Washington, D.C.—U.S. Customs and Border Protection is now requiring goods produced in Hong Kong to be marked as originating from China.
The agency published a federal register notice on Aug. 11 outlining changes to how it considers country-of-origin for goods from Hong Kong as a result of a recent Executive Order that eliminated its special status under U.S. law.
Now, all goods produced in Hong Kong can no longer be marked to indicate “Hong Kong” as their origin (“HK”), but instead must be marked “China” (“CN”).
The new rule only applies to goods originating in Hong Kong, not goods that pass through “without substantial transformation,” the Jewelers Vigilance Committee said in an alert sent out to its members.
The change was applicable as of July, but CBP said it’s allowing a transition period for importers to implement the new markings.
As such, the new rule will not be enforced until Sept. 25.
JVC noted the new marking requirement doesn’t subject goods made in Hong Kong to the increased Section 301 tariffs on certain goods originating from China imposed last year.
JVC Senior Counsel Sara Yood also told National Jeweler that though duty rates and other restrictions that apply to China will apply to merchandise originating in and shipped from Hong Kong to the U.S.—directly or indirectly—the change ultimately should have little effect on U.S. jewelry importers, since the duty rates from Hong Kong and China are the same.
Those with questions on the change can contact Yood at sara@jvclegal.org.
Source: National Jeweler 28-8-2020
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