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"The Trade Descriptions Ordinance also provides for a fine of $500,000 and five years' imprisonment for offences relating to the false labelling of textiles products," the spokesman said, adding that depending on the circumstances of the malpractice in question, the traders concerned may be prosecuted for other offences under the laws of Hong Kong.

In addition to prosecution action, the spokesman said, it is the department's policy to take administrative action against traders in cases of malpractice relating to the importation, exportation, re-exportation and transhipment of textiles products to uphold Hong Kong's international reputation amongst her trading partners.

"Traders infringing the textiles origin rules and/or in breach of any of the provisions of the textiles export control system may be subject to administrative action irrespective of whether they have been prosecuted, whether they are engaged in the export of restrained textiles or are parties to the export licence(s), and if this is the case, whether they are quota suppliers for the shipments concerned," he said.

"Administrative action may also been taken against traders involved in transhipment fraud or other malpractices, irrespective of whether the goods have been shipped, whether Hong Kong quotas have been misused, and whether import/export/re-export licences have been applied for or cancelled.

"In the event that there is more than one party involved, the department may take administrative action against one or more of the parties involved. If, for any reason, one of the parties ceases to be available for administrative actions, then the remaining party or parties will be held wholly responsible for the administrative

action.

"Such administrative actions may include permanent surrender of the full amount of quota involved in the malpractice."

The administrative actions may involve, but shall not necessarily be confined to, any or all of the following:

suspension or cancellation of the textiles control registration of the company/registered business concerned and retrieval of all the quotas held by that company/registered business;

permanent forfeiture or surrender of quota;

withdrawal of the balance of quota remaining unlicensed at that time;