24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref. : TID CL 10-1

7 March 2008

Dear Sirs,

Notice to Exporters

Series 1 (USA) No. 4/2008

Series 2 (EU) No. 3/2008

Series 3 (Countries other than USA & EU) No. 3/2008

Import Licensing (Textiles) Circular No. 2/2008

Textiles Trader Registration Circular No. 4/2008

Comprehensive Import Licence (Textiles) and Comprehensive Export Licence (Textiles)

Comprehensive Import Licence (Textiles) and Comprehensive Export Licence (Textiles) ("Comprehensive Licence") were introduced as from 1 January 2005 to facilitate respectively the import of textiles from and export of textiles to countries or places that have not maintained quantitative restrictions or other safeguard measures over textile products originated from Mainland China.

2. The purpose of this circular is to remind traders of the scope and applicability of comprehensive licence, application procedures including procedures for subsequent applications, conditions of licence, and procedures for amendment and cancellation of comprehensive licence. This circular supersedes the Notice to Exporters Series 1 (USA) No. 3/2006, Series 2 (EU) No. 6/2006, Series 3 (Countries other than the USA & EU) No. 3/2006, Import Licence (Textiles) Circular No. 3/2006, Textiles Trader Registration Circular No. 3/2006 of 28 March 2006 on the same subject; and the Notice to Exporters Series 1 (USA) No. 8/2006, Series 2 (EU) No. 13/2006, Series 3 (Countries other than the USA & EU) No. 8/2006, Import Licence (Textiles) Circular No. 8/2006, Textiles Trader Registration Circular No. 9/2006 of 25 October 2006 on Subsequent Applications of Comprehensive Import Licence (Textiles) and Comprehensive Export Licence (Textiles).

Scope and Applicability

3. Comprehensive licences currently cover:

1. textiles imports from countries or places other than the Mainland; and

2. textiles exports (including re-exports) to countries or places other than the Mainland, the US and the EU.

For ascertaining the prevailing applicability of comprehensive licence, traders are reminded to make reference to the Fourth Schedule of the Import and Export (General) Regulations (Cap. 60 sub. Leg. A) as it stands at the time of import/export of textiles to/from Hong Kong.

Salient features of Comprehensive Licence

4. Salient features of comprehensive licence are highlighted below:

1. Comprehensive licence can cover multiple shipments imported and exported by the licence holder, regardless of the product type, quantities, importing or exporting countries or places (except sensitive markets, and countries subject to trade sanctions imposed by the United Nations), and country of origin of the goods. The conditions of licence are further elaborated in paragraphs 21 to 29 below.

2. Application for comprehensive licence can be made either by an individual or company/registered business.

3. An approved comprehensive licence is valid for 12 months and is not extendable.

4. There is no limit or restriction on the number of copies of comprehensive licences to be obtained and printed by the licence holder within the validity period. However, licence holders are advised to manage the number of printed copies so that the numbers will not far exceed their shipment needs;

5. Every copy of comprehensive import licence or comprehensive export licence is identifiable by its unique reference number and is treated as a separate licence, and it can be used to cover import or export of a single textile consignment only.

6. The licence holder can log on the Department's designated online service for comprehensive licence with the pre-assigned login ID and password through any computer workstations with Internet access to obtain and print out copies of comprehensive licence.

7. No fee is currently charged for the application for comprehensive licence and for access to the Department's designated online service for comprehensive licence.

Application Procedures

5. Traders should observe the procedures set out in paragraphs 6 to 20 below for making applications for comprehensive licence from the Department.

First-time Application

6. For first-time application, traders may input relevant data onto the web form "Application Form for Comprehensive Import Licence (Textiles) and Comprehensive Export Licence (Textiles)" available in the Department's web portal and print out a hard copy after completion. Alternatively, they may obtain a paper application form from the Customer Service Center of the Origin Certification and Textiles Licensing Branch on 2/F, Trade and Industry Department Tower, 700 Nathan Road, Mongkok, Kowloon, or download the application form from the Department's web portal
   ( http://www.tid.gov.hk/english/aboutus/form/publicform/textiles/comp_licence.html). A copy of the application form is at Annex A (pdf format) . In general, application form should be completed either entirely in English or entirely in Chinese. Where the applicant is a company/registered business, the language to use shall follow that in its Business Registration Certificate.

7. It is important that traders should sign the completed application form and, where application is made by company/registered business, apply the company chop to confirm that the data therein is true and correct. If the applicant is a company/registered business, the signatory must be the proprietor, a partner or a director as the case may be or other duly authorized representative of the registered business as indicated by a letter of authorization. Where the applicant is an individual, the signatory must be the applicant himself/herself.

