ENG-1980 — Page 44

INDUSTRY AND TRADE

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On August 1, 1980, all textile imports were made subject to an automatic licensing system. The main purpose of the system is to monitor the flow of textiles into Hong Kong to help identify possible instances of circumvention of the textiles export control system.

After the completion of the computerisation of the system controlling textile exports to the United States of America in August, 1979, work commenced in early 1980 on the computerisation of the system controlling textile exports to the EEC.

In line with action taken in the United Kingdom and other member states of the European Economic Community, the government announced (on June 4, 1980) the imposition of economic sanctions against Iran. All exports to Iran are therefore subject to licensing control and, while those covering food and medical supplies are issued freely for humanitarian reasons, applications to export other products are not entertained unless the supply or sale of goods was made in pursuance of a contract made before May 30, 1980, or in pursuance of established business links.

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With Hong Kong's 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 important. The Trade Industry and Customs Department issues certificates of origin and accepts responsibility for safeguarding the integrity of the entire Hong Kong certification system. To this end, close liaison is maintained with overseas authorities and with five government-approved certification organisations 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 value of domestic exports covered by certificates of origin issued by the department and the five approved organisations during 1980 was estimated at $18,093 million, of which $11,759 million was covered by government-issued certificates.

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Form 'A' certificates are issued by the Trade Industry and Customs Department to support exports claiming preferential entry into countries which grant tariff preferences to Hong Kong under generalised preference schemes. The five government-approved certifica- tion organisations have been approved to issue Form 'A' certificates for exports to Canada, Japan and Switzerland. The value of exports covered by Form 'A' certificates in 1980 amounted to $16,107 million.

1977,

Although Britain abolished Commonwealth preferential rates of duty from July eight Commonwealth countries continue to grant Commonwealth preferential rates of duty to Hong Kong products. To support claims of preference for exports to these countries, the Trade Industry and Customs Department issues certificates of origin with an endorsement to show the Commonwealth content of the products. The value of exported goods covered by endorsed certificates of origin for Commonwealth preference in 1980 was $11 million.

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An estimated 50.2 per cent of Hong Kong's domestic exports are covered by origin certi- ficates of one type or another - 40.7 per cent of them by government-issued certificates.

During the year, representatives of the Trade Facilitation Committee a body set up to advise the Director of Trade Industry and Customs and industrial and trade organisations on standardising and simplifying trade documents and procedures - attended a series of international trade facilitation meetings in Europe. These provided opportunities for Hong Kong to learn from, and exchange views with, other bodies concerned with trade documentation and trade procedures. The committee also organised several seminars in Hong Kong to publicise and advocate the use of its aligned series of export document forms.