Taichung Customs has recently discovered multiple cases of export goods that were either mislabeled or failed to properly indicate their country of origin, involving illegal transshipment known as origin laundering, which refers to the act of transshipping goods through Taiwan and falsely labeling them as "Made in Taiwan" to bypass high tariffs, trade sanctions, or country of origin regulations imposed by third countries. Such practices not only disrupt the international trade order but may also damage our overall export reputation and expose Taiwan to foreign investigations and potential trade sanctions.

To prevent the illegal transshipment of foreign goods through Taiwan, Customs has established a task force to enhance inspections of illegal transshipment. By employing risk analysis techniques, high-risk exporters are identified for strict inspections on the country of origin of products and labeling. These measures aim to protect Taiwan's reputation for integrity in international trade and safeguard the rights and interests of compliant businesses.

Taichung Customs expressed that all export goods must be accurately labeled with their country of origin according to the Foreign Trade Act and the Regulations Governing Export of Commodities. Violators who fail to properly indicate the origin or intentionally mislabel products will be referred to the International Trade Administration, Ministry of Economic Affairs, under Article 28 of the Foreign Trade Act. Penalties may include fines up to NT$3 million or stop the exporter/importer from exporting/importing goods for up to one year. In serious cases, the import and export registration will be cancelled. For violations occurring within Free Trade Zones, penalties under Article 38 of the Act for the Establishment and Management of Free Trade Zones may include fines up to NT$300,000, suspension of cargo storage for up to six months, or revocation of its operation permit. Taichung Customs urges all exporters to ensure the accurate labeling of the country of origin of the product to facilitate customs clearance, avoid penalties, and collectively safeguard Taiwan's export reputation as well as economic and trade benefits.

Contact Information:
Mobile and Non-Intrusive Inspection Division, Taichung Customs.
TEL: +886-4-26582500 ext. 110 Mr. Yang