U.S. Identifies $80M in Illegal China Transshipments

WASHINGTON – Trade officials said today they had identified more than 1,000 cargo containers of illegally transshipped apparel from China valued at $80 million that entered the U.S. in 2006 and 2007.

The goods, shipped from China but declared to be from 11 other countries, will be charged to China’s quotas. Ten apparel categories will be affected, including cotton knit shirts and cotton trousers. The shipments contained more than four million dozens of apparel from over 900 individual importations, according to trade officials.

Transshipments are defined as goods made in one country, but labeled as having originated in another country, usually with the intention of sidestepping quotas and tariffs.

The announcement was made by U.S. Customs & Border Protection, the Committee for the Implementation of Textile Agreements, a group chaired by the Commerce Department, and the Office of the U.S. Trade Representative.