Taipei [Taiwan], April 17 : Taiwan's Ministry of Economic Affairs has recorded nearly 800 documented cases of country-of-origin fraud since 2020, resulting in total fines of NTD 29.58 million, according to data presented by Taiwan's Ministry of Finance, Taipei Times reported.
In response to the growing misuse of Taiwan as a relabelling point for Chinese goods - especially those heading to the United Statesthe government is intensifying efforts to combat this issue, which has become a critical factor in ongoing tariff negotiations between Taiwan and the US.
"We will monitor import volumes, strictly enforce penalties with fines from NTD 60,000 to NTD 3 million per violation and revoke import-export licenses of fraudsters," Economic Affairs Minister J W Kuo told the legislature yesterday, adding that serious offenses could lead to suspension of operations.
Kuo made the statement during a session of the legislature's Economics Committee in response to Democratic Progressive Party (DPP) Legislator Chiu Yi-ying, who asked how the ministry plans to prevent China from taking advantage of Taiwan through product mislabelling and origin fraud.
Kuo emphasised that the government is closely watching the issue, particularly as it is a critical factor in tariff negotiations between Taiwan and the United States. The ministry also plans to strengthen anti-dumping investigations and enhance awareness among Taiwanese firms to ensure compliance.
At a separate meeting of the legislature's Finance Committee, Minister of Finance Chuang Tsui-yun echoed similar concerns and confirmed the formation of a task force aimed at enhancing inspections of illegal trans-shipments at customs.
Chuang said the government would "take all necessary steps to prevent attempts by firms to disguise the origin of their Chinese-made products" and block Taiwan's misuse as a trans-shipment base to the US for avoiding higher duties, reported Taipei Times.
However, Chuang noted that penalties under the free trade zones act currently range only from NTD 30,000 to NTD 300,000 far lower than the Foreign Trade Act's NTD 3 million maximum. She urged the Ministry of Transportation and Communications, which oversees the trade zones, to consider increasing the upper limit.
National Development Council Minister Paul Liu added that the National Development Fund has issued notices to all of its portfolio companies to avoid any involvement in origin mislabelling. Liu said the council had received more than 40 responses by yesterday afternoon, Taipei Times reported.
Separately, Kuo addressed concerns about a US tariff imposed under US President Donald Trump, stating that it would mostly affect US-based clients of Taiwanese semiconductor firms. The government, he said, will work with these clients to seek a more favourable rate.
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