Do you know what kind of Taiwan processing can legally avoid Trump tariffs? "Substantial transformation" is the way for cross-border e-commerce sellers to survive!

Do you know what kind of Taiwan processing can legally avoid Trump tariffs? Simply changing packaging and labeling won't work! Only products that have undergone "substantial transformation" can be legally labeled as "Made in Taiwan" and safely exported to the global market!

After Trump took office recently, he has launched waves of policies on tariffs, making cross-border overseas sellers and Amazon brand sellers fearful. The original 10% "reciprocal tariff" was later turned into 32%, and then it was said to be suspended for 90 days... This kind of wavering policy has caused many importers and traders to start looking for a countermeasure.

In order to reduce the risk and save the cost of customs duty, for example, some cross-border e-commerce sellers began to think of "re-export" or "laundering" to avoid the high customs duty. However, this will not only fail to solve the problem, but may also step on the legal red line!

The so-called "origin laundering" means that goods from China or other high-tariff countries are imported into Taiwan and then simply processed, such as changing the packaging, labeling, or simple assembly, and then exported with the "Made in Taiwan" label. This is far more risky than doing business legally! Once detected, not only will the goods be returned or confiscated, but they may also be fined, and in serious cases, criminally liable!

The biggest problem is that many people do not understand what constitutes a "legitimate" Made in Taiwan product. In order for imported goods to be processed and made in Taiwan, they must be "physically transformed," and there are two main ways to do this:

1. Change in HS Code: The first 6 codes of the HS Code for processed products are different from those of raw materials.
   Example: China imports "plastic pellets" (HS 3907.60) → Taiwan processes into "cell phone cases" (HS 3926.90).
   Flour" imported from Japan (HS 1101.00) → processed into "sweet biscuits" from Taiwan (HS 1905.31)
2. Value added of 35% or more: If the tax code number remains unchanged, but the value added of processing exceeds 35%.
   Calculation: (FOB export price - CIF import cost of raw materials) ÷ FOB export price
   For example, the cost of imported raw material is $100, the export price is $180, and the added value is 44.4%, which meets the standard!

In addition, if the product processing meets the "Specific Important Manufacturing Processes" announced by the Bureau of International Trade, Ministry of Economic Affairs, it can also be considered as the completion of substantial transformation.

Instead of simple labeling, packaging changes, marking, grading, simple assembly, etc., these are just "simple treatments" and cannot be recognized as made in Taiwan!

If you are not sure whether your processing process meets the requirements, the safest way is to apply for a "Pre-approval of Place of Origin" from the Bureau of Trade and Industry (BTI). The competent authority will determine in advance whether the place of origin of your goods is in compliance with the regulations, and after the pre-approval, you will be able to ship your goods without fear of being subjected to tax inspections or refunds.

What will really help you in the cross-border e-commerce field in the long run is always a legal and compliant way of operation. Don't joke about origin labeling, it's the legal approach that will help you in the long run!

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# Cross-border E-commerce Seller # Made in Taiwan # Substantial Transformation # Rules of Origin # Amazon Seller # Trump Tariffs # Compliance # Cross-border Exporter