+
THURS.. Y, MARCH 28, 1985
ON THE SETTING UP OF THE REGIONAL SERVICES DEPARTMENT, MR CHEUNG SAID BOTH THE ESTIMATE FOR EXPENDITURE AND THAT FOR MANPOWER COULD BE NO MORE, AT THIS STAGE, THAN REASONABLE 'GUESSTIMATES'.
+ IN PARTICULAR, THERE IS SOME DOUBT THAT THE MANPOWER PROVISION, IN VIEW OF THE FACT THAT EXPERIMENTAL NEW PROVISIONAL REGIONAL COUNCIL WILL BE COMPLETELY INEXPERIENCED, WILL MEET THE NEED.
+ IT WILL BE NECESSARY TO STRETCH THE WHOLE ORGANISATION TO THE LIMIT OF ITS ACTIVITIES DURING THE PROVISIONAL TERM OF THE COUNCIL SO THAT ANY WEAKNESSES IN THE SYSTEM MAY BE REVEALED AND REMEDIED IN TIME.
+ONE YEAR MAY NOT BE ENOUGH FOR THIS EXERCISE. THE PROGRESS OF THE GREAT EXPERIMENT NEEDS CLOSE WATCHING, HE SAID.
ON THE RE-INTRODUCTION OF THE AD VALOREM DUTY ON COSMETICS, MR CHEUNG CONSIDERED IT ACCEPTABLE IF VIEWED SOLELY AS A REVENUÉ PROTECTION MEASURE, BUT HE HOPED THE ADMINISTRATION WOULD CONSIDER CAREFULLY THE POSSIBLE REPERCUSSIONS OF THIS MEASURE.
+FIRST, THERE IS AT PRESENT NO CLEAR REGULATIONS ON HOW MUCH AN INDIVIDUAL PERSON CAN BRING BACK INTO HONG KONG UPON RETURN FROM A FOREIGN COUNTRY.
+PEOPLE CAN EASILY AVOID THE DUTY BY BRINGING IN COSMETICS FROM DUTY FREE COUNTRIES THUS ADVERSELY AFFECTING LOCAL BUSINESS AND DUTY-COLLECTION.
+SECONDLY, A LARGE PROPORTION OF IMPORTED COSMETICS AND PERFUME ARE FOR RE-EXPORT TO OTHER COUNTRIES.
+WITH THE IMPOSITION OF THE AD VALOREM DUTY, HONG KONG WILL LOSE HER POSITION AS REGIONAL DISTRIBUTOR OF COSMETICS TO SOUTHEAST ASIAN COUNTRIES,+ HE SAID.
IN ALL FAIRNESS, MR CHEUNG SAID, THE PROPOSED 25 PER CENT AD VALOREM DUTY SHOULD BE LEVIED ON THE FOB VALUE RATHER THAN THE CIF PRICE BECAUSE THE LATTER INCLUDED THE COST OF FREIGHT AND INSURANCE WHICH WAS NOT PART OF THE COST OF GOODS ITSELF.
CLEAR REGULATIONS MUST BE SET DOWN TO PREVENT PEOPLE FROM EXPLOITING DUTY-FREE CONCESSIONS AND THE AD VALOREM DUTY SHOULD NOT BE LEVIED ON SAMPLES AND GIFT ITEMS AS THESE WERE NOT FOR SALE, MR CHEUNG SAID.
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