titled \u201cThe Great Transshipment Scam\u201d,<\/span><\/a>\u00a0framed the routing of Chinese goods through an intermediate lower-tariff country as an elaborate scheme to conceal their true origin.<\/p>\n\u201cSingapore takes trade compliance seriously,\u201d said an MTI spokesperson.<\/p>\n
The ministry noted that Singapore\u2019s economic competitiveness is underpinned by strong rule of law, transparent regulations, as well as zero tolerance for fraud, corruption and criminal activities.<\/p>\n
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, said MTI.<\/p>\n
The transshipment of goods is governed by the Regulation of Imports and Exports Act 1995, and the Strategic Goods (Control) Act 2002.<\/p>\n
MTI cited a June 2025 Singapore Customs circular to all traders and declaring agents reiterating the importance of accurate \u201cCountry\/Region of Origin\u201d declarations in permit applications.<\/p>\n
The circular stated that all customs declarations, including Singapore\u2019s import, export and transshipment permit applications, are required to be accurate and truthful under the Customs Act and Regulation of Imports and Exports Act.<\/p>\n
\u201cAn incorrect declaration, including as to country\/region of origin, may amount to an offence and result in penalties,\u201d the circular stated.<\/p>\n
Traders are also required to maintain a record of documents \u2013 including proof of origin \u2013 relating to the purchase, import, sale or export of their goods for at least five years from the date of permit application approval.<\/p>\n
MTI said: \u201cSingapore 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.\u201d<\/p>\n
The White House report said that a substantial reallocation of US import sourcing followed the tariffs imposed on Chinese goods in 2018. As China\u2019s direct share of US goods imports declined, the combined share supplied by transshipment countries increased.<\/p>\n
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.<\/p>\n
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.<\/p>\n
It also said the administration will use an artificial intelligence-powered \u201cDetective Border\u201d, among other initiatives, to help crack down on illegal transshipments.<\/p>\n
The report named about 40 economies, including Singapore, as participants in the \u201cshadow transshipment network\u201d, and grouped them into three tiers in accordance with the extent of their involvement.<\/p>\n
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.<\/p>\n
Tier 2 economies were those with significant economic integration with China, and include Brazil, Indonesia, Malaysia, Thailand, Turkey and Vietnam.<\/p>\n
The White House placed Singapore in Tier 3, which the report said consists of \u201csmall, opportunistic Chinese targets\u201d.\u00a0Others in Tier 3 included Cambodia, Laos, Myanmar and the Philippines.\u00a0<\/p>\n
\u201cThese are smaller economies with lower absolute illegal transshipment volumes but specific weak-link advantages \u2013 including low-cost labour, free zones, port or border access, bonded warehousing, niche assembly capacity, preferential US access or limited\u00a0Customs\u00a0enforcement capacity \u2013 that make them attractive opportunistic targets for China-linked rerouting.\u201d<\/p>\n