LEGISLATIVE COUNCIL ─ 24 March 2004 4685 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 24 March 2004 The Council met at half-past Two o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE MRS RITA FAN HSU LAI-TAI, G.B.S., J.P. THE HONOURABLE KENNETH TING WOO-SHOU, J.P. THE HONOURABLE JAMES TIEN PEI-CHUN, G.B.S., J.P. DR THE HONOURABLE DAVID CHU YU-LIN, J.P. THE HONOURABLE CYD HO SAU-LAN THE HONOURABLE ALBERT HO CHUN-YAN IR DR THE HONOURABLE RAYMOND HO CHUNG-TAI, J.P. THE HONOURABLE LEE CHEUK-YAN THE HONOURABLE MARTIN LEE CHU-MING, S.C., J.P. DR THE HONOURABLE ERIC LI KA-CHEUNG, G.B.S., J.P. DR THE HONOURABLE DAVID LI KWOK-PO, G.B.S., J.P. THE HONOURABLE FRED LI WAH-MING, J.P. DR THE HONOURABLE LUI MING-WAH, J.P. THE HONOURABLE NG LEUNG-SING, J.P. 4686 LEGISLATIVE COUNCIL ─ 24 March 2004 THE HONOURABLE MARGARET NG THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, G.B.S., J.P. THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE HUI CHEUNG-CHING, J.P. THE HONOURABLE CHAN KWOK-KEUNG, J.P. THE HONOURABLE CHAN YUEN-HAN, J.P. THE HONOURABLE BERNARD CHAN, J.P. THE HONOURABLE CHAN KAM-LAM, J.P. THE HONOURABLE MRS SOPHIE LEUNG LAU YAU-FUN, S.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG THE HONOURABLE SIN CHUNG-KAI THE HONOURABLE ANDREW WONG WANG-FAT, J.P. DR THE HONOURABLE PHILIP WONG YU-HONG, G.B.S. THE HONOURABLE WONG YUNG-KAN THE HONOURABLE JASPER TSANG YOK-SING, G.B.S., J.P. THE HONOURABLE HOWARD YOUNG, S.B.S., J.P. DR THE HONOURABLE YEUNG SUM THE HONOURABLE YEUNG YIU-CHUNG, B.B.S. THE HONOURABLE LAU CHIN-SHEK, J.P. LEGISLATIVE COUNCIL ─ 24 March 2004 4687 THE HONOURABLE LAU KONG-WAH, J.P. THE HONOURABLE LAU WONG-FAT, G.B.S., J.P. THE HONOURABLE MIRIAM LAU KIN-YEE, J.P. THE HONOURABLE AMBROSE LAU HON-CHUEN, G.B.S., J.P. THE HONOURABLE EMILY LAU WAI-HING, J.P. THE HONOURABLE CHOY SO-YUK THE HONOURABLE ANDREW CHENG KAR-FOO THE HONOURABLE SZETO WAH THE HONOURABLE TIMOTHY FOK TSUN-TING, S.B.S., J.P. DR THE HONOURABLE LAW CHI-KWONG, J.P. THE HONOURABLE TAM YIU-CHUNG, G.B.S., J.P. DR THE HONOURABLE TANG SIU-TONG, J.P. THE HONOURABLE ABRAHAM SHEK LAI-HIM, J.P. THE HONOURABLE LI FUNG-YING, J.P. THE HONOURABLE HENRY WU KING-CHEONG, B.B.S., J.P. THE HONOURABLE TOMMY CHEUNG YU-YAN, J.P. THE HONOURABLE MICHAEL MAK KWOK-FUNG THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE LEUNG FU-WAH, M.H., J.P. DR THE HONOURABLE LO WING-LOK, J.P. 4688 LEGISLATIVE COUNCIL ─ 24 March 2004 THE HONOURABLE WONG SING-CHI THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE IP KWOK-HIM, J.P. THE HONOURABLE AUDREY EU YUET-MEE, S.C., J.P. THE HONOURABLE MA FUNG-KWOK, J.P. MEMBER ABSENT: THE HONOURABLE LAU PING-CHEUNG PUBLIC OFFICERS ATTENDING: THE HONOURABLE DONALD TSANG YAM-KUEN, G.B.M., J.P. THE CHIEF SECRETARY FOR ADMINISTRATION THE HONOURABLE HENRY TANG YING-YEN, G.B.S., J.P. THE FINANCIAL SECRETARY THE HONOURABLE ELSIE LEUNG OI-SIE, G.B.M., J.P. THE SECRETARY FOR JUSTICE THE HONOURABLE MICHAEL SUEN MING-YEUNG, G.B.S., J.P. SECRETARY FOR HOUSING, PLANNING AND LANDS PROF THE HONOURABLE ARTHUR LI KWOK-CHEUNG, G.B.S., J.P. SECRETARY FOR EDUCATION AND MANPOWER DR THE HONOURABLE YEOH ENG-KIONG, J.P. SECRETARY FOR HEALTH, WELFARE AND FOOD DR THE HONOURABLE PATRICK HO CHI-PING, J.P. SECRETARY FOR HOME AFFAIRS LEGISLATIVE COUNCIL ─ 24 March 2004 4689 THE HONOURABLE STEPHEN IP SHU-KWAN, G.B.S., J.P. SECRETARY FOR ECONOMIC DEVELOPMENT AND LABOUR THE HONOURABLE FREDERICK MA SI-HANG, J.P. SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY THE HONOURABLE AMBROSE LEE SIU-KWONG, IDSM, J.P. SECRETARY FOR SECURITY THE HONOURABLE JOHN TSANG CHUN-WAH, J.P. SECRETARY FOR COMMERCE, INDUSTRY AND TECHNOLOGY CLERKS IN ATTENDANCE: MR RICKY FUNG CHOI-CHEUNG, J.P., SECRETARY GENERAL MR LAW KAM-SANG, J.P., DEPUTY SECRETARY GENERAL MR RAY CHAN YUM-MOU, ASSISTANT SECRETARY GENERAL 4690 LEGISLATIVE COUNCIL ─ 24 March 2004 TABLING OF PAPERS The following papers were laid on the table pursuant to Rule 21(2) of the Rules of Procedure: Subsidiary Legislation/Instruments L.N. No. Shipping and Port Control Regulations (Amendment of Eighteenth Schedule) Notice 2004.................... 42/2004 Animals and Plants (Protection of Endangered Species) (Exemption) (Amendment) Order 2004 (L.N. 5 of 2004) (Commencement) Notice 2004 ............ 43/2004 Animals and Plants (Protection of Endangered Species) Ordinance (Amendment of Schedules) Notice 2004 (L.N. 6 of 2004) (Commencement) Notice 2004 .... 