RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/TPKM/5/Rev.1 
22 July 1999 
 (99-3081) 
Working Party on the 
Accession of Chinese Taipei Original:   English 
 
 
 
ACCESSION OF CHINESE TAIPEI 
 
Communication from Chinese Taipei  
 
Revision  
   The following communication has been received from the Representation of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Ma tsu (hereinafter referred to as Chinese Taipei) 
regarding the revised proposed tariff rate quota regi me, the proposed rice quota regime and the special 
safeguard applied by Chinese Taipei.  
_______________ 
 WT/ACC/SPEC/TPKM/5/Rev.1 
Page 2  
 
 Proposed Tariff Rate Quota (TRQ) Regime
 
in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
  A. T
ARIFF QUOTA ADMINISTRATION  
1. TERMS OF TRADE 
 Tariff Rate Quota (TRQ) allocation certificates,  as import licences, would be in compliance 
with the Agreement on Import Licensing Procedur es. All commercial terms of trade, including 
product specifications, origin, pricing, packaging, et c. would be at the sole determination of the 
parties engaged in the transaction.  Partial ship ments against a single allocation will be permitted. 
Traders would be allowed to import any product or mixture of products subject to the same TRQ as 
noted in the tariff schedule. All products imported under the TRQ could be distributed freely within 
Chinese Taipei without further trade-based restrictions. Allocation certificates will be freely transferable and tradable, and certificate holders coul d have certificates reissued to combine or divide 
allocations.   
 
2. APPLICATION 
 In addition, all applications for allocati on of TRQ quantities would be submitted to the 
Ministry of Finance (MOF). Any enterprise regi stered as an importer/exporter in Chinese Taipei 
would be eligible to apply for certificates under each  of the quota allocation systems. Any domestic or 
foreign enterprise, including sole-propr ietorship, meeting the requirements
1 to register as an 
importer/exporter in Chinese Taipei. Specific conditi ons for applying for a TRQ allocation would be 
published in the official journal sixty days in advance of the start of the application period. The application period for initial allocations should be cl osed by 30 November of the previous year, unless 
the timing of accession necessitated a change in schedule for the first year. The application period for reallocations of unused quotas would be closed by 1 September. The MOF would grant allocations 
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.  
3. CONSULTATION MECHANISM 
 With a view to maintaining a transparent and open TRQ administration system, upon request 
from any WTO Member, Chinese Taipei would consult with the Member on administration of TRQ to 
ensure that the quota would be allocated in a tr ansparent, equitable, and non-discriminatory manner 
and the quota would be fully utilized.  
4. ALLOCATION 
 The allocation of tariff quotas would be made as follows: 
 
SYSTEM 1
: for quotas of chicken meat, pork offal, poultry offal, deer velvet, fresh pears (excluding 
European pears), bananas, and pork belly  Initial distribution of allocations
  For the first two years initial allocation certificates would be issued 
on a first-come, first-served basis. Allocations woul d be established for commercially viable shipping 
                                                      
1 Any enterprise including sole proprietorships, interested in importing and/or exporting and having 
included in its profit-seeking enterprise registration certificate export/i mport or buying/selling as a business 
item, would be permitted to register as an importer/exporte r. Registration as a profit-se eking enterprise required 
maintenance of an address in Chinese Taipei, but did not impose minimum investment or similar requirements.  WT/ACC/SPEC/TPKM/5/Rev.1 
 Page 3 
 
 
 quantities, but a ceiling of no more than 20 per cent of the total in-quota quantity would be established 
in advance and published as part of the allocation notification procedures.  Allocation certificates 
would be valid for product arriving between 1 January and 1 September.  The date of arrival would be 
defined in accordance with Article 5 of the implem enting regulations of the Customs Law of Chinese 
Taipei as currently in place. Upon request and proof  of signed contract before 1 September, MOF 
would automatically extend the validity date of the certificate to cover products arriving on or before 
31 December.  Reallocation of unused allocations
  In any year, if the holder of a quota allocation certificate had not 
contracted for import of the holder’s total alloca tion by 1 September, the unused portion of the 
allocation would be reallocated on a first-come, first- served basis.  The date of re-issue would be no 
later than 15 September.  The re-issued allocati on certificates would be valid for products arriving on 
or before 31 December.  Distribution of allocations after the first two years
   In each year after the first two years in which 
allocations were made under System 1, applicants for an allocation of the quota would receive an 
allocation at least as large as the average of the am ount actually imported by the applicant in the prior 
two years.  Any remaining quota amounts or incr eases in the quota amount would be allocated on a 
first-come, first-served basis.  Associated Fees
   Any and all fees, charges, deposits, du ties, etc. associated with the allocation 
process would be made explicit in the advance public  notification process, and with the exception of 
ordinary customs duties, would commensurate with the cost of the services rendered. A performance 
bond would be required to ensure complete utilizati on of the allocations. The bond would be returned 
to the applicant after the applicant imports its allo cation before its allocation certificate expires. The 
bond will not be set at a level which could deter full u tilization of the TRQ, or limited to the form of 
cash, or otherwise restrict trade. 
 SYSTEM 2
: for quotas of red bean, liquid milk and peanuts 
 Initial Distribution of allocations 
 The annual quota would be distributed once a year. Allocations 
would be established for commercially viable shippi ng quantities, but a ceiling of no more than 20 per 
cent of the total in-quota quantity would be estab lished in advance and published as part of the 
allocation notification procedures. Allocations w ould be made through a competitive process. An 
applicant would need to bid by mail in order to  obtain its allocation. Bids submitted would be 
arranged in a priority order according to the prem ium of the bid, which is the amount a bidder is 
willing to pay for each unit of the allocation it bids fo r. Quota would be allocated in this order until 
filled. In situations where some bids offer the same amount of premium and the quota available were 
not sufficient to fill each of such bids, the quota would be allocated on a pro rata  basis. Successful 
bidders for allocations were re quired to obtain their allocation certificates by paying the non-
refundable premium within thirty days. The MOF woul d re-allocate the allocations of those failing to 
pay the premium accordingly. Such re-allocati on process will commence immediately after a period 
of twenty-one days for notification.  
 
