WT/TPR/M/377/Add.1  
28 January 2019  
(19-0429) Page: 1/150 
Trade Policy Review Body  
12 and 14 September 2018  Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  
TRADE POLICY REVIEW  
SEPARATE CUSTOMS TERRITORY OF TAIWAN , PENGHU , KINMEN AND MATSU 
MINUTES OF THE MEETI NG 
Addendum  
Chairperson: H.E. Mr. Eloi Laourou (Benin)  
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by  the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu .1 
 
 
Organe d'examen des politiques commerciales  
12 et 14 septembre 2018  
EXAMEN DES POLITIQUE S COMM ERCIALES  
TERRITOIRE DOUANIER DISTINCT DE TAIWAN , PENGHU , KINMEN ET MATSU 
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Président : S.E.  M. Eloi Laourou (Bénin)  
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  le Territoire Douanier 
Distinct de Taiwan, Penghu, Kinmen et Matsu .1 
 
 
Órgano de Examen de las Políticas Comerciales  
12 y 14 de septiembre de 2018  
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
TERRITORIO ADUANERO DISTINTO DE TAIWÁN , PENGHU , KINMEN Y MATSU 
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Eloi Laourou (Benin)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros d e la OMC, así como las respuestas facilitadas por  el 
Territorio Aduanero Distinto de Taiwán, Penghu, Kinmen y Matsu .1  
                                                
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/377/Add.1  
 
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    Contents  
QUESTIONS SUBMITTED IN WRITING  ................................ ................................ ..............  3 
1  KINGDOM OF SAUDI ARABIA  ................................ ................................ .......................  3 
2  SINGAPORE  ................................ ................................ ................................ ..................  5 
3  HONG KONG, CHINA  ................................ ................................ ................................ ..... 7 
4  CHINA  ................................ ................................ ................................ ........................  12 
5  USA ................................ ................................ ................................ ............................  19 
6  UKRAINE  ................................ ................................ ................................ ....................  33 
7  JAPAN  ................................ ................................ ................................ ........................  42 
8  AUSTRALIA  ................................ ................................ ................................ ................  44 
9  SWITZERLAND  ................................ ................................ ................................ ...........  49 
10  NEW ZEALAND  ................................ ................................ ................................ ..........  53 
11  BRAZIL  ................................ ................................ ................................ .....................  57 
12  COLOMBIA ................................ ................................ ................................ ................  59 
13  THAILAND  ................................ ................................ ................................ ................  72 
14  BRAZIL  ................................ ................................ ................................ .....................  75 
15  ARGENTINA  ................................ ................................ ................................ ..............  84 
16  PHILIPPINES  ................................ ................................ ................................ ...........  86 
17  KINGDOM OF SAUDI  ARABIA (ADDITIONAL)  ................................ .........................  103  
18  CHINA (ADDITIONA L) ................................ ................................ ............................  111  
19  USA (ADDITIONAL)  ................................ ................................ ................................  116  
20  MALAYSIA  ................................ ................................ ................................ ..............  118  
21  UKRAINE  ................................ ................................ ................................ ................  122  
 
QUESTIONS SUBMITTED VIA THE TPR Q&A ONLI NE SYSTEM  ................................ ....... 123  
1  ICELAND  ................................ ................................ ................................ ..................  123  
2  EU ................................ ................................ ................................ ............................  125  
3  CANADA  ................................ ................................ ................................ ...................  141  
4  GUATEMALA  ................................ ................................ ................................ .............  146  
5  EL SALVADOR  ................................ ................................ ................................ ...........  147  
6  HONDURAS ................................ ................................ ................................ ...............  148  
7  REPUBLIC OF KOREA  ................................ ................................ ................................  150  
  WT/TPR/M/377/Add.1  
 
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  QUESTIONS SUBMITTED IN WRITING  
1  KING DOM OF SAUDI ARABIA  
WT/TPR/S/377 – WTO Secretariat Report  
2. Trade and Investment Regime  
2.4 Investment Regime  
2.4.2 Business environment  
Page 39, para 2.49  
An online portal, Company, Business and Limited Partnership On e-Stop Services Request 
(https://onestop.nat.gov.tw ), established in 2011, aids companies to simplify the procedures for 
business setups and expands the service menu offered to enhance the facility of the operatin g 
business environment.  
Question N°1:  The Kingdom of Saudi Arabia appreciates the efforts of Chinese Taipei to facilitate 
and simplify the procedure for business setups. Please provide more details on the online portal of 
One-Stop Services, What kind of se rvices can be offered to Saudi Arabia's investor to establish 
company?  
Answer :  
1. The Company, Business and Limited Partnership One -Stop Service aims to meet the one -stop 
full service needs of applicants. It integrates company registration processes involving various 
agencies into an online single window portal.  
2. Please note that, in order to verify their identity, applicants must use a digital citizen certificate 
(a type of electronic signature issued by the Separate Customs Territory of Taiwan, Pengh u, 
Kinmen and Matsu) to complete their applications. Foreign investors may apply for digital citizen 
certificates or entrust a person who has a digital citizen certificate to file the application.  
3. Trade Policies And Practices By Measure  
3.1 Measure Dire ctly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements / Customs procedures and 
requirements and customs valuation  
3.1.1.1 Customs procedures  
Page 42 para 3.8  
Since August 2013, Customs has operated the Customs -Port-Trade (CPT) Single  Window, which 
allows documentation related to customs procedures including customs declarations, trade licensing 
and SPS permits, to be submitted and processed electronically. As from 11 November 2015, by 
simply transmitting the completed consolidated imp ort declaration with relevant permits to the CPT 
Single Window System, importers are allowed to file their import declaration to Customs while 
simultaneously applying to licensing agencies for inspection, thus enhancing the integration of 
interagency busin ess services and simplifying clearance procedures. Traders who link to the CPT 
Single Window through a private information network service provider must pay transmission fees 
whose ceiling is regulated by the MOF; no fees are charged to traders who link di rectly to the System. 
According to the authorities, 99.99% (99.95% in 2013) of customs declarations were processed 
electronically in 2017, and 70.93% (67% in 2013) of customs duties were paid online.  
Question N°2:  
The Kingdom of Saudi Arabia acknowledges t he Customs -Port-Trade (CPT) system for facilitate 
export and import trade. We would like to know more details on this on -line platform. Especially how 
CPT system could assist importers from Middle East to accelerate the clearance procedure?   
Answer :  
The m ain feature of the CPT Single Window is to serve as an entry point for traders to submit to 
Customs or other government agencies their standardized electronic documents, including cargo 
manifests, customs declarations, quarantine and phytosanitary certific ates.. In addition, multiple 
useful services are offered to traders, such as e -Payment for duties, online queries about the 
processing status of cargo, and applications for duty and tax refunds. However, all the services 
offered by the CPT Single Window ar e only available to registered traders. Foreign traders, including WT/TPR/M/377/Add.1  
 
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  importers from the Middle East, can use the CPT services through local agents or brokers. The CPT 
Single Window will save applicants' time and reduce costs by processing documents online an d 
cutting through red tape.  
  WT/TPR/M/377/Add.1  
 
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  2  SINGAPORE  
WT/TPR/S/377 – WTO Secretariat Report  
2. TRADE AND INVESTMENT REGIME  
2.4 Investment Regime  
2.4.1 General investment regime  
Page 37, para 2.38  
Singapore Question N°1:  The WTO Secretariat Report notes that the 2012 amendments to the 
"Statute for Investment by Foreign Nationals", which were aimed at loosening restrictions so that 
investors may report to the competent authority after investing in Chinese Taipei, were not passed 
by the legislature. The Report also notes that Chinese Taipei's authorities are working to revise the 
draft of the amendment and will submit it through the regular legislative process in future, and in 
this context they are currently giving consider ation to removing the pre -investment 
screening/review requirement and replacing it with a post -investment registration mechanism. 
Singapore would like to seek clarification on:  
(i) The targeted timeline for the revised draft amendments to the Statute for Inves tment by 
Foreign Nationals to be passed and implemented; and  
(ii) The areas/sectors for which the pre -investment screening/review requirement would be 
removed.  
Answer :  
1. We have conducted public hearings on the draft amendments to the Statute for Investment by 
Foreign Nationals. The draft amendments will go through the legislative process after public 
opinion review is completed.  
2. The draft amendments provide that prior approval will only be required for investments above a 
certain amount, or in exceptional cases , such as investments in sectors on the Negative List for 
Investment by Overseas Chinese and Foreign Nationals, or other special circumstances set forth 
by the competent authorities.  
3. Trade Policies and Practices by Measure  
3.1 Measures Directly Affectin g Imports  
3.1.1 Customs procedures, valuation, and requirements/Customs procedures and 
requirements and customs valuation  
Page 42, para 3.6  
Registration requirements remain in place. In order to engage in import/export business, a firm 
must register as an importer/exporter with the Bureau of Foreign Trade (BOFT) under the Ministry 
of Economic Affairs (MOEA). Branch offices of overseas firms re gistered with the authorities may 
apply for registration. Other than these branch offices, non -permanent residents are not normally 
allowed to engage in import/export activities on a professional basis. An exporter/importer whose 
trade performance in the p receding year has attained a prescribed turnover, may benefit from 
certain preferences. The use of customs brokers remains voluntary. A customs broker who satisfies 
certain criteria may seek approval for a reduced inspection ratio, valid for one year (rene wable).  
Singapore Question N°2:  The WTO Secretariat Report notes that a customs broker who satisfies 
certain criteria may seek approval for a reduced inspection ratio, valid for one year (renewable). 
Could Chinese Taipei elaborate on the set of criteria t hat these customs brokers are required to 
satisfy in order to attain reduced inspection ratio?  
Answer :  
1. Any declaration shall be checked by the Customs computer system and may be selected for 
further cargo examination. In accordance with Article 13 of the Regulations Governing the 
Implementation of Automated Cargo Clearance Procedures, cargo shall be cleared through 
following methods:  
(1) Channel one (C1): Cargo is released without review of written documents or physical 
examination;  
(2) Channel two (C2): Only revi ew of written documents i required prior to release of cargo; 
or, WT/TPR/M/377/Add.1  
 
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  (3) Channel three (C3): Both review of written documents and physical examination are 
required prior to release of cargo.  
2. According to the Operational Regulations on Customs Broker Application f or Reduced Rate of 
Inspection of Goods, customs brokers can submit an application for a reduced inspection ratio 
to Customs before the end of February each year. The inspection ratio of goods declared by 
qualified customs brokers may be reduced if approved  by Customs after assessment.  
3. According to the above regulations, Customs may reduce the inspection ratio of goods applicable 
to a customs broker, taking into consideration whether: the customs broker has been established 
for more than three years; its ann ual error rate of goods declarations did not exceed 
three -thousandths in the previous year; the customs broker was not penalized pursuant to the 
Customs Act and relevant laws in the previous two years; and the customs broker has promptly 
participated in training sessions held by Customs.  
3.1 Measure Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements / Customs procedures and 
requirements and customs valuation  
Page 42 -44, para 3.8 and 3.12  
Singapore Question N°3:  The WTO Secret ariat Report notes that Chinese Taipei Customs has 
operated their Customs -Port-Trade (CPT) Single Window since Aug 2013 and we applaud Chinese 
Taipei Customs' efforts in establishing a single window to facilitate trade and simplifying clearance 
procedures.  Are all the agencies involved with regulating import and export on board the CPT Single 
Window? If not all agencies are on board, what is the timeline that Chinese Taipei Customs is looking 
at to bring all agencies on board into the system?  
Additionally:  
(i) Is this CPT Single Window connected to Advance Cargo Import Information System?  
(ii) Regarding the simplified declarations filed by the Maritime Express Handling Units of Taipei 
Harbour International Logistics Corporation and the "Taiwan International Ports Log istics 
Corporation", are they filed in the CPT Single Window or the Advance Cargo Import Information 
System?  
(iii) Is there a reason why only these 2 corporations are allowed to file simplified declarations?  
Answer :  
1. No, not all agencies are involved with the CP T Single Window. A few of the licensing agencies 
have not yet connected to the CPT Single Window due to cost -benefit considerations, as they 
only deal with a very limited number of cases each year. For such agencies, manual operation 
would suffice. For exa mple, the import and export of controlled drugs are specially controlled 
goods governed by provisions of international agreements, as such the signatures on consent 
forms must be verified by Customs.  
2. Yes, they are interconnected, but they were established for different purposes. The CPT Single 
Window aims to serve not only as an entry point for traders to lodge documents related to the 
clearance procedures, but also as a platform linking participating government agencies for 
information sharing. However, th e Advance Cargo Information System is an internal system of 
Customs, and is responsible for helping Customs officers conduct the clearance of 
imports/exports.  
3. The Maritime Express Handling Unit is one type of customs warehouse designed for the entry 
and st orage of express cargo. The Taipei Harbour International Logistics Corporation and the 
Taiwan International Ports Logistics Corporation are owners of the Maritime Express Handling 
Unit. Additionally, the simplified declarations are made and submitted by ma ritime express 
companies, not by the keepers of customs warehouses.  
The simplified declarations are first submitted by maritime express companies to the CPT Single 
Window, and then transmitted from the CPT Single Window to the Customs' Advance Cargo Import  
Information System. As clarified above, the simplified declaration clearance procedure is applicable 
to any express company that meets the requirements of the relevant regulations.  
  WT/TPR/M/377/Add.1  
 
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  3  HONG KONG, CHINA  
WT/TPR/S/377 – WTO Secretariat Report  
2. TRADE AND INV ESTMENT REGIME  
2.4 Investment Regime  
2.4.1 General investment regime  
Page 36 -37, para 2.37 -2.38 
For the purpose of promoting investments in the "5+2" innovative industries, the report says 
'Chinese Taipei is using both tax and non -tax incentives'. On the other hand, 2012 amendments to 
the Statute for Investment by Foreign Nationals were not passed by the legislature… [the MOEA] 
will revise the draft of the amendment and submit it through the regular legislative process. In this 
context, the authorities ind icated that consideration is being given to removing the pre -investment 
screening/review requirement and replacing it with a post -investment registration mechanism.'  
Hong Kong, China N°1:  We are interested to know if there would be incentives for foreign 
investment in the "5+2" innovative industries, and the latest development regarding the amendment 
to the "Statute for Investment by Foreign Nationals".  
Answer :  
1. Though we do not provide specific incentives for foreign investment in the "5+2" Innovative 
Industries, both tax and non -tax incentives are nevertheless available for investments in all 
sectors. In order to develop a fair and competitive tax environment, we enacted the Statute for 
Industrial Innovation (SII), under which tax incentives are mainly  applied to R&D expenditures. 
With regard to non -tax incentives, taking into account the need for further development of 
enterprises, we provide incentives such as support for R&D and land rent support.  
2. Information about the "5+2" Innovative Industries is available on the following webpage: 
(InvesTaiwan): https://investtaiwan.nat.gov.tw/showPage?lang=eng&search=426 . 
3. We have conducted public hearings on the draft amendments to the S tatute for Investment by 
Foreign Nationals. The draft amendments will go through the legislative process after public 
opinion review is completed.  
4. The draft amendments provide that prior approval will only be required for investments above a 
certain amoun t, or in exceptional cases, such as investments in sectors on the Negative List for 
Investment by Overseas Chinese and Foreign Nationals, or other special circumstances set forth 
by the competent authorities.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.2 Measures Directly Affecting Exports  
3.2.5 Export finance, insurance, and guarantees  
Page 59, para 3.66 -3.67 
The Export -Import Bank (Eximbank) provides export credit to 'key export expansion markets chosen 
by the MOEA including the United States, Turkey, Vi et Nam, China, Indonesia, India, Germany, 
Malaysia, South Africa, Mexico, the Philippines, and the United Arab Emirates'.  
Hong Kong, China N°2:  Is export credit from Eximbank provided for exports to markets other than 
the key export expansion markets? We a re interested to know the basis or any objective criteria in 
choosing the key export expansion markets, and whether the list of markets is subject to review.  
Answer :  
1. The export credit provided by Eximbank assists our enterprises in exporting not only to the key 
export expansion markets but also to the rest of the world. The "key export expansion markets 
chosen by the MOEA" are based on analysis of import and export statistics from various countries 
and consultations with industry associations.  
2. Eximbank pr ovides export credit to exporters for all markets; it is not limited to "key export 
expansion markets". All buyers are subject to underwriting, including those for "key export 
expansion markets".  WT/TPR/M/377/Add.1  
 
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  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affec ting Production and Trade  
3.3.3 Sanitary and phytosanitary measures  
3.3.3.1 Food Standards -setting framework  
Page 72, para 3.107 -3.109  
'The MOHW remains responsible for food safety with its key implementing agency, the FDA, 
responsible for consumers' health protection…. During the review period, the FDA continued to 
amend food -related laws and regulations to comply with international standards. Its focus areas 
included: amendments to food regulatory standards and product review; management of food 
sources, in particular implementing a food safety control system and border inspection of food; 
inspection of food additives; monitoring of the food safety chain including post marketing monitoring, 
sampling and testing of food; and food safety and sanitation management.'  
Hong Kong, China N°3:  Could Chinese Taipei advise in more detail the legislation and regulatory 
measures introduced to improve food safety of locally produced food items for consumer protection? 
Are figures collected to measure the effectiveness of the new legislation and meas ures? If yes, what 
is the result?  
Answer :  
1. To date, the Food and Drug Administration under the Ministry of Health and Welfare has achieved 
the following results from implementing this new policy:  
(1) Harmonizing domestic statutory standards and assessment cri teria with international norms;  
(2) Expanding the spectrum of the key food industries on the government's watch list;  
(3) Increasing the compliance rate of market food products at random sampling tests to 98.1% 
for imported foods and 96% for domestically produced foods;  
(4) Imposing severe penalties on unscrupulous businesses; and  
(5) Successfully implementing the whistleblowing protection clause.  
2. Food safety -related laws and regulations can be found at the TFDA website: 
http://www.fda.gov.tw/EN/law.aspx?cid=16&pn=1 .  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
Page 76 -78, para 3.125 -3.131  
'During the review period, the FTA was amended three times…Significant amendments on the aspect 
of free competition included…the distinction of free competition issues from fair competition issues.'  
Hong Kong, China N°4:  Could Chinese Taipei share with us more details  about the respective 
amendment, the considerations and significance for having the distinction, and the objective criteria 
for distinguishing free and fair competition issues?  
Answer : 
1. The amendments to the FTA are as follows:  
(1) The February 2015 amendments  include:  
i. The name of the competent authority of the FTA was changed to the Fair Trade 
Commission (FTC) in order to accommodate the organizational restructuring of the 
government.  
ii. Amendments to make the structure and content of the regulations in the FTA more 
reasonable and appropriate are as follows:  
(i) In addition to the trade association organized by businesses, any other organization 
lawfully established to promote the interests of its members is also deemed an 
enterprise as referred to in the FTA.  
(ii) Merger  regulations are widely revised. (a) It is specified that the amounts of shares 
held by and the turnover of affiliate businesses (sister companies included) are to be 
calculated together, whereas situations in which controlling shareholders are natural 
persons or groups are also covered by new regulations, so that effective control of 
concentration of economic power in the market can be achieved and evasion of the 
law can be prevented. (b) A regulation has been added to give the FTC the authority 
to announc e the sales threshold for any specific industry in order to cover the 
situations in different industries and markets. (c) The review period has been 
extended to 60 days in order to allow the FTC more time to solicit opinions from WT/TPR/M/377/Add.1  
 
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  industrial, government and  academic sectors on merger cases incurring critical 
disputes, and to make detailed assessment.  
(iii) Provisions on circumstantial evidence for concerted actions have been added. It is 
specified that the FTC may take into consideration market conditions, product  or 
service characteristics, cost and profit, and rationality of behavioural economics in 
making a presumption that an agreement for concerted action does exist, in order to 
increase effectiveness of investigations and deter illegal concerted action. In ad dition, 
catch -all provisions regarding exceptional permission have been added. Under these 
provisions , any application can be filed with the FTC if the applicant holds that the 
concerted action is beneficial to the economy as a whole and in the public inte rest. 
Additionally, the time limit for carrying out the concerted action approved by the FTC 
and the extension of such period was also amended from three years to five years.  
iii. Different amounts of fines have been established for different types of violation s. The fine 
for conduct leading to a restriction on competition has been doubled, and the period given 
to the competent authority to impose sanctions has been extended from three years to 
five years in order to make fine imposition more reasonable and to i ncrease deterrence.  
iv. An investigation suspension system has been added. Enterprises are encouraged to take 
the initiative to stop or correct their activities, whereas administrative agencies can 
exercise their supervisory authority to eliminate practices th at are likely to harm the 
market order at the earliest time.  
v. Provisions exempting parties from the petitioning procedure have been added, allowing 
parties to directly administrative suits with judicial agencies in response to sanctions 
imposed by the FTC a ccording to the FTA.  
(2) The 24 June 2015 amendment authorized the FTC to set up an anti -trust fund and provide 
rewards for the reporting of illegal concerted actions.  
(3) To make merger reviews more comprehensive, the 14 June 2017 amendments revised the 
merger re view period from 30 calendar days to 30 working days. In addition, if one of the 
enterprises in the merger does not agree to the merger, the FTC shall ask for such 
enterprise's opinion.  
2. In February 2015,  one of the legislative purposes of the FTA was amend ed from "ensure free 
competition" to "ensure free and fair competition" (Article 1 of the FTA) in accordance with the 
current legal system. After this amendment, the FTA now mainly regulates restrictive practices 
such as monopolies, mergers and concerted a ctions, as well as unfair practices. The former 
regulations are to remove restrictive competition practices and promote free market competition. 
The latter regulations are to eliminate unfair competition practices and promote fair competition 
between enter prises. Therefore, Article 1 of the FTA was amended accordingly.  
4. TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.2 Financial services  
4.4.2.2 Securities  
Page 125, para 4.123  
'Amendments were made to the Securities Trust and Consulting Act in 2018 in order to increase the 
competitiveness of the domestic asset management industry and promote the sound operation of 
securities investment trust and consulting enterprises.'  
Hong Kong, China N°5:  We are interested to know more details on the amendment. In particular,  
we would like to know how Chinese Taipei could ensure a level playing field for foreign services 
providers while enhancing the competitiveness of the domestic asset management industry.  
Answer : 
The amendments to the Securities Investment Trust and Cons ulting Act were published on  
31 January 2018. The key elements are as follows:  
(1) Article 11 of the amendments: The limit of the total number of offerees in a private placement 
of a securities investment trust fund is raised from 35 persons to 99 persons.  
(2) Article 17 of the amendments: The operational procedures for investment activities of a 
securities investment trust enterprise has been streamlined. The requirement for a 
standardized written report on the securities investment trust enterprise's investments or 
transactions with fund capital has been waived, and such operational activity is now managed 
through the internal control system of the enterprise.  
(3) Article 62 of the amendments: The restriction on discretionary investment operation has been 
lifted for c ustomers meeting specific criteria. In the case of a discretionary investment business WT/TPR/M/377/Add.1  
 
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  customers who meet conditions set forth by the competent authority, the securities investment 
trust enterprise or securities investment consulting enterprise and the cus tomer may between 
themselves agree on matters including the custody of the fiduciary investment assets, matters 
required to be completed before signing a contract, and account processing.  
(4) Article 16 -1 and Article 111 of the amendments: The additional provi sion and amendment 
specify the legal basis for bankruptcy remoteness of a securities investment trust enterprise 
and a securities investment consulting enterprise with regard to its acquisition of assets on 
behalf of the investor, and sets forth related pe nalties.  
(5) Article 16 -1 of the amendments: Assets lawfully acquired in the name of a securities investment 
trust enterprise or a securities investment consulting enterprise on behalf of its investors shall 
be kept separate and independent of the enterprise's  own property. Creditors may not make 
any claim or exercise any other right against the assets under the preceding paragraph to 
satisfy any debt owed by a securities investment trust enterprise or a securities investment 
consulting enterprise with respect to its own property.  
(6) Article 105 -1 of the amendments: The additional provision provides for the criminal liability of 
securities investment trust and consulting enterprise personnel for breaching their duties.  
The amendments are for the purpose of protecti ng consumer rights, improving the criminal 
responsibility of domestic firms, and streamlining securities investment trust procedures. These 
measures do not include foreign asset management businesses, and hence will not affect the level 
playing field for f oreign services providers in our jurisdiction.  
4. TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.2 Financial services  
4.4.2.2 Securities  
Page 126, para 4.126  
'In September 2015, the investment cap on securities trading by banks in the exchange market and 
over-the-counter -market was raised from 25% to 30%; a provision was also added allowing the 
limit to be adjusted by the competent authority in line with the economic and financial situation.'  
Hong Kong, China N°6:  What are the criteria and factors in deciding wh en and how to adjust the 
investment cap limit in line with the economic and financial situation? To what extent could the 
investment cap percentage be adjusted under such situation?   
Answer :  
1. On 17 September 2015, the FSC announced an amendment to (1) the 3rd point of the Directions 
Governing Limitations on Types and Amounts of the Securities in which a Commercial Bank May 
Invest. Key amendments include:  
(1) Regarding the total cost of the original acquisition cost by a commercial bank within or 
outside of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu as 
investment, the calculation basis was raised from 25% to 30% of the commercial bank.  
(2) A provision was also added to authorize the competent authority to adjust this calculation 
basis of the c ommercial bank depending on the domestic economic and financial 
situation.  
2. In order to cope with the increasing scale of the global financial market and diversified types of 
financial products, the increase in this calculation basis will improve the effici ency of banks' 
capital utilization and enhance the investment momentum of banks. The FSC will take domestic 
and overseas financial supervisory practice and trends into consideration and maintain safe and 
sound financial systems in order to further relax fi nancial regulations.  
4. TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.4 Transport services  
4.4.4.1 Maritime transport  
Page 131, para 4.156  
'Agreements between overseas and local operators on freight rates and charges must be filed with 
the MOTC; if an agreement is considered to impede the "order of shipping or economic 
development", the MOTC may order a revision of the agreement within a specific period.'  
Hong Kong, China N°7:  What are the criteria and factors that would constitute an impediment to 
the order of shipping or economic development? How many cases were ordered for a revision of the 
agreement during the review period?   WT/TPR/M/377/Add.1  
 
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  Answer : 
In practice, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu's shipping 
authority respects the mark et mechanism, and will not intervene in a carrier's price decision -making 
process, unless such carrier is engaged in concerted pricing or other extreme acts which impact 
consumers. There has been no case in which an authority has ordered a revision during the review 
period.  
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  4  CHINA  
WT/TPR/S/377 – WTO Secretariat Report  
SUMMARY  
Page 9, para 1  
Since its previous Trade Policy Review in 2014, the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu's (Chinese Taipei) relatively strong fundamentals and well developed 
outward -looking economy have helped maintain macro -financial stability and ensure the resilience 
of its export -led economy."  
China N°1 : Could Chinese Taipei specify the objectives of its export -led economy?  
Answer : 
The focus of our econ omic policies includes: expanding domestic consumption, investment, export 
performance, and driving income and wage growth. To achieve these goals, we have stepped up our 
efforts in implementing structural reforms, so as to cope with the challenges of the digital economy. 
The government is committed to pursuing inclusive growth, and creating a more prosperous, stable 
and happier society.  
China N°2 : What measures were taken to ensure the resilience of its export -led economy?   
Answer :  
Our efforts include:  
1. Promoting R&D and smart manufacturing;  
2. Accelerating domestic investment;  
3. Enhancing innovation capabilities; and  
4. Diversifying overseas business deployment.  
SUMMARY  
Page 9, para 2  
"During the review period, trade and trade -related structural reforms (e.g. in  the areas of trade 
facilitation, taxation, competition policy and intellectual property rights) were undertaken."  
China N°3 : During the review period, what measures did Chinese Taipei take to promote trade 
facilitation and trade -related structural reforms ?  
Answer :  
1. During the review period, we undertook several trade facilitation initiatives. For example, we 
accepted the WTO Trade Facilitation Agreement (TFA) on 17 August 2015 and submitted our 
Category A notification in June 2014, and committed to implem enting all provisions in Articles 1 
through 12 upon TFA's entry into force. In addition, we cooperated with other trading partners 
on electronic certificates of origin. Electronic certificates of origin (ECO) mechanisms have been 
established with both Chin a and the Republic of Korea, and a Memorandum of Understanding 
(MOU) with Viet Nam on Collaboration on the Project for the Cross -border Exchange of 
Certificates of Origin was signed in July 2015. An MOU on ECO with Belgium was signed in 
November 2016.  
2. In 2015, a program on intelligent mobile inspection, enabling customs inspections through a 
platform built with 4G internet connection or wireless mobile devices, has been established for 
real-time inspection information to be received, thus raising the effic iency of inspection and 
clearance.  
3. In terms of trade -related structural reforms, in order to boost economic development, we have 
accelerated regulatory adjustment and deregulation by reviewing unreasonable regulations, with 
a view to maximizing benefits for the public, as well as simplifying administrative procedures to 
provide greater convenience (e.g. relaxing financial regulations, promoting amendments of 
regulations related to intellectual property, promoting tax reform, etc.).  WT/TPR/M/377/Add.1  
 
- 13 - 
 
  SUMMARY  
Page 10, para 7  
China N°4 : What new measures were taken by Chinese Taipei to improve the business 
environment?   
Answer :  
1. Since October 2008, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has 
been implementing business environment reforms based on the  criteria of the World Bank's 
"Doing Business" project. In addition to developing annual reform programs, the government 
has also formulated measures to improve low -performance areas identified by the World Bank, 
with the aim of bringing the domestic regul atory system in line with international standards, and 
further improve our investment environment and boosting our international competitiveness.  
2. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, ever since its new 
administration took office in 2016, has put forward a series of key policies such as the 
5+2 Industrial Innovation Program, the Forward -looking Infrastructure Developmen t Program, 
relaxation of regulations, optimization of the tax system, acceleration of investment, stimulating 
economic development and making doing business in the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu easier.  
China N°5 : How did Ch inese Taipei support SMEs?  
Answer :  
SMEs are the backbone of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu's 
economic growth. As we endeavour to become an innovation -driven economy, our policy focuses on 
(1) creating a healthy environ ment for the development and growth of SMEs; (2) enhancing the 
information technology capabilities of SMEs; (3) optimizing the operational management capabilities 
of SMEs; (4) promoting the sound development of SME finance; and (5) building a platform for SME 
start-ups and incubations.  
SUMMARY  
Page 10, para 9  
"During the review period, Chinese Taipei's trade facilitation developments included the ratification 
of the WTO Trade Facilitation Agreement (TFA) in 2015, the adoption of amendments clarifying 
releva nt legislation (Customs Act), the enhancement of integration of online operations with the 
Customs -Port-Trade Single Window, facilitation in the exchange of certificates of origin, and the 
introduction of expeditious customs clearance services. The customs  valuation regime and its main 
method used, the transaction value, have remained unchanged; an advance ruling system on 
non-preferential rules of origin has been enforced as from 2016. In addition to other charges, a 
0.04% Trade Promotion Service Fee conti nues to be collected on incoming and outgoing 
merchandise; harbour dues for overseas routes remain 60% higher than for domestic routes."  
China N°6 : What measures did Chinese Taipei take to enhance the integration of online operations 
with the Customs -Port-Trade Single Window?  
Answer :  
1. The primary goal of Customs -Port-Trade (CPT) Single Window is to integrate Customs and other 
government agencies into a single entry point for trade. Traders electronically file Customs 
declarations, trading licensing, and SP S documents through CPT Single Window to government 
agencies, so as to simplify the whole clearance procedure. Now, CPT Single Window has already 
interconnected 28 government agencies.  
2. Both Customs and relevant licensing agencies have established contact points, which have been 
posted on the Customs website for public enquiries. In addition, the Customs and relevant 
licensing agencies hold regular coordination meetings every year to solve specific issues so as 
to enhance the integration of online operation s of the CPT Single Window.  
China N°7 : What indicators did Chinese Taipei use to evaluate and introduce expeditious customs 
clearance services? Currently how long does customs clearance take for imports and exports of 
goods respectively?  WT/TPR/M/377/Add.1  
 
- 14 - 
 
  Answer :  
1. Thanks t o the CPT Single Window, our Customs is able to track the movement and transaction 
status of containerized goods from their arrival to release, by integrating information acquired 
from various parties involved in the whole import process, such as port auth orities and container 
terminals. This allows us to measure release time on a more accurate and real -time basis, 
compared to the questionnaire surveys adopted by the WCO's guidelines TRS. Moreover, as of 
January 2017, information on the "release time" (time  required from arrival to release) of 
containerized goods has been made available to the public. Such enquiry services can be 
accessed via:  
http://portal.sw.nat.gov.tw/PPL/RedirectorNonLoginAction?appId=APGQ&privilegeId=GQ01%3
FclassType%3D12   
2. The average time required for importe d goods from arrival to release are as follows. However, 
calculations of "release time" currently does not include the time required for export.  
 2016  2017  
Sea 5 days, 20 hours and 16 minutes  5 days, 23 hours and 33 minutes  
Air 2 days, 6 hours and 6 minutes  1 day, 13 hours and 27 minutes  
China N°8 : What is the basis for the collection of a 0.04% Trade Promotion Service Fee on incoming 
and outgoing merchandise? How to use the Trade Service Fee already charged, please list a couple 
of cases.  
Answer :  
1. Article 21 of the Foreign Trade Act stipulates that, in order to promote foreign trade, in order to 
respond international trade situations, and support trade activities, the competent authority may 
establish a trade promotion fund by collecting uniformly, through customs, a trade promotion 
service fee against the goods exported/imported by exporters/importers at a rate not more than 
0.0425% of the price of the goods exported/imported. The current rate of the trade promotion 
fee is 0.0400%. This regulation u niformly applies to both exported and imported goods and 
follows the user –pays principle. The fee is neither for protecting the domestic industry nor for a 
fiscal purpose.  
2. The Trade Promotion Fund is mainly used to entrust professional institutions to conduct foreign 
trade -related activities, participate in activities held by international trade organizations, provide 
trainings, etc.  
China N°9 : Could Chinese Taipei explain the specific reason why harbour dues for overseas routes 
are 60% higher than for internal routes? What is the impact on import and export trade?  
Answer :  
The commercial port dues for international shipping routes collected from overseas -registered ships 
are calculated at the same rate as those collected from domestic ships. Domestic ro utes are cabotage 
of interior affairs, and international routes are not accorded unfair treatment. In addition, since the 
wharf and handling facilities for domestic shipping routes are inferior to those for international 
shipping routes, and officials do n ot conduct customs clearance or quarantine and security, the 
commercial port dues for domestic shipping routes are assessed at 40% of the rate for international 
routes. Any overseas -registered ships granted approval to utilize domestic routes are accorded the 
same discount.  
SUMMARY  
Page 10, para 10  
"Import prohibitions, restrictions and licensing remain in place to, inter alia, protect public morals, 
human life or health as well as to enforce obligations under international agreements. The scope of 
import bans rose from 70 ten -digit HS items (2013) to 91 (2018); the coverage of import permits 
increased to 131 items (126 in 2014). During the review period, the legislative framework governing 
anti-dumping and countervailing measures was revised in certain are as, and anti -dumping action 
remained relatively stable. Chinese Taipei continued to use anti -dumping provisions, mainly against 
imports of carbon steel plate originating mostly in Asia; it initiated 11 anti -dumping investigations 
(2013 -16) and had 19 final  measures in effect as at end -2017. Although no countervailing measures 
have been taken so far, in April 2018 Chinese Taipei initiated a countervailing duty investigation 
against certain steel products from China."  WT/TPR/M/377/Add.1  
 
