On July 14, 2020, an executive order from President Trump ended Hong Kong’s special trade status stating the “Special Administrative Region of Hong Kong (Hong Kong) is no longer sufficiently autonomous to justify differential treatment in relation to the People’s Republic of China (PRC or China).” Specifically, this action is in response to the government of China imposing national security legislation on Hong Kong and denying the “autonomy and freedoms that China promised to the people of Hong Kong.”

Moving forward, goods imported from Hong Kong must be marked “Made in China.” Additionally, when applicable, these goods will be subject to the same Section 301 and antidumping/countervailing duties as products originating in China. Last month, the U.S. also stopped exports of U.S.-origin defense equipment to Hong Kong and moved toward new restrictions on shipments with dual-use technologies.

For specific questions about the impact of these changes to your supply chain, please contact Deringer’s Compliance Department.