RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/TPKM/9 
7 May 1999 
 (99-1902) 
Working Party on the 
Accession of Chinese Taipei Original:   English 
 
 
 
ACCESSION OF CHINESE TAIPEI 
 
 The following information concerning the dr aft proposals of Chinese Taipei's TRQ system 
and SSG scheme has been received from the Represen tation of the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu (hereinafter referred to as "Chinese Taipei"). 
  
_______________ 
 
[DRAFT] 
 
Chinese Taipei’s Draft Plan on Special Safeguard - May 1999
 
  Chinese Taipei’s SSG measures are structured according to Article 5 of Agreement on Agriculture, using either volume or price trigger for invoking the measures. The measures will be 
implemented according to the Article. The level of  additional duty will be adjusted in conjunction 
with the annual adjustment in the out-quota rates.   Items Applied SSG
 
 
Chinese Taipei intends to apply SSG mechanis m to the following items: peanuts, oriental 
pears, sugar, garlic bulb, betel nuts, meat of fowls,  liquid milk, animal offal, red beans, dried shiitake, 
shaddock, persimmon, dried day lilies, and pork belly. 
Trigger level and Duty Calculation  
  Trigger Volume
 
 
 Trigger level will be set according to Article 5,  paragraph 4, of the Agreement on Agriculture,  
Additional Duty to be imposed: One third of the out-quota rate in effect.   Trigger Price
 
 
 Trigger Level.  The trigger price will be the average of CIF prices in the years 1990-1992. As 
there is no import record for the products concerne d, the CIF prices are determined in the same 
manner as that for the external prices for the pur poses of determining tariff equivalent.  Additional 
duty will be levied at any time the price differe nce is greater than 10% of the trigger price. 
 
 Additional Duty to be Imposed  
  Additional duty is to be calculated according to  Article 5, paragraph 5 (b) (c) (d) and (e).  
 WT/ACC/SPEC/TPKM/9 
Page 2 
The Preliminary Calculation Sheet of  Products Requesting Special Safeguard  
(using price trigger) 
                                                     Unit: NT$/KG 
 
Products Trigger 
Price Out-quota 
Tariff  
Rate  
SSG Tariff Rate with Import Price Drop  
Remark
   The Percentage Difference Betwee n Import Price and The Trigger Price  
   11% 40% 41% 60% 61% 75% 76%  
Peanuts (in shell) 
and Peanuts Oil 18.1 49.0 49.1 50.6 50.7 52.4 52.6 54.3 54.5  
Peanuts (shelled) 11.8 75.0 75.0 76.1 76.1 77.2 77.3 78.5 78.6  
Oriental Pears 13.9 58.0 58.0 59.3 59.3 60.6 60.7 62.1 62.2  
Sugar US$M.T. 319.7 537.0 538.0 565.8 567.4 597.7 600.0 631.3 634.2  
Garlic Bulb 9.7 32.0 32.0 32.9 32.9 33.8 33.9 34.9 34.9  
Betel Nuts 50.0 950.0 950.2 954.5 954.8 959.5 959.9 964.8 965.2  
Chicken Legs and 
Wings 30.0 64.0 64.1 66.7 66.9 69.7 69.9 72.9 73.1  
Other Chicken 
Cuts 42.0 40.0 40.1 43.8 44.0 48.0 48.3 52.4 52.8  
Liquid Milk 17.0 18.4 18.5 19.9 20.0 21.6 21.7 23.4 23.6  
Red Beans 14.4 27.0 27.0 28.3 28.4 29.7 29.8 31.3 31.4  
Dried Shiitake 207.7 434.0 434.6 452.7 453.7 473.5 474.9 495.3 497.1  
Shaddock 10.4 22.0 22.0 22.9 23.0 24.0 24.1 25.1 25.2  
Persimmon 23.4 34.0 34.1 36.1 36.2 38.4 38.6 40.9 41.1  
Dried Day Lilies 25.0 68.0 68.1 70.3 70.4 72.8 72.9 75.4 75.6  
 
