Hong Kong Human Rights and Democracy Act likely to have little impact on shipping sector
- The US government has rushed this act to put pressure on China, says Chris Chan, head of shipping at law firm Holman Fenwick Willan
- Tariffs are still applicable on Chinese products transshipped through Hong Kong
The passage of the Hong Kong Human Rights and Democracy Act will have little impact on Hong Kong’s transshipping sector in the short term, according to shipping and logistics industry experts.
Roberto Giannetta, secretary general of the Hong Kong Liner Shipping Association, which represents the interests of shipping companies and shipping agents, said that he does not expect an immediate impact on the shipping business in Hong Kong.
“I do not expect that transshipment cargo coming through Hong Kong will be affected. Transshipment cargo does not depend on special tariff-free access to the US market. As for direct cargo to [and] from Hong Kong, the act states that Hong Kong’s tariff-free status would need to be reviewed every year,” said Giannetta.
Products transshipped through Hong Kong must still bear the country of origin, meaning products shipped from China through Hong Kong to the US must still pay applicable tariffs.
Hong Kong enjoys special status with the US, thanks to the United States–Hong Kong Policy Act, passed in 1992, which treats Hong Kong as a special customs territory separately from mainland China.