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Representation to EC on anti-circumvention actions

The Government has forwarded a written representation to the European Commission (EC) regarding the EC's anti-circumvention actions on 3.5-inch microdisks originating in Hong Kong and eight other countries imported into the European Union (EU), the Trade Department announced today (Thursday).

The Assistant Director-General of Trade, Miss Emma Lau, said: "The representation sets out our understanding of EC's objective and the facts leading to the initiating of the anti-circumvention actions, our comments on such actions and our strong appeal to the EC to terminate the case against Hong Kong immediately."

Miss Lau noted that the objective of the EC in initiating the anti-circumvention actions was to ensure correct collection of anti-dumping duties imposed on 3.5-inch microdisks originating in the People's Republic of China and Taiwan.

"As far as Hong Kong is concerned, the EC initiated the actions under a suspicion that certain 3.5-inch microdisks originating in the People's Republic of China and Taiwan were falsely declared of Hong Kong origin," she said.

"We cannot accept the deployment of anti-circumvention actions to tackle, what basically is an alleged origin fraud problem.

"The actions taken are inappropriate and have indiscriminately subject all our manufacturers and exporters who are exporting 3.5-inch microdisks to the EU, to the anti-circumvention measures."

According to Miss Lau, such anti-circumvention measures include investigation and registration of their exports of the product in question upon entry into the EU.

The Assistant Director-General said the proper and legitimate channel to tackle a origin malpractice is for the EC to resolve the alleged problem through customs-to- customs co-operation.

"Hong Kong has rendered, and will continue to render, full co-operation to investigation requests from overseas customs administrations through proper, established and internationally agreed customs rules," she added.

Miss Lau pointed out that there were no multilateral basis for the EU to pursue the present anti-circumvention actions against Hong Kong.

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