Firms transhipping through Singapore must declare the true country of origin of goods: MTI
The US flagged Singapore and dozens of other economies as at risk of being used by Chinese exporters to avoid US tariffs
The Ministry of Trade and Industry (MTI) in Singapore stated on August 15 that companies transshipping goods through the country must abide by the nation's laws, which include accurately declaring the country and region of origin. This directive comes in response to a report issued by the US administration on August 13, titled "The Great Transshipment Scam," which labeled Singapore and several other economies as vulnerable to being exploited by Chinese exporters for circumventing US tariffs.
The US President Donald Trump administration's report suggested that the routing of Chinese goods through intermediate, lower-tariff countries was a sophisticated method to conceal their true origin.
Singapore's economic prosperity is maintained through a robust rule of law, transparent regulations, and zero tolerance for fraud, corruption, and criminal activities. The MTI emphasized that Singapore is dedicated to preserving its international reputation and maintaining the integrity of its business environment. Singaporean traders and declaring agents are required to adhere to the Regulation of Imports and Exports Act 1995 and the Strategic Goods (Control) Act 2002, ensuring accurate and truthful declarations regarding the country and region of origin in all customs permit applications.
The Ministry highlighted that an inaccurate declaration, including the country of origin, can be considered an offense, potentially leading to penalties. Additionally, traders are obligated to maintain records of relevant documents, such as proof of origin, for a minimum period of five years from the approval of their permit application.
Singapore does not tolerate any business practices that attempt to circumvent or violate the laws of other countries, and the government is prepared to take firm and decisive action against any violations.
The White House report, which assessed the potential financial impact of illegal transshipments, estimated that tariff-evading transshipments could range from US$40 billion to US$303 billion annually. The administration plans to utilize an AI-powered "Detective Border" system, among other measures, to combat illegal transshipments.
The report classified Singapore as a Tier 3 economy, which consists of smaller economies with lower absolute illegal transshipment volumes but specific weaknesses, such as low-cost labor, free zones, and limited Customs enforcement capacity, that render them attractive targets for rerouting by China-linked entities. However, the MTI reaffirmed Singapore's commitment to upholding trade compliance and enforcing existing regulations to maintain the country's reputation as a reliable international business hub.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
