Taiwan Cracks Down on Origin Fraud Amidst Crucial US Tariff Talks

Taiwan is intensifying measures against the misuse of its name for relabelling Chinese products as origin fraud cases rise. Nearly 800 cases since 2020 have led to NTD 29.58 million in fines, complicating US trade negotiations. Efforts include stricter penalties, license revocations, and heightened inspections.

Taiwan's Ministry of Economic Affairs has registered about 800 cases of country-of-origin fraud since 2020, resulting in fines amounting to NTD 29.58 million, as reported by the Taipei Times. This growing issue is particularly concerning regarding goods heading to the United States, impacting crucial tariff negotiations between the nations.

Economic Affairs Minister J W Kuo emphasized the government's commitment to monitoring import volumes and enforcing strict penalties, including fines ranging from NTD 60,000 to NTD 3 million, and potential suspension of operations for serious offenders. During a legislative session, he addressed strategies to prevent the misuse of Taiwan for relabelling Chinese products and origin fraud.

Minister of Finance Chuang Tsui-yun confirmed a task force has been formed to enhance inspections of illegal trans-shipments. Chuang remarked on the inadequate penalties under the free trade zones act compared to the Foreign Trade Act's maximum fines, urging reconsideration. National Development Council Minister Paul Liu highlighted proactive measures, such as notices to portfolio companies to avoid involvement in fraud.

(With inputs from agencies.)