Ministry to Raise MIT Value-Add Threshold to Counter China's Labeling Practices
26 April 2025 路 Uncategorized 路
Source: 路 https://finance.technews.tw/2025/04/23/mit-rate-will-rise/
Result
To prepare for upcoming US-Taiwan tariff negotiations, Minister of Economics Kuo Chih-hui announced that future automotive products will adhere to electronics and telecommunications standards, effectively excluding Chinese supply chains. Furthermore, the existing requirement for goods to have a 35% value-add in Taiwan to qualify as "Made in Taiwan" (MIT) is expected to be strengthened.
During a hearing at the Legislative Yuan鈥檚 Economic Committee, Democratic Progressive Party Legislator Zhong Jiabin expressed concerns about China potentially circumventing regulations by using third countries, such as Vietnam, to export products falsely labeled as Taiwanese. Kuo Chih-hui and Deputy Minister Chang Shou-hui stated that mechanisms are in place to prevent such circumvention and emphasized that current regulations mandate a 35% value-add in Taiwan. However, they acknowledged the potential for grey areas where components originating from China could still exceed this threshold.
Legislator Zhong Jiabin proposed stricter measures, including limiting Chinese components to no more than 35% for products claiming to be Made in Taiwan. Minister Kuo agreed with this suggestion, confirming that the economic ministry is actively working to exclude Chinese supply chains and that future regulations may further tighten these requirements.
Regarding Zhong鈥檚 suggestion to increase incentives for reporting false labeling, Minister Kuo proposed allocating half of the penalties collected from violators as rewards for whistleblowers.
To prepare for upcoming US-Taiwan tariff negotiations, Minister of Economics Kuo Chih-hui announced that future automotive products will adhere to electronics and telecommunications standards, effectively excluding Chinese supply chains. Furthermore, the existing requirement for goods to have a 35% value-add in Taiwan to qualify as "Made in Taiwan" (MIT) is expected to be strengthened.
During a hearing at the Legislative Yuan鈥檚 Economic Committee, Democratic Progressive Party Legislator Zhong Jiabin expressed concerns about China potentially circumventing regulations by using third countries, such as Vietnam, to export products falsely labeled as Taiwanese. Kuo Chih-hui and Deputy Minister Chang Shou-hui stated that mechanisms are in place to prevent such circumvention and emphasized that current regulations mandate a 35% value-add in Taiwan. However, they acknowledged the potential for grey areas where components originating from China could still exceed this threshold.
Legislator Zhong Jiabin proposed stricter measures, including limiting Chinese components to no more than 35% for products claiming to be Made in Taiwan. Minister Kuo agreed with this suggestion, confirming that the economic ministry is actively working to exclude Chinese supply chains and that future regulations may further tighten these requirements.
Regarding Zhong鈥檚 suggestion to increase incentives for reporting false labeling, Minister Kuo proposed allocating half of the penalties collected from violators as rewards for whistleblowers.