WT/TPR/M/302/Add.1  
23 October 2014  
(14-6160)  Page: 1/139  
Trade Policy Review Body 
16 and 18 September 2014 Original: English/anglais/inglés  
 
  TRADE POLICY REVIEW 
CHINESE TAIPEI 
MINUTES OF THE MEETING 
Addendum 
Chairperson: H.E. Ms Mariam Salleh (Malaysia) 
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by Chinese Taipei.1 
 
 
Organe d'examen des politiques commerciales 
16 et 18 septembre 2014 
EXAMEN DES POLITIQUES COMMERCIALES 
TAIPEI CHINOIS  
COMPTE RENDU DE LA RÉUNION 
Addendum 
Présidente: S.E. Mlle. Mariam Salleh (Malaisie) 
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses fournies par Taipei chinois.1 
 
 
Órgano de Examen de las Políticas Comerciales 
16 y 18 de septiembre de 2014 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
TAIPEI CHINO 
ACTA DE LA REUNIÓN 
Addendum 
Presidenta: Excma. Sra. Mariam Salleh (Malasia) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por Taipei 
Chino.1 
                                               
1 In English only./En anglais seulement./En inglés solamente. WT/TPR/M/302/Add.1 
 
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  TRADE POLICY REVIEW OF 
SEPARATE CUSTOMS TERRITORY OF TA IWAN, PENGHU, KINMEN AND MATSU 
(CHINESE TAIPEI) 
 
16 AND 18 SEPTEMBER 2014 
 
Replies to advance written questions 
 
EU 
 2 TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2.6.2 Cross-Straits Economic Cooper ation Framework Agreement (ECFA) 
Page 29, paragraph 2.35 and Box 2.2 (and  also paragraph 4.23 of the Government 
report) 
The report describes that as of June 2013, two of the four follow-up agreements were completed 
(on trade in services and investment promotion and protection). The services trade agreement is still under legislative consideration. Chinese Taipei made 64 market-access commitments to 
investors from China, including for hotels and restaurants, social services, transport, and 
wholesale commerce.  EU Question No. 1: Could Chinese Taipei clarify how do they assess the result of the negotiations 
with the People's Republic of China regarding the Cross-Straits Economic Cooperation Framework 
Agreement, Cross-Strait Services Trade Agreement respectively?   
Answer: 
The Cross-Straits Economic Cooperation Framewor k Agreement (ECFA) was signed on June 29, 
2010 and went into effect on September 12 the same year. Besides the early harvest program for 
trade in goods and services, the ECFA has enhanced our integration with the Asia-Pacific regional 
economy as well as our strategic position. It also protects the rights and interests of our businesses and enhance industrial divisions across the Taiwan Strait. Foreign companies may use us as a springboard for entry into the mainland China market because of our better IPR protections 
and lower tariff rates. We can therefore serve as a bridge for foreign businesses seeking to enter 
the mainland China market.  
As for the results of the Cross-Strait Agreement on Trade in Services, we note 4 benefits in its 
signing. First, through this agreement, both part ies can establish an institutionalized platform for 
handling cross-strait service trade matters. Second , this agreement will be beneficial to the 
development and exports of our service industry. We  estimate that our exports from service sector 
enterprises to the mainland could increase by NT$12 billion (a growth of  37.2%). Third, this 
agreement will increase our economic vitality and employment opportunities. Since opening our market to mainland Chinese investment in June 2009, investment cases from mainland China 
totalled 549 as of June this year, the number of approved applications by mainland personnel to 
enter the Separate Customs Territory of Taiwan , Penghu, Kinmen and Matsu totalled 331, and the 
number of our citizens employed as a result of these investments amounted to 9,917. Fourth, this 
agreement is helpful in our efforts to sign trade agreements with other trading partners. 
 The EU understands that the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
envisage establishing a joint committee with the People's Republic of China for the supervision of 
the ECFA agreement as well as a dispute settlement mechanism. The report also mentions that Chinese Taipei and China in 2013 continued to discuss a mechanism to help resolve disputes that might arise from the interpretation, implementation, and application of the ECFA follow-on 
agreements. 
 EU Question No. 2: Could Chinese Taipei clarify how these mechanisms are intended to work and 
when they will be established?  
 Answer: 
The said joint committee is formally named the Cross-Straits Cooperation Committee (hereinafter referred to as the Committee). The Committee is established as a consultation platform and coordination mechanism for handling matters relating to the ECFA, but not a decision-making body. WT/TPR/M/302/Add.1 
 
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  Paragraph 1 of Article 10 of the Cross-Straits Economic Cooperation Framework Agreement 
(hereinafter Agreement) provides that both Parties shall engage in consultations on the 
establishment of appropriate dispute settlement procedures after the entry into force of this Agreement, and expedite to reach an agreement in order to settle any disputes. Thus, both 
Parties, at present, are working towards establishing a feasible and equitable dispute settlement 
mechanism which will be implemented after the conc lusion of negotiations, signing and entry into 
force of the dispute settlement agreement. 
 
2.6.3 Other existing and potent ial preferential agreements 
Page 30, paragraph 2.36 According to the report, Chinese Taipei has signed and Economic Cooperation Agreement with New 
Zealand and with Singapore. 
 EU Questions No. 3 and 4:  Could Chinese Taipei clarify the extent in which these agreements go 
beyond the commitments undertaken by Chinese Taipei in WTO as regards services, investment 
and rules (TBT, SPS and government procurement)? What are the results of these agreements at this stage in terms of trade and investment flows? 
 
Answer: 
The ECAs we signed with New Zealand and Singapore respectively, further liberalize cross-border trade in services and investment, except for those non-conforming measures as annexed in the 
“negative list.”  In many sectors, such as air transport, maritime, telecommunication, education, 
environment as well as temporary entry of business persons, our liberalization commitments go beyond our existing commitments under the WTO. In addition, the investor-state dispute 
settlement mechanism is established under the investment chapter, further cooperation are to be 
engaged under the TBT and SPS chapters, and we al so offer additional market access to Singapore 
on government procurement through measures such as lowering the monetary threshold to 
participate in tenders. 
 We and New Zealand enjoy close trade and economic relations. We signed the “Agreement between the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu and New Zealand 
on Economic Cooperation” (ANZTEC) on July 10,  2013 and the agreement entered into force on 
December 1st the same year. The bilateral trade between us and New Zealand has continued to grow steadily, and both sides believe that the agre ement will enable us to develop an even closer 
partnership and thus expand our economic ties and create new business opportunities for both 
sides’ industries. According to statistics from our Ministry of Finance’s Customs Administration, our bilateral trade with New Zealand from last December to this July amounted to US$971 million, an 
increase of 13.51%. Our exports to New Zealand were US$323 million, a decrease of 3.62%, while 
New Zealand’s exports to us were US$648 million,  an increase of 24.53% compared with 2013. 
 Meanwhile, according to statistics from our Minist ry of Economic Affairs’ Investment Commission, 
there has been a total investment of US$789,000 from New Zealand to us from last December, 
when ANZTEC entered into effect, to this June.  
The “Agreement between Singapore and the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu on Economic Partnership” (ASTEP) just entered into force on 19 April this year. ASTEP is expected to increase bilateral trade and investment, and we continue to pay close 
attention to the actual outcomes. According to statistics from our Ministry of Finance’s Customs 
Administration, total two-way trade between Singapore and us from May to July in 2014 amounted to US$7.5 billion, a decrease of 22.4% compared with the same period in 2013. Our exports to 
Singapore were US$5.43 billion, an increase of 0.87% compared with the same period in 2013. 
Meanwhile, Singapore’s exports to us amounted to US$2.08 billion, a decrease of 9.43% compared 
with the same period of 2013. As for investments, according to our statistics from the Ministry of Economic Affairs’ Investment Commission, in May and June 2014 the total investment from us to 
Singapore was US$22,131. In the same period, the investment from Singapore to us amounted to 
US$10,626.  
2.7 Foreign investment regime 
Page 31, paragraph 2.43 According to the report, Chinese Taipei is planning to set up the Free Economic Pilot Zones (FEPZs) in six major ports and Taoyuan International Airport as one of the strategies pursued by the 
government to attract more foreign investment. It is mentioned that restrictions on labour and on WT/TPR/M/302/Add.1 
 
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  capital and goods flows are being loosened, and tax incentives are being provided to firms 
investing in designated industrial and services activities in the FEPZs.   EU Questions No. 5 and 6:  Could Chinese Taipei clarify what are the expected benefits of firms 
establishing in a FEPZ comparing to the ones available in the EPZs and FTZs? How would foreign 
firms benefit from FEPZs? What  is the envisaged timeline for the implementation for FEPZs? 
 
Answer: 
Comparing with the EPZs and FTZs, FEPZs enjoy hi gher level of liberalization. EPZs and FTZs 
target on manufacturing industries; however, FEPZ s target on high value-added service industries 
with deregulation and institutional reform as major promoting measures in order to create a more 
favourable environment for business. 
 FEPZs adopt a number of liberalization measures to create business opportunities for both 
domestic and foreign FEPZ Enterprises. For example: 
 Foreign shipment owners export goods after storage and simple processing in FEPZs, no 
business income tax will be levied. However, if  goods are sold to domestic market, only 
10% of the total revenue will enjoy a tax exemption. 
 FEPZ Enterprises, both domestic and foreig n, may fully utilize our sophisticated hi-tech 
and manufacturing capabilities and generate wider benefits by linking with nearby industrial clusters through the “shop onsite, factory offsite” outsourced processing 
business model. 
 The 24-hour express sea consignment handling services streamline customs clearance 
process, and help lower cost of FEPZ s Enterprises (foreign and domestic) 
 
In order to get this plan to start as early as po ssible, the FEPZs Plan is divided into two phases. 
Phase I which focuses on revision of administrative regulations kicked off in August 2013. Phase II 
will begin right after the Special Act for FEPZs is enacted with more liberalization measures to be 
adopted.   Note: The above tax incentives will be provided  after the Special Act for FEPZs is enacted. 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 3.1.6.1 Import prohibition + 3.2.3.1 Expo rt prohibitions (tables A3.3 and A3.5) 
Page 48 and page 59 
According to the report, Chinese Taipei has in place both import and exports prohibitions with reference to certain products as listed in tables A3.3 and A3.5. The EU notes that Chinese Taipei 
has never submitted any Quantitative Restrictions notification. 
 EU Questions No. 7 and 8:  Could Chinese Taipei indicate whether they intend to comply with 
this notification obligation in the forthcoming months? In its absence, could Chinese Taipei submit 
the main elements governing the import and export  prohibitions, giving also the reference to the 
relevant legal bases?  
Answer: 
We are still in the process of preparing our Quantitative Restrictions notification and plan to submit 
it before the end of September 2014.  
 
Please see Attachment 1 and Attachment 2 for Pr oducts subject to import/export prohibition and 
their competent authorities.  
Pursuant to Article 11 of “Foreign Trade Act”, we maintain those import/export prohibition 
measures in order to protect public morals, to safeguard international peace and security, to protect human life or health, to fulfil its accession commitment, and to fulfil its obligations under 
international agreements in line with GATT Article XX and Article XXI.  
3.1.6.2 Import licensing Page 48, paragraph 3.58 
According to the report, the import licensing requirements and procedures have remained largely 
unchanged since 2010. According to the most updated questionnaire available at the following web-page: http://www.trade.gov.tw/english/Pages /Detail.aspx?nodeID=101&pid=358904 , it 
seems that Chinese Taipei has introduced several amendments as from 2010.  
 WT/TPR/M/302/Add.1 
 
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  EU Questions No. 9 and 10:  Could Chinese Taipei submit an overview of the main amendments 
introduced in the import licensing requirements? Does it exist a consolidated text of the legislation 
in force?  
Answer: 
Some of the provisions of governing regulation s may be amended, but the amendments are not 
related to the import licensing procedures, th erefore the import licensing requirements and 
procedures have remained unchanged since 2010. Please see Doc. # GLICN1TPKM9 and 
GLICN3TPKM5 of Attachment 3 for details of the completion of our annual questionnaire 
notification and governing regulations notification in 2014. The web-page indicated by the European Union above is the consolidated and updated text of the legislation in force through 
years.  
 3.1.9 Technical regulations and standards 
Page 53, paragraphs 3.87-3.92. 
Reference is made to the commodity inspection, certificates of conformity and testing requirements for products subject to technical regulations before they can be placed on the 
market. 
 EU Questions No. 11 and 12:  Which measures, if any, is Chinese Taipei considering to adopt in 
order to reduce technical barriers arising from certification and testing requirements that are 
Chinese Taipei-specific (ie, not in line with international standards)? Has Chinese Taipei any plan 
to adopt additional international standards or be come a member of international standard setting 
bodies? 
 
Answer: 
Prior to adopting technical regulations which may have effects on trade of other Members, we 
publish a notice in a publication and notify other Members through the WTO Secretariat, in 
accordance with the relevant requirements stipulated in Article 2.9 and Article 5.6 of the TBT Agreement, at an early appropriate stage allowing other Members to have reasonable time to review and make comments.  
 
In accordance with the TBT Agreement and our regulations governing the establishment of our national standards (CNS), during the course of  drafting CNS, where relevant international 
standards and the international standards concerned exist or their completion is imminent, all or 
relevant parts of them shall be used as the basis of drafting our CNS standards.  
To promote internationalization of CNS, we actively harmonize our national standards with 
international standards. As of December 31, 2013, the overall harmonization rate of our national 
standards where corresponding international standards exist is 90.6%. We are not a member of any international standard setting bodies at the present stage. However, we eagerly hope to join 
to become a member of the international standard setting bodies and expect Members’ support.  
 With reference to the BSMI's bilateral cooperation agreements and MRAs: 
 
EU Question No. 13:  Could Chinese Taipei submit more details regarding the scope of these 
agreements, their procedures and the legal forms? 
 
Answer: 
The scope, procedures and the legal forms of our bilateral cooperation agreements and MRAs signed by BSMI are as described in their texts respectively and may vary due to different 
signatories. Members may refer to the texts of the agreements for more details regarding the 
scope, procedures and the legal forms of these agreements. The full texts of these agreements are available on the BSMI website:  
(http://www.bsmi.gov.tw/wSit e/np?ctNode=6280&mp=1).  
 3.1.10 Sanitary and phytosanitary requirements 
Reference is made to the notifications' obligations to the WTO SPS and TBT Committees. The EU 
has noted that, in the past few months and years, Chinese Taipei adopted a number of measures without notifying them to the WTO and conseq uently not even awarding third parties the 
possibility to make comments before the measures is implemented or contest the very substance WT/TPR/M/302/Add.1 
 
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  or the form of the measure (for example import re strictive measures related to phthalates and on 
edible oil).  EU Question No. 14:  Which measures, if any, is Chinese Taipei adopting to avoid such cases in 
the future and comply with its notification' obligations? 
 Answer: 
Since we acceded to the WTO, we have made every effort to comply with our obligations under the 
SPS and TBT agreements, including transparency requirements. Barring emergencies, we have tried to notify all our SPS and TBT measures that may affect international trade to the WTO. If certain measures can facilitate trade or are consistent with international standards, we would 
shorten the comment period when appropriate. All our new and updated measures from this point 
on will be given a comment period of 60 days whenever possible.  
 
Page 56, paragraph 3.106 
The report indicates that Chinese Taipei prohibits to import, inter alia , ground beef from non-
epidemic areas with a reported case of Bovine Spongiform Encephalopathy (BSE) or new variant of 
Creutzfeldt-Jacob Disease within the past ten years. This specific condition is an example where 
Chinese Taipei does not recognise the list of safely traded products as laid down by the OIE and does not respect the BSE- risk categorisation for countries as carried out by the OIE.  
The EU is generally concerned about Chinese Taipei's interpretation of OIE guidelines on BSE. The 
World Organisation for Animal Health Code provides for conditions under which beef and other bovine products can be safely traded from all countries. Most EU countries have now been 
classified by the OIE as countries with "negligible risk" or "controlled risk". EU Member States have 
to undergo a lengthy and non-transparent risk assessment process which can take several years (one Member States has an application pending for now more than 8 years), while other WTO 
Members with the same or even a higher country-risk status for BSE (under OIE), can export beef 
and beef products to Chinese Taipei.  EU Questions No. 15 to 17: 
 - Could Chinese Taipei confirm when and how it will bring its import conditions in line with the 
international standard of OIE with regard to BSE? 
- Could Chinese Taipei explain when it will allow the imports of beef and other products from EU 
Member States and thus apply a non-discriminatory treatment as for other WTO members? 
- Could Chinese Taipei provide its standard processing period for the risk assessment related to 
BSE, thus herewith following the WTO SPS Agr eement requirements mentioned Annex C 1. (b)? 
 Answer:   
We have been gradually amending our BSE-related regulations to align with the OIE guidelines. 
For example, the recently amended “Quarantine Re quirements for the Importation of Dog and Cat 
Food” have incorporated the BSE-risk categorizati on as laid down in the OIE Terrestrial Animal 
Health Code and WTO members’ risk status acco rding to the latest announcement made by the 
OIE on its website. 
 The review of import applications of meat and meat products are based on the standards of OIE 
and Codex, relevant international regulations,  and the principles of WTO/SPS Agreement.  
 Risk communications and the import control measures are formulated and carried out according to the results of the risk assessment.  
 
In accordance with the principles laid down in WTO/SPS Agreement, all countries to export meat products to us are requested to submit applications for approval for market access based on our 
risk management needs. The review process is identical for each applying Member without 
prejudice.  
We are actively processing the import applications  of beef products from EU members. Currently, 
we are still waiting for the applicant members to provide or respond to the required supplemental 
documents to complete the follow-up steps.  WT/TPR/M/302/Add.1 
 
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  The processing period for the mentioned risk assessment depends on the completeness and quality 
of the dossier provided, as well as the prompt  submission of the applicant’s supplementary 
information when requested. In order to accelerate the review process, we closely collaborate and liaise with our trading partners on relevant matters and, when supplementary information is 
deemed necessary, we will notify the applicant in a timely manner.  
 Page 56, paragraph 3.107 
The report notes that importation of bats is prohibited, as well as animals and animal products 
from animal–disease-infected areas, except those meeting the relevant quarantine requirements. With reference to Chinese Taipei's animal health  policy, the EU is concerned about the Chinese 
Taipei's interpretation of defining a disease free status, especially while reviewing the applications, 
and not fully taking into account the possibilities for regionalisation. Despite explicit requests, 
accompanied with all necessary comprehensive documentation, for recognition of disease-free areas in the EU, Chinese Taipei is not recognising the concept of disease free areas and is blocking 
trade more than necessary. Regionalisation (zoning) as an appropriate risk management practice 
is strictly and immediately applied in a transparent manner in the EU in line with international standards, for a number of animal diseases whenev er an outbreak occurs. In accordance with the 
WTO SPS Agreement, WTO Members shall recognise such regionalisation measures and the 
procedures used shall be undertaken and completed without undue delay. This is the foundation for minimal negative trade effects hence emphasising that the application of regionalisation for SPS measures contributes to meet the provisions of Article 5.6 of the SPS Agreement, i.e. to 
choose the least trade-restrictive measures possible.  
 EU Questions No. 18 and 20: 
 - Could Chinese Taipei provide its standard processing period for the risk assessment related to 
recognition of the concept of disease free areas and thus disease free status, in line with the 
WTO SPS Agreement requirements mentioned Annex C 1. (b)? 
- Could Chinese Taipei explain which steps it is und ertaking to accelerate procedural delays to 
recognise disease free status of a country/zone/compartment? 
- Could Chinese Taipei clarify whether they intend to recognise disease free areas in the case of 
African Swine Fever (ASF)? 
 Answer:  
The processing period for risk assessment related to recognition of disease free status depends on 
the completeness and quality of the dossier provid ed, as well as the prompt submission of the 
applicant’s supplementary information when requeste d. In order to accelerate the review process, 
we closely collaborate and liaise with our trading partners on relevant matters and, when the 
supplementary information is deemed necessary, notify the applicant in a timely manner.  
 For streamlining purposes, we are currently revi ewing our procedure for determining disease-free 
status. At the video conference of the TW-EU Bilateral SPS Working Group held in November 2013, 
the EU side committed to providing us with inform ation about the risk assessment methods it uses 
with regards to disease-free recognition. However,  we have yet to receive this information; we 
hope to obtain it soon. 
 As a member of the OIE, we follow the principle of zoning and other OIE guidelines to achieve its 
appropriate level of protection. Considering th e involvement of wild boars and ticks in the 
transmission of ASF, the unavailability of vaccines or treatments, the rapid spread of this disease 
in specific areas, and the importance of domestic  porcine industry to our country, it is necessary 
for us to evaluate the entire situation cautious ly. The recognition of ASF free zones may possibly 
be regained or finalized, if the results of the eval uation indicate that the risks of introducing ASF 
into our territory can be well controlled.  
 
The international standard organisation for animal health (OIE) has defined clear time periods and 
conditions for regaining disease free status for a country/zone/compartment for a number of important diseases. Chinese Taipei requires EU Member States to undergo a lengthy risk 
assessment process for recognition of disease free status and blocking trade for a longer period 
than what is prescribed in the relevant international standards.   WT/TPR/M/302/Add.1 
 
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  EU Question No. 21:  Could Chinese Taipei explain which concrete steps it will undertake to align 
its import conditions with the international standards of OIE with regard to regaining disease free 
status after a disease outbreak?  
Answer: 
We follow the OIE guidelines in reviewing applicat ions for disease-free recognition. When applying 
for regaining disease–free recognition after an outb reak, the applicant will be requested to provide 
information focusing on the previous outbreak. The procedure is significantly simplified in 
comparison with that of the original application.  Page 57, paragraph 3.109 
The report notes that a request for first-time imports of live animals and animal products is subject 
to risk assessment by the quarantine authorities.  
The EU is aware of some examples where Chin ese Taipei does not follow the international 
standards and recommendations set by these organisations. In addition, the risk assessment process carried-out by Chinese Taipei is considered overly lengthy, burdensome and complex. The 
processing period is non-transparent, might take several years and is considered lengthier than 
what is reasonable and necessary. As part of the approval process for several commodities, Chinese Taipei requires to carry out an audit in the exporting country together with the requirement of the approval of individual establishments. In line with international standards 
preference should be given to "system based audits" whereby the control system of the authority 
of the exporting country is recognised instead of requiring an audit and approval per establishment 
which is costly, unnecessarily lengthy and cumbersome. By applying "system based audits", a 
more trade friendly approach for the approval of  establishments could be used, namely via pre-
listing of approved establishments. This means that the competent authorities of the exporting 
country provide a list of establishments which are able to meet the import conditions of Chinese 
Taipei and makes thus individual establishments audits by Chinese Taipei unnecessary once 
Chinese Taipei has approved the control system  of the authorities of the exporting country. 
Chinese Taipei seems to already apply for several countries "system based audit" audits, including "pre-listing" for approval of establishments. The EU notes that Chinese Taipei does not apply this 
for all EU Member countries.  
 EU Questions No. 22 and 24: 
 - Could Chinese Taipei explain how to simplify its first-time application process for animal 
products and on how to ensure that its processing period is shortened, made predictable, and 
that its information requirements are limited to what is necessary for approval? 
- Could Chinese Taipei clarify whether there is any plan to increase the capabilities and 
accelerate handling of these approval procedures? 
- Could Chinese Taipei explain on how it will move to a "system based audit" in line with 
international standards for all WTO Members, together with a system of pre-listing of approved 
establishments, for those commodities for which Chinese Taipei requires a listing of approved establishments? 
 
Answer: 
In this paragraph, the “first-time imports” refers  to the imports of animals or animal products 
without existing quarantine requirements. Since no  quarantine requirements exist, the risk of 
introduction of animal diseases needs to be asse ssed before deciding whether or not and how the 
animals or animal products can be allowed to import for the first time. The application procedure is straightforward, the review is based on the OIE guidelines and other international standards, and 
the information required is limited only to what is necessary for risk assessment. The processing 
period for the mentioned risk assessment depends on the completeness and quality of the dossier provided, as well as the prompt submission of the applicant’s supplementary information when 
requested. When supplementary information is deem ed necessary, we will notify the applicant in a 
timely manner.   
 
Our application procedure for the “first-time import s” is indeed straightforward and the processing 
period is far from time-consuming. In consequence,  there is no plan for us to change our current 
practices and relevant processes at the moment.  
 WT/TPR/M/302/Add.1 
 
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  We follow international norms and the principles of WTO/SPS Agreement to lay down risk-based 
inspection regimes for different products. For example, system based audits have already been applied to meat producing establishments (cutting plants, processing plants, cold stores and warehouses), with the exclusion of slaughterhouses whose risks are considered higher and shall be 
evaluated separately. Furthermore, the approval for establishments producing dog and cat food 
relies mainly on desk review and an on-site au dit will be carried out when necessary, with the 
possibility of adopting the principle of pre-listing . 
 
Page 57, paragraph 3.111 The report notes that importation of plants and plant product is subject to prior clearance from the authorities. The EU notes also that Taiwan has a long list of regulated pests in its quarantine 
requirements for the importation of plants and plants products (according to the BAPHIO online 
information, the quarantine requirements for the importation of plants or plant products contain a total of 1425 regulated pests). 
 
EU Questions No. 25 and 26: 
 
- Could Chinese Taipei explain that it has carried out an appropriate pest risk analysis for each of 
its regulated pests (1425 in total), and can thes e risk analysis be made available to trading 
partners? 
- Could Chinese Taipei explain on how it ensures, at  all times, that it has put in place no more 
stringent phytosanitary import measures applie d to the same pests, if present within the 
territory of Chinese Taipei? 
 
Answer: 
We established the quarantine regulated pest list according to the published scientific evidences 
and the results of the pest risk assessment. Currently, there are 1,425 pests in the list. The 
process we adopt to establish this list conforms with relevant international standards, guidelines 
and recommendations. If members have any opinions or comments on specific pests, we are willing to provide clarification in a timely manner.  
 
According to WTO/SPS Agreement, ISPM and rele vant international standards, guidelines and 
recommendations, for pests that already exist in our territory or are not under official control, we 
do not take relevant quarantine measures. Meanwh ile, if the intercepted pests cannot be identified 
or their existing status in our territory cannot be  confirmed, we may take the necessary quarantine 
measures in consideration of the pest risk.  
 
Page 57, paragraph 3.112 
The report states that requests for first-time imports of plants and plant products are subject to risk assessment by the quarantine authorities.  
EU Question No. 27:  Could Chinese Taipei provide its standard processing period for carrying out 
its risk assessment related to first-time imports of plants and plant products, in line with the WTO 
SPS Agreement requirements mentioned Annex C 1. (b)? 
 
Answer: 
According to the WTO/SPS Agreement, ISPM and re levant international standards, the processing 
period for risk assessment related to first-time imports of plants and plant products depends on 
the completeness and quality of the dossier provid ed, as well as the prompt submission of the 
applicant’s supplementary information when requeste d. In order to accelerate the review process, 
we closely collaborate and liaise with our trading partners on relevant matters and, when the 
supplementary information is deemed necessary, notify the applicant in a timely manner.  
 Page 57, paragraph 3.115  
Agricultural products (including processed products) marketed as "organic" must be certified by a 
certification body accredited by the COA. The EU maintains a list of control bodies and control authorities in the organic sector on the basis of Article 35(b) of Council Regulation (EC) No 
834/2007 
http://ec.europa.eu/agriculture/organic/documents/logo/eu_control_bodies_authorities_en.pdf  
 
EU Question No. 28:  Could Chinese Taipei clarify which EU control body, mentioned in the above 
list (see link) is accredited by COA?  WT/TPR/M/302/Add.1 
 
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  Answer: 
The information can be found on the website: 
http://www.afa.gov.tw/Public/organic Agriculture/20145 231629277055.pdf   
 
EU Question No. 29 : Could Chinese Taipei explore a little further the following part: "Foreign 
certificates of organic agricultural products are accepted for the review process if issued by a 
certification body accredited by the exporting count ry and approved by Chinese Taipei." What does 
this mean in practise? 
 Answer: 
According to the Article 6 of our Agricultural Production and Certification Act, the imported 
agricultural products and the processed products ca n be sold as “organic” under certain conditions. 
Firstly, they should be certified by the certificat ion bodies who are accredited by the national or 
international organic accreditation institutes/organizations recognized by our authority. Meanwhile, 
before the products are sold in the market, they  should also be reviewed by our authority. 
 In practice, the importer shall complete an application form, attaching the relevant document, and 
apply to the authority for review prior to sale. The review is principally a review of written 
documents, but sometimes the authority may request the applicant to provide samples for inspection or testing. If the authority finds any violation in the samples, the inspection rate will be raised. The purpose of the review is to ensure  that the batch has been legally certified and 
conforms with the same standards requirements which our domestic organic products are also 
subject to.  
 
EU Question No. 30: Could Chinese Taipei provide the EU with the list of EU products/companies 
reviewed and approved by the competent authority and placed on the market of Chinese Taipei?  
 
Answer:   
The list is provided as attachment 4.  
 3.3.4 Government procurement 
Page 67, paragraph 3.169 
According to the report, Chinese Taipei has committed to include procurement by the Kaoshiung City Government and its subordinated ad ministrative units to the revised GPA. 
 
EU Question No. 31: Is Chinese Taipei considering to exte nd the scope of application of the 
revised GPA to other city governments (ex. New Taipei City, Tainan and Taichung) and when? 
 
Answer:   
Currently, we have no plan to extend the scope of application of the revised GPA to other city 
governments.  
 
3.3.6 Intellectual property rights 3.3.6.1 Overview 
Page 74, paragraph 3.192 
The text states that the Cross-Strait Agreement on IPR Protection and Cooperation of 12 September 2010 aims at enhancing cooperation on the protection of IP rights.  
 
EU Questions No. 32 and 33: What are the concrete results of this agreement after the first four 
years of its implementation? Do these results meet the expectations of Chinese Taipei?  
 
Answer: 
 
The concrete results we have achieved include the following: 
1. Establishment of a communication platform and a mechanism for disposition and 
consultation: We use the platform and mechanism to help people settle disputes over trademark, patent and copyright cases. 
2. Formation of four working groups for patent, trademark, copyright, and plant variety rights: 
These groups meet annually to discuss and seek  consensus on issues of mutual concern. 
3. IPR affairs exchange and examination cooperation: We take turns with mainland China to 
hold the annual patent, trademark and copyrights forum. Starting 2013, both sides began the WT/TPR/M/302/Add.1 
 
- 11 - 
 
  exchange program for patent and trademark examiners to increase understanding of each 
other’s legislation, examination standards and related practices. 
 We are satisfied with the results achieved so far, as they have deepened many areas of mutual 
understanding and cooperation.  
 3.3.6.6 Enforcement of IPRs 
Page 81, paragraph 3.214/Table 3.25:  
The table 3.25 seems to indicate that customs au thorities of the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu carry out enforcement measures against commodities 
infringing trademarks (import/export) and copyrights (import), but not other IP rights. 
 
EU Questions No. 34 and 35:  Could Chinese Taipei clarify whether customs authorities carry out 
enforcement measures against commodities infringing other IP rights than trademarks and 
copyrights? If this is not the case, could Chinese Taipei indicate what are the specific arguments 
against extending enforcement measures to other IP rights?  
Answer:  
Besides commodities infringing trademarks and co pyrights, we also carry out border measures 
against imported commodities infringing patent rights.   
A patentee may request Customs to detain imported commodities that are suspected of infringing 
the patent rights by providing specific shipping information thereof together with a security amounting to the duty-paid price of the imported commodities.  
 
4 TRADE POLICY BY SECTOR 4.1.2 Fishery 
Page 94, paragraphs 4.50-4.51: 
Despite the announced efforts to reduce fishing capacity, Chinese Taipei's fish production is continuously increasing.  
EU Question No. 36: How could Chinese Taipei explain this trend?  
 
Answer: 
During the past decade, our total fish production in terms of harvest volume reached its highest point in 2007, mainly due to the rapid increase in  consumption. Responding to this trend, hawse 
have developed a high-quality aquaculture industry, which contributes to an increase of 5-10 % in 
fish production.  
 4.4 Services 4.4.1 Overview 
Chinese Taipei selected ten key services industries as the main focus to promote its industrial 
development policy.  
EU Question No. 37: In these ten key industries, and more broadly in all services areas, what 
measures does Chinese Taipei intend to take, to enhance competitiveness, which could have a 
trade policy dimension (such as facilitating foreign investments, diminishing current restrictions on 
national treatment etc)? 
 Answer: 
Through the following measures, the level of internationalization of our service industry is 
expected to be enhanced, export competitiv eness strengthened, and foreign investments 
increased. 
1. To improve the international logistics supply chain by strengthening harbor and airport 
infrastructures  
2. To seek business opportunities by utilizing a service trade information platform  
3. To assist our brand-name restaurants and bakeries to expand overseas markets  
4. To simplify entry procedures to allow foreign visitors easy access to our medical services 
5. To strengthen cross-border industrial c ooperation by assisting local industries’ 
participation in overseas contests, or organizing international conferences and exhibitions  WT/TPR/M/302/Add.1 
 
- 12 - 
 
  6. To provide innovative financial products or  services such as flexible denomination 
stocks. 
 4.4.2 Banking, finance and insurance 
4.4.2.1 Overview 
Page 102, paragraph 4.94 According to the report, the Financial Supervisory Commission (FSC) remains responsible for the 
supervision of banking, insurance, securities institutions, and financial holding companies. 
Following the recent amendments of July 2012, the FSC's duties and functions remain the same, but its Board of Commissioners was reconfigured including certain Ministers as ex officio commissioners to facilitate communication and coordination on financial supervisory matters. 
 
According to OECD standards financial supervisory authorities should enjoy a high degree of operational independence in order to prevent decisi ons to be taken for non-prudential (eg political, 
economic policy) grounds which may be in conflict with prudential considerations (financial 
stability, investor protection).  
EU Question No. 38: Isn't there a risk that non prudential, political considerations will become 
more important in decisions taken by the financial supervisory agency of Chinese Taipei, given that 
several minsters have been appointed ex o fficio commissioners of this authority?  
 
Answer:  
In order to enhance the effectiveness of the FSC’s financial supervision and to strengthen its 
function of policy coordination and integration, and also to tie in with the FSC’s reorganization as a 
single-head agency, the FSC’s Board of Commissioners is designed to have 6 to 12 commissioners, 
including the Minister of Finance, the Minister of Ec onomic Affairs, and the Minister of Justice as ex 
officio commissioners. This structure has been adopted with reference to similar arrangements 
overseas, and is designed to establish and maintain financial stability. 
 The composition of the Board is flexible, and includes members other than the ex officio commissioners. These other commissioners can be the head of any related agency or any other 
person with financial expertise that the premier chooses to appoint. 
 As for the FSC's organization and operations, issues related to major financial policies, supervision 
systems, and other measures to maintain the financial market’s stability must be reported to the 
Board of Commissioners. Through the Board meetings, the FSC closely communicates and coordinates with ministries related to financial affairs.  
 
A “single-head agency” is defined as one where a single person makes policy decisions and assumes sole responsibility for those decisions. The function of the FSC’s Board of Commissioners 
is to provide coordination, integration, and co nsultation, not to engage in the making and 
implementation of the FSC’s policies. Thus, the presence of other ministers on the Board of 
Commissioners will not result in non-prudential, political considerations affecting decisions made by the FSC.  
 
4.4.5 Tourism Page 112, paragraph 4.148 
According to the report, non-local investors wishing to establish subsidiaries in the market must 
obtain approval from the Tourism Bureau, recognition and approval in accordance with Company Law, and a travel enterprise licence.   
EU Question No. 39: Could Chinese Taipei provide more information on the approval system and 
a licencing procedure?  
 
Answer: 
To register a travel company, the approval system and licencing procedure are as follows: 
1. Obtain verification for “company name and busi ness items” from the Ministry of Transportation 
and Communications’ Tourism Bureau and Ministry of Economic Affairs’ Department of 
Commerce. 
2. Apply for establishment to the Ministry of Tr ansportation and Communications’ Tourism Bureau, 
(If the company is foreign-invested, a permit must be attained from the Ministry of Economic 
Affairs’ Investment Commission first). WT/TPR/M/302/Add.1 
 
- 13 - 
 
  3. Register the company with the local competent agency. 
4. Send a formal application to the Tourism Bureau. 5. The travel company needs to obtain approval from the Tourism Bureau within one month after 
receiving its license in order to officially operate its business. 
 
More detailed information on application and procedures can be found on the Tourism Bureau website: http://admin.taiwan.net.tw/public/public.aspx?no=208   
 
All the licencing procedures are also listed in the Chapter II(Regulation of Travel Agencies) of the 
Regulations Governing Travel Agencies, which can be found on the following Tourism Bureau website: http://admin.taiwan.net.tw/law/law_d_en.aspx?no=9&d=574   
 
4.4.6 Professional services 4.4.6.1 Legal services 
Page 113, paragraph 4.152 and 4.153 
According to the report, foreign attorney who does not obtain permission from the MOJ to provide legal services in Chinese Taipei, may not establish a law firm or employ attorneys to practice law 
for profit, or enter a partnership with attorneys to practice law.  
 EU Question No. 40:  Could Chinese Taipei provide information on the requirements based on 
which permission by MOJ and approval is granted?  
 
Answer:  
Article 47-3 and Article 47-4 of Attorney Regulati on Act stipulate, respectively, the qualification 
requirements set out by the Ministry of Justice th at a foreign attorney shall fulfill and conditions 
that shall not permit a foreign attorney to practice law.  
 
Furthermore, also the Non-citizens who take the Attorney Qualification Examinations in Chinese 
Taipei and receive the attorney licence, must obta in approval from the MOJ before practicing as 
lawyers.  
EU Question No. 41:  Could Chinese Taipei clarify whether Chinese Taipei citizens have also to 
obtain the approval from the MOJ before practicing as lawyers? 
 
Answer:  
When one meets the following requirements, he or sh e is qualified to practice law in the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu, and such requirements apply to both 
citizens and non-citizens:  
 1. Pass the bar exam, and obtain the lawyer license. 2. Complete the New Admittees Training Program. 
3. Become a member of a Bar Association. 
 However, when a foreigner wants to work or be employed in the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu, he or she needs to apply to obtain work visa from the 
Ministry of Labor and the entrance visa from the authority. Therefore, it states that a foreign 
attorney needs to acquire permission from the MOJ, and he or she can apply for the work visa and 
entrance visa based on the permission granted by the MOJ.  
 WT/TPR/G/302 – WTO Government's Report  
3 DOMESTIC POLICY ENVIRONMENT AND REFORMS 
3.3 Industrial development policy and reform and 3.4 Tax reform Page 8 
Chinese Taipei mentions a number of industrial or tax incentive programmes. 
 EU Question No. 42:  Could Chinese Taipei clarify whether these programmes are available to 
foreign investors on a non-discriminatory basis? 
 Answer:  
According to the provisions of Article 2 under th e Act for Industrial Innovation, "Company" refers 
to companies established in accordance with the Co mpany Act. If a foreign corporation is set up in WT/TPR/M/302/Add.1 
 
- 14 - 
 
  accordance with the Company Act, relevant provisions of the Act for Industrial Innovation would 
apply for that corporation.  
 3 DOMESTIC POLICY ENVIRONMENT AND REFORMS 
3.1 Macroeconomic policy 
Page 7, paragraph 3.2 According to the Government, the development of new export markets to expand exports 
and efforts to spur investment in public construction projects are the primary pillars 
of the Economic Power-up Plan.  EU Question No. 43: Could Chinese Taipei clarify whether there are investing their efforts 
towards specific markets and/or sectors?  
 Answer: 
The following measures to develop export markets under the Economic Power-up Plan are designed for specific markets and/or sectors: 1. Increase value-added exports and explore emerging markets 
(1) Strengthen research of emerging markets, studying at least 16 cities and 14 products in 
those markets every year. 
(2) Establish footholds in major business cities of emerging markets in which have our 
official representatives are not stationed. 
(3) Select “leading manufacturers” to guide others in developing emerging markets; 
promote 12 models of success in exploring emerging markets in. 
(4) Promote various developments of free trade ports. 
2. Enhance the competitiveness of service exports 
(1) Expand overseas marketing of globally co mpetitive services: help internationally 
competitive food and beverage enterprises set up shop overseas. 
(2) Host 1,000 international conferences and 1,000 exhibitions (including tourism 
promotions) in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu to generate NT$90 billion (US$3 billion) in business opportunities for the exhibition business and peripheral industries; these will be integrated into our tourism calendar.   
 
3.4 Tax reform Page 8, paragraph 3.10 
In 2010, as part of the package of policies to achi eve overall adjustment in response to the expiry 
of the SUI (and thus the removal of most tax incentives), the government reduced the income tax rate for profit seeking enterprises from 25% to 17% so as to relieve the tax burden on enterprises 
and enhance the international competitiveness of the investment environment. 
 EU Question No. 44:  Could Chinese Taipei clarify whether the reduced income tax rate is 
applicable also to foreign owned companies?  
 
Answer:  
Where a profit-seeking enterprise has its head office located outside the Separate Customs 
Territory of Taiwan, Penghu, Kinmen  and Matsu, but with all or part of its branches or any of its 
business agents within the Separate Customs Te rritory of Taiwan, Penghu, Kinmen and Matsu, 
profit-seeking enterprise income tax shall be levied on that part of the business profits derived 
from the operation within the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu. 
The profit-seeking enterprise shall file an annua l income tax return and a 17% tax rate is also 
applicable to the annual taxable income of the profit-seeking enterprise.  
 
