The report estimates billions in federal revenue lost because of “China’s Shadow Transshipment Network.”
The White House has released a report, titled “The Great Transshipment Scam,” that accuses China of shipping goods to third-party countries in order to avoid tariffs. The report states that China has been sidestepping tariff fees by shipping goods to countries with lower tariffs. The White House named over 40 countries complicit in “China’s Shadow Transshipment Network,“ located across Europe, Asia, Africa, South America, and North America. This is estimated to have resulted in $19-$26 billion in lost federal revenue.
Once an item has shipped from a Chinese company to a secondary country, goods may be repackaged with fresh labels, and some small assembly may take place. From there, the items are shipped as non-Chinese goods.
The report stated, “The message to the world is simple. The age of untraceable illegal transshipment is over. What once seemed like quiet paperwork maneuvers, relabeling, repackaging, re-invoicing, has become a matter of economic sovereignty and national will.”
As the Lord Leads, Pray with Us…
- For administration officials seek to prevent Chinese goods from being transshipped through other countries.
- For the president and his trade team as they evaluate trade deficits and tariffs.
Sources: MSN, UPI News
