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A spokesman for the Customs and Excise Department today (Friday) reminded garment manufacturers that making false statement in application for Textile Export Licence is a serious offence.

"The Department takes a serious view of textiles origin fraud cases, and continues to take vigorously actions to combat the illicit textiles transshipment to uphold the integrity of the Textiles Export Control System," the spokesman stressed.

Under the Import and Export Ordinance, the maximum penalty for the offence is a fine of $500,000 and imprisonment for two years, he warned.

The warning was given by the spokesman after a local factory was allegedly found in breach of the ordinance for intending to export about $130,000 worth of garments overseas under Hong Kong textiles quota.

"The textiles fraud case came to Customs notice on Wednesday when Customs officers conducted a surprise visit to the factory in Tsuen Wan," he added.

It was known that part of the manufacturing process of the garments was actually made in the Mainland, he noted.

According to the prevalent origin rule, the joining of cut-pieces is not permitted outside Hong Kong. As a result, the garments are not eligible for claiming as Hong Kong origin.

On anti-illegal textile transshipment front, the Customs and Excise Department last year conducted 34 146 consignment checks, 3 257 consignment and factory inspections, 130 factory audit checks as well as carried out 96 blitz checks at land boundary control points and cargo handling basins.

As a result, 750 manufacturers and exporters were charged with offences relating to illegal transshipment of textiles and clothing and $82 million worth of offending goods were seized.

End/Friday, January 28, 2000

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