On July 14, 2020, President Trump signed legislation to impose sanctions on China in response to its interference with Hong Kong’s autonomy.

In addition, he signed an executive order ending the preferential treatment afforded to Hong Kong in the past. Hong Kong will now be treated the same as in mainland China.

Considering the executive order expands sanctions against Hong Kong under the Hong Kong Autonomy Act, exporters and importers will need to take additional actions if they engaged with trade in Hong Kong. Specific to trade, the legislation includes, but is not limited to:

• Revoking license exceptions for exports to Hong Kong reexports to Hong Kong, and transfers (in-country) within Hong Kong of items subject to the Export Administration Regulations.
• Terminating the export licensing suspensions under the Foreign Relations Authorization Act, which applies to exports of defense articles to Hong Kong.

Within 15 days of July 14, US Agencies will commence an action to further the implementation of these policies. 

The policy also reads that the US will suspend and/or eliminate preferential treatment for Hong Kong to the extent permitted by law and in the national security, foreign policy, and economic interest of the United States. Crane Trade Advisory recommends that clients take proper steps to ensure that their compliance policies are updated and specific to their trade operation. Our consultants can assist with reviews of potential Section 301 tariffs and licensing requirements due to the legislation.

Crane Trade Services will provide our clients with updates as we obtain more information on this matter. For further information, please contact us.