Impact of and Enforcement Measures Following Singapore's Listing in US Shadow Transshipment Network Report

Ms Jessica Tan Soon Neo asked the Deputy Prime Minister and Minister for Trade and Industry (Trade) (a) what impact will Singapore's inclusion in the US Shadow Transshipment Network Report have on trade flows, business compliance costs and our hub reputation; and (b) what measures are being taken to strengthen enforcement, support affected firms and safeguard Singapore's long term economic interests in this respect.

On 13 August 2026 (EST), the White House's Office of Trade and Manufacturing Policy issued a report titled, “The Great Transshipment Scam”, in which more than 40 economies were flagged for “elevated illegal transshipment risk”. In the report, Singapore was placed in the Tier 3 list of countries (Small, Opportunistic Chinese Targets), along with economies, such as Switzerland and the United Arab Emirates.

The report did not specify any action that the United States (US) may take. We will continue to engage the US to exchange information on emerging trade trends and best customs practices.

Singapore takes trade compliance seriously. Companies transhipping goods through Singapore must fully comply with Singapore's laws and regulations. In June 2025, the Singapore Customs issued a Circular to all traders and declaring agents reiterating the importance of accurate "Country/Region of Origin" declarations in Singapore's permit applications.

Singapore will not hesitate to take firm and decisive action against any violation of our laws. For instance, on 14 August 2026, the Singapore Customs charged a Singapore-registered company and three individuals for their alleged involvement in a scheme to falsely declare the origin of bedding products and other goods exported from Singapore to the US, in an apparent attempt to circumvent import duties imposed by the US.

Singapore places great importance on our reputation as a trusted and reliable business hub, and we will act decisively to preserve it. We remain committed to working with our international partners to address tariff circumvention concerns.