Apple asks suppliers to comply with China's customs rules, not use 'Made in Taiwan' labels

Apple has told its suppliers to follow the rules of Chinese customs regulations concerning shipments from Taiwan to China amid the heightened tensions between both the countries. The US-based company told its suppliers that China has started implementing a long-standing rule which calls for parts and components made in Taiwan to be labelled as being made in "Taiwan, China" or "Chinese Taipei," Nikkei Asia reported citing sources familiar with the matter. Apple has asked the suppliers to follow the rules with urgency to avoid disruption of shipments. 

Apple has reportedly called on its suppliers to create plans or review and amend their labels on cartons and forms for shipments from Taiwan to China if required. The sources told the media outlet that mentioning "Made in Taiwan" on import declaration forms, documents or cartons could result in shipments being held or checked by Chinese customs authorities. One of the sources claimed that a fine of up to 4,000 yuan (Rs 46,972.73) will be imposed for violating the rule or the shipments being rejected by the authorities, as per the Nikkei Asia report. The rule regarding labels on cartons from Taiwan to China comes at a time when suppliers of Apple were working on components for its next iPhones and other products that will be launched in autumn this year. 

iPhone assembler Pegatron's facilities held for review 

Apple has taken the decision after shipments from Taiwan to one of iPhone assembler Pegatron's facilities in China were held for review on Thursday, 4 August, to check if the import declarations or cartons were labelled with "Taiwan or Republic of China." The shipments to Pegatron's Suzhou facility were checked a day after a senior Pegatron executive and other Taiwanese chip leaders met with US House of Representatives Speaker Nancy Pelosi at a lunch hosted by Taiwan President Tsai Ing-wen.

Notably, China considers Taiwan part of its territory and even expressed anger over Pelosi's visit to Taiwan. Meanwhile, China has also suspended some fruits and fish imports from Taiwan and exports of natural sand to the island, CNN reported. China's Taiwan Affairs Office announced that it would suspend imports of grapefruit, lemons and other citrus fruits from Taiwan. Chinese Customs officials have said that the decision regarding the import of citrus fruits has been taken for "pest control" and "excessive pesticide residues," as per the CNN news report Furthermore, Chinese Customs officials cited "Covid prevention" for the suspension of seafood imports. 

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