24-hour hotline : 23 922 922
e-mail address : enquiry@tid.gov.hk
Ref: TID CL 10-3/2 (C)2
30 September 2014
Dear Sirs,
Notice to Exporters :
Series 1 (USA) No. 4/2014
Series 2 (EU) No. 4/2014
Series 3 (Countries other than USA & EU) No. 4/2014
Certificate of Origin Circular No. 6/2014
Import Licensing (Textiles) Circular No. 3/2014
Textiles Trader Registration Circular No. 4/2014
Relaxation of the Hong Kong Textiles Control Arrangements
Transitional Arrangements
Introduction
As foreshadowed in Textiles Trader Registration Circular No. 3/2014 cum Notice to Exporters (Series 1, 2 and 3) No. 3/2014 dated 13 June 2014, the Government is seeking to fully liberalize the textiles control arrangements effective from 21 November 2014, subject to completion of the legislative process. The Department will make further announcement to confirm the commencement date of liberalization. Meanwhile, the existing textiles control arrangements on textiles imports and exports remain in force. Traders are advised to note the transitional arrangements as set out below.
Details
Cessation of Control
- all textiles imported into or exported (including re-exported) from Hong Kong will not require any textiles licences;
- traders registered under the Textiles Trader Registration Scheme (TTRS) will no longer need to lodge textiles notifications to cover their textiles shipments in lieu of licences; and
- manufacturers will not be required to lodge Production Notification (PN) for any cut-and-sewn garments manufactured in Hong Kong.
Transitional Arrangements
(a) Import Licence (Textiles) Form 7 and Export Licence (Textiles) Form 4
3.For textiles shipments preceding liberalization, the Department will accept applications (including fresh applications and resubmission of deferred applications) for Import Licence (Textiles) Form 7 and Export Licence (Textiles) Form 4 until 20 November 2014 (Note). In this connection, traders are advised to lodge their licence applications as early as possible to allow time for processing by the Department which normally takes two clear working days.
4.Please note that all unused approved textiles licences will automatically lapse upon the commencement of liberalization. Request for refund of application fees will not be accepted.
5.Where there is a change to the declared particulars on an approved licence or in the case of shipment cancellation, traders should make a request for amendment or cancellation of the approved licence as appropriate and return any unused licences to the Department within 14 days after liberalization (i.e., on or before 4 December 2014) (Note). The Department will consider these requests on individual merits.
(b) TTRS Textiles Notifications
6. For shipments preceding liberalization, traders registered under TTRS can continue to lodge textiles notifications in paper or electronic mode on or before 20 November 2014 (Note). Upon completion of the legislative process, the electronic TTRS system operated by Tradelink Electronic Commerce Limited ("Tradelink") will not accept any lodgement of fresh electronic textiles notifications bearing a shipment date on or after 21 November 2014 (Note).
7. Requests for cancellation or post-shipment amendment to textiles notifications may be lodged with the Department (for paper notifications) or via Tradelink's e-TTRS system (for electronic notifications) within 14 days after liberalization (i.e., on or before 4 December 2014) (Note). The Department will consider these requests on individual merits. For electronic notifications, Government responses (approval/rejection messages, etc.) will be sent through the e-TTRS system in the normal manner1 . Tradelink will give a separate notice to textiles traders using the electronic TTRS service regarding the cessation of service.
(c) Production Notification (PN)
8. Lodgment of PN is not required for production of cut-and-sewn garments in Hong Kong after liberalization. Tradelink's electronic system will not accept PN applications bearing a production date commencing on or after 21 November 2014 (Note).
9. Manufacturers commencing production of cut-and-sewn garments for export to the USA before liberalization are still required to lodge PN. The Department will continue to accept and process PN (including fresh applications, re-submission of deferred applications, requests for extension of PN validity and requests for cancellation) lodged via Tradelink’s electronic system before 11:00 p.m. on 20 November 2014 (Note).
10. Manufacturers wishing to amend the particulars on a validated PN should submit the amendment request for the PN through Tradelink's electronic system within 14 days after liberalization (i.e., before 11:00 p.m. of 4 December 2014) (Note). The Department will consider these requests on individual merits. Government responses (approval/rejection messages, etc.) will be sent through Tradelink's electronic system in the normal manner2.
(d) Certificate of Hong Kong Origin
11. All applications for Certificate of Hong Kong Origin (CHKO) involving cut-and-sewn garments for export to the USA (including fresh applications and re-submission of deferred applications) lodged as from 11:00 p.m. of 20 November 2014 (Note) are no longer required to be supported by validated PNs.
