In 2022, the difference between China's official exports to the U.S. and the data recorded by U.S. customs amounted to $112 billion. This indicates that about 25% of Chinese goods supplied to the U.S. may have bypassed full customs control.
Numerous entrepreneurs and lawyers have shared that they often receive offers for "turnkey" delivery of goods from China with all fees paid at a rate of $0.7 per kilogram. Ryan Peterson, CEO of logistics company Flexport, emphasizes that this is impossible, as duties depend on the value of the goods, not their weight. Some offers promise to reduce duties by 40-50%.
Among the common evasion schemes is the Delivered Duty Paid (DDP) system, where the seller assumes all costs for delivery and customs clearance. In this case, unscrupulous companies understate the value of goods or use incorrect codes to obtain preferential rates, while front companies act as the importer. When such violations are discovered, these companies often turn out to be fictitious.
Market participants note that such practices create unfair competition. Michael Kersey, president of American Lawn Mower Company, reported that his company pays up to 45% in duties on Chinese goods, while competitors can avoid these costs and offer products at 10-20% lower prices. Similar difficulties are faced by Ram Radhakrishnan, head of freight forwarder Silq, who is losing clients due to suspiciously low prices.
According to Bloomberg, U.S. authorities are aware of this problem, but their capabilities are limited. Former Department of Homeland Security employee Carrie Owens noted that the department's resources are largely reallocated to border security, making it difficult to identify front companies. Additionally, pursuing fraudsters outside the U.S. is an extremely challenging task.
In August 2025, an interagency task force was established to combat trade fraud, and a whistleblower program was launched. However, customs officials warn that investigations into such cases can take years.
It was previously reported that the customs duties imposed by the Trump administration significantly increased costs for American companies. According to a study, the expenses of the average business rose significantly last year.
