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

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

13 June 2014

Dear Sirs,

Notice to Exporters :

Series 1 (USA) No. 3/2014

Series 2 (EU) No. 3/2014

Series 3 (Countries other than USA & EU) No. 3/2014

Certificate of Origin Circular No. 5/2014

Import Licensing (Textiles) Circular No. 2/2014

Textiles Trader Registration Circular No. 3/2014

Relaxation of the Hong Kong Textiles Control Arrangements

Introduction

The Government is seeking to further liberalize the textiles control arrangements effective from 21 November 2014, subject to completion of the legislative process. The Department will announce the transitional arrangements and the exact implementation date of liberalization in due course. Meanwhile, the existing textiles control arrangements on textiles imports and exports remain in force until further notice.

Details

2.Under the Import and Export Ordinance and its subsidiary legislation, all textiles imports from and exports to the Mainland of China, and textiles exports to the USA, unless exempted, must be covered by consignment-specific textiles licences or notifications lodged by registered traders under the Textiles Trader Registration Scheme (TTRS). Besides, manufacturers producing cut-and-sewn garments in Hong Kong for export to the USA are required to lodge Production Notification (PN).

3.Having regard to the development in the global textiles trading environment, the Department is seeking to dispense with the following textiles control arrangements:

1. to cease the licensing and TTRS notification requirements for all textiles imports and exports;

2. to cease the PN requirement for all cut-and-sewn garments.

In other words, upon the above relaxation, all textiles imported to or exported from Hong Kong will not require any textiles licence. Traders registered under TTRS will no longer need to lodge notifications to cover their textiles shipments. Also, manufacturers will not be required to lodge PN for any cut-and-sewn garments manufactured in Hong Kong.

4.The Import and Export (General) Regulations (Amendment of Schedules) Order 2014 and the Import and Export (Fees) (Amendment) (No.2) Regulation 2014 effecting the above relaxation were gazetted today. Subject to completion of the legislative process, the relaxation will take effect on 21 November 2014. Meanwhile, traders should continue to abide by the existing control arrangements on textiles imports and exports as detailed in paragraph 2 above.

5.Notwithstanding the cessation of textiles import and export licensing requirement, the Department will continue to provide the voluntary registration service under TTRS. Traders are welcome and encouraged to keep their TTRS registration in case Hong Kong might need to reinstate textiles control should circumstances require some time in the future. By then, registered traders can instantaneously make use of the textiles notifications under the Scheme and avoid the hassles to apply for individual textiles licence each and every time. The criteria for registration under TTRS will remain unchanged¹ while the registration procedures will be streamlined. The annual registration fee for TTRS will be adjusted to HK$61 upon relaxation (i.e. from 21 November 2014). New and renewed TTRS registrations with validity period beginning on or after the date of relaxation will be subject to the revised fee level. The Department will announce further details of the streamlined registration arrangements in due course.

Important Notice

6.Traders are advised to take into account the above proposed relaxation of the textiles control system in planning for their application or renewal of registration under TTRS. Alternatively, traders may apply for consignment-specific textiles licences to cover their textiles shipments as necessary in the run up to liberalization if they do not hold a registration under TTRS. In this connection, please note that any request for a full or partial refund of TTRS annual registration fee paid will not be accepted. Moreover, in view that all textiles licence/ notification forms will no longer be required after the relaxation takes effect, traders are advised to avoid over-stocking unused textiles licence/ notification forms which will not be accepted for refund or exchange.

Warning

7.The Government takes a serious view on any abuses of the textiles control arrangements. The Department works closely with the Customs and Excise Department to uphold the integrity of the textiles control arrangements. The two departments will carry out documentation checks on licences/notifications and manifests, physical checks on textiles consignments, and visits to registered premises of textiles traders from time to time to ensure that the conditions of issue of licences and exemption under the TTRS are fully complied with, and information provided and declarations made on licences/notifications are true and correct.

8. Traders are reminded that the prevailing textiles control arrangements remain in force until further notice. Traders who contravene or fail to comply with any of the conditions of issue of licences or conditions of exemption under TTRS commit an offence and are liable on conviction to a maximum fine of $500,000 and imprisonment for 2 years, irrespective of any upcoming adjustments to the textiles licensing arrangements that are being planned. The Director-General of Trade and Industry may also take administrative actions (e.g. revocation and suspension of any exemption and/or TTRS registration granted, refusal to renew any exemption and/or registration, etc.) against the traders concerned independent and irrespective of any prosecution actions.

Enquiries

9. For enquiries on this circular, please contact the following units of the Textiles Licensing Branch:

Yours faithfully,

(Miss Kathy CHAN)

for Director-General of Trade and Industry

^1.At present, companies with valid business registration in Hong Kong which are carrying on business of importing textiles from the Mainland of China or exporting textiles to the Mainland of China or the USA are eligible to apply for registration under the TTRS.