Chinese exporters are implementing schemes to circumvent high tariffs imposed by the US government. This raises concerns among both Chinese manufacturers and American retailers.
Bypassing Tariffs Through Neighboring Countries
Chinese exporters are beginning to utilize opportunities in neighboring countries to route goods into the US, thereby reducing high tariffs of up to 145% imposed by US President Donald Trump. For instance, goods are sent to Malaysia where they obtain new certificates of origin. 'The tariff is too high,' says Sarah Ou from Baitai Lighting.
Increase in False Origin Certificate Cases
South Korea reported finding over $21 million worth of imports with false origin labels in the first quarter, mainly Chinese goods destined for the US. Vietnamese and Thai authorities are also increasing inspections to prevent the use of fake documents.
Mixing Expensive Goods with Cheaper Ones
Some exporters are employing a strategy where more expensive goods are mixed with cheaper ones in a single shipment to lower the total declared value and therefore the duty. This raises concerns for American retailers, as altered documents may lead to confiscation of shipments.
Thus, Chinese exporters are using various methods to circumvent high tariffs in the US market. This creates challenges not only for them but also for American companies striving to maintain fair business practices.