12.Nevertheless, for CHKOs covering cut-and-sewn garments destined for the USA issued prior to liberalization, amendment requests are still required to be supported by the original validated PNs.
(e) Sale of Paper Forms
13. Paper forms for Import Licence (Textiles) Form 7, Export Licence (Textiles) Form 4 and Textiles Notifications are available for sale at the Department's Collection and Form Sales Office (Address: Room 104, 1/F, Trade and Industry Department Tower) until 20 November 2014 (Note).
(f) Enquiries on Classification of Textiles
14. With the lifting of the PN requirement upon liberalization from 21 November 2014 (Note), the Customer Service Centre of the Textiles Licensing Branch will cease to provide classification enquiry service in respect of textiles exports3 . If necessary, traders may approach the Factory Registration and Origin Certification Branch for information on the origin conferring processes for origin certification purpose or the relevant divisions of the Department for enquiries regarding import regulations of overseas markets:
| Enquiry | Unit | Telephone No. |
| Import regulations of Americas | Americas / Commercial Relations Branch | 2398 5405 |
| Import regulations of Europe, Africa and Middle East | Europe Division | 2398 5354 |
| Import regulations of Mainland of China | Mainland Division | 2398 5676 |
| Import regulations of Australia, New Zealand, Pacific Islands and Asia other than the Mainland of China | Regional Cooperation Division | 2398 5594 |
(g) Textiles Trader Registration Scheme (TTRS)
15. The Department will continue to provide the voluntary registration service under TTRS after liberalization. Traders who are/are not holding TTRS registrations are welcome and encouraged to register/keep their TTRS registration in case Hong Kong might need to resort to reinstating textiles control should circumstances require in the future having regard to developments in the global textiles trade environment. The annual registration fee will be adjusted to HK$61 upon liberalization. Details of the post-liberalization registration arrangements under TTRS are announced in Textiles Trader Registration Circular No. 5/2014 dated 30 September 2014.
Important Notices
16. Traders are advised to take note of the above proposed liberalization of textiles control in planning for their application or renewal of registration under TTRS. Alternatively, traders may apply for consignment-specific textiles licences to cover their textiles shipments as necessary before liberalization if they do not hold a registration under TTRS or upon expiry of their TTRS registrations. In this connection, please note that any request for a full or partial refund of TTRS annual registration fee paid for whatever reason will not be accepted. Moreover, in view that all textiles licence/notification forms will no longer be in use after liberalization, traders are advised to avoid over-stocking unused textiles licence/notification forms which in any case will not be accepted for refund or exchange.
Warning
17. Notwithstanding the liberalization of textiles control, traders are required under the law to keep relevant books and records for textiles shipments covered by textiles licences/ notifications for a minimum period of two years after the date of shipment and to present them for inspection by officers of the Customs and Excise Department and the Trade and Industry Department if required.
18. Traders who contravene or fail to comply with any of the conditions of issue of licences or conditions of exemption under TTRS prior to liberalization commit an offence and are liable on conviction to a maximum fine of $500,000 and imprisonment for 2 years. The Director-General of Trade and Industry may also take administrative actions (e.g. revocation and suspension of any exemption and/or TTRS registration granted, refusal to renew any exemption and/or registration, etc.) against the traders concerned, independent and irrespective of any prosecution actions.
Enquiries
19. For enquiries on this circular, please contact the following units of the Department:
| Unit | Telephone No. |
| Customer Service Centre | 2398 5288 |
| Textiles Import and Export Licensing | 2398 5521 |
| Production Notification (PN) | 2398 5745 |
| Certificate of Hong Kong Origin (CHKO) | 2398 5545 |
20. For enquiries on the electronic services of textiles notifications and PN, please contact Tradelink's hotline at 2917 8888.
Yours faithfully,
(Miss Kathy CHAN)
for Director-General of Trade and Industry
Note: The Department will issue another notice to confirm the exact date of implementation upon completion of the legislative process which gives effect to liberalization.
1Under normal circumstances, it takes 2 clear working days for the Department to process an amendment/cancellation request for a textiles notification.2Under normal circumstances, it takes 1.5 clear working days for the Department to process an amendment request for a PN.
3Common enquiries include whether a garment is a piece-knitted or cut-and-sewn garment, permissible limits of outward processing of cut-and-sewn garments, and product category number of a textiles product in respective overseas market.