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Process manufacturers can now pay standing book deposits with bank guarantees instead of cash, the Ministry of Commerce said yesterday.
The move reversed the ministry's July 23 announcement, which required category A and B companies to pay the deposits in cash.
Hong Kong's officials and industry welcomed the announcement after earlier fears that the regulation could cause cash flow problems that might lead to factory closures.
Hong Kong's business sector said factories, especially the smaller ones, didn't have sufficient cash to fulfill the requirement.
Hong Kong Financial Secretary John Tsang said yesterday's announcement would help traders adjust to central government policies.
"We are delighted and thankful to the central government for accepting the suggestion of the SAR government and Hong Kong traders and bankers to allow the industry to pay standing book deposits with bank guarantees in lieu of cash," he said.
"I believe the new arrangement will greatly help Hong Kong enterprises adjust to the recent policy changes in process trade."
The Ministry of Commerce and General Administration of Customs also added 1,853 commodities to the process trade restricted list in July.
Tsang said he had relayed the industry's worries to Beijing last month, together with Secretary for Commerce and Economic Development Frederick Ma.
Ma said yesterday's announcement would ease the burden for the city's traders.
Speaking from the APEC meeting in Sydney, Ma said the new announcement was not a short-term measure as the central government was eager to help Hong Kong traders transform their business model.
But Ma said Hong Kong companies still need to transform and upgrade their businesses in the long term.
The Federation of Hong Kong Industries said the move was encouraging. "It is definitely good news for us It's a huge problem for small companies to settle the deposits by cash only," said Clement Chen, chairman of the federation.
(China Daily September 6, 2007)
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发表于 2017-8-6 14:21:42