WORLD TRADE
ORGANIZATIONG/TMB/N/408
8 August 2001
(01-3935)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Communication from Hong Kong, China
The Textiles Monitoring Body has received a communication from Hong Kong, China in
reply to its request for additional information in  the context of the preparation of the Body's
Comprehensive Report on the implementation of the ATC during its second stage, in accordance with
Article 8.11.
The TMB is circulating this communication to WTO Members for their information.G/TMB/N/408
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Hong Kong Economic & Trade Office
Geneva
28 May 2001
Mr. András Szepesi
Chairman
Textiles Monitoring Body
WTO154 Rue de Lausanne
1211 Geneva 21
Dear Mr. Szepesi,
Request for Information from Hong Kong, China
for the comprehensive report of the TMB
on the implementation of the Agreement on Textiles and Clothing
I refer to your letter reference TMB/100 of 14 May 2001 seeking comments and information
on the issue of illegal transshipment brought up in the United States' communication to the TMB for
preparation of its comprehensive report on the Stage 2 implementation of the Agreement on Textiles
and Clothing.  On behalf of my government, I would like to clarify the situation as requested in your
letter.
First of all, I would like to reiterate that Hong Kong, China takes the issue of illegal
transshipment seriously.  We do not condone any illegal textile transshipment and are determined to
take necessary actions to uphold the integrity of our textiles export control system.
The US Customs Service Report on Hong Kong, China in the US submission covers activities
in 1999.  Since then, Hong Kong, China has stepped up the enforcement actions vigorously and hasintroduced new measures to tackle the problem, including strengthening our Customs' intelligence
system to target unscrupulous traders, examinati on of consignments at the boundary and real time
production checks at factories.  These enhanced enforcement measures have resulted in increased
seizures and prosecutions.
At the same time, Hong Kong, China has also enhanced its co-operation with the US over
enforcement.  The US Customs Administration fu lly acknowledges Hong Kong, China's efforts and
co-operation.  We will continue our efforts in this direction in the days to come.
The so-called suspect rate of the joint visits mentioned in the US Customs Service Report
must also be viewed in their proper perspective.  They only refer to companies referred for further
investigation, which may or may not result in the establishment of illegal transshipment.  Meanwhile,
it should be pointed out that in the latest round of joint visits conducted in Hong Kong, China in
November 2000, a higher rate of factories found in order was recorded, which shows that our
enhanced enforcement measures have been successful.G/TMB/N/408
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Finally, I hope you will agree that the problem of illegal transshipment will not go away until
the elimination of quotas in 2005.  In this inte rim, Hong Kong, China remains determined and
committed to combating this problem.
Yours sincerely,
(Signed)
Stuart Harbinson
Permanent Representative
of the Hong Kong Special Administrative
Region of China to the WTO
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