ENG-1974 — Page 46

INDUSTRY AND TRADE

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Britain and a number of other Commonwealth countries grant preferential rates of duty to Hong Kong products. To support claims to preference, the Commerce and Industry Department issues Commonwealth preference certificates against legal under- takings given by manufacturers to use only Commonwealth raw materials or detailed cost statements. During the year, the department obtained the agreement of certain countries to simplify the procedures and documentation requirements for claim to Commonwealth preference. Effective from September 1, cost statements and under- takings which previously had to be prepared by authorised accountants, could now be prepared by the manufacturers. New Zealand, Jamaica, Barbados, the Solomon Islands and St Lucia have also agreed to accept certificates of origin issued by the department with an endorsement to show the requisite Commonwealth content in the manufacture of the products instead of Commonwealth preference certificates prepared by author- ised accountants. The value of goods exported under these certificates during the year was $1,635 million.

A number of countries grant tariff preferences to developing countries under generalised preference schemes. Hong Kong is a beneficiary under the schemes operated by Austria, Canada, Japan, the European Economic Community, New Zealand, Sweden and Switzerland. The value of exports in 1974 covered by generalised pref- erence certificates, which in Hong Kong are issued only by the Commerce and Indus- try Department, amounted to $1,867 million. It is not known what proportion of these exports was actually granted preferential entry.

An estimated 59.8 per cent of Hong Kong's domestic exports were covered by certificates of origin of one type or another 42.9 per cent of them by the department's certificates.

The Trade Facilitation Committee, an advisory body to the Director of Commerce and Industry and to industrial and other organisations in Hong Kong in the field of standardisation and simplification of trade documents and trade procedures, organised the Hong Kong Far East Trade Facilitation Seminar from November 13-14. The seminar reviewed the progress being made, the problems that were pending, pro- grammes for the future and the consolidation of joint work and corrective patterns in trade facilitation. Participants included delegations from the United States, Britain, France, Japan, Canada, Australia, the Philippines and representatives from the United Nations Conference on Trade and Development, the International Chamber of Com- merce, the Customs Co-operation Council, the International Maritime Committee, and the International Air Transport Association.

Administration

The responsibilities of the Commerce and Industry Department include the con- duct of overseas commercial relations, industrial development and investment promo- tion, certification of origin, trade controls and the collection and protection of revenue from dutiable commodities. Its work is complemented by several autonomous institu- tions either wholly or partly financed by public funds.

On matters of policy affecting trade and industry other than textiles, the Director of Commerce and Industry takes advice from the Trade and Industry Advisory Board