ENG-2011 — Page 153

Commerce and Industry 113

In 2011, the Customs and Excise Department carried out 6 106 factory and consignment inspections and concluded 90 investigations to combat illegal transhipment of textiles. The department also conducted 433 'blitz' check operations on textile consignments at various import and export control points. It successfully prosecuted 51 offenders, resulting in the imposition of fines amounting to $0.95 million.

Trade in Strategic Commodities

The Trade and Industry Department maintains a comprehensive import and export control licensing system to monitor the movement 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 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 co-operation 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 2011, the Customs and Excise Department investigated 267 cases of unlicensed import and export of strategic commodities and prosecuted 38 offenders, resulting in fines amounting to $1.1 million. Goods valued at $0.24 million were confiscated.

Customs Co-operation

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

Hong Kong is taking steps to implement the WCO SAFE Framework of Standards to Secure and Facilitate Global Trade (FOS), which is a set of principles and standards adopted by the WCO for enhancing supply chain security and facilitating international trade. One of the core standards under the FOS is the introduction of an Authorised Economic Operator (AEO) Scheme.

The department launched its AEO Pilot Programme in June 2010. This pilot programme complies with the FOS, and its accreditation mechanism is found to be effective and fits local trading environment. The department is taking progressive steps for the formal launch of its AEO Programme.

The department maintains a good co-operative network with other customs administrations and law enforcement agencies. Regular bilateral meetings are held with the Mainland and other customs authorities for exchanging intelligence and experiences on enforcement. The department has also concluded bilateral co-operative arrangements with a number of customs administrations.