On July 16, 2021, the U.S. Departments of State, Commerce, Homeland Security and the Treasury issued a Hong Kong Business Advisory highlighting growing risks for U.S. companies operating in the Hong Kong Special Administrative Region (SAR) due to ongoing actions taken by the Government of the People’s Republic of China (China). The advisory states that
Hong Kong
State Department Issues Second Hong Kong Autonomy Report
On March 16, 2021, the State Department identified 24 additional persons it determined are contributing to “the failure of the People’s Republic of China (PRC) to meet its obligations under the Sino – British Joint Declaration … or Hong Kong’s Basic Law” and, as a result, the Department of the Treasury has sanctioned these persons.…
OFAC Publishes Formal Hong Kong Sanctions Regulations
On January 15, 2021, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) published in the Federal Register final regulations to implement a July 14, 2020 Hong Kong-related Executive Order. In Executive Order 13936, President Donald Trump determined that Hong Kong was no longer sufficiently autonomous from the People’s Republic of China…
Commerce Removes Hong Kong as a ‘Separate Destination’ Under the EAR
On December 23, 2020, the Department of Commerce’s Bureau of Industry and Security (BIS) published a final rule in the Federal Register that removes Hong Kong as a “separate destination” under the Export Administration Regulations (EAR). This rule follows U.S. Secretary of State Michael Pompeo’s May 2020 announcement that Hong Kong no longer warrants treatment…
Treasury Issues First Report on Foreign Financial Institutions Under the Hong Kong Autonomy Act
On December 11, 2020, the Treasury Department submitted its first report to Congress under the Hong Kong Autonomy Act, stating that to date it has not identified any foreign financial institutions (FFIs) that have knowingly conducted a significant transaction with an identified foreign person under the Hong Kong Autonomy Act (HKAA). The Department of…
State Department Issues Hong Kong Autonomy Act Report
On October 14, 2020, pursuant to the Hong Kong Autonomy Act (HKAA), the State Department submitted to Congress a report identifying foreign persons “who are materially contributing to, have materially contributed to, or attempt to materially contribute to the failure of the People’s Republic of China (China) to meet its obligations under the Sino-British Joint…
BIS Implements Controls on Water Cannons and Amends Licensing Policy to Address Human Rights Violations
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On October 6, 2020, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) published two final rules in the Federal Register, “Controls on Exports and Reexports of Water Cannon Systems” (“Water Cannon Controls”) and “Amendment to Licensing Policy for Items Controlled for Crime Control Reasons,” (“Licensing Policy Amendment”)…
CBP Issues Notice on Country of Origin Marking for Hong Kong Products
In response to President Donald Trump’s Executive Order on Hong Kong Normalization that suspended the application of preferential trade status for Hong Kong (see Update of July 16, 2020), U.S. Customs and Border Protection (CBP) issued a Federal Register notice on August 11, 2020, that changed the country of origin marking requirements for…
U.S. Sanctions Hong Kong Officials for Undermining Hong Kong’s Autonomy; China Quickly Retaliates
On August 7, 2020, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 11 individuals for undermining Hong Kong’s autonomy and restricting the freedom of expression or assembly of the citizens of Hong Kong. These actions were taken pursuant to Executive Order 13936, “The President’s Executive Order on Hong Kong Normalization” (…
BIS Publishes Final Rule Suspending EAR License Exceptions for Hong Kong
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has published the final rule in the Federal Register amending the Export Administration Regulations (EAR) to suspend all License Exceptions for Hong Kong that provide preferential treatment as compared to those available for exports to China. This amendment to the EAR implements the announcement…