By keira Lo    Photo：CANVA

When discussing cross-strait trade, a common question arises:
What “tariff rules” does Taiwan use to block imports from China?

The answer is somewhat counterintuitive. Taiwan does not primarily rely on high tariffs. Instead, it uses import regulations to determine whether a product can enter the market at all.

This article explains the relationship between import bans and HS Codes in simple terms, including a practical example such as screws and fasteners.

1. Key Concept: Not High Tariffs, but Direct Prohibition

In most international trade systems, countries use tariffs to protect domestic industries. Higher tariffs increase import costs, while lower tariffs signal a more open market.

Taiwan takes a different approach toward Chinese goods.

Under the Act Governing Relations between the People of the Taiwan Area and the Mainland Area, the government adopts a system where “what is not opened is considered prohibited.”

In other words, instead of imposing very high tariffs, Taiwan simply does not allow certain products to be imported.

2. Are HS Codes Still Relevant?

Yes, and they remain essential.

Every product in international trade is assigned an HS Code. Taiwan follows this system as well. However, it adds an additional layer: each code is accompanied by an import regulation status.

The most important designation is:

MW0, which means “import prohibited.”

If a product’s HS Code is marked as MW0, it means that product is completely prohibited from being imported from China. This effectively forms the actual “ban list.”

3. Major Categories of Restricted HS Codes

Although there is no single standalone prohibition list, several sectors remain heavily restricted in practice.

The first category is agricultural products, which are the most strictly protected. Staple goods such as rice (HS 1006) and wheat (HS 1001) are almost entirely banned. Fresh fruits such as apples and pears (HS 0808), citrus (HS 0805), and bananas (HS 0803) are also largely restricted. Vegetables like onions and garlic (HS 0703) and other vegetables (HS 0709), along with meat products including beef, pork, and poultry (HS 0201 to 0207), are mostly prohibited. These restrictions are driven by both industry protection and biosecurity concerns.

The second category is textiles and garments, including knitted apparel (HS 6101 to 6117) and non-knitted apparel (HS 6201 to 6217). Some low-cost items remain restricted to protect local small and medium-sized enterprises.

The third category is footwear, covering HS 6401 to 6405, where certain subcategories are still restricted.

The fourth category includes furniture and construction materials, such as furniture (HS 9403), wooden building materials (HS 4418), stone products (HS 6802), and cement products (HS 6810).

The fifth category is steel products, including steel plates (HS 7208 to 7212) and steel pipes (HS 7306), where restrictions often apply to specific specifications.

The sixth category involves basic industrial goods such as screws and fasteners. Under HS 7318, which includes screws, bolts, and nuts, not all items are freely importable. In practice, some products are allowed, particularly for industrial use, while certain low-cost or specific types have been restricted or subject to anti-dumping measures. This reflects Taiwan’s position as a major global exporter of fasteners and the need to mitigate the impact of low-priced imports from China.

4. How the Institutional Framework Actually Works

Whether a product can be imported depends on whether its HS Code is included in the approved import list, not on the tariff rate.

In other words, tariffs are not the deciding factor. Administrative controls are.

5. Why Use Prohibition Instead of Tariffs?

There are three main reasons.

First, it is more effective. High tariffs may still allow imports, but prohibition completely blocks them.

Second, it provides flexibility. The government can quickly adjust which products are allowed or restricted based on changing circumstances.

Third, the system reflects a unique legal and political framework. Cross-strait trade is not treated as standard international trade but is governed by special regulations.

Currently, more than two thousand HS Codes are subject to restrictions or prohibitions. These span dozens of sectors but are concentrated in agriculture, traditional manufacturing, and basic industrial goods such as steel and fasteners.

6. Conclusion

Taiwan does not block Chinese goods through tariffs. Instead, it uses a list-based system to determine whether products are allowed to enter.

The so-called “prohibited tariff items” are, in essence, all HS Codes marked with MW0.

Ultimately, whether a product can be imported is not about how high the tariff is, but whether the government allows it in the first place.

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