Chapter 1 : Tariffs[1]

Objective

APEC economies will achieve free and open trade in the Asia-Pacific region by:

a.                   progressive reduction of tariffs until the Bogor goals are fully achieved; and

b.         ensuring the transparency of APEC economies’ respective tariff regimes.

Guidelines

Each APEC economy will:

a.                   take into account, in the process of achieving the above objective, intra-APEC trade trends, economic interests and sectors or products related to industries in which this process may have positive impact on trade and on economic growth in the Asia-Pacific region;

b.                  ensure that the achievement of the above objective is not undermined by the application of unjustifiable measures; and

c.                   consider extending, on a voluntary basis, to all APEC economies the benefits of tariff reductions and eliminations derived from sub-regional arrangements

Collective Actions

APEC economies will:

a.                   participate and ensure the expeditious supply and updates of the WTO Integrated Database and any other APEC databases;

b.                  arrange for seminars and/or workshops on industrial tariffs negotiations in consultation with international organisations, where appropriate,  including  WTO Secretariat on WTO Integrated Tariff Database; and

c.                   study lessons from modalities for tariff reduction and elimination in regional arrangements.

The current CAP relating to tariffs can be found in the Tariffs and Non-Tariff Measures Collective Action Plan

Chinese Taipei’s Approach to Tariffs in 2002

The Customs Import Tariff Schedule of Chinese Taipei was created based on “The Harmonized Commodity Description and Coding System” (“HS”) of the Customs Cooperation Council.  The current Schedule, which is based on HS 1996, took effect on June 1, 1997.  As the Schedule shows, import tariff rates are assigned to goods coded with 8-digit tariff numbers.  There are 8,688 tariff divisions and 98% of the Schedule are on ad valorem basis.  The Customs Tariff Regime of Chinese Taipei is highly transparent, with an average nominal tariff rate of 7.01% and one hundred per cent of Chinese Taipei’s tariff lines are bound. The tariff rates of Chinese Taipei are fairly low, compared with those of other APEC member economies.

Chinese Taipei is not a party to any regional or bilateral free trade agreements.  Tariff rates in the Schedule are divided into two columns: the first column applies to goods imported from countries and areas in general, and the second column applies to goods imported from countries and areas that accord reciprocal treatment to Chinese Taipei.  Currently, the second column applies to 172 countries and areas, including the 143 member economies of WTO.

Tariff Liberalization Following the Bogor Declaration

In order to implement the Bogor Declaration and to reach the goals of trade liberalization and facilitation set out in the Osaka Action Agenda, Chinese Taipei has taken the following steps of tariff liberalization since 1996:

1.         Amended the Schedule by reducing the tariff rates of 350 items of agricultural goods and 780 items of industrial goods.  With a 14.78% tariff rate reduction, the amendment was drafted in November 1996 and took effect on June 19, 1998.  

2.         Started to implement Chinese Taipei’s commitment to the Ministerial Declaration on Trade in Information Technology Products on July 1, 1997.  Of the 289 items of IT products subject to staged reduction to 0%, 274 items, including electronic components, IC process equipment and testing instruments, would be subject to  four equal tariff cuts by 2000.  Another 15 items, including fiber optic cables, communications products, etc., are subject to staged reduction to 0% by 2002.  Chinese Taipei has now finished the implementation; all ITA products enter Chinese Taipei duty-free. 

3.          In order to implement the concession commitments for accession into the WTO, Chinese Taipei has amended the rates of more than 4,000 tariff lines, effective on January 1, 2002. The average nominal rate of all products is reduced from 8.17% in 2001 to 7.01% in 2002. The average nominal rate of agricultural products is reduced from 20.02% to 14.01%, and to 12.86% in 2011, with 36% tariff rate reduction. The average nominal rate of industrial products is reduced from 6.03% to 5.78%, and to 4.15% in 2007, with 31.18% tariff rate reduction.

4.          Chinese Taipei has adopted tariff rate quota system on passenger cars and chassis and 22 agricultural commodities, which were originally subject to import restriction. The 22 agricultural commodities include red beans, liquid milk, peanuts, garlic, dried forest mushrooms, dried day lilies, young coconuts, betel nut, pineapples, mangoes, shaddock, persimmons, longans, sugar, mackerel, carangid, sardines, chicken, pork bellies, offal (including red meat offal, poultry offal, and deer velvet), fresh pears, and bananas.

5.In order to simplify the customs clearance procedures and help reduce the administrative cost of the Customs and the operation cost of importers, Chinese Taipei has implemented de minimis measure since October 1, 1998. The measure was furthur reviewed to cope with the need for our WTO accession. From January 1, 2002, We grant exemption on tariff, business tax, commodity tax, tobacco and alcohol tax, and the health and welfare surcharge to imported goods for which the duty-paying value is less than NT$3000. However, the above exemption doesn’t apply to contraband, controlled goods, and agricultural goods that are subject to tariff rate quota system.

Bound Tariffs

In order to implement the concession commitment for accession into the WTO, Chinese Taipei has bound 100% tariff lines.

We have bound 100% tariff lines at commitment rate.

If there are any questions, please contact Department of Customs Administration Ministry of Finance.

TEL︰(02)2322-8217

E-mail address︰ bsbau@mail.mof.gov.tw

No further action taken.

Applied Tariffs

In order to implement the concession commitments for accession into the WTO, Chinese Taipei has amended the rates of more than 4,000 tariff lines, effective on January 1, 2002.

The average nominal rate of all goods is reduced form 8.17% in 2001 to 7.01% in 2002.

The average nominal tariff rate of all products :7.01%

The average nominal tariff rate of agricultural products:14.01%

The average nominal tariff rate of industrial products :5.78%

 If there are any questions, please contact Department of Customs Administration Ministry of Finance.

TEL︰(02)2322-8217

E-mail address︰ bsbau@mail.mof.gov.tw

Taking into account its own economic and industrial development policy as well as its concession commitments to WTO, Chinese Taipei has planned further improvement as  follows:

l         by 2005

A tariff rate of 5% or less will be applied to 5100 items, or 60.7% of the Schedule. 2300 items, or 27.4% of the Schedule, will be tariff free.

l         by 2010

A tariff rate of 5% or less will be applied to 5500 items, or 65.5% of the Schedule.  2799 items, or 32.2% of the Schedule, will be tariff free.

Tariff Quotas

In order to comply with WTO liberalization regulation, Chinese Taipei has adopted tariff rate quota system on passenger cars and chassis and 22 agricultural commodities, which were originally subject to import restriction.

Agricultural products subject to tariff rate quotas include: red beans, liquid milk, peanuts, garlic, dried forest mushrooms, dried day lilies, young coconuts, betel nut, pineapples, mangoes, shaddock, persimmons, longans, sugar, mackerel, carangid, sardines, chicken, pork bellies, red meat offal, poultry offal, deer velvet, fresh pears, and bananas.

Industrial products subject to tariff quotas include passenger cars (including cars which accommodate nine passengers or fewer, and trucks with a total weight of less than 3.5 tons) and chassis.

If there are any questions, please contact Department of Customs Administration Ministry of Finance.

TEL︰(02)2322-8217

E-mail address︰ bsbau@mail.mof.gov.tw

The tariff rate quota system on chicken, pork bellies, red meat offal, and poultry offal will be abolished on January 1, 2005.

The tariff rate quota system on mackerel, carangid, sardines, and persimmons will be abolished in 2008.

The tariff rate quota system on passenger cars and passenger car chassis will be abolished in 2010.

Tariff Preferences

NIL

If there are any questions, please contact Department of Customs Administration Ministry of Finance.

TEL︰(02)2322-8217

E-mail address︰ bsbau@mail.mof.gov.tw

Chinese Taipei is studying the possibility of providing preferential tariff treatment for least developed countries.

Transparency of Tariff Regime

NIL

1.  Information such as forms of tariff (ad valorem, specific or compound rates) and rates of first and second columns are clearly listed in Customs Import Tariff.

2.    Any changes to Customs Import Tariff would be published in the Ministry of Finance (MOF) Gazette and made known to the public through MOF inquiry services.

3.  A combined volume of “Customs Import Tariff and Classification of Import & Export Commodities” is published.

Above information is put on Chinese Taipei’s Customs Site︰ http://www.dgoc.gov.tw.

No further action planned.

Bound Tariffs

NIL

In order to implement the concession commitment for accession into the WTO, Chinese Taipei has bound 100% tariff lines.

Applied Tariffs

Average nominal tariff rate︰8.64％

In order to implement the concession commitments for accession into the WTO, Chinese Taipei has amended the rates of more than 4,000 tariff lines, effective on January 1, 2002.

The average nominal rate of all goods is reduced form 8.17% in 2001 to 7.01% in 2002.

Tariff Quotas

NIL

In order to comply with WTO liberalization regulation, Chinese Taipei has adopted tariff rate quota system on passenger cars and chassis and 22 agricultural commodities, which were originally subject to import restriction.

Tariff Preferences

NIL

NIL

Transparency of Tariff Regime

NIL

1. Information such as forms of tariff (ad valorem, specific or compound rates) and rates of first and second columns are clearly listed in Customs Import Tariff.

2. Any changes to Customs Import Tariff would be published in the Ministry of Finance (MOF) Gazette and made known to the public through MOF inquiry services.