4 TRADE AND INVESTMENT POLICY DEVELOPMENTS 
Other trade-related agreements Page 14, paragraph 4.26  
Chinese Taipei refers to its BITs an d on-going negotiations for BITs.  
 EU Questions No. 45 and 46: do these treaties include investment protection and market 
access? Are there any sectors excluded from those treaties? What are the most significant cases of 
additional market access granted by Chinese Taipei under these agreements?   
 WT/TPR/M/302/Add.1 
 
- 15 - 
 
  Answer:  
During the period of this trade policy review, we signed 4 bilateral investment agreements (BIAs), 
with Saint Vincent and the Grenadines, Gambia, Japan and mainland China. The BIAs with Saint Vincent and the Grenadines, Gambia and mainland China include only investment protection, with 
no market access provisions, and they exclude no  sectors. The BIA with Japan liberalizes our 
bilateral investment, except for those non-conformi ng measures as annexed in the “negative list.”  
L i k e  t h e  i n v e s t m e n t  c h a p t e r s  o f  t h e  E C A s  w e  s i g n e d  w i t h  S i n g a p o r e  a n d  N e w  Z e a l a n d ,  o u r  
liberalization commitments go beyond what we made in the WTO in sectors such as maritime 
services and telecommunication.  
 WT/TPR/M/302/Add.1 
 
- 16 - 
 
   
Competent Authority of the Commodities ( 70 items) Subject to Import Prohibition 
Item No. Competent Authority 
Item 1~13 Council of Agriculture, Executive Yuan 
Item 14~16 Council of Agriculture, Executive Yuan and Ministry of 
Health and Welfare 
Item 17~22 Council of Agriculture, Executive Yuan 
Item 23~62 Environmental Pr otection Administration 
Item 63 Council of Agriculture, Executive Yuan and  Ministry 
of Health and Welfare 
Item 64~70 Environmental Pr otection Administration 
 Attachment 1 WT/TPR/M/302/Add.1 
 
- 17 - 
 
  Products subject to import proh ibition (As of 23 May, 2013) 
 H.S. Code   Description of commodities 
1. 00208.90.29.20-4 Meat of dogs 
2. 0301.99.29.50-4 Whale shark (Rhincodon typus), live  
3. 0302.65.00.10-5 Whale shark, fresh or chilled  4. 0302.69.99.80-8 Puffer fish, fresh or chilled 
5. 0303.75.00.10-2 Whale shark (Rhincodon typus), frozen  
6. 0303.79.99.30-6 Puffer fish, frozen  7. 0304.19.90.40-5 Whale shark (Rhincodon typus) fillets and its meat, fresh or chilled 8. 0304.19.90.60-0 Puffer fish fillets and its meat (whether or not minced), fresh or chilled  
9. 0304.29.90.41-2 Whale shark, fillets or steaks, frozen 
10. 0304.29.90.70-6 Puffer fish fillets and its meat (whether or not minced), frozen 
11. 0304.99.19.10-2 Puffer fish, minced (surimi), frozen  
12. 0305.30.90.30-1 Ball puffer fillets, dried, salted or in brine, but not smoked  
13. 0305.59.90.30-7 Puffer fish, dried  14. 0602.90.10.10-9 Mushroom spawn, containing narcotics 
15. 1207.99.20.90-8 Other Huo Ma Jen (Cannabis Fructus) 
16. 1404.90.99.50-2 Mushroom products, containing narcotics 17. 1604.19.90.31-1 Ball puffer fish, whole or in pieces, but not minced, prepared or  
  preserved, frozen  
18. 1604.19.90.32-0 Ball puffer fish, whole or in pieces, but not minced, prepared or  
  preserved, canned 
19. 1604.19.90.39-3 Other ball puffer fish, whole or in pieces, but not minced, prepared or 
preserved  
20. 1604.19.90.71-2 Whale shark (Rhincodon typus), whole or in pieces, but not minced,  
  prepared or preserved, frozen  
21. 1604.19.90.72-1 Whale shark (Rhincodon typus), whole or in pieces, but not minced,  
  prepared or preserved, canned  
22. 1604.19.90.79-4 Other whale shark (Rhincodon typus), whole or in pieces, but not minced, 
  prepared or preserved 
23. 2710.19.51.21-9 Blending oils containing 70% or more by weight of petroleum products 
  (containing polychlorobiphenyls)  
24. 2710.91.10.00-5 Oil, electric transformer, co ntaining polychlorobiphenyls, polychlorinated 
  naphthalene chloronaphthalen, polychlorinated terphrnyls or hexachloro 
  benzene, perchlorobenzene 
25. 2710.91.20.00-3 Condenser oil, electric, containing polychlorobiphenyls, polychlorinated 
  naphthalene chloronaphthalen, polychlorinated terphrnyls or hexachloro 
  benzene, perchloro benzene  
26. 2710.91.90.00-8 Other oil containing polych lorinated biphenyls (PCBs), polychlorinated 
  terphenyls (PCTs) or polybrominated biphenyls (PBBs) 
27. 2830.90.90.10-2 Trinickel disulfide 
28. 2852.00.00.90-6 Other Compounds, inorganic or organic, of mercury, excluding amalgams. 29. 2903.14.00.00-8 Carbon tetrachloride  
30. 2903.19.10.10-9 1,1,1-Trichloroethane, Methyl Chloroform, C2H3Cl3  
31. 2903.41.00.00-5 Trichlorofluoromethane  32. 2903.42.00.00-4 Dichlorodifluoromethane  
33. 2903.43.00.00-3 Trichlorotrifluoroethane  
34. 2903.44.00.00-2 Dichlorotetrafluoroe thane and Chloropentafluoroethane 
35. 2903.45.00.11-8 Chlorotrifluoromethane (CFC-13)  36. 2903.45.00.21-6 Pentachlorofluoroethane (CFC-111)  
37. 2903.45.00.22-5 Tetrachlorodifluoroethane (CFC-112)  
38. 2903.45.00.31-4 Heptachlorofluoropropane (CFC-211)  39. 2903.45.00.32-3 Hexachlorodifluoropropane (CFC-212)  
40. 2903.45.00.33-2 Pentachlorotrifluoropropane (CFC-213)  
41. 2903.45.00.34-1 Tetrachlorotetrafluoropropane (CFC-214)  42. 2903.45.00.35-0 Trichloropentafluoropropane (CFC-215) 
43. 2903.45.00.36-9 Dichlorohexafluoropropane (CFC-216)  
44. 2903.45.00.37-8 Chloroheptafluoropropane (CFC-217) 45. 2903.46.00.00-0 Bromochlorodifluoromet hane, bromotrifluoromethane and   
  dibromotetrafluoroethanes  
46. 2903.49.00.31-0 1,2-Dibromo-3-Chloropropane (DBCP)  Attachment 1  WT/TPR/M/302/Add.1 
 
- 18 - 
 
  47. 2903.51.00.00-2 1, 2, 3, 4, 5, 6-Hexachlo rocyclohexane (HCH (ISO)), including lindane 
  (ISO, INN) 
48. 2903.62.10.00-7 Hexachlorobenzene (ISO) 49. 2903.62.20.00-5 DDT (ISO) (clofenotane (INN), 1,1,1-trichloro-2,2-bis (pchlorophenyl) 
  ethane) 
50. 2904.20.00.14-3 P-nitrobiphenyl  51. 2908.11.00.00-6 Pentachlorophenol (ISO)  
52. 2908.19.10.00-6 Salts of pentachlorophenol (ISO)  
53. 2908.19.90.20-5 2, 4, 5-trichlorophenol  54. 2909.19.90.10-6 Dichloromethyl ether  55. 2909.19.90.30-2 Chloromethyl methyl ether  
56. 2921.45.00.60-6 2-naphthylamine (beta-naphthylamine)  
57. 2921.45.00.71-3 2-naphthylamine (beta-naphthylamine) acetate  58. 2921.45.00.72-2 2-naphthylamine (beta-naphthylamine) hcl  
59. 2921.49.00.10-3 4-aminobiphenyl  
60. 2921.49.00.20-1 4-aminobiphenyl hcl  61. 2925.29.00.10-3 Hydroxylimine HCL  
62. 2929.90.00.10-3 Alpha-bromobenzyl cyan ide (benzeneacetonitrile, bromo)  
63. 3301.90.11.00-8 Extracted oleoresins of opium  64. 3403.19.90.10-5 Lubricating preparations, containing polychlorinated biphenyls,  
  polychlorinated naphthalene, ch loronaphthalene, polychlorinated  
  terphenyls or hexachloro benzene, perchlorobenzene,  
65. 3404.90.90.10-6 Waxes composed of polychloro-biphenyls or polychloronaphthalenes  66. 3813.00.00.10-9 Preparations and charges for fire-extinguishers, containing   
  bromotrifluoromethane (halon-1301), bromochlorodifluoromethane  
  (halon-1211)or dibromotetrafluoroethane (halon-2402)  
67. 3824.90.23.10-0 Condenser oil not of mineral oil origin, (containing polychlorinated  
  biphenyls, polychlorinated naph thalene, chloronaphthalene,   
  polychlorinated terphenyls or hexachloro benzene, perchlorobenzene)  
68. 3824.90.99.11-8 Polychlorobiphenyls  69. 8424.10.00.10-8 Fire-extinguishers, contai ning bromotrifluoromethane (halon-1301), 
  bromochlorodifluoromethane (halon-1211) or dibromotetrafluoroethane 
  (halon-2402)  
70. 8548.10.10.00-9 Waste lead-acid accumulators and spent lead-acid accumulators  
 
Total: 70 items WT/TPR/M/302/Add.1 
 
- 19 - 
 
   
Competent Authority of the Commodities ( 70 items) Subject to Export Prohibition 
Item No. Competent Authority 
Item 1~6 Council of Agriculture, Executive Yuan 
Item 7~13 Council of Agriculture, Executive Yuan and Ministry of 
Health and Welfare 
Item 14~16 Council of Agriculture, Executive Yuan 
Item 17~18 Bureau of Mines, Ministry of Economic Affairs 
Item 19~25 Environmental Protection Administration 
Item 26~32 Ministry of National Defense 
Item 33 Ministry of National Defense and National Police 
Agency, Ministry of the Interior  
Item 34 Competent Authority of each specific disciplines 
Item 35 Ministry of Culture 
 Attachment 2 WT/TPR/M/302/Add.1 
 
- 20 - 
 
  Products subject to export proh ibition (As of 23 May, 2013) 
 H.S. Code   Description of commodities 
1. 0208.90.29.20-4 Meat of dogs 
2. 0301.99.29.50-4 Whale shark (Rhincodon typus), live  
3. 0302.65.00.10-5 Whale shark, fresh or chilled  4. 0303.75.00.10-2 Whale shark (Rhincodon typus), frozen  
5. 0304.19.90.40-5 Whale shark (Rhincodon typus) fillets and its meat, fresh or chilled 
6. 0304.29.90.41-2 Whale shark, fillets or steaks, frozen 7. 0602.90.10.10-9 Mushroom spawn, containing narcotics 8. 1211.90.60.00-1 Putchuck, new (Radix Saussureae)  
9. 1211.90.91.41-5 Guang Fang Jee (Radix Aristolochiae Fangchi) 
10. 1211.90.91.42-4 Guan Mu Tong (Caulis Aristolochiae Manshuriensis)  11. 1211.90.91.43-3 Mar Doe Ling (Fructus Aristolochiae)  
12. 1211.90.91.44-2 Ten Shen Tirng (Caulis Aristolochiae)  
13. 1404.90.99.50-2  Mushroom products, containing narcotics  14. 1604.19.90.71-2 Whale shark (Rhincodon typus), whole or in pieces, but not minced,  
  prepared or preserved, frozen  
15. 1604.19.90.72-1  Whale shark (Rhincodon typus), whole or in pieces, but not minced,  
  prepared or preserved, canned  
16. 1604.19.90.79-4 Other whale shark (Rhincodon typus), whole or in pieces, but not minced, 
  prepared or preserved 
17. 2505.90.00.00-7 other natural sands of all kinds, whether or not coloured, other than 
  metal-bearing sands of Chapter 26  
18. 2517.10.90.00-1 Pebbles, gravels, broken or crushed stone, of a kind commonly used for 
  concrete aggregates, for road metalling or for railway or other ballast,   shingle and flint, whether or not heat-treated  
19. 2903.51.00.00-2 1,2,3,4,5,6-Hexachlorocycloh exane (HCH (ISO)), including lindane (ISO, 
  INN 
20. 2921.45.00.60-6 2-naphthylamine (beta-naphthylamine)  21. 2921.45.00.71-3 2-naphthylamine (beta-naphthylamine) acetate  
22. 2921.45.00.72-2 2-naphthylamine (beta-naphthylamine) hcl  
23. 2921.49.00.10-3 4-aminobiphenyl  24. 2921.49.00.20-1 4-aminobiphenyl hcl  
25. 2925.29.00.10-3 Hydroxylimine HCL  
26. 8710.00.00.10-3 Tanks and other armoured fighting vehicles, motorised, whether or not 
  fitted with weapons  
27. 8710.00.00.20-1 Parts of tanks and other armoured fighting vehicles, motorised  
28. 8906.10.00.00-7 Warships  29. 9301.11.00.00-5 Self-propelled, artillery weapons  30. 9301.19.00.00-7 Other artillery weapons  
31. 9301.20.00.00-4 Rocket launchers; flame-throwers; grenade launchers; torpedo tubes and 
  similar projectors  
32. 9301.90.00.00-9 Other military weapons  
33. 9705.00.00.20-6 Collections and collectors' pieces of weapon  
34. 9705.00.00.90-1 Other collections and collectors pieces of zoological, botanical,  
  mineralogical, anatomical, historical, archaeological, palaeontological, 
  ethnographic or numismatic interest  
35. 9706.00.00.90- Other antiques of an age exceeding one hundred years  
  
Total: 35 items Attachment 2  WT/TPR/M/302/Add.1 
 
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WT/TPR/M/302/Add.1 
 
- 22 - 
 
  
 WT/TPR/M/302/Add.1 
 
- 23 - 
 
  Attachment 4: The Import Organic Prod ucts Certified by EU CB (2009-2013)  
Top 5 Categories Top 5 Companies 
Crop without Rice Lianruifa Farm Products (Dalian) Co. Ltd.  
Dalian Shengfang Organic Food Co. Ltd. 
Doens Food Ingredients B.V. Oranjestraat 40A 4515 CA Ijzendijke 
The Netherlands 
DunHua DeWei Organic Products Co., Ltd 
Dalian Xinglongken Organic Products Co. Ltd. 
Cereal Product Helsinki Mills Ltd. 
PASTIFICIO LUCIO GAROFALO S.P.A. 
Mestemacher GmbH 
Shandong World Import & Export Co. Ltd 
Morning Foods Limited 
Drink Product PACMAR (PTY) Ltd 
Voelkel GmbH 
Josef polz Alztaler Fruchtsafte GmbH 
AROMAPRODUCT LTD 
LIQUATS VEGETALS, SA 
Sugar and Sugar Processed 
Product Usina Sao Francisco S/A 
AS-SUKKAR S.A. 
OTISA SUGAR MILL 
Raw Brown Sugar Milling Company Inc. 
TRADIN ORGANIC AGRICULTURE B.V. 
Oil Product BZ Bio-Zentrale Naturprodukte GmbH 
ORGANIC OILS S.P.A. 
CERTIFIED ORIGINS ITALIA SRL 
FREDIANI E DEL GRECO SRL 
Basso Fedele E Figli S.R.L. Societa' Unipersonale 
 WT/TPR/M/302/Add.1 
 
- 24 - 
 
  Australia 
 
Report by the Secretariat - WT/TPR/S/302  
3 TRADE POLICIES AND PRACTICES BY MEASURE 
 3.1.7.2 Anti-dumping and countervailing 
Page 50, Paragraphs 3.69 and 3.70 and footnote 64 
 The Secretariat Report notes that in the context of applying provisional measures, the authorities may “consider to examine” whether a duty lower than the margin of dumping would be sufficient 
to remove injury. 
 Australia Question No. 1: Could Chinese Taipei please clarify whether its authorities apply the 
lesser duty rule when considering the application of anti-dumping and countervailing duties.  
 Answer: 
In practice, we do not apply the lesser duty rule  when considering the application of anti-dumping 
and countervailing duties.  
Australia Question No. 2: Could Chinese Ta ipei also clarify whether it has a public 
interest test when considering the app lication of anti-dumping and countervailing 
duties.   
 Answer: 
A public interest test will be taken when considering the application of anti-dumping and countervailing duties.  
 
3.1.10 Sanitary and phytosanitary requirements 
Page 54, section 3.97 Australia appreciates Chinese Taipei’s decision to establish an MRL for ractopamine in beef in 2012. 
 
Australia Question No. 3: (deleted) 
 
Answer: 
 
Page 58, section 3.116 
 
Australia Question No. 4: What GM plant was authorised for marketing and sale as of May 
2014? 
 
Answer: 
Since our authority has not issued any approval for GM plant, so far no GM plant can be sold in the 
domestic market    
 
3.2.6 Free Zones  Page 61, Paragraphs 3.138 and 3.141 
 
Australia Question No. 5: The Secretariat Report notes that 568 enterprises, including 68 
foreign-invested enterprises, operate in 10 export processing zones. Could Chinese Taipei advise 
how many enterprises, including the number of fo reign-invested enterprises, currently operate in 
the free trade zones?   
 Answer: 
There are 74 enterprises, including 4 foreign-invest ed enterprises that are operating in 6 Port Free 
Trade Zones.   
 
3.3.2.3 Assistance to small-and-medium-sized enterprises 
Page 65, Paragraphs 3.161 The Secretariat Report notes that, as a result  of the negative impact of liberalization, 
low interest loans are provided to help cert ain enterprises to switch to new industry WT/TPR/M/302/Add.1 
 
- 25 - 
 
  sectors and products. The Report provides an  example where enterprises “suffer due to 
a surge of certain product imports”.  Australia Question No. 6: Could Chinese Taipei please elaborate on the requirements and 
conditionalities for providing such assistance, including how the authorities determine “a surge of 
certain product imports” and whether there is an assessment of the level of injury.  
 
Answer: 
“Loans to Assist SMEs Affected by Trade Liberalization” offers low-interest financing to assist the 
upgrading and the transformation of SMEs affected by trade liberalization, with the aim of helping 
SMEs resolve operation difficulties and strengthen competitiveness. The identification of affected 
industry is handled by stipulated Ministry of Economic Affairs’ International Trade Commission 
according to “Rules for Handling Import Relief Cases”. The Commission conducts careful investigations to identify the affected industries. Once an affected industry is identified, loans to 
assist in upgrading and transformation will be pr ovided to help firms recover from the impact.  
 
3.3.5.2 Price controls and price-stabilization measures 
Page 73, Paragraph 3.187 
 The Secretariat Report notes that there is monitoring of prices of certain commodities 
and products and coordination of their suppl y and demand. It notes that there is price 
monitoring including for construction materi als (iron and steel, sands and stones, etc). 
 Australia Question No. 7 and No 8: Could Chinese Taipei elaborate on the mechanism used for 
price monitoring and price stabilization for iron and steel. Do such measures also apply to 
agricultural commodities? Do they apply to milk powders?  
Answer:  
In the first half of 2008, international prices for oil and raw materials rose sharply. To alleviate the 
impact on people's well-being, in May 2008 the Ex ecutive Yuan created the Price Stabilization Task 
Force, to implement the Current Prices Stabilizat ion Plan and set up the “The Price Stabilization 
Committee”. The convener of this Committee is th e vice premier, and the meeting is convened 
non-scheduled intermittently or intensively. The primary task of the Committee is monitor prices of some specific commodities and raw materials. The Committee also coordinates the supply and 
demand of those commodities and raw materials when necessary. A number of price stabilization 
measures as well as some supporting measures have been adopted at the up, mid, and downstream levels. 
 
The measure applies to steel and iron products. But there are no cases of abnormal price fluctuations, so the price stability mechanism is not activated. The measures also apply to milk 
powders. Most of our milk powder commodities are imported from other countries. The 
international price once was going to highly level, price-stabilization measures were adopted on some milk powder imported commodities by dynamically reducing tariffs.  
 
4 TRADE POLICIES BY SECTOR 
4.1.1.2 Agricultural policy objectives Page 85, paragraph 4.7 
 
Australia Question No. 9: In what ways are young farmers encouraged to plant import 
substitution crops? 
 
Answer: 
In order to encourage young farmers to plant import substitution crops, hawse have adopted many measures such as providing subsidies for farming equipment, setting up a platform for farmland 
renting brokerage, providing interest-free loans fo r renting land and low-interest loan for business 
operations, and implementing disaster relief assistance etc. WT/TPR/M/302/Add.1 
 
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  4.1.1.3.2 Tariff quotas 
Page 86, paragraph 4.11  Australia Question No. 10: Australia seeks further clarification and transparency on the method 
in which the Agriculture and Food Agency establishes the ceiling and floor prices for its country 
specific quotas on rice.  
Answer: 
The ceiling price of rice procurement by our gove rnment is calculated as the sum of rice cost, 
which is surveyed from exporters and other sources before every tender, freight and insurance premium, charges at the importing port, and other inland fees.  
 
The ceiling price is reviewed and decided before ea ch tender and  announced to the public if the 
tender is awarded. 
 
4.4.2.2 Banking Page 102, Paragraph 4.97 and footnote 36 
 
Australia Question No. 11:  The Secretariat Report notes in the banking sector the 25 per cent 
cap on total shares with voting rights for each investor was removed. Could Chinese Taipei advise 
what factors the Financial Supervisory Commission takes into account when considering whether 
to approve an acquisition of a bank’s outstanding voting shares? 
 Answer: 
To ensure the transparency of shareholders' eq uity holdings and shareholder eligibility, the 
Banking Act as amended on December 30, 2008 provides that a single party or single group of related parties that singly, jointly, or collectively acquires more than 5% of a bank's outstanding 
voting shares shall report such fact to the competent authority. Also, a single party or group of 
related parties that intends to singly, jointly, or  collectively hold a stake of more than 10%, 25%, 
or 50% of a bank's outstanding voting shares shall apply for prior approval from the competent authority. 
 
To strengthen banks’ shareholding structure and to  bring in sound capital, the requirement that a 
single party or single group of related parties th at singly, jointly, or collectively cannot acquire 
more than 25% of a bank's outstanding voting shares was eliminated. 
 The “Regulations Governing the Holding by a Single Party or Single Group of Related Parties of 
More Than a Specified Percentage of the Issued Voting Shares of a Single Bank” requires that 
those who intend to acquire a stake of more than 10%, 25%, or 50% of a bank's outstanding voting shares shall provide explanations and do cuments to the FSC. For instance, they must 
provide reasonable assurance that they are honest , upright, and law-abiding in their conduct, and 
they must further provide a reasonable explanatio n of any interested party relationship with a 
financial holding company or bank. In addition, the leader of a financial holding company or bank must not run afoul of any disqualification criteria.   
 
4.4.4 Transport 4.4.4.1 Maritime transport 
Page 109, Paragraph 4.130 
 Australia Questions No. 12:  The Secretariat Report notes that Chinese Taipei did not include 
maritime transport services in its GATS commitments, but Chinese Taipei offered commitments in 
maritime transport services in its 2005 Doha Round offer. Could Chinese Taipei advise whether its 
applied regime on non-local investment and cross-border trade restrictions is reflected in Chinese Taipei’s 2005 offer? 
 
Answer:  
The commitments in maritime transport services in our 2005 Doha Round offer reflect our applied 
regime.  WT/TPR/M/302/Add.1 
 
- 27 - 
 
  4.4.6 Professional services 
4.4.6.3 Architectural services Page 114, Paragraphs 4.161 and 4.162  
Australia Questions No. 13 and No. 14: The Secretariat Report notes that any citizen, including 
foreigners, may act as an architect if qualified through the architect examination. Is the architect 
examination provided in languages other than Chinese?  Are foreigners allowed to supply ‘architect 
certification practice’ as referred to in the limitations outlined in Chinese Taipei’s GATS 
commitments?  
 Answer:   
The architect examination is provided in Chinese only. 
 According to our GATS commitments, services related to architect certification practice in the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu can only be provided by 
licensed architects of the Separate Customs Terri tory of Taiwan, Penghu, Kinmen and Matsu, and 
such access is restricted to natural persons who have established an office other than in a form of 
a company. Thus, if the foreigner is a licensed architect of the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu and has established an office other than in a form of a company, he/she is allowed to provide architect certification practice in the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu. 
 
Report by Chinese Taipei – WT/TPR/G/302  
4 TRADE AND INVESTMENT POLICY DEVELOPMENTS 
 4.3 Unilateral liberalization 
Pages 12-13, Paragraph 4.18  
The report by Chinese Taipei notes that Chinese Taipei initiated Free Economic Pilot Zones in 2013, which included the relaxation of limitations on work by foreign professionals and alleviation of temporary stay regulations.  
 
Australia Questions No. 15:  Could Chinese Taipei please provide information on what limitations 
on work by foreign professionals were relaxed, and how temporary stay regulations were 
alleviated?  
 Answer: 
The FEPZ Enterprises are allowed to employ foreign professionals to work for them within FEPZs. For recruitment, no previous 2-year work experiences are required for foreign professionals, and no business turnover requirement for employers. These foreign professionals are also allowed to 
provide professional or technical services in FEPZs on a commission or contracted undertaking 
basis. These foreign professionals are allowed to work under landing visa. 
 Australia Questions No. 16:  Could Chinese Taipei provide details of the number of foreign 
professionals working in the Free Economic Pilot Zones? 
 Answer: 
Since the relevant measures was proclaimed by Mi nistry of Labor on July 31, 2013, no application 
about employing foreign professionals to work  in FEPZs has been filed as of today.  
 4.3 Unilateral liberalization 
Page 13, Paragraph 4.19 
 Australia Questions No. 17:  The report by Chinese Taipei notes that the Free Economic Pilot 
Zones include the financial services industry. Could Chinese Taipei please provide an update on 
regulatory changes related to wealth and asset management services?  
 
Answer: 
In line with the Free Economic Pilot Zones policy, the FSC amended the Offshore Banking Act to 
allow a qualified securities firm to apply for permission to establish an offshore securities unit (OSU). 
 WT/TPR/M/302/Add.1 
 
- 28 - 
 
  According to the aforementioned amendment, an OSU may provide consultant service by means of 
either a trust or fiduciary arrangement. Moreover, offshore funds and foreign currency-denominated funds (or share classes) issued by Securities Investment Trust Enterprises (SITEs) 
can be sold via an OBU or OSU.  
 
Australia Questions No. 18:  Australia also notes that the Free Economic Pilot Zones would 
encourage cooperation between domestic and prestigious overseas universities in setting up 
university branch campuses or departments, independent colleges, degree programs and 
professional courses. Could Chinese Taipei provide more information on the cooperation program envisaged under the Free Economic Pilot Zone and any outcomes to date?   
Answer: 
In the FEPZs Plan Phase I, priority is given to degree programs and professional courses as such 
activities can be pushed ahead through revision of administrative regulations. The Ministry of 
Education begins to accept applications in July, 2014; currently three local universities (five 
projects) have applied for setting up degree programs with overseas prestigious universities from the United States, the United Kingdom, Canada, Netherland and India. All these projects are under 
review. 
 As regards setting up branch campuses, branch departments or independent colleges through cooperation between domestic and overseas prestigious universities, these will be pushed ahead 
on condition that the Special Act for FEPZs is enacted. We are making every effort to push ahead 
with the enactment.  WT/TPR/M/302/Add.1 
 
- 29 - 
 
  THE UNITED STATES 
 
PART I: QUESTIONS ON THE SECRETARIAT REPORT (WT/TPR/S/302)  
2 TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2.4 Main trade laws  
Page 26, paragraph 2.16: The Secretariat’s report notes that the Foreign Trade Act articles were 
last amended in 2011 in order to comply with the le gal authorization clarification. In order to have 
a better understanding of the amendments, please explain the following:  
Question No. 1: If those amendments to the Foreign Trade Act incorporated labour unions as 
applicants for investigation of import relief. 
 Answer: 
The amendment to the Foreign Trade Act in 2011 incorporated labor unions as applicants for investigation of import relief.   
 
Question No. 2: The form of the import relief.  
 
Answer: 
The form of the import relief that may be adopted does not depend on whether a petition is filed by labor unions. Import relief may include tariff increase, import quotas and domestic adjustment or assistance. Tariff increase and import quotas cannot be adopted simultaneously.  
 
Question No. 3:  If the relief exists only for workers whose corporations are unionized. 
 
Answer: 
The relief is not only provided for workers whose corporations are unionized. In fact, it is more important that the applicants are the workers in domestic industries rather than their corporations are unionized or not.   
 
Question No. 4: If workers receive relief if they do not work in a union shop. 
 
Answer: 
All workers in the domestic industries are eligible to receive relief, even if they do not join unions.   
 Question No. 5:  The criteria that need to be met to receive relief. 
 
Answer: 
No criteria are stipulated for workers that need to  be met to receive relief, except that they must 
work for the injured industries.  
 2.7 Foreign investment regime Page 31, paragraph 2.43: The Secretariat’s report states that, in order to attract foreign 
investors, the government announced policies to encourage overseas companies, especially those 
based in China, to reinvest in Chinese Taipei’s planned free economic pilot zones (FEPZs). Restrictions on labour, capital, and goods are being loosened.  
 
Question No. 6: Please explain what type of restrictions are there now on labour in the FEPZs and 
which ones will be loosened.   
 
Answer: 
FEPZs Enterprises are allowed to employ foreign professionals to work for them in FEPZs. For 
recruitment, no previous 2-year work experiences are required for foreign professionals, and no 
business turnover requirement for employers. Fo reign professionals are allowed to work under 
landing visa, and only half of their income will be taxed for the first three years. Also, their income 
derived abroad is exempted from tax filing.  
 
Question No. 7: Also, since there are many FEPZs, please explain whether the same restrictions 
will be loosed in each of the FEPZs.  
 
 WT/TPR/M/302/Add.1 
 
- 30 - 
 
  Answer:  
Yes, the same restrictions will be loosed in each of the FEPZs. 
 3 TRADE POLICIES AND PRACTICES BY MEASURE 
 
3.1 Measures Directly Affecting Imports 3.1.4 Tariffs 
3.1.4.4 Tariff exemption and reduction  
Page 44, paragraph 3.39 and table 3.6: 
 Question No. 8: The Secretariat’s report notes that from 2010 to 2013, the authorities 
temporarily lowered duties for certain agricultural pr oducts in response to high food prices with the 
aim of reducing the cost of living. This took place multiple times and most duties were reduced by half. Would Chinese Taipei consider adjusting its MFN duties for these products to the same levels 
as the temporary duties? 
 Answer: 
Our authority initiated temporary tariff adjustments for certain agricultural products based on the 
Article 71 of the Customs Act. These adjustments were temporary measures. We will not consider adjusting the MFN duties for these products to th e same levels as the temporary duties at this 
moment.  
 
3.1.8 State Trading  Page 52, paragraph 3.81:  
 
Question No. 9: WTO Members have a June 30 biennial requirement to notify state trading 
enterprises to the Working Party on State Trading Enterprises (Working Party). The Secretariat’s 
report indicates that Chinese Taipei last notified the Working Party of its state trading enterprises 
in 2012. Please advise when Chinese Taipei will submit its 2014 notification to the Working Party 
for review by WTO Members.  
Answer: 
Notification was completed at the end of August 2014.   
 
3.1.10 Sanitary and phytosanitary requirements 
Page 54, paragraph 3.96:  
Question No. 10 and No. 11:   
Could Chinese Taipei please explain what steps it will take to ensure that its Department of Health 
and Welfare, Food and Drug Administration, Bureau of Animal and Plant Health Inspection and Quarantine, and the Ministry of Finance will ensu re that Chinese Taipei’s SPS measures will be 
notified to the WTO at the draft stage and that su fficient time will be given to submit comments 
and for those comments to be taken into consideration before adoption? Additionally, what steps will Chinese Taipei take to ensure that it will provide English translations of its measures when 
they are notified to the WTO? 
 
Answer: 
We have always made every effort to comply with our obligations under the WTO/SPS Agreement, 
including the transparency requirement. We have always tried to notify our SPS measures to the 
WTO at the earliest convenience, and provide Members a comment period of 60 days, if 
practicable. In addition, the SPS Agreement only re quires Members to submit the notification itself 
in English, French of Spanish. However, we have also, when practicable, provided English 
translation of our measures.  
Page 54, paragraph 3.97: 
The Secretariat’s report notes that a “maxim um residue level (MRL) of ractopamine in 
beef was adopted in September 2012”.  
 
Question No. 12 and No. 13: Please explain why a MRL was established for only beef muscle 
cuts at that time and not for the fu ll range of beef and pork products.  Also, in 2007, Chinese Taipei 
notified the WTO that it planned to establish an MRL for ractopamine in pork, but to date has not 
yet done so. Please explain why this still has not been done.  WT/TPR/M/302/Add.1 
 
- 31 - 
 
  Answer: 
We establish our SPS measures in accordance with  the results of our risk assessments, which is 
consistent with WTO/SPS Agreement and related regulations. Currently, SPS measures regarding 
ractopamine among WTO Members still vary. A number of members still ban meat with 
ractopamine residue. 
 3.3 Measures Affecting Production and Trade  
3.3.2 Non-tax incentives, subsidies, and other assistance  
3.3.2.3 Assistance to small-and-medium-sized enterprises  
Page 65, paragraph 3.161:   
Question No. 14: According to the Secretariat’s report, “the authorities provide low interest loans 
to help affected enterprises and workers to switch to new sectors and products.” Please explain if 
Chinese Taipei has any program in place to assist affected workers. If so, please explain the type 
of assistance workers are receiving. 
 Answer: 
According to the “Industries’ Adjustment and Supp ort Program to Trade Liberalization” formulated 
by the Executive Yuan, the Ministry of Labor (MOL ) focuses on the service industries and labor, 
and has classified them into “service industries that may be affected by trade liberation” and “affected and damaged service industries” by the impact level. The MOL provides periodic 
employment services measures, such as “Revita lize and Guidance”, “Enterprise Constitutional 
Adjustment” and “Damage Relief” to enhance the ability to adjust trade liberalization and improve the competitiveness of industries and labor. The measures are listed below: 
 
1.  Revitalize and Guidance: To establish one-stop  window for employment service to provide 
employment service consultation, informatio n of vocational training and employment 
recommendation. 
2. Enterprise Constitutional Adjustment and Dama ge Relief: For those  affected and damaged 
service industries reviewed and approved by th e “Industries Guidance to Trade Liberalization 
Team” to the authorities, MOL will not only prov ide “Revitalize and Guidance” assistances, but 
also provide employment stabilization and reemploy ment assistance to the labors of the above-
mentioned approval industries 
 
3.3.2.4 Other subsidies and assistance  
Page 65, paragraph 3.163: The Secretariat’s report states that, in 2002, the Industrial Development Bureau introduced an 
incentives programme for lease and purchase of land in industrial parks. The subsidy for leasing 
and purchasing land in industrial parks, after several extensions, is set to expire at the end of 2014. The Secretariat’s report further states that more than 84,000 jobs were created by 2010 through this program.  
 
Question No. 15:  Please explain whether Chinese Taipei expects to renew this program. Please 
also explain whether Chinese Taipei expects that some companies may shutter or move away at 
the end of this program? 
 Answer: 
The current 006688 program is scheduled to conclude on December 31, 2014. As for whether the program will be extended, the Industrial Developmen t Bureau of the Ministry of Economic Affairs 
will need to evaluate several factors such as budget allocation, implementation results, and 
company demands before it makes a final decision.  
 
Question No. 16: And what plans Chinese Taipei has to assist workers if they are affected with 
job loss. 
 
Answer: 
Neither companies nor workers will be affected by the conclusion of the 006688 program at the 
end of 2014, because the lessee have signed a long-term contract with the Ministry of Economic 
Affairs when this program began.  
  
 WT/TPR/M/302/Add.1 
 
- 32 - 
 
  3.3.5 Competition policy and regulatory issues 
3.3.5.2 Price controls and price-stabilization measures Page 73, paragraph 3.188 and Table 3.21: Table 3.21 in the Secretariat’s report refers to “subsidizing oil used by farmers and fishermen” 
noting an exemption from the 5% business tax and that 50% of the above-baseline price of 
gasoline and diesel is subsidized. However, we note that in Chinese Taipei’s most recent SCM notification, this program was not included.  
 
Question No. 17:  Please confirm the information set forth in the Secretariat’s report at Table 
3.21 and further explain the mechanism by which “50% of the above-baseline price of gasoline 
and diesel is subsidized”.  
 
Answer: 
When our market price of gasoline and diesel exceeds the baseline price, 50% of the above-
baseline price will be subsidized. This program is not applied to fishing vessels, but to the public 
transportation and farm machineries. Therefore, we have included this program in our Domestic Support notifications to the Committee on Agriculture, rather than the SCM notifications. 
 
Question No. 18: Specifically, please explain what is used as the baseline price and how the 
amount of the subsidy is determined . 
 
Answer: 
As for the policy of 5% business tax exemption for oil, it is implemented based on Article 8 of the 
“Value-added and Non-value-added Business Tax Ac t”, promulgated by the Ministry of Finance. 
The subsidy program for tax exemption is applied to many targets, goods and services listed in 
Article 8 of the Act, rather than to farmers and fishermen only. The subsidy is therefore non-
specific. With this respect, there is no obligation for Members to notify the details.   
 
3.3.6 Intellectual Property Rights  
3.3.6.2 Copyright  
Page 75, paragraph 3.195:  
 
Question No. 19: The Secretariat’s report states that recent amendments to the Copyright Act 
include exemptions from criminal liability for rebroadcasting at business venues and the 
broadcasting or simultaneous transmission of co pyright-protected works to the public which were 
reproduced under authorization in advertisements. Please provide further detail regarding the scope and types of activity covered by these provisions.  
 
Answer: 
Regarding the two specific types of exemption mentio ned, these uses are originally included in the 
exclusive right of the right holders, with both civil and criminal remedies against infringements 
provided for right holders. However, due to cases of some non-CMO-affiliated right holders 
employing abusive criminal charges to obtain unlim ited compensation, leading to public discontent, 
we amended the Copyright Act in 2010 to prevent non-CMO-affiliated right holders from exercising 
their right through criminal remedies for these tw o types of uses. The reason for the amendment is 
that firstly, it’s quite difficult for users in thes e two types of uses to ascertain in advance all the 
works being used, therefore it’s very difficult for the users to obtain authorization from all of the 
non-CMO-affiliated rights holders. Besides, right holders’ remuneration received under these two 
types of uses is relatively small. This change aims to help reduce the frequent criminal lawsuits faced by users and to avoid unnecessary disputes an d public discontent. It should be noted that 
the amendment does not affect the rights authoriz ed by the Copyright Act nor  interfere with non-
CMO-affiliated rights holders exercising their rights through civil remedies or demanding royalties 
or indemnity (for damages, if any) paid by us ers. In addition, the right to seek criminal 
prosecution with respect to works managed by CMOs remains unaffected. 
 
“Rebroadcasting works of an original broadcast” refers to rebroadcasting TV or radio programs at places that may be accessed by unspecified persons such as shops, hotels, medical facilities, 
restaurants, cafes, department stores, shopping malls, convenience stores, as well as public 
transportation vehicles such as buses or excursion buses.  “Communicating the works to the public through public broadcasting or simultaneous public 
transmission of advertisement, by a broadcaster,  within which such works have been reproduced WT/TPR/M/302/Add.1 
 
- 33 - 
 
  under authorization” refers to the commissioned broadcasting or transmitting advertisements by 
radio or TV broadcasters. Since such advertisements may include many works chosen and reproduced by the consignors (i.e. the advertisers), these consignees (i.e. the broadcasters) airing the advertisement may only have limited knowledg e about the licensing status of the works being 
used. 
 Question No. 20:  The Secretariat’s report also states that copyright-protected works may be 
reproduced exclusively for use by those with learning disabilities. Please explain how “learning 
disability” is defined for purposes of this provision.   Answer: 
The amendment to Article 53 of the Copyright Act was referring to Article 10 of the Ministry of 
Education’s Guidelines for Assessing Students wi th Intellectual Disabilities and Gifted Students, 
which defines learning disabilities (collectively kn own as neuropsychological dysfunctions) as an 
impairment in a person’s ability to pay attentio n, memorize, comprehend, perceive, respond, and 
reason. Such impairments could also impede listeni ng, speaking, reading, writing, and calculating 
ability. It should be noted that this learning disability cannot be attributed to sensory, intellectual, 
or emotional impediments, and is not the direct result of insufficient cultural stimulation or 
inappropriate pedagogy.  Page 75, paragraph 3.196:  
The Secretariat’s Report states that Chinese Taipei has introduced a “joint royalty rate” and “one-
stop shop” system under the Copyright Collective Management Organization Act. Under that system, two or more CMOs reportedly may adopt a single rate with respect to the same type of 
exploitation, and one CMO may be designated to collect royalties.  
 Question No. 21 and No. 22:  The Secretariat’s Report states that Chinese Taipei has introduced 
a “joint royalty rate” and “one-stop shop” system under the Copyright Collective Management 
Organization Act. Under that system, two or more  CMOs reportedly may adopt a single rate with 
respect to the same type of exploitation, and on e CMO may be designated to collect royalties. 
Please explain whether the new Act includes any provisions on transparency, accountability, and 
competition with respect to the operation of CMOs  under this system. If so, please describe those 
provisions.  
Answer: 
According to our current copyright licensing practices, there are several CMOs managing the same 
type of works (e.g. MUST, MCAT and TMCS all mana ge musical works). Therefore, it is extremely 
difficult for general users to obtain all of the necessary licenses. To address this issue, we 
amended the Copyright Collective Management Organization Act in 2010 to include the “joint royalty rate” and “one-stop shop” system, under which TIPO (Intellectual Property Office, Ministry of Economic Affairs) may designate relevant CMOs to adopt a joint royalty rate with respect to a 
specific type of use. The designated CMOs then sh ould engage in consultation in order to agree on 
the joint royalty rate and methods of distributing royalties collected from users by one of the CMOs (one-stop shop).  
 
Karaoke is one common type of our entertainment media. However, it usually contains thousands of musical works, making it nearly impossible for users to obtain all the necessary licenses from all 
the CMOs managing these works and resulting in numerous lawsuits. In October 2010, to solve 
this problem, TIPO tasked relevant CMOs with adopting this system for public performances supported by karaoke machines.  
In the case of the karaoke machines, the CMOs designated by TIPO were to agree on a joint 
royalty rate and method of distributing royalties collected from users by one of the CMOs (one-stop shop). However, the agreement has not been reached thus far. In March 2014, TIPO received 
a request from one of the relevant CMOs for a dete rmination. So far, TIPO has solicited feedback 
from the three CMOs and users. In mid-October of  this year, TIPO will be holding a consultation 
meeting with experts for further discussion, and make a determination based on their final 
conclusions. Therefore, all relevant parties have been provided with ample opportunity to express 
their opinions on this case.  Before making the determination, TIPO will consider the following: financial health and 
transparency of all the CMO candidates, their ma rket share of copyrighted works, management, WT/TPR/M/302/Add.1 
 
- 34 - 
 
  and previous performance. The CMO chosen as the one-stop shop should have the required 
professionalism, capability, and integrity to be trusted with the responsibility of collecting and distributing joint royalties with respect to public performances supported by karaoke machines. Once a determination is made, we believe it will facilitate market operation and help users easily 
obtain copyright licenses without compromising the interests of economic rights holders. 
Ultimately, we will have a more transparent system that allows for economically feasible licensing transactions.  
 
Every year, TIPO carries out its supervisory and guidance responsibilities as the competent authority by conducting a comprehensive financial audit of all the CMOs. Once a determination is 
made, TIPO will continue with the financial audit to ensure the smooth operation of the system. 
 
Page 76, paragraph 3.197:  
Question No. 23: The Secretariat’s Report states that under Chinese Taipei law, “copyright 
protection commences from the point of accomp lishment of the work and is extended for the 
lifetime of the author plus 50 years, except photographic works, audio visual works, sound 
recordings, and artists' (performers') performances, for which copyright is 4 granted for 50 years 
from the time of public release.” Please explain how the term is calculated for unpublished audiovisual and photographic works, as well as  unpublished sound recordings and performances.  
 
Answer: 
As set forth in Articles 33 and 34 of the Copyright Act, the economic rights for photographic works, 
audiovisual works, sound recordings, and performances shall subsist for fifty years as of their 
public release. If a work is not publicly released within fifty years as of its completion, the 
economic rights shall subsist for fifty years as of its completion. 
 
3.3.6.3 Patents  
Page 76, paragraph 3.200:  The Secretariat’s Report indicates that the Regulations Governing Customs Detaining Goods 
Suspected of Patent Infringement became effective on 24 March 2014. These regulations appear to 
relate to the procedure by which a right holder can request detention by Customs of imported goods suspected of infringing patent rights, as explained in Table 3.22 on page 77.  
Question No. 24 and No. 25 :  Please explain your experience to date with right holders’ use of 
these regulatory provisions and whether certain ty pes of allegedly infringing products have been 
targeted more than others. If so, please identify which types of products have been targeted most. 
 
Answer: 
After the implementation of the Regulations Go verning Customs Detaining Goods Suspected of 
Patent Infringement in March 2014, we have received quite a few inquiries from patentees or their 
agents asking about the procedures of the new border measures. Possibly due to the short implementation period, we have not received any requests so far. Therefore we cannot provide further details. We will continue to track the impl ementation of the new border measures and hope 
to share our experiences with you in the future. 
 Page 77, table 3.22:  
The Secretariat’s Report indicates that a patentee may make a claim for damages in the case of 
patent infringement that is intentional or negligent.  
Question No. 26 and 27: Please explain whether, under the law of Chinese Taipei, there are 
forms of patent infringement that are neither inte ntional nor negligent. In other words, are there 
forms of patent infringement that are not subject to a potential award of damages? Please also explain whether and how the law differentiates in the types or levels of damages claims that may 
be made, depending upon whether the infringement is intentional or negligent.  
 Answer: 
Yes, under the Patent Act, neither intentional act nor negligence are required preconditions for patent infringement. And a patentee may demand a pe rson who infringes or is likely to infringe the 
patent right to stop or prevent such infringement  even if the infringer is neither intentional nor 
negligent (Paragraph 1, Article 96 of Patent Act). A request for damages may be claimed only in 
case an infringement occurs due to intentional act or negligence. With respect to the types or WT/TPR/M/302/Add.1 
 
- 35 - 
 
  levels of damages claims that may be made, where the infringement is found to be intentionally 
committed, the court may, upon request and on th e basis of the severity of the infringement, 
award the damages up to three times of the proven  loss(Paragraph 2,  Article 97 of Patent Act).  
 
3.3.6.4 Trademarks and geographical indications  
Page 80, paragraph 3.211: The Secretariat’s report  indicates that “Geographical indications (GIs) 
may be registered as geographical certification marks, or geographical collective trademarks. 
Under the Trademark Act and other relevant legislation, third parties are prohibited from applying 
for registration as trademarks and from abusing indications of origin, which constitutes an act of unfair competition.”   
Question No. 28 and No. 29: Do the grounds for denying protection or recognition to a GI 
include prior trademark rights that would likely cause confusion in Chinese Taipei? Also, is there an 
opportunity for interested parties to oppose GI applications on both of these grounds? 
 
Answer: 
GIs may be registered as geographical certification marks or geographical collective trademarks for 
protection. Since the provisions of the Trademark Act in relation to a trademark shall apply mutatis 
mutandis to a certification mark or collective trademark, such certification mark or collective trademark shall not be registered if there are prior trademark rights that would likely cause confusion (Subparagraph 10, Paragraph 1, Article 30 of the Trademark Act). Any person may file 
an opposition to registration of such certification mark or collective trademark on the 
aforementioned grounds.  
Question No. 30 and No. 31: Do the grounds for denying protection or recognition of a GI 
include situations in which the term for which protection is sought is actually the term customary 
in common language as the common name for the good s in question (i.e., that the proposed term 
is recognized as a generic term by consumers in Chinese Taipei)? Also, is there an opportunity for 
interested parties to oppose GI applications on both of these grounds?  Answer: 
Yes. A geographical certification mark or geograph ical collective trademark shall not be registered 
if the term for which protection is sought is actually the term customary in common language as the common name for the goods in question, i.e. the proposed term is recognized as a generic 
term by consumers in our territory (Subparagrap h 2, Paragraph 1, Article 29 of the Trademark 
Act). Any person may file an opposition to registration of such certification mark or collective trademark on the aforementioned grounds. 
 
Question No 32, No. 33, No. 34: May any of the terms that have been granted protection or 
registered as a GI in Chinese Taipei be cancelled or invalidated? If so, what are the grounds for 
cancelling or invalidating a protected or registered GI? Do these grounds include prior trademark 
rights that would likely cause confusion in Chines e Taipei and evidence that the proposed term is 
recognized as a generic term by consumers in Chinese Taipei?  
Answer: 
Yes. An interested party may file for invalidation against the registration of a geographical 
certification mark or geographical collective trademark. Grounds for refusal of a trademark include 
the following: prior trademark rights exist that would likely cause confusion; the term is 
recognized as a generic term by consumers in our territory; the term is likely to mislead the public; and other grounds, apply mutatis mutandis to a geographical certification mark or geographical collective trademark.  
 
3.3.6.6 Enforcement of IPRs  
Page 82, paragraph 3.219:  
 
Question No. 35: The Secretariat’s Report indicates that the IPR Police in the National Police 
Agency investigated more cases in 2013 than in 2012. We understand, however, that pursuant to 
a restructuring, the IPR Police has been moved into a Criminal Investigative Bureau, and that the 
bureau has performed fewer inspections and handled fewer cases in the first half of 2014 than did the IPR Police in the first half of 2013. In particular, the number of trademark cases is down. Please comment on this decline in cases and the causes of that decline.  
 WT/TPR/M/302/Add.1 
 
- 36 - 
 
  Answer: 
Given that trends in IPR infringement have shifte d to cyber-based crime in recent years, the IPR 
Police has been moved into the Criminal Investigation Brigade (CIBr) in order to form a more centralized and streamlined investigation force in 2014. CIBr adjusted its investigation strategy to 
focus on boosting the quality, efficiency and effect iveness of IPR infringement investigation with an 
aim to solve high profile cases.  
Although the number of investigation cases in 2014 is less than that in 2013, the total value of 
infringing goods seized to date in 2014 is higher than that of the entire year of 2013. Take the B-CAS CARD case investigated in July 2014 for exampl e: the value of infringing goods in this single 
case amounted to NTD 50 billion, which was higher than the total value of the cases we solved in 
2013. As for cases specifically involving American businesses, the total value of infringing goods 
seized in the first half of 2014 amounted to NTD 123 million, which was 2.5 times the value of those seized in the first half of 2013. This demonstrates that the organizational restructuring has 
significantly improved investigation performance. We will continue to commit ourselves to IPR 
protection.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, fisheries and forestry  
4.1.1 Agriculture  
4.1.1.3 Border measures  
4.1.1.3.1 Tariffs  
Page 86, paragraph 4.9:   
Question No. 36: The Secretariat's report notes that Chinese Taipei's agricultural tariffs remain 
high. For instance, there are 37 lines with rates higher than 100%. In consideration of these high 
tariffs, would Chinese Taipei consider adjusting its applied MFN duties to the same levels as the 
temporary duties? 
 Answer: 
6 out of these 37 lines are applied to tariff quota, while the other 31 products applied to 
ad valorem tariffs were equivalent ly transformed from non-ad valorem tariffs. We did not initiate 
any temporary adjustment measures for these products, and will not consider adjusting the MFN duties for these products in the near future.  
 
4.1.1.3.2 Tariff Quotas Page 86, paragraph 4.11: 
 
Question No. 37and No. 38:  The Secretariat's report notes that Chinese Taipei's rice tariff quota 
is divided for the government and the private sector. Please explain whether Chinese Taipei 
publishes its rice quota fill rates by the governme nt and private sector on a regular basis. If so, 
where is this information contained? If not, plea se explain whether and when Chinese Taipei plans 
to publish this information. 
 
