2025 Flange Exports to the US: Three Compliance Breakthrough Paths for Duplex Steel Flanges Under the 40% Transshipment Tariff
2025 became a "policy test year" for Chinese flange exports to the US: In May, the US International Trade Commission (ITC) extended anti-dumping and countervailing duties on Chinese stainless steel flanges, maintaining a high tariff rate of 257.11% for core categories such as ASTM A182 F51/F53 duplex steel flanges and ANSI B16.5 Class 150 threaded flanges; on August 7, the US 40% transshipment tariff officially took effect, directly classifying goods simply transshipped through a third country as "tariff evasion." Under this dual pressure, industrial clusters such as Mengcun in Hebei and Dingxiang in Shanxi broke through through three upgraded transshipment paths. In the first half of 2025, transshipment orders for duplex steel threaded flanges to the US increased by 68% year-on-year, far exceeding the industry average growth rate.
Path 1: Deep Processing in Malaysia to Cope with Strict Inspections at the Country of Origin
The Malaysian transshipment model underwent a crucial adjustment in 2025. Due to the tightening of transshipment policies in that country starting in May, simple labeling is no longer sufficient to obtain a certificate of origin. Companies need to upgrade their processing depth from "thread processing" to "full-process value-added services." The operational logic is as follows: Chinese companies transport flange blanks to the Port Klang Precision Manufacturing Park, where they complete three core processes: CNC thread cutting, helium mass spectrometry leak detection, and passivation layer thickening. This ensures a value-added rate exceeding 40% (a 10 percentage point increase compared to 2024), before applying for a certificate of origin through SGS certification.
Data from a Kuala Lumpur transshipment service provider in Q3 2025 shows that F51 duplex threaded flanges processed using this model accounted for 58% of the total. Each shipment requires additional submission of equipment operation logs and process video records. A flange company in Hebei revealed that although the processing cost per ton increased to $180, compared to the combined risks of a 257.11% anti-dumping duty and a 40% transshipment tariff, a profit margin increase of 11.2% was still achieved.
Path Two: Shanxi Bonded Warehouse – “Indirect Transit” – Activating Tax Refund Leverage
For low-to-medium value-added products such as carbon steel threaded flanges, Shanxi Yongwang International Logistics Park has upgraded its “bonded warehouse + Hong Kong distribution” model. After storing ANSI B16.5 Class 150 flanges in the bonded warehouse, companies first complete the tax refund under the name of “bonded export” (the cycle is shortened to 3 working days). Then, a Hong Kong trading company sells the goods to compliant processing companies in Malaysia, and after slight value-added processing, exports them to the United States under the name of “Made in Southeast Asia.”
This model precisely avoids the risks of “direct re-export.” Park data shows that in Q3 2025, the proportion of carbon steel flanges transshipped via this route rose to 47%, with a 22% reduction in the overall cost per shipment, and a 50% improvement in the turnover efficiency of tax refund funds compared to the previous year. A 2025 survey by the China Council for the Promotion of International Trade (CCPIT) indicated that this model lowers the export threshold for small and medium-sized flange enterprises to the United States by 30%.
Path Three: Component-Based Compliance in Mexico, Capitalizing on USMCA Benefits
The Mexican transshipment route has been revitalized by the upgraded USMCA agreement, but compliance requirements have become more stringent. The 2025 USMCA strengthens rules on intermediate products, requiring flange assemblies to meet a regional value component of over 60% (a 10 percentage point increase from 2024). Chinese companies have established assembly bases in the Monterey Industrial Park, combining domestically produced F53 super duplex flanges with Mexican-made gaskets and US-made bolts to form "flange systems" for export to the US.
This model offers significant advantages in terms of timeliness. In the first half of 2025, orders for flange assemblies including ASTM A182 F53 flanges exported from Mexico to the US increased by 73% year-on-year, mainly supplying US shale gas development projects. Transshipment consulting agencies estimate that the delivery cycle has been reduced from 45 days to 15 days, the final price of 150-pound threaded flanges has decreased by 29%, and the risks of anti-dumping and countervailing duties and transshipment tariffs are completely avoided.
2025 Compliance Red Lines and Selection Guidelines
US Customs will strengthen its triple verification in 2025: first, tracing the origin of raw materials through blockchain technology; second, conducting on-site verification of utility bills and employee attendance records at third-country factories; and third, comparing key parameters such as the surface roughness of sealing surfaces between Chinese and third-country products (the difference must be ≥0.8μm). Three companies have already been subject to additional tariffs and blacklisted for "fake processing."
In terms of selection strategy, high-value-added F51/F53 duplex steel flanges should prioritize the deep processing route in Malaysia; carbon steel threaded flanges with batches exceeding 100 tons are suitable for the Shanxi bonded warehouse model; and urgent orders with delivery times of ≤20 days should target the Mexican modular solution. As PwC's "2025 Cross-Border Trade White Paper" points out, "Re-export has evolved from 'path selection' to 'supply chain restructuring,' and the depth of compliance determines market viability." Data from January to February 2025 shows that Chinese flange companies using compliant re-export methods saw a 12.6% increase in exports to the US, far exceeding the industry average decline of 3.8%, confirming the feasibility of the transformation path.
Sources:
- U.S. International Trade Commission (ITC)：Announcement on the Extension of Anti-dumping and Countervailing Measures on Chinese Stainless Steel Flanges
- Global Times：The impact of the US 40% transshipment tariff on entrepot trade
- Tianjin Municipal Bureau of Commerce：USMCA Rules of Origin Interpretation 2025
- PwC：2025 White Paper on Cross-border Trade Re-export Model
