News
Chinese Tariffs · Origin Washing · Supply Chain · Trade Fraud
Chinese exporters are actively using "origin washing" schemes, advertised on social media platforms like Xiaohongshu and Douyin, to evade steep U.S. tariffs, including a 145% tariff on Chinese imports, by re-exporting goods through Southeast Asian countries like Vietnam and Thailand.
Freight forwarders are facilitating these schemes, managing customs documents, clearance, and certificates of origin, with their service fees rising due to demand, as noted by Taiwanese businessman Lee Meng-chu. Some forwarders even change or reload containers to disguise origins.
One Douyin user, "Freight Forwarder Lao Wang," claims an 80% compliant transshipment channel. However, scrutiny is intensifying; Vietnam and Thailand have increased inspections, and countries deploy AI to monitor shipping routes for tax evasion.
U.S. law requires "substantial transformation" for a new origin country, and tariff fraud carries severe penalties, including up to 20 years imprisonment and 300% fines. Professor Sun Kuo-Hsiang of the University of South China states manufacturers resorted to origin washing due to incomplete factory construction or lack of capacity in planned relocation sites.
European and U.S. authorities have also stepped up scrutiny, but inspection capabilities struggle to keep pace with the widespread promotion of these services.
