Goods From Hong Kong Not Subject to China Tariffs

The change in marking requirements for products from Hong Kong doesn't subject the goods to tariffs meant for goods from China, CBP confirmed in a list of frequently asked questions posted to the agency's website Aug. 12. “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 U.S.] or temporary or additional duties under Chapter 99 of the HTSUS,” CBP said. “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.”

An administration official said last month that the executive order removing special trade status from Hong Kong wouldn't result in new tariffs (see 2007230069), but the lack of official CBP guidance on the subject left the issue not totally clear (see 2007290042). As a result of the EO, goods produced in Hong Kong will need to be marked as a product of China starting Sept. 25, CBP said in a recent notice (see 2008100027).

The EO and CBP notice apply only to marking rules, which means “entry summary procedures have not changed,” CBP said in the FAQs. “Filers should continue to file their entry summaries and duty payments according to current regulation and policy.” Also unchanged is CBP's treatment of goods that are marked as “Made in China” but qualify for outward processing arrangement treatment as Hong Kong-origin goods, CBP said. Such treatment allows for some Chinese goods to qualify for Hong Kong origin based on the finishing operations performed in Hong Kong.