XN000022-1994-08-18 — Page 6

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THURSDAY, AUGUST 18, 1994

A SPOKESMAN FOR THE INLAND REVENUE DEPARTMENT TODAY REMINDED TAXPAYERS THAT THEY MUST FILE CORRECT TAX RETURNS.

(THURSDAY)

UNDER THE INLAND REVENUE ORDINANCE, A TAX EVADER IS LIABLE TO A MAXIMUM SENTENCE OF THREE YEARS' IMPRISONMENT AND A FINE OF $20,000 ON BACH CHARGE, IN ADDITION TO A FURTHER FINE EQUIVALENT TO THREE TIMES THE AMOUNT OF TAX UNDERCHARGED.

OUTWARD PROCESSING TRADE IN CHINA FOR FIRST QUARTER 1994

IN THE FIRST QUARTER OF THIS YEAR, 43% OF HONG KONG'S EXPORTS TO CHINA WERE FOR OUTWARD PROCESSING; THE FIGURE WAS 69% DOMESTIC EXPORTS, AND 39% FOR RE-EXPORTS.

TOTAL FOR

ON

THE OTHER HAND, 78% OF HONG KONG'S IMPORTS FROM CHINA WERE TODAY RELATED TO OUTWARD PROCESSING, ACCORDING TO STATISTICS RELEASED (THURSDAY) BY THE CENSUS AND STATISTICS DEPARTMENT.

OVER THE SAME PERIOD, 80% OF HONG KONG'S RE-EXPORTS OF CHINA ORIGIN TO ALL COUNTRIES OTHER THAN CHINA WERE PRODUCED THROUGH OUTWARD PROCESSING IN CHINA.

THE CORRESPONDING PROPORTIONS IN THE FIRST QUARTER OF 1993 WERE 47% FOR TOTAL EXPORTS TO CHINA, 73% FOR DOMESTIC EXPORTS TO CHINA, 41% FOR RE-EXPORTS TO CHINA, 71% FOR IMPORTS FROM CHINA AND 77% FOR RE- EXPORTS OF CHINA ORIGIN TO ALL COUNTRIES OTHER THAN CHINA.

TO PROVIDE A BETTER UNDERSTANDING OF THE NATURE AND IMPORTANCE OF OUTWARD PROCESSING IN CHINA INITIATED BY HONG KONG FIRMS, THE CENSUS AND STATISTICS DEPARTMENT HAS BEEN CONDUCTING A SAMPLE SURVEY то SINCE THE THIRD QUARTER OF 1988 TO DISTINGUISH HONG KONG'S EXPORTS CHINA INTO THOSE WHICH ARE FOR OUTWARD PROCESSING AND THOSE WHICH ARE NOT.

THE SCOPE OF THE SURVEY HAS BEEN EXTENDED AS FROM THE FIRST QUARTER OF 1989 SO AS TO SEGREGATE HONG KONG'S IMPORTS FROM CHINA INTO THOSE WHICH ARE RELATED TO OUTWARD PROCESSING AND THOSE WHICH ARE NOT.

STARTING FROM THE FIRST QUARTER OF 1991, THE SCOPE OF THE SURVEY HAS FURTHER BEEN EXTENDED SO AS TO SEGREGATE HONG KONG'S RE- EXPORTS OF CHINA ORIGIN TO ALL COUNTRIES OTHER THAN CHINA WHICH ARE PRODUCED THROUGH OUTWARD PROCESSING IN CHINA AND THOSE WHICH ARE NOT.

THE RESULTS FOR THE FIRST QUARTER OF 1994 ARE NOW AVAILABLE.

IN VALUE TERMS, $35,065 MILLION OF HONG KONG'S TOTAL EXPORTS TO IN THE FIRST QUARTER OF 1994 WERE

WERE FOR OUTWARD PROCESSING, REPRESENTING AN INCREASE OF 4% OVER THE FIRST QUARTER OF 1993.

CHINA

ΤΟ

THE VALUE OF DOMESTIC EXPORTS TO CHINA FOR OUTWARD PROCESSING DECREASED BY 16% TO $8,258 MILLION WHILST THE VALUE OF RE-EXPORTS CHINA FOR OUTWARD PROCESSING GREW BY 13% TO $26,807 MILLION.

/OVER THE