ENG-1974 — Page 45

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INDUSTRY AND TRADE

When the EEC Council of Ministers met in November to finalise the arrangements for the 1975 scheme the council agreed that the discrimination against Hong Kong's footwear should be removed except in respect of leather footwear. However, it was unable to come to any agreement on the removal of discrimination against Hong Kong's textiles. Instead, the whole scheme would be subject to a general review in 1975 and 'the case of Hong Kong will be reviewed when the Community's scheme for 1976 is drawn up'.

While Hong Kong reconciled itself to the fact that the major part of the dis- crimination would continue into 1975, it was clear that the small measure of success would not have been achieved without the strong efforts that had been made on Hong Kong's behalf by the British Government.

The United States remained the only major market yet to introduce its generalised scheme of preferences. The legal authority to grant preference is contained in the Trade Bill which was under consideration in the Congress during the year.

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Documentation of Imports and Exports

Import and export licensing formalities are kept to a minimum consistent with Hong Kong's international obligations. The most complex formalities are those re- sulting from Hong Kong's obligations to restrain certain exports of textile products.

On January 1, 1974, gold, diamonds, currency notes and coins were removed from the schedules of articles under import and export licensing control. Export licensing was introduced at the beginning of the year to monitor the export and re- export of plastic raw materials in view of the potential threat to overseas supplies to the local industry caused by the world oil crisis. In addition, export quota controls were imposed at various times on five major items of plastic raw materials to retain the traditional pattern of supplies for use in the local industry. The quota restrictions were lifted on July 1, when the supply situation improved, and export licensing was subsequently discontinued. During the year import licensing was also introduced for methyl alcohol to replace the permit system of control exercised under the Dutiable Commodities Ordinance. The number of import licences issued during 1974 totalled 31,128 and export licences 640,806. * -

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With Hong Kong's economic dependence on the export of manufactured goods, mostly made from imported materials, and the substantial re-export trade, a certifica- tion of origin system to meet the requirements of overseas customs authorities, is vitally important. The Commerce and Industry Department issues certificates of origin and accepts the responsibility for safeguarding the integrity of the entire Hong Kong certification system. To this end, close liaison is maintained with overseas authorities and with the authorised non-government certificate-issuing bodies the Hong Kong General Chamber of Commerce, the Indian Chamber of Commerce, the Federation of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong and the Chinese General Chamber of Commerce. The value of domestic exports covered by certificates of origin issued by the six organisations during 1974 was estimated at $10,185 million. Of this, $6,323 million represented the value of exports supported by departmental certificates of origin.

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