G/SCM/Q2/TPKM/31  
 
13 October 2023 
(23-6916) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
  
SUBSIDIES  
REPLIES TO QUESTIONS1 POSED BY THE UNITED KINGDOM REGARDING  
THE NEW AND FULL NOTIFICATION  OF THE  SEPARATE  
CUSTOMS  TERRITORY OF  TAIWAN,  
PENGHU, KINMEN AND MATSU2 
The following communication, dated and received on 13 October 2023, is being circulated at the 
request of the delegation of  the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu . 
 
_______________  
 
 
III INDUSTRY  
B. DUTY AND TAX EXEMPTIONS GRANTED TO ENTERPRISES LOCATED WITH A 
DESIGNATED ZONE.  
1. DUTY AND TAX EXEMPTIONS FOR HIGH -TECHNOLOGY INDUSTRIES  
 
Question 1  
Can Chinese Taipei please provide further detail on the eligibility criteria for the 
programme, including:  
 
a) Which industries or sectors qualify as "high technology" under the programme?  
b) Can foreign enterprises operating within Chinese Taipei qualify for the 
programme?  
 
Reply : 
 
a) The term "high technology," which is referred to in this pro gram, does not specify the 
types of industries or sectors.  Any enterprise that is officially approved for establishment 
in accordance with Article 4 of the Act for Establishment and Administration of Science 
Parks (please refer to the following link: 
https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=H0160004 ) is eligible for 
the relevant tax incentives in this program.  
b) If foreign enterprises comply with the regulations of Article 4 of the Act, hav e applied 
for investment approval, and have completed registration for establishment, they are 
also eligible for the relevant tax incentives in this program.  
 
III INDUSTRY  
C. THE PREFERENTIAL LOANS PROGRAM FOR THE AEROSPACE INDUSTRY  
 
Question 2  
Can Chinese  Taipei please provide further detail on the eligibility criteria for the scheme, 
including whether foreign companies operating within Chinese Taipei are able to qualify 
as 'Companies dealing with the manufacture and maintenance of cabin interiors, 
aerodyn amic -structures, engines, avionics, and components in the aviation industry.'?  
 
1 G/SCM /Q2/TPKM/3 0. 
2 G/SCM/N/ 401/TPKM . G/SCM/Q2/TPKM/31  
 
- 2 - 
 
  Reply : 
 
If the applicant is a subsidiary company of a foreign enterprise, which is legally registered in the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, and engages in the manufacture 
and maintenance of cabin interiors, aerodynamic -structures, engines, avionics, and components in 
the aviation industry, it is eligible to apply for the program to the Industrial Development 
Administration under the Ministry of Ec onomic Affairs.  
 
Question 3  
Chinese Taipei provided that no applications were submitted during fiscal year 2021 -
2022. Can Chinese Taipei please provide either:  
 
a) The programme's total budget for fiscal year 2021 -2022; or  
b) The programme's overall budget (if the 2021 -2022 budget is unavailable)  
 
Reply : 
 
There is no annual budget, but the overall budget for this program is NTD10 billion.  
 
Question 4  
Chinese Taipei provided that there are no time limits attached to the programme. Can 
Chinese Taipei please clarify whether the programme is, or will be in the future, subject 
to periodic review? If so, please provide details.  
 
Reply : 
 
Since no applications have be en submitted to date, no periodic reviews have yet been conducted. 
The competent authority will consider whether to conduct a review of this program in due course.  
 
IV. RESEARCH AND DEVELOPMENT  
A. FUNDS GRANTED FOR DEVELOPMENT OF NEW OUTSTANDING PRODUCTS  
 
Question 5  
Can Chinese Taipei please provide further detail on the eligibility criteria for the 
programme, including:  
 
a) Which industries and products are able to qualify for support?  
b) Can foreign enterprises operating within Chinese Taipei qualify for the 
programme?  
 
Reply : 
 
a) This programme does not target specific sectors or products.  
b) If the applicant is a subsidiary company of a foreign enterprise, which is legally 
registered in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, it 
is eligible to apply for the program.  
 G/SCM/Q2/TPKM/31  
 
- 3 - 
 
  IV. RESEARCH AND DEVELOPMENT  
B. FUNDS GRANTED FOR PROMOTING DEVELOPMENT OF INDUSTRIAL TECHNOLOGY  
 
Question 6  
Can Chinese Taipei please clarify whether foreign enterprises operating within Chinese 
Taipei are able to q ualify for the programme?  
 
Reply : 
 
If the applicant is a subsidiary company of a foreign enterprise, which is legally registered in the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, it is eligible to apply for the 
program.  
 
Question 7  
Chinese Taipei provided that there are no time limits attached to the programme. Can 
Chinese Taipei please clarify whether the programme is, or will be in the future, subject 
to periodic review? If so, please provide details.  
 
Reply : 
 
The program is subject t o periodic review based on international trends and developments. These 
reviews allow program administrators to assess the effectiveness of the program and make 
adjustments as needed.  
 
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