THURSDAY, NOVEMBER 1, 1984

LABELLING PROBLEM RESOLVED FOR TIME BEING

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THE U.S. CUSTOMS HAS CONFIRMED THAT SWEATERS ASSEMBLED IN HONG KONG FROM PANELS KNITTED IN CHINA CAN CONTINUE TO BE MARKED AS MADE

IN HONG KONG FOR THE TIME BEING.

THIS WAS STATED BY HONG KONG'S DIRECTOR OF TRADE, MR HAMISH MACLEOD. AFTER TWO DAYS OF BILATERAL CONSULTATIONS ON THE NEW AMERICAN IMPORT REGULATIONS WHICH ENDED IN WASHINGTON YESTERDAY (WEDNESDAY). DURING THE CONSULTATIONS MR MACLEOD CONTINUED TO PRESS THE U.S. ADMINISTRATION TO RESCIND THE COUNTRY OF ORIGIN RULES.

HE SAID THE U.S. CUSTOMS HAD BEEN HELPFUL IN CLARIFYING THE LABELLING PROBLEM WHICH HAD BEEN CAUSING PRACTICAL PROBLEMS FOR THE HONG KONG INDUSTRY, PARTICULARLY AS REGARDS NON-MFA SWEATERS.

HE SAID: +ALTHOUGH THE U.S. CUSTOMS STILL INTENDS THAT THE EFFECT OF THE NEW REGULATIONS ON ORIGIN OF GOODS FOR QUOTA PURPOSES WILL ALSO AFFECT THE LABELLING REQUIREMENT, FOR DOMESTIC LEGAL REASONS THIS CANNOT YET BE IMPLEMENTED.+

NOW THAT THIS

A CIRCULAR WILL BE

PROBLEM HAS BEEN RESOLVED FOR THE TIME BEING,

ISSUED SHORTLY TO THE TRADE IN HONG KONG.

+DURING THE CONSULTATIONS WE WERE ABLE TO REFINE AND PRESS HOME OUR ARGUMENTS, AND IN THE LIGHT OF EXPERIENCE OF THE WORKING OF THE REGULATIONS ALSO TO BRING OUT SOME OF THE CONTRADICTIONS AND PROBLEMS,+ MR MACLEOD SAID.

HOWEVER, HE SAID THE UNITED STATES HAD NOT BEEN ABLE TO PRODUCE ANY CONVINCING EXPLANATION OF HOW A CHANGE, SUCH AS WAS INTRODUCED BY THE REGULATIONS, COULD BE INTRODUCED UNILATERALLY, IN VIEW OF ITS OBLIGATIONS UNDER THE MULTI-FIBRE ARRANGEMENT AND THE BILATERAL AGREEMENT.

+FOR EXAMPLE, TAKE A SWEATER ASSEMBLED IN HONG KONG FROM PARTS KNITTED ELSEWHERE. IN 1982 AND 1983 (THE FIRST TWO YEARS OF THE CURRENT BILATERAL AGREEMENT) THAT SWEATER WAS REGARDED AS OF HONG KONG ORIGIN NOT ONLY BY HONG KONG BUT BY ALL THE COUNTRIES TO WHICH WE EXPORT, INCLUDING THE UNITED STATES,

-

+THE QUESTION IS HOW THE U.S. CAN JUSTIFY BEARING IN MIND THAT OUR TEXTILE TRADE IS GOVERNED BY THE BILATERAL, THE MFA AND THE GATT - UNILATERALLY CHANGING THE RULES

IN 1984 SO THAT THE SAME SWEATER IS NO LONGER ACCEPTED AS OF HONG KONG ORIGIN BY THE U.S. APART FROM STATING THAT THEY HAVE THE RIGHT TO CHANGE ON GENERAL RULES, LITTLE OTHER EXPLANATION HAS BEEN GIVEN, MR MACLEOD SAID.

/BUT HE

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