A large electronics manufacturer was searched in Taiwan: they are suspected of disguising the Chinese origin of goods

Taiwan prosecutors have raided the offices of circuit board manufacturer Unimicron Technology. The company is suspected of mislabeling some of its products, which were actually made in China, as Taiwanese.

The raids were carried out at two of the company’s offices as part of an investigation into alleged mislabeling of the origin of its products, Reuters reported, citing the Taoyuan City Prosecutors’ Office.

The officers also questioned 18 suspects and witnesses.

According to the investigation, the items involved were printed circuit boards made in China that were falsely labeled as Taiwanese.

The prosecutors’ office is investigating possible violations of the law and forgery of relevant documentation.

Unimicron said it was cooperating with the investigation

Unimicron Technology confirmed the raids at its offices.

In a filing with the Taiwan Stock Exchange, the company said it would fully cooperate with the prosecutors’ office during the investigation.

The company has not provided any other details about the case.

Why Taiwan is fighting “origin masking”

Taiwanese authorities are stepping up their fight against schemes in which products manufactured in China or other countries are presented as Taiwanese.

Such “origin masking” can be used to obtain more favorable tariff treatment and avoid higher duties during exports.

This issue has become especially relevant against the backdrop of trade restrictions on Chinese products.

According to White House estimates, the United States may lose $19 billion to $26 billion in customs revenue each year due to goods, mostly of Chinese origin, being shipped through third countries to circumvent US import tariffs.

The investigation into Unimicron is to determine whether false labeling of product origin was used and who may have been involved in the relevant scheme.