On December 3, the Legislative Yuan passed amendments to certain provisions of the “Trade Law” after its third reading. These amendments are mainly to uphold the reputation of “Made in Taiwan (MIT)” products internationally, while safeguarding Taiwan’s overall economic and trade interests. Given the additional tariffs that the USA and China have imposed on each other during their trade dispute, and to prevent deceitful manufactures from replacing labels on imported goods from China with MIT labels, or using falsified certificates of origin to circumvent these tariffs, we proposed amending the Trade Law by increasing the amount of fines for violations and offering rewards for reporting fraudulent certificates of origin. Moreover, to protect the exportation of strategic high-tech commodities (SHTC), related fines and penalties have been increased according to administrative needs.
We express our sincere gratitude to the Legislative Yuan for approving the amendments to the Trade Law in order to prevent illegal transshipments and safeguard our foreign trade interests. Following the president’s announcement, we will actively implement the amended law and establish procedures for offering rewards for reporting the use of fraudulent certificates of origin.
When the Legislative Yuan deliberated on the amendments to certain provisions of the Trade Law, Minister Shen said, “Increasing the amount of penalties and fines, adding a whistleblowing system, and offering rewards will not only deter violations and meet administrative needs, but also reduce international concern about fraudulent certificates of origin in Taiwan, while upholding the reputation of Taiwan’s commerce”. We call on industries to refrain from unlawful actions and abide by SHTC export regulations in order to jointly safeguard the overall foreign trade interests of Taiwan.
The key amendments are described below:
1. Stipulate clearly that importers and exporters shall not apply for relevant trade permits or certification documents under false pretenses, or use fraudulent permits or documents. (Amendment Article 17)
2. Update incentive provisions for whistleblowers to prevent importers and exporters from using fraudulent certificates of origin, which has caused foreign authorities to carry out investigations of Taiwanese companies, and thereby affect the interests and reputations of all industries in Taiwan. (Amendment Article 17-1)
3. Increase fines for violations of illegal exportation of strategic high-tech commodities (SHTC) to controlled areas in order to effectively manage and deter manufacturers from such violations. (Amendment Article 27)
4. Increase fines and penalties for illegally exporting SHTC to controlled areas in order to effectively manage and deter manufacturers from such violations, and to prevent deceitful manufacturers from using fraudulent certificates of origin, or disrupting trade order under false pretenses. (Amendment Article 27-2 and 28)