Singapore firms must declare true origin of transshipped goods

“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.

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 said 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$40 billion (S$51.2 billion) to US$303 billion annually.

It also said the administration will use an artificial intelligence-powered “Detective Border”, among other initiatives, to help crack down on illegal transshipments.

The report named about 40 economies, including Singapore, as participants in the “shadow transshipment network”, and grouped them into three tiers in accordance with the extent of their involvement.

Tier 1 economies included Canada, the European Union, India, Israel, Japan and Taiwan, and were described as major US-bound export platforms where transshipment risk is embedded within broad legitimate trade flows.

Tier 2 economies were those with significant economic integration with China, and include Brazil, Indonesia, Malaysia, Thailand, Turkey and Vietnam.

The White House placed Singapore in Tier 3, which the report said consists of “small, opportunistic Chinese targets”. Others in Tier 3 included Cambodia, Laos, Myanmar and the Philippines. 

“These are smaller economies with lower absolute illegal transshipment volumes but specific weak-link advantages – including low-cost labour, free zones, port or border access, bonded warehousing, niche assembly capacity, preferential US access or limited Customs enforcement capacity – that make them attractive opportunistic targets for China-linked rerouting.”

However, MTI said Singapore has and will continue to enforce trade compliance.

As an example of enforcement, MTI cited how a Singapore-registered company and three individuals – two Singaporean residents and a Chinese national – were charged on Aug 14 for their alleged involvement in a scheme to falsely declare the origin of bedding products headed to the US. The investigation commenced in February 2026.

The White House report did not say what immediate action will follow. In August 2025, the US announced an additional 40 per cent tariff specifically on goods determined to have been illegally transshipped to evade duties.