The CBP said the changes in marking requirements will have a limited impact for duties on the imported goods since the these would not affect country of origin determinations for purposes of assessing duties under Chapters 1-97 of the Harmonised Tariff Schedule of the United States (HTSUS), nor temporary or additional duties under Chapter 99 of the HTSUS, such as the China Section 301. The U.S. authorities determined that Hong Kong is no longer sufficiently autonomous to justify differential treatment in relation to China.

As from September 25, goods produced in Hong Kong that are imported into the U.S. are to continue to report the International Organisation for Standardisation (ISO) and use “HK” as the country of origin when required. This means that goods produced in Hong Kong are to be physically marked country of origin “China” but entry documentation should continue to report Hong Kong as the country of origin. Improperly labelled cargo could face a punitive duty of 10%.

George Leung Siu-kay, Chief Executive, Hong Kong General Chamber of Commerce, told local media the requirement violates international trade regulations, and the government needs to file a complaint with the World Trade Organisation. He said the measure also causes confusion and raises costs for manufacturers.

Sources: The Standard/JD Supra