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Commerce and Industry
developing brands, upgrading and restructuring operations, and promoting domestic sales in the Mainland.
Bilateral Investment Promotion and Protection Agreements
To assure overseas investors that their investments in Hong Kong are adequately protected, and to enable Hong Kong investors to enjoy similar protection overseas, Hong Kong has concluded 17 Investment Promotion and Protection Agreements (IPPAs) with its trading partners. In November 2012, Hong Kong commenced negotiations on an IPPA with the Russian Federation.
Trade in Textiles
With its geographical advantage, expertise and networks, Hong Kong has evolved into a world- class logistics and sourcing hub for textiles. At the same time, Hong Kong maintains effective origin control measures to prevent abuse and safeguard the interest of Hong Kong's textiles trade.
In 2012, the Customs and Excise Department carried out 4,096 factory and consignment inspections and concluded 42 investigations to combat illegal transhipment of textiles. The department also conducted 240 'blitz' check operations on textile consignments at various import and export control points. It successfully prosecuted 40 offenders, with fines amounting to $0.76 million.
Trade in Strategic Commodities
The Trade and Industry Department maintains a comprehensive import and export control licensing system to monitor the movement of strategic commodities through Hong Kong. The system ensures that while Hong Kong has access to advanced products and technologies to sustain its economic development, it is not used as a conduit for illicit diversion of strategic commodities. The department also administers a permit system to monitor activities involving sensitive chemicals as required by the Chemical Weapons Convention. Hong Kong co-operates closely with its trading partners to keep abreast of international developments on strategic trade controls, and to make sure that its control arrangements are complementary to those of its trading partners.
In 2012, the Customs and Excise Department investigated 178 cases of unlicensed import and export of strategic commodities and prosecuted 49 offenders, resulting in fines of $1.8 million. Goods valued at $0.12 million were confiscated.
Customs Co-operation
The Customs and Excise Department plays an active role in the work of the World Customs Organisation (WCO) and APEC's Sub-Committee on Customs Procedures. The department maintains close liaison with the WCO and three officers have been seconded to the WCO Compliance and Facilitation Directorate in Brussels, Belgium, the WCO Regional Intelligence Liaison Office for Asia and the Pacific in Seoul, Korea, and the WCO Asia Pacific Regional Office for Capacity Building in Bangkok, Thailand, to assist in taking forward the WCO's initiatives.
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