3. A combined volume of “Customs Import Tariff and Classification of Import & Export Commodities” has been published.

4. Above information is put on Chinese Taipei’s Customs Site︰ http://www.dgoc.gov.tw.

APEC INDIVIDUAL ACTION PLAN:  TARIFF SUMMARY REPORT FOR 2002

(PLEASE COMPLETE BOXES)

All Goods

Agriculture excluding Fish

Fish and Fish Products

Petroleum Oils

Wood, Pulp, Paper and Furniture

Textiles and Clothing

Leather, Rubber, Footwear and Travel Goods

Metals

Chemical & Photographic Supplies

Transport Equipment

Non-Electric Machinery

Electric Machinery

Mineral Products, Precious Stones & Metals

Manufactured Articles, n.e.s

ITEM

Bound tariff lines as a percentage of all lines

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Duty-free tariff lines as a percentage of all lines

18.80%

3.99%

0.13%

0.04%

1.00%

0.27%

0.31%

2.10%

2.84%

0.57%

1.55%

2.09%

2.14%

1.79%

Preferential tariff lines as a percentage of all lines

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Ratio of tariff lines with quotas to all lines

0.36%

0.35%

-

-

-

-

-

-

-

0.01%

-

-

-

-

Simple average bound tariff rate

7.01%

12.13%

20.26%

6.36%

4.28%

10.16%

5.97%

5.91%

3.79%

11.12%

4.07%

5.46%

3.60%

4.82%

Simple average applied tariff rate

7.01%

12.13%

20.26%

6.36%

4.28%

10.16%

5.97%

5.91%

3.79%

11.12%

4.07%

5.46%

3.60%

4.82%

Simple average applied preferential tariff rate - indicate for each preferential arrangement

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Average applied tariff rate for all lines subject to duty

8.46%

16.38%

21.49%

7.27%

5.48%

10.37%

6.86%

7.31%

4.49%

14.31%

4.85%

7.67%

6.29%

6.15%

Import-weighted average applied tariff rate - specify FOB

or CIF

2.41%

7.81%

11.09%

0.25%

2.51%

8.43%

5.44%

2.86%

3.50%

6.54%

2.03%

0.96%

0.95%

2.16%

Import-weighted average bound tariff rate - specify FOB

or CIF

2.41%

7.81%

11.09%

0.25%

2.51%

8.43%

5.44%

2.86%

3.50%

6.54%

2.03%

0.96%

0.95%

2.16%

Notes

1." - "signifies the fact that Chinese Taipei is currently in the process of negotiation for WTO accession, and therefore information relating to bound rates and preferential tariff rate

2. Currently, Chinese Taipei does not have any tariff quotas; but it intends to use tariff quotas as a liberalization measure to replace the existing import control on ceratin products  (e.g. certain agricultural products and passenger cars) after its accession to the WTO.

3. The forms for levying tariffs include ad valorem, specific and compound rate (i.e. applying the higher of the ad valorem rate or the specific rate set for the same product item).

    The calculation of average rate in the present case is based on ad valorem rates (i.e. in the case of compound rate, the ad valorem part is used, and specific rates are not included).

4. Weighted average rates are prepared on the basis of the 2000 trade volume.

5. There may be minor deviations for numbers provided herein, due to the limitaion in computer programming.

APEC INDIVIDUAL ACTION PLAN:  TARIFF DISPERSION TABLE FOR 2002

(PLEASE COMPLETE BOXES)

All Goods

Agriculture excluding Fish

Fish and Fish Products

Petroleum Oils

Wood, Pulp, Paper and Furniture

Textiles and Clothing

Leather, Rubber, Footwear and Travel Goods

Metals

Chemical & Photographic Supplies

Transport Equipment

Non-Electric Machinery

Electric Machinery

Mineral Products, Precious Stones & Metals

Manufactured Articles, n.e.s

NUMBER OF TARIFFS AT OR BETWEEN

0%

1603

340

11

3

85

23

26

179

242

49

132

178

182

153

0%<X<=5%

3256

190

2

12

175

223

77

218

1107

52

569

172

127

332

5%<X<=10%

1880

137

11

0

118

365

91

394

189

53

74

162

75

211

10%<X<=15%

914

105

34

9

11

400

5

149

29

7

29

92

38

6

15%<X<=20%

472

259

65

0

0

125

2

0

1

8

1

4

0

7

>20%

488

291

90

0

0

0

0

0

5

77

13

9

3

0

Specific

75

71

4

0

0

0

0

0

0

0

0

0

0

0

TOTAL

8688

1393

217

24

389

1136

201

940

1573

246

818

617

425

709

                                 Note

                                 In the case of compound rate, the ad valorem part is used.     

Chapter 2 : Non-Tariff Measures[1]

Objective

APEC economies will achieve free and open trade in the Asia-Pacific region by:

a.         progressively reducing NTMs to the maximum extent possible to minimize possible distortion to trade;

b.         in respect to WTO members:

·         Elimination of any measures inconsistent with WTO agreements

·         Full compliance with WTO agreements

in accordance to WTO commitments; and

c.         ensuring the transparency of APEC economies’ respective non-tariff measures.

Guidelines

Each APEC economy will:

a.       take into account, in the process of progressive reduction of non-tariff measures, intra-APEC trade trends, economic interests and sectors or products related to industries in which this process may have positive impact on trade and on economic growth in the Asia-Pacific region;

b.      ensure that the progressive reduction of non-tariff measures is not undermined by the application of unjustifiable measures; and

c.         consider extending, on a voluntary basis, to all APEC economies the benefits of reductions and eliminations of non-tariff measures derived from sub-regional arrangements.

Collective Actions

APEC economies will:

a.       pursue incorporation of information on non-tariff measures into a future version of the APEC  tariff database and compile a list of measures recognized as non-tariff impediments and a list of products affected by these impediments;

b.      identify industries in which the progressive reduction of non-tariff measures may have positive impact on trade and on economic growth in the Asia-Pacific region or for which there is regional industry support for early liberalization;

c.       progressively reduce export subsidies with a view to abolishing them; and

d.       abolish unjustifiable export prohibitions and restrictions and endeavor to refrain from taking any such new measures;

e.       pursue a series of seminars/policy discussions on non-tariff measures (NTMs); and

f.        undertake research  to develop best practices to enhance transparency and progressively reduce NTMs

The current CAP relating to non-tariff measures can be found in the Tariffs and Non-Tariff Measures Collective Action Plan.

Chinese Taipei’s Approach to Non-Tariff Measures in 2002

              Liberalization and facilitation are goals that Chinese Taipei continues to pursue in its external trade policies. Based on provisions of Article 11 of the Trade Law (seehttp://www.trade.gov.tw/law/fo
un/law_foundation_01e.htm).  Chinese Taipei maintains non-tariff measures (NTMs) only relating to national security, public order, public health, environmental protection, and the need for adjustment by a small number of sensitive industries.

To reach the NTM liberalization goals that are set forth in the Bogor Declaration and Osaka Action Agenda, Chinese Taipei has gradually eliminated NTMsnot consistent with WTO principles and ensure the transparency of any remaining non-tariff measures. In addition, all after Chinese Taipei accedes to WTO on 1 January 2002, it haseliminatednot WTO-consistent non-tariff measures of import ban, quantitative and area restrictionsaccording to its accession commitments or administered them according to WTO principles, such as liberalization, tariffication, tariff rate quota, or elimination of import restrictions after the transition period.

Quantitative Import Restrictions/

Prohibitions

After its accession to the WTO on January 1, 2002, Chinese Taipei, in line with its accession commitments, has opened markets for an extensive range of goods.  Among the original 252 categories  (10-digit HS Code) subject to import ban, restrictions were relaxed or liberalized, Tariff Rate Quota (TRQ) were also offered, and rice and rice product import began to be conducted pursuant to special treatment in the WTO Agricultural Agreement.  Therefore, as of August 31, 2002, there are only 56 categories still subject to import ban, and 170 categories are governed by TRQ system.

Quantitative Import Restrictions: None (HS code 10 digits);

Import Prohibition: 56 items (HS code 10 digits);

Tariff Rate Quota(TRQ):170 items (HS code 10 digits);

See Attachment A for the details

Contact Point: http://fbfh.trade.gov.tw/fh/Pr
oduct/index.htm

1. Relevant agencies will continue to simplify import procedures, enhance transparency of import regulations and procedures, reduce the number of items requiring import permit, and promote single window trade administration.

2. Chinese Taipei will progressively eliminate NTMs after its accession to the WTO according to its accession commitments. It will also continue to review remaining NTMs and study the feasibility of further liberalization.

Quantitative Export Restrictions/

Prohibitions

Not Applicable

Not Applicable

Not Applicable

Import Levies

Chinese Taipei does not levy any other duty on exports and imports, since the Harbor Construction Dues levied on exports and imports was abolished after December 31, 2001.  Pursuant to GATT Article 8, after January 1, 2002, a service fee is charged on exports and imports based upon a specific rate of volume of the shipments.

Chinese Taipei does not levy any other duty on exports and imports, since the Harbor Construction Dues levied on exports and imports was abolished after December 31, 2001.  Pursuant to GATT Article 8, after January 1, 2002, a service fee is charged on exports and imports based upon a specific rate of volume of the shipments.

No further actions planned.

Export Levies

Same as above

Same as above

Same as above

Discretionary Import Licensing

Not applicable.

Contact Point: http://wwwtrade.gov.tw

Chinese Taipei’s import regulation system has no “discretionary import licensing.” However, to enforce import restrictions stipulated in Article 11 of the Trade Law, the importation of some goods may require a letter of permission from the agency responsible for the relevant categories. This letter of permission is issued in accordance with publicly announced standards.

Not applicable.

Automatic Import Licensing

Chinese Taipei has reduced the number of items for which import licenses are required from 130 to 38 (10-digit HS Code) after its accession to the WTO on January 1, 2002.  The items that are still restricted are those for which WTO rules permit restrictions, such as weapons, ammunition, toxic chemicals, and Montreal Protocol restricted chemicals. 

Subsequent to the need for trade statistics and trade administration of steel and iron products import, Chinese Taipei announced on April 10, 2002 to add 471 steel and iron products into the commodities list which subject to import licensing, to the effect that the number of items for which import licenses are required are increased from 38 to 509 (10-digit HS Code) as of August 31, 2002.

Contact Point: http://wwwtrade.gov.tw

Chinese Taipei employs automatic import licensing measures to complement the use of consent letters for the purpose of implementing importrestrictions as specified in Article 11 of the Trade Law. The licensing procedure under the BOFT is an automatic import licensing procedure and is designed to reduce the workload of Customs in ensuring that the consent letter is an authentic one. In general, import licenses can be issued within two working hours. The agencies with authority to issue import licenses include the BOFT and administrative offices of Export Processing Zones and Science-based Parks.

Contact Point: http://www.trade.gov.tw

1. Relevant agencies will continue to simplify import procedures, enhance transparency of import regulations and procedures, reduce the number of items requiring import permit, and promote single window trade administration.

2. Chinese Taipei will     progressively eliminate NTMs   after its accession to the WTO according to its accession commitments. It will also continue to review remaining NTMs and study the feasibility of further liberalization.

Discretionary Export Licensing

Not Applicable

Not Applicable

Not Applicable

Voluntary Export Restraints

Not Applicable

Not Applicable

Not Applicable

Export Subsidies

Not Applicable

Not Applicable

Not Applicable

Minimum Import Prices

Not Applicable

Not Applicable

Not Applicable

Other Non-Tariff

Measures Maintained

Not Applicable

Not Applicable

Not Applicable

General Policy

Position

Liberalization and facilitation are goals that Chinese Taipei continues to pursue in its external trade policies. Based on provisions of Article 11 of the Trade Law﹙http://www.trade.gov.tw/law/fo
un/law_foundation_01e.htm﹚, Chinese Taipei maintains non-tariff measures (NTMs) only relating to national security, public order, public health, environmental protection, and the need for adjustment by a small number of sensitive industries. 

