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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: EIC 611/1/5

14 February 2019

Dear Sirs,

Commercial Information Circular No. 133/2019

Notice to Exporters : Series 2 (EU) No. 3/2019

Textiles Trader Registration Circular No. 3/2019

Cambodia : The European Commission's Initiation of Procedure for Temporary Withdrawal of Tariff Preferences provided to Cambodia

According to the Official Journal of the European Union ("EU") published on 12 February 2019 (2019/C 55/07), the European Commission ("Commission") decided to initiate the procedure for temporary withdrawal of tariff preferences granted under the Everything But Arms ("EBA") trade scheme for Cambodia over concerns related to human and labour rights violations. The Commission will conclude the procedure and make a decision on whether or not to withdraw the tariff preferences within a period of 12 months. Any withdrawal would come into effect after a further six-month period.

DETAILS

2.Under the EBA arrangement, the EU grants unilaterally duty free and quota free access to its single market for all products - except arms and ammunition - to all the States classified by the United Nations ("UN") as Least Developed Countries, including, amongst others, Cambodia. The access to this arrangement is conditional upon the beneficiary country respecting the principles of 15 core UN and International Labour Organisation Conventions on human rights and labour rights.

3.Following the EU Foreign Affairs Council Conclusions in February 2018 and subsequent investigations, the Commission decided to launch the temporary withdrawal procedure. The gist of the procedure is summarized below:

  1. Following the publication of the Commission's decision in the Official Journal, there will be a six-month official monitoring and evaluation period. During this period, the Commission will engage with the Cambodian authorities and seek all information it considers necessary.
  2. Within three months from the expiry of the monitoring and evaluation period, the Commission will submit a report on its findings and conclusions to Cambodia. Cambodia has the right to submit its comments on the report within one month.
  3. The Commission shall then decide to either terminate the temporary withdrawal procedure or temporarily withdraw tariff preferences provided under the preferential arrangements. Any withdrawal of tariff preferences would come into effect after a further six-month grace period.

The procedure will be concluded within 12 months from the publication of the Commission's decision in the Official Journal on 12 February 2019.

4.According to the EU's information, 95.7% of Cambodia's exports to the EU single market benefited from the EBA tariff preferences in 2018 (i.e. EUR 4.7 billion out of EUR 4.9 billion in total).

5.For details of the Commission's decision, please refer to the Official Journal of the EU published on 12 February 2019 (2019/C 55/07) available at https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:JOC_2019_055_R_0007&from=EN (pdf format).

ENQUIRIES

6.For enquiries concerning the content of this circular, please contact us on 2398 5594.

Yours faithfully,

(Miss Serena YUEN)
for Director-General of Trade and Industry

Note: While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.