Certificate of Origin Circulars

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Dear Sirs,

Certificate of Origin Circular No. 16/2004

Changes in respect of CO requirement as from 2005 onwards

INTRODUCTION

Further to Certificate of Origin Circular No. 14/2004 dated 30 November 2004 on "Textiles Control Arrangements for 2005", this Circular informs traders on the changes in CO requirement for textiles exports in respect of the USA, the EU and the Canada markets with effect from 1 January 2005.

CERTIFICATE OF ORIGIN REQUIREMENT

2. Generally, to substantiate a proof of Hong Kong origin for any exports to overseas markets, it will be in traders' interest to take out a Certificate of Hong Kong Origin (CO) if the goods concerned are indeed products of Hong Kong. Although overseas markets may not generally require a CO to accompany every import consignment, it is advisable that traders can readily produce a CO to the importing end authorities (if so required) to evidence the origin of the goods.

3. In applying for a CO for textiles exports, traders are advised to note the changes in CO requirement with effect from 1 January 2005 set out in the ensuing paragraphs.

DETAILS OF CHANGES

4. The CO system from 2005 onwards will remain largely the same except for the following changes:

1. CO applications covering cut-and-sewn garments to the United States (US) market must be supported by valid Production Notifications (PN). The Electronic Data Interchange - CO system will perform validation checking on the CO applications to ensure that the PN details are consistent with the CO application details. The CO applications may be deferred if any inconsistencies are discovered;

2. In respect of CO applications covering knitted cut-and-sewn garments to the USA market, applicants are required to declare in the field "Principal Process(es) Done by Manufacturer and Outworker in HK" of the Electronic Data Interchange - CO(EDI-CO) system that the processes done in Hong Kong are "sewing/linking/stitching of parts into garment";

3. CO applications covering cut-and-sewn garments to the EU and the Canada markets will no longer be required to be supported by PN;

4. With the termination of the textiles administrative arrangements between Hong Kong and the European Union (EU) from 1 January 2005, the Department and the five GACOs will cease to apply the current stamp with the wordings "I further certify that the goods described above meet the origin rules of the European Union" on the CO certificate covering the textiles exports to the EU market; in this respect, traders are also reminded to read Commercial Information Circular No. 316/2004 cum Notice to Exporters : Series 2 (EU) No. 37/2004 dated 13 December 2004 on "Proof of Origin for Import of Certain Textiles and Clothing into the EU"; and

5. For security enhancement, the new CO form to be introduced in 2005 will bear the watermark of CO issuing organisations¹. Sample of the CO forms with watermark to be used from 2005 onwards is attached at the Appendix (pdf format).

WARNING

5. 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

6. Should you require further information on the content of this circular, please contact the Customer Service Centre of the Certification Branch at 2398 5525.
   

Yours faithfully,


(Paul KWOK)

for Director-General of Trade and Industry

¹ Trade and Industry Department and the five Government Approved Certification Organizations (GACOs), namely Hong Kong General Chamber of Commerce, Federation of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong, the Indian Chamber of Commerce, Hong Kong and the Chinese General Chamber of Commerce, are the issuing organisations of COs.