The recent Executive Order (EO) ending Hong Kong’s special trade status will not “result in additional tariffs on goods from Hong Kong,” according to International Trade Today who quoted a senior administration official’s email dated July 23, 2020. “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.”
The EO cited the statute covering the country of origin marking, which stipulates that goods made in Hong Kong will be required to be labeled as made in China. However, that particular statute does not mean that Hong Kong would be subject to additional duties, such as the Section 301 duties applied to some Chinese-origin goods. Additional details are not yet available regarding how the country of origin should be transmitted in ACE going forward—for now, goods originating in Hong Kong should continue to be transmitted as such in ACE.
As additional guidance is provided, Deringer will provide details.