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Ref : TRA CR 1308

8 March 2006

Dear Sirs,

Commercial Information Circular No. 84/2006

Notice to Exporters: Series 2 (EU) No. 4/2006

Certificate of Origin Circular No. 3/2006

Certificate of Hong Kong Origin Requirements for Textiles Exports to the European Union

This circular informs the trade of the modified Certificate of Hong Kong Origin (CO) and Outward Processing Arrangement (OPA) requirements for exports of shirts and blouses to the European Union (EU) with effect from 16 April 2006.

CO Requirement for Export of Shirts and Blouses to the EU

2. Under the EU proof of origin requirement as promulgated in Commercial Information Circular No. 316/2004 cum Notice to Exporters : Series 2 (EU) No. 37/2004 dated 13 December 2004 and Commercial Information Circular No. 52/2005 cum Notice to Exporters : Series 2 (EU) No. 3/2005 dated 16 February 2005, both the certificate of origin and the declaration of origin, as appropriate, may be accepted by the EU authorities only if the products concerned comply with the EU origin rules as laid down in the EU regulations in force. The prevailing EU origin rules for textile products are appended (pdf format) for traders' easy reference.
    
3. Having regard to the EU's origin rules, the Department will implement the following modified CO requirements with effect from 16 April 2006 for exports of shirts and blouses to the EU market. Traders should make advance planning and preparations to ensure that they comply with the new requirements set out below.

(a) CO

4. For a CO application covering export of shirts or blouses to the EU, the manufacturer concerned must ensure that for shirts or blouses with collars and/or cuffs, the attachment of the collars and/or cuffs, as the case may be, must be carried out in Hong Kong. If attachment of the collars and/or cuffs is performed by a subcontractor, the manufacturer must ensure that such process is carried out in Hong Kong. The manufacturer concerned is required to make a declaration in the "Special Declaration" box of the CO application as below :

" I have read and understood, and agree to abide by the Certificate of Hong Kong Origin and Outward Processing Arrangement requirements for export of shirts and blouses to the EU as set out in Certificate of Origin Circular No. 3/2006 dated 8 March 2006. "

5. CO applications lodged on or after 16 April 2006 covering shirts or blouses for export to the EU without the requisite declaration above will not be approved.

(b) OPA

6. The OPA allows manufacturers to perform subsidiary manufacturing processes outside Hong Kong without affecting the Hong Kong origin status of the finished goods concerned. In view of the modified CO requirement mentioned in paragraph 4 above, the scope of OPA will need to be modified accordingly. With effect from 16 April 2006, the manufacturing processes of attaching collar to the body of a shirt or blouse and attaching cuffs to the sleeves of a shirt or blouse will not be allowed to be done outside Hong Kong if the shirt or blouse is intended for export to the EU.

Reminder

7. Traders are reminded again that the overseas customs authorities may at times require additional proof of origin and other documentation to verify the origin claim on imports of goods. To avoid delays in customs clearance or any hold-up shipments at the importing end, traders are reminded to observe the certificate of origin and the declaration of origin requirement, as appropriate, as set out in paragraph 2 above, and to keep proper documentation to substantiate the origin claim. Traders are also reminded to find out from their overseas buyers and the importing end authorities any other specific requirements they need to observe before exporting their goods from Hong Kong, including but not limited to origin rules of the importing country and origin labeling requirements.

Enquiries

8. If you require further information on this subject, please contact the following offices:

Yours faithfully,

(Thomas LI)

for Director-General of Trade and Industry