2 weeks Ago
China-based brokers are rerouting goods through Malaysia and falsely labelling them as Malaysian to avoid steep US tariffs on Chinese imports.US online sellers report a surge in unsolicited offers to undervalue shipments or misdeclare their origin, raising legal and ethical concerns.Experts warn that Malaysia’s trade reputation could suffer if the country becomes a convenient cover for tariff evasion amid escalating US-China tensions.
KUALA LUMPUR, April 24 — Online sellers in the United States are being inundated with suspicious offers to evade tariffs on Chinese goods, and Malaysia’s name is being misused as part of the scheme.Bloomberg reported that some China-based freight brokers are allegedly rerouting products through Malaysia and falsely declaring them as Malaysian-made to exploit lower tariff rates.One broker told Bloomberg that “most clients are opting to route Chinese merchandise through Malaysia and say it was made there” to avoid US tariffs as high as 145 per cent.
Malaysia’s tariff rate stands at 24 per cent, making it an attractive cover for goods that actually originate in China.These offers have surged since former US president Donald Trump reimposed steep tariffs on Chinese imports earlier this month, according to five merchants interviewed by Bloomberg.The brokers typically reach out on social media, offering to help reduce costs by faking shipment values or origins.
“We can provide the solution to help you save your cost,” read one such message from a logistics firm offering to serve as an importer and declare a lower value for a shipment.Malaysian trade analysts warn that if such practices persist, they could jeopardise the country’s standing in global markets and expose legitimate exporters to heightened scrutiny.Fraudulent declarations of origin are illegal under US customs law and can lead to civil or criminal penalties for those involved.
US Customs and Border Protection has not confirmed if it has intensified enforcement but said it relies on complaints submitted through its online portal.Analysts say Malaysia must act quickly to ensure its export label is not exploited in the ongoing trade conflict between China and the US.Trade groups have urged Malaysian authorities to investigate any misuse of the national identity and defend the integrity of the country’s exports.
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