The enforcement of stricter transshipment regulations in the US increases the compliance requirements for exporters.

The Trump administration has heightened scrutiny on supply chains, requiring exporters to provide extensive documentation and proof of product origins to avoid tariffs and trade restrictions. A recent report highlights the evasion tactics of routing goods through third countries, particularly from China, to falsely declare their origins. This scrutiny extends to Indian exporters, who will face increased evidentiary demands, particularly if identified as high-risk for transshipment. Exporters must prepare comprehensive documentation, including detailed bills of materials and production records, to support their origin claims amid evolving regulations and AI-driven enforcement measures.