This week, following a developer call with the trade industry, U.S. Customs & Border Protection (CBP) advised that the recent executive order issued on July 14th that revoked Hong Kong’s special trade status will not result in additional tariffs for goods targeted in Section 301 action against China.

“The July 14, 2020, Executive Order on Hong Kong Normalization does not provide for new U.S. tariffs on goods from Hong Kong,” the official stated in an e-mail communication. “The Administration will continue to evaluate and adjust our policies as conditions warrant.”

The White House executive order detailed new marking requirements but did not explicitly apply Section 301 status to these goods, leaving vague guidance during the short 15-day implementation window.

BACKGROUND INFORMATION

In late May 2020, the National People’s Congress of China announced its intention to unilaterally and arbitrarily impose national security legislation on Hong Kong.

As a result, on May 27, the United States Secretary of State announced that the PRC had fundamentally undermined Hong Kong’s autonomy and certified and reported to the Congress, that Hong Kong no longer warrants treatment under United States law in the same manner as United States laws were applied to Hong Kong before July 1, 1997.

Over the years, China has taken action to increasingly deny autonomy and freedoms promised to the people of Hong Kong under the 1984 Joint Declaration of the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People’s Republic of China on the Question of Hong Kong (Joint Declaration).

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