On May 29, 2025, Taiwan’s Customs Administration amended and promulgated the Standards for Reduction of Penalties in Customs Anti-Smuggling Cases (the “Standards”), thereby closing a loophole that had provided insufficient protection for IP rights.
Under the prior Standards, any person who illegally imported or exported goods, or who bought or sold such goods, could be exempted from a fine if the value of the goods did not exceed NT$5,000. The original penalty consisted of confiscation of the goods and a fine of up to three times their value.
By contrast, when import or export goods infringing IP rights were declared, the responsible actor (primarily consignees or other purchasers, under the Customs Administration’s interpretation) was subject to confiscation of the goods and a fine of up to three times their value, with no exemption or reduction available.
As a result, the previous Standards were not only inadequate for IP protection but also created a disparity in severity: in cases involving the declaration of infringing or counterfeit goods, no exemption was available, whereas in cases involving illegally importing or exporting of such goods, exemption could apply.
The amendment resolves this inconsistency. Article 4 of the revised Standards now explicitly provides that illegally imported/exported goods which infringe a patent, trademark, or copyright shall not be eligible for reduction of Customs penalties, regardless of their value.
It is further worth noting that, under Taiwan’s Administrative Penalty Act, the Customs penalties may still be imposed even if the person responsible for importing, exporting, or declaring infringing goods does not bear criminal liability due to lack of intent or other reasons.