HONG KONG/NEW YORK — U.S. President Donald Trump this week escalated his trade war with China. Standing in his way are tens of thousands of Chinese logistics companies that experts believe help manufacturers minimize the impact of U.S. tariffs through strategies that include undervaluing shipments or disguising their origins.
These entities offer what are known as “double clearance and tax inclusive” services, and have exploded in numbers since Trump launched a trade war on China in his first term. For bargain rates advertised on Chinese social media, they oversee customs compliance on both sides of the trade, sometimes working through related companies that act as importers of record. Lawyers say that one of the tricks is double invoicing, which can include understating the cost of a product on one invoice, while putting the rest on another for a service not subject to tariffs, like “marketing.”
