Bitcoin Miners Undervalue Shipments to Evade U.S. Customs Duties
Members of the bitcoin mining industry are reportedly undervaluing mining rig shipments to reduce customs duties with the U.S. Customs and Border Protection (CBP). This practice has become more significant due to recent tariff increases by the Trump administration.
- Industry insiders indicate that declaring lower values on shipments is a common method to circumvent tariffs.
- Jill Ford of BitFord Digital noted that this practice involves risks as it is illegal.
- The ASIC market, valued at $30 billion, is mainly dominated by Chinese companies like Bitmain and MicroBT.
- The Trump administration's new trade policy threatens substantial tariffs on imports from Southeast Asian countries.
- A 90-day moratorium was announced to negotiate new trade deals, causing uncertainty among U.S. miners.
- Many miners have historically under-reported shipment values; however, increased scrutiny from CBP is now evident.
- Importing large quantities of machines draws closer examination from customs officials.
- Discrepancies in enforcement exist across states, impacting the import process significantly.
- Ford mentioned that while some areas face strict controls, others experience fewer challenges.
With tighter regulations and tariff uncertainties, some mining operations are reassessing their strategies. Approximately 50% of Ford’s clients continue with their plans, while others pause shipments. The potential impact includes a slowdown or halt in new projects, with Canada being seen as a possible alternative location for infrastructure deployment.