On August 10, 2020, U.S. 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.
CBP is allowing for a 45-day transition period after the date of publication in the Federal Register to implement the requirements due to the “commercial realities.” The notice does not specify how the changes affect tariff treatment of Hong Kong goods.
An administration official has stated that the Executive Order does not “provide for new U.S. tariffs on goods from Hong Kong”, but that the Administration is continuing to evaluate its policies. Therefore, at this time, it remains unclear whether goods originating in Hong Kong will be subject to the same tariffs as Chinese origin goods, including antidumping duties, countervailing duties and Section 301 duties.
Additional guidance from CBP, USTR and the U.S. Department of Commerce is expected.
Stephen Brophy is an attorney in Husch Blackwell LLP’s Washington, D.C. office focusing on international trade.
Turner Kim is an Assistant Trade Analyst in Husch Blackwell LLP’s Washington, D.C. office.
Camron Greer is an Assistant Trade Analyst in Husch Blackwell LLP’s Washington, D.C. office.