RESTRICTED
WORLD TRADE GPA/W/28
6November 1996
ORGANIZATION(96-4691)
Original: English Committee onGovernment Procurement
APPLICATION FOR ACCESSION TOTHE AGREEMENT ON
GOVERNMENT PROCUREMENT
Hong Kong
Thefollowing communication, dated 31October 1996, hasbeenreceived fromthePermanent
Representative ofHong Kong totheWTO withtherequest thatitbecirculated totheSignatories to
theAgreement onGovernment Procurement (1994).
_______________
Ihavethehonour toinform youthattheGovernment ofHong Kong isinterested inacceding
totheAgreement onGovernment Procurement 1994 (theAgreement) andwould begrateful ifyou
could convey thiscommunication totheSignatories oftheAgreement.
AdraftofferfromtheGovernment ofHong Kong isattached atAttachment 1.Listsofrelevant
publications corresponding toAppendices II,IIIandIVoftheAgreement areattached atAttachments 2,
3and4respectively.
TheGovernment ofHong Kong wishes todraw totheattention oftheSignatories ofthe
Agreement thefollowing points:
(a) thedraftofferatAttachment 1isessentially thesame asthefinaloffersubmitted by
Hong Kong attheconcluding stages ofnegotiations fortheAgreement andwhich is
appended tothelegal textoftheAgreement. There areonlyafewchanges which
arenotofasubstantive nature inAnnex 1andAnnex 4oftheattached draftoffer.
They reflect organizational changes intheHong Kong Government andupdated
nomenclature ofafewtypes ofservices. Anexplanatory noteonthese changes isat
Attachment 5;and
(b) notwithstanding Hong Kong'sintention todischarge fullyitsobligations under the
Agreementuponaccession,theHongKongGovernmentwouldwishtoseekadeferment
byoneyearoftheapplication ofArticle XXtoHong Kong toallow timeforthesetting
upofaBidChallenge System intheterritory.
Afinaldecision bytheHong Kong Government toaccede totheAgreement onGovernment
Procurement willalsobedependent onallthesectoral non-application measures intheAgreement
specifically aimed atHong Kong being removed andtheSignatories agreeing tolaunch anearlyreview
oftheAgreement withaviewinparticular toremoving alldiscriminatory measures andpractices which
distort openprocurement.
TheGovernment ofHong Kong stands ready todiscuss withandrespond toanyquestions from
theSignatories oftheAgreement onGovernment Procurement relating toourcommunication.GPA/W/28
Page2
Attachment 1
DRAFT OFFER
Forinclusion inAppendix IoftheAgreement onGovernment Procurement (1994)
ANNEX 1
Central Government Entities which Procure inAccordance
WiththeProvisions ofthisAgreement
Supplies
Threshold : 130,000 SDR forgoods andservices other thanconstruction services
5,000,000 SDR forconstruction services
ListofEntities :
1. Agriculture andFisheries Department
2. Architectural Services Department
3. Audit Department
4. Auxiliary Medical Services
5. Buildings Department
6. Census andStatistics Department
7. Civil AidServices
8. Civil Aviation Department
9. Civil Engineering Department
10. Civil Service Training andDevelopment Institute
11. Companies Registry
12. Correctional Services Department
13. Customs andExcise Department
14. Department ofHealth
15. Drainage Services Department
16. Education Department
17. Electrical andMechanical Services Department
18. Environmental Protection Department
19. FireServices Department
20. Government Flying Service
21. Government Laboratory
22. Government Land Transport Agency
23. Government Property Agency
24. Government Secretariat
25. Government Supplies Department
26. Highways Department
27. Home Affairs Department
28. Hong Kong Monetary Authority
29. Hospital Services Department
30. Immigration Department
31. Independent Commission Against CorruptionGPA/W/28
Page3
32. Industry Department
33. Information Services Department
34. Information Technology Services Department
35. Inland Revenue Department
36. Intellectual Property Department
37. Judiciary
38. Labour Department
39. Lands Department
40. Land Registry
41. Legal Department
42. Legal AidDepartment
43. Marine Department
44. Office oftheCommissioner forAdministrative Complaints
45. Office oftheTelecommunications Authority
