Textiles Trader Registration Circular

24-hour hotline : 23 922 922

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

Ref. : TID CL 4-60/1

8 January 2008

Dear Sirs,

Textiles Trader Registration Circular No. 1/2008

Actions against Malpractices Under the Textiles Trader Registration Scheme (TTRS)

Introduction

The purpose of this trade circular is to remind textiles traders of the importance to ensure that the textiles notifications they lodge fully comply with the exemption conditions under the TTRS, and the notifications are completed in accordance with the specifications made by the Director-General of Trade and Industry (DGTI) as announced in trade circulars from time to time. 

2. The Department notices a number of discrepancies from the textiles notifications lodged from time to time. For example, some of the textiles traders are not holding valid TTRS registration, some traders who are registered under the new fee structure continue to use old notification forms, and some information on the notification forms are inaccurate or missing. In this connection, traders are reminded that, as stipulated in TTRS Circular Nos. 7/98 of 21 August 1998 and 4/2007 of 16 May 2007, textiles notifications can only be lodged in lieu of textiles licences if the trader concerned holds a valid registration under the TTRS and abides by all the relevant exemption conditions, and information provided and declarations made in textiles notifications must be true and correct and the notifications must be completed in accordance with all the relevant specifications made by the Director-General of Trade and Industry. Textiles notifications which do not fully comply with the TTRS exemption conditions are considered invalid, and the consignment in question will be regarded as not being imported/exported under and in accordance with valid licences as required under the Import and Export Ordinance (Cap.60) (IEO). 

Compliance with TTRS Exemption Conditions

3. Sections 6(C) and 6(D) of the IEO stipulate that no person shall import or export textiles articles except under and in accordance with an import or export licence issued by the DGTI. Any person who contravenes these sections shall be guilty of an offence and be liable on conviction to a maximum penalty of a fine of $500,000 and imprisonment for 2 years. 
   
   
4. The TTRS is a scheme to provide textiles traders with a convenient alternative to the above licensing requirement. Textiles traders registered under TTRS are exempted, during the validity period of their registration, from the licensing requirement of the IEO in respect of textiles which fall within the scope of the scheme, subject to their compliance with a set of conditions. Importers, exporters, manufacturers, carriers and freight forwarders, who are carrying on business of importing or exporting textiles to and from the sensitive markets¹ or handling transshipment cargoes of textiles, may apply for registration under the TTRS. The registration procedures and the exemption conditions of the TTRS are set out in Annex A to TTRS Circular No. 4/2007 of 16 May 2007.
   
   
5. Textiles traders who are not registered under the TTRS, or their registrations have become inactive, expired, suspended or cancelled for whatever reasons, are not exempted from the licensing requirement stipulated in paragraph 4 above. These traders are not allowed to lodge textiles notifications. Instead, they should cover all their textiles imports or exports (including re-exports) by valid consignment-specific import or export licences issued by the DGTI. 
   

Use of Textiles Notification Forms

6. Under the exemption conditions of the TTRS, registered textiles traders must complete the appropriate textiles notifications forms purchased from the Department if the notifications are lodged in paper mode. In tandem with the implementation of the new TTRS fee structure on 25 June 2007, the Department has introduced a new set of notification forms for textiles traders registered under the new TTRS fee structure. Textiles notifications lodged with improper forms will be considered invalid.

Completion of Textiles Notifications

7. All information provided and declarations made in a textiles notification must be true and correct and in accordance with all relevant specifications made by the DGTI. The textiles notifications must be fully, properly, and accurately completed in order for the shipment covered to be exempted from the licensing requirements under the IEO. All handwritings or typescripts must be legible. To assist textiles traders to complete their textiles notifications properly, the Department has prepared a guidance note on the specific requirements for different types of textiles notifications and specimens illustrating the application of these requirements. The guidance note can be downloaded from http://www.tid.gov.hk/english/aboutus/publications/textiles/ttrs_note.html or obtained from the Customer Service Centre of the Origin Certification and Textiles Licensing Branch. 
   
   
8. Textiles notifications which are not completed in accordance with the specifications, or information provided and declarations made are found to be inconsistent or contradictory, may render a notification invalid. Section 36(1) of the IEO states that any person who, in respect of a document required to be lodged with the DGTI, makes or causes to be made any statement or furnishes or causes to be furnished any information which is false or misleading in a material particular shall be guilty of an offence and shall be liable on conviction to a maximum fine of $500,000 and imprisonment for 2 years.
   

Important Warning

9. The DGTI takes a serious view on any abuse of the TTRS. The Department works closely with the Customs and Excise Department to uphold the integrity of the TTRS. The two departments will carry out documentation checks on notifications and manifests, physical checks on textiles consignments, and visits to registered premises of textiles traders from time to time to ensure that the exemption conditions of the TTRS are fully complied with, and information provided and declarations made on textiles notifications are true and accurate.
   
   
10. Textiles shipments covered by invalid textiles notifications will be considered as not having been imported or exported under and in accordance with valid licences under the IEO. The textiles traders concerned will be required to apply for consignment-specific import or export licences in a retrospective manner to cover the shipments in question. In addition, DGTI may take other legal and/ or administrative actions against the textiles traders. Any administrative actions to be taken shall be independent and irrespective of any prosecution action which may be instituted under the IEO or under other relevant Laws of Hong Kong against the textiles traders concerned, and irrespective of whether the invalid textiles notifications have been amended, cancelled or withdrawn, or whether retrospective consignment-specific import or export licences have been applied and approved. The administrative actions may involve but shall not necessarily confine to 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. Where circumstances justify, the offending textiles traders may be debarred from all licensing and certification facilities. 
    

Enquiries

11. For enquiries on this circular, please contact the Customer Service Centre of the Origin Certification and Textiles Licensing Branch at 2398 5288.

Yours faithfully,

(Summer Lau)

for Director-General of Trade and Industry

¹ The current scope of TTRS covers import from and export of textiles to the Mainland, and exports of textiles to the European Union and the United States of America.