24 January 2000 (Monday)

The Secretary for Economic Services, Mr Stephen Ip, together with the Chairman and other members of the Hong Kong Port and Maritime Board (PMB) set off for a promotional trip to Japan and Korea today (Monday).

Mr Ip said, "The delegation will visit Tokyo and Seoul to encourage shipowners to register their ships with the Hong Kong Shipping Register and shipping service providers to establish offices in Hong Kong."

"We will call on shipping lines, shipbuilding companies and trading houses and organise seminars to brief the maritime community on the attractiveness of the Hong Kong shipping register and give an update on the latest developments of the Hong Kong shipping industry."

Mr Ip said, "We will be visiting the largest shipping company in the world, Mitsui, which upgraded its Hong Kong office to regional status last year. Following on the momentum generated by this move, we will seek to attract more shipping companies to set up regional headquarters in Hong Kong and meet the opportunities arising from increased shipping activities through Hong Kong as a result of China's imminent entry into the World Trade Organisation."

He said, "We will take the opportunity to tell shipowners and senior management of the shipping and shipping related industries the measures being taken to promote Hong Kong as an international shipping centre and the initiatives we have taken to sharpen Hong Kong's competitive edge."

"Measures taken included lowering the cost of ship registration, simplifying ship inspection procedures, and discussion with overseas jurisdictions on reciprocal tax exemptions for shipping companies with a view to reducing the overseas tax burden of Hong Kong shipping companies and improving their international competitiveness."

In December 1999 Hong Kong initialled an Avoidance of Double Taxation Agreement on shipping with the Netherlands.

Mr Ip said, "The agreement, which exempts owners of Hong Kong ships from paying tax levied on cargo uplifted in the Netherlands and vice versa, is another measure that benefits shipowners based in Hong Kong and further strengthens our standing as the international shipping centre."

"Other countries that we have similar arrangements are the U.S., Mainland China, New Zealand and Korea. Similar agreements are under discussion with about 20 other tax administrations, including Japan, Singapore, Denmark, and the U.K.," he added.

"We have also signed a Memorandum of Understanding on preferential rates for port dues with the Mainland of China last month. This marked another big step forward towards making the Hong Kong Shipping Register more competitive as shipowners of Hong Kong registered ships will be paying lower port charges when their ships call at ports in the Mainland from 28 January 2000."

During their stay in Tokyo, the delegation will visit the Japan Maritime Research Institute and a Maritime Museum to draw on the experience of their establishment and operation.

Members of the delegation include the PMB Chairman, Mr Peter Thompson; Chairman of the PMB Shipping Committee, Mr Frank Tsao; Chairman of the PMB Shipping Register Subcommittee, Mr Liang Ming-hang; PMB Member and Vice Chairman of the Hong Kong Shipowners Association, Mr Dan Bradshaw; PMB Secretary, Mr Alex Fong; Director of Marine, Mr Tsui Shung-yiu; and Chief Assistant Registrar of Marine Department, Mr So Ping-chi.