Hong Kong industry leaders have cautioned local exporters against evading US tariffs on small parcels via illegal third-country transshipments or parallel imports of goods into America, saying companies risked being prosecuted and faced criminal liabilities while tarnishing the city’s reputation.
Their warnings came after US President Donald Trump’s latest move to further raise tariffs on small parcels sent to America from mainland China and Hong Kong to 120 per cent, up from 90 per cent on Thursday.
Trump also increased the tariff on Chinese imports to 145 per cent on April 9, up from an earlier-stated 125 per cent.
Analysts anticipated that alternative business models would emerge to get around the US tariffs 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.
