Today (October 7) reviewed three trade developments that have directly affected export factories in the past two days: First, the U.S. Customs and Border Protection (CBP) announced on October 6 that XCMG North America (XCMG North America) evaded the final determination of the double opposition order and officially blocked the path of transshipment and understating the value of goods through Mexico; Second, the Ministry of Commerce responded to France and Germany's request for the EU to strengthen trade defense tools on October 6; Third, the United Kingdom considered raising import tariffs on China's electric vehicles, and the Ministry of Foreign Affairs responded on October 6. Three things point to the same theme: the game between entrepot and rules is intensifying, and compliance is becoming a threshold for real money.
1. CBP finally determined that XCMG North America escaped double opposition: What happened
On October 6, Wiley Law Firm commissioned by the American Mobile Aerial Work Equipment Manufacturers Alliance (CAMMAE) issued a notice: CBP has made a final confirmation of evading the double objection order on the import of mobile aerial work equipment from XCMG North America. The products involved are mobile aerial work equipment such as boom lifts, scissor lifts, and telescopic boom forklifts. Such products made in China have been subject to double countervailing duties since the anti-dumping order came into effect in December 2021 and the countervailing order in April 2022. The comprehensive tax rate of some China companies can be as high as 180%.
There are two core charges in the case: one is to falsely report equipment produced in China as manufactured in Mexican factories and import it via Mexico to circumvent double counter-tax duties against China; the other is to understate the value of imports and lower the tax base. CBP's investigation concluded that the evasion was established, and pointed out in the determination that the information provided by the company to the customs was false and some production records were highly unreliable. See the notification linkPR Newswire released on October 6.
2. What does 69.31% mean and where does it go back?
According to the notification, XCMG North America's equipment imports from Mexico will be subject to a tax rate of 69.31%, and customs declarations starting from July 2025 will be suspended during the investigation period-that is, taxes during this period must be replenished at the recognized tax rate, and then superimposed on possible penalties. The three signals to colleagues are very clear: First, re-export from third countries is no longer safe, and CBP has EAPA investigation tools, which can restore the true origin of production line records, logistics documents, and input-output ratios; second, understatement of the value of goods will be recognized separately and combined with re-export tax evasion; third, after being found to be "false statements," all subsequent declarations by the importer will be strictly reviewed, which is equivalent to being labeled as a stain for a long time.
3. The Ministry of Commerce responds to France-Germany "trade defense tools"
According to a report by China News Network on October 6, on October 5, France and Germany submitted informal documents to the European Commission, requiring the EU to strengthen the use of trade defense measures and launch a number of new protectionist tools. The spokesperson of the Ministry of Commerce responded to a reporter's question on October 6 and said: Protectionism cannot enhance competitiveness, and "decoupling and breaking links" will only harm others and not benefit others. We hope that France and Germany will adhere to open cooperation and free trade, abide by WTO rules, and not politicize economic and trade issues and pan-security issues. Spokesperson on the official website of the Ministry of CommerceSpokesperson Talk ColumnCan be checked. Combined with previous data: The EU has initiated 28 trade remedy investigations against China since 2025, about half of which target chemical products. Factories exporting to Europe will keep an eye on the legislative progress of new tools for the European Commission in the fourth quarter. The three tracks of chemicals, steel and aluminum, and new energy components are particularly sensitive.
4. The UK plans to increase tariffs on China's electric vehicles
On October 6, the spokesperson of the Ministry of Foreign Affairs responded to the British side's consideration of raising import tariffs on China's electric vehicles: China-UK economic and trade cooperation is based on complementary advantages and mutual benefit. China's electric vehicle industry provides global consumers with cost-effective products, which are high-quality production capacity that the market urgently needs. The matter is still in the planning stage of the British side and the policy details have not yet been implemented. There is no need to adjust the quotation for factories that make auto parts and charging equipment in the UK for the time being, but an interface for tariff change clauses should be provided to British customers 'quotations, and the current tax rate should not be written into the annual contract as a long-term assumption.
5. Three compliance reminders for factories
- Don't cooperate with buyers to make a "cleaning place" plan:No matter whether the furniture is bought in Mexico, Vietnam or Southeast Asia, as long as the product has not undergone substantial changes locally, falsely stating the origin is an act of evasion, and the U.S. EAPA can retroactively recover it. When customers propose such a plan, they should decline it in writing and keep the record. Don't let the factory's production line records endorse other people's tax evasion.
- The declaration elements are consistent with the physical objects:The value of goods, product name and origin must all stand the inspection. The tax saved by underreporting the value of goods will be much higher than the amount saved, which will also drag down the entire customer's credit history.
- Production records shall be kept according to auditable standards:Assembly bases in Mexico, Canada, and Southeast Asia must have true value-added records of processing-lists of materials, working hours, inputs and outputs. During CBP verification, these are direct evidence to determine substantial changes. If the records are not true, they are malicious.
6. Common questions
1. We only produce orders, and the goods are re-exported by the customer. Is the factory responsible?
The risk mainly lies with the importer, but the factory is not an unrelated party: CBP will retrieve the factory's production records during verification. If the records are false or obviously contradict the declaration, the factory will be included in the attention list, affecting the subsequent customs clearance of all U.S. customers. Keep one line: production and declaration are truthful, how customers declare customs is his business, and factories do not participate, cooperate, and provide false documents.
2. The customer asked if he could "transit" tax reductions through Vietnam or Mexico. How would he respond appropriately?
Put the words in the rules: There is only one legal path-substantial processing changes are completed in a third place, and real changes in the tax number or origin standards require real investment and records. It can help customers calculate two accounts: the cost account for building a line in a compliant third place, and the account for converting tariffs into quotations at the current tax rate. Most customers will find that compliant quotation plus stable supply is cheaper than betting on re-export.
3. After the implementation of the EU's "new trade tools", what should we prepare in advance for European orders?
Three things: rewrite the tariff acceptance clause for European customers according to "policy changes can be adjusted"; pay attention to the progress of the European Commission's legislation, and chemical and steel and aluminum downstream companies check trade relief announcements once a month; leave the market mix outside Europe. The second growth line, and don't let the single market account for such a high proportion that the muscles and bones will be damaged when policies change.
