Informants reporting false origin labeling could receive up to 20 percent of collected fines, capped at NT$1.8 million (US$57,064) per year, under amendments proposed today by the International Trade Administration to curb origin laundering.
Some businesses engage in origin laundering by relabeling, repackaging or minimally processing imported goods, and falsely marking them as “Made in Taiwan” for re-export, the agency said.
To improve enforcement against this, it has proposed a reward mechanism for reporting false labeling, it said.
Photo: Lin Jing-hua, Taipei Times
Under proposed amendments to the Regulations for Rewarding Informants in Cases Involving False Labeling of Origin of Goods by Exporters/Importers (出進口人產地標示不實案件檢舉處理及獎勵辦法), anyone who reports false origin labeling and whose claim is verified would receive a reward equal to 20 percent of the fines collected, with a cap of NT$1.8 million per person per year.
The proposed amendments also strengthen protections for informants by requiring reports and related materials be kept confidential and forbidding access or copying by third parties, safeguarding informants’ rights and reducing the risk of their identities being exposed.
By combining rewards and protection, this approach would increase people’s willingness to report contraventions and create a more effective deterrent and oversight network for noncompliant businesses, the agency said.
The proposal is being put forward in accordance with Article 17-1 of the Foreign Trade Act (貿易法) and would be formally implemented after gathering public feedback, it said.
Through concrete financial incentives and institutional safeguards, the measure would curb false origin labeling at its source and help maintain Taiwan’s trade order and international credibility, it added.
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