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Following is the full text of a speech by the acting Secretary for Commerce and Industry, Miss Yvonne Choi, in moving the second reading of the Dutiable Commodities (Amendment) Bill 2001 in the Legislative Council today (February 28):

Madam President,

I move that the Dutiable Commodities (Amendment) Bill 2001 be read the second time.

At present, the Dutiable Commodities Ordinance stipulates that applications for dutiable commodities permits (DCP) must be made on paper. We propose to amend the Ordinance to provide the legal basis for using the Electronic Data Interchange (EDI) service to process DCP applications. Using EDI services to process DCP applications would have a number of benefits. These include reducing paperwork, improving efficiency and promoting the wider use of e-commerce in Hong Kong.

With the approval of funds by the Legislative Council in 1999, we have been developing the EDI system for processing DCPs. When the system commences operation in June this year, applicants can apply for DCP permits electronically through the service of Tradelink Electronic Commerce Ltd. The service is provided by Tradelink in accordance with a franchise agreement signed with the Government in 1992.

The Government and Tradelink have consulted the industry on the EDI services for processing DCPs and secured their support. The Legislative Council Panel on Commerce and Industry also supports the introduction of the Bill.

To ensure a smooth migration, we will provide a transitional period whereby applications for DCPs may be made in either paper or electronic mode.

We will organise publicity measures to alert the industry to the impending changes. These measures include setting up enquiry counters at the Customs and Excise Department's DCP offices, displaying messages at websites, and sending letters to the industry and relevant business associations. These measures proved effective when we launched the EDI services for other documents in the past.

Thank you, Madam President.

End/Wednesday, February 28, 2001

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