Apple fears iPhone production disruptions

by nativetechdoctor
2 minutes read

Increased customs checks on imports from Taiwan customs Chinese are stoking fears of disruption for the iPhone maker.

Nikkei, citing people familiar with the matter, said that Apple on Thursday warned suppliers that China has begun to strictly enforce a longstanding rule for technology made in Taiwan. They must be labeled “Taiwan, China” (Taiwan, China) or “Chinese Taipei” (Chinese Taipei).

Apple urges suppliers to handle the matter urgently to avoid possible disruptions, as goods and components are held for surveillance. This is a sensitive time for Apple as the company’s suppliers are preparing components to be included in the iPhone 14, as well as other new products expected to launch this fall.

The sources also added that using the phrase “Made in Taiwan” on any import declaration, document or carton has the potential to cause the shipment to be detained and inspected by Chinese customs. According to one of the sources familiar with the matter, violating the regulations could result in a fine of up to 4,000 yuan (about US$592), or in the worst case scenario, the shipment would be refused entry to the mainland.

The above regulation poses a dilemma for suppliers who need to ship materials, components or parts from Taiwan to China. The reason is that Taiwan also requires all exports to be labeled with the place of origin, meaning that they must bear the words “Taiwan” or “Republic of China”, the name official territory.

Apple’s warning comes after shipments from Taiwan to one of Pegatron’s iPhone assembler facilities in China were held up for review on August 4, just a day after the Speaker of the House of Representatives. US Nancy Pelosi visits Taiwan.

In order to avoid additional shipping chaos and supply chain , the US technology company has also asked suppliers to make contingency plans, or quickly review and modify labels for shipments from Taiwan to China if needed.

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