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  China N°10 : What goods do the 21 new HS i tems cover subject to import bans in 2018? What is 
the purpose and basis for expanding the scope of import bans?  
Answer :  
In order to maintain social order, and for environmental and ecological protection, 21 items, 
including hazardous narcotics materials  and invasive alien species, have been banned from import 
in accordance with Article 11 of the Foreign Trade Act.   
China N°11 : What goods do the 5 new HS items cover subject to import permits in 2018? What is 
the purpose and basis for increasing the covera ge of import permits? What is the impact on trade?  
Answer :  
Due to social order and public safety concerns, additional items related to signal flares now require 
import permits in accordance with Article 11 of the Foreign Trade Act.  
China N°12 : Could Chinese Taipei explain against which steel products from China a countervailing 
duty investigation was initiated? What is the basis? In the next step, against which products will 
countervailing duty investigations be initiated?  
Answer :  
1. We have init iated countervailing duty investigations on certain flat -rolled steel products, plated 
or coated with zinc or zinc -alloys; carbon steel plates; SUS 300 series flat -rolled products of 
cold-rolled stainless steel; certain flat -rolled products of hot -rolled s tainless steel; and certain 
carbon cold -rolled steel products imported from China.  
2. The investigations were initiated according to Article 11.6 of the Agreement on Subsidies and 
Countervailing Measures as well as Article 2 of the Regulations Governing the I mplementation 
of the Imposition of Countervailing and Anti -Dumping Duties, which stipulate that the imposition 
of a countervailing duty and anti -dumping duty shall be approved, pursuant to the relevant acts 
and regulations, and publicized for implementatio n following the investigation and determination 
by the Ministry of Finance as initiated by the referral of other government agencies.  
3. There are currently no countervailing duty investigations on other Chinese products. Should we 
decide to initiate counterv ailing duty investigations on other products, we will publicize such 
investigations in accordance with the relevant regulations.  
SUMMARY  
Page 10 -11, para 11  
"Chinese Taipei continued not to levy any taxes on outgoing merchandise. During the review period,  
the scope of export prohibitions was expanded; the coverage of licensing and approvals remains 
relatively important. Customs duty and internal taxes paid on incoming raw materials used in exports 
continue to be refundable. Indirect tax incentives for ente rprises operating in export processing and 
free trade zones remained in place. Export finance, guarantees and credit insurance at preferential 
terms have assisted manufacturers in expanding exports inter alia to the ASEAN, South Asia, 
Australia, and New Ze aland markets in line with the New Southbound Policy objectives."  
China N°13 : Could Chinese Taipei explain the reason and basis for the expansion of the scope of 
export prohibitions? What goods were involved?  
Answer :  
To be consistent with international e nvironmental agreements, such as the CITES, the Stockholm 
Convention, the OSPAR Convention, and the Rotterdam Convention, as well as to prevent drug 
abuse, additional items have been subjected to export prohibition, such as hazardous narcotic 
materials and  invasive alien species, in accordance with Article 11 of the Foreign Trade Act.  
China N°14 : Could Chinese Taipei explain how to refund the duties on outgoing merchandise?  
Answer :  
1. Customs duty paid on raw materials used in the manufacture of articles int ended for export is 
refundable following exportation of the finished products according to the standards for the raw 
materials in the quantity required for normal production, unless the duty refund for the particular 
item has been cancelled by the MOF by p ublic notice.  
2. Manufacturers may, within one year and six months from the date following the day on which WT/TPR/M/377/Add.1  
 
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  the raw materials were released for importation, apply to Customs with the relevant export 
documents for duty refund or to offset the accounts for expo rt products manufactured from 
imported raw materials.  
3. For the purposes of improving the service quality and administrative effectiveness, Customs has 
implemented the system on Electronic Processing of the Offsetting or Refund of Duties and Taxes 
on Raw Mat erials for Export Products, which was officially launched in September 2012.  
China N°15 : Could Chinese Taipei explain the measures of indirect tax incentives for enterprises 
operating export processing and those in the free trade zones (FTZs)?  
Answer :  
1. Tax incentives for enterprises in export processing zones (EPZs) are regulated in Articles 13 and 
14 of the Statute for the Establishment and Administration of Export Processing Zone. The tax 
incentives include: exemption from import tax, commodity tax and  business tax on machinery 
and equipment, raw materials, fuel, supplies, semi -finished goods, samples, animals and plants 
for experimental use, and finished items needed for trade, warehousing or transhipment.  
2.  According to Article 29 of the Act for the Es tablishment and Management of FTZs, overseas 
profit -seeking enterprises may engage in the storage, delivery or simple processing in FTZs and 
sell the products out of the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu, 
or delegate them to F TZ enterprises, and  shall be exempted from business income tax.   
China N°16 : In order to assist manufacturers in expanding exports, what were the export finance, 
guarantees and credit insurance at preferential terms implemented by Chinese Taipei? What is t he 
legal basis?  
Answer :  
The preferential terms are as follows:  
1. Eximbank provides some export credit incentives for our enterprises, such as offering grace 
periods and extending tenor. It carefully evaluates each case based on independent credit status, 
financial position, industrial ranking, previous contribution, guarantee, etc. Preferential terms 
apply to eligible cases.  
2. Eximbank provides various export credit insurance services. The preferential terms are 
considered case by case once credit limits are  approved through underwriting.  
3. The legal basis of the above -mentioned operations is under the act establishing the Eximbank.  
SUMMARY  
Page 12, para 20  
"A wide range of general and sector -specific incentives (both fiscal and non -fiscal) are available to 
businesses."  
China N°17 : Could Chinese Taipei specify the general and sector -specific incentives (both fiscal and 
non-fiscal) available to businesses?  
Answer :  
We provide several incentives to businesses, such as loans for small and medium -sized enterprises 
(SMEs) and private enterprises,  duty and tax exemptions for high -technology industries, funds 
granted for promoting development of industrial technology, etc.  
For detailed information, please refer to the 2017 new and full notification of subsidies 
(G/SCM /N/315/TPKM) submitted by the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu.  
4. TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.1.1 Characteristics and policy objectives  
Page 100, para 4.6  
"According to the authorities, the overall aim is to actively create a multi -functional agricultural 
sector, rather than merely providing subsidies, as in the past."  
China N°18 : Please elaborate the information on multi -functional agricultural sector.  WT/TPR/M/377/Add.1  
 
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  Answer :  
1. The multifunctional characteristics of agricultu re were recognized at the Meeting of the 
Committee for Agriculture (COA) at Ministerial Level of OECD in 1998. Agricultural 
multifunctionality was defined as follows: "Beyond its primary function of supplying food and 
fiber, agricultural activity can also shape the landscape, provide environmental benefits such as 
land conservation, the sustainable control of renewable natural resources and the preservation 
of bio -diversity, and contribute to the socio -economic viability of many rural areas." Two key 
elemen ts of agricultural multifunctionality are: (i) the existence of multiple commodity and 
non-commodity outputs that are jointly produced by agriculture; and (ii) the fact that some of 
the non -commodity outputs exhibit the characteristics of externalities or public goods, with the 
result that markets for these goods do not exist or function poorly. (OECD, 2001)  
2.  The multi -functional agricultural sector include: (i) supporting services, e.g., ecosystem services, 
soil formation, nutrient cycling; (ii) provisioning services, e.g., the production of food, fuel, and 
fibre; (iii) regulating services e.g., climate regulation, flood mitigation; and (iv) cultural services, 
e.g., the preservation of cultural heritage. Agriculture contributes to rural wealth not  only 
through the production of commodities, but also through the delivery of non -tradable goods. 
This contribution can be made directly through increased property value or economic benefits in 
the tourism sector, or indirectly through conservation of rura l heritage or agri -ecological 
systems.  
4. TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.1.1 Characteristics and policy objectives  
Page 99, para 4.5  
"The key impediments to the productivity and competitiveness of the  agricultural sector in 
Chinese  Taipei rem ain the fragmented nature of agricultural holdings and demographic trends (the 
average age of farmers is 63.5 years). "  
China N°19 : Does Chinese Taipei have relevant policies to overcome the problems caused by the 
fragmented nature of agricultural holdings  and the aging of population? How effective are they?  
Answer :  
1. We have implemented the "Small Landowner and Large Professional Farmer" project and 
established specialized agricultural production areas, with the aim of promoting centralized and 
large-scale agricultural land operations, and solving problems caused by the fragmented nature 
of agricultural holdings.  
2. To cope with the problem of aging farmers, the COA continues to promote guidance through the 
"Hundred Young Farmers" platform. We have selected a total of 467 young farmers over four 
years. Aside from providing each young farmer with case -by-case companion -style guidance in 
production technology and techniques and operational management, we also provide them with 
the necessary equipment and marketin g assistance. In addition, the COA has assisted the 
establishment of 16 service platforms at the city and county level for exchanges among local 
young farmers. As of 2017, a total of 3,518 young farmers had joined the platform, resulting in 
more collective  cooperation and the sharing of production and marketing experiences.  
4. TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.1.4 Domestic support measures  
4.1.1.5.1 Notified support levels  
Page 104, para 4.24  
"The current total Aggregate Measurement of Support ( AMS) reached NT$8 billion in 2012, up from 
NT$7.2 billion in 2011; and NT$3.9 billion in 2010 and 2009 respectively."  
China N°20 : What was the reason for the continuous increase in total Aggregate Measurement of 
Support (AMS)?  
Answer :  
The total Aggregate Measurement of Support increased in 2011 and 2012 because of the support 
for rice. Nevertheless, it's still consistent with our total AMS commitments.  WT/TPR/M/377/Add.1  
 
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  4. TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.1.5 Domestic support measures  
4.1.1.5.2.1 Notified suppo rt levels  
Page 105, para 4.31  
Page 105, Para 4.31  
"From May 2008, the COA had subsidized the price increases of chemical fertilizers, with farmers 
paying the pre -May 2008 price plus 15% of the price increase.24 The subsidy was granted based on 
the actual u sage of fertilizer, with no limit on the amount of subsidy per farmer. This subsidy scheme 
was terminated in July 2017."  
China N°21 : How was the chemical fertilizer subsidy program implemented and how well did it 
work? For example, how much was the average  subsidy for eac h peasant from May 2008 to July  2017 
when it was terminated?  
Answer :  
1.  The price difference subsidy on chemical fertilizer has successfully balanced supply and demand, 
and stabilized the price of fertilizers, which has led to stability of agricultural production.  
2.  The price difference subsidy on chemical fertilizer is NTD 39,000 (about USD 1,300) on average 
per farmer.  
China N°22 : Will the encouragement on the use of chemical fertilizers have a negative impact on 
the environment?  
Answer :  
1. We implemented a policy subsidizing the price difference of chemical fertilizers with the sole aim 
of balancing supply and demand and stabilizing prices; thus no specific incentive was provided 
for using chemical fertilizers.  
2. We have been promoting reasonable use of fertilizers, through methods such as soil testing, 
technology introduction, and counselling, in order to guide farmers to engage in eco -friendly 
farming. In addition, farmers are advised to use organic fertilizers, bio -fertilizers, and 
soil-improvement materials, and to reduce the use of chemical fertilizers.  
  WT/TPR/M/377/Add.1  
 
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  5  USA 
WT/TPR/S/377 – WTO Secretariat Report  
2 TRADE AND INVESTMENT REGIME  
2.3 Trade Agreements and Arrangements  
2.3.2 Regional and preferential agreements  
2.3.2.1 Regional trade agreements (RTAs)  
Page 34, paragraph 2.26: The Secretariat's Report states that Chinese Taipei has a regional trade 
agreement (RTA) in force with China, among others. However, the RTA with China, known as the 
Cross -Straits Economic Cooperation Framework Ag reement (ECFA), has not been notified to the 
WTO Committee on Regional Trade Agreements and that the "authorities indicated that the RTA with 
China will be notified to the WTO once the follow -up agreements have been concluded."  
Question 1 : Please provide a n update on the status of follow -up agreements associated with the 
ECFA and a timeline for notification of the ECFA to the WTO Committee on Regional Trade 
Agreements.  
Answer :  
1. The Cross -Strait Economic Cooperation Framework Agreement (ECFA) was signed in 2010. 
Regarding follow -up agreements, the Cross -strait Investment Protection and Promotion 
Agreement was signed in August 2012 and entered into force in February 2013. The draft 
trade -in-services agreement was concluded and signed in June 2013, yet ratific ation is pending 
in our legislature. Negotiations on the trade -in-goods and dispute settlement agreements have 
not yet been concluded.  
2. As ECFA is only a framework agreement, we have already made an early announcement based 
on the consensus between the sign atories. We will notify the WTO accordingly after concluding 
the follow -up agreements.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.1 Customs procedures, valuation, and requirements  
3.1.1.1 Customs procedures  
Page 43, paragraph 3.11 : The Secretariat's Report states tha t Chinese Taipei lowered the 
de minimis amount for custom duties and tax exemptions from shipments valued at NT$3,000 to 
NT$2,000. The Report also notes "this regulation is not applicable to frequently imported or special 
goods prescribed by the MOF." Furthermore, we understand that Chinese Taipei also made 
amendments to limit the times an importer can claim de minimis during a six -month period so that 
some importers will have to pay duties and taxes on an imported shipment even if below th e value 
of the shipment is below the de minimis threshold.  
Question 2 : What is the rationale for these amendments? How were these amendments notified 
for comment and how were stakeholders consulted in the process?  
Answer : 
1. Before 1 January 2018, the Separa te Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
did not impose tariffs or value -added tax (VAT) on online buyers of imported goods with a value 
below NT$ 3,000. In contrast, buyers of online domestic goods are subject to VAT regardless of 
the valu e. The different treatment is unreasonable and unfair to domestic online businesses.  
Also, with the rapid growth of cross -border e -commerce trade, the number of low -value and small 
shipments has been increasing along with the number of e -commerce shipment s. This has 
caused a growing concern on loss of tax revenue.  
In addition, the new regulations are meant to prevent a small group of importers from long -term 
tax evasion and unfair import advantages that are impacting legal import traders. Specifically, 
the particular group of importers often reassembles large packages into smaller packages to 
lower the product value, and constantly import the resized packages into the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu.  
To level the playing field  for domestic and international online businesses, the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu introduced "the Principle to Determine Frequent 
Importation under paragraph 2 of Article 49 of the Customs Act" and amended "the de minimi s WT/TPR/M/377/Add.1  
 
- 20 - 
 
  amount under paragraph 2 of Article 49 of the Customs Act"  on July 1, 2017 and January 1,  2018 
respectively.  
2. Prior to implementing these two regulations, the Ministry of Finance issued the notices of the 
draft amendments on its website and the government  gazette. The Customs Administration held 
more than ten meetings with interested trade associations, industries, and the public.  
3.1.6 Anti -dumping, Countervailing, and Safeguard Measures  
3.1.6.1 Anti -dumping and countervailing  
Page 54, paragraph 3.44:  The Secretariat's Report mentions a number of changes that were made 
in 2016 to the legislative framework that covers anti -dumping and countervailing duty measures.  
Question 3 : Please advise as to when those changes will be notified to the appropriate WTO 
committees for review by Members.  
Answer :  
The changes were notified to the WTO Committee on Anti -dumping Practices and Committee on 
Subsidies and Countervailing Measures and the notification has been circulated on 24 August 2018 
(G/ADP/N/1/TPKM/1/Suppl.2 G/SCM/N/1/TPKM/1/Suppl.2).   
3.2.5 Export finance, insurance, and guarantees  
Page 59, paragraph 3.66:  The Secretariat's Report states the publicly owned Export -Import Bank 
provides export credit, insurance, re -lending, and other kinds of export financing facilities.  
Question 4 : Please explain if any of these export financing programs cover agricultural pr oducts.  
Answer :  
The export financing and export credit insurance programs of the Eximbank cover agricultural 
products.  
3.3.2 Standards and other technical requirements  
Pages 67 -68, Paragraph 3.93: The Secretariat notes that "there are concerns in areas w here the 
pace of adoption of international standards remains slow." This includes automotive and food safety 
standards. Chinese Taipei states that its vehicle safety regulation was harmonized with UNECE 
regulation, and that it accepts testing reports from the EU, Japan and Korea.  
Question 5 : Does Chinese Taipei accept automotive testing reports from any other foreign market 
besides the EU, Japan and Korea, or is double testing required from markets other than these three? 
Please explain the rationale for t hese requirements.  
Answer : 
1. According to the Vehicle Safety Type Approval Management Regulations, the Ministry of 
Transportation and Communications (MoTC) accepts  safety inspection and testing reports issued 
by both domestic and foreign institutions accred ited by the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu. With respect with the accreditation of technical services, 
please refer to Articles 18, 19, 20, 21, 22 and 23 of the Vehicle Safety Type Approval 
Management Regulations.  
2. At present , there are in total 53 technical services and 149 witness laboratories around the world 
accredited by our government for safety inspection and testing of vehicles or its devices. These 
facilities are located in, inter alia, the U.S., the EU, Japan, Korea,  India, Thailand, and Australia. 
Autos and auto parts with testing reports issued by the accredited technical services are not 
required to carry out testing again in the Separate Customs of Taiwan, Penghu, Kinmen and 
Matsu.  
Page 68, paragraph 3.99:  The Sec retariat's Report notes that Chinese Taipei has begun gradually 
improving its drug -approval system in response to concerns regarding the lengthy process, including 
plans to "revise the legal status of the Centre for Drug Evaluation (CDE)" and to reduce "th e number 
of stages in the drug -approval process from three to two." According to the Report, the average 
review time for new drug approval was 295 days in 2017, and rei mbursement takes on average 
417 days. Furthermore, 50% of approved applications were den ied reimbursement. The Report also 
notes that despite having low reimbursement prices, Chinese Taipei still lags behind other economies 
in terms of "access to innovative and valuable treatments."  WT/TPR/M/377/Add.1  
 
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  Question 6 : Please provide an update on efforts to revise th e legal status of the CDE. What will the 
implications be for improving the drug -approval process?  
Answer :  
The proposed amendments regarding the legal status of the CDE is currently undergoing the 
legislative process. In the meantime, the TFDA and CDE are  working on improving the efficiency of 
the review process to facilitate medicinal products development and marketing approval. For 
example, in 2017, TFDA launched the Refusal to File (RTF) mechanism to facilitate the review process 
by reducing unnecessary  reviews and incomplete applications. The statistical data showed that the 
median approval time of NCE/biological products was 295 days. This is a significant reduction, as 
the review time has been shortened by 66 days in comparison with the previous year.  
Question 7 : What additional steps does Chinese Taipei envis ion for making the lengthy 
drug-approval process more efficient and streamlined?  
Answer :  
In order to improve patient access, accelerate review and approval of new drugs, referring to the 
management systems of medicinally advanced nations, the TFDA has establish a multi -disciplinary 
review process, which includes streamlined review procedures, priority review mechanisms and 
accelerated approval mechanisms. The review time can be shortened f rom the standard 360 days 
to within 180 days.  
Question 8 : What steps is Chinese Taipei taking toward decreasing delays for approvals of 
reimbursement of new drugs?  
Answer :  
1. In response to the needs of manufacturers, the Food and Drug Administration has es tablished a 
mechanism for issuing new drug approval letters for manufacturers to obtain health insurance 
payment before obtaining a new drug license.  
2. New drug pricing review decisions are made by the PBRS Joint Meeting, which is composed of 
stakeholders including government officials, scholars, experts, beneficiaries, employers, 
healthcare providers, etc. While the whole pricing process is completely transparent and with 
public participation, it is inevitable that discussions may take longer in a democrat ic and open 
mechanism. The 417 days mentioned in the report is from unofficial data and is calculated based 
on the duration between the first time a drug supplier submitted dossiers and the date of listing, 
without considering that a drug supplier may disa gree with the pricing result and resubmit the 
application. Therefore, there are differences in calculation basis. According to NHIA's data, 
recently, the new drug pricing process on average takes 9.7 months. Even though multiple 
participants in the pricing  review process may more or less influence the duration of pricing 
procedures, the duration of NHIA's pricing procedures still remains quite reasonable.  
3. Recently, discussions on pricing review of some expensive but potentially valuable new drugs 
have had d ifficulty reaching consensus in the PBRS Joint Meeting and therefore the pricing 
process has been prolonged. This is due largely to huge budget impact, lack of evidence 
supporting cost -effectiveness under the fast -track drug approval process, or the requir ement for 
additional HTA analysis. To increase the accessibility of potentially valuable new drugs to 
patients, and to cope with uncertainties in the efficacy of new drugs and to control their budget 
impact, the NHIA has been working on adopting Managed En try Agreements (MEAs) under our 
health insurance system. We've worked out a draft amendment to the reimbursement schedule, 
which has been discussed in the PBRS joint meeting and approved by the Ministry of Health and 
Welfare (MoHW). A public notice on the draft was issued on 2 July 2018 to solicit comments from 
the public.  
Question 9 : What steps is Chinese Taipei taking to improve patients' access to innovative and 
valuable treatments?  
Answer : 
1. In order to improve the patient access, accelerate review and a pproval of new drugs, referring 
to the management systems of medicinally advanced nations, the TFDA has establish a 
multi-disciplinary review process, which includes streamlined review procedures, priority review 
mechanisms and accelerated approval mechani sms. The review time can be shortened from the 
standard 360 days to within 180 days.  WT/TPR/M/377/Add.1  
 
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  2. In order to increase the accessibility of potentially valuable new drugs to patients, and to cope 
with uncertainties in the efficacy of new drugs and to control their budg et impact, the NHIA has 
been working on adopting Managed Entry Agreements (MEAs) under our health insurance 
system. We've worked out a draft amendment to the reimbursement schedule, which has been 
discussed in the PBRS joint meeting and approved by the Min istry of Health and Welfare (MoHW). 
A public notice on the draft was issued on 2 July 2018 to solicit comments from the public.  
3. In order to encourage research and development of innovative drugs with better benefits, we 
provide up to 15% mark -up for a new drug with better therapeutic effects, improved safety, 
better convenience, favorable dosage forms, and children's medications.  
4. In order to encourage choosing the Separate Customs of Taiwan, Penghu, Kinmen and Matsu as 
the first market to launch new product s, a new drug that demonstrates significant clinical value 
and is first introduced in the Separate Customs of Taiwan, Penghu, Kinmen and Matsu among 
the world, is priced according to its actual transaction price, cost calculation method or the listing 
prices of A -10 countries of the new drug and its comparators.  
Page 70, paragraph 3.100:  The Secretariat's Report notes that the December 2015 amendments 
to the School Health Act banned genetically modified (GM) ingredients. Not only was the ban 
unsupported by scientific evidence, but the Report also notes the ban contradicted MOHW's GM food 
approval list. Furthermore, although the amendments have already been approved by the LY, 
Chinese Taipei has not yet notified the amendments to the WTO Committee on Sanitary  and 
Phytosanitary Measures (SPS Committee).  
Question 10 : When will Chinese Taipei notify the amendments to the School Health Act to the WTO 
SPS Committee?  
Answer : 
We will issue relevant notification to the WTO as soon as possible.  
Page 70, paragraph 3.102 : The Secretariat's Report notes that the Toxic Chemical Substances 
Control Act (TCSCA) and Occupational Safety and Health Act (OSH Act) went into force on 
14 December 2014 and 1 January 2015 respectively.  
Question 11 : When does the Environmental Prot ection Agency (EPAT) plan to issue the lists of 
chemicals for registration?  
Answer :  
The Regulation of Registration of Existing and New Chemical Substances is currently in the process 
of amendment, in order to specify the first batch of designated existin g substances requiring 
standard registration according to the TCSCA.  
There are 106 prior designated substances proposed in this batch. The list is expected to be officially 
announced by the end of 2018. Upon the announcement, a transitional period for comp liance will be 
granted before full implementation.  
3.3.3 Sanitary and phytosanitary measures  
3.3.3.1 Food standards -setting framework  
Page 72, paragraph 3.109: The Secretariat's Report states that "during the review period, the 
FDA continued to amend food -related laws and regulations to comply with international standards" 
including amendments to food regulatory standards and reviewing mechanisms, food source 
management, risk management systems, among others.  
Question 12 : When will Chinese Taipei notify these amendments to the WTO for comment by 
members?  
Answer :  
We notified the WTO Secretariat of our SPS measure, and provided a reasonable time for other 
Members  to make comments. Between 1 January 2014 and 31 January 2018, we applied the 60 -day 
comment period for in total 115 regular notifications, and these data were made available on the 
SPS website.  
Page 72, paragraph 3.114:  The Secretariat's Report states tha t "MOHW remains responsible for 
setting and promulgating maximum residue limits (MRLs); the Codex standards are not WT/TPR/M/377/Add.1  
 
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  automatically adopted." In 2007, Chinese Taipei notified that it would adopt Ractopamine MRLs for 
the full range of beef and pork products. Chinese Taipei also stated that "the draft Codex MRLs for 
ractopamine, for which completion is imminent, is one of the important references for establishing 
this standard." Yet, even after the Codex Alimentarius adopted the drat MRLs in 2012, Chinese  Taipe i 
still only maintains an MRL for beef muscle cuts.  
Question 13 : Has Chinese Taipei obtained new scientific evidence that conflict with the reports of 
the WHO/FAO Joint Expert Committee on Food Additives since its notification that it would adopt 
MRLs for  Ractopamine for a full range of beef and pork products on August 16, 2007 to support 
maintaining an MRL on only beef muscle tissue? If so, can Chinese Taipei explain what this new 
scientific evidence is? If not, can Chinese Taipei explain why the MRLs hav e not been adopted?  
Answer :  
1. Ractopamine -free pork can be imported into the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu. Currently, the U.S. is the fifth largest importer of pork in the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu, after Canada, Spain, Denmark and 
the Netherlands.  
2. Regarding ractopamine MRLs on pork, we have to take into consideration the dietary patterns 
and total dietary intake of consumers in the Separate Customs Territory of Taiwan, Penghu, 
Kinme n and Matsu, and ensure the food safety for the people. We will carefully review all opinions 
expressed during the domestic consultations and the relevant international standards when 
formulating relevant policies.  
Question 14 : When will Chinese Taipei iss ue the MRLs for pork and beef?  
Answer : 
Please see our response to question 13.  
Page 73, paragraph 3.114:  The Secretariat's Report states "Chinese Taipei's slow process for 
establishing MRLs for pesticides, low number of approved MRLs, and zero tolerance po licy for 
pesticides without established MRLs have resulted in incoming agricultural shipments being stopped 
at the ports of entry and other restrictions.." The Report states that the process of evaluating the 
pesticide MRLs of incoming crops is subject to the same principles as those for local crops.  
Question 15 : Please elaborate on any plans to improve the process for establishing MRLs for 
pesticides to avoid unnecessary delays.  
Answer :  
We are establishing an online inquiry system for applications for pes ticide MRLs on import crops. 
The system is expected to launch by the end of this year, after which applicants will be able to track 
the progress of the application online.  
Question 16 : Please confirm whether efficacy data and crop grouping requirements are  the same 
for incoming crops as local crops.   
Answer : 
The process of evaluating the pesticide MRLs of incoming crops is subject to the same principles as 
those for local crops.  
3.3.3.2 Quarantine regulations  
Page 75, paragraph 3.122: The Secretariat's Repo rt states "at present, Chinese Taipei bans the 
entry of animals and animal products from territories infected with foot -and-mouth disease, 
rinderpest, contagious bovine pleuronpneumonia and African Swine Fever."  
Question 17 : Noting the World Organization for Animal Health (OIE)'s Terrestrial Code, which for 
instance allows for importation of animals and animal products from territories where FMD exists 
under certain conditions, please explain how Chinese Taipei has taken such  international standards 
into consideration when establishing its restrictions on imports from countries with animal disease.  WT/TPR/M/377/Add.1  
 
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  Answer :  
The Bureau of Animal and Plant Health Inspection and Quarantine (BAPHIQ) has established the 
quarantine requirements, bas ed on international standards, for processed products containing meat, 
dog and cat food imported from FMD -infected countries.  
Page 76, paragraph 3.123:  The Secretariat's report states "the quarantine fees charged for 
incoming animals and plants are based on the c.i.f. value for imports."  
Question 18:  Please explain how charging quarantine fees based on the value of imports is 
consistent with Paragraph 1(f) in Annex C of the WTO SPS Agreement.  
Answer :  
The Separate Customs Territory of Taiwan, Penghu, Kin men and Matsu is currently conducting 
analysis on the cost of service in accordance with relevant regulations. Adjustment of the fees and 
amendment of the relevant regulations will be done in accordance with the WTO Agreements.  
3.3.3.3 Transparency  
Page 76 , paragraph 3.124:  The Secretariat's report notes Chinese Taipei's record of notifications 
to the WTO Committee on Sanitary and Phytosanitary (SPS) Measures.  
Question 19 : Please describe what steps Chinese Taipei has taken since the last TPR 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 are ensuring that Chinese Taipei's 
SPS measures will be notified to the WTO at the draft stage and that sufficient time will be given to 
submit comments and for those comments to be taken into consideration before adoption.  
Answer : 
To ensure openness and transparency,  effective 1 October 2016, the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu  requires administrative agencies to notify all draft laws and 
regulations on the Official Gazette Online and to provide a minimum of 60 days for comments. In 
addition, effective 1 January 2017,  the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu further requires  that all drafts be made public on the Join Platform -TALK, the official 
notification platform.  
When submitting draft laws and regulations to the Administration for review, administrative agencies 
are required to clarify whether the minimum 60 -day comment period was provided after the 
proposed laws were announced on the Join Platform -TALK.  
Additionally, the NDC is required to supervise agencies'  fulfillment of publication requirements and 
submit an annual evaluation report to the Administration for review. Those agencies with poor 
compliance levels will be requested to make further improvements.  
Question 20 : Additionally, what steps has Chinese T aipei taken to ensure that it will provide draft 
text when SPS measures are notified to the WTO SPS Committee?  
Answer :  
The draft text is always provided and attached when SPS measures are notified to the WTO SPS 
Committee.  
Question 21 : And what steps has  Chinese Taipei taken since the last TPR to ensure English 
translations of its measures when they are notified to the WTO.   
Answer :  
We provide a translation of a summary of SPS measures in English when submitting notifications to 
the WTO SPS Committee. Th e draft English text is provided and attached when possible.  
3.3.4.1 Competition Policy  
Page 77, paragraph 3.126: During the review period, the Fair Trade Act (FTA) was amended three 
times (4 February 2015, 24 June 2015 and 14 June 2017). Its February 2015  amendments, covering 
70% of its provisions, were considered the widest in range, the largest in scale and the most 
influential legal reforms since its entry into force.  WT/TPR/M/377/Add.1  
 
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  Question 22 : Do the recent amendments to the competition law include additional rights  for 
respondents such as the opportunity to review and rebut evidence? If so, please describe these 
additional rights.  
Answer :  
Additional rights for respondents such as the opportunity to review and rebut evidence are not 
included in the recent amendments to the competition law.  
3.3.5 State trading, state -owned enterprises, and privatization  
Page 81, table 3.8:  According to table 3.8 in the Secretariat's Report, a number of state -owned 
entities are temporarily not being privatized.  
Question 23 : What is the status of the privatization of such state -owned entities and when will 
privatization activity resume?  
Answer :  
1. Privatization plans for the CPC Corporation, Taiwan, Taiwan Power Co., Taiwan Sugar Corp. and 
Taiwan Water Supply Corp. are as follo ws： 
(1) CPC Corporation, Taiwan (CPC): The privatization plan is pending conclusion of a relevant 
legislation.  
(2) Taiwan Power Co. (TPC): According to the Electricity Act, the TPC will be divided into an 
enterprise electricity generation and an enterprise for ele ctricity transmission and 
distribution. We will review the privatization plan of the TPC after it begins the process of 
separation of electricity generation and electricity transmission and distribution.  
(3) Taiwan Sugar Corp. (TSC): The privatization is now u nder review.  
(4) Taiwan Water Corp. (TWC): Certain tasks of the TWC, such as collecting water fees, recording 
water meters, operating water purification stations, are being contracted to the private 
sector. There is no plan to privatize the TWSC.  
2. State -owned financial enterprises are in charge of maintaining the stability of the domestic 
financial market. The Taoyuan International Airport Corporation, Taiwan International Ports 
Corporation, and Chunghwa Telecom are crucial to the people's livelihood and public  interest. 
Therefore, there are no privatization plans for these enterprises. With regard to the Taiwan 
Tobacco and Liquor Corporation (TTLC), the prerequisite for releasing shares is to reach a 
consensus between the TTLC and its employees. Because there i s no such consensus at the 
moment, there is neither a timetable nor a specific plan for releasing shares of the TTLC.  
Page 81, paragraph 3.138:  The Understanding on the Interpretation of Article XVII of the General 
Agreement on Tariffs and Trade 1994 (Unde rstanding) provides a working definition of state trading 
enterprise. The Secretariat's Report states that Chinese Taipei believes that an entity need not be 
notified as a state trading enterprise under paragraph 3 of the Understanding "[u]pon the loss of its 
statutory monopoly rights or other special rights, and/or reductions of the number of shares held by 
the public sector" because the entity is considered to be privatized at this stage under Chinese 
Taipei's law.  
Question 24 : Please identify the entiti es where the share ownership by the government is below 
50%, but the company continues to maintain its statutory rights or other special rights. Also, please 
explain the rationale behind the non -notification of those entities given the working definition.  
Answer :  
There are no such entities.  
3.3 Measures Affecting Production and Trade  
3.3.6 Government Procurement  
Page 85, Paragraph 3.151: The Secretariat's Report notes that Chinese Taipei maintains a yearly 
target percentage (YTP) of the value of procureme nt awarded or subcontracted to small and medium 
enterprises (SMEs). The Report also notes that the YTP was set at 40% in 2010 and has remained 
at 40%, but that in 2017, the value of contracts awarded or subcontracted to SMEs was 64% of total 
procurement (a bove NT$100,000).  WT/TPR/M/377/Add.1  
 
