MESSAGE - Policy address · MESSAGE We play an important role as a conduit ... at all cargo entry and exit points. In addition, we have been making ... procedures. Customs and Excise

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MESSAGE

We play an important role as a conduitbetween the Mainland of China and other parts ofthe world. It is this role and our entrepreneurs’ability to use the Mainland, and especially thePearl River Delta, as our economic hinterlandthat have made it possible for Hong Kong toentrench and enhance its status as the region’sleading international trade and business centre. Wewill continue to strengthen and deepen oursymbiotic economic relationship with theMainland.

The imminent accession of China to the World Trade Organisation,in particular, will have a significant positive impact on Hong Kong. Wewill work closely with the business sector in its efforts to meet the newchallenges and tap the new opportunities.

It is also our mission to contribute to the realisation of the ChiefExecutive’s vision of making Hong Kong an international world-classcity. Thus we will seek to provide a business-friendly environment in whichindividual businessmen are able to make their own business decisions,which collectively would enable Hong Kong’s economy to grow andprosper.

Attracting the world’s major companies to do business here is anotherkey aspect of our overall vision. In the last twelve months, we have had

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Level 29, One Pacific Place, 88 Queensway, Hong KongFax No.: 2840 1621 E-mail Address: [email protected]

Website: http://www.info.gov.hk/cib

visible achievements in attracting more external investment and a greaterinternational business presence here. We will further enhance our efforts inthe coming year.

(CHAU Tak Hay)Secretary for Commerce and Industry

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International Trade and Business Centre

Policy Objectiveand

Key Result Areas

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INTERNATIONAL TRADE AND BUSINESS CENTRE

Our Policy Objective is to strengthen Hong Kong as an internationaltrade and business centre.

Overall Targets

Our targets this year in pursuing this Policy Objective are –

l to further promote global free trade and investment in multilateraland regional trade fora including the World Trade Organisation(WTO) and the Asia-Pacific Economic Cooperation (APEC)

l to further promote economic and trade relations between HongKong and its trading partners

l to facilitate trade

l to further improve Hong Kong’s capability to protect intellectualproperty rights through strengthening our legislative, enforcementand educational efforts

l to identify further opportunities for deregulation, cutting red tapeand introducing new or improved services in the Government

l to further enhance Hong Kong’s position as a pre-eminent servicescentre in the region

l to attract more foreign enterprises to do business in Hong Kongand influence existing investors to expand operations

Progress

We continued to enhance Hong Kong’s position as an internationaltrade and business centre through various efforts. Much headway was madein the past year to improve the business environment in Hong Kong,including cutting red tape, providing new and improved government servicesand enhancing civil servants’ awareness of the need to help business.

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Substantial efforts were made in further enhancing Hong Kong’sintellectual property protection regime through legislation, education andenforcement actions against copyright piracy. Our achievements incombating piracy problem continued to receive high regard from our tradingpartners.

We also achieved the following progress in our six Key Result Areas(KRAs).

1 Promote global free trade

Despite the failure of the Third WTO Ministerial Conference held inSeattle, USA in November 1999 to launch a new round of multilateraltrade negotiations, we continued to work with other WTO membersto ensure that the WTO remains focused on trade liberalisation. Weparticipated actively in the negotiations on services, and in thediscussion on how best to ensure the results of the Uruguay Roundnegotiations are fully and faithfully implemented to the benefit of allWTO members. In addition, we continued to play an active role inrebuilding support for the launch of a new round of multilateral tradenegotiations as we prepare for the Fourth WTO Ministerial Conferenceto be held in Doha, Qatar in November 2001.

We continued to work with APEC members to take forward a fullrange of initiatives in economic and technical cooperation, and tradeand investment liberalisation and facilitation.

2 Facilitate trade

Established in November 1999, the Mainland and Hong Kong SpecialAdministrative Region Joint Commission on Commerce and Trade hasbeen providing a useful liaison mechanism with the Mainlandauthorities on trade and commerce matters. By strengthening mutualunderstanding and communication, the Commission has contributedto the improvement of the business operating environment.

We are firmly committed to maintaining an effective textiles exportcontrol system, thus enabling our textiles and clothing exports to enjoysmooth access to the world market. To tackle textiles frauds and originabuses, we have strengthened the enforcement operations at factorypremises, and carried out more blitz checks on textiles consignmentsat all cargo entry and exit points. In addition, we have been making

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constant efforts to improve the business environment for the textilesindustry. Improvements made during the year included rationalisationof certain origin requirements and textiles related registrationprocedures.

Cus toms and Ex cise Depart ment i s im plemen t ing therecommendations of a comprehensive study we commissioned in 2000on possible ways and means to streamline customs clearancerequirements and services. In August 2001, we commissioned afurther business process re-engineering study to examine the feasibilityof establishing a single window through which the trade couldcommunicate with different government agencies electronically forprocessing all types of import, export and transshipment licences anddocuments as well as port formalities.

The implementation of electronic data interchange (EDI) forGovernment-related trade documents is on schedule. We fullyimplemented EDI services for restrained textiles export licences in1999 and production notification, trade declaration and certificate oforigin in 2000. The EDI services for dutiable commodities permitand manifest will be rolled out around end-2001 and early 2002respectively.

3 Protect intellectual property rights

In February, we streamlined and updated various provisions inthe Patents Ordinance and the Registered Designs Ordinance byenacting the Intellectual Property (Miscellaneous Amendments)Ordinance 2001.

On 1 April, we commenced the amendments to the CopyrightOrdinance and the Prevention of Copyright Piracy Ordinance tocombat corporate copyright piracy activities and bootleggingrespectively. To address public concerns about the effects of theamendments on the dissemination of information and educationalactivities, the Copyright (Suspension of Amendments) Ordinance 2001was enacted in June to suspend the implementation of some of theamendments as they apply to copyright works other than computerprogrammes, movies, television dramas and music.

