Customs Fraud: Vietnam Under Pressure Amid U.S. Surcharges

As trade tensions between the U.S. and several Asian countries intensify, Vietnam finds itself at the center of a major customs challenge: falsifying the goods’ country of origin to circumvent the surcharges imposed by Washington.

For several months, the United States has accused certain companies of exploiting trade agreements with Vietnam to channel Chinese products through that country by fraudulently assigning them a Vietnamese origin. This practice, known as fraudulent transshipment, enables them to evade the high tariffs imposed on China as part of the trade war.

In response to these allegations, Hanoi has launched a comprehensive effort to strengthen customs controls. The Vietnamese government has instructed companies to furnish clear evidence of the origin of exported goods, particularly through certificates of origin and component traceability. Port inspections have been ramped up, and customs authorities are conducting an increasing number of verification operations on shipments destined for the United States.

The prospect of steeper customs duties, potentially reaching 46% on items such as wooden furniture, electronic components, and textiles has prompted Vietnam to move swiftly to reassure its key trading partner. In recent weeks, Hanoi has ramped up diplomatic engagement with U.S. authorities, emphasizing its commitment to greater transparency and tighter trade-compliance measures.

At the same time, Vietnam’s export-driven industrial sector, heavily reliant on the U.S. market, warns of serious economic fallout if sanctions are toughened. To mitigate the risk, local companies are being urged to overhaul their supply chains and to curtail imports of any components that cannot be fully authenticated or traced.

An internal document, mentioned by ZoneBourse and reported in the specialized press, also reveals that Vietnam is working on implementing a stricter certification system to prevent systematic origin fraud. It reportedly outlines enhanced monitoring of sensitive products, stricter declaration requirements for exporters, and tougher penalties in the event of violations.

By taking these measures, Vietnam is seeking to preserve its strategic position in global trade while responding to the increasing compliance demands imposed by the United States. It remains to be seen whether these efforts will be enough to ease customs tensions and keep trade relations between the two countries on a stable path.