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The EU has discovered that China-made solar product, bike, and fastener are falsified as Taiwan-made and transshipped through Taiwan Free Trade Zone to evade from EU's tariff. The Ministry of Economic Affairs announced on July 30, "In order to protect the rights of our legal companies, the 3 types of products mentioned above are mandated to acquire the permission from Bureau of Foreign Trade to be exported through the Free Trade Zone."

The EU uncovered that China-made solar products were falsified and transshipped via Taiwan Free Trade Zone to evade from AD tax and balance tax; therefore, on May 29 EU announced it would start a circumvention investigation on solar products in Taiwan. OLAF was in charge of circumvention investigation on fasteners and bikes, in which it also discovered partial China-made products transshipped via Taiwan Free Trade Zone.

To restrain illicit companies from damaging the real Taiwan-made solar product, bike, and fasteners. The Ministry of Economic Affairs says it will have a discussion with Ministry of Transportation & Communications as well as Ministry of Finance to enhance the management over Free Trade Zone. Meanwhile, to prevent falsified China-made products, Bureau of Foreign Trade has enhanced its measures on Certificate of Origin, including the following:

(1) Factory registration certificate and Letter of Guarantee (which proves the product is Taiwan-made) must be attached upon applying for Certificate of Origin.

(2) The Certificate of Origin must include the number of container.

(3) The auditor are mandated to audit and give Certificate of Origin deliberately. Customs Administration is required to do a further check on potentially illicit companies.

This July the Bureau of Foreign Trade sent inspectors to check on the auditors and punished illicit auditors that did not abide by the right procedure. According to the Law of Trade, the illicit auditors will be deprived of audit rights for a year. The companies with falsified Certificate of Origin will be deprived of their registration certificate of trader. In the future the authorities will continue to crack down on illicit actions and send them for prosecution.