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  Question 25 : Please explain whether the value of contracts awarded or subcontracted to SMEs 
include contracts where an SME was chosen as a supplier or estimated as a subcontractor, even if 
the contract awarded was covered by the WTO Agree ment on Government Procurement (GPA).  
Answer :  
The value of contracts awarded or subcontracted to SMEs was estimated with all government 
procurement taken into account regardless of whether such procurement was covered by the  WTO 
Agreement on Government Pr ocurement (GPA).  
Question 26 : Can Chinese Taipei elaborate on the upward trend in SME procurement?  
Answer :  
The ratio of the value of contracts awarded or subcontracted to SMEs (2014 -2017) is shown in the 
table below, which is slightly different every year during the review period. We do not see an upward 
trend.  
 2014  2015  2016  2017  
Yearly percentage of the value of contracts 
awarded or subcontracted to SMEs  64.36%  68.68%  64.55%  64.23%  
Page 85, Paragraph 3.152: The Secretariat notes that procuring entities in Chinese Taipei are 
encouraged but not required to give priority to environmentally -friendly goods, including through a 
price preference of no more than 10% for the procurement of relevant certified goods.  
Question 27 : Please explain whether the price preference is only applied in government 
procurements not covered by the GPA.  
Answer : 
Under Article 9 of  the Regulations for Priority Procurement of Eco -Products, the regulations shall not 
apply to procurement conducted in accordance with a treaty or agreement to which this nation is a 
party. Therefore, the price preference is not applicable in government pr ocurement covered by the 
GPA. 
Question 28 : Please provide statistics, such as the number of procurements or their value, on the 
use of the price preference for relevant certified goods.  
Answer : 
There are no statistics on the number of procurements or their  value, on the use of the price 
preference for relevant certified goods.  
3.3.7 Intellectual property rights  
3.3.7.1.3 Geographical indications  
Page 91, paragraph 3.166:  In the report it is stated that third -parties are prohibited from applying 
for GIs as registrations as trademarks and that trademark applications have been rejected due to 
similarity with existing geographical indications.  
Question 29 : Are applications to register geographical indications rejected due to similarity and 
likelihood of confus ion with prior -in-time marks on the trademark register and applications to 
register marks?  
Answer : 
1.  Geographical indications (GIs) may be registered as geographical certification marks or 
geographical collective trademarks (hereinafter "Geographical Marks" ) in our territory.  
2.  According to Article 94 of the Trademark Act, the grounds for refusal of trademark registration 
provided for in subparagraph 10, paragraph 1 of Article 30 of the Trademark Act shall apply 
mutatis mutandis to Geographical Marks. Therefore, applications to register GIs as Geographical 
Marks will be rejected due to similarity and likelihood of confusion with prior r egistered or 
applied -for trademarks/certification marks.  
Question 30 : For registration applications, does TIPO perform a likelihood of confusion analysis 
comparing the proposed GIs against registered and applied -for marks?  WT/TPR/M/377/Add.1  
 
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  Answer : 
TIPO will conduct a likelihood of confusion analysis between the GIs applied for Geographical Mark 
registrations and prior registered and applied -for trademark/Geographical Marks. For more 
information, please visit TIPO' website 
(https://www.tipo.gov.tw/ct.asp?xItem=175681&ctNode=6822&mp=2 ) to access the Examination  
Guidelines on Likelihood of Confusion.  
Question 31 : Are prior trademark rights available as grounds for opposition of a GI?  
Answer : 
As mentioned above, the applications applied to register GIs as Geographical Marks will be rejected 
because there exists a likelihood of confusion with prior registered or applied -for 
trademarks/certification marks. The above scenario may be used as the ground for opposition of a 
Geographical Mark registration.  
Question 32 : Similarly, can a GI or a portion of a compound GI b e opposed as consisting of a 
generic term?  
Answer : 
1. According to subparagraphs 1 and 2 of Article 94 of the Trademark Act, applying paragraph 1 of 
Article 29 mutatis mutandis to Geographical Marks, a Geographical Mark shall not be registered 
if it consists  exclusively of a description of the designated goods or services or if it consists 
exclusively of the generic term for the designated goods or services. The above scenario may be 
used as the grounds for opposition of a registered Geographical Mark.  
2. If a G I is registered as a Geographical Mark and a part of it is known by consumers as the generic 
term of its designated goods, and the part therefore loses its function of identifying the specific 
geographic origin of the goods, such GI as a whole may be regis tered. However, the part (i.e., 
generic term) of the GI shall not be protected nor used independently to claim rights.  
Page 91, paragraph 3.166:  Paragraph 3.166 states that trademark applications were rejected for 
being "similar to overseas GIs for wines and spirits."  
Question 33 : Please provide a definition for "overseas GIs for wines and spirits."  
Answer : 
The wording "overseas GIs for wines an d spirits" refers to the GIs protected in a foreign country that 
has reciprocal recognition with us, or has acceded to an international treaty to which we have also 
acceded, regarding the protection of geographical indications for wines and spirits, accord ing to 
subparagraph 9, paragraph 1, Article 30 of the Trademark Act. "Overseas GIs for wines and spirits" 
are not limited to GIs having been registered with TIPO as Geographical Marks.  
Question 34 : Are "overseas GIs for wines and spirits" protected as GIs in Chinese Taipei, or are 
they only protected in their country of origin and not Chinese Taipei? Please provide an explanation.  
Answer :  
1. As mentioned above, a third party may be excluded from registering a trademark or a certification 
mark that is identica l or similar to the "overseas GIs for wines and spirits" if the conditions 
prescribed in subparagraph 9, paragraph 1 of Article 30 of the Trademark Act are met.  
2. In addition, the said "overseas GIs for wines and spirits" may be registered with TIPO and 
protected in our territory as Geographical Marks. For instance, the Napa Valley Vintners 
Association has registered NAPA VALLEY as a geographical certification mark (registration 
number: 01603589) with TIPO. The proprietor of this mark may not only exclude a third party 
from registering a trademark or certification mark that could cause confusion but may also file 
civil and criminal complaints if there is a violation of its certification rights.  
3.3.7.2 Copyright and related rights  
Page 92, paragraph 3.172:  
Question 35 : Please provide the "other works" for which protection requires first publishing in 
Chinese Taipei or publishing "in Chinese Taipei no more than 30 days after first publication in a 
territory that provides reciprocal protection".  WT/TPR/M/377/Add.1  
 
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  Answer :  
According to Article 4 of the Copyright Act, works of foreign rights holders that comply with one of 
the following conditions will be able to enjoy copyright protection under the Act:  
1. When there is a treaty/agreement ratified. For example, as a member of the W TO and a signatory 
to the WTO Agreement on TRIPS, we protect the copyright of works created by nationals of all 
WTO members.  
2. When the principle of first publication applies. Works that are first published in our territory, or 
are published in our territory  within 30 days after their first publication elsewhere outside our 
territory, will be protected by the Copyright Act, provided that the home country of the foreign 
national extends protection under identical circumstances to works of our people, and that it has 
been verified that there are such protections in place.  
3. When the principle of reciprocity applies. In countries where, by a treaty or agreement, or 
according to domestic acts, regulations, or standard practices of the home country of the foreign 
national, works of our people enjoy copyright protection, protection will be also granted to works 
of the foreign national of such country.  
Page 93, paragraph 3.174:  The Secretariat's report states that "in October 2017, a draft 
amendment to the Copyright Ac t comprising 145 articles expected to change 80% of the current 
provisions was approved and sent to the legislative branch for inspection and formal amendment 
through three successive readings where it remain as of April 2018."  
Question 36 : Please provide an update on the current status of the copyright law amendments, 
including an estimate of the date when the revision is expected to be completed.  
Answer : 
The draft amendments to the Copyright Act are currently undergoing the legislative process. The 
draft amendments were submitted to the legislature in October 2017. The legislature completed 
their first reading in November of the same year and the amendments have been send to the 
Economics Committee of the legislature for further review. Now the legislative  progress is controlled 
by the legislature and we therefore cannot comment on timing at this stage..  
Page 93, paragraph 3.176:  The Secretariat report states that "stream ripping is a technology that 
enables users to decode or disrupt streaming platforms to  facilitate (illegal) download; any person 
committing the above act is liable for violating the provisions of Article 80 or Subparagraph 7, 
Paragraph 1 of Article 87 of the Copyright Act."  
Question 37 : Please confirm that Article 80 in the above sentence i s the correct citation. According 
to Chinese Taipei's 2016 Copyright Act, Article 80 provides that "The provisions of Article 42 and 
Article 43 concerning the extinguishment of economic rights, and the provisions of Articles 44 
through 48, Article 49, Arti cle 51, Article 52, Article 54, Article 64, and Article 65 concerning 
limitations on economic rights, shall apply mutatis mutandis to plate rights." If Article  80 is incorrect, 
please provide the correct citation.  
Answer :  
1. The citation of Article 80 in th e paragraph is indeed incorrect in the Secretariat Report. The 
correct information should be: any person who uses stream ripping to decode or disrupt 
streaming platforms will be found liable for violating the provisions of Article 80 -2 of the 
Copyright Act . 
2. Paragraphs 1 and 2 of Article 80 -2 of the Copyright Act read as follows:  
(1) Technological protection measures employed by copyright owners to prohibit or restrict 
others from accessing works shall not, without legal authorization, be disarmed, destroyed, 
or by any other means circumvented.  
(2) Any equipment, device, component, technology or information for disarming, destroying, or 
circumventing technological protection measures shall not, without legal authorization, be 
manufactured, imported, offered to the public for use, or offered in services to the public.  
Page 93, paragraph 3.176 and note 277 : The Secretariat's report states that "To stem the 
infringing activities facilitated by non -hosted websites and website s offshore, in mid -2017 
Chinese  Taipei adopted 'Follow the Money' measures to block the advertising revenues of piracy 
sites." Note 277 elaborates that "TIPO facilitated the conclusion of a Memorandum of Understanding 
(MoU) on the Infringing Website List (IWL) between the invited rights holder groups and advertisers" WT/TPR/M/377/Add.1  
 
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  and further notes that "TIPO is to continue its intermediary role to facilitate the sound operation of 
the mechanism and encourage more advertisers to participate in the agreement."  
Question 38 : Please provide an update on th e current status of the Infringing Website List (IWL), 
including achievements to date, as well as TIPO's most recent efforts to facilitate the operation of 
this mechanism.  
Answer :  
With regard to the Infringing Website List (IWL), TIPO's recent efforts an d achievements are as 
follows:  
1. "Follow the money" measures: Under the coordination of TIPO, rights -holders and advertising 
groups have reached a voluntary agreement on Infringing Website List (IWL) in August 2017, 
which would discourage advertisers from pl acing ads on infringing websites, thereby disrupting 
the revenue flow of the infringers. As of today, the Taiwan Intellectual Property Alliance (TIPA), 
a rights -holder group, has sent six IWLs to the Taipei Association of Advertising Agencies (TAAA) 
and th e Taiwan Advertisers' Association (TAA), based on the above -mentioned agreement. 
According to these rights -holders, no advertisements placed on infringing websites were found 
to be put there by members of the TAAA or the TAA.  
2. To promote the "follow the mo ney" measures, TIPO has sent official letters to government 
agencies at all levels as well as large -scale commercial and industrial associations in November 
and December 2017, requesting them to pay attention to this issue and to refrain from putting 
ads o n infringing websites.  
3. In addition, cooperation between rights -holders and Google has been put in motion. In May 
2018, Google held workshops to inform rights -holders about its copyright protection policy and 
mechanism. Google also suggests these rights -holders to make good use of its mechanism. And 
in response, Google will take actions, such as notice and take down, demoting search results 
ranking, and termination of accounts, based on the amounts of copyright claims filed by 
rights -holders against infringi ng websites.  
Pages 93 -94, paragraph 3.176:  The Secretariat report states that "a draft amendment to the 
Copyright Act removes the minimum penalty of 6 months for some criminal liability provisions, thus 
giving a court of law more flexibility in determining  sentences in lawsuits."  
Question 39 : Please specify which criminal liability provisions would be affected by the proposed 
amendment. In addition, please clarify that the proposed amendment is merely a proposal and has 
not been enacted into law.  
Answer :  
The minimum penalty of 6 months imprisonment prescribed in some criminal liability provisions has 
been removed from Article 121 and moved to Article 122 of the proposed amendments, which would 
give the court the freedom to hand down different sentences in  accordance with the severity of 
crimes in a more appropriate way. The draft amendments were submitted to the legislature in 
October 2017. The legislature completed the first reading in November of the same year and has 
sent the draft amendments to the Eco nomics Committee of the legislature for further review.  
4 TRADE POLICIES BY SECTOR  
4.1.1 Agriculture  
4.1.1.4 Trade measures  
4.1.1.4.3 Special safeguard measures  
Page 102, paragraph 4.18:  The Secretariat's Report notes that during Chinese Taipei's previous 
review, there had been a notable increase in price -based special safeguard measures (SSGs) since 
2013 and that this tendency is also reflected in the current review period.  
Question 40 : Why have price -based SSGs been invoked with greater frequency, including during 
the current review period?  
Answer : 
The price -based SSG have been invoked based on our WTO accession commitments and in 
accordance with WTO Agreement on Agriculture.  WT/TPR/M/377/Add.1  
 
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  4.2.2 Ener gy 
Page 114 -115, paragraph 4.77 : The Secretariat's Report notes "external concerns have been 
expressed that the ambitious target of ending nuclear power by 2025 may be an expensive and 
complicated option, particularly given limited operating energy reserve s." Similar concerns have 
been expressed by industries that depend on a reliable and uninterrupted energy supply.  
Question 41 : How will authorities balance the target of ending nuclear power by 2025 with the 
current demands for reliable and uninterrupted e nergy supply?  
Answer :  
1. In order to ensure the stability of energy supplies during the process of becoming a nuclear -free 
Member by 2025, we are promoting a comprehensive policy package of energy transformation 
that includes energy conservation, energy cre ation, energy storage and integration of smart 
systems. The operating reserve of electricity will be maintained at 10%.  
2. In order to ensure a stable power supply, and completion of supporting energy facilities and 
carbon reduction, we will try our best to a chieve a clean energy structure of 20% in renewable 
energy, 50% in low -carbon gas -fueled energy and 30% in coal -powered energy, so that we can 
diversify the allocation of energy resources for power generation and ensure the security of 
energy supply.  
WT/TP R/G/377 – Government Repor t 
3 DEVELOPMENT OF TRADE AND INVESTMENT POLICIES  
3.7 Regulatory Reform and Liberalization  
Page 12, paragraph 3.19:  Chinese Taipei's Report states that regulatory reform has been a policy 
priority, and lists several examples including amendments to the Pharmaceutical Affairs Act and the 
ongoing work to revise the Copyright Act.  
Question 42 : Now that the amendments to t he Pharmaceutical Affairs Act have passed, please 
provide a timeline for implementing regulations. When will implementing regulations be released for 
notice and comment?  
Answer :  
1. The enforcement date of the patent linkage system has not yet determined.  
2. The draft regulations are under development, and there is not yet a release date, and notice and 
comment has not started yet.  
Question 43 : Please provide an update on the current status of the Copyright Law amendments, 
including an estimate of the date whe n the revision is expected to be completed. Also, what is the 
timeline for implementing regulations? When will implementing regulations be released for notice 
and comment?  
Answer :  
1. The draft amendments to the Copyright Act were submitted for legislative r eview in October 
2017. They passed first reading in November of the same year and have now been sent to 
Economics Committee for further review. When the draft amendments will pass and when they 
will come into effect will depend on the legislative review pr ocess.  
2. As for the timeline for the implementing regulations, as the 2017 draft amendments are still 
under legislative review, the revision of relevant implementing regulations will only be possible 
after the draft amendments are passed by the legislature, as rele vant adjustments to the 
implementing regulations might be needed in accordance with the content of the final 
amendments and comments collected from related industries.  
Question 44 : One regulatory reform effort that is not mentioned in Chinese Taipei's Rep ort is the 
current work on amending the Statute for Investment by Foreign Nationals. Please provide an update 
on the current status of the amendments, and any information on plans for future implementing 
regulations. When will implementing regulations be r eleased for notice and comment?  WT/TPR/M/377/Add.1  
 
- 31 - 
 
  Answer :  
We have conducted public hearings on the draft amendments to the Statute for Investment by 
Foreign Nationals. The draft amendments will go through the legislative process after public opinion 
review is completed.  
Page 14, paragraph 3.20: Chinese Taipei's Report states that as of 1 October 2016, "all proposals 
for new regulations or for revisions of existing regulations are subject to a mandatory 60 -day public 
notice and comment period. However, government agencies are allowed to deviate from the 60 -day 
rule in case of emergencies, when obviously unable to announce changes in advance, or when the 
regulation must be promulgated within a shorter time."  
Question 45 : Please explain how Chinese Taipei is ensuring various  agencies are complying with 
this new notice and comment requirement. What are the consequences for agencies that do not 
comply with the requirement?  
Answer :  
1. Launching a notification platform:  
 To ensure openness and transparency, effective 1 October 201 6, the Separate Customs Territory 
of Taiwan, Penghu, Kinmen and Matsu  requires administrative agencies to notify all draft laws 
and regulations on the Official Gazette Online and to provide a minimum of 60 days for 
comments. In addition, effective 1 Januar y 2017,  the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu further requires  that all drafts be made public on the Join Platform -
TALK, the official notification platform.  
2. Implementing a compliance management system:  
(1) When submitting draft law s and regulations to the Administration for review, administrative 
agencies are required to clarify whether the minimum 60 -day comment period was provided 
after the proposed laws were announced on the Join Platform -TALK.  
(2) Additionally, the NDC is required t o supervise agencies' fulfillment of publication 
requirements and submit an annual evaluation report to the Administration for review. Those 
agencies with poor compliance levels will be requested to make further improvements.  
Question 46 : What are some exa mples of regulations that would qualify for an exemption of the 
60-day rule ("unable to announce changes in advance, or when the regulation must be promulgated 
within a shorter time")?  
Answer : 
The Administration Directive of 5 September 2016 ordered admin istrative agencies to provide a 
minimum 60 -day notice for all draft laws and regulations, except in cases of emergency where 
advance notice is not possible, or if the proposed laws are not related to trade, investment, or 
intellectual property. Under such special circumstances, a shorter notification period may be allowed 
if reasons are provided along with the announcement of the proposed laws.  
General / Unspecified / Other Questions  
Other – Related to 3.3.3 Sanitary and phytosanitary measures of the Secretariat Report  
The United States notes that Chinese Taipei's audit policies are not referenced in either the 
Secretariat or Government reports.  
Question 47 : Does Chinese Taipei consider WTO SPS Agreement commitments and Codex 
standards on audits when establishing its audit plans?  
Answer : 
The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu establishes food safety 
related standards based on the Codex standards, dietary patterns, and the results of risk 
assessment. In order to be in line w ith international standards, international and developed 
countries' food safety standards are also taken as references.  
Question 48 :If so, how does it consider these commitments and standards, and how does it ensure 
its audit programs are consistent with t hem?   WT/TPR/M/377/Add.1  
 
- 32 - 
 
  Answer :  
If WTO Members have questions or suggestions, they can convey their information through the WTO 
inquiry point, our respective representative offices or TFDA. We would take Members' comments 
into account and review them at internal meetings, consultations with relevant experts or 
inter-departmental coordination meetings. After that, we will reply with an official letter.  
  WT/TPR/M/377/Add.1  
 
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  6  UKRAINE  
WT/TPR/S/377 – WTO Secretariat Report  
2 TRADE AND INVESTMENT REGIME  
2.2 Trade Policy Formulation and Objectives  
Page 31 (Para 2.14)  
The Report mentions certain innovative industries (including "new agriculture"), which are to be 
promoted to add value across all industry sectors.  
According to Para 4.6 (pages 99 - 100 of the Report) Chinese Taipei's objectives for the  agricultural 
sector are set out in its New Agricultural Policy, adopted in December 2016. This policy is based 
upon three pillars, as well as measures to improve agricultural structures (reactivating fallow 
farmland; establishing large -scale zones to spec ialize in farming selected crops; and encouraging 
young people to return to rural areas) and promote rural development through regenerating rural 
communities and promoting agro -tourism. According to the authorities, the overall aim is to actively 
create a multi-functional agricultural sector, rather than merely providing subsidies, as in the past. 
Measures are aimed at responding to natural disasters, stabilizing farmers' incomes, improving the 
shortage of manpower, and enhancing modernized agriculture and its competitiveness.  
Some details of "new agriculture" policy are also briefly outlined in the Report by the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu (WT/TPR/G/377). It says that the three 
main pillars in this program are to establish  new agriculture paradigms, construct a safety system 
for agricultural products, and enhance the capabilities of agricultural marketing.  
Question 1:  Could Chinese Taipei please elaborate more on expected results and core indicators of 
its policy related to  "new agriculture", considering established objectives, and elucidate the main 
differences in measures to be implemented under this "new agriculture" policy in comparison with 
"scientific agriculture" policy, which the Council of Agriculture intended to de velop at the time of the 
previous Chinese Taipei 's trade policy review?  
Answer : 
1.  "New agriculture" policy is aimed at enhancing the competitiveness and value of agricultural 
sector by establishing agricultural paradigm, constructing agricultural products' safety system, 
improving abilities of agricultural marketing, etc. The Council of Agriculture is devoting in 
agricultural innovation, capacity building of young farmers and rural village regeneration. It is 
anticipated that these measures will stabilize fa rmers' income as well as maintain the 
multi-functions of agriculture in a sustainable way. The key indicators of "new agriculture" policy 
include expanding agricultural production output to NT$560 billion in 2020, increasing organic 
products and TAP produc ts up to 60,000 hectares, and cultivating over 12,000 young farmers.  
2.  In response to the frequent extreme climate and high agricultural operation risks, the aging of 
agricultural labor, shortage of labors in operation, and insufficient capacity to stabiliz e 
agricultural supply, the "New Agriculture" policy has applied the cross -domain advanced 
technologies for innovation, including:  
(1) To advance technology, develop breeding and apply technologies and equipment for the 
mitigation of disasters, and construct comprehensive modular system to improve the 
capability of the production system to cope with adverse conditions.  
(2) To strengthen automatic / intelligent development and application of mechanical equipment 
to save labor and energy, improve agricultural operat ive effectiveness, and stabilize 
capability of production and sale of high -quality agricultural products.  
(3) To develop innovative, energy -saving, and circular agriculture, improve recycle value of 
resources, and create an agricultural model for sustainable operation.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Other charges affecting imports  
Page 52 (Para 3.36)  
The Report states that "The Trade Promotion Service Fee continues to be 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 Com mittee; 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. Following a peak of NT$5 billion (2014), in 2017, the Fund collected WT/TPR/M/377/Add.1  
 
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  NT$4.5  billion (NT$4.8 billion in 2012) and spent the same amount (NT$4.6 billion in 2012) on trade 
promotion events."  
Question 2:  Ukraine would appreciate if Chinese Taipei could give an explanation how the collection 
of the Fee (at an ad valorem rate of 0.04%) is in conformity with its WTO obligations, including 
Articles VIII:1(a), III:4 of the GATT 1994, Article 4.2 of the Agreement on Agriculture?  
Answer :  
Article 21 of the Foreign Trade Act stipulates that, in order to promote foreig n trade, response to 
the situations of international trade, and support trade activities, the competent authority may 
establish a trade promotion fund by collecting uniformly, through customs, a trade promotion service 
fee against the goods exported/import ed by exporters/importers at a rate not more than 0.0425% 
of the price of the goods exported/imported. The current rate of the trade promotion fee is 0.0400%. 
This regulation uniformly applies to both exported and imported goods and follows the user –pays 
principle. The fee is neither for protecting the domestic industry nor for fiscal purpose. Therefore, 
the collection of the trade promotion fee complies with our WTO obligation.  
Question 3:  Could Chinese Taipei kindly elaborate more on the main trade promot ion activities, 
administrative expenses on which are covered by the Trade Promotion Fund?  
Answer : 
The Trade Promotion Fund is mainly used to entrust professional institutions to conduct foreign 
trade -related activities, participate in activities held by i nternational trade organizations, provide 
trainings, etc.  
Question 4:  Do such activities involve trade promotion events related to agricultural imports (please 
describe, if so)?  
Answer : 
Yes, activities involving trade promotion events related to agricultu ral imports are covered by the 
Fund. These activities include media exposure, trade exhibition, and business matching meetings 
between foreign companies and importers in the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu.  
Question5:  Ukraine  also kindly asks to present information regarding the collected amounts of the 
abovementioned Fee imposed on imports of agricultural goods and spent on events for the promotion 
of agricultural imports during the period 2015 -2017.  
Answer :  
1.  During 2015 -2017, the trade promotion service fee imposed on imports of agricultural goods is 
less than 0.03% of the total fee collected during that period.  
2.  Activities involving trade promotion events related to agricultural imports are covered by the 
Fund. These activities include media exposure, trade exhibition, and business matching meetings 
between foreign companies and importers in the Separate Customs T erritory of Taiwan, Penghu, 
Kinmen and Matsu.  
Page 52 (Para 3.37)  
The Report notes that "Harbour dues remain based on the gross tonnage of ships entering the port 
(ship port dues), number of passengers departing (passenger port dues), and the "revenue ton s" of 
loaded or unloaded cargoes (cargo port dues). The authorities indicated that the dues for loading 
and unloading are the same. Harbour dues are specific to shipping routes, and are applied equally 
to ships irrespective of origin for the same routes; n onetheless, harbour dues for overseas routes 
are 60% higher than for domestic routes. At the time of the previous TPR, the authorities explained 
that this difference reflected the costs related to the type of equipment and services provided for 
vessels ope rating these routes; this revenue is used mainly for construction and development of the 
commercial ports."  
Question 6:  Could Chinese Taipei please inform on the actual harbour dues for overseas routes and 
explain reasons for differences in harbour dues be tween overseas and domestic routes, which are 
currently applied?  WT/TPR/M/377/Add.1  
 
- 35 - 
 
  Answer :  
1. Harbour dues are charged based on the users -pay principle. The reason for collecting harbour 
dues is to support the ports' non -profit infrastructure engineering like breakwater, channel, 
navigational aid facilities and engineering in public highway for commercial port development 
and to provide sound and safe service to vessels, cargo and travellers. The Port Dues are charged 
based on GT of inbound vessels, revenue ton of cargo lo ading and discharging and outbound 
passengers.  
2. The commercial port dues for international shipping routes collected from non -national ships are 
calculated by the same rate as those collected from domestic ships. Domestic routes, considered 
internal affairs , enjoy cabotage rights, but the granting of such rights does not constitute unfair 
treatment of international routes.  Furthermore, the wharfs and handling facilities for domestic 
shipping routes and cargos are inferior to those for international routes, a nd it is unnecessary 
for officials to conduct customs clearance, quarantine and security on cargo that is shipped 
domestically. Therefore, the commercial port dues for domestic shipping routes are 60% lower 
than those for international routes, and non -national ships approved to operate on domestic 
routes enjoy the same discount.  
Question 7:  Does Chinese Taipei plan to reduce harbour dues for overseas routes, by equalising 
them with harbour dues for domestic routes, and, if so, when?  
Answer : 
Domestic routes  are cabotage of interior affairs, international routes are not accorded unfair 
treatment. In addition, since the wharf and handling facilities for domestic shipping routes are 
inferior to those for international shipping routes, and the officials do not c onduct customs clearance 
or quarantine and security, the commercial port dues for domestic shipping routes are assessed at 
40% of the rate for international routes. Therefore, there is no plan to reduce harbour dues for 
international routes.  
3.3.3 Sanitary  and phytosanitary measures  
3.3.3.2 Quarantine regulations  
Page 74 (Para 3.118)  
According to the Report, the main laws and regulations on quarantine requirements were amended, 
such as Plant Protection and Quarantine Act, the Enforcement Rules of the Plant Protection and 
Quarantine Act, Quarantine Requirements for the Importation of Plants and Plant Products.  
Question 8:  Could Chinese Taipei please provide more detailed information concerning amendments 
in the abovementioned legislation?  
Answer :  
The detaile d information about the amendments of the Plant Protection and Quarantine Act, the 
Enforcement Rules of the Plant Protection and Quarantine Act, the Quarantine Requirements for the 
Importation of Plants and Plant Products can be found in our WTO/SPS Notifi cations, i.e., 
G/SPS/N/TPKM/327, G/SPS/N/TPKM/333 and G/SPS/N/TPKM/465.  
Question 9:  Do these changes deal with import procedures that include the determination of 
timeframe of pest risk assessment process?  
Answer :  
The above -mentioned amendments do not involve the import procedures and timeframe of pest risk 
assessment.  
Question 10:  Could Chinese Taipei please inform on its standard processing period for the risk 
assessment related to fresh vegetables in accordance with the requirements of the WTO SPS 
Agreement mentioned Annex C 1 (b)?  
Answer :  
1.  The pest risk assessment for the market access of agricultural products is based on scientific 
evidences and international standards, such as WTO/SPS Agreement, International Plant 
Protection Convention (IPPC) a nd International Standards for Phytosanitary Measures (ISPM).  
2.  Since the pests associated with the commodity and the pest status are different, it takes time to WT/TPR/M/377/Add.1  
 
- 36 - 
 
  gather relevant scientific information and to conduct the evaluation of each pest. The time fo r 
assessment process will be shortened if the pest risk assessment information provided by the 
exporting countries is sufficient and complete.  
Phytosanitary measures  
Page 75 (Para 3.120)  
The Report states that "Incoming plants and plant products must have a phytosanitary certificate 
issued by the plant quarantine authority of the exporter or an electronic certificate with the 
agreement of the Chinese Taipei's plant quarantine authority; the latter has not been in place as 
there has been no such agreement so  far. Imports of soils; plants, plant products or other articles 
with soil; pests; antagonist or competitor and other organisms used as biological control agents for 
controlling pests; and packages or containers used by or harbouring the above mentioned ar ticles 
are forbidden unless they are applied for experimental, research, educational or exhibitive use by 
governmental agencies, public enterprises, schools, corporations or organizations founded and 
registered under relevant laws, and approved by the comp etent authority. Prior to importation all 
relevant documents/data for risk assessment must be submitted for approval.  Although 
certificates issued by the exporter's competent authorities are generally accepted, in a few cases 
certificates issued by organiz ations or agencies accredited or authorized by the competent authority 
may also be accepted. The authorities indicated that there have been no new phytosanitary bans 
imposed since 2014."  
Question 11:  Could Chinese Taipei please provide detailed information  concerning application 
procedure for risk assessment of plants and plant products, list of documents required and usual 
duration of this procedure?  
Answer :  
1.  According to the Article 14.4 of the Plant Protection and Quarantine Act it is required to conduc t 
risk assessment by the plant quarantine authority for first -time application for importation of 
plants or plant products. After a risk assessment is completed and concluded that there is no 
risk for pest transmission or the risk for pest transmission can  be controlled, and the relevant 
quarantine requirement has been adopted, the importation will then be allowed.  
2.  In general, the scientific name (including the name of genus and species) or cultivar name of 
the importing regulated articles, production area s, growth properties, propagation methods, 
climatic conditions for growing regulated articles, yield, harvest season, the post -harvest 
process, pest list of the regulated articles, the information of pest control and the list of chemicals 
used which are re quired for the risk assessment. The exporting country can specified the type 
of plants or plant products to the Bureau of Animal and Plant Health Inspection and Quarantine 
(BAPHIQ) because of the variety of plants or plant products, and BAPHIQ will provide  the list of 
required information.  
3.  Please see our answer to question 10 about the time for assessment process.  
Question 12:  Ukraine would appreciate if Chinese Taipei could also provide the link, where 
information concerning detailed import requirements for mentioned goods (in English) is available, 
considering that the link, mentioned in the footnote 182 of the Report, is not active.  
Answer :  
Detailed import requirements as mentioned in footnote 182 of the Report can be found at: 
https://law.moj.gov.tw/Eng//LawClass/LawContent.aspx?pcode=M0140002 . 
Sanitary measures  
Page 75 (Para 3.121)  
Under the Report "Animals and animal products remain subject to in spection and quarantine. The 
import/export of items subject to quarantine can only be handled by quarantine authorities or 
authorized organizations (Article 32 of the Statute). Risk assessment by the animal quarantine 
authority is required for a first -time application for importation of animals or animal products."  
Question 13:  Could Chinese Taipei please provide detailed information concerning application 
procedure for risk assessment of animals and animal products, list of documents required and usual 
duration of this procedure?  WT/TPR/M/377/Add.1  
 
- 37 - 
 
  Answer :  
1. According to the Article 9 of the Quarantine Requirements for the Importation of Animal and 
Animal Products it is required to conduct risk assessment by the animal quarantine authority for 
first-time application for import ation of animals or animal products. After a risk assessment is 
completed and concluded that there is no risk for disease transmission or the risk for disease 
transmission can be controlled, and the relevant quarantine requirement has been adopted, the 
importation will then be allowed.  
2. In general, the background information (including name, composition, package, and 
specification), the origin of animal ingredients, the production process, the statistical data for 
exportation, and the relevant regulations an d supervision mechanism of the applying products 
are required for the risk assessment. The exporting country can specified the type of animal 
products to the Bureau of Animal and Plant Health Inspection and Quarantine (BAPHIQ) because 
of the variety of ani mal products, and BAPHIQ will provide the list of required information.  
3. The progress of reviewing depends on the quality and completeness on information and speed 
of responding provided by exporting countries.  
Pages 75 - 76 (Para 3.122)  
The Report notes t hat "At present, Chinese Taipei bans the entry of animals and animal products 
from territories infected with foot -and-mouth disease, rinderpest, contagious bovine 
pleuropneumonia and African swine fever. In addition, the following animals are prohibited fr om 
importation: (i) bovines from a zone affected by Bovine spongiform encephalopathy (BSE) ; 
(ii) elephants from a zone affected by foot -and-mouth disease; (iii) perissodactyl animals from zones 
affected by glanders; and (iv) poultry and birds from zones af fected by highly pathogenic 
avian influenza . Animal products prohibited from importation include: (i) products with 
disease -transmission potential derived from perissodactyl animals from zones affected by glanders; 
(ii) poultry from territories (zones) recognized as infected with highly pathogenic avian 
influenza or Newcastle disease; and (iii) products with potential to transmit BSE from 
territories (zones) with reported case(s) of BSE . Imports of fishery products (live, fresh, 
chilled, or frozen) requi re a certificate of origin issued by either the authorities of the exporting 
territory or its authorized representative."  
Question 14:  Does Chinese Taipei recognize the zoning principle in the case of highly pathogenic 
avian influenza outbreaks in countrie s, which are trade partners with Chinese Taipei?  
Answer :  
1. As a Member of the WTO and OIE, the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu accepts the concept of zoning and follows the international standards and conducts 
risk assessments  based on scientific evidences to evaluate all applications. The application 
procedures apply to all trading partners equally and without discrimination. So far we have 
recognized regionalization for the disease -free approval of the United States, Canada, Australia, 
Italy (ASF), and Brazil..  
2. If a disease outbreak occurs in the territory of a country, the country can apply for the recognition 
of disease -free zone by following our procedure. Otherwise, the country can apply for the 
recognition of disease -free status for its entire country after the eradication of the disease and 
with conformity to the OIE guidelines for disease -free countries. Upon receiving the application, 
we will commence the review process.  
Question 15:  In accordance with the OIE Terrestri al Animal Health Code there are negligible, 
controlled and undetermined BSE risk status countries, which are available on OIE web site. Ukraine 
has an undetermined BSE risk status and no cases of BSE ever reported. In this regard, could 
Chinese Taipei plea se clarify whether it will take into account the standards of international trade 
for the countries with undetermined status (such as Ukraine)?  
Answer :  
According to the Regulations for Systematic Inspection of Imported Food, the importation of meat 
products listed in 02, 0504, 1601 and 1602 of the Harmonized System Codes (HS Codes) shall apply 
to the systematic inspection. Only if the food safety management system of the exporting country 
(territory) is determined as equivalent as that of the Separat e Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu, the application will be approved. For beef and products of bovine origin, taking 
account of BSE risk, TFDA sets a more rigorous review process to assess the safety of the application. 
If Ukraine is r ecognized as "undetermined BSE Risk status" by the OIE, its beef export application 
for systematic inspection would not be accepted by TFDA.  WT/TPR/M/377/Add.1  
 
