On August 10, 2020 Customs issued a notice announcing that goods produced in Hong Kong and exported to the U.S. must now be marked as a product of China (e.g., Made in China). To see our previous post on the issue, click here. The marking changes are set to take effect on September 25, 2020. In light of this transition, U.S. Customs and Border Protection (“CBP”) issued an FAQ page to clarify certain questions companies may have. In particular, CBP addressed the matter of whether or not the ordinary duties and Section 301 duties on Chinese goods would affect goods from Hong Kong. CBP stated:
“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.”
We will continue to monitor this situation and provide any updates as more information becomes available. Husch Blackwell encourages those who may have questions or concerns on this issue to please contact the International Trade and Supply Chain team.