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U.S. beef exports to East Asia in 2022 are again on record pace after a record year in 2021. Despite economic uncertainties due to the COVID-19 pandemic, continued global supply chain challenges, and a competitive global beef market, U.S. beef exports to East Asia, both in value and volume, were outstanding in the first half of 2022.

Bite size local news, Post reports and activity summaries wrapped by ATO Hong Kong. In this issue: ATO Concludes 2022 Delicious USA Campaign; Hong Kong Scraps COVID-19 Mandatory Contact-Tracing App and Movement Restrictions on International Arrivals

From January – September 2022, U.S. agricultural and food exports to Hong Kong declined 16 percent to $1 billion compared to the same period last year. During this same period, Hong Kong’s ranking as a U.S. agricultural and food export market slid from 15th in 2021 to 25th in 2022. However, the city held its rank as the 7th largest export market for U.S. consumer-ready food products.

The United States Becomes Hong Kong’s Top Ginseng Supplier; Hong Kong Travel Agency Predicts Comeback of Travel Business; Finance Minister Confident in Hong Kong’s Economic Fundamentals; Hopes for Normalcy Drive Sales of Hong Kong Shops; Macau to Ditch ‘Gambling Hub’ Image in Next Decade; Macau’s GDP Dropped 33 Percent to $4.6 Billion in Third Quarter

Hong Kong is revising its residue limits for heavy metals and pesticides in Chinese herbal medicines in adherence with China’s Pharmacopoeia (2020 Edition). Effective December 31, 2023, ginseng products will be subject to revised limits on heavy metals. Stricter limits for DDT (pesticides) will be conducted in two phases starting December 31, 2026.

It has come to Post’s attention that a shipment of U.S. bovine genetics faced clearance problems in mainland China after Hong Kong Customs opened and inspected the shipment during transit. To minimize customs clearance issues in the future, U.S. exporters should be mindful that for any shipment transiting through a third-party, such as Hong Kong, shippers/forwarders should ensure that seals are handled properly in the case of inspection.

Ginseng Board of Wisconsin Retail Promotion; Hong Kong Eases Curbs on Inbound Travelers; Visitor Arrivals to Hong Kong Grow 22 Percent; Cathay Pacific to Reach 70 Percent of Pre-pandemic Capacity by Late 2023; Quarantine for Arrivals in Macau Adjusted to “5+3;” More Places to Go in Hong Kong for Group Travelers; Outdoor Live Music Festival Set to Comeback

Hong Kong’s relevant food regulation contains a positive list of chemicals which are allowed for use as coloring matter. However, this positive list does not explicitly list calcium carbonate as an allowable coloring additive for food use. In this regard, the U.S. food manufacturers, in consultation with Post, wrote to the Hong Kong government to seek clarification on whether calcium carbonate is allowed for use as a food coloring additive.

In 2021, U.S. seafood exports to Hong Kong recovered 31 percent year-on-year to $180 million, and taking over a significant share in niche market segments such as lobsters, eels, oysters, and other frozen mollusks products. Hong Kong has a vast seafood market with an import value of $4 billion in 2021, recovering 20 percent despite the COVID-19 pandemic.

Effective February 1, 2023, Hong Kong will ban cannabidiol (CBD) products. The newly amended regulation will prohibit the manufacture, import, export, supply, sale, possession and transshipment of any products containing CBD in the city, regardless of quantity.

This report serves as a reminder to U.S. exporters and traders that the Hong Kong government does not allow entry of U.S. poultry and egg products originating from affected counties reporting highly pathogenic avian influenza (HPAI) when the bill of lading falls on or after the effective date of a ban.

From September 6-8, 2022, the Agricultural Trade Office (ATO) in Hong Kong hosted the strongest national pavilion at Restaurant and Bar, one of the largest food trade shows in Hong Kong. Seven U.S. exhibitors showcased their quality products to over 8,000 trade visitors.