Session No. 5 File name : cedb(cit)- doc



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Examination of Estimates of Expenditure 2010-11


Reply Serial No.




CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION


CEDB(CIT)163







Question Serial No.







0235




Head :

31 Customs and Excise Department

Subhead (No. & title) :
















Programme :

(5) Trade Controls




Controlling Officer :

Commissioner of Customs and Excise




Director of Bureau :

Secretary for Commerce and Economic Development





Question :
Regarding the expenditure on trade controls, the estimate for 2010-11 represents a decrease of 19.4% as compared with the original estimate for 2009-10. What is the reason?

Asked by : Hon. IP Wai-ming
Reply :
The estimate for trade controls under Programme (5) for 2010-11 represents a decrease as compared with the original estimate for 2009-10. The main reason is that, after taking into account the development of the international textiles trading environment and the local textiles industry, the Customs and Excise Department has made appropriate adjustments to the enforcement actions in respect of textiles controls, and has effectively redeployed the savings in resources for carrying out duties in respect of consumer protection under Programme (3). For the purpose of enforcing the newly enacted subsidiary legislation of the Trade Descriptions Ordinance which came into effect in 2009, the Department has redeployed 48 posts to conduct spot checks on more goods in the relevant categories, such as diamond, Fei Cui and certain electronic products etc. In addition, the Department has further redeployed 35 posts, with a view to stepping up enforcement actions in other aspects for safeguarding the interests of consumers (including weights and measures as well as consumer goods safety).


Signature










Name in block letters

RICHARD M F YUEN







Post Title

Commissioner of Customs and Excise







Date

17.3.2010




Examination of Estimates of Expenditure 2010-11


Reply Serial No.




CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION


CEDB(CIT)164







Question Serial No.







2811




Head :

31 Customs and Excise Department

Subhead (No. & title) :







Programme:

(3) Intellectual Property Rights and Consumer Protection

Controlling Officer:

Commissioner of Customs and Excise

Director of Bureau:

Secretary for Commerce and Economic Development

Question:

Regarding false trade descriptions and mis-statements in respect of goods,

a how many enforcement actions were carried out by the authorities in 2009-10? What were the main target trades or shops? What is the number of cases in which charges were made during the operations?

b what will be the authorities’ measures and estimate of expenditure on this matter in 2010-11?

c due to the widespread practice of online trading in recent years, false trade descriptions and mis-statements are often found on online trading platforms. Will the authorities expand investigations and enforcement actions to the Internet?
Asked by: Hon. IP Wai-ming

Reply:

a In 2009-10, the Customs and Excise Department (C&ED) conducted a total of 3 301 inspections of retail shops under the Trade Descriptions Ordinance, including shops selling jewels, gold ornaments, dried seafood and Chinese herbal medicines as well as retail shops selling electronic goods, to ensure that the industry complied with legal requirements. In the same year, the C&ED investigated 603 cases involving suspected false trade descriptions. Of the 365 investigations completed, 7 resulted in prosecutions, with fines imposed ranging from $2,500 to $35,000.

b In 2010-11, the C&ED will step up inspections of retail shops, pay the special attention to combating unscrupulous shops and follow up reports and complaints proactively. Main emphasis will be placed on inspections of shops in tourist areas and more spot checks will be conducted during long holidays to protect consumer rights of tourists. In addition, more training will be provided to front-line enforcement officers so as to enhance their competence and skills in enforcement. In order to crack down on dishonest sales practices, the C&ED will continue co-operating with the police, the Consumer Council, the Travel Industry Council, the Hong Kong Tourism Board and associations of retail industry, step up publicity for and education about consumer rights and encourage the public and visitors to co-operate with the authorities. The estimate of expenditure on manpower is around $20 million.

c Unlawful acts of false trade descriptions and mis-statements are often found on various sales channels, including online trading platforms which become widely used. Always concerned about the situation, the C&ED has been combating these illegal sales practices through various channels with utmost effort. A total of 8 complaints about online trading which involved suspected false trade descriptions were received in 2009 and investigations are now in progress.




Signature




Name in block letters

RICHARD M F YUEN

Post Title

Commissioner of Customs and Excise

Date

17.3.2010


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