XN000022-1996-03-22 — Page 11

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The new rules require assembly of the garments to be origin-conferring, as compared to the present rule for cutting. However, at the same time, the rules stipulate that minor attachments, embellishments, and subassemblies will not affect the origin of the garment.

"The problem for traders is that there is no detailed information on what are these minor processes for each type of cut-and-sewn garment. Without such information, traders cannot plan ahead," she said.

"In anticipation, we have been asking the US side for this information in past exchanges and consultations. But the US approach is such that they can only give binding rulings on a case-by-case basis, and in response to requests. Accordingly, the Hong Kong Textile Council has sent 13 requests for such rulings to the US Customs earlier on.

"At the consultations, the US side were not able to give us such binding rulings. But they gave some useful information which increases our understanding of the rules. They also undertook to ask the US Customs to respond to our trade's 13 requests as early as possible."

As for made-up articles, Mrs Lai said, the Hong Kong side explained the problems that the change in rules would cause to its trade, and the US side agreed to consider the impact on Hong Kong.

At present, made-up articles can be made with imported fabrics. Under the new rules, such Hong Kong products using imported fabrics will not be able to be exported to the US under Hong Kong quotas.

On the question of data for quota accounting purposes, the two side focused on various issues concerning practical arrangements to minimise discrepancies in the two sides' respective data.

"We have earlier on given the US a number of cases where their data is different from ours. The US has now come back with their findings, and where their data is wrong has corrected their records. We are very grateful for their prompt response," Mrs Lai said.

"We are also grateful that they tabled data for the rest of the 1995 textiles year. This will enable us to compare our data with theirs for the whole year, and then to rectify any discrepancies with them quickly. This is important so that when in the middle of this year we have to notify the US of how we wish to use our flexibilities in quotas for this year, we will have an agreed picture of quota utilisation in 1995,"