Singapore will investigate any tariff evasion, but must be realistic given volume of trade, PM says

SINGAPORE: Singapore will investigate any efforts by companies to route goods through the city-state to circumvent tariffs and import goods made with forced labour, Singapore Prime Minister Lawrence Wong said on Sunday.

The White House said last week that the U.S. is losing annual tariff revenue of about $19 billion to $26 billion on goods, largely from China, that are transshipped through third countries to avoid U.S. import duties.

“We will not allow Singapore to be used as a conduit for illegal trade practices,” Wong said.

Wong pointed to the U.S. concerns about Chinese goods being routed through Southeast Asia and the 12.5% U.S. tariff on Singapore exports which the U.S. said it had levied on Singapore because it does not have a law prohibiting the importation of goods produced with forced labour, and said Singapore takes both issues seriously.

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Singapore will investigate any evidence of wrongdoing, said Wong, but it has to be realistic given it is a major hub for re-exports and transshipment.

“Goods pass through Singapore from all over the world. We cannot possibly trace and verify the entire supply chain behind every product that passes through our shores,” said Wong.

The prime minister said Singapore will continue engaging the U.S. and explaining its position.

Wong said trade is no longer as free as it once was, and is increasingly shaped by security considerations.

Wong said that while competition is intensifying, “the world is not shaped by America and China alone.”

“Europe remains a major force. India is rising rapidly. Many middle powers are asserting their interest more actively,” he said.

Wong was speaking at the annual National Day Rally, which is his most important political speech each year and outlines key policy announcements.