Problem solving: Secretary for Commerce & Economic Development Frederick Ma speaks at the first meeting of task force to support the processing trade.

The Government attaches great importance to the impact of the new policy on the trade industry and understands the concerns and worries of Hong Kong traders, Secretary for Commerce & Economic Development Frederick Ma says.

Speaking at the first meeting of the task force to Support the processing trade today, Mr Ma said the aim of setting up the task force is to put together related Government departments, the industry and supporting organisations to jointly follow up the issue more proactively and efficiently, and to provide assistance to the affected trade.

During the meeting, members reviewed details of Announcement No. 44, 2007 issued by the Ministry of Commerce and General Administration of Customs.

Permanent Secretary for Commerce & Economic Development (Commerce, Industry & Tourism), Yvonne Choi said since the Mainland issued the announcement, the Government has carried out much follow-up work, including gauging the views and suggestions of the industry on the new policy, and relaying their views and suggestions to the Ministry of Commerce, and seeking clarifications on the details.

"We understand that the Ministry of Commerce is studying the issue and suggestions put forward. We will keep in close contact with the ministry," Ms Choi said.

As the majority of Hong Kong enterprises are concentrated in Guangdong Province, officials from the Hong Kong Economic & Trade Office there have been meeting their counterparts in the province, and helping Hong Kong traders to communicate directly with Guangdong officials.

With regard to some Hong Kong traders' suggestions of allowing local banks with renminbi business to provide standing book deposit service and using bank guarantees or letters of credit in lieu of cash for the deposit, Ms Choi said the Government has contacted the banking sector and issued a letter to the Hong Kong Association of Banks urging its members to contact the processing trade and examine feasible solutions.

To help Hong Kong traders in upgrading, restructuring and relocating, the Government is actively liaising with different Mainland provinces.