The Hong Kong Shipping Register (HKSR) has gained a reputation as a world-class and quality register with excellent services. Its reputation as a quality flag was further recognised in 2004 when the HKSR qualified under the 'US QUALSHIP 21 Scheme'. During the year, improvement were introduced continuously to attract top quality tonnage. The HKSR crossed the 25-million gross tonnage mark at the end of the year, securing its position among the world's top five shipping registers.

To increase the supply of local qualified personnel with sea-going experience to work in the maritime industry, a 'Sea-going Training Incentive Scheme' was launched in July. The training scheme provides financial incentives for qualified youngsters to take up sea-going training as cadets, which paves the way for them to become shore-based professionals in the maritime industry.

Moreover, to enhance the competitiveness of the shipping industry, Hong Kong is proactive in negotiating double taxation relief arrangements covering shipping income with its trading partners. In 2004, Hong Kong signed an Avoidance of Double Taxation Agreement (DTA) on shipping and air services income with Sri Lanka in March, and a DTA on shipping income with Denmark in December. Together with similar arrangements with the Mainland, Belgium, Germany, the Netherlands, Norway, Singapore, the United Kingdom and the United States, as well as the confirmed provisions of reciprocal tax exemption with the tax authorities of New Zealand and the Republic of Korea, Hong Kong has made double taxation relief arrangements covering shipping income with 12 tax administrations.