You'll never guess! How can "property laundering" get your cross-border e-commerce account blocked? The truth about Taiwan manufacturing under Trump's new tariff policy!

You'll never guess! After Trump took office recently, he has launched wave after wave of policies on tariffs, making cross-border e-commerce sellers fearful! The original 10% "reciprocal tariff" was later turned into 32%, and then suspended for 90 days... This kind of wavering policy has left many Taiwanese sellers and importers searching for a countermeasure.

But beware! In order to reduce the risk and save the cost of customs duty, some cross-border newbie sellers start to think of "re-export" or "laundering" to avoid the high customs duty. 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 under the "Made in Taiwan" label. This is far more risky than you might think! Once detected, not only will the goods be returned or confiscated, but they may also be fined, and in serious cases, even criminally liable!

The biggest problem is that many people don't understand what constitutes a "legal" Made in Taiwan product. In order for imported goods to be legally transformed into Taiwan-made products, a "physical transformation" must be completed, 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).
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

Instead of simply sticking labels, changing packaging, and simply assembling these behaviors, these are all "simple treatments" that cannot be recognized as made in Taiwan!

If you are not sure whether your processing process meets the "Made in Taiwan" standard, the safest way is to apply for a "Pre-approval of Place of Origin" from the Bureau of Foreign Trade (BFT). The competent authority will determine in advance whether your goods' place of origin complies with the regulations, and after the pre-approval, you will be able to ship your goods with no fear of being subjected to tax checks or returns.

What really helps you to stabilize your business in the long run is always the legal and compliant way of operation. Don't joke about origin labeling, legal practice is the long-term plan for cross-border e-commerce!

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# Cross-border E-commerce Sellers # Rules of Origin # Made in Taiwan # Tariff Policies # Amazon Sellers # Compliance # Cross-border Exporters # Trump Tariffs