To reach the NTM liberalization goals that are set forth in the Bogor Declaration and Osaka Action Agenda, Chinese Taipei will gradually eliminate NTMs not consistent with WTO principles and ensure the transparency of any remaining non-tariff measures. In addition, all after Chinese Taipei accedes to WTO, it will eliminate non-tariff measures according to its accession commitments or administer them according to WTO principles, such as tariffication, tariff quota, and elimination of import restrictions after the transition period or open imports.

To achieve trade liberalization and follow international norms, Chinese Taipei has been using the Negative List System since July 1994. Based on the spirit of “free in principle, with restrictions the exception,” Chinese Taipei imposes minimal restrictions or regulations on imports, with the expectation that external trade is conducted freely. Since the system was put into effect, the number of prohibited or restricted items on the Negative List has been greatly reduced, and many restrictions have been relaxed or eliminated. At present, the number of goods restricted for import is only 56 ,  which amounts to 0.53% of the total number of categories.

Chinese Taipei continues to review methods of simplifying trade administration procedures, making import/export regulations and operating procedures more transparent, and reducing the number of items for which application of import permits is required. At present, the number of items for which application of import permits is required is only 509which amounts to 4.79% of the categories, and the number of items for which application of export permits is required is only 40. In addition, 802 textile goods are subjected to export licensing based on quantitative restriction set by some import restraining countries.

Beginning in December 1999, a computerized import and export licensing system has been in operation. This has smoothed out the flow of goods in international trade and made possible more rapid achievement of goals in liberalization and paperless trading.

To enhance trade facilitation, paperless trading, and continued simplification and/or elimination of export/import regulations and procedures, Chinese Taipei after compiledis currently compiling all import/export licensing documents required under relevant regulations for all products from relevant government agencies, and subsequent Following the compilation of this list, consultationswere will be held with relevant agencies in order to study the extent to which all import/export documentation may be consolidated and standardized into a single format, came up with the conclusion that over one hundred types of import/export licensing documents are to be consolidated and standardized into a single format, namely “Export Certificate” and “Import Certificate”, and will be formally adopted on October 1, 2002.  In addition, Ministry of Economic Affairshas developed and established a licensing documents registry operation system scheduled to hook up with the Customs on October 1, 2002, to enable 12 government agencies who have not yet linked with the Customs or facing difficulty in linking with the Customs, due to low level of permit issuance or cost/benefit analysis does not support the establishment of such lines, to forward the approved messages electronically to Customs to clear the goods by cross-checked and verified its compatibility through computers, with the aim that by linking the Customs with relevant agencies via the Internet the eventual goal of electronic and paperless trading may be realized.

Quantitative Import Restrictions/

Prohibitions

For details, see the 1996 IAP     

Chinese Taipei continues to study measures to simplify import administration. In 1996, quantitative import restrictions or prohibitions on 160 categories of goods were eliminated or relaxed; in 1997, 35 categories; in 1998, 256 categories; in 1999, 128 categories; in 2000, 33 categories; in2001, 32 categories.

After its accession to the WTO on January 1, 2002, Chinese Taipei, in line with its accession commitments, has opened markets for an extensive range of goods.  Among the original 252 categories  (10-digit HS Code) subject to import ban, restrictions were relaxed or liberalized, Tariff Rate Quota (TRQ) were also offered, and rice and rice product import began to be conducted pursuant to special treatment in the WTO Agricultural Agreement.  Therefore, as of August 31, 2002, there are only 56 categories still subject to import ban, and 170 categories are governed by TRQ system.。

Quantitative Export Restrictions/

Prohibitions

In accordance with bilateral agreements with the United States, Canada, and the EU, quantitative restrictions on export of 1061 categories of textile goods were adopted.

Quantitative export restrictions on 794  1092 categories of textile goods have been adopted on exports to the United States, Canada, Turkey,  EU, based on bilateral agreements in textiles with those countries or regions. Which also include the three-year non-renewable quantitative restriction of exports of certain textile goods from Chinese Taipei to Argentina since 1 November 1999, based on Article 6 (transitional safeguard measures) of the WTO Agreement on Textiles and Clothing.

Import Levies

Besides levying Harbor Construction Dues, Chinese Taipei does not levy any other fee on imports or exports. At present, Chinese Taipei is reviewing the rate of this service fee in light of the actual need. The levying of the Harbor Construction Dues is based on the “Commercial Harbor Law.” In 1996, the fee rate for the Harbor Construction Dues was set at 0.5% of the value of all goods imported and exported.

The fee rate of the Harbor Construction Dues was reduced from the original 0.5% to 0.4% in 1997, and since 16 July 1999 it has been set at 0.3%.

Chinese Taipei does not levy any other duty on exports and imports, since the Harbor Construction Dues levied on exports and imports was abolished after December 31, 2001.  Pursuant to GATT Article 8, after January 1, 2002, a service fee is charged on exports and imports based upon a specific rate of volume of the shipments.

Export Levies

Same as above.

Same as above.

Discretionary Import Licensing

Not applicable.

Not applicable.

Automatic Import Licensing

Chinese Taipei employs automatic import licensing measures to complement the use of consent letters for the purpose of implementing import restrictions as specified in Article 11 of the Trade Law. The licensing procedure under the BOFT is an automatic import licensing procedure and is designed to reduce the workload of Customs in ensuring that the consent letter is an authentic one. In general, import licenses can be issued within two working hours. The agencies with authority to issue import licenses include the BOFT and administrative offices of Export Processing Zones and Science-based Parks.

The number of categories of goods for which import permits are required (based on the 8-digit HS Code) was 357 in 1996. In 1997, the number was reduced to 271 items; in 1998, 262 items; in 1999, 168 items; in 2000, 151 items; in2001, 130 items (based on the 10-digit HS Code).

Chinese Taipei has reduced the number of items for which import licenses are required from 130 to 38 (10-digit HS Code) after its accession to the WTO on January 1, 2002. 

Subsequent to the need for trade statistics and trade administration of steel and iron products import, Chinese Taipei announced on April 10, 2002 to add 471 steel and iron products into the commodities list which subject to import licensing, to the effect that the number of items for which import licenses are required are increased from 38 to 509 (10-digit HS Code) as of August 31, 2002.

Discretionary Export Licensing

Not applicable.

Not applicable.

Voluntary Export Restraints

Not applicable.

Not applicable.

Export Subsidies

Not applicable.

Not applicable.

Minimum Import Prices

Not applicable.

Not applicable.

Other Non-Tariff

Measures Maintained

Not applicable.

Not applicable.

Meat of dog

1

Puffer fish

5

poppy seeds

1

Anned toxic chemicals

22

Narcotics and preparations

1

Fireworks

3

Hazardous waste

4

Halon

3

Fluoro chloro carbon compounds

16

total

56

Industrial use explosives

20

HCFC

10

Lead, Cadmium, Chromium waste and scrap

3

Tanks and armoured vehicle

1

Warships

1

Military weapons

1

Bromomethane (Methyl Bromide)

2

Steel and iron products

471

Total

509

Pork belly

4

Meats of fowls

14

Offals of swine

7

Offals of poultry

23

Deer velvet

1

Liquid milk

17

peanuts and processed products

11

Red beans

9

Garlic, garlic bulb

3

Shiitake (forest mushroom)

1

Dried day lily

1

Coconuts

1

Betel nuts

1

Bananas

2

Pineapples

1

Mangoes

1

Shaddocks

1

Other Fresh pears (excluding European pears)

1

Persimmons

1

longans

1

Sugar

10

Mackerel

8

Carangid fish

4

Herrings, sprats sardines and anchovies

21

Motor vehicle and chassis

26

Total

170

Chapter 3 : Services

Objective

APEC economies, in accordance with the APEC Policy Framework for Work on Services, will achieve free and open trade and investment in the Asia-Pacific region by:

a.                     progressively reducing restrictions on market access for trade in services;

b.         progressively providing for inter-alia most favored nation (MFN) treatment and national treatment for trade in services; and

c.         providing, in regulated sectors, for the fair and transparent development, adoption and application of regulations and regulatory procedures for trade in services.

Guidelines

Each APEC economy will:

a.                   contribute positively and actively to the WTO negotiations on trade in services;

b.                  expand commitments under the General Agreement on Trade in Services (GATS) on market access and national treatment and eliminate MFN exemptions where appropriate;

c.                   undertake further actions, where appropriate, to implement the APEC Menu of Options for Voluntary Liberalization, Facilitation and Promotion of Economic and Technical Cooperation in Services Trade and Investment;

d.                   make efforts to provide for the participation of concerned parties in regulations and regulatory processes, the fair and transparent application of regulations, and the prompt consideration of applications; and

e.                   support APEC capacity building efforts to supply services by, inter-alia, strengthening infrastructure, promoting the use of advanced technologies and developing human resources.

Collective Actions

APEC economies will take the following Collective Actions with regard to services in the telecommunications, transportation, energy and tourism sectors[1], and continue to seek Collective Actions in other sectors

TELECOMMUNICATIONS
In accordance with the Cancun Declaration, APEC economies will:

a.       work to bridge the digital divide at the domestic, regional and global levels, and to cooperate and collaborate with the business/private sector in this effort;

b.      foster discussion between business/private sector and governments on appropriate means to assess and reward the value of products and services exchanged in the provision of converged Internet services among APEC economies, consistent with the APEC Principles on International Charging Arrangements for Internet Services;

c.       foster the development of effective policies that support competitive markets in the domestic and international telecommunications and information industries;

d.       accelerate the pace of implementation of the Mutual Recognition Arrangement on Conformity Assessment for Telecommunications Equipment (MRA);

e.       work to ensure that policy and regulatory environments better foster the uptake of e-commerce;

f.        implement within voluntary time frames the APEC Interconnection Principles and consult on the need for further discussions on interconnection; and

g.       give attention to user requirements for open standards and systems to support interoperability

In addition, APEC economies are encouraged to conform, where appropriate, to:

1.       The WTO Telecommunications Regulatory Principles Reference Paper;

2.       The Information Technology Agreement (ITA); and

3.      The Guidelines for Trade in International Value-Added Network Services (IVANS).

TRANSPORTATION  
APEC economies will:

a.                   respond to the Leaders ‘Auckland Challenge’ of 1999, by implementing the eight steps for more competitive air services on a voluntary basis and by identifying further steps to liberalize air services in accordance with the Bogor Goals, and provide annual progress reports to Leaders through SOM (Note:  some components of this project may fall under Part II Ecotech, subject to further developments);

b.         develop by 2005 an efficient, safe and competitive operating environment for maritime transport, including ports, in the region through improved transparency of maritime and port policies (Note:  some components of this project may fall under Part II Ecotech, subject to further developments);

c.                   complete the Road Transport Harmonization Project and encourage the development of mutual recognition arrangements for certification of automotive product and harmonization of economies’ vehicle regulations through cooperation within United Nations Economic Commission for Europe; and

d.         seek to eliminate the requirement for paper documents (both regulatory and institutional) for the key messages relevant to international transport and trade as soon as practicable by 2005.

