Press Release 2007

New trade facilitation measure launched
Monday, July 23, 2007

The Trade and Industry Department will today (July 23) launch a trade facilitation measure called the "Approval-in-Principle Arrangement for Bulk Users of Strategic Commodities Licensing Service".

"This new arrangement is a major trade facilitation initiative of the Trade and Industry Department on the strategic trade controls front. Licence applications lodged under the new arrangement will require less processing time and the approved licences can be obtained electronically," a department spokesman said.

"The new scheme aims to further streamline licensing procedures and expedite processing time for certain frequent and qualified users of the licensing service for strategic commodities. A company which frequently imports a less sensitive product from the same supplier or frequently exports a less sensitive product to the same consignee may apply for an 'Approval-in-Principle' for such consignments," the spokesman said. " Once an 'Approval-in-Principle' has been granted, the company may then electronically apply for and receive the import/export licence that covers the individual shipments within the scope of the 'Approval-in-Principle'. It is envisaged that the processing time would be shorter for licence applications covering individual shipments under this new arrangement."

The first phase of the new arrangement will cover telecommunications and information security products.

"The department has organised briefings to the eligible companies for the new scheme to explain to them the relevant operations and procedures. They have welcomed the new arrangement. This is another effort by the department to improve licensing services," he said.

Under the Import and Export Ordinance (Cap 60), import and export of strategic commodities are subject to licensing controls by the Director-General of Trade and Industry.

"Such controls are necessary in order to monitor and control the flow of strategic commodities, and hence to maintain the confidence of the technology supplying countries in our control system, thereby ensuring Hong Kong's continued access to high technology products," the spokesman said. "The new arrangement will not change the existing legislative requirement in strategic trade controls. In other words, the legal responsibilities of importers, exporters and carriers under the Import and Export Ordinance (Cap 60) will not change under the new scheme."

For the details of the new scheme, traders may refer to the Strategic Trade Controls Circular No 3/2007 dated June 28 which can be downloaded from the Strategic Commodities Control System website (www.stc.tid.gov.hk) of TID or contact the Strategic Trade Controls Branch of Trade and Industry Department on 3403 6424.

Ends