8. Applications for comprehensive licence (first time application or subsequent applications involving changes to last application) must be supported by the following documents (this documentary requirement is also applicable in the event of amendments to comprehensive licences):

1. a photocopy of the signatory's Hong Kong Identity Card or Passport;

2. a photocopy of valid Business Registration Certificate (for company/registered business only); and

3. a letter of authorisation (only for company/registered business with signatory other than the proprietor, a partner or a director).

9. Completed application forms (a printed copy of web form or paper application form) should be returned together with the above supporting documents to the Department in the following manner:

1. by post to Origin Certification and Textiles Licensing Branch, 2/F, Trade and Industry Department Tower, 700 Nathan Road, Mongkok, Kowloon;

2. by depositing the documents (which should be put in an envelope and properly addressed) in the drop-in box located in the Customer Service Centre of the Origin Certification and Textiles Licensing Branch on 2/F, Trade and Industry Department Tower, 700 Nathan Road, Mongkok, Kowloon; or

3. in person to the Customer Service Centre of the Origin Certification and Textiles Licensing Branch on 2/F, Trade and Industry Department Tower, 700 Nathan Road, Mongkok, Kowloon.

10. Each company/registered business or individual is allowed to hold only one comprehensive licence at any one time. Upon approval of the application, an approval letter together with a set of login ID and password for access to the Comprehensive Licence Account designated for the applicant on the Department's web portal will be issued to the applicant by recorded delivery. Traders can log on the Department's web portal (http://www.tid.gov.hk/service/ie/jsp/IE_Gen_eService_e.jsp) for access to their Comprehensive Licence Account and to obtain and print out copies of comprehensive licence to cover individual textiles shipments any time. Traders are reminded to keep in safe custody the set of login ID and password as they must not be transferred for use by others.

Subsequent Application

Reminder system

11. Traders who wish to continue using comprehensive licence to cover textiles shipments to non-sensitive markets should apply for a new comprehensive licence before the expiry of their existing comprehensive licence. To further facilitate the trade, the Department operates a system to remind traders of the impending expiry of their comprehensive licence through a combination of fax, email, and letter.

12. It is important for traders to keep a close watch over the expiry date of their comprehensive licences and to allow sufficient time to make arrangements for applying for a new comprehensive licence from the Trade and Industry Department, particularly those with comprehensive licences expiring in the first and last quarter of a calendar year. This is because according to departmental records, a large portion of comprehensive licences are expiring in the periods. Given the considerable workload involved, the Department will not be able to keep its performance pledges or to give priority treatment to those applications made close to the expiry dates of existing comprehensive licences. If the new comprehensive licence is not yet ready for issue when the existing comprehensive licence expires, traders will need to apply for consignment-specific textiles licences to cover individual shipments.

13. In order that the Department can process applications for new comprehensive licences in an efficient and timely manner, the Department may also issue special reminders through email and/or fax to the relevant traders to invite them to lodge their applications for new comprehensive licences within a specified timeline. Traders are requested to adhere to the specified timeline assigned to them as far as possible as this will greatly assist the Department in processing their applications for new comprehensive licences timely and efficiently. For this special reminder system to work smoothly, the email addresses and the fax numbers registered by traders with the Department must be maintained up-to-date. In this connection, traders can report changes to the Department in the manner described in paragraphs 30 to 32 below.

Application procedures

14. Traders who wish to apply for a new comprehensive licence should login to their registered Comprehensive Licence Account to retrieve the particulars (they will be presented in web form by the Department) which they provided in their last comprehensive licence application. Traders are required to verify the accuracy of the particulars shown therein. Where amendments are required to be made to the particulars, traders can simply input the required amendments onto the web form online. Alternatively, they can print the form out and mark the amendments above the outdated particulars (which are to be crossed out), and endorsed each amendment by stamping the amendment chop in blue (only for company/registered business) and initialling with date.

15. In the same manner as for new application, traders should sign and apply company chop (for applications by company/registered business only) onto the printed application form to confirm that the data therein is true and correct. The completed form should be returned to the Department together with the requisite supporting documents, where applicable, in the same manner as described in paragraph 9 above.

Processing and approval of applications

16. Traders are requested to take note that subsequent applications of comprehensive licence will be processed according to the order of receipt of the completed application forms in a first-come first-served manner. Where special reminders have been sent to traders, as stated in paragraph 13 above, to invite them to lodge their applications for new comprehensive licences within certain specified timeline, the Department will not undertake or entertain requests for giving priority treatment to those "belated" applications not adhering to the specified timeline assigned, in spite of the imminent expiry of existing comprehensive licences. Such applications will be processed in a first-come first-served manner applicable to other applications received on the same date.

