Apple has asked suppliers to ensure that shipments from Taiwan to China strictly comply with Chinese customs regulations after a recent visit by U.S. House Speaker Nancy Pelosi to Taiwan stoked fears of rising trade barriers.
Cheng Ting-Fang and Lauly Li for Nikkei Asia:
Apple told suppliers on Friday that China has started strictly enforcing a long-standing rule that Taiwanese-made parts and components must be labeled as being made either in “Taiwan, China” or “Chinese Taipei,” sources familiar with the matter told Nikkei Asia, language that indicates the island is part of China.
The U.S. tech titan urged suppliers to treat the matter with urgency to avoid possible disruptions caused by goods and components being held for scrutiny, the people said.
Using the phrase “Made in Taiwan” on any import declaration forms, documents or cartons could cause shipments to be held and checked by Chinese customs, the sources added. Penalties for violating such a rule is a fine of up to 4,000 yuan ($592) or, in the worst-case scenario, the shipment being rejected, one of the sources said.
Apple’s warning comes after shipments from Taiwan to one of iPhone assembler Pegatron’s facilities in China were held for review on Thursday to see if the import declaration form or cartons are labeled with “Taiwan” or “Republic of China.”
Beijing has long viewed Taiwan as a part of its territory and is strongly opposed to senior U.S. officials such as House Speaker Pelosi making formal diplomatic visits to the island.