U.S. REVIEWS IMPORT REGULATIONS FOR HONG KONG
Byline: Jennifer Owens
WASHINGTON — After a month of factory visits in Hong Kong, U.S. Customs agents began Thursday to discuss whether they should reduce the additional certification requirements placed on imports from Hong Kong to fight illegal transshipments from China.
Janet Labuda, a manager in the U.S. Customs Office of Strategic Trade, would not predict what change could come from the internal meetings, but an easing doesn’t seem likely soon. The meetings should last for several days.
While the factory visits went well, Labuda said illegal transshipping is still going on in Hong Kong.
“I think the problem is significant enough that you won’t solve this overnight or in two visits,” she said. The trip to Hong Kong last month was the second made by Customs inspectors since the unusual requirements were levied last June on several key categories of Hong Kong shipments.
These requirements, including single-entry bonds, have meant higher costs for importers, who want to see them lifted.
Labuda acknowledged that Hong Kong is trying to fight illegal transshipping by establishing new production notification and factory audit systems. She said both “are effective and viable systems,” and added, “I think the teams are working quite well together.”
Nevertheless, illegal transshipping continues on the island, and U.S. agents complain that they have not been allowed to see factory books and records during their visits.
“That was a sticking point and remains a sticking point,” Labuda said.
But Laura Baughman, president of The Trade Partnership, an economic consulting firm here for retailers and importers, said Hong Kong should be credited for allowing the U.S. to visit its factories at all.
“It’s really something special that Hong Kong would allow another government to come in and nose around,” she said. “I guess the bottom line is there’s a quota and demand is larger than the quota, so you can’t expect that there wouldn’t be any transshipments. The question is, is there a system in place and does this system work?”
Alex Wong, first secretary of the Hong Kong Economic Trade Office in Washington, said the answer is yes.
“I think it takes some time for the checks to be complete and for us to see the real results,” he said. “But according to what we’ve heard, the Hong Kong system is very good. The Hong Kong Customs agents are very diligent.”
Given the extent of trade in Hong Kong, illegal transshipping has always been a problem, Wong said, adding, “We have always acknowledged that this is a problem, and the Hong Kong government has tried the best they could to stop the activity. But it’s like combating any crime. No matter how much effort you put into it, there are always people who manage to get through.”