Firms transshipping through S’pore must declare the true country of origin of goods: MTI
This comes after a White House report naming Singapore as part of China's 'shadow transshipment network'.
The Ministry of Trade and Industry (MTI) in Singapore has emphasized the importance of accurate declaration of the country and region of origin for goods transshipping through Singapore. This directive follows a warning issued by President Donald Trump's administration, stating that Singapore, along with numerous other economies, is at risk of being misused by Chinese exporters to evade US tariffs, a phenomenon dubbed as the "Great Transshipment Scam".
In a statement on August 15, the MTI expressed firm adherence to Singapore's commitment to upholding international trade regulations and its reputation as a trusted business hub. Singapore's economic stability is underpinned by a strong rule of law, transparent regulations, and zero tolerance for fraudulent activities.
The Regulation of Imports and Exports Act 1995, and the Strategic Goods (Control) Act 2002 govern the transshipment of goods. A circular issued by Singapore Customs in June 2025 reiterated the importance of accurate declarations in permit applications. Any incorrect declaration could be considered an offence leading to penalties, and traders are required to maintain records of documents for at least five years post-permit approval.
Singapore does not condone the use of fraudulent means to evade laws and regulations of other countries. Any violation will be met with firm and decisive action. The White House report estimated that potential tariff-evading transshipments could have been worth between US$40 billion to US$303 billion annually, and plans to use AI-powered tools to detect illegal transshipments.
The report listed Singapore in Tier 3, comprising "small, opportunistic Chinese targets" with specific weak links, such as low-cost labour, free zones, and limited Customs enforcement capacity. The MTI affirmed Singapore's commitment to enforcing trade compliance, citing an ongoing investigation into a scheme involving a Singapore-registered company and three individuals falsely declaring the origin of bedding products headed to the US.
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