Answer: 
Every March, we submit the notifications of TRQ im plementation in the previous year to the WTO. 
Those notifications have included the information related to the private and government quota of 
rice.  
 Question No. 39: For government tariff quotas imported by the Agricultural and Food Agency, the 
United States has seen instances where tenders have failed because the bids from suppliers 
breached a government-set ceiling price. Please explain how the ceiling price is set, how often it is updated, and how the ceiling price is communicated to interested suppliers.  
Answer: 
Our ceiling price of rice procurement is calculated as the sum of rice cost, which is surveyed from 
exporters and other resources before every tender, adding freight and insurance premium, charges 
at imported port, and other domestic fees.  
 The ceiling price will be reviewed and decided before  each tender and be announced to the public if 
the tender is awarded.  
 WT/TPR/M/302/Add.1 
 
- 37 - 
 
  4.1.1.3.3 Special safeguard measures (SSGs) 
Page 87, paragraph 4.13:  Question No. 40: The Secretariat's report notes that the number of price-based SSGs increased 
significantly in 2013. Please explain why Chines e Taipei has invoked its price-based SSGs much 
more frequently in 2013 than previously  
Answer: 
Our Special safeguard measures are activated according to the Article 5 of the Agreement on 
Agriculture. In this regard, the increased activa tion of price-based SSGs in 2013 might be due to 
the changes of domestic supply and demand, as well as the commercial considerations of 
importers.  
 PART II: QUESTIONS ON THE GOVERNMENT REPORT (WT/TPR/G/302)  
None  
 PART III: OTHER QUESTIONS  
Copyright Infringement  
 Question No. 41: The United States is aware of reports of copyright infringement in Chinese 
Taipei that is facilitated by television cable or media boxes that are loaded with infringing content 
and/or facilitate users’ access to websites that host infringing content. We understand that many 
of these media boxes are imported from China, but also that there is some production of them in 
Chinese Taipei. Can you comment on Chinese Taipei’s efforts to address this issue? 
 
Answer: 
We have taken the following measures to address this issue: 
1. Raising Awareness of the Issue among Media Box Manufacturers 
TIPO conducted a survey (Sep-Nov 2013) on domestic sales of media boxes (e.g. TV dongles and set-top boxes.) Most devices that we manufactured do not contain apps or links with access 
to rogue websites. As part of our efforts to step up copyright awareness, notifications were sent 
to 46 manufacturers (35 local, 11 foreign) on December 6, 2013. The device manufacturers were required to refrain from providing links that access rogue websites or illegal content, and instructed to make sure their connected agents/resellers are in compliance with the law. TIPO 
will continue to raise manufacturers’ awareness on the issue.  
2. Promoting Interagency Cooperation to Combat Illegal Infringement 
TIPO also brought this issue to the enforcement agencies to bolster their knowledge and 
understanding of the issue and combat illegal infringement of media boxes through interagency 
cooperation. For example, at the 58th Working Session on the Project of IPR Protection and 
Investigation held by Taiwan High Prosecutors Office, TIPO discussed this issue with the 
enforcement agencies. In addition, TIPO maintained close communication and coordination with 
District Public Prosecutors Offices, which were asked to provide any relevant information when available. 
3. Providing Training Courses to Enforcement Officials 
Because professional skills and knowledge about the related issues vastly benefit enforcement 
officials in their work, TIPO has organized a number of training courses on media boxes throughout 2014. Experienced prosecutors are invited to lecture, with a special focus on media 
boxes’ access to illegal contents.  
 WT/TPR/M/302/Add.1 
 
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  HONG KONG, CHINA 
 
4.  TRADE POLICIES BY SECTOR  
WT/TPR/S/302: Page 103 (Paras. 4.100 & 4.101) Banking 
We noted from the Secretariat Report that the go vernment’s share in the banking sector remains 
large. The postal savings system  and three banks (namely the Bank  of Taiwan, the Land Bank and 
the EXIM Bank) are fully government owned, and th e majority shares in six other banks are also 
held by the government. 
 Question 1: 
Would you please enlighten us on the policy objectives of such a deep government participation in 
the banking sector? Is there any review mechanism to verify if the policy need still remains? Is 
there any plan to further liberalise banking se rvices by reducing the shareholding of the 
government in its banks or privatising its wholly-owned banks? 
 
Answer : 
Our government-owned or controlled financial institutions not only act as banks, but also take on 
duties to support the government financial polic ies whenever needed. For example, during the 
financial crisis, these government-owned or controlled financial institutions successfully alleviated the severe money-shortage impact on businesses in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu and helped stabilize the financial market. In addition to ensuring its 
mission to execute the government policy, the MOF also propels these financial institutions to 
make the most profits while protecting the rights of depositors and other shareholders. By retaining a controlling portion of shares and influence on these financial institutions, the MOF will 
continue to lead them to achieve the goals of raising revenues for our national treasury, promoting 
national developments and construction and stabilizing the financial market.  
We constantly review the privatization policies and shareholding policies. 
 There is no further releasing-shares or privatization plan underway.  
 
WT/TPR/S/302: Page 108 (Para. 4.123) 
Telecommunication Services The Digital Convergence Policy Initiative aims to develop the digital industry and enhance the 
quality of broadband Internet. The relevant regulations are to be revised in two stages: the first 
stage from 2010 to 2012, and the second stage from 2013 to 2014. In the first stage, certain Acts have been amended to relax restrictions on cross-industry telecommunications, broadcasting, and 
internet operations, whereas in the second stage, the legislation on the digital convergence 
regulation framework is to be completed.  Question 2: 
Would you please share with us the scope and details of the digital convergence policy initiative, including the latest administrative progress in the second stage. After revision of relevant 
regulations, will there be plans to further develo p the digital industry and enhance the quality of 
broadband Internet? 
 Answer : 
The “Digital Convergence Policy Initiative” launched in 2010 outlines the following six major 
directions which are designed to create a high quality digital convergence lifestyle, build up a digital convergence industry, and promote next gene ration competitiveness: preparation of a high-
speed broadband network, promotion of telecommuni cations convergence services, acceleration of 
digital TV switchover, development of emerging video services, upgrading of communications 
industry, and harmonization of the regulations for convergence.  
With regards to the regulatory framework, the “Digital Convergence Policy Initiative” plans for a 
two-stage regulatory revision. The first stage, 2010 to 2012, amends the Radio and Television Act, Cable Radio and Television Act, Satellite Broadcasting Act and Telecommunications Act, as well as 
sets a new regulatory framework for the radio and TV sectors. Those amendments are under 
legislation procedure in the Legislative Yuan.  WT/TPR/M/302/Add.1 
 
- 39 - 
 
  The second stage, from 2013 to 2015, aims to harmonize and integrate the digital convergence 
regulatory framework, or layered regulatory mode l. In order to collect opinions, NCC has been 
publishing relevant consultation documents and holding public hearing on convergence reform issues. 
 
In accordance with the initiative, we aim to ex pand the household penetration of 100Mbps fixed 
line broadband. As of December 2013, coverage of household broadband network of 100Mbps was 
over 97%. Moreover, it is expected that subscr iptions of fiber optic network users will reach 
7.2 million and wireless broadband subscription s will reach 11 million by the end of 2015.  
 In order to meet future demands for digital convergence, NCC plans to facilitate a sound 
environment. Also, through promoting the integrat ed information-communication policy, we hope 
to encourage an innovative market competition mechanism, so that all people can enjoy better 
broadband convergence services at a reasonable pr ice. Consequently, this will increase people’s 
digital ability and strengthen our industry competitiveness.  
 WT/TPR/S/302: Page 111 (Para. 4.143) 
Road Transport 
Subject to the approval of the Ministry of Transport (MOTC), non-local person or legal persons may apply to invest in car and pickup truck rental, automobile cargo transport, and container truck transport. The Secretariat Report mentioned that the government applies the same criteria for 
local and non-local road transport enterprises. Investors must meet the regional transportation 
needs, promote conveniences to the public, have adequate financial capability, have adequate vehicles, parking lots, and repair abilities, and their equipment must meet operational needs. 
 
Question 3: 
How long does it usually take for non-local persons or legal persons to obtain approval from 
MOTC? Is there any limitation on foreign investment in the road transport enterprises concerned, 
for example, the form of enterprises or maximum shares held by non-local persons or legal persons? Does Chinese Taipei have any plan to further relax the restrictions so that foreign persons or legal persons can invest in other road transport businesses? 
 
Answer : 
Both foreign and local persons intending to invest and operate in the road transportation industry 
must first apply for approval to begin preparations. After preparations have been completed, the 
investors then need to apply for an operating license. The estimated time table of the entire process is detailed below: 
 
(1) Approval for preparation phase: It usually ta kes about 2 weeks to 1 month for the competent 
authority to review and approve the application. 
(2) Required preparation work: Within 6 months, the investors need to register as a company or 
business according to the law and prepare a sufficient number of vehicles, parking lots, 
stations, offices, and other facilities and equipment that are compliant with regulations. Those who cannot complete the preparation phase in 6 months due to special circumstances may 
apply for an extension of up to an additional 6 months; if they are again unable to finish 
preparations by the end of the extension period, the approval for preparation will be cancelled. 
(3) Approval for operating license application: It usually takes 2 weeks to 1 month for the 
competent authority to review and issue the operating licenses. 
 There are no limitations on the form of enterprise or maximum shares held by non-local persons or 
legal persons investing in car and pickup truck rental, automobile cargo transport, and container 
truck transport.  
We currently have no plans to relax the restrictio ns in other road transport businesses for foreign 
persons or legal persons.  
 
WT/TPR/S/302: Page 112 (Para. 4.151) 
Tourism To help upgrade the quality of travel and accommodation, hotels with 15 rooms or more are being offered medium and long-term government funding and bank loans for investment in renovation, 
expansion, or reconstruction. A number of banks are offering loans to these hotels, with interest WT/TPR/M/302/Add.1 
 
- 40 - 
 
  rate not exceeding 1.65% over the medium and long-term capital rate. The Tourism Bureau is 
offering subsidies of up to NT$1 million to help these hotels cover their costs in hardware and software planning and design.  
Question 4: 
Are foreign invested hotels equally eligible for these government funding and bank loans? If so, do 
foreign invested hotels enjoy the same treatment as local hotels in applying for them? 
 
Answer : 
To help upgrade the quality of accommodation, the government offers preferential bank loans and 
planning and design subsidies for renovation, expansion, or reconstruction to tourist hotel 
enterprises that already have licenses issued by the tourism authority and hotel enterprises that 
have obtained a certificate of registration. Foreig n-invested tourist hotels and ordinary hotels are 
equally eligible for government subsidies and pref erential bank loans for the types of investment 
mentioned above and can enjoy the same treatment as local hotels after obtaining the 
aforementioned licenses issued by the touris m authority and certificate of registration.  
 
WT/TPR/S/302: Page 113 (Para. 4.153); Page 114 (Para. 4.160) 
Professional Services   
To practise as a lawyer or a Certified Public Accountant (CPA) in Chinese Taipei, non-citizens must take the corresponding examinations, obtain the attorney licence or CPA certificate, and gain 
approval/ permission from the relevant authorities. 
 Question 5 : 
What is the rejection rate of applications made by non-citizens for practising as lawyers and CPAs?  
What are the common reasons for the rejection? Is there any mechanism for the applicants to appeal against the decision made by the authorities? 
 
Answer: 
A “Foreign Attorney” who can apply to the Ministry of  Justice for approval to practice if he or she 
meets the following qualification requirements: 
(1) Have practiced for at least five years within  their “home jurisdiction” and have appropriate 
supporting certificate which is ruled under Articl e 47-3 and Article 47-5 of Attorney Regulation 
Act.  
(2)A foreign attorney who does not apply to the situation stated under Article 47-4 of Attorney 
Regulation Act. 
 
In fact, the rate of refusal is quite low. And the most common reason of refusal is that the 
applicant has not practiced law for at least five years. However, if the refusal does happen, the 
applicant could appeal the decision made by the MOJ through the procedure of administrative remedy by law.  
 
Thus far, all non-citizens who have passed the local bar exam have applied the lawyer license from the MOJ successfully. According to our record, we didn’t refuse to give permission to any one of 
them, when they applied for the license from the MOJ. In the event the application is refused in 
the future, the applicant could appeal the decisi on made by the MOJ through the procedure of 
administrative remedy by law. 
 
As of the end of July 2014, there was only on e non-citizen who passed the local CPA examination 
and obtained CPA certification. In addition, this  non-citizen has been approved by the competent 
authority to engage in CPA practice in our jurisdiction. Therefore, there has not been a rejection of 
any application by a non-citizen to practice as a CPA. 
 WT/TPR/G/302: Page 8, Para. 3.6 - 3.9 
Industrial Development Policy and Reform  
We note the major industrial development policy that  took place during this review period was the 
introduction of the Statute for Industrial Innova tion (SII) in 2010. One of the critical changes 
involved amending the use of tax incentives by  retaining only the 15% tax credit against the 
payable business income tax for expenditures on re search and development, provided that the tax 
credit does not exceed 30% of the business income tax payable in that year.  
 WT/TPR/M/302/Add.1 
 
- 41 - 
 
  Question 6: 
What are the reasons for removing all the other tax incentive schemes and retaining only this 
particular scheme?  Does the change proved to be helpful in encouraging innovation so far?  
 
Answer : 
Various kinds of industry specific or geographic al related tax incentives were offered under the 
Statute for Upgrading Industries which had been implemented for 20 years. Although the 
measures facilitated development of industries, the problems such as the erosion of the tax bases, 
unfairness in the tax-burden, and the complex of our tax regulations also had arose during this time.  
After the Statute for Upgrading Industries expi red at the end of 2009, we had after careful 
consideration for financial need and the balanced development of industries undertaken a reform aimed for “low tax burden and streamlined tax administration”. The profit-seeking enterprises 
income tax rate was reduced to a flat rate of 17% from 2010 to better support balanced 
development of industries and create a competitive tax environment with a low tax burden and high efficiency. At the same time, the new Statue  for Industrial Innovation continues to provide 
R&D tax credit to companies in order to encourage local companies to engage in high-end 
innovation activities. We believe such kind of the tax credit incentive is helpful to the enterprises 
to facilitate the innovation activities.   
According to research, since the statute was impl emented, Taiwanese enterprises’ R&D spending 
amounted to the percentage of GDP has graduall y increased each year, while the ratio of R&D 
p e r s o n n e l  i n  T a i w a n  h a s  a l s o  s t e a d i l y  g r o w n ,  w i t h  b o t h  f i g u r e s  t o p p i n g  t h e  O E C D  a v e r a g e .  I n  
addition, the number of patents obtained in the United States, Europe and Japan by Taiwanese 
enterprises has shown continued growth, as well as the total value of their technology exports to these countries and regions. All of these facts clearly demonstrate that the R&D investment tax 
incentive has definitely been effective.  
 Another major industrial development initiative introduced in 2012 was the “Four Transformations 
of the Three Industries”. According to the report, th e objectives of the initiative are to accelerate 
the industrial transformation process and stimul ate economic growth by fostering a “service-
oriented” manufacturing industry, a “high-tech” services industry, an “internationalized” services industry and a “specialty-oriented” traditional industry.  
 
Question 7:  
Would you please elaborate on how these transformations have taken place over the past two 
years and to what extent have they succeeded in stimulating economic growth?  Will foreign 
investors be able to participate in this initiative which is highly related to services industries?  Are there any particular requirements or restrictions for foreign participants?  
Answer: 
“Service-oriented” manufacturing provides hi ghly customized manufacturing service, and 
additional revenue can then be generated or derived from the customized service providers. “High-
tech” services use ICT and other technology tools to  improve the quality of service, reduce service 
costs, and may create additional demand for servic es. Internationalized services are internationally 
competitive and can achieve export performance and contribute substantially to our economy. 
“Specialty-oriented” traditional industries use te chnology, aesthetics, new materials, new business 
models and other innovative value-added elements to complement traditional industries to enhance the added value of traditional industries. The promotion practice is divided into two stages. In the first stage, from 2012 to 2015, demonstrations highlight of industries will be 
selected, and the second phase aims to assist the most industries in structure transformation. 
Thus far, we have counselled several companie s that have done demonstrations to enhance 
products’ added value and differentiation capacity. The overall effectiveness of the promotion on 
economic growth of these transformations requires  long-term efforts and should become more and 
more significant.  
According to the official data of Investment Commission of the MOEA, the amount of approved 
foreign investment of Professional, Scientific and Technical Services and Support Services are highly related to the “Four Transformations of the Three Industries” and has grown from 2012 to 
2013. The official regulations that currently limit the Overseas Chinese and foreign investors have 
been gradually cancelled in light of the “Free Economic Pilot Zones”.  WT/TPR/M/302/Add.1 
 
- 42 - 
 
  At present, there are several regulations on foreign investment capital from mainland China in a 
number of sensitive industrial projects, such as  the processing of agricultural products and 
semiconductors, panels and other ICT industries, including limits on investment in existing business in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu and mainland 
Chinese shareholding ratios must be below 50%. However, for overseas Chinese and foreign 
investment, subject to the inclusion of the Negati ve List for Investment by Overseas Chinese and 
Foreign Nationals provided by Investment Commission of MOEA, no other particular limitation is in 
place. 
 WT/TPR/M/302/Add.1 
 
- 43 - 
 
  PERU 
 
Preguntas presentadas por el Perú (Superintendencia Nacional de Administración Tributaria- SUNAT) referidas al Informe que la Secretaría  de la OMC ha preparado para el examen  
(WT/TPR/S/302):  
 Con relación al numeral 3.3 (página 41):  
¿Podrían detallar los beneficios y preferencias para los importadores y exportadores cuya cifra de 
negocios del año haya alcanzado un nivel pr escrito por la Administración Aduanera?  
 Answer: 
Traders with an average annual import/export pe rformance of no less than USD 7,000,000 in the 
most recent 3 years can be qualified for the app lication of AEO. The benefit of our Security and 
Safety AEO exporters/importers are addressed in Article 14 and 15 of the Regulations Governing 
the Certification and Management of the Author ized Economic Operators. Please refer to  
http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0350061  
 
Respecto al numeral 3.5 (página 42), sobre ventanilla única, podrían explicarnos:  
¿Cómo opera dicho mecanismo y en particular el enlace portuario?   Answer: 
We integrate three major information systems of customs, port and trade into the CPT Single Window system which provides traders with B2G services such as import/export application, 
inquiry and electronic payment, etc. It also provides import/export competent agencies with G2G 
services including cross-agency investigation,  compliance check and data exchange, and N2N 
cross-border information exchange service. Ca rriers, container terminals, tallies and truck 
companies are able to conduct harbour, marine and navigation operation applications and fee 
payment through the CPT Single Window system.  
 ¿Existe una trazabilidad de la información visible para las partes involucradas?   
Answer: 
The related agencies and persons may trace transmitted data by using verification service which is 
provided by CPT Single Window system.  
 
¿Se ha medido el impacto en la reducción de costos y tiempos del proceso de despacho a partir de su puesta en marcha?  
 
Answer: 
The CPT Single Window system provides facilitated  and integrated service for stakeholders, which 
is expected to save 1,600,000 hours to process applications, while reducing around US$ 
10,000,000 business cost per year. In addition, we expect to conduct the Time Release Study 
between 2014 and 2016, which will serve as an e ffective evaluation for the efficiency of all 
elements of the broadly-defined customs clearance for both public and private sector so as to 
provide them with information regarding potential business process reform.  
 ¿Cuál es la relación que se tiene con los operadores portuarios y operadores de comercio exterior 
que permitan la reducción de procesos y tiempos en el despacho? 
 Answer: 
CPT Single Window system integrated three major information systems of customs, port and 
trade. Customs Administration has established partnership with Bureau of Foreign Trade to 
simplify clearance and licensing processes so as to reduce customs clearance time.  
¿Existe algún mecanismo de coordinación en ese sentido?  
 Answer: 
Customs Administration and Bureau of Foreign Trade take “CPT Single Window Working Group” as a coordinating platform, and regularly have meetings to discuss and solve relevant issues.  
 En el numeral 3.6 (página 42) se señala que “…en 2011 la tasa de utilización de la declaración 
previa a la entrada seguía siendo tan solo del 10%”. Al respecto, la SUNAT desearía conocer si WT/TPR/M/302/Add.1 
 
- 44 - 
 
  este porcentaje se mantuvo hasta el 2013, y de ser así, a qué factores consideran que obedece 
esta situación.   Answer: 
The reason for the low usage of pre-entry declaration is that, according to the Regulations Governing the pre-entry Customs Declaration of Import/Export Goods, it is not allowed to be submitted before the acceptance of manifest, except for certain goods stipulated in Article 7 of the 
said Regulations. However, the fact that the manife st is not required to be submitted prior to the 
arrival of transportation causes uncertainty ar ising from the pre-entry declaration, thereby 
reducing its usage rate.  
 
Con relación a lo señalado en el numeral 3.7 (página 42), en el procedimiento para el despacho 
denominado “pase”:  ¿Cuándo se transmite la información de la declaración?  
 
Answer: 
The customs declaration data is required to be transmitted following the transmission of manifest.   
 
¿La información transmitida es igual a la de los otros procedimientos (examen de documentos o examen de documentos e inspección física)?   
Answer: 
The information requirements for three different customs clearance modes are different. 
 
¿Cuál es el nivel (%) estimado del “examen documentario” y del “examen de documentos y la 
inspección física” del total de despachos?   
Answer: 
The percentages of “document review” and “document review and physical inspection” account for 
20% and 5%, respectively, of the total clearance cases in 2013.  
 
En torno al tratamiento diferenciado entre los OEA-G y OEA-S mencionado en el numeral 3.9 
(página 43): ¿Cuál es la diferencia en el tratamiento a ambos operadores para el examen de la documentación y respecto a la tasa de inspección aplicada?  
 
Answer: 
In terms of document review, lower rate of docu ment review can be applied to AEO-G, while the 
lowest rate of document review can be applied to AEO-S. However, there is no difference between 
AEO-G and AEO-S as far as the inspection fee is concerned.  
 ¿Qué niveles de reducción en los tiempos de despacho se presentan en los despachos efectuados 
en el marco de la OEA?  
 Answer: 
The reduction of customs clearance time for AEOs mainly results from the lowering of cargo examination rate. AEOs saves time on the customs clearance because AEOs enjoys the privilege of C1 clearance mode that releases the goods without document review and physical examination.  
 
Finalmente, respecto a la aplicación del Convenio  ATA comentado en el numeral 3.12 (página 43):  
¿Cuál es el nivel (%) estimado del uso del carnet ATA respecto del total de despachos de admisión temporal?  
 
Answer : 
Based on the statistical data of 2013, the temporary import/export cases cleared through ATA 
Carnet account for 2% of all the temporary admission cases.  
 WT/TPR/M/302/Add.1 
 
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  PERU  (Additional questions) 
 
Se solicita al Territorio Aduanero Distinto de  Taiwán, Penghu, Kinmen y Matsu responder a las 
siguientes preguntas formuladas con base a lo señalado en el documento WT/TPR/S/302 del 29 de 
julio de 2014. 
 Pregunta 1: 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 
3.1) Medidas que afectan dire ctamente a las importaciones 
3.1.9) Reglamentos técnicos y normas Párrafo  3.83: ¿Podría brindar más información sobre en qué consiste el Reglamento relativo al 
establecimiento de las normas nacionales chinas?  
 Answer: 
Our national standards (CNS) are developed in accordance with our Standards Act and the Regulations Governing the Establishment of Nation al Standards and approved by the Ministry of 
Economic Affairs. The full texts of the Act and Re gulations are available on the following websites: 
http://law.moj.gov.tw/Eng//LawCla ss/LawContent.aspx?pcode=J0100044  
http://law.moj.gov.tw/Eng//LawCla ss/LawContent.aspx?pcode=J0100046  
 
Pregunta 2: 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 
3.1) Medidas que afectan dire ctamente a las importaciones 
3.1.9) Reglamentos técnicos y normas 
Párrafo 3.84: ¿Cuáles son los criterios utilizados por el Territorio Aduanero Distinto de Taiwán, 
Penghu, Kinmen y Matsu para determinar la necesidad de elaborar un reglamento técnico? ¿Se realizan estudios de impacto en la economía, en particular sobre el comercio? 
 
Answer: 
Technical regulations are issued to ensure comp liance of commodities with the requirements set 
out in safety, health, and environment and prom ote sound development of economic activities. 
Therefore, the effects on both economy and trade will be taken into consideration during the 
preparation of technical regulations.  
 
Pregunta 3: 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 3.1) Medidas que afectan dire ctamente a las importaciones 
3.1.9) Reglamentos técnicos y normas 
 Párrafo 3.84: ¿Posee el Territorio Aduanero Distinto de Taiwán, Penghu, Kinmen y Matsu un mecanismo para la publicación de respuestas a los comentarios recibidos de los miembros de la 
OMC a los proyectos de reglamentos técnicos o proc edimientos de evaluación de la conformidad? 
 Answer: 
Responses to comments from other Members regarding our notifications are available on the BSMI’s website: http://www.bsmi.gov.tw/wSite/ct?xItem=4147&ctNode=2757  
 
Pregunta 4: 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 3.1) Medidas que afectan dire ctamente a las importaciones 
3.1.9) Reglamentos técnicos y normas 
 
Párrafo  3.85: ¿Permite el Territorio Aduanero Distinto de Taiwán, Penghu, Kinmen y Matsu la participación de sectores interesados pertenecientes a otros países en la elaboración de un 
reglamento técnico? 
 Answer: 
Prior to publishing a draft technical regulation on our Government Gazette, BSMI may invite representatives from relevant government authorities, industrial or business associations to take part in review meetings.
 In addition, we also submit notifications through the WTO Secretariat and 
provide opportunities for other Members to ma ke comments. Comments received from other 
Members will be taken into account.  WT/TPR/M/302/Add.1 
 
- 46 - 
 
  Pregunta 5: 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 3.1) Medidas que afectan dire ctamente a las importaciones 
3.1.9) Reglamentos técnicos y normas 
 
Párrafo  3.85: ¿Es práctica en el Territorio Aduanero Distinto de Taiwán, Penghu, Kinmen y Matsu notificar los proyectos de reglamentos técnicos que sean conformes a normas internacionales? 
 
Answer: 
We propose and notify technical regulations and conformity assessment procedures at an early 
appropriate stage to provide other Members with opportunities to make comments according to 
Articles 2.9 and 5.6 of the TBT Agreement.   
 Pregunta 6: 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 
3.1) Medidas que afectan dire ctamente a las importaciones 
3.1.9) Reglamentos técnicos y normas 
 
Párrafo 3.86: ¿Podría brindar mayor información sobre en qué consisten las normas profesionales en el Territorio Aduanero Distinto de Taiwán, Penghu, Kinmen y Matsu?  
Answer:   
Professional standards are developed and adopted by private sectors, whose level is different from 
that of national standards, and are not governed by public sectors.  
 
Pregunta 7: 4. POLÍTICAS COMERCIALES, POR SECTORES 
4.4) Servicios 
4.4.1) Sinopsis  En el párrafo 4.93, se señala que “El Gobierno está estableciendo zonas francas piloto, en las que 
los reglamentos relativos al acceso a los mercados y a otros aspectos del comercio se atenuarán 
sustancialmente”. El Perú desea conocer si los proveedores de servicios extranjeros tendrán que cumplir requisitos adicionales con relación a los proveedores de servicios locales para poder 
establecerse en estas zonas. 
 Answer: 
No additional requirements are needed for fore ign service providers registering themselves as 
FEPZ Enterprises. Actually treatment granted to  foreign investors in FEPZs will move from WTO 
treatment to WTO+. For example, the Plan will permit  foreign lawyers, CPAs and architects or their 
firms to invest in or form partnerships in the FEPZs. The plan will also allow cooperation between 
domestic and overseas prestigious universities to set up branch campuses, branch departments. 
And foreigners can serve as chairperson of board for international medical institutions in FEPZs.  
 
Pregunta 8: 
4. POLÍTICAS COMERCIALES, POR SECTORES 4.4) Servicios 
4.4.2) Servicios bancarios,  financieros y de seguros 
 En el párrafo 4.97, se señala que “La Oficina expi de licencias para bancos; examina las solicitudes 
de establecimiento de nuevas sucursales y actividades bancarias; establece reglamentos para los 
préstamos bancarios, las inversiones y otras actividades; y toma medidas disciplinarias contra los 
bancos que no cumplen las leyes pertinentes”. Referente a esto, el Perú desea conocer si existe un número limitado de licencias para los bancos extranjeros. 
 
Answer: 
There is no limit to the number of branch licenses for which a foreign bank can apply, nor is there 
any limit on the number of such licenses that one can receive. Based on the “Regulations 
Governing Foreign Bank Branches and Representative Offices,” foreign banks may apply for the establishment of a branch to conduct the same business as that conducted by local banks, in line with the principle of National Treatment.  
 WT/TPR/M/302/Add.1 
 
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  Pregunta 9: 
4. POLÍTICAS COMERCIALES, POR SECTORES 4.4) Servicios 4.4.3) Telecomunicaciones  y servicios postales 
 
En el párrafo 4.126, se señala que “Los servicios postales están reservados a la empresa Chunghwa Post Co. Ltd, de propiedad pública, y otras empresas autorizadas”. Al respecto, Perú 
desea conocer si las otras empresas autorizadas tienen que ser necesariamente domésticas. 
 Answer: 
According to Article 6 of Postal Act, apart from Ch unghwa Post and others so entrusted, no others 
may engage in the business of delivering letters, postcards or other correspondence. Those that do 
not belong to the business of delivering letters, postcards or other correspondence, are not classified as a monopoly and are open for competition. 
 
The “others so entrusted” of Article 6 of Post al Act are not limited to domestic companies. 
According to No.52 of Regulations Governing the Handling of Mail, eligible foreign companies in 
this regard are those that not only shall be founded under the corporate juristic person, but also 
fall into the categories of Automobile Carg o Transportation Business/Automobile Cargo 
Transportation within Designated Route(s) Enterpri se of Highway Act, Air Freight Forwarder of Civil 
Aviation Act or Manpower Service. 
 
Besides,”Postal services are reserved for the government-owned Chunghwa Post Co. Ltd., and 
other entrusted companies”(refer to report WT/TPR/S/320, para.4.126) shall be regarded as 
“Letters, postcards or other correspondence ar e reserved for the government-owned Chunghwa 
Post Co. Ltd., and others so entrusted”.  
 
Pregunta 10: 
4. POLÍTICAS COMERCIALES, POR SECTORES 4.4) Servicios 4.4.4) Transporte 
 
En el párrafo 4.129, se menciona que “El Taipei Chino se compone de una serie de islas y la mayoría de las exportaciones e importaciones se transportan por vía marítima. Tiene 174 
empresas de transporte marítimo (139 en 2008), entre ellas tres grandes empresas que prestan 
servicios de transporte de contenedores”. Al re specto, el Perú desea conocer cuántas de estas 
empresas mencionadas son de capital extranjero. Asimismo, el Perú desea conocer si las 
regulaciones consideran el transporte de contenedores vacíos como transporte doméstico 
(cabotaje) o si tienen alguna consideración especial.  Answer: 
The three major shipping companies, Yang Ming Marine Transport Corp., Evergreen Marine Corp. 
and Wan Hai Lines Ltd., are all local companies.   
According to the Shipping Act, unless a franchise is granted, a foreign vessel may not transport 
passengers or cargoes between ports. Thus, if a foreign vessel needs to perform such 
transportation services (including empty containers),it has to apply to obtain the special 
permission in advance. 
 WT/TPR/M/302/Add.1 
 
- 48 - 
 
  P. R. CHINA 
 
Questions based on Report by the Secretariat (WT/TPR/S/302) 
 1.6.4 Foreign direct investment (FDI) 
Page 21, Para. 1.33 
The report states that “Although Chinese Taipei frequently scores relatively well in international competitiveness surveys, those rankings do not translate into high levels of inbound investment. 
During the review period, inbound FDI remained in the region of 1% of GDP …”. 
 Question 1 : 
Does Chinese Taipei have any plans to formulate more policies or measures to further boost the 
foreign investment? If any, could Chinese Taipei provide us more details about the plan?  
 Answer:  
The Ministry of Economic Affairs (MOEA) is impl ementing the following three investment promotion 
strategies in an effort to attract inve stment from outstanding foreign firms: 
 
1. A sharp focus; screening target firms 
(1) The government's industrial and economic development programs are giving rise to 
many business opportunities, inducing foreign firms to invest in key materials and equipment and engage in technology transfer. The MOEA plans to establish the 
government's current economic development programs (such as ECFA, Free Economic 
Pilot Zones, and the Taoyuan Aerotropolis) and key future industries (such as intelligent 
cities, offshore wind power, electric buses, 4G, and semiconductors) as major 
investment recruiting fields. 
(2) With our developmental and technological needs in mind, the government is soliciting 
investment from outstanding foreign enterprises that can help to nurture emerging 
industries, map out domestic industrial development, fill key industrial needs, promote 
high value, and bolster backbone enterprises.  
(3) Institutional investors such as private equity funds and venture capitalists have become 
important participants in foreign investment, accounting for roughly 20% of foreign 
investment worldwide. The government plans to respond to this international trend by 
strengthening the promotion of institutional investment in Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.  
2. An investment promotion system actively targeting promising candidates:  
After identifying foreign companies that ow n key technologies, the government launches 
proactive investment promotion measures. The first step is to draft investment promotion 
memoranda, request the MOEA's foreign units  to sound out the targeted foreign firms 
concerning their willingness to invest in Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu and their relevant needs, and integrate government resources to provide individualized services to foreign firms. Industry experts then form small mobile teams to 
carry out promotion overseas. When an investment case has reached a mature state, the 
MOEA will organize a high-level investment promotion delegation. By emphasizing the value the government places on foreign investment , this approach can boost foreign firms' 
willingness to invest in Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.  
3. Sustainable services for long-term results: 
After foreign firms decide to invest in Separa te Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu, the MOEA provides case services vi a trained personnel at the InvesTaiwan Service 
Center, Executive Yuan. The MOEA also performs regular tracking of fore ign firms' investment 
progress and state of operations, helps firms to overcome investment obstacles, and makes sure that investment projects take root. Afte r the government has helped foreign firms with 
the investment services they need, the MOEA co ntinues to encourage them to increase their 
investment and establish new enterprises in Se parate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu.  
 
  
 WT/TPR/M/302/Add.1 
 
- 49 - 
 
  2.7 Foreign investment regime 
Page 31, Para. 2.43 The report describes that “planned free economic pilot zones (FEPZs) in six major ports and Taoyuan International Airport form a key part of the government's strategy to attract more foreign 
investment. Restrictions on labour and on capital and goods flows are being loosened, and tax 
incentives are being provided to firms investing in designated industrial and services activities in the FEPZs.” 
 
Question 2:  
Could Chinese Taipei provide us the details of th e specific measures adopted in the FEPZs for the 
purpose of attracting FDI?  
 
Answer:  
FEPZs Plan will provide a more liberalized business environment and help lower cost of FEPZs 
Enterprises (foreign and domestic). Examples are listed below. 
 1. The high efficiency one-stop services are provided in FEPZs to help save administrative time 
and cost. 
2. The 24-hour express sea consignment hand ling services streamline customs clearance 
process, and help lower cost of FEPZ Enterprises (foreign and domestic).  
3. Foreign shipment owners export goods after storage and simple processing in FEPZs, no 
business income tax will be levied. However, if goods are sold to domestic market, only 10% 
of the total revenue will enjoy a tax exemption. 
4. Local companies that invest in FEPZs with dividends or earnings from their offshore 
operations will be exempt from business income tax. 
5. The agricultural and industrial raw materials, goods, machinery and equipment which FEPZ 
Enterprises (foreign and domestic) import for use in their business operation will be 
exempted from customs duty, business tax and commodity tax. 
 Note: The above tax incentives will be provided  after the Special Act for FEPZs is enacted.  
 
Page 31, Para. 2.43 
The report points out that for an investment in an industry that is restricted by law or regulations, 
approval must be obtained from the competent industry authority. 
 
Question 3:  
For an investment in a restricted industry, what kind of formalities should be completed by 
investors? Please elaborate the details regarding the formalities, competent authorities and their 
responsibilities.  Answer: 
According to Article 8 of the “Statute for Investment by Foreign Nationals,” the investor who makes an investment in accordance with this Statute is required to submit an investment application, together with his/her investment plans and relevant documents, to the competent 
authority for approval. Therefore, foreign investors are authorized to carry out investment 
activities only after obtaining the approval from  the Investment Commission of the Ministry of 
Economic Affairs (MOEA). 
 
Moreover, according to Paragraph 2 of Article 7 of the same Statute, the investor who applies to invest in an industry in which investment is restricted by law or by an order given under the applicable law, shall obtain an approval thereof or a consent thereto from the competent authority 
in charge of the industry. To refer to each rest ricted industry and its competent authority, the 
Executive Yuan, under the authorization of the same statute, has compiled the “Negative List for Investment by Overseas Chinese and Foreign Nationals” and reviews this list on a regular basis.  
 
3.1.6.3 Other Restrictions Page 53, Para. 3.65 
As illustrated by the report, as of 10 April 2014, 2,186 China-origin products at HS 10-digit level 
were prohibited from importation into Chinese Taipei. Nevertheless, the last sentence of this paragraph mentioned that the authorities indicate that the situation will improve after the entry 
into force of the ECFA. 
 WT/TPR/M/302/Add.1 
 
- 50 - 
 
  Question 4:  
We welcome that the statement that the situation of imposing restriction measures on the 
products originated from Mainland of China will be improved. However, there seems no casual-link for Chinese Taipei between performing its own WTO obligations and its engagement of ECFA. 
Therefore, we are hoping that Chinese Taipei could fulfill the WTO obligations to the best effort and 
grant Mainland of China the MFN treatment as soon  as possible. Besides, to normalize the cross-
strait trade is consistent with the development trend of the cross-strait economic and trade 
relationship. Thus, is there any timeframe to eliminate measures which is inconsistent with WTO 
rules? Could Chinese Taipei further explain that wh at kind of measures have been taken to address 
the Members’ concerns on the breaching of MFN principle since last TPR?   
Answer: 
According to  the Cross-Straits Economic Cooperation Framework Agreement (ECFA), both Parties 
have agreed, in line with the basic principles of  the WTO, and in consideration of the economic 
conditions of the two Parties, to gradually reduce or eliminate barriers to trade and investment for 
each other. We have been faithfully implementi ng this agreement between the two Parties. For 
example, we have opened for import 511 mainland China-origin products at the HS 10-digit level 
since our last trade policy review (TPR) in 2010.  
 3.3.3 Government-owned enterprise Page 66, para. 3.166 
The report states that “Privatization of gove rnment-owned enterprises began in 1992; however, 
the privatization schedule is suspended or under re -evaluation. In the context of last TPR, the 
authorities stated that privatization of governme nt-owned enterprises remains at the top of the 
policy priorities …”. 
 Question 5:  
Please explain the main objects of the privatization of government-owned enterprises. Is there any 
restriction or limitation for the oversea investors?   Answer:  
MOEA is making strong progress in implementing the privatization plans for CPC Corporation, 
Taiwan, Taiwan Power Co.:  
(1) CPC Corporation, Taiwan (CPC): CPC is communicating with the labour union and revising the 
privatization plan. 
(2) Taiwan Power Co. (TPC): MOEA will implement th e privatization plan after the Legislative Yuan 
approves the Electricity Act. 
 Foreign investors participating in the privatizatio n of government-owned enterprises shall comply 
with the “Statute for Investment by Foreign Nati onals” and the “Negative List for Investment by 
Overseas Chinese and Foreign Nationals.” Investors from mainland China, on the other hand, shall 
be governed by the “Regulations Governing the Perm ission of Investment by Nationals in Mainland 
Area” and the “Positive List for Investment by Nationals in Mainland Area.”  
 
3.3.5 Competition Policy and regulatory issues Page 69, Para. 3.178 
The report states that “During the review period, the main legislation on competition policy, the 
Fair Trade Act (FTA), was amended twice (in 2010 and 2011). …”.  Question 6:  
Please explain whether there is any revision on the Merge & Acquisition Review Scheme included in 
the amendment on the FTA respectively in 2010 and 2011? If any, please elaborate such 
modification on M&A rules under the FTA. 
 
Answer:   
The 2010 and 2011 amendments to the FTA did no t involve revisions to the Merger Review 
regulations.  
 
Page 70, Para. 3.180 
As pointed out in the report, “It regulates not only monopolistic actions, mergers, and concerted 
actions, but also unfair competition”.  WT/TPR/M/302/Add.1 
 
- 51 - 
 
  Question 7 : 
Please explain that whether the M&A review is applied to the summary procedure. If yes, what are 
the criteria for applying this procedure? Please in dicate the proportion of the total cases adopting 
the summary procedure. 
 
Answer:  
The FTC may apply the simplified procedure to the following types of merger filings: 
1. The aggregate market share of the parties involved in a horizontal merger is less than 
twenty percent of the total market. 
2. The aggregate market share of the parties involved in a horizontal merger is less than 
twenty-five percent of the total market, and one of the parties in the merger is less than five 
percent of the total market. 
3. The aggregate market share of the parties in a vertical merger in each relevant market is 
less than twenty-five percent of the total market. 
4. After examining the considerations specified in  Paragraph 1 of Point 12, the FTC confirms 
that the potential competition between the parties involved in a conglomerate merger is insignificant. 
5. When one of the following situations exists: 
(1) One of the merging parties directly holds more th an one third but less than half of the voting 
shares or capital contribution of another business and merges with the business. 
(2) The merger is a consolidation between busi nesses that already have a parent company-
subsidiary company relationship and Subparagraph 1, Article 11-1 of the Fair Trade Act 
does not apply. 
(3) The merging parties are all subsidiary companies of the same parent company and 
Subparagraph 2, Article 11-1 of the Fair Trade Act does not apply. 
(4) A business surrenders its part or entire voting shares or capital contribution of a third 
company to a business with which it has a parent company-subsidiary company. 
(5) A business surrenders its part or entire voting shares or capital contribution of a third 
company to a business that is also a subsid iary company of the same parent company. 
 The FTC may still apply the regular procedure to merger cases where one of the following 
situations occurs, even if the case meets the qualifications for application of the simplified 
procedure (as described in the preceding article): 1. The aggregate market share of the top two competitors involved in a horizontal merger in 
the relevant market reaches two thirds of the total market or the aggregate market share of 
the top three competitors in the relevant market reaches three quarters of the total market, except when the aggregate market share of the parties is less than ten percent of the total 
market. 
2. The merger involves significant public interest. 
3. One of the merging parties is a holding company as defined in the Financial Holding 
Company Act or the Taiwan Stock Exchange Corporation Rules for the Review of Stock 
Exchange Listing Applications by Investment Holding Companies. 
4. The relevant market of the merging businesses is difficult to define or the market share of 
the merging parties cannot be calculated. 
5. There are high-level barriers to entry into th e relevant market of the merging parties and 
high market concentration or other conditions that are likely to lead to significant disadvantages as a result of competition restriction thereof incurred. 
 
In 2013, there were 51 merger cases. 17 of these cases were reviewed under the simplified procedure.  
 
Page 71, Para. 3.178 
The report states that the FTA was revised respectively in 2011 and 2012, and amendments mainly concern the introduction of a leniency programme.  
 
Question 8:  
Could Chinese Taipei provide more details with respect to the leniency program and elaborate 
more specifically about the provisions on procedural enforcement? 
 Answer:  
The “Regulations on Immunity and Reduction of Fi nes in Illegal Concerted Action Cases” specifies 
the leniency program and the provisions on proced ural enforcement. The information is available WT/TPR/M/302/Add.1 
 
- 52 - 
 
  on FTC's website: 
http://www.ftc.gov.tw/internet/english/ doc/docDetail.aspx ?uid=1302&docid=12223  
(English Version) 
http://www.ftc.gov.tw/internet/main/doc /docDetail.aspx?ui d=1155&do cid=12145  
(Chinese Version)  
 Page 75, Para. 3.182 
The report states that in 2013, the FTC opened investigations into 2,279 cases, among which 306 
were self-initiated and 1,973 were reported, comprising 1,621 complaints, 4 applications for concerted actions, 51 merger notifications, and 297 "requests of opinion".  
Question 9:  
Could Chinese Taipei share more information regarding the cases with significant social impact, 
especially those involving international Cartel and the abuse of intellectual property right?  
 
Answer:  
The latest amendment to the FTA came into effect  in November 2011. The main changes of that 
amendment included the introduction of a leni ency program and an increase in the maximum 
administrative fines for abuse of dominance and concerted actions. In 2012 the FTC received the first leniency application concerning the successful detection of price fixing among four optical disk drive makers, which resulted in fines of NT$54 mi llion in total. In addition, the FTC imposed a 
record NT$6 billion fine on nine power companies for price fixing in March 2013.  
 Page 75, Para 3.183 
 
Question 10:   
The report states that remedies for substantive infringement of FTA include fines and orders to 
cease and correct conduct. Could Chinese Taipei elaborate the specific provisions regarding the 
administrative fines and how to calculate the fines in the enforcement?   Answer:  
Article 41 stipulates that the FTC may impose an administrative fine of no less than NT$50,000 
and no more than NT$25 million. A minimum and a maximum fine may be doubled in case of repeated offences. In serious violation of Articles 10 and 14 of the FTA, the FTC may impose an 
administrative fine of up to 10% of the total sale s income of an enterprise in the previous fiscal 
year may be imposed.  
Article 36 of the Enforcement Rules of Fair Trade Act: when assessing fines in accordance with the 
Act, all circumstances shall be taken into consideration, and the following items shall be noted: 
(1) motivation, purpose, and expected improper benefit of the acts; 
(2) the degree of the act's harm to market order; 
(3) the duration of the act's harm to market order; 
(4) benefits derived on account of the unlawful act; 
(5) scale, operating condition, and market position of the enterprise; 
(6) whether or not the type of unlawful act involv ed in the violation has been the subject of 
correction or warning by the central competent authority; 
(7) types of, number of, and intervening time between past violations; 
(8) the punishment for such violations; and remorse shown for the act and attitude of 
cooperation in the investigation. 
 Questions based on Report by the Chinese Taipei (WT/TPR/G/302) 
 Page 13, Para. 4.21 The report states that “After these amendments take effect, most foreign investors will only need 
to notify the Investment Commission when they implement the investment, instead of filing an 
application to obtain approval in advance. However, official approval before investment is still required under some exceptional circumstances …”. 
 
