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"To allow authorised insurers sufficient time to comply with the new minimum capital and solvency margin requirements, a transitional period up to October 31, 1997 is proposed," he said.

"However, the new requirements will apply immediately to insurers newly authorised after commencement of the amendment ordinance.

"As regards the prohibition of use of the word 'insurance', a transitional period of 12 months is allowed for a person to change his business name, if necessary," the spokesman said.

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Dutiable Commodities (Amendment) Bill to be gazetted

The Dutiable Commodities (Amendment) Bill 1996 will be gazetted on Friday (February 2).

"The main objectives of the amendment bill are to facilitate trade operation, streamline enforcement action and improve the control of dutiable commodities for better revenue protection," a government spokesman said.

"Under the bill, we also propose to introduce a compounding scheme to replace prosecution of minor offences involving dutiable commodities with an administrative penalty system.

"Under the proposed scheme. if a person enters Hong Kong at an entry point carrying with him dutiable goods in excess of the duty free concessions and he fails to make a declaration or makes a false declaration. he commits an offence and the Commissioner of Customs and Excise will have the power to compound that offence.

"The person will be subject to a fine equivalent to five times the duty payable in respect of the goods in excess. However, he will have the right to elect not to have the offence compounded but to have it tried in court," the spokesman explained.

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