ENG-2002 — Page 155

COMMERCE AND INDUSTRY

Customs Cooperation

Hong Kong plays an active role in the work of the World Customs Organisation (WCO), which aims to enhance the effectiveness and efficiency of customs administrations and facilitate trade by achieving harmony and uniformity of customs procedures among its members. As at December, the WCO comprised a world-wide. membership of 161 Customs administrations.

In July 2001, under the name of Hong Kong, China, the Customs and Excise Department was re-elected the Vice-Chairman of the WCO representing the Asia Pacific Region for a 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 responsibility for coordinating regional efforts in promoting liaison and cooperation, 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 guidelines to enhance customs mutual administrative assistance in the region. In April, the department successfully hosted the 9th WCO Regional Conference of Heads of Administrations for discussion of a wide range of customs regional strategic issues. The department also participated in the work of the Subcommittee on Customs Procedures (SCCP) of APEC. It was elected Chairman of the SCCP Trade Facilitation Working Group, which was tasked to improve members' communication and cooperation with the business sector. The department was also elected co-partner for a number of SCCP Collective Action Plans on trade facilitation within APEC.

The department continued to offer strong support for customs cooperation in the Asia Pacific Region. Since January 1999, the department has seconded an officer to the Regional Intelligence Liaison Office in Tokyo to assist in its operation. The officer is mainly responsible for analysing regional drug trends and training officers of other customs administrations.

Small and Medium Enterprises

SMEs are the driving force of economic growth. There are about 300 000 SMEs in Hong Kong, representing about 98.41 per cent of all local enterprises. They employ more than 1.36 million people. The Government is committed to helping SMEs grow and develop.

Four SME funding schemes were established in December 2001/January 2002 to help SMEs secure loans for the purchase of business installations and equipment, expand markets, provide training to employers and employees, and enhance overall competitiveness. They are, respectively, the SME Business Installations and Equipment Loan Guarantee Scheme, the SME Training Fund, the SME Export Marketing Fund, and the SME Development Fund. Over 10 000 SMEs have so far benefited from these schemes and the total government guarantee/grant involved is about $1.2 billion.

The Small and Medium Enterprises Committee started a comprehensive review on the effectiveness of the four funding schemes in August 2002. A report setting out the committee's recommendations on means to further enhance the effectiveness of these

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