ENG-2018 — Page 132

5

Commerce and Industry

Trade in Strategic Commodities

The Trade and Industry Department maintains a comprehensive law-based 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 works with its trading partners to keep abreast of international developments on strategic trade controls and to ensure its control arrangements abide by international standards.

In 2018, the Customs and Excise Department successfully prosecuted 53 companies and six offenders involving the unlicensed import and export of strategic commodities, resulting in fines totalling $940,000. Goods valued at $1.45 million were confiscated.

Customs Cooperation

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 and seconds one officer each to the WCO Compliance and Facilitation Directorate in Brussels, Belgium, the WCO Regional Intelligence Liaison Office for Asia and the Pacific in Seoul, Korea, and the WCO Asia Pacific Regional Office for Capacity Building in Bangkok, Thailand.

Local companies that satisfy the department's security standards under the Hong Kong Authorised Economic Operator Programme may be accredited as authorised economic operators and enjoy customs facilitation, including reduced inspection and prioritised clearance of their goods. To provide authorised economic operators with more clearance benefits in other economies, the department has in place mutual recognition arrangements with the customs administrations of Australia, India, Japan, Korea, the Mainland, Malaysia, New Zealand, Singapore and Thailand.

The department shares intelligence and enforcement experience with other law enforcement agencies. It also maintains bilateral cooperation arrangements with a number of customs administrations.

Inward Investment Promotion

In 2018, InvestHK helped 436 overseas, Mainland and Taiwanese companies set up or expand operations in Hong Kong, involving direct investment of more than $22.9 billion and the creation of over 5,200 new jobs within the first year of their operation or expansion3,

The department promotes the city's business advantages by organising investment promotion activities in Mainland and key overseas markets, and by sponsoring important events which will bring FDI to Hong Kong, including the Innovate Finance Global Summit and Forbes 30 Under 30 Asia. It organised a joint event in June with the Guangdong and Macao governments in

3 As reported by some of the companies assisted by InvestHK. Not all the companies disclosed their data.

90