Textiles Trader Registration Circulars

24-hour hotline : 23 922 922

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

Ref  :   GL 60/3/1

12 May 2003

Dear Sirs,

Textiles Trader Registration Circular No. 12/2003

Introduction of Electronic Service for Textiles Notifications

INTRODUCTION

This circular informs traders that electronic service for textiles notifications will be available for Pilot Run as from 30 May 2003.

DETAILS

Pilot Run

2. As foreshadowed in Textiles Trader Registration Circulars No. 5/02 of 26 October 2002 and No. 6/2003 of 11 April 2003, the Trade and Industry Department (the Department) has been actively preparing for the introduction of electronic service for textiles notifications for textiles traders registered under the Textiles Trader Registration Scheme (TTRS). Development work of the electronic service by Tradelink Electronic Commerce Limited (Tradelink), the service provider of the electronic service, is now almost completed. The new electronic service will be available to a limited number of users as from 30 May 2003 at the initial launch of the Pilot Run and will be available to all registered traders in June 2003. The phased increase in number of users will ensure that quality service will be provided to all traders.

Legislative Amendments

3. To provide for electronic submission of textiles notifications, the provisions concerning textiles notifications in the Import and Export (General) Regulations have been amended and gazetted on 4 April 2003 with slight amendments on 9 May 2003 and will commence on 30 May 2003. Traders may wish to refer to www.tid.gov.hk/english/import_export/textiles/ts_licence_edi.html for details of the legal provisions.

The Electronic Service for Textiles Notifications

Scope of Service

4. The electronic service will cover all types of textiles notifications, namely :

1. Import Notification - to cover all imports of textiles.
   
   
2. Export Notification I - to cover exports of textiles of Hong Kong origin to countries or places which do not maintain quantitative restrictions on such exports from Hong Kong (i.e. other than the European Union, the USA and Canada).
   
   
3. Export Notification II - to cover exports of textiles which are not of Hong Kong origin to any country or place.
   
   
4. Export Notification III - to cover exports to the USA of properly marked textiles samples of Hong Kong origin not exceeding US$800 in free-on-board (f.o.b.) value.
   
   
5. Export Notification IV - to cover exports to the USA of mutilated or stamped textiles samples of Hong Kong origin having no commercial value.
   
   
6. Transhipment Notification - to cover transhipments of textiles (both in-bound and out-bound)

The service will cover all submissions for all the above types of textiles notifications, including fresh submission, re-submission, request for amendment and request for cancellation of the notifications.

Features of the Electronic Service and Benefits to Traders and Carriers

5. Under the current paper system, registered textiles traders deliver their duly completed textiles notifications to the carriers who in turn deliver the notifications together with the relevant copy or extract of manifest to the Director-General of Trade and Industry (the Director). Under the electronic system, registered textiles traders will deliver their notifications to the Director and the carriers direct. The carriers will deliver the relevant manifest quoting the Notification Reference Numbers to the Director. There is essentially no difference in the information required to be provided by registered textiles traders in a paper textiles notification or one delivered via the electronic service. Details of the electronic system are at the flowcharts at Appendix I.
   
   
6. In addition to the proven benefits of electronic service, the electronic service for textiles notifications has the following features and registered textiles traders and carriers will have the following benefits :

(i) Trader's Direct Delivery of the Notifications to the Director

7. A registered textiles trader will deliver his textiles notification through Tradelink to the Director before import or export of the textiles. On receiving the textiles notification, subject to successful computer validation at Tradelink, the Director will assign a unique Notification Reference Number (UTR) to the textiles notification and the trader can then inform his carrier of the details of the textiles notification. A trader will be informed of any errors or omissions in the textiles notification normally within 15 minutes of sending it to Tradelink. The computer validation will also facilitate the carrier in receiving the textiles notification from the trader, such as saving his effort to check the basic completeness and consistency of the information in the notification received. If computer validation is successful, the electronic service can enable almost instantaneous transmission of the textiles notification from the trader to the Director and the carrier.

(ii) Improved Efficiency

8. Instead of typing the full text of declarations on a textiles notification, a registered textiles trader can select the relevant declaration codes while completing the notification using the electronic service. In each case, full details of the declarations will be displayed on the screen when the registered textiles trader makes the respective declarations. The full list of declarations is at Appendix II for traders' easy reference. The declarations are essentially no different from those used in the paper system. The declarations made will in effect constitute an agreement by the trader to abide by the requirements, conditions and undertakings contained in the declarations. Traders are advised to note the content of the declarations.

(iii) Simplified Arrangements and Paperless Scenario

9. With electronic submission and facilitated by computer validation, it is no longer necessary for registered textiles traders and carriers to deliver hardcopy of the textiles notifications and supporting documents to the Director. Details are as follows :

1. traders may deliver the textiles notifications to the carriers via the electronic service.
   