46. Official Receiver 'sOffice
47. Planning Department
48. PostOffice
49. Printing Department
50. Public Service Commission
51. Radio Television Hong Kong
52. Rating andValuation Department
53. Royal Hong Kong Police Force (including Royal Hong Kong Auxiliary Police Force)
54. Royal Observatory
55 Social Welfare Department
56. Secretariat, Independent Police Complaints Council
57. Secretariat, Standing Commission onCivil Service Salaries andConditions ofService
58. Secretariat, Standing Committee onDisciplined Services Salaries andConditions ofService
59. Student Financial Assistance Agency
60. Technical Education andIndustrial Training Department
61. Television andEntertainment Licensing Authority
62. Territory Development Department
63. Trade Department
64. Transport Department
65. Treasury
66. Secretariat, University Grants Committee
67. Water Supplies Department
68. Management Services Agency
69. Official Languages Agency
70. Registration andElectoral OfficeGPA/W/28
Page4
ANNEX 2
Sub-Central Entities which Procure inAccordance
WiththeProvisions ofthisAgreement
Threshold : 200,000 SDR forgoods andservices other thanconstruction services
5,000,000 SDR forconstruction services
ListofEntities :
1. Urban Council andUrban Services Department
2. Regional Council andRegional Services DepartmentGPA/W/28
Page5
ANNEX 3
AllOther Entities which Procure inAccordance
WiththeProvisions ofthisAgreement
Threshold : 400,000 SDR forsupplies andservices other thanconstruction services
5,000,000 SDR forconstruction services
ListofEntities :
1. Housing Authority andHousing Department
2. Hospital Authority
3. Airport Authority
4. Mass Transit Railway Corporation
5. Kowloon-Canton Railway CorporationGPA/W/28
Page6
ANNEX 4
Services
Thefollowingservices,classifiedaccordingtotheUnitedNationsCentralProductClassification
(CPC) Code onGoods andServices, willbecovered:
CPC
1. Computer andRelated Services
- Databaseandprocessing services 843+844
- Maintenance andrepair service ofoffice 845
machinery andequipment including computers
- Other Computer Services 849
2. Rental/Leasing Services Without Operators
- Relating toships 83103
- Relating toaircraft 83104
- Relating toother transport equipment 83101+83102+83105
- Relating toother machinery andequipment 83106+83109
3. Other Business Services
Maintenance andrepair ofequipment (notincluding 633+8861+8866
maritime vessels, aircraft orother transport equipment)
Market Research &Public Opinion Polling Services 864
Security Services 87304
Building-Cleaning Services 874
Advertising Services 871
4. Courier Services
5. Telecommunications Services (Provisions ofcertain types ofservice
may require licensing under the
Telecommunication Ordinance)
Value-added telecommunications services 7523, 843
Basic telecommunications services 7521, 7529
Telecommunications-related services 754
6. Environmental Services
- Sewage services 9401GPA/W/28
Page7
- Refuse disposal services 9402
7. Financial Services ex81
- AllInsurance andInsurance-Related Services (exceptions aresetoutinparagraph 5
ofGeneral Conditions)
- Banking andother financial services
8. Transport Services
- Airtransportation services 731,732,734
(excluding transportation ofmail)
- Road transport services 712,6112, 8867GPA/W/28
Page8
ANNEX 5
Construction Services
Definition :
Aconstructionservicescontractisacontractwhichhasasitsobjectivetherealizationbywhatever
means ofcivilorbuilding works, inthesense ofDivision 51oftheCentral Product Classification
(CPC).
ListofDivision 51CPC
Allservices ofDivision 51oftheCPC
Threshold : 5,000,000 SDRGPA/W/28
Page9
GENERAL CONDITIONS APPLICABLE TOENTITIES AND SERVICES
SPECIFIED INANNEXES 1TO5
1. Notwithstanding anything intheAnnexes 1-5,theAgreement shallnotapply to:
- Allconsultancy andfranchise arrangements
- Transportation ofmailbyair
- Statutory insurances including thirdparty liability inrespect ofvehicles andvessels
andemployer 'sliability insurance inrespect ofemployees
- Purchase ofoffice orresidential accommodation bytheGovernment Property Agency.
