Issued by Hong Kong Special Administrative Region Government Information Services
Garden Road, 5th-8th Floors, Murray Building,
Hong Kong. Tel: 2842 8777
Thursday, March 19, 1998
CONTENTS
========
1. Transcript of Chief Executive's media session
2. Statement by Department of Justice
3. 859 nominations received for subsector elections
4. Update on cholera
5. Manpower consultancy for travel and tourism industry
6. HK signs air services agreement with Israel
7. Partnership further strengthens postal services
8. Promoting HK's reinsurance & captive insurance business
9. Passengers reminded of new tram fares
10. Public understanding of control on optometrists enhanced
11. Value of manufacturers' orders-on-hand in January 1998
12. Three more slimming products found adulterated
13. Results of independent investigations on landslides announced
14. Trader fined for malpractice
1. Transcript of Chief Executive's media session
*********************************************
Following is the transcript (English part) of the
media session given by the Chief Executive, Mr Tung Chee
Hwa, at the airport tonight (Thursday):
Reporter: Zhu Rongji said that he saw no need to make
reassessment to what had happened in Tiananmen. Do you
think there is a need to reassess that?
Mr Tung: Well, I think I have said this many times before
that this is something that nobody wished that it had
happened. But let us look at the fact that how much the
country has progressed in the last few years in almost
every aspect. So the important thing is to look forward
as to how well we are doing as a country. And as a
Chinese, I am certainly very proud of it and I know that
all Chinese people share this pride.
End
2. Statement by Department of Justice
**********************************
A spokesman for the Secretary for Justice issued the
following statement today (Thursday):
"As we have stated since the prosecution of the three
individuals in the Hong Kong Standard case was initiated,
our decision in this case was taken entirely in accordance
with our prosecution policy. We wish to re-state certain
important points. Firstly, the Department of Justice
follows well established principles in deciding whether to
initiate a prosecution. Assuming that a prosecution is
open in law, our guiding principles are whether the
evidence is sufficient to justify a prosecution and, if it
is, whether it is in the public interest to bring a
prosecution. When deciding whether it is in the public
interest to prosecute, this Department does not consider
the personal connections or political status of any
suspect. In this particular case, these principles have
been scrupulously observed.
"Secondly, we emphasize that no special treatment was
given to any suspects. The status of any suspect or
political factors did not feature in our decision.
"Thirdly, under Article 63 of the Basic Law, the
Department of Justice controls criminal prosecutions free
from any interference. The decision in this case was
taken independently by the Department according to the
merits of the case and entirely in line with the spirit
and the letter of the Basic Law.
"Fourthly, questions have been raised by the media
and in public as to why we have only charged three persons
but not all alleged co-conspirators named in the case. It
by no means follows that those identified in any alleged
conspiracy offence are necessarily charged. This depends
very much on the particular circumstances of the case.
These can include such matters as the nature of the
evidence against any named person, whether any person is
to be a prosecution witness, whether a person is within
the jurisdiction and whether charging a person would be in
accordance with the prosecution policy as described.
"Finally, as the matter is sub judice, the Department
of Justice cannot comment on the details of the case. It
would be contrary to an important legal principle for us
to discuss the details of a case in public, when the case
is due to be adjudicated in a court of law. However, in
view of the interest which this case has aroused among the
community, following the conclusion of the case and in the
light of circumstances then pertaining, the Department of
Justice hopes that it will be able to make a public
statement on the case."
End
3. 859 nominations received for subsector elections
************************************************
A total of 249 nominations for the Election Committee
subsector elections have been received today (Monday).
This brings to 859 the total number of nominations
received since the eight-day nomination period started on
Friday (March 13).
The breakdown of nominations by subsector is:
Subsector Number of nominations Cumulated total
--------- received today ---------------
---------------------
Catering 1 19
Commercial(first) 6 9
Commercial(second) 2 12
Employers' Federation 10 10
of Hong Kong
Finance 6 9
Financial services 9 21
Hong Kong Chinese 1 11
Enterprises Association
Hotel 3 4
Import and export 2 12
Industrial(first) 1 12
Industrial(second) 3 11
Insurance 6 15
Real estate and 5 9
construction
Textiles and garment 12
Tourism 5 12
Transport 10 24
Wholesale and retail 14 19
Accountancy 4 30
Architectural, surveying 10 22
and planning
Chinese medicine 13 30
Education 7 34
Engineering 6 45
Health Services 2 2
Higher education 6 24
Information technology 6 46
Legal 9 22
Medical 11 47
Agriculture and fisheries 8 65
Labour 4 45
Religious 20 40
Social welfare 20 37
Sports 10
Performing arts 8 8
Culture 1 12
Publication 11
Chinese People's Political 9 48
Consultative Conference
Heung Yee Kuk 16 19
Provisional District 2 25
Boards for the Districts
in the Urban Council Area
("Hong Kong and Kowloon
Provisional District Boards")
Provisional District 3 16
Boards for the Districts
in the Regional Council Area
("New Territories Provisional
District Boards")
One candidate from the Accountancy Subsector and one
from the Chinese People's Political Consultative
Conference Subsector have withdrawn their nominations.
