TNAG-1054-FCO40-1304-Trade-relations-between-Hong-Kong-and-the-UK-1981 — Page 88

Textile Quota Controls

Hong Kong has agreed to restrain exports of certain textiles to the USA, Canada, Sweden, the European Economic Community, Finland and Australia. The control of textile quotas is exercised by export licensing by the Department of Trade of the federal Trade Industry and Customs Department.

Certificates of Hong Kong Origin

Many of Hong Kong's trading partners require imports be supported by Certificates of Origin. These are issued by the Department's Trade Controls Division and by five organisations:

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Hong Kong General Chamber of Commerce Indian Chamber of Commerce

Federation of Hong Kong Industries

Chinese Manufacturers' Association of Hong Kong Chinese General Chamber of Commerce. These organisations have been designated by the Government as competent to issue Certificates of Origin.

To obtain Certificates of Origin from the six certificate-issuing organisations it is necessary for manufacturers of Hong Kong goods to be registered with the Department. Strict conditions apply to the issue of such certificates, and severe penalties can be imposed if they are obtained or used improperly.

Generalised Preference Certificates

Since the introduction of the Generalised Systems of Preferences, these developed countries have granted preferential access to their markets for a wide range of Hong Kong goods: Australia, Austria, Canada, the European Economic Community, Japan, New Zealand, Sweden, Switzerland and the USA.

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The Department's Trade Controls Division issues the Generalised Preference Certificates of Origin. The other five approved organisations are authorised to issue them to cover exports of goods to Canada, Japan and Switzerland.

Commonwealth Preference Certificates

Nine Commonwealth countries and territories (Antigua, Cook Island, Malawi, Malaysia, Mauritius, St. Helena, St. Kitts-Nevis, St. Vincent and the Seychelles) continue to grant preferential rates of duty to imports of Hong Kong products. To qualify, it is necessary for the goods to achieve a specified Commonwealth content (usually 25 per cent or 50 per cent of the manufacturing cost). Commonwealth Preference Certificates are issued only by the Department's Trade Controls Division.

Company Registration

There are very few formalities in establishing a business in Hong Kong. Under the Business Registration Ordinance every person, firm or corporation which carries on business in Hong Kong, other than those which do so for charitable purposes, must register with the Inland Revenue Department's Business Registration Office and pay an annual fee of HK$175 (US$35).

In order to incorporate a company limited by shares, these documents must be filed with the Registrar General's Companies Registry:

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Memorandum of Association setting out, inter alia, the objects for which the company is formed and the amount of share capital (which can be increased later if so authorised by the Articles of Association and subject to payment of a fee);

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administration of the company;

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a statutory declaration of compliance with the Companies Ordinance (which is mainly based on the United Kingdom Companies Act, 1929). Fees payable on incorporation are given in Section 6. If a foreign company which is incorporated outside Hong Kong wishes to establish a place of business here, it must comply with Part XI of the Companies Ordinance, which requires submission of these additional documents for registration with the Companies Registry:

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a certified copy of the Charter, Statutes or Memorandum and Articles of the company and, if the instrument is not in the English language, a certified translation thereof;

a list of the directors of the company;

the name and address of one or more persons resident in Hong Kong authorised to accept service of notices, etc., on behalf of the company. There are no requirements as to the nationality of company directors.