Taiwan is hitting exporters that fake Taiwanese origin with heavy fines, bad news for firms using the island to dodge US tariffs on Chinese goods but good for legitimate Taiwanese manufacturers.

• Companies caught labelling non-Taiwanese goods as "Made in Taiwan" for export to the US now get fined the equivalent of roughly $20,000 on the first offence.
• Customs has referred hundreds of suspected mislabelling cases since setting up a special inspection team last year, and about 250 have already been penalised.
• The law allows fines up to five times higher, and serious offenders can lose their import-export licence altogether.
• Exporters shipping to the US must now sign sworn statements about where goods really come from, and faking that can bring criminal charges.
• Taiwan has also switched its whistleblower programme from handing out certificates to paying cash, with new protections for informants.

Outlook: Expect more enforcement and more referrals as US tariffs keep pushing Chinese goods to look for a friendlier passport.