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Following is a speech by the Secretary for Trade and Industry, Mr CHAU Tak Hay, in moving a motion on the Import and Export (Registration) (Amendment) Regulation 1998 in the Legislative Council today (Wednesday) :

Madam President,

I move the motion which has been printed on the Agenda, namely "That the Import and Export (Registration) (Amendment) Regulation 1998, made by the Chief Executive in Council on 21 July 1998, be approved."

The purpose of this resolution is to reduce declaration charges for imports and domestic exports specified in the Import and Export (Registration) Regulations under the Import and Export Ordinance.

The Government announced on 22 June a package of measures to facilitate economic adjustment of Hong Kong. One of the measures is to reduce trade declaration charges for imports of non-food items from 0.035% to 0.025% of value and that for domestic exports from 0.05% to 0.025% of value with effect from 1 August 1998. The charge on food imports will continue to be kept at the flat rate of $13 per declaration.

The proposal would have the effect of reducing the Government's subvention to the Trade Development Council, which has historically been calculated by reference to the net yield from trade declaration charges on imports and domestic exports. The TDC fully supports the proposed reduction in trade declaration charges as a move to help ease business costs and, having regard to its projected income and expenditure and its substantial reserve, it has also agreed to the corresponding reduction of Government subvention.

The proposed reduction of declaration charges on imports and domestic exports, intended to take effect on 1 August 1998, should be welcomed by the business sector as a concrete step to help ease business costs. The savings to importers and exporters are estimated to be about $130 million in 1998-99 and about $200 million on a full-year basis.

Madam President, I beg to move.

End/Wednesday, July 29, 1998

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