In July, we made the Registration of Copyright Licensing BodiesRegulation to enhance the transparency of copyright licensing bodies.

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We continued to take vigorous enforcement actions against copyrightpiracy and counterfeiting. We completed more than 7 000investigations and conducted 300 inspections of licensed optical discfactories. The special task force of the Customs and ExciseDepartment continued its very effective operations against copyrightpiracy at the retail level.

The year saw a series of high-profile activities in raising publicawareness of the importance of protecting intellectual property rights.These included broadcasting campaign; a major publicity campaignheld in popular shopping arcades; and an international symposiumwith more than 200 local and overseas participants. We also continuedour education programme for school students.

We improved our registration services for trade marks, patents anddesigns and reduced the turnaround time for processing trade markapplications.

4 Maintain a business-friendly environment

We continued to work closely with the business community to identifyopportunities for improving Hong Kong’s business-friendlyenvironment. We completed 11 projects and studies on eliminatingover-regulation, cutting red tape, and introducing new or improvedservices, and five regulatory impact assessment on regulatoryproposals. Government departments implemented some 40recommendations resulting from the earlier helping business studies.

In 2001, we organised the second Helping Business Awards Schemeto encourage civil servants to serve as business facilitators rather thanbusiness obstacles, and to see themselves as part of the solution, notpart of the problem. We received very encouraging response. Thebusiness community had also nominated many government initiativesfor awards.

5 Enhance Hong Kong’s position as a pre-eminent services centrein the region

In the past year, we co-ordinated the implementation of 13 initiativesunder the Services Promotion Programme. These projects aimed tostimulate strategic thinking about the future development of ourservices economy, strengthen institutional support for the services

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sector, and promote or support specific service sectors. All except oneitem have been completed.

We successfully organised the second Quad Forum where over 130business leaders, senior government officials, Legislative Councilmembers and leading academics brainstormed on Hong Kong’seconomic strategy. We also provided financial support for the HongKong General Chamber of Commerce and the University of HongKong to organise an economic forum with the Guangdong Sub-councilof the China Council for Promotion of International Trade forpromoting economic co-operation between Hong Kong andGuangdong. In addition, we also produced a television (TV)Announcement for Public Interest and a series of mini TV episodesto promote the importance of quality services.

6 Attract external direct investment

In the past year, Invest Hong Kong became fully operational withdedicated marketing teams set up to attract external direct investmentbased on a sector approach, as opposed to the previous geography-based structure. The Financial Secretary has appointed the InvestmentPromotion Strategy Group (IPSG) which meets quarterly to advise himon policies and strategies for promoting inward investment. InvestHong Kong has identified nine priority sectors and have beendeveloping strategies and business plans on each sector in consultationwith the IPSG and the Heads of the Economic and Trade Officesoverseas.

Invest Hong Kong has also embarked on a programme of intensiveand high profile public relations and publicity. The objective is tobuild up its corporate identity in order that the new department canpromote its marketing programmes effectively.

Progress on each previously announced initiative under the aboveKRAs is set out in the “Detailed Progress” section of this report.

Looking Forward

To achieve our overall targets this year, we will undertake thefollowing initiatives and targets under each of the KRAs for the coming year.

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1Hong Kong is a staunch supporter of free trade and open markets.

We recognise the vast opportunities and advantages brought by free tradeand investment, including enhancing efficiency, reducing operating costs,increasing competitiveness and facilitating knowledge and technologytransfer. An effective means to achieve a free trade and investmentenvironment is for “Hong Kong, China” to participate actively andconstructively in the multilateral trading system under the World TradeOrganisation (WTO) and through this to lower trade barriers and enhancemarket access for our traders.

The multilateral rule-based trading system has been highly successfulin fostering the growth of international trade in general to the benefit of allmembers of the WTO. The system has been particularly important forsmaller economies like Hong Kong. The basic principle of non-discrimination guarantees equitable treatment of all WTO members,irrespective of their political weight.

It is necessary to ensure that the future work of the WTO will be ableto meet the needs and challenges of an increasingly globalised andtechnology-driven economy in the 21st century. We have thereforeparticipated actively in virtually all aspects of WTO work of interest to HongKong. These include the negotiations on services, the examination of newareas such as e-commerce and the preparatory work for the early launch ofa new round of multilateral trade negotiations.

While upholding our commitment to the primacy of the multilateraltrading system and the WTO, we are prepared to enter into free tradeagreements (FTAs) with our trading partners where it is in Hong Kong’s tradeand economic interest to do so. We believe that FTAs which are fully WTO-consistent can serve as building blocks for reinforcing the multilateral tradingsystem and help promote the cause of eventual global trade liberalisation.

We will continue to play an active role in the Asia-Pacific EconomicCooperation (APEC) to work towards the full realisation of free and opentrade and investment in the Asia-Pacific region.

Promote global free trade

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We will assess our performance in respect of this KRA against thefollowing indicators –

l The extent to which progress in furthering trade liberalisation hasbeen made in the multilateral trading system. Our targets are asfollows. First, to press for the launch of a new round ofmultilateral trade negotiations at the Fourth WTO MinisterialConference to be held in November 2001. Second, to continuepushing for progressive liberalisation of trade in goods as wellas services. Third, to continue to pursue better multilateral ruleswhich take account of the changes in the pattern of world trade.

l The extent to which progress has been made in furthering tradeand investment liberalisation and facilitation, and strengtheningcapacity building in the APEC. Our target is to strive for goodprogress and outcome in the initiatives agreed by the APECEconomic Leaders, with emphasis given to those which can helpexpand business opportunities in the region.

l The extent to which progress has been made in our first-evernegotiations on a free trade agreement, which should contributeto the multilateral trading system and also serve Hong Kong’strade and economic interest.

