ENG-1975 — Page 44

INDUSTRY AND TRADE

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The exclusion of Hong Kong textiles and footwear from the enlarged EEC's Generalised Preference Scheme continued to be a matter of particular concern. As a result of representations by Hong Kong, the European Economic Community decided to include imports of non-leather footwear from Hong Kong in its 1975 scheme. Efforts are continuing to have Hong Kong's textiles and leather footwear included in the EEC's future schemes.

In January 1975 the United States President signed the Trade Act of 1974– which provided the legal basis for a generalised scheme of preferences to come into effect on January 1, 1976. Hong Kong was not included in the list of beneficiaries of the scheme but was included in a list of potential beneficiaries. Representations were made by the British and Hong Kong Governments regarding Hong Kong's inclusion in the scheme and Hong Kong gave an undertaking to the United States Government to eliminate by January 1976 Hong Kong's Commonwealth preference in respect of liquor, manufactured tobacco and motor vehicles in favour of developed Common- wealth countries. On November 24, the United States Government announced that Hong Kong would be included as a beneficiary of the scheme.

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 resulting from Hong Kong's obligations to restrain certain exports of textile products. As from April 1, 1975, a fee of $15 was introduced for each application for an export licence covering textiles. With this exception, all import and export licences are issued free of charge.

Acetic acid was made subject to import licensing on August 14, while other acetylating substances acetic anhydride, acetyl chloride and acetyl bromide--were brought under import and export licensing control in accordance with the Acetylating Substances (Control) Ordinance 1975 as from September 1. A simplified export licensing arrangement was introduced on October 17 to facilitate the movement of textiles, electrical products (powered by mains supply) and processed and manu- factured foodstuffs trans-shipped at Hong Kong for on-carriage to other places. The number of import licences issued during 1975 totalled 34,470 and export licences 700,049.

With Hong Kong's economic dependence on the export of manufactured goods, mostly made from imported materials, and on the substantial re-export trade, a certification 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 in Hong Kong, the Federation of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong, and the Chinese General Chamber of Commerce. The