ENG-2001 — Page 153

COMMERCE AND INDUSTRY

strategic trade controls. For instance, it is kept informed by its major trading partners of developments in international non-proliferation regimes, and it has bilateral arrangements with 13 trading partners to exchange licensing information.

In 2001, the Government introduced into the Legislative Council the Chemical Weapons (Convention) Bill, which seeks to fully implement the Chemical Weapons Convention in Hong Kong. The bill underlines Hong Kong's commitment to internationally agreed arrangements on the ban of chemical weapons and on the monitoring of activities involving sensitive chemicals. The legislation will help enhance Hong Kong's international reputation in the area of strategic trade controls, and help ensure its continued access to a full range of chemicals needed for local industrial, medical, research, and trading purposes.

In 2001, the Customs and Excise Department investigated 185 cases of unlicensed import and export of strategic commodities and prosecuted 39 offenders, resulting in fines amounting to $1.2 million. Goods valued at $1.7 million were seized and confiscated.

Bilateral Investment Promotion and Protection Agreements

Hong Kong has bilateral investment promotion and protection agreements with 14 of its major investment partners: Australia, Austria, Belgium/Luxembourg, Denmark, France, Germany, Italy, Japan, Republic of Korea, the Netherlands, New Zealand, Sweden, Switzerland and the United Kingdom. A primary objective of these agreements is to assure overseas investors of the stable investment environment in Hong Kong.

Customs Co-operation

Hong Kong plays an active role in the work of the World Customs Organisation (WCO), which aims at enhancing the effectiveness and efficiency of customs administrations and facilitating trade by achieving harmony and uniformity of customs procedures among its members. As at December, the WCO comprised a world-wide membership of 159 Customs administrations.

In July 2000, under the name of 'Hong Kong, China', the Customs and Excise Department was elected the Vice-Chairman of the WCO representing the Asia Pacific Region for a term of one year, and was re-elected in July 2001 for another term of one year.

The department works closely with the WCO Chairman and members of its Policy Commission in formulating policies and strategies to achieve the missions of the WCO. As the WCO's Vice-Chairman representing the Asia Pacific Region, the department also assumes

assumes responsibility for co-ordinating regional efforts in promoting liaison and co-operation, compliance and facilitation, reform and modernisation, training, integrity and human resource development among the Customs administrations of the region.

The department, in collaboration with the regional members, devised a two-year Regional Strategic Plan for 2001 and 2002. In 2001, the department established a WCO Asia Pacific Regional Website and began the publication of a regional newsletter, the Asia Pacific Customs News. In July, it co-hosted a regional training seminar on intellectual property rights (IPR) protection with the WCO to enhance co-

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