US: China tariff-dodgers shipping from Cambodia

US: China tariff-dodgers shipping from Cambodia

Sihanoukville SEZ says internal investigation found no evidence of illegal transshipment

Sihanoukville Port has become more active in recent years as Chinese investment pours into the area. (Reuters Photo)
Sihanoukville Port has become more active in recent years as Chinese investment pours into the area. (Reuters Photo)

PHNOM PENH: The United States on Friday urged Cambodia to investigate a Chinese-owned special economic zone in Sihanoukville after uncovering efforts by businesses operating there to evade duties on products destined for export to the United States.

The government has denied allegations that companies in the Sihanoukville Special Economic Zone (SSEZ) were being allowed companies to transship goods through the zone, and SSEZ officials said an internal investigation had found no such activity.

“The United States will aggressively pursue allegations of duty evasion and utilise all available legal tools, to deter violators of US customs and trade laws,” embassy spokeswoman Emily Zeeberg said in a statement emailed to Reuters.

Such tools could include civil and criminal penalties or other enforcement actions, she added.

“We call on Cambodian government authorities to look closely at governance and compliance issues at the Sihanoukville SEZ,” she added.

A spokesman for Cambodia’s commerce ministry, Seng Thai, declined to comment and referred to a June 23 government statement that denied the allegations as “baseless”, and added that the operating procedure in such zones was clear.

Since 2017, there have been two cases of companies operating from the SSEZ having been found importing transshipped goods, such as the chemical glycine and steel pipe-fittings, and charged anti-dumping duties, the embassy added in its statement.

“In both cases, US officials conducted on-site inspections in the Sihanoukville SEZ and determined that, although being represented as Cambodian, the goods in question were of Chinese origin on importation into the United States,” it added.

Vietnamese customs authorities this month said they had also found scores of cases of exporters illegally relabelling Chinese goods “Made in Vietnam” to avoid tariffs imposed in the US-China trade war. 

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