Overview
- Official data show a record $112 billion difference between China’s reported exports to the U.S. and U.S. import filings last year, which analysts say points to widespread underpayment of duties.
- U.S. businesses report WhatsApp and email pitches for ultra‑cheap China‑to‑U.S. shipping that promise to bypass tariffs, including offers as low as $0.70 per kilogram with taxes included.
- Flexport’s Ryan Petersen calls per‑kilogram, tax‑included quotes a clear red flag because tariffs are assessed on product value rather than weight.
- Common tactics cited by industry and former officials include undervaluation, misclassification, Delivered Duty Paid arrangements routed through nonresident or shell importers, and importer identities that vanish on investigation.
- The administration has a trade‑fraud task force, a whistleblower program, and AI screening in place, yet enforcement is strained and proposed fixes such as higher asset requirements for foreign importers and changes to valuation rules have advanced slowly.