**Global trade:** An in-depth look at how businesses use one-stop B2B services and double invoicing to legally reduce tariff costs amid US-China trade tensions, revealing the sophisticated tactics evolving within international logistics and customs compliance.
As the issue of tariffs has come to dominate global trade discussions, especially with China standing out as the primary focus of US tariff policies, innovative strategies to navigate these financial barriers have rapidly emerged. The Strategy Toolkit has detailed one such approach that reflects the intricate measures businesses are employing to mitigate the impact of tariffs.
An increasingly prevalent tactic involves one-stop B2B services that facilitate what is termed “double clearance and tax inclusive” processes. These companies handle customs compliance and related logistics on both the exporting and importing sides of trade, catering primarily to the complexities arising from tariffs imposed during contentious trade periods. The rise of these entities has been particularly noticeable since the initiation of trade conflicts under the Trump administration.
One notable method used by these firms includes legal and creative undervaluation of goods. This involves practices such as double invoicing, where the declared value of a product on one invoice is deliberately lowered, while the remaining value is allocated to a separate invoice for services exempt from tariffs—such as marketing fees. This approach aims to reduce tariff liabilities while maintaining regulatory compliance.
These services are marketed at competitive rates through Chinese social media platforms, indicating a vibrant underground economy adapting to circumvent trade restrictions. Legal experts have acknowledged the sophistication of these practices, highlighting how companies sometimes utilise affiliated importers of record to facilitate these transactions.
The Strategy Toolkit’s coverage, drawing from analysis published by Nikkei Asia, underscores the complexity and resourcefulness within China’s logistics sector in response to US tariffs. It reveals a landscape where tariff enforcement is challenged by innovative supply chain strategies that exploit nuances in trade regulations and customs procedures.
Source: Noah Wire Services
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