‘Bangladesh, 40 nations helping China evade tariffs’

President Donald Trump’s administration has accused dozens of countries, including Bangladesh, of helping China evade US tariffs, depriving the US Treasury of tens of billions of dollars in annual revenue.

In a report published on Thursday, the White House said more than 40 countries had participated in a shadow logistics network facilitating the flow of Chinese goods into the US under false labelling.

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However, local exporters denied the allegation.

The European Union, Mexico, Canada, India, Japan and South Korea are among China’s biggest enablers in the “Great Transshipment Scam”, the Office of Trade and Manufacturing Policy said.

US officials accused Chinese exporters of hiding the true origin of their products by shipping them through third countries before sending them to American buyers. The practice allows exporters to exploit lower tax rates applied to third countries, effectively costing the US Treasury tens of billions of dollars a year, the report said.

The report places Bangladesh in Tier 3, comprising smaller economies whose low-cost labour, free zones, bonded warehouses and limited customs enforcement make them attractive for China-linked rerouting.

“We send 96 percent of our goods to the USA under the freight on board (FOB) method. So, it is not possible for local exporters to use third-country routes to evade US taxes,” said Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Under the FOB method, local exporters send goods from factories to the port of departure, such as Chattogram port, while importers bear the risks and pay the duties, he said.

The BGMEA president said the issue was insignificant for Bangladesh because local exporters do not send goods directly to the US.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), agreed.

“It is true that Bangladeshi exporters use Chinese fabrics and accessories, but they import them through legal channels,” Hatem said.

He said the Bangladesh government closely monitors the process and had taken strict measures after similar allegations arose many years ago.