ENG-1971 — Page 64

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INDUSTRY AND TRADE

The European Economic Community was the first bloc of the developed countries to put into operation the generalised preference scheme for developing countries from July 1, 1971. During the latter half of the year, the department endorsed and issued special certificates of origin to cover exports claiming preference under this system to EEC member states. Between July and December 1971, goods so exported were valued at $191.4 million.

An estimated 79 per cent of Hong Kong's domestic exports were covered by certificates of origin of one type or another; 49 per cent of them by the department's certificates.

ADMINISTRATION

The Commerce and Industry Department's responsibilities include overseas commercial relations, industrial development, origin cer- tification, trade controls and the collection and protection of revenue from dutiable commodities. Its work is complemented by several autonomous institutions either wholly or partly financed by public funds, whose functions and activities are outlined in subsequent sections.

There are two Commercial Relations Divisions in the department, which collect and disseminate information on trade policy measures by other countries that may affect Hong Kong, and keep in touch with the activities of international organisations. The divisions are also responsible for conducting Hong Kong's trade negotiations with other governments and for implementing the agreements reached. This involves the calculation and allocation of textile quotas and the operation of export control procedures.

The department's three overseas offices in Brussels, Washington and Geneva are almost entirely concerned with commercial relations work and provide up-to-date information on international matters which are likely to affect Hong Kong. Similar work is undertaken by the Hong Kong Government Office in London.

The Industry Division provides a liaison between industry and other government departments, answers industrial enquiries from overseas and deals with specific industrial problems. It also operates the UNCTAD generalised preferences scheme, as well as certificate of origin and Commonwealth preference procedures. A trade in- vestigation service enforces these procedures through the regular inspection of factories and goods and the prosecution of those suspected of contravening the relevant regulations, apart from handling trade complaints.