We will pursue the following initiative and target to deliver results inthis area –

Initiative * Target

To negotiate a Free TradeAgreement with New Zealand

(Trade and Industry Department)

To conclude the negotiation

* the bracketed information denotes the agency with lead responsibility for the initiative

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2To enable our businessmen to take full advantage of the tremendous

opportunities in the Mainland market upon its accession to the WTO, wewill continue our efforts to strengthen and deepen our symbiotic economicrelationship with the Mainland. The Mainland and Hong Kong SpecialAdministrative Region (HKSAR) Joint Commission on Commerce andTrade, established in November 1999, has been providing a usefulmechanism for fostering such a relationship particularly in –

l the provision of information on the laws, regulations and the latesteconomic developments in the Mainland in a timely fashion;

l reflecting the views and concerns of Hong Kong businessmen,thus facilitating their operations in the Mainland; and

l expanding opportunities for trade, investment, as well as businessand technological collaboration between the Mainland and HongKong.

To maintain the HKSAR’s status as an international trading centre,the HKSAR must fulfil its obligations under multilateral trade agreements.Inability to do so will damage the reputation and interests of the HKSAR inthe international trading community.

Under the WTO Agreement on Textiles and Clothing, quotas fortextiles and clothing (T&C) products will be removed by 2005. Before that,we are obliged to ensure that T&C products using Hong Kong quotas andclaiming Hong Kong origin are actually made in Hong Kong. To fulfil thisobligation and to facilitate the access of our T&C products to the worldmarkets, as well as to protect our legitimate exports, the Government willspare no effort in combating illegal transshipment of T&C products. Inparallel, the Government will monitor closely the implementation of theAgreement on Textiles and Clothing to ensure that our T&C exports aretreated equitably in overseas markets.

The Government remains fully committed to facilitate trade bystreamlining procedures and enhancing customs’ capabilities in intelligencehandling and risk management to effectively focus customs enforcement

Facilitate trade

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operations on a small percentage of carriers, travellers and cargoes with highrisk indicators, thereby facilitating the rapid flow of the vast majority ofcarriers, travellers and cargoes.

The Air Cargo Transshipment (Facilitation) Ordinance came intooperation in May 2000 to facilitate the transshipment of air cargoes withinthe restricted areas of the Hong Kong International Airport. The Ordinancerelaxes the import and export licensing requirements in respect ofmiscellaneous categories of non-sensitive air transshipment cargoes and goesa long way towards facilitating the development of Hong Kong into aninternational and regional air cargo hub.

Pursuant to the Air Cargo Transshipment (Facilitation) Ordinance, wealso introduced a scheme in July 2000 to exempt registered parties fromlicensing requirements on less sensitive strategic commodities in airtransshipment mode, subject to full compliance with certain registrationconditions. The scheme has been working effectively in balancing the needsto give due facilitation to the air cargo industry on the one hand, andmaintaining effective controls over movements of strategic goods throughthe territory on the other.

Electronic data interchange (EDI) is the computer-to-computerexchange of business information in a standard format. It reduces thepaperwork involved in trading procedures and improves efficiency. Withthe rapid growth of the Internet and electronic commerce worldwide, HongKong businesses must quickly embrace the use of EDI in order to remaincompetitive. To promote the wide use of EDI in Hong Kong, theGovernment has implemented EDI for four key Government-related tradedocuments. EDI service for another two types of documents will beimplemented around end-2001 and early 2002.

We have granted an exclusive franchise to a company to operate front-end EDI services for Government-related trade documents. We plan toengage additional service providers to foster market competition upon theexpiry of this franchise in 2003.

Rice is classified as a reserved commodity and has been subject toimport quota control since 1955. Following a critical review of the ricecontrol scheme, we are taking steps to open up the rice trade in phases topromote greater competition.

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l Fruitful liaison and dialogue is maintained with the Mainlandauthorities.

l Smooth access of our T&C products to the world markets. Ourtarget is to guard against, and to seek early removal of,discriminatory measures, if any, imposed on the imports of T&Cproducts from Hong Kong by overseas markets.

l Clear and efficient processing of documentation requirements forthe export of T&C products. Our target is to process 90% of Form5 and Form 8 (export licences) within two working days.

l The levels of control which help protect legitimate T&Cexports. Our target is to ensure the effectiveness, integrity andcredibility of Hong Kong’s textiles export control system bymaintaining enforcement and administrative actions against anyorigin fraud.

l The extent to which Government-related trade documents maybe processed through EDI. Our target is to make available EDIprocessing for dutiable commodities permits and cargo manifestsby end-2001 and early 2002 respectively.

l Efficient clearance of cargoes without compromising the integrityof trade controls. Our target is to consider possible ways andmeans to further streamline customs clearance requirements andservices for cargoes being transported by land, air and sea as wellas by inter-modal means.

l Liberalisation of the rice trade. Our target is to fully liberalisethe rice trade by 2003.

l Efficient clearance of travellers and cargoes through the enhanceduse of intelligence and risk management in customs enforcementoperations. Our target is to further promote the use of intelligenceand risk management in operations conducted by the Customs andExcise Department by way of the establishment of a newintelligence branch in the Department in 2002.

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Initiative Target

We will pursue the following initiatives and targets to deliver resultsin this area –

To enhance Hong Kong’s tradingand economic relations withGuangdong

(Commerce and Industry Bureau(CIB))

To consider the establishment ofan Economic and Trade Office inGuangdong

To introduce market competitionin the provision of electronic datainterchange services for processingGovernment trade-relateddocuments from 2004

(CIB)

To appoint additional serviceproviders in 2002

To further promote the use ofintelligence and risk managementin operations conducted by theCustoms and Excise Department(C&ED)

(Customs and Excise Department)

To establish an intelligence branchin C&ED in 2002

To review the import and exportlicensing requirements with a viewto streamlining the licensingprocesses

(CIB)

To launch the review in 2001-2002

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3Our policy in protecting intellectual property rights (IPR) has four

main strands –

l Comprehensive and effective legislation

l Transparent, user-friendly and efficient registration system

l Vigorous enforcement action

l Well-planned and sustained public education

We have a modern and comprehensive system of IPR laws that fullycomplies with the international standards laid down in the Agreement onTrade-Related Aspects of Intellectual Property Rights under the WTO. Weconstantly update our legislation to cope with the changing environment.We participate actively in international fora to promote the high level ofprotection of IPR in Hong Kong.

