Certificate of Origin Circulars

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e-mail address : enquiry@tid.gov.hk

Ref. ： TID CL CO/200

6 November 2020

Dear Sirs,

Certificate of Origin Circular No. 6/2020

Certificate of Hong Kong Origin
Special Declaration Requirement for Export of Goods to the US

I. Introduction

This Circular sets out the special declaration requirement for Certificate of Hong Kong Origin (CHKO) applications to cover goods that have to comply with the United States (US)' new requirement for country of origin marking for imported goods produced in Hong Kong.

II. Details

2.On 11 August 2020, the US Customs and Border Protection (USCBP) announced in the Federal Register a new requirement for country of origin marking for imported goods produced in Hong Kong. Under this requirement, which is scheduled to be enforced after 9 November 2020, imported goods produced in Hong Kong may no longer be marked to indicate "Hong Kong" as their origin, but must be marked to indicate "China".

3.The change in marking requirement does not affect the US' country of origin determinations for purpose of assessing ordinary duties, or temporary or additional duties. The US' entry summary procedures also have not changed¹. For details, please refer to the Commercial Information Circulars No. 623/2020, 626/2020 and 649/2020.

4.In Hong Kong, origin marking or labelling is not mandatory for goods claiming Hong Kong origin for export. However, such goods should generally be marked or labelled as originating in Hong Kong if origin marking or labelling is applied. While the Government of the Hong Kong Special Administrative Region strongly objects to the new requirement of origin marking of the US, it is understandable that some members of the trade may need to follow the new requirement so that they can export their goods to the US and they may also want to apply for a CHKO. As such, with effect from 10 November 2020, Hong Kong exporters are required to make the following special declaration on the CHKO application to cover goods for export to the US if the origin marking or labelling indicating the origin as "China" instead of "Hong Kong" has been applied on the goods:

For the avoidance of doubt, goods for export to places other than the US should continue to indicate their origin as "Hong Kong" if they qualify for it when the origin marking or labelling is applied.

III. Important Note

5.When applying for a CHKO, traders are reminded that goods covered in the application must have undergone the principal processes of manufacture in Hong Kong. They are processes which permanently and substantially change the shape, nature, form or utility of the basic materials used in manufacture as laid down by the Director-General of Trade and Industry in relevant Certificate of Origin Circular(s) from time to time. The latest Certificate of Origin Circular is at <https://www.tid.gov.hk/english/aboutus/tradecircular/coc/2022/coc012022.html>.

6.In order to uphold the integrity of the origin certification system, the Trade and Industry Department (TID), in conjunction with the Customs and Excise Department (C&ED), may conduct consignment checks to verify the accuracy of material particulars declared on any application for a CHKO. Traders are reminded to comply with the consignment check requirements as stipulated in Certificate of Origin Circular No. 5/2005 dated 13 July 2005. In particular, applicants should note that if an application is selected for pre-issue check, it will normally take a relatively longer time to process that application. Traders should bear this in mind when drawing up their shipment schedules.

IV. Warning

7.TID and the Government Approved Certification Organizations (GACOs)² work closely with the C&ED, through checks and inspections, to ensure compliance with the provisions of the Import and Export Ordinance (Cap. 60) and its subsidiary legislations as well as the Protection of Non-Government Certificates of Origin Ordinance (Cap. 324). Companies/registered businesses/individuals may be liable to criminal prosecution for circumventing the conditions of CHKO. A company/registered business/individual which commits an offence under the above Ordinances is liable to a maximum penalty of a fine of HK$500,000 and 2 years' imprisonment. Moreover, TID and GACOs may take administrative actions against the traders concerned irrespective of whether they have been prosecuted. Such administrative actions may involve, but shall not necessarily be confined to, any or all of the following: refusal to issue a Certificate of Origin including CHKO; suspension of all kinds of certification facilities; suspension/cancellation of FR of the company/registered business/individual concerned.

V. Enquiry

8.For enquiries, please contact us through the following channels:

Yours faithfully,

(Nicholas FUNG)
for Director-General of Trade and Industry

¹ According to the announcement of the USCBP up to the date of this Circular.
² The Government Approved Certification Organizations include the Hong Kong General Chamber of Commerce; the Federation of Hong Kong Industries; the Chinese Manufacturers' Association of Hong Kong; the Indian Chamber of Commerce, Hong Kong and the Chinese General Chamber of Commerce.