Textiles Trader Registration Circular

24-hour hotline : 23 922 922

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

Ref. : TID CL 4-60/1

16 May 2007

Dear Sirs,

Textiles Trader Registration Circular No. 4/2007

Textiles Trader Registration Scheme : New Fee Structure

Introduction

We informed all traders vide Textiles Trader Registration Circular No. 2/2007 dated 16 February 2007 of the gazettal of the Import and Export (Fees) (Amendment) Regulation 2007 (Amendment Regulation) regarding the introduction of a new fee structure for the Textiles Trader Registration Scheme (TTRS). A special reminder note was issued on 28 March 2007 via Trade and Industry Department (TID)'s web portal to inform the trade of the passing of the Amendment Regulation by the Legislative Council.

2. This circular serves to announce that the Director-General of Trade and Industry has decided to implement the new TTRS fee structure with effect from 25 June 2007, subject to completion of the legislative process (details are contained in paragraphs 6 to 9 below).

3. The following operational arrangements will be put in place upon implementation of the new fee structure:

1. registration procedures (paragraphs 10 to 15);

2. introduction of new textiles notification forms (paragraphs 16 to 19); and

3. procedures for purchasing the new textiles notification forms from TID (paragraphs 20 to 21)

4. Furthermore, the following new requirements for filling in the textiles notifications will take effect from 25 June 2007:

1. provision of product HS code on all textiles notifications (paragraphs 22 to 25);

2. streamlined requirement for completion of electronic transhipment notifications (paragraphs 29 to 32);

5. Textiles traders are also invited to take note of:

1. upgrade of Tradelink's End-User Software (EUS) (paragraph 33);

2. procedures for seeking registration with Tradelink Electronic Commerce Ltd (Tradelink) for electronic service (paragraphs 34 to 35); and

3. legal or administrative action that TID may take on non-compliance with the TTRS exemption conditions (paragraph 36).

New TTRS Fee Structure

6. Since 30 May 2003, the Government has introduced electronic service for TTRS. It covers submissions of all types of textiles notifications, including fresh submission, re-submission, and request for amendment and cancellation of notifications. In line with the Government's policy of promoting electronic commerce, the new TTRS fee structure aims to provide a financial incentive for textiles traders to enhance their use of electronic service for lodging textiles notifications to maximize their efficiency in trade documentation.

7. As elaborated in Textiles Trader Registration Circular No. 2/2007 issued on 16 February 2007, the new TTRS fee structure is as follows -

1. The annual registration fee will be reduced from HK$2,825 to HK$718;

2. A new fee of HK$3.8 (i.e. the price differential between lodging a paper and an electronic notification) will be payable for each textiles notification lodged in paper form, on top of the existing charge of HK$0.5 for each paper notification form ¹ ; and

3. TID will not charge any fee for electronic notifications. Tradelink will continue to charge a message fee, the current rate being HK$0.5 for each electronic notification lodged.

8. The above new fee structure will take effect from 25 June 2007. Textiles traders who register/renew their registration with a validity period commencing on or after 25 June 2007 will be subject to the new fee structure. Textiles traders who register/renew their registration with a validity period commencing prior to 25 June 2007 will continue to pay the existing registration fee of HK$2,825. They will not be subject to the new fee of HK$3.8 for lodging paper notifications. These registrants will switch over to the new TTRS fee structure when they renew their registration in 2008.

9. The new fee on paper notification mentioned in paragraph 7(b) above is payable when the paper notification forms are purchased from TID (see also paragraphs 16 to 19 concerning introduction of new textiles notification forms). In other words, a total of HK$4.3 will be payable for each notification form sold.

Registration Procedures

10. The registration procedures, as set out in the updated TTRS Registration Procedures and Conditions of Exemption at Annex A (pdf format) , will continue to be applicable under the new fee structure. Specifically, traders should ensure that the appropriate amount of registration fee has been paid when lodging the applications.

New Registration

11. Traders seeking registration under the TTRS should complete an Application Form for Textiles Trader Registration, which is available from the Central Registration Office (CRO) at Room 106, 1/F, Trade and Industry Department Tower, 700, Nathan Road, Mongkok, Kowloon. Traders should return the completed application form, together with the green copy of the machine-printed pay-in slip and other specified supporting documents, to the CRO either by hand or by registered mail.

12. The Department will start receiving applications for new registration under the new TTRS fee structure on 25 June 2007. In other words, applications received by the Department on or after 25 June 2007 will fall under the new fee structure. Applications received by the last working day prior to 25 June 2007 (i.e. on or before the close of play 22 June 2007) will be processed under the existing fee structure, provided that the application form has been properly completed and sufficient supporting documents have been provided. Traders should note that for applications lodged by mail, the application will be considered as received on the day when the application actually reaches the TID, not the day shown on the postal chop. For traders who wish to register under the existing fee structure, it will be in their interest to ensure that their applications will reach TID in good time, preferably before 20 June 2007, to allow sufficient time for the Department to process their applications. Traders should also ensure that the correct amount of registration fee has been paid (i.e. HK$718 for registrations under the new fee structure, and HK$2,825 for registrations under the existing fee structure).

