Hong Kong exporters warned against evading US tariffs on small parcels
Industry leaders say firms that send goods via illegal transshipment or parallel imports risk being prosecuted and tarnishing city’s image
Hong Kong industry leaders have cautioned local exporters against evading a US tariff on small parcels via illegal third-country transshipments or parallel imports, saying companies risk being prosecuted and tarnishing the city’s reputation.
They issued the warning after US President Donald Trump’s move last week to further raise the duty on small parcels sent to the country from mainland China and Hong Kong to 120 per cent, up from 90 per cent.
Trump also said he had increased the tariff on Chinese imports to 145 per cent, up from an earlier-stated 125 per cent.
Analysts anticipated that alternative business models would emerge to get around the tariff on small items, such as via illegal transshipment of goods through Mexico or Canada, or by being sold as parallel imports.
But Willy Lin Sun-mo, chairman of the Hong Kong Shippers’ Council, warned the city’s exporters against such moves, saying they could lead to serious legal consequences and damage their companies’ reputations.
“For example, for a Hong Kong firm to make a shipment of goods, it needs to state its final destination. If the goods are exported to Mexico first, then picked up by another company there for re-export to the US, the firms need to declare the origin of the goods,” he said.