International, Tariffs

'Made in Hong Kong' Must Now Say 'Made in China'

By Point To Point on August, 13 2020
Point To Point

In response to a new security law imposed by China on the citizens of Hong Kong, the Trump Administration on July 14 removed the special trading privileges that had been in place for Hong Kong, and changed them to reflect the current trading relationship with the People's Republic of China.
 
Certainly, the relationship between China and the US has been on a roller coaster (mostly downhill) for several years now, and is always subject to additional changes, but these changes have not, until now, directly affected goods out of Hong Kong.

Effective Sept 30 or Oct. 1 (it's not clear right now), the two main changes we want to alert you to are:
  1. Any restrictions, permits, licenses, etc. that are required for goods out of China, will also apply to goods out of Hong Kong.
  2. The US will no longer accept the marking Made In Hong Kong. All goods produced in Hong Kong will have to state Made in China. Failure to make this change on your goods and packaging will require expensive and time-consuming delays upon importation while the marking issue is resolved, and these costs will be borne by the importer. 
Imported goods from Hong Kong totaled over $6 billion in 2018. Hong Kong (China) is arguing that as a separate member of the WTO, that the US is not able to take these kind of actions against Hong Kong. However, recent history has shown that this argument will likely not sway the US government very far from its stated plans.
 
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