Taipei vows crackdown on fake 'Made in Taiwan' labels

Taipei has repeatedly vowed to ensure that it does not become a place for Chinese exporters to dodge US tariffs with fake "Made in Taiwan" labels, as the island seeks to strengthen its position in trade talks with Washington.

- Yip Wai Yee

TAIPEI -

"MIT (Made in Taiwan) must be MIT. Taiwan must uphold the lines of defense and not become a loophole," Premier Cho Jung-tai said in an April 13 speech to leaders representing various industries.

Calling on companies to work with the government to safeguard Taiwan's economic security, he said that Taipei would step up preventive measures, intensify Customs inspections, and impose strict penalties for offenders to tackle what he termed "origin laundering".

The practice refers to Customs fraud involving a false origin claim when exporters misrepresent the true origin of goods - which is often done to take advantage of preferential trade agreements or avoid high tariffs.

Mr Cho made the speech days after Taiwan's Economic Affairs Minister Kuo Jyh-huei brought up the same issue on April 11 in the legislature, where the latter suggested creating a public blacklist of violators.

"We will increase our publicity outreach efforts with companies and remind them that this practice (of origin laundering) could potentially affect the US' judgment of Taiwan," Mr Kuo said.