TNAG-1447-FCO40-1931-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1986 — Page 132

For discussion

CONFIDENTIAL

on 14 January 1986

XCC (86) 6 40 Copy No

MEMORANDUM FOR EXECUTIVE COUNCIL

Import and Export Ordinance

(Chapter 60)

IMPORT AND EXPORT (REGISTRATION) (AMENDMENT) REGULATIONS 1986

6

Jall

Introduction

3

are the

Annexed for the consideration of Members Import and Export (Registration) (Amendment) Regulations 1986. which seek to increase the penalties for the late lodgement of import and export declarations and the minimum charge of the ad valorem levy.

Background

2

Under

the Import and Export (Registration) Regulations, import and export declarations are required to be lodged with the Customs and Excise

and Excise Department and

Department and they are subject to an ad valorem levy at a basic rate of 50 cents per $1,000, except for declarations relating to articles of a value not exceeding $4,000 for which the minimum charge is $2. Failure to lodge these declarations within 14 days after goods have been imported or exported renders an importer or exporter liable to penalties, which presently range from $10 to $200 depending on the value of the articles specified in the declarations and the period for which lodgement has been delayed.

Proposals

Penalties for late declarations

3

The existing penalties for late declarations were set in 1976. Since then, the percentage of late declarations has almost doubled to 13.5%. This adversely affects the accuracy of Hong Kong's external trade statistics and it has been necesary to deploy considerable staff resources to demand lodgement and take follow up action. As the majority of late declarations are due to negligence or slackness on the part of importers and exporters, it is considered necessary to increase those penalties whose deterrent effect has been eroded by inflation in the recent years. Regulation 2 of the Import and Export (Registration) (Amendment) Regulations 1986 accordingly provides for the following revisions in penalties:

H111111 011/2

VECEIVED IN REGISTRY 1 0 JAN 1986

SK OFFICER

CONFIDENTIAL

INDEX

PA

REGISTRY Action Takers