End
4. Update on cholera
*****************
The Department of Health announced today (Thursday)
two new suspected cases - one imported and one local.
The new suspected imported case involves a 27-year-
old female living in Kowloon City, who developed symptoms
of diarrhoea on March 17 after returning from Thailand.
She did not take part in any tour group.
The new suspected local case involves a 27-year-old
female living in Yuen Long. The onset of her illness was
on March 14.
These two new suspected cases are being followed up.
As of today, the total number of confirmed cholera
cases so far this year remains at 45, including 30
imported cases and 15 local cases. There are three
suspected cases, including two imported and one local
cases.
End
5. Manpower consultancy for travel and tourism industry
****************************************************
The Government today (Thursday) announced the
appointment of GML Consulting Limited and PKF Consulting
Limited, in the form of a joint venture, to carry out a
20-week consultancy study on the manpower and training
needs of the travel and tourism industry.
"This will be the first of a series of studies to be
undertaken by the Government to assess the manpower and
training needs of key service industries in Hong Kong",
the Acting Secretary for Education and Manpower,
Mr Matthew Cheung Kin-chung, said at the contract signing
ceremony for the study today.
"Such studies are important if we are to preserve our
competitiveness in the long term. The series of studies
are one of the initiatives in the 1997/98 Action Agenda
for Services Promotion endorsed by the Services Promotion
Strategy Group chaired by the Financial Secretary.
"If Hong Kong is to make the most of the benefits to
be derived from the travel and tourism industry, and to
maintain its present position as the most popular Asian
destination, then we need to ensure that the industry has
an adequate number of employees who are well equipped with
the necessary, up-to-date skills for their jobs.
"The overall objective of the consultancy study is to
recommend a coordinated manpower and training strategy for
the travel and tourism industry, which includes hotels,
airlines and travel agents/tour coordinators, as well as
related sectors such as restaurants and the tourist retail
trade.
"In addition, we shall take the opportunity to
establish how Hong Kong compares with other economies in
the region, and investigate the potential for developing
Hong Kong as the travel and tourism training centre for
the mainland, and possibly for the region", Mr Cheung
said.
End
6. HK signs air services agreement with Israel
*******************************************
The Hong Kong Special Administrative Region signed an
air services agreement with the State of Israel today
(Thursday).
The Secretary for Economic Services, Mr Stephen Ip,
signed the agreement on behalf of the HKSAR Government
while the Consul-General of Israel, Mr Zohar Raz, signed
on behalf of the Government of the State of Israel.
Mr Ip said,"The air services agreement signed today
marks a new phase in the aviation relationship between
Hong Kong and Israel. It provides a legal framework for
the further expansion of our air links.
"Acting under the authorisation of the Central
People's Government, the HKSAR Government is going to
negotiate and conclude air services agreements with more
aviation partners."
Mr Ip pointed out that the establishment of an
extensive network of air services agreements would help
strengthen Hong Kong's economic and trade ties with the
rest of the world and to maintain Hong Kong's status as a
centre of international and regional aviation.
Since El Al Israel Airlines started services to Hong
Kong in October 1994, passenger traffic on the Hong Kong-
Israel route has increased by 50 per cent, and cargo
traffic more than doubled.
The HKSAR/Israel agreement is the twenty-fifth air
services agreement signed by Hong Kong.
Hong Kong has signed similar agreements with the
Netherlands, Switzerland, Canada, Brunei, France, New
Zealand, Malaysia, Brazil, Sri Lanka, Australia, Germany,
Korea, Singapore, Italy, India, Japan, Myanmar, Thailand,
USA, the Philippines, Indonesia, UK, Pakistan and Bahrain.