Question 11:  
This Para mentioned the existence of exceptions. Could Chinese Taipei please outline under which 
circumstances the official approval before investment is required? 
 WT/TPR/M/302/Add.1 
 
- 53 - 
 
  Answer:  
After draft amendments of the Statute for Investment  by Foreign Nationals come into effect in the 
future, the investor who makes an investment in acco rdance with this Statute is required to submit 
an investment application form, together with his/her investment plans and relevant documents, 
to the competent authority for approval in any of the following events: 
 
(1) Investment in an industry subject to the investment restrictions set forth in Paragraph 2 
of Article 7 hereof; 
(2) the amount of investment or its value exc eeds the amount or value prescribed by the 
competent authority;  
(3) a cross-border merger meeting a certain scale or type; and 
(4) extraordinary investments as defined by the competent authority.  WT/TPR/M/302/Add.1 
 
- 54 - 
 
  SWITZERLAND 
 
Report by the Secretariat  
2.  Trade Policy Regime: Framework and Objectives 
2.7 Foreign Investment Regime (see also Section 3.2.6 Free Zones) 
In para. 2.43 of the Secretariat's report, reference is made to Free Economic Pilot Zones (FEPZ) in 
which restrictions on labor, on capital and on good flows are loosened. Switzerland would be 
interested to get further information on the rela tion between the FEPZ an d the Export Processing 
Zones (EPZ) as well as the Free Trade Zones (FTZ) [see para. 3.138 ff]. Also could the Chinese Taipei authorities inform on the kind of restrictions that are loosened with respect to labor and 
capital flows?  
 Answer: 
Comparing with the EPZs and FTZs, FEPZs enjoy hi gher level of liberalization. EPZs and FTZs 
target on manufacturing industries; however, FEPZ s target on high value-added service industries 
with deregulation and institutional reform as major promoting measures in order to create a more 
favourable business environment. 
 The FEPZs Plan provides more employ ment flexibility and tax incentives. 
(1) In terms of employment flexibility 
i. The FEPZ Enterprises are allowed to employ foreign professionals with work 
experience less than 2 years. The FEPZ En terprises, the employers, are exempted 
from turnover requirements for employment of foreign professionals.
2 These 
foreign professionals are also allowed to provide services in FEPZs on a 
commission or contracted undertaking basis. These foreign professionals are allowed to work under landing visa. 
ii. For mainland Chinese professionals who engage in the commercial activities with FEPZ 
Enterprises, such FEPZ Enterprises at certain scale will be allowed to apply for business stay for them. 
(2) In terms of tax incentives 
i. Local companies that invest in FEPZs with dividends or earnings from their offshore 
operations will be exempted from business income tax. 
ii. For foreign professionals, only half of income is taxable for the first 3 years, and the 
income derived abroad is exempted from tax filing. 
iii. Foreign shipment owners export goods after storage and simple processing in FEPZs, 
no business income tax will be levied. Ho wever, if goods are sold to domestic 
market, only 10% of the total revenue will enjoy a tax exemption. 
 These foreign professionals are also allowed to provide services in FEPZs on a commission or 
contracted undertaking basis. In addition, the plan provides tax incentives to foreign professionals, 
allowing only half of their income to be taxed for the first-3-years.  
Note: The above tax incentives will be provided  after the Special Act for FEPZs is enacted. 
 
In para. 2.49, the Secretariat's report explains that Chinese Taipei is not a member of ICSID and 
that foreign investment disputes are usually resolved according to domestic law. In its bilateral investment agreements, Chinese Taipei is making reference to ICSID and UNCITRAL arbitration 
rules. Could the Chinese Taipei authorities further elaborate on this?  
 Answer: 
To provide diverse avenues of investment dispute resolutions for foreign investors, our bilateral 
investment agreements (“BIAs”) stipulate that in addition to domestic courts or arbitrations, 
foreign investors may submit their investment disputes to international ad hoc arbitration tribunals under the arbitration rules of ICSID, UNCITRAL, International Chamber of Commerce (ICC), and/or 
other arbitration rules to which both disputing parties agree. ICSID, in particular, provides that in 
cases where one of the BIA parties is not its member, the two disputing sides may refer to its Additional Facility Rules, under which the ICSID Secretariat will administer the arbitration 
proceedings for those cases. 
                                               
2 Normally an enterprise of Chinese Taipei can em ploy a foreign professional only if the foreign 
professional has 2 years’ work experience, and the annu al turnover of the employer is above certain level. WT/TPR/M/302/Add.1 
 
- 55 - 
 
  We are committed to the recognition and enforcement of the arbitration awards under our BIAs. It 
is our policy to strengthen protection and thus the confidence of foreign investors and their investments by guaranteeing foreign investors the choice of either a domestic judicial remedy or an international dispute resolution in BIAs (also investment chapters in ECAs).  
 
3.  Trade Policies and Practices by Measure 3.1  Measures Directly Affecting Imports 
3.1.4 Tariffs 
3.1.4.1 MFN tariffs In para. 3.27, the Secretariat’s report states that “Non-ad valorem duties in particular in agriculture tend to conceal relatively high AVEs”. Presuming that Chinese Taipei applies non- ad 
valorem  duties within the scope of its WTO tariff schedule, could Chinese Taipei please outline 
whether it shares the Secretariat’s assessment that “Non-ad valorem duties (…) tend to conceal relatively high AVEs”?  
 
Answer:  
Since we acceded to the WTO in 2002, the customs has imposed alternate duties or specific duties 
on certain agriculture products, and lowered the customs tariffs on some of these products 
according to our commitments to the accession of WTO. Thus, we adopted no n-ad valorem duty in 
particular in agriculture products without any tendency to conceal relatively high AVEs.  
In order to simplify our Customs tariffs, the Ministry of Finance consulted with other competent 
authorities about imposing ad valorem duty to replace alternate duty on certain agriculture products. 9 lines about agriculture and fishery prod ucts adopted alternate duty were written into 
the contents of our latest revised draft of the Customs Import Tariff in July 2014.  
 3.2 Measures Directly Affecting Exports 
3.2.3 Export prohibitions, restrictions, and Licensing 
3.2.3.2 Export licensing In para. 3.129, the Secretariat's report notes that export licensing is applied to 37 products at the HS 10-digit level, among these, to equipment for semi-conductors. Could the authorities of 
Chinese Taipei explain the reasons for maintaining export licensing requirements on equipment for 
semi-conductors?  
Answer :  
To comply with international agreements (e.g. WA 、MTCR、AG), exporters must apply for an 
Export Permit.   
 3.2.3.3 Other export controls The Secretariat’s report outlines in para. 3.132 th at “Products listed as “assisted by the Customs 
for export examination” require approvals from relevant competent authorities before 
exportation”. Could Chinese Taipei describe the pr ocedure? What is the intention of the said 
procedure? Which food and agricultural pr oducts are subject to this procedure? 
 
Answer:  
In the Separate Custom Territory of Taiwan, Peng hu, Kinmen and Matsu, the traders need to apply 
for a permit from relevant competent authorities to export certain agricultural products. After 
examining the application and related required do cuments, the authorities will issue the permits. 
The customs will approve the exportation once the traders present the permits. For example, for 
the sake of international regulations on the cont rols of catch capacity formulated by relevant 
regional fisheries management organizations, exporters shall acquire a permit issued by the 
Fishery Agency before exporting fishing vessels.  
In addition to the above-mentioned example, for the sake of resource management, food security 
and the requirements from importing countries, a permit will also be required for exporting eel 
fries and rice, as well as the exportation of tea, banana, mango, papaya and litchi to Japan. 
 
This procedure is designed to simplify export  procedures, enhance transparency of export 
regulations and procedures, reduce the number of items requiring export permit, and to reduce 
the workload of Customs; without such approvals, Customs would need to spend more time and 
manpower on examination. WT/TPR/M/302/Add.1 
 
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  4  Trade Policies and Practices by Sector 
4.1  Agriculture, fisheries and forestry 4.1.1 Agriculture 4.1.1.3 Border measures 
4.1.1.3.2 Tariff quotas 
With respect to tariff quotas for agricultural products, the Secretariat’s report states in para. 4.10 that “The Bank of Taiwan (BOT) is entrusted by the Finance Ministry to administer the allocation of 
TQs for these items (…)”. Could Chinese Taipei explain the reasons for this quota allocation 
procedure? According to which criteria and mechanisms are the TQs allocated by the Bank of Taiwan?  
Answer:  
According to Article 3 of the Regulations of Tariff Quota, the tariff rate quota is allocated by the 
Ministry of Finance or the delegated organization s or other entrusted authorities. Based upon the 
aforementioned regulations, the Ministry of Fina nce entrusted its subordinate agency, the Bank of 
Taiwan, to administer the allocation of TQs.  
 WT/TPR/M/302/Add.1 
 
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  CANADA 
 
Part II. TRADE AND ECONOMIC DEVELOPMENTS : (2) Development of external trade. 
Paragraph 2.7, Page 5  
 
Chinese Taipei’s 98% dependence on energy imports must create an urgency to liberalize the process by which investment decisions in the sector can be taken. This would to some degree stem 
the losses of state owned energy companies such as CPC Corporation and Taiwan Power Company 
(TPC).   Question No. 1: What is the expected timeline for the Executive Yuan’s consideration of the 
amendment to the Electricity Act which is currently before it?  
 Answer: 
The Ministry of Economic Affairs (MOEA) proposed “the Draft amendments in Electricity Act” to the Executive Yuan’s consideration on February 11, 2014.  After the Executive Yuan review the Act, it 
will submit “the Draft amendments in Electricity Act” to the Legislative Yuan. 
 
The main topics of the amendments includes the following: 
- 2 phases progress: mining plant and network Division (separate accounting) and isolation of 
plant and grid. 
- Open generation and retail electricity industry for competition. 
- Establishing the power system operator to dispatch power will ensure fair and open use of 
the power grid. 
 
Question No. 2:  How long before the privatization plan for TPC comes before the Legislative 
Yuan? 
 
Answer: 
TPC privatization plan was never submitted to the Legislative Yuan. According to the resolution made by the Executive Yuan, the privatization plan  of Taiwan Power Company will be revised after 
the Legislative Yuan passes the Electricity Act. 
 The privatization of TPC is planned by public offering listing DR (Depositary Receipt) and strategic 
investor. The privatization timetable of TPC is under  re-evaluation. The release of TPC shares will 
not be implemented until the Legislative Yuan approves the Electricity Act.  
Question No. 3:  How are plans for the privatization of CPC Corporation progressing? 
 
Answer: 
CPC is communicating with the labour union now. The privatization timetable of CPC is under re-
evaluation.   
 Question No. 4:  Are there any plans to liberalize and streamline investment decision making in 
state-owned enterprises? 
 Answer: 
Regarding foreigners to invest in the TPC and CPC, they should follo w the regulation of “Statute for 
Investment by Foreign Nationals” and “Negative List for Investment by Overseas Chinese and Foreign Nationals”, which were issued by the Government on 19 November, 1997 and 17 June, 2013, respectively.  
 
According to the above-mentioned List, the Foreigners may invest 100% of oil operations and other related businesses. 
 
According to the above-mentioned negative List, th e industry of electric power transmission and 
power distribution is one of the restricted industries, but the electricity generation industry isn’t 
included. Therefore, foreign nationals can run and own 100% of electricity generation industry in 
the Separate Customs Territory of Taiwan, Penghu,  Kinmen and Matsu. The foreign investment cap 
of transmission and distribution, under TPC’s operation, is 50%.  WT/TPR/M/302/Add.1 
 
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  According to the draft of the Electricity Act Am endment proposed by the MOEA, the transmission 
and distribution industry will still be kept in the business model of state-owned public utility in the 
future. The MOEA suggests remaining the current 50% restriction, but in the future it may further 
relax the relevant provisions depending on the need. If there is a need to further relax the relevant 
provisions. 
 Part III. DOMESTIC POLICY ENVIRONMENT AN D REFORMS: (1) Macroeconomic policy.  
Paragraph 3.2, Page 7  
 Canada appreciates Chinese Taipei’s foresight in recognizing the need for institutional reform and addressing these objectives. However, this does not address the challenges of legislative 
uncertainty which can pose a threat to a predictable trading relationship.  
 Question No. 5: What steps can be taken by Chinese Taipei to ensure that legislation is drafted in 
such a way as to take Chinese Taipei’s international trade obligations into account and provide 
trade partners with a significant comment period  so as to minimize adverse trade effects? 
 
Answer: 
We recognize the importance of regulatory transpar ency and predictability. Legislations are usually 
proposed by the administrative agencies and intr oduced to the Congress, namely Legislative Yuan, 
for deliberation and approval. Prior to introduction of the legislation, the administrative agencies 
will complete a regulatory impact assessment, consult with or collect information from relevant 
stakeholders and interested persons, and hear expert  opinions or hold public hearings if necessary. 
If a proposed legislation will impact on international trade, the proposing administrative agencies 
will take them into account and provide our trade pa rtners with a reasonable period to comment in 
accordance with WTO requirement during the regulatory impact assessment and public consultations. 
 
Question No. 6: What is the best way to address instances where private members propose 
changes to legislation that are not science based and disrupt trade, such as the case of the 
banning of trade of marine mammal products?  
 
Answer: 
Our law amendatory procedure is rigorous. Only the executive authority and legislators have the 
jurisdiction to propose changes to legislation. Once  a proposal is submitted to the Legislative Yuan, 
it needs to be reviewed by the relevant committee and legislator’s plenary sessions.   
The Article 24 of Wildlife Conservation Act, amended on January 23rd, 2013, indicates that no 
import or export of live marine mammalian wildlife or products will be allowed without prior approval from the authority. Meanwhile, the impo rt or export of live marine mammalian wildlife or 
products is limited to those hunted by indigeno us people for their subsistence within their 
traditional territories from the country of origin. In this regard, a relevant certificate must be 
submitted to the authority before the live marine mammalian wildlife or products are imported.  
The import of marine mammalian products is treated no less favourably than the same or similar 
domestically-produced goods. The trade of relevant products are not constrained or prohibited. Based on the above-mentioned regulation, the applicants can apply for importing the live marine 
mammalian wildlife or products to us with relevant certificates issued by the marine mammalian 
wildlife management authority of the country of origin or its authorized organizations.   
 Part IV. TRADE AND INVESTMENT POLICY DE VELOPMENTS: (3) Unilateral liberalization. 
Paragraph 4.17, Page 12  
 This section notes efforts by Chinese Taipei to lay the groundwork to join regional economic 
integration efforts in the near future.  
 Question No. 7: As Chinese Taipei prepares itself for potentially becoming a TPP negotiating party 
does it have any intention of unilaterally removing discriminatory tariffs in areas in which it has no 
competing products, such as Maple Syrup? What is the rationale for this tariff being maintained?  
  
 WT/TPR/M/302/Add.1 
 
- 59 - 
 
  Answer: 
Joining the TPP, pursuing free trade, and promoting economic development constitute our 
economic policy. In order to maintain a dynamic ba lance of domestic economic resources, we have 
not yet fully adjusted tariffs in areas with uncom petitive products. Howeve r ,  w e  h a v e  a d j u s t e d  
tariffs according to our previous commitment under WTO agreements. We maintain the current 
tariffs due to the current industrial balance and civil pressure, and may adjust in the future under TPP negotiations.  
 
We maintain an MFN, non-discriminatory tariff on maple syrup, which is applicable to all WTO Members including Canada. Also, imported maple syrup is treated equally with domestic product, if any, when it enters the domestic market. Once we formally participate in the TPP negotiations, we 
will review our entire tariff structure.   
 Part IV. TRADE AND INVESTMENT POLICY DE VELOPMENTS: (3) Unilateral liberalization. 
Paragraphs 4.18-4.21, Page 13 
 Canada understands well the need to liberalize an  economy while securing the support of domestic 
stakeholders and it appreciates the steps that Chinese Taipei’s has taken to create pockets of 
enhanced trade liberalization with the establishmen t of the FEPZ. The report notes that the initial 
phase of the FEPZ project was launched in 2013 and the second phase is planned for after 
ratification. However, the project is still pending ratification.  
 
Question No. 8: Could Chinese Taipei provide a full implementation date? 
 
Answer: 
In order to start this plan as early as possible, the FEPZs Plan is divided into two phases. Phase I 
which focuses on the revision of administrative regulations was kicked off in August 2013. Phase II 
will be started right after the Special Act for FEPZs is enacted, in order to adopt more liberalization 
measures.   
 
Question No. 9: When is the “Special Act” likely to be ratified which would allow for the second 
phase of liberalization?  
 
Answer: 
The Special Act for Free Economic Pilot Zones (Draft ) is currently reviewed by the Legislative Yuan. 
We are making every effort to help facilitate the ratification of this draft Act.   
 
Question No. 10: If further delays are expected, are there planned next steps; such as, a second 
set of priority industries to be fast-tracked in another “Implementation phase”?  
 
Answer: 
Should the draft fail to be passed, our Administration will take an individual approach for 
deregulation to keep promoting liberalization and industrial development.   
 Question No. 11: How successful has the FEPZ project been in securing new or additional foreign 
investment thus far?  
 
Answer: 
Since its approval by our Cabinet in August 2013, the FEPZs Plan has attracted foreign 
investments amounting to USD13 million from three different foreign companies by August 2014.   
 
Question No. 12:  Has the project resulted in significant savings for those companies (foreign and 
domestic) which are already located in the designated areas?  
 
Answer: 
FEPZs Plan will provide a more liberalized business environment and help lower cost of FEPZs 
Enterprises (foreign and domestic). The examples are listed below.  
(1) The high efficiency one-stop services provided  in FEPZs help save administrative time and 
cost. WT/TPR/M/302/Add.1 
 
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  (2) The 24-hour express sea consignment handling services streamline customs clearance 
process, and help lower cost of FEPZs Enterprises (foreign and domestic).  
(3) Foreign shipment owners export goods after st orage and simple processing in FEPZs, no 
business income tax will be levied. However, if goods are sold to domestic market, only 10% 
of the total revenue will enjoy tax exemption. 
(4) Local companies that invest in FEPZs with dividends or earnings from their offshore 
operations will be exempt from business income tax. 
(5) The agricultural and industrial raw materials, and machinery and equipment which FEPZ 
Enterprises (foreign and domestic) import for their own use will be exempt from customs duty, business tax and commodity tax. 
 
Note: The above tax incentives will be provided  after the Special Act for FEPZs is enacted.   
 
Question No. 13: Given a complicated layering of incent ives in the economy, what steps are 
being taken to enhance transparency, predictability and access to information for potential 
investors?  
 
Answer: 
The high-efficiency one-stop service has been pr ovided at InvestTaiwan Service Center where 
potential investors can always get the most updated information on the FEPZs Plan for their 
investment guidance. Potential investors can al so visit www.fepz.org.tw/en/ for the related 
information.  
 
In addition, our Administration has presented th e FEPZs Plan to a number of foreign communities 
in Taipei such as American Chamber of Commerce (AmCham), European Chamber of Commerce Taiwan (ECCT) and Japanese Chamber of Commerce and Industry (JCCI). Since August, we have 
briefed the FEPZs Plan to many foreign visitors including foreign politicians, scholars and 
journalists. We have also conduc ted investment roadshows in many countries such as United 
Kingdom and Japan in order to attract investments.   
 
Question No. 14:  With respect to the relaxation on rules governing financial service workers in 
FEPZ would it not simply be easier, and more efficient, to relax the rules on these professionals 
across the economy rather in specific geographic locations?  
 Answer: 
With the double-track implementation mechanism, the Plan can be implemented in either physical 
mode or designated test-point mode. As some inno vative services or activi ties, such as Financial 
Services or Education Innovation, which are not feasible for implementation in physical FEPZs where locations and boundaries are geographically defined, these economic activities then will be 
implemented in designated FEPZs. Therefore, the relaxation of regulation on financial services 
professionals applies to all qualified financial institutions across the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.   
 
Question No. 15:  Canada understands the importance of encouraging cooperation between 
domestic and overseas universities. Why does Chinese Taipei seek to limit potential cooperation by 
limiting their ability to locate outside of the FEPZs?  
 
Answer: 
With double-track implementation mechanism, the Plan can be implemented under either physical 
mode or designated test-point mode. For instance , education innovation, one of the FEPZs target 
activities, is conducted through cooperation betw een existing domestic universities and overseas 
prestigious universities to set up branch campuses, branch department, independent colleges, 
degree programs and professional courses. The overseas universities do not necessarily set up a 
brand new university in the physical FEPZs. They can actually proceed with the captioned activities 
in universities they cooperate with. Therefore, the relaxation of regulation on cooperation between 
domestic and overseas prestigious universities under education innovation shall apply to all the 
qualified universities across the Economy. 
  
 
  WT/TPR/M/302/Add.1 
 
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  Part IV. TRADE AND INVESTMENT POLICY  DEVELOPMENTS: (4) Bilateral trade 
agreements. Paragraphs 4.22-4.28, Pages 13-14.  
 
Canada takes note of Chinese Taipei’s bilateral activity. 
 Question No. 16: When are the ECFA negotiations likely to restart in earnest?  
 
Answer:  
As of August 2014, two of the four ECFA follow- up agreements were completed. The other two 
follow-up agreements, namely trade in goods and di spute settlement, are currently in the midst of 
ongoing negotiations.  
 Question No. 17: What is the current timeline for completion of the various follow-up 
agreements?  
 Answer:  
There is no specific timeline. Both parties en deavour to conclude the two remaining follow-up 
agreements as soon as possible.  
 Question No. 18: What benefits could the ECFA negotiations hold for Chinese Taipei’s other trade 
partners?  
 Answer:  
The ECFA and its follow-up agreements will protect the rights and interests of our businesses and 
enhance industrial divisions across the Taiwan Strait. Foreign companies can make use of us as a springboard for entry into the mainland China market by investing us, because we provide better 
IPR protections, they can also enjoy lower tariff rates and have better market access in mainland 
China. We can therefore serve as an effective br idge for foreign businesses seeking to enter the 
mainland China market.  
Question No. 19:  What impact will the TIFA discussions have on Canada’s trade with Chinese 
Taipei? 
 
Answer: 
The TIFA meetings are currently our most important avenue for high-level economic consultations 
with the US. As a key signifier of the development of our bilateral trade relations, they serve as a 
major platform for eliminating barriers to trade as well as for promoting trade and investment 
cooperation. The TIFA mechanism has already born e fruit, as demonstrated by American support 
for our accession to the WTO, the signing of the WTO’s Government Procurement Agreement (GPA), the strengthening of IPR protection legislation, etc. 
 
Currently, we also share a similar avenue for high-level bilateral economic consultations and discussions with Canada. By bolstering this existi ng mechanism, the two sides will be able to 
continue expanding our trade relations and take bi lateral economic cooperation to the next level. 
 Part V. FUTURE OUTLOOK. 
Paragraph 5.4, Page 15.  
 Canada recognizes Chinese Taipei’s recent efforts towards regulatory alignment with international norms and specifically for initiating an elimination of discriminatory beef access rules and granting 
Canada bone-in UTM beef access.  
 Question No. 20:  The stringent testing regime for certain imported beef products at Chinese 
Taipei’s border, however, remains a trade impediment. At what point will with this regime be 
brought in line with OIE guidelines?3 
 
 
                                               
3 1 The guidelines allow for beef products to be sa fely traded, provided that  the exporting country has 
taken all appropriate steps to manage  bovi n e s pongi form e n ce ph al opath y ( BSE),  s u ch  as  fe e d c ontrol s  and 
surveillance. WT/TPR/M/302/Add.1 
 
- 62 - 
 
  Answer: 
Following the principles of the WTO/SPS Agreement, we implement necessary import controls and 
import inspection measures on beef products from countries with reported cases of BSE. 
 
Question No. 21: Canada would also like to know when the import licensing regime for certain 
beef products from Canada will be phased out?  
 
Answer: 
We will assess and adjust relevant measures whenever necessary. 
 Question No. 22 and 23:  Given that the market for beef containing ractopamine has been 
opened when will the pork markets to be opened? What is the rationale for not doing so yet? 
 Answer: 
We establish our SPS measures in accordance with the results of our risk assessment results, which is consistent with the WTO/SPS Agreement and related regulations.  
Currently, SPS measures regarding ractopamin e among WTO Members are varied. A number of 
members have banned meat with ractopamine residue.  Question No. 24: Does Chinese Taipei need any further in formation that other governments could 
provide to facilitate the opening of the market to this product?  
 Answer: 
Any information is welcome, and will be taken into account.  Part III. TRADE POLICIES AND PRACTICES BY MEASURE: (1) Measures  Directly Affecting 
Imports. 
Paragraph 3.38, page 44  
 The Ministry of Finance has authority to adjust customs duties temporarily in order to deal with an 
"extraordinary" economic situation, domestic or overseas, or a situation to accommodate the 
supply of goods, or to provide a "reasonable op erational environment" without seeking approval 
from the legislature.  
 
Question No. 25 . Could Chinese Taipei please elaborate on how these circumstances are 
determined? Are tariff reductions notified in advance?  
 
Answer: 
Once the Ministry of Finance (MOF) receives an application for temporary adjustment of customs 
duties, it will submit the application to competent authorities to review if the application meets the 
requirements or circumstances under the Article 71  of the Customs Act. After the confirmation of 
the competent authorities’ review, the MOF will submit the application to the Customs Tariff 
Commission for further review. After the Commission’s verification, the MOF will notify the public 
in advance, and submit it to the Executive Yuan . With the Executive Yuan’s approval, the MOF will 
proclaim that the measure takes effect.  
 
Part III. TRADE POLICIES AND PRACTICES BY MEASURE: (1) Measures  Directly Affecting 
Imports. Paragraph 3.49, page 47  
 
From 1 June 2011, certain "high-priced" goods,  such as passenger cars, yachts, aircraft, 
helicopters, ultra-light vehicles, furniture, turtle shells, hawksbill, coral, ivory, and furs and fur products are subject to Specifically Selected Goods and Services Tax. The tax rate is 10%. More 
than 30% of Specially Selected Goods and Services Tax was collected at the border in 2013.  
 Question No. 26: If the majority of the Specifically Selected Goods and Services Tax is collected 
at the border, then domestically produced goods could potentially not be subject to the tax. Could 
Chinese Taipei please explain how these meas ures conform with GATT Art. III commitments. 
  
 WT/TPR/M/302/Add.1 
 
- 63 - 
 
  Answer: 
Under the SSGST Act, the SSGST shall be imposed on the sale, manufacture, and import of 
specifically selected goods or the sale of specific ally selected services within the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu.  Given the SSGST is equally imposed on the 
import goods and locally-produced goods compliance with the tax requirements, the SSGST is in 
conformity with the commitments of GATT Art. III.   
 
Part III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) Measures  Directly Affecting 
Imports. Paragraph 3.118, page 58  
 
The Secretariat report notes that ‘genetically modified plants’ must be clearly labelled as 
‘genetically modified’ and display the unique GM pl ant identification number issued by the Council 
of Agriculture.  
 
Question No. 27: How will relevant authorities in Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu differentiate ‘GMOs as food raw materials’ (e.g., seed) from their end product 
(e.g., oil without GM protein) when implem enting the new GMO labelling requirement? 
 Answer: 
Food businesses shall implement self-management to ensure the accuracy of labelling and shall 
provide supporting information, evidence or records. 
 PART IV. TRADE POLICIES BY SECTOR: (1 ) Agriculture, Fisheries and Forestry. 
Paragraph 4.6, page 85  
 According to the Secretariat report, the Council of Agriculture (COA) intends to develop scientific 
agriculture and promote agricultural exports, so as  to build agriculture as one part of the global 
value chain and green industry.   Question No. 28: Could Chinese Taipei specify what agricultural products will benefit from an 
export promotion program and what measures will be used to promote these products?  
 Answer: 
The export promotion program is aimed at enhancing the global recognition of our agricultural products, so as to increase the agricultural exports. The coverage of beneficial products in this program is rather wide, including tuna, grouper, tilapia, orchid, tea, soya bean, banana, mango, 
etc.  
 The program will assist exporters in expanding the global markets of our agricultural products by adopting the related measures, such as the particip ation of overseas exhibitions, doing the global 
image advertising, taking promotion activities, etc.  
 Question No. 29: Could Chinese Taipei clarify what measures will be implemented to develop 
“scientific agriculture”?  
 Answer: 
We adopted the following measures for developing scientific agriculture:  - Innovating R&D - Integrate traditional technology and advanced biotechnology. 
- Strengthening the management and application of R&D achievements. 
- Assisting the scientific and technological agribusiness. 
- Establishing the Agricultural Technology Research Institute to accelerate the industrialization of 
agricultural science and technology. 
 
These measures will further strengthen innovative value and interdisciplinary integration, expand 
agricultural industry's value chain, as well as tu rn the competitive achievements of agricultural 
technology research and development into commercially viable  products in global markets. 
Through developing the scientific agriculture, we plan to transform our traditional agriculture to a 
market-oriented industry with high-added value.   
  
 WT/TPR/M/302/Add.1 
 
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  PART IV. TRADE POLICIES BY SECTOR: (1 ) Agriculture, Fisheries and Forestry. 
Paragraph 4.21, page 88  
 According to the Secretariat report, the agricultural fertilizer price-difference subsidy accounted for 
the majority of non-product-specific AMS payments in 2009.  
 Question No. 30: Could Chinese Taipei outline the eligibility criteria for farmers to qualify for the 
subsidy and is there a limit on the amount of subsidy per farmer?  
 Answer: 
Farmers can get the subsidy if they purchase agricultural fertilizer at the distribution shops with 
registration of their names and contact details.  
 The subsidy is granted based on the actual usage of fertilizer. Currently there is no limit on the 
amount of subsidy per farmer.   
 PART IV. TRADE POLICIES BY SECTOR: (1 ) Agriculture, Fisheries and Forestry. 
Paragraph 4.33, page 91  
 According to the Secretariat report, livestock insurance is operated by the local farmers’ associations, with the government providing guidance.  
 
Could Chinese Taipei elaborate on the government guidance provided to local farmers’ associations and provide additional information on the following?  
 
Question No. 31: Whether insurance options protect against revenue and/or yield losses;  
 
Answer: 
The livestock insurance only pays for the death of individual livestock. The revenue or yield loss is 
not covered by the program.   
 
Question No. 32:  Does the government pay a share of the insurance premiums and if so what is 
the percentage?  
 
Answer: 
The share of insurance premiums covered by govern ment is 70%. Farmers need to afford the rest 
of 30%.   WT/TPR/M/302/Add.1 
 
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  PARAGUAY 
 
Preguntas del Paraguay 1. Entre los aranceles  no ad valorem del Taipei Chino el mayor número se presenta en productos 
agrícolas. El equivalente ad valorem de dichos aranceles puede ser fácilmente 100 puntos 
porcentuales más alto que el promedio de tasas ad valorem (sección 3.1.4.1). Existe algún plan unilateral/progresiva  de reducción (en los niveles) y/o simplificación (conversión ad valorem) 
de dichos aranceles, de manera a facilitar las negociaciones con miras a avanzar en el proceso 
de reforma de la agricultura? Igualmente, notamos que algunos productos procesados como aceites verifican mayores aranceles. Existen esfuerzos por reducir el escalonamiento arancelario? 
 
Answer: 
Since we acceded to WTO in 2002, we have imposed alternate duties or specific duties on certain 
agriculture products, and lowered the customs tariffs on some of these products according to our 
commitments to the accession of WTO. We have  not adopted any measure to increase customs 
tariffs since then. 
 
In order to simplify our customs tariffs, the Ministry of Finance consulted with other competent authorities about imposing ad valorem duty to replace alternate duty on certain agriculture products. In July, 2014, 9 lines of agriculture and fishery products which adopted alternate duty 
were put into the contents of our latest revised draft of Customs Import Tariff.  
 2. En la sección 3.1.4.4  del informe de la secretaría, notamos que el Taipéi Chino  ha reducido 
temporalmente los aranceles aduaneros para enfrentar situaciones extraordinarias de subidas 
de precios y acomodar la oferta de mercaderías. Igualmente, en la sección de Políticas sectoriales, se resalta que a pesar de ser el sector que recibe mayor ayuda doméstica y 
protección de frontera, con tarifas y contingentes arancelarios, la competitividad del sector 
agrícola no ha presentado ganancias significativas.  
 Considera el gobierno del Taipei Chino extender aquellas reducciones temporales de manera a 
hacerlas permanente y  así reducir la presión de costos sobre los consumidores y de esa manera 
mejorar la  seguridad alimentaria a través de  políticas orientadas al mercado y el comercio internacional. 
 
Answer: 
The temporary measure of tariff reduction taken by us is aimed at tackling special economic 
situations. As for the permanent reduction of agricultural tariffs, it will be made based on the 
outcomes of Doha negotiations.  3. En la sección 3.1.6.2 del informe de la secretaria, se puede notar que para la obtención de 
licencias a la importación, los importadores deben recurrir a más de una entidad. Considera 
Taipéi Chino introducir mecanismos como ventanilla única o reducir los pasos para la expedición de dichas licencias. 
 
Answer: 
According to the Foreign Trade Act, a corporation or business firm registered with the Bureau of 
Foreign Trade as an exporter/importer may engage in export/import business. In addition, 
according to the “Regulations Governing Registra tion of Exporters and Importers”, except where 
other prohibitions or restrictions apply, a compan y or firm that engages in export/import business 
shall apply, in accordance with the standard procedures, to the Bureau of Foreign Trade for 
registration as an exporter/importer. Therefore, it is unnecessary for an importer to register more 
than one company.  
Moreover, the Ministry of Finance has establishe d a single window mechanism for customs, port, 
and trade (CPT), to integrate procedures for issuance of documents from various authorities relating to import and export matters.  
 
4. Visto que el Paraguay exporta madera y derivados a Taipéi Chino, ¿Cuenta el gobierno de 
Taipéi con programas de reforestación en cooperación con los países proveedores de dicha materia prima? 
 WT/TPR/M/302/Add.1 
 
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  Answer: 
Currently there is no plan for us to cooper ate with other countries in reforestation.  
 5. Cuenta el gobierno del Taipéi Chino con políticas de apoyo y fomento a las empresas de ese 
país, para la inversión en países en desarrollo, en particular de Sud- América. 
 Answer: 
To help our companies with their deployment over seas, the Ministry of Economic Affairs regularly 
collects information on the investment environments of various countries and provides it to our companies to use as a reference. The Ministry and also assist in informing the companies of investment seminars and other investment-promotion activities held by visiting foreign missions or 
foreign representative offices. In addition, our Ministry of Foreign Affairs encourages our 
companies to invest in diplomatically allied count ries by providing subsidies for salaries, facility 
and property rental, and loans under the “Regulatio ns Governing Financial Assistance to Encourage 
Business Enterprises to Invest in Countries Having Diplomatic Relations with the Republic of China 
(Taiwan).”  
 WT/TPR/M/302/Add.1 
 
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  NEW ZEALAND 
 
II TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES  
WT/TPR/S/302, section 2.1, page 24, para 2.2  
 We congratulate Chinese Taipei for the improvemen t it has made in the World Bank “Ease of Doing 
Business” Survey, moving up from the 25th (in 2012) to the 16th easiest place to do business in 
2013.   Question No. 1: Could Chinese Taipei please provide an update on its further plans for regulatory 
reform in the area of ease of doing business?  
 Answer: 
We have continued to pay attention to suggestions from domestic and foreign business groups. Regarding related investment issues, we have al ready opened our market to investment from 
mainland China, eased capital restrictions for financial enterprises, simplified procedures for 
establishing a company as well as for foreigners  coming to reside and work here, and relaxed 
restrictions on technical personnel from mainland China coming to us. All of these liberalization measures have improved the environment for doing business.  
In light of the close interconnection of economies regionally and globally, we have accelerated 
efforts to implement laws and regulations consis tent with international norms, and to improve 
administrative efficiency and transparency. We have also moved in the direction of further 
liberalizing our economy through the following polices. 
 
(1)Seeking entry into regional economic integrations, such as the Trans-Pacific Partnership and 
the Regional Comprehensive Economic Partnership: Regional economic cooperation has 
become a trend worldwide. Our government ministries and agencies handling economic and trade matters have been actively pursuing the signing of bilateral free trade agreements with our trading partners, as well as actively working to pave the way for our entry into regional 
economic and trade initiatives, all with the aim of creating a more liberalized trading 
environment.  
(2)Implementing the “Draft of the Special Act Fo r Free Economic Pilot Zones": FEPZs can serve 
as a pilot scheme for our further economic liberalization. Restrictions on the flow of goods, 
people, capital, information and knowledge will be greatly relaxed within these zones. Through 
the FEPZs, a model for greater liberalization and for creating an business-friendly environment 
will be established. 
(3)In order to simplify the current approval proc ess for FDI, we have already submitted draft 
amendments of “the Statute for Investment by Foreign Nationals” and “the Statute for Investment by Overseas Chinese” in 2012. Both  of Statutes are currently on the examination 
procedure of Legislative Yuan. Once these amen dments enter into force, the majority of 
foreign investors would only need to notify  the Investment Commission of Ministry of 
Economic Affairs (MOEA), as the majority of incoming investment falls below the threshold a 
amount, instead of filing an application for approval in advance. 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
1  Measures Directly Affecting Imports 
(IV) Tariffs  WT/TPR/S/302, section 3.1.4. 5, page 45, para 3.44  
We note that many of Chinese Taipei’s Tariff Rate Quotas (TRQs) identified in the Secretariat’s 
report have remained consistently under-filled.   
Question No. 2:  Does Chinese Taipei have a review programme to assess the necessity of 
maintaining tariff quota restrictions in cases where they are consistently under-filled or not used at 
all?  
 
Answer: 
We implement the TRQs on several products based on its WTO accession commitments. WT/TPR/M/302/Add.1 
 
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  Members do not have obligations to fulfil the quan tities of TRQs. There are many possible reasons 
for any under-fill, such as the change of domest ic consumption and prices from the exporting 
countries, as well as the sanitary and phytosanitary requirements etc.  
As for the review mechanism to assess the under-filled TRQs, we will follow the outcomes of Doha 
negotiations.  
 
(IX) Technical regulations and standards  
WT/TPR/S/302, section 3.1.9, page 52, para 3.84  
According to the Secretariat report, TBT notifications normally specify a comment period of at least 60 days and a proposed date of adoption.  
 
Question No. 3: What number and percentage of all of Chinese Taipei’s TBT notifications from 
2010 to 2014 specify a comment period of at leas t 60 days and a proposed date of adoption?  
 
Answer: 
We propose and notify technical regulations and conformity assessment procedures at an early 
appropriate stage to provide other Members with opportunities to make comments on the said 
measures according to the Articles 2.9 and 5.6 of  the TBT Agreement. We made 94* notifications 
from January 2010 to mid-August 2014, of whic h 64 (approximately 70%) provided a 60-day 
comment period. To increase the ratio, the regula tory authorities have been requested to notify 
other Members through the WTO Secretariat and concurrently provide a 60-day comment period 
while making advance domestic notice.   
 
Question No. 4: What steps have Chinese Taipei’s authorities taken to ensure that the 60 day 
comment period is met? 
 
Answer: 
In order to implement and comply with the TBT Agreement, we have established a national 
committee on TBT, which consists of representatives from regulatory authorities, industry and academia. The committee holds regular meetings three times a year. It is on the agenda of the 
meeting to report the notifications made and reiterate the notification obligations. Furthermore, 
according to a decision made by our Committee of Global Economic and Trade Strategy in June 2014, our regulatory authorities are required to notify Members through the WTO Secretariat and 
provide a 60-day comment period when propos ing trade related legislation and regulations 
covered in the TBT Agreement so as to reinforce implementation of the notification obligations.   
 
WT/TPR/S/302, section 3.1.9, page 52, para 3.86  
In the 2010 TPR, we noted that in 2009 only 18% of Chinese Taipei’s applied standards were aligned to international standards, down from 25% in 2005. The Secretariat report notes that in 2014, according to the authorities, all technical regulations are aligned with international standards 
and we are interested to understand what changes have taken place across all standards during 
the review period.   
Question No. 5:  Could Chinese Taipei please advise what percentage of Chinese Taipei’s applied 
standards are currently aligned to international standards?  
 
Answer: 
To promote internationalization of our national standards (CNS), we actively harmonize CNS with 
international standards. In cases where corre sponding international standards exist, the 
harmonization rates of our national standards wi th international ones were 71% in 2005 and 74% 
in 2009, respectively. As of December 31, 2013, th e overall harmonization rate of our national 
standards where corresponding international standards exist is 90.6%.  
 
Question No. 6: What steps has Chinese Taipei taken to increase the proportion of its applied 
standards that are aligned to international standards?  
 
Answer: 
In accordance with the WTO/TBT agreement and regulations governing the establishment of our 
national standards (CNS), during the course of draft preparation for CNS, where relevant 
                                               
* Addenda & Corrigenda excluded. WT/TPR/M/302/Add.1 
 
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  international standards and the international standards concerned exist or their completion is 
imminent, all or relevant parts of them shall be used as the basis of drafting our CNS standards.   
 2 Measures Directly Affecting Exports  
(vi) Free zones  
 WT/TPR/S/302, section 3.2.6, page 61, paras 3.138 – 3.141  
 
The Secretariat report outlines the establishment of free economic pilot zones (FEPZ) in 2013 for easing market access, facilitating high value-added service industries, and liberalising logistical, manufacturing and knowledge development.  
 
Question No. 7 and No 8:  Can Chinese Taipei please provide: an update on its further plans 
regarding the establishment of free economic pilot zones; and a description of the second phase of 
the development of FEPZs.  
 Answer: 
Since its approval by our cabinet in August 2013,  the FEPZs Plan has attracted foreign investments 
amounting to US$13 million from three different foreign companies by August 2014.  
 The draft Special Act for Free Economic Pilot Zone s is currently under review by the Legislative 
Yuan. We are making every effort to facilitate the ratification of this Act. 
 The focus of the second phase of FEPZs Plan includes: providing tax incentives to FEPZs 
Enterprises, permitting foreign lawyers, CPAs and architects or their firms to invest in or form 
partnerships within the FEPZs, allowing international medical institutions to employ foreign medical personnel to work in their institutions, and encouraging cooperation between domestic and 
overseas prestigious universities to set up branch campuses, branch departments, independent 
colleges. Local governments will also be allowed to apply for establishment of FEPZs in this phase.   
 3 Measures Affecting Production and Trade  
(V) Competition policy  
WT/TPR/S/302, section 3.3.5,  page 69, para 3.3.5.1  
 
The Secretariat report notes that Chinese Taipei has granted the Fair Trade Commission (FTC) 
independent status during the review period.   
Question No. 9:  Could Chinese Taipei provide more information on how the FTC prioritises the 
cases it pursues? 
 Answer: 
According to Article 26 of the Fair Trade Act (hereinafter Act) ，the FTC may investigate and 
handle, upon complaints or ex officio, any violation of the provisions of the Act that harms the 
public interest. Prioritization criteria used by the FTC would include but are not limited to the 
following:  
(1) cases that might have significant impact on society, particularly in relation to cases that might 
do harm to the public interests or draw public attention; 
(2) cases that might have significant impact on competition and consumer welfare; 
(3) cases related to important daily commodity. 
 
IV  TRADE POLICIES BY SECTOR 1 Agriculture 
(i) Overview  
4 Support levels  
WT/TPR/S/302, section 4.1.1. 4.1, page 88, para 4.21 
According to the Secretariat report, non-product-specific AMS for the agricultural fertilizer price-difference subsidy rose from NT$43million in 2007 to NT$5billion in 2009.  
Question No. 10: Could Chinese Taipei please provide information about the sudden and 
substantial rise in expenditure on the agricu ltural fertilizer price-difference subsidy?  WT/TPR/M/302/Add.1 
 
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  Answer: 
Most of the raw materials for fertilizer production in the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu, such as urea, ammonia, phosphate rock and potassium chloride, etc. are imported. The global average price of these raw materials had a significant increase of 441% 
during the year of 2008/2009, compared to the pr ice of base year 2004. Consequently, the costs 
and prices of domestically-produced fertilizers ar e increasing sharply, and the amount of non-
product-specific AMS increased in 2008 and 2009.   
 
Question No. 11: Could Chinese Taipei please advise when it might submit updated notifications?  
 
Answer: 
We have been collecting the relevant data on domestic support for the preparation of submitting updated notifications. The updated notification will be submitted as soon as possible once the data collection is completed.   
 
Question No. 12 : Does Chinese Taipei have any intentions to reduce and/or reform this 
programme of subsidisation?  
 
Answer: 
The subsidy of fertilizer price-difference will be  gradually reduced and eventually suspended. 
 
2 Energy 
(i) Overview  
WT/TPR/S/302, section 4.2.1, page 96, para 4.62  
 
The Secretariat report notes Chinese Taipei’s advice that the energy sector generally operates on a commercial basis free from government subsidisation. However, we also note the references in 
paragraph 4.62 to subsidised oil for farmers and fishermen, and to “50% of the above baseline 
price of gasoline and diesel” being subsidised.   Question No. 13: What was the per annum value of subsidies for oil products for farmers and 
fishermen during the 2010-2014 financial years?  
 Answer: 
When the market price of gasoline and diesel exceeds the baseline price, 50% of the above-
baseline price will be subsidized. This program is for the public transportation and farm machineries, but not for fishing vessels. 
 
The subsidies of oil products for farm mach ineries each year during 2010-2013 were NT$0, 
NT$220,000, NT$45,658,000 and NT$55,456,000 respectively.  
As for the policy of 5% business tax exemption for oil, it is implemented based on Article 8 of the 
“Value-added and Non-value-added Business Tax Ac t”, promulgated by the Ministry of Finance. 
The subsidy program for tax exemption is applied not only to farmers and fishermen, but to many 
goods and services listed in Article 8 of the Act. The subsidy is therefore non-specific. Therefore, 
there is no obligation for Members to notify the details.   
 
Question No. 14: Is the reference to 50% of the above baseline price of gasoline and diesel 
describing a general consumer subsidy or the level of price subsidisation for gasoline and diesel 
used by farmers and fishermen? We would appreciate  clarification of this point, and any associated 
data on the per annum value of these subsidies during the 2010-2014 financial years.  
 
Answer: 
When the market price of gasoline and diesel exceeds the baseline price, 50% of the above-
baseline price will be subsidized. This program is for the public transportation and farm 
machineries, but not for fishing vessels.  
The subsidies of oil products for farm mach ineries each year during 2010-2013 were NT$0, 
NT$220,000, NT$45,658,000 and NT$55,456,000 respectively.  As for the policy of 5% business tax exemption for oil, it is implemented based on Article 8 of the 
“Value-added and Non-value-added Business Tax Ac t”, promulgated by the Ministry of Finance. WT/TPR/M/302/Add.1 
 
- 71 - 
 
  The subsidy program for tax exemption is applied not only to farmers and fishermen, but to many 
goods and services listed in Article 8 of the Act. The subsidy is therefore non-specific. Therefore, 
there is no obligation for Members to notify the details.  
 
