Singapore takes trade compliance seriously, will take firm action against businesses that break laws: MTI

Singapore is taking a firm stance on trade compliance, with the Ministry of Trade and Industry (MTI) stating it will take decisive action against businesses violating its laws. This declaration comes after the United States identified Singapore among over 40 economies potentially used to evade tariffs on Chinese goods.

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Singapore’s economic competitiveness is underpinned by strong rule of law, transparent regulations, zero tolerance for fraud, corruption, and criminal activities.

An MTI spokesperson stressed that Singapore's economic strength is built upon a robust rule of law, transparent regulations, and a complete intolerance for fraud, corruption, and criminal activities. "As a trusted international business hub, we are committed to upholding the international reputation that we have built up over time and safeguarding the integrity of our business environment," the spokesperson said in response to queries from CNA.

The US White House report highlighted concerns about "illegal transshipment," where goods are routed through countries with lower tariffs to avoid higher levies. Singapore was categorized among economies with advantages like preferential US access, making them attractive targets for such rerouting schemes. Other economies named in the report include the EU, Mexico, Canada, India, Japan, South Korea, and Vietnam.

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As a trusted international business hub, we are committed to upholding the international reputation that we have built up over time and safeguarding the integrity of our business environment.

MTI reiterated that Singapore does not condone the fraudulent use of its name to circumvent international laws. The ministry assured that companies transshipping goods through Singapore must adhere strictly to its regulations. This commitment was further underscored when Singapore Customs issued a circular in June 2025 reminding traders of the importance of accurate origin declarations. Additionally, authorities recently charged a Singapore-registered company and three individuals for allegedly misrepresenting the origin of goods exported to the US, aiming to evade import duties.

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Singapore will also not hesitate to take firm and decisive action against any violation of our laws.