ENG-1961 — Page 112

INDUSTRY AND TRADE

83

that they do not exceed the agreed quantities. Quotas allocated to shippers were kept under constant review in order to ensure full utilization of the permitted yardage. Arrangements were made towards the end of the year for the allocation of quotas under the new undertaking which is effective for a period of eleven months from 1st February 1962.

Documentation of Origin. With the growth in the export of Hong Kong products. The certification of origin of locally manufactured goods has become increasingly important. The Hong Kong General Chamber of Commerce, the Federation of Hong Kong Industries, the Indian Chamber of Commerce, the Chinese Manufacturers' Association and the Chinese General Chamber of Commerce issue certificates of Hong Kong origin which are acceptable in varying degrees to overseas authorities. Some of these associations also issue certificates of other than Hong Kong origin in respect of goods entering the entrepôt trade. Most overseas authorities, how- ever, continue to require imports of Hong Kong products to be covered by certificates of origin issued by the Commerce and Industry Department. Since Hong Kong has practically no raw materials, the origin of goods manufactured by local factories is established by the work carried out in processing imported materials or transforming them into entirely new products. During 1961 the Commerce and Industry Department, by a system of factory registration and inspection, continued to ensure that the goods certified were in fact entitled to claim Hong Kong origin.

Except in the case of exports to Britain, the Department also issues Commonwealth Preference Certificates to enable Hong Kong products to claim preferential rates of duty on entry into those Commonwealth territories which grant preference to Hong Kong. Preference certificates indicate only Commonwealth content in the goods covered and are issued against cost statements pre- pared by public accountants approved for the purpose.

For exports to Britain claiming preference, it has been the practice for the approved public accountants to issue the certificates based on cost statements submitted direct to HM Customs and Excise. In April 1961, by arrangement with HM Customs and Excise, the Department began to countersign and issue these certificates.