China has devised an innovative method to evade U.S. tariffs
**" Hey there! Check out this juicy scoop on the trade war between China and the USA. Chinese companies are getting creative to dodge import tariffs, and it's causing quite a stir.
Now, guess what they're up to? They're using the DDP strategy – which, by the way, isn't a sneaky trick, but an Incoterm where the seller covers all customs expenses. Not a big deal if they're declaring the correct value of goods, right? WRONG!
They're low-balling the value of their goods or twisting their descriptions to reduce duty amounts like crafty little con artists. Yup, that's just their day job. Ryan Petersen, CEO of FT Flexport, confirmed the shady tactics saying, "Yep, we're seeing more and more of these factories in China offering to cover customs duties and then selling to the US at lower prices than they should."
American companies like ShipHero and Rubin's are on the same page, reporting these shenanigans to US Customs and Border Protection.
Fun fact: Financial Times once spotted ads on Chinese social media showing how some goods are being routed to Malaysia to get fresh certificates of origin and then headed for the US. These clever middlemen offer services like repackaging, relabeling, and counterfeiting certificates, helping these goods sneak through US customs as Southeast Asian products and avoid the steep tariffs waiting for them.
So, as the US ratcheted up tariffs on Chinese goods starting in February, reaching 145% mid-April, China fought back with tariffs up to 125% and restrictions on exporting certain minerals. The White House even warned China could face 245% tariffs.
But, don't worry folks! At the end of April, ol' Donald Trump announced a potential tariff reduction for China between 50-65% to try and cool things down with Beijing. Phew!
Stay tuned for more updates, follow us on Telegram at @expert_mag!"
- #China
- #USA
- #Tariffs
- #TradeWar
- #CustomsFraud
(Pro tip: Remember when China set up factories in the US or bought up local brands? That's a legit way to avoid tariffs and expand market presence!)(Quick question: Did you know that sometimes Chinese exporters use neighboring countries like Vietnam or South Korea as relay stations and relabel goods to claim a different country of origin? That's illegal if no value is added to the products during transshipment!)(Fact check: Routing goods through Malaysia gets them no special treatment for evading tariffs, but middlemen could offer dishonest services like repackaging, relabeling, or falsifying certificates to hide the fact that goods are actually from China.)**
- Chinese companies are using creative methods to bypass US import tariffs under the DDP strategy, a practice that, while legitimate, is being misused by low-balling the value of goods and manipulating their descriptions to reduce duties.
- Flexport CEO Ryan Petersen confirms that an increasing number of Chinese factories are offering to cover customs duties and selling to the US at lower prices than they should, a practice known as customs fraud.
- In addition, some advertising on Chinese social media suggests routing goods to Malaysia to obtain fresh certificates of origin, allowing them to pass as Southeast Asian products and avoid US tariffs, a practice that involves services like repackaging, relabeling, and counterfeiting certificates.
- Amidst the escalating trade war between China and the USA, both countries have imposed restrictive tariffs on each other's goods and commodities, with China retaliating by imposing tariffs and restrictions on exporting certain minerals.
- Despite the ongoing trade war, President Trump recently announced a potential tariff reduction for China, ranging between 50-65%, as the US seeks to de-escalate tensions with Beijing in the ever-evolving trade war discussions.