 WT/TPR/M/302/Add.1 
 
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  CHILE 
 
WT/TPR/S/302  
RESUMEN 
Entorno económico  
En el punto 4, de la sección sobre el entorno económico, se señala que “…la economía está cada 
vez más vinculada a China, y se espera que el Gobierno siga promoviendo esos vínculos y 
liberalice las relaciones económicas, a través del Estrecho, en particular mediante negociaciones en el contexto del Acuerdo Marco de Cooper ación Económica (ECFA). Este Acuerdo debería 
impulsar el crecimiento del sector de los servicios…”, SOLICITUD: Chile estaría muy agradecido de 
conocer la evolución de las iniciativas que se están llevando adelante en el contexto de los 
principales acuerdos complementarios del ECFA.  
Answer: 
ECFA serves as a road-map for future economic integration between the two parties across the 
Taiwan Strait through four follow-up agreements concerning investment protection, trade in 
goods, trade in services, and dispute settlement.  As of August 2014, two of the four follow-up 
agreements were completed (including trade in services and investment protection and promotion). The services trade agreement is still under deliberation of the Legislative Yuan. The 
other two follow-up agreements, namely, trade in goods and dispute settlement, are currently in 
negotiations. Both parties endeavour to conclude the two remaining follow-up agreements as soon 
as possible.  
3.3.5 Política de competencia y cuestiones de reglamentación 
3.3.5.1 Política de competencia En el punto 3.181, se afirma que de acuerdo al artículo 14, la FTC puede aprobar carteles de 
exportación e importación “para el beneficio de la economía y el interés público”, con un límite de 
tiempo. Aparte del beneficio de la economía y el interés público, PREGUNTAS: ¿Podría detallar si la FTC tiene entre sus consideraciones, para la aprobación de carteles de exportación e importación, las disposiciones OMC que puedan ser pertinentes? ¿Por ejemplo, las establecidas en los artículos 
VIII, XI y XVII del GATT? ¿Cuál sería el periodo de ti empo o bien el límite de tiempo al cual se les 
otorga la aprobación a los carteles de importación o exportación?  
Answer: 
According to Article 19 and 20 of the enforcement rules of Fair Trade Act (FTA), the concerted 
action assessment report accompanying an application for approval filed pursuant to the provisions 
of Subparagraph 4 and 5, Paragraph 1, Article 14 of the FTA shall specify the anticipated concrete 
results in promoting exports and strengthening tr ade respectively. The FTC may approve export or 
import cartel for “the benefit of the economy and public interest”, and Article VIII, XI and XVII of the GATT do not fall under such consideration. Afte r receipt of the application, the FTC shall make 
the decision to approve or reject within three months, and the period of which may be extended 
once if necessary.  
A continuación, se afirma que hasta enero de 2014 no ha habido postulaciones para carteles de 
exportación, y diez carteles de importaciones han sido aprobados por la FTC bajo su consideración de mejorar la eficiencia. La cifra mencionada de diez carteles de importaciones aprobados por la 
FTC, PREGUNTA: ¿Podría es pecificar a qué periodo de tiempo se refiere? 
 Answer: 
According to article 15 of the FTA, the approval for export or import cartel shall specify a time limit 
not exceeding three years. The enterprises involv ed may, with justification, file a written 
application for an extension thereof with the FTC within three months prior to the expiration of such period provided, however, that the term of  each extension shall not exceed three years. 
 
Por último, se establece que la mayoría de estos acuerdos son entre manufactureros de alimentos en compra y transporte conjunto de mercancías a gr anel importado, como por ejemplo: la soja, el 
trigo y el maíz. Aparte de estos productos agrí colas mencionados, PREGUNTA: ¿Podría mencionar 
otros sectores/productos a los cuales se han aprobado carteles?   
 WT/TPR/M/302/Add.1 
 
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  Answer: 
In addition to joint shipment of bulk commodities  imports, the FTC approves cartel cases on joint 
shipment of machinery and equipment imports.  
 
3.3.6 Derechos de propiedad intelectual 
3.3.6.2 Derecho de autor En específico, respecto de lo seña lado en el punto 3.195., PREGUNTA: ¿Existe otro tipo de sanción,  
distinta de la penal, para la radiodifusión o transmisión simultánea de obras protegidas por 
derecho de autor, que sean reproducidas bajo autorización?  Answer: 
The works used in advertisements are sampled and reproduced under authorization by advertising agencies, and the radio and TV stations airing the commercials may only have limited knowledge about their licensing status. In practice, it is very difficult for these users to ascertain in advance 
that the works in the program have obtained authorization from all of the non-CMO-affiliated 
economic rights holders. Therefore, this provisio n (Paragraph 6 of Article 37) states that these 
users should be exempt from criminal prosecutio n pursued by non-CMO-affiliated economic rights 
holders. However, it does not impede non-CMO-aff iliated economic rights holders to exercise their 
rights through civil remedies or demand royalties or indemnity (for damages, if any) from users. In addition, the right to seek civil and criminal remedies with respect to works managed by CMOs remains unaffected.  
 
3.3.6.4 Marcas de fábrica o de comercio e indicaciones geográficas En relación con lo señalado en la sección 3.3.6.4, SOLICITUD: Chile solicita mayor información 
relacionada con la protección otorgada, por medio de la nueva Ley de Marcas de Junio de 2011, a 
motions. En este sentido, agradeceríamos una aclaración en torno a la materia protegida y la forma de protección entregada. 
 
Answer: 
A motion trademark refers to a sequence of moving images that enable the identification of a good or service. The subject matter protected by a motion trademark is the overall commercial 
impression established by the sequence of moving images, which can be recognized by consumers 
as an indication of the source of goods or services.  
The protection of a registered motion trademark is basically the same as that of a registered 
traditional trademark. Such protection includ es, inter alia, the prohibition of the motion 
trademark’s use by digital audio-visual means, through electronic media, the Internet, or other 
media without the consent of the proprietor of said trademark.  
 4.4.3 Telecomunicaciones  y servicios postales 
4.4.3.1 Telecomunicaciones 
El punto 4.123 indica que “en el mes de diciembre de 2010 se anunció una iniciativa de política de 
convergencia digital. La convergencia digital, en este contexto, se refiere a la convergencia de la 
rama de producción de la tecnología de la información, los servicios de telecomunicaciones, la 
rama de producción de electrónica de consumo y la rama de producción de espectáculos”. En ese 
sentido, a Chile le gustaría conocer PREGUNTAS: ¿Cómo se está llevando adelante este proceso? ¿Cómo se busca evitar que, en el desarrollo de la  integración, se generen estructuras que pudieran 
dar como resultado actos anticompetitivos? 
 Answer: 
The Digital Convergence Policy Initiative (2010-20 15) was announced by our Executive Yuan in 
Dec. 2010 with the objective of establishing  a fully integrated converged communications 
environment, encompassing IT, telecommunications services, consumer electronics, and entertainment industries. All government agencies implement relevant measures accordingly, for 
example, the National Communications Commission (NCC) revised the related regulations for 
telecommunication and broadcasting industries in two stages: the first stage was from 2010 to 2012, the second stage started from 2013, and ends up in 2014, aiming to build up a environment 
of fair competition and also to accelerate the integration and application for telecommunication 
and broadcasting industries.  WT/TPR/M/302/Add.1 
 
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  In order to prevent anti-competitive practices du ring the process of convergence, our Fair Trade 
Commission (FTC) has drafted regulations relating to such integration and the development of 4C 
(Telecommunication, Cable TV, Computer Network and E-commerce) industries.   
4.4.4.2 Transporte aéreo 
En el punto 4.139, se informa que, en el último tiempo, el Taipéi Chino ha expandido los acuerdos 
bilaterales de servicios aéreos de carácter recíproco y que, además, se ha puesto en marcha un 
régimen de cielos abiertos con Japón y con la República de Corea. Chile agradecería conocer 
PREGUNTAS: ¿Qué libertades del aire incluyen los regímenes de cielos abiertos que se han puesto en marcha con Japón y con la República de Corea? ¿Éstos contienen algún tipo de limitación o restricción? 
 
Answer: 
Between points in the Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu and 
points in Japan, each side is entitled to operate passenger and/or cargo services with unlimited 
third, fourth and fifth freedom traffic rights, exce pt Tokyo with limited fift h freedom traffic rights. 
Between points in the Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu and 
points in the Republic of Korea, each side is en titled to operate passenger services with unlimited 
third and fourth freedom traffic rights, except on TPE-ICN route with capacity limitation.  
 WT/TPR/M/302/Add.1 
 
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  SINGAPORE 
 
QUESTIONS REGARDING THE SECRETARIAT REPORT II TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
 
QUESTIONS:  
Foreign Investment Regime 
Page 31 (Para 2.43) 1. Singapore would like to understand more abou t the new Free Economic Pilot Zones (FEPZs) in 
the following areas:  
 
(i) tax incentives provided to firms investing in designated industrial and services activities in the 
FEPZs; 
(ii) how companies can qualify for such incentives; and  
(iii) which of the tax incentives in mentioned (i) are provided to companies operating in the FEPZs 
only and are not extended to comp anies operating outside the FEPZs? 
 
Answer:  Q(i) 
Local companies that invest in FEPZs with dividends or earnings from their offshore operations will 
be exempt from business income tax. 
 
For foreign professionals, only half of income is taxable for the first 3 years, and the income derived abroad is exempted from tax filing. 
 
Foreign shipment owners export goods after storag e and simple processing in FEPZs, no business 
income tax will be levied. However, if goods are sold to domestic market, only 10% of the total 
revenue will enjoy a tax exemption. 
 The agricultural and industrial raw materials,  goods, machinery and equipment which FEPZ 
Enterprises (foreign and domestic) import for use in their business operation will be exempt from 
customs duty, business tax and commodity tax. 
 Note: The above tax incentives will be provided  after the Special Act for FEPZs is enacted. 
 
Answer:  Q(ii)  
Foreign shipment owners export goods after storag e and simple processing in FEPZs, no business 
income tax will be levied. However, if goods are sold to domestic market, only 10% of the total 
revenue will enjoy a tax exemption.  Local companies that invest in FEPZs with dividends or earnings from their offshore operations will 
be exempt from business income tax. Such companie s need to carry out real investment activities 
in FEPZs, such as building factories, employing workers, and should not get involved in stock or 
land speculation. 
 
Note: The above tax incentives will be provided  after the Special Act for FEPZs is enacted.   
 
Answer:  Q(iii)  
With double-track implementation mechanism, the Plan can be implemented under either physical 
mode or designated test-point mode. As some innovative services or activities such as financial services or education innovation which are not feasible for implementation in physical FEPZs where 
locations and boundaries are geographically defi ned, these economic activities then will be 
implemented in certain designated FEPZs. Only FEPZ  Enterprises of the industrial activities which 
are implemented in the physical FEPZs such as smar t logistics are entitled to all the tax incentives 
l i s te d  i n answe r to Que s ti on N o. 1 .  S uc h F EP Z En terprises need to set up offices or production 
facilities within the zones. As regards the industrial activities implemented under designated test-point mode such as financial services, the qualified FEPZ Enterprises of this kind can only enjoy tax 
incentives offered to their foreign employees. The FEPZs Special Act provides that only half of 
income of qualified foreign professional is taxable for the first 3 years, and their income derived abroad can be exempted from tax filing.  
 
 WT/TPR/M/302/Add.1 
 
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  Page 35 (Para 2.47) 
2. Singapore would like to seek updates from Chinese Taipei on the date of implementation for the amendments to the Statute for Investment by Foreign Nationals (SIFN) and the Statute for Investment by Overseas Chinese (SIOC), which was proposed back in 2012. In the event that the 
amendments are legalised, Singapore would like to seek clarifications on the following: 
 (i) Areas/sectors where prior approval for investme nt would not be required from Chinese Taipei; 
and  
(ii) Exceptional circumstances of which prior approval for investment in Chinese Taipei would still 
be required.  
 
Answer: 
In order to facilitate the current approval process for FDI, we have already submitted draft 
amendments of “the Statute for Investment by Foreign Nationals” and “the Statute for Investment 
by Overseas Chinese” in 2012. Both of Statutes are currently under the examination of Legislative 
Yuan. As draft amendments of two Statutes comes to be legislated in the future, most of foreign investors only need to notify the Investment Comm ission of Ministry of Economic Affairs (MOEA) 
as they implemented the investment below a certain amount or less, instead of filing an 
application for approval in advance. However, wh ile investors make an investment in accordance 
with amended Statute, they need to submit an investment application form together with investment plans and relevant documents to the competent authority for approval in any of the 
following events: 
 (1) investing in an industry subject to the investment restrictions set forth in Paragraph 2 of 
Article 7 hereof; 
(2) the amount of investment or its value exceeds the amount or value prescribed by the 
Competent Authority;  
(3) a cross-border merger which meets a certain scale or type; and 
(4) extraordinary investments as promulgated by the Competent Authority.  
 III TRADE POLICIES AND PRACTICES BY MEASURE 
Measures Directly Affecting Imports - Sanitary and Phytosanitary Requirements 
Page 54 - 58 3. With reference to Section 3.1.10 of the Secretariat’s Report, Singapore would like to seek 
clarification from Chinese Taipei on its regime for certifying disease free status for (i) Foot-and-
Mouth Disease (FMD), (ii) Rinderpest (declared global eradication), (iii) Contagious Bovine Pleuropneumonia, (iv) African Swine Fever, (v) Gl anders and (vi) Newcastle disease for trade in 
live animals and meat. Specifically, does Chinese Taipei recognise certification by the World Animal 
Health Organisation (OIE) for members that have been certified disease free for diseases, especially Foot-and-Mouth Disease (FMD), Rinderpest and Contagious Bovine Pleuropneumonia; and if not, what are the reasons for Chinese Taipei not recognising OIE standards? 
 
Answer:  
We have already recognized the global freedom of Rinderpest, including Singapore. Moreover, the 
recognition by the OIE as free from certain an imal diseases (e.g. Foot-and-Mouth Disease or 
Contagious Bovine Pleuropneumonia) would simplify and accelerate the whole application procedure. The processing period for the risk assessment related to disease-free recognition 
depends on the completeness and quality of the dossier provided, as well as the prompt 
submission of the applicant’s supplementary in formation when requested. When supplementary 
information is deemed necessary, we will notify the applicant in a timely manner.  
Measure Affecting Production and Trade – Non-tax incentives, subsidies, and other 
assistance  Assistance to Small-and-medium-sized Enterprises 
Page 65 (Para 3.160) 
4. Singapore would like to enquire on the qualifyi ng criteria for the preferential loans under the 
Development Fund and the type of project costs which are covered under such loans. 
 
Answer:  
The loan taker of "Preferential Loans for Promoting Industries to Rejuvenate and Adjust to trade 
liberalization "are those industries which are qualified for the Program to Support Industries to 
Adjust to Trade Liberalization. The total amount of this fund is NT$ 20 billion. Each loan is provided WT/TPR/M/302/Add.1 
 
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  by the National Development Fund. Because the credit risk of loans under this program is wholly 
taken by undertaking banks, these loans shall be assessed by undertaking banks under their 
operational rules for loan approval.  
The scope of this loan covers: 
(1) Investment for purchase of automation-related machines and equipment 
(2) Investment for purchase of business automation related equipment 
(3) Investment for purchase or improvement of pollution control equipment 
(4) Investment for development or manufacture of new product and technology 
(5) Investment for purchase of computer software and hardware 
(6) Plan for talent training and R&D which are related to industry adjusting and optimizing 
(7) Working capital needed by firms when producing machines, equipment or buying land within 
industrial zones 
(8) Expenses necessary for industry rejuvenating and adjusting 
(9) Working capital needed by firms to operate 
 WT/TPR/M/302/Add.1 
 
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  INDONESIA 
 
GOVERNMENT REPORT  
3 DOMESTIC POLICY ENVIRONMENT AND REFORMS 
3.2 Institutional reform Page 7 Para. 3.5 
“To increase participation by industries and academia in the formulation of trade policies, the 
Consultative Committee of Industrial and Acad emic Sectors (CCIAS) was established in 2012 
under the Committee of Global Economic and Trade Policy Strategy. This move was intended to facilitate dialogue between the government and relevant stakeholders. The CCIAS’s meetings take 
place regularly every six months. The Vice Premier and an industrial leader nominated by 
Committee members jointly ch air the proceedings.”  
 
Question No. 1: Concerning CCIAS, what are the authority and tasks of this Committee? 
 
Answer: 
CCIAS serves as a consultancy platform for industry and academia to provide advice and suggestions to the government regarding global economic and trade affairs, and the signing of FTAs/ECAs and participation in economic integration, as well as facilitation of dialogue between the government and relevant stakeholders. 
 
Its main tasks are to promote and lobby for FTAs /ECAs with designated economies or areas. It 
also provides the government with advice and suggestions regarding domestic outreach on the 
impact of trade liberalization through regional economic integration on domestic industries, and 
appropriate adjustment  policies thereof.   
 
Question No. 2:  Could Chinese Taipei elaborate more on the contribution of this Committee on 
the formulation of trade policy? 
 Answer: 
In the process of promoting economic integratio n and engaging in global economic and trade 
affairs, CCIAS provides the government with advice and suggestions as reference for the 
formulation of trade policy. In addition, it assist s in conveying information on corresponding trade 
measures the government undertakes to industries.   
 3 DOMESTIC POLICY ENVIRONMENT AND REFORMS  
3.3 Industrial development policy and reform  
Page 8 Para. 3.6  
“The major reform regarding industrial developmen t policy that took place during this review 
period in the Separate Customs Territory of Taiw an, Penghu, Kinmen and Matsu was the expiry of 
the Statute for Upgrading Industries (SUI) at the end of 2009, and the introduction of the Statute 
for Industrial Innovation (SII) in 2010 as its successor.”   
Question No. 3: What is the authorized agency which cont rol and evaluate the implementation of 
the SII? 
 
Answer: 
The central governing authority is the Ministry of Economic Affairs. And the ministry will jointly 
handle evaluation of the statute’s implementation with related government ministries and 
agencies.  Question No. 4: Are there any programs of the SII intend ed to enhance global value chain and 
industrial integration? If so, please elaborate them. 
 Answer: 
In order to accelerate industrial innovation, the statute employs a range of policy tools, such as technical guidance and assistance, subsidies, tax incentives, and intangible asset appraisal, to provide assistance to enterprises in their endeavours  to create industry added value, such as their 
innovative activities, intangible asset utilization, skilled talent development, and so on. In addition, 
the statute explicitly calls for the establishment of  a national development fund, which can be used 
to invest in the development of high technology, energy resource recycling, industrial innovation, WT/TPR/M/302/Add.1 
 
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  the green energy sector, technology introduction, as well as other important enterprises, initiatives 
and programs aimed at  increasing benefits to industry and improving industry structure.   
 Page 8 Para. 3.7 
“The SII includes the following provisions: the encouragement for engaging in innovations; 
provisions for the distribution and utilization of intangible assets; human resource development for industries; funding assistance; investment in the sustainable development of industries; and 
provisions on land supply, among others. One of the critical changes in the SII compared to the 
now-abolished SUI was amending the use of tax incentives. Contrary to the SUI that included 
a wide range of tax incentive schemes, the on ly tax incentive remaining under the SII to 
encourage innovation is the 15% tax credit against the payable business income tax for 
expenditures on research and development, provided that the tax credit does not exceed 
30% of the business income tax payable in th at year. The tax incentive is time-limited, 
with a sunset clause of December 31, 2019. ”  
 
Question No. 5: What were the considerations for reducing the number of tax incentives into 
one?  
 
Answer: 
We had offered a lot of tax incentives which were set out in the Statute for Upgrading Industries for the past twenty years and credited for the deve lopment of industries. However, it also caused 
problems such as the erosion of the tax bases, unf airness in the tax-burden, and the complexity of 
our tax regulations. 
 
The tax incentives provided under the Statute for Upgrading Industries were terminated at the end 
of 2009. We had, after careful consideration for financial need and the balanced development of industries, undertaken a reform aimed for “low ta x burden and streamlined tax administration”. 
The income tax rate of profit-seeking enterprises was reduced from25% to 17%, and the new 
Statue for Industrial Innovation continues to provide R&D tax credits to companies in order to encourage local companies to engage in high-end innovation activities.   
 
3 DOMESTIC POLICY ENVIRONMENT AND REFORMS 
3.6 Intellectual property rights (IPR) policy and reform Amendments to the Copyright Act and Copyright Intermediary Organization Act  
Page 9 Para. 3.15 
“Major amendments since 2010 include the exemption from criminal liability for rebroadcasting in 
business places and the broadcasting or simultaneous transmission of copyrighted works which 
were reproduced under authorization in an ad vertisement. Furthermore, the name of the 
“Copyright Intermediary Organization” was ch anged to “Copyright Collective Management 
Organization (CMO)” with new systems for the joint royalty rate and “one-stop shop” introduced to streamline the licensing process. Under the new systems, CMOs are obliged to set up a 
“joint royalty rate” in spec ified types of exploitation designated by the competent 
authority , and CMOs should jointly appoint one CMO (the one-stop shop) for collecting the 
royalty. In addition, the royalty rate review syst em was also changed such that the ex-ante review 
mechanism was removed and replaced by an ex post review in circumstances where a dispute 
arises between the parties concerned. Under the new system, users can make interim payments for lawful use of works managed by CMOs while the competent authority reviews the rate.” 
 
Question No. 6 and 7:  Have there been any “joint royalty rate” set up since 2010? If so, please 
elaborate more and provide examples on the “joint royalty rate”. 
 
Answer: 
As of October 19, 2010, TIPO (Intellectual Property Office, Ministry of Economic Affairs) has 
assigned three Collective Management Organizations (CMOs) responsible for managing musical 
works to adopt a “joint royalty rate” for public performances supported by karaoke machines. 
Although the CMOs have not yet reached consensus on the joint royalty rate, one of the relevant 
CMOs submitted a proposed joint royalty rate to TIPO, MOEA on March 24, 2014. This proposal is 
undergoing the committee’s evaluation.   
   
 WT/TPR/M/302/Add.1 
 
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  SECRETARIAT REPORT 
 1 ECONOMIC ENVIRONMENT 1.6 Trade and investment flows 
1.6.4 Foreign direct investment (FDI) 
Page 21 Para. 1.33.  “Although Chinese Taipei frequently scores relatively well in international competitiveness surveys, 
those rankings do not translate into high levels of inbound investment. During the review period, 
inbound FDI remained in the region of 1% of GDP (Table 1.4). At US$5.3 billion in 2013, FDI remains low compared with regional economies su ch as Thailand, Viet Nam, Singapore, and the 
Republic of Korea. Chinese Taipei has struggled to increase FDI inflows in recent years which, in 
part, reflects a difficult global environment but also the declining price competitiveness of the 
manufacturing sector, stalled trade liberalization, and a failure to address regulatory concerns of foreign investors in matters such as land purchasing and services sector access.” 
 
Question No. 8 and 9: Are there any provisions that regulate land purchase and access to the 
services sector for foreign investors? If so, please provide detailed information on those 
regulations. 
 Answer: 
Foreign investors who may acquire or create rights over land in the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu shall be approved  under Article 17 to 20 of "Land Act", as well 
as relevant regulations in the “Operational Directions for Foreigners to Acquire Land Rights in Taiwan ".  
 
According to Article 18 of the same Act, the acquisition of land rights by foreign nationals in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu should be, according to the 
mandates of the law, equal to the rights of our nationals enjoy in the host country.” In addition, 
“In applying for acquisition of land rights, the individual must attach documentation from relevant agencies as proof that his country has extended th e same rights to the Separate Customs Territory 
of Taiwan, Penghu, Kinmen and Matsu nationals.” 
 
Foreign investors who may invest in service sector in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu shall comply with “the  Statute for Investment by Foreign Nationals" 
and "Negative List for Investment by Overseas Chinese and Foreign Nationals". Recently, the list 
was amended in the year of 2010, 2012 and 2013 . These amendments deregulated a considerate 
amount of limitations or restrictions in service sector to foreign investors. 
 
The liberalization and opening of relevant sectors for foreign investment have been conducted in full compliance with our WTO commitments. We will continue to welcome all foreign investments 
which bring know-how and innovative technologies to help stimulating the growth of our economy 
and to improve the living standard of our society.  The Investment Commission of the Ministry of 
Economic Affairs (MOEA) is currently coordinating a general review of the existing restrictions on 
certain industrial sectors. Further deregulation will then be made public as soon as this reviewing 
process is concluded 
 3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.9 Technical regulations and standards  
Page 52 Para. 3.85  
“Any person, legal entity, government agency or organization may submit proposals for national 
standards to the National Standards Review Council. The relevant standard authorities such as 
various National Standards Technical Committees prepare the draft standards, and publish for comments. The standards, once finally adopted,  will be granted a CNS symbol and a serial 
number. As stipulated in the Regulations Governing the Establishment of National Standards, 
international standards are used as the basis for drafting national standards, except where these would not conform to the purpose of the national standard. Notices of proposed technical 
regulations, standards, procedures for conformity  assessment, and their final texts are published 
in the Government Gazette and on the BSMI website.”  
 Question No. 10: Chinese Taipei is not a member of ISO/IEC and Codex Alimentary Commission. 
Could Chinese Taipei explain which international standards have been adopted as a basis for WT/TPR/M/302/Add.1 
 
- 81 - 
 
  drafting the national standards?  
 
Answer: 
The TBT Committee has not designated what organizations as the international standardization 
bodies. In light of the decision adopted by the TBT Committee on six principles for the 
development of international standards, guides and recommendations (G/TBT/1/Rev.10), the following principles and procedures should be observed during the development of international 
standards, to ensure transparency, openness, impartiality and consensus, effectiveness and 
relevance, coherence, and to address the concer ns of developing countries. Standards developed 
by the standardization bodies that follow the six principles are considered as “international 
standards”. In accordance with the regulations governing the establishment of our national 
standards (CNS), during the course of drafting CNS, where relevant international standards and 
the international standards (e.g. ISO, IEC, ITU an d Codex) concerned exist or their completion is 
imminent, all or relevant parts of them shall be used as the basis of drafting our CNS standards.   
 
Question No. 11:  What are the considerations applied by the authorities when drafting national 
standards based on international standards? 
 
Answer: 
In accordance with paragraph 2 of Article 6 of our Regulations Governing the Establishment of 
National Standards, during the course of draf ting our national standards, where relevant 
international standards and the international standards concerned exist or their completion is imminent, all or relevant part of them shall be used as the basis of drafting national standards, except where those standards would not conform to the purpose of establishment or amendment 
of national standards.  
 Question No. 12: What will the Government of Chinese Taipei do, if in practice, there are cases of 
misuse in the adoption of international standards (ISO/IEC and Codex)? 
 Answer: 
There are no actual cases available to date.   
 Page 52 Para. 3.86 “Domestic standards (including national an d professional standards) are voluntary, 
except those designated as technical regulations. The standards policy is intended to 
promote standardization; to pursue quality improvement for products, processes, and services; to increase productivity; and to ensure adequacy of production, transportation, marketing, and 
consumption so as to promote public safety. According to the authorities, all technical regulations 
are aligned with international standards. Technical regulations form the basis for issuance of conformity certificates. Technical regulations, which are mandatory, are mainly applied to certain 
electrical products, chemical products, machinery, and agricultural products.”  
 Question No. 13: How are the domestic standards in Chinese Taipei regulated and implemented? 
 
Answer: 
Our national standards are developed in accordan ce with our Standards Act and the Regulations 
for the Establishment of National Standards and appr oved by the Ministry of Economic Affairs. The 
full texts of the Act and Regulations are available on the following websites:  
http://law.moj.gov.tw/Eng//LawClass/ LawContent.aspx?pcode=J0100044  
http://law.moj.gov.tw/Eng//LawCla ss/LawContent.aspx?pcode=J0100046   
 
Question No. 14:  What are the procedures involved in th e formulation of professional standards? 
Is it determined based on consensus and does it involve the national technical committee? 
 
Answer: 
In accordance with our Standards Act and the Regu lations Governing the Establishment of National 
Standards, the procedures of establishing national standards are as follows: 
 
(1) Submitting a proposal; 
(2) Drafting; 
(3) Soliciting comments;  
(4) Review; WT/TPR/M/302/Add.1 
 
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  (5) Final review; and 
(6) Approval and promulgation. 
 The standards authority has established the National Standards Technical Committees based on 
different categories of specialties. The terms of reference of each Technical Committee are as 
follows: 
 
(1) To prepare and review national standards proposals; 
(2) To review the application and interpretation of national standards; and 
(3) To review proposals of other issues. 
 
Members of each Technical Committee are experts from related organizations, institutions, 
schools, factories or other places. Our national standards - are developed by consensus through a transparent procedure. 
 
Question No. 15: How does the Government  determine that a product requires professional 
standards?  
 
Answer: 
Professional standards are developed and adopted by private sectors, whose level is different from 
that of national standards, and are not governed by public sectors.   
 
Question No. 16: How many professional standards have been enforced during the review 
period? 
 
Answer: 
Professional standards are developed and adopted by private sectors, whose level is different from 
that of  national standards, and are not governed by public sectors.   
 Question No. 17:  How many domestic standards are on voluntary basis? Please list those 
standards. 
 
Answer: 
In accordance with Article 4 of our Standards Act, national standards are implemented on a 
voluntary basis.  
 Page 53 Para. 3.90 
“Certificates of conformity for chemical products  are issued only by the BSMI; certificates for 
mechanical, electrical and electronic products and certificates of quality management may be issued by the BSMI or by BSMI-commissioned certification bodies (third-party certification agencies). Domestic non-profit institutions (e.g. government institutes, universities, colleges) with 
BSMI-recognized laboratories may apply to become third-party certification agencies; application is 
not open to foreign institutions. Product certification by foreign agencies may be recognized only through mutual recognition arrangements.” 
 
Question No. 18: What is the rationale behind the regulation that certificates of conformity for 
chemical products are solely issued by BSMI? 
 
Answer: 
Certification bodies (CBs) willing to conduct certification activities and issue certificates of conformity for chemical products, on behalf of BSMI, may apply to become the BSMI-
commissioned CBs by conforming to the requirements of our Regulations Governing Commission of 
Commodity Inspection Operations. Since there are no local CBs interested in becoming the BSMI-commissioned CBs in this field, certificates of conf ormity for chemical products are only issued by 
BSMI now.   
 Page 53 Para. 3.91 
“Product testing activities that lead to certification must be conducted in the laboratories 
recognized/designated by the BSMI. Laboratories  that apply for BSMI recognition must be 
accredited by the Taiwan Accreditation Foundation (TAF) prior to submitting their applications. Foreign laboratories may also apply for BSMI recognition. BSMI recognition is valid for three years, WT/TPR/M/302/Add.1 
 
- 83 - 
 
  renewable. The TAF has accredited 1,638 labo ratories; there are 262 conformity assessment 
bodies.”  
Question No. 19:  What are the criteria for foreign labo ratories to be recognized by BSMI?  
 
Answer: 
Regarding qualifications, conditions, application do cuments, and relevant requirements for foreign 
laboratories to be recognized by the BSMI, please refer to Regulations Governing Recognition of 
Designated Testing Laboratory for Commodity Inspection.   
(http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=J0100035 ) 
 
Question No. 20:  What are the criteria for foreign labo ratories to be accredited by TAF?  
 
Answer: 
TAF is a third-party accreditation body and has been  a signatory to MRA of ILAC and APLAC. As for 
the relevant requirements for foreign laboratories to be accredited, please refer to the official 
website of TAF. ( http://www.taftw.org.tw/dispPageB ox/TAFENHP.aspx?ddsPageID=TAFEN ) 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 3.1 Measures Directly Affecting Imports  
3.1.10 Sanitary and phytosanitary requirements  
Page 55 Para. 3.98  
“ C h i n e s e  T a i p e i  i s  a  m e m b e r  o f  t h e  W o r l d  O r g a n i z a t i o n  f o r  A n i m a l  H e a l t h  ( O I E ) ,  b u t  i s  n o t  a  member of the Codex Alimentarius Commission, or the International Plant Protection Convention 
(IPPC). The authorities note that they do take IPPC standards, guidelines, and recommendations 
into consideration. Chinese Taipei maintains bilateral arrangements such as consultations meetings on promoting mutual cooperation on SPS issues with Australia, Canada, China, the European 
Union, Japan, Thailand, the Netherlands, New Zealand, the Philippines, Viet Nam, and the 
United States. SPS measures are also covered in the free-trade arrangements with El Salvador; Guatemala; Honduras; New Zealand; Nicaragua; Panama; and Singapore.”   
Question No. 21: Chinese Taipei is not a member of CIC and IPPC. Could Chinese Taipei 
elaborate which international standards have been adopted as the basis for drafting national 
standards?  
 
Answer: 
To comply with our WTO obligations, we always refer to and consider related international 
standards, guidelines and suggestions when drafti ng our plant quarantine regulations, including 
the ISPM guidelines published by IPPC.  Also, we have adopted numerous international food  safety standards as our national standards. 
We establish our standards through a risk analysis process that takes the latest scientific research, 
our national dietary pattern, existing standards in Codex and developed countries into account, consistent with Codex principles. In this way, our food safety standards are harmonized with 
international standards to the greatest possible extent.   
 4 TRADE POLICIES BY SECTOR 
4.1 Agriculture, fisheries and forestry 
4.1.1 Agriculture 4.1.1.2 Agricultural policy objectives Page 85 Para. 4.7. 
“The transfer of land ownership is based on the pr operty right regulations set out in the Civil Code. 
In order to address fragmentation, the COA has promoted the policy of “Small Landlords, Large 
Tenants”, whereby the government encourages young professional tenant farmers or farmer 
groups to rent farms (from owners unable or disinclined to farm), through measures such as: 
interest-free loans for renting land, farming equi pment grants, platform for renting brokerage, 
low-interest (1%) business loans, and disaster relief assistance. The young farmers are 
encouraged to plant import substitution crops (including corn, non-genetically modified soybeans, 
pasture and forage corn, and other feed and forage), to expand the scale of farms. Technical training and mentorship programmes (such as case-by-case supply chain counselling) are provided to assist young farmers. According to the authorit ies, if young farmers choose not to plant import WT/TPR/M/302/Add.1 
 
- 84 - 
 
  substitution crops, they may still benefit from these support measures, apart from supply chain 
counselling. By the end of 2013, the average size of large tenant holdings was 8.4 hectares.”  Question No. 22 and 23:  Does the “small landlords, large tenants” policy have any positive 
effects on small farmers? If so, please elaborat e on how small farmers have benefitted from this 
policy. Has there been an increase of production in  the agricultural sector since the implementation 
of this policy?  
 
Answer: 
The policy of “small landlords, large tenants” has enlarged the planting scale of young farmers, so 
as to increase their earnings. Since the implementation of “small landlords, large tenants” policy in 
2009, our agricultural production have been increasing.   
 4 TRADE POLICIES BY SECTOR 
4.1 Agriculture, fisheries and forestry 
4.1.1 Agriculture 4.1.1.3 Border measures 
4.1.1.3.1 Tariffs 
Page 86 Para. 4.9. “Tariffs on some agricultural products remain high : 37 tariff lines have tariff rates over 
100%, of which 6 lines are ad valorem (other deer velvet - 500%, crude ground-nut (peanut) oil - 
338%, refined ground-nut (peanut) oil - 338%, pomelos - 184%, pineapples - 173%, and other 
coconuts - 120%). About 7.5% of tariff lines for agricultural products are subject to non-ad valorem rates, with a simple average AVE of 132.3%. The highest MFN tariffs (AVEs) apply to: 
rolled or flaked rice (1069.87%), areca (betel) nuts (822.08%), rice in the husk (800.71%), flours 
and meals of ground nuts (744.19%). The average applied MFN tariff for agricultural products (WTO definition), including ad valorem equivalents (AVEs), was 22.1% in 2013, unchanged from 
2009 (Table 3.3).” 
 Question No. 24 and 25:  When does Chinese Taipei plan to reduce the 37 tariffs lines on 
agricultural products that are still considerably high? Could Chinese Taipei provide information 
whether it intends to reduce the average applied MFN tariff for agricultural products? 
 Answer: 
We will further reduce the tariffs on agricultural products based on the outcomes of Doha negotiations. Since the Doha Development Round is still under negotiations, we have no plan to reduce the tariffs on agricultural products at this stage.   
 
4 TRADE POLICIES BY SECTOR 4.1 Agriculture, fisheries and forestry 4.1.1 Agriculture 
4.1.1.4 Domestic support measures 
4.1.1.4.1 Support levels  
Page 88 Para. 4.18 
The most recent notification of domestic  support from the authorities is for 2010.  Total 
domestic support for agriculture, including Green Box, and Amber Box (i.e., including de minimis 
levels), amounted to NT$51 billion in 2010 (Table 4.4). 
 Indonesia Question No. 26 and 27:  Have there been any changes in the amount of support 
given to the agriculture sector since 2010? Could Chinese Taipei provide information on its 
intention to submit a notification to the WTO on the domestic support in the agricultural sector for 
the period of 2011-2014?  
Answer: 
We have been collecting relevant data for our updated notifications on domestic support. The 
statistics after 2011 are not available yet. We have been collecting relevant data on domestic 
support for the preparation of submitting updated notifications. The document will be notified to 
the WTO as soon as possible once the data collection is completed.   
  
 WT/TPR/M/302/Add.1 
 
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  4 TRADE POLICIES BY SECTOR 
4.1 Agriculture, fisheries and forestry 4.1.1 Agriculture 4.1.1.3 Border measures 
4.1.1.3.2 Tariff quotas 
Page 89 Para. 4.10. “Tariff quotas (TQs) apply to 16 agricultural products: deer velvet, fresh pears (excluding 
European pears), bananas, red beans, liquid milk, peanuts, garlic bulbs, dried shiitake mushrooms, 
dried day lily, young coconut, betel nuts, pineapples, mangoes, shaddocks, dried longans and longan pulp, and rice (including rice products). The Bank of Taiwan (BOT) is entrusted by the 
Finance Ministry to administer  the allocation of TQs for these items; it allocates the 
quotas and issues certificates, which serve as import licences . The TQs for 15 agricultural 
products (except rice) may be allocated to any enterprise registered with the authorities as importer/exporter, including non-local enterprises. The in- and out-of-quota tariff rates on 
agricultural products, and the quota filling rate are listed in Table 3.7. There were no in-quota 
imports of banana, mango, and shaddocks during the review period; according to the authorities, this was because the products did not meet the SPS requirements at the border inspections.” 
 
Indonesia Question No. 28 and 29: What are the procedures administered by the Bank of 
Taiwan to issue import licenses on those 16 agricultural products? Are there any other competent 
authorities, other than the Bank of Taiwan, who are authorized to issue import licenses for those 
16 agricultural products? 
 Answer: 
The related procedures are addressed in “The Regulations of Tariff Quota.” Please refer to: http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0350053   
 
4 TRADE POLICIES BY SECTOR 
4.1 Agriculture, fisheries and forestry 4.1.1 Agriculture 4.1.1.4 Domestic support measures 
4.1.1.4.2 Selected support measures 
Page 91 Chart 4.3. “Note: Loans for accelerating rural construction include such items as: 
- loans in the agricultural food industry to provide guidance and assistance to management; 
- loans in the livestock and poultry indust ry for improving management efficiency; 
- loans to farmers to provide guidance, assistance, and management improvement; 
- preferential loans for businesses that move into the agricultural technology park; and 
- loans for agricultural production and marketing groups.”  Question No. 30 and 31:  Are these loans also available to foreign agriculture companies? If so, 
what are the required procedures for foreign companies to apply for a loan? 
 Answer: 
According to the “Regulations Governing Policy-Oriented Special Agricultural Loan”, foreign companies, which register more than NT$ 30 million for their working capital in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu and invest more than NT$ 80 million in 
the Pingtung Agricultural Biotechnology Park (P ABP), can apply for the Policy-Oriented Special 
Agricultural Loan for their businesses in PABP. The other agricultural loans are only granted to the domestic companies and farmers. The qualified fore ign companies can consult with the Agricultural 
Bank of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu or the Pingtung 
Agricultural Biotechnology Park Branch of Bank of the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu for the application of loans.   
 
4 TRADE POLICIES BY SECTOR 
4.1 Agriculture, fisheries and forestry 4.1.3 Forestry 
Page 95 Para. 4.53 
“Chinese Taipei has prohibited the logging of its natural forest since 1985. Most forest products 
are imported : average annual imports of forest products were around 6 million cubic meters 
between 2007 and 2011. Most imported wood products (106 of the 123 tariff lines) face zero 
tariffs, and the simple average tariff is 1.5%.” WT/TPR/M/302/Add.1 
 
- 86 - 
 
  Question No. 32:  Please elaborate on how Chinese Taipei regulates the import of forest products. 
 
Answer: 
Our regulations for the trade of forest products are made based on the Customs Import Tariff and 
Import and Export Commodity Classification published by the financial authority, as well as the 
CITIES rules and requirements.  
 
4 TRADE POLICIES BY SECTOR 
4.4 Services 4.4.3 Telecommunication and postal services 4.4.3.1 Telecommunications 
Page 108 Para. 4.120 
“Type I operators face price-cap regulations (Article 26 of the Telecommunications Act). Cross-subsidization is not allowed. Type II operators determine their own tariffs . The NCC adjusted 
the pricing mechanism a number of times during the review period; according to the authorities, 
this is to protect consumer rights and encourage the sound development of the telecommunications industry. For example, in 2011, the right to determine the pricing of a local to 
mobile call was shifted from the mobile operators to the fixed-network operators; according to the 
authorities, this was estimated to save consumers NT$3.3 billion in 2011. Since 2012, a uniform-rate formula has been applied to local and long-distance calls domestically: long-distance calls now cost NT$1.6 per three minutes, the same as local calls down from NT$5.7 in the past. In January 
2013, the NCC announced a new adjustment of mobile termination rates (MTRs) for four 
years(2013 to 2016). In February 2013, the NCC announced a new adjustment coefficient for wholesale prices for Type I telecom services of the SMP, running from 1 April 2013 to 31 March 
2017. According to the authorities, in the future, the NCC intends to push for further 
rationalization of telecom tariffs.”  
Indonesia Question No. 33: Please explain why tariffs for type II operators are determined by 
the company and not regulated by the NCC. 
 Answer: 
According to our Telecommunications Act, Type I telecommunications operators are facilities-based to provide telecommunications services. Since Type  I telecommunications operators provide public 
services with high capital, so the tariff should be regulated by NCC. On the other hand, Type II 
telecommunications operators provide value-added telecommunications services through the Type 
I network, so Type II telecommunications operat ors could enhance competitiveness by changing 
their tariff to cope with the challengin g telecom industry. Consequently, Type II 
telecommunications operators could determine the tariff by themselves.  
 WT/TPR/M/302/Add.1 
 
- 87 - 
 
  ARGENTINA 
 
1. Sección III. Políticas y Prácticas Comerciales por Medidas 
 
3.1.1 Medidas que afectan direct amente a las importaciones  
3.1.2 Procedimientos y requisitos aduaneros   
1. En el párrafo 3.3, el informe indica que las sucursales de empresas extranjeras que figuren en 
el registro de las autoridades podrán solicitar su inscripción como importadores o exportadores.  
 
Question No. 1: ¿Podría Taipei Chino explicar cuáles son los requisitos de inscripción para estas 
empresas?  
 
Answer: 
In accordance with the provisions of Article 371  of the Company Act, a foreign company may not 
transact business within our territory without obtaining a certificate of recognition from the 
government and completing the procedures for branch office registration. According to Article 9 of the Foreign Trade Act and Article 2 of the “Regulations Governing Registration of Exporters and 
Importers”, except where other prohibitions or rest rictions apply, a company or firm that engages 
in export/import business shall apply to the Bureau of Foreign Trade for registration as an exporter/importer. Therefore, a foreign company mu st obtain a “Certificate of Recognition” from 
the Department of Commerce, Ministry of Economic Affairs (MOEA). After obtaining the Certificate 
of Recognition from the government and completing the procedures for branch office registration, 
it shall then apply for registration as an exporter/importer.   
 
2. En el párrafo 3.9, el informe explica los beneficios que ofrece ser un Operador Económico 
Autorizado y que en 2014 se han otorgado la condición de OEA a 618 solicitantes.  
 
Question No. 2: ¿Podría Taipei Chino informar con mayor detalle cómo es posible obtener esta 
condición?  
 Answer: 
The qualifications for attaining our AEO certificates  are addressed in Article 6, 10, 13 and 16- 22 of 
the Regulations Governing the Certifications and Management of the Authorized Economic 
Operators. The Regulations (English version) please refer to http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0350061 .  
 
3.1.4.4 Exenciones y reducciones arancelarias 
 
3. En el párrafo 3.38 del informe se indica que el Mi nisterio de Hacienda está autorizado a ajustar 
temporalmente los derechos de aduana para hacer frente a una situación económica 
"extraordinaria" en el interior o en el extranjero, para ajustar la oferta de mercancías, o para 
establecer un "entorno operacional razonable" si n autorización previa del poder legislativo. Se 
permiten ajustes dentro del 50% del tipo de derecho, y pueden aplicarse durante un año como 
máximo. A diferencia de las modificaciones arancelarias, los ajustes arancelarios temporales 
pueden ser solicitados por las empresas o las asociaciones industriales. Las decisiones relativas al 
ajuste temporal deben ser aprobadas por el Yuan Ejecutivo.  
 
Question No. 3: ¿Podría Taipei Chino explicar si las empresas extranjeras pueden solicitar estos 
ajustes arancelarios y cuáles son los requerimientos para obtenerlos?  
 Answer: 
Foreign companies registered in the Separate Cu stoms Territory of Taiwan, Penghu, Kinmen and 
Matsu are able to submit their applications of tari ff adjustment to the Ministry of Finance without 
restrictions. 
 
3.1.3 Normas de Origen   
Question No. 4: ¿Podría Taipei Chino indicar si todas las disposiciones comerciales sobre normas 
de origen se encuentran disponibles en Internet? Si es así, ¿Se encuentran estas disposiciones en 
alguno de los idiomas oficiales de la OMC?   WT/TPR/M/302/Add.1 
 
- 88 - 
 
  Answer: 
The English version of regulations related to certificates of origin have been posted on the website 
of the Bureau of Foreign Trade: http://www.trade.gov.tw/englis h/Pages/List.aspx?nodeID=100  
 
 
 WT/TPR/M/302/Add.1 
 
- 89 - 
 
  MEXICO  
 
Párrafos 1.2 y 1.3  Question No. 1: Es clara la dependencia del Taipei Chino al comercio con China y a las 
exportaciones, en particular al sector electrónico. ¿Qué acciones está tomando para incrementar la 
productividad en otros sectores y para hacer frente a posibles desaceleraciones económicas de China?  
 
