US flags Singapore, 40 economies over China-linked transhipment

City-state classified as Tier 3, covering smaller markets with rerouting appeal.

Singapore has been identified by the US government as one of over 40 jurisdictions associated with elevated risks of China-linked illegal transhipment, according to an Office of Trade and Manufacturing Policy report.

The report classified Singapore as Tier 3, covering smaller economies with lower transhipment volumes but features that could make them attractive for rerouting China-linked goods to the US.

Other Tier 3 countries included Laos, Myanmar, Philippines, and Sri Lanka.

The findings come as the Office of the United States Trade Representative said Singapore could face a 12.5% tariff on exports after faulting 60 economies over their enforcement of forced-labour import bans.

The government has since rejected the findings, saying there is no evidence linking the city-state to supply chains involving forced-labour goods exported to the US.

Singapore was also grouped under the "developed logistics platforms" cluster, alongside Belgium, Canada, the Netherlands, Switzerland, and Turkey.

The category covers economies with advanced customs systems, ports, trading houses, bonded warehouses, and global re-export networks that can be used to move goods between markets.

Meanwhile, the Republic was not listed as a ‘microhub’ for light assembly and relabelling, unlike other Southeast Asian countries. The report instead identified the city-state as a logistics and re-export platform.

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