All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday.
US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world.
On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs.
Photo: CNA
In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected industries.
Meanwhile, the US currently imposes a 145 percent tariff on all Chinese goods, while China has retaliated by levying a 125 percent tariff on all US exports.
The bureau said that the US tariff policies would incentivize countries facing higher tariffs to reroute their goods through nations with lower tariff rates by altering source-of-origin labels, repackaging, or applying minimal processing before exporting to the US.
The Lai administration wishes to avoid the possibility of Chinese goods being rerouted through Taiwan, as such practices would damage Taiwan’s international credibility and undermine its efforts to secure preferential tariffs with the US, the bureau said.
The signed declaration of origin represents a commitment between businesses and the government to work together to prevent China from “whitewashing” the origin of its products and using Taiwan as a channel to circumvent US tariffs, it added.
Starting on May 7, the declaration form would be a mandatory document for all exports to the US, the bureau said, adding that exports without the required documentation would be barred from clearing customs.
While existing regulations already require products made in Taiwan to be labeled accordingly, either internally or externally, exporters sometimes forget to label their goods, the bureau said, adding that the declaration form would serve as a further reminder.
Failure to comply with the new rules could result in fines ranging from NT$60,000 to NT$3 million (US$1,845 to US$92,234), it added.
Per Premier Cho Jung-tai’s (卓榮泰) statements, products made in Taiwan must be clearly designated as such, and the new declaration requirement is not intended to restrict exports, the bureau said.
Instead, it serves as a signal that businesses are willing to cooperate with the government to prevent China from “whitewashing” the origin of its products and using Taiwan to evade US tariffs, it added.
The bureau was referring to Cho’s remarks during a meeting with representatives of the fastener industry on April 13 in Kaohsiung, where he said that the US is highly concerned about issues related to origin washing.
The US does not apply a single, fixed standard to determine the origin of goods; instead it makes determinations on a shipment-by-shipment basis, the Ministry of Economic Affairs said.
Exporters are advised to review previous US rulings, remain in constant communication with their US clients and consider applying to US Customs and Border Protection for preclearance to protect their rights and interests, it said.
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