 2013-04-16 |
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Reporter Hui-Wen Chang / Taipei Report In response to the Ministry of Economic Affairs' continued opening of imports for paper tapes from China, Li Chih-Hsien, Chairman of YC (4306) and President of the Adhesive Tape Association, expressed his frustration. He criticized the fact that Taiwan's paper tape exports to China face high tariffs (7.5%), while paper tapes imported from China into Taiwan are subject to zero tariffs. He described this as an "unequal treaty" and lamented the lack of any accompanying measures from the government. This policy, implemented on April 11, is expected to severely impact domestic sales for industry players.
YC Group reported revenue of NT$1.858 billion in March, a 60.14% month-over-month increase. The company has been continuously integrating its industry chain and expanding its business into Taiwan, China, and Vietnam, with expectations to see revenue contributions starting in the third quarter.
In the wake of this significant revenue jump, the Ministry of Economic Affairs announced the opening of imports for paper tapes from China. Li Chih-Hsien criticized the decision, stating that the ministry had not consulted with the association beforehand and had made the announcement without considering the protests from the adhesive tape industry, leading to significant impacts on domestic sales.
Li Chih-Hsien noted that domestic tape manufacturers have been self-reliant for years. Among the 37 member companies, which had a combined output value of NT$30 billion last year, they held a 90% market share. Due to recent environmental changes, the industry has shifted from domestic sales to international exports, with export volume now representing over 70% of production, primarily in film tapes.
For paper tapes, the domestic production value was NT$7.9 billion last year, with demand around NT$7 billion. Imports from abroad amounted to NT$660 million, while exports were about NT$1 billion. The main issue for export competitiveness is that most raw material suppliers are located in China, where costs are lower. In contrast, Taiwan's raw material imports incur tariffs, creating a cost disparity. Now, with zero tariffs on Chinese products entering Taiwan and a 7.5% tariff plus 17% VAT on Taiwanese exports to China, the barriers are too high for Taiwanese products to compete in the Chinese market. |
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