ENERGY

APEC Economies, by developing and building on the 14 non-binding policy principles endorsed by APEC Energy Ministers at their Sydney meeting in 1996 which are consistent with the vision, objectives and strategic themes of the recently endorsed Future Directions Strategic Plan that will guide their work over the next five years:

a.                   will facilitate trade and investment in the energy sector by

                     i.      responding to the outcomes of a current study on "Strengthening the Operational Aspects of APEC Energy Micro -Economic Reform" that will, inter-alia, inform on barriers to investment in the energy sector and how to remove the barriers.

                   ii.      analysing the broad economic impacts of micro-economic reform policies to deregulate energy markets.

                  iii.      responding as appropriate to the identification of the barriers (policy, technical, regulatory and legal) to the interconnection of power grids in APEC member economies.

                  iv.      actively pursuing the Implementation Strategy and considering the use of Implementation Facilitation Assistance Teams (IFAT) to assist in further reform of the energy markets.

                   v.      strengthening policy dialogue among member economies on important issues affecting energy markets.

                  vi.      supporting the APEC 21st Century Renewable Energy Development Initiative which seeks to advance the use of renewable energy for sustainable economic development and growth in member economies.

                vii.      encouraging in the longer term a greater strategic input from business through the Energy Working Group Business Network (EBN).

b.                  will seek to reduce barriers to trade created by differing energy performance test methods and energy performance requirements by supporting the establishment of an APEC Energy Efficiency Test Procedures Coordinator.

c.      will strengthen energy security in the region by developing and implementing an energy security initiative with the aim of improving the functioning of energy markets; energy efficiency and conservation; diversification of energy resources; renewable energy development and deployment; and enhance short term preparedness such as oil stocks and surge production of oil; and explore the potential for alternative transport fuels

TOURISM

APEC economies will:

a.     Remove impediments to tourism business and investment by:

(i)     promoting and facilitating the mobility of skills, training and labor;

(ii)    promoting and facilitating productive investment in tourism and associated sectors;

(iii)   removing regulatory impediments to tourism business and investment; and

(iv)   encouraging liberalization of services trade related to tourism under General Agreement on Trade in Services (GATS)

b.    Increase mobility of visitors and demand for tourism goods and services in the APEC region by:

(i)     facilitating seamless travel for visitors;

(ii)    enhancing visitor experiences;

(iii)   promoting inter- and intra-regional marketing opportunities and cooperation;

(iv)   facilitating and promoting e-commerce for tourism business;

(v)    enhancing safety and security of visitors; and

(vi)   fostering a non-discriminatory approach to the provision of visitor facilities and services.

c.     Sustainably manage tourism outcomes and impacts by:

(i)    demonstrate an appreciation and understanding of natural environment and seek to protect the environment

(ii)    foster ecologically sustainable development opportunities across the tourism sector, particularly for small and medium sized enterprises, employment and providing for open and sustainable tourism markets

(iii)   protect the social integrity of host communities with particular attention to the implications of gender in the management and development of tourism

(iv)   recognize, respect and preserve local and indigenous cultures together with our natural and national cultural heritage

(v)    enhance capability building in the management and development of tourism.

d.     Enhance recognition and understanding of tourism as a vehicle for economic and social development by:

(i)    Harmonizing methodologies for key tourism statistical collections, consistent with activities of other international tourism organizations

(ii)    facilitating the exchange of information on tourism between economies

(iii)   promoting comprehensive analysis of the role of tourism in member economies in promoting sustainable growth

(iv)   expanding our collective knowledge base on tourism issues in order to identify emerging issues and assist in the implementation of the Seoul Declaration on an APEC Tourism Charter. 

The current CAP relating to services can be found in the Services Collective Action Plan

Chinese Taipei’s Approach to Trade in Services in 2002

            Chinese Taipei is willing to participate actively in the WTO new round of multilateral negotiations both on horizontal issues and sector specific issues. It will try to contribute to the negotiation process and consider the possibility of unilaterally undertaking further liberalization measures based on domestic development needs.

Foreign Investment or Right of Establishment (including Joint Venture Requirements)

NIL

1. According to “Statue for Investment by overseas Chinese” and “Statue for Investment by foreign nationals”, overseas Chinese and Foreign Nationals who apply to invest in Chinese Taipei should obtain an approval in advance and thereof apply to set up establishment according to relevant laws.

2.         According to the “Company Law” and “Statue for Investment by Foreign Nationals”, foreign investors can establish proprietorship, partnerships or companies.

3.         A foreign company can set up a branch office in Chinese Taipei, after obtaining recognition in accordance with the “Company Law” and “Statue for Investment by Foreign Nationals”.

4.         A foreign company can set up a representative office, after obtaining an approval in accordance with the “Company Law”.

5.         Related web site: http://www.moea.gov.tw/~meco/d
oc/ndoc/eng.doc 

"Statue for Investment by Overseas Chinese” and “Statue for Investment by Foreign Nationals” will be revised, then the “Negative List for Investment by Overseas Chinese and Foreign Nationals” will be abolished.

Temporary Entry and Stay of Service Providers and Intra-Corporate Transferees

Chinese Taipei started to issue APEC Business Travel Card on May 1, 2002. The ABTC holders are entitled to a multiple entry, 3 month period of stay each time and using the special service lane at the airport during the validity of Cards.

1. A foreign person who has not obtained a work permit shall not be recruited to work within the Chinese Taipei.

2. Except when there are other provisions in this act (Employment Service Law), a foreign person recruited by an employer to do a job within the Chinese Taipei shall be limited to the following, such as those performing special or technical services, teachers of public or registered private colleges or universities, or primary schools for foreign residents etc.

3.         Prior to the recruitment of foreign persons for work prescribed in this  act（Employment Service Law）, the employer shall examine and prepare related documents and apply for permission for each business objective agencies.

4.         Aliens who possess a valid passport with a visitor visa may be eligible to stay after having been inspected at the port of entry and then admitted to enter Chinese Taipei.

5.         Please visit our website （http://www.evta.gov.tw）for your reference.

6.         Foreign nationals who intend to assume employment in Chinese Taipei may apply for changing their visas into resident visas directly in Chinese Taipei provided they can present official letters of approval of employment issued by the competent authorities.

According to Article 48 of the Employment Services Law, Council of Labor Affairs shall collect related regulations stipulated by each business objective agencies concerning recruitment and supervision of foreign person and will be the central competent authority to receive applications for work permit.

Foreign Exchange Control/

Movement of Capital

1.The Central Bank of China, Chinese Taipei, approved in 2001 that the Inter-American Development Bank (IDB), Nordic Investment Bank (NIB) and European Investment Bank (EIB) to issue NT$ bonds with an amount of NT$20 billion, NT$22 billion and NT$24 billion respectively.

2.On March 30, 2002, the Central Bank of China announced the amendment of “Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions.” The major amendment is that obligatory declarant can use Internet to declare his foreign exchange receipts and disbursements or transactions through authorized foreign exchange banks approved by the Central Bank doing Internet foreign exchange operations.

1. Remittances not involving the conversion of New Taiwan dollars are completely unrestricted.

2.         Remittances involving the conversion of New Taiwan dollars:

(1) Remittances relating to trade in goods and services and direct investments approved by the competent authorities are completely unrestricted.

 (2) Quotas for free conversion of New Taiwan dollars:

a. Individuals who are local nationals or foreigners with Alien Resident Certificates and are over the age of 20 may freely settle foreign exchange up to an equivalent of US$ 5 million each year.

b. A company incorporated in Chinese Taipei and a foreign company registered in Chinese Taipei may freely settle foreign exchange up to an equivalent of US$ 50 million each year.

c. Non-resident foreigners are allowed to freely make foreign exchange settlements up to an equivalent of US$100,000 against the NT dollars for each transaction.

(3) The regulations for Foreigners investing in the local securities market are as follows:There is no limit on the ratios of shares held by any single foreign investor and all foreign investors.

3. Web site: All the foreign exchange regulations may be found at the website http://www.cbc.gov.tw. In case there is any question about the foreign exchange regulations, please write to adminrol@mail.cbc.gov.tw for answers.

NIL

Other Generic Requirements

Applied to Trade in Services

NIL

Acquiring the rights and interests in the land:

Foreigners are permitted to lease or purchase land for offices, residences, shops and factories, churches, schools of the expatriates, chancellery, facilities of non-profit organizations and graveyards on a reciprocal basis. However, land in agriculture, forestry, fishing, pasture, hunting, salt production, mines and sources of water may not be transferred, encumbered or leased to foreigners.

Acquiring the rights and interests in the land:

Chinese Taipei will revise articles in the Land Law that are pertinent to foreign nationals’ acquisition of land rights. These revisions will relax the use restrictions on land leased or purchased by foreign nationals in Chinese Taipei.

General Policy

Position

Chinese Taipei had substantially liberalized the services markets since the beginning of the 1980s.  During the process of its accession to the WTO, Chinese Taipei had made even faster reform to provide greater access to its services market.  Chinese Taipei had made commitments to over 100 sub-sectors and retained only one MFN treatment exemption and limited national treatment exceptions.

In compliance with the agreement to be reached within GATS-related negotiating groups or working parties, Chinese Taipei will not only make further commitments to provide greater market access in specific sub-sectors, but also review and explore possibilities of reducing or eliminating the current restrictions on market access and national treatment.

To facilitate its further economic development, Chinese Taipei had, since 1994, promoted the liberalization of services trade through a variety of market opening and administrative reform measures in the areas of portfolio investment, capital flow, entry/exit by natural persons, telecommunications, banking, insurance, securities, and transportation.  By the end of October of 1996, Chinese Taipei had fulfilled all of its commitment contained in the May 1, 1996 draft schedule of commitments, except, due to pending relative law amendments, (1) replacing the current foreign liability ceiling system with a reserve requirement system, (2) opening up the travel agency market to foreigners, and (3) allowing foreign attorneys with certain qualifications to practice in specific legal areas.  Chinese Taipei will press forward with measures that will promote liberalization in services trade.

