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24-hour hotline : 23 922 922
e-mail address : enquiry@tid.gov.hk
Ref : TRA CR 1308
12 February 2008
Dear Sirs,
Certificate of Origin Circular No. 2/2008
Notice to Exporters
Series 1 (USA) No. 1/2008
Series 2 (EU) No. 1/2008
Series 3 (Countries other than USA and EU) No. 1/2008
Certificate of Hong Kong Origin (CO) for Textiles and Clothing Exports
Introduction
This circular serves to remind traders on the use of a Certificate of Hong Kong Origin(CO) as proof of Hong Kong origin for textiles and clothing for exports. This circular supersedes Certificate of Origin Circular No. 7/2005 of 31 August 2005 on the same subject.
Hong Kong's Origin Certification System
- The origin certification system in Hong Kong is implemented to facilitate Hong Kong's exports to the world market. A CO is issued for goods that have undergone the principal process of manufacture in Hong Kong, in accordance with the origin requirements laid down by the Director-General of Trade and Industry. COs are issued by the Trade and Industry Department of the Hong Kong SAR Government as well as five other Government Approved Certification Organisations1 . All such COs enjoy equal status protected by the laws of Hong Kong. Since Hong Kong's well-established origin certification system is widely accepted by the international trading community, a CO serves as a convenient proof of Hong Kong origin which facilitates customs clearance of Hong Kong products at the importing ends.
Certificate of Origin as a Proof of Hong Kong Origin
- Following the global elimination of textiles quotas as laid down in the World Trade Organisation (WTO) Agreement on Textiles and Clothing, textiles and clothing products of Hong Kong origin and exported to the rest of the world are no longer subject to quantitative restrictions since 1 January 2005. However, due to the restrictive or surveillance trade measures imposed by major markets on certain textiles exports from Mainland China, textiles trade in the region encountered uncertainties and closer scrutiny by certain importing markets, especially for products in the same categories as those subject to the restrictive or surveillance measures imposed on Mainland's products.
- In this regard, overseas customs authorities at times require additional proof of origin and other documentation to verify the origin claim of the products concerned and the accuracy of other information declared. Such information may include the identity of the manufacturer, the place of manufacture of the goods and the place of embarkation where the goods are loaded for export to the importing end. Traders exporting textiles and clothing products to the US may wish to note that the US Customs and Border Protection (CBP) has issued a memorandum entitled "Additional Document Requirements for Textiles and Textile Products", stating that additional documents such as a certificate of origin may be required for the US authorities to ascertain if goods are being legally entered into the US. The lack of documentation for verification of origin claims may result in goods being excluded from entry into the US. For exports of certain textiles and clothing to the European Union (EU), the EU also require CO or origin declaration as proof of origin for such imports. Traders may refer to the following Commercial Information Circulars No. 46/2007 dated 17 January 2007 (http://www.tid.gov.hk/english/aboutus/tradecircular/all_in_one/2007/as012007.html), No. 316/2004 dated 13 December 2004 (http://www.tid.gov.hk/english/aboutus/trajdecircular/ne/series2/2004/2sn372004.html) and No. 52/2005 dated 16 February 2005 (http://www.tid.gov.hk/english/aboutus/tradecircular/ne/series2/2005/2sn032005.html).
- Traders are strongly encouraged to take out COs issued by the Trade and Industry Department and Government Approved Certification Organisations before export of Hong Kong origin products, and to keep proper documentation to substantiate the origin claim so as to avoid delay in customs clearance, particularly in the event of any customs inquiry or hold-up shipments at the importing ends. According to past experience, traders who can readily produce a CO and other supporting documents for the goods concerned in response to enquiries from authorities at the importing end or during visits by overseas officials facilitated easier understanding by these overseas officials with regard to the manufacture of the goods which in turn helped expedite the process of customs clearance.
- Traders are reminded that CO applications should be made before export of the products to overseas markets and that goods claiming Hong Kong origin under a CO must have undergone the principal processes of manufacture in Hong Kong. Principal processes of manufacture are processes which permanently and substantially change the nature, shape, form or utility of the basic materials used in manufacture as laid down by the Director General of Trade and Industry in relevant Certificate of Origin Circular(s) from time to time. The latest circular is at http://www.tid.gov.hk/english/aboutus/tradecircular/coc/2007/coc032007.html.
- Notwithstanding the above, traders are reminded to find out from their overseas buyers and the government authorities at the importing ends any other specific requirements they need to observe before exportation of their goods from Hong Kong, including but not limited to origin classification and origin labelling requirements, etc.
Factory Registration (FR) Requirement
- Manufacturers and subcontractors who wish to apply for a CO are reminded that they must first be registered under the Factory Registration operated by the Department. In this regard, traders should plan ahead and apply for FR in advance. For details of the registration procedures, please contact the Central Registration Office at 2398 5512 or the Factory Registration and CO(CEPA) Branch at 2398 5531, or refer to the Department's web portal at http://www.tid.gov.hk/english/import_export/cert/cert_aboutco_factory.html.
Compliance with Consignment Check Requirements
- In order to uphold the integrity of the origin certification system, the Trade and Industry Department, in conjunction with Customs and Excise Department, may conduct consignment checks to verify the accuracy of material particulars declared on CO applications. Traders are required to comply with the consignment check requirements as stipulated in Certificate of Origin Circular No. 5/2005 dated 13 July 2005. In particular, CO applicants should note that if an application is selected for pre-issue check, it will normally take a longer time to process. Traders should bear this in mind in drawing up their shipment schedules.
Warning
- The Trade and Industry Department works closely with the Customs and Excise Department, through checks and inspections, to ensure compliance with the provisions of the origin certification system. Breach of any of the provisions of the origin certification system or failure to comply with other requirements specified by the Director General of Trade and Industry, including those requirements promulgated by the Trade and Industry Department through notices and circulars from time to time, may result in prosecution under the Import and Export Ordinance or the Protection of Non Government Certificates of Origin Ordinance as appropriate, which provides for a penalty of a fine of HK$500,000 and 2 years' imprisonment. In addition, the Trade and Industry Department may take administrative actions against the exporters and manufacturers (including subcontractors as the case may be) concerned, irrespective of whether they have been prosecuted.
Enquiries
- Should you require further information on the content of this circular, please contact the Certificate of Origin Section of the Trade and Industry Department at telephone number 2398 5545.
Yours faithfully,
(Thomas LI)
for Director-General of Trade and Industry
1. These Government Approved Certification Organisations are namely: The Hong Kong General Chamber of Commerce, Federation of Hong Kong Industries, The Indian Chamber of Commerce, Hong Kong, The Chinese Manufacturers' Association of Hong Kong, and The Chinese General Chamber of Commerce.
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Electronic services for Production Notification and Certificate of Origin enable traders to make the relevant applications directly through their office computer faster and easier. Electronic service has now been extended to the lodgement of Cargo Manifests and Textiles Notifications. For details and enquiries,
please call the following service providers:
Global e-Trading Services Limited (Tel. : 8109 1820)
Tradelink Electronic Commerce Limited (Tel. : 2599 1700) |
Note : The Chinese text of this Notice/Circular is for reference only. In case of discrepancies between the Chinese and the English texts, the English text shall for all purposes be conclsive |