Answer: 
To improve productivity in other industries , we have a new industrial upgrading and 
transformation program that we drew from our successful experience in the electronics industry. 
We called this program “Four Orientations in Three Industries. The details of “Three industries, 
Four Reform” include the following aspects: “Ser vice-oriented” manufacturing turns manufacturing 
into a highly customized service, and additional revenue can then be generated or derived from 
the customized service providers. “High-tech” se rvices use ICT and other technology tools to 
improve the quality of service, reduce service cost s, or may create additional demand for services. 
Internationalized services are internationally co mpetitive and can achieve export performance and 
contribute substantially to our economy. “Specialty -oriented” traditional industries use technology, 
aesthetics, new materials, new business models and other innovative value-added elements of 
traditional industries to play with and enhanc e the added value of non-high-tech traditional 
industries. In case the possibility exists that ma inland China's economic growth might slow down, 
we actively negotiate trade agreements with other countries and promote free economic pilot 
zones to gain more trade competitiveness.  
Párrafos 1.4  
Question No. 2: ¿Qué acciones está planeando para transformar su economía a una orientada a la 
alta tecnología?  
 
Answer: 
The promotion practice is divided into two stages. At the first stage, from 2012 to 2015, highlight demonstrations industries will be selected, such as  machine tools, logistics, information services 
and fashion textiles; at the second stage, we aim to assist the most industries in structure 
transformation. We have counselled several compan ies who have done demonstrations to enhance 
their products’ added value and differentiation capacity.  
 
Párrafo 1.23  Question No. 3: ¿Cuando se prevé que entren en vigor los cambios en la Ley de las Inversiones 
de los Nacionales Extranjeros?  
 Answer: 
The draft partial amendment of “the Statute for Investment by Foreign Nationals” is currently 
under the examination of the Legislative Yuan. Wh ile having set this amendment as priority and 
pushing it forward, the Ministry of Economic Affair s, in respecting the Legislative Yuan’s power on 
the examination of this amendment, could hard ly estimate the exact time spot when the 
examining process will be completed and the bill will take effect.   
 Question No. 4: ¿Cual es el estado de su discusión?  
 
Answer: 
Since this amendment will loosen government’s supervision on foreign investment and simplify the application process, numerous foreign investors groups, associations and local business leaders 
express their welcome to this amendment. Moreover, relevant government agencies are 
coordinating to adjust their current practical measures for corresponding to the amendment.  
 
Párrafo 2.30  
Question No. 5: Podría dar mas detalles de los “distintos tipos de proyectos de asistencia 
comercial” a los PMAs señalados al final de este párrafo.  
 
Answer: 
To respond to the needs of developing and least-developed countries (LDCs) for sustainable development, we provide various development programmes to better enhance LDCs integration 
into the multilateral trading system including: (1) Contributions: we have made contribution to the WT/TPR/M/302/Add.1 
 
- 90 - 
 
  Doha Development Agenda Global Trust Fund (DDAGTF) and the Standards and Trade 
Development Facility (STDF). (2) “Duty-free, Qu ota free” scheme: we have granted duty-free 
access to items of LDC origin. The preference sche me covers nearly 98% of the total value of all 
products. Nearly 32% of LDCs products tariff lines are eligible to receive preferential treatment. 
(3) Technical assitance programmes: through th e TaiwanICDF, the executive aid arm of our 
development aid, we have worked with our foreign allies to increase their export volume by providing technical assistance in SPS. For ex ample, the papaya export promotion in Peten 
Guatemala, and the Banana black Sigatoka diseas e prevention and treatment project in St. Lucia 
are all good practices. The 3rd Global Review of Aid for Trade in 2011 even recognized the papaya 
export promotion project as one of the best practices of the year.  
 
Párrafo 2.45  
Question No. 6: ¿Podría señalar el periodo con el que se examinará y modificará la lista negativa 
de inversiones, así como las condiciones que determinen necesaria dicha revisión?  
 
Answer: 
According to the Paragraph 3 of Article 7 of “Statute for Investment by Foreign Nationals”, the 
Executive Yuan, under the authorization of the same statute, promulgated “Negative List for 
Investment by Overseas Chinese and Foreign Nation als” and review this list on a regular basis. 
Recently, the above list was amended in the ye ar of 2010, 2012 and 2013. These amendments 
deregulated a considerable amount of limitatio ns or restrictions to foreign investors.  
 
The liberalization and opening of relevant sectors for foreign investment has been conducted in full compliance with our WTO commitments. We will co ntinue to welcome all foreign investments 
which bring know-how and innovative technologies to help stimulating the growth of our economy 
and to improve the living standard of our society.  The Investment Commission of the Ministry of 
Economic Affairs (MOEA) is currently coordinating a general review of the existing restrictions on 
certain industrial sectors. Further deregulation will then be made public, as soon as this reviewing 
process is concluded.  Párrafo 3.26  
Question No. 7: ¿Existen planes para profundas modificaciones de los aranceles, en especial en el 
sector agrícola?  
 
Answer: 
In order to simplify our Customs tariffs, the Ministry of Finance consulted with other competent 
authorities about imposing ad valorem duty to replace alternate duty on certain agriculture 
products. 9 lines of agriculture and fishery products adopted alternate duty were put into the 
contents of our latest revised draft of Customs Import Tariff in July 2014.   
 We will further reduce the tariffs of agricultural products based on the outcomes of Doha 
negotiations.  
 Párrafo 3.38  
Podría establecer los criterios para determinar que existe una “situación económica 
extraordinaria”, “ajuste de la oferta de mercancías” y “entorno operacional razonable” en el ajuste temporal de los derechos de aduana.  
 
Question No. 8 and 9: ¿Los ajustes mencionados pueden llevar a incrementos y en su caso 
superar el nivel consolidado en OMC?  
 
Answer: 
Once the Ministry of Finance (MOF) receives an application for temporary adjustment of customs 
duties, it will submit the application to competent authorities to review if the application meets the 
requirements or circumstances under the Article 71  of the Customs Act. After the confirmation of 
the competent authorities’ review, the MOF will submit the application to the Customs Tariff 
Commission for further review. After the Commission’s verification, the MOF will notify the public 
in advance, and submit it to the Executive Yuan . With the Executive Yuan’s approval, the MOF will 
proclaim that the measure takes  effect.   
  
 WT/TPR/M/302/Add.1 
 
- 91 - 
 
  Párrafo 3.129  
Question No. 10: ¿Podría dar mas detalles de la justificación de la licencia de exportación al 
material para semiconductores?  
 
Answer: 
Prior to the exporting of semi-conductor wafer fabricating equipment, the exporter shall apply for a 
permit in advance. For equipment to be exported to mainland China, those making such 
investments, shall submit investment documents approved by the Investment Commission, MOEA. 
For controlled strategic high-tech commodities, in compliance with international agreements (e.g. 
WA、MTCR、AG ), the exporter must apply for an Export Permit.  
 
Párrafos 4.4 y 4.9  Question No. 11: Si Taipei Chino es deficitario en alimentos como se describe en el párrafo 4.4, 
¿Cuáles son las razones para imponer aranceles altos al sector agrícola como se describe en el 
párrafo 4.9?.   
Answer: 
There are only some agricultural products with high tariff rates imposed by us. Considering that 
those products are significantly important to farmers’ livings, the proper tariffs are therefore needed. As for those agricultural products, which are highly insufficient to meet the needs of 
domestic consumption, their tariffs are already rela tively low or even duty-free, such as wheat, 
corn and soybean etc.  
 
 WT/TPR/M/302/Add.1 
 
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  BRAZIL 
 
In paragraph 3.96 of the Secretariat Report, it is stated that Chinese Taipei considered that 26 out 
of 39 notified measures for which there was a relevant international standard conformed to the 
corresponding standard.  
 Question No. 1: Please indicate why the remaining 13 measures deviate from the corresponding 
international standards. What was the scientific basis for the deviation in those cases?  
 Answer: 
Since we acceded to the WTO, we have made every effort to harmonize our SPS measures to be 
consistent with international standards, and to co mply with our transparency obligations. We have 
verified that the 13 measures Brazil mentioned are in fact compliant with relevant international standards; errors in the notifications for these measures were caused by secretarial mistakes.   
 
In the same paragraph, it is informed that 45% of  regular SPS measures noti fied by Chinese Taipei 
were not subjected to prior public comment.  
 
Question No. 2: What was the rationale for considering that “a comment period was not 
applicable or practical” in those cases?  
 
Answer: 
We have always tried to provide an appropriate length of time for Members to comment on our 
SPS measures. If certain measures can facilitate trade or are consistent with international 
standards, we would shorten the comment period when appropriate. All our new and updated 
measures from this point on will  be given a comment period of 60 days whenever possible.   
 
Paragraph 3.98 of the Secretariat Report mentions that Chinese Taipei is a member of the World 
Organization for Animal Health (OIE), but is not a member of the Codex Alimentarius Commission or the International Plant Protection Convention  (IPPC). Notwithstanding this, according to the 
report, authorities from Chinese Taipei take IPPC standards, guidelines, and recommendations into 
consideration. One might infer from this paragraph that Chinese Taipei does not take into account 
Codex Alimentarius standards considering that it is not expressly referred to.   
Question No. 3:  Can you confirm that Chinese Taipei does not follow Codex Alimentarius 
Commission standards? If so, can you explain the rationale for that? 
 
Answer: 
We establish our food safety standards through a risk analysis process that takes the latest 
scientific research, our national dietary pattern , existing standards in Codex and developed 
countries into account, consistent with Codex principles. In this way, our food safety standards are 
harmonized with international standards to the greatest possible extent.   
 The Secretariat Report stresses that, although it boasts one of the largest GDPs on a PPP basis and 
is a major trading entity, Chinese Taipei possesses limited natural resources, relies heavily on 
imported food and has a trade deficit in food products. In addition, its agricultural sector accounts for less than 2% of GDP. However, the sector is a major recipient of government assistance and its 
average applied MFN tariff is far higher than that  of non-agricultural products. The report further 
notes that “non-ad valorem duties in the area tend to conceal relatively high ad valorem equivalents (AVEs).”   
Question No. 4:  Have any reforms been envisaged in or der to make trade-related agricultural 
sector measures more efficient and market based? If so, could you give some examples of 
measures that have planned or/and are in place? 
 
Answer: 
We have been reviewing and improving its trade related measures, with an aim at facilitating the 
trade and reducing costs of traders. For example,  the “Project of Custom-Port-Trade” has been 
implemented in 2013. This project is designed to combine the experience and strength from 
customs clearance, examination/certification and port affairs-related authorities and private sectors. Its goal is to promote a more efficient and facilitating environment of trade.  
 WT/TPR/M/302/Add.1 
 
- 93 - 
 
  BRAZIL (addtional questions) 
 
"Trade restrictions have been imposed by Chinese Taipei on imports of Brazil's beef products and pet food, including pet food not originating from ruminant material. Despite the fact that the OIE 
has assigned Brazil the status of country of insign ificant risk for BSE, the existing embargo on beef 
products from Brazil has not yet been lifted.  
Additional Question No. 1 and No. 2:  What are the measures that have been implemented to 
lift the ban on beef products from Brazil in accordance with the relevant decision from OIE? What 
is the timeframe for the full removal of that trade restriction?  
Answer: 
All countries to export meat and meat products to the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu are required to submit application for approval for market access. If 
Brazil plans to export beef products to the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu, we suggest Brazil follow our required procedures to submit the application.   
 
Additional Question No. 3: What is the scientific basis for the ban on imports of pet food 
containing ruminant material from Brazil, given that such a product would be consumed by dogs 
and cats and is partly made up of poultry origin material?"  
Answer: 
We have already completed the document review and on-site audit for the Brazilian manufacturing 
plant for dog and cat food intending to export its products into the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu. An audit repo rt remains to be finalized and we will notify 
Brazil of the outcome as soon as possible. Be sides, we recently amended the Quarantine 
Requirements for the Importation of Dog and Cat Food so that the Requirements are consistent 
with international standards. In accordance with the amended quarantine requirements, the 
ruminant materials originated from Brazil will be el igible to produce the dog and cat food exported 
from Brazil into the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.  
 
 WT/TPR/M/302/Add.1 
 
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  PHILIPPINES 
 
1) Report by the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, page 8, 
paragraph 3.9 
 
The Philippines notes with interest that two major industrial development initiatives were 
introduced in 2012. The first was the Implementati on Plan of the Four Transformations of the 
Three Industries while the second initiative enacted was the Innovation and Restoration Program 
for Traditional Industries.  
 Could the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu provide 
more information on the three industries referr ed to in the first initiative as well as non-
high-tech traditional industries referr ed to in the second initiative?  
 Answer: 
The details of “the Four Transformations of the Three Industries” include the following aspects. 
“Service-oriented” manufacturing turns manufacturi ng into a highly customized service. It can 
generate additional revenue and derive other se rvice providers.“High-tech” services use ICT and 
other technology tools to improve the quality of se rvice, to reduce service costs, and to create 
additional demand for services. Internationalized services are internationally competitive and can achieve export performance and contribute substa ntially to our economy. “Specialty-oriented” 
traditional industries use technology, aesthetics, new materials, new business models and other 
innovative elements to increase the value of traditional industries, to stand out through their 
characristics, and to enhance the added value of traditional industries.  
 
2) Report by the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, page8, 
paragraph 3.10 
 
The Report mentioned that the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
provides an investment environment with low taxation where the ratio of government tax 
revenues to GDP is less than 13% -- lower than most other economies in the Asia-Pacific region. Furthermore, the government reduced the income tax rate for profit-seeking enterprises from 25% 
to 17% as part of the package of policies to achi eve overall adjustment in response to the expiry 
of the SUI and to relieve the tax burden on enterprises.  
 Could the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu provide 
more information on the impact of this policy to the government’s revenue? What 
alternative streams of reve nue that the government had implemented or will be 
implementing? 
 
Answer:  
The tax incentives offered under the Statute for Upgrading Industries (hereinafter as SUI) were 
terminated on December 31, 2009.Then, the new Statute for Industrial Innovation retained only 
one tax incentive, a tax credit for innovative R&D. In line with this tax reform, the income tax rate 
for profit-seeking enterprises was reduced to a flat rate of 17% from 2010. The above tax reforms are expected to relieve problems such as the eros ion of the tax base, unfairness in the tax-burden, 
and create a competitive tax environment with a low tax burden. In addition, it can boost the 
development of the whole economy and industries  and increase employment opportunities. In 
regard to the concern that the abovementioned me asures might reduce national tax revenues, this 
gap should be filled through increased revenues resulting from boosted industrial investment, 
consumption and from terminated tax incentives under the SUI.  The Profit-Seeking Enterprise Income Tax revenues from 2010 to 2012 are as tabled below 
Unit: NT$ million 
Year 
Item 2010  2011  2012  
Profit-Seeking Enterprise Income 
Tax 285,701  367,186  367,744  
 
 WT/TPR/M/302/Add.1 
 
- 95 - 
 
  TURKEY 
 
THE SECRETARIAT REPORT  
2.1 Trade Policy Regime: Framework and Obje ctives, Introduction, pp. 24, para. 2. 
It is mentioned in the report that “Chinese Taipei's many science-based industrial parks, export-processing zones and free-trade zones provide favourable trade and investment opportunities. 
While Chinese Taipei frequently scores relatively well in international competitiveness surveys¹, its 
levels of inbound investment are not high, compared to other regional economies like the Republic of Korea, Singapore, Thailand, and Viet Nam. Chinese Taipei remains a moderate recipient of inward FDI in the east-Asian region with inflow s concentrated in manufacturing, finance, and 
insurance services, and averaging around only 1% of GDP. During the review period, the 
government continued to liberalize its regulations with respect to FDI and it is generally expected that investors from China will continue to stimulate investment. ” 
 
Could Separate Customs Territory of Taiwan, Penhgu, Kinmen, and Matsu (Chinese Taipei) kindly 
provide further information about how it liberalized its regulations with respect to FDI and why its 
inbound investment levels are lower than the other regional economies? 
 Answer: 
“The Negative List for Investment by Foreign Nationals” was amended in 2010, 2012 and 2013. 
These amendments deregulated a considerate amount of limitations or restrictions to foreign investors. In addition, in order to facilitate the current approval process for FDI, we have already 
submitted draft amendments of “the Statute for Investment by Foreign Nationals” which is under 
the examination of Legislative Yuan. After these amendments take effect, most of foreign investors 
only need to notify the Investment Commission as they implemented the investment, instead of 
filing an application for approval in advance.  
 
Under the trend of globalization, one of the important tasks for the government is to create a good investment environment. On one hand, enterprises could manage their global investment 
strategies in accordance with actual needs. On the other hand, the country could be integrated 
into the global trade system. Over the past five years, the inflow of FDI in the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu is more than the outflow and it typically reflects 
the trend. 
 
According to the statistics from Investment Commission of the Ministry of Economic Affairs (MOEA), the top three industries for attracting FD I to invest in Separate Customs Territory of 
Taiwan, Penghu, Kinmen, and Matsu are financial and insurance industry, electronic parts and 
components manufacturing and wholesale and retail trade. However, the development of these industries is going to mature, and the industries  and scales of FDI are faced to change. From 2009 
to 2013, the growth rate of approved projects fo r FDI in the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu is more than 10% per year. According to further analysis of these projects, most of these are related to investment of services which capital scale is rather small. 
Therefore, the amount of investment appears to be lower.  
 
2.5.2 Economic Power-up Plan, pg. 27 It is mentioned in the secretariat report that; 
 
2.24. Complementing the NDP, this plan contains policies aimed at: raising the added value of exports and developing exports to emerging ma rkets; strengthening the competitiveness of 
services exports, including improving the quality of tourism; and at the organizational level, 
strengthening the mission and functions of the trade-policy-making apparatus by raising the level and profile of the Committee of Global Economic  and Trade Strategy by placing it under the 
chairmanship of the premier and strengthening its role in the negotiation and conclusion of ECAs 
and other trade arrangements; and formulating a strategic plan for intellectual property to enable 
Chinese Taipei to become an Asian leader in IP creation, utilization, and protection. 
 
Could Chinese Taipei kindly elaborate on Economic Power-up Plan? Does it involve improving trade 
relations with the European markets including Turkey?   
 
 WT/TPR/M/302/Add.1 
 
- 96 - 
 
  Answer: 
One of the important focuses of the “Economic Power-up Plan” is taking action to join REI 
arrangements. This also includes strengthening our substantive bilateral economic and trade ties with the EU (including Turkey), with which we  are vigorously pushing to sign a Bilateral 
Investment Agreement (BIA) and Economic Cooperation Agreement (ECA). As for bilateral 
economic and trade ties between the Separate Cu stoms Territory of Taiwan, Penghu, Kinmen and 
Matsu and Turkey, we are looking forward to st rengthened exchanges between the two sides’ 
officials and private sectors. This would include exch anges of visits by official trade delegations and 
encouraging businesses on both sides to engage in investment and trade meetings in order to 
increase the cooperation opportunities for businesses in our two countries. In recent years, through Turkish successful economic reform, the economy has grown rapidly, and it has become a 
model for development in the region. We hope that in the future both sides will be able to 
strengthen our cooperation in all economic areas.  To improve bilateral investment and trade, We 
are willing to discuss various ways forward with Turkish government and business community. 
 
2.7 Foreign Investment Regime, pp.31, para. 2.42 It is mentioned in the report that “The government has long maintained a policy of attracting FDI 
as part of its growth strategy, although FDI infl ows have been subject to various restrictions. The 
main aim of investment policy was initially to attract export-oriented investment based on the competitiveness of Chinese Taipei's educated wo rkforce. More recently, the objective has been 
adjusted to focus on attracting FDI into technology-intensive areas and to promote technological 
spill-overs.” 
 Could Separate Customs Territory of Taiwan, Penhgu, Kinmen, and Matsu kindly provide more 
details about various restrictions that FDI inflows have been subject to ? 
 Answer : 
Foreign investors who may invest in Separate Cu stoms Territory of Taiwan, Penghu, Kinmen and 
Matsu shall comply with “the Statute for Investment by Foreign Nationals". According to the Paragraph 3 of Article 7 of the same Statute, th e Executive Yuan promulgated “Negative List for 
Investment by Overseas Chinese and Foreign Nation als” and review this list on a regular basis. 
Recently, the above list was amended in 2010, 2 012 and 2013. These amendments deregulated a 
considerate amount of limitations or restrictions to foreign investors.   
The liberalization and opening of relevant sectors for foreign investment has been conducted in full 
compliance with our WTO commitments. We will co ntinue to welcome all foreign investments 
which bring know-how and innovative technologies to help us stimulate the growth of our economy 
and to improve the living standard of our society.  The Investment Commission of the Ministry of 
Economic Affairs (MOEA) is currently coordinating a general review of the existing restrictions on 
certain industrial sectors. Further deregulation will then be made public, as soon as this reviewing 
process is concluded.  
Table 2.1 Table of Negative List For Inve stment By Overseas Chinese And Foreign 
Nationals 
It is shown in the table as following: 
Code No. Scope of 
Industry Sub-Item of 
Industry Description Competent 
Authorities Remarks 
49 Land 
Transportation 4931 
Motor bus transportation 
 
  4932 
Taxi 
transportation 4939 
Other bus 
transportation including city 
passenger bus 
 
services and 
highway 
passenger services  
 
 Tour bus 
services Ministry of 
Transportation  and 
Communication Not 
prohibited for 
overseas 
Chinese 
 Could Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu kindly provide information about the reasons of prohibition in land transportation except overseas Chinese? WT/TPR/M/302/Add.1 
 
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  Answer: 
According to Article 35 of our Highway Law, no n-citizens or non-local legal persons are banned 
from investing in commercial automobile businesses within the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu; however, thos e who are approved by the MOTC may apply to 
invest in the following businesses: car rental, pick up truck rental, automobile cargo transportation, 
automobile cargo transportation within designated  route(s), and container truck transportation.  
 
Our land transportation sectors (4931.4932, 4939) provide basic transport service with policy 
attribute. Therefore, we maintain restrictions on these sectors.  
 3.1.5.2 Fees and other charges, pg.47 
It is mentioned in the secretariat report that; 
 3.52. The Trade Promotion Service Fee is collected at  the border at the rate of 0.04% on the value 
of imports (and exports). The Fee finances the Trade Promotion Fund, managed by the Trade 
Promotion Fund Management Committee; about a third of the 21 members of the Committee are 
representatives of exporters/importers. The Trade Promotion Fund is used to cover administrative 
expenses related to trade promotion activities, such as organizing exhibitions and travel expenses. 
In 2012, the Fund collected NT$4,827 million at the border and spent NT$4,640 million on trade promotion events. 
 
It is understood that “Trade Promotion Service Fee” is collected at an ad valorem rate and not 
limited to the approximate cost of services rendered. Could Chinese Taipei demonstrate the consistency of this practice with GATT Article VIII.1? 
 
Answer: 
The purpose of collecting “The Trade Promotion Services Fee” on all imports/exports is neither for 
protecting the domestic industry nor for fiscal pu rpose. We strictly follow the principle of user 
pays. Therefore, the collection of the trade prom otion fee is not against the regulation of GATT 
Article V111.1. 
 
4.1.1.2 Agricultural Policy Objectives, pp.85, para. 4.6 
It is mentioned in the report that, “According to the COA, the policy objectives are: safeguarding 
food security, creating an ecological environmen t, improving farmers' welfare, constructing a 
culture system that replenishes agricultural re sources, and ensuring agriculture's sustainable 
development. The COA intends to develop scientifi c agriculture and promote agricultural exports, 
so as to build agriculture as one part of the global value chain and green industry.” 
 
Can Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu kindly provide further information about the structure of the culture system that it plans to construct in order to 
replenish agricultural resources? 
 Answer: 
To ensure food security, enhance food self-suffici ency, and inject new vitality into agriculture, our 
authority has introduced a new policy to reactivate th e idle farmlands. The priority of this policy is 
given to crops that can serve as substitute for impo rts, to organic produce, and to crops with local 
characteristics. Aging farmers who are unable or unwilling to keep working in their farms are 
e n c o u r a g e d  t o  l e a s e  o r  s e l l  t h e i r  l a n d s  t o  y o u n g  p e o p l e  w h o  i n t e n d  t o  e n g a g e  i n  f a r m i n g .  T h e  
young farmers will be provided with different kind s of support measures, such as assistance in 
getting lands, low-interest loans, technical trainings and marketing guidance etc.  
 
4.1.1.5.3 Vegetables, pp.92-93, para.4.43 It is mentioned in the report that “According to the authorities, no specific subsidy is given to vegetable farmers. Current policies focus on stab ilizing domestic supply, increasing farmers' 
income, and developing export potential throug h research, technical assistance, and training 
courses on product quality and safety certification systems.”  
Given that Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu is importing for 
domestic supply which means that vegetables production is inadequate for its domestic consumption (although Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu exports 
vegetables less than 5% of the production), ho w does Separate Customs Territory of Taiwan, 
Penghu, Kinmen, and Matsu plan to develop vegetables export? WT/TPR/M/302/Add.1 
 
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  Answer: 
In Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, the exports of vegetable are 
commercial behaviours and not planned or regulated by the government. Nevertheless, the authority will assist exporters in expending the gl obal markets of their agricultural products by 
adopting the related measures, such as participatin g in  overseas exhibitions, doing global image 
advertisings, and taking promotion activities, etc. The authority also established a technical group to hold workshops and trainings on vegetable cultivation, management and post-harvest, with the 
aim of improving vegetable qualities.  
 4.1.3 Forestry, pp.95, para. 4.54 It is mentioned in the report that “The Forestry Bureau under the COA regulates the development 
of forestry. The current forestry policy focuses on fostering the sustainability of the forestry 
industry, promoting production restructure, and ex tending the value chain of forestry production. 
Major policy tools include: encouraging the local governments to set up forestry production 
cooperatives to establish the supply chain through production to marketing of timber/bamboo 
products; and promoting research and development of new innovative product lines for manufacturers to use forestry products as raw ma terials. The authorities hope that, by improving 
the economic value of forestry, and encouraging the upgrading towards modern forestry 
enterprises, timber production will move from a primary industry to a higher quality secondary 
processing industry. The COA is also promoting forestry tourism and other tertiary industry, to improve the added value potential of forestry. 
 
Can Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu kindly provide further information about the way of restructuring forestry industry and how to promote it? 
 
As a second question, how does extending supply  chain from production to marketing, provide 
benefit to Chinese Taipei and for which sector s will it be benefici ary for Chinese Taipei? 
 
Finally, could Chinese Taipei kindly provide information about the importance of forestry for the nation’s economical situation?  
Answer: 
The measures we adopt to develop the forestry industry are as follows: 
1. To integrate forestry industry from upstream to downstream: 
The authority urges stakeholders in the timber/wood resource-intensive areas to set up the 
forestry production cooperatives, with the pu rpose of connecting producers, processors, and 
marketing service providers to form a supply ch ain. Meanwhile, the forestry industries are 
encouraged to join the Forest Stewardship Council (FSC) program and the certificate regime of 
origin for domestic timber/wood. 
2. To enhance the competitiveness of forest products: 
1) Establishing the certificate regime of origin for domestic timber/wood. 
2) Setting up the traceability system for forest products. 
3) Innovation of forest products. 4) Assisting in expanding domestic and global markets. 
3. To establish a platform for information- exchanging of domestic forestry products: 
The platform is set up for timber/bamboo producers, processors, and marketing service providers to exchange related information 
 
Our authority has been fostering the transition of tr aditional forestry industry to an industrialized 
and modern business model. By combining the func tions of production, living, ecology, culture, 
leisure and tourism, the value chain of forestry in dustry could be extended and the economic value 
would be increased. Meanwhile, the related business could also be beneficial. 
 1. Forests cover 58.53% of the land in our territory. As we have a fairly fragile geological structure 
and steep mountains, the unevenly distributed rainfall and intensified typhoons resulted from 
climate change, we often suffers from severe natu ral disasters. Therefore, for us, the homeland 
security has long been a top priority for our forestry policy. 
 
2. In economic aspect, the raw material source of wood processing in our industries has been 
highly depending on imports. The competitiveness of  related products is therefore relatively low. 
Furthermore, due to the global climate chan ge and increasing environmental awareness, 
countries have imposed stringent controls on exporting of timber. In addition, the initiatives on WT/TPR/M/302/Add.1 
 
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  sustainable use of certified timber and processed products are getting recognitions globally. The 
development of our timber-related industries will inevitably be affected. 
 3. Nevertheless, we have rich and high-quality bamboo resources. Since 2002, the authority has 
organized a special R&D team and actively promoted the innovative technologies for bamboo-
made products, including bamboo charcoal, bamboo crafts, and sophisticated compound bamboo products. The technologies have been applied in many fields such as textile, building materials, 
food, environmental improvement, health care an d electronic, etc. In 2012, the total value of 
bamboo products reached US$120 million.  
 THE GOVERNMENT REPORT 
 
4.2 Participation in the WTO, pg. 11, para. 4.9 
It is stated in the Government Report that, “The Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu is a net food importing member with a vulnerable agriculture sector and food 
security concerns. For this reason, agriculture has always been one of the most challenging areas for the Separate Customs Territory of Taiwan, Pe nghu, Kinmen and Matsu’s participation in the 
international trading system. As a member of the G-10, the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu considers that there is no “one size fits all” approach to the liberalization of agriculture trade, and that the multi-functional nature of the agriculture sector, and the non-trade concerns mentioned in the Ag reement on Agriculture, should be given full 
consideration. In view of our domestic agricultural needs, the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu supports the flex ibilities being extended to net food importing 
members in the three pillars of the DDA agriculture negotiations.” 
 
Given that the three pillars of the DDA agriculture negotiations are export competition, domestic support and market access, what kind of policies does Separate Customs Territory of Taiwan, 
Penghu, Kinmen, and Matsu plan to implement? 
 Answer: 
As the member of G-10 and the RAMs Group, we  have urged a balanced outcome in the three 
pillars of DDA agricultural negotiations. Meanwhile , the necessary flexibilities should be granted for 
Members, especially the RAMs, to ensure their f ood security, rural development and environmental 
protection. To be well-prepared for the outcomes of DDA negotiations and trends of trade 
liberalization, we have adopted the related measures as follows: 
 (1) The authority has implemented various kinds of policies such as adjustment of agricultural 
structure, establishment  of value-added agricultural models and encouragement of the 
consumption of domestic products, etc. In addition, it also assists exporters in exploring and expending the global markets of our agricultural products. 
 
(2) Meanwhile, the authority has been reviewing th e AMS-related supporting projects, with the 
aim of well preparation for the future regulations of domestic support agreed in DDA negotiations.  
 
4.3 Unilateral liberalization  
It is stated in the Government Report that, “4.19. In August 2013, the FEPZs kicked off the first 
implementation phase, with priorities given to th e following industries: …International health care: 
To provide foreign patients with health checks, cosmetic medicine and serious illness treatments, while promoting alliances with other industries, such as tourism...” 
 
1- Regarding the above mentioned paragraph of the report, what kind of institutions (hospital, 
universities, research institutions, etc.) will be operating in the FEPZs? 
 
Answer: 
In the Phase I of FEPZs Plan, we have set up international medical service centers in airports to 
provide medical consulting and hospital liaison services and has simplified entry procedures for 
foreign visitors. In this stage, medical services ar e provided by the Economy’s existing hospitals.  
 WT/TPR/M/302/Add.1 
 
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  The Plan’s Phase II will begin right after the Spec ial Act for FEPZs is enacted. The International 
Healthcare Industrial Park which will be set up in the FEPZs will integrate international medical care and biotech research institutions with biotechnology, pharmaceuticals, rehabilitation, health enhancement and other health-related industries. It may also cooperate with internationally well-
known medical institutions to upgrade the Economy’s medical quality and technological standards. 
The Park will also spur the development of peripheral health care industries including medical tourism. 
 
2- Could the Delegation kindly provide further information concerning the incentives that would 
be provided to those institutions? 
 
Answer: 
 
The incentives which FEPZs Plan provides to international medical institutions include: 
(1) Providing high-efficiency one-stop servic es to simplify administrative process. 
(2) Local companies that invest in FEPZs with dividends or earnings from their offshore 
operations will be exempt from business income tax. 
(3) In terms of personnel recruitment, no previous  2 year-work experience required for foreign 
professionals, and no business turnover requ irement for employers. Foreign professionals 
are allowed to work under landing visa, and only half of their income will be taxed for the first three years. Also, their income derived abroad is exempted from tax filing. 
(4) Goods, machinery and equipment imported by FEPZ Enterprises for use in their business 
operation are exempted from customs duty, business tax and commodity tax. 
(5) Bringing in top-notch foreign medical personnel, and allow them to serve as chairperson of 
the board of international medical institutions in FEPZs. 
 Note: The above tax incentives will be provided  after the Special Act for FEPZs is enacted .  
 WT/TPR/M/302/Add.1 
 
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  THE KINGDOM OF SAUDI ARABIA 
 
Q 1: We commend Chinese Taipei for its economic performance, during this review period. We are 
interested in particular in the unique policy initia ted by MOEA during the review period. Therefore, 
we would appreciate Chinese Taipei’s comments on the following: 
 1. Para. 4.83 (p.100) of the secretariat report, stated that the MOEA announced “Three 
industries, Four Reform” programme. Could Chinese Taipei share with us its experience regarding 
the details of such policy, i.e. its outcome and the assessment of such policy, if, any;  Answer:   
The details of “Three industries, Four Reform” in clude the following aspects. “Service-oriented” 
manufacturing turns manufacturing into a highly cu stomized service. It can generate additional 
revenue and derive other service providers. “Hig h-tech” services use ICT and other technology 
tools to improve the quality of service, to reducing  service costs, and to create additional demand 
for services. Internationalized services are inte rnationally competitive and can achieve export 
performance and contribute substantially to our economy. “Specialty-oriented” traditional 
industries use technology, aesthetics, new materi als, new business models and other innovative 
elements to increase the value of traditional industries, to stand out through their characteristics and to enhance the value of traditional industries. The promotion of the practice is divided into two 
stages. The first stage is to select the highlighted industries to demonstrate by 2015. The second 
stage is to expand to the promotion of whole indu strial restructuring. So far, several industries 
such as machine tools, logistics, information serv ices and fashion textiles, have been selected as 
demonstrations to enhance product added value and differentiation capacity through this policy. 
However, the overall effect to promote economic growth takes time to accumulate and will be 
more and more significant in the future.   
2. Could Chinese Taipei explain the so-called “Servicification” of manufacturing and how it 
could be achieved?   Answer:   
The Service-oriented manufacturing turns manufac turing into highly customized service with 
cross-industry integration, and additional revenue can then be generated or derived from the customized service providers. The manufacturer is no  longer just a single product provider, instead 
offering a range of services to meet customer needs. By utilizing service to highlight product 
differentiation, the manufacturer can create higher added value.  
Q 2:  In the secretariat report (para. 4.85) and government report (para. 4.18- 4.21), Chinese 
Taipei mentioned its unilateral liberalization, in particular the Free Economic Pilot Zones (FEPZs).  1. Could Chinese Taipei elaborate more on th e details of FEPZs’ enforcement, i.e. which 
manufacturing and service sectors are included in the (FEPZs)? 
 
Answer: 
With double-track implementation mechanism, th e FEPZs can be implemented in either physical 
mode or designated test-point mode. Service industries mainly promoted in the physical FEPZs including smart logistic, international health care and value-add agriculture. In addition, the 
manufacturing industries which can facilitate development of service industries, such as packaging, 
assembling, sorting, are also included in the phys ical FEPZs. Some service industrial activities 
which are not feasible for implementation in physical areas, such as education innovation and financial services then will be implemented in those designated test-pointed FEPZs.  
 
2. To what extent the FEPZs contribute to the overall economic growth, employment, and 
sustainable development? 
 
Answer: 
The Free Economic Pilot Zones (FEPZs) are zones for free economy, with trial and pioneer in 
nature.  
 For potential benefits, FEPZs are expected to expand gross output by US$1 billion and create 13,000 new jobs in 2014. Business revenue for Financial Services may increase $900 - 1400 
million annually, and new business models will be invented. WT/TPR/M/302/Add.1 
 
- 102 - 
 
  Through implementation of FEPZs Plan, an open, international, and high competitive business 
environment will be created, and high value-added economic activities will be promoted. Hopefully 
our economy will be restructured and sustainable.  
 
3. What are the major differences between the FEPZS and the already established export 
processing zones (EPZs) and science industrial parks (SIPs)? 
 
Answer: 
Comparing with the EPZs and SIPs, FEPZs enjoy higher level of liberalization. EPZs and SIPs target 
on manufacturing industries while FEPZs target on high value-added service industries with deregulation and institutional reform as major promoting measures in order to create a more 
favourable environment for business. 
 FEPZs adopt a number of liberalization measures to create business opportunities for both 
domestic and foreign FEPZ Enterprises. For example: 
 
(1) Foreign shipment owners export goods after st orage and simple processing in FEPZs, no 
business income tax will be levied. However, if goods are sold to domestic market, only 10% 
of the total revenue will enjoy a tax exemption. 
(2) FEPZ Enterprises, both domestic and foreign,  may fully utilize our sophisticated hi-tech and 
manufacturing capabilities and generate wider benefits by linking with nearby industrial 
clusters through the “shop onsite, factory offsite” outsourced processing business model. 
(3) The 24-hour express sea consignment handling services streamline customs clearance 
process, and help lower cost of FEPZ s Enterprises (foreign and domestic)   
 
4. How does FEPZs collaborate with the EPZs and SIPs?  
Answer: 
Through “shops onsite, factories offsite” business model, FEPZs can link with neighbouring EPZs 
and SIPs, and thus generate wider benefits.  WT/TPR/M/302/Add.1 
 
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  EU (follow-up and additional questions) 
 
3.1.9 Technical regulations and standards Page 53, paragraphs 3.87-3.92. 
 
Reference is made to the commodity inspection, certificates of conformity and testing requirements for products subject to technical regulations before they can be placed on the 
market. 
 Questions No. 11 and 12: Which measures, if any, is Chinese Taipei considering to adopt in 
order to reduce technical barriers arising from certification and testing requirements that are 
Chinese Taipei-specific (ie, not in line with international standards)? Has Chinese Taipei any plan 
to adopt additional international standards or be come a member of international standard setting 
bodies? 
 
Answer: Prior to adopting technical regulations which may have effects on trade of other Members, we 
publish a notice in a publication and notify othe r Members through the WTO Secretariat at an early 
appropriate stage allowing other Members to have reasonable time to review and make comments, in accordance with the relevant requirements stip ulated in Article 2.9 and Article 5.6 of the TBT 
Agreement. 
 
In accordance with the TBT Agreement and our regulations governing the establishment of our national standards (CNS), during the course of  drafting CNS, where relevant international 
standards and the international standards concerned exist or their completion is imminent, all or 
relevant parts of them shall be used as the basis of drafting our CNS standards.  
To promote internationalization of CNS, we actively harmonize our national standards with 
international standards. As of December 31, 2013, the overall harmonization rate of our national 
standards where corresponding international standards exist is 90.6%. We are not a member of any international standard setting bodies at the present stage. However, we eagerly hope to join 
to become a member of the international standard setting bodies and expect Members’ support.  
 follow-up to Questions No. 11 and 12: Chinese Taipei reports that the overall harmonisation 
rate of national standards with international standard is 90.6 % (31.12.2013). Could Chinese 
Taipei also report the harmonisation rates achieved in different product sectors?  
 
Answer: 
With regard to the harmonization rates achieved in  different product sectors, please refer to the 
table below:  
Domestic standards (CNS) and their harmoniz ation rate with international standards, 
end of 2013  
Area Number of CNS that 
have corresponding 
international 
standards Number of CNS 
harmonized with 
international 
standards Harmonization 
rate of CNS with 
international 
standards (%) 
Civil engineering and 
architecture 81 76 93.8 
Mechanical engineering 342 328 95.9 
Electrical engineering 537 405 75.4 
Electronic engineering 303 250 82.5 
Automotive and aerospace 
engineering 48 48 100.0 
Railway engineering 17 16 94.1 
Shipbuilding engineering 20 18 90.0 
Ferrous materials and 
metallurgy 169 159 94.1 
Non-ferrous materials and 
metallurgy 97 78 80.4 
Nuclear engineering 1 1 100 
Chemical industry 208 208 100 
Textile industry 99 96 97 WT/TPR/M/302/Add.1 
 
- 104 - 
 
  Area Number of CNS that 
have corresponding 
international 
standards Number of CNS 
harmonized with 
international 
standards Harmonization 
rate of CNS with 
international 
standards (%) 
Mining 61 49 80.3 
Agriculture 152 103 67.8 
Food 193 172 89.1 
Wood industry 23 23 100 
Pulp and paper industry 70 67 95.7 
Environmental management 44 44 100 
Ceramic industry 57 46 80.7 
Domestic wares 65 65 100 
Medical equipment and 
appliances 150 142 94.7 
Information and communication 741 740 99.9 
Industrial safety 38 35 92.1 
Quality control 51 48 94.1 
Physical distribution and 
packaging 31 31 100 
General and miscellaneous 113 113 100 
Total 3711 3361 90.6 
 
3.3.6.6 Enforcement of IPRs Page 81, paragraph 3.214/Table 3.25:  
The table 3.25 seems to indicate that customs au thorities of the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu carry out enforcement measures against commodities infringing trademarks (import/export) and copyrights (import), but not other IP rights. 
 
Questions No. 34 and 35: Could Chinese Taipei clarify whether customs authorities carry out 
enforcement measures against commodities infringing other IP rights than trademarks and 
copyrights? If this is not the case, could Chinese Taipei indicate what are the specific arguments 
against extending enforcement measures to other IP rights?  Answer: 
Besides commodities infringing trademarks and co pyrights, we also carry out border measures 
against imported commodities infringing patent rights.  
A patentee may request Customs to detain imported commodities that are suspected of infringing 
the patent rights by providing specific shipping information thereof together with a security amounting to the duty-paid price of the imported commodities.  
 
Follow-up to Questions 34 and 35: Is it understood correctly that Customs of Chinese Taipei 
may suspend ex officio goods suspected of infrin ging trademarks and copyright, whereas it may 
suspend goods suspected of infringing patents only upon a specific request of the patentee? Could 
Chinese Taipei further provide customs enforcement figures as regards all the IP rights (extending 
in this regard table 3.25, which only shows the customs enforcement figures as regards commodities infringing trademarks and/or copyright)?" 
 
Answer: 
Regarding Question 34, it is correct that our cu stoms may detain ex officio goods suspected of 
infringing trademarks and copyright, and may su spend suspicious patent-infringing goods only 
upon a request of the patentee. As for Question  35, the Regulation Governing Customs Detaining 
Goods Suspected of Patent Infringement took effe ct in March of this year, and our customs have 
not yet detained any goods suspected of infringing patent rights. Therefore, we do not have any 
relevant figures. The figures in question will be  updated by our customs following the occurrence 
of patent-infringing cases.  
4.1.3 Forestry (paragraphs 4.53-4.56 and table 3.4) : 
Questions: 
- Does Chinese Taipei also apply a log-export ban, e.g. for (round)wood from its plantation (non-
natural) forests? WT/TPR/M/302/Add.1 
 
- 105 - 
 
  Answer:  
My government does not have any ban on exports of timber/bamboo, including (round) wood from 
plantation (non-natural) forest. However, in acco rdance with the CITES Appendix, we apply certain 
regulations regarding the exports of timber.  Mean while, my government also strictly follows the 
suspension and quota released by the CITES Secretariat.  
 - Does Chinese Taipei envision any legislation or policy measures on combating illegal logging, 
within its own territory and/or in relation to imported wood and wood-based products?  
 Answer:  
For domestic logging, according to the regulations of Forestry Act, the activities of felling trees, 
cutting and marketing of timber need to acquire the permit issued by the competent authority.  
Violators will be fined NT$120,000 to 600,000.  Me anwhile, in order to combat the illegal logging, 
the competent authority has entrusted the relate d R&D organizations for designing the Forest 
Stewardship Council (FSC) program and certificate regime of origin of domestic timber/wood. In 
accordance with the CITES Appendix, we apply cert ain regulations regarding the imports of timber. 
 
- Does Chinese Taipei categorise bamboo as wood, even though botanically it is a grass? In any 
case, are bamboo-based materials and products categorised together with wood-based or forest-based products? 
 
Answer:  
In line with the definition of Forestry Act and ot her relevant regulations, the bamboo material and 
its processed products are categorized as forestry products. 
 WT/TPR/M/302/Add.1 
 
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  United States (additional questions)  
 
PART I: QUESTIONS ON THE SECRETARIAT REPORT (WT/TPR/S/302) 3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measures Directly Affecting Imports  
3.1.10 Sanitary and phytosanitary requirements  
Page 54, paragraph 3.97:  The Secretariat’s report notes that a “maximum residue level (MRL) 
of ractopamine in beef was adopted in September 2012”. Please explain why a MRL was established for only beef muscle cuts at that ti me and not for the full range of beef and pork 
products. Also, in 2007, Chinese Taipei notified th e WTO that it planned to establish an MRL for 
ractopamine in pork, but to date has not yet done  so. Please explain why this still has not been 
done.  
Answer:  We establish our SPS measures in accordance  with the results of our risk assessments, 
which is consistent with WTO/SPS Agreement and related regulations. Currently, SPS measures regarding ractopamine among WTO Members still vary. A number of members still ban meat with 
ractopamine residue.  
 Follow-Up Question No. 1 : Since the Codex has established a MRL for ractopamine in pork, and 
since Chinese Taipei has already conducted its risk assessment for ractopamine in pork, please 
explain whether Chinese Taipei will be establishing a MRL for ractopamine consistent with the 
obligations of the WTO SPS Agreement, including without undue delay.   
Answer: 
We establish our SPS measures in accordance with  the results of our risk assessments, which is 
consistent with WTO/SPS Agreement and related regulations.Currently, SPS measures regarding 
ractopamine among WTO Members still vary. A number of members still ban meat with 
ractopamine residue. 
  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, fisheries and forestry 
4.1.1 Agriculture  4.1.1.3 Border measures  
4.1.1.3.2 Tariff Quotas 
 Page 86, paragraph 4.11:  The Secretariat's report notes that Chinese Taipei's rice tariff quota is 
divided for the government and the private sector. Please explain whether Chinese Taipei 
publishes its rice quota fill rates by the governme nt and private sector on a regular basis. If so, 
where is this information contained? If not, plea se explain whether and when Chinese Taipei plans 
to publish this information.  
Answer: Every March, we submit the notifications of TRQ implementation in the previous year to 
the WTO. Those notifications have included the in formation related to the private and government 
quota of rice.  
 
Follow-Up Question No. 2 : In its answer, Chinese Taipei noted that it provides WTO notifications 
every year related to government and private purchases of rice. However, the notifications do not 
specify the volumes imported by the government and private separately. Please clarify whether 
Chinese Taipei publishes this information on a regular basis and, if so, where this information is contained.   
Answer: 
Every March, we submit the notifications of TRQ im plementation in the previous year to the WTO. 
Those notifications have included the information related to the private and government quota of 
rice. However, in line with the Article XVII of the GATT 1994 which contains the obligations of 
State Trading Enterprises (STEs) notifications, ev ery two years, we have notified the volume of 
rice imported by our government to WTO’s Working Party on STEs. 
 
