Japanese retail company Muji (Shanghai) has been fined 200,000 yuan (US$31,311) for selling goods marked “Taiwan” as the country of origin.

Muji imported 119 indoor steel laundry-drying racks with packages printed “MADE IN TAIWAN, country of origin: Taiwan (the latter part in Chinese)” from Japan on August 5 last year. It sold them on its Taobao flagship store and outlets.

The Shanghai Industry and Commerce Administration said the company failed to fulfill its obligation of product examination.

No immediate figures were available for the number of goods already sold, the watchdog said, adding Muji had violated the Advertisement Law banning any action which is “detrimental to national dignity or interests, and divulges state secrets.” Muji changed the packaging and took the products off the shelves.