TAIPEI (Taiwan News) — The Ministry of Finance is considering reviewing the tax-exemption policy for small packages.
US President Donald Trump on Tuesday signed an executive order that raises import tariffs on small packages valued at NT$26,289 (US$800) or less from China, from 30% to 90%, effective May 2, per CNA. During a Legislative Yuan session, DPP Legislator Wu Ping-jui (吳秉叡) said Taiwan goods valued under NT$2,000 are exempt from customs duty, commodity tax, and business tax, up to six times within six months per taxpayer.
Wu argued that this is unfair to domestic manufacturers and asked whether the system should be adjusted. Minister of Finance Chuang Tsui-yun (莊翠雲) confirmed that Taiwan imports a significant number of small packages via sea freight, with more than 50% originating from China.
Chuang said the ministry is considering revising the tax exemption threshold. The minister added that the main reason for changes is concern that it could lead to unfair competition for domestic industries or distort the market economy.
Chuang said the recent US tariff hike on low-cost packages from China could also result in an increase in the illegal transshipment of Chinese goods through Taiwan to the US.
Chuang said Taiwan already has a real-name registration system for imported packages through the EZ Way platform to prevent illegal activities. In addition, all customs offices have set up task forces to enhance the inspection of shipments, led by customs directors to ensure strict enforcement.
High-risk goods must be accompanied by export permits or certificates of origin. Customs will screen high-risk shippers and notify the Bureau of Foreign Trade to strengthen the review process when issuing certificates of origin.
Customs uses automated systems to cross-check exporters and product names, flagging goods suspected of originating from China but destined for the US. Customs officers will verify to confirm whether there is any illegal rerouting.
Those caught flouting the regulations will be referred to the Bureau of Foreign Trade for penalties under the Foreign Trade Act. Offenders may face fines of up to NT$3 million or a one-year ban on imports and exports.