To facilitate its further economic development, Chinese Taipei has, in recent years, promoted the liberalization of services trade through a variety of market opening and administrative reform measures in the areas of portfolio investment, capital flow, entry/exit of natural persons, telecommunications, banking, insurance, securities, and transportation. In the future, in compliance with the agreement to be reached within GATS-related negotiating groups or working parties, Chinese Taipei will not only make further commitments to provide greater market access in specific sub-sectors, but also review and explore possibilities of reducing or eliminating the current restrictions on market access and national treatment. (2000 IAP)

In line with the GATS, Chinese Taipei has made commitments on over 100 sub-sectors and retained three MFN treatment exemptions and limited national treatment exceptions. By the end of August in 2000, Chinese Taipei has fulfilled most of its commitments contained in the draft schedule of commitments (WT/ACC/SPEC/TPKM/3), with few exceptions, such as,(1) replacing the current foreign liability ceiling system with a reserve requirement system that applies to banks operating in Chinese Taipei, and (2) allowing foreign attorneys with certain qualifications to practice in specific legal areas. (2000 IAP)

In accordance with the conclusions reached by the Negotiating Group on Movement of Natural Persons and Group on Basic Telecommunications, Chinese Taipei has included the relevant commitments and its draft schedule of specific commitments. (2000 IAP)

The law amendments, in relation to replacing the current foreign liability ceiling system with a reserve requirement system, has been finished at the end of July in1999.

Foreign Investment or Right of Establishment (including Joint Venture Requirements)

Direct Investment:

Foreign service providers were allowed to set up business establishments in Chinese Taipei in the following forms unless the specific service sector was otherwise restricted:

1. Incorporation of a new company (including a subsidiary) or acquisition of shares in an existing company in Chinese Taipei in accordance with the Company Law. However, the following restrictions shall apply:

(a) Limited company:

- At least half of the shareholders are nationals of and have residence in Chinese Taipei.

 - Directors representing the company should be nationals of and have residence in Chinese Taipei.

- Equity holding by foreigners shall not exceed 50%.

(b) Company limited by shares:- At least half of the promoters (seven persons or more) shall have residence in Chinese Taipei.

- Chairman and vice chairman of the board of directors shall be nationals of and have residence in Chinese Taipei, and at least half of the standing members of the board of directors shall have residence in Chinese Taipei.

- At least one of the company's supervisors shall have residence in Chinese Taipei.

2. According to the Statute for Investment by Foreign Nationals, foreign investors could, with approval of the Investment Commission of the Ministry of Economic Affairs, establish proprietary business, partnership or companies. The formation of companies by such foreign investors was not subject to the above-mentioned restrictions under the Company Law, and if the foreign investors' equity holding reached 45% or more, the company so formed was exempt from the requirement of public issuance of shares.

3. A foreign company could, after obtaining recognition in accordance with the Company Law, set up a branch office in Chinese Taipei.

4. A foreign company could, after obtaining an approval by the agency in charge of the relevant industry, set up a representative office to conduct its business.

5. A foreign professional fulfilling the requirements as laid by the agency in charge of relevant industry could, after obtaining an approval by that agency, set up an office and practice the business approved in Chinese Taipei.

Portfolio Investment:

A foreign investor (including institutional investors, other juristic persons and natural persons) could, after obtaining an approval, invest in Chinese Taipei's securities market, subject to the following restrictions:

1. Any single foreign investor couldn’t hold more than 7.5% of the total issued shares of a listed company.

2. All foreign investors couldn’t hold more than 20% of the total issued shares of a listed company.

Direct Investment:

The Executive Yuan revised the negative list on investment by overseas Chinese and foreign nationals on May 27, 1998. Foreign nationals may hold up to 50% of the shares of the Taiwan Power Company after it being privatized. (1998 IAP)

Portfolio Investment:

Any single foreign investment organization, legal entity or natural person cannot hold more than 15% of the total issued shares of a listed company. All foreign investment organization, legal entity or natural person cannot hold more than 30% of the total issued shares of a listed company. (1998 IAP)

To increase internationalization of the securities market, the Central Bank, in agreement with the Ministry of Finance, agreed to raise the upper ceiling of foreign investment by individual investors (i.e., any single foreign investment organization, legal entity or natural person) in any single publicly listed company from 15% to 50% of that company’s total issued shares beginning March 30, 1999. At the same time, the upper ceiling of total foreign investment in a publicly listed company was raised from 30% to 50%. (1999 IAP)

Temporary Entry and Stay of Service Providers and Intra-Corporate Transferees

1. Business visitors could enter and stay in Chinese Taipei; provided, however, that the initial stay did not exceed 90 days.

2. Intra-corporate transferees might enter and stay in Chinese Taipei, provided, that the stay did not exceed three years.

3. Foreigners employed in Chinese Taipei might enter and stay in Chinese Taipei, provided, that the stay did not exceed two years.

4. Aliens entering Chinese Taipei with a visitor visa had to leave within the approved time of stay.

5. Aliens entering Chinese Taipei with a visitor visa permitting an extension and needing to extend his/her stay for causes had to, prior to the expiration of his/her approved time of stay, apply for such an extension to the police station at the place where he/she stays.  The time of each of such extensions could not be longer than that of the original visa, and application for extension was limited to two times only with the aggregate time of extended stays not over six months.

6. Aliens holding a stay visa permitting no extension who needed to extend their stay due to any force majeure or other serious accidents had to apply for approval of such an extension to the National Police Administration.

7.         Alien entering the State exempt from visa need to extend his/her stay due to serious disease, natural disaster or other force majeure shall apply for visitor visa to BUREAU of CONSULAR AFFAIR, MINISTRY of FOREIGN AFFAIRS, or its branch.

8.         Foreign businessmen entering Chinese Taipei, at present, generally can obtain multiple-entry visitor visa with validity up to one year on a reciprocal basis.

9.         Citizens of 15 countries (including 5 APEC economies) are entitled to a visa-exempt program for a temporary stay of 14 days.

10.Chinese Taipei has consular representations accredited to most APEC economies. It is convenient to obtain the visa for those who are not entitled to the visa-exempt program. The normal processing time for visitor visa without reference is about 1 to 3 days.

1. Intra-corporate transferees and foreigners employed in Chinese Taipei may enter Chinese Taipei and apply for resident visas in Chinese Taipei directly. The period of stay has been extended from 2 years to 3 years. (1997 IAP)

2. Visa exemption entry and landing visa programs were implemented. (1997 IAP)

3. Intra-corporate transferees may enter and stay in Chinese Taipei for a three-year period; one-year extensions may be applied for. (1998 IAP)

4. Natural persons without commercial presence may enter and temporarily stay in Chinese Taipei on a contract basis.  Each temporary stay may be for a period of no more than 90 days or for the duration of the contract, whatever is less. (1998 IAP)

5. 1997-Simplify the procedure of applying for changing foreign businessmen’ visas into resident visas.-The duration of stay is extended from 60 days to 90 days.

6. 1998-Chinese Taipei: Service Standards of Temporary Business Residency are established.

7. 1999- Citizens of 18 countries (including 5 APEC economies) are entitled to a visa-exempt program for a temporary stay of 14 days

8. Intra-corporate transferees may be admitted to enter and stay in Chinese Taipei for a three-year period; extensions may be applied for if necessary.(2001 IAP)

9.         Foreigners employed in Chinese Taipei may enter and stay in Chinese Taipei for a three-year period; extensions may be applied for if necessary.(2001 IAP)

10.Citizens of 21 countries (including 6 APEC economies) are entitled to a visa-exempt program for a temporary stay of 14 days.(2001 IAP)

Foreign Exchange Control/

Movement of Capital

Foreign Exchange Control:

1. All movements of funds in respect of goods, services and capital, excluding short-term portfolio investment capital, were unrestricted.  In addition, each firm and individual might have freely-settled foreign exchange limits of US$20 million and US$5 million per year, respectively.

2. Authorized foreign exchange banks might set their foreign exchange position limits themselves and put them in force after consulting with the Central Bank, but their foreign liabilities were subject to certain limits.

3. The scope of forward foreign exchange transactions had been expanded through the adoption of a “negative list”.

4. Offshore Banking Units (OBUs) might only deal with non-residents and financial institutions when transacting foreign currency business.

Movement of Capital:

1. Movement of capital for foreign exchange of current account, direct investment and trade was completely free.

2. Each person had an annual and freely settled foreign exchange quota up to US $5 million, and each company as well as firm had an annual and freely usable foreign exchange quota up to US $20 million.

3. Few restrictions concerning short-term portfolio investment capital remained in force.

Foreign Exchange Control:

1.Chinese Taipei will semi-annually review the ceiling on the amounts that individuals and corporation may freely exchange per year with a view to reducing such limitation. (1997 IAP)

2.Chinese Taipei will continue to review from time to time the maximum amount that each foreign institutional investor can invest in the local securities market, as well as the maximum percentages of stock that a single individual and all foreign investors can hold in each local company. If economic and financial conditions so warrant, Chinese Taipei will further raise the maximum amount and the ratios, and also liberalize other related restrictions after these reviews. (1997 IAP)

3. The amount of freely settled foreign exchange for companies and entities was increased from US$20 million to US$50 million per year. (1997 IAP)

4. Authorized foreign exchange banks may engage in forward foreign exchange business for all related underlying documentations.  The limitations on contract terms of forward foreign exchange transactions have been deleted. (1997 IAP)

5. The foreign liability limits for authorized foreign exchange banks were abolished. (1997 IAP)

Movement of Capital:

1. Domestic firms borrowing from overseas foreign financial institutions, with prior approval from the Central Bank of China, Chinese Taipei, may freely settle foreign exchange as funds for their medium and long-term investment. (1997 IAP)

2. With respect to foreigners' investment in local securities market, the period in which outward remittance of qualified foreign institutional investors' investment principals could be remitted in again was extended from 3 months to 6 months. (1997 IAP)The period in which outward remittance of qualified foreign institutional investors’ investment principals may be remitted back into Chinese Taipei was extended from 6 months to 12 months. (1998 IAP) The period in which outward remittance of qualified foreign institutional investors' investment principals could be remitted in again was extended from 1 year to 2 years. (2001 IAP)

