XN000022-1987-02-08 — Page 4

SUNDAY, FEBRUARY 8, 1997

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TRADE OFFICIALS BOUND FOR GENEVA

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A TEAM OF TRADE DEPARTMENT OFFICIALS WAS DUE TO LEAVE FOR GENEVA LATER TODAY (SUNDAY) FOR TARIFF TALKS WITH THE UNITED STATES UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT).

THE UNITED STATES IS PROPOSING CHANGES IN ITS TARIFF RATES AS A RESULT OF ADJUSTMENTS IN CLASSIFICATION SYSTEMS.

THE DEPUTY DIRECTOR OF TRADE, MR TONY MILLER, WHO IS LEADING THE HONG KONG DELEGATION, EXPLAINED THAT A NEW SYSTEM OF CLASSIFICATION OF IMPORTS AND EXPORTS THE HARMONISED SYSTEM WILL REPLACE THE EXISTING TARIFF SCHEDULE OF THE UNITED STATES.

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THE HARMONISED COMMODITY DESCRIPTION AND CODING SYSTEM IS BEING INTRODUCED INTERNATIONALLY AND IS PROMOTED BY THE CUSTOMS CO-OPERATION COUNCIL IN BRUSSELS. IT AIMS TO PROVIDE A SYSTEM OF CLASSIFICATION OF TRADE WHICH IS ACCEPTED INTERNATIONALLY, WITHOUT COUNTRY-BY-COUNTRY VARIATIONS. THIS WILL SIMPLIFY WORLD TRADE IN PARTICULAR CUSTOMS TARIFFS AND INTERNATIONAL STATISTICAL REQUIREMENTS.

THE UNITED STATES WILL CHANGE TO THE HARMONISED SYSTEM IN JANUARY, 1988.

SOME OF THE PROPOSED ALTERATIONS TO TARIFF RATES WHICH ARE REQUIRED IN MAKING THIS CHANGE WOULD RESULT IN ALTERATIONS TO THE DUTY PAYABLE ON MAJOR HONG KONG PRODUCTS IMPORTED INTO THE U.S.A.

FOR INSTANCE, A PRODUCT NOW IN A GROUP SUBJECT TO A PARTICULAR DUTY MAY FIND ITSELF MOVED TO A HARMONISED SYSTEM GROUP WITH A HIGHER DUTY AND SOME MOVES WOULD RESULT IN LOWER DUTIES.

HONG KONG HAS REQUESTED CONSULTATIONS UNDER THE GATT TO DISCUSS CHANGES WHICH WOULD RESULT IN INCREASED DUTIES BEING PAYABLE, MR MILLER SAID.

HONG KONG WILL ALSO ADOPT THE HARMONISED SYSTEM IN JANUARY,

+ .1988 - TOGETHER WITH THE UNITED STATES AND MANY OTHER GATT MEMBER COUNTRIES INCLUDING THE E.E.C. AND CANADA.

THE ADVANTAGES OF THE NEW SYSTEM INCLUDE THE FACT THAT COMMON INTERNATIONAL NOMENCLATURE WILL HELP STANDARDISE TRADE DOCUMENTATION AND MAKE IT EASIER TO COLLECT MORE ACCURATE DATA.

SUCH DATA WILL BE PARTICULARLY USEFUL IN INTERNATIONAL TRADE NEGOTIATIONS AND IN SIMPLIFYING THE APPLICATION AND INTERPRETATION OF CUSTOMS AGREEMENTS.

UNDER THE GATT, ANY NATION WITH SIGNIFICANT INTEREST IN PRODUCTS BECOMING SUBJECT TO CHANGES IN TARIFF DUTIES AS A RESULT OF THE INTRODUCTION OF THE NEW SYSTEM CAN SEEK CONSULTATIONS WITH THE IMPORTING COUNTRY CONCERNED.

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