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Chinese exporters are working around U.S. tariffs

     Dueling Chinese-US containers

Despite the imposition of heavy U.S tariffs on products destined for U.S consumers, many Chinese manufacturers are still able to reach the U.S. by first moving final manufacturing through other countries such as Vietnam, Taiwan and Mexico – then moving the finished goods into the U.S.. 

Have a look at these trade shifts in the first quarter for 2019:  China to Vietnam – up $1.5 billion; Vietnam to U.S. – up $2.7 billion; China to Taiwan – up $1.4 billion; Taiwan to U.S – up  $2 billion.  Mexico’s numbers are up as well and could still increase.  At the same time, there is concern about fake “roundabouts”, where a product from country “A” avoids a tariff by saying it is from a country that is not subject to tariffs.

Not sure whether these shifts in trade routes could be good or difficult for your business?  Get the answers you need by speaking with Brian Rowe, Director – Customs Compliance & Regulatory Affairs.

Quick Tip #3
How to avoid customs penalties for non-compliance

Sooner or later, your business will be audited by Customs (CBSA) to ensure you have not committed violations that are subject to AMPS (Administrative Monetary Penalty System) penalties.

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