Taiwan's Bi-Ang faked 'Made in USA' labels on skincare for 8 years — NT$1.3B in sales

Bi-Ang International was the Taiwan distributor of DERM iNSTITUTE (得英特), a US skincare brand. From 2009 the company imported the products from the United States and sold them to Taiwanese consumers. But around 2015, Bi-Ang stopped importing and instead commissioned Taiwanese biotech factories — including Hekang (和康) and TCI (大江生醫) — to manufacture the products locally. The company continued to use bottles and packaging printed with 'DERM iNSTITUTE' and 'Made in USA,' selling them at full import-brand prices.

The scheme lasted approximately eight years. By the time it was uncovered, Bi-Ang had sold tens of thousands of units with total sales exceeding NT$1.3 billion. The Taipei District Prosecutors Office raided the company in July 2023, seizing 17 cases of products. On May 15, 2026, prosecutors indicted former CEO Lin Yu-ting and sales manager Chen Xiao-zhen under Article 255 of the Criminal Code for false marking of goods. Lin denied the charges; Chen admitted that the company had stopped ordering from the US by 2015 or 2016 and asked the court for a lighter sentence.

The case exposed a vulnerability in the skincare distribution model: a brand that relies on a local distributor loses control over its supply chain, manufacturing, and quality claims. DERM iNSTITUTE's reputation in Taiwan was destroyed by actions its distributor took without the brand's knowledge.

Kept 'Made in USA' labels on locally made skincare to sustain premium pricing, totaling NT$1.3B in sales before indictment.

Bi-Ang chose to manufacture locally rather than import, but kept the 'Made in USA' labels to maintain the premium pricing that import status commanded.

The scheme ran for eight years without detection because the distributor controlled the entire Taiwan supply chain — the brand had no visibility into local operations.

The manager admitted the company stopped ordering from the US by 2015, meaning the fraud was a deliberate business decision, not an isolated incident.

Taiwan's cosmetics regulations require accurate origin labeling, but enforcement relies on market surveillance and whistleblowers rather than routine audits.

A distributor that controls the local supply chain can sell products the brand never approved. Skincare brands must audit local operations — visibility is the only defence.