Singapore, together with China & EU, pushes back against US’ ‘Transshipment Scam’ accusations

The White House recently released a report claiming that China, along with 40 other economies, may have contributed to a "Transshipment Scam" by assisting Chinese goods in bypassing U.S. tariffs. However, China, Singapore, and the European Union have rejected these allegations. The White House report, titled "The Great Transshipment Scam," suggests that this alleged shadow network may have cost the U.S. up to $303 billion.

China maintains that its companies have been unfairly targeted and that its regulatory independence is non-negotiable. The EU emphasizes that its rules are non-negotiable. Singapore's Ministry of Trade and Industry (MTI) stresses its commitment to trade compliance, stating that firms operating in Singapore must accurately declare the origin of their goods and that the government does not tolerate companies that use Singapore to evade other countries' laws.

The US identifies 40 economies, categorized into three tiers based on their trade relations with China. Singapore falls under the third tier, which includes smaller countries considered potential "weak links" for transshipment, such as Switzerland, Oman, the Philippines, and Myanmar. No penalties have been imposed against Singapore, but industry experts suggest the city-state may face increased scrutiny to demonstrate the integrity of its ports and trade infrastructure.