TNAG-0148-FCO40-184-Consular-endorsements-of-certificates-of-origin-for-Italy-1969 — Page 44

Ed (2829)

Mr. Stewart

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On the 5th January 1967 an Italian law was passed which established new Consular Regulations and set out the fees payable, which are the same for all countries. On the 1st July 1967 the fees the Consuler General in Hong Kong

on Cotificates of Origin charged for all endorsements were changed from a flat rate of Hong Kong dollars 28.5 to a sliding scale depending on the value of consignments. This had the immediate effect of increasing the average charge on Consular endorsements of HK$44 Hong Kong dollars 44; since devaluation the average figure has HK$

b

47 dollars.

2. Hong Kong regards this figure as an unreasonable charge and has quoted GATT in support of its claim. Hong Kong argued that the Italian Government not acting contrary to the letter of GATT by levying fees for Consular endorsements, but they had an obligation under Article VIII (1) (A) to limit such fees to the cost of services rendered.

With some justification they protested that this is not the case any longer, and had doubts as to whether previous fee level was justifiable.

3. Enquiries revealed that on the 5 October 1966 the Italian Ministry of Finance issued a circular, abolishing the require- ments Certificates of Origin except for certain imports (fish products, coffee, and goods normally shipped in bulk or liquid or gaseous form) and for goods shipped from Hong Kong, Macao and Singapore. Hong Kong are quite happy to maintain the system of Certificates of Origin on their products for obvious reasons, although it is apparent that the Italian Legislation discriminates against Territories. Although no doubt trying to keep out goods which emanated from main land China this is hardly in itself justification for higher fees P Consular endorsement, rather than a more thorough certification system.

4. Following devaluation the Hong Kong Government sent to u an Aide Memoire for submission to the Italian Government, drawing the latter's attention to certain articles in GATT. We then made informal approaches to the Italian authorities,

previous file drawing on the information contained in the draft Aide Memoire

on free 12).

(see

These enquiries were originated in March and there has been considerable delay in following this matter up. Hong Kong is on "table A" of the Italian import list, and gets full most-favoured-Nation treatment in terms of open general licencing. Japan and China are not on this list.

Mainly

for this reason Hong Kong are happy with the Certification of Origin system and do not wish to offend the Italian authorities in any way. Hong Kong see some danger in asking the Italians to dispense with Consular endorsements, since this might arouse their fear of the recurrence of the substitution troubles of 1966 (however ineffective Consular endorsements might be in practice in preventing such substitutions). balance therefore, Hong Kong prefer hot to pursue for the present, the idea of asking the Italians to dispense with

Ovel

On

Consular endorsements. (At present four unofficial organisations in Hong Kong designated to issue Certificates of Origin, under the International Convention relating to simplification of Customs Formalities.)

5.

Following