| Certificate
of Origin Circulars
24-hour hotline : 23
922 922
Ref : CERT 1/910
23
July 1999
Dear Sirs,
Certificate
of Origin Circular No.10/99
Production
Notification (PN) Arrangement Latest Information
INTRODUCTION
The purpose of this
circular is to provide up-to-date information on the PN Arrangement with
regard to PN becoming a statutory document under the Import and Export
Ordinance, Chapter 60 and introduction of EDI service for PN. Please refer
to details in the following paragraphs.
I.
Production Notification A statutory document
-
It is announced for general information that the PN will become a
statutory document with effect from 23 July 1999. Provisions relevant
to the PN could be found in Part IIA of Import and Export Ordinance,
Chapter 60, and Parts IA and IIIA of Import and Export (General) Regulations,
Chapter 60.
-
Under the law, there are expressed provisions on the lodgement of
PN, the powers of the Director-General of Trade in validating PN,
the powers of Customs and Excise Department in enforcing the PN as
well as offences and sanctions relevant to PN.
-
The list of exemptions applicable to the PN has also been extended
to those manufacturers of cut and sewn garments producing the following
products :
-
"cut and sewn garments exported in the personal baggage
accompanying a person leaving Hong Kong and are for the personal
use of that person; or
-
cut and sewn garments exported as part of the provisions required
for consumption or use by the crew or passengers of the vessel,
aircraft or vehicle on which the garments are carried,
and in each case in a quantity that is reasonable having regard to
the purpose for which they are exported."
- Traders are requested to refer to Appendix
I for a complete list of exemptions which will take effect on 23
July 1999. Certificate of Origin Circular No.14/98 dated 21 October
1998 regarding PN exemption is hereby superseded.
II.
Electronic Data Interchange (EDI) Service
- As announced in Certificate of Origin Circular No. 9/99 dated 23
July 1999, the EDI service provided by Tradelink Electronic Commerce
Limited will be extended to PN as from 23 July 1999. The Department
wishes to remind traders of certain procedural changes with the introduction
of EDI service below.
Making
Declaration(s)
- Under the EDI scenario, manufacturers and subcontractors will be
required to input declaration codes for the purpose of making declarations.
Manufacturers should input "P01" and subcontractors should
input "P02" as appropriate. In each case, the relevant declaration
will be displayed on screen. Traders are strongly advised to read the
content of the declaration. The declaration would in fact constitute
an agreement by the manufacturer or subcontractor to abide by the requirements
and conditions contained in the declaration. Traders may wish to refer
to a full list of declarations at Appendix
II for reference.
Conditions
of PN
- Same as PN submitted on paper, PN submitted via EDI are likewise
subject to Conditions of PN. For PN submitted on paper, the Conditions
of PN are set out at the back of the PN form (TRA 579). For PN submitted
via EDI, an electronic approval message will be sent to the trader in
place of a paper copy of validated PN. A full set of the prevailing
Conditions of PN applicable to PN submitted via EDI is reproduced in
Appendix III. Traders are reminded that
these Conditions of PN would apply to all PNs validated by the Trade
Department regardless of whether they are submitted on paper or via
EDI.
Issue
of Validated PN
-
The Trade Department will continue to accept PN submitted on paper,
in which case, saleable form TRA 579 should be used. For these applications,
the Trade Department will issue a paper copy of validated PN. Traders
are required to collect the validated PN at the Receipt and Issue
counters on 3/F, Trade Department Tower, 700 Nathan Road, Kowloon.
- For PNs submitted via EDI, the Department will only issue an electronic
approval message. The message will contain, inter alia, an approval
number and date of issue of validated PN. The electronic approval message
will take the place of the validated paper PN and traders are not required
to collect the validated paper PN. Please refer to paragraphs 11 to
18 below for detail arrangements regarding the use of paper PN or EDI
PN to support applications for CO and RTEL.
To
support Certificates of Origin (CO) and Restrained Textiles Export Licence
(RTEL) by Validated PN
-
There will be no change to the existing requirement to support applications
for RTEL by validated PN(s) for exports of cut and sewn garments to
the US irrespective of whether the PN is submitted on paper or via
EDI. Traders will continue to quote the approval no(s). of validated
PN on the RTEL applications. There is no need to attach a paper copy
of the validated PN(s).
