The Government published in the Gazette today (Friday) the commencement notice for the provisions of the Electronic Transactions Ordinance which give legal recognition to the use of electronic records and digital signatures. Subject to negative vetting of the notice by the Legislative Council, the Government will take the lead in accepting electronic submission under law commencing from 7 April 2000.

The Government will accept electronic submission under the bulk of the statutory provisions in the laws of Hong Kong. Examples are -

* the submission of tax return, notification of change of correspondence and correspondence on application for hold-over of provisional tax, objection, etc. to the Inland Revenue Department under the Inland Revenue Ordinance;

* notification of change in business registration particulars and cessation of business to the Inland Revenue Department under the Business Registration Ordinance;

* notification of change of personal particulars submitted in an application for a Hong Kong identity card to the Immigration Department under the Registration of Persons Regulations;

* the making of proposals and objections against rates and Government rent assessment by ratepayers and rentpayers to the Rating and Valuation Department under the Rating Ordinance and the Government Rent (Assessment and Collection) Ordinance;

* notification to the Commissioner for Labour in respect of industrial process and operation and construction work under the Factories and Industrial Undertakings Ordinance;

* notification to the Commissioner of Labour of any work accidents for the purpose of claiming employees' compensation under the Employees' Compensation Ordinance;

* serving of various types of notices by authorised institutions to the Hong Kong Monetary Authority under the Banking Ordinance;

* applications for the issue of licence/certificate of exemption in respect of a residential care home for the elderly to the Social Welfare Department under the Residential Care Homes (Elderly Persons) Ordinance;

* application for licence for manufacture or storage of dangerous goods to the Fire Services Department under the Dangerous Goods Ordinance;

* notification of claim for goods seized by the Customs and Excise Department under the Import and Export Ordinance, the Dutiable Commodities Ordinance or the Copyright Ordinance;

* application for permit/licence for the importation, exportation or transhipment of chemicals used for the manufacturing of narcotic drugs or psychotropic substances to the Customs and Excise Department under the Control of Chemicals Ordinance; or

* submission of an account of receipts and payments by a liquidator of a company which is being wound up by the court to the Official Receiver under the Companies Ordinance.

The Electronic Transactions Ordinance was passed by the Legislative Council on January 5 this year. Sections 5-8 concern the submission and retention of information in the form of electronic records and the use of digital signatures.

The Government also published in the Gazette today (Friday) two orders which seek to exempt a list of statutory provisions and the proceedings of some statutory bodies which exercise quasi judicial functions from the application of sections 5-8 of the Electronic Transactions Ordinance. These statutory provisions and bodies are respectively set out in the Electronic Transactions (Exclusion) Order and the Electronic Transactions Ordinance (Amendment of Schedule 2) Order 2000 gazetted today.

"It is Government's policy objective to promote the wider adoption of electronic transactions in Hong Kong so as to foster the development of electronic commerce. Government departments may not, however, be able to accept electronic information under some statutory provisions because of operational, technological or other reasons." a spokesman for the Information Technology and Broadcasting Bureau said.

The spokesman noted that after a thorough examination and consultation process within the Government, it was identified that 195 statutory provisions in respect of 39 Ordinances (out of a total of around 650 Ordinances in the laws of Hong Kong) and one Order would need to be exempt in order to ensure that the concerned Government departments would be able to continue to operate smoothly.

These statutory provisions are excluded :

* due to the solemnity of the matter or document involved, i.e. provisions concerning the electoral process;

* on operational grounds, e.g. provisions concerning the production of documents to Government authorities on the spot;

* due to the involvement of voluminous submissions and complex plans which would be difficult to handle electronically, e.g. provisions concerning submission of documents and plans to the works departments;

* because of international practices, e.g. provisions concerning documents to be kept by the flight crew for air navigation purposes; and

* to ensure that Government would be able to meet its contractual obligations, e.g. provisions on the submission of trade-related documents which concern the franchise of the Tradelink.

In examining the statutory provisions in the laws of Hong Kong, the Government has also identified 28 statutory bodies which exercise quasi judicial functions and which for the time being have practical and operational difficulty in accepting electronic submission in their proceedings under their respective legislation.

In order not to affect the operation of these statutory bodies, the Government considers it appropriate to exclude them from the application of sections 5-8 of the Electronic Transactions Ordinance for the time being, as in the case of all judicial proceedings which are already exempt under the Ordinance.

"Following the enactment of the two orders, we will periodically review the statutory provisions excluded in consultation with the concerned bureaux and departments to examine when the exclusion can be withdrawn. For example, with the launching of the Electronic Service Delivery scheme in October which will cover voter registration, we can withdraw the exclusion of electoral provisions on voter registration," the spokesman explained.

"We will also ask the statutory bodies exempt to review their operations and to encourage them to accept electronic submission in their proceedings as soon as possible," the spokesman added.

The two orders are subsidiary legislation and are subject to negative vetting by the Legislative Council.

END/Friday, March 3, 2000

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