Those who engage in illegal transshipping may face fines of up to NT$3 million (US$92,343) under current law, Minister of Economic Affairs J.W. Kuo (郭智輝) said today.
Kuo made the comments as Taiwan enters negotiations with the US on tariffs.
There are concerns that some may attempt to evade high duties on Chinese goods by falsely labeling them as Taiwanese, known as “origin laundering.”
Photo: CNA
The Ministry of Economic Affairs has adopted four measures to combat origin laundering, Kuo told a meeting of the Legislative Yuan’s Economics Committee.
These include monitoring import volumes, strict penalties, strengthening investigations into unfair trading practices and strengthening outreach to businesses, he said.
During the meeting, focused on domestic manufacturers expanding into international markets, Democratic Progressive Party legislators Chiu Yi-ying (邱議瑩) and Lin Tai-hua (林岱樺) asked about measures the government would take to stamp out origin laundering.
The government is taking the issue very seriously, Kuo said, adding that it is related to whether Taiwan can gain the trust of the US during negotiations.
Asked which industries would be targeted for outreach, Kuo said the ministry is looking at the machine tool and fastener industry, as it imports from China for processing.
Fastener manufacturers should increase inspections to ensure that Chinese steel is not being dumped into Taiwan, Chiu said.
Kuo said that the ministry has tapped the Chinese National Federation of Industries to investigate Chinese steel dumping in Taiwan.
Articles 17 and 28 of the Foreign Trade Act (貿易法) state that those who falsely label goods’ origin are subject to fines of between NT$60,000 to NT$3 million, and may be banned from exporting and importing, Kuo said.
The ministry held its first outreach meeting yesterday, attended by more than 600 people representing several industries such as machining, electronics, textiles and more, he said.
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