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  4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.2 Financial services  
Pages 121 - 126 
The Report describes institution al and legislative framework for financial services activities in Chinese 
Taipei together with the regulatory developments that have occurred during the period under review.  
Question 16:  Could Chinese Taipei please describe the procedure for assessment of transparency 
of banks' ownership structures by the Financial Supervisory Commission (FSC): indicators of a 
non-transparent ownership structure and approaches to revealing banks' beneficial owners?  
Answer : 
According to Article 25 of the Banking Act, the same person or same concerned party who intends 
to singly, jointly or collectively acquire more than 10%, 25% or 50% of a Bank's outstanding voting 
shares shall apply for prior approval of the FSC for maintaining the transparency of shareholders' 
equity. T he FSC will carefully review the fitness and properness of the major shareholders, including 
the professional competence of managing a financial institution, the planning of management team, 
corporate governance, capital and financial improvement, protecti on of employee's rights, and 
protection of depositors' rights and interests, etc.  
Question 17:  What are the requirements for authorization/licensing of non -banking financial 
institutions (types of activities subject to authorization/licensing, key requirem ents to applicants, 
approval procedure, including verification of sources of funds used for capital formation, assessment 
of financial standing, business reputation and transparency of applicants' ownership structure)?  
Answer :  
Under the Banking Bureau of the FSC, non -banking financial institutions include: (1) electronic 
payment institutions, (2) electronic stored value cards issuers, (3) b ills finance companies, and 
(4) credit card companies. Relevant requirements, types of activities and approval procedu re are as 
follows:  
1. Electronic Payment Institutions : 
Electronic payment institutions mean companies approved by the competent authority to accept, 
through a network or electronic payment platform, the registration and opening of an account 
by users that kee ps track of their funds transfer and funds deposit records.  
(1) The types of authorized activities are regulated by Art. 3 of the Act Governing Electronic 
Payment Institutions.  
(2) The requirements of applicant are regulated by Art. 30 of the Rules Governing the 
Administration of Electronic Payment Business.  
(3) The approval procedure is regulated by Art. 10 of the Rules Governing the Administration of 
Electronic Payment Business.  
2. Electronic Stored Value Cards Issuers:  
Electronic stored value card issuers mean companie s issuing an IC chip, card, certificate or other 
forms of debt obligation that use electronic, magnetic or optical means to store monetary value 
and performs the function of data storage or computing, and is used for multiple payment 
purposes.  
(1) The types of  authorized activities are regulated by Art.5 of the Act Governing Issuance of 
Electronic Stored Value Cards.  
(2) The requirements of applicant are regulated by the Regulations Governing Concurrent 
Serving Restrictions and Matters for Compliance by the Responsible Persons of Electronic 
Stored Value Card Issuers.  
(3) The approval procedure is regulated by Art.7 of the Act Governing Issuance of Electronic 
Stored Value Cards.  
3. Bills Finance Companies:  
The business of a bills finance company includes certifying and underwriting short -term bills and 
financial bonds; brokering and trading short -term bills, financial bonds and government bonds; 
and guaranteeing and endorsing short -term bills.  
(1) The types of authorized activities are regulated by Art.21 of The Act Gove rning Bills Finance 
Business.  
(2) The requirements of applicant are regulated by Art. 2 and Art.4 of Standards Governing the 
Establishment of Bills Finance Companies.  
(3) The approval procedure is regulated by Art.13 -14 of the Act Governing Bills Finance Business,  
and the Standards Governing the Establishment of Bills Finance Companies.  WT/TPR/M/377/Add.1  
 
- 39 - 
 
  4.  Credit Card Companies:  
Credit card business institutions mean any of the following institutions: (1) a credit card 
company. (2) a foreign credit card company. (3) a bank, credit co -operative or other institution 
which has been approved by the Competent Authority to engage in a credit card business as a 
concurrent business. (4) other institutions approved by the Competent Authority to engage in a 
credit card business.  
(1) The types of au thorized activities are regulated by Art.2 of the Regulations Governing 
Institutions Engaging in Credit Card Business.  
(2) The requirements of applicant are regulated by Art.3 of the same regulations.  
(3) The approval procedure is regulated by the Art.4 -6 of the s ame regulations.  
5. The related laws are available in the website:  
https://law.banking.gov.tw/Eng/FLAW/FLAWQRY01.aspx . 
Question 18:  What are specific approaches to regulation of state -owned banks' activities and 
requirements to corporate governance in state -owned banks in Chinese Taipei?  
Answer :  
The domestic banks in our jurisdiction are supervised and managed by the same regulations 
regardless of whether the bank is state -owned or not.   
Question 19:  What are specific approaches to regulation of Fintech companies and supervision over 
their activity in Chinese Taipei?  
Answer :  
1. The Financial Technology Development and Innovat ive Experimentation Act ("the Act") was 
enacted on April 30, 2018. The Act helps promote FinTech development and establishes an 
innovative experimentation mechanism which will create a safe environment (exemption of 
applicable financial laws and regulation s) for FinTech providers to conduct R&D and pilot trials. 
The experimentation period is up to one year and the applicant may apply for one -time extension 
up to six months. However, if the experiment involves amendment of existing laws, the extension 
is not  subject to the restriction of one -time extension and the overall experimentation period 
may be extended to three years. If the experiment turn out benefiting the financial market and 
meeting consumers' needs, the FSC would endeavor to review and revise re levant financial laws 
and regulations.  
2. For the promotion of FinTech, the FSC bases on four regulatory principles to encourage FinTech 
development while safeguarding financial stability and consumer's interest, including how to 
strike a balance between enco uraging innovation and controlling risks, develop responsible 
innovation, preserve technology -neutral, and conduct risk -based supervision. According to these 
principles, the FSC has launched some major initiatives, such as establishing the experimental 
mechanism for FinTech innovation (regulatory sandbox), setting up a "FinTech Space" (FinTech 
Cluster), building the Financial Information Sharing and Analysis Center (F -ISAC), promoting 
e-payment, and introducing internet -only banks, etc.  
4.4.5 Tourism servic es 
Page 135 (Para 4.176)  
According to the Report, the Tourism Bureau is implementing the Tourism 2020: A Sustainable 
Tourism Development Plan approved in January 2018, which has 5 main action plans to fulfil the 
objective of Chinese Taipei being a "friendl y, smart and experience -filled Asian travel destination". 
The fourth action plan is to promote "smart tourism" involving the integration and improvement of 
services for tourists, including information, ticketing systems and public transport services.  
Quest ion 20:  What key marketing tools does the Tourism Bureau use for implementation of the 
fourth action plan relating to the promotion of "smart tourism"?  
Answer : 
1. I-center travel service innovation plan: providing guidance to local governments to set up a 
Tourism Service Center at the transportation stations under their jurisdiction and subsidize the 
operation and management expenses.  
2. Domestic Pass Promotion Plan: provide guidance to counties and cities to use electronic tickets 
and integrate existing transpo rtation and related industries, such as food, accommodation, WT/TPR/M/377/Add.1  
 
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  travel, shopping as well as store offers, to offer recommended itineraries, so as to guide 
travellers to easily visit the highlights of the cities.  
3. Domestic Tourist Shuttle Bus service upgrade plan: provide guidance to county and city 
governments to plan bus connections between major domestic transportation stations and 
important sightseeing spots with international development potential.  
4. Domestic To ur Bus service renewal plan: provide guidance to travel agency plans to develop 
half-day, one -day, two -day and round -the-island package tours.  
5. Raising covering areas of iTAIWAN free WiFi and upgrading internet speed.  
6. Itravel, a mobile application service, offers many kinds of tourism information and advices 
automatically tour plans increasing or reducing view points by yourself. Finally, an AI chatbot 
can reply you most questions about tourism in 24 hours every day.  
WT/TPR/G/377 – Government Report  
Page 12  (Intellectual property)  
Under the Report, some legislative amendments were launched in 2017 in order to afford greater 
protection to medical and pharmaceutical innovations (after comprehensive review of the current 
guidelines for pharmaceutical patent ter m extension), to protect the intellectual property of 
patentees and to reduce the risk of patent infringement by generic drug companies through 
introduction of patent linkage system.  
Question 21:  Could Chinese Taipei kindly explain the reasons for the nece ssity to strengthen 
intellectual property protection of medical and pharmaceutical inventions?  
Answer :  
In addition to having a strong capacity in manufacturing generic drugs, our biotechnology and 
pharmaceutical industries in recent years have gradually e quipped themselves with the ability to 
research and develop new drugs. To step up the industries' R&D effort, we amended examination 
guidelines for pharmaceutical patent term extension in 2017. In the same year, the amendment to 
the Pharmaceutical Affairs Act was also passed to provide a legal foundation for the linkage system 
between marketing approvals of generic drugs and patented pharmaceutical products.  
Question 22:  Please, provide further details regarding patent linkage system, introduced by the 
partial amendment to the Pharmaceutical Affairs Act to facilitate resolutions to patent infringement 
disputes between patentees and generic drug companies prior to market entry of the generic drugs.  
Answer : 
After implementing the patent linkage, the license ho lder of a new drug is required to list patent 
information. It is also required that the applicant of a generic license provide a declaration stating 
no patent infringement. The patentee and the holder of the corresponding new drug should be 
notified. Once the patentee files the lawsuit within 45 days after receiving notification, TFDA will stay 
12 months for approval. During the stay period, the review process is still undergoing without any 
suspension. The first generic holder challenging the patent succes sfully will receive a 12 -month of 
market exclusivity.  
Question 23:  Has the Ministry of Health and Welfare implemented subsidiary regulations and set 
up a platform for uploading patent information, enabling the appropriate amendment to take effect?  
Answer :  
The draft regulation for patent linkage is under development, a platform for uploading patent 
information is currently under construction and is expected to be completed early next year.  
Page 16 (Para 3.28)  
It is mentioned in the Report that the Financia l Technology Development and Innovative 
Experimentation Act ("the Act") came into force on 30 April 2018. The Act was enacted to establish 
a Fintech innovative experimentation mechanism and create a safe environment for Fintech R&D 
and pilot trials for the  financial industry and related sectors, while maintaining and orderly financial 
market and safeguarding consumers' rights.  
Question 24:  Does the Financial Technology Development and Innovative Experimentation Act 
("the Act") provide the regime of "sandbox" for Fintech companies?  WT/TPR/M/377/Add.1  
 
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  Answer :  
Yes, the Financial Technology Development and Innovative Experimentation Act ("the Act") which 
provides the experimental mechanism for FinTech innovation applies to domestic or foreign 
individuals, sole proprietors hips, partnerships and companies. Therefore, any enterprises, including 
FinTech companies, can apply for experiments.  
Question 25:  What are the regulation specifics established by this Act?  
Answer : 
The Financial Technology Development and Innovative Experimentation Act ("the Act") was enacted 
on April 30, 2018. The experimentation period is up to one year and the applicant may apply for a 
one-time extension up to six months. However, if the experiment involves laws that should be 
amended, the experime ntation period extension is not subject to the restriction of a one -time 
extension and the overall period may be extended to three years. The Act contains the related 
regulations about application, review, supervision and administration of experiment, prot ection of 
participant's interest, exclusion of applicable regulations, and exemption of legal responsibilities. For 
more details, please refer to the full text of the Act 
(https://law.moj.gov.tw/Eng/LawClass/LawContent.aspx?PCODE=G0380254 ). 
  WT/TPR/M/377/Add.1  
 
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  7  JAPAN  
WT/TPR/G/377 – Government Report  
3. DEVELOPMENT OF TRADE AND INVESTMENT POLICIES  
3.7 Regulatory Reform and Liberalization  
Page 12, para 3.19  
Japan Question N°1:  With regards to patent linkage system, when will Chinese Taipei set up the 
platform for uploading patent information and establish enforcement regulations?  
Answer : 
The draft enforcement regulations for patent linkage is under development. The platform for  
uploading pharmaceutical patent information are currently under construction and is expected to be 
completed early next year.  
Japan Question N°2:  Does Chinese Taipei plan to publish prototype of platform for uploading 
patent information and/or publish dra ft of enforcement regulations for public consultation?  
Answer :  
The draft regulations for patent linkage and the platform for uploading pharmaceutical patent 
information will be provided for at least 60 days for public consultations.  
WT/TPR/S/377 – WTO Secretariat Report  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
Page 70, para 3.103  
Japan Question N°3:  As described in the report by the Secretariat, Chinese Taipei maintains an 
import ban on food exports from fi ve Japanese prefectures after the accident at TEPCO's Fukushima 
Daiichi Nuclear Power Station in 2011.In addition, Japan understands that Chinese  Taipei 
strengthened its import restrictions such as requiring Certificate of Origin to be attached with food 
products from all Japanese prefectures other than the above mentioned five prefectures. 
Furthermore, Japan recognizes that procedures of a referendum for keeping the import restrictions 
have been initiated in Chinese Taipei.  Japan has requested Chinese Taip ei to lift or relax the import 
restrictions over and over again. Many WTO Members have lifted or relaxed such a kind of import 
restrictions. Japan thinks that Chinese Taipei should review its own regulation measures as other 
WTO Members have done and would  like Chinese Taipei to elaborate on its process.  
Answer :  
As a series of  food safety  incidents  came to light during the review period, food safety has become 
a highly sensitive issue in the Separa te Customs Territory of Taiwan, Penghu, Kinmen and Matsu. 
As a result, consumers, consumer protection groups and legislators in the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu are highly concerned about the safety of food and 
related pro ducts imported from the affected prefectures in Japan. To ensure the food safety and 
rebuild consumer confidence, we continue to conducting risk assessment, risk communication and 
necessary risk management. We also continue to assess the safety of Japanese  food, and collect 
information on other Members' regulation measures.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
Page 85, para 3.149  
Japan Question N°4:  According to the report by the Secretariat, "no price preference has been 
published or implemented since the entry into force of the GP Act in 1999". Why has not 
Chinese  Taipei utilized 3% maximum price preferences for the Government Procurement?  WT/TPR/M/377/Add.1  
 
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  Answer : 
Pursuant to Article 44 of the GP Act, the maximum price preference is 3%, which provides no 
incentive to our domestic suppliers.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
Page 86, para 3.153  
Japan Question N°5:  According to the report by the Secretariat, "the number of complaints 
increased due to the objections of suppliers to the payment of a bid bond which they were informed 
of by the procuring entities pursuant to a notice of the audit office of Chinese Taipe i which calculates 
the related costs of a tender". Japan would like to get further explanation on the reasons why the 
number of complaints increased.  
Answer :  
The audit office of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu required 
the procuring entities in 2014 to review indictments, written rulings of deferred prosecution, and 
verdicts related to procurements. The procuring entities were requested to determine whether there 
was a situation in which the returned bid bond shall be rec overed. In many cases, the entities decided 
that it was necessary to recover the bid bond and took action accordingly . As a result, numbers of 
suppliers objected to the decisions and filed complaints with the Complaint Review Board for 
Government Procureme nt (CRBGP) of the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu.  
5. APPENDIX TABLES  
Table A2.4 Investment prohibitions and restrictions, 2018  
Page 150,  
Japan Question N°6:  Construction services are not mentioned in the table A2.4: Investme nt 
prohibitions and restrictions, 2018. Does Chinese Taipei have any regulations that restrict foreign 
construction companies from providing construction services or investing in construction services 
within Chinese Taipei? If such restrictions exist, so, could Chinese Taipei elaborate such measures 
and restriction?  
Answer : 
1. Construction industry is not included in the "Negative List for Investment by Overseas Chinese 
and Foreign Nationals", which means construction industry is not the prohibited or restric ted 
industries for foreign investors.  
2. Currently, the construction and development Company has to register with the Ministry of 
Economic Affairs in accordance with "Company Act". The construction and development company 
does not require special permission o f the government, therefore there is no regulations that 
restrict foreign company from investing in construction services within the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu.  
  WT/TPR/M/377/Add.1  
 
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  8  AUSTRALIA  
WT/TPR/S/377 – WTO Secretariat Report  
2 Trade and Investment Regime  
2.3 Trade Agreements and Arrangements  
2.3.2 Regional and Preferential Agreements  
2.3.2.1 Regional trade agreements  
Page 34 paragraph 2.26  
The report states that as at January 2018 Chinese Taipei has RTAs in force with nine countries.  
Question 1  
Which of the nine RTAs Chinese Taipei has, that have entered into force (as at January 2018), include 
provisions relating to e -commerce and which aspects of e -commerce are covered under the 
agreements?  
Answer :  
The FTAs we signed with Nicaragua,  New Zealand (ANZTEC) and Singapore (ASTEP) include 
provisions relating to e -commerce. Those e -commerce chapters cover issues such as zero duties on 
electronic transmissions, non -discriminatory treatment of digital products, e -authentication and 
e-signatur es, paperless trade, consumer protection, privacy protection, measures to minimise 
unsolicited commercial electronic messages and cooperation.  
Question 2  
Has there been any significant changes to the approach taken by Chinese Taipei to e -commerce in 
its mo st recent RTAs?  
Answer :  
The most recent RTA we signed is the Agreement on Economic Cooperation with Paraguay. The 
Agreement does not specifically address topics concerning e -commerce. However, we signed an 
E-Commerce Arrangement with Japan in 2013, where provides for limiting the liabilities of the 
Internet service providers for the removal of materials from their Internet websites that a rights 
holder claims infringe on his or her intellectual property rights.  
2 Trade and Investment Regime  
2.4 Investment regime  
2.4.1 General Investment regime  
Page 36 paragraph 2.38  
The report states that authorities had indicated consideration was being given to removing the pre -
investment screening/review requirement and replacing it with a post -investment registration 
mechanism.  
Question 3  
Can Chinese Taipei provide further details on the possibility of removing the pre -investment 
screening review requirement; is a process underway for this to happen?  
Answer :  
1. We have conducted public hearings on the draft amendments to  the Statute for Investment by 
Foreign Nationals and the Statute for Investment by Overseas Chinese. The draft amendments 
will go through the legislative process after public opinion review is completed.  
2. The draft amendments provide that prior approval wi ll only be required for investments above a 
certain amount, or in exceptional cases, such as investments in sectors on the Negative List for 
Investment by Overseas Chinese and Foreign Nationals, or other special circumstances set forth 
by the competent aut horities.  WT/TPR/M/377/Add.1  
 
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  3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.1 Anti -dumping, countervailing, and safeguard measures  
3.1.6.1 Anti -dumping and countervailing  
Page 55, Paragraph 3.46  
The report states that: "between 2013 and  2016, Chinese Taipei initiated 11 anti -dumping 
investigations" without clarifying which of these investigations resulted in measures being imposed. 
The report further states [also at paragraph 3.46] that of the 19 anti -dumping measures that were 
in force as of end -2017, "most final measures consisted of definitive duties; in five cases price 
undertakings were adopted". Lastly, the report states that "seven measures were reviewed and 
extended to a total period of six years".  
Question 4  
What factors does Chi nese Taipei consider when agreeing a price undertaking, in contrast to 
imposing a 'definitive' anti -dumping duty?  
Answer :  
The decision whether to accept the offer by a foreign producer/exporter for a price undertaking must 
be made in conformity with the p rovisions of the Regulations Governing the Implementation of the 
Imposition of Countervailing and Anti -Dumping Duties. The primary substantive conditions for a 
price undertaking to be accepted by the Ministry of Finance (MOF) are as follows:  
1. The foreign  producer/exporter must fully respond to the questionnaire, and an individual 
dumping duty rate has been preliminary determined.  
2. The producer/exporter of the subject merchandise are not associated with the importers.  
3. The injurious effect of the dumpi ng will be eliminated by the price undertaking.  
4. There is no risk of cross -compensation of prices.  
5. The measure can be easily monitored and implemented by the MOF.  
Question 5  
When does Chinese Taipei conduct "sunset" reviews for anti -dumping measures, and for how long 
can measures be continued following this review?  
Answer :  
Prior to the time that the imposition of an anti -dumping duty has exceeded four years and six 
months, the MOF shall make a public notice that the period of imposition is approaching  five years. 
If the interested parties consider that the continuous imposition is necessary, they may apply for 
the initiation of a sunset investigation within one month following the publication of the aforesaid 
public notice. The MOF shall make a public notice prior to the expiration of the imposition period 
whether to initiate a sunset investigation.  
The sunset investigation shall be finished within one year. The anti -dumping duty shall remain in 
force pending a determination of the sunset investigation.  
Question 6  
Does Chinese Taipei impose a time limit for which a measure can be in place?  
Answer :  
The imposition of the anti -dumping duty shall be terminated on a date no later than five years from 
its imposition or from the date of the continued impositio n, unless the competent authorities have 
initiated a sunset investigation and determine that the expiry of the duty would be likely to lead to 
continuation or recurrence of dumping and injury.  
Question 7  
What is the average length of time that anti -dumping  measures are in place?  
Answer :  
It depends on the situations of the cases. Since the Implementation Regulations has been 
promulgated, there have been 63 anti -dumping applications. After investigation, anti -dumping 
duties were levied on 19 cases. Currently , anti-dumping duties are still imposed on 7 cases, including 
footwear, toweling products, Portland cement and its clinker, Benzoyl peroxide, SUS 300 series 
stainless steel, certain flat -rolled steel products coated with zinc, carbon steel plate, among whi ch, WT/TPR/M/377/Add.1  
 
- 46 - 
 
  anti-dumping duties have been imposed on footwear and toweling products for over 10 years. The 
imposition period for the other 6 subject products is less than 10 years.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Tra de 
3.3.2 Standards and other technical requirements  
3.3.2.1 Standards, testing, and certification  
3.3.2.1.1 Voluntary, compulsory and aligned standards  
Page 70, Paragraph 3.100  
In December 2015, amendments to the School Health Act banned the use of process ed food with 
biotechnology ingredients in school meals. Reportedly, this ban of genetically modified (GM) 
ingredients was not supported by scientific evidence and contradicted the GM food approval list 
issued by the MOHW (Section 3.3.3.1). According to the  authorities, these amendments were 
proposed by the legislators and approved expeditiously therefore there has not been sufficient time 
to proceed with their WTO notification, which, as of April 2018, was still pending. Some of Chinese 
Taipei's trading par tners urged it to remove this ban at the 2016 Trade and Investment Framework 
Agreement (TIFA) Council meeting.  
Question 8  
Noting the decision to ban GM ingredients in schools reportedly contradicted the GM food approval 
list issued by MOHW, how was the dec ision made and what evidence was used to base the decision 
on? 
Answer :  
Our legislators, based on international concerns regarding the reported safety of genetically modified 
foods, banned the use of processed food with biotechnology ingredients in school meals in order to 
take extra precautions in the face of potential risks of uncertainty, particularly for students who are 
in a period of physical and mental maturation. We will continue to communicate with lawmakers on 
this issue.  
3 TRADE POLICIES AND PRAC TICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary measures  
3.3.3.1 Food standards -setting framework  
Page 72, Paragraph 3.114  
Reportedly, Chinese Taipei's slow process for establishing MRLs for pesticides, low number of 
approved MRLs, and zero tolerance policy for pesticides without established MRLs have resulted in 
incoming agricultural shipments being stopped at the ports of entry and other restrictions. Concerns 
also relate to MRLs that are considered not Cod ex standards - or science -based.  
Question 9  
Australia would like clarity on why Chinese Taipei's process for applying for and establishing an 
Import Tolerance Maximum Residue Limit (MRL) does not align with Codex data requirements or 
those of the implemente d and endorsed APEC MRL Import Tolerance Guidelines?  
Answer :  
The process of evaluating the pesticide MRLs of imported crops is in line with the process for 
establishing the pesticide MRLs of domestic crops. We follow the principle of establishment of 
pesticide MRLs which is based on international standards (Codex), standards of developed countries 
(e.g. the U.S., EU, Japan etc.) and scientific principles. Furthermore, the levels at which the MRLs 
are set will depend on the dietary pattern and total dietary  intake of the consumers in the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu and will eventually be established on the 
basis of risk assessments.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3 . Sanitary and phytosanitary measures  
3.3.3.1. Food standards -setting framework  
Page 74, Paragraph 3.117  
Chinese Taipei is one of the major importers of genetically modified (GM) crops. Its regulatory and 
institutional framework remained virtually unchange d during the review period. In 2015, the Feed WT/TPR/M/377/Add.1  
 
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  Control Act was amended to contain a legal basis for managing GM feeds. Since 2014, an Advisory 
Committee in Genetically Modified Foods has been in place to: formulate genetically modified foods 
policies and st rategies; and study and formulate genetically modified foods related plans and other 
genetically modified foods related matters. All genetically modified food raw materials (GMFRM) 
must be reviewed by the competent authority in health risk assessment; prod uct registration must 
be filed for and a permit document procured from the competent authority (Article 21 of the Act 
Governing Food Safety and Sanitation). Importers of GMFRM must file for product registration, 
obtain a permit document and then install a traceability system for tracing the source and tracking 
the flow of the GMFRM (Sections 3.3.2.1.1 and 3.3.2.2). A grace period of two years was given to 
unregistered GMFRM already present on the market until 2016. Food businesses in Chinese Taipei 
must ret ain records, documents, electronic files, or a database of incoming products and GMFRM for 
a period of five years. As at January 2018, Chinese Taipei had approved 130 GM foods.  
Question 10  
The paragraph above states that food businesses in Chinese Taipei m ust install a traceability system 
for tracing the source and tracking the flow of GMFRM. If the GMF RM has been approved in 
Chinese  Taipei, what risk is the requirement for a traceability system aimed at managing?  
Australia would like clarity on why Chinese  Taipei's process for applying for and establishing an 
Import Tolerance Maximum Residue Limit (MRL) does not align with Codex data requirements or 
those of the implemented and endorsed APEC MRL Import Tolerance Guidelines?  
Answer :  
1. According to Article 9 o f the Act Governing Food Safety and Sanitation and Food Business Shall 
Establish Traceability System of Food Products, food manufactures, importers, and retailers of 
25 types of food products and materials such as edible oils, meat, soybeans, corn, and whe at 
are mandated to establish a food traceability system. The regulation is to strengthen industry's 
obligation to keep track of the flow of the products, and the origin of their raw materials, and to 
facilitate rapid responses of health authorities and foo d operators when food -related incidents 
occur. The regulation is not specifically for GMFRM.  
2. Please refer to the reply of Question 9 above.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.2 Forestry  
Page 108, Paragraph 4.46  
The report states that 99% of the timber used in Chinese Taipei is im ported. It also details 
Chinese  Taipei's measures to address domestic illegal logging activity on page 107, paragraph 4.42.  
Question 11  
What measures does Chinese Taipei utilise to manage and  minimise the risk of the importation of 
timber and timber products sourced from illegal logging activities?  
Answer :  
Currently, there is no special law as for the prohibition or restriction of the import, export, 
manufacture, transportation and processing  of timber and forest products in the Separate Customs 
of Taiwan, Penghu, Kinmen and Matsu. However, in response of the international trend of promoting 
legal timber trade, we have set up gradual steps:  
1. Step 1: Introducing and promoting the concept of lega l trade in timer and associated products 
to domestic timber trade companies. Providing counselling services so they can get familiar with 
this concepts and related procedures.  
2. Step 2: Planning for introducing due diligence system in timber and associated t rade, and 
establish related rules. Our risk management is based on products and sources of imports.  
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.1 Overview  
Page 120 paragraph 4.105  
The Report states that all of the RTAs to which Chinese Taipei is a signator y contain provisions on 
trade in services (Section 2.3.2); however only the RTAs with Singapore, New Zealand and 
Guatemala contain schedules of specific commitments on services which, in many instances, 
represent improvements over those scheduled under its  GATS schedule.  WT/TPR/M/377/Add.1  
 
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  Question 12  
Can Chinese Taipei identify what those GATS -plus commitments consist of?  
Answer :  
Our GATS -plus commitments in those RTAs consist of transport services, construction and related 
engineering services, distribution services, educa tion services, environmental services, and mode -4. 
In terms of transport services, we have further liberalized maritime support, airport ground handling, 
and catering services. We have also removed restrictions on cross -border supply of construction and 
related engineering services (mode 1). Detailed information can be found in our 2014 TPR Report 
by the Secretariat (WT/TPR/S/302/Rev.1) and in the respective factual presentation reports.  
  WT/TPR/M/377/Add.1  
 
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  9  SWITZERLAND  
WT/TPR/S/377 – WTO Secretariat Report  
1 ECONOMIC ENVIRONMENT  
1.2.4.4 Labour market policies  
Para. 1.17  
Question 1:  Minimum wages in Chinese Taipei significantly increased between 2014 and 2017 
(paragraph 1.17), while the unemployment rate declined during the same period (table 1.1, 
paragraph 1.3).  Is evidence available on the impact of the increase in minimum wages on 
unemployment rates in low -wage industries?  
Answer :  
1. Adjustments of the basic wage are reviewed by the Basic Wage Deliberation Committee. The 
Committee is composed of laborers, employers, academic experts and government officials. They 
determine the basic wage after thorough deliberation and discussion. The Committee members 
contemplate social -economic indicators, such as conditions of domestic economic development, 
price indices, income, a verage individual income, the labor productivity of different industries, 
employment circumstances, workers' wages in different industries, and surveys and statistics on 
household income and expenditure.  
2. In order to maintain the basic living standard for laborers, basic wages were raised progressively 
from 2014 to 2017. The unemployment rate was stable and below 4% during that period. There 
was no significant change in the unemployment rate of specific industries.  
2 TRADE AND INVESTMENT REGIME  
2.3.2.1 Regi onal trade agreements (RTAs)  
Para. 2.33  
Question 2: The report states that Chinese Taipei continues to seek to join the CPTPP and is 
undertaking preparatory works, in particular through adjustments. Could Chinese Taipei provide 
further details what kind of  adjustments it still needs to undertake and when it expects to finalize 
the updating of its impact assessment study respectively to engage into negotiation with the CPTPP? 
The report also states that Chinese Taipei seeks to participle in the RCEP. Could C hinese Taipei 
indicate what steps have already been undertaken in this regard?  
Answer :  
1. Our government has been actively promoting trade liberalization by harmonizing its trade regime 
with international norms. We have therefore referenced the high standard s of the CPTPP to 
modify our trade regime by putting forward 12 legislative amendments in the past two years. 
Seven amendments have been completed, while the remaining five are under review. The 
amendments cover the areas, including IPR, investment in the operation of foreign flag fishing 
vessels, pharmaceutical affairs, plant variety, agro -pesticides management, control of cosmetic 
hygiene, digital communications, etc.  
2. Our relevant ministries are reviewing the impact assessment reports in order to make nec essary 
adjustments.  
3. The RCEP is still in the process of negotiation. We are following the progress of the RCEP 
negotiations very closely and keeping bilateral dialogues with the RCEP members to explore the 
opportunity for our accession in the future.  
2.4.1  General investment regime  
2.38 Since the previous review, there have been no changes to the legal framework. 2012 
amendments to the "Statute for Investment by Foreign Nationals" were not passed by the 
legislature. Given this development, the MOEA has been  conducting a comprehensive re -evaluation 
of the current draft amendments. It has sought public comments and is working to put together all 
relevant opinions. Thereafter it will revise the draft of the amendment and submit it through the 
regular legislative process. In this context, the authorities indicated that consideration is being given 
to removing the pre -investment screening/review requirement and replacing it with a 
post-investment registration mechanism.  WT/TPR/M/377/Add.1  
 
- 50 - 
 
  Question 3 : Para. 2.38 states that  the amendments proposed in 2012 to the "Statute for Investment 
by Foreign Nationals" (further market liberalization) were not passed by the legislature. Could you 
inform us on the reasons? Could you also provide further information on why – in the current  
legislative process – Chinese Taipei is considering to remove the pre -investment screening/review 
requirement and replacing it with a post -investment registration mechanism?  
Answer :  
1. The 2012 amendments to the Statute for Investment by Foreign Nationals h ad not reached 
consensus, and ultimately were not passed when the legislative session adjourned in December 
2015. As the legislators' term had ended, the amendments were not automatically reintroduced 
in the next session according to the relevant law.  
2. The amendment to the Statute for Investment by Foreign Nationals aims to simplify the existing 
procedures for reviewing investment by foreign nationals, which will facilitate the procedure of 
investment and attract foreigners to invest in the Separate Customs  Territory of Taiwan, Penghu, 
Kinmen and Matsu.  
2.4.1 General investment regime  
Para. 2.42  
Question 4 : With which economies is Chinese Taipei currently negotiating a BIT?  
Answer :  
We have updated the bilateral investment agreement with the Philippines. The  new BIA took effect 
on March 1, 2018. We are currently updating BIAs with our New Southbound Policy partner countries, 
such as Viet Nam and India. In addition, we are exploring the possibility of entering into BIA 
negotiations with the United States, Cana da, and the European Union.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.3.2 Applied MFN tariffs  
Para. 3.25  
Question 5 : According to paragraph 3.25, Chinese Taipei tariff structure is quite complex with some 
150 tariff bands and also decimal rates. Could Chinese Taipei indicate which steps it foresees to 
simplify its tariff structure, i.e. reduce the number of tariff bands and eliminate the decimal rates as 
this would be a trade facilitating measure?  
Answer :  
1. To simplify our tariff structures, the Ministry  of Finance (MOF) had worked with other competent 
authorities to study the feasibility of substituting from alternate duties applied on certain 
agriculture products to ad valorem duties. In 2014, we concluded that the amendment of 9 lines 
(including agricu ltural and fishery products) selected from the 81 tariff lines applying alternate 
duties in our Customs Import Tariff would be put into the content of our draft revision of Customs 
Import Tariff. The amendment became effective in July 2015.  
2. To fulfill our commitment to the Declaration of the Expansion of Trade in Information Technology 
Products, the duties on 160 tariff lines related information technology products will be eliminated 
entirely on July 1, 2021. Therefore, the tariff lines with decimal rates w ill be reduced. Currently, 
the MOF keeps working on tariff simplification with other competent authorities.  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
Para. 3.126  
Question 6: The largest amendment of the Fair Trade Act (FTA) too k place on 4 February 2015, 
where significant changes were made. Further amendments of the FTA followed on 24 June 2015 
and 14 June 2017.  
Were these two latest amendments made on the basis of the initial experience with the first large 
amendment on 4 Febru ary 2015? What were the main changes in the latest amendments?  
What are generally the experiences with the amendments of the FTA? In which areas does it work 
well and in which areas is there room for improvements?  WT/TPR/M/377/Add.1  
 