Reallocation of unused allocations  Except otherwise provided for in  the preceding paragraph, by 1 
September, the unused portion of the allocation, quota would be reallocated through a competitive 
process. The date of re-issue would be no later than  15 September. The re-issued allocations would be 
valid for products arriving on or before 31 December. 
 
SYSTEM 3 : for quotas of garlic bulbs, dried shiitake, dried day lily, young coconut, betel nuts, 
pineapples, mangoes, shaddocks, pe rsimmons, dried longans and longa n pulp, sugar (private sector), 
mackerel, carangid, and sardine (herrings).   WT/ACC/SPEC/TPKM/5/Rev.1 
Page 4  
 
 Initial distribution of allocation
  The annual quota amount would be di vided into one to four segments 
for distribution. Allocations would be established fo r commercially viable shipping quantities, but a 
ceiling of no more than 20 per cent of each segment  would be established in advance and published as 
part of the allocation notification procedures. In addition to the announcement made in the previous 
year on the number of segments and the quantity of each quota segment to be allocated, 
announcements would be made again tw enty-one days in advance of the start of the application period 
for each segment. Allocations would be made thr ough a competitive process. An applicant needs to 
bid by mail in order to obtain its allocation. Bi ds submitted would be arra nged in a priority order 
according to the premium of the bid, which is th e amount a bidder would be willing to pay for each 
unit of the allocation it bids for. Each segment of  the quota would be allocated in this order until 
filled. In situations where some bids offer the same amount of premium and the segment of quota 
available were not sufficient to fill each of such bids, the segment of quota would be allocated on a 
pro rata  basis. Successful bidders for allocations are re quired to obtain their allocation certificates by 
paying the non-refundable premium within thirty da ys. The MOF would re-allocate the allocations of 
those failing to pay the premium accordingl y. Such re-allocation process would commence 
immediately after a period of twenty-one days for notification. 
 Reallocation of unused allocations
 Except otherwise provided for in  the preceding paragraph, by 1 
September, the unused portion of the allocation w ould be reallocated through a competitive process.  
The date of re-issue would be no later than 15 Septem ber. The re-issued alloca tions would be valid for 
products arriving on or before 31 December. 
  WT/ACC/SPEC/TPKM/5/Rev.1 
 Page 5 
 
 
 Proposed Rice Quota Regime  
in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
A. RICE QUOTA ADMINISTRATION  
B. RICE QUOTA ADMINISTRATION  
 Chinese Taipei will ensure that  rice exported practices from central stocks will no longer be 
prohibited from entering domestic marketing ch annels for industrial and/ or food use. 
  Imports of rice for re-export will not count against imports under the quota. 
 
 Chinese Taipei will lift its ban on imported rice upon accession to the WTO, and establish a 
quota equal to access in the current year of the Japan schedule, based on Annex 5, calculated on a 
brown rice basis.  This quota will be increa sed in equal annual in crements, growing to 
144,720 metric tons in the year 2000.  (Note: If Chinese Taipei should accede to the WTO in 2000, 
the size of the quota in the first year of access will be 144,720 metric tons.)  Any portion of the quota 
for private trade which is not filled by 31 Dece mber will be imported by Chinese Taipei central 
authorities by 31 March of the subsequent year.   With a view to maintaining a transparent and open rice quota administration system, upon request from any WTO Member, Chinese Taipei woul d consult with the Member on administration of 
rice quota to ensure that the quota would be al located in a transparent, equitable, and non-
discriminatory manner and the quota would be fully utilized. 
  Continuation of the quota beyond 2000, or conversi on to a tariff-rate quota, will be subject to 
the provisions of Annex 5 of the Agreement on Agricu lture, in particular paragraphs 3 and 4 thereof. 
Future quota growth shall be consistent with  commitments undertaken by WTO Members with 
respect to Article 20 of the Agreement on Agriculture. 
 
