Singapore takes trade compliance seriously, will take firm action against businesses that break laws: MTI
The United States flagged Singapore among more than 40 countries at risk of being used to circumvent tariffs on Chinese goods.
A general view of containers at the Pasir Panjang port terminal in Singapore on Jun 1, 2026. (AFP/Roslan Rahman)
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SINGAPORE: Singapore takes trade compliance seriously and will take firm action against businesses that break its laws, the Ministry of Trade and Industry (MTI) said on Saturday (Aug 15).
The statement came after the United States flagged Singapore among more than 40 economies at risk of being used to circumvent tariffs on Chinese goods.
"Singapore’s economic competitiveness is underpinned by strong rule of law, transparent regulations, zero tolerance for fraud, corruption, and criminal activities," said an MTI spokesperson in response to CNA's queries.
"As a trusted international business hub, we are committed to upholding the international reputation that we have built up over time and safeguarding the integrity of our business environment."
On Thursday, the Trump administration identified dozens of US trading partners as potential risks in aiding Chinese tariff evasion.
The White House report focuses on its longstanding concerns over "illegal transshipment", where goods are routed through third countries subject to lower US tariffs to circumvent higher levies imposed by President Donald Trump.
Besides Singapore, other economies named include the European Union, Mexico, Canada, India, Japan, South Korea and Vietnam.
"FIRM AND DECISIVE ACTION"
MTI said that Singapore does not condone businesses using their association with the country to fraudulently and dishonestly circumvent or violate the laws and regulations of other countries.
"Singapore will also not hesitate to take firm and decisive action against any violation of our laws."
The ministry added that companies transhipping goods through Singapore must fully comply with its laws and regulations.
It said that in June 2025, Singapore Customs issued a circular to traders and declaring agents reiterating the importance of accurate "country/region of origin" declarations in Singapore's permit applications.
On Friday, the agency also charged a Singapore-registered company and three individuals for their alleged involvement in a scheme to falsely declare the origin of bedding products and other goods exported from Singapore to the US, in an apparent attempt to circumvent import duties imposed by the US.
Transshipment risk is "embedded within broad legitimate trade flows" for some economies, according to the White House report.
Others were found to be more integrated with China-linked supply chains, while a third group had advantages such as preferential US access that make them "attractive opportunistic targets" for rerouting.
Singapore was placed under the third group of trading partners.
