TAIPEI (Taiwan News) — Economics Minister Kuo Jyh-huei (郭智輝) on Thursday released five measures to combat origin circumvention, a key point in tariffs negotiations with the US.
Origin circumvention refers to parties misrepresenting a product’s country of origin to avoid tariffs or bypass trade barriers. Exporters will alter the product's origin or characteristics to appear as if it originates from a different country or is outside the scope of existing trade restrictions, per the International Trade Administration.
The economics ministry said it would take the following measures to tackle origin circumvention, per CNA:
- Strictly monitor goods from China
- Communicate with businesses
- Create a list of violators
- Lay out stricter penalties
- Apply anti-dumping tools
Kuo said some of the measures are to address US perceptions of Taiwan. He added the ministry would monitor products coming to Taiwan and passing through Taiwan to the US.
Meanwhile, Deputy Foreign Affairs Minister Chen Ming-chi (陳明祺) said Thursday that Taiwan is committed to working with the US to stop origin circumvention, per CNA. Chen was responding to lawmakers' concerns regarding plans for an Offshore Free Trade Demonstration Zone.
DPP Legislator Puma Shen (沈伯洋) warned that the KMT’s proposed amendments would "open a backdoor" for China. He said China could use the zone to evade the 128% tariffs it faces from the US.
