TNAG-2757-FCO40-3974-Hong-Kong-customs-arrangements-and-conventions-1993 — Page 2

CONFIDENTIAL

(b)

(c)

(d)

inform the Chinese side through the Sino-British Joint Liaison Group (JLG) prior to accession of Hong Kong's decision to accede to the Istanbul Convention and accept the Annexes referred to in (a) above;

consider acceptance of the other Annexes of the Istanbul Convention after evaluating its post-accession position; and

at a later date and, subject to paragraph 16 below and after completing any necessary consultation within the CCC-

(i)

accede to the Kyoto Convention and accept Annex D1 thereof; and

(ii) accede to the Harmonized System Convention.

XCX(93)53

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Members will be asked to advise whether this recommendation

should be approved.

BACKGROUND AND ARGUMENT

The Customs Co-operation Council

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The CCC was established in 1953 and has the responsibility of promoting customs co-operation between governments by harmonizing and developing customs procedures. Hong Kong became a member of the CCC in 1987. It has been agreed with the Chinese side of the JLG that Hong Kong will remain a member after 1997.

The Istanbul Convention

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The Istanbul Convention, adopted by CCC in June 1990, seeks to consolidate in one single instrument all pre-existing Conventions on temporary admission. It aims to facilitate the temporary admission of goods and means of transport by exempting such temporary imports from the payment of customs tariffs and security. It was opened for accession to all CCC members after 30 June 1991.

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The Istanbul Convention is the most recent Convention adopted by the CCC, and therefore takes into account the unique status of Hong Kong. Unlike other CCC conventions, its provisions were drafted with a