Taipei [Taiwan] April 16 : Taiwan is cracking down on China's mislabeling practices, particularly the use of fake "Made in Taiwan" labels, amid ongoing discussions with the US regarding tariffs, according to the Taipei Times.
Minister of Economic Affairs JW Kuo stated that, under existing regulations, individuals involved in illegal transshipping could face fines up to USD 92,343.
Kuo's remarks came as Taiwan began discussions with the US regarding tariffs. There are worries that some may try to avoid high duties on Chinese products by mislabeling them as Taiwanese, a practice referred to as "origin laundering," as reported by the Taipei Times.
The Ministry of Economic Affairs has implemented four strategies to tackle origin laundering by keeping track of imports to detect anomalies, enforcing fines and penalties for those found guilty of origin laundering, enhancing investigations into unfair trade practices and boosting awareness and cooperation among businesses.
During the meeting, which addressed the expansion of domestic manufacturers into global markets, Democratic Progressive Party legislators Chiu Yi-ying and Lin Tai-hua inquired about the government's actions to eliminate origin laundering, as cited by Taipei Times.
Kuo informed a meeting of the Legislative Yuan's Economics Committee that the government is focusing on industries that import materials from China for processing, such as the Machine Tool Industry, a high-risk sector for origin laundering and the Fastener industry. The manufacturers are being advised to enhance inspections to prevent Chinese steel imports
Kuo noted that the government is treating this issue with great seriousness, stressing its importance for Taiwan in gaining the US's trust during negotiations.
Chiu mentioned that fastener manufacturers should enhance their inspections to prevent the illegal import of Chinese steel into Taiwan.
Kuo indicated that the ministry has enlisted the Chinese National Federation of Industries to investigate claims of Chinese steel dumping in Taiwan, as noted in the Taipei Times report.
According to Articles 17 and 28 of the Foreign Trade Act, individuals who falsely label the origins of goods may face fines ranging from NT 60,000 to NT 3 million, and could also be barred from exporting and importing, Kuo explained, as per Taipei Times.
Beijing has consistently expressed its aim of unifying with Taiwan, using diplomatic, economic, and military pressure to isolate the island on the international front. In contrast, Taiwan continues to assert its independence, supported by a significant segment of its population.