Customs to fight this growing trade fraud with AI ‘detective border’
A new White House report says transshipments have become a growing target of global scammers. The post Customs to fight this growing trade fraud with AI ‘detective border’ appeared first on FreightWaves .
A White House report warns that illegal transshipment of goods from China through third countries has become a global scheme to avoid U.S. tariffs, potentially costing the Treasury tens of billions of dollars each year and harming American manufacturing. Over 40 countries are identified as high-risk in the transshipment process, including major trading partners and manufacturing hubs.
The report suggests that this issue may be tied to the trade shifts following the Trump administration's 2018 tariffs on Chinese goods. Estimated annual losses due to transshipment range from $40 billion to $303 billion. The report advocates for an AI-powered "Detective Border" system to help Customs and Border Protection identify high-risk shipments by analyzing shipment data, routing histories, product classifications, and other factors.
This system aims to distinguish legitimate foreign investment and supply chain diversification from fraudulent trade practices.
Written by urgent.news from FreightWaves's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
