Ref.: EIC 294/11/6/2
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specifications of each size should be detailed in a separate sheet as per the specimen at Appendix IX. The relevant United Kingdom Customs authorities approved line number, or in the absence of this, the manufacturer's reference number, must be quoted in all cases. Applications containing inadequate or misleading description will be rejected.
9.
Each application must be supported by documentary evidence of firm orders and a costing prepared by the approved accountant who represents the manufacturer in Commonwealth Preference matters, certifying the Hong Kong cost content of the goods concerned. Certified true copies or photostat copies together with the original cost statement may be used where any company is submitting a number of applications for the same items. The cost of imported raw materials used in any stage of their production should not be included in the costings.
10.
To facilitate examination of costs and to expedite the issue of approved export authorizations, all costings submitted must be in the exact form of Appendix V or VI to this Notice. No other costing layout will be accepted by the Department. The notes for accountants in Appendix IV should be studied carefully before costings are prepared. Costs allocated to the principal grey fabrics, yarns, finishes and yarn bleaching/dyeing in the production of towels, made-ups or garments must be in accordance with the costs shown in Appendices I, II, IIA and III as appropriate. When the Hong Kong cost of a material or finish is not shown in Appendices I, II, IIA or III costings should first be obtained from the Department.
Materials Used
11.
Only material spun, woven and finished in Hong Kong may be used unless special permission is obtained from the Department. However, British origin cotton woven lining material may be used in the manufacture of garments and in such cases the lining yardage should not be taken into account when calculating the Hong Kong cost content of the goods. To qualify as being of British origin, the material must be woven in Britain, consigned directly to Hong Kong and be supported by an E Form XS 120 issued in Britain.
Samples
12. A finished sample of the goods under application and one square foot of each of the main materials used should be forwarded to the Department with each application. Shippers need not attach identifying trade marks to these samples if they do not wish to do so. A numbered receipt will be issued for each sample accepted which will thenceforward be identified by that number. Samples will be returned to applicants after the end of the shipping period upon production of the relevant receipts.
13.
If samples are already held by the Department against last quarter's allocations, the relevant receipt numbers should be quoted in export authorization applications and, in such cases, the applicant need not submit a new sample.
Allocation of Yardage
14.
Immediately after the closing date, the Department will examine all applications received and will decide on the scale of allocations, giving preference to those with the highest Hong Kong cost content per square yard. Cut-off levels established by virtue of the agreed categorization arrangements will be applied to all specific categories. This will mean that the cut-off levels for approval in specific cate- gories will vary, and a Notice to Exporters will be published giving details of yardage allocations by categories and the cut-off levels immediately after the allocations have been made.
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