HONG KONG'S re-export trade is expected to lose up to $3.57 billion this year due to the European Union's ruling to slap quotas on seven items made in China, the Hong Kong Exporters' Association says.
Meanwhile, some manufacturers are trying to reclassify their goods out of the quota category to avoid the restrictions, according to industry sources.
The hastily-imposed quotas are expected to cut back the re-export of mainland-made toys, footwear, gloves, porcelain kitchen and tableware, ceramic kitchen and tableware, glassware and radios to European countries.
Association chairman Louis Wong said yesterday the figure might be even higher, given the disruption of trade in the seven items following the sudden imposition of quotas.
He said that until yesterday, the EU had yet to allocate quotas to its 12-member states.
As such, licences could not be granted to the importers of Chinese-made goods.
Without an import licence, importers cannot take delivery of their goods, causing many shipments to pile up at storage places or kept adrift as they are not allowed to enter the importing country.
