2 weeks ago
US flags India in Chinese goods transshipment report
When countries sell things to each other, they sometimes charge extra money called tariffs.
The United States charges tariffs on things made in China.
To avoid paying, some companies send Chinese goods through another country first, change the labels, and pretend the goods are from there.
This trick is called transshipment.
The White House made a report saying more than 40 countries help China do this trick.
The report said India is one of the bigger countries that could be involved.
The United States is planning new rules to catch these sneaky shipments.
It will use computers with artificial intelligence to watch for them at the border.
If a country is caught, it may have to pay back taxes for a whole year.
The United States wants countries to play fair and pay for what they send.
The White House Office of Trade and Manufacturing Policy report accused more than 40 countries of helping Chinese exporters evade US tariffs through transshipment, relabelling, or false origin claims.
India was placed in Tier 1 ('Diversified Scale Leaders') alongside Canada, the European Union, Israel, Japan, Mexico, South Korea, and Taiwan.
Senior trade adviser Peter Navarro warned that India and Vietnam might attempt transshipment as US tariffs rise.
The US announced three measures: stronger Customs and Border Protection enforcement, an AI-driven 'detective border' monitoring system, and anti-transshipment clauses in future trade agreements.
Transshipped shipments could face retroactive tariffs covering a full year, as India-US reciprocal tariff talks continue amid US pressure over India's Russian oil purchases.
- Who
- The White House Office of Trade and Manufacturing Policy and senior trade adviser Peter Navarro; more than 40 countries were named, including India, which is in talks with the US Trade Representative's office.
- What
- A report accused countries of enabling a 'Great Transhipment Scam' that helps Chinese exporters evade US tariffs, and announced new enforcement measures and penalties.
- Where
- United States; key transshipment hubs named include Vietnam, Cambodia, Malaysia, Indonesia, and the Philippines.
- When
- The report was released on Thursday; no exact date was given in the article.
- Why
- To deter countries from helping Chinese exporters bypass US tariffs by routing or relabelling goods through third-party territories.
Key facts
- Report
- White House Office of Trade and Manufacturing Policy report on transshipment, called the 'Great Transhipment Scam'
- Countries accused
- More than 40
- India's placement
- Tier 1 'Diversified Scale Leaders' with Canada, EU, Israel, Japan, Mexico, South Korea, and Taiwan
- Tier 2 countries
- Brazil, Indonesia, Malaysia, Thailand, Turkey, Vietnam
- Tier 3 countries
- Bangladesh, Cambodia, Philippines, Singapore, Sri Lanka, United Arab Emirates
- New measures
- Executive order strengthening CBP powers, AI 'detective border' monitoring, anti-transshipment clauses in future trade agreements
- Retroactive penalties
- Tariffs could be claimed on a company's shipments over the previous year
- Context
- Ongoing India-US reciprocal tariff talks, complicated by US pressure over India's Russian oil purchases
Quotes
Senior trade adviser Peter Navarro
U.S. trade adviser for President Trump
“This is about the 40-plus countries that are enabling the transshipping, and as we impose higher tariffs on other countries, India, Vietnam, down the line, they're going to try this transhipment too. Our message is simply that the way to pay less is not to cheat; it is to stop dumping, respect intellectual property, drop your barriers to American goods and move towards reciprocity. Our warning to the lower tariff countries facilitating and enabling the transshipping is this: preferential access…”
m.rediff.com
Sources
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