We enhance the efficiency of our trade mark, patent and design registryservices through streamlining procedures e.g. one-stop processing ofapplications. We shall have web-enabled services in 2003 for search of trademark details and electronic filing for applications.

We are committed to taking vigorous enforcement actions againstcopyright piracy and trade mark counterfeiting at the production, distributionand retail levels. To complement our efforts, we maintain close liaison withrights owners and other enforcement agencies in the region.

Enforcement actions alone will not be sufficient to make Hong Kongpirate-free. It is vital for the public to respect IPR and to say “no” to piratedor counterfeit goods. To this end, we will maintain a well-planned andtargeted public education programme. To set a good example for thecommunity, we have introduced within the Government a software assetmanagement system to be adopted by all departments. We have alsoappointed an intellectual property compliance officer in each department tooversee compliance matters.

Protect intellectual property rights

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Initiative Target


l The extent of enforcement action taken to protect IPR. Our targetsare to complete 300 inspections of licensed optical disc factories,and to complete 7 200 IPR investigations in a year.

l The effects of our efforts taken to facilitate the registration ofpatents, designs and trade marks. Our targets are to issue 25 000examination reports for applications for registration of trade marksand associated matters, to examine 6 500 requests to record forstandard patents, to complete 150 examinations of short-termpatent applications, and to complete 2 400 examinations forregistration of designs.


To review the CopyrightOrdinance

(Commerce and Industry Bureau(CIB))

To formulate a long-term solutionto address the issues arising fromthe implementation of theIntellectual Property(Miscellaneous Amendments)Ordinance 2000

To liberalise parallel importationof computer software

(CIB)

To enact the necessary legislativeamendments in 2001-2002

To strengthen public education onintellectual property rights

(Intellectual Property Department)

To carry out public educationactivities on an on-going basis

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4Launched by the Financial Secretary in March 1996, the Helping

Business Programme aims to create a more business-friendly environmentand maintain Hong Kong’s position as the best place in the world forbusiness. Under this programme, we regularly conduct studies on governmentoperations to remove obstacles and constraints to business development, soas to give the private sector freedom to set its own direction and to exploreand seize opportunities. The studies cover deregulation, cutting red tape,impact assessment of regulatory proposals, transfer of public services andintroduction of new or improved services. Work relating to the transfer ofpublic services is under the charge of the Efficiency Unit of the ChiefSecretary for Administration’s Office.

The Business Advisory Group chaired by the Financial Secretaryprovides a forum for identifying problems encountered by the business sectorin the Government’s operations and for recommending solutions. The Groupcomprises 14 leading members of the business community and six seniorgovernment officials. The Business Advisory Group and its three sub-groupsmeet regularly to discuss specific helping business initiatives and receivereports from government departments on progress of projects.

To achieve the goal of making government operations truly business-friendly, we need to engender throughout the Government a helping businessculture and cultivate the right mindset in the civil service. We organiseHelping Business Awards and give talks to civil servants to enhance theirawareness of the need to help business.


l Percentage of priority areas of improvement identified beingproactively pursued. Our target is to proactively pursue 90% ofpriority areas identified.

l Number of studies commissioned in line with the rolling plan.Our target is to have all studies commissioned in line with therolling plan.

Maintain a business-friendly environment

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Initiative Target

l The explorat ion of improvement opportuni t i es andimplementation of recommendations. Our target is to have 80%of recommendations accepted for implementation and 75% ofrecommendations implemented within agreed time scales.

l Changing the mindset of civil servants. Our target is to organiseat least six sessions to inculcate the helping business message.

We will pursue the following initiative and target to deliver results inthis area –

To commission helping businessstudies and regulatory impactassessments

(Commerce and Industry Bureau)

To complete ten studies/assessments within 2002,including –

l a feasibility study on a proposedintegrated e-trade system

l a study on the feasibility ofbulk billing functionality forrates and government rent

l departmental business studiesfor the EnvironmentalProtection Department and theTransport Department

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Business does not flourish in a vacuum. We must ensure that we putin place institutional and infrastructural arrangements that will assist businessoperations and economic activities. We also need to put Hong Kong on theworld’s economic map by promoting international awareness of Hong Kong’sstrengths as a global and regional services centre. Just as important is theneed to enhance local understanding of the importance of the services sectorto our economy, to nurture a culture of quality service and to help peopleprepare themselves for the challenge of the knowledge economy.

Launched in 1997 by the Financial Secretary, the Services PromotionProgramme aims to promote the development of Hong Kong’s servicesindustry and enhance Hong Kong’s position as a pre-eminent servicescentre in the region. The Programme consists of the following four areas ofwork –

l Spearhead strategic thinking on the future development of ourservices economy

l Strengthen institutional support for the services sector

l Enhance international recognition and local understanding of ourservices economy

l Identify and implement worthy industry-specific initiatives

The Services Promotion Strategy Group chaired by the FinancialSecretary provides a forum for identifying and implementing initiatives inthe above four areas. The Group comprises 18 non-official members fromthe business and academic sectors, and six senior government officials.


l Timely identification and launch of specific initiatives tostrengthen the provision of institutional support. Our target is toimplement all the initiatives set out in the following table by 2002.

l Degree of business sector recognition of Hong Kong’s positionas a services centre in the region. Our target is to maintain thecurrent favourable opinion of Hong Kong by both local andinternational businesses.