Renewal of Registration

13. For existing registered traders, in line with existing practice, the Department will send a letter advising them of the upcoming expiry and the procedure for renewing their registration about one to two months before expiry of their registration. Enclosed to the letter will be an Application for Renewal of Registration as a Textiles Trader and a payment slip. If they wish to renew their registration, they should complete and return the application, either by hand or by registered mail, together with the green copy of the machine-printed pay-in slip and other necessary specified documents to the CRO. The new validity period will normally commence on the date immediately following the expiry date of the current registration, provided that the renewal application is lodged before the current registration expires. If the renewal application is lodged after the current registration has expired, the validity period for the renewed registration will commence after the Department has finished processing the application. A few examples illustrating different scenarios are contained at Annex B (pdf format) for traders' reference.

14. We understand that some textiles traders whose registrations are going to expire shortly before 25 June 2007 may want to renew their registrations under the new fee structure. On an exceptional and one-off basis, the Department will allow this group of traders to delay the start date of their renewed registrations and register under the new fee structure. In raising the special request, apart from returning the completed Application for Renewal of Registration as a Textiles Trader, the green copy of the machine-printed pay-in slip (evidencing payment of HK$718, being the annual registration fee under the new fee structure) and other necessary documents, traders should also complete and return an Application for Renewal of Expired Textiles Trader Registration under the New Fee Structure (which can be downloaded at http://www.tid.gov.hk/english/aboutus/form/publicform/ttrs/index.html or obtained from the CRO). As the Department will take longer time to process this kind of applications, traders are advised to raise their requests early. As a general rule, requests raised on or before 15 June 2007 can have the renewed registration starting on 25 June 2007; requests raised after 15 June 2007 may have the renewed registration starting on or after 25 June 2007. Traders who wish to delay the renewal of their registrations in the above manner are required to make use of the consignment-specific import licences (i.e. Form 7, HK$40 per licence) and export licences (i.e. Form 4, HK$56 per licence) to cover their textiles shipments during the interim period when their Textiles Trader Registration is not in effect.

15. The arrangement described in paragraph 14 above is a special arrangement to enable more traders to benefit from the new fee structure. In accordance with existing policy and practices, the validity start dates for Textiles Trader Registrations are determined solely by TID and any special request on the validity start date will not be entertained under other circumstances.

New Textiles Notification Forms

16. To ensure that traders will use the appropriate type of textiles notification forms, the Department will introduce a new set of forms for traders under the new fee structure. The new forms will be available for sale from 4 June 2007. The new set of forms will essentially share the same layout as the existing forms but printed in different colour and carry different form numbers to facilitate identification, as in the following manner:

Use of New Forms

17. Textiles traders who register or renew their registration under the new fee structure are required to start using the new TTRS notification forms stipulated in paragraph 16 above upon commencement of their new registration. Traders should carefully plan and purchase in good time new notification forms from the Department to cater for their shipment needs. They are also reminded to carefully plan their purchase and use of the existing textiles notification forms to avoid over-stocking, bearing in mind that the old paper forms can no longer be used upon commencement of the new registration. Unused forms will not be refunded.

18. The Department takes a serious view on any improper use of textiles notification forms. Any improper use of textiles notification forms will be regarded as import or export of textiles not under and in accordance with a valid licence under the Import and Export Ordinance. In such case, the textiles notification lodged will be considered invalid and the relevant textiles trader will be required to apply for a retrospective consignment-specific import or export licence (i.e. Form 7 or Form 4) to cover the textiles shipment. Moreover, the Department may take other legal or administrative actions against the textiles traders concerned.

19. Traders who are under the existing fee structure may continue to use the existing textiles notification forms. They are however reminded that the existing forms can no longer be used upon renewal of their registration, and will be completely phased out by 24 June 2008. They should carefully plan their purchase and use of existing textiles notification forms to avoid over-stocking as unused forms will not be refunded.

Purchase of New Textiles Notification Forms

20. The existing arrangements for the purchase of textiles notification forms as set out in Textiles Trader Registration Circulars No. 3/2000 dated 29 May 2000 and Textiles Trader Registration Circular No. 1/2007 of 24 January 2007 will remain unchanged. In essence:

1. For purchase of Import Notification (Textiles) forms, a textiles trader is required to first complete an application form and hand in the completed form together with the original of his Certificate of Registration as a Textiles Trader or a certified photocopy of the Certificate to the CRO for approval. Upon approval, the registered trader or his representative can proceed to the Collection and Form Sales Office on 1/F to purchase the forms;

2. For purchase of Export Notification I & II (Textiles) and Transhipment Notification (Textiles) forms, a registered trader is only required to present to the Collection and Form Sales Office the original of his Certificate of Registration as a Textiles Trader or a certified photocopy of the Certificate for inspection; and

3. Transhipment Notification (Textiles) forms are sold only to carriers and freight forwarders registered under the TTRS.

