New Country of Origin Marking Rules for Goods Made in Hong Kong –

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President Trump signed Executive Order 13936 in mid-July changing the country of origin marking rules for goods made in Hong Kong – see below for a copy and paste from the CSMS of the new marking rules:

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Cargo Systems Messaging Service
CSMS #43633412 – GUIDANCE: New Marking Rules for Goods Made in Hong Kong – Executive Order 13936

PURPOSE

The purpose of this memorandum is to provide guidance on the new country of origin marking rules for goods produced in Hong Kong based on the President’s Executive Order (EO) on Hong Kong Normalization (EO 13936, dated July 14, 2020).

SUMMARY

On July 14, 2020, the President signed EO 13936 on Hong Kong Normalization. The EO suspends the application of section 201(a) of the United States-Hong Kong Policy Act of 1992, as amended (22 U.S.C. 5721(a)), to 19 U.S.C. 1304, Marking of imported articles and containers. Appropriate actions must be commenced within 15 days (effective July 29, 2020) of the EO’s issue date.

GUIDANCE

The position set forth in this document is applicable as of July 29, 2020. A transition period will be granted for importers to implement marking consistent with this position for imported goods produced in Hong Kong. Such goods, when entered or withdrawn from warehouse for consumption into the United States, after September 25, 2020 must be marked to indicate that their origin is “China” for purposes of 19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. 1304.

Transition Period

CBP will grant a 45-day transition period, until September 25, 2020, in order to give the trade sufficient time to adjust to the new marking rules. During this period, Personnel from the Ports of Entry and Centers of Excellence and Expertise (Centers) are directed to neither issue marking notices, nor take further enforcement actions on goods produced in Hong Kong for purposes of 19 U.S.C. 1304. Centers should take measures to inform accounts of these new marking rules for Hong Kong set forth in the EO.

RELATED DOCUMENTS:

Country of Origin Marking of Products of Hong Kong (85 FR 48551, August 11, 2020)
The President’s Executive Order on Hong Kong Normalization (85 FR 43413, July 14, 2020)
1997 FR Hong Kong Customs 97-14662 (62 FR 30927, June 5, 1997)

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If you have any questions how the new country of origin marking rules will impact your business, contact David Hsu by phone/text anytime at 832-896-6288 or by email at attorney.dave@yahoo.com.

Trump may end special trade status with Hong Kong

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According to Bloomberg – the U.S-China Economic and Security Review Commission recommended Congress to reassess Hong Kong’s special trading status for sensitive US technology imports. Since 1992, the US-Hong Kong Policy Act of 1992 treats Hong Kong as fully autonomous for trade and economic matters even after Hong Kong was returned to China in 1997. As such, Hong Kong has not been impacted by the current China tariffs and is also supported by the US in the WTO.

The report indicated that Beijing’s actions toward Hong Kong “continue to run counter to China’s promise to uphold Hong Kong’s autonomy”. The report further states that President Trump could issue an executive order suspending these privileges to Hong Kong if he believes Hong Kong is not autonomous from Beijing.

If President Trump were to revoke the special trade status with Hong Kong regarding exports of dual-use technology (technology that can be used by consumers and the military) to Hong Kong.

The Bloomberg article quoted Hong Kong legislature member, Felix Chung: “The Western community would look at Hong Kong with different eyes and may not even trust Hong Kong. The business sector cannot take this kind of risk.”

Will follow up with more updates if and when available.