XN000022-1996-02-14 — Page 12

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The Dutiable Commodities Ordinance was enacted in 1963. It deals with the taxation and control of dutiable commodities. With the passage of time, the Ordinance has become inadequate in meeting modern day needs in trade operation and enforcement control. It has also not kept pace with developments in other areas. A major aim of the Bill is to modernise the legislation in order to facilitate trade operation and to improve enforcement and control of dutiable commodities. Thus, the Bill includes provisions for -

(i) streamlining of procedures in the assessment of duty and licensing;

(ii) improvements to ensure conformity with Bill of Rights requirements; and

(iii) introduction of a compounding scheme.

I should say a few words about the compounding scheme. Under the Bill, if a person enters Hong Kong at an entry point carrying with him dutiable goods in excess of the duty free concession and he fails to make a declaration or makes a false declaration to Customs officers, he commits an offence. The Bill proposes that the compounding scheme empower the Commissioner of Customs and Excise to compound that offence if the duty payable in respect of the excess dutiable goods does not exceed $10,000. The person involved will be subject to a fine equivalent to five times the duty payable. This will allow speedy settlement of the case. However, the person involved will have the right to elect not to have the offence compounded but to have it tried in court. Similar schemes operate in other countries like the United Kingdom, Australia and Singapore where they have proved successful.

Finally, we have also taken the opportunity of this exercise to propose various updating and adaptation measures.

Mr President, I commend the Bill to Members.

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