The economic links between the Chinese mainland and Hong Kong
will further strengthen with the implementation of second phase of
the Mainland/Hong Kong Closer Economic Partnership Arrangement
(CEPA) on Jan. 1.
"With CEPA II coming into effect tomorrow, Hong Kong origin
products covered in 1,108 mainland 2005 tariff codes (previously
1,087 items according to the 2004 classification) may enter the
mainland tariff free. For trade in services, Hong Kong service
suppliers will gain preferential access to the mainland market in
26 service areas," a Hong Kong Trade and Industry Department (TID)
spokesman said Friday.
Further trade liberalization under CEPA II was agreed on
August27, 2004, just over eight months after the full
implementation of the first phase of CEPA on Jan. 1 in 2004.
So far, CEPA has been running smoothly. Applications for CEPA
Certificates of Origin, or CO (CEPA), and Certificates of Hong Kong
Service Supplier (HKSS) are increasing steadily. The TID has also
started receiving applications for CO (CEPA) and HKSS under CEPA
II.
Of the 712 applications for HKSS received, 663 have been
approved while 2,991 certificates out of the 3,199 applications for
CO (CEPA) have been issued, involving goods with a total value of
about 1,145 million Hong Kong dollars (147 million US dollars),the
spokesman said.
A special CEPA website (www.tid.gov.hk/english/cepa/)
was launched to disseminate CEPA-related information to help Hong
Kong investors understand more about the investment environment and
market opportunities in the mainland, and about the application and
approval procedures.
CEPA is a continuous arrangement and adopts a building-block
approach which provides a mechanism for further liberalization
measures. Starting from Jan. 1, the TID will accept applications
from local manufacturers wishing to include their goods in the next
phase of zero tariffs under CEPA, the spokesman added.
(Xinhua News Agency December 31, 2004)