FHKI deputy chairman Mr Stanley Lau and representatives of other major trade associations yesterday attended a meeting in Shenzhen with the Study Group on Processing Trade from the Central Government to exchange views on the latest policy changes.  The Study Group comprises senior officials from the Ministry of Commerce, Ministry of Finance, General Administration of Customs, State Administration of Taxation and National Development and Reform Commission.

At the meeting, Hong Kong delegates reflected manufacturers’ concerns and the problems they faced in meeting the new requirements laid down in Public Notice No. 44.  In addition, the Study Group was requested to convey the following suggestions for easing the hardship of manufacturers to the Central Government:

i.               State more clearly the long-term policy on processing trade, and provide a sufficiently long transition period for enterprises to adapt to any new changes;

ii.             Continue to allow enterprises of categories A and B to use bank gurantee as a substitute of actual gurantee deposit when importing items on the Catalogue of Restricted Commodities for processing;

iii.            Introduce incentives and facilitating measures to encourage processing trade enterprises to move up the value chain;

iv.            Continue with the current duty-free practice on re-importing materials and products originating from the Mainland （國貨復進口）; and

v.              Clarify the environmental requirements for polluting industries and assist them in complying with the required standards.

       Hong Kong delegates were assured that the Central Government attaches great importance to the concerns of Hong Kong manufacturers and the Study Group would reflect their views in its report to the State Council. 

       Members who have any views on the issue are invited to forward them to the FHKI.  Meanwhile, we will closely monitor the situation and keep members informed of any new developments.