Define transshipment and explain why it matters in tariff classification and duties.

Define transshipment and explain why it matters in tariff classification and duties.

• A. Transshipment refers to shipping goods directly from origin to final destination without any intermediate countries.
• B. Transshipment, a temporary suspension of duties at the border, is required for all shipments.
• C. Transshipment is the shipment of goods through a foreign intermediate country before final destination; it matters because the ultimate country of origin can affect eligibility for preferential tariffs, origin verification, and antidumping investigations.
• D. Transshipment is the act of exporting goods that have already been subject to duties in a previous country.

Answer: (C)