17 companies to seek compensation from China : DOH

Written by Writer on Tuesday, November 11th, 2008

17 companies to seek compensation from China : DOH

TAIPEI, Taiwan — The Department of Health (DOH) said Monday it is taking action to help companies seek compensation from Beijing for extensive losses caused by tainted food ingredients they imported from China, saying that 17 businesses have already expressed interest in filing a claim.

“Currently, the Bureau of Food Safety (under the DOH) is trying to find lawyers who are familiar with Chinese laws and food safety regulations,” said DOH Minister Yeh Ching-chuan at the Legislative Yuan. He said that his agency has so far found one lawyer to handle the claims for damages.

DOH spokesman Wang Je-chau described the 17 companies as food ingredient importers that may have suffered losses because the milk powder, non-dairy creamer, ammonium bicarbonate, or protein powder they brought in from China was contaminated with the toxic chemical melamine. Wang declined, however, to name the companies.

At least one importer called Sesoda Corporation, a chemical company that imported contaminated ammonium bicarbonate from a Chinese company, publicly expressed its intention earlier this month to file for damages from China.

According to the DOH, 1,417 out of 2,248 imported agricultural products, including food ingredients and processed foods, can be imported from China, accounting for 63.03 percent of the total number.

Statistics of the Bureau of Foreign Trade under the Ministry of Economic Affairs show that Taiwan imported NT$19.25 billion (US$573.8 million) in foodstuffs from China last year, making it the second largest source of Taiwan’s food imports behind the United States.

Tuesday, November 11, 2008 9:43 am TWN, CNA