New U.S. Origin Marking Requirements for Hong Kong Manufactured Goods

Posted by Queena Lau
Blog originally posted on 20/08/2020 08:00 PM

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The U.S. Government released a Federal Register Notice (“Notice”) on August 11th, 2020 clarifying the changes to origin marking requirements of Hong Kong manufactured goods.

The Notice comes in response to the U.S. President’s Executive Order 13936 on Hong Kong Normalization, issued on July 14th, 2020. The Executive Order suspended the application of certain aspects of the United States-Hong Kong Policy Act of 1992, including the marking statute under section 304 of the Tariff Act of 1930, concerning imported goods produced in Hong Kong.

The Notice clarifies that action will be taken only on the origin marking of goods (i.e. the ‘Made In’ country indicated on the product or its packaging), which can no longer be marked to indicate ‘Hong Kong’ as the origin, but instead shall be marked with ‘China’ as the origin. It should be noted that ‘Hong Kong, China’ is also not acceptable.

On August 12th, CBP provided clarification in a published FAQ on their website regarding certain aspects of the Hong Kong marking requirements. CBP indicated that the action “pertains only to the markings of goods”, and that there would not be tariff implications. More plainly, Hong Kong-originating goods will not be subject to additional customs duty under the Section 301 tariffs currently faced by Chinese originating products and shall continue to report the International Organization for Standardization (ISO) country code 'HK' as the country of origin for purposes of an import declaration and tariff treatment.

The new marking requirements come into effect on September 25th, 2020.

Tradewin will continue to follow-up and provide updates through our TradeLane blog, so make sure to subscribe for updates if you haven't already. 

As of August 26, 2020, CBP has announced an extension of the transition period for compliance with the Executive Order on Hong Kong Normalization for 45 days. The effective date of the origin marking change discussed in this article is now November 9, 2020. 

If you have any questions, feel free to reach out.

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Topics: United States, Hong Kong

Blog originally posted on 20/08/2020 08:00 PM

Queena Lau

Written by Queena Lau

Queena manages our Tradewin Hong Kong team and has over 10 years of AP regional trade compliance experience. In her current role, Queena also supports the Taiwan market, assisting businesses to understand and navigate US Customs requirements. Prior to joining Tradewin in 2017, Queena worked in the customs and trade practice of a Big 4 firm in Shanghai and Hong Kong. Queena has experience in customs defense and planning projects in the areas of customs valuation, origin, duty savings optimization, and supply chain trade compliance management. Apart from strategic consulting, she also manages regional trade operations services that add value to companies’ day-to-day supply chains and overall trade compliance. Queena is a speaker at external events, and has held multiple workshops on regional trade compliance topics. She was a co-author for one of the sections in the book Governance, Risk and Compliance Management in China for German companies. Queena graduated from the University of New South Wales with double majors in Business Economics and Finance. She is also a certified member of CPA Australia.