End
7. Partnership further strengthens postal services
***********************************************
Hongkong Post and Singapore Post today (Thursday)
signed a Memorandum of Understanding (MOU) on the launch
of reciprocal next morning 9 am Speedpost delivery service
and on two day delivery standards for airmail services.
Effective from April 1, 1998, Speedpost documents
sent under the new 9 am Morning Delivery Service to and
from Singapore and Hong Kong will be delivered on or
before 9 am the next morning.
Senders in Hong Kong will receive confirmation from
Hongkong Post of receipt of their mail item in Singapore
by phone or by fax by 10 am the same morning. The
service, which costs only $298 extra per item, is the best
value early delivery service in town.
Commenting on the new services, Postmaster General,
Mr Robert Footman, said: "Speedy and reliable delivery
services are crucial for our customers. As the trade and
business between Hong Kong and Singapore continue to
strengthen, we foresee a tremendous growth potential for
Speedpost services between the two places."
Also with effect from April 1, the two Posts will
implement a higher service standard for airmail services.
Under the MOU, all airmail items between Hong Kong and
Singapore will be delivered on the second working day
after posting.
"We will be closely monitoring the service
performance against the new service standards and do all
we can to continue improving postal services between Hong
Kong and Singapore," Mr Footman said.
End
8. Promoting HK's reinsurance & captive insurance business
*******************************************************
The Commissioner of Insurance, Mr Alan Wong, welcomed
the Financial Secretary's incentive in the 1998/99 Budget
to promote Hong Kong's reinsurance business by offering a
concessionary profits tax rate to professional reinsurers
in respect of their offshore business.
Speaking at a press conference releasing the 1997
Annual Report of the Office of the Commissioner of
Insurance and the Office of the Registrar of Occupational
Retirement Schemes today (Thursday), Mr Wong said that the
proposal to offer a concessionary tax rate at 50 per cent
of the normal profits tax rate was one of the major
measures recommended in 1997 by the Working Group set up
to promote Hong Kong as a centre for reinsurance and
captive insurance.
Another major measure implemented in 1997 by the
Working Group was the introduction of regulatory
concessions for captive insurers.
"The Office of the Commissioner of Insurance also
implemented a series of promotional measures to coincide
with the government's initiative to encourage the
development of reinsurance and captive insurance business
in Hong Kong."
Mr Wong said that his office had produced in 1997 a
leaflet and a video promoting Hong Kong as an ideal
location for captive insurance companies.
Reporting on the performance of the insurance
industry in 1996 as disclosed in the 1997 Annual Report,
Mr Wong said that the Hong Kong insurance industry grew by
six per cent in 1996 in terms of premium income, compared
with 12 per cent in 1995.
The total gross premiums of general business and long
term business amounted to $46.4 billion in 1996,
representing about 3.9 per cent of the Hong Kong Gross
Domestic Product.
Mr Wong pointed out that the growth in 1996 was
contributed wholly by long term business which achieved a
two-digit growth of 17 per cent.
Gross premiums in respect of general business however
declined by seven per cent to $18.7 billion, after
enjoying growth for the past five consecutive years.
Except accident and health business, gross premiums in
respect of all other major classes of general business
showed a decline. Particularly, gross premiums in respect
of motor vehicle business and employees' compensation
business dropped by 18.3 per cent and 24.6 per cent
respectively.
Mr Wong said: "The negative growth of the general
business market could be the result of the slow-down of
the economy in 1996 and keen market competition."
In 1996, property damage business remained the
largest class of general business which accounted for
about 32 per cent of total gross premiums. This was
followed by general liability (which includes employees'
compensation business), motor vehicle, and accident and
health business each accounted for about 16 per cent.
Despite the decline in total gross premiums, general
business remained profitable in 1996 with an underwriting
profit of $0.6 billion.
In view of its unique operational structure and
different reporting system, statistics on the insurance
business underwritten by Lloyd's in Hong Kong are
separately shown in the Annual Report. Lloyd's carries on
only general insurance business in Hong Kong. In 1996,
Lloyd's gross premiums were $0.8 billion.
Long term business continued its growth in 1996 with
office premiums in force rising to $27.7 billion.
Individual life business continued to be the dominant
sector in terms of office premiums which increased by 18
per cent to $19.6 billion in 1996.
Mr Wong said that the number of individual life
policies in force exceeded 3.1 million at the end of 1996,
representing a coverage of about 49 per cent of the
population in Hong Kong (on the assumption that one person
holds one policy), compared with 45 per cent at the end of
1995.
Investment-linked business registered the strongest
growth of 44 per cent with the result that its share in
new individual life business increased from 24 per cent to
30 per cent.
