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The first consignment of goods of Hong Kong origin claiming zero tariffs under Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) were imported to the Mainland without a hitch this morning (January 7). This signifies the successful implementation of liberalization measures for trade in goods under CEPA.
The first batch of goods consisting of 310,000 copies of Hong Kong manufactured compact discs went through Huanggang Customs in the Mainland around 10.45 am today after clearance by Hong Kong Customs in Lok Ma Chau Control Point.
"We are delighted to see that the first batch of Hong Kong products claiming zero tariffs went through Customs of Hong Kong and the Mainland smoothly. We have worked closely with the Mainland Customs and Hong Kong Customs over the past few months to ensure that everything go right on day one," a spokesman for Trade and Industry Department (TID) said.
Under CEPA, Hong Kong-origin goods imported into the Mainland must fulfill CEPA rules of origin and be accompanied by a CO(CEPA) issued by TID or one of the five Government approved Certification Organisations (GACOs) in order to enjoy zero tariff treatment.
Application for CO(CEPA) for the first consignment of goods obtaining zero tariffs under CEPA was approved on January 5, just two days after receiving the application. Information on the CO(CEPA) was immediately transmitted to the Mainland Customs through electronic means by TID to facilitate verification at the port of entry. The goods subsequently crossed the border today and were granted zero tariff after the information was verified to be in order.
"As at yesterday, 47 applications for CO(CEPA) have been received since December 30, 2003. Thirty-three applications have been approved. We expect more and more Hong Kong products eligible for zero tariff under CEPA to pass through the border in the future. With the concerted efforts from various parties in Hong Kong and the Mainland, we are confident that CEPA will be implemented effectively and smoothly", the spokesman said.
"Besides performing its role in issuing and verifying CO(CEPA), TID also works with Hong Kong Customs to ensure that the goods claiming zero tariffs can be imported into the Mainland without delay, whilst at the same time avoid any malpractice related to CEPA," the spokesman added.
Hong Kong Customs plays dual roles in relation to CEPA - efficiently facilitating Customs clearance of all goods eligible for zero tariff on one hand, and effectively deterring any abuse of CO(CEPA) on the other.
It has pledged to do its utmost to ensure that the control system for trade in goods is implemented effectively.
The control system, jointly operated by Hong Kong Customs and the TID, covers certification, factory registration and inspection, consignment checks, costing checks, investigation, and blitz checks.
To deter origin misrepresentation, Hong Kong Customs will deploy manpower to conduct consignment checks to ascertain that the origin conferring processes of the goods covered by the application are carried out in the applicant's factory as declared. Besides, Hong Kong Customs will conduct costing checks on those goods of which the origins are determined in terms of costing criteria.
Apart from conducting in-depth investigations into suspected cases of origin misrepresentation detected in the course of consignment checks or costing checks, Hong Kong Customs will carry out blitz checks at control points based on risk management.
Fifty-nine staff members (52 Trade Controls Officer Grade and seven General Grade) of the Hong Kong Customs are helping the implementation of the control system.
Ends/Wednesday, January 7, 2004
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