5 Enhance Hong Kong’s position as a pre-eminentservices centre in the region

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Initiative Target


To collaborate with the AirportAuthority in developing a newInternational Exhibition Centre atChek Lap Kok

(Commerce and Industry Bureau(CIB)/Invest Hong Kong)

To support the Airport Authorityin inviting expressions of interestwithin 2002

To set up a $100 million fundingscheme to help raise the standardof Hong Kong’s professionalservices

(CIB)

To seek within 2001-02 theapproval of the FinanceCommittee of the LegislativeCouncil for the scheme

To collaborate with professionalservices bodies to set up a websiteto help promote Hong Kong’sprofessional services

(CIB)

To launch the website within2002

To organise promotional activitiesto help Hong Kong’s professionalservices sector develop business inthe Mainland

(CIB/The Office of the Governmentof the Hong Kong SpecialAdministrative Region in Beijing/Hong Kong Trade DevelopmentCouncil)

To organise in 2002 promotionalactivities in a number of majorcities in the Mainland

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Initiative Target

To organise an economic forumbringing businessmen, academics,officials, politicians and mediaeditors together

(CIB)

To organise the forum in early2002

To devise and launch a publicitycampaign to build up youngsters’confidence in Hong Kong’seconomic future and promote theirunderstanding of a knowledge-based services economy

(CIB)

To launch the campaign within2002

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Initiative Target

External direct investment is vital to Hong Kong’s economicdevelopment. It creates jobs, stimulates economic growth and enhancestechnological progress. To maintain our competitiveness in attracting globalinvestment, we seek to provide the best business environment for investors.

We set up a dedicated agency, Invest Hong Kong, in July 2000 tospearhead efforts to attract and retain foreign investment. We adopt aproactive and focused approach in attracting companies in those economicsectors and activities where Hong Kong has a distinct comparative advantage.We also, as a priority, attract foreign companies to establish regional or globaloperations in Hong Kong. We provide excellent aftercare services to thosewho have invested in Hong Kong.

We will assess our performance in respect of this KRA against thefollowing indicator –

l The number of inward investment projects completed. Our targetis to complete 80 projects within 2002.


To promote to potential investorsHong Kong’s image as the leadinginternational business centre inAsia, through organising large-scale general and sector-specificbusiness events

(Invest Hong Kong (InvestHK))

To successfully organise the EastAsia Economic Summit of theWorld Economic Forum and hostthe Forbes Global CEOConference in 2002

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Initiative Target

To boost investment promotion inthe Mainland

(InvestHK)

To establish an InvestmentPromotion Unit in the Mainland

To negotiate new InvestmentPromotion and ProtectionAgreements

(Commerce and Industry Bureau/Trade and Industry Department)

To commence negotiations in 2002

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International Trade and Business Centre

Detailed Progress

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1 Promote global free trade

Initiative * Target # Present Position +

To achieve results in this area, various initiatives have been undertakenin the past years. Details are set out below –

To achieve progressiveliberalisation of trade ina wide range ofservices sectors and toseek the best possiblemarket access for ourservices industries inthe next round ofservices negotiationswhich will commenceno later than the year2000

(Trade and IndustryDepartment (TID))

l To conduct morethan 20 seminars,meetings andworking sessionswith policy bureauxand departmentsconcerned, and withthe relevant tradeand professionalassociations, for thepurpose offormulating HongKong’s negotiatingstrategies and actionplans

l Since the servicesnegotiations werelaunched in February2000, over 25discussion sessions andmeetings were held, anda wishlist from the tradefor the multilateralnegotiation on serviceswas received in July2000.

l During 2000-2001, twonegotiation proposalpapers and twoproposals on rule-making work weresubmitted to the WTO.

l Hong Kong attendedover 80 formal andinformal meetings withrepresentatives of WTOMembers.

(Action in Progress: OnSchedule)

* the bracketed information denotes the agency with lead responsibility for the initiative# the bracketed information denotes the year in which the target was set+ the bracketed information denotes the status of the target

l To participate inmore than 80meetings andnegotiating sessionsin the WTO

(1999)

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Initiative Target Present Position

To assume thechairmanship of thePacific EconomicCooperation Council(PECC) from October1999 to late 2001 tofurther promoteeconomic co-operationin the Pacific regionthrough its variousactivities, includinghosting the FourteenthGeneral Meeting(PECC XIV) in late2001

(Commerce andIndustry Bureau (CIB))

l To lead PECC intothe 21st century andhelp set the scenefor PECC activitiesin the nextmillennium

l To activelyparticipate andcontribute in PECCtask forces/forums/project groupscovering differentareas, includingtrade policy, Pacificeconomic outlookand financial marketdevelopment

(1999)

l We will host the PECCXIV from 28 to 30November 2001 inHong Kong. Intensivepreparations are underway.

l Since we assumed thechairmanship, we havechaired three StandingCommittee Meetings,which discussed, amongother issues, visions forrejuvenating PECC.

l We have also organisedfour PECC Trade PolicyForum Meetings whichdiscussed various tradeissues of strategicimportance to theregion.


To prepare for andactively participate inthe preparatory workfor the launching of anew round ofmultilateral tradenegotiations in theWTO by the turn of thecentury

(TID)

l To conduct three tofive seminars androundtablediscussions for thepurpose ofpromoting the WTOand consulting thetrade on theirwishlists for broad-based multilateraltrade negotiations

l Two conferences on theWTO were held inMarch 2000 and March2001 respectively.

l Regular contacts weremade with variousmajor trade bodies andservices sectors to keepthe trade posted ofdevelopments in theWTO and to solicit theirinput in the formulationof Hong Kong’snegotiating position.

l In addition, a homepageis maintained on HongKong’s objectives forthe new round of theWTO.

