A&M's Henry Chambers and Andy Winthrop Featured in the South China Morning Post
Trade Compliance Risks Rise Amid Renewed Tariff Uncertainty
As a renewed wave of tariffs takes effect, many global manufacturers are facing pressure from both operational disruptions and heightened compliance risk.
In a recent feature by the South China Morning Post, Henry Chambers, Managing Director and Co-Head of Alvarez & Marsal’s Disputes and Investigations practice in Asia, and Andy Winthrop, Senior Director in A&M’s Asia Tax practice, discuss the increasing risks businesses face as regulatory scrutiny intensifies.
“The net has been broadened, increasing a company’s chances of exposure, especially those in high-risk sectors and even with unintentional errors,” said Henry. He also noted that enforcement agencies are leveraging advanced data analytics and encouraging whistle-blower lawsuits under the False Claims Act.
Andy explained that country-of-origin determinations, which define where goods undergo substantial transformation, are now a key risk area.
“This assessment is highly technical and often subjective,” Andy said. “Cases could involve up to treble damages, substantial penalties, lengthy litigation and potentially devastating collateral consequences.”
With companies accelerating supply chain diversification and clients in the U.S. seeking ways to mitigate duties, the legal and financial implications of misclassification or noncompliance are higher than ever.
Read the full article to understand why manufacturers are facing intensified compliance scrutiny, and how leaders are responding to rising enforcement risk.
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