Compliance Alert! Multiple countries have recently intensified fraud detection in Certificates of Origin (CO) and launched crackdowns on non-compliant transshipment trade activities.

Official Translation:

Singapore Customs and the Ministry of Trade and Industry (MTI) recently issued a joint advisory highlighting that multiple countries have imposed unilateral export controls targeting advanced semiconductors, semiconductor manufacturing equipment, and artificial intelligence (AI)-related technologies in recent years.

Singapore’s export control framework, governed by the Strategic Goods (Control) Act and the Regulation of Imports and Exports Act, maintains alignment with major multilateral export control regimes and UN Security Council sanctions resolutions.

The advisory further emphasized: “The Singapore Government does not condone deliberate exploitation of Singaporean affiliations to circumvent or violate other nations’ export controls. This principle applies uniformly to all trade partners.”

The notice also pointed out that engaging in illegal activities may lead to consequences in terms of law, operations, and reputation. Singapore Customs and the Ministry of Trade and Industry will take appropriate actions against companies or individuals engaging in fraudulent or dishonest activities to evade export controls in Singapore, in line with Singapore's laws.

Singapore Customs and the Ministry of Trade and Industry indicated that in order to reduce the risk of unintentional violations, it is recommended that enterprises: ✦Implement a robust internal compliance program, which includes Know Your Customer (KYC) practices and end-user screening to ensure business dealings with legitimate customers or end users who comply with relevant export control regulations, as well as an order screening process that takes into account potential red flags (such as abnormal shipping routes);✦Engage appropriate legal experts when necessary in international commercial activities involving controlled technologies.It was noted by the media that the unparalleled level of caution signifies Singapore's sensitivity to recent export control violations.

Thailand 

Recently, Arada, Director-General of Thailand's Department of Foreign Trade under the Ministry of Commerce, stated that the US has imposed a 36% retaliatory tariff on Thai goods. In response, Thailand's Department of Foreign Trade will closely monitor and guard against actions by other nations to circumvent US tariffs. This move aims to bolster the confidence of the US Customs in the origin of Thai products and ensure that exported goods are genuinely manufactured in Thailand.

The Department of Foreign Trade has designated 49 key monitored export products to the US, including solar panels, truck steel wheels, artificial stone slabs, and steel pipes. Exporters must apply for product origin verification before applying for a certificate of origin to prevent other countries from using Thailand to evade US tariffs. The department also plans to expand the list of monitored products and enhance scrutiny of trade data for other high-risk products that may impersonate Thai goods to circumvent anti - dumping or Section 301 and 232 tariffs. It will continue assessing and broadening the scope of key monitored products and collaborating with the US Customs to combat fake Thai origin claims.

Vietnam
On April 16, China's Ministry of Commerce reported a news from the Economic and Commercial Office of the Chinese Embassy in Vietnam. According to Vietnam News Agency's report on April 13, Vietnam's Ministry of Industry and Trade issued Document No. 2515/BCT-XNK to strengthen the management of raw material suppliers and strictly control raw material quality in a bid to prevent fake origin claims.

The current international trade situation is changing rapidly and is hard to predict. This is especially true given the US's tariff policies towards Vietnam and other nations, which adds to the complexity. To respond proactively to this new situation and safeguard the interests of Vietnam and its partners, while still allowing Vietnamese businesses to produce and export without disruption, the Ministry of Industry and Trade of Vietnam has made several recommendations.

Firstly, export trade associations should work closely with national management agencies. They need to promptly supply information on policies, mechanisms, and international market dynamics. This way, they can advise and guide member businesses to actively formulate production and export plans.

Secondly, these associations should take on the role of coordinator. They need to support member businesses in expanding and diversifying the sources of raw materials needed for production and export, aiming to lessen reliance on single import markets.

Thirdly, member businesses are advised to ensure the traceability of raw materials used in production. This is to meet the requirements of importing countries regarding food safety and traceability, and to prevent fake origin claims.

In addition to these recommendations, the Ministry has asked export businesses to take the initiative in devising plans to respond to the current international trade situation. They are encouraged to seek out clients and partners from import markets that still have room for development and potential, in order to expand their business and drive growth. At the same time, businesses must carefully consider the sources of raw materials for their export products, ensuring they meet the requirements of importers.

Meanwhile, in South Korea, according to reports, the Korea Customs Service stated on Monday that an increasing number of businesses have been attempting to pass off foreign products as Korean exports in order to evade comprehensive US tariffs. In response, the Korea Customs Service has set up a special task force to combat illegal exports and is planning to establish more concrete countermeasures to protect domestic businesses.

According to the Korea Customs Service, following a special investigation last month, it was found that in the first quarter of this year, the total amount of origin violations reached KRW 29.5 billion (around USD 20.7 million), of which 97% were goods bound for the US. In contrast, the total violations for the whole year of 2024 amounted to KRW 34.8 billion, with goods destined for the US accounting for 62% of the total. The Monday report included origin violations involving battery cathode materials worth KRW 3.3 billion imported from China and shipped to the US with Korea wrongly marked as the country of origin. It was found that in March this year, surveillance cameras worth KRW 1.93 billion were imported from China in batches and reassembled in Korea.

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