THURSDAY, APRIL 25, 1991

1.

SPECIAL LICENSING SCHEME PROPOSED TO ENSURE

KNITWEAR INDUSTRY'S COMPETITIVENESS

THE GOVERNMENT HAS

PROPOSED A SPECIAL

LICENSING SCHEME ΤΟ ENSURE THAT HONG KONG'S KNITWEAR INDUSTRY CAN MAINTAIN ITS COMPETITIVE EDGE IN THE FACE OF ADDITIONAL REQUIREMENTS A CHANGE IN U.S. ORIGIN RULES.

ARISING FROM

UNDER THE TRADE DESCRIPTIONS (AMENDMENT) BILL 1991, ΤΟ BE PUBLISHED IN THE GAZETTE TOMORROW (FRIDAY), THE DIRECTOR-GENERAL OF TRADE WILL BE EMPOWERED ΤΟ ENABLE PRODUCTS UNDER THE SPECIAL LICENSING SCHEME ΤΟ BE LABELLED IN ACCORDANCE WITH ORIGIN REQUIREMENTS DIFFERENT FROM THOSE OTHERWISE APPLICABLE IN HONG KONG.

A TRADE DEPARTMENT SPOKESMAN SAID TODAY (THURSDAY) THAT SUCH A SCHEME WOULD BE NECESSARY ONLY IN CASES WHERE THE RULES OF AN IMPORTING COUNTRY DIFFERED FROM HONG KONG RULES, WITH CONSEQUENT ADVERSE EFFECTS ON OUR INDUSTRY'S COMPETITIVENESS.

HE SAID SUCH A CASE HAD ARISEN IN THE U.S. WHICH CHANGED ITS ORIGIN RULES IN 1985 SO THAT MANDATORY ORIGIN LABELS FOR IMPORTS OF KNITWEAR MADE FROM KNIT-TO-SHAPE PARTS HAD TO REFLECT THE PLACE WHERE SUCH PARTS WERE KNITTED RATHER THAN WHERE THEY WERE MADE INTO FINISHED GARMENTS.

"UNDER HONG KONG'S ORIGIN RULES, THEN AND NOW, SUCH KNITWEAR FROM PARTS CONFERS ORIGIN, HE SAID,

THE MAKING OF

NEGOTIATED LONG

THE SPOKESMAN SAID THE TRADE DEPARTMENT HAD AND HARD WITH U.S. TRADE OFFICIALS BUT THE U.S. HAD STUCK то IT'S POSITION.

"AS A RESULT, THE HONG KONG KNITWEAR INDUSTRY HAS SINCE 1985 HAD TO KNIT RELEVANT PARTS AND MAKE THEM INTO FINISHED GARMENTS IN HONG KONG IN ORDER TO COMPLY WITH BOTH U.S. AND HONG KONG RULES.

"THE DOUBLE REQUIREMENT FOR KNITTING AND MAKING UP OF SUCH KNITWEAR HAS ADVERSELY AFFECTED THE INDUSTRY'S COMPETITIVENESS IN TODAY'S U.S. MARKET, AS IT CANNOT RELOCATE EITHER PROCESS ELSEWHERE IN ORDER TO SAVE COSTS,' HE SAID.

11

THE SPOKESMAN SAID THE

INDUSTRY'S

BILL RESPONDED ΤΟ THE

TO MEET ONLY

REQUEST TO THE GOVERNMENT TO PUT IN PLACE ARRANGEMENTS U.S. REQUIREMENTS FOR RELEVANT KNITWEAR.

"NEW ARRANGEMENTS UNDER THE BILL WOULD GIVE THE INDUSTRY THE FLEXIBILITY TO RELOCATE THE MAKING-UP PROCESS FOR CERTAIN KNITWEAR EXPORTS TO THE U.S..

"FOR ALL OTHER KNITWEAR EXPORTS, THE CONTINUE TO HAVE TO BE PERFORMED IN HONG EXISTING ORIGIN RULES, HE SAID.

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MAKING-UP PROCESS WOULD KONG IN ACCORDANCE

WITH

/THE SPOKESMAN

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