Laws of the People's Republic of China

General Administration of Customs

Announcement No. 54, 2005 of the General Administration of Customs of the People's Republic of China

[2005] No. 54

In accordance with related regulations in Appendix 2 of Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) and Appendix 2 of Mainland and Macao Closer Economic Partnership Arrangement (CEPA), now changes are made to the place of origin standards of item 91021100 and item 91021200 in Announcement No. 45, 2004 of the General Administration of Customs of the People's Republic of China:

I.

Changes about the place of origin standards on Hong Kong watches:

New place of origin standards on Hong Kong watches are:

Assemble component parts and fittings into watches. The main process is to embed the core on the inside of the body, and to assemble the component parts and fittings, including the fasteners, belts, covers and batteries etc. Then test, adjust and verify the watches, and follow the ad valorem percentage standard.

Or,

Assemble component parts and fittings into watches. The main process is to embed the core on the inside of the body, and to assemble the component parts and fittings, including the fasteners, belts, covers and batteries etc. Then test, adjust and verify the watches, and the design of appearance is finished in Hong Kong and the self-owned brand of watches designated by Hong Kong and responsible sections in the mainland. There must be obvious mark showing originating from Hong Kong on the watchcase of the self-owned brand of watches, for example: Made in Hong Kong or Hong Kong, etc.

The above-mentioned Hong Kong self-owned brand means:

1.

Owner of the brand shall be company incorporated in Hong Kong, with valid business registration in Hong Kong and the factory having been registered for more than one year. And

2.

Owner of the brand shall apply the product brand under timekeeper category in accordance with Trade Marks Ordinance, and become the registration owner of related brand. And

3.

The registration of trademark/brand includes original brand in Hong Kong and the foreign brand purchased by Hong Kong company incorporated.

Procedure on affirming list for Hong Kong self-owned watches:

Industry and Trade Department of HONG KONG SAR (ITD for short as following) verifies the information submitted by the applicants, which includes the applicants' qualification of trademark owners, the registration certificate issued by the trademark registration division chief and the registration announcement published on "Hong Kong Intellectual Property Bulletin", in order to ensure that the related brands are Hong Kong's self-owned brand within the CEPA frame. HK customs shall make a field inspection to the factories and verify the situation of manufacturing.

After the verification of ITD and Hong Kong Customs, the ITD shall notify the list to Ministry of Commerce.

Ministry of Commerce shall finish the cognition of Hong Kong self-owned brands with 60 days as of the date of reception of the list.

With the approval of Ministry of Commerce, the list shall be notified to ITD in written forms. Then Place of Origin of CEPA could be issued by Hong Kong Licence Institution, with which import with Zero Tariff could be permitted.

The watch products that affirmed to be the Hong Kong self-owned brands shall clearly print brand name on the Place of Origin Certificate of CEPA for verification by Customs in mainland.

II.

Changes about the place of origin standards on Macao watches:

New place of origin standards on Macao watches are:

Assemble component parts and fittings into watches. The main process is to embed the core on the inside of the body, and to assemble the component parts and fittings, including the fasteners, belts, covers and batteries etc. Then test, adjust and verify the watches, and follow the ad valorem percentage standard.

Or,

Assemble component parts and fittings into watches. The main process is to embed the core on the inside of the body, and to assemble the component parts and fittings, including the fasteners, belts, covers and batteries etc. Then test, adjust and verify the watches, and the design of appearance is finished in Macao and the self-owned brand of watches designated by Macao and responsible sections in the mainland. There must be obvious mark showing originating from Macao on the watchcase of the self-owned brand of watches, for example: Made in Macao, Made in Macao, Macao or Macao, etc.

The above-mentioned Macao self-owned brand means:

1.

Owner of the brand shall register at Businesses and Vehicles Registry, with industry registration for more than one year. And

2.

Owner of the brand shall apply the product brand under timekeeper category in accordance with Macao Industry Property Legal System, and become the registration owner of related brand. And

3.

The registration of trademark/brand includes original brand in Macao and the foreign brand purchased by Macao company incorporated.

Procedure on affirming list for Macao self-owned watches:

Macao Economic Services of MACAO SAR (MES for short as following) verifies the information submitted by the applicants, which includes the applicants' qualification of trademark owners, the registration certificate issued by MES and the registration announcement published on "Macao Special Administrative Region Bulletin ", in order to ensure that the related brands are Macao's self-owned brand within the CEPA frame. MES customs shall make a field inspection to the factories and verify the situation of manufacturing.

After the verification of MES, the MES shall notify the list to Ministry of Commerce.

Ministry of Commerce shall finish the cognition of Macao self-owned brands with 60 days as of the date of reception of the list.

With the approval of Ministry of Commerce, the list shall be notified to MES in written forms. Then Place of Origin of CEPA could be issued by MES, with which import with Zero Tariff could be permitted.

The watch products that affirmed to be the Macao self-owned brands shall clearly print brand name on the Place of Origin Certificate of CEPA for verification by Customs in mainland.

The above-mentioned place of origin standards shall be implemented as of November 15, 2005.

General Administration of Customs of the People's Republic of China

November 14, 2005