By Jennifer Chang    Photo：CANVA

Under the shadow of global trade wars, businesses, desperate to survive and thrive, have resorted to risky practices such as illegal transshipment to evade tariffs and gain an unfair competitive advantage. However, this seemingly clever strategy is fraught with significant risks and costs. With the outbreak of trade wars, trade barriers among countries have been continuously raised, and trade protection measures such as tariffs have emerged in abundance. To cope with these trade barriers, some enterprises have started to seek various ways to evade tariffs, and illegal transshipment has become one of the common methods.

What is illegal transshipment? It refers to the act of falsely declaring or transferring goods during transportation to evade tariffs, trade restrictions, or other legal regulations. For example, products originating from high-tariff countries may be transshipped through a third country and then imported under the name of a low-tariff country, thereby achieving the goal of reducing costs and increasing competitiveness.

The methods of illegal transshipment are diverse and highly deceptive. Common practices include:Forged Certificates of Origin: Marking the goods' origin as a low-tariff country or region to evade high tariffs.

False Declaration: Intentionally undervaluing the goods or reporting incorrect quantities to reduce the tax liability.Fraud in transshipment trade: Transshipping goods between multiple countries to conceal their true origin. These activities often involve complex transnational networks, making it difficult for law enforcement agencies to trace and combat.

Although illegal transshipment may bring short-term profits to businesses, the risks and costs far outweigh the potential gains. This practice violates customs regulations in multiple countries, and if detected, businesses may face hefty fines, confiscation of goods, and even criminal charges. Furthermore, once illegal transshipment is exposed, the company's reputation will suffer significant damage, customer trust will decline, and market share will shrink. This behavior can also exacerbate trade tensions, fueling the rise of trade protectionism and further restricting trade activities. The complexity of illegal transshipment also increases uncertainty in the supply chain, potentially leading to disruptions and impacting the normal operations of businesses.

Illegal transshipment is a cancer in international trade, seriously jeopardizing the global economic order. With the deepening of globalization, the task of combating illegal transshipment has become increasingly urgent. Only through the joint efforts of all countries can we thoroughly eradicate this dark corner that thrives in international trade."

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