(Xinhua) Chinese mainland and Hong Kong authorities have been working closely to thrash out the arrangements for the rules of origin for the products which will enjoy zero tariff status under the second phase of the Chinese mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA II).

Hong Kong Secretary for Commerce, Industry and Technology, John Tsang, made the remarks Tuesday while briefing members of the Legislative Council Panel on Commerce and Industry on the latest progress of CEPA.

Tsang said CEPA would bring about mutual benefits and huge investment opportunities to the Chinese mainland and Hong Kong.

He said since the conclusion of the agreement on further liberalization measures under CEPA II, the Hong Kong Special Administrative Region (HKSAR) government had been working closely with the mainland on drafting the rules of origin for the duty free products.

He said so far three rounds of meetings between experts of both sides had been held and drafting of the text of the relevant arrangements was under way. The government would announce the implementation details as soon as possible.

"In the course of discussions with the Chinese mainland, we have been in close touch with our business sector to seek their views on the way forward with an aim to securing a reasonable and flexible arrangement. I believe that most of our businessmen and manufacturers will welcome the outcome of the consultations," Tsang said.

The Mainland and Hong Kong reached an agreement on further liberalization under CEPA II on August 27, 2004. The liberalization measures covered a broad spectrum including tariff-free preferential treatment to products under 713 Chinese mainland tariff codes, as well as further liberalization of 44 measures under 19 services sectors and eight new service areas. Most of these liberalization measures would take effect from January 1, 2005.