2. HongKong'scommitmentsontelecommunicationsservicesaresubjecttothetermsofthelicence
heldbyHong Kong Telecommunications International Ltd.(HKTI) until30September 2006
fortheexclusive provision ofexternal telecommunications circuits andcertain external
telecommunications services. Theexclusive services covered bythelicence arelisted below.
(a) Circuits byradio fortheprovision ofexternal public telecommunications services.
(b) Theoperation ofcircuits bysubmarine cable fortheprovision ofexternal public
telecommunications services.
(c) External andinternal Public Telegram Service.
(d) External andinternal Public Telex Service.
(e) External public telephone services tosubscribers tothePublic Switched Telephone
Network byradio, submarine cable andsuchoverland cables asareauthorized.
(f) External dedicated andleased telephone circuit services byradio, submarine cable and
suchoverland cables asareauthorized.
(g) External dedicated andleased circuits for-
telegraph
data
facsimile.
(h) Hong Kong coast stations andcoast earth stations oftheMaritime Mobile service and
Maritime Mobile -Satellite Service.
(i) Hong Kong Aeronautical Stations oftheAeronautical Mobile Service andAeronautical
Mobile -Satellite Service forradiocommunications services between aircraft operating
agencies andtheiraircraft inflight.
(j) International telecommunications services routed intransit viaHong Kong.GPA/W/28
Page10
(k) Except totheextent thattheGovernor-in-Council mayfrom timetotimeotherwise
inwriting direct, external television andvoice programme transmission services to
andfrom Hong Kong.
3. Operators oftelecommunications services mayrequire licensing under theTelecommunication
Ordinance. Operators applying forthelicences arerequired tobeestablished inHong Kong
under theCompanies Ordinance.
4. Hong Kong Government shallnotbeobliged topermit thesupply ofsuchservices cross-border,
orthrough commercial presence orthepresence ofnatural persons.
5. Thefollowing services areexcluded from theFinancial Services under Annex 4
1. CPC81402
Insurance andpension consultancy services
2. CPC81339
Money broking
3. CPC8119+81323
Asset management, suchascashorportfolio management, allforms ofcollective
investment management, pension fundmanagement, custodial depository andtrust
services.
4. CPC81339 or81319
Settlement andclearing services forfinancial assets, including securities, derivative
products, andother negotiable instruments.
5. CPC8131 or8133
Advisory andother auxiliary financial services onalltheactivities listed in
subparagraphs 5(a)(v) to(xvi) intheAnnex onFinancial Services intheGeneral
Agreement onTrade inServices, including credit reference andanalysis, investment
andportfolio research andadvice, advice onacquisitions andoncorporate restructuring
andstrategy.
6. CPC81339+81333+81321
Trading forownaccount orforaccount ofcustomers, whether onanexchange, inan
over-the-counter market orotherwise, thefollowing:
- money market instruments (cheques, bills, certificate ofdeposits, etc.)
- foreign exchange
- derivative products including, butnotlimited tofutures andoptionsGPA/W/28
Page11
- exchange rateandinterest rateinstruments, including products suchasswaps,
forward rateagreement, etc.
