ENG-2015 — Page 123

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Commerce and Industry

Under CEPA, the Mainland applies zero tariff to all imported goods of Hong Kong origin that meet agreed CEPA rules of origin. As at the end of 2015, rules of origin for some 1,810 products had been agreed.

To help Hong Kong enterprises capitalise on opportunities arising from the National 12th Five- Year Plan, the government introduced a $1 billion dedicated fund in 2012 to assist them in furthering their development on the Mainland through developing brands, upgrading and restructuring operations, and promoting domestic sales.

Bilateral Investment Promotion and Protection Agreements

To assure overseas investors that their investments in Hong Kong are adequately protected, and to enable Hong Kong investors to enjoy similar protection overseas, Hong Kong has signed 17 Investment Promotion and Protection Agreements (IPPAs) with other economies, and has concluded IPPA negotiations with Canada, Bahrain and Myanmar. In 2015, Hong Kong continued IPPA negotiations with the Russian Federation, and launched IPPA negotiations with the United Arab Emirates and investment agreement negotiations under the FTA with Chile. Hong Kong and Mexico announced a joint intent to launch IPPA negotiations in 2016.

Trade in Goods

In 2015, the Customs and Excise Department carried out 33,059 factory and consignment inspections and concluded 133 investigations to ensure compliance with factory registration conditions, and import and export licensing requirements. The department also conducted 36 'blitz' check operations on consignments of goods at various import and export control points. It successfully prosecuted 47 companies and 13 offenders, leading to fines totalling $660,000 and imprisonment sentences of nine months.

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 the territory 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 co-operates closely with its trading partners to keep abreast of international developments on strategic trade controls, and to make sure its control arrangements complement those of its trading

partners.

In 2015, the Customs and Excise Department investigated 170 cases of unlicensed import and export of strategic commodities and prosecuted 66 companies, resulting in fines totalling $3.6 million. Goods valued at $960,000 were confiscated.

Customs Co-operation

The Customs and Excise Department plays an active role in the work of the World Customs Organisation (WCO) and Apec's Sub-Committee on Customs Procedures. The department maintains close liaison with the WCO, and seconds one officer each to the WCO Compliance

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