For government tariff quotas imported by the Agri cultural and Food Agency, the United States has 
seen instances where tenders have failed because the bids from suppliers breached a government-set ceiling price. Please explain how the ceiling price is set, how often it is updated, and how the 
ceiling price is communicated to interested suppliers.  WT/TPR/M/302/Add.1 
 
- 107 - 
 
  Answer:  Our ceiling price of rice procurement is calculated as the sum of rice cost, which is 
surveyed from exporters and other resources befo re every tender, adding freight and insurance 
premium, charges at imported port, and other domestic fees.  
The ceiling price will be reviewed and decided before each tender and be announced to the public if 
the tender is awarded.   
Follow-Up Question No. 3 : Please explain why the ceiling price for rice tenders is not announced 
until after the tender is awarded. Also, in the interest of increasing transparency, would Chinese 
Taipei consider announcing the ceiling price to the public in instances where the tender has failed? In instances where the tender has failed, will Chin ese Taipei also provide the data sources and any 
additional details explaining how the ceiling price was calculated?  
 Answer: 
1. According to our Government Procurement Act, the ceiling price should not be announced until 
the tender has been awarded. 
2. If a tender has failed, its ceiling price will be re viewed and then adjusted for the re-tender.  In 
order to prevent the re-tender from being affect ed, the ceiling price of the failed tender would 
not be announced. WT/TPR/M/302/Add.1 
 
- 108 - 
 
  Hong Kong, China (follow-up question)  
 
With regard to Chinese Taipei’s response to Question 7 raised by Hong Kong, China, we would like to pose a follow-up question: 
 
 What is the state of play of the preparation of  the Negative List for Investment by Overseas 
Chinese and Foreign Nationals, and how will fu ture reduction of the list be promulgated or 
publicized? 
 Answer:  
According to Paragraph 3 of Article 7 of “Statu te for Investment by Foreign Nationals,” the 
Executive Yuan, under the authorization of the sa me statute, promulgated the “Negative List for 
Investment by Overseas Chinese and Foreign Nation als” and reviews this list on a regular basis. 
Recently, the above list was amended in the years 2010, 2012 and 2013. These amendments 
deregulated a considerate number of limitations or restrictions to foreign investors. The 
Investment Commission of the Ministry of Economic Affairs (MOEA) is currently coordinating a general review of the existing restrictions on ce rtain industrial sectors. Further deregulation will 
then be made public, as soon as this reviewing process is concluded. WT/TPR/M/302/Add.1 
 
- 109 - 
 
  China (follow-up questions)  
 
Questions based on Report by the Secretariat (WT/TPR/S/302)  
2.35…. limits imposed on the amount that Chinese institutions are able to own in local banks are 
likely to be raised gradually…  
Question 1:  
What restrictions does Chinese Taipei impose on the number and scale of financial institutions with 
independent legal person status set up there by Mainland China’s financial institutions? What is the current state of ownership for Mainland China’s financial institutions in the local banks of Chinese 
Taipei? Are there any specific plans or timetables for alleviating the limits? 
 Answer:  
The “Act Governing Relations between the People of  the Taiwan Area and the Mainland Area” is a 
special law to regulate the activities between us and Mainland China. The FSC, authorized by the 
Act, has promulgated the “Regulations Governing the Banking Activities and the Establishments 
and the Investment by Financial Institutions between the Taiwan Area and the Mainland Area,” 
"Regulations Governing Approval and Management of Securities and Futures Transactions and Investment Between the Taiwan Area and the Ma inland Area" and the “Regulations Governing 
Permission of Insurance Business Transactions an d Investment Between the Taiwan Area and the 
Mainland Area.” The FSC will continually review the development of the cross-strait financial 
business and adjust business activities of Mainland  China’s banks. Besides, the “Cross-Strait Trade 
in Services Agreement” was signed on 21 June 2013 to further facilitate bilateral financial services 
trade.  
 3.116 Privatization of government-owned enterprises began in 1992; however, the privatization 
schedule is suspended or under re-evaluation. In the context of last TPR, the authorities stated 
that privatization of government-owned enterprises remains at the top of the policy priorities.  Question 2:  
What is the current objective of privatization of government-owned enterprises? Are there any 
restrictions on the participation of foreign and Mainland China’s investments?  
Answer: 
According to Article 1 of the Statute of Privatizat ion of Government-Owned Enterprises, the current 
objective of privatization of government-owned en terprises is to exert the market mechanism, and 
to enhance the operational efficiency of enterprises. 
 Foreign investors participating in the privatizatio n of government-owned enterprises shall comply 
with “Statute for Investment by Foreign Nationals” and “The Negative List for Investment by 
Overseas Chinese and Foreign Nationals.” Investors from Mainland China shall be governed by 
“Regulations Governing the Permission of Investment by Nationals in Mainland Area” and “The Positive List for Investment by Nationals in Mainland Area”.  
 
3.3.5 Competition Policy and regulatory issues  
Question 3:  
According to the report, the FTA was amended tw ice, in 2010 and 2011 respectively. It seems the 
revisions are quite frequent within a short period of time. Could Chinese Taipei explain the reason, 
and background for the two amendments? Could Chinese Taipei further elaborate on the legal 
amended terms? Is there any revision on the procedur al rules, such as time limit, burden of proof, 
etc? A comparison table for provisions before and after amendments will be highly appreciated.  
 
Answer : 
A. 2010 amendment and 2011 amendment to the FTA were proposed by members of the 
Legislative Yuan (Congress) in order to addr ess specific issues of concern. The 2010 
amendment clarified that any endorser that prov ides testimonials to mislead the public may 
be jointly and severally liable with the advertiser concerned. The main changes in the 2011 amendment include the introduction of a leni ency program and the increase of maximum 
administrative fines for serious violations related to abuse of dominance and concerned 
actions. There is no revision on the procedural rules. WT/TPR/M/302/Add.1 
 
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  B. The comparison tables for the background, reasons and provisions about amendments are 
available on FTC’s website: 2010 amendment http://www.ftc.gov.tw/upload/ 6ca1f953-5502-4ecf-97ce-05fe4f91643f.doc  
(ChineseVersion only) 
2011 amendment 
http://www.ftc.gov.tw/upl oad/e54bb4e5-d79b-472e- a714-8171dfc9d17e.doc 
(ChineseVersion only) 
 
Question 4:  
The Report states that the major change of the FTA is the introduction of leniency programme.  
What pre-conditions should be met by a foreign as well as a Mainland China’s investor before their 
application for leniency programme?  
 Answer: 
Within FTC’s jurisdiction, there is no difference in the criteria of leniency application for foreign and domestic companies involved in concerted action cases.   Please refer to “Regulations on Immunity and Reduction of Fines in Illegal Concerted Action 
Cases”, which is available on FTC’s website:  
http://www.ftc.gov.tw/internet/english/ doc/docDetail.aspx ?uid=1302&docid=12223 
(EnglishVersion) http://www.ftc.gov.tw/internet/main/doc /docDetail.aspx?uid=1155&docid=12145 
(ChineseVersion) 
 Question 5:  
How does FTC deal with undertakings failing to notify their concentrations against the 
requirements of the FTA, and are there any sanctions applied in those cases? 
 
Answer: 
Paragraph 1, Article 13 of the FTA provides as follows: 
Where any enterprises fail to file an application for any merger that requires approval, or proceed with the merger despite not receiving approval, the central competent authority may prohibit the 
merger and set a period for such enterprise(s) to split, to dispose of all or a part of the shares, to 
transfer a part of the operations, or to remove certain persons from positions, or make any other necessary dispositions. 
 
Paragraph 1, Article 40 of the FTA provides as follows:  Where any enterprise(s) proceeds with a merger in violation of Paragraph 1 or 3 of Article 11 
herein, or proceeds with a merger despite that the central competent authority decides upon the 
filing to prohibit such merger, or fails to pe rform the undertakings required as pursuant to 
Paragraph 2 of Article 12, in addition to the dispos ition pursuant to the provisions of Article 13, an 
administrative fine of not less than one hundred th ousand no r more than fifty million NTD shall be 
assessed upon such enterprise(s). 
 Question 6: 
As stated in the report, the FTA regulates not only monopolistic actions, mergers, and concerted actions, but also unfair competition. Are there any rules regarding the concurrent liabilities? Will the procedural rules for investigations vary in dealing with different types of actions? Please 
elaborate, if any?  
 Answer: 
Administrative Penalty Act, in principle, is binding on every administrative body. The chapter 3 
stipulates joint violation of laws and concurrent penalty. The relevant information is available 
below. http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=A0030210 
Article 27 of the FTA, which prescribes procedural  rules, is applicable to all different types of 
competition law violations.  
Question 7: 
How does Chinese Taipei ensure that merger control is applied solely on competition grounds? 
Does Chinese Taipei envisage improved transpar ency in its enforcement actions e.g. a higher 
frequency of publication of decisions, such as starting to publish the notifications submitted by 
economic operators of mergers submitted to the competition authority? WT/TPR/M/302/Add.1 
 
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  Answe r: 
Paragraph 1, Article 12 states the central competent authority may approve an application for 
merger filed pursuant to the preceding article if the overall economic benefit of the merger outweighs the disadvantages resulted from compet ition restraint. Regarding the anti-competitive 
effect and overall economic benefit, the FTC issued “Guidelines on Handling Merger Filings”, and it 
is available in the following link. http://www.ftc.gov.tw/internet/main/doc/docDeta il.aspx?uid=161&docid= 217( Chinese Version ) 
http://www.ftc.gov.tw/internet/english/doc/docDet ail.aspx?uid=744& docid=2719(English Version) 
 The decisions, such as dispositions related to the FTA’s violations, made by the FTC are open to public on the website unless its decision is cla ssified confidential under relevant rules.   
 
Question 8:  
Could the FTC provide typical cases of law enforcement against unfair competition involving the 
abuse of patent rights exclusion, and monopoly restricting competition? And please provide more 
information on the protection and law enforcement of substantive IPR by FTC.  
Answer: 
A. As for the cases relating to abuse of patent rights, please find more information on APEC 
Competition Law and Policy Database.  The link is http://www.apeccp.o rg.tw/doc/Taipei.html#Case. 
B. The FTC issues two guidelines related to the intellectual propriety rights: 
a. Guidelines on Technology Licensing Arrangements. 
http://www.ftc.gov.tw/internet/english/ doc/docDetail.aspx ?uid=746&docid=10254 
(English Version) 
http://www.ftc.gov.tw/internet/main/doc/doc Detail.aspx?uid=163& docid=227 (Chinese 
Version) 
b. Guidelines on the Reviewing of Cases Involv ing Enterprises Issuing Warning Letters for 
Infringement on Copyright, Trademark, and Patent Rights. http://www.ftc.gov.tw/internet/english/ doc/docDetail.aspx ?uid=746&docid=2715 
(EnglishVersion) 
http://www.ftc.gov.tw/internet/main/doc /docDetail.aspx?ui d=163&docid=224 
(ChineseVersion) 
 
4.99. Currently there are five non-local bank subs idiaries operating in the market, and there are 
no equity ownership limits for non-local financial institutions in local banks.. Non-local banks must establish a commercial presence to provide services in the territory. 
 
Question 9: 
Currently, equity ownership limits still exist for the Mainland China’s financial institutions investing in local banks. Are Mainland China’s financial institutions included in the non-local financial 
institutions mentioned above? If so, please identify the specific time when equity ownership limits 
will be relaxed for Mainland China’s financial institutions investing in any unit bank in Chinese Taipei. 
 
Answer: 
Considering mainland banks’ market access to here, based on the “Cross-Strait Trade in Services 
Agreement” signed on 21 June 2013, the FSC has accordingly agreed to repeal the former 
restriction and raised the cap on the maximum equity stake that a Mainland China’s bank may acquire in a bank here. Right now, there is no Mainland China’s bank with equity investment in a local bank. In the future, the FSC and the CBRC will continue to negotiate the financial affairs and 
gradually adjust relevant measures. 
 Question 10:  
Do Mainland China’s banks need to first establish representative offices and to operate locally for a 
full year before qualifying for openning branches in Chinese Taipei? Does this policy apply to all non-local banks? 
 
Answer: 
According to the commitments of financial services  industry covered under the Early Harvest list of 
the Cross-Strait Economic Cooperation Framework Agreement (ECFA), a Mainland China bank may 
apply to establish a branch here after it has been permitted to establish a representative office for WT/TPR/M/302/Add.1 
 
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  one year. The above agreement is not applicable to foreign banks. However, most foreign banks 
still set up representative offices to better understand the financial regulations and business environment here before establishing branches.  
Question 11:  
Currently, Chinese Taipei has not granted OBU and bond underwriting qualifications to any of 
Mainland China’s banks, and imposes restrictions only on Mainland China’s banks for funds 
deposit, opening of overseas deposit account an d capital transfer by their customers. Does 
Chinese Taipei provide the same treatment to banks from all WTO members that operate in Chinese Taipei?  
Answer: 
1.According to the “Cross-Strait Service Trade Agreement” signed on 21 June 2013, the FSC has 
agreed to allow Mainland China’s banks to establish additional branches, including offshore 
banking units (OBUs) here.  
2.According to the “Regulations Governing the Ba nking Activities and the Establishments and the 
Investment by Financial Institutions Between the Taiwan Area and the Mainland Area,” the 
business a Mainland China’s bank may conduct shall be approved by the FSC. 
3.Considering the business of funds deposit, op ening of overseas deposit accounts and capital 
transfer by customers, all banks operating in th e Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu must comply with the laws  and regulations of the FSC and the CBC. 
 
4.103. The authorities consider that the domestic market has too many financial institutions relative to the size of the economy, resulting in fierce competition in the banking sector. 
 
Question 12:  
How will Chinese Taipei continue to open up its financial markets? And what measures have 
already been taken or planned to be taken? 
 Answer: 
The financial market here is already comparatively open and liberal. Foreign banks can conduct 
universal business in the same way as local banks. Our supervision of foreign banks meets the 
requirement of WTO national treatment. We hope more countries can participate in its financial markets and promote the development of financial in stitutions under the principle of liberalization 
and internationalization. 
 Sound development of the financial sector is key to sustainable economic development. To 
continue liberalizing the financial services and ensure sound management of financial institutions, 
the FSC will actively promote financial innovation and create a forward-looking, robust financial 
system. During the course of this effort, the FSC will also pay due attention to supervisory concerns, such as legal compliance, self-regulation, and risk management. 
 
4.105. The blanket deposit insurance mechanism, in response to the 2008 global financial crisis, was terminated in 2010. The authorities consider  that the scheme successfully restored local 
market confidence during 2008-10. 
 Question 13: 
Please give us an idea about the main conten ts of the deposit insurance mechanism and the 
effects if its implementation .Does it cover non-local banks, such as the branches opened by Mainland China’s financial institutions in Chinese Taipei?  
Answer: 
1. The Contents of the Deposit Insurance Mechanism  
The public policy objectives of Central Deposit Insurance Corporation (CDIC) specified in the 
Deposit Insurance Act are to protect the interests of depositors of financial institutions, 
maintain the order of the credit system, and promote the sound development of the financial industry. With shouldering the policy mission to protect the rights and interests of depositors 
and playing a role as a risk minimizer, the CDIC’s key mandates are to manage deposit 
insurance business, strengthen deposit insurance risk control, conduct special inspections on 
the insured financial institutions, and deal with problem financial institutions exiting smoothly from the market. 
 WT/TPR/M/302/Add.1 
 
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  2. The Effects of Implementation of the Deposit Insurance Mechanism 
(1) Currently the deposit insurance coverage limit  is of NT$3 million. The coverage limit is the 
maximum amount of principal and accrued interest of eligible deposits such as checking deposits, demand deposits, time deposits and others approved as eligible deposits held in local 
currency and foreign currency. However, the de posits received by the offshore banking 
branches and overseas branches of insured institutions are excluded.  The ratio of fully covered deposit accounts to the total number of deposit accounts reached to 
98.4%, which shows that the NT$3 million deposit insurance coverage limit has protected the 
majority of small depositors and resulted in in creased confidence of depositors in financial 
institutions. 
(2) The membership of deposit insurance is mandatory application, which means any newly-
established financial institution should apply to the CDIC to become insured institutions after 
being reviewed and approved by the CDIC. As of the end of August 2014, there were a total of 
394 insured institutions, including three branches of Mainland China’s banks. 
 
4.115. According to the authorities, the FSC has taken measures to further ease trade in financial services, based on bilateral negotiations. 
 
Question 14:  
What specific measures have been taken by Chinese Taipei in the area of promoting the cross-
strait trade in financial services? Are there any preferred opinions, arrangements or plans for the 
development of cross-strait trade in financial services?  
 Answer : 
1.The financial services are covered under the “Cro ss-Strait Trade in Services Agreement” signed 
on 21 June 2013. The Agreement is now under legislative review before taking effect. The FSC will manage to cooperate with the other compet ent authorities to facilitate the legislative 
approval. 
 2.The FSC and its counterparts in Mainland China ha ve a good relationship with an established the 
Cross-Strait Supervisory Cooperation Platform. In the future, the FSC and its counterparts will 
continue to negotiate the financial affairs and to facilitate the cross-strait financial development. 
 Questions based on Report by Chinese Taipei (WT/TPR/G/302) 
 
Page 14, Para 2.34 With respect to the ECFA, the report mentioned th at the Trade in Services Agreement was signed 
in June 2013 and is currently pending legislative consideration. 
 Question 15: 
Could Chinese Taipei clarify where the priority poin ts lie during the legislative consideration of the 
Trade in Service Agreement? Is it about the meas ures of opening Chinese Taipei’s service market 
or something else? When is the legislative consideration expected to complete? Will such legislative consideration result in any modification  of the current text of the Agreement by Chinese 
Taipei?  
 Answer: 
The scope of the legislative review of the Tr ade in Services Agreement includes the main 
agreement and its annexes.  The latter, which consist of market access commitments and definitions of applicable service suppliers, seem to  draw more attention. For the time being, it is 
difficult to predict when the legislative review will be completed or its result. 
 
4.18. For the period under review, the focus of unilateral liberalization efforts has been centered on the establishment of “Free Economic Pilot Zo nes” (FEPZs). Initiated in 2013, this project 
involves substantial relaxation of market access and other trade-related regulations in certain 
designated pilot zones, along with promoting cert ain high-end services such as smart logistics, 
international health care, value-added agriculture, financial services, and education innovation as 
focal industries in the zones during the project’s initial phase. 
 WT/TPR/M/302/Add.1 
 
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  Question 16: 
Could Chinese Taipei elaborate on the recent specific measure to promote Free Economic Pilot 
Zones” (FEPZs), including site selection of FEPZs and concrete policy thinking on relaxing market access control of financial services and “deregulation ”. 
 
Answer: 
With double-track implementation mechanism, th e FEPZs can be implemented in either physical 
mode or designated test-point mode. Since the 7 existing Free Trade Zones, which have pushed 
ahead liberalization for a decade, and the Pingtung Agricultural Biotechnology Park are very well-developed, we have selected them as the physical  FEPZs for implementation in the Plan’s initial 
phase. Some innovative activities such as financial services and education innovation which are 
not restricted within the Physical FEPZs will be implemented across the Economy through 
deregulation and institutional reform under designated test-point mode.  
1. In the early phase, we are most interested in applying the FEPZ deregulatory measures to 
banks' offshore banking units (OBUs) and securities firms' offshore securities units (OSUs). There is no need for these entities to have a physical presence in an FEPZ; instead, the FEPZ 
deregulatory measures apply to OBUs and OSUs no  matter where they are located, and the result 
is that these entities are now allowed to provid e a much broader range of products and services 
than before. Hopefully this approach will expand market size so that we can retain more business activity and human talent here. 
 
2. In principle, there are no restrictions on the range of products that OBUs can sell to non-residents, and restrictions on OSUs have been greatly reduced. For designated forex banking units 
(DBUs) and domestic securities units (DSUs), restrictions will be gradually phased out, with 
distinctions made between what they are allowed to sell to professional and non-professional investors. 
 
3. The following deregulatory measures have already been taken:  (1) OBUs are allowed the following, subject to negative-list restrictions: With the  exception of NT dollar products and complex credit derivatives, which cannot be sold to 
 offshore individuals, OBUs are in principle not subject to any other restrictions. Also, they no 
 longer need to make any distinction between professional and non-professional customers,  and asset thresholds have been eliminated. 
 (2) A securities firm is now allowed to establish an OSU: A qualified securities firm is 
 allowed to establish an OSU to conduct business involving foreign-denominated securities,  derivatives, trust services, and custodian services. 
 (3) DBUs and DSUs are allowed to conduct the following lines of business: 
  a. Business involving RMB derivatives.   b. Transactions involving unlisted foreign bonds denominated in foreign currencies. 
  c. Brokering of transactions involving foreign bonds. 
   d. Brokering of transactions in more types of foreign bonds, and for a wider range 
   of customers. 
 (4) We are encouraging insurers to invest in land in the FEPZs: Legal requirements 
 regarding the timetable for development of undev eloped land do not apply to an insurer that 
 buys land in an FEPZ, nor is such an in surer subject to the requirement that a party 
 intending to buy undeveloped land must obtain an "intent to lease" statement prior to the 
 purchase. These deregulatory measures are designed to afford insurers greater flexibility in 
 their investments, make them more willing to  invest in FEPZ land, provide them another 
 outlet for the investment of enterprise funds, and help them achieve better capital  efficiency. 
 
4.21. In addition, to facilitate the FDI application process, draft amendments to The Statute for Investment by Foreign Nationals were offered in 2012 and remain under legislative consideration. 
After these amendments take effect, most foreign investors will only need to notify the Investment 
Commission when they implement the investment, instead of filing an application to obtain approval in advance. However, official approval  before investment is still required under some 
exceptional circumstances. It is expected that ar ound 80% of FDI projects will benefit from this 
new policy.  WT/TPR/M/302/Add.1 
 
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  Question 17: 
Could Chinese Taipei further elaborate the draft amendments and the expected timetable for these 
amendments? What are the scenarios for exceptiona l approval? Please elaborate on the specific 
condition of “under some exceptional circumstances”. 
 
Answer: 
In order to facilitate the current approval process for FDI, the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu has already su bmitted draft amendments of “the Statute for 
Investment by Foreign Nationals” and “the Statute for Investment by Overseas Chinese” in 2012. Both of Statutes are currently on the examination procedure of Legislative Yuan. While setting this 
bill as priority and pushing it forward, the Ministry of Economic Affairs (MOEA), in respecting 
Legislative’s power on this bill examination, could hardly estimate the time spot when the 
examining process will complete and the bill will take effect.  
As draft amendments of two Statutes comes to be legislated in the future, most of foreign 
investors only need to notify the Investment Comm ission of Ministry of Economic Affairs (MOEA) 
as they implemented the investment below a certain amount or less, instead of filing an 
application for approval in advance. 
 And while the investor who makes an investment in accordance with amended Statute is required to submit an investment application form, together with his/her investment plans and relevant 
documents, to the competent authority for approval in any of the following events: 
 1. investing in an industry subject to the investme nt restrictions set forth in Paragraph 2 of Article 
7 hereof; 
2. the amount of investment or its value ex ceeds the amount or value prescribed by the 
Competent Authority;  
3. a cross-border merger which meets a certain scale or type; and 
4. extraordinary investments as promulgated by the Competent Authority. WT/TPR/M/302/Add.1 
 
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  INDONESIA  (additional questions) 
 
GOVERNMENT REPORT  
3 DOMESTIC POLICY ENVIRONMENT AND REFORMS 
3.3 Industrial development policy and reform Page 8 Para. 3.9 
 
“In addition to the SII, two major industrial deve lopment initiatives were introduced in 2012. The 
first was the Implementation Plan of the Four  Transformations of the Three Industries. The 
objectives of the Implementation Plan are to acce lerate the industrial transformation process and 
provide the next wave of growth stimulation fo r the economy by fostering a “service-oriented” 
manufacturing industry, a “high-tech” services industry, an “internationalized” services industry and a “specialty-oriented” traditional industry. The second initiative enacted was the Innovation 
and Restoration Program for Traditional Industries. This policy program intends to foster the 
development of non-high-tech traditional industries by infusing new information and communications technologies, cultural and creative elements and refined business models.” 
 
Question:  
1. Please elaborate the first major industrial development initiative, specifically in providing the 
next wave of growth stimulation for the economy regarding fortifying services industry? Please 
provide which measures explain the said initiative. 
 Answer: 
The details of “Three Industries, Four Reforms” include the following aspects: “Service-oriented” manufacturing turns manufacturing into a highly cu stomized service, so that additional revenue 
can then be generated or derived from the custom ized service providers. “High-tech” services use 
ICT and other technology tools to improve the qua lity of service, reducing service costs, and may 
create additional demand for services. Internatio nalized services are internationally competitive 
and can boost export performance and contribute substantially to our economy. “Specialty-oriented” traditional industries use technology, aesthetics, new materials, new business models 
and other innovative value-added elements of traditional industries to play with and enhance the 
added value of traditional industries. The promotion of the practice is divided into two stages: The 
first stage, which takes place in 2012-2015, highlights selected industries, promoting the 
expansion of the second phase to be carried ou t in complete industry restructuring. Several 
demonstrations, involving areas such as machine tools, logistics, information services and fashion textiles, have been under consideration to enhance product added value and differentiation 
capacity. However, the overall effectiveness of  the promotion of economic growth of these 
transformations requires long-term accumulation and should become more and more significant. 
 4 TRADE AND INVESTMENT POLICY DEVELOPMENTS 
4.1 Trade and investment policy 
Page 10 Para. 4.4  
“The government is also taking concrete steps to create a friendly investment environment and 
assist foreign businesses in their efforts to invest. One such step, the “InvesTaiwan Service Center” (ITSC), was established in 2010 to provide customized one-stop solutions to potential 
foreign direct investors considering doing business in the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu. Services offered by  the ITSC include evaluation of investment 
projects, legal and accounting consultations, identification of potential locations for factory and/or office sites, facilitation of related administration processes, as well as the coordination with various 
governmental agencies to overcome obstacles encountered.” 
 Question: 
2. To what extent does the ITSC affect the investment environment?  
3. Can Chinese Taipei provide information regard ing the investment trends before and after the 
existence of ITSC? 
 
Answer:  
1. The InvesTaiwan Service Center (ITSC) is a “o ne-stop” investment service center. Its mandate 
is to provide customized service for potential foreign and local investors in order to expedite the 
investment process. Most investors have expressed satisfaction with this service. WT/TPR/M/302/Add.1 
 
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  2.By providing friendly investment services so as to attract investors from abroad, ITSC is 
mandated to help investors familiarize themselv es with the local investment environment and 
eliminate the obstacles they may encounter during the investment process. 
3.ITSC was established in August 2010, and the in bound FDI of the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu has grow n from US$3.906 billion in 2010, to US$5.294 
billion in 2013. ITSC reports that it has fulfilled 239 requests for assistance up to the end of 
2013, helping to complete investments with a total value of over NT$132 billion. Most of the 
investors requesting assistance were from Japan, followed by us and North America. 
 4 TRADE AND INVESTMENT POLICY DEVELOPMENTS 4.2 Participation in the WTO 
Page 11 Para. 4.11 
 “As one of the world leaders in ICT trade, the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu fully agrees that the expansion of the Information Technology Agreement (ITA) 
will bring benefits to all WTO members and their citizens by further removing barriers that are hindering the flow of ICT products across the globe. The modernization of the agreement is 
especially acute given that advancements in digital technologies and convergence of products and 
functions are quickly making the current ITA incapa ble of properly responding in ways that will 
propel the rapid development of the global info rmation technology (IT) industry. The Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu has been a pro-active participant of the 
ITA expansion negotiations since mid-2012. We hopes these negotiations can reach a 
commercially significant and balanced conclusion as soon as possible.”  
Question: 
4. Considering disadvantages that will have been suffered by countries that haven't had 
competitiveness on ICT product, what initiative or contribution or assistance that will be given by 
Chinese Taipei? 
 Answer: 
To achieve the UN’s Millennium Development Goals (MDGs), we have assisted developing and the 
least-developed countries (LCDs) for sustainable development and we have shared our information 
technology (IT) know-how for their IT capa city-building. In 2013, the “Information and 
Telecommunication Projects” we carried out includ ed: (1) ICT Cooperation Project in Belize, St. 
Christopher and Nevis, St. Vincent, and St. Lucia. (2) Procurement of Office Equipment for the 
Inspiration Center, Special Envoy for Women & Children in Belize. (3) Project of Enhancing 
Security and Confidence in Using Electronic Commerce in Nicaragua. (4) Multichannel Contact and 
Data Centre in St. Lucia. (5) “Internet of São Tomé and Príncipe” and “School Internet” in São 
Tomé and Príncipe.   Furthermore, we have proposed a new 4-year “ICT Project” in Belize in the same year. The project 
aims to build the Supplies Control Unit Database  System (SCU) and UNCTAD’s Automated System 
for Customs Data (ASYCUDA) to digitalize import and export licensing procedures, streamline the administrative process, and improve the government’s ability to analyze import and export data, 
leading to more efficient trading.  
 We continue to use all kinds of ways to help  other countries build up their information and 
communications technology (ICT) application capabilities. For example, the APEC Digital 
Opportunity Center (ADOC) Project, an ECOTECH initiative that we first proposed during the 2003 APEC Economic Leaders’ Meeting, aims to help tr ansform digital divides into digital opportunities 
throughout the Asia-Pacific region. The ADOC initiative utilizes the advantages of our information 
and communications industry, and its experience in developing an e-society, to help APEC member 
economies upgrade their ICT application capabilities.  
So far, ADOC has created 101 training centers in the ten partner member economies, and more 
than 650,000 registrations have been logged. These centers focus mainly on trainers’ training, women and children’s ICT skills, and strengthening local SMEs’ e-commerce abilities. In Indonesia, 
13 ADOC Centers have been es tablished since 2006,  and there have been more than 70,000 
registrations.    
 WT/TPR/M/302/Add.1 
 
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  4 TRADE AND INVESTMENT POLICY DEVELOPMENTS 
4.3 Unilateral liberalization Page 12 Para. 4.19  
“In August 2013, the FEPZs kicked off the first implementation phase, with priorities given to the 
following industries: 
 Smart logistics: To promote the faster and freer flow of goods and increase the value added 
to goods by making available top logistics services, enabled by innovative customs 
administration and information clouds. 
 International health care: To provide foreign patients with health checks, cosmetic medicine 
and serious illness treatments, while promoting alliances with other industries, such as 
tourism. 
 Value-added agriculture: To develop agriculture by utilizing agricultural technology, 
innovating for higher value, extending the wh ole value chain, and marketing the MIT (“Made 
in Taiwan”) brand. 
 Financial services: To allow the operation of financial institutions benefiting from reforms in 
financial regulations. The contemplated changes are expected to open the door to financial 
products and services that will help develop our wealth and asset management services 
under ratings-based and differentiated management. 
 Education innovation: To encourage cooperation between domestic and prestigious overseas 
universities in setting up university branch ca mpuses or departments, independent colleges, 
degree programs and professional courses.” 
 Question: 
5. Can Chinese Taipei refer specific measures elaborating this first implementation phase as well as step-by-step process in each industry?  
Answer: 
The strategies adopted by the FEPZs Plan include:  1. Facilitating the free movement of people , goods and money 
(1) Liberalizing border entry/exit: Not involving blue-collar labor  
 Easing restrictions on foreign professionals entering here for work. For example, foreign 
professionals working in FEPZs either for FEPZ Enterprises or on a commission or contracted undertaking basis, they are ex empted from the requirements of 2-year 
previous work experience. As for FEPZ Ente rprises, they are exempted from turnover 
requirements for employment of foreign professionals.  
 Expanding visa-free entry or provision of la nding visas for short-term stay by foreign 
business people.  
 Relaxing restrictions on business activities and stay for mainland Chinese professionals; 
3-year multiple-entry permits ca be provided.  
(2) Liberalizing goods movement  
 Free import as a general rule for agricultural and industrial raw materials and goods.  
2. Building a high-quality business operating environment  
(1) Providing high-efficiency one-stop services  
(2) Installing all public facilities needed for industries’ development  
(3) Providing complete information and communications infrastructure  
 
The implementation measures for the five industrial activities include 
1. Smart Logistics 
(1) Promoting integrated cloud-based e-enabled services: Establishing common cloud 
platforms, to provide innovative service capab ilities; and integrating logistics distribution 
information and customs inspection platforms.  
(2) Developing various service modes and expandin g enterprise operating niches: Simplifying 
customs inspection mechanisms for outsourced processing; relaxing testing and 
maintenance methods; and relaxing restrictions on the objects and locations of multi-
country consolidation.  
(3) Activating inter-zone linkages: Using outsourced processing on a “shop onsite, factory 
offsite” business model to establish supply chain connections; and establishing a special 
maritime express handling unit to provide 24-hour efficient customs services. 
2. International Health Care 
Setting up international medical service centers in airports to provide medical consulting and 
hospital liaison services WT/TPR/M/302/Add.1 
 
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  3. Value-added Agriculture 
(1) Setting up production and marketing platforms to increase farmers’ incomes: Guiding and 
assisting in-zone operators to contract production by domestic producers, farmers’ associations and farm cooperatives, to es tablish high-efficiency supply systems.  
(2) Attracting enterprise investment to create multi-win scenarios: Using ancillary policy 
instruments (such as the National Development Fund) to provide special financing and attract large domestic enterprises or foreign investors.  
(3) Promoting the commercial application of agricultural technology: Promoting agritech 
product development, and developing new models for agritech export  
4. Financial Services 
(1) Greatly widening the permitted range of bank products and services: Expanding the 
range of products and services permitted to be provided by offshore banking units 
(OBUs) and domestic banking units (DBUs), for example, relaxing restrictions on the range of trust products that OBUs are allowed to sell, and relaxing restrictions on who 
may purchase derivatives from OBUs, and allowing OBUs to sell a broader range of 
investment products. 
(2) Widening the range of products and services permitted to be provided by securities firms: 
Expanding the range of products and services permitted to be provided by offshore 
securities units (OSUs) and domestic securities units (DSUs). For example, we have greatly eased regulatory restrictions on the types of products and product review requirements that OSUs are allowed to sell to non-residents in their operation of foreign-
denominated trust services and their brokering of foreign securities. 
5. Education Innovation 
(1) The goal of the education innovation project is to promote cooperation between local 
universities and overseas universities by setti ng up degree programs and professional 
courses, in order to introduce international courses, teaching staff and other high quality educational resources, thereby innovating upon the campus affairs operating model and 
attracting international students to study. Another objective is to raise the quality of 
teaching and research in institutions of higher education through increased cooperation between local and foreign universities. 
(2) Education innovation project is not limited to any geographic area; it will assist 
universities in breaking through the existing legal framework.  Maximum flexibility will be 
allowed with regard to establishment, organizational operation, supervision and management, enrollment methods, student studies, and teacher recruitment and asset 
usage, etc. 
 SECRETARIAT REPORT 
2 TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2.7 Foreign investment regime Page 35 Para. 2.49  
“Chinese Taipei is not a member of the Intern ational Centre for Settlement of Investment 
Disputes, established by the World Bank to provide arbitration and conciliation services for government and foreign investors. Foreign investment disputes are normally resolved according to 
domestic law and regulations based on "national treatment" and investment guarantee 
agreements.”  
Question: 
6. Will Chinese Taipei be considering to become a member of ICSID? Can Chinese Taipei 
explain parenthesis in national treatment as written in the above sentence?   
Answer: 
As provided in some of our BIAs, we also refer to ICSID as a forum to settle foreign investment 
disputes. More specifically, the current ICSID ru les provide that in cases where one of the BIA 
parties is not its member, the two disputing sides may refer to its Additional Facility Rules and the 
ICSID Secretariat will administer the ar bitration proceedings for those cases. 
 
“National treatment” in this context means that foreign investors are entitled to the same rights as 
our citizens in bringing investment disputes to our domestic dispute settlement proceedings, which 
include litigation in domestic courts and administrative tribunals, arbitration or mediation by arbitral institutions, and mediation, conciliation or settlement conducted by administrative 
agencies. WT/TPR/M/302/Add.1 
 
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  Question:  
7. Is there another way to resolve investment disputes as explained in the phrase: normally 
resolved according to domestic law and regulations based on "national treatment" and investment guarantee agreements? 
 
Answer: 
Yes, it is our policy to strengthen the protection of our investors and investments and provide 
them with a wide range of dispute settlement avenues that is not limited to domestic courts and 
arbitrations.  Our past BIAs have stipulated that in addition to domestic courts or arbitrations, foreign investors may submit their investment disputes to international ad hoc arbitration tribunals under UNCITRAL, International Chamber of Commer ce (ICC), and/or other arbitration rules to 
which both disputing parties agree. 
 4 TRADE POLICIES BY SECTOR 
4.4 Services 
4.4.2 Banking, finance and insurance 4.4.2.2 Banking 
Page 103 Para. 4.99 
 “Currently there are five non-local bank subsidia ries operating in the market, and there are no 
equity ownership limits for non-local financial institutions in local banks. Non local banks must 
establish a commercial presence to provide services in the territory. A non-local bank may apply to 
establish a branch office, a representative office or a subsidiary, subject to prior approval of the FSC. Non-local bank branches may conduct th e full range of banking businesses including 
accepting deposits from the public as defined in the Banking Act. They are not separate legal 
entities and thus not subject to the minimum capi tal requirement, paid-in capital requirement, and 
other regulations set for domestic banks as prescrib ed in the Banking Act. Representative offices of 
a non-local bank are limited to collecting commercial and market information and business liaison. 
A subsidiary of a non-local bank must comply with the same minimum capital adequacy ratios and paid-in capital requirements as a domestic bank.”  
Question: 
8. Are there any provisions that regulate th e establishment of foreign banking in Chinese 
Taipei?  
 
Answer:  
Foreign banks may apply in accordance with the “Regulations Governing Foreign Bank Branches 
and Representative Offices” to set up branches or representative offices in our jurisdiction. In 
addition, they may also apply in accordance with the “Standards Governing the Establishment of Commercial Banks” to establish subsidiary banks here.  
Question: 
9. If so, what is the required procedure for foreign banking to open its branch in Chinese 
Taipei? 
 
Answer: 
According to the “Standards Governing the Establishment of Commercial Banks,” a foreign bank 
wishing to establish a branch in our jurisdiction is required to submit the following documents to 
the competent authority for approval:  
➀a feasibility study; ➁a self-assessment regarding the foreign bank's compliance with laws and 
regulations and the integrity of its business operations; ➂a document issued by the financial 
regulator of the foreign bank's home country a pproving the establishment of a branch in our 
jurisdiction, and ➃a document issued by the financial regulator of the foreign bank's home country 
stating its willingness to cooperate with our competent jurisdiction in sharing the supervisory and 
regulatory responsibility for the foreign bank, as well as a document [issued by such regulator] 
confirming the soundness of the foreign bank's business and financial conditions.  WT/TPR/M/302/Add.1 
 
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  4 TRADE POLICIES BY SECTOR 
4.4 Services 4.4.2 Banking, finance and insurance 4.4.2.3 Insurance 
Page 105 Para. 4.110 
 “The authorities stated that the regulations for non-local and local investment in the insurance 
sector are the same, and there are no equity restrictions for non-local investment. Establishment 
of a commercial presence is necessary to access the insurance market, except for reinsurance, maritime shipping insurance, and commercial aviation insurance.38 For a non-local insurance company to establish a branch, it must have a minimum capital of NT$5 0 million. The minimum 
paid-in capital required for the establishment of domestic insurance companies and subsidiaries of 
non-local insurance firms is NT$2 billion. From 2013, all insurance firms (domestic and non-local) are required to adopt the IFRS (International Financial Reporting Standards)” 
 
Question: 
10. Since both non-local and local investment in the insurance sectors are treated the same, 
how does Chinese Taipei ensure that local investments are able to compete with non-local 
investment?   Answer: 
The Financial Supervisory Commission applies the same regulations to non-local and local investments, in line with the principle of Nation al Treatment. Each insurance company conducts 
business differently, depending on its size and bu siness strategies. We ensure we have a fair 
market in place for all insurers to operate and compete in our insurance market. We respect the 
market mechanism, and have not adopted any protective measures for local investments. 
 
Question:  
11. Does Chinese Taipei have certain measures to support its local investment? 
 Answer: 
We do not have any measures to support local investments.  
 4 TRADE POLICIES BY SECTOR 
4.4 Services 
4.4.4 Transport 4.4.4.2 Air Transport 
Page 110 Para. 4.135 
 “Airlines are free to establish their prices for international flights, although the fares must be filed with the MOTC and the Civil Aeronautics Administ ration (CAA). The CAA, under the MOTC, is the 
air transport regulator. The MOTC is responsibl e for approving new carriers, while the CAA is 
responsible for supervising existing carriers.”  
Question: 
12. Who is responsible for controlling the pricing of airline services and competition in providing 
air transportation services?  
13. How do you manage that the regulation does not lead to unfair competition among airlines 
in Chinese Taipei, both for state owned and private airlines?  Answer: 
1. According to our Civil Aviation Act, a Civil Air Transport Enterprise, operating international 
scheduled flights on international air routes, shal l notify MOTC through CAA regarding its tariffs 
for passenger and cargo transportation as well as application restrictions. MOTC neither 
interferes nor controls the pricing of airline services. 
2. We have no state-owned airliners, and the Fair Trade Act, promulgated by our Fair Trade 
Commission, regulates all services on competition issues, with no exception for the air transport 
services. 
 OTHERS Non-Tariff Barrier concerning the importation of Traditional Medicine for health Products (“Jamu 
Kesehatan”) WT/TPR/M/302/Add.1 
 
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  Indonesia’ export of “Jamu Kesehatan” was prohibited to enter into Chinese Taipei market by 
M i n i s t r y  o f  H e a l t h  a n d  W e l f a r e  ( M O H W )  t h e  R e p ub l i c  o f  C h i n a .  T h e  M O H W  s a i d  t h a t  t h e  “ J a m u  Kesehatan” from Indonesia considered as herbal medicine and harmful for human health consumption. 
 
Question: 
14. Are there any provisions that regulate the pr ohibition of herbal medicine in Chinese Taipei? 
If so, please provide detailed in formation on those regulations 
15. What is the rationale behind those prohibitions?  Answer: 
1. According to the Act Governing Food Safety an d Sanitation, food that has never been provided 
for human consumption and proven to be harmless to human health, shall not be manufactured, processed, prepared, packaged, transported, stored, sold, imported, exported, publicly 
displayed, or presented as a gift. 
2. If Indonesia would like to apply for Jamu Keseha tan as a non-traditional food ingredient in the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, it shall follow the regulations 
and procedures promulgated by the TFDA (http ://www.fda.gov.tw). TFDA will then carry out 
safety assessments after receiving the application. If the ingredient is confirmed to be harmless 
for human health, it will be allowed as a food ingredient for human consumption. WT/TPR/M/302/Add.1 
 
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  COLOMBIA 
 
RESUMEN  Entorno económico 
 
El Párrafo 5 del informe de la Secretaría indica que… “El Taipéi Chino, que cuenta con ventajas comparativas en el sector de los productos de tecnología de la información, es sumamente 
competitivo y, según varios informes sobre la competitividad mundial publicados en los últimos 
años, tiene potencial de desarrollo. No obstante, el Gobierno se enfrenta a importantes desafíos económicos y ha elaborado un programa de reformas económicas, entre las que cabe citar: la firma de acuerdos de libre comercio; la reforma del sistema tributario, de la reglamentación de la 
tierra, del sector de los servicios y del sistema de salud; la liberalización de las políticas 
económicas que afectan a ambos lados del Estrecho y la introducción de reformas estructurales, en particular el Plan de expansión económica y la puesta en marcha del Plan piloto de zonas 
francas” y el Párrafo 17 del informe se la Secretaría señala que… “Las zonas de elaboración para la 
exportación y las zonas de libre comercio ofrecen incentivos similares a las empresas. Entre las empresas autorizadas a operar en las zonas de libre comercio figuran las que prestan servicios 
mercantiles, de recogida, de transbordo, de transitarios, de despacho de aduana, de ensamblaje, 
de envase y embalaje, de reparación, relacionados con las manufacturas, de ensayos, y tecnológicos. Entre las empresas autorizadas a operar en las zonas de elaboración para la exportación figuran las que prestan servicios relacionados con las manufacturas, financieros, de 
gestión, y de información y comunicaciones. Las autoridades indicaron que la finalidad principal de 
las zonas de libre comercio era desarrollar un sector logístico global, mientras que las zonas de elaboración para la exportación se centraban en la promoción de la inversión y el fomento de las 
ramas de producción. Además de la exención de los derechos de importación, los productos 
importados en las zonas de elaboración para la exportación y las zonas de libre comercio están exentos de otras cargas e impuestos indirectos percibidos en frontera.”  
 
Colombia Question No. 1: 1. Si existen zonas de elaboración para la exportación, zonas de libre 
comercio, parques industriales, parques industriales de orientación científica, podría el Taipéi 
Chino explicar ¿Cuáles y cómo son los incentivos adicionales o diferentes que se otorgan a las 
empresas locales y externas que se ubiquen en las nuevas zonas francas?  
 Answer: 
There are export processing zones (EPZs), free trade zones (FTZs), industrial parks, science parks and Free Economic Pilot Zones (FEPZs) operatin g here. Compared with EPZs, FTZs or other 
industrial parks, FEPZs enjoy a higher level of liberalization. EPZs and FTZs focus on 
manufacturing and goods, while FEPZs focus on de regulation and institutional reform related to 
foreign professional stay, market access and service industry development in order to create a more favorable environment for business.  
Both domestic and foreign companies that register as FEPZ enterprises will enjoy the same tax 
incentives.   
Colombia Question No. 2: ¿Cuáles fueron las razones por las que el gobierno del Taipéi Chino 
decidió planear un nuevo esquema como las zonas francas, para atraer inversión extranjera en el 
sector de tecnología, si cuenta con parques industriales de orientación científica?  
 