21. All textiles traders are reminded that textiles notification forms must be kept in safe custody and must not be transferred for use by other traders, irrespective of whether they are registered under the TTRS. A registered textiles trader who contravenes or fails to comply with this condition commits an offence and is liable to legal and/or administrative actions.

Provision of Product HS Code

22. The Department announced vide Textiles Trader Registration Circular No. 1/2007 of 24 January 2007 a new requirement to provide the 8-digit commodity code number in accordance with the current Hong Kong Imports and Exports Classification List (Harmonized System) on textiles notifications. The new requirement will come into effect on 25 June 2007 together with the new fee structure. Registered traders lodging textiles notifications in both paper (whether using existing or new notification forms) and electronic mode are required to provide the 8-digit commodity code number for products covered in the notification under the column "Hong Kong HS Code". The commodity code number must be in accordance with the current Hong Kong Imports and Exports Classification List (Harmonized System), and should correspond to the textiles products declared under "Full Description of Goods".

23. For carriers and freight forwarders making use of a through bill of lading/through air waybill to supplement the particulars of the transhipment cargo on transhipment notifications lodged in paper mode, they are required to provide the HS code in the through bill of lading/air waybill attached to the notification.

24. For enquiries on the commodity code number of textiles products, traders may approach the Trade Classification Section of the Census and Statistics Department (enquiry hotline: 2877 1818; email address: trade-declaration@censtatd.gov.hk). Alternatively, traders may make use of the online commodity code searching service at the website of the Census and Statistics Department, which is accessible from the following URL:

    http://www.censtatd.gov.hk/products_and_services/online_services/
    checking_trade_codes/index.jsp

25. Textiles traders are also reminded of the importance to fill in the notification forms properly. A guidance note on specific requirements for different types of textiles notifications and specimens illustrating the application of these requirements can be downloaded from http://www.tid.gov.hk/english/aboutus/publications/textiles/textiles.html or obtained from the Customer Service Centre of the Origin Certification and Textiles Licensing Branch. For details on completion of electronic textiles notifications, please refer to Textiles Trader Registration Circular No. 16/2003 dated 28 May 2003 which can be downloaded from http://www.tid.gov.hk/english/aboutus/tradecircular/ttrc/2003/ttrc162003.html or also obtained from the Customer Service Centre of the Origin Certification and Textiles Licensing Branch. Textiles traders are reminded that information provided and declarations made in textiles notifications must be true and correct and in accordance with all relevant specifications made by the Director-General of Trade and Industry. Notifications which are not completed in accordance with the specifications are considered invalid.

New Measure for Electronic Service

Features and Benefits of Electronic Service

26. As mentioned in paragraph 6 above, the major purpose of the new fee structure is to provide financial incentive to enhance traders' use of electronic service. The features and benefits of electronic service are set out in Textiles Trader Registration Circular No. 12/2003 of 12 May 2003. Some salient points are re-capitulated below:

1. textiles traders can deliver their notifications to the Department and the carriers direct under the electronic system;

2. carriers need only to deliver the relevant copy or extract of manifest quoting the Unique Textiles Notification Reference Numbers (UTR) of notifications lodged electronically by textiles traders;

3. traders will be informed of any errors or omissions on the textiles notifications within 15 minutes of sending it to Tradelink. This can also save the carriers' efforts in checking the completeness and consistency of the information contained in the textiles notifications received;

4. Upon successful completion of computer validation, the electronic service can allow for instantaneous transmission of the UTR and other details on the textiles notification to the carrier concerned;

5. for Export Notification II, it is not necessary for textiles traders to deliver a hardcopy of the import licence or Import Notification or Comprehensive Import Licence (Textiles) as supporting document; and

6. for Transhipment Notification, it is not necessary for carriers to deliver a copy of the through bill of lading or through airway bill when they deliver the manifest to the Department.

27. More details on the electronic service and its benefits are available at Tradelink's website http://www.tradelink-ebiz.com/ttrs/. Traders may also contact the company's enquiry hotline at 2599 1700.

28. Tradelink is organizing a number of workshops/seminars in collaboration with TID in May 2007 to help textiles traders gain a better understanding on lodging electronic textiles notifications. Interested parties may approach Tradelink at 2917 8878 or visit Tradelink's website http://www.tradelink-ebiz.com/ttrs/ for details.

