Transshipment firms to declare true cargo origin

SINGAPORE: Companies transshipping goods through Singapore are expected to fully comply with the Republic’s laws and regulations, including accurately declaring the country and region of origin, said the Trade and Industry Ministry (MTI) on Saturday.

The MTI was responding to queries from The Straits Times about a report issued on Aug 13 by US President Donald Trump’s administration that flagged Singapore and dozens of other economies as at risk of being used by Chinese exporters to avoid US tariffs.

The report issued by the White House, titled The Great Transshipment Scam, framed the routing of Chinese goods through an intermediate lower-tariff country as an elaborate scheme to conceal their true origin.

“Singapore takes trade compliance seriously,” said an MTI spokesperson.

The ministry noted that Singapore’s economic competitiveness is underpinned by strong rule of law, transparent regulations, as well as zero tolerance for fraud, corruption and criminal activities.

As a trusted international business hub, Singapore is committed to upholding the international reputation that it has built up over time and safeguarding the integrity of our business environment, the MTI further added.

The transshipment of goods is governed by the Regulation of Imports and Exports Act 1995, and the Strategic Goods (Control) Act 2002.

The MTI cited a June 2025 Singapore Customs circular to all traders and declaring agents reiterating the importance of accurate “Country/Region of Origin” declarations in permit applications.

The circular stated that all customs declarations, including Singapore’s import, export and transshipment permit applications, are required to be accurate and truthful under the Customs Act and Regulation of Imports and Exports Act.

“An incorrect declaration, including as to country/region of origin, may amount to an offence and result in penalties,” the circular stated.

Traders are also required to maintain a record of documents – including proof of origin – relating to the purchase, import, sale or export of their goods for at least five years from the date of permit application approval.

The MTI said: “Singapore does not condone businesses using their association with Singapore and using fraudulent and dishonest means to circumvent or violate the laws and regulations of other countries. Singapore will also not hesitate to take firm and decisive action against any violation of our laws.”

The White House report noted that a substantial reallocation of US import sourcing followed the tariffs imposed on Chinese goods in 2018. As China’s direct share of US goods imports declined, the combined share supplied by transshipment countries increased.

While the White House admitted that some of the shift in trade may have reflected legitimate changes in production, investment and sourcing, the timing, magnitude and direction of the two trends support further investigation.

Using estimates from government and private-sector studies, the report estimates that potential tariff-evading transshipments may have been within a range of US$40bil (S$51.2bil) to US$303bil annually.

It said the administration will use an artificial intelligence-powered “Detective Border”, among other initiatives, to help crack down on illegal transshipments. — The Straits Times/ANN