With U.S. tariffs on Chinese goods as high as 145%, many Chinese manufacturers are seeking ways to maintain access to the American market. There are increasingly frequent reports of "origin-washing," where goods are shipped to Southeast Asian countries like Malaysia, Vietnam, and Thailand, relabeled with a new country of origin, and then re-exported to the United States. This tactic aims to bypass the tariffs, often through superficial repackaging or dubious certificates of origin that mislead U.S. customs.
Social media platforms in China are now flooded with ads offering these services, promising the seamless "transformation" of goods into Southeast Asian exports. Logistics companies in the region are reportedly facilitating the process by rerouting containers, changing documentation, and leveraging lenient customs oversight in certain jurisdictions. South Korea, Vietnam, and Thailand have all reported increases in origin fraud, while their customs authorities have pledged tighter inspections.
What’s especially troubling is how Chinese manufacturers are distancing themselves from the legal risks involved. By using "free on board" (FOB) shipping terms, sellers offload liability the moment goods leave the port. That burden then shifts to U.S. buyers—often unknowingly—who may face seizure of goods or fines if customs find misrepresented origins.
This shifting of responsibility highlights a growing risk for importers that have previously relied on suppliers to ensure compliance with international trade policies such as tariffs. As trade environments become more complex and enforcement ramps up, companies will need help verifying the true origins of their goods.
Corporate investigators play a critical role here. From forensic supply chain audits to document verification and enhanced due diligence on manufacturers and distributors, investigative consultants can be critical in helping businesses detect potential fraud, protect themselves from liability, and maintain ethical and compliant sourcing practices. In today’s volatile trade landscape, systematic and thorough supply chain analysis is essential.
Chinese exporters are stepping up efforts to avoid tariffs imposed by US President Donald Trump by shipping their goods via third countries to conceal their true origin. Chinese social media platforms are awash with adverts offering “place-of-origin washing”, while an inflow of goods from China has raised alarm in neighbouring countries wary of becoming staging posts for trade actually destined for the US.
https://www.ft.com/content/147fddbb-7031-4347-9251-4425614e138d
