entry into countries which grant tariff preferences to Hong Kong under generalised preference schemes. The five government-approved certifi-

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