ENG-1993 — Page 135

INDUSTRY AND TRADE

104

In 1992-93, the ECIC insured exports worth $15,652 million and received gross premium income of $91 million. The maximum liability of policies was $6,406 million. The number of claim cases jumped by 30 per cent to 116 and gross claim payments amounted to $35 million. The excess of income over expenditure was $38.42 million.

The ECIC is a member of the International Union of Credit and Investment Insurers (the Berne Union) and has an international network of contacts. It has ready access to confidential and updated economic and market information on other countries, and credit reports on overseas buyers.

The ECIC's services to the exporting community fall into three main categories. The first category is the protection provided by the corporation to indemnify policy-holders for up to 90 per cent of their losses. Besides domestic exports and re-exports, shipments from third countries direct to overseas buyers are also covered. Protection is provided to exporters against non-payment due to buyers' insolvency, default and repudiation, war or civil disturbance and transfer delays. Cover can be extended to outward processing operations against confiscation and non-repatriation of raw materials, work in progress and finished products. For export of capital goods and services sold on medium or long-term credits, the ECIC can provide tailor-made insurance policies.

Second, the ECIC provides credit advisory services to its policy-holders. On request by a policy-holder, the corporation will investigate the prospective buyer's creditworthiness, having regard to the market trading environment and the terms of payment of the - proposed transaction, and advise the policy-holder on the amount of credit that can be

prudently extended to the overseas buyer.

Third, when a policy-holder encounters payment problems, the ECIC provides a risk management service and advises the policy-holder on possible courses of action, either to prevent or minimise any loss.

During the year, the corporation expanded its links with trade associations, banks and individual exporters. Publicity was stepped up and outreaching activities extended to exporters and manufacturers. A new External Trade Specific Shipment(s) Policy was introduced, providing cover for transactions with a payment period exceeding 180 days. Increased demand for services was met by streamlining procedures and more efficient use of resources. Premium reductions were continued for qualified policy-holders, and service standards formulated prior to the introduction of a performance pledge on April 1.

Other Trade and Industrial Organisations

A number of associations have been established in Hong Kong to represent the interests of industry and commerce. Among the larger, long-established and more influential associations are the Federation of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong, the Hong Kong General Chamber of Commerce and the Chinese General Chamber of Commerce. Other important organisations include the Hong Kong Management Association, the Hong Kong Exporters' Association, the American Chamber of Commerce, the Indian Chamber of Commerce, and the Hong Kong Japanese Chamber of Commerce and Industry.

The Federation of Hong Kong Industries is a statutory body, established in 1960 to promote and protect the interests of Hong Kong's manufacturing industry. It offers a wide range of services, covering certificates of origin, the Hong Kong Quality Mark Scheme, a

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