ENG-1959 — Page 100

78

HONG KONG ANNUAL REPORT

Association and the Indian Chamber of Commerce issue certificates of Hong Kong and other origin which are acceptable in varying degree to overseas authorities. The majority of overseas authorities requiring certificates of Hong Kong origin stipulate those issued by the Commerce and Industry Department. Possess- ing almost no raw materials, Hong Kong's claim to originate its manufactures rests on the work done in processing imported materials, or their transformation into entirely new products. During 1959 the Commerce and Industry Department continued to take pains to ensure that goods which it certified as of Hong Kong origin warranted that designation.

Except in the case of exports to the United Kingdom the depart- ment also issues Commonwealth Preference Certificates for exports claiming entry at preferential rates into those Commonwealth countries which grant preference to Hong Kong. They certify the proportion of Commonwealth content in the goods they cover and are based on cost statements prepared by public accountants approved for the purpose. In the case of the United Kingdom, the accountants themselves issue the certificates and submit cost state- ments in support direct to H.M. Customs and Excise in the United Kingdom.

During 1959 the certification work of the departmentTM continued to expand and the administrative practices for the issue of certi- ficates of origin were under constant review. The department modified its practices and procedures wherever possible to expedite the issue of certificates and to simplify the handling of an increased volume of applications. Co-operation and liaison with overseas customs authorities proved beneficial in both the promotion and the control of certified exports. Exports of goods certified by the Commerce and Industry Department as of Hong Kong origin were valued at $595.5 million during 1959. Commonwealth Preference certificates covering goods (other than exports to the United Kingdom) to the value of $138.5 million were also issued.

An additional complexity arises from the need to maintain Hong Kong's trade with the United States in accordance with the United States Foreign Assets Control Regulations which prohibit the import of a range of products presumed to originate in China or North Korea unless evidence is produced to the contrary. Procedures operated by the Department and designed to produce