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27 March 2007
Impending Changes on Processing Trade Policy
According to reliable information obtained by FHKI leadership from senior Mainland government officials, the Central Government may soon announce new measures to regulate processing trade. It is estimated that new items will be added to the Prohibitive Catalogue to increase the number of the entry to over 1900 items. The new entries are most likely to be those that are resource intensive and hazardous to the environment. Enterprises with manufacturing processes involving such materials or products, such as leather products, should pay special attention to the forthcoming news, which could be released as early as the end of this month.
Sources also revealed that the Restricted Catalogue for processing trade is under discussion and the list of the items would be selected from the following 5 categories:
i. products that are labour intensive
ii. products that cause huge trade surplus;
iii. products that cause trade disputes;
iv. products that have short industry chains;
v. products that are hard to supervise by the Customs
It is speculated that the items under consideration might include textile, furniture, leather, plastic and shoe products. There is no confirmed timetable for the announcement of the Restricted Catalogue yet, although it is largely believed to be released before the end of this year.
FHKI will continue to follow the latest development of the policy changes and update members at the earliest notice. Members should keep a close eye on the news and make preparations for the impending changes.
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