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Chinese Exporters are paying the tariffs.... sort of.
Posted on 5/20/25 at 7:13 am
Posted on 5/20/25 at 7:13 am
quote:
By using the “delivered-duty-paid” shipping approach where sellers pay for all import duties, and by under-invoicing shipments, some Chinese sellers are able to offer U.S. customers pre-tariff prices, while still turning a profit, according to legal experts and industry veterans.
quote:
Chinese exporters, often through freight forwarders — companies that handle the logistics of shipping merchandise — understate the value of goods or mislabel them, often both, in the shipping documents to draw lesser duties.
Shipments are then routed through shell companies, registered under names of foreign entities or individuals, that act as “importers of record,” which the U.S. government deems responsible for the accuracy of customs filings and all applicable duties.
They want our consumer! They will get right.
LINK
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Posted on 5/20/25 at 7:31 am to Jjdoc
China is asshoe. They just refuse to play by the rules
Time to decouple completely. They won’t negotiate in good faith on trade, they’ll just drag it out and bend the rules to avoid most tariffs until they run out the clock and it’ll be business as usual when the next administration comes in.
I hope Trump recognizes this and cuts them off completely
Time to decouple completely. They won’t negotiate in good faith on trade, they’ll just drag it out and bend the rules to avoid most tariffs until they run out the clock and it’ll be business as usual when the next administration comes in.
I hope Trump recognizes this and cuts them off completely
Posted on 5/20/25 at 7:33 am to deltaland
It’s past time that we decouple. Way past.
This post was edited on 5/20/25 at 8:39 am
Posted on 5/20/25 at 7:39 am to Jjdoc
Customs cross checks pricing with previous shipping, underinvoicing wont work.
Customs REALLY scrutinizes changing freight forwarders, when most have contracts, why would you suddenly change.
If they suspect wrongdoing they will hold your containers and charge you daily demurrage at an exorbitant rate.
And if they find anything wrong they will fine the snot out of you.
Fellas US customs handles more incoming cargo than any in the world, They will forget more ways to steal than the chinese will ever learn.
Customs REALLY scrutinizes changing freight forwarders, when most have contracts, why would you suddenly change.
If they suspect wrongdoing they will hold your containers and charge you daily demurrage at an exorbitant rate.
And if they find anything wrong they will fine the snot out of you.
Fellas US customs handles more incoming cargo than any in the world, They will forget more ways to steal than the chinese will ever learn.
This post was edited on 5/20/25 at 7:41 am
Posted on 5/20/25 at 7:48 am to trinidadtiger
i've been in import with China since 1998. I've personally been to China more times than I can count. I can assure you, China is not dumb. In fact, right now. China is sending their ships to countries like Malaysia. Where they'll unpack the freight, remove all traces of made in China and repack the box. Want proof, pay attention to the "made in" labels on marine/powersport batteries at you local auto parts store.
I can assure you that battery wasn't actually "made in Malaysia" as the sticker shows.
I can assure you that battery wasn't actually "made in Malaysia" as the sticker shows.
Posted on 5/20/25 at 7:58 am to Jjdoc
quote:By definition, if there is a trade imbalance to another country's favor- they need our market more than we need theirs.
They want our consumer! They will get right.
Maybe a little. Maybe a lot. But they have the greater need and thus will make some (maybe small, maybe big) concession or adjustment on their end or suffer more than we will. It's settled science (LOL).
Posted on 5/20/25 at 8:04 am to GhostofJimMorrison
So what's in it for Malaysia? I would assume that the companies working on the repackaging as you describe are phantom Chinese companies set up to do what you describe. Would Malaysia be complicate in this operation? If not complicate, would Malaysia try to stop these shenanigans? Just using Malaysia as an example, it could be any country.
This post was edited on 5/20/25 at 8:05 am
Posted on 5/20/25 at 8:07 am to Jjdoc
Boasting to the media about this wasn’t very smart of our exporter friends.
Posted on 5/20/25 at 8:26 am to Victor R Franko
quote:
would Malaysia try to stop these shenanigans?
I would assume there's a risk of having a punitive tariff placed on everything they export to the US. The question is whether they're willing to take that risk. Some other countries may be playing this game too, like Vietnam.
Posted on 5/20/25 at 8:30 am to wdhalgren
Exactly! They get caught playing this game and all their exporters to US get to pay extra.
So why would they allow the switcheroo?
So why would they allow the switcheroo?
Posted on 5/20/25 at 8:45 am to I20goon
quote:
I20goon
It is about degree dumbass.
Posted on 5/20/25 at 8:48 am to Jjdoc
Hoping this little 90 day pause was to curtail the “muh Trump ruined Christmas” crowd and after the 90 days we go back scorched earth.
Posted on 5/20/25 at 9:07 am to RohanGonzales
quote:
I20goon
quote:liberal arts degree? Degree the deodorant?
It is about degree dumbass.
what degree are you referring.
I'll note you said the singular degree, not plural degrees... so I'm guessing you have something really specific in mind when you called me a dumbass for pointing out we have the leverage.
This post was edited on 5/20/25 at 9:08 am
Posted on 5/20/25 at 9:44 am to Victor R Franko
That really depends on what/how they are doing it. For the example used, if China is manufacturing the battery and sending it to Malaysia, it is still a product of China. Then the Malaysian company simply has to assemble some final piece(ies) like butting the battery in the plastic mold, and now it is a product of Malaysia and gets to follow their export rules.
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