His global repression of customs Donald Trump caused confusion among companies all over the world. The president of the United States is peculiarly harsh towards China. He imposed peculiar duties of 145 percent on most of the goods in the People's Republic of China. Since last Friday there are besides advanced duties on inexpensive goods from China.
However , according to financial reports , Times, Chinese exporters have already begun to search ways to circumvent the advanced duties. They so transport products through 3rd countries specified as Malaysia, South Korea and Vietnam. There, goods are supplied with fresh certificates of origin to be presented as products originating in those countries. As a result, only lower work rates would apply to these countries.
The paper quotes a sales typical of a Chinese company that stated that the goods are sold to neighbouring countries and then exported to United States to reduce the rates of duty. The goods are dispatched in specified a way that the purchaser assumes work for the products after they leave the port of departure. This reduces the legal hazard to the exporter.
According to FT, there are many advertisements on Chinese social platforms offering ‘washing of origin’. The authorities already note changes in the flow of goods. According to the newspaper, the South Korean customs office reported that it observed a sharp increase in the number of cases where South Korea was utilized as a way to circumvent various tariffs and import restrictions due to changes in US trade policy. "We have found many cases where Chinese products have been falsely declared Korean", the paper quoted a declaration from the customs authority.
Forged $21 million worth of Korean goods
According to the report, in the first 4th of that year in South Korea abroad products worth $29.5 billion ($21 million) were discovered, whose counterfeits came from different countries. Most of them came from China, and almost all were destined for the US. According to the report, especially tiny and medium-sized enterprises in China consider it essential to circumvent the duties in order to proceed the key export activities to the US.
Another strategy to circumvent advanced tariffs is to mix costly goods with inexpensive ones, as the Trade Consultant, as quoted by ‘FT’, claims. This may lead to exporters falsely declaring lower full transportation costs. According to the newspaper, the authorities of transit countries are already concerned. In Malaysia, the liable ministry stated that any effort to avoid customs duties by providing false or misleading information would be considered a serious offence. If there is any evidence of this, appropriate action will be taken in cooperation with Malaysian customs authorities and the US authorities.
Anonymous employees of logistics companies told France Télécom that the authorities in Malaysia were not peculiarly strict so far. However, the quantity of goods is controlled to avoid exaggeration.