3. With respect to foreigners' issuing securities in local market, the Central Bank of China, Chinese Taipei, approved that the Asian Development Bank (ADB) , Central American Bank for Economic Integration (CABEI) and European Bank for Reconstruction and Development (EBRD) to issue NT$ bond with an amount of NT$ 7 billion, NT$ 6.8 billion and NT$ 6 billion respectively. (1997 IAP)The Central Bank of China, Chinese Taipei, approved that the European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB) and Nordic Investment Bank (NIB) to issue NT$ bonds with an amount of NT$13.6 billion, NT$6 billion, NT$7.6 billion and NT$6 billion respectively. (1998 IAP)The Central Bank of China, Chinese Taipei, approved that the European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Council of Europe Social Development Fund (CEF), Nordic Investment Bank (NIB), Inter-American Development Bank (IDB) and Central American Bank for Economic Integration (CABEI) to issue NT$ bonds with an amount of NT$19.6 billion, NT$6 billion, NT$6 billion, NT$10 billion, NT$7.6 billion and NT$10.3 billion respectively. (1999 IAP)The Central Bank of China, Chinse Taipei, approved that  the European Bank for Reconstruction and Development (EBRD) and Inter-American Development Bank (IDB) to issue NT$ bonds with an amount of NT$6 billion and NT$7 billion respectively.(2000 IAP) The Central Bank of China, Chinese Taipei, approved that the Inter-American Development Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development and European Investment Bank may issue NT$ bonds with an amount of NT$19 billion, NT$6 billion, NT$12 billion and NT$12 billion, respectively.(2001 IAP)

4. A foreign investor (including institutional investors, other judicial persons and natural persons) can, after obtaining an approval, invest in Chinese Taipei's securities market. From December 2000 onwards, the shares of a listed company held by any single investor and all foreign investors as a whole can be up to 100% of the market capitalization of the company.(2001 IAP)

Other Generic Requirements Applied to Trade in Services

Acquiring the rights and interests in the land:

Foreigners could, on the premise of reciprocity, purchase or lease the land and buildings required for the provision of services and for residence of the necessary personnel.

Acquiring the rights and interests in the land:

Foreigners are permitted to lease or purchase land for offices, residences, shops and factories, churches, schools of the expatriates, chancellery, facilities of non-profit organizations and graveyards on a reciprocal basis. However, land in agriculture, forestry, fishing, pasture, hunting, salt production, mines and sources of water may not be transferred, encumbered or leased to foreigners. (1997-2000 IAP)

Operational Requirements

The article 6 was revised to eliminate the limit of CPA practice area on November 21, 2001.

According to the provisions of Article 1, 6, 9 and 27 of the Certified Public Accountant Law, a CPA shall file an application for registration with the authority of a province (municipality) when commencing his/her practice and shall not perform professional services without being admitted to membership of a CPA association after he/she has been duly registered.

Related web site:

http://www.dfat.gov.au/apec/pr
of_services/taipei_acc.html

http://www.sfc.gov.tw

Chinese Taipei is planning to continue reviewing of the Certified Public Accountant Law in order to improve the management of CPAs.

Licensing and Qualification Requirements of Service Providers

The article 6 was revised to eliminate the limit of CPA practice area on November 21, 2001.

No change.

site:www.dfat.gov.au/apec/prof_services/taipei_acc.htmlwww.sfc.gov.tw

Chinese Taipei is planning to continue reviewing of the Certified Public Accountant Law in order to improve the management of CPAs.

Foreign Entry

 In line with Chinese Taipei's WTO accession, foreigners may take the domestic CPA examination since January 1, 2002.

A foreign national may take the CPA examination in accordance with the laws of Chinese Taipei.  A foreign national who has passed the examination referred to in the preceding paragraph and acquired a CPA certificate shall obtain the permission of the central competent authority before commencing to practice as a CPA in Chinese Taipei. 

A foreign national practicing as a CPA in Chinese Taipei shall observe and abide by the laws, regulations, and ordinances of Chinese Taipei in connection with CPA association as well as the constitution of the CPA association of which he is a member.

http://www.sfc.gov.tw

Discriminatory Treatment/

MFN

 In line with Chinese Taipei's WTO accession, foreigners may take the domestic CPA examination since January 1, 2002.

A foreign national may take the CPA examination in accordance with the laws of Chinese Taipei.  A foreign national who has passed the examination referred to in the preceding paragraph and acquired a CPA certificate shall obtain the permission of the central competent authority before commencing to practice as a CPA in Chinese Taipei. 

A foreign national practicing as a CPA in Chinese Taipei shall observe and abide by the laws, regulations, and ordinances of Chinese Taipe in connection with CPA association as well as the constitution of the CPA association of which he is a member.

http://www.dfat.gov.au/apec/pr
of_services/taipei_acc.html

http://www.sfc.gov.tw

Operational Requirements

NIL

Article 54 of Architect Law: A foreigner who has passed the architect examination, described in the preceding paragraph and is in possession of an architect's license is required to seek approval from the Ministry of Interior prior to practicing law in the Chinese Taipei; and he/she is required to comply with all laws of the Chinese Taipei and the chapter and the guidelines set by the architect association.

Contact point: julie@cpami.gov.tw

NIL

Licensing and Qualification Requirements of Service Providers

NIL

There are two alternative means by which one can be qualified to receive an architect license and act as an architect in Chinese Taipei. The first is to pass the architect examination, as stated in Article 1 of the Architect Law, and the second is to pass a qualification evaluation, as stated in Article 2 of the same law. Article 2 lists six alternative qualifications including differing levels of education, practice and training, and experience, to substitute the examination requirement. Then, after receiving the architect license, one may apply for the architect practicing certificate after accumulating two years of building construction experience, according to Article 7. Article 8 describes the specific requirements for the practicing certificate.

There are no requirements on nationality and residency.

Contact point: julie @cpami.gov.tw      

NIL

Foreign Entry

NIL

There are no restrictions on foreign entry into this service sector.

Contact point: Julie@cpami.gov.tw

NIL

Discriminatory Treatment/

MFN

NIL

There are no restrictions inconsistent with most -favored -nation treatment.

 Contact point: Julie@cpami.gov.tw

NIL

Operational Requirements

NIL

According to “Professional Engineers (PE) Law”, a national of Chinese Taipei passes the PE examination or a foreigner follows the “Statute of Foreigners Participating in Examination for Professional and Technical Personnel” can acquire a PE certificate. One who has a PE certificate and relative working experiences above 2 years can get a PE license issued by the Public Construction Commission (PCC). After getting a PE license and joining in a local PE association, he/she can act as a PE and provide PE services. Besides, comercial presence shall be in accordance with the requirements of the Company Law. The capital adequacy requirement is not necessary in this business.

Licensing and Qualification Requirements of Service Providers

NIL

A PE could provide services by following ways: setting up a personal PE office,setting up a PE consulting firm, or being hired by a PE consultant firm or a business organization that is required to hire PEs pursuant to the related laws/regulations. The PE consultant firms shall follow the “Rules Governing the Administration of Professional Engineering Consultant Firms” to apply permission of establishment and get registration by the PCC, then they can operate and provide PE services. While the business organizations other than a PE consultant firm shall follow the related administrative regulations such as the “Rules Governing the Administration of Construction Industry” to apply permission of establishment and get registration by the Ministry of Interior.

During the period of a PE providing services, he/she shall be supervised by the PCC and attend professional trainings. The valid period of a PE license is 4 years; a licensed PE should prepare his/her operating and training documents approved by the PCC to renew his/her license by 3 months before the valid date. There is no nationality requirement for a PE. But domestic residency is required.

Foreign Entry

NIL

A foreigner with a Chinese Taipei PE license can provide services by establishing a personal PE office. The branchs of foreign firms shall follow the “Rules Governing the Administration of Professional Engineering Consultant Firms” to apply permission of establishment and get registration by the PCC, then Chinese Taipei lincensed PEs hired by such branches can provide professional engineering services.

According to the “Rules Governing the Administration of Professional Engineering Consultant Firms”, the chairman of board directors of a PE consultant firm shall be a Chinese Taipei licensed PE, who shall pass the PE examination pursuant to the “Statute of Foreigners Participating in Examination for Professional and Technical Personnel” to conform with the PE requirements.

The Public Construction Commission is drafting the “Statutes Governing the Administration of Professional Engineering Consultant Firms”. Whether the chairman of board directors of a PE consultant firm shall be a Chinese Taipei licensed PE has been taken into consideration by the PCC.

Discriminatory Treatment/

MFN

NIL

There are no restrictions inconsistent with MFN treatment.

Contact point: hlchen@mail.pcc.gov.tw

Operational Requirements

Taxation Services:

For admission to the World Trade Organization, the limitation of CPA practice area under the article of Certified Public Accountant Law about limits of CPA practice area was revised and is now going through the legislation process.

Veterinary Services:

NIL

Taxation Services:

1.According to the provisions of Article 1 and 6 of the Certified Public Accountant Law, a CPA shall file an application for registration with the authority of a province (municipality) when commencing one’s practice and shall not perform professional services without being admitted to membership of a CPA association. In addition, a CPA registered with the Ministry of Finance who is a member of the Certified Public Accountants Association in Chinese Taipei, as set out according to Article 2 and 3 in the Regulations for Accountants Acting Income Tax Affairs, will be allowed to practice as a Chinese Taipei tax attorney.

2.         Currently, a CPA can only practice in a single province or municipality.  However, for admission to the World Trade Organization, the above practice area limitation will be removed from the Article of the CPA Law.

Related web site:

http://www.dfat.gov.au/apec/pr
of_services/taipei_acc.html

Veterinary Services:

Any person who has passed the national examination for veterinarian and has been issued a veterinarian certificate shall be eligible to serve as a veterinarian. To practice, a veterinarian shall submit an application together with certificate of qualification, photos and fees to the competent authority of the respective municipality or county (city), where the practice will carry out, for issuing a practice permit license.

Taxation Services:

To release the practice area limitation of a Chinese Taipei tax attorney, the contents relating to the practice area limitation of a Chinese Taipei tax attorney of Article 7 in the Regulations for Accountants Acting Income Tax Affairs will be removed in coordination with the revision of Article 6 of the CPA Law.

Licensing and Qualification Requirements of Service Providers

Taxation Services:

For admission to the World Trade Organization, the limitation of CPA practice area under the article of Certified Public Accountant Law about limits of CPA practice area was revised and is now going through the legislation process.

Veterinary Services:

NIL

Taxation Services:

1. According to the provisions of Article 1 and 6 of the Certified Public Accountant Law, a CPA shall file an application for registration with the authority of a province (municipality) when commencing one’s practice and shall not perform professional services without being admitted to membership of a CPA association. In addition, a CPA registered with the Ministry of Finance who is a member of the Certified Public Accountants Association in Chinese Taipei, as set out according to Article 2 and 3 in the Regulations for Accountants Acting Income Tax Affairs, will be allowed to practice as a Chinese Taipei tax attorney.