17. Provided that the information declared in the application is accurate and there are no other complications, application for comprehensive licence will be processed and approved roughly within a timeframe of 3 clear working days from the date of receipt of application during non-peak periods. However, it may take 6 clear working days or even longer for those applications received in the peak periods falling in the first and last quarter of a year given the exceptional heavy workload mentioned in paragraph 12 above.
    

18. Traders are requested to take note that for subsequent applications, they will be notified of the approval of their applications through their registered Comprehensive Licence Account and with an email/fax sent separately by the Department to the email address/fax number provided in their application form. Hence it is very important that an accurate email address/fax number is provided in traders' application forms and that the Department will be kept immediately informed of any changes. Traders may then log on the Department's web portal
    (http://www.tid.gov.hk/service/ie/jsp/IE_Gen_eService_e.jsp) through their registered Comprehensive Licence Account with the original set of Login ID and password for printing of copies of the newly approved comprehensive licence.

19. Traders are requested to note that if the new licence is not yet issued when the existing comprehensive licence expires, traders will need to apply for consignment specific textiles licences to cover individual shipments.

Validity of renewed Comprehensive Licence

20. An approved new comprehensive licence is valid for 12 months and is not extendable. Under normal circumstances, the validity start date of the new comprehensive licence will commence shortly after the date of approval of the application.

Conditions of Licence

21. Traders are requested to note that the issue of comprehensive licence is subject to the compliance of the prescribed conditions of licence, details are set out in Annex B (pdf format) , and are highlighted below for reference. A breach of any of the conditions of licence may render the comprehensive licence liable to be cancelled, revoked, suspended, or refusal to issue a fresh comprehensive licence by the Director General of Trade and Industry in addition to other appropriate legal and/or administrative action to be taken against the importer/exporter and other parties concerned.

22. Comprehensive licence may be used to cover import of textiles from or export of textiles to countries or places other than that provided for in paragraphs (a) and (b) of the Fourth Schedule of the Import and Export (General) Regulations respectively.

23. The importer/exporter must keep and maintain as appropriate for not less than two years (from the date the goods are imported or exported as appropriate) relevant commercial and shipment documents (including but not necessarily be confined to relevant Import Licence (Textiles)/Export Licence (Textiles), Import Notification (Textiles)/Export Notifications (Textiles), Comprehensive Import Licence (Textiles)/Comprehensive Export Licence (Textiles), import/export manifest, order, packing list, invoice, bill of lading/air waybill, shipping order or shipper's instruction); and where the goods concerned are of Hong Kong origin, relevant manufacturing records pertaining to the goods, regardless of whether the comprehensive licence has been cancelled, revoked, suspended or expired.

24. Goods of Hong Kong origin must have undergone principal process(es) of manufacture in Hong Kong. These are process(es) which permanently and substantially change the shape, nature, 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 Circulars.

25. The Director-General of Trade and Industry may require an importer/exporter to furnish relevant records or information in respect of individual consignments under the comprehensive licence, including proofs showing whether the goods are of Hong Kong origin, or any other records or information he may specify relating to the manufacture, processing or production and sale of goods. Such documents must be produced for inspection upon request by officers of the Customs and Excise Department or the Trade and Industry Department.

26. Every copy of comprehensive licence is identifiable by its unique reference number and will be treated as a separate licence. It can be used to cover import or export of a single consignment¹ only. Comprehensive licence is not transferable.

27. If the applicant of the comprehensive licence is an individual, the signatory must be the applicant himself/herself. If the applicant is a company/registered business, the signatory must be the proprietor, a partner or a director or other duly authorized representative of the registered business.

28. Every comprehensive licence which has been cancelled, revoked, suspended by the Director-General of Trade and Industry and all copies in possession of the importer/exporter or any other person shall be surrendered immediately to the Department by the importer/exporter.

29. All and any of the information provided in the comprehensive licence and/or the application form may be disclosed by the Trade and Industry Department to third parties either in Hong Kong or elsewhere subject to the relevant provisions of the Import and Export (General) Regulation.

Amendment and Cancellation of Comprehensive Licence

30. Traders must inform the Trade and Industry Department immediately of any changes regarding the particulars given in their comprehensive licence, including changes in their corresponding/email address or telephone/fax numbers. This is to ensure that Department can keep holders of comprehensive licence well informed of matters concerning operation of the comprehensive licence arrangement if required and allow the Department to operate a reminder system smoothly as set out in paragraph 13 above.

