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The U.S. has once again raised tariffs on Chinese imports, citing issues like fentanyl as justification. This follows years of anti-dumping duties on furniture, metal products, plastics, and more¡ªsome as high as 216.83% (e.g., wooden bedroom furniture). Such tariffs erase Chinese exporters' price competitiveness, forcing many to abandon the U.S. market amid plunging orders and cash-flow crises.

Transshipment trade (via third countries) offers a legal workaround. Here¡¯s how it works:

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Transshipment Trade Process

1. First Leg: China ¡ú Transit Country (e.g., Malaysia, Thailand, Singapore)

• Chinese exporters ship goods normally, claiming export tax rebates.

• Cargo arrives at a free trade zone (FTZ) in the transit country.

2. Transit Operations: Rebilling & Rerouting

• Swap containers and relabel goods to mask Chinese origin.

• Obtain new documents:

• Transit country¡¯s Certificate of Origin (e.g., Malaysia¡¯s Form D for ASEAN trade)

• Revised commercial invoice, packing list, and bill of lading showing transit country as exporter.

3. Second Leg: Transit Country ¡ú U.S.

• Shipments enter the U.S. as "ASEAN-origin," bypassing China-specific tariffs.

• U.S. importers clear customs under the transit country¡¯s trade terms.

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Key Advantages

? Cost Savings ¨C Avoid 216.83% anti-dumping duties (e.g., furniture) or 145% punitive tariffs.
? Legal Compliance ¨C Properly documented transshipment complies with WTO rules of origin.
? Supply Chain Continuity ¨C Maintain U.S. market access without factory relocation.

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Risks & Mitigation

? U.S. Customs Scrutiny ¨C Increased audits for "country hopping"; ensure:

• No Chinese markings on goods/containers.

• Consistent paperwork (no mismatched HS codes).

? Transit Country Risks ¨C Choose stable hubs (e.g., Malaysia, Vietnam) with:

• Efficient FTZs (e.g., Port Klang, Tanjung Pelepas).

• Strong trade agreements with the U.S. (e.g., ASEAN GSP benefits).

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Case Study: Wooden Furniture Export

Route	Cost (Per Unit)	Tariff	Final U.S. Price
Direct (China¡úU.S.)	$100	+216.83%	$316.83
Transshipped (China¡úMalaysia¡úU.S.)	100+100+20 transit fee	0% (ASEAN origin)	$120

Savings: $196.83/unit ¨C restoring price competitiveness.

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Who Should Use Transshipment?

? High-tariff industries: Furniture, metals, plastics, textiles.
? SMEs lacking resources for U.S. factory relocation.
? E-commerce sellers using "de minimis" loopholes (<$800 shipments).

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Future Outlook

• U.S. may tighten rules (e.g., stricter origin audits).

• Alternative strategies:

• Nearshoring to Mexico (USMCA tariff benefits).

• Bonded warehouses in Canada/EU for reprocessing.

Pro Tip: Partner with experienced transshipment agents to ensure seamless logistics and compliance.