Sources: Council of Agriculture, Executive Yuan, R.O.C. Note:   The SSG tariff rate with import price drop is calcula ted under the Special Safeguard Provisions, Agreement on Agricultu re. 
  WT/ACC/SPEC/TPKM/9 
 Page 3 
 
 
 List of Item Applied Special Safeguard by Chinese Taipei (using price trigger)  
 
Tariff Item Number Product 
12021000 15081000 15089000 
20081110A 20081190A Peanuts (in shell) and 
Peanuts Oil 
12022000 12089010A 12089020A 
20081110B 20081190B 20081990B Peanuts (shelled) 
08082010B Oriental Pears 
17011100 17011200 17019110 
17019120 17019910 17019920 
17019990 SUGAR  
07032000A 07032000B 07129090A Garlic Bulb 
08029090A Betel Nuts 
02073910A 02074110A 02109090B 
16023910 A Chicken Legs and Wings 
02071010 02072100 02073910B 
02074110B 16023910B Other Chicken Cuts 
04011000A 04011000B  04012000A 
04012000B 04013000A 04013000B 
04029910A 04029920 19019023A 
19019029A 04029990A 04039090C 04039090F 04039090H 04039090I LIQUID MILK 
07102900A 07133200 11061000A 
20049000A 20055100A 20055900A 
21069099A Red Beans 
07123030 Dried Shiitake 
08059000A Shaddock 
08109090C Persimmon 
07129090B Dried Day Lilies 
 
 
  WT/ACC/SPEC/TPKM/9 
Page 4  
 
 Proposed Tariff Rate Quota (TRQ) Regime in Taiwan - System 2
 
 
[DRAFT] 
 Terms of Trade
 
 
Tariff Rate Quota (TRQ) allocation certificates will serve as automatic import licenses, in 
compliance with the Agreement on Import Licensing Procedures.  All commercial terms of trade, including product specifications, origin, pricing, pack aging, etc. will be at the sole determination of 
the parties engaged in the transaction.  Partial ship ments against a single allocation will be permitted.  
Traders may import any product or mixture of products subject to the same TRQ as noted in the 
schedule below.  All products imported under the TRQ will be permitted to be distributed freely 
within Chinese Taipei without further trade-based restrictions.  Allocation certificates will be freely 
transferable and tradeable, and certificate holders ma y have certificates reissued to combine or divide 
allocations.  
 
Application
  
  All applications for allocation of TRQ quantiti es will be submitted to the Ministry of Finance 
(MOF).  Specific conditions for applying for a TRQ al location will be published in the official journal 
sixty days in advance of the start of the app lication period.  The application period for initial 
allocations shall be closed by 30 November of the previous year, unless the timing of accession 
necessitates a change in schedule for the first year.  The application period for reallocations shall be 
closed by 1 September.  MOF will grant allocati ons and publish and notify the names of recipients 
and allocations within two weeks of the close of the application period for the purpose of transfer. 
 
Associated Fees
 
 
 Any and all fees, charges, deposits, duties, etc.  associated with the allocation process will be 
made explicit in the advance public notification pr ocess, and with the exception of ordinary customs 
duties and / or other charges as noted in the attached  schedule, will be commensurate with the cost of 
the services rendered.  No special performance or bid bond requirements will be instituted. 
 
Consultation Mechanism  
 
With a view to maintaining a transparent a nd open TRQ administration system, upon request 
from any WTO member, Chinese Taipei will consu lt with the member on administration of the 
minimum access quotas or TRQ to ensure an equitabl e distribution of allocations and complete quota 
utilization. 
 
Allocation  
 
 Allocations will be made in a transparen t, equitable and non-discriminatory manner. 
 
