ENG-2020 — Page 123

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Commerce and Industry

opportunities for Hong Kong businesses and promoting free trade. The territory has signed six FTAs with 18 foreign economies. In January, the FTA with Australia came into effect, while the FTA with ASEAN was in force for most signatories by 31 December.

Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)

The Mainland's economic and trade growth boosts Hong Kong's trade in goods and services. Both sides work constantly to broaden the coverage of CEPA, signed in 2003, and to deepen liberalisation in trade and investment. CEPA has become a comprehensive FTA, covering trade in goods, trade in services, investment and economic and technical cooperation. The Agreement Concerning Amendment to the Agreement on Trade in Services under CEPA was implemented in June, making it easier for Hong Kong service suppliers, including professionals, to develop business in the Mainland.

Investment Promotion and Protection Agreements

Hong Kong has signed 22 investment promotion and protection agreements with 31 foreign economies to assure overseas investors that their investments in Hong Kong are protected and to enable Hong Kong investors to enjoy similar protection overseas. In 2020, Hong Kong signed an agreement with Mexico, and continued negotiations with Russia and Turkey. The agreements signed with Australia and the UAE came into force in January and March respectively.

Trade in Goods

In 2020, the Customs and Excise Department carried out 24,150 factory and consignment inspections and concluded 282 investigations to ensure compliance with factory registration conditions and import and export licensing requirements. The department also conducted 20 'blitz' operations on consignments of goods at various import and export control points. It prosecuted 27 companies and 12 offenders successfully, leading to fines totalling $300,000.

Trade in Strategic Commodities

The Trade and Industry Department maintains a comprehensive import and export licensing system for strategic commodities. It also administers a permit system for certain chemicals in order to implement the requirements under 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 are in line with international standards.

In 2020, the Customs and Excise Department successfully prosecuted 20 companies and one. offender involving the unlicensed import and export of strategic commodities, resulting in fines totalling $290,000. Goods valued at $0.74 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, the WCO Regional Intelligence Liaison Office for Asia and the Pacific in Seoul, and the WCO Asia Pacific Regional Office for Capacity Building in Bangkok.

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