Apple Warns Suppliers to Comply to China’s ‘Taiwan’ Labeling Regulations

After Nancy Pelosi’s recent visit to Taipei fueled fears of rising trade barriers, Apple has urged suppliers to verify that shipments from Taiwan to China properly adhere to Chinese customs procedures.

Several sources tell that Apple informed suppliers on Friday that China has started enforcing a long-standing rule that Taiwan-made parts and components must be labeled either “Taiwan, China” or “Chinese Taipei,” which indicates the island is part of China.

Suppliers have been advised by the US tech giant to act quickly to avoid possible delays caused by items and components being detained for investigation, according to the sources.

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Apple’s suppliers are putting the finishing touches on components that will be used in the company’s upcoming iPhones and other devices, which are expected to be released in the fall.

Customs officials in China may detain shipments with the words “Made in Taiwan” on import declaration forms, paperwork, or cartons, according to the sources. According to one of the sources, breaking this restriction could result in a fine of up to 4,000 yuan ($592) or even the rejection of the shipment.

Taiwan’s democratically governed island demands that all exports be labeled with 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. This presents a dilemma for suppliers who need to ship materials, components, or parts from Taiwan to China.

Apple issued the warning after import declaration forms and cartons from Taiwan bound for one of Pegatron’s Chinese sites for iPhone assembly were detained for examination on Thursday. House Speaker Nancy Pelosi’s travel to Taiwan is a direct challenge to Beijing’s long-held belief that Taiwan is part of its territory.

Apple has also instructed suppliers to prepare contingency plans or quickly evaluate and alter their labels on cartons and forms for shipments from Taiwan to China, if necessary, the sources said.

A top Pegatron executive and several Taiwanese chip sector representatives met with Pelosi in Taipei the day before the intensified inspection of shipments to Pegatron’s Suzhou factory. Stay tuned with us only on Lee Daily

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