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l To conduct 20 to 30expert groupmeetings andworking sessions tocollate and analyseinput from the trade,policy bureaux anddepartments for thepurpose offormulatingnegotiating strategyand action plan

l Over 20 meetings havebeen conducted so far.

l To participate inmore than 100negotiatingmeetings/sessions

(1998)

l On top of the over 200regular meetings withrepresentatives of WTOMembers, Hong Kongattended over 50 formaland informal meetings(including meetings atthe ministerial andsenior official level).



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2 Facilitate trade



To introduce electronicdata interchange (EDI)service for dutiablecommodities permits


Pilot run and launch ofservice in 2001

(2000)

l Legislation to enableapplication for DutiableCommodities Permitsusing EDI was enactedin July 2001.

l System development hasbeen completed. Theservice will be rolledout in November 2001.


To introduce EDIservice for cargomanifests

(CIB)

l Pilot run in thesecond half of 2001

l Launch of service inthe first half of 2002

(2000)

l Legislation to enable thesubmission of manifestsusing EDI wasintroduced into theLegislative Council inJune 2001.

l System developmentwill be completed bythe end of 2001.


To lift the restriction oncross-ownership ofimporters andwholesalers and toallow them to engageboth in importing andwholesale of rice

(Trade and IndustryDepartment)

To lift the restriction byJanuary 2001

(2000)

Starting from 1 January2001, importers can sellrice directly to any buyers,without going through thewholesalers.

(Action Completed)

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To help our industriesand businesses enjoy abetter operatingenvironment in theMainland, particularlythe Pearl River Delta

(CIB)

To help our industriesand businesses bypursuing, through ourregular contacts withMainland authorities,measures aimed atimproving theenvironment forbusinesses operating inthe Mainland,particularly the PearlRiver Delta

(1998)

l We have continued tomaintain close contactswith the relevantMainland authorities tocollect and disseminateto Hong Kongbusinessmeninformation on tradeand investment policiesand measures in theMainland.

l The Mainland and HongKong SpecialAdministrative Region(HKSAR) JointCommission onCommerce and Tradehas also provided auseful channel toenhance communicationbetween the HKSARGovernment and theMainland authorities oneconomic and tradematters, which isconducive to creating abetter environment forbusiness operations.

l We shall continue toexplore other effectivechannels to reflect theviews of Hong Kongbusinessmen to theMainland authorities onmatters which have ageneral impact on HongKong-related businessoperations in theMainland.

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l We are considering theestablishment of anEconomic and TradeOffice in theGuangdong Province.


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3 Protect intellectual property rights



To set up a computerforensic laboratory toprovide support tofrontline enforcementofficers in tacklingInternet piracy andother computer crimeproblems

(Customs and ExciseDepartment)

To set up the laboratoryby 2002

(2000)

Basic equipment forcomputer forensicexamination has beeninstalled in the laboratory.Fitting out of thelaboratory is in progress.


To offer to host anAPEC IntellectualProperty Expert GroupMeeting/Conference inHong Kong

(Intellectual PropertyDepartment (IPD))

To play host in2001-2002

(2000)

We will host the meetingin March 2002.


To further enhanceHong Kong’s legalregime for theprotection of IPRs


To prepare draftlegislation to –

l prevent bootlegging

l clarify the IPRoffences provisionsto facilitateprosecution of end-user corporate IPRoffenders

l facilitateenforcement

(1999)

The Intellectual Property(MiscellaneousAmendments) Ordinance2000 took effect from1 April 2001.

(Action Completed)

31


To provide a moreefficient and user-friendly trade marks,patents and designsregistration service

(IPD)

To computerise over70% of the manualfunctions of the TradeMarks, Patents, andDesign Registries inthree years

(1998)

An average of over 70%of the manual functions ofthe three registries werecomputerised in 2001.

(Action Completed)

32


4 Maintain a business-friendly environment


To commission helpingbusiness studies with aview to streamlininggovernment procedures,reducing governmentregulations orimproving services,including thefollowing –

To complete ten studieswithin 2001

(2000)

We have completed thefollowing studies/projectswithin 2001 –

l review of thelicensing of foodpremises other thangeneral restaurants

l review of the licensingof food premises otherthan general restaurants;

l pilot project onelectronic retrievalof approved buildingplans

l pilot project onelectronic retrieval ofapproved buildingplans;

l study on theapproval of generalbuilding plansubmissions

l study on the approval ofgeneral building plansubmissions;

l pilot project to allowadvertisements ongovernment slopes


l pilot project to allowadvertisements ongovernment slopes;

l review of the licensingof alfresco dining forrestaurants;

l provision of moreovernight parkingspaces for non-franchised buses;

33


l study on relaxing therestriction on sales ofservice apartments;

l departmental businessstudy of GovernmentSupplies Department;

l provision of portablewater meters to theconstruction industry;

l electronic submission ofpublic forms; and

l stocktaking of publicforms.

The concerned departmentsare taking action toimplement theimprovement measures.

(Action Completed)

To implement aRegulatory ImpactAssessment (RIA)framework to assess thecosts and benefits ofproposed regulatoryregimes to theGovernment, thebusiness sector, and thecommunity at large

(CIB)

To conduct four RIAsin 2000-2001

(2000)

We have completed thefollowing RIAs –

l licensing control ofkaraoke establishments;

l bilingual safetylabelling of householdchemicals;

l introduction of permitfee and financialdisincentive scheme forroad opening works;

l proposed legislation forfamily entertainmentcentres; and

34


l proposed amendmentsto existing smokinglegislation.

The respective policybureaux have incorporatedthe findings of the RIAs intheir policy developmentprocess.

(Action Completed)

To organise businessfora with selectedbusiness sectors

(CIB)

To organise twobusiness fora in 2000

(1999)

We held two business forain 2000, one with therestaurant group, and theother one at the QuadForum.

