TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 101

PROCEDURE FOR EXPORTING CLOTH FROM THE U.K. TO KOREA FOR SUBSEQUENT RE-IMPORTATION AS GARMENTS

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The exporter applies for authorisation to export the cloth to the local Customs and Excise, who then issue a Form C 1152 (Authority to Export).

ANNEXE 3

On this form it must be clearly stated that the meterage to be exported relates to a specific number of garments (called the yield).

The country of garment manufacturer must also be stated.

When authority is finally granted, it will be allocated an

'authorisation number'. All subsequent documentation must refer to this number.

The exporter will prepare shipping bills and invoices and transfer authority to re-import to the eventual UK customer by letter to the Customs and Excise (with copy to the customer).

Goods are then shipped and invoiced to the foreign manufacturer, who pays the exporter for the cloth.

After the goods are made up into garments they are shipped back to the U.K. The number of garments must not exceed the yields originally stated on the Form C1152.

The shipping documents and invoices issued by the foreign manufacturer must be endorsed "Made from cloth of wholly U.K. origin". The invoices must also show a breakdown of costs (i.e. cloth value

+ CMT costs + Shipping costs) and must carry the authorisation number originally issued by Ċ & E.

The documents are then sent in the standard way. On receipt, the eventual U.K. customer will match the C1152 and other related documents and reclaim the duty paid on the cloth.