E 6-
32. The opening of the new road to Canton at the end of the year 1937 entailed many extra duties on the Sheung Shui staff. More than 4,000 vehicles passed through the revenue barrier from 1st January, 1938, until the virtual closing of the road owing to the hostilities in the neighbouring province of Kwang Tung in October. Under normal conditions there is little doubt that the new road would be used extensively, and it is expected that the provision of premises adequately equipped for dealing with passengers and merchandise may be a necessity in the future.
VIII.-LEGISLATION.
33. As foreshadowed in the reports of 1936 and 1937, a Dangerous Drugs Amendment Ordinance was passed which makes a heroin divan and possession of heroin pipes illegal and also introduces legislation in respect of landlords and tenants. As the law now stands, a tenant, lessor or landlord who knowingly lets premises for use as a heroin divan or as a place for storing heroin, or, having let them, consents to their use as such, is liable to prosecution.
IX. CERTIFICATES OF ORIGIN.
34. The year under review saw a great alteration in the procedure for issuing certificates of origin. Up to the end of May certificates were issued, as heretofore, to such factories only as were approved by the Superintendent after departmental investigation and registration. It had, however, long been felt that some more precise system of certification was desirable, especially for trade with other Colonies when Empire preference was sought. At a conference held at the Colonial Office in June, 1937, the broad lines to be followed had been decided and by June 1st, 1938, a new register had been drawn up including the names of firms which had been costed over a period of three months by chartered accountants whose qualifications were such as had been laid down by the Secretary of State for the Colonies. At the same time a new form of certificate came into use, giving the accountant's certification of the Empire content of the particular consignment, while beneath this a Government officer—in practice the Superintendent or Assistant Superintendent—certified that the particular accountant firm was recognised for the purpose, and that the factory applying for the certificate and its consignments had been inspected by the department.
35. This form of certificate, known locally as the "new certificate," is applicable only to consignments to other Colonies. The old form of certificate alone may be used for consignments to the Dominions and United Kingdom, and its chief value is to procure exemption from dumping duties. Thus in practice the "old" and the "new" registers exist together, but while factories on the new register automatically qualify for "old" certificates, those on the old register only cannot obtain "new" ones.
36. The change to the new system was successfully accomplished with the minimum of friction, thanks in a large measure to the whole-hearted co-operation of the secretary and various sub-committees of the Hong Kong General Chamber of Commerce. It continues to work reasonably well, though the great need for accuracy in details should be impressed on all applicants for certificates. Emendations are of course inevitable, but there are far too many occasions when care in applications would have rendered them unnecessary, and the exporting firms would do well to remember that, while the onus of obtaining certificates does not lie upon them in the first place, it is to their interest to render all possible assistance to the factory managers.
37. During the year old certificates totalled 10,217, of which 5,814 were issued in the first five months. The coming of the new certificates seems, at first view, to have made only a small difference in the numbers issued. For the first five months the monthly average of old certificates was 1,163 while for the last seven the combined monthly average was 1,491. The system naturally took some time to come to its full development; and there is reason to expect higher figures in the future.
E 6-
32. The opening of the new road to Canton at the end of the year 1937 entailed many extra duties on the Sheung Shui staff. More than 4,000 vehicles passed through the revenue barrier from 1st January, 1938, until the virtual closing of the road owing to the hostilities in the neighbouring province of Kwang Tung in October. Under normal conditions there is little doubt that the new road would be used extensively, and it is expected that the provision of premises adequately equipped for dealing with passengers and merchandise may be a necessity in the future.
VIII.-LEGISLATION.
33. As foreshadowed in the reports of 1936 and 1937, a Dangerous Drugs Amendment Ordinance was passed which makes a heroin divan and possession of heroin pipes illegal and also introduces legislation in respect of landlords and tenants. As the law now stands, a tenant, lessor or landlord who knowingly lets premises for use as a heroin divan or as a place for storing heroin, or, having let them, consents to their use as such, is liable to prosecution.
IX. CERTIFICATES OF ORIGIN.
34. The year under review saw a great alteration in the procedure for issuing certificates of origin. Up to the end of May certificates were issued, as heretofore, to such factories only as were approved by the Superintendent after departmental investigation and registration. It had, however, long been felt that some more precise system of certification was desirable, especially for trade with other Colonies when Empire preference was sought. At a conference held at the Colonial Office in June, 1937, the broad lines to be followed had been decided and by June 1st, 1938, a new register had been drawn up including the names of firms which had been costed over a period of three months by chartered accountants whose qualifications were such as had been laid down by the Secretary of State for the Colonies. At the same time a new form of certificate came into use, giving the accountant's certification of the Empire content of the particular consignment, while beneath this a Government officer-in practice the Superintendent or Assistant Superintendent-certified that the particular accountant firm was recognised for the purpose, and that the factory applying for the certificate and its consignments had been inspected by the department.
35. This form of certificate, known locally as the "new certificate," is applicable only to consignments to other Colonies. The old form of certificate alone may be used for consignments to the Dominions and United Kingdom, and its chief value is to procure exemption from dumping duties. Thus in practice the "old" and the "new" registers exist together, but while factories on the new register automatically qualify for "old" certificates, those on the old register only cannot obtain "new" ones.
36. The change to the new system was successfully, accomplished with the minimum of friction, thanks in a large measure to the whole-hearted co-operation of the secretary and various sub-committees of the Hong Kong General Chamber of Commerce. It continues to work reasonably well, though the great need for accuracy in details should be impressed on all applicants for certificates. Emenda- tions are of course inevitable, but there are far too many occasions when care in applications would have rendered them unnecessary, and the exporting firms world do well to remember that, while the onus of obtaining certificates does not lie upon them in the first place, it is to their interest to render all possible assistance to the factory managers.
37. During the year old certificates totalled 10,217, of which 5,814 were issued in the first five months. The coming of the new certificates seems, at first view, to have made only a small difference in the numbers issued. For the first five months the monthly average of old certificates was 1,163 while for the last seven the combined monthly average was 1.491. The system naturally took some time to come to its full development; and there is reason to expect higher figures in the future.
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