2.       Currently, a CPA can only practice in a single province or municipality.  However, for admission to the World Trade Organization, the above practice area limitation will be removed from the Article of the CPA Law.Related web site: http://www.dfat.gov.au/apec/pr
of_services/taipei_acc.html 

    3. One must graduate from the business-related department of a college/higher to be qualified for the CPA Senior Examination or the Qualification Evaluation.

4. Under the CPA Law, a CPA certificate holder should, before commencing practices, establish an office or join a CPA firm and register with the local government authority.  For registration purpose, one who has passed the CPA Senior Examination must have at least two years of practical experience in an accounting-related field.  However, one who has passed the CPA Qualification Evaluation is not required to have further practical experience for the registration.

Related web site: http://www.dfat.gov.au/apec/pr
of_services/taipei_acc.html

Veterinary Services

Any person who obtains the qualification of veterinarian or veterinary assistant in accordance with the Veterinarians’ Law, will be permitted to practice veterinary service.

Taxation Services:

To release the practice area limitation of a Chinese Taipei tax attorney, the contents relating to the practice area limitation of a Chinese Taipei tax attorney of Article 7 in the Regulations for Accountants Acting Income Tax Affairs will be removed to coordinate with the revision of Article 6 of the CPA Law.

Foreign Entry

Taxation Services:

NIL

Veterinary Services:

NIL

Taxation Services:

1. According to Article 47 of the CPA Law, any foreigner who has passed the CPA Senior Examination and received the CPA certificate in Chinese Taipei may perform professional services after being approved by the MOF.

2.       According to Article 48 of the CPA Law, any foreigner who performs professional services in Chinese Taipei shall observe the relevant CPA laws and CPA association regulations.

3.       There are no limitations on market access except for services related to Chinese Taipei’s income tax certifications, which can only be provided by the tax attorneys of Chinese Taipei.

4.       Access is restricted to natural persons who have established an office not in the form of a company.Related web site: http://www.dfat.gov.au/apec/pr
of_services/taipei_acc.html 

Veterinary Services

Foreigners can practice veterianry services in accordance with the Veterinarians' Law without additional requirement.

Taxation Services:

For admission to the World Trade Organization, foreigners will be allowed to take the domestic CPA examination.

Discriminatory Treatment/

MFN

Taxation Services:

NIL

Veterinary Services:

NIL

Taxation Services:

Under the current CPA Law, there is no recognition arrangement for foreign professionals.  In the future, the CPA Qualification Evaluation may apply to foreign professionals.  Currently, only Chinese Taipei nationals can apply for the CPA Qualification Evaluation if one of the following requirements is met:

1. The applicant has graduated from the accounting department or related field of a foreign college or higher which is recognized by the Ministry of Education; and has held a government Rank 6 or higher position for more than three years.

2.       The applicant has graduated from the accounting department or related field of a foreign college or higher which is recognized by the Ministry of Education; and has held the position of lecturer or associate professor for more than 3 years or professor for more than 2 years.

3.       The applicant has a foreign CPA license which is recognized by the Ministry of Examination.

Related web site:

http://www.dfat.gov.au/apec/pr
of_services/taipei_acc.html

Veterinary Services:

There's no discriminatory or MFN treatment..

Taxation Services:

For admission to the World Trade Organization, foreigners will be allowed to take the domestic CPA examination.

Operational Requirements

NIL

According to Article 7, paragraph 1 of the Postal Law, no person is allowed to operate the forwarding of letters, postal cards or other papers having the nature of correspondence as a business.  Private courier services, on the condition that their running business corresponds to the Postal Law, Civil Aviation Law, Airfreight Forwarded Regulations and Road Regulations, are allowed to operate business in handling domestic and international business papers, goods and parcels.

The Ministry of Transportation and Communications set up the Directorate General of Posts under Article 2 of the Postal Law.  At present, it is in the form of an administrative agency.  To adapt to the development of postal services, the Postal Law will be amended and the Post will transform into a corporation status as from January 1, 2003.  To protect the freedom of secret communications for the people, the postal monopoly will remain unchanged under Article 6 of the new Postal Law.

Licensing and Qualification Requirements of Service Providers

NIL

Foreign Entry

NIL

Private courier services, on the condition that their running business corresponds to the Postal Law, Civil Aviation Law, Airfreight Forwarded Regulations and Road Regulations, are allowed to operate business in handling domestic and international business papers, goods and parcels.

Discriminatory Treatment/

MFN

NIL

Operational Requirements

NIL

According to Article 7, paragraph 1 of the Postal Law, no person is allowed to operate the forwarding of letters, postal cards or other papers having the nature of correspondence as a business.  Private courier services, on the condition that their running business corresponds to the Postal Law, Civil Aviation Law, Airfreight Forwarded Regulations and Road Regulations, are allowed to operate business in handling domestic and international business papers, goods and parcels.

The Ministry of Transportation and Communications set up the Directorate General of Posts under Article 2 of the Postal Law.  At present, it is in the form of an administrative agency.  To adapt to the development of postal services, the Postal Law will be amended and the Post will transform into a corporation status as from January 1, 2003.  To protect the freedom of secret communications for the people, the postal monopoly will remain unchanged under Article 6 of the new Postal Law.

Licensing and Qualification Requirements of Service Providers

NIL

Foreign Entry

NIL

Private courier services, on the condition that their running business corresponds to the Postal Law, Civil Aviation Law, Airfreight Forwarded Regulations and Road Regulations, are allowed to operate business in handling domestic and international business papers, goods and parcels.

Discriminatory Treatment/

MFN

NIL

Operational Requirements

1. Chinese Taipei has put the Universal Sevice and Local Number Portability mechanisms into operation since Jan. 1, and May 20, 2002 respectively.  The net universal service costs and necessary administrative costs for the provision of universal service shall be shared amongst Type I (facilities-based) telecommunications enterprises and certain Type II (services-based) telecommunications enterprises.

2. Chinese Taipei amended the Regulations governing Mobile Communications Services in Sep. 2001, reguiring mobile phone operators to provide equal access.  Today, mobile phone users can freely choose their international service operator on a call-by-call basis.

3. In Feb. 2002, Chinese Taipei relaxed restrictions on submarine cable leased-circuit service operators, allowing them to contract with Type II telecommunications enterprises for leasing submarine cable capacity and to build their own inland backhaul facilities.

4. The recent amendment to the Telecommunications Act promulgated on July 10, 2002 adds the requirement that Type I telecommunication enterprises shall not reject any request from specific Type II telecommunication enterprises for network interconnection.

In Chinese Taipei, the operational requirements for telecommunications operators are stipulated in the Telecommunications Act and other relevant regulations, e.g. "Regulations Governing Fixed Network Telecommunications Services", "Regulations governing Mobile Communications Services", “Rules Governing the Third Generation (3G) Mobile Telecommunications Service”, "Administrative Rules for Universal Telecommunications Services", "Administrative Rules for Network Interconnection between Type I Telecommunications Carriers", “Administrative Rules on Type II Telecommunications Business”, etc.

Related web site:

http://www.dgt.gov.tw/english/
flash/index.shtml

Contact point: dgt40@dgt.gov.tw

To further liberalize its fixed network market, Chinese Taipei is undertaking a thorough review of relevant issues, such as the minimum paid-in capital, build-out requirement, pro-competitive measures, etc.

Licensing and Qualification Requirements of Service Providers

Nil

A Type I telecommunications enterprise may not operate without franchise and license issued by the Ministry of Transportation and Communications (MOTC).  The operating items and scope, the timetable for deregulation, and the number of operators to be allowed for Type I telecommunications enterprises shall be announced by the Executive Yuan.  With respect to granting franchise to Type I telecommunications enterprises' service provisions, the MOTC may adopt a system of evaluation and examination, open tender or any other appropriate method, in consideration of the objectives of liberalization policy, conditions of the telecommunications market, consumers' rights, and other needs of public interests.  A Type II telecommunications enterprise shall apply to the Directorate General of Telecommunications (DGT) for an operation license, and may only commence its operation when the enterprise completes its company or business registration in accordance with the laws and receives the operation license.

Related web site:

http://www.dgt.gov.tw/english/
flash/index.shtml

Contact point: dgt40@dgt.gov.tw

To facilitate investors' business planning, Chinese Taipei is going to establish a new licensing regime by regularly receiving applications for licenses for fixed network services both in March and September of each year, which will replace the current "request for proposal (RFP)" system for licensing.  Under the RFP system, a company would only make a reqest for a license, on the condition that the government make a public notification prior to licensing.  In order to put this new regime in place at an early date, Chinese Taipei  set up a Task Force in Dec. 2001 to review relevant regulations.

Foreign Entry

The recent amendment to the Telecommunications Act increases the cap on direct shareholding by foreigners in a Type I telecommunications enterprise from 20% to 49%.

The total direct shareholding by foreigners in a Type I telecommunications enterprise shall not exceed 49%, and the sum of direct and indirect shareholding shall not exceed 60%.  There is no restriction on foreign investment in Type II telecommunications business.

Related web site:

http://www.dgt.gov.tw/english/
flash/index.shtml

Contact point: dgt40@dgt.gov.tw

Discriminatory Treatment/

MFN

The recent amendment to the Telecommunications Act deletes the restriction that the majority of the directors and the supervisors of a Type I telecommunication enterprise shall be nationals of Chinese Taipei.

The chairperson of the Board of a Type I telecommunications enterprise shall be a national of Chinese Taipei.

Related web site:

http://www.dgt.gov.tw/english/
flash/index.shtml

Contact point: dgt40@dgt.gov.tw

Operational Requirements

NIL

I. Motion picture and videotape program production and distribution services

A. Motion picture production services (According to Article 3, Enforcement Rules of the Motion Picture Law) requires:

1. Paid-in capital of no less than NT$7.5 million

2. An exclusive place of business operation of no less than 16 square meters in area.

B. Motion picture distribution services (according to Article 7, Enforcement Rules of the Motion Picture Law) requires:

1. Paid-in capital of no less than NT$1 million

2. An exclusive place of business operation of no less than 16 square meters in area

3. A film storehouse of no less than 10 square meters in area

C. Videotape program production services:

1. It requires paid-in capital of no less than NT$1.2 million according to sub-item 1, Item 3, Article 5, Regulations for Radio and Television Program Supply Businesses,

2. According to paragraph 3, Article 6, Regulations for Radio and Television Program Supply Businesses, an exclusive place of business operation requires no less than 30 square meters; a fixed recording and production net area requires no less than 50 square meters, a catalog of videotape programs produced, and audio-visual devices and facilities or related rental contracts.