 Initial Distribution of allocations  
  Allocations will be established annually, and a ceiling of no more than 20 per cent of the total 
in-quota quantity may be established in advance an d published as part of the allocation notification 
procedures. Allocations will be made through a comp etitive process. All applications for allocation of 
TRQ quantities need to bid and submit their bids by  mail. Bids submitted are to be arranged in a 
priority order according to the premium of the bid,  which is the amount a bi dder is willing to pay to 
obtain the quota. Quotas will be allocated in this orde r until filled. In situations where some bids offer 
the same amount of premium and the quota available is  not sufficient to fill each of such bids, the  WT/ACC/SPEC/TPKM/9 
 Page 5 
 
 
 quota will be allocated on a pro rata  basis. Successful bidders for quota are required to obtain their 
allocation certificates by paying the premium within thirty days. Those who have not obtained their allocation certificates by this date will have thei r quotas re-allocated as unused quotas by the MOF. 
  Reallocation of unused allocations
 
 
 By 1 September, the unused portion of the allo cation will be reallocated. The date of re-issue 
shall be no later than 15 September. The re-issued allocations will be valid for products shipped by 31 
December. WT/ACC/SPEC/TPKM/9 
Page 6  
 
 Proposed Tariff Rate Quota (TRQ) Regime in Taiwan - System 3
 
 
[DRAFT] 
 Terms of Trade
 
 
Tariff Rate Quota (TRQ) allocation certificates will serve as automatic import licenses, in 
compliance with the Agreement on Import Licensing Procedures.  All commercial terms of trade, including product specifications, origin, pricing, pack aging, etc. will be at the sole determination of 
the parties engaged in the transaction.  Partial ship ments against a single allocation will be permitted.  
Traders may import any product or mixture of products subject to the same TRQ as noted in the 
schedule below.  All products imported under the TRQ will be permitted to be distributed freely 
within Chinese Taipei without further trade-based restrictions.  Allocation certificates will be freely 
transferable and tradeable, and certificate holders ma y have certificates reissued to combine or divide 
allocations.   
 
Application
 
 
 All applications for allocation of TRQ quantities will be submitted to the Ministry of Finance 
(MOF).  Specific conditions for applying for a TRQ al location will be published in the official journal 
sixty days in advance of the start of the app lication period.  The application period for initial 
allocations shall be closed by 30 November of the previous year, unless the timing of accession 
necessitates a change in schedule for the first year.  The application period for reallocations shall be 
closed by 1 September.  MOF will grant allocati ons and publish and notify the names of recipients 
and allocations within two weeks of the close of the application period for the purpose of transfer. 
 
Associated Fees  
 
 Any and all fees, charges, deposits, duties, etc.  associated with the allocation process will be 
made explicit in the advance public notification pr ocess, and with the exception of ordinary customs 
duties and / or other charges as noted in the attached  schedule, will be commensurate with the cost of 
the services rendered.  No special performance or bid bond requirements will be instituted. 
 
Consultation Mechanism  
 
With a view to maintaining a transparent a nd open TRQ administration system, upon request 
from any WTO member, Chinese Taipei will consu lt with the member on administration of the 
minimum access quotas or TRQ to ensure an equitabl e distribution of allocations and complete quota 
utilization.  Allocation
 
 
 Allocations will be made in a transparent,  equitable and non-discriminatory manner. 
 
 Initial distribution of allocation   
  Allocations will be establis hed annually, and a ceiling of no more than 20 per cent for each 
segment may be established in advance and published as part of the allocation notification procedures. 
There will be one to four segments of quota allo cation per year. In addition to the announcement 
made in the previous year on the total quantity of quota to be allocated, a nnouncements will be made 
twenty-one days in advance of the start of the ap plication period for each segment. All applications 
need to bid by mail in order to obtain their quotas.  Bids submitted will be arra nged in a priority order 
according to the premium of the bid, which is the amount a bidder is willing to pay to obtain the  WT/ACC/SPEC/TPKM/9 
 Page 7 
 
 
 quota. Quotas will be allocated in this order until fi lled. In situations where some bids offer the same 
amount of premium and the quota available is not suffi cient to fill each of such bids, the quota will be 
allocated on a pro rata  basis. Successful bidders for quota are required to obtain their allocation 
certificates by paying the premium within thirty da ys. Those who have not obtained their allocation 
certificates by this date will have their quotas re-a llocated as unused quotas by the MOF.  Allocation 
certificates will be valid according to inform ation detailed in the public announcements. 
  Reallocation of unused allocations:
 
  By 1 September, the unused portion of the allo cation will be reallocated.  The date of re-issue 
shall be no later than 15 September.  The re-issued  allocations will be valid  for products shipped by 
31 December.  
__________