***********************************************

Hong Kong is aimed at developing a one-stop Customs cargo clearance facility for all intermodal transshipment cargo.

This was said today (September 29) by the Commissioner of Customs and Excise, Mr John Tsang Chun-wah, when attending the International Air Cargo Forum 2000 in Washington.

At the forum, Mr Tsang delivered a talk on Customs and the Air Cargo Industry to share views with international experts from different sectors of the air cargo industry some key measures being implemented at the Hong Kong International Airport to facilitate the movement of cargo.

"The traditional role of Customs as enforcement agency has expanded. We are emerging prominently as a business partner to industry players in the cargo processing chain," Mr Tsang said.

"We in Hong Kong are fully committed to building and maintaining this strategic partnership with the industry in order to reinforce Hong Kong's status as an international air transportation hub. We are helping to maintain the competitive edge of the local industry through the provision of first-class service to our customers worldwide."

"At the same time, we are still forever mindful of the traditional role as the law enforcement agency with a specific control responsibility," he said.

Mr Tsang, apart from outlining how Hong Kong was realising her potential as a cargo hub and challenges ahead, said performance pledge, Memorandum of Understanding (MOU) and the establishment of an air cargo customer liaison group were measures being taken by the Hong Kong Customs in building up a strategic partnership with the air cargo industry.

He explained that through the setting of a system of performance pledges, layers of quality service had been built on top of the traditional concept of enforcement.

"Our performance pledges in air cargo processing cover two principal areas of work," he noted.

One area concerns cargo data processing in which the Hong Kong Customs pledge to inform airlines what customs action is required on individual consignments within 45 minutes of the receipt of flight manifests.

"For consignments which require customs inspection, we pledge to complete an examination within 80 minutes of receipt of the cargo with proper documentation," he added.

Mr Tsang said those performance targets were subject to continuous reviews, adding that the system of performance pledges had so far proved to be and effective management tool.

Another example of how Hong Kong Customs had built up the strategic partnership was the operation of the MOU between Customs and individual cargo operators in the airport, he went on.

"Signed at the inauguration of our new airport at Chek Lap Kok in 1998, it was basically an agreement to co-operate on a common platform in air cargo clearance. The MOU states as a common objective for Customs and the cargo operators that we shall seek to develop ways to achieve a balance between effective control and trade facilitation," he elaborated.

Under the MOU, Customs would develop clear operational guidelines for the cargo operators to follow for the purposes of transparency and compliance, Mr Tsang said.

He noted that the signing of the MOU demonstrated further the commitment of both parties towards mutual co-operation and the level of importance they attached to establishing a strategic partnership between them.

Mr Tsang pointed out that the third example of how they had built up the strategic partnership was the Air Cargo Customer Liaison Group that had been set up since 1992 as a dedicated channel to promote the spirit of co-operation.

The Group, which provided a regular forum for Customs senior staff to meet and discuss face to face with those from the industry, has proved to be an effective means in fostering the strategic partnership with the industry players, including air carriers terminal operators, express operators and freight forwarders.

Looking forward, Mr Tsang said, one of the big challenges ahead was the expansion of new facilitative arrangement for air transshipment cargo to include other modes of transshipment cargo.

"We have begun discussing with individual cargo operators in formulating operative arrangements for the efficient movement of air cargo on transshipment to and from the southern part of Mainland China through the sea route or via the land border."

"Under this concept which we have labelled 'the bonded expressway', transshipment cargo after arrival by air would be cleared in the usual way and put on dedicated trucks or vessels right at the airport and conveyed to Mainland destinations within the shortest possible timeframe."

"The reverse cycle runs in a similar way for Mainland export cargo coming to Hong Kong to take advantage of the sophisticated air connection network in our first-class international airport, widening the opportunity for more cargo to be transshipped thought Hong Kong," Mr Tsang added.

He said Hong Kong Customs would give full support to these initiatives and design corresponding facilitating arrangements with the cooperation of the individual operators concerned.

"We would aim to implement our check just once and avoid having the cargo subject to multiple Customs formalities during different stages of import and export through different Customs checkpoints," Mr Tsang said.

"This is only the start. Our ultimate goal is to develop a one-stop Customs cargo clearance facility for all intermodal transshipment cargo," he noted.

Mr Tsang, in conclusion, gave assurance that Hong Kong Customs would stand ready as a close partner with international experts in striving towards the long-term objective of the air cargo industry.

End/Friday, September 29, 2000

NNNN