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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
Brand Hong Kong - Asia world city

24-hour hotline : 23 922 922

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

Ref. : TRA CR 1308

 31 August 2005

Dear Sirs,

Certificate of Origin Circular No. 7/2005

Notice to Exporters :

( Series 1 (USA) No. 11/2005

Series 2 (EU) No. 18/2005

Series 3 (Countries other and USA and EU) No. 6/2005 )

Certificate of Hong Kong Origin (CO) for Textiles and Clothing Exports

Introduction

Further to Certificate of Origin Circular No. 14/2004 on the Textiles Control Arrangement for 2005, this circular reminds traders that it will be helpful to take out a Certificate of Hong Kong Origin to substantiate a proof of Hong Kong origin for textiles and clothing exports to overseas markets. 

 

Hong Kong's Origin Certification System 

 

  1. The origin certification system in Hong Kong is implemented to facilitate Hong Kong's exports to the world market. A Certificate of Hong Kong Origin (CO) is issued for goods that have undergone the principal process of manufacture in Hong Kong, in accordance with the origin requirements as laid down by the Director-General of Trade and Industry. COs are issued by the Trade and Industry Department of the Hong Kong SAR Government as well as five other Government Approved Certification Organizations1. All such COs issued enjoy equal status protected by the laws of Hong Kong. In view that Hong Kong's well-established origin certification system has been highly regarded by the international trading community, a CO will readily serve a convenient and well-accepted proof of Hong Kong origin to facilitate customs clearance of Hong Kong products in the importing ends.

 

Certificate of Origin as a Proof of Hong Kong Origin 

 

  1. Starting 1 January 2005, textiles and clothing products of Hong Kong origin and exported to the rest of the world are no longer subject to quantitative restrictions following the global elimination of textiles quotas as laid down in the World Trade Organization (WTO) Agreement on Textiles and Clothing. However, due to the imposition by the major markets of restrictive trade measures against certain textiles exports of Mainland China, textiles trade in the region may face uncertainties and possibly closer scrutiny by certain importing markets, especially for products in the same categories as those subject to the restrictive measures imposed on the Mainland's products. 
     
  2. In this regard, overseas customs authorities may at times require additional proof of origin and other documentation to verify the origin claim of the products concerned and the accuracy of other information declared, including the identity of the manufacturer, the place of manufacture of the goods and the place of embarkation where the goods are loaded for export to the importing end. To avoid delays in customs clearance, particularly in the event of any Customs inquiry or hold-up shipments at the importing end, traders are strongly encouraged to take out a CO issued by the competent authorities1 in Hong Kong before export if the goods concerned are products of Hong Kong origin, and to keep proper documentation to substantiate the origin claim. It will be in traders' interest if they can readily produce a CO and other supporting documents for the goods concerned in response to enquiries from authorities at the importing end or during visits by overseas officials. This will facilitate their easier understanding with regard to the manufacture of the goods and in turn help expedite customs clearance in the importing end. 
     
  3. Traders should note that CO applications should be made before export of the products to overseas markets. In applying for a CO, traders are reminded that goods claiming Hong Kong origin under a CO must have undergone the principal processes of manufacture in Hong Kong. They are processes which permanently and substantially change the nature, shape, form or utility of the basic materials used in manufacture as laid down by the Director-General of Trade and Industry in relevant Certificate of Origin Circular(s) from time to time. The latest Certificate of Origin Circular is at: http://www.tid.gov.hk/english/aboutus/tradecircular/coc/2004/coc172004.html.
     
  4. Notwithstanding the above, traders are reminded to find out from their overseas buyers and the importing end authorities any other specific requirements they need to observe before exportation of their goods from Hong Kong, including but not limited to origin classification and origin labelling requirements, etc. 

 

Compliance with Consignment Check Requirements

 

  1. In order to uphold the integrity of the origin certification system, the Trade and Industry Department, in conjunction with the Customs and Excise Department, may conduct consignment checks to verify the accuracy of material particulars declared on any application for a CO. Traders are reminded to comply with the consignment check requirements as stipulated in Certificate of Origin Circular No. 5/2005 dated 13 July 2005. In particular, CO applicants should note that if an application is selected for pre-issue check, it will normally take a relatively longer time to process that application. Traders are therefore requested to bear this in mind in drawing up their shipment schedules.

 

Warning

 

  1. The Trade and Industry Department works closely with the Customs and Excise Department, through checks and inspections, to ensure compliance with the provisions of the origin certification system. Breach of any of the provisions of the origin certification system or failure to comply with other requirements specified by the Director-General of Trade and Industry, including those requirements promulgated by the Trade and Industry Department through notices and circulars from time to time, may result in prosecution under the Import and Export Ordinance or the Protection of Non-Government Certificates of Origin Ordinance as appropriate, which provides for a penalty of a fine of HK$500,000 and 2 years' imprisonment. In addition, the Trade and Industry Department may take administrative actions against the exporters and manufacturers (including subcontractors as the case may be) concerned, irrespective of whether they have been prosecuted.

 

Enquiries

 

  1. Should you require further information on the content of this circular, please contact the Certificate of Origin Section at telephone number 2398 5545.
     

Yours faithfully,



(Thomas LI)
for Director-General of Trade and Industry

Note 1: These Government Approved Certification Organizations are namely: The Hong Kong General Chamber of Commerce, Federation of Hong Kong Industries, The Indian Chamber of Commerce, Hong Kong, The Chinese Manufacturers’ Association of Hong Kong, and The Chinese General Chamber of Commerce