**
CYPHER/CA TA
PRIORITY HONG KONG
CONFIDENTIAL
ཝིཡ , སྶ ...
TO FOREIGN AND COMMONWEALTH OFFICE
PRIORITY HONG KONG. TELEGRAM NO. 172 TO OTTAWA 10 MARCH, 1969
TOP COPY
H
CONFIDENTIAL
NEUTRAL/
ADDRESSED OTTAVA TELEGRAM M72 OF 10 MARCH RFI FCO AND
UKKIS GENEVA (FOR JONES),
FOLLOWING FOR CRAY.
VALUATION FOR CUSTOPS PURPOSES,
ALL SHIPPERS OF CLOTHING TO CANADA HAVE RECEIVED LETTERS DATED 26
FEBRUARY FROM CANADIAN CUSTOMS NOTIFYING THAT A RECENT SURVEY
*INDICATED THAT VALUES CERTIFIED TO IN THE FAIR MARKET VALUE COLUMN
OF CUSTOS INVOICES GENERALLY REPRESENTED ADVANCES OVER MAN FACT-
UPING COSTS THAT WERE LESS THAN THOSE PREVAILING ON SIMILAR ITEMS
MANUFACTURED FOR SALE AND CONSUMPTION IN HONG KONG*.
2. THE LETTERS GO ON TO SAY
MİLARİ
CAD THAT THIS METHOD OF VALUATION IS NOT ACCEPTABLE TO CANADIAN
CUSTONG AND PRICES KINCEFORTH MUSTY REFLECT DOMESTIC PRICES
SEMICOLOR GUT IN ANY CASE
(R) IF NO LIKE OR SIMILAR GOODS ARE SOLD FOR CONSUMPTION IN HONG KONG
THE FAIR MARKET VALUE IS HELD TO BE THE MANUFACTURING COST IN THE
CONDITION AS EXPORTED TO CANADA PLUS AN ADVANCE OF A PERCENTAGE
WHICH HAS VARIED IN THE LETTERS RECEIVED FROM 40 TO 65.
3. THE PROVISIONS OF THE CUSTOMS ACT ARE ACKNOWLEDGED, BUT THIS
ACTION WHICH EFFECTIVELY INSISTS ON A MINIMUM GROSS PROFIT MARGIN OF
478 ON ALL CLOTHING EXPORTS TO CANADA APPEARS TO BE AN UNREASONABLE
INE OF THE ARBITRARY POWERS IT ACCORDS. HONG KONG SHIPPERS ARE
ATTEMPTING TO RALLY THEIR CANADIAN IMPOSTERS TO RESIST THIS RULING
WHICH IS EFFECTIVE IMMEDIATELY.
LAST
REF.
RECEIVED IN ARCHIVES N. 31
CONFIDENTIAL
NCA
}
5 4./THIS ACTION
11
MICK6/38/1/
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