Taiwan uncovers country-of-origin violations for 72 U.S.-bound shipments

Taipei, June 24 (CNA) Taiwan's Customs Administration has flagged 72 export shipments to the United States for false or missing country-of-origin labeling, the result of heightened enforcement aimed at preventing the transshipment of Chinese goods to avoid U.S. tariffs.

Customs Administration Deputy Director-General Chao Tai-an (趙台安) said Tuesday that inspection teams reviewed 6,962 shipments between April 1 and June 15 and found the violations primarily among general exports from tax areas.

He said the cases have been referred to the Ministry of Economic Affairs' International Trade Administration, which can impose fines of up to NT$3 million under Taiwan's Foreign Trade Act.

Products found in shipments that were in violation included computer cases, transformers, plastic products, air compressors, fans and lighting fixtures, the customs administration said.

Chao added that the agency also inspected 280 U.S.-bound shipments from free trade zone operators during the same period and found no violations.

Under the Act for the Establishment and Management of Free Trade Zones, violators in those zones face a lower maximum fine of NT$300,000.

In response to concerns that the penalty ceiling in free trade areas is too low, the Ministry of Transportation and Communications (MOTC) -- which oversees the free trade zones -- is currently reviewing whether to raise the maximum fine 10-fold to NT$3 million in line with the Foreign Trade Act.

Chao also said that since May 7, exporters of Taiwan-made goods to the U.S. must submit a Certificate of Origin and mark "YT" in the designated code field on their customs declaration.

He said that 116,000 such certificates had been reviewed as of June 15.

Chao warned that companies submitting false declarations would be referred to the judicial authorities for related violations.