Streamlined Requirement for Electronic Transhipment Notifications

29. Transhipment Notifications (TN) can be used only by carriers and freight forwarders registered under the TTRS for handling transhipment cargo. In accordance with the updated TTRS Conditions of Exemption at Annex A, for TN lodged in paper form, if a single carrier or freight forwarder is responsible for arranging both the in-bound and out-bound leg of the transhipment and hence completing the full set of a TN, then certain particulars relating to the cargo may be omitted from the notification provided that the said particulars are clearly shown on the through bill of lading/through air waybill attached to the notification. A carrier/freight forwarder making use of a through bill of lading/through air waybill to supplement the particulars of the transhipment cargo on the TN is required to make specific declaration on the through bill of lading/through air waybill attached to the notification.

30. We intend to align the arrangement for electronic and paper notifications in order to provide more flexibility in lodging electronic TN. With effect from 25 June 2007, carriers and freight forwarders who satisfy the conditions stipulated in paragraph 29 above are allowed to provide only the through bill of lading/through air waybill number under the field "Through Bill of Lading/Air Waybill No."in electronic TN, whilst particulars relating to the cargo may be omitted from the notification. This is an interim measure to reduce the manual efforts involved in lodging electronic TN. Carriers and freight forwarders are encouraged to develop technical solutions to facilitate transcription of the relevant information already resided in their computer systems onto the electronic textiles notifications.

31. To facilitate verification/inspection by officers of the Customs and Excise Department at the land border control points, carriers and freight forwarders who choose to fill in only the through bill of lading/through air waybill number in the TN are required to make ready the hardcopies of the relevant through bill of lading for inspection. The through bill of lading/through air waybill should contain full particulars of the transhipment cargo and the relevant product HS codes as stipulated in paragraph 23 above. In addition, the Department will not accept post-shipment amendment to the through bill of lading/through air waybill number quoted on the TN. Should such a need arise, carriers/freight forwarders should seek cancellation of the TN concerned and apply for a retrospective consignment-specific export or import licence.

32. Also, a registered carrier/freight forwarder must, in connection with the TNs lodged by him, keep all shipping documents relevant to the transhipment cargo at his registered premises for a two-year period, and produce the documents for inspection upon request by TID or officers of the Customs and Excise Department.

Upgrade of Tradelink's End-User Software (EUS)

33. In order that textiles notifications lodged in electronic mode can meet the new requirements above, Tradelink has been carrying out an EUS upgrade exercise for the existing users of the electronic service since April 2007. Textiles traders are reminded that it is important to follow Tradelink's instructions for timely completion of the software upgrade. Otherwise, textiles notifications lodged by using the old version of the EUS will be rejected when the new requirements come into effect on 25 June 2007.

Registration for Electronic Service

34. Textiles traders who wish to lodge electronic notifications have to register with Tradelink beforehand. For details, please contact Tradelink at 2917 8878 or visit Tradelink's website at http://www.tradelink-ebiz.com/ttrs/.

35. TID would need to transfer certain information of the registered textiles traders to Tradelink to facilitate the registration for electronic service and for processing of electronic textiles notifications. Such information include company name, Textiles Trader Registration Number, Hong Kong Identity Card number of the name of signatory, etc. Textiles traders are required to complete the appropriate authorization form ² at Annex C (pdf format) to authorize TID to release the information to Tradelink. Traders who wish to make use of the electronic service must return the duly completed authorization form to TID.

Warnings

36. Traders are reminded to use the appropriate forms in lodging textiles notifications (see paragraphs 16-19 above), and to complete the notification forms properly without omission of any required particulars (see paragraphs 22-25 and 29-30 above). All handwritings on the notifications must be legible. The Department takes a serious view on any breach of the conditions of exemption under TTRS or offence committed under the Import and Export Ordinance. Notifications which are not completed in accordance with the specifications are considered invalid. Importing or exporting textiles without a valid notification or licence constitutes an offence under the Import and Export Ordinance and the trader concerned is liable on conviction to a fine of $500,000 and imprisonment for two years. In addition, the Director-General of Trade and Industry 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 refusal to renew any exemption and/or registration granted.

Enquiries

37. For enquiries on this circular, please contact the Customer Service Centre of the Origin Certification and Textiles Licensing Branch at 2398 5288. For registration matters, please contact the Central Registration Office at 2398 5512.

Yours faithfully,

(Miss Karen Chan)
for Director-General of Trade and Industry

¹ This form charge is to cover the printing costs and other administrative charges. It is subject to change from time to time in accordance with the printing costs for the forms.

² Different authorization forms are used for textiles traders operating with or without branches.
The authorization forms can also be downloaded from the Department's web portal (http://www.tid.gov.hk/english/aboutus/form/publicform/ttrs/index.html) or obtained from the CRO.