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2020
18 Aug
U.S. Guidance On Marking Rules For Goods Made In Hong Kong

On August 10, 2020, US Customs & Border Protection (CBP) issued a notice that goods produced in Hong Kong will need to be marked as a product of China starting on September 25, 2020. The marking changes are the result of the July 14, 2020 Executive Order on Hong Kong Normalization that ended Hong Kong's special trade status .


The notice initially did not specify how the changes affect tariff treatment of Hong Kong goods and gave rise to concerns that the change in marking requirements could lead to products made in Hong Kong becoming subject to special US tariffs applicable to Chinese products, i.e., “Section 301” tariffs. However, in frequently asked questions (FAQ) published on August 12, 2020,CBP clarified that this change in marking does not mean goods of Hong Kong origin are subject to the Section 301 duties on products from China.Goods that are products of Hong Kong remain eligible for International Organization for Standardization (ISO) country code “HK” as the country of origin when required. Presumably the Manufacturer’s Identification Number would also continue to reflect the Hong Kong origin of the goods.


According to the FAQ:

  • “Imported goods that are produced in Hong Kong that are entered, or withdrawn from warehouse, for consumption into the United States after the transition period must be marked to indicate that their origin is “China” for purposes of 19 USC § 1304.”

 

  • “The change in marking requirements does not affect country of origin determinations for purposes of assessing ordinary duties under Chapters 1-97 of the HTSUS or temporary or additional duties under Chapter 99 of the HTSUS. Therefore, goods that are products of Hong Kong should continue to report International Organization for Standardization (ISO) country code “HK” as the country of origin when required.

 

  • “This rule only applies to marking requirements under 19 USC 1304. Entry summary procedures have not changed. Filers should continue to file their entry summaries and duty payments according to current regulation and policy.” 


We will continue to keep you updated as we learn more.