Answer: 
The FEPZs primarily promote service industries ra ther than high-tech. These service industries 
include smart logistics, international health care, education innovation and financial service. The 
FEPZs are not Science Industrial Parks (SIPs). 
 ? Ministerio de Comercio, Industria y Turismo República de Colombia MISIÓ N 
PERMANENTE DE COLOMBIA ANTE LA OMC  
RESUMEN  Entorno económico 
El Párrafo 8 del informe de la Secretaría indica que… “Los objetivos generales de política comercial 
del Taipéi Chino siguen centrándose en intensificar su integración en la economía mundial gracias a su participación activa en la OMC y, cada vez más, a la negociación de acuerdos de libre comercio y de cooperación económica, el afianzamiento de las actividades de facilitación y 
promoción del comercio, y la reducción de los obstáculos al comercio en los mercados extranjeros. WT/TPR/M/302/Add.1 
 
- 124 - 
 
  Desde la firma del Acuerdo marco de cooperación económica con China en 2010, el Gobierno ha 
procurado negociar acuerdos comerciales con países que no le reconocen diplomáticamente; en este sentido, su primer éxito fue la firma de acuerdos de cooperación económica con Nueva Zelandia y Singapur en 2013. Se prevé que a medio plazo se firmen acuerdos similares con otras 
economías, y el Gobierno ha expresado su interés en adherirse al Acuerdo de Asociación 
Transpacífico impulsado por los Estados Unidos, así como a la Asociación Económica Regional Amplia apoyada por la ASEAN. La perspectiva de ne gociar otros acuerdos de libre comercio debería 
respaldar los intentos por reformar y liberalizar la economía nacional durante los próximos años.”  
 Colombia Question No. 3:  ¿Podría el Taipéi Chino informar si la República Popular China se ha 
pronunciado a favor o en contra de la firma de acuerdos comerciales entre el Taipéi Chino y otras 
economías como Nueva Zelandia y Singapur?  
 Answer: 
Our decisions and actions in signing ANZTEC and ASTEP with New Zealand and Singapore are autonomous government decisions made irre spective of China’s attitude, if any.  
 
1 ENTORNO ECONÓMICO 
1.1 Introducción  El Párrafo 1.5 del informe de la Secretaría indica que… “El Taipéi Chino, que cuenta con ventajas 
comparativas en el sector de los productos de tecnología de la información, es sumamente 
competitivo y, según varios informes sobre la competitividad mundial publicados en los últimos años, tiene potencial de desarrollo. No obstante, el Gobierno se enfrenta a importantes desafíos 
económicos y ha elaborado un programa de reformas económicas, entre las que cabe citar: la 
firma de acuerdos de libre comercio; la reforma del sistema tributario, de la reglamentación de la tierra, del sector de los servicios y del sistema de salud; y la liberalización de las políticas 
económicas que afectan a ambos lados del Estrecho.”  
 Colombia Question No. 4:  ¿Podría el Taipéi Chino informar en qué consistió la reforma 
relacionada con la “reglamentación de la tierra?  
 
Answer: 
In order to adapt to the international economic li beralization, increase the efficiency of foreign 
capital investment, promote better use of foreign technical know-how in the exploitation of land 
resources, according to the principle of reciprocity in Article 18 of the Land Law, aliens or foreign 
companies are permitted to acquire land here and make investment in real estate or other 
industries if the investments are helpful to major infrastructure projects, to the overall economy, 
or to agricultural and animal husbandry industries, which can enhance the convenience of investing., It exclude lands used for forestry, aq uaculture, hunting reserves, salt plants, mineral 
deposits exploitation, water resources, military bases and areas, and land adjacent to the national 
frontiers as defined in Article 17 of Land Law. Related articles of the Land Law were amended and 
promulgated on 31 October 2001.  
RESUMEN  
Principales líneas de evolución de la política comercial El párrafo 21 del informe de la Secretaría señala que… “Según las autoridades, todos los 
reglamentos técnicos están armonizados con normas internacionales. Los reglamentos técnicos 
constituyen la base para la expedición de los certificados de conformidad. Su aplicación es obligatoria y se refieren fundamentalmente a determinados productos  
Ministerio de Comercio, Industria y Tu rismo República de Colombia MISIÓ N 
PERMANENTE DE COLOMBIA ANTE LA OMC  
eléctricos, productos químicos, máquinas, y productos agrícolas. Antes de pasar a la 
comercialización, los productos sujetos a reglamen tos técnicos deben ser objeto de inspección 
para comprobar su conformidad. Están sujetos a inspección los productos importados, los 
exportados y los de fabricación nacional. Al mes de febrero de 2014, 1.137 productos básicos, 
entre los que figuraban 756 productos químicos y 381 productos mecánicos, eléctricos y electrónicos, estaban sujetos a inspección obligatoria, además de 1.853 productos agrícolas y pesqueros. Las autoridades mantienen un sitio Web de acceso público en el que pueden hacerse 
consultas sobre los productos sujetos a inspección.  WT/TPR/M/302/Add.1 
 
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  Colombia Question No. 5: ¿Cuál es la definición de “Norma Internacional” utilizada por las 
autoridades responsables en la elaboración de los Reglamentos Técnicos?  
 Answer: 
The TBT Committee has not designated any organizations as the international standardization bodies. In light of the decision adopted by the TBT Committee on six principles for the development of international standards, guides and recommendations (G/TBT/1/Rev.10), the 
following principles and procedures should be observed during the development of international 
standards, to ensure transparency, openness, impartiality and consensus, effectiveness and 
relevance, coherence, and to address the concer ns of developing countries. Standards developed 
by the standardization bodies that follow the si x principles are considered as international 
standards. 
 Colombia Question No. 6:  ¿Se contempla la aceptación de “Equivalencia” de Reglamentos 
Técnicos extranjeros con los propios?  
 Answer:  
Regarding the acceptance of certain equivalent te chnical regulations of other Members, it varies 
due to the technical regulations governed by diff erent regulatory authorities. For example, we 
have recognized 22 countries as organic agricu ltural product equivalence country, including the 
U.S., Australia, New Zealand, Belgium, etc. 
 
RESUMEN  Evolución de la política sectorial 
El Párrafo 27 del informe de la Secretaría indica que… “El Gobierno ha seleccionado 10 industrias 
de servicios fundamentales, así como otras industrias, como objetivo principal de su política de desarrollo industrial. Las industrias de servicios son: el turismo médico; la música y el contenido 
digital; la logística internacional; la captación de fondos para industrias de alta tecnología y 
orientadas a la innovación; la renovación urbana; la promoción internacional de la cocina nacional; las reuniones, incentivos, conferencias y ferias (MICE), la tecnología de interoperabilidad mundial para acceso por microondas (WiMAX), el comercio  electrónico en chino, y la promoción de la 
matriculación de estudiantes extranjeros. En lo s planes de acción para esas industrias se 
establecieron varias estrategias fundamentales, incluido el desarrollo de mercados internacionales; el fomento de la capacidad en idiomas extranjeros y comercialización internacional; y el suministro 
de préstamos, orientación y asistencia para expandir el mercado en el exterior.”  
 Y el párrafo;  
1 ENTORNO ECONÓMICO 
1.4 Políticas estructurales Párrafo 1.22 del informe de la Secretaría indica que… Durante el período objeto de examen, el Gobierno prosiguió la reforma estructural con miras a aumentar la eficiencia y la competitividad de 
la economía nacional. Con objeto de ajustar su estructura industrial, el Gobierno seleccionó en 
2009 varias ramas de producción, considerándolas prioritarias para el desarrollo económico. Se trataba de las seis ramas de producción denominadas "emergentes" (como la biotecnología, la 
energía verde, las actividades culturales y creativas), las cuatro ramas de producción inteligentes 
(como la computación en la nube y los vehículos eléctricos), y los 10 principales subsectores de servicios (como los servicios internacionales de atención médica y los servicios internacionales de 
logística). Para acelerar el proceso de ajuste, la s autoridades pusieron en marcha en 2012 el Plan 
de expansión económico, con el objeto, entre otros, de aumentar la competitividad de las exportaciones. En 2013, el Taipei Chino introdujo el  plan piloto de zonas francas, lo que demuestra 
su fuerte deseo de participar en la integración económica regional y marca un importante cambio 
en su estrategia de desarrollo, consistente en priorizar la innovación sobre la inversión.”  
 Colombia Question No. 7: ¿Podría el Taipéi Chino compartir su experiencia sobre el mecanismo 
y los parámetros utilizado para seleccionar las ramas de la producción y los 10 subsectores de 
servicios incluidos en su política de reformas estructurales?   
Answer: 
In the past, we allocated a great deal of resources in the industry of information and 
communications technologies (ICT), thereby enjoying a great advantage in this regard. The global financial turmoil that broke out in 2008 reminded us that our economy relied too heavily on ICT 
industries and that our export capacity favored a relatively small number of sectors. In order to WT/TPR/M/302/Add.1 
 
- 126 - 
 
  achieve sustainable economic development, we decided to improve our industrial structure by 
diversifying our industries.  Taking into account global trends such as the shift to green energy, ageing population, etc., we 
decided to develop the six following emerging industries: biotechnology, green energy, cultural 
and creative, tourism, high-end agriculture and health care.  
Along with these emerging industries, our government also picked out ten industries from the 
service sector as the country’s key industries for development. These include international promotion of Taiwanese cuisine, medical tourism, mu sic and digital content, international logistics, 
MICE industries, Chinese-language e-commerce, an d others. For each service industry, an action 
plan was created. The selection criteria included  development potential, global competitiveness, 
job creation, etc.   
2 RÉGIMEN DE POLÍTICA COME RCIAL: MARCO Y OBJETIVOS 
2.7 Régimen de inversión extranjera El Párrafo 2.43 del informe de la Secretaría indica que… “Actualmente, los esfuerzos más 
significativos por lograr que el Territorio sea un destino más atractivo para los inversores 
extranjeros giran en torno a una mayor apertura de la economía a las corrientes de inversión procedentes de China. El Gobierno también ha anunciado medidas destinadas a alentar a las empresas extranjeras del Territorio, sobre todo las que tienen su sede en China, a reinvertir en la 
isla. La creación prevista de zonas francas experimentales en seis de los principales puertos y en el 
Aeropuerto Internacional de Taoyuan son parte fundamental de la estrategia del Gobierno para atraer más inversión extranjera. Se han flexibilizad o las restricciones aplicadas a la mano de obra, 
al capital y a las mercancías, y se ofrecen incentivos fiscales a las empresas que invierten en 
determinadas actividades industriales y de servicios en las zonas francas experimentales.”   
Colombia Question No. 8: ¿Podría el Taipéi Chino especificar cuáles son los incentivos fiscales 
que se ofrecen a las empresas que inviertan en las zonas francas experimentales?  
 Answer: 
The FEPZs Plan provides a number of tax incentives as detailed below: Locally-based companies that invest in FEPZs with dividends or earnings from their offshore operations will be exempt from business income tax. 
For foreign professionals, only half of income is taxable for the first 3 years, and the income 
derived abroad is exempt from tax filing. For foreign shipment owners that export goods af ter storage and simple processing in FEPZs, no 
business income tax will be levied. However, if goods are sold to domestic market, only 10% of 
the total revenue will enjoy a tax exemption. The agricultural and industrial raw materials,  goods, machinery and equipment which FEPZ 
enterprises (foreign and domestic) import for use in their business operations will be exempt from 
customs duty, business tax and commodity tax. 
Note: The above tax incentives will be provided  after the Special Act for FEPZs is enacted. 
 
Colombia Question No. 9: En este párrafo se menciona que el gobierno del Taipéi Chino ofrece 
incentivos fiscales a empresas de determinadas actividades industriales y de servicios que se 
establezcan en las nuevas zonas francas experimentales. ¿Qué actividades industriales y de 
servicios han sido seleccionadas? ¿Cómo y cuáles fueron los criterios de selección?  
 Answer: 
All the qualified FEPZ enterprises are entitled to the following tax incentives, no matter what 
industries they belong to: 
For foreign shipment owners that export goods af ter storage and simple processing in FEPZs, no 
business income tax will be levied. However, if goods are sold to domestic market, only 10% of 
the total revenue will enjoy a tax exemption. 
Locally-based companies that invest in FEPZs with dividends or earnings from their offshore operations will be exempt from business income tax. Such companies need to carry out real 
investment activities in FEPZs, such as buildin g factories and employing workers. They should 
refrain from involvement in stock or land speculation.   
 WT/TPR/M/302/Add.1 
 
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  3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 
3.1 Medidas que afectan directamente a las importaciones  3.1.5 Impuestos percibidos en frontera y otras cargas  El Párrafo 3.46 del informe de la Secretaría indica que… “Las Aduanas perciben derechos de 
importación y recaudan varios impuestos en frontera sobre los productos importados en nombre 
de otros organismos gubernamentales: el impuesto sobre las transacciones comerciales; el impuesto al consumo; el impuesto sobre el taba co y el alcohol; el impuesto sobre bienes y 
servicios especialmente seleccionados; el recargo sobre los productos del tabaco con fines de salud 
y bienestar social; y el derecho de servicio de promoción comercial. El impuesto sobre bienes y servicios especialmente seleccionados se viene aplicando a los productos "de precio elevado" desde el 1o de junio de 2011.  
 
La contribución de los impuestos relacionados con el comercio a los ingresos fiscales totales aumentó del 22,8% en 2009 al 26,8% en 2013, experimentando cierta fluctuación. En el período 
objeto de examen, el impuesto sobre las transa cciones comerciales representó en todo momento 
dos tercios del total de los impuestos relacionados con el comercio.”   
Y el párrafo…  
3.1.5.2 Derechos y otras cargas El Párrafo 3.52 del informe de la Secretaría indica que… “El derecho de servicio de promoción del comercio se percibe en frontera a un tipo del 0,04% del valor de las importaciones (y 
exportaciones). Con ese derecho se financia el Fondo de Promoción del Comercio, que es 
administrado por el Comité de Gestión del Fondo; alrededor de un tercio de los 21 miembros del Comité son representantes de exportadores o importadores. El Fondo de Promoción del Comercio 
se utiliza para cubrir los gastos administrativos relacionados con actividades de promoción del 
comercio, como la organización de exposiciones y los gastos de viaje. En 2012, el Fondo recaudó 4.827 millones de dólares NT en frontera y ga stó 4.640 millones de dólares NT en actos de 
promoción del comercio.  
 Colombia Question No. 10:  ¿Cómo explica el Taipéi Chino que el cobro del derecho de servicio 
de promoción del comercio no es un impuesto discriminatorio, dado que se aplica a importaciones 
(y exportaciones) y no al comercio de productos locales?  
 Answe r: 
According to Article 21 of the Foreign Trade Law,  in order to expand foreign trade, cope with 
foreign trade situations, and support trade activities, the competent authority may establish a trade promotion fund by uniformly collecting unifo rmly through customs a trade promotion service 
fee against the goods exported/imported by ex porters/importers. The fee collected on all 
imports/exports is not used for purposes of protecting the domestic industry or for fiscal purposes. Following the users-pay principle, all the fees collected are spent for designated purposes.  
3.1.7 Medidas comerciales especiales 
3.1.9 Reglamentos técnicos y normas  El párrafo 3.92 del informe de la Secretaría indica que… “Los laboratorios extranjeros también 
pueden obtener el reconocimiento de la BSMI en el marco de acuerdos bilaterales de cooperación o 
acuerdos de reconocimiento mutuo del Foro Internacional de Acreditación (IAF) o la Cooperación de Acreditación del Pacífico (PAC).[1] Al mes de marzo de 2014, 117 laboratorios extranjeros 
h a b í a n  s i d o  r e c o n o c i d o s  p o r  l a  B S M I  e n  v i r t u d  d e  a c u e r d o s  d e  r e c o n o c i m i e n t o  m u t u o .  L a s  
autoridades pueden aceptar los informes de prue bas, los certificados de inspección y/o otros 
documentos acreditativos pertinentes expedidos por laboratorios acreditados de otros interlocutores con los que se han concertado acuerdos bilaterales o en virtud de acuerdos 
multilaterales de reconocimiento mutuo.[2] Al mes de febrero de 2014, la BSMI había concertado 
acuerdos bilaterales de cooperación con 35 organizaciones de 26 países[3]; y el Taipei Chino había suscrito acuerdos de reconocimiento mutuo con siete Miembros de la OMC (Australia, el Canadá, 
los Estados Unidos, el Japón, Nueva Zelandia, Singapur, y Viet Nam). Las autoridades indicaron 
que durante el período examinado se aceptaron siete documentos de certificación extranjeros en virtud de acuerdos de reconocimiento mutuo.”  
 
Colombia Question No. 11:  ¿ C u á l  h a  s i d o  e l  i m p a c t o  e n  l a  f a c i l i t a c i ó n  a l  c o m e r c i o  d e  l a  
aplicación de los Acuerdos de Reconocimiento Mutuo (ARM)? 
 
 WT/TPR/M/302/Add.1 
 
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  Answer: 
MRAs save time and reduce cost for duplicate testing and certification, through mutual recognition 
of test reports and certificates, which effectively reduce market access barriers and promote trade facilitation. 
 
Colombia Question No. 12:  ¿En qué forma se simplificaron los Procedimientos de la Evaluación 
de la Conformidad con la aplicación de los (ARM) con los diferentes interlocutores comerciales?  
 
Answer: 
By signing an MRA, both parties mutually agree to recognize conformity assessment results of the 
parties. An MRA allows manufacturers or trader s to conduct conformity assessment procedures 
required by the other party in their own territory through designated conformity assessment 
bodies under MRA.  
[1] Si el país del solicitante no dispone de un or ganismo de acreditación o si ese organismo no es 
parte en un acuerdo de reconocimiento multilateral del IAF o de la PAC, se puede obtener la acreditación ante organismos de acreditación de otros países que sean parte en un acuerdo de 
reconocimiento multilateral del IAF o de la PAC.  
[2] Artículo 15 de la Ley de inspección de productos básicos.  [3] Las autoridades indicaron que los acuerdos de cooperación con la BSMI y otras jurisdicciones 
se refieren principalmente a la cooperación para el registro común de la certificación de los 
sistemas de gestión, las marcas de productos, la cooperación técnica; la cooperación en materia 
de reglamentación; y la cooperación con fines generales. Véase el documento WT/TPR/M/232/Add.1 de la OMC, página 32, de 25 de agosto de 2010.  WT/TPR/M/302/Add.1 
 
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  THAILAND 
 
2. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES Page 35 (paragraph 2.49)  
 
Question No. 1, No. 2, No. 3:  As paragraph 2.49 indicates that “[f]oreign investment disputes 
are normally resolved according to domestic law and regulations,” Thailand is interested in 
learning whether foreign investors have the right to initiate dispute settlement proceedings against 
the government under Chinese Taipei’s domestic law. If so, are the proceedings available in both non-judicial and judicial forums? What are the re quirements/conditions to exercise such right in 
those non-judicial and judicial forums? 
 
Answer: 
To provide diverse avenues of investment dispute resolutions for foreign investors, it is our policy 
to ensure foreign investors not only the choice of domestic judicial remedy but also international 
dispute resolution in BIAs (also investment chapte rs in ECAs). Therefore, our bilateral investment 
agreements (“BIAs”) have stipulated that foreign investors may submit their investment disputes 
to international ad hoc arbitration tribunals under arbitration rules, such as UNCITRAL, 
International Chamber of Commerce (ICC), and/or other arbitration rules, to which both disputing parties agree.  
In addition to various international dispute resoluti on avenues, foreign investors are also eligible to 
the same rights as our citizens in bringing investment disputes to our domestic dispute settlement proceedings. The options include not only litigation in domestic courts and administrative tribunals, 
arbitration or mediation by arbitral institutions, but also mediation, conciliation or settlement 
conducted by administrative agencies. The requirements/conditions for initiating these proceedings, such as a written agreement for arbitr ation, mutual consent for mediation, or proof of 
damages incurred for bringing a claim, are stipulated in the following laws and regulations, 
including but not limited to: Taiwan Code of Civ il Procedure, the Code of Criminal Procedure, 
Administrative Appeal Act, the Arbitration Law of ROC, Administrative Procedure Act, and the Township and County-Administered City Mediation Act.  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  Page 76 (paragraph 3.199)  
Question No. 4 and No. 5: Chinese Taipei recently revised the Copyright law in 2014, which 
reflects exceptions for the visually-impaired as stipulated under the WIPO Marrakesh Treaty to 
Facilitate Access to Published Works for Persons Who Are Blind, Visually-Impaired or Otherwise 
Print Disabled. In this regard, Thailand would like to learn about experience of Chinese Taipei on 
the impact of such legislation on copyright owners and other stakeholders in Chinese Taipei. If there is such impact, how does Chinese Taipei deal with it?   
Answer: 
We have always accentuated to safeguard the rights and interests of persons with disabilities in 
our Copyright Act. In 1992, for instance, the Act was amended to allow reproduction of published 
works in Braille (Article 53). More recently, after the passage of the WIPO Marrakesh Treaty in 
June 2013, we began to consider amending Article 53 to alight with international copyright laws. To this purpose, our competent authority spared no effort to communicate with legislators, visual 
impairment groups, related government agencies, and publishers. Given the unanimous consensus 
achieved, we were able to see smooth passage of the amendment. More specifically, this latest amendment broadens the scope of eligible organiza tions (e.g. non-profit organizations, registered 
schools of all levels, and local or central government agencies), allowing them to produce 
accessible-format copies for the visual impairment without permission from copyright holders. In 
addition, people with such impairment can also produce the said copies for their own use. To this purpose, producers may circumvent the technica l protection measures adopted by copyright 
holders. The copies produced may also be imported or circulated among the said agencies, 
organizations, schools and visually impaired people, and thus enhancing the sharing of resource. As a result of thorough communication during the amendment process, we have yet encountered 
any negative feedback from the rights holders or stakeholders on the amendment since it entered 
into force in January 2014.   
 WT/TPR/M/302/Add.1 
 
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  4. TRADE POLICIES BY SECTOR 
Page 101 (paragraph 4.92)  Question No. 6 and No. 7: With regard to the “Three Industries, Four Reforms” programme, 
mentioned in the paragraph, please elaborate on specific government policies or strategies in order 
to induce “incorporation of service elements into the manufacturing sector.” What are the incentives or supports provided for firms under this programme? 
 
Answer: 
The “Three Industries, Four Reforms” program includes the following aspects: “Service-oriented” manufacturing provides highly customized service,  and additional revenue can then be generated 
or derived from the customized  service providers. “High-tech ” services use ICT and other 
technology to improve the quality of service, redu ce service costs, and possibly create additional 
demand for services. Internationalized services are internationally competitive and can achieve 
export performance and contribute substantially to  our economy. “Specialty-oriented” traditional 
industries use technology, aesthetics, new materi als, new business models and other innovative 
value-added elements of traditional industries to play with and enhance the added value of 
traditional industries. The practice of combining manufacturing and services means that the 
manufacturer is no longer supplies a single produc t, but instead provides a range of services to 
meet customer needs. Using service to highlight product differentiation increases customer loyalty 
and creates higher added value. The government pr ovides incentives and support to firms through 
various guidance mechanisms and other resources. Successful cases to date include as the 
machine tool, logistics, information services and fashion textile industries, which have begun to undergo the reforms detailed above in order to enhance product added value and differentiation 
capacity. 
 WT/TPR/M/302/Add.1 
 
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  REPUBLIC OF KOREA 
 
PART I: Questions Regarding the Secretariat Report Page 29 (Para. 2.35) 
Chinese Taipei pursued closer economic integratio n with China during the review period. The most 
significant vehicle for this is the ECFA, which entered into force in September 2010. The ECFA 
serves as a road-map for future economic integration through 4 follow-on agreements concerning 
investment protection, trade in goods, trade in services, and dispute settlement. It also includes 
provisions on an early harvest programme on tariff elimination and services liberalization. As of June 2013, two of the four follow-up agreements  were completed (on trade in services and 
investment promotion and protection). 
 
Box 2.2 Trade in goods agreement: as part of the ECFA, Chinese Taipei and China agreed to reduce and gradually eliminate tariffs on select imports. The final group of these “early harvest” 
items became tariff free on 1 Jan 2013. Through this arrangement, China has removed tariffs on 
539 items imported from Chinese Taipei while Chinese Taipei has removed tariffs on 267 items imported from China. Both parties intend to build on this progress by completing a more 
comprehensive trade in goods agreement in the near future.  
 Question 1 
Could Chinese Taipei please give more detailed information on the progress of the trade in goods 
agreement beyond the early harvest items? 
 Answer: 
The negotiation on the trade in goods agreement started in February 2011. Both Parties agreed 
the consultations on the agreement shall include, but not limited to, the following: (1) modalities for tariff reduction or elimination;  
(2) rules of origin;  
(3) customs procedures;  (4) non-tariff measures, including but not limited to  technical barriers to trade (TBT) and sanitary 
and phytosanitary (SPS) measures;  
(5) trade remedy measures, including measures set forth in the Agreement on Implementation of 
Article VI of the General Agreement on Tariffs  and Trade 1994, the Agreement on Subsidies 
and Countervailing Measures and the Agreement on Safeguards of the WTO, and the safeguard 
measures between the two Parties applicable to  the trade in goods between the two Parties. 
 Page 49 (Para. 3.60) 
Automatic import licensing is applied to optical disc manufacturing equipment, and to six iron and 
steel products under import surveillance. The authorities note that the issuance of import clearance certificates for optical disc manufacturing equipment is to prevent infringement of intellectual property rights. 
 
Question 2 
Could Chinese Taipei give more information on the nature of the import surveillance on 6 iron and 
steel products? According to the relevant document submitted by Chinese Taipei 
(G/LIC/N/1/TPKM/6, G/LIC/N/2/TPKM/4, Dec 2004), these products are “monitored on a weekly 
basis by means of import statistics and should any irregularity occur concerning the import of 
these items, measures as deemed necessary will be adopted to address the situation”. What kinds 
of procedures does the monitoring entail?   Answer: 
The Bureau of Foreign Trade, Ministry of Economic  Affairs will summarize import statistics provided 
by the Customs Administration, Ministry of Finance and pass the information on to International Trade Commission and Industrial Development Bureau, Ministry of Economic Affairs for monitoring 
reference. There has been no irregularities since the import surveillance was adopted. 
 Page 64 (Para. 3.158) 
The Department of Industrial Technology under  the MOEA provides funding opportunities for 
domestic and foreign companies to carry out R&D activities under the Industrial Technology Development Programme. These include grants to cover up to 50% of R&D project expenses with a cap of NT$30 million, for a maximum of 3 years. Enterprises are encouraged to set up R&D 
centres through two incentive programmes; grants are provided to cover personnel-related costs WT/TPR/M/302/Add.1 
 
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  in relation to the R&D centre operations. Foreign applications for grants to support setting up R&D 
centres will no longer be accepted after 1 May 2014.   Question 3 
Could Chinese Taipei please explain why foreign applications for grants are excluded from the 
Industrial Technology Development Programme since May 2014?  
Answer: 
Due to the transformation of global industries and the adjustment of domestic industrial structure, 
and taking into account the completion of the goal of the Multinational Innovative R&D Centers in Taiwan Program, the MOEA has suspended the appl ication of Multinational Innovative R&D Centers 
in Taiwan Program since May 2014. 
 To encourage multinational companies to join domestic R&D activities with local industries, setting 
up the eco-system here, promoting international innovative cooperation and creating win-win 
situation, MOEA has replaced Multinational Innovative R&D Centers in Taiwan Program with Global R&D Innovation Partner Program. We will announce the new program as soon as it is thoroughly 
prepared and confirmed.  
 Page 101 (Para. 4.87) The government aims to further promote its manufactures of electric motor vehicles including 
“smart” electric cars. Electrical vehicles are exempt from Commodity Tax and the License Tax. The 
authorities intend to “promote key components” such as batteries, motors and controllers to be made locally by sponsoring thematic R&D plans and subsidy provision. 
 
Question 4 
With regard to Chinese Taipei’s tax exemption program for smart electric cars, are foreign 
suppliers entitled to receive those benefits similar to those received by domestic manufacturers? 
Also, with respect to the R&D plans and subsidy provision, is there any discrimination between local manufacturers and foreign suppliers?  Answer
： 
1. Commodity tax and vehicle license tax incentives apply to both imported and Taiwan-made 
electronic cars. 
2. Both domestic and foreign manufacturers that have set up business entities according to laws 
may apply for R&D subsidy. However, the eligib ility of funding depends on each individual 
subsidy provision. 
 PART III: Other Questions  
Question 5 
Since 1992, Chinese Taipei has not allowed Korean shipping companies to transport container 
cargo through the Japan-Chinese Taipei route, despite the fact that Chinese Taipei has allowed 
shipping companies from other countries to transport through the route. In addition, Tai Power, a 
public investment organization has officially excluded Korean shipping companies from biddings on the transportation of import cargo.  
 
We believe that these discriminatory measures against Korean companies are inconsistent with WTO rules, including GATS, and are certainly not in line with the spirit of the WTO, which calls for a fair and open multilateral trading system. 
 
Since there has been no progress on the issue de spite over 20 years of bilateral talks between 
Korea and Chinese Taipei, Korea would like to know how Chinese Taipei intends to address this 
issue. Furthermore, Korea strongly requests that  Chinese Taipei give a careful review to the 
concerns expressed by Korea and make a fair and reasonable decision on this issue.  
Answer: 
We take commitments in the WTO Agreem ents, including GATS, very seriously. 
 WT/TPR/M/302/Add.1 
 
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  MALAYSIA 
 
SECRETARIAT REPORT  
1. Page 9, Para 9, Main Trade Policy Developments  
The para reveals that Chinese Taipei is imposing rate band on approximately 150 products. Malaysia would like to get clarification from Chinese Taipei on its plans for tariff simplification, 
including for conversion of non-ad valorem tari ffs to more transparent ad valorem tariffs.  
 
Answer: 
In order to simplify our Customs tariffs, the Ministry of Finance consulted with other competent 
authorities about imposing ad valorem duty to replace alternate duty on certain agriculture 
products. 9 lines of agriculture and fishery produc ts adopted alternate duty and were put into the 
contents of our latest revised draft of Customs Im port Tariff in July, 2014. The Ministry of Finance 
will continue consulting other competent authorities about tariff simplification. 
 
2. Page 55, Para 3.98, Sanitary and Phytosanitary Requirements  
We note that “Chinese Taipei is a member of the World Organization for Animal Health (OIE), 
but is not a member of the Codex Alimentarius Commission or the International Plant Protection Convention (IPPC)”. Is there any particular rationale for not becoming a member of Codex and IPPC given that both 
had been recognized by Annex A of Agreement on Sanitary and Phytosanitary Measure (SPS) 
as relevant international standardizing bodies in SPS related issues. 
 
Answer: 
Although the Separate Customs Territory of Taiw an, Penghu, Kinmen and Matsu is currently not a 
member of the IPPC or Codex, its SPS measures are in compliance with the principles of the SPS 
Agreement and based on international standards, guidelines and recommendations developed by 
the relevant international organizations, including the Codex, OIE, and IPPC.  In line with the spirit of Article 9 of the SPS Agreement, we encourage Malaysia and other WTO 
Members to assist and support us in participating in the activities of the IPPC and other 
international organizations.  
Participation in international organizations is always one of the priorities for the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu. Th erefore, we absolutely would like to become a 
member of the Codex Alimentarius Commission. Mala ysia’s support would be highly appreciated. 
 
GOVERNMENT REPORT  3. Page 12, Para 4.14, Participation in the WTO  
The para notes Chinese Taipei’s participation in plurilateral initiative to liberalise trade in 
environmental goods based on 54 products of EGS in APEC. 
 
Appreciate if Chinese Taipei could share its expectation towards the negotiations as well 
indicate specific products on top of APEC list that it might be pushing for tariff elimination. 
 
Answer: 
We are of the view that the issues related to en vironmental protection and climate change should 
be properly addressed by joint effort among me mbers; therefore, together with 13 other WTO 
members, we have launched the negotiations on  trade in environmental goods. Through these 
negotiations, we will engage with other participants in the work of liberalizing trade in 
environmental goods. We also hope that the e ffort can help reinforce the function of the 
multilateral trading system and advance Members’ momentum in coming up with solutions for the 
Doha Development Agenda. 
 WT/TPR/M/302/Add.1 
 
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  MALAYSIA  (additional questions)  
 
SECRETARIAT REPORT  
MFN Tariffs 
 i. The Secretariat report in WT/TPR/S/302 paragraph 3.28 (page 40) has highlighted that the 
highest tariff rates apply to agricultural products and the range of tariff is much greater for 
agricultural products than for non-agricultural products. 
 
Additional Question No. 1:  What steps does Chinese Taipei has planned to bring the high tariffs 
in agricultural products in line with its overall average tariff levels or similar to average applied 
rate in non-agricultural products?  
Answer: 
We will further reduce the tariffs of agricultural products based on the outcomes of Doha 
negotiations. 
 
Tariff Rate Quotas  ii. We noted that paragraph 3.43 and 3.44 (page 45) of the Secretariat Report (WT/TPR/S/302) 
stated: 
 “3.43. When the annual quota for a product is used up, normal import duties will be applied to the 
out-of-quota imports (Table 3.7). The out-of-quota  rates can be ad-valorem or specific. Some non-
ad valorem rates (e.g. rice flakes) provide extr emely high protection, which makes out-of-quota 
imports almost prohibitive (Table 3.7). 
 
3.44. During 2009-12, TRQs for rice, longans and deer velvet were almost filled whilst those for bananas, betel nuts, mangoes, and shaddocks were barely used (Table A3.2). The authorities note that very low or zero usage of the TRQs is attributed to the fact that products intended for import 
fail to pass relevant SPS requirements.” 
 Additional Question No. 2:  In these circumstances, we would appreciate detail information on 
the relevant SPS requirements for TRQ products as well as its in-quota. 
 Answer: 
The Separate Customs Territory of Taiwan, Pe nghu, Kinmen and Matsu will provide relevant 
quarantine requirements to Malaysia through bilateral channels.  Additional Question No. 3:  What kind of review programme Chinese Taipei has undertaken to 
re-examine its TRQ administration of these products and make changes to its procedures in order 
to improve TRQ uptake, or remove tariff quota restrictions in cases where these are not being filled. 
 
Answer: 
We have imposed tariff rate quotas on several agricultural products in accordance with the 
accession commitment in 2002. We will further adjust the relevant measures of TRQ according to 
the outcomes of the Doha negotiation.  iii. In Paragraph 4.10 (page 86) of the Secretariat Report (WT/TPR/S/302) stated that there were 
no in-quota imports of banana, mango, and shad docks during the review period. According to 
the authorities, this was because the products did not meet the SPS requirements at the border inspections. 
 
Additional Question No. 4:  Appreciate Chinese Taipei to provide detail SPS requirements for 
these products. 
 
Answer: 
The Separate Customs Territory of Taiwan, Pe nghu, Kinmen and Matsu will provide relevant 
quarantine requirements to Malaysia through bilateral channels. 
 WT/TPR/M/302/Add.1 
 
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  Tax collected at the bo rder and other charges 
 iv. We noted that in the Secretariat Report (WT/TPR/S/302) in paragraph 3.46 (page 46) stated 
that the Specially Selected Goods and Services Tax has been imposed on "high-priced" 
products since 1 June 2011.  
 Additional Question No. 5: Appreciate if Chinese Taipei could provide the list of "high-priced" 
products. 
 Answer: 
Under the SSGST Act, the following goods and services are considered "high-priced" and subject to 
the SSGST:  
1. Passenger cars, yachts, airplanes helicopters, and ultra-light vehicles: Any passenger car that, 
including the driver’s seat, has nine seats or less and a selling price or taxable value of over 
NT$3 million. Yachts, airplane, helicopter, or ultra-light vehicle with a selling price or taxable 
value of over NT$3 million equally applied.  
2. Turtle shells, hawksbill, coral, ivory, furs, an d their products: Any of the aforesaid items that 
has a selling price or taxable value of over NT $500,000, excluding those that are not protected 
species under the Wildlife Conservation Act, or products made from them.  
3. Furniture: Any item of furniture with a se lling price or taxable value of over NT$500,000.  
4. Any membership rights with a selling price of over NT$500,000, except when in the nature of a 
refundable deposit. 
 Additional Question No. 6: How these products can be considered as "high-priced" products and 
services? 
 Answer: 
The consumption of listed goods and services has already exceeded general consumption level and is not only intended for daily use; thus, to maintain tax equity and increase the contribution to the tax revenue from high-income group, the SSGST is imposed on the listed goods and services.  
Additional Question No. 7:  Is there any guideline/requirement/mechanism to identify these 
products and services? 
 
Answer: 
In principle, the identification of taxable goods an d services is determined by the tax authority in 
accordance with practice, if there is any doubt, we will seek the competent authorities to assist in 
identification . 
 Import licensing  
v. In paragraph 3.58 and 3.59 (page 48) of the Se cretariat Report (WT/TPR/S/302), the import 
licensing requirements and procedures have remained largely unchanged since 2010, except that imports of small vehicles and chassis no longer require tariff-quota licences. Prior to 
applying for a licence, importers must obtain approval from the relevant sector specific 
authority and these conditions apply for reasons of, inter alia, requirements of trade agreements; essential security; and protection  of culture, humans, and the environment. 
 
Additional Question No. 8:  Could Chinese Taipei explain the rational and public policy objectives 
being pursued for subjecting the products to be controlled under an import licence? 
 
Answer: 
Traders may file import declaration for customs clearance by presenting import licence. This 
procedure is designed to simplify import procedures, enhance transparency of import regulations 
and procedures, reduce the number of licensing authorities, and to reduce the workload of 
Customs, without such import licence, customs may need to make more efforts on examination.  
Additional Question No. 9: What kind of review programme Chinese Taipei has undertaken to 
re-examine its Import Licensing regime? 
  
 WT/TPR/M/302/Add.1 
 
- 136 - 
 
  Answer: 
Through proposals submitted by industries, authorities, academic and traders or in coordination 
/consultation with the need of trade policy and ad ministration from the competent authorities, we 
constantly re-examines its Import Licensing regime. 
 
Additional Question No. 10:  Is there any plan for Chinese Taipei to reduce the use of Import 
License in the future? 
 
Answer: 
We will continue to coordinate relevant agencies to simplify import procedures, enhance 
transparency of import regulations and procedur es, reduce the number of items requiring import 
license, and will also continue to review remain ing NTMs and study the feasibility of further 
liberalization.  
Recent Development 
 vi. In paragraph 4.82 (page 100) of the Secretariat Report (WT/TPR/S/302), we note that the 
authorities have identified six "newly emerging industries" and four "intelligent industries" in 
the industrial development plan.  
 Additional Question No. 11:  Could Chinese Taipei explain in detail of these six "newly emerging 
industries" and four "intelligent industries" and its impact on the economic developments? 
 Answer: 
In order to accelerate industrial restructurin g, Executive Yuan has promoted the six newly 
emerging industries, including biotechnology, re fined agriculture, green energy, health care, 
tourism and cultural and creative. The strategy is to convert the direction of industrial 
development from purely manufacturing function to high value-added industries. Besides, four 
"intelligent industries" are Inventions and Patents of industrialization, the use of cloud centers, 
intelligent electric vehicles and smart green building. The strategy of four "intelligent industries" is to improve the overall competitiveness by these forward-looking intelligent industries. 
 WT/TPR/M/302/Add.1 
 
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  El SALVADOR 
 
Informe de la Secretaría: Párrafo 15: Principales líneas de evolución de la política comercial  Con respecto dicho párrafo , el informe indica:  
 
“…. Se han seguido concediendo diversos tipos de asistencia -como subvenciones a la producción y por tanto al comercio- a los productos y actividades agrícolas, pesqueros e industriales. Tras la 
eliminación de los incentivos fiscales previstos en la Ley de mejora de las industrias, se introdujo 
un nuevo incentivo en virtud de la Ley de innovación industrial para apoyar las actividades de innovación y de investigación y desarrollo …”   
Question No. 1:  En dicho sentido mucho, nos gustaría conocer de parte de las Autoridades del 
Taipei Chino mayor información sobre el contenido de dicha ley así como el nuevo tipo de incentivos que bajo la misma se comprende.  
 
Answer: 
When formulating the “Statute for Industrial Innovation,” the government at the same time 
decided to lower our business income tax rate from  25% to 17%, in line with the principles of 
“reducing tax burdens and simplifying tax administra tion.” All enterprises benefit from this reduced 
tax burden. The statute, therefore, only includes  tax incentives for investment in research and 
development, as well as subsidies for industry innovation endeavors, so as to encourage 
enterprises to invest in innovative R&D and thereby further enhance their competitiveness. 
 Sin más sobre el particular, agradeciendo incluir la pregunta antes relacionadas, conforme al 
procedimiento establecido en la división a su digno cargo,  WT/TPR/M/302/Add.1 
 
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  ECUADOR 
 
Informe de la Secretaría de la OMC 1. De conformidad al Capítulo 3, página 43, párrafo 3.10, respecto de los acuerdos de 
reconocimiento mutuo de Operadores Económicos Autorizados firmados por Taipei Chino con los 
Estados Unidos, Singapur e Israel, en virtud de los cuales los OEA gozan de la facilitación del comercio en el Taipei Chino y viceversa. 
 
El párrafo precedente (3.9), menciona alguna s ventajas que ofrece la condición de OEA 
(dependiendo del tipo de certificado que se le  otorgue al operador económico) como son la 
reducción de los controles aduaneros y procedim ientos aduaneros simplificados, entre otros. 
 
Question No. 1: ¿ Podría indicarnos cómo este tipo de acuerdos se ajusta a las disposiciones en 
materia de trato general de la nación más favorecida (reglamentos y formalidades relativos a las 
importaciones), cuando hablamos de importaciones de producto similares originarios de los demás 
Miembros de la OMC?  
Answer: 
The AEO mutual recognition cooperation and arrangements between Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu and the United States, Singapore and Israel do not adjust General Most-Favoured-Nation Treatment related to  enforcement rules or procedures for importing 
any “products” from WTO members. The benefits provided to Authorized Economic Operators are 
based on World Customs Organization SAFE Framework to reduce customs controls and simplify customs procedures to the “cargo” of “AEO.” The measure is one of customs risk management 
mechanisms. 
 2. De conformidad al Capítulo 3, página 72, párra fo 3.145. “El impuesto al consumo se basa en el 
precio de venta del fabricante menos el impuesto al consumo aplicado a otros productos utilizados 
como insumos e incluidos en el precio (para los productos de fabricación local), o en el valor en aduana más los derechos de aduana correspon dientes (para los productos importados)”.  
 
Question No. 2: ¿Podría indicarnos si la forma de cálculo del impuesto al consumo para los 
productos de fabricación nacional, que se comercializan en el mercado interno, se ajustaría a las 
disposiciones en materia de trato nacional, y si este cálculo afectaría las condiciones de 
competencia otorgándoles un trato menos favorable a los productos importados similares, 
directamente competidores o sustituibles? 2   
Answer: 
The Commodity tax is a kind of single-stage sales tax to be levied on taxable commodities as 
specified in the Statute for Commodity Tax at the time such goods are dispatched from a factory or are imported. The commodity tax base of domestically-produced goods is the manufacturer’s 
selling price less the commodity tax included in the price. The tax base of imported commodities is 
the total amount of the value of the customs duty payable prescribed by the customs import tariff 
and customs duty. The commodity tax base or tax rates or tax amount is equally imposed on the 
imported goods and locally-produced goods. The requirements are consistent with the 
international consumption tax practices; there is no unfavorable treatment for imported goods.  
3. De conformidad al Capítulo 3, página 75, párrafo 3.160 “Además de patrocinar actividades de 
I+D, el Fondo Nacional de Desarrollo es uno de los principales organismos de financiación del Programa para ayudar a las industrias a adaptarse a la liberalización del comercio, que tiene por objetivo apoyar la liberalización en el sector manufacturero y de los servicios, y reducir sus efectos 
negativos, especialmente en las pymes”.  
 Question No. 3: ¿Podría indicarnos cómo y quién determina las industrias que serán objeto de 
dicha ayuda? De igual manera, apreciaríamos conocer si la identificación de estas industrias se las 
realiza antes de iniciar un proceso de liberalización o como parte de una iniciativa propia de liberalización de esos sectores.  
 
Answer: 
1. Subsidized business evaluation unit and procedure: The Ministry of Economic Affairs conducts 
comprehensive research and data analysis on industries that are at risk of being negatively 
impacted by trade liberalization or industries  that will require greater guidance. Upon the WT/TPR/M/302/Add.1 
 
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  approval of inter-departmental assessment by the “Trade Liberalization Industry Guidance 
Project Team,” specific measures will be adopted,  including “Low-Interest Financing for Industry 
Revitalization Guidance” by the National Development Fund. 
2. Low-Interest Financing for Industry Revitalization Guidance: According to the “Trade 
Liberalization Industry Revitalization Guidance Pr eferential Loan Outline” formulated by the 
National Investment Fund, a total of NT$20 billion,  or NT$2 billion annually, will be available for 
preferential loans to businesses that are negative ly impacted by trade liberalization. Financial 
institutions will be commissioned for the processing of preferential financing in order to facilitate 
the revitalization guidance and structural adjustments of affected industries, thereby diminishing the impact of trade liberalization. 
 
4. De conformidad al Capítulo 3, página 81 - 82, cuadro 3.19 “Principales características de la Ley 
del comercio leal”, respecto de la Prohibición de la competencia desleal consistente en “mantener el precio de reventa de los bienes”.  
 
Question No. 4: ¿Apreciaríamos conocer cómo las medidas de sostenimiento de precios de 
mercado que se aplica para algunos productos agrícolas (o de estabilización de los precios cuyo 
objetivo es mantener los ingresos de los agricultores: documento G/SCM/N/220/TPKM/Rev.1) se 
ajustan a esa disposición de la prohibición de mantener el precio de reventa de los bienes?   Answer:  
To safeguard food security and farmers’ income, we implement the policy of guaranteed price for paddy rice. The policy is designed for the government to purchase paddy rice with a guaranteed price from farmers. It is not relevant to the Article 18 of Fair Trade Act. 
 
5. De conformidad al Capítulo 3, página 89, Cuadro 3.22 “Principales modificaciones introducidas a la Ley de patentes entre 2011 y 2014”, en lo relacionado a la concesión de licencias obligatorias 
“Podrán concederse licencias obligatorias para producir medicamentos contra el VIH/SIDA, la 
tuberculosis, la malaria y otras epidemias a fin de exportarlos a países con insuficiente capacidad de fabricación en el sector farmacéutico”.   
Question No. 5: Cómo se ajusta esta concesión a las disposiciones contenidas en el párrafo 31, 
literal f del ADPIC. 3 
 
Answer: 
We will not grant compulsory license for the purpose of exporting pharmaceutical products to 
countries with insufficient manufacturing capacities in the pharmaceutical sector, therefore table 
3.22 of Chapter 3 “Major amendments to the Pa tent Act from 2011 to 2014” conforms with the 
TRIPS Article 31-f.  6. De conformidad al Capítulo 4, página 100, párrafo 4.10 “Según las autoridades, no ha habido 
importaciones dentro del contingente de bananas, mango y pomelos (toronjas) durante el período 
objeto de examen, porque los productos no cumplen con las prescripciones sanitarias y fitosanitarias en los controles fronterizos”. 
 
Question No. 6:  ¿Podría indicarnos Taipei Chino a qué tipo de prescripciones sanitarias y 
fitosanitarias se refieren?  
 
Answer: 
Some WTO Members raised the market access issues of the above-mentioned plant products to us. The pest risk analysis is in progress according to the phytosanitary regulations, which are 
established in accordance with relevant international standards, guidelines and recommendations 
stipulated in the WTO/SPS Agreement. Therefore, there have been no border inspection cases.  
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