24-hour hotline : 23 922 922

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

Ref : TID CL 10-3/2 (C)

24 April 2009

Dear Sirs,

Notice to Exporters : 

Series 1 (USA) No. 2/2009

Series 2 (EU) No. 3/2009

Series 3 (Countries other than USA and EU) No. 1/2009

Certificate of Origin Circular No. 1/2009

Import Licensing (Textiles) Circular No. 1/2009

Textiles Trader Registration Circular No. 1/2009

Textiles Control Arrangements for the European Union (EU) Market

The Department issued a circular on 24 December 2008 to inform the trade that the Department planned to streamline the textiles control arrangements for exports to the European Union (EU) ¹ in the second quarter of 2009. This notice informs traders that the Import and Export (General) Regulations (Chapter 60A) (Amendment of Fourth and Fifth Schedules) Order 2009 has been gazetted today (24 April 2009). Subject to passage by the Legislative Council, the Department will dispense with the Production Notification (PN) and Textiles Trader Registration Scheme (TTRS) requirements for textiles exports to the EU with effect from 29 June 2009 (Monday). Traders are requested to note that the Department will issue another circular nearer the time to confirm the implementation date of the revised textiles control arrangements for the EU market.

LICENSING ARRANGEMENT

2. Provided that the re-classification of the EU as a non-sensitive market is implemented as planned with effect from 29 June 2009, traders can cover their textiles exports to the EU with either Comprehensive Export Licence (Textiles) or consignment-specific Export Licence (Textiles) Form 4 for shipments effected on or after 29 June 2009. At the same time, textiles notification (in paper or electronic mode) will no longer be accepted for covering shipments to the EU market and such exports (including re-exports) with textiles notifications will be regarded as export without a valid licence and may constitute an offence under the Import and Export Ordinance. The parties concerned are liable on conviction to a maximum penalty of a fine of HK$500,000 and imprisonment for 2 years. 
   
   
3. Traders are reminded that request for cancellation or amendment to any particulars of a notification after its lodgement should be made within 14 working days after the day on which the textiles are exported. This requirement remains applicable to textiles notifications lodged to cover shipments to the EU before 29 June 2009. It should be emphasized that the approval of requests for cancellation or amendment will be considered on individual merits of each case and is not automatic. Acceptance by the Department of a request for cancellation or amendment to a textiles notification is without prejudice to any legal and/or administrative action which the Director-General of Trade and Industry may take if it is discovered that the parties concerned are in breach of any of the provisions of the Import and Export Ordinance or the textiles control arrangements.
   
   
4. Traders should note that the licensing requirements for textiles imports from the EU remain unchanged. The imports concerned should be covered by either Comprehensive Import Licence (Textiles) or consignment-specific Import Licence (Textiles) Form 7.
   

PRODUCTION NOTIFICATION ARRANGEMENT

5. The PN requirement in respect of cut-and-sewn garments for export to the EU will be lifted upon the reclassification of the EU as a non-sensitive market with effect from 29 June 2009. Manufacturers producing cut-and-sewn garments for export to the EU are still required to lodge PN if the major assembly work commences before 29 June 2009. The Department will continue to accept and process PNs (including fresh applications, re-submissions, as well as requests for amendment, extension and cancellation) destined for the EU which are lodged via Tradelink before 11:00pm of 27 June 2009 (Saturday). According to existing requirement, manufacturers who plan to commence production of cut-and-sewn garments for export to the EU on 28 June 2009 (Sunday) should lodge PN before 11:00pm of 27 June 2009 but not earlier than three working days before 28 June 2009. 
   
   
6. The Department will not accept any fresh PN applications as well as requests for extension of PN validity for the EU market on or after 11:00pm of 27 June 2009. Manufacturers who foresee there is a need to extend the validity of a PN (e.g. to support re-submission of applications for Certificate of Hong Kong origin on or after 29 June 2009 as detailed in para. 9 below) should submit the request for extension before 11:00pm of 27 June 2009. PN re-submissions, requests for amendment and cancellation for the EU market submitted on or after 11:00pm of 27 June 2009 for PNs which are initially lodged/validated before that time will be entertained on individual merits of each case. 
   
   
7. In connection with the lifting of the PN requirement for the EU market with effect from 29 June 2009, the Department will cease to provide classification service in respect of textiles exports to the EU which mainly serves to facilitate lodgement of PN. 
   

CERTIFICATE OF ORIGIN REQUIREMENT

8. Traders should note that import of certain textiles products into the EU are required to be accompanied by a Certificate of Hong Kong origin (CO) for customs clearance. Prevailing requirements of the EU authorities are set out in the Department's Commercial Information Circular No. 316/2004 dated 13 December 2004 (http://www.tid.gov.hk/english/aboutus/tradecircular/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) on "Proof of Origin for Import of Certain Textiles and Clothing Products into the European Union (EU)".
   
   
9. With the lifting of the PN requirement for textiles exports to the EU with effect from 29 June 2009, CO applications covering cut-and-sewn garments destined for the EU submitted on or after 11:00pm of 28 June 2009 are no longer required to be supported by validated PNs. However, re-submission of CO applications covering cut-and-sewn garments destined for the EU which have been deferred before 29 June 2009 as well as amendment requests for COs issued before 29 June 2009 are still required to be supported by their original PNs validated before 29 June 2009. 
   

IMPORTANT NOTES

10. In view that textiles notifications under TTRS may no longer be usable for textiles exports to the EU with effect from 29 June 2009, traders registered under the TTRS, particularly those who are solely exporting to the EU, should note that paid TTRS annual registration fee will not be refunded. In addition, they are advised to plan carefully their purchase and use of Export Notification I (TID 550) and Export Notification II (TID 551) forms as unused notification forms will also not be refunded. It would be traders' own commercial decisions if they decide to apply for consignment-specific Export Licence (Textiles) Form 4 to cover textiles exports to the EU in the run up period between the expiry of their TTR and 28 June 2009.
    
    
11. According to the Department's record, around 4,000 TTRS registrants are currently not holders of Comprehensive Licence (CL). As Comprehensive Export Licence (Textiles) may be usable for textiles exports to the EU with effective from 29 June 2009, this group of traders are advised to consider applying for CL from the Department without delay. If a significant number of CL applications are received in June 2009, the Department may not be able to process all the CL applications within a short period of time. Should this eventuate, traders may stand the chance of being required to apply for consignment-specific Export Licence (Textiles) Form 4 to cover textiles exports to the EU before their application for CL is approved or in effect. For the application procedures and conditions of Comprehensive Licence, please refer to the Department's circular on "Comprehensive Import Licence (Textiles) and Comprehensive Export Licence (Textiles)" dated 7 March 2008 (http://www.tid.gov.hk/english/aboutus/tradecircular/all_in_one/2008/as042008.html).
    

ENQUIRIES

12. For enquiries on this circular, please contact the following units of the Department: 

Yours faithfully,

(CHAN Tze Pang)

for Director-General of Trade and Industry

^1. The EU includes Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.