XN000022-1997-03-05 — Page 12

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Outward processing arrangement rationalised

The Trade Department will launch a Rationalised Outward Processing Arrangement (ROPA) next month to facilitate manufacturers in the outward processing of subsidiary and minor finishing processes of their products.

The existing Outward Processing Arrangement (OPA) operated by the Department enables registered manufacturers to subcontract outside Hong Kong the subsidiary or minor finishing processes without affecting the eligibility of such goods for a Certificate of Hong Kong Origin (CHKO).

A prerequisite for participation in the OPA is that the goods must have undergone the principal manufacturing processes in Hong Kong which are sufficient to qualify for the issue of a CHKO by the Department or any of the five Government Approved Certification Organisations.

"The ROPA continues to facilitate the outward processing of subsidiary and minor finishing processes without affecting the eligibility of such goods for a CHKO," a Trade Department spokesman said today (Wednesday).

"The procedural and documentation requirements have been modified and streamlined to better facilitate the trade and to enhance control over outward processing activities."

Main features of the ROPA are as follows:

Ex

Manufacturers participating in the ROPA must be holders of valid Factory Registration with the Trade Department for certification

purposes;

A prior OPA registration on a factory basis is required and the registration is renewable on an annual basis. The factory only needs to declare the broad product type registered with the Department. Approved OPA registrants will be issued with multiple OPA cards;

Photographs of the goods before and after outward processing must accompany the cargo, but prior endorsement of the photographs will not be required from the Trade Department;

A Combined Form will be adopted to replace the existing OPA Form 1 (Export) and Form 2 (Import);