XN000022-1991-05-01 — Page 14

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WEDNESDAY, MAY 1, 1991

"IN HONG KONG, AS IN MOST OTHER PLACES, LINKING-AND-LOOPING REGARDED AS THE ORIGIN-CONFERRING PROCESS.

HONG

IS

"THUS PIECE-KNITTED GARMENTS MAY CARRY THE LABEL OF 'MADE IN KONG' ONLY IF THE KNIT-TO-SHAPE PANELS ARE LINKED-AND-LOOPED IN HONG KONG, MR MACLEOD SAID.

·

HE NOTED THAT PREVIOUSLY THE U.S. RULES WERE THE SAME AS THOSE OF HONG KONG, BUT THE RULES WERE UNILATERALLY CHANGED IN 1985.

SINCE THEN, HE SAID, UNDER THE U.S. RULES, THE KNITTING PROCESS FOR PIECE-KNITTED GARMENTS MUST BE CARRIED OUT IN HONG KONG TO ENABLE THEM TO CARRY THE LABEL OF "MADE IN HONG KONG" ON IMPORTATION INTO THE U.S.

MR MACLEOD ALSO POINTED OUT THAT THE TRADE DEPARTMENT HAD PRESSED THE U.S. AUTHORITIES TO REVERT TO THEIR OLD RULES, BUT TO NO AVAIL.

"THUS AT PRESENT HONG KONG EXPORTS OF PIECE-KNITTED GARMENTS TO THE U.S. MUST MEET BOTH THE HONG KONG AS WELL AS THE U.S. ORIGIN REQUIREMENTS FOR LABELLING.

"AS A RESULT, EXPORTS MUST BE BOTH KNITTED AND LINKED-AND- LOOPED IN HONG KONG.

"NO RELOCATION OF EITHER PROCESS ELSEWHERE, FOR THE PURPOSE REDUCING COSTS, IS POSSIBLE," HE SAID.

OF

AT A TIME WHEN THE HONG KONG KNITWEAR INDUSTRY HAD ΤΟ FACE INCREASING COMPETITION IN THE U.S. MARKET, SUCH DOUBLE REQUIREMENT WAS A SEVERE RESTRICTION ON THE INDUSTRY'S ABILITY TO COMPETE, MR MACLEOD SAID,

ADDING THAT THE KNITWEAR INDUSTRY HAD ASKED THE ADMINISTRATION ΤΟ ALLOW RELEVANT PIECE-KNITTED GARMENTS FOR EXPORT TO THE U.S. TO CARRY THE LABEL OF "MADE IN HONG KONG" IN ACCORDANCE ONLY WITH THE U.S. REQUIREMENTS.

"WE AGREE WITH THE INDUSTRY THAT IT IS NOT REASONABLE ΤΟ SUBJECT THEM TO

DOUBLE REQUIREMENTS WHICH ADVERSELY AFFECT THEIR COMPETITIVE EDGE.

"IN THE CIRCUMSTANCES, WHERE THE INDUSTRY HAS NO OPTION BUT TO COMPLY WITH THE U.S. RULES, WE HAVE CONCLUDED THAT SPECIAL PRACTICAL ARRANGEMENTS ARE REQUIRED.

"WE HAVE, THEREFORE, PROPOSED THE PROVISIONS SET OUT IN THE BILL BEFORE MEMBERS TODAY. THE INTENTION IS TO IMPLEMENT, WITH EFFECT FROM JULY 1 THIS YEAR, A SPECIAL LICENSING SCHEME FOR PIECE-KNITTED GARMENTS FOR EXPORT TO THE U.S., THUS APPLYING THE U.S. RULES ONLY," HE SAID.

MR MACLEOD SAID IT WAS DIFFICULT TO PREDICT WHAT PROPORTION THE LINKING-AND-LOOPING WORK FOR SUCH PIECE KNITTED GARMENTS COULD RELOCATED ELSEWHERE, BUT THE ADMINISTRATION RECOGNISED THAT PROPOSED CHANGES MIGHT HAVE IMPLICATIONS FOR LOCAL EMPLOYMENT.

OF

BE

THE

/HE SAID