Donald Trump to Revoke Hong Kong’s Special Trade Status With the U.S.

Daily HernandezGeneral, NewsLeave a Comment

President Donald J. Trump announced in a news conference on May 29, 2020, that he will direct his administration to revoke U.S. treatment of Hong Kong as a separate customs territory, as Hong Kong is no longer sufficiently autonomous from mainland China to warrant the special treatment.

Since 1992 and under the United States – Hong Kong policy act, the U.S. treats Hong Kong as a separate territory in economic and trade matters. This means, the economic sanctions and export control laws the U.S. has imposed on China, do not apply the same way to Hong Kong. As well as the countervailing duty and other trade laws.

This announcement is expected to result in the extension of Section 301 additional tariffs on Chinese goods to covered products made in Hong Kong.

President Trump also announced that the changes will extend to “the full range of agreements” and “policy exemptions”, this may include the requirement to change the country of origin labeling on goods made in Hong Kong, termination of U.S. recognition of certificates of origin or other documents issued by Hong Kong authorities, Banking, Taxation, etc.

This announcement comes after the U.S. secretary of state Mike Pompeo certified to Congress that Hong Kong no longer maintains a high degree of autonomy from China, paving the way a shift in the treatment of Hong Kong under U.S. law.

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Daily Hernandez
Daily is our Licensed Customs Broker, she has more than 18 years’ experience with international trade matters, strategic planning for international transactions and trade compliance. She has substantial experience with customs duty savings regimes, including free trade agreements, foreign trade zones, and valuation methodologies.

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