COMMERCE AND INDUSTRY
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Observer Role in the OECD
The HKSAR is an observer of the Trade Committee and the Committee on Financial Markets of the Paris-based OECD, which are important fora for discussions on policy matters in respect of trade and financial services. Ideas introduced in these committees are often followed up in other international organisations such as the WTO and eventually translated into binding multilateral agreements or codes.
Trade in Textiles
Hong Kong's textiles exports to the European Union, Canada and the United States. continued to be subject to certain quantitative restrictions. In accordance with the WTO Agreement on Textiles and Clothing (ATC), these quantitative restrictions are being phased out in 10 years, in four stages from January of 1995, 1998, 2002 and 2005, respectively. On January 1, 2005, all remaining quantitative restrictions will be eliminated. The HKSAR continued to monitor closely the implementation of the ATC and the operation of the Textiles Monitoring Body, the ATC's supervisory body. Through the co-ordination of the International Textiles and Clothing Bureau (of which Hong Kong, China has been the Chairman since 1999), the HKSAR and a group of developing country exporters of textiles have been working together to ensure that the liberalisation process under the ATC is on course and to explore possibilities for further liberalisation.
The HKSAR continued to co-operate with relevant trading partners with a view to enhancing the effectiveness of action taken to combat illegal transhipment of textiles. This co-operation included, among other things, conducting of joint factory observation visits by Hong Kong Customs officers in conjunction with US Customs representatives. The visits, while not acts of law enforcement, help to promote understanding of Hong Kong's anti-transhipment efforts. In 2001, one round of a joint factory observation visit was conducted.
To combat false declarations of origin and values of goods and illegal transhipment of textiles, in 2001, the Customs and Excise Department carried out 70 969 factory and consignment inspections and 1899 investigations. It successfully prosecuted 1 317 offenders, resulting in the imposition of fines amounting to $17.34 million. The department also strengthened its intelligence collation concerning illegal transhipment of textiles and stepped up 'blitz' check operations on textile consignments at various import and export control points. It operates a monetary reward scheme to elicit information on textile origin fraud.
Trade in Strategic Commodities
To ensure that Hong Kong continues to have maximum access to high technologies and hi-tech products that are crucial to Hong Kong's economic development, the Government maintains a comprehensive and effective control system on trade in strategic commodities to assure Hong Kong's trading partners that Hong Kong will not be used as a conduit for illicit diversion of strategic commodities to undesirable destinations. The import, export and, in some cases, transit of strategic commodities are subject to licensing control administered by the Trade and Industry Department. This is supported by vigorous enforcement action by the Customs and Excise Department. The two departments are assisted by the Government Laboratory, which provides analytical and technical advice where necessary. Hong Kong also maintains close co-operation with its trading partners in furthering the objectives of