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Warning! Changing the place of origin is invalid, and the U.S. Customs will refuse the entire vehicle, and the penalty for incorrect declaration is up to $50,000 | Marine Export Logistics

May 08,2025

ChitChats, a Canadian freight company, recently issued a warning emphasizing that incorrect declaration of goods will seriously affect the efficiency of customs clearance at the US border. If any goods are found to be incorrectly declared, the entire shipment will be refused entry, and violators may face a civil fine of up to US$50,000 from the US Customs and Border Protection Agency (CBP).

ChitChats revealed that on May 2 and 3, some goods originally from China were refused entry by US Customs due to incorrect declarations. CBP currently thoroughly inspects the country of origin of packages. If a declaration error or vague information is found, the entire shipment will be rejected.


If there is an incorrect declaration of goods in the truck, CBP will require the truck to be returned, and all compliant goods will also be taken away. In response to this situation, ChitChats is actively identifying and removing incorrect packages from the truck to ensure the transportation of compliant goods.


ChitChats emphasizes that evading tariffs or minimum fees is a serious violation. If the country of origin, value, or any details of the goods are changed to evade tariffs, penalties will be imposed. The violator may be fined 1,000 Canadian dollars, handle the incorrect declaration of goods, or even terminate the customer account. In addition, CBP will retain the information of the violator, and the violator may face a fine of up to US $50,000 and be prohibited from sending goods to the United States in the future.


In response to the potential issue of transit through Malaysia to the US market, the Ministry of Investment, Trade and Industry (MITI) of Malaysia announced that it will be the sole issuing authority for all non-preferential certificates of origin (NPCO) to the US from May 6. MITI will also strengthen the review of applicants and cooperate with the Royal Customs of Malaysia to investigate and take necessary actions to curb illegal activities.


According to Criptopolitan, some Chinese social media sites have emerged with advertisements that promise to reduce tariffs by transferring goods. These advertisements promise to ship goods to another Asian country, obtain a new certificate of origin, and clear customs in the United States with a lower tariff rate.


However, U.S. trade rules clearly state that goods must undergo a "substantial transformation" to legally claim a new country of origin. In addition, some shippers mix expensive items with cheaper goods and declare the average price to reduce tariffs, which is also a violation.

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