HKGCC Annual Report 2003

Chamber Annual Report 2003

Certification Division

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Mainland and Hong Kong trade & customs officials, together with the Chamber's Senior Director, Certification, WS Chan (right), received the first historic shipment to China tariff free under CEPA on January 7, 2004. The shipment, by a HKGCC member, was covered by a Chamber CO.

The Certification Division provides quality and efficient certificate of origin (CO) and electronic trade documentation services at various rates to Chamber members and non-members. It operates six offices throughout the Hong Kong SAR to ensure easy access to its services by all prospective clients.

Satisfactory Result

The year under review was a busy year for the division. During the year, the Chamber processed and issued 706,213 trade documents, which included 222,062 certificates of origin, 476,371 import and export trade declarations (TDEC), 5,950 restrained textile licences (RTEL) and 1,830 production notifications (PN). The total number of documents processed dropped 6 percent compared with the CO processing time continues to be shortened to provide faster service to all members. figure of 752,060 processed in 2002. With this decrease in workload, the headcount of the division was further reduced from 70 to 65.

The Chamber's smartcard payment system has been well received as a substitute for cumbersome cash payment. By the end of the year, over 860 smartcards had been issued. Over 30 percent of all CO transactions were conducted through the smartcard payment system. CO processing time including the time required for CO correction process has also been further reduced and the Chamber now provides an expeditious service in all its certification branch offices which are strategically located in Hong Kong, Kowloon and the New Territories. Certification Division staff members worked hard to make themselves more cost-effective while continuing to provide a superior service to all members and non-members.

CEPA CO

Under the Mainland / Hong Kong Closer Economic Partnership Arrangement (CEPA), the Mainland applied zero import tariffs from January 1, 2004, for goods in 374 Mainland 2004 tariff codes originating in Hong Kong. Consignments claiming CEPA tariff preference must be supported by a Certificate of Origin (CEPA) issued by the Hong Kong General Chamber of Commerce, or one of the government approved certification organizations. The division held three seminars in December 2003 to help members understand the CEPA rules of origin, product coverage in the first year and CEPA CO application procedures.

Certification Coordination

Certification policy and issues are mainly dealt with by the Certification Coordination Committee on which the Chamber is represented by WS Chan, Senior Director, Certification Division. During the year, the committee held four meetings to discuss origin rules and implementation arrangements for the issue of CEPA certificates of origin.

Investigation

To uphold the integrity of the certification system, over 3,348 consignment checks on certificate applications were made in 2003. As a result, 14 applications were refused and 267 certificates of origin were referred to the Trade Investigation Bureau of the Customs and Excise Department for further investigation and prosecution.

ATA Carnet

The Chamber is the sole approved body in Hong Kong for the issue of ATA carnets. These are international customs documents which permit trade samples, exhibition goods and professional equipment to be taken across national frontiers without payment of duty. During the year under review, 3,469 carnets were issued, an increase of 7 percent over the figure for 2002. These covered goods totalling HK$3,936 million. During the year, 517 disputes arising out of the functioning of the carnet system were settled. Among these disputes, 31 cases resulted in payment of customs duties of HK$2,452,925.

The Chamber's CO office received a number of Mainland customs delegations in 2003. Incoming Trade Missions

In 2003, useful discussions were held with three incoming study missions on EDI certification and CEPA certificates of origin. These missions were organized by the China Council for the Promotion of International Trade Shenzhen Sub-Council, the Ministry of Commerce and the Customs General Administration of the People's Republic of China.

Chairman's Review   l CEO's Report l   International Business Division Report
Business Policy Division Report l  Economic & Legal Affairs Division Report
Certification Division Report l  Business Development Division Report
Human Resources Division Report l Operations Division Report l  Chamber Services Limited Report