look news india
Once again a very serious and shocking matter has come to light regarding the trade relations between India and America. In a new report released by America, India has been directly accused of indirectly helping China to avoid American tariffs (import duties). The report, prepared by top White House trade advisor Peter Navarro, has been named ‘The Great Transshipment Scam’, in which it has been claimed that through illegal networks, huge quantities of Chinese goods are being consumed in the US market through third countries.
What is ‘Shadow Trans-Shipment Network’ and how does the game work?
According to this White House report, more than 40 countries of the world including India are working as a ‘shadow trans-shipment network’ for China. The report claims that through this illegal network, Chinese goods worth $40 billion to $303 billion are reaching America through other countries every year. Peter Navarro, advisor to US President Donald Trump, clearly said that for the last several years, this big scam has been giving Communist China an opportunity to re-route or launder its exports, due to which Chinese companies can easily escape the heavy tariffs imposed by America.
What allegations have been made in the report regarding India?
This report specifically alleges that China tries to pass off its goods in third countries as local products by doing minor processing, re-packaging, changing labels or changing the route of the product. The report also makes special mention of India’s major manufacturing and production belts like Pune, Gujarat and Chennai. America alleges that in these areas, pumps, compressors and other components from China are re-labeled as Indian products and transported to the American market, so that the heavy import duty imposed on Chinese goods can be avoided. Apart from India, names of big countries like Mexico, Canada, European Union, Japan and South Korea are also included in this list.
Artificial Intelligence (AI) will now be used to stop tariff evasion
America is now preparing to adopt a very strict stance to curb such tariff evasion and movement of illegal goods. According to the report, the US is going to use an advanced AI based ‘Detective Border’ system to accurately identify such suspicious shipments. This artificial intelligence system will closely analyze all the data like big data of shipments, routes of movement of goods, product categories, ownership rights of companies and their production capacity. Its main objective is to identify suspicious products and, if necessary, levy heavy duties, fines or completely ban their entry into the US market.