US Report ‘The Great Transshipment Scam’ and India
Why in the news
A US White House trade office report listed India among 40-plus economies open to Chinese-linked transshipment, in the top tier of a ‘shadow’ network.
Key facts
- Illegal transshipment means routing goods via a third country with minor processing, relabelling, repackaging, re-invoicing or altered paperwork.
- India’s Tier 1 slot is not for lax enforcement or close China ties; its US trade is so big that suspect flows can hide in it, which is harder to rebut.
The three tiers
| Tier | Members | Why placed here |
|---|---|---|
| 1 | India, Mexico, Canada, European Union | Risk embedded in very large legitimate trade |
| 2 | Vietnam, Malaysia, Thailand | Closely integrated with China |
| 3 | Cambodia, Panama, UAE | Weak customs enforcement |
Exam angle
- Indian corridor named: Pune-Gujarat-Chennai, for pumps and compressors.
- Other corridors: Ho Chi Minh City, Penang-Kulim, Bekasi-Batam, Ayutthaya-Samut Prakan.