INDUSTRY AND TRADE
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connection, Hong Kong worked in concert with various countries and organisations on both the multilateral and domestic fronts to counter the bill.
Non-textiles Issues
French Quantitative Restrictions: The quantitative restrictions on Hong Kong digital quartz watches, toys and radio imports into France were lifted at the beginning of 1987.
Generalised Systems of Preferences (GSP): In June, the EEC Commission proposed exclusion of 31 Hong Kong products from GSP benefits in 1988. Hong Kong made a detailed submission to the Commission in July opposing the exclusion. The EEC eventually decided to reduce the GSP benefits of these products by 50 per cent in 1988.
Hong Kong actively took part in the general review of the United States Generalised System of Preferences mandated by the United States Congress when the GSP programme was extended for 8 years in January 1985. Under the review, the United States President was required to determine the extent of preferential treatment granted to beneficiary countries, taking into account individual beneficiary's level of development, its com- petitiveness in respect of GSP articles and its trade practices. In January 1987, the results of this general review were announced and Hong Kong was able to maintain its level of benefits under the system. Modifications made as a result of the review took effect in July. The Harmonised Commodity Description and Coding System (Harmonised System or HS): the HS is scheduled for adoption by the world's major trading entities, including Hong Kong, from 1988. Hong Kong entered into consultations with its trading partners to ensure that the recalculation of duty rates for some products brought about by the introduction of the system would not adversely affect Hong Kong's trade. Consequently, there were no duty increases for some of the items of major trading interest to Hong Kong. In some cases the talks ended in tariff savings in overall terms for Hong Kong.
Documentation of Imports and Exports
As a free port, Hong Kong keeps its import and export licensing requirements to a minimum. Products over a wide range do not need licences to enter or leave Hong Kong. Where licences are required, they are intended to achieve two main objectives. Firstly, they help Hong Kong to fulfil its international obligations to restrain exports of textiles products and, related to this, to monitor the flow of these products into Hong Kong. Thus there is a requirement for all imports and exports of such products to be covered by licences issued by the Director of Trade. Secondly, they help Hong Kong to control, on health or safety grounds, exports and imports of a few types of non-textile products such as strategic commodities, pharmaceuticals and agricultural pesticides.
There is in Hong Kong a certification of origin system to establish the origin of the goods which Hong Kong exports and to meet the requirements of the importing authorities. The Trade Department administers and safeguards the integrity of this system, and issues certificates of origin where required. Other government-approved certificate-issuing organ- isations are the Hong Kong General Chamber of Commerce, the Indian Chamber of Commerce, the Federation of Hong Kong Industries, the Chinese Manufacturers' Associa- tion of Hong Kong, and the Chinese General Chamber of Commerce.
Trade Department
The Trade Department is responsible for Hong Kong's commercial relations with foreign governments. It implements trade policy and agreements, and procedures for import and export licensing and origin certification. On matters of policy affecting trade, the Director