Some iPhone components were held to see if the labeling complied with China’s policy, Nikkei reported.
According to reports, Apple has asked its suppliers to ensure that shipments going from Taiwan to China strictly comply with Chinese customs regulations – particularly a long-standing policy that Taiwanese-made parts and components must be labeled as being made in “Taiwan, China” or “Chinese Taipei,” sources familiar with the matter told Nikkei Asia.
According to Nikkei:
The U.S. tech titan urged suppliers to treat the matter with urgency to avoid possible disruptions caused by goods and components being held for scrutiny, the people said.
The timing is sensitive for Apple, as its suppliers are preparing components that will go into its next iPhones and other new products set to launch this autumn.
Using the phrase “Made in Taiwan” on any import declaration forms, documents or cartons could cause shipments to be held and checked by Chinese customs, the sources added. Penalties for violating such a rule is a fine of up to 4,000 yuan ($592) or, in the worst-case scenario, the shipment being rejected, one of the sources said.
The emphasis of customs restrictions has been instituted following the controversial visit of US lawmaker Nancy Pelosi visit the Taiwan capital earlier in August, which was viewed none-to-highly by Beijing.
This isn’t the first time Apple has backpedaled on its handling of the China-Taiwan relationship. In 2019, the tech giant removed the emoji of the Taiwan flag for users in China and Hong Kong.