Chinese Logistics Firms Aid Tariff Evasion in US-China Trade War
The trade conflict between the United States and China intensified this week, with President Donald Trump taking further action. A significant factor complicating the situation is the presence of numerous Chinese logistics companies. Experts suggest these companies are assisting manufacturers in mitigating the effects of U.S. tariffs.
These logistics providers employ various strategies to lessen the impact of tariffs. Some of these strategies involve undervaluing the worth of goods being shipped or concealing the true origin of the products. The rise of these companies has been particularly noticeable since the start of the trade war.
A key service offered by these companies is known as "double clearance and tax inclusive." They manage customs compliance on both the Chinese and American sides of the trade process. They often utilize related companies that act as importers of record. Legal professionals have identified tactics such as double invoicing as a method to reduce tariff payments. This can involve understating the price of a product on one invoice and then allocating the remaining cost to a service, such as "marketing," which is not subject to tariffs.

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