Vietnam Cracks Down on Illegal Transhipment to Avoid U.S. Tariffs

Vietnam's trade ministry has issued a directive to combat illegal transhipment to the U.S. and other partners to avoid high tariffs. The directive highlights potential trade fraud amid U.S. tensions, warning of complications if not prevented. Vietnam is a major importer from China, a suspected fraud source.

Vietnam's trade ministry has mandated strict measures to address the illegal transhipment of goods, aiming to avert hefty U.S. tariffs, as detailed in a document seen by Reuters.

In a directive dated April 15, now in effect, the ministry warned that trade fraud is poised to rise due to escalating tensions from U.S. tariffs. This fraud could complicate efforts to avoid sanctions on imports.

The directive stops short of naming specific nations connected to transhipment fraud. However, with Vietnam importing about 40% of its goods from China, the U.S. has openly charged Beijing with exploiting Vietnam as a transhipment hub to circumvent duties.

(With inputs from agencies.)