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)226







Question Serial No.







0399




Head :

181 Trade and Industry Department

Subhead (No. & title) :







Programme:

(2) Trade Support and Facilitation

Controlling Officer:

Director-General of Trade and Industry

Director of Bureau:

Secretary for Commerce and Economic Development

Question:

The Trade and Industry Department fully met its targets (100%) with regard to application for factory registration and amendment to factory registration particulars, i.e. (completed processing within 14 working days). Will the Administration please inform this Committee:

(a) whether the processing time can be further shortened to increase efficiency? If yes, what is the extra expenditure so involved?

(b) what measures can be used to shorten the procedures and time involved in applications for licences and notifications so as to remove the obstacles for the industries?



Asked by: Hon. LAM Kin-fung, Jeffrey

Reply:

(a) We require 14 working days to process applications for factory registration (FR) and amendment to FR particulars, as vetting of applications by the Trade and Industry Department (TID) and factory inspections by the Customs and Excise Department have to be conducted to verify the information declared in the applications before approval is given. As the FR system is an important element of the origin control system, it is necessary to ensure that all the information declared in the application is accurate and that all the registration requirements are met, and at times more than one factory inspection is required prior to approval. For amendment to FR particulars not requiring factory inspection, we normally require only 1 to 3 working days to process the application depending on whether it is lodged in electronic or paper form.

(b) TID regularly reviews procedures for processing applications for licences and notifications with a view to improving the level of services. Where possible, the Department introduces electronic services to shorten the processing time.


Signature




Name in block letters

Ms Maria S.N. KWAN

Post Title

Director-General of Trade and Industry

Date

15.3.2010





Examination of Estimates of Expenditure 2010-11


Reply Serial No.




CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION


CEDB(CIT)227







Question Serial No.







0400




Head:

181 Trade and Industry Department

Subhead (No. & title):







Programme:

(2) Trade Support and Facilitation

Controlling Officer:

Director-General of Trade and Industry

Director of Bureau:

Secretary for Commerce and Economic Development



Question:

The Trade and Industry Department mentioned that, in 2010-11, it will strengthen liaison with the Mainland authorities and the local trade on various issues of interest with significant impact on the local trade, particularly small and medium enterprises (SMEs). In that,



(a) issues of interest with significant impact so mentioned include what?
(b) have liaisons been made with the Mainland authorities on its processing trade policies, taxation, Labour Contract Law and export tax rebates? What is the progress of the work?

Asked by: Hon. LAM Kin-fung, Jeffrey
Reply:
(a) The Commerce and Economic Development Bureau and Trade and Industry Department keep in view the Mainland’s policies and measures which may affect the operation of Hong Kong enterprises in the Mainland, including those on processing trade, taxation matters, import and export administration, development of the Mainland domestic market, labour-related issues, environmental laws, etc.
(b) We maintain close dialogue with the trade through the “Task Force to Support the Processing Trade” and other channels to understand their concerns and views on processing trade and related issues. We also maintain close liaison with the Mainland authorities at various levels through the “Hong Kong / Guangdong Expert Group on the Restructuring and Upgrading of the Processing Trade” and other channels to reflect the trade’s views and suggestions. The Mainland and Guangdong authorities have responded to such views and suggestions positively. In particular, they have implemented a series of supportive measures since the financial tsunami in the year of 2008, including raising the export tax rebate rates for a number of times, suspending the actual payment of standing book deposit for processing trade enterprises, waiving administrative fees and charges, implementing "restructuring without stopping production" and "consolidated tax return for multiple domestic sales". These measures have helped relieve the cashflow pressure on Hong Kong enterprises. Since there is still uncertainty over the economic situation, the Commerce and Economic Development Bureau has conveyed to the Mainland authorities the trade’s wish for the continued implementation of the supportive measures launched by the Mainland in the years of 2008 and 2009.



Signature




Name in block letters

Ms Maria S. N. KWAN

Post Title

Director-General of Trade and Industry

Date

16 March 2010


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