ENG-2007 — Page 156

112 Commerce and Industry

Trade in Strategic Commodities

The Trade and Industry Department maintains a comprehensive import and export control licensing system to monitor the flows of strategic commodities through Hong Kong. The system ensures that while Hong Kong has access to advanced products and technologies to sustain its economic development, it is not used as a conduit for the illicit diversion of strategic commodities. The department also administers a permit system to monitor activities involving sensitive chemicals as required by the Chemical Weapons Convention. Hong Kong maintains close cooperation with its trading partners to keep abreast of developments in the international arena on strategic trade control matters, and to make sure that its control arrangement is complementary to those of its trading partners.

In 2007, the Customs and Excise Department investigated 238 cases of unlicensed import and export of strategic commodities and prosecuted 38 offenders, resulting in fines amounting to $1 million. Goods valued at $150,000 were confiscated.

Trade Facilitation and Promotion

To support the development of Hong Kong as a logistic hub and gold trading centre, the Government has amended the legislation to exempt the import and export declaration charges on imports, exports and re-exports of gold bars of a fineness of 995 or above. The exemption, which took effect from February 9, 2007, helps to enhance Hong Kong's competitiveness in the international gold market by reducing the relevant transaction costs and puts Hong Kong on a par with other major gold trading centres.

To support the 2008 Olympic and Paralympic Equestrian Events to be held in Hong Kong, the Customs and Excise Department has put in place special arrangements for trade declarations lodged by eligible participants for articles. imported or exported for the purpose of or in connection with the events. These articles will be exempted from declaration and service charges.

Customs Cooperation

The Customs and Excise Department plays an active role in the work of the World Customs Organisation (WCO) and the Sub-committee on Customs Procedures of APEC. The department also maintains close liaison with the WCO Regional Intelligence Liaison Office for Asia and the Pacific (RILO A/P) in Beijing. An officer of the department has been seconded to the liaison office to enhance the regional intelligence network in the Asia-Pacific Region.

Hong Kong is taking positive steps to implement the WCO SAFE Framework of Standards to Secure and Facilitate Global Trade, which is a set of principles and standards adopted by the WCO for enhancing supply chain security and facilitating international trade. The Customs and Excise Department is working out a roadmap for the implementation of the relevant SAFE standards in Hong Kong.

The department has concluded a number of bilateral customs cooperative arrangements with other customs administrations and maintains a good working