Last Modified Date: October 6, 2020
How does the Hong Kong marking executive order (EO) impact imported goods that are products of Hong Kong after the transition period?
Every article of foreign origin or its container imported into the Customs territory of the United States shall be marked in a conspicuous place and in such manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article (19 U.S.C. §1304 and 19 CFR 134.11).
Imported goods that are produced in Hong Kong that are entered, or withdrawn from warehouse, for consumption into the United States after the transition period must be marked to indicate that their origin is “China” for purposes of 19 U.S.C. § 1304.
Goods that are not marked properly after the transition period may be brought into a Foreign Trade Zone to be properly marked under a permit to manipulate issued by the Port Director.
Similarly, goods which are improperly or falsely marked may be brought into an FTZ under a permit to manipulate to correct or remove such marking so as to comply with the laws and regulations (19 CFR 134.13(b)).
See Foreign Trade Zone Manual, Publication #: 0000-0559A (2011), Chapter 8, Paragraph 8.5, available at https://www.cbp.gov/sites/default/files/documents/FTZmanual2011.pdf.
How does the marking rule affect the country of origin for purposes of assessing ordinary duties under Chap 1-97 of the Harmonized Tariff Schedule of the United States (HTSUS) or temporary or additional duties under Chapter 99 of the HTSUS?
The change in marking requirements does not affect country of origin determinations for purposes of assessing ordinary duties under Chapters 1-97 of the HTSUS or temporary or additional duties under Chapter 99 of the HTSUS. 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.
How does the EO marking rule affect entry summary requirements, such as country of origin reporting, duty payments, etc.?
This rule only applies to marking requirements under 19 U.S.C. 1304. Entry summary procedures have not changed. Filers should continue to file their entry summaries and duty payments according to current regulation and policy.
What if goods are marked as “Made in China” but qualify for outward processing treatment (OPA) as Hong Kong origin goods?
CBP’s FRN affects marking requirements not country of origin. There is no change with regard to the Outward Processing Arrangements (OPA).
What the CBP compliance period?
The CBP compliance period is 90 days (through to November 9th) from the publication date of Federal Register Notice - Country of Origin Marking of Products of Hong Kong (85 FR 48551, August 11, 2020).
Is the country of origin marking required on any of the shipping containers that will not reach the ultimate purchaser in the United States?
In accordance with 19 U.S.C. § 1304 and 19 CFR 134.11, unless excepted, every article of foreign origin (or its container) imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article, at the time of importation into the Customs territory of the United States. Therefore, any containers that will not reach the ultimate purchaser, such as the outermost shipping containers and cartons that contain the marked articles or marked containers, are not subject to the country of origin marking requirements.
Accordingly, the country of origin marking requirement for goods produced in Hong Kong, as provided for in the Federal Register Notice entitled “Country of Origin Marking of Products of Hong Kong,” 85 Fed. Reg. 48551 (August 11, 2020), is inapplicable to any containers that will not reach the ultimate purchaser.
The outermost container in which an article subject to the J-List exceptions (19 CFR 134.33) reaches the ultimate purchaser must be marked with the country of origin marking pursuant to 19 U.S.C. § 1304. Moreover, repacked articles are subject to the requirements of 19 CFR 134.25, 134.26, and 134.34.