On August 13, the US White House released the report "The Great Transshipment Scam (Large-Scale Transshipment Scam)", placing Thailand on the Level 2 Risk Nation list, compounded by Thailand's continued ramp-up of tire market enforcement.

The gray path previously prevalent among some domestic tire traders and small-to-medium enterprises to evade US tariffs via "Thailand Transshipment Origin Laundering" has officially been declared invalid, sounding a compliance alarm for the entire tire export industry.

Thailand-origin gray transshipment has been officially classified

For a long time, suppressed by the high US dual anti-dumping tariffs on Chinese tires, domestic direct tire exports to the US have been costly. Some market players chose two completely different export routes: leading enterprises invested heavily in physical factories in Thailand, completing the full tire manufacturing process of rubber mixing, calendering, and vulcanization, obtaining a legal "Made in Thailand" status.

While another group of traders and small enterprises shipped finished domestic tires to Thailand, only changing packaging, tampering with sidewall labels, simple warehousing and assembly, and forging certificates of origin, exporting to the US under the name of Thai products to circumvent high tariffs, becoming a public gray operation in the industry.

US AI Full-Chain Strict Inspection

The American report this time directly classified such false transshipment as a systemic abuse of international trade rules. After Thailand was listed as a Level 2 Risk nation, US Customs upgraded inspection of tires exported from Thailand to the US from random sampling to normalized in-depth traceability verification.

The newly launched Detective Border AI inspection system is no longer limited to auditing paper customs declaration documents. It can cross-reference freight trajectories, corporate equity, and cargo characteristics, locking in high-risk containers before cargo arrives at the port.

More critically, the scope of accountability has expanded. Source factories, traders, overseas warehousing and processing parties, freight forwarders, and all subjects in the supply chain must bear compliance responsibilities, no longer just penalizing declaration enterprises.

Thailand Strict Crackdown on Tire Origin Fraud

Not only is there US pressure, local Thai regulations are also tightening simultaneously.

On August 20, a special investigation team from the Thai Ministry of Industry raided tire warehouses in Nonthaburi Province, seizing 408 defective tires. The case value was nearly 2.5 million Baht. Many tires lacked certification labels, and labels were manually tampered with. The involved brands have not yet been disclosed publicly.

Thai officials clarified that they will strictly check tire sources from both import and manufacturing ends. Violating entities face fines up to 500,000 Baht, 6 months imprisonment per Sina Finance.

At the institutional level, the Trade Department of the Thai Ministry of Commerce (DFT) completed the upgrade of rules of origin. All certificates of origin have been migrated to the e‑Service digital platform for online processing, divided into two major categories: General Certificate of Origin, Preferential Certificate of Origin.

To obtain genuine and valid "Made in Thailand" qualifications, tire products must meet one of five major conditions: Completely originated, substantive change in tariff classification, Regional Value Content (RVC) meets standards, meets tire category specific standards, adapts to differentiated requirements of the export destination country. Simply changing cardboard boxes or pasting labels cannot meet substantive processing standards, and legal origin status cannot be obtained. Enterprises using false certificates will face risks of cargo seizure and heavy fines.

Export Capacity Structure Accelerates Differentiation

The tightening of dual regulation by the US and Thailand will have a disruptive impact on the domestic tire export landscape. The industry formally welcomes compliance-driven reshuffling, with the differentiation between good and bad further exacerbating. This is mainly reflected in three dimensions:

First, the gray transshipment model has reached its end. Traders relying on warehousing and origin laundering arbitrage find their survival space sealed shut. For subsequent exports to the US, paper documents can no longer guarantee customs clearance. AI penetrative checks will trace the entire supply chain source of goods. Relying on luck makes it highly likely to face serious consequences such as cargo seizure, repayment of huge tariffs, and companies being placed on the US blacklist.

Second, distinguish "true factory construction" from "fake processing", further highlighting the value of overseas physical production capacity. Chinese tire factories that truly complete the full tire production process in Thailand, meeting hard standards for origin such as local value addition and tariff classification change, are not impacted by this rectification. Meanwhile, pseudo-overseas projects that only build warehouses without core production processes, merely relabeling and repackaging, will continue to face dual inspection pressure from both the US and Thailand.

Third, industry compliance costs rise, increasing pressure on small and medium foreign trade tire enterprises. Enterprises need to fully retain material procurement, production process, and cost accounting ledgers to respond to customs traceability verification at any time. Certificates of origin must be applied for through the Thai official system, eliminating third-party false certificates. In the future, tire exports will not just compete on price, but on supply chain compliance capabilities.

Core Points for Enterprise Compliance Export

CheYuanCheChe reminds, facing the new situation of current industry regulation, combining the latest rules of the US and Thai parties, tire foreign trade enterprises need to comprehensively adjust their export models, strictly adhere to compliance bottom lines. Core practical points are as follows:

1. Completely abandon the arbitrage thinking of origin laundering. The US AI inspection system can penetrate logistics, equity, and capital flow to identify false transshipment. The risk has been transmitted to the entire chain;  

2. For Thai tires exported to the US, corresponding HS codes need to be verified, clarifying the applicable Tariff Change (CTC) or Regional Value Content (RVC) standards, fully retaining complete production, procurement, and cost archives;

 3. All certificates of origin must be applied for through the Thai DFT official e‑Service platform. Reject non-formal false certificates of origin circulating on the market;  

4. Even if local Thai origin rules are met, they must also adapt to the strict verification standards the US imposes on Level 2 Risk Nations. Be prepared to face on-site verification in advance.