- For exports of cut and sewn garments to the EU and Canada, the following
transitional arrangements will apply.
Transitional
Arrangement
-
Prior to the introduction of EDI service for CO, CO applications
submitted to Trade Department or any one of the Certificate Issuing
Organizations (Note ) are required to be supported by paper copy(s)
of validated PN.
-
With the launching of EDI service for PN on 23 July 1999, validated
PN(s) can either be in the form of a paper PN or an electronic approval
message depending on the mode of lodgement. Validated paper PN(s)
can continue to support paper CO applications until further notice.
For PNs validated via EDI, traders can obtain a printout of the validated
PN using a function provided in the Tradelink's Customer Software.
-
In order to use the PN printout to support a CO application, the
manufacturer is required to make the following declaration on the
printout. The authorized signatory of the manufacturer is also required
to sign on the PN printout and endorse it with the company chop.
"I, (name of signatory), acting for and on behalf of (Name
of the Manufacturer), hereby declare that this printout reflects
the latest image of validated Production Notification, (approval
no), issued by the Trade Department on (date of approval). I further
declare that information, if any, relating to the use of the subject
validated Production Notification in support of applications of
Certificate of Hong Kong Origin have already been shown herein.
I further declare that the information shown on the printout is
true and correct and represents the prevailing status of the validated
PN at the time of making applications of Certificate of Hong Kong
Origin. I confirm that this printout is the only copy of the subject
validated PN for the purpose of supporting Certificate of Hong Kong
Origin applications. I further undertake to return all relevant
printouts to Certificate Issuing Organizations after amendment/extension
of validity period in respect of the subject validated PN."
A
specimen of validated PN printout is at Appendix IV.
-
Depending on the balance available, the same PN printout can be used
to support more than one CO application. The certified PN printout
should clearly show the quantity deducted by the Certificate Issuing
Organizations in respect of all previous CO applications.
-
In cases where amendment/extension of validity period has been made
to a validated PN, the PN printout bearing the latest amended information
should be used to support CO application(s). In these cases, traders
are required to make the declaration, sign and endorse the PN printout
with company chop as described in paragraph 15 above. Previous PN
printout(s) which have been used to support CO applications should
be attached as supporting document.
- Traders may wish to note that the transitional arrangements will
cease immediately upon the launching of EDI service for CO which is
tentatively scheduled for late September 1999. Detail arrangements will
be announced in a separate Certificate of Origin Circular nearer the
time.
III.
Warning
- The Trade Department works closely with the Customs and Excise Department,
through checks and inspections, to ensure compliance with the provisions
of Import and Export Ordinance, Cap. 60 or its subsidiary legislations.
Breach of any of the provisions is taken seriously. In addition to prosecution
which provides for a penalty of a fine of HK$500,000 and 2 years' imprisonment,
the Trade Department may take administrative actions against the manufacturers
(including subcontractors as the case may be) concerned irrespective
of whether they have been prosecuted. Such administrative actions may
involve, but shall not necessarily be confined to, any or all of the
following : refusal to validate a PN; refusal to issue a CO; suspension
of all kinds of certification facilitates including banning a manufacturer
to contract out the principal process(es) of manufacture locally or
banning a subcontractor to undertake the principal process(es) of manufacture;
cancellation of Factory Registration of the company/registered business
concerned.
IV.
Enquiries
-
Should you require further information, on the contents of this circular
please contact the following officers of the Certification Branch
at 3/F, Trade Department Tower, 700 Nathan Road, Kowloon :
| Responsible
Officer |
Tel No. |
| Mr. K. Y.
Chan
Mrs. S.
C. Tsui
|
2398 5549
2398 5746
|
Yours faithfully,
(Stanley Wan)
for Director-General
of Trade
To: All Trade and
Industrial Associations
All Subscribers of
Commercial Information Circulars
All Subscribers of
Certification Branch Circulars
Note : The Chinese
translation of this Notice to Exporters will be sent to traders separately.
The Chinese text is for reference only. In case of discrepancies between
the English and Chinese texts, the English text shall for all purpose
be conclusive.
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The electronic
SilkNet service provided by TRADELINK enables traders to submit
Restrained Textiles Export Licence applications directly through
their office computer faster and easier. For enquiries, please call
2599 1700.
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