Apple asks suppliers to follow China customs rules, Nikkei reports

The Apple Inc logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File Photo

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Aug 5 (Reuters) — Apple Inc (AAPL.O) has asked suppliers to ensure that shipments from Taiwan to China comply with the latter’s customs regulations to avoid them from being held for scrutiny, according to a Nikkei report on Friday.

Sino-U.S. trade tensions have escalated following U.S. House of Representatives Speaker Nancy Pelosi and a congressional delegation’s visit to Taiwan.

The iPhone maker told suppliers that China had started enforcing a long-standing rule that Taiwanese-made parts and components must be labeled as made either in «Taiwan, China» or «Chinese Taipei», the report added, citing sources familiar with the matter.

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Apple did not immediately respond to a Reuters request for comment.

Apple iPhone assembler Pegatron Corp (4938.TW) said its mainland China plant is operating normally, in response to a media report that shipments to Pegatron’s factory in China were being held for scrutiny by Chinese customs officials. read more

Taiwanese supply and assembly partners Foxconn (2317.TW) and Pegatron are ramping up manufacturing efforts as Apple is set to launch its new iPhone in September.

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Reporting by Tiyashi Datta in Bengaluru; Editing by Vinay Dwivedi

Our Standards: The Thomson Reuters Trust Principles.

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