Comply with China Label regulations

Written by Javed Iqbal

Apple iPhone 13 on display in the Apple Store

Dan Kitwood/Getty Images

With China’s communist government still acting very stingy in the wake of the Speaker of Parliament Nancy Pelosi recent visit to TaiwanApple encourages its suppliers to ensure that all shipments from Taiwan to China are labeled in strict accordance 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 Nikkei AsiaPelosi’s visit “raised fears of rising trade barriers,” leaving Apple nervous about “possible disruption” if important shipments are delayed or even blocked at customs due to failure to satisfy China’s labeling requirements:

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

Using the term “Made in Taiwan” on any import declaration form, documents or cartons could cause shipments to be detained and checked by Chinese customs, the sources added. The penalty for violating such a rule is a fine of up to 4,000 yuan ($592) or, at worst, the shipment being rejected, one of the sources said.

However, this presents a dilemma for suppliers who need to ship materials, components or parts from Taiwan to China, as the democratically-ruled island also requests that all exports be labeled with product of origin, meaning they must bear the words “Taiwan” or ” Republic of China,” the island’s official name, according to suppliers and logistics companies.

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

A senior Pegatron executive was among several executives in Taiwan’s chip industry who attended the lunch with Pelosi, who hosted the Taiwanese president. Tsai Ing-wen Wednesday, the report noted, perhaps highlights another reason the company found itself under increased scrutiny.

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Javed Iqbal

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