Taiwan Offers Up to NT$4.8 Million Reward to Block Chinese 'Origin Washing'

Taiwan is implementing stricter measures to prevent Chinese and third-country goods from being falsely labeled as Taiwanese-made, a practice known as 'origin washing,' which undermines the 'Made in Taiwan' (MIT) brand and harms the nation's trade interests. The Ministry of Economic Affairs recently announced amendments to the "Regulations Governing the Handling and Rewards for Whistleblower Complaints of False Origin Labeling in Imports and Exports."

Under the revised regulations, individuals who report instances of false origin labeling will be eligible for cash rewards. Whistleblowers can receive up to 20% of the actual fine collected from the offending party. However, the total amount of whistleblower rewards an individual can receive in a single year is capped at NT$1.8 million. For cases involving joint reporting by multiple individuals, the reward will be distributed equally among them. The new system also enhances whistleblower protection by mandating that complaint materials be kept confidential, preventing third parties from accessing or copying them.

In parallel, the Ministry of Finance has introduced its own incentive program to combat origin fraud within free trade zones. The Ministry of Finance announced in September 2025 that it would offer rewards of up to NT$4.8 million per case. This reward is contingent upon the whistleblower providing concrete evidence that leads customs to uncover goods involved in origin fraud within a free trade port area.

These initiatives aim to bolster Taiwan's efforts to prevent goods from China and other regions from being rerouted through Taiwan and relabeled as Taiwanese to gain preferential access to markets like the United States. Between April 1, 2025, and May 17, 2026, customs authorities inspected 36,273 shipments destined for the U.S. and identified 354 cases of suspected irregular transshipment from both taxed and bonded areas, which were subsequently transferred to the Ministry of Economic Affairs for adjudication. Of these, 200 cases have resulted in fines totaling NT$46.43 million.