US Introduces Requirement for Hong Kong Goods to Be Labeled ‘Made in China’

From November 9, 2020, all goods produced in Hong Kong must be
labelled ‘Made in China’ when being marketed to consumers in the United States.

US Customs and Border Protections, part of the Department of
Homeland Security, published the Federal Register notice – Country of Origin
Marking of Products of Hong Kong – on August 11, 2020. The alteration follows
President Trump’s Executive Order 13936 on Hong Kong Normalization.

Under the Federal Register notice, goods produced in Hong Kong must
be marked ‘Made in China’. This rule only applies to marking requirements under
19 U.S.C. 1304 and it 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 (UTSUS) or temporary or additional duties under
Chapter 99 of the HTSUS. The new rule does not alter entry procedures and it
does not change Hong Kong origin goods that qualify in relation to Outward
Processing Arrangements (OPA).

Stakeholders should also be aware additional Section 301 China
duties will not affect these products.

The Federal Register notice came with a 45-day transition period,
meaning goods needed to conform to the new requirements from September 25,
2020. On August 21, 2020, this transition period was extended for a further
45-day period, until November 9, 2020.

SGS Softlines Services

SGS has a worldwide network of over 40
state-of-the-art laboratories specializing in testing of apparel, footwear, and
home textiles. Their committed team is drawn from multi-disciplinary
backgrounds, allowing them to carry out a comprehensive range of physical,
chemical, and functional testing services for components, materials and
finished products. SGS helps companies ensure quality, performance, and
compliance with international, industrial, and regulatory standards worldwide.
Learn more about SGS’s Softlines Services.

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