FTZ Transshipment Violations Face Max Fines

Customs is strengthening inspections against illegal transshipment. If a Free Trade Zone enterprise is found to be involved, the statutory maximum fine of NT$300,000 will be imposed according to the Free Trade Zone Establishment and Management Act.
Customs calls on FTZ enterprises to declare export documents accurately and indicate the origin of goods as required to protect their own interests and avoid heavy penalties.

To prevent Mainland China from evading U.S. reciprocal tariffs or other trade sanctions by routing Chinese-made goods through Taiwan"s Free Trade Zones and falsely labeling them as "Made in Taiwan" before exporting them to the United States,
which would harm Taiwan"s industrial reputation and development, customs has begun to strengthen inspections of illegal transshipment activities.

Customs stated that, in accordance with the Ministry of Economic Affairs’ announcement, starting from May 7, 2025, exporters of Taiwanese-made goods to the U.S. must attach a “Declaration of Origin for Goods Exported to the U.S.”
when filing export documents, and indicate “YT” (indicating goods made in Taiwan) in the “Designated Code by Competent Authority” column to safeguard the overall interests and trade order of Taiwanese products.

If companies use foreign-made goods for illegal transshipment through Taiwan"s Free Trade Zones, it will seriously damage the international reputation of Taiwanese products and harm the interests of the entire nation.
If FTZ enterprises export goods to the U.S. that are involved in such illegal acts, they will be fined up to the statutory maximum of NT$300,000 under the Free Trade Zone Establishment and Management Act, in order to deter such violations.


Information source:台灣新生報航運版20250625