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Chinese mainland, HK sign eighth supplement to CEPA

Updated: 2011-12-13 20:08

(Xinhua)

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HONG KONG - The Chinese central government and the government of the Hong Kong Special Administrative Region (HKSAR) signed a supplement to an important trade agreement on Tuesday to give the city's firms preferential measures in trade in goods, trade in services, as well as trade and investment facilitation.

The Supplement VIII to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), representing the eighth expansion since 2004, was signed by John Tsang, financial secretary of the HKSAR government, and Vice Minister of Commerce Jiang Yaoping in Hong Kong at a ceremony witnessed by HKSAR Chief Executive Donald Tsang.

The new supplement provides for a total of 32 services liberalization and trade and investment facilitation measures, including 23 liberalization measures in 16 service sectors, and strengthens co-operation in areas such as finance, tourism, innovation and technology.

Both sides also agreed to enhance origin criteria under trade in goods, and relax the definition and related requirements of Hong Kong service suppliers.

Among the 32 measures, 15 are related to the implementation of measures announced by Chinese Vice-Premier Li Keqiang during his visit to Hong Kong in August this year.

-- Trade in goods. The new supplement allows Hong Kong's traders to include the value of raw materials and component parts originated from the Mainland when calculating the "value-added content". The value allowed to be included into the calculation can be up to half of the "value-added content" (i.e. 15 percent). The measure facilitates the trade to make use of the zero tariff preferential treatment offered to Hong Kong goods under CEPA.

-- Trade in services. Market access conditions will be further relaxed in 13 existing sectors, which will bring the total number of liberalized service sectors under CEPA from 44 to 47, involving a total of 301 liberalization measures.

The relaxation on the criteria of "substantive business operations" in the definition of Hong Kong service supplier also enables Hong Kong businesses to expand their scope of business in the Mainland with greater flexibility and diversity, thereby maximizing CEPA's benefits, according to a statement issued by the Hong Kong government.

-- Trade and investment facilitation. The two sides agreed to further strengthen co-operation in commodity inspection and quarantine, food safety, quality and standardization; and to strengthen co-operation between the two places in the area of innovation and technology, so as to support Hong Kong's development in innovation and technology.

Under Supplement VIII to CEPA, measures regarding enhancement of origin criteria, relaxation of the definition and related requirements of Hong Kong service supplier, and measures relating to trade in services will be effective from April 1, 2012.

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