In response to U.S.-China trade confrontation, Taiwan Customs has taken relevant measures to prevent illegal transshipments
I. Preventive measures
(i)To export machine-tools produced by Taiwan to the U.S., exporters shall submit Taiwan Certificates of origin (C/Os) to Customs upon declaration of exportation.
(ii)To import solar cells and other photovoltaic cells into Taiwan, importers shall submit C/Os issued by the government of the exporting country, the producing country or other authorized agencies to Customs upon declaration of importation.
(iii)The exportation of specific goods such as bicycles and electric auxiliary bicycles handled by free trade zone enterprises and destined for the U.S. shall be attached with export permits issued by the Ministry of Economic Affairs.
II. Customs clearance measures
(i)Strengthen the inspection of clearance of goods in bonded areas: In free trade zones, logistics centers and bonded warehouses, Customs has strengthened the inspection of high-risk goods made in China that are subject to anti-dumping duties of the EU or the U.S., or are covered by the Section 301 Remedy, in order to find out whether there are untruthful labels of origin or false export declarations.
(ii)Target high-risk goods through systematic comparison: Through the automatic data comparing clearance system, Customs select goods imported from China that are subject to the special Section 301 tariffs or anti-dumping duties of the U.S., and strengthen the examination of those exported goods.
III. Management measures
(i)Where a free-trade-zone enterprise is found to have labeled the country of origin untruthfully, Customs may impose a fine in an amount of no less than NTD 30,000 but no more than NTD 300,000 in accordance with Article 38 of the Act for the Establishment and Management of Free Trade Zones.
(ii)Where an operator in other boned areas or taxation areas is found to have labeled the country of origin untruthfully, Customs will transfer the violation case to the Ministry of Economic Affairs for punishment pursuant to the provisions of the Foreign Trade Act.
The Customs Administration stated that, since August 2018, Customs has seized 15 cases of untruthful label of origin on goods and false declaration of the country of origin. All these cases were transferred to the competent authorities for punishment. To protect the overall reputation of Taiwan exports and the economic interests, the Customs Administration urges importers and exporters not to engage in illegal transshipments that can lead to penalties for violation.