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  Answer :  
1. The amendments in June 2015 and June 2017 were proposed by the legislators, not proposed 
by the FTC on the basis of the initial experience with the firs t large amendment on 
4 February  2015.  
2. The amendment in June 2015 authorized the FTC to set up an anti -trust fund and provide rewards 
for the reporting of illegal concerted actions. To make merger reviews more discreet and 
comprehensive, the amendment in June 2017 revised t he merger review period from 30  calendar 
days to 30 working days. In addition, the FTC may ask for external opinions in  regard to merger 
field. If one of the enterprises in the merger does not agree to the merger, the FTC shall provide 
it with the reason for the merger and ask for its opinions.  
3. The amendments in June 2015 and June 2017 were passed fast and smoothly as the  
amendments only covered a few provisions of the FTA and proposed by the legislators.  
4. Since the amendments in June 2015 and June 2017, the FTC has provided 4 informants with 
rewards for reporting of illegal concerted actions. In addition, the amendments al low the FTC to 
review merger cases more comprehensively. Therefore, the FTA works well with the 
amendments.  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
Para. 3.129 and 3.135  
Question 7: Enterprises, injured by a competition rule violation, may file a claim for compensation 
at the court. Are consumers deliberately excluded from that right to sue in court? Can consumer 
instead file a complaint at the consumer protection committee, if they are injured by a competition 
rules violation ? 
Answer :  
1. If any enterprise violates any of the provisions of the FTA and thereby infringes upon the rights 
and interests of another, the injured may request the removal of such infringement; if there is 
a likelihood of infringement, prevention may also b e claimed (Article 29 of the FTA). Any 
enterprise that violates any of the provisions of the FTA and thereby infringes upon the rights 
and interests of another (enterprises and consumers are included) shall be liable for the damages 
arising therefrom (Arti cle 30 of the FTA).  
2. According to our Consumer Protection Act, local competent agencies are responsible for 
facilitating and processing consumer complaints. The most common complaints involve injury 
compensation negotiations between consumers and enterprise s. If negotiations fail, the 
consumer may apply for mediation with the local government's dispute settlement committee. 
In addition, consumers can file a lawsuit directly with the court and forgo the appeal process 
through the local governments.  
3.3.4 Comp etition policy and price controls  
3.3.4.1 Competition policy  
Para. 3.131:  
Question 8:  The report states the competition authority (FTC) concluded cooperation 
arrangements/agreements with different countries like Australia, Canada, France, Hungary, 
Mongolia, New Zealand and Panama. What is the scope of these agreements? Can FTC exchange 
(confidential) informations on cases with its counterparts?  
Answer :  
1. The scope of cooperation arrangements/agreements and MOUs mainly covers the following 
areas: noti fication, cooperation/coordination of enforcement activities, request /protection of 
information, avoidance of conflicts, confidentiality, consultations and so on. In addition, technical 
assistance/cooperation, are included in some agreements and MOUs.  
2. Confidential information exchange is allowed and should be kept confidential in accordance with 
relevant laws of each party unless the exchange is prohibited subject to their respective laws 
and regulations.  WT/TPR/M/377/Add.1  
 
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  4 TRADE POLICIES BY SECTOR  
4.2.2.2 Electricity  
Para. 4.83  
Question 9:  Tariff exemption for equipment for use in generating renewable energy is granted only 
if there is no domestic production of such equipment. This could be seen as an obstacle to the 
renewable energy goals set by Chinese Taipei (see par a 4.82). What is the reason for this kind of 
protection of domestic production in terms of environmental and economic policy?   
Answer :  
1. Tariffs are imposed on foreign imported goods in accordance with the Customs Act and relevant 
regulations.  
2. To encourage the use of renewable energy equipment for power generation, preferential 
measures are granted to exempt such equipment from import duties in order to enhance the 
importation and installation of said equipment when it does not produce domestically.  
3. By impor ting superior products from abroad, we can boost the competitiveness of goods, 
upgrade the scale and technological capabilities of our industries, while accelerating the 
promotion of renewable energy.  
4 TRADE POLICIES BY SECTOR  
4.2.2.3 Hydrocarbons and nat ural gas  
Para. 4.90  
Question 10 : How effective are the subsidies granted to encourage petroleum facility operators to 
maintain product supplies in remote areas and reduce the pricing between cities? Furthermore, how 
do the subsidies for the encouragement o f the exploration and development of oil and natural gas 
reserves relate to the general objective to reduce the dependency from fossil fuel energy (see para. 
4.77)? What effect had the APEC -peer review process of Chinese Taipei on domestic policy making?  
Answer :  
1. Subsidies for the cost of shipping and facilities in remote areas have ensured that oil prices in 
these areas are similar to those in urban areas, while guaranteeing the people of these areas 
the right to use basic energy services.  
2. (1) The goal of this subsidy is to help industries with the exploration of oil and natural gas so as 
to gain new sources of energy. It is not an incentive for consumers to overuse fossil fuels. The 
prices of oil and natural gas are still determined by the market mechanism . 
 (2) We import over 98% of our energy supply. Indigenous production accounts for only 2%, 
including oil and gas exploration. The goal of subsidizing exploration of oil and natural gas is to 
diversify the sources of energy and enhance the security of energy supply, which does not 
contradict the goal of reducing dependence on fossil fuels.  
3. We value the APEC peer review mechanism and welcome suggestions about subsidies from APEC 
experts. Those suggestions are important for us in shaping related policies in the future.  
  WT/TPR/M/377/Add.1  
 
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  10  NEW ZEALAND  
WT/TPR/S/377 – WTO Secretariat Report  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.6 Anti -dumping, countervailing, and safeguard measures  
3.1.6.2 Safeguards  
page 55, paragraph 3.50  
Paragraph 3.50 states: "Chinese Taipei maintains its right to impose Special Safeguards (SSGs) on 
10 (or 14 according to the authorities) broad categories of agricultural products (7.5% of all HS07 
agricultural tariff lines) that overlap but are not identi cal with those under TRQs (Sections 3.1.3.5 
and Section 4.1). Price - or volume -triggered SSG action was taken a gainst imports of 12, 10 and 
13 products in 2015, 2016 and 2017 respectively."  
Questions 1:  Could Chinese Taipei explain on what basis it maintains the right to impose special 
safeguards on 14 broad categories of agricultural products rather than the 10 identified by the 
Secretariat?  
Answer : 
Our SSG products include peanuts, pears, garlic, betel nuts, chicken (chicken legs and wings, other 
chicken cuts), offal (livestock offal and poultry offal), liquid milk, red beans, dried shiitake, pomelos, 
persimmons, dry day lilies, pork belly, and rice, for a total of 14 items based on our WTO accession 
commitments.  
3 TRADE POLICIES AND PRACTICES BY M EASURE  
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
3.3.2.1 Standards, testing, and certification  
page 66, paragraph 3.87  
Paragraph 3.87 states: "By the end of 2018, due to organizational policy adjustmen ts, the BSMI is 
to cease its certification services for all management systems, except for Hazard Analysis and Critical 
Control Points (HACCP). The more than 20 private or non -profit organizations providing certification 
services in one or more areas of ma nagement systems are taking over certification activities along 
with the process of BSMI's exit from the certification market."  
Questions 2:  With certification services moving to private organisations, how will Chinese Taipei 
ensure that their certificatio n standards remain reliable and high quality?  
Answer :  
1. This question refers to the certification of management systems, such as ISO 9001, ISO 14001, 
OHSAS 18001, ISO 22000, ISO 27001, ISO 28000, ISO 50001, etc., which is voluntary in nature 
and has been pe rformed by both the BSMI and private organizations over the past 30 years. The 
quality and reliability of certification services have been basically maintained by accreditation.  
2. Along with the full -fledged development of private sector in this area, the ro le of the government 
was reviewed so as to use the limited resources in the most efficient way. Withdrawal of the 
BSMI from the voluntary certification market did not have impact on the services provided by 
private sector, and is in line with the common pr actice in most countries, where certification 
services of voluntary management system are solely operated by private sector.  
Questions 3:  Does Chinese Taipei expect that this change will impact the operation of MRAs in any 
way (such as the Electrical and Electronic Arrangement between Chinese Taipei and New Zealand)?  
Answer :  
The MRAs signed with our trading partners, including New Zealand, involve mainly mandatory 
product certification of regulated products. There will be no impact on the operation of th ose MRAs 
after the BSMI ceases its voluntary certification services on management systems.  WT/TPR/M/377/Add.1  
 
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  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
3.3.2.1 Standards, testing,  and certification  
3.3.2.1.1 Voluntary, compulsory and aligned standards  
page 69, paragraph 3.99  
Paragraph 3.99 states: "The Food and Drug Administration (FDA) under the Ministry of Health and 
Welfare (MOHW) started to gradually improve its benefit/risk -based drug -approval systems. In 
February 2017, the authorities approved plans to revise the legal status of the Centre for Drug 
Evaluation (CDE) but there has been no progress so far. In addition, a reduction in the number of 
stages in the dru g-approval process from three to two is envisaged."  
Question 4:  Does Chinese Taipei maintain expedited approval or relaxed certification processes for 
drugs imported from the "ten most medically advanced countries" and, if so, what is the basis for 
retaini ng this?  
Answer :  
There is no expedited approval or relaxed certification processes for drugs imported from the "ten 
most medically advanced countries." However, if the country of origin is one of the "ten most 
medically advanced countries." the submission  of the Free Sale Certificate (FSC) from the country 
of origin is considered as the submission of the Certificate of Pharmaceutical Product (CPP).  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.4 Trade measures  
4.1.1.4.3 Special safeguard measures  
page 102, paragraph 4.18  
Paragraph 4.18 states: "Special safeguard measures (SSGs) were taken several times during the 
review period (Section 3.1.6.2). During Chinese Taipei's previous review, it was observed that there  
had been a notable increase in price -based SSGs since 2013; this tendency is also reflected in the 
current review period …The authorities have indicated that the increased activation of price -based 
SSG's at some points may have been due to changes in dome stic supply and demand, as well as the 
commercial (i.e. profit) considerations of importers."  
Question 5:  Could Chinese Taipei explain in detail what factors account for its increasing use of 
price-based safeguards, and given their negative impact on trade , whether Chinese Taipei is 
considering reforming its use of such measures?  
Answer :  
1. The price -based SSG measures invoked are based on our WTO accession commitments and in 
accordance with the WTO Agreement on Agriculture.  
2. We will review the SSG measures a ccording to the outcomes of DDA agricultural negotiations.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.5 Domestic support measures  
4.1.1.5.1 Notified support levels  
page 104, paragraph 4.23  
Paragraph 4.23 sta tes: "A complete and up -to-date picture of domestic support levels, as notified 
to the WTO, was not available, since Chinese Taipei's most recent domestic support notification only 
covers 2011 and 2012. In the context of this Review, the authorities indica ted that a new notification 
will be submitted soon. Total domestic support for agriculture, including Green Box, and Amber Box 
(i.e. including de minimis levels), amounted to NT$52.8 billion in 2012 and fluctuated in the 
preceding years."  
Question 6:  Notin g the importance of members meeting their notifications commitments on time, 
can Chinese Taipei confirm when its updated notification will be submitted, and that it will bring its 
notifications up -to-date?  WT/TPR/M/377/Add.1  
 
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  Answer :  
The notification for domestic support measures from 2013 to 2015 will be submitted to the WTO 
Secretariat by June 2019.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.3 Fisheries  
4.1.3.2 Legal and institutional framework  
page 109, paragraph 4.53  
Paragraph 4.53 of the Secretariat's report outlines the extensive changes made to strengthen 
Chinese Taipei's framework to prevent illegal, unreported and unregulated fishing.  
Question 7:  Could Chinese Taipei please outline the number of prosecutions that have been made 
since t he Five Year Programme for strengthening international cooperation on combatting IUU fishing 
began in January 2016 and the scale of penalties that may have been imposed?  
Answer :  
To combat IUU fishing, we have conducted various measures under the Five -Year Program for 
Strengthening International Cooperation on Combating  IUU Fishing, including reinforcing the legal 
framework. Since the Act for Distant Water Fisheries and the Act to Govern Investment in the 
Operation of Foreign Flag Fishing Vessels came into effect on January 20, 2017, and as of August 8, 
2018, 79 fishing vessels have been sanctioned accordingly for violations (a total of 108  sanctioned 
notices) and fined a total of 98.36 million NT dollars （about USD 3.2 million ）.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.3 Fisheries  
4.1.3.6 Subsidies and other public sector support  
page 111, paragraph 4.63  
Paragraph 4.63 of the Secretariat's report states that since 2001, 944 vessels and 1988 rafts have 
been purchased under the Fishing Vessels buy -back programme.  
Question 8:  Could Chinese Taipei please provide figures on the number and size of the fishing 
vessel fleet and how the fishing fleet has evolved over the period since the Fishing Vessels buy -back 
programme was implemente d? 
Answer :  
1. A total of 2,932 vessels have been bought back since implementation of the Fishing Vessels 
buy-back programme between 2001 and 2017. The sizes of the vessels are as shown below:  
(1) Under 5 tons: 65  
(2) 5 - 10 tons: 170  
(3) 10 - 20 tons: 140  
(4) 20 - 50 tons: 109  
(5) 50 - 100 tons: 47  (6) 100 - 200 tons: 144  
(7) 200 - 500 tons: 174  
(8) 500 - 1,000 tons: 90  
(9) 1,000 tons and over: 0  
(10)   Sampons: 5; Rafts: 1,988  
2. Since the programme has been implemented, there has been a great impact on the evolution of 
the fishing fleet. The total number of domestic fishing vessels (crafts) decreased by 4,642 units 
between 2001 and 2016, of which 2,932 units were under the progr amme, representing 63% of 
the total decrease. The long history of vessel building restriction (replacement mechanism) and 
reduction, the freezing of the total number of vessels, the buy -back programme, and relevant 
policies have successfully decreased our fishing effort. It has also alleviated pressure on marine 
resources.  WT/TPR/M/377/Add.1  
 
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  4 TRADE POLICIES BY SECTOR  
4.2.2 Energy  
4.2.2.2 Electricity  
page 116, paragraph 4.82  
4.2.2.3 Hydrocarbons and natural gas  
page 118, paragraph 4.90  
We support Chinese Taipei's target to in crease the share of locally produced renewable energy in 
the total supply to 20% by 2025 (paragraph 4.82). Paragraph 4.90, states "Reduced -price diesel 
and gasoline are available for farmers and fishermen" and a number of different subsidies continue 
to be granted to support remote supply and encourage the exploration and development of oil and 
natural gas reserves.  
Question 9:  How does Chinese Taipei intend to rationalize any inefficient fossil -fuel subsidies that 
encourage wasteful consumption in line wi th SDG 12(c) so as to avoid disadvantaging renewable 
energy uptake?  
Answer :  
1.  Farmers and fishermen are among the most vulnerable and low income groups, so we provide a 
non-specific oil subsidy to the vulnerable sectors to reduce burdens caused by fluctuations in 
fuel prices.  
2.  The purpose of the Offshore Islands Sea Freight Subsidy for Petroleum Products is to ensure 
residents in the outlying islands can use the basic energy services fairly. This policy prompts oil 
prices in the outlying islands are  similar to those in the main island by subsidizing the shipping 
costs of oil, while encouraging the residents not to waste energy, and not to cause adverse 
impact on renewable energy.  
3.  We import over 98% of our energy supply. Indigenous production accounts for only 2%, including 
oil and gas exploration. The goal of this subsidy is to encourage industries to develop exploration 
of oil and natural gas so as to enhance the diversity of independent sources of these resources 
and the security of energy s upply. It draws on the feedback mechanism as an incentive, and is 
not an inefficient subsidy for fossil fuels. After industries conduct successful explorations, they 
have to return the subsidy and pay a certain percentage of the feedback funds. Since the s ubsidy 
is not offered to consumers directly, it will not provide an incentive to overuse fossil fuels and 
will not cause adverse impact on renewable energy.  
WT/TPR/G/377 – Government Report  
3 Development of Trade and Investment Policies  
3.7 Regulatory Ref orm and Liberalization  
page 11, paragraph 3.19  
Paragraph 3.19 of Chinese Taipei's report outlines the changes made to strengthen Chinese Taipei's 
legal framework to implement stronger actions on deterring IUU fishing activities.  
Question 10:  Can Chinese Ta ipei please provide information on the measures it is taking to increase 
transhipment in port of fish caught on its flagged vessels, and eliminate the practice of transhipment 
on the high seas of fish caught on its flagged vessels?  
Answer :  
1.  To manage the fishing activities of our fishing vessels in domestic and foreign ports, we conduct 
a landing declaration mechanism and promote measures, such as transhipment and landing 
inspection at domestic and foreign ports. At present, there are 32 designated foreign  ports with 
our authorized on -site inspectors, missioned inspectors, independent third -parties commissioned 
by our authority, or inspectors of port States. At main domestic ports that our distant water 
fishing vessels use, we also conduct inspections throu ghout the landing process.  
2.  As for transhipments conducted on the high seas by our fishing vessels, they are subject to the 
relevant regulations of the Regional Fisheries Management Organizations (RFMOs) of that area. 
Regional observers are commissioned on all carrier vessels to moni tor the navigation and 
activities. Our fishing vessels must receive authorization and a permit issued by our government 
prior to at -sea transhipment with carrier vessels, with the presence of the observers authorized 
by RFMOs.   WT/TPR/M/377/Add.1  
 
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  11  BRAZIL  
WT/TPR/S/377 – WTO Secretariat Report  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary measures  
3.3.3.1 Food standards -setting framework  
Page 72 ( para 3.113)  
With respect to imports of corn and soybeans,  a declaration, which states whether the shipment is 
intended for feed/industrial use or food use, is required at Customs upon arrival. Incoming rice is 
subject to batch -by-batch testing for pesticide residues, heavy metals, aflatoxin, and mycotoxins. 
The tests are generally completed within 3 -5 working days; should the test exceed five days, 
incoming rice may be released into approved warehouses with an importer affidavit awaiting the 
outcome of the test. During this time, the product cannot be sold on the  market.  
Question 1 : What is the reasoning for the intended use declaration requirement for corn and 
soybean imports? Can the use be changed subsequently? If not, what are the consequences for non -
compliance?  
Answer :  
In order to strengthen flow management  of imported products, food importers should apply for 
inspection at border with TFDA according to Article 30 of "the Act Governing Food Safety and 
Sanitation" and "the Regulations of Inspection of Imported Foods and Related Products." Food and 
related pro ducts with declaration of feed purposes or other non -food uses that have not been 
inspected by TFDA at border shall not be used for food purposes. For example, if the imported 
soybeans were decelerated for feed, it would not allowed to be used in producing  food products.  
Question 2 : Can the Chinese Taipei confirm that rice is subject to the aforementioned tests and 
indicate if and which international standards it complies with in submitting the crop to these tests? 
Are there any other crops subject to these  tests in this manner?  
Answer :  
According to Article 30 of the Act Governing Food Safety and Sanitation, all imported foods and 
relevant products are subject to inspection, and should conform to sanitation, safety and quality 
standards which are prescribed  by the central competent authority. All foods and related products 
should comply with the relevant laws and regulations, including Standards for Pesticide Residue 
Limits in Foods, Sanitation Standard for the Tolerance of Mycotoxins in Foods, and Standard for the 
Tolerance of Heavy Metals in Plant Origin.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary measures  
3.3.3.1 Food standards -setting framework  
Page 73 (para 3.114)  
3.114. Reportedly, Chinese Taipei's slow process for establishing MRLs for pesticides, low number of 
approved MRLs, and zero tolerance policy for pesticides without established MRLs have resulted in 
incoming agricultural shipments being stopped at the ports of en try and other restrictions. Concerns 
also relate to MRLs that are considered not Codex standards - or science -based.169 In 2014, the 
COA devised a set of review standards to ensure consistency in the treatment of overseas test 
reports on field efficacy and residues. The authorities indicated that they follow the principle of 
establishment of pesticide MRLs consistent with international standards on the basis of scientific 
principles, and in line with the COA's requirements for using pesticide. Furthermore, t he levels at 
which the MRLs are set depend on the dietary pattern and total intake in Chinese Taipei, and they 
are eventually established on the basis of risk assessments. The process of evaluating the pesticide 
MRLs of incoming crops is subject to the sam e principles as those for local crops.  
Question 3 : Can the Chinese Taipei confirm the situation for pesticides without established MRLs? 
Can the Chinese Taipei indicate the international standards it uses in devising the MRLs?  WT/TPR/M/377/Add.1  
 
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  Answer :  
1.  TFDA announced the Standards for Pesticide Residue Limits in Foods on October 21, 2008, and 
continued to amend this regulation to comply with international standards. Pesticides not listed 
in the table shall not be detected.  
2.  We establish pesticide MRLs based on internationa l standards (Codex), standards of developed 
countries (e.g. the U.S., EU, Japan, etc.) and scientific principles. Furthermore, the levels at 
which the MRLs are set depend on the dietary pattern and total dietary intake of consumers in 
the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, and will eventually be 
established on the basis of risk assessments. The process of evaluating the pesticide MRLs follows 
risk assessment principles to protect food safety, and is the same for both imported an d domestic 
crops.  
Question 4 : With regard to Chinese Taipei's zero tolerance policy for pesticides without established 
MRLs, can Chinese Taipei clarify if an MRL established by Codex Alimentarius for a pesticide is 
sufficient to accept importing crops usin g this pesticide, or is it necessary to go through a national 
process of evaluating that pesticide?  
Answer :  
1.  According to the Standards for Pesticide Residue Limits in Foods, pesticides not listed in the table 
shall not be detected (positive list system).  
2.  For pesticides which Brazil has approved to use, but the MRLs are not established in the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu, it is recommended to provide us with 
the relevant scientific data for evaluation in order for relevan t MRLs establishment. The list of 
required information is available on TFDA website 
(http://www.fda.gov.tw/TC/download.aspx?cid=99&pn=2 , No.11 ZIP file).  
  WT/TPR/M/377/Add.1  
 
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  12  COLOMBIA  
WT/TPR/G/377 – Government Report  
1.INTRODUCTION  
Page 3 (Para 1.3)  
El párrafo 1.3 del informe del Gobierno indica que: "…Según el informe Doing Business del Banco 
Mundial, la clasificación del Territorio Aduanero Distinto de Taiwán, Penghu, Kinmen y Matsu en 
cuanto a la facilidad de hacer negocios mejoró, pasando del 19o lugar en 2014 al 11o en 2016; sin 
embargo, en 2017, descendió al puesto 15o, lo que demuestra que el entorno empresarial interno 
aún se puede mejorar…"  
Question 1 : 
¿Qué esfuerzos planea hacer el Territorio Aduanero Distinto de Taiwán, Penghu, Kinmen y Matsu 
para lograr recuperar y/o mejorar el puesto 15° en el que se encuentra actualmente según el informe 
del Doing Business en cuanto a la facilidad para hacer negocios?  
Answer : 
To optimize the busi ness regulatory system, the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu drew up related reform programs and formulated measures to tackle low 
performance indicators, such as the "Getting Credit" indicator. For this indicator, the governm ent is 
amending the Personal Property Secured Transactions Act to reform the secured transactions 
system. Changes include deleting Article 4 of the aforementioned Act and introducing the floating 
lien system. It is expected that the draft bill will be comp leted by the end of 2018 with the legislative 
process following in due course. Also, with regards to the "Paying Taxes" indicator, we are continuing 
to review and simplify the corresponding procedures and time required for tax payment, and are 
clarifying t o the World Bank the actual time required for business income tax payments.  
Page 3 (Para 1.4)  
El párrafo 1.4 del informe del Gobierno indica que: "En el período objeto de examen, uno de los 
principales avances legislativos fue la Ley de Desarrollo y Experi mentación Innovadora de la 
Tecnología Financiera (la Ley), que entró en vigor el 30 de abril de 2018. Esta Ley fue promulgada 
para establecer un mecanismo de experimentación innovadora de tecnología financiera y crear un 
entorno seguro para la I+D y los pr oyectos piloto en materia de tecnología financiera de la industria 
financiera y los sectores conexos, manteniendo a un tiempo el orden en el mercado financiero y 
protegiendo los derechos de los consumidores. La Ley se aplica a los experimentadores que empl ean 
métodos innovadores para realizar cualquier actividad de servicios financieros que requiera la 
aprobación de la Comisión de Supervisión Financiera (FSC). Pueden solicitar realizar experimentos 
innovadores las personas físicas, las empresas por cuenta p ropia, las asociaciones y las personas 
jurídicas, así como los no residentes por medio de un agente. De este modo, el gobierno espera 
seguir promoviendo la innovación en el sector de los servicios financieros."  
Question 2 : 
¿Qué tipo de incentivos son otorg ados por la Ley de Desarrollo y Experimentación Innovadora de la 
Tecnología Financiera para promover la innovación en el sector de los servicios financieros?  
Answer : 
1.  For the purposes of providing a friendly environment for financial technology development  and 
encouraging the use of technology to develop innovative financial products and services, the FSC 
may adopt counselling and assistance measures to incentivize FinTech innovators for developing 
financial goods or services with technology, including adap ting financial regulations, establishing 
a physical cluster for FinTech eco -system development, strengthening the information security 
of financial infrastructure and technological applications, and assisting in preparation of making 
an application for app roval to undertake an experiment involving innovative financial technology, 
etc. There are no subsidies for local or foreign FinTech companies in our jurisdiction.  
2.  The Financial Technology Development and Innovative Experimentation Act ("the Act") helps 
promote FinTech development and establishes an innovative experimentation mechanism which 
will create a safe environment (exemption of applicable financial laws and regulations) for 
FinTech providers to conduct R&D and pilot trials. The experimentation peri od is up to one year 
and the applicant may apply for one -time extension up to six months. However, if the experiment 
involves amendment of existing laws, the extension is not subject to the restriction of one -time WT/TPR/M/377/Add.1  
 
- 60 - 
 
  extension and the overall experimentation period may be extended to three years. If the 
experiment turns out benefiting the financial market and meeting consumers' needs, the FSC 
will review and revise relevant financial laws and regulations.  
3.  In addition to the experimental mechanism, the FSC als o encourages overseas financial services 
providers to develop their innovative financial products or services in our jurisdiction. It has 
launched some major initiatives, such as:  
(1) Setting up a "FinTech Space", a physical cluster for incubating FinTech startups and 
facilitating related collaboration, including foreign corporations. It provides services of 
nurturing, match -making with investors and business partners and working space, enables 
collaboration among companies, academia and research organizati ons, and builds strong 
global networks.  
(2) Signing FinTech cooperation agreements with foreign financial regulators so as to strengthen 
mutual collaboration and thus assist FinTech companies to expand into each other's markets.  
(3) Holding the "FinTech Ta ipei 2018" (FinTech festival) to create a platform for idea exchange 
of FinTech talents and business opportunities. The festival will invite enterprises from around 
the world to participate in the exhibition and brainstorm new ideas.  
3 DEVELOPMENT OF TRAD E AND INVESTMENT POLICIES  
3.3 Industrial Policy and Reform  
Page 8(Para3.10)  
El párrafo 3.10, bullet 2, del informe del Gobierno indica que: "…Máquinas inteligentes: El Programa 
de Promoción de la Industria de la Maquinaria Inteligente consta de dos partes,  "Industrialización 
de la Maquinaria Inteligente" y "Transformación Inteligente de la Maquinaria Industrial". El objetivo 
es desarrollar soluciones totales y establecer un ecosistema para la industria de las máquinas 
inteligentes a través de la "Industrial ización de la Maquinaria Inteligente", sin dejar de aplicar 
soluciones totales para ayudar a las empresas a adoptar sistemas de fabricación inteligente por 
medio de la "Transformación Inteligente de la Maquinaria Industrial". Entre tanto, tomaremos en 
cuenta las necesidades de transformación inteligente de las pymes y alentaremos la adopción de la 
digitalización en el proceso productivo, de modo que pueda establecerse una red de dispositivos 
conectados a través de la caja inteligente Smart Machine Box (SMB) . Ayudaremos a las industrias 
internas a modernizar los procesos de fabricación inteligente y esperamos tener 9.000 dispositivos 
conectados a la red a finales de 2022. En el caso de las empresas que ya están dotadas de tecnología 
inteligente, prestamos asi stencia para acelerar su evolución hacia la fabricación inteligente mediante 
proyectos de I+D". (Subrayado fuera de texto)  
Question 3 : 
¿Qué tipo de ayudas o incentivos planea utilizar el Taipéi Chino para modernizar los procesos de 
fabricación inteligente en sus industrias internas?  
Answer : 
1.  The purpose of developing smart machine project is to upgrade the Separate Customs Territory 
of Taiwan, Penghu, Kinmen and Matsu's precision machine industry into smart machine industry. 
Taichung city was selected as the smart machine cluster, with a mandate to promote system -
integrated production solutions. Smart machine project has integrated variou s innovative 
resources to provide a powerful growth generator, which fits the need of the future machine tool 
market that will be driven by both service and technology.  
2.  By merging the fields of the computer science and artificial intelligence in the machi ne tool 
industry, we aim to upgrade traditional manufacturers to be equipped with smart technologies, 
smart assembly lines and cloud computing. On the other hand, we will link the manufacturers 
with demanding consumers to answer their instant requests.   
3.  The government and businesses work together to promote the international industrial 
cooperation.  
Question 4 : 
¿Cuál es la entidad de gobierno responsable del Programa de Promoción de la Industria de la 
Maquinaria Inteligente y desde cuándo se estableció este  programa?  
Answer : 
The Smart Machinery Industry Promotion Program was approved and announced on 21 July 2016. 
The Smart Machinery Promotion Office was established on 2 February 2017 by the Ministry of 
Economic Affairs. This office is in charge of coordinat ion and integration among government entities. 
It helps domestic industries keep up with global trends and seek more potential international WT/TPR/M/377/Add.1  
 
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  collaborations through bilateral conferences, seminars, business matchmaking activities and visiting 
delegations.  
Question 5 : 
¿El Programa de Promoción de la Industria de la Maquinaria Inteligente cuenta con recursos 
económicos gubernamentales solamente? O cuenta con apoyo económico del sector privado?  
Answer :  
The Smart Machinery Industry Promotion Program is coordinated and carried out by the Ministry of 
Economic Affairs, Ministry of Science and Technology, Ministry of Education and other government 
entities. Proposed project expenses will be reviewed, approved and budgeted annually by competent 
government aut horities.  
3.5 Labor Reform  
Page 9(Para3.13)  
El párrafo 3.13 del informe de Gobierno indica que: "A fin de ajustar mejor las disposiciones 
pertinentes de la Ley de Normas del Trabajo a las necesidades prácticas de los empleadores y de 
los empleados, las dis posiciones revisadas de la Ley de Normas Laborales fueron promulgadas el 31 
de enero de 2018 y aplicadas el 1o de marzo. Las recientes modificaciones de la Ley de Normas 
Laborales se han concebido para reafirmar los principios de seguridad y flexibilidad, sin dejar de 
perseguir los siguientes objetivos de política: dos días libres a la semana para los trabajadores; 
reglamentos coherentes con respecto a los días festivos nacionales; uso flexible de las horas 
extraordinarias y las vacaciones anuales; descanso  de 11 horas consecutivas, como mínimo, entre 
turnos de trabajo; etc. Además, en aras de una observancia más efectiva, el Ministerio de Trabajo 
ha reforzado el mecanismo de supervisión del gobierno y el mecanismo autónomo de negociación 
de las empresas, y ha aplicado múltiples controles de supervisión administrativa para proteger los 
derechos de los trabajadores."  
Question 6 : 
¿Podría el Taipéi Chino explicar cuáles son y cómo funcionan los mecanismo de supervisión 
administrativa implementados por el gobiern o para proteger los derechos de los trabajadores, de 
conformidad con este párrafo? ¿Desde cuándo los empezaron a implementar y cuáles han sido sus 
resultados?  
Answer : 
1.  The Labor Standards Act, which regulates administrative penalties and criminal penalties , has 
been implemented since 1984. If the conduct of a business entity is illegal, the business entity 
shall be fined in accordance with the penalties prescribed in each of the provisions of the Act. 
According to the current regulations of the Labor Standa rds Act, administrative penalties can 
range from NT$20,000 to 1 million.  
2.  Moreover, if a business entity is fined for violations in the above Act, the competent authority 
shall publicly announce the name of the said business entity or its owner(s), the per son(s) in 
charge, and shall also order such entity to make improvements within a given period; failure to 
make improvements shall incur consecutive fines. The competent authority may determine the 
amount of the fine in accordance with the number of employe es that the violation involves, the 
number of violations accumulated or the amounts to be paid according to the law.  
3.  For the existing labor inspection matters, the Ministry of Labor adopts the principle of separation 
of power. The central government is re sponsible for safety and health, while local governments 
are in charge of labor conditions. Supervision and inspections related to the Labor Standards Act 
are carried out by local competent authorities. At present, there are 337 inspectors for labor 
condit ions. 
4.  In response to substantial amendment of the Labor Standards Act  in recent years, the Ministry 
of Labor adopted the strategy of "equal emphasis on inspection and propaganda" in 2018. In 
addition to strengthening labor inspections by local competent a uthorities, advocacy conferences 
have been held regularly. The Ministry of Labor also offers counseling services to business 
entities that have difficulty in applying the Labor Standards Act, or want to know more about the 
latest laws and regulations.  WT/TPR/M/377/Add.1  
 
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  1. Introduction  
Page 3(Para 1.2)  
Question Add.1:  
Regarding the mentioned New South Oriented Policy and the Industrial Innovation Plan 5+2 
(Para.  1.2), Colombia would appreciate that Taipei provides additional information on the features 
and scope of these policies and their implementation. Colombia believes it is important to assess the 
extent to which these policies are WTO consistent, especially with the SCM Agreement.  
Answer : 
1.  New Southbound Policy: Under the Guidelines for the New Southbound Policy, the  government 
coordinates the resources and efforts of various ministries and agencies, local governments, and 
civil society to formulate work plans focusing on the following four areas: 1) economic and trade 
cooperation, 2) talent exchanges, 3) resource sha ring, and 4) regional connectivity. With the 
development and promotion of five flagship projects and three highly potential areas, we aims 
to create a new cooperation mode that seeks mutual benefits and win -win situations.Those three 
potential -laden fields  include: E -commerce, infrastructure and tourism.  
2.  Our government has made innovation an important agenda, and are promoting various measures 
in the areas of regulations, technology, capital, and talent to create an environment favorable 
to industrial deve lopment. For example, we put in place the Act for the Recruitment and 
Employment of Foreign Professionals, and issue the Employment Gold Card to foreign 
professionals, with aims to attract international talent to come to work and live in the Separate 
Custo ms Territory of Taiwan, Penghu, Kinmen and Matsu.  
3. Our government is promoting industry innovation in accordance with WTO rules. We do not 
provide any trade incentives that would impede global free trade, or cause unfair competition.  
Question Add.2:  
As to t he five industrial innovative pillars (…5+2), as outlined in paragraph 3.10, with respect to the 
one of new agriculture and its strategies to stabilize prices and grant agricultural insurance. Could 
you please clarify the extent to which these policies are  implemented and the consistency of this 
program with respect to the SCM Agreement?  
Answer : 
"New agriculture" policy and relative programs will be implemented in accordance with the SCM 
Agreement.  
WT/TPR/S/377 – WTO Secretariat Report  
SUMMARY  
Page 11(Para13)  
El párrafo 13 del informe de la Secretaría indica que…" Durante el período objeto de examen, se ha 
reducido el número de normas del Taipéi Chino, y las adoptadas como reglamentos técnicos 
(obligatorios) ascendían al 2,1% (2017) del total; el 99%  de las normas siguen siendo equivalentes 
a normas internacionales. El marco reglamentario por el que se rigen las medidas sanitarias y 
fitosanitarias y las medidas conexas fue modificado en diversas esferas, incluida la cuarentena. Los 
derechos de cuarent ena que se cobran por la entrada y salida de animales, plantas, trigo, cebada, 
maíz y habas de soja se siguen aplicando sobre una base ad -valorem. Se introdujo un sistema de 
etiquetado de trazabilidad para los productos agrícolas locales.  Durante el períod o objeto de examen, 
se plantearon con respecto al Taipéi Chino tres preocupaciones comerciales específicas relativas a 
obstáculos técnicos al comercio.".  (Subrayado fuera de texto).  
Question 7 : 
¿Podría el Taipéi Chino presentar información más detallada so bre las tres preocupaciones 
comerciales específicas relativas a los obstáculos técnicos al comercio, que se mencionan en este 
párrafo?  WT/TPR/M/377/Add.1  
 
