Comply with Chinese label rules

Apple iPhone 13 on display in Apple Store

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With the Communist government of China still acting very prickly in the wake of the Speaker of the House Nancy Pelosi’s On a recent visit to Taiwan, Apple is urging its suppliers to ensure that all shipments from Taiwan to China are labeled in strict accordance with China’s customs regulations regarding the naming of the island.

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

According to a report from Nikkei Asia, Pelosi’s visit has “ignited fears of escalating trade barriers,” making Apple nervous about “possible disruptions” if critical shipments are delayed or even blocked at customs due to non-compliance with regulatory requirements. China in terms of labelling:

Apple told suppliers on Friday that China has begun to strictly enforce a long-standing rule that Taiwan-made parts and components must be labeled as being made in “Taiwan, China” or “Chinese Taipei,” sources familiar with the company said. matter to Nikkei Asia. , language that indicates that the island belongs to China…

Using the phrase “Made in Taiwan” on import declaration forms, documents or boxes could result in shipments being held and checked by Chinese customs, the sources added. Penalties for violating such a rule include a fine of up to 4,000 yuan ($592) or, in the worst-case scenario, denial of the shipment, one of the sources said.

However, this poses a dilemma for suppliers who need to ship materials, components or parts from Taiwan to China, as the democratically governed island also requires that all exports be labeled with the product of origin, meaning they contain the words “Taiwan” or “Republic of China”, the official name of the island, according to suppliers and logistics companies.

It is not a hypothetical problem, but rather a problem that is already occurring. Shipments from Taiwan to facilities operated by Pegatron, an iPhone assembler, in Suzhou, China, were “held for review” on Thursday, while Chinese officials inspected import declaration forms and boxes to determine whether they were labeled “Taiwan” or “Republic of the Republic of China”. China” wore. Nikkei Asia reports that.

A senior executive of Pegatron was one of Taiwan’s chip industry business leaders who attended the luncheon with Pelosi hosted by Taiwan’s president Tsai Ing-wen On Wednesday, the report noted, perhaps highlighting yet another reason why the company came under heightened scrutiny.

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