When ‘Made in Vietnam’ Products Are Actually From China

As described in the video, transshipment is one form of illegal import activities and occurs when false country-of-origin information is provided for imported goods in order to evade U.S. customs duties. Transshipment was a major issue in textile and apparel trade back in days when the quota system was still in place.

According to the media, because of the escalating U.S.-China tariff war, customs fraud such as transshipment is thriving again. Some fashion companies are also using tariff engineering to avoid paying the punitive tariffs in a legal way. Indeed, how to label “Made in ___” can be much more complicated, technical and subtle than we realize.

Related reading:

Author: Sheng Lu

Professor @ University of Delaware

One thought on “When ‘Made in Vietnam’ Products Are Actually From China”

  1. When you calculate at the additional transportation costs for transshipments (plus the additional risk of penalties), the additional production costs for “tariff engineering” (plus the risk that these processings will not be accepted by CBP at the end) and the negative effects on the so important lead-times – it is really cheaper than paying 10% additional duties ?

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