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  Answer :  
Three TBT -related specific trade concerns and detailed information are as follows:  
1. GMO Labelling  
(1) Based on the legislature's resolution and to respect the consumer's claim for right to 
knowledge, the Ministry of Health and Welfare (MOHW) amended the Labelling Requirements 
for Prepackaged Food, Food Additives and Unpackaged Food Containing Ingredients of 
Genetic ally Modified Organisms on May 29, 2015, and announced the Labelling Requirements 
at Food Vending Locations for Food Containing Ingredients of Genetically Modified Organisms 
(GMOs) on Aug 11, 2015. All of above -mentioned regulations have already been notif ied to 
the WTO and have been fully implemented on December 31, 2015.  
(2) The above -mentioned regulations stipulate prepackaged food, food additives, unpackaged 
food and food at food vending locations that contains GMOs shall display the words 
"genetically -modified" or "with genetic modification". Highly refined foods (e.g., soybean oil, 
soy sauce and corn syrup) that are "directly" manufactured by using GMO, while the final 
product does not contain transgenic DNA fragments or transgenic protein s, shall be labelled 
the word "genetically modified" on the products. However, products which use such highly 
refined foods do not have to be labeled. Regarding the "voluntarily" label for non -GMOs, only 
non-GMOs that have international approval for cultiv ation, or food of GMOs can display the 
words "non -genetically -modified" or "with non -genetic modification".  
2. Radioactive examination reports for foods from Japan  
(1) After the Fukushima nuclear power plant incident in March 2011, TFDA implemented a control  
measure which temporarily suspending our acceptance of inspection applications for all 
imported food items which are produced in the Fukushima and other four nearby prefectures 
in Japan.  
(2) In May 2015, based on the results of radioactive surveillance to  Japanese export food at our 
border, TFDA further amended the import regulation that requiring for submission of 
radioactive examination reports issued by the Japanese government for specific food 
products originating from several specific prefectures. TFD A also implemented a measure 
that Japanese imported food should be accompanied with a certificate of origin. In order to 
avoid the barrier to trade, we also adopt flexible and pragmatic methods to confirm the safety 
of Japanese export food. For example, we  accept the certificates issued by the Japan 
Chamber of Commerce and Industry. Until now, the food products from Japan have been 
imported smoothly, and the situation of mislabeling and incorrect manufacture prefectures 
declaration has been prevented.  
3. Draft of the Organic Agriculture Act  
(1) The Act was promulgated on May 30th 2018, and will enter into effect one year after the 
promulgation date. According to Article 37 of the Act, all countries that we unilaterally 
recognize organic equivalence will have th eir equivalence status removed, if they fail to reach 
a bilateral arrangement on organic equivalence with us within one year of the law's 
enforcement. It offers the interested countries a grace period of two years to comply with 
the requirement of achievin g bilateral organic equivalence. These provisions apply uniformly 
to all WTO members. The other alternative is for foreign certification bodies to seek 
accreditation directly from our competent authority.  
(2) As our Organic Agriculture Promotion Act will s oon enter into effect, we will cooperate with 
our trade partners that seek bilateral organic equivalence to review and solve differences in 
regulations on market access and management, in order to facilitate the bilateral trade in 
organic goods.  
1. ECONOMI C ENVIRONMENT  
1.2 Recent Economic Evolution  
1.2.4.4 Labour market policies  
Page 21(Para1.18)  
El párrafo 1.18 del informe de la Secretaría indica que…"…En el marco de la política de modernización 
industrial y economía innovadora de 2017 prevista en el 17º plan de desarrollo a medio plazo, se 
contemplan nuevos mecanismos de intercambio, contratación y formación de personal.  Los 
trabajadores del exterior han mitigado en cierta medida la escasez de mano de obra en los sectores 
de las manufacturas y la construc ción. A raíz de las modificaciones introducidas en la Ley de Servicios 
de Empleo, desde noviembre de 2016 no se exige que los obreros del exterior cuyo contrato haya 
expirado salgan del Taipéi Chino al menos durante un día. A fin de promover la llegada de WT/TPR/M/377/Add.1  
 
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  profesionales de otros Miembros de la OMC, el 8 de febrero de 2018 el Taipéi Chino suavizó la 
reglamentación relativa a los visados, la residencia y el seguro médico, así como la tributación y las 
prestaciones de jubilación, incluida la deducción de la mit ad de los ingresos a efectos del impuesto 
sobre la renta habitual durante los tres primeros años, siempre que los ingresos anuales sean 
superiores a 3 millones de dólares NT.". (Subrayado fuera de texto).  
Question 8 : 
¿Podría el Taipéi Chino ampliar la info rmación sobre la manera en que se suavizó la reglamentación 
sobre la residencia, el seguro médico, la tributación y la jubilación para los trabajadores del exterior? 
¿La homologación de títulos profesionales está incluida dentro de la reglamentación modifi cada para 
los trabajadores del exterior? En caso afirmativo, a cuáles profesiones se aplica?  
Answer :  
The Act for the Recruitment and Employment of Foreign Professionals entered into force on Feb. 8, 
2018 and set an important milestone for the legislation of our talent retention and recruitment. 
Through the relaxation of rules on visas, work and residency regulations, as well as optimizing 
insurance, tax and retirement benefits, the Act is aimed at building a friendlier work and residency 
environment to inc rease incentives for foreign professionals to come and stay in the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu. Regarding persons to whom this Act is 
applicable, and the details to the protection and benefits offered by our health insura nce, taxation 
and retirement system, explanations are provided as follows:  
1. The Act is applicable to: foreign professionals, foreign special professionals, and foreign senior 
professionals.  
(1) Foreign professionals: Includes those engaging in professional work  as listed in Article 46 
Paragraph 1 Subparagraphs 1 to 6 of the Employment Services Act, freelance artists and 
short term buxiban (cram school) teachers with specialized knowledge or skills.  
(2) Foreign special professionals: To match talent needs under the i ndustrial development policy, 
the Act stipulates the setting of qualifying criteria in the fields of science & technology, the 
economy, education, culture, the arts, sports, and other fields. (These include an average 
monthly salary above NT$160,000, membe rship to a National Academy of Science, receipt 
of a prestigious international award, recommendation from a credible association, 
international reputation or previous employment in a foreign professional organization, or 
holding of a high -level executive p osition.)  
(3) Foreign senior professionals: Refers to the "senior professional personnel as needed by the 
government" as currently specified by Article 25 Paragraph 3 Subparagraph 2 of the 
Immigration Act, such as having distinctive talent in S&T and R&D or ma nagerial work at a 
special technology center or S&T institute, possessing unique capabilities in science, 
research, industry, or commerce that enables the person to make a substantial contribution 
to our economy, industry, education or welfare, or having e arned an award in an international 
competition.  
2. Provision of Retirement, Health Insurance and Tax Benefits  
(1) Strengthened retirement protection: Foreign nationals who are employed in professional 
work and have been approved for permanent residency may be included in the New Labor 
Pension System. Foreign nationals who are employed as full -time, qualified, paid teachers 
within the authorized manning strength of a public school, and who have been approved for 
permanent residency, shall have their retirement g overned, mutatis mutandis, by the 
retirement regulations for public school teachers, and may opt for either a one -time lump 
sum payment or a monthly pension.  
(2) Relaxation of restrictions on public health insurance coverage: For foreign professionals 
employed  in professional work, their spouse, minor children, and adult children who are 
unable to live independently due to physical or mental disability, having obtained 
documentary proof of residency, will no longer be subject to a 6 -month wait for inclusion in 
NHI coverage.  
(3) Provision of tax benefit: When a foreign special professional obtains first -time approval to 
work in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, for the first 
three years thereafter, he/she will be excused from paying income tax on at least half of the 
part of his/her annual salary in excess of NT$3 million.  WT/TPR/M/377/Add.1  
 
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  1.3 Developments in Trade and Investment  
Page 27(Para1.27)  
El párrafo 1.27 del informe de la Secretaría indica que…"El Taipéi Chino sigue siendo uno de los 
princip ales exportadores no solo de bienes, sino también de capital. Las salidas de inversión directa 
alcanzaron un nivel máximo en 2016, y en 2017 se redujeron un 4,5% en términos globales, lo que 
obedece a diversos proyectos de inversión exterior en gran escala , en particular los de Hon Hai 
Precision Industry Co., Ltd. en Sharp Display Products Corporation (Japón). Al igual que en el caso 
de las entradas de inversión, en el período objeto de examen, las salidas se concentraron en su 
mayor parte en el sector de l os servicios (financieros y de seguros) y en las industrias 
manufactureras (partes y componentes electrónicos; productos de informática, de electrónica y de 
óptica; y metales comunes). Por otro lado, los principales destinos individuales fueron China, los 
territorios británicos de ultramar en el Caribe (principalmente, las Islas Caimán Británicas y las Islas 
Vírgenes Británicas), Vietnam y el Japón".  
Question 9 : 
¿Podría el Taipéi Chino informar sobre sus empresas que se han establecido en Latinoamérica por 
países? ¿En cuáles sectores?  
Answer :  
According to the outbound investment statistics of Investment Commission of the Ministry of 
Economic Affairs, 409 projects were registered from 2014 to 2017 with a total amount of 
US$15,224,474,000 in Central and Sout h America, mostly in finance and insurance sector.  
Question 10 : 
¿Cuáles empresas del Taipei Chino existen en Latinoamérica que se dediquen a la manufactura de 
partes y componentes electrónicos y productos de informática, electrónica y óptica?  
Answer :  
According to the outbound investment statistics of Investment Commission of the Ministry of 
Economic Affairs, from 2014 to 2017, 20 cases of manufacturing electronic parts and components 
and computer, electronic and optical products were registered with a total amount of 
US$178,084,000 in Central and South America.  
2. TRADE AND INVESTMENT REGIME  
2.4 Investment Regime  
Page 36(Para2.37)  
El párrafo 2.37 del informe de la Secretaría indica que… "El Taipéi Chino mantiene su política de 
promover las inversiones como nuevo motor de crecimiento económico. Una comisión de inversiones 
(MOEAIC) dependiente del MOEA sigue encargándose de las cuestiones relacionadas con la selección 
y aprobación de las inversiones entrantes y la cooperación técnica, así como de las inve rsiones en 
el exterior… Además, el Departamento de Servicios de Inversión del MOEA presta servicios de 
información de ventanilla única en materia de inversiones en lo que respecta a la planificación, la 
realización y la ampliación de las inversiones en el Taipéi Chino, y promueve las inversiones en los 
"5+2" sectores innovadores. Para promover esos sectores, el Taipéi Chino utiliza incentivos tanto 
fiscales como no fiscales, entre ellos, los siguientes: bonificaciones fiscales; ayudas relacionadas con 
contratos de cesión o licencia de DPI; pagos derivados de contratos de cesión o licencia de DPI; 
subvenciones para I+D, tales como reembolsos parciales de gastos en I+D y formación de 
empleados; y préstamos a bajo interés".  
Question 11 : 
¿Podría el Taipéi Chino brindar mayor información sobre los criterios que aplica la Comisión de 
Inversiones (MOEAIC) para aprobar la inversión de una empresa en el exterior?  
Answer : 
1. Investments conducted by foreign investors are regulated by Negative list for Investment by 
foreign Nationals －including Prohibited Industries and Restricted Industries.  
2. According to Article 7 of Statute for Investment by Foreign Nationals, the investor is prohibited 
from investing in the following industries:  
(1) Those which may negatively affect domestic security, public order, good customs and 
practices, or public health; and  
(2) Those which are prohibited by the law.  WT/TPR/M/377/Add.1  
 
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  Question 12 : 
¿Qué incentivos piden a los países para que sus empresas se establezcan en el exterior ? 
Answer : 
To help our companies invest abroad, we offer the following assistances:  
1. Our foreign commercial service offices collect information on the investment environments of 
their host countries.  
2. We cooperate with the investment agencies of host countries on following matters:  
(1) Holding investment seminars to provide information on investment incentives and 
regulations of host countries.  
(2) Providing assistance to our enterprises in removing investment obstacles and expediting the 
investment procedure in the host countries.  
Question 13 : 
¿Existen sectores o empresas que tengan prohibido establecerse en el exterior?  
Answer :  
According to Article 6 of the Regulations Governing Foreign Investment by Companies, if the foreign 
investment has one of the follo wing conditions, the competent authority may not grant the approval: 
(1) domestic security, (2) negatively affecting the domestic economic development, (3) violation of 
international treaty or agreement (4) infringement of intellectual property rights, (5)  major labor 
disputes caused by violation of the Labor Standards Acts have not yet been resolved, etc.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
Page 42(Para3.9)  
El párrafo 3.9 del informe de la Secretaría indica que… "…El Taipéi Chino ha concertado acuerdos de 
reconocimiento mutuo de los OEA con los Estados Unidos (noviembre de 2012), Singapur (julio de 
2013), Israel (diciembre de 2013) y la República de Corea (diciembre de 2015); los OEA reconocidos 
por las autor idades aduaneras de estos Miembros gozan de las ventajas derivadas de la facilitación 
del comercio en el Taipéi Chino, y viceversa. En octubre de 2016 comenzó a aplicarse un programa 
piloto de OEA con China… Se está trabajando en la negociación de acuerdos  de este tipo con otros 
interlocutores comerciales (como la Unión Europea o el Japón)". (Subrayado fuera de texto)  
Question 14 : 
¿Podría el Taipéi Chino comentar las razones por las cuales con China tuvo que aplicar un "programa 
piloto" de reconocimiento mu tuo de OEA (Operador Económico Autorizado)?  
Answer : 
In light of the enormous bilateral trade volume between the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu and China, both sides share the interest of gradually promoting the 
mutual recogn ition of AEOs so as to expedite the flow of goods across the strait. To this end, since 
October 2016, a pilot program has been launched at several designated commercial ports, which 
include Keelung and Kaohsiung Harbor of the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu, and Nanking, Fuzhou, and Xiamen Harbor of China.  
Question 15 : 
¿En qué se diferencia el "programa piloto" de reconocimiento mutuo de OEA con China a los acuerdos 
con otros países como los Estados Unidos, Singapur o Corea?  
Answer :  
The "pilot program" is just a feasibility test. The comprehensive implementation of mutual 
recognition of AEO status will not be achieved until a bilateral arrangement in this regard is signed, 
such as the ones we signed with the U.S., Singapore, I srael, and Korea.   
Question 16 : 
¿Podría el Taipéi Chino presentar un balance del resultado de la aplicación del "programa piloto" de 
reconocimiento mutuo del OEA con China?  
Answer : 
The pilot project was launched in October 2016. So far, the effect of the project is relatively limited.  WT/TPR/M/377/Add.1  
 
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  3.1 Measures that directly affect imports  
3.1.1 Customs procedures and requirements, and customs valuation  
3.1.1.1 Customs procedures  
Page 43(Para3.10)  
En el parágrafo 3.10 señalan que según las autoridades, el factor que más  obstruye el levante es el 
de la eficiencia de los organismos encargados de los trámites de licencias al examinar y certificar las 
licencias de importación/exportación.  
Question 17 : 
Se ha establecido alguna estrategia para mejorar la eficiencia de estos or ganismos?  
Answer : 
We have adopted measures to enhance coordination between the Customs and other key border 
management agencies, for example, by implementing joint examination on perishable goods, to 
shorten the time for Customs clearance. Those measures c an result in more effective service 
delivery, less duplication, and savings in costs and labors.  
In addition, the Customs has utilized the CPT Single Window to conduct the cross -checking of 
customs declarations against the permits issued by the licensing agencies, in lieu of the paper -based 
checking, so as to enhance customs clearance efficiency.  
Page 45(Para3.15)  
En el parágrafo 3.15 Taipéi Chino manifiesta que han adoptado un mecanismo de gestión del riesgo 
basado en la información para equilibrar el pro ceso de facilitación del despacho de aduana con la 
eficiencia en la observancia en la frontera.  
Question 18 : 
Este sistema de gestión de riesgos es único e integral para todas las entidades competentes que 
intervienen en frontera?  
Answer : 
The intelligence -oriented risk management system is an integrated system containing inputs from 
various border agencies.  
Page 52(Para3.36)  
Question 19 : 
Regarding the duties and charges that are levied with destination to the Fund for Trade Promotion 
(Para 3.36 other charges  on imports ...), it would be useful to have a better understanding of its 
features and scope. Thus, if possible, Colombia would appreciate if you could provide the legal text, 
as well as any analysis with respect to its WTO consistency.  
Answer :  
1.  Article 21 of the Foreign Trade Act stipulates that, in order to promote foreign trade, response 
to the situations of international trade, and support trade activities, the competent authority 
may establish a trade promotion fund by collecting uniformly, through c ustoms, a trade 
promotion service fee against the goods exported/imported by exporters/importers at a rate not 
more than 0.0425% of the price of the goods exported/imported. The current rate of the trade 
promotion fee is 0.0400%. This regulation uniformly applies to both exported and imported 
goods and follows the user –pays principle. The fee is neither for protecting the domestic industry 
nor for fiscal purpose. Therefore, the collection of the trade promotion fee complies with our 
WTO obligation.  
2.  The Trade Promotion Fund is mainly used to entrust professional institutions to conduct foreign 
trade -related activities, participate in activities held by international trade organizations, provide 
trainings, etc.  
Question 20 : 
With respect to the legal framew ork of trade remedies in general and antidumping in particular, it 
would be useful to understand the nature of the changes introduced in this front. Specially the 
applicable rules in respect to price undertakings and their functioning. Thus, Colombia would  
appreciate if you could clarify what were the key adjustments?  WT/TPR/M/377/Add.1  
 
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  Answer :  
1. The decision of whether to accept the offer by a foreign producer/exporter for a price undertaking 
must be made in conformity with the provisions of the Regulations Governing the 
Implementation of the Imposition of Countervailing and Anti -Dumping Duties. The primary 
substantive conditions for a price undertaking to be accepted by the Ministry of Finance (MOF) 
are as follows:  
(1) The foreign producer/exporter must fully respond to the quest ionnaire, and an individual 
dumping duty rate for that producer/exporter has been preliminarily determined.  
(2) The producer/exporter of the subject merchandise are not associated with the importers.  
(3) The injurious effect of the dumping will be eliminated by th e price undertaking.  
(4) There is no risk of cross -compensation of prices.  
(5) The measure can be easily monitored and implemented by the MOF.  
2. The key adjustments are as follows:  
(1) With respect to price undertaking, the government of the exporting country or the for eign 
exporters may apply to the MOF in writing within 30 days from the next day of the public 
notice of the preliminary determination of subsidy or dumping.  
(2) An applicant shall provide an application of a price undertaking and commit to implement 
the terms and conditions as follows:  
● scope of the product concerned and terms of undertaking,  
● export price of the product concerned will be no less than the price of undertaking,  
● information related to the fulfilment of undertaking will be provided on a regular basis,  
● information related to the fulfilment of undertaking will be reviewed by the competent 
authority,  
● acceptance of on -the-spot verification to be conducted by the competent authority, when 
necessary,  
● commitment of not taking any compensatory arrangement or in any other form to affect 
results of the undertaking, and,  
● provision of other requirements that the competent authority deems necessary.  
3. Upon receiving the application of a price undertaking, the MOF shall provide the competent 
authority i n charge of the domestic industry and interested parties with opportunities to comment 
in writing.  
Page 55(Para3.46)  
Question 21 : 
As to the record of investigations presented in paragraph 3.46, between 2013 and 2016, Colombia 
would like to understand how i s Chinese Taipei addressing anti -dumping investigations on imports 
from China? Specifically, how is Chinese Taipei comparing normal value - export price to construct 
the required margins of dumping since 2016?  
Answer : 
With respect to anti -dumping investiga tions involving imports of Chinese origin, we use prices in a 
surrogate country for the calculation of normal value. To Chinese exporters or producers who have 
fully responded to the questionnaires, we will calculate the normal values and export prices of the 
firms' subject products, with necessary adjustments, based on the information provided in the 
questionnaires. As to the non -cooperative exporters or producers, we will use the best information 
available to calculate the dumping margin.  
The above -mentio ned surrogate country methodology for the calculation of normal value in 
antidumping proceedings involving imports from China was adopted in 2006 and remains unchanged 
since then.  
Page 57(Para3.60)  
Question 22 : 
In paragraph 3.60 it is mentioned that custo ms rights and duties paid on the importation of raw 
materials are refundable. Nonetheless, Chinese Taipei did not provide the exact value of exports 
that have benefited from these reimbursements since 2014. If available, would you please see the 
value of t hese reimbursements and would you please clarify how these reimbursements are made?  
Answer : 
1. The total amount of the said reimbursements was about US$97 million in 2014, US$100 million 
in 2015, US$90 million in 2016, and US$109 million in 2017.  WT/TPR/M/377/Add.1  
 
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  2. Customs duty  paid on raw materials used in the manufacture of articles intended for export is 
refundable following exportation of the finished products according to the standards for the raw 
materials in the quantity required for normal production, unless the item of duty refund has been 
cancelled by the MOF by public notice.  Manufacturers may, within one year and six months from 
the date following the day on which the raw materials were released for importation, apply to 
Customs with the relevant export documents for duty refund or to offset the accounts for export 
products manufactured from imported raw materials.  
3. For the purposes of improving the service quality and administrative effectiveness, Customs has 
implemented the system on the Electronic Processing of the Offsetting or Refund of Duties and 
Taxes on Raw Materials for Export Products, which was officially launched in September 2012.  
Page 59(Para3.66)  
Question 23 : 
In paragraph 3.66 it is mentioned that Eximbank grants export credits, insurance export credits, 
loans and other types of financing services for exports. Would you please clarify if the interest rates 
for the short term loan are similar to the ones offered by other commercial banks?  
Answer :  
Regarding the interest rate, Eximbank is the same as the oth er commercial banks that evaluates the 
interest rate of short term credit of each case based on independent credit status.  
Page 59(Para3.67)  
Question 24 : 
In paragraph 3.67 it is mentioned that, by the end of 2008, the average of non -amortized Eximbank 
loans was 106,460 million dollars, 2% higher than the previous year. According to the information 
at hand, it seems like a large percentage of the loans are not amortized, the question is whether 
there are criteria to export the debt, what is the policy implem ented by Eximbank in order to collect 
the payment of such loans?  
Answer :  
1. We would like to clarify that according to the paragraph 3.67, Eximbank's average outstanding 
loans totaled NT$106,460 million at end -March 2018, up by 2.8% from a year earlier.  
2. Eximbank offers the export credit loans based on each credit status and prudent assessment, 
and collects according to the agreement which stipulates the tenor of loan case by case.  
3. As for the totaled amount of non -amortized loans, we do not have such statistic s. 
Page 64(Para3.81)  
Question 25 : 
In paragraph 3.81 it is mentioned that the oil used by farmers and fishermen is exempted from the 
VAT. Moreover, it is mentioned that additional aids are granted in oil discounts. In that regard, could 
you please clarify t he consistency of this policy with SCM Agreement, as established in Art.2?  
Answer :  
The oil used in agricultural machinery and vessels is exempt from business tax according to the 
Value -added and Non -value -added Business Tax Act. The subsidy is non -specifi c and not applicable 
to Article 2 of SCM Agreement.  
Page 161(Table A3.7)  
Question 26 : 
In chart A.37 it is mentioned that there is a policy of tax deductions for R & D. It is mentioned that 
companies can deduct certain amount of money invested on R & D with  a cap of 30% during the 
same year. Could you please clarify if there are specific sectors benefitting from these incentives 
and how do you measure the expense on R & D, is there any type of monitoring program?  
Answer :  
1. A company can apply for tax credit if it invests in innovative R&D. All sectors may benefit from 
the R&D tax credit.  
2. A company which applies for R&D tax credit should submit the R&D project to the central 
competent authority. After the R&D project is examined by the central competent author ity and 
meets a high level of innovation, the relevant expenditures of the project may be used as the WT/TPR/M/377/Add.1  
 
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  basis to calculate the tax credit. However, the relevant expenditures are limited to salaries of 
R&D personnel, expendable instrument and materials, paten ts, knowhow, professional or special 
databases, software, programs, and systems used only for the R&D project.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1.5.2.9 Other  
Page 107(Para.4.40)  
El párrafo 4.40 del informe de la Secre taría indica que… "…El COA (Consejo de Agricultura) publicó 
las "Directrices operativas para aconsejar a los agricultores que declaren el abandono de la 
producción de hoja de tabaco", a fin de alentar a los agricultores que suministraban hojas de tabaco 
en el marco de contrataciones durante el período 2016/2017 a que abandonaran su actividad. Los 
agricultores que presentaran tal declaración podían recibir un pago único de 600.000 dólares NT por 
hectárea. En el marco de la política de ayuda a los agricultore s que abandonen la producción de hoja 
de tabaco, los agricultores pueden solicitar ayuda para sustituir esa producción por la de otros 
cultivos."  
Question 27 : 
¿Podría el Taipéi Chino compartir las razones por las cuales promueve el abandono del cultivo de 
tabaco a sus agricultores?  
Answer :  
Prior to 2002, tobacco sales were government -controlled in the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu, but the system was abolished after we became a WTO member 
in 2002 with the formation of the T aiwan Tobacco and Liquor Corp (TTLC). Since then, the TTLC's 
tobacco purchases have gradually shifted to overseas brands, which greatly affected domestic 
tobacco farming. The Council of Agriculture (COA) has therefore started to help tobacco farmers 
grow o ther crops or simply stop growing tobacco, in order to ensure the security of the livelihood of 
farmers and to ensure a proper transition.  
Question 28 : 
¿Cuantos agricultores se han acogido a la sustitución de cultivos o que proporción de ellos?  
Answer : 
Among 1,530 farming households growing tobacco leaves, 1,529 declared to leave tobacco 
production and enrolled in corresponding reward programs (with 1 compliant choosing not to receive 
rewards), amounting to a participation rate of 99%. Among the recipien ts, 55 claimed the reward 
for transferring to other crops, which accounted for 3.5%.  
Question 29 : 
¿Qué tipos de garantías tienen para asegurar que las personas que reciben el pago por hectárea no 
van a volver a incurrir en el cultivo de tabaco?  
Answer : 
1. When the payment is issued to farmers under the Directions for Assisting Tobacco Farmers' 
Declaration of Giving up Tobacco Production Voluntarily, the farmers are required to fill and sign 
the Declaration of Giving up Tobacco Production for Good.  
2. To preven t tobacco farmers who sign the declaration from continuing tobacco operation, and 
shipping the leaves to private companies, the Agriculture and Food Agency of COA, has worked 
with local government and farmers' associations to examine the fields to see if f armers obey 
their declaration for two years following the reward claim. The specified sampling ratio is 5%, 
but if the result warrants it, the ratio can be raised. Any evidence of a resumption of tobacco 
leave plantation will result in the return of reward  payment or subsidy.  
Question 30 : 
¿Qué tipo de ayuda tiene previsto el gobierno del Taipéi Chino dar a los agricultores que pretendan 
sustituir el cultivo de tabaco por otros cultivos?  
Answer : 
1.  According to the Directions for Assisting Tobacco Farmers' Dec laration of Giving up Tobacco 
Production Voluntarily, farmers who choose to produce other crops are eligible for: (1) seedling WT/TPR/M/377/Add.1  
 
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  and cultivation improvement subsidy from NTD 26,000 to 100,000/hect are each year, up to 
3 years; (2) equipment (facility) subsidy  of 70% of the cost, with maximum payout of NTD 
500,00 (once for each farmer); (3) collective pest prevention subsidy of NTD 30,000/hectare 
each year, up to 3 years.  
2.  Those farmers are given continuous support on production technique and agricultural marketing 
to help them develop specialties in new crops for their post -transfer operation. It is also 
emphasized that the cultural heritage from the previous tobacco growing era is preserved and 
the works on introducing the products of the previous tobacco  growers to more sales channels 
and developing agricultural tourism is carried out.  
Question 31 : 
¿Todos los cultivos pueden acceder a las ayudas ofrecidas a cambio de dejar el cultivo de tabaco, o 
se ha previsto un listado acotado de productos beneficiario s? 
Answer : 
Not all crops are eligible for the transfer rewards, the eligible categories are as follows:  
1. Fruit trees (including guavas and bananas produced under contract farming).  
2. Short -term crops (including vegetables, flowers, coarse grains, and herbs fo r Chinese medicine).  
3. Feed corn and forage corn.  
  WT/TPR/M/377/Add.1  
 
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  13  THAILAND  
WT/TPR/G/377 – Government Report  
3.3 Industrial Policy and Reform  
Para 3.10 New Agriculture Page 9  
Question 1 : 
Regarding the program of setting up an on -line trading platform for agricultural products are being 
implemented to stabilize farmers' income, does the government have an intention to apply the 
on-line trading platform for foreign agricultural products in near future?  
Answer :  
The on -line trading platform facilitated by the COA will be mainly used for domestic products.  
Para 6 Page 12  
Question 2 : 
- How does Chinese Taipei implement a patent linkage system?  
Question  
- Does this system based on patent -related information submitted to the TFDA by a patent holders 
or an applicant for marketing approval? If so, what kind of information is required to be submitted?  
- Could Chinese Taipei elaborate on the coordination between the TFDA and the TIPO in terms of an 
exchange of patent -related data? How does the TFDA utilize TIPO's database to  ensure that a generic 
drug is not approved before expiration of relevant patented substances?   
Answer :  
1. After implementing the patent linkage system, the license holder of a new drug is required to 
list patent information in the platform. Patent informati on includes the certification number of 
the invention patent(s) and the expiration date of the patent(s). If the invention patent is for 
medical use, the item number of claims shall be concurrently provided.  
2. The TFDA only provides a platform for new drug l icense holders to list the patent information 
and does not exchange patent -related information with the TIPO.  
WT/TPR/S/377 – WTO Secretariat Report  
2.4 Investment Regime  
2.4.1 General investment regime  
Para 2.38 Page 37  
The Secretariat's report states "The Ministry of Economic Affairs (MOEA) has been conducting a 
comprehensive re -evaluation of the current draft amendments to the "Statute for Investment by 
Foreign Nationals". It has sought public comments and is working to put together all relevant 
opinions. Thereafter it will revise the draft of the amendment and submit it through the regular 
legislative process. In this context, the authorities indicated that consideration is being given to 
removing the pre -investment screening/review requirement and re placing it with a post -investment 
registration mechanism."  
Question 1:  
Please kindly provide more detailed information regarding "the pre -investment screening/reviewing 
requirement" and "a post -investment registration mechanism".  
- What is the current stat us of the draft amendment and when would it be expected to pass the 
legislative process?  
Answer :  
1. We have conducted public hearings on the draft amendments to the Statute for Investment by 
Foreign Nationals and the Statute for Investment by Overseas Chine se. The draft amendments 
will go through the legislative process after public opinion review is completed.  
2. The draft amendments provide that prior approval will only be required for investments above a 
certain amount, or in exceptional cases, such as investments in sectors on the Negative List for 
Investment by Overseas Chinese and Foreign Nationals, or other special circumstances set forth 
by the competent authorities.  WT/TPR/M/377/Add.1  
 
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  4.4 Services  
4.4.2.1.2 Market access  
Para 4.117 Page 123  
As this paragraph states t hat overseas banks must establish commercial presence to provide services 
in Chinese Taipei, and obtain approval (business licence) from the Financial Supervisory Commission 
(FSC) and they may set up subsidiaries, branches or representative offices subject  to approval by 
the FSC.  
Question 2 : 
- Please kindly provide more detail of market access conditions for branches.  
- Would there be any limitation on the number of branches?  
- Is branch considered to be a juridical person under Chinese Taipei's Law?  
Answer : 
1. To attract financially sound foreign banks with expertise to join our market, and help the 
development of financial services, foreign banks may apply in accordance with Article 2 of the  
Regulations Governing Foreign Bank Branches and Representative Offices . Market access 
conditions are stipulated in our Schedule of Specific Commitments of GATS/SC/136/Rev. 1.  
2. There is no limitation on the number of branches for which a forei gn bank may apply.  
3. Pursuant to the Banking Act, the term "foreign bank" means a bank that is organized and 
incorporated in accordance with the laws of a foreign country, registered in our jurisdiction for 
business as a branch office in accordance with the Company Law and the Banking Act. The parent 
company remains legally liable for all acts of the branch offices in our market. The branch office 
is not considered an independent legal entity. However, after obtaining approval from the 
competent authority and  being recognized and registered in accordance with the Company Law, 
this branch could commence operations according to the obtained business license in our 
jurisdiction.  
4.4.5 Tourism services  
Para 4.176 Page  135 
Question 3 : 
Regarding the third action plan relates to guidance for industrial transformation, under which 
adjustments to the tourism structure, please kindly provide more detail of strengthened training for 
non-local tour guides. Would foreign tour guides be allowed to provide services in Chin ese Taipei 
and whether it has any limitation for foreign tour guides?  
Answer : 
1.  In order to promote the New Southbound Policy, we are providing counseling and guidance to 
train tour guides who speak Korean and Southeast Asian languages so that they can obta in tour 
guide certification and licenses. We are targeting recent immigrants from Korea and Southeast 
Asia who have a high school education or above.  
2.  According to paragraphs 1 and 2 of Article 32 of the Act for the Development of Tourism, tour 
guides sho uld pass the examination and training of the competent examination authority or the 
relevant authority entrusted with handling such matters, and should possess a license issued by 
the competent authority. In addition, tour guides should be employed by a tr avel company or 
be invited on a temporary basis by a government agency or organization before they can conduct 
tour guide business in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.  
3.  The Regulations on General Examinations for Professi onal and Technical Personnel stipulates 
that foreigners who wish to obtain a tour guide license should have a public or private high school 
or vocational school diploma, and have documentation proving they have worked in the industry 
for at least four year s.  
4.  In sum, foreign tour guides who want to enter into this profession in the the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu are required to: pass the examination and 
training in accordance with the above regulations, obtain a certific ate of practice for tour guides 
issued by our government, and be employed by a travel company or temporarily invited by 
government agencies or organizations.  
Para 4.1.1.5.2.1 Price Support - guaranteed purchases Page 105  
Question 4 : 
According to page 105, paragraph 4.1.1.5.2.1 Price Support - guaranteed purchases, Thailand would 
like to require further information regarding the Chinese Taipei's domestic support measures on 
mechanism and practice of price support - guaranteed purchases of rice.  WT/TPR/M/377/Add.1  
 
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  Answer :  
We purchase rice from farmers at guaranteed prices for food security stocks. The farmers shall notify 
the farmers' association of their planting area in advance. After harvesting, they can choose to sell 
their rice to the market at market price, or to the gov ernment at a guaranteed price.  WT/TPR/M/377/Add.1  
 
