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Following is the speech (English translation) by the Secretary for Commerce, Industry and Technology, Mr Joseph W P Wong, in moving the second reading of the Import and Export (Amendment) Bill 2007 at the Legislative Council today (April 18):
Madam President,
I move the Second Reading of the Import and Export (Amendment) Bill 2007. The Bill seeks to enable the Chief Executive-in-Council (the CE-in-Council) to make regulations that provide for the lodgement of electronic cargo information in advance.
The Financial Secretary announced in the 2007―08 Budget the construction of an electronic advance cargo information (e-ACI) system for the customs clearance of road cargoes, with a view to developing trade. With the electronic system, all cross-boundary trucks, except those selected for inspection, will enjoy seamless customs clearance at land boundary control points. The Customs and Excise Department will also have more room to facilitate the passage of transshipment cargoes which involve inter-modal transfer. For example, air-land transshipment cargoes may only be subject to customs inspection at either one of the control points, instead of having to go through inspections at both control points under the existing procedure.
International and regional initiatives which ride on electronic customs clearance are emerging among our major trading partners to facilitate and secure the flow of legitimate trade. China also sets out its vision that APEC should strive to achieve electronic customs clearance at the checkpoints of all APEC economies by 2010. Hence, our initiative is in line with international and regional trends in moving towards electronic customs clearance. It will also maintain Hong Kong's competitiveness as an international trading centre.
We have consulted and closely liaised with the industry stakeholders involved in the handling of cross-boundary road cargoes. The majority of the stakeholders consulted, including representatives of shippers, freight forwarders, express couriers and truck drivers, welcome early implementation of the electronic system and support the need for legislation.
We propose to amend the Import and Export Ordinance to give the CE-in-Council the necessary regulation-making power for requiring the submission of e-ACI in respect of different modes of transport. After the enactment of the Bill, we shall make the Import and Export (Electronic Cargo Information) Regulation to tie in with the roll-out of the e-ACI system for road cargoes.
We have provided this Council with the draft Regulation to let Members and the public know the key parameters of our proposed legislative framework. These key parameters include ―
(a) a transitional period of 18 months during which the new mode of submitting e-ACI for road cargoes will be optional. The stakeholders concerned will be required to make the relevant e-ACI submissions after the end of the transitional period;
(b) the principle that the level of penalty should be commensurate with the nature of non-compliance with the statutory obligations under the electronic system. We shall also provide defence or exemption provisions on justifiable grounds; and
(c) vesting the Commissioner of Customs and Excise with the power to waive the e-ACI reporting requirements in emergency circumstances. In case of system failure, C&ED will implement a contingency plan to ensure that any such incident would not cause traffic confusion nor compromise the integrity of customs control at the land boundary.
Subject to this Council's approval of our legislative proposal and the funding proposal to be submitted later, we plan to roll out the e-ACI system for road cargoes in 2009 and commence an 18-month transitional period. We aim to mandate the e-ACI submissions for road cargoes in early 2011.
I wish to emphasise that the transitional period aims to provide all parties concerned with adequate time to prepare themselves for e-ACI submissions. We plan to provide seminars on the new workflow next year and hands-on training throughout the transitional period. We shall also introduce measures to encourage frequent users to submit e-ACI at the early stage of the transitional period.
Madam President, with these remarks, I look forward to the passage of the Bill.
Ends/Wednesday, April 18, 2007
Issued at HKT 12:24
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