ENG-1983 — Page 49

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INDUSTRY AND TRADE

Since August 1, 1980, all textile imports have been subject to licensing. The main purpose of this requirement is to monitor the flow of textiles into Hong Kong to help identify possible breaches of the textile export control system. A major review of the textiles export control system, the third of its kind after similar reviews in 1976 and 1980, was carried out in 1983. Modifications were introduced to ensure that the system remained effective and continued to meet the demands of the changing patterns of trade.

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 Department issues certificates of origin and accepts responsibility for safeguarding the integrity of the entire Hong Kong certification system. Close liaison is maintained with the Customs and Excise Department, overseas customs authorities, and with five government- approved certification authorities: 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 Com- merce. The value of domestic exports covered by certificates of origin issued by the department and the five approved organisations in 1983 was estimated at $27,221 million, of which $16,431 million was covered by government-issued certificates.

Form 'A' certificates are issued by the Trade Department to support exports claiming preferential entry into certain countries which grant tariff preferences to Hong Kong under generalised preference schemes: the EEC, the United States, Japan, Canada, Norway, Austria, Sweden, Switzerland and New Zealand. The five government-approved certifica- tion organisations are authorised to issue Form 'A' certificates for exports to Austria, Canada, Japan, New Zealand, Norway and Switzerland. In 1983, the value of exports covered by Form 'A' certificates amounted to $21,146 million. An estimated 46.1 per cent of Hong Kong's domestic exports are covered by origin certificates of one type or another - 35.5 per cent of them by government-issued certificates.

Trade Department

The responsibilities of the Trade Department include the conduct of Hong Kong's external commercial relations, certification of origin, and export and import licensing, including textiles and reserved commodities. On matters of policy affecting trade, the Director of Trade relies on advice from the Trade Advisory Board and the Textiles Advisory Board, through the Secretary for Trade and Industry.

The department's work is assisted by five overseas offices of the Hong Kong Govern- ment, in London, Brussels, Geneva, New York and Washington. Details are at Appendix 2. These overseas offices are administered by the Councils and Administration Branch of the Government Secretariat, although much of their business is trade-related. They represent Hong Kong's commercial relations interests on a day-to-day basis and provide information on international developments which may affect Hong Kong.

The department consists of the Multilateral and North America Group and the Rest of the World and Systems Group, together comprising five divisions. One division is responsible for the multilateral aspects of Hong Kong's external commercial relations and for gathering information and formulating policy recommendations on issues affecting Hong Kong and general commercial interests. Three divisions are responsible for Hong Kong's external commercial relations and textile export control in respect of North America (USA and Canada); EEC, Portugal, Spain and Turkey; and other regions. Their work includes the preparation for, and conduct of, trade negotiations, and the collection