US Lists Uzbekistan Among Countries at Risk of Chinese Goods Transshipment
Economy
The White House has included Uzbekistan among jurisdictions identified in a new US report as having a potential risk of Chinese goods being re-exported to the United States to circumvent American tariffs. More than 40 countries are mentioned in the document.
According to the report, titled “The Great Transshipment Scam,” Chinese goods may be routed through third countries, where they undergo minimal processing, repackaging or relabelling before being exported to the US with a different declared country of origin.
The report divides the jurisdictions into three groups. Uzbekistan is included in the third group alongside Kazakhstan, Azerbaijan, the UAE, Singapore, Switzerland, Argentina, Bangladesh, Cambodia and other countries.
The White House, however, explicitly notes that a decline in China’s share of US imports combined with rising shipments from other countries does not by itself prove illegal transshipment. Such changes may also reflect legitimate relocation of production and restructuring of global supply chains.
Under the report’s baseline scenario, annual illegal transshipment could amount to $75 billion. The document estimates potential losses to US federal revenues at $19–26 billion annually, with approximately 450,000 jobs potentially affected.
Peter Navarro, head of the White House Office of Trade and Manufacturing Policy, said China had employed sophisticated transshipment schemes through third countries following the introduction of tariffs.
The United States plans to strengthen controls over the origin of imported goods and improve efforts to identify tariff-evasion schemes.
The report divides the jurisdictions into three groups. Uzbekistan is included in the third group alongside Kazakhstan, Azerbaijan, the UAE, Singapore, Switzerland, Argentina, Bangladesh, Cambodia and other countries.
The White House, however, explicitly notes that a decline in China’s share of US imports combined with rising shipments from other countries does not by itself prove illegal transshipment. Such changes may also reflect legitimate relocation of production and restructuring of global supply chains.
Under the report’s baseline scenario, annual illegal transshipment could amount to $75 billion. The document estimates potential losses to US federal revenues at $19–26 billion annually, with approximately 450,000 jobs potentially affected.
Peter Navarro, head of the White House Office of Trade and Manufacturing Policy, said China had employed sophisticated transshipment schemes through third countries following the introduction of tariffs.
The United States plans to strengthen controls over the origin of imported goods and improve efforts to identify tariff-evasion schemes.
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