WTO help urged for HK

Hong Kong should seek help from and complain to the World Trade Organization regarding new US labeling regulations,  Hong Kong General Chamber of Commerce chief executive George Leung Siu-kay said.

According to International Organization for Standardization requirements, Hong Kong manufacturers have to declare their products as being from Hong Kong.

However, the new US policy requiring Hong Kong businesses to relabel their goods as "made in China" on the packaging is confusing and inconvenient, Leung said.

"The new US regulation violates the World Trade Organization rules. The Hong Kong government should file a complaint with the WTO," he said yesterday.

Leung added that the Hong Kong government should seek help and explanation from WTO to clarify Hong Kong's trade status.

He also said it had complicated the export procedure as Hong Kong manufacturers are confused about what they should write in the place of origin when preparing shipping documents.

However, Leung said US Customs and Border Protection has clarified that Hong Kong manufacturers should continue to report Hong Kong-made products to ISO with the country of origin as Hong Kong.

Leung said the new regulation had increased Hong Kong manufacturers' production costs, as the change in labeling is required from September 25.

"The 45-day transition period given by the US is short," he said. "Due to the long shipping time and delays in shipping due to the pandemic, some products that have been shipped might not be able to enter the US as their "made-in-Hong Kong" label is no longer valid when it arrives."

Leung said the labeling regulation has minimal impact on the overall economy, as exports from Hong Kong to the US were only about HK$3.7 billion last year. However, jewelry business may be significantly affected as it accounts for half of those exports.

The executive director of Hong Kong Productivity Council, Mohamed Butt, said the new US regulation has deprived consumers' right to choose suitable products.

Butt said yesterday at a press conference that the Hong Kong government should coordinate with the WTO to keep the "made-in-Hong Kong" label.