(Action Completed)

To improve thelicensing proceduresand requirements forlotteries, tombola,amusements with prizesand trade promotioncompetitions

(Television andEntertainmentLicensing Authority(TELA))

To implement within2000 the improvementsidentified in an earlierstudy

(1999)

Recommendationsinvolving proceduralchanges were implementedadministratively in 1999.For other items whichrequire legislative changes,proposed amendments arebeing prepared forintroduction into theLegislative Council.

(Action in Progress:Behind Schedule)

35


To improve thelicensing requirementsfor massageestablishments

(Hong Kong PoliceForce (HKPF))

To implement therelevant improvementsbefore the end of 2001

(1999)

Implementation work is inprogress. The licensingprocess has beenstreamlined and a guide toLicence Application (alsoin braille and sound tapeversions) with specific“DO’s and DON’Ts” hasbeen updated to helppotential operatorsunderstand therequirements. ConsentPanel meetings andseminars have beenconducted withrepresentatives of theindustry to help the tradein meeting licensingrequirements.


To refine theRegulatory ImpactAssessment framework

(CIB)

To complete the refinedframework within 2000

(1999)

We have refined theframework. Theframework was issued topolicy bureaux forreference in March 2001.

(Action Completed)

To organise a seminarfor middle and seniormanagers onderegulation

(CIB)

To conduct the seminarwithin 2000

(1999)

A seminar had beenorganised for seniormanagers in the civilservice in February 2001.

(Action Completed)

To publish informationleaflets about cuttingred tape and regulatoryimpact assessment

(CIB)

To publish the leafletsin 2000

(1999)

Leaflets have beenprepared for reference bygovernment agencies.

(Action Completed)

36


To conduct researchinto existing regulatoryregimes

(CIB)

To consider 25 areas ofpotential study at eachquarterly meeting ofthe relevant BusinessAdvisory Groupsub-group

(1998)

Twenty-five areas ofpotential study are tabledat each quarterly meetingfor discussion.


To study the feasibilityof developing acopyright rightsmanagement database

(Intellectual PropertyDepartment)

To complete actionwithin 1999

(1998)

We have reviewed thework undertaken in Europeon intellectual propertyrights managementdatabase and considered itnot applicable to HongKong.

(Action Completed)

To improve thelicensing proceduresand requirements ofAmusement GamesCentres, Public DanceHalls, Dancing Schoolsand Mah-jong/Tin KauEstablishments

(TELA)

To complete actionwithin 1999

(1998)

Recommendationsinvolving proceduralchanges were implementedadministratively in 1998.Implementation of otheritems requiring legislativeamendments will beconsidered after publicconsultation.


To improve theapplication proceduresfor waivers totemporarily relaxrestrictions contained inleases of land

(Lands Department(Lands D))

To complete action by2001

(1998)

Most of therecommendations of anearlier study have beenimplemented. Lands D isconsidering the feasibilityof contracting out theprocessing of suchapplications and associatedlease enforcement work in2001.


37


To streamline thelicensing requirementsfor local vessels

(Marine Department(MD))


(1998)

Work is in hand to amendthe related legislation so asto streamline the licensingrequirements. Due to thecomplexity of thelegislative amendments,MD expects to completeaction by 2002.


To streamline themanagement of publiccargo working areas

(MD)


(1998)

Measures for streamliningthe operation procedureshave been implemented.Open tender for berthallocation was introducedin April 2001. Contractingout security guarding oftwo public cargo workingareas was implemented inAugust 2001. Installationof automatic car parkingsystems has beenrescheduled for completionin late 2001.


38


To devise acomprehensive andcoherent programme topublicise the HelpingBusiness Programme

(CIB)

To produce annualprogrammes from 1998onwards

(1998)

This is an on-goinginitiative.

We wrote to over 160chambers of commerceand trade associations inOctober and November2000 to introduce theProgramme and invitehelping business ideas. Itwas followed by meetingsto further elaborate theobjectives of theProgramme and discussissues of concerns.

In April 2001, we invitedthe business community toparticipate in the HelpingBusiness Awards Schemeby nominating governmentinitiatives for awards.There was veryencouraging response.

We also publish regularnewsletters for circulationto businessmen.

(Action Completed)

39



To implement the2000-2001 ActionAgenda whichcomprises thefollowing 12initiatives –

To complete all theinitiatives within2001-2002 –

l To identify andimplement measuresto promote HongKong as a regionalarts and culturalcentre

(Home AffairsBureau (HAB))

l To startimplementingmeasures within2001-2002

l HAB has identified andstarted implementingmeasures to promoteHong Kong as aregional arts andcultural centre. Thesemeasures include thecontinued provision ofa wide range of world-class culturalprogrammes by theLeisure and CulturalServices Department aswell as the artscommunity.

(Action Completed)

5 Enhance Hong Kong’s position as a pre-eminentservices centre in the region

40


l To promote andaccelerate thedevelopment of alocal credit ratingagency with a viewto helping the long-term development ofthe domestic bondmarket and emergingindustries

(Financial ServicesBureau (FSB))

l To formulate astrategic plan andstart implementationwithin 2001

l FSB has formulated andimplemented a strategicplan within 2001 toencourage the privatesector to set up newcredit rating agencies.But a Hong KongMonetary Authoritystudy has concludedthat, given the alreadyactive presence ofinternational creditrating agencies in HongKong and the region,there was no compellingneed for theestablishment of newones.

(Action Completed)

l To review trainingprogrammes andsub-degree courses,particularly in ITand IT-relatedsupport services, fornon-degree and sub-degree holders, witha view to offeringsuitable training foremployment invalue-added jobs

(Education andManpower Bureau(EMB))

l To complete thereview within 2001

l The review has beencompleted. EMB isimplementing thereviewrecommendations asappropriate.

(Action Completed)

41


l To conduct anoverall review ofexisting curricula ofprimary, secondary,tertiary andvocational schoolswith a view tofurther strengtheningthe teaching of ITand IT-relatedknowledge at alllevels of schooling

(EMB)

l To complete thereview within 2001

l EMB has reviewed theexisting institutionalframework of designingand updating the ITcurriculum at variouslevels of schooling.There are existingmechanisms to solicitthe business sector andthe industry’s views inthe process. Indeed,over the past few years,the IT curriculum hasbeen revised andstrengthened in the lightof the changing needsof the industry and theeconomy.

