Consumers will have to pay more for a shrinking selection of wine and spirits because the government's new customs regulations will force foreign product off the shelves, the European Chamber of Commerce Taipei (ECCT) said yesterday.
Starting in July, all imported liquor will need certificates specifying methanol, sulphur dioxide and lead content, otherwise 5 percent of each batch will be required to undergo tests by Taiwanese customs officials in the hunt for counterfeit liquor.
Such tests, however, are not compulsory in Europe, said Guy Wittich, the chamber's chief executive officer, yesterday.
"Taiwan is the only country in the world that requires such testing procedures ... which would lead to less wine imports and in turn have Taiwanese consumers pay more due to the cost increase," Wittich told reporters. "The requirement is unreasonable and WTO non-compliant."
Wittich made the remarks as the ECCT released its latest review of the nation's level of compliance with WTO commitments yesterday.
The chamber estimated that the new import regime will reduce wine imports by 1.5 million bottles, cutting sales of wine by about NT$400 million (US$12.4 million) a year, or around 5 percent of the market.
In addition, around 30 percent of brands would disappear from shelves, Wittich said. The government could lose NT$500 million in tax revenue because consumers may simply smuggle wines from abroad, he said.
This would force some alcohol importers out of the market, he said. Makers of some high-end wines might shift to other countries rather than submit a limited number of bottles for examination, he said.
Because the new rules also mandate stricter standards for sulfur dioxide content, ice wine, which contains more sulfur dioxide for longer preservation, will be banned, Wittich said.
In response, Ministry of Finance officials said that countries like the US and Japan have their own testing regimes and target items in a way that differs from Taiwan.
The authorities could not overlook its responsibilities to satisfy a minor market segment, said Chen Wan-ching (
Chen added that only one or two importers had made complaints, while most importers did not report finding the new requirements difficult to follow.
The ministry had already made exemptions for certain high-end wines and would consider amending the rules if considerable inconvenience occurred after implementation, he said.
The chamber has scheduled a meeting with Minister of Finance Joseph Lyu (
Frustrated by government inefficiency and a business environment that has not liberalized to the extent that it had hoped, the chamber suggested at the end of last year that the EU regard Taiwan's "failure" to meet WTO commitments as a priority, Wittich said.
The chamber has asked Taiwan for some time to fulfill its WTO commitments in areas including access to government procurement agreements, removal of Chinese imports and visitor bans and easing of Taiwan-friendly regulations in the auto industry.
RSS