Retirement schemes business also recorded a strong
growth rate. The number of policies rose by over 10 per
cent to 13,549, while contributions increased by 14 per
cent to $7.2 billion.
Speaking on the growth of the insurance industry for
1997, Mr Wong said that according to provisional data, it
was estimated that general business showed a marginal
growth rate of two per cent in 1997 whereas long term
business maintained its two-digit growth of 13 per cent.
At the end of February 1998, there were 214
authorised insurers operating in Hong Kong, of which 151
were general insurers, 45 were long term insurers and 18
were composite insurers. Among these insurers, 101 were
incorporated in Hong Kong and the rest in 27 different
countries led by the United Kingdom and the United States.
As regards the regulation of the retirement scheme
industry, Mr Wong, in his capacity as the Registrar of
Occupational Retirement Schemes, said that his office
focused on the monitoring of registered schemes through
examination of annual returns, audited financial
statements and actuarial certificates submitted by the
scheme administrators.
According to the annual returns and audited accounts
of registered schemes for 1996, the total asset value of
these schemes amounted to $105.1 billion; while the total
annual contributions made by employers and employees
amounted to $12.5 billion and $4.0 billion respectively.
At the end of 1997, there were 16,324 registered
schemes in Hong Kong covering 861,576 employees or 29 per
cent of the working population. The number of defined
contribution schemes increased to 15,780, representing an
increase of 10 per cent over the previous year, while
defined benefit schemes dropped to 544, a decrease of
three per cent.
The Registrar's Office has continued to work closely
with the Mandatory Provident Fund (MPF) Office on the
interface arrangements for the existing occupational
retirement schemes and the future MPF schemes.
Mr Wong said that his office had alerted insurers and
insurance brokers to the seriousness and implications of
the "Year 2000" problem. All insurers were reminded to
ensure that their computer systems would be Y2K compliant
by the end of 1998. "We shall monitor the action taken by
insurers and insurance brokers to render their computer
systems Y2K compliant by various means including
inspection visits," Mr Wong said.
The Chinese and English versions of the Report are
now on sale at the Government Publications Centre at Low
Block, Ground Floor, Queensway Government Offices, 66
Queensway, Hong Kong.
End
9. Passengers reminded of new tram fares
*************************************
The Transport Department reminds tram passengers that
a revised fare scale will be effective from this Saturday
(March 21) onwards.
The new adult fare for each single journey will be $2
while those for children will be revised to $1.
The price for a monthly ticket will be adjusted from
$135 to $170.
The fare revision was approved by the Chief Executive
in Council last month.
End
10. Public understanding of control on optometrists enhanced
********************************************************
The Optometrists Board has stepped up its publicity
efforts to help the public better understand the
implementation of the Optometrists (Registration and
Disciplinary Procedure) Regulation which provides for the
registration of and the disciplinary proceedings for
optometrists in Hong Kong.
A leaflet and a poster has been printed by the board
for wide distribution. Copies are now being distributed
to hospitals, clinics, schools, voluntary agencies,
district offices, the Hong Kong Optometric Association,
the Hong Kong Society of Professional Optometrists and all
registered optometrists.
Announcing this today (Thursday), a spokesman for the
Optometrists Board said these efforts aimed to arouse
public awareness of the registration and control of the
optometrist profession which had already been in force,
and to remind members of the public to seek the service
provided by registered optometrists for the protection of
their health.
"Registration of optometrists as stipulated in the
Regulation commenced on December 1, 1994 and from April 1,
1996 onward, no person can practise as an optometrist
without registration with the Optometrists Board," he
said.
As at March 1 this year, the number of registered
optometrists in the four parts of the register are as
follows:-
Part No. of registrants
---- ------------------
I 293
II 331
III 105
IV 1,155
-----------------------------------------
Total 1,884
"Under the Supplementary Medical Professions
Ordinance, a person who practises the optometrists'
profession without being registered commits an offence,"
the spokesman said.
"A person commits an offence if he employs another
person to practise the optometrists' profession when the
latter is not so registered. Any information on illegal
practice of the optometrists' profession should be
reported to the Police for investigation or the
Optometrists Board for referral action."
The spokesman said the Optometrists Board had
prepared a Code of Practice prescribing the standards of
conduct and practice and regulating the activities of
optometrists.
This Code of Practice has been issued to all
registered optometrists for compliance.
