XN000022-1996-11-08 — Page 7

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Giving details of the new measure, a Trade Department spokesman said: "A factory audit check is a combination of consignment check, factory inspection and production capacity verification where all certificates of origin and certificate of origin applications and/or licences and licence applications taken out or submitted by a manufacturer will be verified against the relevant manufacturing records and export documentation to ensure the accuracy of the material particulars declared on the certificates and/or licences.

"At the same time, all particulars declared on the application for factory registration and the production capacity information supplied by the manufacturer will also be verified."

The spokesman said factory audit checks would be conducted by authorised officers of the Customs and Excise Department on any manufacturers, subcontractors or exporters as and when required.

Officers of the Customs and Excise Department are empowered by law to enter the premises of the manufacturers, subcontractors, exporters and any other parties involved in the manufacture and export of textiles consignments and to conduct checks at any reasonable time.

The spokesman said in the event of factory audit checks, the responsible person of the factory would be required to complete a questionnaire and all parties concerned including the manufacturer, the exporter and the subcontractor should render all necessary assistance and co-operation to officers of the Customs and Excise Department in conducting the checks.

In particular, they are reminded to observe the following:

a)

b)

the manufacturer, the exporter and the subcontractor must make the goods available for inspection and produce the relevant commercial and shipping documentation and manufacturing records as appropriate to show that the goods have been manufactured and will be properly exported in accordance with the provisions of the Textiles Export Control System;

the manufacturer, the exporter and the subcontractor must produce the manufacturing records and other documents to substantiate the origin of textiles products. The manufacturer must also furnish the relevant records for verification of its declared production capacity; and