Dodging Trump’s tariffs! US fines companies transshipping via Cambodia

by Apparel Resources News-Desk

20-June-2019  |  1 min read

Cambodia Garment Factory
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The US has fined many companies for exporting goods via a Chinese-owned special economic zone in Cambodia in a bid to dodge President Donald Trump’s tariffs on Chinese imports.

These companies are located in Cambodia’s Sihanoukville Special Economic Zone, but names and numbers of such companies have not been made public.

Substantiating further, Kaing Monika, Deputy Secretary General of the Garment Manufacturers Association of Cambodia (GMAC), said he was unaware of the transshipments.

It is worth noting that GMAC represents 600 garment factories in Cambodia and the US $ 7-billion apparel industry is the largest formal employer in the Southeast Asian country.

“The Department of Homeland Security has inspected and fined a number of companies for evading tariffs in the United States by routing goods through Cambodia,” US Embassy spokesman Arend Zwartjes said.

Few days back, as reported by the Reuters, Vietnam’s customs department had also found scores of cases of exporters illegally relabelling Chinese goods as “Made in Vietnam” in order to avoid tariffs imposed as a result of the ongoing US-China trade war.

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