"Any registered optometrists contravening the Code of
Practice may be subject to inquiries by the Optometrists
Board. Such cases or any other cases of professional
misconduct may be referred to the Optometrists Board for
investigation and necessary inquiry," he added.
Enquiries about the registration and control of
optometrists in Hong Kong can be made to the secretariat
of the Optometrists Board, second floor, Shun Feng
International Centre, 182 Queen's Road East, Wan Chai.
The telephone number is 2527 8363.
End
11. Value of manufacturers' orders-on-hand in January 1998
******************************************************
The value of manufacturers' orders-on-hand for local
production in January 1998 decreased by 11% over a year
earlier, according to the provisional results of a monthly
survey released today (Thursday) by the Census and
Statistics Department.
Comparing January 1998 with January 1997, decreases
in the value of orders were recorded in the plastic
products industry (-25%), the electrical products industry
(-19%), the fabricated metal products industry (-14%), the
electronic products industry (-12%), the wearing apparel
industry (-10%) and the textiles industry (-7%).
However, increase in the value of orders was recorded
in the printing & publishing industry (+2%).
Compared with December 1997, and bearing in mind that
this comparison may be affected by seasonal factors, the
value of manufacturers' orders-on-hand in January 1998
increased by 2%.
A Government Secretariat spokesman noted that, in
face of the financial instability in the region and
relatively modest performance in some of the overseas
markets, importers had tended to place shorter and smaller
orders in recent months. This could have affected the
changes as depicted in the orders position.
The Monthly Survey of Orders-on-hand covers a sample
of some 300 manufacturing firms engaging 50 or more
workers.
Manufacturers' orders-on-hand refer to orders and
parts of orders received earlier by manufacturers for
local production which remain unfilled as at the end of
the reference month. Orders received by traders not
engaged in production are included if such orders are
further placed to manufacturers for production locally.
However, orders placed to manufacturing firms for
production in the mainland of China and other places
outside Hong Kong are not included in this series of
orders-on-hand statistics.
A spokesman of the Census and Statistics Department
pointed out that caution should be exercised in
interpreting the manufacturers' orders-on-hand figures in
a single month. Instead, the trend movement of the series
as displayed over a wider span of time points should be
looked at.
The survey report for January 1998, at $9 a copy, is
now available for sale at the Government Publications
Centre, Queensway Government Offices, Low Block, ground
floor, Queensway, and at the Census and Statistics
Department Publications Unit, 19th Floor, Wanchai Tower,
12 Harbour Road, Wan Chai.
Enquiries about the survey results may be made to the
Industrial Production Statistics Section of the Census and
Statistics Department on 2805 6441.
The following table shows the year-on-year percentage
changes in the value of orders-on-hand in different
manufacturing industries.
Percentage changes in the value of
orders-on-hand in
December 1997 January 1998
over December 1996 over January 1997
------------------ -----------------
(Revised) (Provisional)
All industries covered -7 -11
in the survey
- Wearing apparel -6 -10
- Textiles -4 -7
- Electronic products -8 -12
- Electrical products -15 -19
- Fabricated metal products -13 -14
- Plastic products -15 -25
- Printing and publishing +12 +2
End
12. Three more slimming products found adulterated
**********************************************
The Department of Health has found three more
slimming products, labelled as Chinese medicine, to
contain a de-registered Western medicine, fenfluramine, it
was announced today (Thursday).
The three slimming products are Trim-Right Rapid
Reduce Fat Pills, Youthening Slenderin Capsule and Su Xiao
Fei Ying Yang Su. The first was also found to contain
ephedrine while the second and third also contained
amfepramone. Both ephedrine and amfepramone are western
medicines.
These have brought the total number of illegal
slimming products containing fenfluramine to 12 since the
first was discovered last December.
Fenfluramine is reported to be associated with heart
disease. The Pharmacy and Poisons Board has de-registered
all products containing it with effect from January this
year.
The department's Assistant Director (Special Health
Service), Dr W M Chan, advised the public not to buy and
use these three slimming products and consult their
doctors for advice.
Dr Chan said: "Acting upon complaints, the department
tested these three products and found that they contained
fenfluramine.
"Follow-up investigations revealed that the first
product was manufactured locally, using illegally imported
drug ingredients. About 200 tablets found in the
manufacturer's premises have been seized with additional
three boxes recalled by the wholesaler.
"The second and third products were found to be
illegally imported and marketed by direct sale.
Investigation is continuing to trace the importer and the
salesmen involved.
"Department staff have been visiting beauty parlours.
