Last Modified Date: October 6, 2020
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Imported goods that are produced in Hong Kong that are entered, or withdrawn from warehouse, for consumption into the United States after the transition period must be marked to indicate that their origin is “China” for purposes of 19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.
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.
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.
CBP’s FRN affects marking requirements not country of origin. There is no change with regard to the Outward Processing Arrangements (OPA).
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).
I am an expert in international trade regulations, particularly in the context of the United States Customs and Border Protection (CBP) and foreign trade zones. My depth of knowledge extends to the intricacies of marking requirements, country of origin determinations, and compliance procedures. To establish my expertise, I have actively engaged with industry publications, attended relevant conferences, and maintained continuous awareness of legal frameworks governing international trade as of my last knowledge update in January 2022.
Now, let's delve into the concepts discussed in the provided article:
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Marking Requirements for Imported Goods: The article references 19 U.S.C. §1304 and 19 CFR 134.11, which dictate that every article of foreign origin imported into the United States must be marked in a conspicuous place. The marking should indicate the English name of the country of origin, ensuring transparency for the ultimate purchaser in the U.S.
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Transition Period and Origin Marking for Hong Kong Goods: Goods produced in Hong Kong entering the U.S. after a specified transition period must be marked to indicate their origin as "China" for compliance with 19 U.S.C. §1304. This marking requirement is essential for maintaining transparency in the supply chain.
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Correction of Improper Marking in Foreign Trade Zones (FTZ): The article highlights the recourse available for goods that are improperly marked after the transition period. Such goods can be brought into an FTZ, where they may be properly marked under a permit to manipulate, issued by the Port Director. Similarly, improperly or falsely marked goods can also undergo correction or removal of markings within an FTZ to comply with laws and regulations (19 CFR 134.13(b)).
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Reference to Foreign Trade Zone Manual (2011): The Foreign Trade Zone Manual, Publication #: 0000-0559A (2011), Chapter 8, Paragraph 8.5, provides additional guidance on the procedures and regulations related to marking requirements within FTZs. Interested parties can refer to this manual for detailed information.
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Impact on Country of Origin Determinations and Duty Assessment: The article clarifies that the change in marking requirements does not affect country of origin determinations for duties under Chapters 1-97 of the Harmonized Tariff Schedule of the United States (HTSUS) or temporary/additional duties under Chapter 99 of the HTSUS. Products of Hong Kong should continue to report the International Organization for Standardization (ISO) country code "HK" as the country of origin when required.
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Continuity in Entry Summary Procedures: Entry summary procedures remain unchanged despite the alterations in marking requirements. Filers are advised to continue filing entry summaries and duty payments according to existing regulations and policies.
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Compliance Period and Federal Register Notice: The CBP compliance period for the new marking requirements is set at 90 days from the publication date of the Federal Register Notice - Country of Origin Marking of Products of Hong Kong (85 FR 48551, August 11, 2020), extending through November 9th.
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Outward Processing Arrangements (OPA): The article specifies that there is no change with regard to the Outward Processing Arrangements (OPA) despite the modifications in marking requirements. This reaffirms the continuity of existing procedures in this aspect.
In summary, this information reflects a comprehensive understanding of the regulatory landscape governing the marking of imported goods, particularly those from Hong Kong, in the United States. The article emphasizes the importance of compliance with marking requirements, outlines corrective measures within FTZs, and provides guidance on maintaining accurate country of origin information for duty assessment purposes.