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  14  BRAZIL  
Page 3, para 1.4 and page 16, para 3.28  
"During the review period, one key legislation milestone was the Financial Technology Development 
and Innovative Experimentation Act (the Act), which came into force on 30 April 2018. This Act was 
enacted to establish a Fintech innovative experimentation mechanism and create a safe environment 
for Fintech R&D and pilot trials of the financial industry and related sectors, while maintaining 
financial market order and protecting consumers' rights. This Act is applicable to experimenters that 
use innovative methods to engage in any financial services business requiring approval from the 
Financial Supervisory Commission (FSC). Natural persons, pr oprietary businesses, partnerships, and 
legal persons, as well as non -residents through an agent, all may apply to conduct innovative 
experiments. The government thus hopes to further enhance innovation in the financial services 
sector."  
Question N°1:  How did this legal act change the market for fintechs?  
Answer :  
1. The Financial Technology Development and Innovative Experimentation Act (the Act) aims to 
establish an innovative experimentation mechanism which creates a safe environment for 
Fintech innovators  to conduct R&D and pilot trials.  
2. Fintech innovators approved to engage in financial business experimentation in accordance with 
the Act are exempted from criminal liability and administrative responsibility stipulated in related 
financial laws and regulat ions during the experimentation period. They are also exempted from 
getting financial business licenses or approvals, complying with capital requirement and 
maintaining legal financial or business thresholds. Such exemptions help accelerate the 
introductio n of more innovative financial goods or services into the market.  
3. The experimentation period is up to one year and experimenters may apply for one -time 
extension up to six months. However, if the experiment is deemed beneficial to the whole market 
and then  involves legislative amendments, the overall period may be extended to three years. 
If the experiment is beneficial to the financial market and meets consumers' needs, the FSC will 
amend relevant financial laws and regulations. Experimenters who intend to  continue with their 
experimental businesses shall apply for business approvals in accordance with revised 
regulations and observe related rules as other market participants do.  
Question N°2:  Was the process of setting companies up facilitated after this new act entered into 
force?  
Answer :  
This Act is not related to the process of establishing companies. As for this new Act's impact on 
businesses and licensing approvals in the financial market, we will watch closely and take necessary 
action when approri ate. 
Question N°3:  Has the risk of using the digital platforms reduced after the new standard?  
Answer :  
1. Based on the principles of responsible innovations, the Financial Technology Development and 
Innovative Experimentation Act (the Act) provides a secure  experimental environment for 
financial technology innovation, and encourages application of new technology on financial 
products or services. Therefore, providing financial services through small -scale experiments on 
electronic platforms may help to ident ify potential risks previously unthought -of during the 
experiment period, and ensures lowered risks when entering the market. By doing this, we could 
maintain stability of the financial system and protect consumers' rights.  
2. During the experimentation perio d, the experimenter shall follow the proposed plan on risk 
management and investor protection measures, which the competent authorities had reviewed 
and recognized as reasonable and adequate before granting approval for the experiment. The 
plan should be p repared in accordance with Article 4 of the Act, including: (1) Participant 
protection measures; (2) Potential risks during the experimentation period and risk management 
mechanism; (3) Description of money laundering and terrorist financing risk assessmen t and 
risk mitigation measures established using a risk -based approach; (4) Information systems used 
in the innovative experimentation, and description of security control operations and risk  WT/TPR/G/377 – WTO Government Report  WT/TPR/M/377/Add.1  
 
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  response measures; (5) An exit mechanism when the innovative exp erimentation is terminated 
on its own initiative or cancelled or revoked by the competent authority or when the 
experimentation period ends. This experimental mechanism reduces possible risks through the 
aforementioned measures to ensure that the rights an d interests of participants are not 
impaired.  
3. In light of the fact that not all of the digital platform's business involve financial services/operate 
under the Act, operation of such channels in our jurisdiction should follow the management 
regulations of the competent authority of the business and consumer protection regulations. If 
the operation of such digital platform is for executing transactions such as for transportation 
tickets, accommodation, travel itineraries or online shopping etc., where no spe cial approval is 
required, the platform operators will need to follow set regulations of the competent authorities 
of the target business. As for digital platforms involved in financial services specially permitted 
to operate under the Act, and its operato rs are experimenters who have submitted innovation 
application according to regulations, then as mentioned in the said risk management mechanism, 
the risk of the digital platform can be limited to a smaller scope.  
Question N°4:  How have the conflicts betwe en the freedom of innovation for companies and 
protection of personal data been reconciled in this initiative?  
Answer :  
The Act was formulated based on the principle of "Responsible Innovation" to promote the 
development of financial technology while taki ng into account consumer interests and rights 
(including protection of personal data). Therefore, the Act does not grant exemption of application 
of the Personal Information Protection Act. Fintech innovators or experimenters should still collect, 
process and use personal data in accordance with the Personal Information Protection Act and 
relevant regulations thereof.  
Page 4 -5, para 2.5  
"The geographical distribution of trade of the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu was heavily  concentrated in Asia during the review period. In 2017, for example, 72.41% 
of exports and 59.23% of imports took place with Asian trading partners, followed by North America 
(12.34% of exports and 12.30% of imports) and Europe (9.19% of exports and 12.12 % of imports). 
Main trading partners included China; ASEAN; the United States; Japan; Europe; Hong Kong, China; 
and the Republic of Korea; together this group of WTO Members accounted for 85.60% of the 
Separate Customs Territory of Taiwan, Penghu, Kinmen a nd Matsu's total trade."   
Question N°5:  What measures have been taken to reduce dependence on traditional trading 
partners and to increase the diversification of partnerships?  
Answer :  
To help our companies diversify their overseas markets and avoid conce ntration in one market, the 
government assists them with implementing localized marketing practices. Such assistance includes 
organizing export promotion groups, promoting cross -border e -commerce marketing activities, 
attending domestic and international e xhibitions, inviting foreign buyers to visit our suppliers, etc. 
We also implement different promotional activities in South and Southeast Asia, Europe, the U.S., 
Japan, and emerging markets, such as Africa and the Middle East in order to encourage domesti c 
companies to diversify export markets  
Page 6, para 2.10  
"Regarding inbound FDI, the manufacturing sector attracted the majority of investment in 2017. 
Most inbound FDI in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu went to 
the ele ctronic parts and components manufacturing sector, followed by the information and 
communication sector, and the finance and insurance sector. The leading sources of inbound 
investments were the Netherlands, the British Overseas Territories in the Caribbea n, the United 
Kingdom, Japan, and American Samoa, accounting for 74.12% of the total inbound FDI."  
Question N°6:  What precautions are applied to curb illegal activities of foreign investors, such as 
money laundering, tax evasion and terrorist financing?  WT/TPR/M/377/Add.1  
 
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  Answer :  
1. Violations of the Tax Collection Act and terrorist -financing are predicate offenses regulated by 
the Money Laundering Control Act. According to Article 10 of the Money Laundering Control Act, 
financial institutions and designated non -financial busi nesses or professions must report to the 
Investigation Bureau of the Ministry of Justice all suspicious transactions with regard to money 
laundering, tax evasion and terrorist financing. For more details, please refer to the answer to 
question 14.  
2. According to the Income Tax Act, when an individual not residing in the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu has income derived from the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu, the tax withholder shall with hold the income 
tax payable at the time of payment, which will effectively prevent tax evasion by foreign 
investors.  
SUMMARY  
Page11, para 17  
The agriculture sector continues to account for a small share of GDP (1.7%) and employment 
(4.9%), and most food is imported. Chinese Taipei's overall target of 40% food self -sufficiency 
suffered a setback in 2015 due to climatic conditions.  
Question N°7:  In practice, has the Chinese Taipei 's policy of food self -sufficiency been a n important 
matter of dispute/issue for discussion when the negotiation of regional/multilateral trade agreements 
is concerned?   
Answer :  
Food security is one of the most important agricultural policies for many WTO members, including 
the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu. To enhance food security 
and the manifold functions of agriculture, we consider that it is crucial to seek flexibility for sensitive 
sectors during our negotiations with trading partners on trade agreements.  
Page13, para 25  
Chinese Taipei's real GDP is forecast to slow down before gaining momentum in the medium run. 
Despite its solid fundamentals, downside risks to the economic outlook remain. Notwithstanding its 
existing buffers, the economy remains vulnerable to exogenous r isks such as those relating to 
developments in the global economic outlook and international trade , and regional 
geopolitical developments  
Question N°8:  Which regional geopolitical developments are specifically seen as significant 
exogenous risks that thre aten the stability of the Chinese Taipei economy? In this context, to what 
extent the escalation of trade retaliatory measures between the USA and China poses a major risk 
to the Chinese Taipei external sector?   
Answer :  
Geopolitical risks that have potent ial impacts on our economy are:  
1. U.S.-China trade friction:  
The new tariffs imposed by the U.S. and China have so far had little direct impact on our economy 
due to the fact that our exports are not targeted directly. However, since a considerable portion 
of China's exports to the U.S. are manufacturered by Chinese firms in which our entrepreneurs 
invest and use intermediate goods exported by us, the U.S. -China trade friction could indirectly 
impact our exports and economy. In addition, we are also watching  closely the following spillover 
effects:  
(1) Increasing global economic and financial risks: In July, the IMF pointed out that trade tension 
would probably cause a reduction in global GDP by 0.5% in 2018 and further erode business 
confidence; fluctuations in the financial market will increase, and global financial risk will 
rise. 
(2) Changing the global supply chains: The intensifying trade friction between the U.S. and China 
could alter the structure and development model of Asia, the Asia -Pacific region and even  
the global economy. Since the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu is an export -oriented economy, the global strategy of our overseas businesses and 
cross-strait trade and economic relations will all be affected accordingly.  WT/TPR/S/377 – WTO Secretariat Report  WT/TPR/M/377/Add.1  
 
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  2. Geopolitical conflicts in the Middle East: Such conflicts may cause fluctuations in international 
financial markets and oil prices, which in turn could affect our foreign exchange rate, price levels 
and corporate profits, and also impact our economic growt h. 
1. Economic Environment  
1.2 Recent Economic Developments  
1.2.3 Main macroeconomic policy developments  
Page 19, para 1.8  
The Central Bank (CBC), a government body whose policies seem to be appreciated across the 
region, remains responsible for, and seemi ngly independent in, the formulation and implementation 
of monetary policy. Its objectives include: promoting financial and economic stability; guiding sound 
banking operations; and maintaining the stability of the value of the currency. The CBC does not s et 
an inflation target, but to attain its monetary policy objectives it continues to apply a mix of 
instruments including: open market operations, policy rate discounts.  
Question N°9:  When deliberating in its ordinary meetings over the level of the policy interest rate, 
does the Central Bank of Chinese Taipei (CBC) take into account the likely impact of its decision 
upon its major trading partners?   
Answer :  
1. The policy rate is decided by the CBC's Board at quarterly meetings, taking into consideration 
the latest developments of actual and expected inflation, output gaps, and other international 
and domestic economic and financial conditions.  
2. The CBC will cont inue monitoring the latest domestic economic and financial conditions and stay 
vigilant on the development of monetary policies in other economies, global trade protectionism, 
and their implications for our economic prospects and financial market stability . We will 
undertake timely and appropriate monetary policy actions as warranted to fulfill the central 
bank's statutory mandate.  
Page 20, para 1.12  
Chinese Taipei's prudent fiscal policy  remained unchanged until 2017 when it shifted to an 
expansionary more  pro-growth stance, a move consistent with utilizing fiscal space when needed 
while preserving longer -term fiscal sustainability . 
Question N°10:  In what sense "utilizing fiscal space when needed while preserving longer -term 
fiscal sustainability" amounts to having a countercyclical fiscal policy? If so, is the countercyclical 
fiscal policy crystallized in any built -in automatic mechanism of medium -to-long term fiscal 
stabilization?   
Answer :  
In recent years, the steady growth of our domestic economy has le d to an increase in tax revenue, 
which has been able to support budget expansion. Since 2017, economic growth has remained at 
around 3% by expanding government investment to strengthen domestic demand and maintain 
economic growth. We do not adopt a so -called countercyclical fiscal policy.   
Page 20, para 1.14  
During the review period, tax revenue grew steadily from 11.6% (2013) of GDP to 12.6% 
(2016)  as a result of tax reforms to improve the tax structure and strengthen the income tax 
collection system , part icularly for high earners. In January 2018, Chinese Taipei enacted a tax 
reform aimed at improving tax collection, distributing wealth more equitably and stemming the flow 
of highly skilled labour overseas.  
Question N°11:  Do tax reforms envisage raising th e tax revenue base as a percentage of GDP, 
besides "improving the tax structure and strengthening the income tax collection"? In what sense a 
restricted tax revenue base might be accounted for the low tax burden (16.2% of GDP in 2016)? 
Does the current low  tax burden offer a sufficient leeway for the management of a countercyclical 
fiscal policy?   
Answer : 
1. Tax reforms: In order to promote economic development and other policies, we provide tax 
incentive measures which may lead to a lower tax burden. For the purpose of improving tax 
revenue, we have taken following measures:  WT/TPR/M/377/Add.1  
 
- 79 - 
 
  (1) Amendments to the Income Tax Act were promulgated on February 7, 2018 in order to 
establish a competitive, fair, and reasonable income tax system that conforms to 
international taxation tr ends and to create a tax environment that encourages inbound 
investment that will be able to attract professionals to stay. These amendments entered 
into force in 2018, and taxpayers will file 2018 annual income tax returns in May 2019. 
This income tax ref orm will enhance willingness to invest, improve international 
competitiveness, and boost economic development. This will create a positive effect on tax 
revenue in the long term.  
(2) To deepen and widen the tax base, in 2018, we enacted a VAT system for foreig n companies 
which requires foreign companies selling cross -border electronic services to individual 
domestic purchasers to file a business registration and pay VAT. In the same year, we also 
established a new income tax regime, which requires foreign compa nies to pay income tax 
when they sell cross -border electronic services to domestic purchasers and have income 
from sources in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu. 
The aforementioned e -taxation solutions help with the incremen tal growth of our tax 
revenue.  
2. We do not adopt a so -called countercyclical fiscal policy.  
2. TRADE AND INVESTMENT REGIME  
2.1 General Framework  
Page 39, para 2.1  
Since 2014, the overall structure and functions of the executive, legislature and judiciary of the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) have remained 
broadly unchanged. However, a restructuring and streamlining of the executive branch has been 
ongoing with a view to increasing its flexibility and effectiven ess; by the end of this process the 
number of organizations in the executive branch will have been reduced from 37 to 29 (14 ministries, 
eight councils, three independent agencies and four organizations). This process should be 
completed by 31 January 2020 . These changes included the creation of a development council 
(NDC) in 2014 which combines the previous responsibilities of the Council for Economic 
Planning and Development, the Research, Development and Evaluation Commission and 
the Public Construction Commission. The NDC is responsible for the planning, evaluation, 
coordination and supervision of Chinese Taipei's development policies . 
Question N°12:  How exactly has the development council been made up? Does it function mainly 
as a council of advisors or  rather as a planning and implementation body inside the Executive 
branch? How has this body been structured institutionally, i.e. in terms of ministries, state -agencies 
and publicly -owned banks?   
Answer :  
1. Establishment of the NDC  
To enhance the macro perspective and implementation of our development strategy, we 
restructured subordinate ministries/agencies by merging the Council for Economic Planning and 
Development (CEPD), the Research, Development and Evaluation Commission (RDEC) and other 
entities s o as to integrate policy planning and implementation with performance management. 
The National Development Council (NDC) is responsible for planning, coordinating and reviewing 
our development strategy and allocating resources.  
2. Functions of the NDC  
As an a gency responsible for planning and promoting key policies, the NDC continues to play an 
important role in development planning, with a focus on forward -looking, outlined, 
inter-ministry/agency -integrated, and overall strategic planning. At the same time, t he NDC also 
plays the role of coordinator in the executive entities and strengthens inter -ministry/agency 
coordination to maximize the effectiveness of the administrative team. In addition, the NDC also 
strictly manages the implementation of important poli cies and issues timely warnings so that 
policy implementation can achieve the expected goals.  
For more information about the NDC's organizational structure and related information, please 
visit: http://www.ndc.gov. tw/en/ . 
2. Trade And Investment Regime  
2.2 Trade Policy Formulation and Objectives  
Page 31, para 2.16  
A New Southbound Policy, launched in 2016, aims to foster economic cooperation and 
integration with ASEAN, South Asia, New Zealand, and Australia . The ela borated work plan WT/TPR/M/377/Add.1  
 
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  is aimed at realigning the role of Chinese Taipei in Asian development and seeking new opportunities 
and momentum for its own development. It focuses on the following areas: economic and trade 
cooperation, talent exchanges, resource shari ng and institutional links and connectivity. Additionally, 
resources will be used to promote five new flagship projects: regional agricultural development; 
medical and public health cooperation and the development of industrial chains; industrial talent 
development; industrial innovation and cooperation; and the NSP forum and youth exchange 
programme, and three prospective areas (e -commerce, tourism, and infrastructure).  
Question N°13:  How has Chinese Taipei been incorporated into the Belt and Road Initiative (BRI) 
of mainland China? Are the regional integration schemes in which Chinese Taipei takes part (e.g. 
the New Southbound Policy) conceived as a part of a greater and more encompass ing sphere of 
mega -regional integration plans as the BRI?  
Answer :  
1. The New Southbound Policy puts emphasis on "people" and the principle of mutual interaction 
in diverse fields. It is different from China's Belt and Road Initiative.  
2. We actively participat e in regional integration and promote the New Southbound Policy to 
reposition our role in regional industrial supply chains, build awareness of a regional economic 
community, and make good use of our soft power to comprehensively interact in the fields of 
economics, trade, health care, agriculture, education, and disaster relief with the economies of 
ASEAN, South Asia, New Zealand, and Australia.  
2. Trade and Investment Regime  
2.4 Investment Regime  
2.4.2 Business environment  
Page 39, para 2.47  
During the re view period, Chinese Taipei introduced some amendments to the legal framework. The 
2015 amendments to the Company Act, which regulates the organization, registration, and 
establishment -related matters for profit -making companies, allowed the incorporation of closed 
companies in order to create more flexibility for entrepreneurs and start -ups. Further draft 
amendments have been approved by the executive branch and are pending ratification by the 
legislature. These are intended to create a friendlier environm ent for start -ups and entrepreneurs, 
improve corporate governance, enhance the rights and interests of shareholders, increase 
compliance with international money laundering norms  and boost enterprises' operational 
flexibility, management efficiency and dig italization efforts. The Act for Development of Small and 
Medium Enterprises, reviewed in January 2016, aims to enhance sound development of SMEs by 
helping them improve their operation environments, promoting mutual cooperation, and assisting 
them in stri ving for growth with their own efforts.  
Question N°14:  What were the main measures and initiatives taken to prevent and combat money 
laundering and terrorism financing? Are these measures/initiatives a result of concerted efforts with 
regional trading part ners? In other words, are these norms expressed in the regional trading 
agreements (RTA) in which Chinese Taipei takes part?   
Answer : 
1. We are devoted to the anti -money laundering (AML) and  combating the financing of terrorism 
(CFT) regimes. We established the Anti -Money Laundering Office on March 16, 2017 to fully 
advance the preparatory tasks for the third round of mutual evaluation. Its main mission is to 
oversee and consolidate AML policies within the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu, and to execute the ML/TF risk assessment.  
2. We have actively advanced the following important legislation (amendments):  
(1) Amendments to the Money Laundering Control Act (promulgated on June 28, 2017): The 
Money Laundering Control Act was enacted in 1996, and it was the first legislation 
dedicated to preventing money laundering in Asia. It was substantially revised in 2016 in 
response to the 40 recommendations published by the FTAF in 2012 and material 
penalties imposed on domestic financial instituti ons by foreign financial supervisory 
authorities. The amendments were officially implemented on June 28, 2017. The 
amendments strengthened our legislation on money laundering to meet international 
standards published by the FATF.  The four key points includ e the possibility of prosecution 
of ML offences, strengthened money flow control measures, improved internal audits and 
controls, and strengthened international AML cooperation. The specific content includes 
strengthening of the risk -based approach, establ ishment of transparent money flows, WT/TPR/M/377/Add.1  
 
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  obligations for conducting full customer due diligence, obligations to obtain transaction 
records, and obligations to report STR. With regard to cross -border money flow controls, 
items such as NTD, gold, and other items that can be used for money laundering are 
included in the amendment. Obligations for reporting on money laundering with cargo 
shipment and express deliveries across borders were also added to strengthen the 
retention and supervision of money flow tracing.  
(2) Formulation of the Counter -Terrorism Financing Act (promulgated on July 27, 2016): To 
improve our CTF system, we established the Counter -Terrorism Financing Act in 
accordance with FATF international standard recommendations, the International 
Convention f or the Suppression of the Financing of Terrorism, other related international 
regulations, and the UN Security Council's resolutions on prevention of terrorist financing 
and proliferation of weapons of mass destruction.  
(3) Completion of the International Mutu al Legal Assistance Act (passed on April 10, 2018): 
The enactment of this law shall provide a clear and specific legal basis for processing 
mutual legal assistance requests from other countries as well as our requests for mutual 
legal assistance from other  countries. In addition, it has also increased the scope of the 
current mutual legal assistance between courts to investigate and execute affairs beyond 
trials. Items for which authorities may provide assistance are neither limited by the 
existing delivery  nor by evidence from investigations. Searches, seizures, confiscation, 
and other forms of assistance for acts that do not violate domestic laws can also be 
implemented in response to emerging criminal patterns. The Act added implementation 
procedures for the confiscation of proceeds, and it effectively resolves current difficulties 
in which we are able to help other countries only with confiscation but not the return of 
proceeds.  
(4) The amendment of Company Act (passed on July 6, 2018): The new clause, Articl e 22-1, 
revised the part related to disclosure of beneficial owners by directors, supervisors and 
major shareholders, as well as to cancel the system of bearer stock: It is stipulated that 
the companies should come up with a list of the details of director s, supervisors, 
managers, shareholders whose shares or capital regularly exceed ten percent of total 
shares or capital every year. The details should include their names, nationalities, date of 
birth or date of establishment, identification document number , shareholding volume, 
capital volume or other details as indicated by the authorities. The details should be sent 
and reported electronically to the information platform set up by the authorities.  
3. We actively participate in the Egmont Group and cooperate  with regional trading partners to 
combat money laundering by information sharing.  
4 TRADE POLICIES BY SECTOR  
4.4 Service  
4.4.2 Financial services  
Page 121, para 4.108  
According to the authorities, Chinese Taipei's banking sector remains stable and resilie nt. As at the 
end of Q4 2017, the average common equity tier 1 ratio, tier 1 capital ratio and total capital adequacy 
of local banks had reached 11.20%, 11.81% and 14.17% respectively, all higher than the minimum 
requirements set for 2019. In addition, the  2016 stress test results showed that average capital 
ratio and leverage ratio of local banks under stress scenarios were higher than the minimum 
requirements set for 2016 and 2017. There have been no bankruptcies over the review period. Banks 
benefit from  a high proportion of stable customer deposits and the system's low use of overseas 
funding makes it less vulnerable to contagion risks during turbulent periods in global 
capital markets . 
Question N°15:  Does the system's "low use of overseas funding" have to do with the management 
of the capital account? If so, what are the major capital account techniques currently in use in 
Chinese Taipei? Are they structured in a countercyclical basis in order to smooth "contagion risks 
during turbulent periods in global  capital markets"?  
Answer :  
1. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has a high savings rate, 
and our banking system is well -funded, which explains low u se of overseas funding. In July  2018, 
total excess reserves held by our financial institutions amounted t o NT$47 billion (about 
US$15  billion). Over the past ten years (2008 -2017), the average and excess savings rate was 
32.27% and 10.75% respectively in the Separate Customs Territory of Taiwan, Penghu, Kinmen WT/TPR/M/377/Add.1  
 
- 82 - 
 
  and Matsu. Our a ccumulated excess savings reached NT$17.2 trillion (about US$5.5 trillion) 
during that period of time.  
2. The capital account has already been liberalized in the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu. Therefore, the low use of oversea s funding of our banking system 
is not caused by capital control. The NT dollar exchange rate is determined by market forces. If 
irregular factors (such as massive inflows or outflows of short -term capital) lead to excess 
volatility and disorderly movement s in the NT dollar exchange rate with adverse implications for 
economic and financial stability, the CBC will step in to maintain an orderly market.  
4 TRADE POLICIES BY SECTOR  
4.4 Service  
4.4.2 Financial services  
Page 121, para 4.110  
The Financial Supervisory Commission (FSC), established in 2004, remains the sole statutory 
financial supervisor and supervises all financial institutions including banks, securities and insurance 
companies. Its purpose is to build a sound, fair, effective  and internationalized financial environment 
and market, and maintain financial stability. It is authorized to conduct targeted examinations on 
issues related to monetary, credit and forex policies and payment systems (on -site supervision) and 
implements o ff-site monitoring to identify the weaknesses of individual financial institutions and 
respond appropriately to banking system developments. The FSC owns the Central Deposit 
Insurance Corporation. As reported by the FSC, it has helped channel capital into the real economy; 
assisted enterprises raise funds in the capital market and enhanced protection of the rights and 
interests of investors and financial consumers. Concrete recently adopted measures include: (a) 
making it easier to obtain finance for entrep reneurship; (b) promoting innovative 
experimentation in financial technology;  (c) developing green finance; (d) encouraging the 
development of financial products for the elderly; (e) supporting the New Southbound Policy (see 
Section 2); (f) encouraging fin ancial institutions to take part in urban renewal; (g) increasing stock 
market liquidity; and (h) enhancing protection of the rights and interests of financial 
consumers, and promoting financial inclusion . 
Question N°16:  Especially for item (b), how are th ese financial technology companies supervised? 
Is there statistical data collection to evaluate the volume of operations performed?  
Answer :  
1. During the experiment, the participants should follow the plan they proposed. The competent 
authority will supervise its operation based on the written information of its regular and non -
regular reports, and will pay visits or collect opinions of relevant participants as a reference for 
supervision.  
2. When a participant submits application for the experiment, it will explain how to measure the 
benefits achieved by the experiment in the future. After the completion of the experiment, the 
competent authority will invite relevant ministries and external experts to hold an evaluation 
meeting to assess whether the part icipant has achieved the benefits.  
Question N°17:  With reference to item (h), by promoting financial inclusion, has the Financial 
Supervisory Commission (FSC) also been concerned with enhancing financial literacy? If so, to what 
extent are these two progra mmes united in practice?  
Answer :  
1. Yes. Promoting financial literacy has long been one of the FSC's most important policies.  
2. In order to promote financial inclusion in the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu, when the FSC formula ted phase V of the "Financial Literacy Program" 
(2018~2020), it took into account the potential influence of financial technology on financial 
consumers. Together with coping with the changes in demographic structure and the evolving 
needs of the community  as a whole, the FSC selected "Fintech" as one of the themes for carrying 
out the program. Through implementation strategies such as social advocacy, deepening 
students understanding, combining resources of social care and public interest support, and 
utilizing the power of diverse media, the program pushes forward financial education for people 
of different ages and different ethnicities by various ways and channels.  WT/TPR/M/377/Add.1  
 
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  4 TRADE POLICIES BY SECTOR  
4.4 Service  
4.4.2 Financial services  
4.4.2.1 Banking and financ e 
Page 122, para 4.112  
Chinese Taipei's banking sector appears to remain saturated, with many banks and a limited number 
of clients. As a result, net interest margins have fallen to one of the lowest levels in Asia. As of 2017, 
the banking system structure  consisted of 38 locally incorporated banks (down from 39 due to a 
merger approved in 2017); 29 local branches of non -local banks; 23 credit cooperatives; 311 credit 
departments of farmers' and fishermen's associations; and eight bills finance companies. T he 
banking sector remains dominated by publically owned banks; three banks are fully publically owned 
(the "Bank of Taiwan", the Land Bank and the EXIM Bank) and a further six banks are partially 
publically owned (the "Taiwan Cooperative Bank", the First C ommercial Bank, the Hua Nan 
Commercial Bank, the Chang Hwa Commercial Bank, the Mega International Commercial Bank and 
the "Taiwan Business Bank"). At the end of 2016, these banks held 49.01% of total bank assets, 
down from 52% in 2010. There are 24 banks with local majority ownership which accounted for 
42.5% of total assets. The five banks with non -local majority ownership accounted for 5.8% of total 
assets. At the end of 2016, locally incorporated banks (excluding the postal savings bank) accounted 
for 77.2% (77.6% in 2014) of total deposits and 90.5% (91.1% in 2014) of total loans; while local 
branches of non -local banks accounted for 2% (1.1% in 2014) of total deposits and 3.7% (3.1 in 
2014) of total loans, respectively.  
Question N°18:  To what extent has the banking system structure - predominantly dominated by 
publicly owned banks - been functional to assist Chinese Taipei's development policies? Have they 
been active financial agents in the implementation of Chinese Taipei's successive development 
plans?  
Answer :  
Whether the bank is state -owned or not, there is no financial agent in our jurisdiction. Following the 
principle of risk control, our financial industry works actively to provide capital for industrial 
development, implement financial inclus ion, and vitalize our economy.   
4 TRADE POLICIES BY SECTOR  
4.4 Service  
4.4.2 Financial services  
4.4.2.1 Banking and finance  
4.4.2.1.2 Market access  
Page 123, para 4.117  
During the review period, market access conditions remained unchanged. Overseas banks must 
establish commercial presence to provide services in Chinese Taipei, and obtain approval (business 
licence) from the FSC. They may set up subsidiaries, branches or representative offices subject to 
approval by the FSC. 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 locally incorporated 
bank. Non -local financial institutions can invest in local financial companies with up to 100% 
ownership. Inward investment is prohibited in postal saving and remittance services as specified in 
Chinese Taipei's negative list for investment.  
Question N°19:  Is there a permanent residence requirement for managers of foreign financial 
institutions branches? If not, how to attribute responsibility for crimes committed against the 
financial system?  
Answer :  
1. We have no requirements concerning the nationalities of  branch managers of foreign financial 
institutions in our jurisdiction. The conditions for market access of foreign banks and the process 
of establishing a branch in our jurisdiction are stipulated in our Schedule of Specific 
Commitments of GATS/SC/136/Rev  and Regulations Governing Foreign Bank Branches and 
Representative Office.  
(https://law.banking.gov.tw/Eng/FLAW/FLAWDAT0201.aspx?lsid=FL006642 ). 
2. When the manager of a finan cial institution violates his/her duties in our jurisdiction, he/she 
shall be subject to the financial supervisory decree, as well as to hold accountable for civil and 
criminal liability according to the law, regardless of his/her nationality or residency status.   WT/TPR/M/377/Add.1  
 
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  15  ARGENTINA  
3. Trade Policies And Practices By Measure  
3.1 Measure Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements / Customs procedures and 
requirements and customs valuation  
3.1.1.1 Customs procedures  
Page 41 para 3.5  
En el párrafo 3.5 se indica que Taipei Chino en noviembre de 2016, la Ley de Aduanas se volvió a 
enmendar en varios aspectos.  
Question N°1:  ¿Podrían especificar cuáles son los aspectos enmendados por la Ley de Ad uana y en 
qué afecta a la normal operatoria de los exportadores e importadores?   
Answer :  
Many amendments simply modified wording, which should have no impact on traders. For example, 
changes of the official name of our cutsoms entity to reflect the outcom e of government 
restructuring. In Article 28 of the amendments, we incorporated provisions regarding the issuance 
of advance rulings on origins of imported goods, as provided for under Article 3 of WTO Trade 
Facilitation Agreement (Advance Rulings). This s hould contribute to the improvement of 
predictability of customs procedures and thus benefit importers and exporters.  
Page 42 para 3.6  
En el párrafo 3.6 se menciona que para poder importar o exportar, las empresas deben inscribirse 
en el registro de importadores y exportadores de la Oficina de Comercio Exterior (BOFT). Las 
sucursales de empresas exteriores que figuren en el registro de las autoridades pueden solicitar su 
inscripción.  
Question N°2:  ¿Cómo es el procedimiento y cuál es el costo para que las empresas soliciten la 
inscripción en el BOFT? ¿Existen beneficios y flexibilidades para PyMEs?  
Answer :  
1. Before applying for registration as an importer/exporter, an enterprise must first apply to the 
BOFT for preliminary review of whether the proposed English name of the enterprise is available. 
Applications for registration must be submitted to the BOFT within six months from the date of 
approval of the proposed English name.  
2. There is no registration fee.  
3. Importer/exporter  registration is conducted in accordance with relevant regulations . The rules 
are the same for all companies.  
Page 42 para 3.8  
En el párrafo 3.8 se indica que los comerciantes que se conectan a la ventanilla única CPT a través 
de un proveedor privado de servicios deben pagar derechos de transmisión, cuyos valores máximos 
fija el MOF.  
Question N°3:  ¿Podría explicar cuáles son y donde se publican tales valores máximos?  
Answer :  
1. The transmission fee charged by the private information network service provider  is based on 
the amount of data transmitted. The price ceiling is around US$0.0573 per kilobyte (KB) which 
is published on the Customs official website.  
2. More information on transmission fees can be found at 
https://web.customs.gov.tw/News_Content.aspx?n=4B97B267EBBDC9F2&sms=9FA66FA1713
5CFC2&s=FA1C64EA614CBE61  (only published in traditional Chinese script).  WT/TPR/S/377 – WTO Secretariat Report  WT/TPR/M/377/Add.1  
 
- 85 - 
 
  Page 43 para 3.12  
En el párrafo 3.12 menciona que en 2015, se estableció un programa de inspección móvil inteligente, 
que permite realizar inspecciones aduaneras mediante una plataforma con conexión a internet de 
cuarta generación o dispositivos móviles inalámbricos y recibir información  sobre las inspecciones 
en tiempo real.  
Question N°4:  ¿Podría dar más detalles del programa mencionado y explicar en qué medida ha 
agilizado los procedimientos de inspecciones?  
Answer :  
As many physical examinations of goods are carried out at container te rminals or warehouses far 
away from the field Customs offices concerned, the mobile inspection program, where necessary, 
helps facilitate voice and video communications between the on -site examiners and their colleagues 
and supervisors in the offices. More  importantly, it effectively shorten the time required for releases 
of Customs declarations and goods therein which are subject to examinations. This is because 
information about the results of examinations, if positive, can be immediately passed to the fi eld 
offices for further processing through mobile devices. Compared to conventional practices of which 
the declarations selected for physical controls can only be further processed after the examiners 
concerned have returned to their offices, access to the ir personal computers, and then input the 
results of examinations into the Cargo Clearance System, the mobile inspection program on average 
reduces the time needed for Customs releases by 2 hours.  
3. Trade Policies and Practices By Measure  
3.1 Measure Directly Affecting Imports  
3.1.3 Tariffs  
3.1.3.1 General features  
Page 46 para 3.22  
En el párrafo 3.22 el informe indica que las modificaciones del arancel son aprobadas y promulgadas 
mediante un procedimiento legislativo. Normalmente las proponen los org anismos sectoriales 
pertinentes (por ej.  las autoridades del sector industrial o agrícola) a la Comisión del Arancel 
Aduanero, dependiente del MOF.  
Question N°5:  ¿En qué circunstancias pueden modificarse los aranceles? ¿podrían brindar ejemplos 
recientes d e tales modificaciones?  
Answer :  
1. The reasons for the amendments to the Customs tariff include responding to suggestions from 
various sectors or industrial policies ' needs and implementing the tariff reduction commitments 
made under free trade agreements or economic cooperation agreements.  
2. For example, an amendment to our Customs Tariff was made in November 2017 to strengthen 
the photovoltaic industry supply chain for  diversifying energy sources and, at the same time, 
fulfill our tariff concession commitment to the Agreement on Economic Cooperation with the 
Republic of Paraguay.  
  WT/TPR/M/377/Add.1  
 
