US : Guidance on Marking of Goods of Hong Kong

24-hour hotline : 23 922 922

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

Ref. : EIC 111/2/11
EIC 111/3
CR EIC 111/1/25

13 August 2020
(updated on 16 October 2020)

Dear Sirs,

Further to the United States Customs and Border Protection (USCBP)'s announcement in the Federal Register (FR) notice of 11 August 2020 on the US' new requirement for country of origin marking for products of Hong Kong, the USCBP published on 12 August 2020 a set of Frequently Asked Questions (FAQs) to provide guidance on marking of goods of Hong Kong under the new requirement. The FAQs were further updated on 6 October 2020. Among others, the FAQs clarify that the change in marking requirement does not affect country of origin determinations for assessing ordinary duties or temporary or additional duties. 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. Besides, the new marking requirement for goods produced in Hong Kong is inapplicable to any containers that will not reach the ultimate purchaser.

2.On 14 July 2020, the US President issued an Executive Order on Hong Kong Normalization. Among others, the President suspended the application of section 201(a) of the United States-Hong Kong Policy Act of 1992, as amended, to certain statutes, including the marking statutes (section 304 of the Tariff Act of 1930 as amended).

3.On 11 August 2020, the USCBP posted an FR notice to announce that, in light of the US President's Executive Order on Hong Kong Normalization of 14 July 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". Unless excepted from marking, goods produced in Hong Kong, which are entered or withdrawn from warehouse for consumption into the United States after the end of the transition period on 25 September 2020, must be marked to indicate that their origin is "China". Subsequently, the transition period was extended to 9 November 2020.

4.On 12 August 2020, the USCBP published a set of FAQs to provide guidance on marking of goods of Hong Kong under the new requirements. The FAQs were further updated on 6 October 2020. Among others, the FAQs provide clarifications on the following:

• Imported goods that are produced in Hong Kong that are entered, or withdrawn from warehouse, for consumption into the United States after the transition period (25 September 2020) must be marked to indicate that their origin is "China".
• Goods that are not marked properly / improperly or falsely marked after the transition period may be brought into a Foreign Trade Zone to be properly marked under a permit to manipulate issued by the Port Director.
• The change in marking requirements does not affect country of origin determinations for purposes of assessing ordinary duties under Chapters 1-97 of the Harmonized Tariff Schedule of the United States (HTSUS) or temporary or additional duties under Chapter 99 of the HTSUS.
• Goods that are products of Hong Kong should continue to report ISO country code "HK" as the country of origin. Entry summary procedures have not changed. Filers should continue to file their entry summaries and duty payments according to current regulation and policy. There is no change with regard to the Outward Processing Arrangements (OPA).
• Any containers that will not reach the ultimate purchaser, such as the outermost shipping containers and cartons that contain the marked articles or marked containers, are not subject to the country of origin marking requirements. Accordingly, the US' new origin marking requirement for goods produced in Hong Kong is inapplicable to any containers that will not reach the ultimate purchaser.

5.For further details, please refer to the relevant notices:-

• FAQs - Guidance on Marking of Goods of Hong Kong (updated on 6 October 2020):
  https://www.cbp.gov/trade/rulings/frequently-asked-questions-guidance-marking-goods-hong-kong-executive-order-13936
• FR notice - Requirement for Country of Origin Marking for Products of Hong Kong (11 August 2020):
  https://www.govinfo.gov/content/pkg/FR-2020-08-11/pdf/2020-17599.pdf
• Cargo Systems Messaging Service - New Marking Rules for Goods Made in Hong Kong (11 August 2020):
  https://content.govdelivery.com/bulletins/gd/USDHSCBP-299cb04?wgt_ref=USDHSCBP_WIDGET_2

Please also refer to Commercial Information Circular No. 623/2020 issued on 11 August 2020 for further background.

6.The position of the Government of Hong Kong Special Administrative Region concerning the marking of origin can be found in the following press release issued on 11 August 2020:-

https://www.info.gov.hk/gia/general/202008/11/P2020081100732.htm

7.For enquiries concerning the content of this circular, please contact Miss K Y HO at telephone number 2398 5405.

Yours faithfully,

(Miss Ivy TAM)
for Director-General of Trade and Industry

Note: While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.