SINGAPORE: Cargo inspection company CCIC Singapore, which recently laid off hundreds of workers, said on Monday (Jun 9) that it had to do so as the impact of sanctions from the United States turned out to be far greater than expected, and that it has ceased operations in Singapore.
The China-linked, Singapore-based firm was among 15 companies blacklisted by the US on May 13 for helping to conceal the origins of Iranian oil being shipped to China.
"Due to the direct impact of US sanctions, the company’s bank accounts have been frozen, resulting in an inability to repatriate revenue or cover expenses. This has led to a breakdown in cash flow, loss of clients and severe disruption to overall operations," the company told CNA in a statement in Chinese.
"Against this backdrop, the company has been forced to initiate business liquidation and staff reductions. The primary reason is that the impact of the sanctions has far exceeded expectations - banks have ceased providing services, and salaries and operational costs can no longer be paid."
CCIC Singapore said that it will disburse salaries for the month of May and part of the severance payments to each affected employee within three days. Retrenchment notices sent to employees had said that retrenchment benefits would only be fully paid after the liquidation process was complete, with an estimated date of Jun 30, 2026.
Two employees earlier told CNA that CCIC Singapore has over 400 workers in Singapore and Malaysia, with the majority based in Singapore. Another employee said the firm has more than 300 workers in Singapore alone.
The company added on Monday that it has made the "difficult" decision to terminate its Singapore operations after "thorough deliberation".
"This decision was extremely challenging for the management team, but it is a rational choice that had to be made under the current circumstances," it said.
CCIC Singapore is a wholly owned subsidiary of China Certification & Inspection Group (CCIC), a Chinese state-owned enterprise headquartered in Beijing.
Asked for its comments on the US accusations and whether it intends to appeal, the company said it has "consistently required its subsidiaries to comply with the applicable laws and regulations of their host countries and other relevant jurisdictions".
It added that it will continue to "manage all related matters in accordance with the law and maintain ongoing communication with all relevant parties".
Three affected employees had told CNA last Friday that staff across all departments of CCIC Singapore were notified of their retrenchments on May 30, with the terminations effective from the next day.
The employees, who spoke on condition of anonymity, said the company had delayed the payment of salaries owed for May, with retrenchment notices attributing this to the firm's "pending liquidation".
CCIC Singapore was set up in 1989 and has its registered address at Singapore Science Park. Its customers include Shell, BP, Total, Exxon Mobil and major Chinese petrochemical corporations, according to CCIC's website.
Parent company CCIC was established in 1980 and is part of China's State-Owned Assets Supervision and Administration Commission of the State Council.
The US has blacklisted CCIC Singapore for helping to obscure the origins of Iranian oil, which is typically done through numerous ship-to-ship transfers, oil blending and false documentation.
Sepehr Energy, which is a front company of the Iranian military, "consistently relied" on CCIC Singapore for cargo inspections of oil being delivered to China, according to the US Treasury Department.
In 2024, CCIC Singapore provided inspection services during a ship-to-ship transfer of about 2 million barrels of Iranian oil from a sanctioned vessel.
That same year, the firm also "likely provided" falsified documents to conceal the identity of another sanctioned vessel and certify its cargo of Iranian oil as Malaysian crude.
According to the US Treasury Department, Iran's illicit oil trade funds the development of ballistic missiles and drones as well as regional terrorist groups.
The sanctions freeze all US-linked assets of the blacklisted companies and individuals. In addition, any company that is at least half-owned by those sanctioned is also blocked from transactions engaging US businesses or the US financial system.
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The China-linked, Singapore-based firm was among 15 companies blacklisted by the US on May 13 for helping to conceal the origins of Iranian oil being shipped to China.
"Due to the direct impact of US sanctions, the company’s bank accounts have been frozen, resulting in an inability to repatriate revenue or cover expenses. This has led to a breakdown in cash flow, loss of clients and severe disruption to overall operations," the company told CNA in a statement in Chinese.
"Against this backdrop, the company has been forced to initiate business liquidation and staff reductions. The primary reason is that the impact of the sanctions has far exceeded expectations - banks have ceased providing services, and salaries and operational costs can no longer be paid."
CCIC Singapore said that it will disburse salaries for the month of May and part of the severance payments to each affected employee within three days. Retrenchment notices sent to employees had said that retrenchment benefits would only be fully paid after the liquidation process was complete, with an estimated date of Jun 30, 2026.
Two employees earlier told CNA that CCIC Singapore has over 400 workers in Singapore and Malaysia, with the majority based in Singapore. Another employee said the firm has more than 300 workers in Singapore alone.
The company added on Monday that it has made the "difficult" decision to terminate its Singapore operations after "thorough deliberation".
"This decision was extremely challenging for the management team, but it is a rational choice that had to be made under the current circumstances," it said.
CCIC Singapore is a wholly owned subsidiary of China Certification & Inspection Group (CCIC), a Chinese state-owned enterprise headquartered in Beijing.
Asked for its comments on the US accusations and whether it intends to appeal, the company said it has "consistently required its subsidiaries to comply with the applicable laws and regulations of their host countries and other relevant jurisdictions".
It added that it will continue to "manage all related matters in accordance with the law and maintain ongoing communication with all relevant parties".
Related:
LAYOFFS AFTER US SANCTIONS
Three affected employees had told CNA last Friday that staff across all departments of CCIC Singapore were notified of their retrenchments on May 30, with the terminations effective from the next day.
The employees, who spoke on condition of anonymity, said the company had delayed the payment of salaries owed for May, with retrenchment notices attributing this to the firm's "pending liquidation".
CCIC Singapore was set up in 1989 and has its registered address at Singapore Science Park. Its customers include Shell, BP, Total, Exxon Mobil and major Chinese petrochemical corporations, according to CCIC's website.
Parent company CCIC was established in 1980 and is part of China's State-Owned Assets Supervision and Administration Commission of the State Council.
The US has blacklisted CCIC Singapore for helping to obscure the origins of Iranian oil, which is typically done through numerous ship-to-ship transfers, oil blending and false documentation.
Sepehr Energy, which is a front company of the Iranian military, "consistently relied" on CCIC Singapore for cargo inspections of oil being delivered to China, according to the US Treasury Department.
In 2024, CCIC Singapore provided inspection services during a ship-to-ship transfer of about 2 million barrels of Iranian oil from a sanctioned vessel.
That same year, the firm also "likely provided" falsified documents to conceal the identity of another sanctioned vessel and certify its cargo of Iranian oil as Malaysian crude.
According to the US Treasury Department, Iran's illicit oil trade funds the development of ballistic missiles and drones as well as regional terrorist groups.
The sanctions freeze all US-linked assets of the blacklisted companies and individuals. In addition, any company that is at least half-owned by those sanctioned is also blocked from transactions engaging US businesses or the US financial system.
Continue reading...