- transferable securities
- other negotiable instruments andfinancial assets, including bullion.GPA/W/28
Page12
Attachment 2
DRAFT OFFER
Forinclusion inAppendix IIoftheAgreement onGovernment Procurement (1994)
HONG KONG
Annex 1
Hong Kong Government Gazette
Daily Press
Annex 2
Hong Kong Government Gazette
Daily Press
Annex 3
Hospital Authority - Hong Kong Government Gazette
- Daily Press
Housing Authority - Hong Kong Government Gazette
- Daily Press
Kowloon-Canton Railway Corporation - tobenotified
Mass Transit Railway Corporation - Daily Press
Airport Authority - Daily PressGPA/W/28
Page13
Attachment 3
DRAFT OFFER
Forinclusion inAppendix IIIoftheAgreement onGovernment Procurement (1994)
HONG KONG
Annex 1
Hong Kong Government Gazette
Annex 2
Hong Kong Government Gazette
Daily Press
Annex 3
Hospital Authority - Hong Kong Government Gazette
Housing Authority - Hong Kong Government Gazette
Kowloon-Canton Railway Corporation - tobenotified
Mass Transit Railway Corporation - Notapplicable
Airport Authority - NotapplicableGPA/W/28
Page14
Attachment 4
DRAFT OFFER
Forinclusion inAppendix IVoftheAgreement onGovernment Procurement (1994)
HONG KONG
Annex 1
Hong Kong Government Gazette
Annex 2
Hong Kong Government Gazette
Annex 3
Hospital Authority - Hong Kong Government Gazette
Housing Authority - Hong Kong Government Gazette
Kowloon-Canton Railway Corporation - tobenotified
Mass Transit Railway Corporation - provided topotential suppliers uponissuance
ofinvitations toparticipate
Airport Authority - provided topotential suppliers uponissuance
ofinvitations toparticipateGPA/W/28
Page15
Attachment 5
SUMMARY OFPRESENTATIONAL CHANGES TOHONG KONG 'SOFFER (1994 vs1996)
Annex 1: Central Government Entities which Procure inAccordance WiththeProvisions ofthis
Agreement
(a) Item7in1994 Offer: "City andNewTerritories Administration"
Deleted. Itsfunctions havebeentaken upbythe"Government Secretariat" andthe"Home
Affairs Department", which areincluded asItems 24and27respectively inthe1996 Offer.
(b) Item11in1994 Offer: "Civil Service Training Centre"
Renamed "Civil Service Training &Development Institute" andincluded asItem10in1996
Offer.
(c) Item53in1994 Offer: "Registry ofTrade Unions"
Deleted. Functions ofthisregistry havebeentaken upbythe"Labour Department", which
isincluded asItem38inthe1996 Offer.
(d) Item56in1994 Offer: "Senior StaffCourse Centre"
Deleted. Functions ofthiscentre have been taken upbythe"Civil Service Training &
Development Institute" which isincluded asItem10in1996 Offer.
(e) Item68in1996 Offer "Management Services Agency"
Newaddition to1996 Offer arising from creation ofthisnewagency.
(f) Item69in1996 Offer "Official Languages Agency"
Newaddition to1996 Offer arising from creation ofthisnewagency. Previously existed as
aunitunder "Government Secretariat" (Item 24in1996 Offer).
(g) Item70in1996 Offer "Registration &Election Office"
Newaddition to1996 Offer arising from creation ofthisnewoffice. Previously existed as
aunitunder "Government Secretariat" (Item 24inthe1996 Offer).
(h) Note toAnnex 1of1994 Offer: Included inGeneral Conditions of1996 Offer.
Annex 2: Sub-CentralEntitieswhichProcureinAccordanceWiththeProvisionsofthisAgreement
Nochange.GPA/W/28
Page16
Annex 3: AllOther Entities which Procure inAccordance WiththeProvisions ofthisAgreement
Item3in1994 Offer "Provisional Airport Authority (Airport Authority)" nowrenamed as
"Airport Authority" andincluded asItem3in1996 Offer.
Annex 4: Services
Item5:"Telecommunication Services" in1994 Offer
Details listed inthe1994Offer weredrawn uponthebasisofthegrouping oftelecommunication
services usedintheUruguay Round negotiations. Details forthesame iteminthe1996Offer
followthelatestgroupingintovalue-addedandbasictelecommunicationservices.Thesubstance
oftheOffer remains unchanged.
Annex 5: Construction Services
Nochange.
General Conditions applicable toentities andservices specified inAnnexes 1to5
(a) Lastindent ofparagraph 1in1996 Offer
Incorporated notetoAnnex 1of1994 Offer.
(b) Paragraph 4inthe1996 Offer
Minor semantic changes.
(c) Paragraph 5subparagraph 5in1996 Offer
Change made torefer tothe"Annex onFinancial Services" oftheGeneral Agreement on
Services, instead ofdocument MTN.TNC/W/50.