(Action Completed)

l To facilitate visits toHong Kong bybona-fide businesspeople by discussingwith the Mainlandauthorities theestablishment of aspecial businesstravel permit systemsimilar to the APECsystem

(Security Bureau(SB))

l To completediscussion within2001

l SB has discussed withthe Mainland authoritiesand agreed to exploreother suitable measuresto facilitate visits byMainland businessvisitors.

(Action Completed)

42


l To continueworking with theAirport Authority(AA) to secureadditional exhibitionand conventionfacilities with aview to facilitatingthe development ofHong Kong as aregional exhibitionand conventioncentre

(CIB/Invest HongKong)

l To concludediscussion andnegotiation with AAwithin 2001

l The Government hasreached broadagreement with the AAon the way forward.

(Action Completed)

l To examine the casefor establishingEconomic and TradeOffices and moreTrade DevelopmentCouncil offices indifferent major citiesin the Mainland topromote Hong Kongand to providegeneral support andassistance to HongKong business in theMainland

(CIB)

l To conclude thereview within 2001

l We have completed thereview and areconsidering the settingup of an Economic andTrade Office inGuangdong Province.Separately, the TradeDevelopment Councilopened its eleventhMainland office in Xianin February 2001.

(Action Completed)

l To identify andimplement measuresto support andexpedite thedevelopment ofHong Kong into alogistics hub

(Economic ServicesBureau (ESB))

l To commission andcomplete the studyand to beginimplementingmeasures within2001

l The study wascompleted. ESB isimplementing the studyrecommendations asappropriate.

(Action Completed)

43


l To promote eco-tourism and improvethe quality of life inHong Kong bydevising anaggressiveprogramme for bothheritage conservationand natureconservation, usingbold initiatives likebonus plot ratio,lower or waivedpremium, transfer ofdevelopment rights,etc.

(ESB/TourismCommission)

l To conclude theexercise and submitrecommendationswithin 2001

l The Tourism StrategyGroup completed inOctober 2000 itsdeliberations on issuesconcerning preservationof heritage sites forpromoting heritagetourism. Therecommendations weresubsequently channelledto the HAB. HAB isnow conducting areview on heritagepolicy, taking intoaccount therecommendations. Thetarget is to complete thereview in 2002.

l The Environment andFood Bureau isconducting a review ofthe nature conservationpolicy and will consultthe public in duecourse.

(Action in Progress:Under Review)

44


l To set up a specialteam to organiseregularly strongdelegations led bysenior governmentofficials andbusiness leaders forbusiness missionsand promotionalactivities in theMainland

(InformationServicesDepartment)

l To have the teamdevise a strategicplan by early 2001

l In co-operation with therelevant bureaux/departments, a series ofmajor promotions,including the high-levelmission led by the ChiefSecretary forAdministration to theWestern Region of theMainland, have beenheld in 2000-01. Aweek-long promotion isbeing organised inChongqing inNovember 2001. At thesame time, the team willexplore ways topromote Hong Kong-Guangdong economicco-operation.

(Action Completed)

l To consider hostinga major internationalconference onservices in 2001 toraise theinternational profileof Hong Kong as aglobal and regionalservices centre

(CIB)

l To confirm hostingof the event by theend of 2000

l The World ServicesCongress 2001 was heldin Hong Kong inSeptember 2001.

(Action Completed)

45


l To anchor HongKong’s position asChina’s window tothe world

(CIB)

l To devise a strategyto market HongKong to Mainlandcompanies, includingState-ownedEnterprises, and torecruit them to setup headquarters inHong Kong. Beginimplementationwithin 2001

(2000)

l We have discussed thematter with theMainland authoritiesand have reached broadunderstanding regardingHong Kong’s positionas China’s window tothe world. We wouldcontinue to implementstrategies conducive tomaintaining thisposition.

(Action Completed)

To develop acomprehensive harbourplan to exploit thepotential of theharbour for tourismand leisure purposes

(Planning and LandsBureau)

To formulate the planwithin 2000

(1999)

A comprehensive harbourplanning framework hasbeen formulated and thepublic consultationexercise completed. Wewill proceed to developdetailed plans forindividual action areas.

(Action Completed)

46




To formulate anaggressive investmentpromotion programmewhich focuses onforeign multinationalenterprises

(Invest Hong Kong(InvestHK))

To formulate theprogramme and startimplementation in 2001

(2000)

We have now in placeproactive investmentpromotion programmesthat are focused on foreignmultinational enterprises,particularly in nine priorityeconomic sectors, viz.,telecommunications, mediaand multimedia,information technology,technology (especiallyelectronics andbiotechnology), tourismand entertainment,financial services, trade-related services,transportation and businessand professional services.

(Action Completed)

47


To build a brand namefor InvestHK and raiseboth its and HongKong’s profile amongforeign multinationalenterprises

(InvestHK)

To launch a high-profile brand-buildingprogramme

(2000)

Our high-profile brand-building programmeincludes sponsoring the“Spirit of Hong Kong” inthe round-the-world BTGlobal Challenge whichlasted from September2000 to June 2001;organising hospitalityevents for seniorexecutives of foreignmultinational enterprises;and sponsoringinternational and regionalconferences to be held inHong Kong.

(Action Completed)

To host the FortuneGlobal Forum in 2001

(InvestHK)

To successfully host theForum

(2000)

We hosted the FortuneGlobal Forum in May2001 successfully.

(Action Completed)

Documents

MESSAGE - Policy address · MESSAGE We play an important role as a conduit ... at all cargo entry and exit points. In addition, we have been making ... procedures. Customs and Excise