August 16, 2022

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Comply with China's naming rules

Comply with China’s naming rules

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As the Chinese communist government continues to act thorny in the wake of the House of Representatives Speaker Nancy Pelosi Last visit to TaiwanApple urges its suppliers to make sure any shipments from Taiwan to China are labeled in strict compliance with Chinese customs regulations regarding how the island is named.

It’s a critical time for Apple, as it prepares to launch the next generation of iPhones this fall, and suppliers are currently assembling various components for the new smartphones.

According to a report by Nikki AsiaPelosi’s visit “raised fears of growing trade barriers,” leaving Apple concerned about “potential disruptions” if important shipments are delayed or even blocked at customs due to a failure to appease Chinese label demands:

Apple told suppliers on Friday that China has begun to strictly enforce a longstanding rule that Taiwan-made parts and components must be labeled as made in either “Taiwan, China” or “Chinese Taipei,” people familiar with the matter told Nikkei Asia. . , the language that indicates that the island is part of China…

The sources added that the use of the phrase “Made in Taiwan” in any forms, documents or cartons for the import declaration may cause shipments to be detained and examined by Chinese customs. One of the sources said the penalties for violating such a rule are a fine of up to 4,000 yuan ($592) or, in the worst case scenario, refusal of the shipment.

This presents a dilemma for suppliers who need to ship materials, components or parts from Taiwan to China, however, since the democratically governed island also requires that all exports be labeled product of origin, which means they must carry the words “Taiwan” or “Republic of China” , the island’s official name, according to suppliers and logistics companies.

It’s not a hypothetical problem, but one that actually occurs. Shipments from Taiwan to facilities operated by Pegatron, the iPhone assembly company, in Suzhou, China were “held for review Thursday while Chinese officials checked import declaration forms and cartons to determine whether they were marked as “Taiwan” or “Republic of China”. Nikki Asia reported.

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A senior Pegatron executive was among several Taiwanese chip industry leaders who attended the luncheon with Pelosi hosted by the Taiwanese president. Tsai Ing-wen On Wednesday, the report indicated, perhaps highlighting another reason the company has found itself under increased scrutiny.

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