As U.S. tariffs on Chinese imports continue to shake up global trade, a growing number of Chinese suppliers are proposing a controversial—and illegal—tactic to help American Amazon sellers cut costs: falsifying invoice values to dodge hefty duties.
Under former President Trump’s aggressive tariff policies, U.S. businesses that rely on goods from China have been feeling the financial strain. But it’s not just American companies taking the hit. Chinese manufacturers and distributors, desperate to maintain their flow of exports to the U.S., are now suggesting shady customs maneuvers to keep their clients and profits afloat.
According to emails and WeChat messages reviewed by Fortune, several Chinese suppliers have approached a mid-sized U.S. household goods brand with a significant Amazon presence, offering to under-declare the value of imported merchandise to reduce tariffs. One supplier wrote, “Many U.S. companies use a lower value invoice to clear customs and reduce tariff costs. You can consider this.” Another offered, “We can revise the declared value on commercial invoices to help with duty costs.”
This practice is a clear case of customs fraud, which is illegal under U.S. law. But some Chinese suppliers are even willing to take it a step further. They’re offering what’s known as Delivery Duty Paid (DDP) shipping, where the supplier manages the entire customs process and fabricates the declared value on behalf of the U.S. buyer—essentially shielding the seller from direct legal exposure, but not from eventual consequences.
The founder of the household goods brand, who chose to remain anonymous, told Fortune that some suppliers claimed to be using these tactics for other Amazon sellers. “I’m concerned that smaller importers might not understand the legal risks of following such advice,” he said.
This wave of backdoor dealing comes during a turbulent period in global trade. While the U.S. has eased tariffs on some countries, Chinese imports still face some of the steepest penalties—up to 145% in some cases.
As a result, many Chinese suppliers are scrambling for alternatives, including minor price reductions or the long-term option of shifting production to countries with more favorable trade agreements.
U.S.-based Amazon sellers have long speculated that some China-based competitors engage in customs fraud to lower costs and gain a pricing edge. That suspicion gained traction recently when a China-based consultant posted insights into the mindset of Amazon sellers from the region.
The post claimed that the declared value of a typical container of goods ranges from just $5,000 to $10,000—a figure many U.S. sellers in high-value categories like home and garden say is shockingly low.
This widespread underreporting allows dishonest sellers to bypass steep tariffs and sell their products at lower prices, unfairly undercutting competitors who follow the rules. “They aren’t being held accountable,” the U.S. entrepreneur said. “And that gives them a huge competitive advantage.”
As the trade war escalates and enforcement struggles to keep up, honest sellers may find themselves fighting not only economic policy—but also unethical business practices that threaten to distort the playing field entirely.
