Taiwan Strengthens Enforcement on Country-of-Origin Violations for U.S.-Bound Shipments

Taipei: Taiwan's Customs Administration has flagged 72 export shipments to the United States for false or missing country-of-origin labeling, a move aimed at curbing the transshipment of Chinese goods to dodge U.S. tariffs. Customs Administration Deputy Director-General Chao Tai-an stated on Tuesday that inspection teams reviewed 6,962 shipments between April 1 and June 15, identifying the violations primarily among general exports from tax areas.

According to Focus Taiwan, the cases have been referred to the Ministry of Economic Affairs' International Trade Administration, which has the authority to impose fines of up to NT$3 million under Taiwan's Foreign Trade Act. The products found in shipments that were in violation included computer cases, transformers, plastic products, air compressors, fans, and lighting fixtures, as reported by the customs administration.

Chao noted that during the same period, the agency also inspected 280 U.S.-bound shipments from free trade zone operators and found no violations. Under the Act for the Establishment and Management of Free Trade Zones, violators within those zones face a lower maximum fine of NT$300,000. In response to concerns that the penalty ceiling in free trade areas is too low, the Ministry of Transportation and Communications (MOTC) is currently reviewing whether to raise the maximum fine ten-fold to NT$3 million, aligning it with the Foreign Trade Act.

Chao further mentioned that since May 7, exporters of Taiwan-made goods to the U.S. are required to submit a Certificate of Origin and mark "YT" in the designated code field on their customs declaration. A total of 116,000 such certificates had been reviewed by June 15. Chao warned that companies submitting false declarations would be referred to judicial authorities for related violations.