Firms transshipping through Singapore must declare the true country of origin of goods: MTI

The Ministry of Trade and Industry (MTI) in Singapore has informed that firms transshipping goods through the country must accurately declare the true country and region of origin of their goods, as stated on August 15, 2025. This directive follows a US administration's report titled "The Great Transshipment Scam," which flagged Singapore and several other economies as potential targets for Chinese exporters seeking to avoid US tariffs.

The report, published on August 13, suggested that Chinese goods might be routed through intermediate lower-tariff countries to conceal their true origin. The MTI emphasized Singapore's commitment to upholding international trade rules and maintaining its economic competitiveness, which is built on strong rule of law, transparent regulations, and zero tolerance for fraud, corruption, and criminal activities.

The Ministry cited a June 2025 Singapore Customs circular that reiterated the requirement for accurate and truthful declarations regarding the country/region of origin in permit applications. Such declarations are considered offences under Singapore's Customs Act and Regulation of Imports and Exports Act, leading to penalties for incorrect declarations.

Traders are also mandated to maintain records of relevant documents, including proof of origin, for at least five years. The US administration's report suggested that potential tariff-evading transshipments might amount to a significant range of US$40 billion to US$303 billion annually. The White House administration announced plans to utilize an AI-powered "Detective Border" system to tackle illegal transshipments.

Currently, Singapore is categorized under Tier 3 in the report, alongside other smaller economies such as Cambodia, Laos, Myanmar, and the Philippines, which are considered opportunistic targets for China-linked rerouting.