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Following is the translation of the speech by the Secretary for Commerce, Industry and Technology, Mr Joseph WP Wong, in moving the resolution on the Import and Export (Registration) (Amendment) Regulation 2007 in the Legislative Council today (February 7):
Madam President,
I move that the motion as set out under my name on the Agenda be passed.
The Financial Secretary announced in his Budget Speech in February 2006 that the Administration would consider providing a concession in trade declaration charges for gold with a view to supporting the development of Hong Kong as a logistics hub and gold trading centre, alongside with the Hong Kong Airport Authority's proposal to establish a gold depository at the Hong Kong International Airport. In this connection, we propose that an exemption be given to the declaration charge on the declarations of imports, exports and re-exports of gold bars.
Under the Import and Export (Registration) Regulations, importers or exporters are generally required to lodge with the Commissioner of Customs and Excise a declaration of imported, exported and re-exported articles including gold and pay a declaration charge on lodgment of such declarations.
We propose to amend regulation 8 of the Regulations to exempt any person who lodges an import, export or re-export declaration relating to gold bars within the meaning of the Hong Kong Imports and Exports Classification List (Harmonized System) from the payment of the declaration charge under the same regulation. The specification for the eligible gold bars will be made accordingly in the above Classification List, which details the commodity classification systems for traders to complete trade declarations and is updated by the Commissioner of Customs and Excise whenever necessary by notices published in the Gazette.
The proposed exemption will enhance Hong Kong's competitiveness in the international gold market by reducing the relevant transaction costs and thereby putting us on a par with other major gold trading centres such as the United Kingdom.
As the internationally acceptable trading standard for gold bars is currently 995.0 fineness or above, we propose that the gold bars eligible for the exemption should conform to this standard. Moreover, to enable us to quickly respond to possible changes in the trading standards for gold bars in the future, we do not propose to stipulate in the Regulations a definition or specification for the gold bars.
We estimate that the proposed exemption will have a revenue implication for the Government of about $5.1 million per year. However, the proposal will facilitate Hong Kong's further development as a leading gold trading centre and logistic hub and bring significant benefits to Hong Kong.
The Administration has discussed the proposal with the industry including the Chinese Gold and Silver Exchange Society, the Airport Authority and the Legislative Council Panel on Commerce and Industry. The proposal has their support.
Madam President, I beg to move that the motion be passed and hope that it has Members' support.
Ends/Wednesday, February 7, 2007
Issued at HKT 15:10
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