Press Releases
Statement of the Trade
and Industry Department
Wednesday, October 3, 2001
In response to press enquiries on the implementation of Hong Kong's textiles export control measures, the Trade and Industry Department (TID) said that the Government is firmly committed to combating illegal textiles transshipment to preserve the overall interests of Hong Kong's garments exports and our fine reputation among international trading partners.
A spokesman of TID said this firm commitment is necessary to ensure that Hong Kong's garments exports will have continued access to restrained markets and not be subject to punitive measures imposed by importing countries. TID and the Customs & Excise Department (C&ED) will continue to work closely to verify whether products declared in Production Notifications and Textiles Export Licences are in full compliance with Hong Kong's origin requirements. The Government appeals to the industry to exercise self-discipline and not undertake any illegal textiles transshipment activities.
The spokesman explained that all Production Notifications and Textiles Export Licences are subject to verification by C&ED officers. He emphasised that when carrying out enforcement activities, C&ED officers will act strictly in accordance with the law. Depending on individual circumstances, the enforcement actions may take different forms, including real time checks at the factory premises. Some factories may be subject to more frequent inspections if they have previous records of malpractice, if their production capacity is not commensurate with their export volume, or if intelligence gathered by C&ED suggests any cause for suspicion.
In the course of the enforcement actions, C&ED officers will make every endeavour not to disrupt the normal production of the factories. Once the production is confirmed, TID will issue the relevant trade documentation.
The spokesman said that for many years it has not been C&ED's requirement for the factory owner to be present during factory inspections. In fact, factory owners/directors can authorise any employees to represent the factory in handling questions by C&ED officers.
The spokesman emphasised that when inspecting factories, C&ED officers will ask workers questions relating to their work only when it was necessary. In any event, the workers' production will not be disrupted. As for applications for Factory Registration, factory owners need only have suitable factory premises and relevant production facilities. After verification of their production capability by C&ED, the Factory Registration will be approved immediately.
While maintaining the integrity of the textiles export control system, TID has over the years also made much efforts to provide a favourable business environment for the industry. Since mid 1996, the Department has successively relaxed the origin requirements, allowing more non-essential production processes to be undertaken outside Hong Kong (see Annex 1 and Annex 2). Such relaxations help the industry cut down the cost of production and facilitate more flexible production planning, thereby enabling the industry to stay competitive in the world market.
The spokesman continued that TID and C&ED will study in detail and follow up on the six-point suggestions put up by the "Small and Medium Sized Garment Industry Alliance". Without compromising the integrity and effectiveness of the textiles export control system, TID and C&ED will continue to review the licensing arrangements and factory inspection procedures from time to time. Views and suggestions from the industry will be welcomed by the two Departments.