   
2. carriers will only need to quote the UTR of the textiles notifications delivered via the electronic service in their paper or electronic manifest delivered to the Director. It is no longer necessary for them to deliver the hardcopy of the notifications to the Director.
   
   
3. for Export Notification II delivered via the electronic service, it is no longer necessary for registered textiles traders to deliver hardcopy of the Import Licence or Import Notification as supporting document.
   
   
4. for Transhipment Notification delivered via the electronic service, it is no longer necessary for the carriers to deliver a copy of the through bill of lading or through air waybill when they deliver manifest to the Director.

Transitional Arrangements

10. For improved efficiency and effectiveness and for the benefits of traders, it is our intention to fully migrate to the use of electronic service in due course. To ensure a smooth migration, there will be a transitional period during which registered textiles traders who are not yet ready to deliver their textiles notifications by the electronic service, may continue to deliver their textiles notifications in paper form. The conditions of exemption and procedures for completion and submission of textiles notifications set out in Textiles Trader Registration Circulars No. 6/98 and No. 7/98 both dated 21 August 1998 and any other relevant circulars which have been or may be issued by the Director continue to be valid for all traders who rely on the licensing exemption granted to them under TTRS to import and export textiles. The end date of the transitional period will be determined having regard to the take-up rate of users of the electronic service and the smooth operation of the computer systems supporting the electronic service. Traders will be informed of the exact timing of full migration to the electronic service in advance for their due preparation.

Fees for the Electronic Service

11. As it is in the current paper system, no processing fee is charged by the Department for textiles notifications. The message fee to be collected by Tradelink per textiles notification (including all subsequent submissions) for the transmission and handling of electronic messages between the registered textiles trader, the carrier and the Department is HK$0.50. It is no more than the price for the purchase of a textiles notification form in the paper system.

Important Note

12. With the many benefits to be brought about by the electronic service for textiles notifications, it is to the advantage of registered textiles traders to make use of the service early. In this connection, traders who have not yet returned the authorization form to enable the transfer of necessary information of their registration under the TTRS to Tradelink for validation purpose are urged to complete the appropriate authorization form annexed to the Textiles Trader Registration Circular No. 6/2003 of 11 April 2003 and return it to us early. Traders who wish to make use of the electronic service will not be able to do so until they have returned to us the duly completed authorization form.

WARNING

13. The Department takes a serious view on textiles traders breaching any of the conditions of exemption under the TTRS or committing an offence under the Import and Export Ordinance, Cap 60 (the Ordinance). A registered textiles trader who contravenes or fails to comply with any of the conditions of exemption commits an offence and is liable on conviction to a fine of HK$500,000 and to imprisonment for 2 years. Textiles notifications which are not completed in accordance with the specifications made by the Director are considered invalid and cannot be used to cover imports, exports and transhipments of textiles. Importing or exporting textiles products not under and in accordance with a valid textiles notification or licence as stipulated under the Ordinance constitutes an offence under the Ordinance and the trader concerned is liable on conviction to a fine of HK$500,000 and to imprisonment for 2 years. A registered textiles trader who furnishes false information in a notification commits an offence and is liable on conviction to a fine of HK$500,000 and to imprisonment for 2 years. Where the notification is delivered via the electronic service, a registered textiles trader who fails to deliver the notification information or reference number to the carrier commits an offence and is liable on conviction to a fine at level 2 (HK$5,000 at present). A carrier who releases possession of textiles imported or who exports the textiles before he has received a textiles notification or licence commits an offence and is liable on conviction to a fine of HK$500,000 and to imprisonment for 1 year. A carrier who fails to deliver a copy or extract of manifest to the Director of the textiles in accordance with the required timeframe and subject to the requirements commits an offence and is liable on conviction to a fine at level 2 (HK$5,000 at present).
    
    
14. Furthermore, the Director may take administrative actions against a registered textiles trader independent and irrespective of any prosecution action which may be instituted against him. Such administrative actions may involve but shall not necessarily be confined to the revocation and suspension of any exemption and/or registration granted without refund of the registration fee, and the refusal to renew any exemption and/or registration granted.

ENQUIRIES

15. For any enquiries in relation to the content of this circular, please contact :

Traders who wish to make use of the electronic service for textiles notifications or have any enquiries in relation to the electronic service provided by Tradelink may wish to contact Tradelink direct at 2599 1700.

Yours faithfully,

(Miss Judy Ting)
for Director-General of Trade and Industry

To : All traders registered under the Textiles Trader Registration Scheme
Shipping companies, airline companies, transportation companies and freight forwarders known to the Trade and Industry Department
Trade and Industrial Associations