Effective September 25, 2020, U.S. Customs and Border Protection will require goods produced in Hong Kong to be marked with an origin of China. The change follows the July 14th Executive Order ending Hong Kong’s special trade status.
According to the Federal Register Notice, set for publication tomorrow on August 11, 2020, a transition period will be allowed to meet the new requirements. “Given the commercial realities, affected parties may need a transition period to implement marking consistent with the position announced in this notice. Therefore, this document notifies the public that, unless excepted from marking, goods produced in Hong Kong, which are entered or withdrawn from warehouse for consumption into the United States after September 25, 2020, must be marked to indicate that their origin is “China” for purposes of 19 U.S.C.”
The Federal Register Notice does not address tariff treatment for goods made in Hong Kong with origin markings of China. However, International Trade Today reported on July 23, 2020, that a senior administration official had indicated via email that Chinese tariffs would not be levied on goods from Hong Kong. “The July 14, 2020, Executive Order on Hong Kong Normalization does not provide for new U.S. tariffs on goods from Hong Kong,” the official said. “The Administration will continue to evaluate and adjust our policies as conditions warrant.”
Deringer will continue to provide guidance on the matter and will advise when more details are available.
