Taiwan Tax Review for Small Parcel Exemptions Amidst Concerns Over Illegal Chinese Goods Transfers
14 April 2025 路 Uncategorized 路
Source: 路 https://finance.technews.tw/2025/04/10/small-packages-tax-free-may-canceled/
The U.S. decision to impose import tariffs on low-value parcels from China has raised concerns, prompting the Ministry of Finance (MOF) to consider adjustments to its tax exemption policy for small packages. A MOF official revealed that increased tariff rates in the United States鈥攏ow ranging from 30% to 90% on Chinese imports valued under $800鈥攃ould lead to an increase in illegally transferred goods through Taiwan, potentially creating unfair competition and distorting domestic manufacturing industries.
During a special report titled 'Impact and Response Measures Regarding Trump鈥檚 Reciprocal Tariff Policy Implementation' presented today at the Legislative Yuan Financial Affairs Committee, Democratic Progressive Party legislator Wu Bing-yue questioned whether the current tax exemption system for small parcels needed adjustment to mitigate its potential impact on local manufacturers. This policy took effect in May and applies to both China and Hong Kong.
Minister of Finance Tsang Chui-wun noted that over 50% of Taiwan鈥檚 imported sea freight packages originate from China, emphasizing the need for careful consideration before any changes are made regarding the NT$2,000 tax exemption threshold. The Ministry is currently analyzing data to inform its decision-making process.
The official further stated that adjustments were being considered in response to public concerns about unfair competition and market distortion resulting from U.S. tariffs on low-value Chinese goods potentially incentivizing illegal transfers through Taiwan.
Regarding potential changes to the tax exemption policy, officials indicated they are still deliberating and will continue monitoring international trends before conducting a cross-ministry assessment. To prevent such illicit activities, measures like the EZWAY real-name system have been implemented, alongside the formation of 'Enhanced Illegal Transfer Verification Teams.'
Minister Tsang underscored that MOF is highly concerned about illegal transfer issues and has adopted three preventative strategies: proactive prevention, stringent inspections during transit, and severe penalties upon detection. These include requiring export permits or origin certificates for high-risk goods; screening data from customs authorities on high-risk companies; system-wide automatic comparisons between exporters and product names; rigorous checks of labels and origins within factories/warehouses; and imposing fines up to NT$3 million in cases of violation.
(Writer: Chang Ai)
During a special report titled 'Impact and Response Measures Regarding Trump鈥檚 Reciprocal Tariff Policy Implementation' presented today at the Legislative Yuan Financial Affairs Committee, Democratic Progressive Party legislator Wu Bing-yue questioned whether the current tax exemption system for small parcels needed adjustment to mitigate its potential impact on local manufacturers. This policy took effect in May and applies to both China and Hong Kong.
Minister of Finance Tsang Chui-wun noted that over 50% of Taiwan鈥檚 imported sea freight packages originate from China, emphasizing the need for careful consideration before any changes are made regarding the NT$2,000 tax exemption threshold. The Ministry is currently analyzing data to inform its decision-making process.
The official further stated that adjustments were being considered in response to public concerns about unfair competition and market distortion resulting from U.S. tariffs on low-value Chinese goods potentially incentivizing illegal transfers through Taiwan.
Regarding potential changes to the tax exemption policy, officials indicated they are still deliberating and will continue monitoring international trends before conducting a cross-ministry assessment. To prevent such illicit activities, measures like the EZWAY real-name system have been implemented, alongside the formation of 'Enhanced Illegal Transfer Verification Teams.'
Minister Tsang underscored that MOF is highly concerned about illegal transfer issues and has adopted three preventative strategies: proactive prevention, stringent inspections during transit, and severe penalties upon detection. These include requiring export permits or origin certificates for high-risk goods; screening data from customs authorities on high-risk companies; system-wide automatic comparisons between exporters and product names; rigorous checks of labels and origins within factories/warehouses; and imposing fines up to NT$3 million in cases of violation.
(Writer: Chang Ai)