31. Requests for amendments of any particulars on the comprehensive licence or cancellation of comprehensive licence must be made in writing with an "Application Form for Amendment of Comprehensive Licence (Textiles) Particulars" which is downloadable from the Department's web portal 
    (http://www.tid.gov.hk/english/aboutus/form/publicform/textiles/comp_licence.html), or obtainable from the Customer Service Centre of the Origin Certification and Textiles Licensing Branch on 2/F Trade and Industry Department Tower, 700 Nathan Road, Mongkok, Kowloon. The completed form should be returned together with relevant supporting documents, as appropriate, to the Department in the manner stated in paragraph 9 above. In particular, company/registered business applicants are requested to note the following:

1. for amendments of the address of place of business, a copy of valid Business Registration Certificate with the new address must be provided;

2. for amendment of the name of signatory, traders should complete an Application Form as if for a new application, and a letter of authorization (for signatory other than the proprietor, a partner or a director) and a photocopy of the signatory's Hong Kong Identity Card or Passport should be provided.

32. It should be emphasized that the approval of requests for amendment and cancellation will be considered on individual merits of each case and is not automatic.

Complimentary Email Notification on Important Announcements

33. The Department appreciates that traders issued with comprehensive licences may find it useful for their operational staff to be kept timely notified too of important notices concerning operations of the Comprehensive Licence arrangement. The Department has introduced a complimentary e-mail notification service under which traders may provide to the Department secondary email addresses, in addition to the one already provided on their Comprehensive Licence applications (which will be treated as the primary email address). Traders who are interested in this complimentary service may register such secondary email addresses in the designated box after they log in their Comprehensive Licence Account or make changes to the registered secondary email address. Such secondary email addresses must be kept up-to-date. Important notices concerning operations of the Comprehensive Licence arrangement will be sent to these secondary email addresses, in addition to the primary email address provided in traders' comprehensive licence applications. However, the Department will only make use of the primary email address to notify traders of information pertaining to the specific particulars of their comprehensive licences.

Compliance with consignment check, production check and factory audit check requirements

34. In order to uphold the integrity of the textiles import and export control system, the Trade and Industry Department, in conjunction with the Customs and Excise Department, will continue to conduct various forms of checks including consignment check, production check and factory audit check to verify the accuracy of material particulars or other relevant information declared on comprehensive licences, so as to verify the production capacity of a factory against its export performance and to ensure that the provisions of the textiles import and export control system are being complied with. Checks will also be conducted by Customs and Excise Department to ascertain if holders of comprehensive licence have complied with the terms and conditions of Comprehensive Licence, including but not limiting to the requirement to keep and maintain relevant commercial and shipment documents.

35. Compliance of consignment check, production check and factory audit check requirements is a condition of licence. For details of consignment check, production check and factory audit check requirements, please refer to Notice to Exporters: Series 1 (USA) No. 66/2003, Series 2 (EU) No. 51/2003, Series 3 (Countries other than USA and EU) No. 56/2003, Certificate of Origin Circular No. 22/2003 cum Certificate of Preference Circular No. 19/2003 all dated 14 November 2003.

36. Failure to comply with any of consignment check, production check or factory audit check requirements or failure to render all necessary assistance and co-operation to officers of the Customs and Excise Department in conducting the checks including the provision of sample(s) of any article for the retention of officers of the Customs and Excise Department for examination and inspection purposes may be liable to legal and/or administrative actions.

Warning

37. Any person who imports or exports any goods covered by Comprehensive Licence other than under and in accordance with the terms and conditions of Comprehensive Licence commits an offence under Sections 6C(1) and (2), or 6D(1) and (3) of the Import and Export Ordinance. Under Section 36 of the Import and Export Ordinance, it is also an offence for any person to make a false declaration or to furnish any information which is false or misleading in respect of an application for a licence, and an offence for any person to forge any licence, to alter any licence without the authority of the Director-General of Trade and Industry or to knowingly utter or make use of any licence which has been forged or altered without authority. An offender is liable on conviction to a fine of $500,000 and to imprisonment for 2 years.

38. Should you have any enquiries, please contact the Customer Service Centre of the Origin Certification and Textiles Licensing Branch at 2398 5288.

Yours faithfully,

(Miss Karen Chan)
for Director-General of Trade and Industry

¹ For imports, textiles goods imported on the same carrier from the same foreign exporter to the same Hong Kong importer may be regarded as one consignment. For exports, textiles goods exported on the same carrier to the same foreign importer from the same Hong Kong exporter may be regarded as one consignment.