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.
11 Comments
ZmeeLove
These tactics are hurting American businesses. We need to protect US manufacturers at all costs.
Africa
They're hiding the true costs and origins. This gives Chinese manufacturers an unfair advantage.
Mariposa
Double invoicing and tax evasion? Sounds like they're not playing fair. Protect American jobs!
Muchacha
If they're using 'marketing' as a loophole, it's blatant tax avoidance. This hurts everyone who plays by the rules.
Bella Ciao
Trump is right to take action. These logistics companies are cheating the system and hurting American businesses.
Katchuka
Sounds like a complex issue. Undervaluing goods could be problematic if the value is set unreasonably.
BuggaBoom
The 'double clearance' strategy is a blatant attempt to game the system. We need to hold them accountable.
KittyKat
Finally, someone's calling out the blatant manipulation. These companies need to be investigated.
Noir Black
About time the government took notice. They need to start blocking these companies.
Loubianka
We need to strengthen the laws. Otherwise, the trade war is pointless.
Eugene Alta
This confirms what we suspected. Chinese companies are finding ways to circumvent tariffs. Time for stronger enforcement.