1. CENTRALIZED IMPORTS 
Specification of Imported Rice
:  Rice imported by the central authorities will be tendered to meet 
internationally recognized standards for trade in rice.   
Disposal of Imported Rice
:  Imported rice will be accorded no less favourable treatment than rice 
produced in Chinese Taipei. Imported rice will ha ve full access to normal marketing channels, 
wholesalers, distributors, and end users. It will be priced at a level which ensures that it enters the domestic market at prices competitive with rice pr oduced in Chinese Taipei. Imported rice will be 
marketed in a timely fashion so that its quality for table use is not adversely affected by storage time. 
Imported rice will not be exported as fo od aid, nor used for livestock feed. 
 Duties and mark-up
:  The in-quota duty shall be 0 per cent (zero) for rice in HS chapter 10.  The sum 
of the other fees, charges, and mark-ups on an y individual importation and resale shall not exceed 
NT$23.26/kg for rice and NT$25.59/kg for rice products.  If the product does not move onto the domestic market at any given price, Chinese Ta ipei will re-announce the distribution within two 
weeks, reducing the price by NT$3/kg or greater to en sure that it is not priced above market clearing 
levels.  The process will be repeated if neces sary to move the rice out of central stocks. 
 WT/ACC/SPEC/TPKM/5/Rev.1 
Page 6  
 
 2. PRIVATE SECTOR TRADE 
Direct Private Sector Trade
:  Chinese Taipei’s quota system for private rice trade will be conducted 
through direct private-sector importation.  The quot a system will be operated with the objective of 
ensuring the quota fills with a minimal level of ma rket distortion and that the imported rice enters 
Chinese Taipei’s domestic wholesale and retail markets on conditions no less favourable than exist for 
rice produced in Chinese Taipei. Chinese Taipei will in crease the market access quota allocated to the 
private trade by no less than the percentage tende red by WTO Members having recourse to Annex 5, 
Section A of the Agreement on Agriculture. Chinese Taipei agrees to increase the percentages of 
private trade to 35 per cent in 2000.  
In-Quota Duty and Mark-up
:  The in-quota duty shall be 0 per cent (zero) for rice in HS chapter 10.  
The sum of other fees, charges, and mark-ups  on any individual importation shall not exceed 
NT$23.26/kg for rice and NT$25.59/kg for rice products.  If the quota is under subscribed after the first announcement, Chinese Taipei will re-announce the allocation within two weeks, reducing the 
sum of other fees, charges, and mark-ups by NT$3/ kg or greater to ensure that they do not restrict 
imports, nor price imports above market clearing levels.  The process will be repeated if necessary.  If 
the initial tender is over subscribed, it will be allocated on a first come, first served basis. 
 Terms of Trade
:  Quota allocation certificates will serve as automatic import licences, in compliance 
with the Agreement on Import Licensing Procedures a nd consistent with Article XIII of GATT 1994.  
All commercial terms of trade, including product specifications, origin, pricing, packaging, etc. will 
be at the sole determination of the parties engage d in the transaction.  Partial shipments against a 
single allocation will be permitted.  Traders may impor t any product or mixture of products subject to 
the same quota as noted in Chinese Taipei’s schedule. All products imported under the quota will be permitted to be distributed freely within Chinese Ta ipei without further trade-based restrictions.  
Allocation certificates will be freely transferable  and tradable, and certificate holders may have 
certificates reissued to combine or divide allocations.  
 Application
:  All applications for allocation of quota quantities will be submitted to the Council of 
Agriculture (COA). Specific conditions for applying fo r the first quota allocation for each year will be 
published in the official journal sixty days in advance of the start of the application period. The application period for initial allocations shall be cl osed by 30 September 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.  COA will grant allocations and publish and notify the 
names of recipients and allocation amounts within two weeks of the close of the application period.  Associated Fees
:  Any and all fees, charges, deposits, duti es, etc. associated with the allocation 
process will be made explicit in the advance public notification process, and with the exception of 
ordinary customs duties and/or other charges as  noted in Chinese Taipei’s schedule, will be 
commensurate with the cost of the services re ndered.  No special performance or bid bond 
requirements will be instituted.  Allocation
:  
 
Initial distribution of allocations  The initial allocation certificates will be issued on a first come, first 
served basis.  Allocations will be established fo r commercially viable shipping quantities, but a 
ceiling on the size of any given allocation may be est ablished in advanced and published as part of the 
allocation notification procedures. Allocation certific ates will be valid for product  arriving between 
1 January and 1 September. The date of arrival sh all be defined in accordance with Article 5 of the 
implementing regulations of the Customs Law of Ch inese Taipei as currently in place. Upon request 
and proof of signed contract before  1 September, COA will automatically extend the validity date of 
the certificate to cover products arriving on or before 31 December.  WT/ACC/SPEC/TPKM/5/Rev.1 
 Page 7 
 
 
  
Reallocation of unused allocations   In any year, if the holder of a quota allocation certificate has not 
contracted for import of the holder’s total allocation by 1 September, the unused portion of the allocation will be reallocated on a first come, first se rved basis. Reallocation certificates will be valid 
for 90 days. 
 
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