TNAG-1054-FCO40-1304-Trade-relations-between-Hong-Kong-and-the-UK-1981 — Page 171

British Trade Commission in Hong Kong 9th Floor Gammon House 12 Harcourt Road Hong Kong

Mail Address PO Box No 528 Hong Kong

Telex HX 73031

Cable Address Uktrade Hong Kong Telephone 5-230176

PA

A C G Lowry Esq

CRE 4

Department of Trade

HICK 121/10

1 Victoria Street RVED IN REGISTRY NO. 51

LONDON SW1

Jem Cohen.

Your reference

Our reference

ECO 122/1

Date

27 February 1981

17 MAR 1981

DESK OFFICER

INDEX

PA

REGISTRY [Action Taken

AUDI

In Searle

OUTWARD PROCESSING ARRANGEMENTS

で

al

I enclose two circulars recently issued by the Trade Industry and Customs Department (TICD) modifying Hong Kong's origin certification system to provide for the certification of manufactures partly processed outside of Hong Kong.

2. These new measures have become necessary following the significant growth in Hong Kong's re-export trade which now accounts for almost 30 per cent of the territory's total exports. Local manufacturers in the clothing, electronics and plastics industries, anxious to keep down overheads to remain competitive, have increasingly resorted to the use of the cheaper labour available across the Chinese border on a sub- contracting basis. Since such goods of which the terminal process takes place in Hong Kong can qualify for Hong Kong origin they will of course be subject to any quota restrictions on Hong Kong goods. The TICD have therefore been quick to define the terminal processes necessary to qualify for Hong Kong origin under the new rules and although Hong Kong prices will remain very competitive there should be no increase in imports of sensitive items into the United Kingdom.

cc: R D Clift, HK&GD, FCO/

T Mound, Peking

Keur

evier,

uch

DM March

Senior Trade Commissioner

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