XN000022-1997-04-03 — Page 6

4.

"We believe that we have an effective system to deal with the problem of illegal transshipment, particularly with the series of new initiatives that we have introduced in the past year or so.

"We will continue with these initiatives," the spokesman added.

"As part of our efforts against illegal transshipment, co-operation with trading partners has always been important.

"We look forward to continuing to work in co-operation with the US and other trading partners to enhance both sides' effectiveness in the common objective of tackling illegal transshipment," the spokesman said.

With reference to the new measures announced by the US Customs, the spokesman said the Government has reservations as to the need for the US Customs to review the sufficiency of the coverage of the continuous bond for US importers who have been importing from Hong Kong.

"This is one of the things that we will continue to discuss with the US Customs and we will try to find out how in practice the US Customs implement the review of continuous bond coverage.

"We will wish to be satisfied that such review will not in actual practice lead to adverse impact on our trade with the US," the spokesman said.

The US Customs announced on April 2 (Washington time) the outcome of their review of the additional import measures imposed on certain Hong Kong garment imports since June 1996.

The US Customs also announced that it would be reviewing the continuous bond sufficiency for all importers of textiles products claiming country of origin of Hong Kong and that companies with insufficient coverage can anticipate that the US Customs would require increased bond coverage.

In June 1996, the US Customs imposed a number of additional import measures on 10 categories of Hong Kong garments. They are dresses (Categories 336/636), skirts (Categories 342/442/642), nightwear (Category 351), underwear (Categories 352/652) and suits (Categories 443/643).

The measures include additional requirements in import documentation, the requirement for a single entry bond, and the requirement for production verification by the US Customs in Hong Kong factories.