D. Videotape program distribution services

1. According to sub-item 2, Item 3, Article 5, Regulations for Radio and Television Program Supply Businesses, it requires paid-in capital of no less than NT$3 million for videotape program screening operators and NT$450,000 for businesses that rent, sell, or supply videotape programs by any other method.

2. According to item 4, Article 6, Regulations for Radio and Television Program Supply Businesses, an exclusive place of business operation requires no less than 100 square meters and other facility installation standards for screening operators; and for auditorium videotape screening facilities, it needs the same facility standards as for motion picture screening businesses. For businesses that rent, sell, or supply videotape programs by any other method, an exclusive place of business operation requires no less than 20 square meters.

II. Motion picture screening services ( According to Article 10, Enforcement Rules of the Motion Picture Law) requires that :

1. Paid-in capital should be no less than NT$5 million

2. For motion picture screening businesses, the structure, fire-fighting and sanitary facilities must be approved by the pertinent regulatory authorities, and other installation standards must cover such facilities as air-conditioning, screen, and the audio system.

III. Radio and television services

A. Cable radio and television system operators

1. According to Article 18, Enforcement Rules of the Cable Radio and Television Law, it requires paid-in capital of no less than NT$200 million

2. According to Article 19, Cable Radio and Television Law, the organization operating a cable system shall be a company limited by shares, established in accordance with the Company Law.

B. Satellite broadcasting businesses

According to item 2 of Article 2, and Articles 9 and 10, Satellite Broadcasting Law, a satellite broadcasting service operator refers to a direct satellite broadcasting service operator or a satellite broadcasting program supplier; its organization shall be in the form of a company limited by shares, established in accordance with the Company Law; the total shares directly held by foreign shareholders shall be less than 50 percent of the total shares issued by the satellite broadcasting business.

1. According to direct satellite broadcasting service operator Item 1, Article 6, Enforcement Rules of the Satellite Broadcasting Law, it requires paid-in capital of no less than NT$200 million.

2. According to satellite broadcasting program supplier Item 2, Article 6, Enforcement Rules of the Satellite Broadcasting Law, it requires paid-in capital of no less than NT$50 million.

3. According to foreign satellite broadcasting businesses Paragraph 2, Article 9, Enforcement Rules of the Satellite Broadcasting Law, operating capital or paid-in capital of no less than NT$20 million is required for a foreign satellite broadcasting business or an agent for the said business.

Licensing and Qualification Requirements of Service Providers

NIL

I. Motion picture and videotape program production and distribution services

A. Motion picture production services

Article 6, Motion Picture Law: Before applying for company registration, a motion picture production enterprise shall apply to the central authority in charge for permission and shall have a permit issued.

B. Motion picture distribution services
Article 8, Motion Picture Law: Before applying for company registration, a motion picture distribution enterprise shall apply to the central authority in charge for permission and shall have a permit issued.

C. Videotape program production services
Paragraph 2, Article 7, Regulations for Radio and Television Program Supply Businesses: To establish a videotape programming business, facilities must meet the standards of Article 6 and an application form must be submitted to the city or county government with jurisdiction over the location for approval.

D. Videotape program distribution services
Proviso in Paragraph 2 of Article 7, and Article 7-bis, Regulations for Radio and Television Program Supply Businesses: To establish a videotape program distribution business, an application must be submitted to the city or county government with jurisdiction over the operating location of the proposed business. Within three months of receiving permission to establish the business, the applicant must apply with the authority that processed its establishment application, for an inspection of the facilities stipulated in Article 6. Once it passes the inspection, the Government Information Office will issue a permit. The business must complete company registration according to law within six months of acquiring the permit, and join a business union within one month of operation.

II. Radio and television services

A. Cable radio and television system operators

1. Total direct and indirect foreign investment in a company operating a cable radio and/or television system shall be less than 60 percent of the total shares issued by the company. Direct foreign shareholding is limited to legal entities, and the total shares directly held by foreign shareholders shall not exceed 20 percent of the total shares issued.

2. Article 20, Cable Radio and Television Law: At least two-thirds of the directors and two-thirds of the supervisors of a company operating a cable radio and/or television system shall be citizens of the Republic of China.

3. Article 22, Cable Radio and Television Law: To establish cable radio and/or television, an applicant shall complete and submit an application form, along with an operations plan, to the central regulatory agency within the publicly announced period.

4. Article 23, Cable Radio and Television Law: The central regulatory agency may reject applications by foreign investors planning to establish or operate cable radio and/or television in Chinese Taipei, without resolution by the review committee, if it deems that the foreign investment would have an adverse effect on national security, public order, or social morals. Applications by foreigners for investment in cable radio and/or television shall be rejected under any of the conditions described in the preceding Paragraph or when they violate Paragraph 3 of Article 19.

5. Article 24, Cable Radio and Television Law: The review committee shall pass a resolution of disapproval of an application to establish and operate cable radio and/or television under any of the circumstances:

(1) Violation of Paragraph 2 or 3 of Article 19 or of Article 20;

(2) Violation of Article 21;

(3) Failure to comply with the MOTC's regulations on engineering techniques and management, as stipulated in Paragraph 3 of Article 3;

(4) Revocation of the applicant's establishment permit or operating license within the past two years, due to violation of this Law; or

(5) A director, supervisor, or managerial officer of the applicant has any of the conditions described in Article 30 of the Company Law.

B. Satellite broadcasting businesses

1. Article 11, Satellite Broadcasting Law: The regulatory agency shall reject an application for satellite broadcasting operation with stated reason(s) in the event that:

(1) The application contradicts the provisions of Articles 9 and/or 10;

(2) The applicant's satellite broadcasting operating permit has been revoked within the past two years, due to violation of this Law; or

(3) The applicant is a company in the process of establishment and one of its incorporators has committed and been definitively convicted for one of the crimes enumerated in the Statute for Prevention of Organized Crimes.

2. Paragraph 2, Article 2, Enforcement Rules of the Satellite Broadcasting Law: To operate a satellite broadcasting business, an applicant who has received approval shall submit the certification document from the regulatory agency and complete company establishment or change the company registration within six months of receiving approval. It shall then submit the company license when applying for the issuance of a satellite-broadcasting license with the regulatory agency.

C. Foreign satellite broadcasting businesses

1. Paragraph 1, Article 15, Satellite Broadcasting Law: A foreign satellite broadcasting business that engages in service operations in Chinese Taipei shall establish a branch office in within Chinese Taipei territory. The said business may broadcast programs or advertisements in Chinese Taipei only after receiving permission from the regulatory agency.

2. Paragraph 2, Article 15, Satellite Broadcasting Law: A foreign satellite broadcasting business that engages in program supply operations in Chinese Taipei shall set up a branch office or agent in its territory. The said business shall broadcast programs or advertisements in Chinese Taipei only after receiving permission from the regulatory agency. Paragraph 3, Article 9, Enforcement Rules of the Satellite Broadcasting Law: The permit issued by the regulatory agency to a foreign satellite broadcasting business agent according to Paragraph 2, Article 15 of the Satellite Broadcasting Law shall be for the duration of the agent's contracted term with the said business and shall not exceed six years.

Foreign Entry

NIL

No special restrictions.

Discriminatory Treatment/

MFN

NIL

A. Cable radio and television system operators

1. Total direct and indirect foreign investment in a company operating a cable radio or television system shall be less than 60 percent of the total shares issued by the company. Direct foreign shareholding is limited to legal entities, and the total shares directly held by foreign shareholders shall not exceed 20 percent of the total shares issued.

2. Article 20, Cable Radio and Television Law: At least two-thirds of the directors and two-thirds of the supervisors of a company operating a cable radio and/or television system shall be citizens of Chinese Taipei.

3. Article 22, Cable Radio and Television Law: To establish cable radio and/or television, an applicant shall complete and submit an application form, along with an operations plan, to the central regulatory agency within the publicly announced period.

4. Article 23, Cable Radio and Television Law: The central regulatory agency may reject applications by foreign investors planning to establish or operate cable radio and/or television in Chinese Taipei, without resolution by the review committee, if it deems that the foreign investment would have an adverse effect on national security, public order, or social morals. Applications by foreigners for investment in cable radio and/or television shall be rejected under any of the conditions described in the preceding Paragraph or when they violate Paragraph 3 of Article 19.

B. Satellite broadcasting businesses
Article 10, Satellite Broadcasting Law: The total shares of a satellite broadcasting business directly held by foreign shareholders shall be less than 50 percent of the total shares issued by the said business.

Operational Requirements

Revise establishing foreign Construction firm requirement to meet domestic firm requirement

◎       Establishment of Construction Company

1.         Class III Construction Company

(1)    Capital is over and above NTD 3 million.

(2)    Hire over and above 1 full-time engineering staff.

2.         Class II Construction Company

(1)     Capital is over and above NTD 1500 million.

(2)     With Class III Construction Company License has full 2 years, and has a completed project of engineering contract for accumulated amount over and above NTD one hundred million within 5 years.

(3)     Hire over and above 1 full-time engineering staff.

3.         Class I Construction Company

(1)     Capital is over and above NTD 1 hundred million.

(2)     With Class II Construction Company License has full 2 years, and has a completed project of engineering contract for accumulated amount over and above NTD two hundred million within 5 years.

(3) Hire over and above 1 full-time engineering staff.

◎       Establishment of Direct to Class I Construction Company (apply to Foreign Construction Company establishing in Taiwan Branch)

(1)     Capital is over and above NTD 1 hundred million in Taiwan Branch.

(2)     Hire over and above 1 full-time engineer. 

With his country Construction Company License has full 4 years, and has a completed construction contract for accumulated amount over and above NTD 3 hundred million within past 10 years.

Passage Construction Law (Draft) currently under legislative review.

Licensing and Qualification Requirements of Service Providers

Nil

1.   The requirement of full-time engineering staff of Class III Construction Company.

(1)    Civil engineer, water conservancy engineer, environmental sanitation engineer, or construction engineer.

(2)    Architect with over and above 2 years experiences.

2.   The requirement of full-time engineering staff of Class II Construction Company.

(1)    Civil engineer, water conservancy engineer, environmental sanitation engineer, or construction engineer with over and above 1 year experience.

(2)    Architect with over and above 3 years experiences.

3.   The requirements of full-time engineering staff of Class I Construction Company.

(1)     Civil engineer, water conservancy engineer, environmental sanitation engineer, or construction engineer with over and above 3 year experience.

(2)     Architect with over and above 5 years experiences.

For engineer and architect license acquirement, please refer to the regulations of Engineering Service and Architectural Service.

Ditto

Foreign Entry

Nil

There are no restrictions on foreign entry into this service sector.