Textiles

The HKSAR textile exports to the European Union (EU), Norway, Canada
and the USA are subject to quantitative restrictions maintained under the
WTO Agreement on Textiles and Clothing (ATC) which came into force
on January 1, 1995. These quantitative restrictions will be removed by
2005 under a 10-year phase-out programme. The HKSAR participated
actively in the review of the implementation of the quota phase-out
programme and continued to monitor closely the functioning of the ATC's
supervisory body, the Textiles Monitoring Body. Through the
co-ordination of the International Textiles and Clothing Bureau (of which
the HKSAR is a member), the HKSAR and a group of developing country
exporters of textiles work together to ensure that the liberalisation process
under the ATC is on course, and to explore possibilities for further
liberalisation.

In May 1997, the US rescinded the single entry bond which, among other
additional documentation requirements, was imposed by the US Customs
in June 1996 on imports of 10 categories of the HKSAR garments. The
revocation decision signalled the USA's recognition of Hong Kong's
determination and efforts in tackling illegal textile transshipment.

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