***********************************************
Economic links between the Mainland and Hong Kong will further strengthen with the implementation of second phase of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) tomorrow (January 1).
"With CEPA II coming into effect tomorrow, Hong Kong origin products covered in 1,108 Mainland 2005 tariff codes (previously 1,087 items according to the 2004 classification) may enter the Mainland tariff free. For trade in services, Hong Kong service suppliers will gain preferential access to the Mainland market in 26 service areas," a Trade and Industry Department (TID) spokesman said.
Further trade liberalisation under CEPA II was agreed on August 27, 2004, just over eight months after the full implementation of the first phase of CEPA on January 1 this year. So far, CEPA has been running smoothly. Applications for CEPA Certificates of Origin, or CO(CEPA), and Certificates of Hong Kong Service Supplier (HKSS) are increasing steadily. The TID has also started receiving applications for CO(CEPA) and HKSS under CEPA II.
"Of the 712 applications for HKSS received, 663 have been approved while 2,991 certificates out of the 3,199 applications for CO(CEPA)have been issued, involving goods with a total value of about $1,145 million," the spokesman said.
The TID has initiated various supporting measures to help Hong Kong traders realise the potential of CEPA.
Free one-stop enquiry and certification services are offered to Hong Kong companies to help them gain access to the Mainland market. The TID, with five other Government Approved Certification Organisations (GACO)s, issue CO(CEPA)s to Hong Kong products for obtaining zero-tariff benefits under CEPA. The TID has been all along able to meet its performance pledge of processing a HKSS application within 14 working days and approving an application for a CO(CEPA) within 1.5 working days.
A special CEPA website (www.tid.gov.hk/english/cepa/) was launched to disseminate CEPA-related information to help Hong Kong investors understand more about the investment environment and market opportunities in the Mainland, and about the application and approval procedures. Updated laws and regulations from relevant Mainland authorities are available on the website which is hyperlinked to some 170 government, trade and investment websites in the Mainland. A total of 182 commercial and information circulars containing Mainland business and trade investment details were issued in 2004 and uploaded onto the website. Hotlines and email services were set up to answer questions.
"Publicity about CEPA is a priority area of the TID's work. Over the past year, our colleagues organised or participated in numerous seminars, briefings and workshops to brief Hong Kong business communities about the content of CEPA and its implementation details. Mainland officials responsible for CEPA were invited to join the sessions to take questions direct from Hong Kong companies," the spokesman said.
The TID operates four funding schemes for small and medium enterprises. Among the benefits for Hong Kong firms are that they can make use of the schemes to secure financing to buy equipment to produce zero-tariff goods, they can hold trade fairs and exhibitions to promote their business in the Mainland and they can take courses about the opening-up of the Mainland market.
"We will continue to proactively liaise with the business and professional communities to understand their needs and discuss with them appropriate policy measures that may help them. Liaison and co-operation between the two governments will be stepped up through the Joint Steering Committee and the Liaison Office mechanisms under CEPA to discuss and resolve issues arising at the implementation stage," the spokesman added.
CEPA is a continuous arrangement and adopts a building-block approach which provides a mechanism for further liberalisation measures. Starting from tomorrow, the TID will accept applications from local manufacturers wishing to include their goods in the next phase of zero tariffs under CEPA.
Ends/Friday, December 31, 2004
NNNN
