Mr Alan SIU, Deputy Secretary for Information Technology and Broadcasting A Clear Legal Framework for Electronic Transactions

Need for a Clear Legal Framework Many legislation were written before the advent of e-commerce By requiring the use or keeping of paper documents, some legislation become barriers to e-commerce adoption uncertainty as to the legal status of electronic records dampens public confidence in e-commerce 2

Electronic Transactions Ordinance Solution adopted in Hong Kong... Enactment of the Electronic Transactions Ordinance Approach... Largely Follow the United Nations Commission on International Trade Law - Model Law on Electronic Commerce Make reference to legislation elsewhere Adapt to local situation 3

Electronic Transactions Ordinance Scope... Gives electronic records and digital signatures the same legal status as that of their paper-based counterparts Establishes a voluntary recognition scheme for certification authorities operating in Hong Kong 4

Legal Recognition of Electronic Records and Digital Signatures Electronic records can be used to satisfy a requirement in law for information to be - –given in writing; –retained; or –retained or presented in original form Digital signatures can be used to satisfy a requirement in law of a signature 5

Contracts shall not be denied legal effect solely on the ground that electronic records are used in their formation Use in communication between two non- government parties under law is subject to mutual consent No impact on specific statutory provision on electronic process, e.g. Import and Export Ordinance, etc. 6 Legal Recognition of Electronic Records and Digital Signatures (Cont’d)

Exemption of Generic Items Exemption Government conditions of grant and lease Government conditions of grant and lease negotiable instruments wills and trust documents relating to land and property transactions stamp duty instruments (non-listed stocks) oaths and affidavits statutory declarations judgments and court order power of attorney search and arrest warrants 7

Exemption of Judicial Proceedings Court of Appeal Court of Final Appeal Court of First Instance District Court Obscene Articles Tribunal Labour Tribunal Small Claims Tribunal Mental Health Review Tribunal Magistracy Lands Tribunal Coroner's Court 8

Exemption of Specific Statutory Provisions Exemption is made in cases where electronic information cannot be accepted by Government bodies for operational, technological or other reasons under law Only less than 200 statutory provisions (out of 44,000 in the laws of Hong Kong) are exempt Government has taken the lead in accepting electronic submissions under the bulk of the legislation 9

Recognition Scheme for Certification Authorities (CAs) CAs may apply to Government for recognition on a voluntary basis Hongkong Post is a recognized CA under the Ordinance There is no exclusivity in CA services Number of CAs in Hong Kong to be determined by the market 10

Legislative Programme Passage of the ETO by LegCo in January 2000 Commencement of provisions in stages to tie in with enactment of subsidiary legislation The last batch of provisions of the ETO has come into operation on 7 April 2000 Review of legislation in 18 months 11

Situation Elsewhere UK, Canada, Australia, Singapore and South Korea have enacted comprehensive legislation on electronic transactions Germany, Malaysia and some states of USA, e.g. Utah, have enacted legislation on digital signature 12

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