44/2004 Other Papers No. 73 ─ AIDS Trust Fund 2002-2003 Annual Accounts together with the Director of Audit's Report No. 74 ─ Audited Statement of Accounts of the Hong Kong Rotary Club Students' Loan Fund together with the Director of Audit's Report for the year ended 31 August 2003 No. 75 ─ Audited Statement of Accounts of the Sing Tao Foundation Students' Loan Fund together with the Director of Audit's Report for the year ended 31 August 2003 Report of the Bills Committee on Copyright (Amendment) Bill 2001 and Copyright (Amendment) Bill 2003 in respect of the second bill ORAL ANSWERS TO QUESTIONS PRESIDENT (in Cantonese): Questions. First question. LEGISLATIVE COUNCIL ─ 24 March 2004 4691 Certificates of Origin Under CEPA 1. MR KENNETH TING (in Cantonese): Madam President, will the Government inform this Council: (a) of the number of applications for Certificates of Origin under the Mainland/Hong Kong Closer Economic Partnership Arrangement (CEPA) made to the authorities since its implementation, broken down by type of trades; (b) whether there were rejected cases among such applications; if so, of the number of such cases and the main reasons for rejection; and (c) whether the applicants for Certificates of Origin under CEPA have sought assistance from the authorities in connection with the submission or rejection of their applications; if they have, of the number of such cases and the major issues on which they require assistance? SECRETARY FOR COMMERCE, INDUSTRY AND TECHNOLOGY (in Cantonese): Madam President, my reply is as follows: (a) Since the implementation of CEPA and as at 22 March 2004, the Trade and Industry Department (TID) and the Government Approved Certification Organizations have received a total of 488 CEPA Certificate of Hong Kong Origin (CO(CEPA)) applications involving products of a number of sectors. In terms of product types, 13 broad categories are involved. Detailed breakdown is set out in Annex. (b) So far there have only been three unsuccessful CO(CEPA) applications, which were due to (1) incorrect information provided by the applicant, and (2) failure of the product in fulfilling the relevant CEPA origin rule. (c) So far we have not been approached by CO(CEPA) applicants for assistance in connection with the rejection of applications. 4692 LEGISLATIVE COUNCIL ─ 24 March 2004 Annex Number of Applications for CO(CEPA) Product Type Number of Applications Food 3 Chemical Products 21 Pharmaceutical Products 146 Cosmetics 1 Colouring Matters 43 Plastics and Plastic Articles 27 Paper and Printed Articles 11 Textiles and Clothing 172 Jewelry and Precious Metals 2 Electrical and Electronic Products 49 Toys 1 Metal Products 9 Clocks and Watches 3 Total: 488 MR KENNETH TING (in Cantonese): Apart from the existing 374 items exempted from tariff, what is the estimated number of new items that can be added this year? What are the schedule and arrangements for consultations between the SAR Government and the department responsible for trade and commerce on the Mainland? SECRETARY FOR COMMERCE, INDUSTRY AND TECHNOLOGY (in Cantonese): Madam President, the TID issued a notice in November last year to notify Hong Kong manufacturers of the mechanism for and formalities of applying for zero tariff in the next phase of CEPA. On the formalities, manufacturers can submit their application forms to the TID from 1 January 2004 onwards. The closing date for submitting applications was originally 31 March, however, the TID has recently announced a postponement of the closing date for submission of applications to the end of April. LEGISLATIVE COUNCIL ─ 24 March 2004 4693 As at 22 March, the TID has received a total of 94 applications covering quite a wide range of goods, including food and beverages (including the mooncake manufacturing industry we visited yesterday), electrical and electronic products, textile and clothing, metal products, plastics articles, optical products, and so on. The TID has begun to verify the information in the applications. We hope that the processing and verification of the applications can be completed before 1 June and to submit the applications to the Ministry of Commerce in Beijing before that date, so that consultations on the criteria of the origin rules for the goods concerned can commence. We hope that by the end of this year, that is, some time before 1 October, the results of the consultations can be announced (Appendix 1) and the new series of products enjoying zero tariff can be introduced on 1 January next year. MR HUI CHEUNG-CHING (in Cantonese): Madam President, the Secretary mentioned in part (a) of the main reply that there were 488 applications involving 13 product categories. May I ask the Secretary of the amount involved in these 488 applications covering 13 categories? SECRETARY FOR COMMERCE, INDUSTRY AND TECHNOLOGY (in Cantonese): The 488 applications for Certificates of Origin are just applications.