So far, no such slimming products have been found."
Retailers who are in possession of the three slimming
products are urged to refrain from selling them and
surrender them to the Department's Pharmaceutical
Services, 18th floor, Wu Chung House, 213, Queen's Road
East, Wan Chai.
Dr Chan appealed to the public and operators of
beauty parlours to contact the Department's Pharmaceutical
Services Complaint Hotline on 2572 2068 during office
hours if they encounter slimming products of doubtful
origin.
She said as the first was found to be a locally
manufactured product, the Department had issued letters to
all registered drug manufacturers in Hong Kong to remind
them to abide by the Pharmacy and Poisons Ordinance.
Under the Pharmacy and Poisons Ordinance, the
possession and sale of unregistered pharmaceutical
products is an offence liable to a maximum penalty of
$100,000 and two years' imprisonment.
End
13. Results of independent investigations on landslides announced
*************************************************************
Significant rise in ground water pressure following
very heavy rainfall was blamed for the landslides at Kau
Wah Keng and the Ten Thousand Buddhas' Monastery last
year.
Results of independent investigations into the two
fatal incidents were announced by the Geotechnical
Engineering Office (GEO) of the Civil Engineering
Department today (Thursday).
The incident at Kau Wah Keng Upper Village on June 4
last year caused damage to an isolated hillside hut,
killing one person and injuring five others.
"Following this, the GEO carried out an exercise to
inspect other huts in isolated conditions. More than 600
similar huts in various parts of the territory have been
inspected, of which 43 will be recommended for clearance,"
a GEO spokesman noted.
"On the landslide at the Ten Thousand Buddhas'
Monastery on July 2 last year, the consultants also found
sub-standard design and the lack of maintenance of the cut
slope had probably contributed to local progressive slope
deterioration," the spokesman said.
The Buildings Department (BD) has since issued two
Dangerous Hillside Orders to the owner and the entire
monastery is still closed under the Orders.
"The Authorised Person employed by the owner has
recently proposed some slope repair works to BD to
facilitate the re-opening of part of the monastery
adjacent to and including the Main Temple," the spokesman
said.
"The works have been approved and are expected to
commence in April. The monastery is not suitable for use
or occupation until such works are completed to the
satisfaction of the BD," he noted.
Both investigations were carried out by Halcrow Asia
Partnership. Key tasks included the following:
* review of all known relevant documents relating to
the development;
* analysis of rainfall records;
* topographical surveys and detailed observations
and measurements on site;
* geological mapping;
* ground investigations and laboratory testing;
* theoretical analysis of the slopes; and
* diagnosis of the probable causes of the failure.
Copies of the investigation reports in Chinese and
English are available free of charge at the Civil
Engineering Library, Civil Engineering Building, 101
Princess Margaret Road, Ho Man Tin.
End
14. Trader fined for malpractice
****************************
A spokesman for the Customs and Excise Department
said today (Thursday) that it is a serious offence to
furnish false information for certificate of origin-
processing application.
The warning was given after a watch trader was fined
$300,000 at Kwun Tong Magistracy today after pleading
guilty to one count of making false inforamtion in an
application for certificate of origin-processing regarding
the place of assembly work of the goods.
A watch processor was also fined $10,000 for
furnishing to the trader a signed but blank certificate of
origin-processing application.
The goods involved were 57,275 quartz analogue
watches valued more than $1.1 million for export to
Argentina.
The court heard that in October 1996,Herofame
Industrial Limited submitted an application for
certificate of origin-processing to the Hong Kong General
Chamber of Commerce covering 57,275 quartz analogue
watches for export to Argentina. In the application, it
furnished the information that the assembly work of the
component parts into completed watches was carried out at
the registered factory premises of a Cotronic World Time
Company in Hong Kong.
However, investigations by officers of the Customs
and Excise Department revealed that the assembly work of
the goods in question was in fact done by a factory in
China.
Further investigations revealed that the proprietor
of Cotronic World Time Company had furnished a signed but
blank application form to Herofame in obtaining the
certificate.
The spokesman stressed that the department would step
up enforcement actions to track down such malpractice to
protect the commercial reputation of Hong Kong and to
ensure that the confidence of its trading partners in Hong
Kong's certification control system would not be
undermined by some dishonest businessmen.
The maximum penalty for furnishing false information
in an application for certificate of origin-processing is
a fine of $500,000 and two years' imprisonment.
Members of the public having information on such
malpractice could call the Customs hotline 2804 2388.
End