COMMERCE AND INDUSTRY
114
Trade in Strategic Commodities
To ensure that Hong Kong has continued access to advanced products and technologies to sustain its economic development and that Hong Kong will not be used as a conduit for illicit diversion of strategic commodities, the Government maintains a comprehensive import and export control system to monitor the flows of strategic commodities through Hong Kong. The licensing control system for strategic commodities is administered by the Trade and Industry Department with the support of vigorous enforcement action by the Customs and Excise Department. Hong Kong maintains close cooperation with its trading partners to keep itself abreast of the developments in the international arena on strategic trade control matters, and to make sure that Hong Kong's control arrangement is complementary to those of its trading partners.
A Chemical Weapons (Convention) Bill is being scrutinised by the Legislative Council. It will enable the Government to fully implement the Chemical Weapons Convention in Hong Kong, underlining Hong Kong's commitment to internationally agreed arrangements on the ban of chemical weapons and on the monitoring of activities involving sensitive chemicals. It will also help enhance Hong Kong's international reputation in the area of strategic trade control, and help ensure its continued access to a full range of chemicals needed for local industrial, medical, research and trading purposes.
In 2002, the Customs and Excise Department investigated 223 cases of unlicensed import and export of strategic commodities and prosecuted 33 offenders, resulting in fines amounting to $1.34 million. Goods valued at $0.28 million were seized and confiscated.
Bilateral Investment Promotion and Protection Agreements
Hong Kong has bilateral investment promotion and protection agreements with 14 economies: Australia, Austria, Belgium/Luxembourg, Denmark, France, Germany, Italy, Japan, Republic of Korea, the Netherlands, New Zealand, Sweden, Switzerland and the United Kingdom. A primary objective of these agreements is to assure overseas investors of the stable investment environment in Hong Kong.
Container Security Initiative
The US Customs launched a Container Security Initiative (CSI) in early 2002 to address the perceived risks of terrorist attacks through ship-borne containers destined for the USA. Under the CSI, the customs authority of a participating foreign port will work with the US Customs officers stationed abroad to identify containers that carry a high risk of being exploited for terrorist attacks. The customs authority of the participating port will scan or inspect the identified containers before the containers depart the port for the United States. Following careful consideration and discussion with the local exporting and shipping communities, Hong Kong agreed to join the CSI, and the Hong Kong and US Customs signed a 'Declaration of Principles' on this in September 2002. Hong Kong's participation in the CSI would help ensure the smooth flow of US-bound cargo that originated from Hong Kong, and enhance the security of the global maritime trading system. Both are vital to Hong Kong as a major trading entity and as the world's busiest container port. A CSI pilot scheme will commence in Hong Kong in 2003.