24-hour hotline : 23 922 922

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

Ref. : TRA CR 1329/4

25 October 2006

Dear Sirs,

Notice to Exporters : Series 2 (EU) No. 12/2006

Certificate of Origin Circular No. 15/2006

Import Licensing (Textiles) Circular No. 7/2006

Textiles Trader Registration Circular No. 8/2006

Export of Textiles to Bulgaria and Romania from 1 January 2007

(I) INTRODUCTION

Two European countries, Bulgaria and Romania, will accede to the European Union (EU)¹ on 1 January 2007. This notice inform traders that the Production Notification (PN) and Textiles Trader Registration Scheme (TTRS) requirements currently applied to sensitive markets (including the EU) will be extended to textiles exports to Bulgaria and Romania with effect from 1 January 2007. The detailed arrangements are set out in paragraphs 3 - 10 below.

2. For details of the existing arrangements for textiles licensing, PN and Certificate of Hong Kong Origin (CO), traders should read the Department's circulars on "Textiles Control Arrangements for 2005" (http://www.tid.gov.hk/english/aboutus/tradecircular/ne/series1/2004/exptr2004.html#432004) and "Extension of PN and TTRS Requirements to the EU Market" (http://www.tid.gov.hk/english/aboutus/tradecircular/all_in_one/2006/as012006.html).

(II) LICENSING ARRANGEMENT FOR TEXTILES EXPORTS TO AND IMPORTS FROM BULGARIA AND ROMANIA

3. With effect from 1 January 2007, the following textiles licensing and control arrangements will apply to Bulgaria and Romania:

4. Traders should deliver the relevant type of textiles notifications/textiles licences to the carriers according to the above specified licensing arrangement to cover their shipments which are exported or imported from 1 January 2007 onwards. Registered textiles traders under TTRS who intend to lodge EN I or EN II in advance should ensure that the textile consignments to Bulgaria and Romania are to be shipped out of Hong Kong on or after 1 January 2007.

5. Traders who wish to lodge textiles notifications to cover their shipments must first be registered under the TTRS. For registration procedures and the conditions of exemption under the TTRS, please refer to Appendix A of the Department's circular on "Textiles Control Arrangements for 2005" (http://www.tid.gov.hk/english/aboutus/tradecircular/all_in_one/2004/files/as432004a.pdf). In view of the lead time required to process registration application as well as to allow sufficient time for delivery (by registered mail) of the Certificate of Registration as a Textiles Trader, traders are advised to plan ahead and apply for registration with the Department's Central Registration Office in advance.

6. Traders should note that imports of certain textiles products into the EU, including Bulgaria and Romania, must be accompanied by a Certificate of Hong Kong Origin (CO) for customs clearance. Prevailing requirements are set out in the Department's circular on "Proof of Origin for Import of Certain Textiles and Clothing Products into the European Union (EU)" (http://www.tid.gov.hk/english/aboutus/tradecircular/ne/series2/2005/2sn032005.html). Traders are reminded to provide the corresponding CO number (if applicable) in the EN I or export licence application.

(III) PRODUCTION NOTIFICATION ARRANGEMENT

7. With effect from 1 January 2007, all cut-and-sewn garments which are intended for export to Bulgaria and Romania and with the origin-conferring assembly work commencing in Hong Kong on or after 1 January 2007 will be subject to the PN requirement. Manufacturers concerned are required to lodge a PN with the Department on the day of, or within three working days before, the commencement of the origin-conferring assembly work² . In this connection, the Department will start accepting PNs for cut-and-sewn garments for export to Bulgaria and Romania from 27 December 2006 and will validate such PNs from 2 January 2007 onwards.

8. Manufacturers and subcontractors who wish to lodge PNs are reminded that they must be registered under the Factory Registration (FR) operated by the Department. In this regard, traders engaging in the production of cut-and-sewn garments for export to Bulgaria and Romania and who have not yet been so registered should plan ahead and apply for FR in advance. For details of the registration procedures, please contact the Central Registration Office at 2398 5512 or the Customer Service Centre of the Factory Registration and CO(CEPA) Branch at 2398 5525, or refer to the Department's web portal at http://www.tid.gov.hk/english/import_export/cert/cert_aboutco_factory.html.

(IV) CERTIFICATE OF ORIGIN REQUIREMENT

Validated PN to Support CO Application

9. For cut-and-sewn garments which have commenced the origin-conferring assembly work in Hong Kong on or after 1 January 2007 for export to Bulgaria and Romania, their CO applications must be supported by validated PNs, subject to the prevailing PN exemptions and conditions. In other words, the PN numbers must be filled in on the CO applications. Failure to provide the PN numbers will result in rejection of the CO applications concerned.

Transitional Arrangements

10. As a transitional arrangement, CO applications covering cut-and-sewn garments which have commenced the origin-conferring assembly work in Hong Kong before 1 January 2007 for export to Bulgaria and Romania, for which no PN has been obtained and no PN number could be quoted on the CO applications, would be accepted until 31 January 2007 for processing. CO applicants should make sure that they submit such CO applications no later than 31 January 2007, otherwise the applications will be rejected.

(V) ENQUIRIES

11. Should you require further information on this subject, please contact the following offices of the Department:

Yours faithfully,

(Leonard Lam)
for Director-General of Trade and Industry

¹The EU currently has 25 member states. They are Austria, Belgium, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden and the United Kingdom.

²PNs lodged by traders on Sundays or public holidays will be regarded by the Department as being received on the immediate following working day. To avoid unnecessary delay in processing, traders are advised to lodge such PNs at least one working day prior to the day of commencement of assembly work if it falls on Sundays or public holidays.

Note : The Chinese text of this Notice is for reference only. In case of discrepancies between the English and Chinese texts, the English text shall for all purposes be conclusive.