XN000022-1995-12-08 — Page 13

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HK to hold talks with the US on new origin rules

In response to press enquiries on the possible impact of the new US origin rules for textiles and clothing products on Hong Kong's exports to the US, a Trade Department spokesman said today (Friday) the matter would be discussed in consultations with the US next Monday (December 11) in Washington DC.

The spokesman said although the department had completed a preliminary impact study on the new US origin rules which were scheduled to come into force on July 1, 1996, it was not possible to give a complete and accurate assessment because key areas of the new rules were unclear.

"For example, for cut and sewn garments, the new rules require assembling as the origin conferring process instead of the existing rule of cutting," the spokesman said.

"At the same time, however, the new rules state that minor attachments, minor embellishments, and minor subassemblies will not affect the status of goods as wholly assembled in a single place. Unfortunately, the new rules do not provide sufficient explanations as to what exactly are such minor processes."

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The situation remained unclear even after briefings given in Hong Kong by three visiting US officials from the Customs Service and Department of Commerce who had just visited Singapore and Indonesia to give talks on the new rules.

They briefed a group of Hong Kong textiles and clothing manufacturers and exporters at a seminar jointly organised yesterday by the Trade Department and the Textile Council. After the seminar, they also held an informal meeting with Trade Department officials.

The spokesman said the meetings were useful in clarifying some points but the US officials were unable to provide definitive advice to some of the questions raised at the informal meeting.

For other textiles and clothing products, the spokesman said the new US origin rules were clearer.

"For example, for finished fabrics and certain textiles made-up articles such as bed, table and kitchen linens, scarves and handkerchiefs, under the new rules, such products using imported grey fabrics will no longer be regarded as of Hong Kong origin.