5.

"Therefore, to us the current issue we have with the US Customs concerns not the objective of combating illegal transhipment but the means towards that objective.

"We hope that through the joint factory visits and other exchanges between the two sides, we will be able to reach an understanding on agreed methods for co- operation, and the US will remove its unilateral measures as soon as possible.

"This approach of co-operation is in line with our objective of combating illegal transhipment, and with the relevant provisions in the World Trade Organisation.

"But if at the end of the day, we fail to reach a mutually satisfactory solution, we would have to take the matter to the World Trade Organisation," the spokesman added.

There have been on-going exchanges between the two sides since June this year. These include three rounds of formal consultations in Hong Kong and Washington in June, July and October, and a 30-day joint factory visit programme in September.

Following the September factory visits, the US Customs removed the single entry bond requirement for two suit categories 443 and 643.

Various administrative arrangements arising from the joint factory visits in January will be put in place. Traders are advised to refer to the Notice to Exporters No 78/96 and Certification of Origin Circular No 17/96 issued by the Trade Department today. If they require additional information, they should enquire with the department's Americas Division.

End

Applications for British passport and nationality matters

The Immigration Department announced today (Monday) that the department will cease handling applications for British passport and related nationality matters on behalf of the United Kingdom Government from 4.30 pm this Friday (January 3).

However, the department will continue to process applications for Hong Kong British Dependent Territories Citizen and British National (Overseas) passports until further notice.

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