iPhone 14 launch: Apple wants suppliers to follow these China rules on labeling

Apple has issued an urgent warning to its suppliers. According to a report in Nikkei Asia, the iPhone maker has asked its suppliers to ensure that shipments from Taiwan to China strictly comply with Chinese customs regulations. The important note to suppliers comes after a recent visit by US lawmaker and House Speaker Nancy Pelosi to Taiwan created tensions between US and China, leading to rising trade barriers. China has long regarded Taiwan as a part of its territory and strongly opposed Pelosi’s formal diplomatic visit to the island.

The report claims that Apple told suppliers that Taiwanese-made parts and components must be labeled as being made either in “Taiwan, China” or “Chinese Taipei,” language that indicates the island is part of China. This has been a longstanding China rule and the country has started strictly enforcing it after Pelosi’s visit to Taipei. Using the phrase ‘Made in Taiwan’ on any import declaration forms, documents or cartons may result in shipments to be held and checked by Chinese customs. Violating these rules can also lead to fines of up to 4,000 yuan ($592) and in the worst-case scenario being rejected. As per the report, Apple’s warning comes after shipments from Taiwan to one of iPhone assembler Pegatron’s facilities in China were held for review to check if the import declaration form and cartons are labeled with “Taiwan” or “Republic of China.”
Time critical for Apple
Apple has urged the suppliers to treat the matter with urgency to avoid any possible disruptions to its supply chain. The timing is especially sensitive for Apple considering the upcoming launch of iPhone 14 in September. Any disruption in component supplies has the potential to derail the launch of the next iPhones and other new products set to launch next month.
Apple has also reportedly told suppliers to make a contingency plan or quickly review and amend their labels on cartons and forms for shipments from Taiwan to China, if required.