Immediate, temporary action to stop duty evasion via free trade deals
Authorities have put in place a temporary measure, effective immediately and valid until April 2026, aimed at curbing “bad actors” who exploit free trade agreements to avoid paying import duties. The step is designed to protect government revenue and ensure fair competition for compliant businesses.
What the measure means
The policy is a targeted enforcement response that focuses on preventing misuse of preferential tariff rules. While specific tools can vary, such moves typically involve:
- Stricter verification of country-of-origin claims and supporting documents.
- More audits and spot checks of shipments and supplier records.
- Temporary limits on claiming preferential rates where abuse is suspected.
- Increased scrutiny of intermediaries, brokers and routing that may mask origin.
Who will feel the impact
- Importers and exporters relying on preferential tariff treatment.
- Manufacturers and suppliers who certify origin for products.
- Customs brokers, freight forwarders and logistics providers.
- Smaller traders with less robust documentation systems.
Short-term effects on trade and business
Expect more paperwork, longer customs clearance times and potential additional duties where preferential claims are questioned. Compliant companies may face temporary delays but will benefit from a level playing field if the measures reduce widespread abuse.
Practical steps for businesses
- Review and strengthen origin documentation—ensure invoices, certificates and supplier declarations are complete and traceable.
- Audit supply chains to confirm where goods are produced and how they are routed.
- Update contracts with suppliers to include clear origin and compliance clauses.
- Work with customs brokers to prepare for additional checks and to respond quickly to queries.
- Keep detailed records that can support preferential tariff claims if challenged.
Timeline and outlook
The measure runs until April 2026. Businesses should monitor official guidance and be ready for possible extensions or further clarifications. Ultimately, clearer rules and stronger enforcement aim to restore trust in free trade agreements and protect honest traders.
Acting proactively on compliance will minimise disruption and help companies navigate the temporary changes with confidence.