Hong Kong urges businesses to rethink tariff avoidance tactics
Hong Kong exporters warn against abandoning cargo at sea to avoid tariffs, calling this action "irrational", reports the "South China Morning Post". Experts emphasise that such practices can damage the reputation of companies and the country.
Hong Kong exporters and trade groups urge businesses not to abandon cargo during transit in an attempt to avoid high tariffs imposed by the United States. According to the "South China Morning Post", such actions can lead to significant financial losses and damage to the reputation of companies and the country.
Trump's tariffs. Cargo abandoned from ship before reaching the USA
The newspaper cites an incident involving a Chinese exporter abandoning goods at sea en route to the USA and handing over containers to shipping companies. However, it does not specify which company is involved.
The Hong Kong Shippers' Council chairman, Willy Lin Sun-mo, emphasises: "This is highly irrational and irresponsible as dumping the goods at sea will mean the exporter will lose everything, including effort and money. Apart from losing the cargo, it will fail to claim insurance for failing to fulfil contractual obligations and risk being sued by the importer or potential customers for damages," noted Lin.
Dennis Ng Kwok-on of the Trade Chamber at the Chinese Manufacturers’ Association of Hong Kong explained to the South China Morning Post that such measures are detrimental to everyone involved. He emphasized that this is a clear case of causing damage to others without any advantage in return. He pointed out that exporters ought to be mindful of protecting their reputation.
The Hong Kong Export Credit Insurance Corporation has introduced three protection measures for small and medium enterprises against shipping-related risks, including a 50% discount on insurance premiums and an extension of the protection period. These aim to support companies in the face of the escalating US-China trade war.
