US flags Korea, Japan, EU, others over transshipment risks involving China-linked goods

The United States has identified South Korea, Japan, Taiwan, and the European Union as nations facing significant transshipment risks associated with goods linked to China, according to a recent White House report. The report, titled "The Great Transshipment Scam," was released by the Office of Trade and Manufacturing Policy and highlights that Chinese exporters often route their products through third countries, employing deceptive tactics such as relabeling, repackaging, and falsely claiming the country of origin.

The administration's goal is to combat schemes aimed at evading U.S. tariffs and other trade remedies. To address this issue, the White House plans to implement a "detective border" system utilizing artificial intelligence (AI). This advanced technology would integrate shipment data, routing histories, and other relevant information to help identify high-risk shipments. By doing so, the system aims to facilitate duty collection and other necessary measures.

The report classifies several countries, including South Korea, Japan, Taiwan, the EU, India, Canada, Mexico, and Israel, as "diversified scale leaders." These nations are highlighted for their significant involvement in transshipment activities, contributing to the overall problem. The White House seeks to tackle this complex issue to ensure a fair and transparent trade environment while collecting the necessary duties on imported goods.