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  16  PHILIPPINES  
Page 8, para 3.10  
The flagship 5+2 Indu strial Innovation Plan was launched in 2016 to serve as the primary industrial 
development policy undertaking. The aim of this plan is to transform industrial innovation, moving 
towards high -value -added, service -oriented and solutions -oriented business mod els. It envisions 
achieving industrial innovation, job creation, equitable wealth distribution, and sustainability. The 
seven (5+2) innovative industrial pillars are: the Asia Silicon Valley, Smart Machinery, Green Energy 
Technology, Biomedical Industry, D efense Industry, New Agriculture, and the Circular Economy. 
Details of each are briefly outlined below.  
New Agriculture: The three main pillars in this program are to establish new agriculture paradigms, 
construct a safety system for agricultural products,  and enhance the capabilities of agricultural 
marketing. The strategies, such as promoting agricultural insurance programs, encouraging organic 
and environmentally -friendly farming, promoting green environmental payments on farmland, and 
setting up an on -line trading platform for agricultural products are being implemented to stabilize 
farmers' income and make full use of the multi -functional value of agriculture in a sustainable way.  
Question N°1:  Please provide further information on the establishment of safety system for 
agricultural products. What are the plans for setting up an on -line trading platform for agricultural 
products ?  
Answer :  
1. To create a safety system for agricultural products, we have implemented the following policies: 
Enhance the safety of agricultural products by implementing source management, strengthening 
safety management of production and sales, increasing the frequency of inspections of 
agricultural products, and introducing 4L1Q agricultural products for school lunches.  
2. In order t o stabilize the supply and demand of fruits, vegetables, and flowers, the competent 
authority has guided wholesale markets in adopting the electronic trading system and upgrading 
relevant equipment and facilities of trade venues. For example, the Appointme nt Trading System 
with a mobile app has been implemented in the Taipei Fruits & Vegetables Wholesale Market. In 
combination with the Vegetable Stockpile Rotation project during the flood season (May to 
October), priority is given to vegetables such as cabb age and Chinese cabbage on a trial basis 
for making transactions, with an aim to enhancing the efficient operations of wholesale markets 
and setting up a fair and transparent trading environment.  
Page 7, para 3.8  
Regarding investment policy, during the review period, the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu paid close attention to providing a business -friendly environment that 
would help to attract FDI. We reviewed our domestic reforms on investment in relation to the findings 
in the World Bank's Doing Business Index (DBI). The core strategy was to enhance the ease of doing 
business, improve regulatory transparency, and adhere to global best practices.  
Question N°2:  What were the domestic reforms undertaken for investments ?  
Answ er: 
1. In order to create a high -quality investment environment, the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu launched the Inter -minist erial Meetings on 
September  27, 2017 to review key issues affecting industrial development, deliberate  the 
relaxation of rules and regulations, and eliminate relevant investment barriers. As of September 
11, 2018, 22 meetings have been held, and many important achievements have been made, 
such as fulfilling implementation of public works, promoting private  participation in public 
construction plans, relaxing rules and regulations on 339 items, and addressing the five major 
shortages — electricity, water, land, labor and professional talent — faced by enterprises, etc.  
2. Since October 2008, we have been launch ing reforms on the business environment based on 
the criteria of the World Bank 's Doing Business report. In addition to drawing up related annual 
reform programs, the government has formulated measures to tackle low performance indicators 
in order to bring  the domestic regulatory system in line with international norms, further improve 
our investment environment, and boost its international competitiveness.  WT/TPR/G/377 – WTO Government Report  WT/TPR/M/377/Add.1  
 
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  3. Since the new administration of the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu to ok office in 2016, it has put forward a series of key policies, such as the 5+2 Industrial 
Innovation Program, the Forward -looking Infrastructure Development Program, as well as 
relaxation of regulations, optimization of the tax system, and acceleration of  investment in order 
to stimulate economic development and improve the ease of doing business  
4. Investment promotion practices:  
One-stop investment services: An office named InvesTaiwan was set up to provide specialized, 
dedicated, and fully customized servi ces for domestic and foreign investors. The office offers 
one-stop investment services, including business facilitation and application review, which 
accelerate the investment process to allow foreign companies to implement their investments in 
a timely ma nner. 
5. Enhancing the transparency and predictability:  
(1) To further enhance the transparency and predictability of our investment regime, the 
Investment Commission, MOEA is working on the draft amendments of the Statute for 
Investment by Foreign Nationals. The  draft amendments will go through the legislative 
process after public review.  
(2) The revised Negative List for Investment by Foreign Nationals entered into force on 8 February 
2018. The Investment Commission, MOEA will review the list regularly.  
1. Economic Environment  
1.2 Recent Economic Developments  
1.2.4 Structural policies  
1.2.4.2 Privatization  
Page 20, para 1.15  
During the review period public -sector involvement in the economy has remained relatively 
unchanged and spread over several activities, as there has been virtually a standstill in the widely 
opposed privatization process (Section 3.3.5). Publicly -owned enterprises and public utilities 
continued to be a major source of government revenue and used as industria l development or food 
security policy tools.  
Question N°3:  Does Chinese Taipei have plans on the privatization of services, including public 
services, in the future? ?  
Answer :  
1. Privatization plans for the Taiwan Power Company and Taiwan Water Supply Corporation are as 
follows： 
(1) Taiwan Power Company (TPC): According to the Electricity Act, the TPC will be divided into 
an enterprise electricity generation and an enterprise for electricity transmission and 
distribution. We will review the privatization plan of the TPC after it begins the process of 
separation of electricity generation and electricity transmission and distribution.  
(2) Taiwan Water Corporation (TWC): Certain tasks of the TWC, such as collecting water fees, 
recording water meters, operating wa ter purification stations, are being contracted to the 
private sector. There is no plan to privatize the TWC.  
2. State -owned financial enterprises are in charge of maintaining the stability of the domestic 
financial market. The Taoyuan International Airport C orporation, Taiwan International Ports 
Corporation, and Chunghwa Telecom are crucial to the people 's livelihood and public interest. 
Therefore, there are no privatization plans for these enterprises.  
2. Trade and Investment Regime  
2.2 Trade Policy Formula tion and Objectives  
Page 31, para 2.16  
A New Southbound Policy, launched in 2016, aims to foster economic cooperation and integration 
with ASEAN, South Asia, New Zealand, and Australia . The elaborated work plan is aimed at realigning 
the role of Chinese Ta ipei in Asian development and seeking new opportunities and momentum for 
its own development. It focuses on the following areas: economic and trade cooperation, talent 
exchanges, resource sharing and institutional links and connectivity. Additionally, reso urces will be 
used to promote five new flagship projects: regional agricultural development; medical and public 
health cooperation and the development of industrial chains; industrial talent development; WT/TPR/S/377  – WTO Secretariat Report  WT/TPR/M/377/Add.1  
 
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  industrial innovation and cooperation; and the NSP f orum and youth exchange programme, and 
three prospective areas (e -commerce, tourism, and infrastructure).  
Question N°4:  Please provide further information on the activities/measures c arried out by 
Chinese  Taipei to implement the "New Southbound Policy " towards ASEAN, particularly on trade, 
investments, and industrial collaboration.   
Answer :  
1. After implementing the New Southbound Policy, bilateral trade with New Southbound Policy 
countries grew by 15.5%, totaling 110.9 billion US dollar in 2017. Between January and August 
2018, bilateral trade grew by 5.5%, amounting to 77.07 billion US dollar. In order to facilitate 
bilateral trade and exchange between enterprises, we hold expos in partner countries to promote 
the image of our quality products, and conti nue to organize overseas trade missions, as well as 
invite buyers from New Southbound Policy countries to participate in procurement partnership 
conferences. We also provide financial assistance to help businesses explore and establish 
footholds in the New  Southbound market. In addition, we actively facilitate cooperation between 
e-commerce operators and perform business -matching to put their quality products on shelves. 
Moreover, to upgrade our e -commerce logistics environment, we cooperate with ASEAN 
countries in establishing overseas warehouses. Through signing MOUs with partner countries on 
trade promotion, e -commerce, standards of metrology, and trade facilitation, etc., we endeavor 
to remove trade barriers.  
2. In terms of investment, we provide bilateral investment information and assistance through our 
investment contact windows in target countries. We held investment forums where we invited 
officials from investment authorities of ASEAN countries to come to the Separate Customs 
Territory of Taiwan, Pengh u, Kinmen and Matsu to present their investment environment and 
business opportunities. We also organized investment missions to assist enterprises from both 
sides deploy their businesses to facilitate bilateral investment. In 2017, New Southbound 
countrie s invested 270 million US dollar in the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu. Meanwhile, our investments in New Southbound countries during this period 
totaled 3.68 billion US dollar.  
3. On industrial collaboration, we co -hosted a summit on industrial links with New Southbound 
Policy countries. Meeting the development needs of partner countries and combining these needs 
with our advantageous industries that possess output capacities, we co ntinue to accelerate 
bilateral industrial collaborations and facilitate partnerships in the supply chain. An example of 
such is the machine tools vocational training cooperation we have with partner countries where 
we jointly cultivate machine tool industr y talents. We are also cooperating with trading partner s 
to develop an industrial park in a South Asia country.  
2. Trade and Investment Regime  
2.4 Investment Regime  
2.4.1 General investment regime  
Page 37, para 2.38  
Since the previous review, there have be en no changes to the legal framework. 2012 amendments 
to the "Statute for Investment by Foreign Nationals" were not passed by the legislature.39 Given 
this development, the MOEA has been conducting a comprehensive re -evaluation of the current draft 
amendme nts. It has sought public comments and is working to put together all relevant opinions. 
Thereafter it will revise the draft of the amendment and submit it through the regular legislative 
process. In this context, the authorities indicated that considerati on is being given to removing the 
pre-investment screening/review requirement and replacing it with a post -investment registration 
mechanism . 
Question N°5:  Please provide information on its plan regarding the post -investment registration 
mechanism .  
Answer :  
The draft amendments provide that prior approval will only be required under certain circumstances, 
other investments can be declared within 2 months after the implementation of the investments.  WT/TPR/M/377/Add.1  
 
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  2. Trade And Investment Regime  
2.4 Investment Regime  
2.4.2  Business environment  
Page 38, para 2.44  
However, the World Economic Forum's 2017 -2018 Global Competitiveness Index showed a poorer 
performance of Chinese Taipei compared to that in 2013 -2014 (15th place out of 137 economies in 
the World Economic Forum's 2 017-2018 Global Competitiveness Index compared to 12th place out 
of 148 economies in 2013 -2014). The most concerning areas remain: policy instability, restrictive 
labour regulations, an inefficient capacity to innovate and bureaucracy. It improved its rank ings on 
access to financing, combatting corruption, tax regulations and rates.45 . 
Question N°6:  Please provide further information on the areas indicated that attributed to the drop 
of Chinese Taipei 's ranking particularly in respect of "restrictive labour  regulations ".  
Answer :  
In the World Economic Forum's 2017 -2018 Global Competitiveness Report, "restrictive labor 
regulations " are identified as a problematic factor for doing business in the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu.  This may have resulted from the amendments of 
labor laws and regulations in recent years, a result of taking into consideration safety and flexibility. 
By amending the labor laws and regulations, we aim to strengthen worker -employer relationships, 
protect  workers' rights and facilitate economic development to actively enhance our 
competitiveness.  
3. Trade Policies and Practices by Measure  
Page 41 para 3.1  
Since its previous Trade Policy Review, the general thrust of the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu's (Chinese Taipei) trade policy has remained relatively 
unchanged. While no unilateral liberalization has been undertaken, there have been policy 
developments in certain areas including trade facilitation, tariffs, preferen tial trade agreements, 
sanitary and phytosanitary requirements, government procurement, competition policy, and 
intellectual property rights.  
Question N°7:  We note in the Secretariat Report that while there was no unilateral liberalization, 
there have been  policy developments undertaken by Chinese Taipei in certain areas, e.g. tariffs. 
However, we also note that the "complexity and peak rates " of Chinese Taipei 's tariff have remained 
unchanged. In this regard, we would like to seek clarification on the spec ific policy developments 
relevant to Chinese Taipei 's tariff regime and its future plans to address tariff peaks and complex 
TRQ system.   
Answer :  
We will make the necessary adjustments to our tariff regime, including those regarding our TRQ 
system and tar iff peaks, to meet the needs of domestic industries and comply with international 
agreements.  
3. Trade Policies and Practices by Measure  
Page 41 para 3.3  
During the review period, the scope of export prohibitions and licensing was expanded. Export loans, 
guarantees and credit insurance at preferential terms have assisted manufacturers expand export 
markets in line with the New Southbound Policy objectives. Measures involving various tax and non -
tax concessions such as grants, and low -interest loans continu ed to support production and trade.  
Question N°8:  Please provide more information on the "expanded " scope of export prohibitions and 
licensing.   
Answer :  
In order to comply with international environmental agreements, such as the CITES, the Stockholm 
Convention, the OSPAR Convention, and the Rotterdam Convention, as well as to prevent drug 
abuse, additional items have been subjected to export prohibition or export licensing under Article 
11 of the Foreign Trade Act, such as hazardous narcotic materials  and invasive alien species, in 
accordance with.   WT/TPR/M/377/Add.1  
 
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  9.1.1.1 Customs procedure  
Page 42, para 3.9  
Customs may grant authorized economic operator (AEO) status to ten categories of "economic 
operators in the supply chain".10 There are two types of AEOs, General AEOs (AEO -G, involving 
importers/exporters) and Security and Safety AEOs (AEO -S). The benefits of AEO status depend on 
the type of certificate granted to the economic operator, and could include fewer customs controls 
(such as less documentation examinatio n and reduced random inspection rate), simplified customs 
procedures, and flexibility in customs duties payment.11 AEO programme participation is voluntary. 
As at March 2018, there were 699 (618 in 2014) AEOs of which 125 were importers and 125 
exporters.1 2 Chinese Taipei maintains AEO mutual recognition agreements (MRAs) with the United 
States (November 2012), Singapore (July 2013), Israel (December 2013) and the Republic of Korea 
(December 2015); AEOs recognized by the customs authorities of these Members  enjoy the benefits 
of trade facilitation in Chinese Taipei, and vice versa.13 A pilot AEO programme with China has been 
implemented from October 2016. An action plan regarding an AEO MRA with India has been in place 
since 11 October 2017. Work for the neg otiation of AEO MRAs with other trading partners (e.g. the 
European Union and Japan) has been ongoing.14   
Question N°9:  Please provide information on the granting of AEO status. What are the specific 
benefits of an AEO by type of certificate, i.e., General  vis-à-vis Security and Safety AEOs) ?  
Answer :  
The specific benefits provided for AEOG and AEOS  
AEOS, which is subject to more severe application requirements than AEOG, allows the eligible 
exported goods to enjoy the benefits of cross -border mutual recognition. Benefits of AEOG and AEOS 
are briefly described as follows:  
1. The specific benefits granted to the goods imported/exported by AEOG:  
(1) Lower examination rate; simplified examinations may apply to the imported goods selected 
for physical examination s; and exported goods selected for physical examinations may be 
exempted from examinations.  
(2) Where imported goods of an AEOG have been released from Customs by providing a 
guarantee, the consolidated payment of duties, taxes, and other charges may be calcu lated 
on a monthly basis.  
(3) An AEOG is entitled to apply for the provision of an affidavit as substitute for the guarantee 
for the payment of duties, taxes, and other charges.  
(4) An AEOG may apply for release of re -imported locally made goods from Customs with a 
written affidavit when making the import declaration, and be written off from the original 
export declaration afterwards.  
2. The specific benefits granted to the goods imported/exported by AEOS  
(1) Lowest rate of document review and examination.  
(2) Simplified exam inations may apply to the imported goods selected for physical 
examinations. Additionally, priority may be given to the examination of AEOS goods.  
(3) Where imported goods of an AEOS have been released from Customs by providing a 
guarantee, the consolidated pa yment of duties, taxes, and other charges may be calculated 
on a monthly basis.  
(4) An AEOS is entitled to apply for providing an affidavit as substitute for the guarantee for 
the payment of duties, taxes, and other charges.  
(5) A single contact window handles cas es where goods are not released. The single contact 
window enables Economic Operators to make enquiries and solves problems pertaining to 
customs clearance procedures.  
(6) An AEOS may apply for release of re -imported locally made goods from Customs with a 
written affidavit when making the import declaration, and be written off from the original 
export declaration afterwards.  
(7) An AEOS may apply for non -intrusive inspections of goods.  
(8) Goods with a declared Customs Value of more than NT$100 million (around US$ 32 million) 
may be released without documentation review and physical inspection.  
(9) According to article 52 of the Customs Act, temporarily imported goods may be released 
without providing the deposit for payment of duties, taxes, and other charges on the 
condi tion that an affidavit is provided.  WT/TPR/M/377/Add.1  
 
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  3.1.1.2 Customs Valuation  
Page 45, para 3.17  
Imports of used motor vehicles continue to be valued on the basis of the deductive c.i.f. price of 
"model year of imported cars" or the "trade -in price" in the exporting economies plus freight and 
insurance, or reasonable means as provided under Article 7 of the WTO Customs Valuation 
Agreement.31 Imports of used cars accounted for 6.9% (8.4% in 2013) of total imports of motor 
vehicles in 2017. In the case of incoming goods  on which only a rental or royalty is incurred, without 
a transfer of ownership, the customs value is determined on the basis of the rental or royalty amount 
plus the transportation fee and insurance fee.  
Question N°10:  What is Chinese Taipei 's rationale o n the use of deductive method on imported 
used motor vehicles?  
Answer :  
In general, imported used motor vehicles are usually not sold commercially. The used motor vehicles 
are usually purchased and then used by individuals in foreign countries for a perio d of time before 
importation. Therefore, there is no transaction value to determine the customs value of imported 
goods. In this case, the customs value of used motor vehicles will be adjusted downward by a 
depreciation factor determined by the age of the vehicle of the same brand and model year, or a 
deductive value of the domestic sales price of imported used vehicles of the same brand and model 
year. However, if the importer can provide documents to factually prove the sales, then the customs 
value of im ported goods could be determined and calculated on the basis of the transaction value.  
3.1.3.2 Applied MFN Tariffs  
Page 47, para 3.24  
Tariff protection varies substantially across and within sectors averaging 17.8% for agricultural 
products and 5.1% for in dustrial goods in 2018 (WTO definitions) (Table 3.1). Average tariffs are 
highest for vegetable products (HS section 02), at 21.6% (Chart 3.1). Manufacturing tariffs are 
highest for transport equipment (HS section 17) at 9.2%, and for textiles and textile articles (HS 
section 11) at 8.7%. By according varied and substantial levels of protection to selected sectors, 
especially agriculture, tariffs distort competition by favouring some activities. Reducing high tariffs 
would improve Chinese Taipei's resource allocation and welfare.  
Question N°11:  What is Chinese Taipei 's procedure for a tariff modification petitioned by an 
interested party (industry)? Aside from betel nuts, what are other specific agricultural products with 
high tariff rates?   
Answer :  
1. Suggest ions for tariff modifications by interest parties should be sent to the Ministry of Finance 
(MOF), and the MOF will pass them on to the competent authorities responsible for industrial 
policies to evaluate their feasibility. If the competent authorities de em such to be feasible, a 
draft for modification will be submitted to the Customs Tariff Commission under the MOF for 
further review. Once the draft is finalized by the Commission, it will be submitted by the MOF to 
undergo the executive and legislative pr ocess before entring into force.  
2. Regarding the high tariff rates on our agricultural products, please see pages 102, 153 -155 
of the  Secretariat Report.  
3.1.3.2  Applied MFN Tariffs  
Page 48, Para 3.25  
The tariff structure has changed little since the last Trade Policy Review of Chinese Taipei. Over 98% 
of tariffs are levied at ad valorem duties, and therefore transparent. There are some 150 different 
rate bands (92 ad valorem duties, 42 alternate duties , and 16 specific duties), same as in 2013 but 
differently allocated, and of which 49 involve decimal rates; alternate duties apply to 0.8% of total 
tariff lines (72). Tariff rates continue to range from zero to 1,059.6% (betel nuts, see below and 
Table A3 .1). In 2018, 81.2% of rates are 10% or below, and rates of over 30% apply to 1.6% of 
tariff items, compared to 82.7% and 1.7% in 2013 respectively (Chart 3.2). The Chinese Taipei tariff 
could be rationalized, for example, by reducing the large number of r ate bands and removing decimal 
rates.  
Question N°12:  How does Chinese Taipei conduct tariff review? What is the general procedure?  
Are there plans to (a) convert non -advalorem tariffs to ad -valorem tarrifs, (b) reduce the number of WT/TPR/M/377/Add.1  
 
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  tariff bands and (c) simplify tariff rates (i.e., whole numbers, and removal of less than 1% tariff 
rate)?   
Answer :  
1. A tariff review could be initiated through suggestions from various industrial sectors, according 
to the industry 's policy needs, or for implementing the tariff reduction commitments made under 
Free Trade Agreements or Economic Cooperation Agreements.  
2. With regard to the general procedure for a tariff review, please refer to the answer to the 
previous question.  
3. To sim plify our tariff structures, we have been studying the feasibility of substituting ad valorem 
duties for alternate duties applied on certain agricultural products. In 2014, for example, we 
concluded that the amendment of 9 lines (including agricultural and  fishery products) selected 
from the 81 tariff lines in our Customs Import Tariff on which alternate duties were applied could 
be put into our draft revision of Customs Import Tariff. The amendment became effective in July 
2015.  
4. Moreover, to fulfill our c ommitment to the Declaration of the Expansion of Trade in Information 
Technology Products of the WTO, duties on 160 tariff lines of information technology products 
will be eliminated by 1 July 2021. This move will eliminate some of the tariff lines with de cimal 
rates.  
3.1.3.3 MFN Tariff dispersion and escalation  
Page 49, Para 3.26  
Since the previous Review, indicators of tariff dispersion declined (coefficient of variation, standard 
deviation) whereas tariff escalation showed little change (Table 3.1 and C hart 3.3).  
Question N°13:  Can you provide examples of product groups (fully processed products, its raw 
materials or semi -processed inputs) where tariff escalation existed? Are there plans to minimize or 
remove the occurrence of tariff escalations?   
Answe r:  
1. Example of tariff escalation:  
 Tariff No.  Description of Goods  Tariff Rate  
1 1801.00.10  Cocoa beans, whole or broken, raw  Free 
2 1806.90.10  Mixes and bases with a basis of cocoa, for making ice cream  5% 
3 1806.90.51  Milk powder, prepared, containing  5% or more but less than 10% by 
weight of cocoa calculated on a totally defatted basis  12% 
2. Suggestions for minimizing or removing the occurrence of tariff escalation on certain product 
groups will always be seriously considered.   
3.1.3.7 Duty concessions /exemptions  
Page 51, Para 3.33  
To accelerate industrial development and accommodate domestic supply and demand, the 
authorities continued to reduce or exempt tariffs on industrial raw materials, and temporarily reduce 
tariffs on staple goods and daily necessities.51 They consider that these measures greatly contribute 
to domestic price stability, economic development, and industrial competitiveness. The MOF may 
adjust customs duties temporarily in order to deal with an "extraordinary" economic situation , 
domestic or overseas, to accommodate the supply of goods, or to provide a "reasonable operational 
environment" without seeking approval from the legislature.52 Adjustments are allowed within 50% 
of the statutory duty rate or quantity, and may be applied for up to one year. Between 2012 and 
2017, the authorities undertook 6 temporary adjustments of tariff rates affecting 20 items including 
milk and cream, pork fat free of lean meat, pork lard, other pork fat and animal fats, pork lard and 
poultry fats, and  4 categories of goose meat; forgone tax revenue due to the implementation of 
these temporary adjustments was estimated at NT$193.4 million for this period.  
Question N°14:  What is considered as "extraordinary economic situation "?  
Answer : 
Soaring prices or  serious shortages in the supply of certain daily food products in the domestic 
market, which may well affect economic development or social stability, are typical examples of 
extraordinary economic situations.  WT/TPR/M/377/Add.1  
 
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  3.1.6.1 Anti -dumping and countervailing  
Page 54 Para 3.44  
During the review period, the legislative framework was revised in certain areas. The legal basis for 
the implementation of anti -dumping and countervailing measures consists of Articles 67, 68 and 69 
of the Customs Act and the Regulations Gove rning the Implementation of the Imposition of 
Countervailing and Anti -Dumping Duties, both of which are considered by the authorities to be in 
accordance with the WTO Anti -Dumping Agreement provisions.65 Some articles of the Regulations 
were amended in 201 6 to: update the processing and deliberating procedures for withdrawal of 
cases (Articles 15 and 15 -1); revise the regulations for acceptance and deliberation procedures, 
implementation and inspection procedures, and administration of violation procedures of price 
undertaking (Articles 23, 24, 25 and 25 -1); update application provisions for investigating new 
shippers, as well as procedures for deliberating and providing guarantees during the period of 
investigation (Article 35 -1); and, update regulations fo r price undertaking measures that will 
continue to apply during the sunset review period (Article 44).  
Question N°15:  What are the salient features of the amendment of the said law consistent with 
WTO Anti -Dumping Agreement?   
Answer :  
The relevant updated and consolidated versions of the laws and regulations are available on the 
website https://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0350034.  
Some articles of the Regulations were amended in 2016 to: update the processing and deliberating 
procedures for withdrawal of cases (Articles 15 and 15 -1); revise the regulations for acceptance and 
deliberation procedures, implementation and inspection procedures, and administration of violation 
procedures of price undertaking (Articles 23, 24, 25 and 25 -1); upd ate application provisions for 
investigating new shippers, as well as procedures for deliberating and providing guarantees during 
the period of investigation (Article 35 -1); and, update regulations for price undertaking measures 
that will continue to apply  during the sunset review period (Article 44).  
Page 54 -55 Para 3.44 -3.50 
Question N°16:  Does Chinese Taipei initiate trade remedy (anti -duming, countervailing, and 
safeguard) investigations motu propio or only upon request of interested parties?   
Answer : 
1. Anti-dumping and countervailing measures:  
According to Article 2 of the Regulations Governing the Implementation of the Imposition of 
Countervailing and Anti -dumping Duties, the the Ministry of Finance (MOF) may initiate an anti -
dumping or countervailing i nvestigation based on an application from interested parties, referral 
from other government agencies, or on its own initiative.  
2. Safegaurd measures:  
According to Article 6 of the Rules for Handling Import Relief Cases, the Ministry of Economic 
Affairs (MOE A) may, upon petition by the relevant authority  in charge of the said industry, the 
injured domestic industry, the association or union representing the injured domestic industry 
or the relevant entities, refer the case to the International Trade Commissio n to proceed with 
investigation.  
3.1.6.1 Anti -dumping and countervailing  
Page 55 Para 3.45  
The MOF and the MOEA continue to share responsibility over anti -dumping and countervailing 
investigations. The former is focused on dumping/countervailing determinat ion and measure 
adoption, whereas the International Trade Commission (ITC) under the latter determines injury to 
domestic industries. Their websites provide information on investigations, reviews, and measures 
adopted.  
Question N°17:  Please delineate the function of MOF and MOEA relative to conduct of anti -dumping 
and countervailing investigations? How does International Trade Commission (ITC) under MOEA 
determine inijury to domestic industries?   
Answer :  
1. With respect to countervailing or anti -dumping investigations, the MOF is responsible for 
investigating whether the imported product is subsidized or dumped, whereas, the MOEA is WT/TPR/M/377/Add.1  
 
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  responsible for investigating whether the subsidized or dumped imported produ cts cause injury 
to the domestic industry. The aforesaid investigations for which the MOEA is responsible shall 
be conducted by the International Trade Commission (ITC) of the MOEA.  
2. With respect to the determination of whether the dumped or subsidized impo rts are causing 
injury to the domestic industry, the ITC shall conduct an investigation and a comprehensive 
evaluation of the following: (1) the increase of imports; (2) the effect of the imports on the 
market price of the domestic like product; (3) the im pact of the imports on the domestic industry, 
including an evaluation of the economic factors having a bearing on the state of the industry.  
3.1.6.1 Anti -dumping and countervailing  
Page 55 Para 3.46  
During the period under review, recourse to anti -dumping action remained relatively stable.66 
Between 2013 and 2016, Chinese Taipei initiated 11 anti -dumping investigations (12 in 2009 -12) 
involving carbon steel plate (Brazil, China, India, Indonesia, Republic of Korea, Ukraine), certain 
flat-rolled steel produc ts, plated or coated with zinc or zinc -alloys (China, Republic of Korea), 
Portland cement type I, II and its clinker (China), benzoyl peroxide (China), computer to plate 
(China), SUS 300 series flat -rolled products of stainless steel, cold -rolled (cold -reduced) (China), 
and towelling products (China).67 As of end -2017, 19 anti -dumping measures were in force on 7 
products mainly carbon steel plate (6 cases), certain flat -rolled steel products (2 cases) and flat -
rolled products of stainless steel (2 cases); 5  measures were in place in June 2013.68 At the same 
time, action affected mostly products originating in Asia (12, China (7), Republic of Korea (3), India 
(1) and Indonesia (1)), and to a lesser extent Brazil and Ukraine. Most final measures consisted of 
definitive duties; in five cases price undertakings were adopted. Seven measures were reviewed and 
extended to a total period of six years.  
Question N° 18: In what form do the AD an d CVD definitive measures take?  Can you provide further 
information about t he five (5) price undertakings?  Can you provide further information on the 
initiation and procedure of the seven (7) measures that was reviewed for extension?  
Answer : 
1. The definitive anti -dumping or countervailing measures will be taken in the form of anti -dumping 
or countervailing duties or price undertaking.  
2. From 2013 to 2017, five price undertakings were accepted, including toweling products, certain 
footwear, SUS 300 series cold -rolled stainless steel, and carbon steel plate from China or the 
Republic of Korea.  
3. From 2013 to 2017, seven measures were reviewed for extension, including toweling products 
(anti-dumping duty and price undertaking), certain footwear (anti -dumping duty and price 
undertaking), Portland cement type I, II and its clinker, benzoyl per oxide and sodium 
formaldehyde sulfoxylate from China. Prior to the imposition of an anti -dumping duty having 
exceeded four years and six months, the MOF shall make a public notice that the period of 
imposition is approaching five years. If the interested p arties consider that continued imposition 
is necessary, they may apply for the initiation of a sunset investigation within one month from 
the publication of the aforesaid public notice. The MOF shall make a public notice prior to the 
expiration of the impo sition period of whether to initiate a sunset investigation. With respect to 
the case where the initiation of the sunset investigation has been decided, the MOF will request 
the exporter to respond to a questionnaire, or provide relevant information. The s unset 
investigation shall be completed within one year. The anti -dumping duty shall remain in force 
pending a determination of the sunset investigation.  
3.1.6.1 Anti -dumping and countervailing  
Page 55 Para 3.47  
Chinese Taipei has not taken any countervailing measures so far. On 16 April 2018, Chinese Taipei 
published the notice of initiation of countervailing duty investigation against certain incoming flat -
rolled steel products, plated or coated with zinc or zin c-alloys, carbon steel plate, SUS300 series 
flat-rolled products of stainless steel, cold -rolled (cold -reduced), as well as initiation of both anti -
dumping and countervailing duty investigations on the imports of certain carbon cold -rolled steel 
products a nd certain flat -rolled products of stainless steel, hot -rolled all originating in China.69 Public 
hearings to collect feedback from concerned parties and gauge public opinion before formally 
launching the investigation were to be held. The MOF is expected to announce its preliminary 
countervailing duty (and anti -dumping duties) on Chinese steel products in August 2018 and its final 
decision in October of the same year. Since its last Trade Policy Review, Chinese Taipei has regularly WT/TPR/M/377/Add.1  
 
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  submitted semi -annual re ports on anti -dumping and countervailing actions to the relevant WTO 
Committees (Section 2.3.1 and Table A2.1).  
Question N°19:  Please elaborate Chinese Taipei 's basis for computation of AD and CV duties.   
Answer :  
1. The basis for computation of anti -dumping  (AD) and countervailing (CV) duties is in accordance 
with provisions of the WTO Anti -dumping Agreement and the Agreement on Subsidies and 
Countervailing Measures.  
2. When calculating the dumping margin, for the exporters or producers who have fully responded  
to the questionnaires, the MOF will calculate the normal values and export prices of the firms ' 
subject products, with necessary adjustments, based on the information provided in the 
questionnaires. As for non -cooperative exporters or producers, the MOF w ill use the best 
information available to calculate the dumping margin.  
3. When calculating the subsidy amount, for governments, their exporters or producers who have 
fully responded to the questionnaires, the MOF will calculate the amount of benefit given to  the 
recipient based on the information provided in the questionnaires. As for non -cooperative 
governments, their exporters or producers, the MOF will use the best information available to 
calculate the benefit to the recipient conferred.  
3.1.6.2 Safeguards  
Page 55,  Para 3.49  
No safeguards were taken under the provisions of the WTO Agreement on Safeguards during the 
review period. An investigation on all imports of high density polyethylene (HDPE) and linear low 
density polyethylene (LLDPE) was op ened in July 2013, and negative injury was determined in April 
2014.  
Question N°20: Can you provide a brief overview on the SG investgiations and their reviews? What 
form of SG definitive measures were previously applied?  
Answer :  
No safeguard investigat ion has ever been initiated, except for the investigations on HDPE and LLDPE 
mentioned in the secretary report.  
3.3.1.2.4 Sector -specific support  
Page 64, Para 3.81  
During the review period, tax and non -tax incentives supported agricultural activities (T ables A3.6 
and A3.7, and Sections 3.3.1.1.2, 3.3.4.2 and 4.1.1.5). According to the authorities, promoting 
import -substitution forms part of its new agricultural policy elements (Section 4.1).109 According to 
its 2017 WTO notification, in 2011 and 2012 Chi nese Taipei provided product - and non -product -
specific support to agriculture, the former in the form of guaranteed prices, contract guaranteed, 
drying subsidy, freight subsidy, purchase, and the latter in the form of input subsidies (agricultural 
machiner y, fertilizers, waiver/reduction of electricity fees) (Section 4.1.1.5.1).110 During the review 
period, the submission of relevant WTO notifications of domestic support was delayed due to the 
time required to collect and calculate the data; the authorities  indicated that these notifications 
would be submitted soon. Non -tax incentives were also available for fisheries including aquaculture 
(Section 4.1.3.6). Oil used by farmers and fishermen is exempt from VAT, and additional support in 
the form of discounts  is available for gasoline and diesel used by fishermen; the authorities consider 
that these subsidies are not sector -specific (Sections 3.3.4.2 and 4.1.3.6).   
Question N°21:  Please provide further information on the import -substitution promotion being part 
of the new agricultural policy elements.  
Answer :  
To cope with climate change and unstable international food supplies, the government launched the 
"Plantation Adjustment System and Fallow Land Revitalization Program " in 2013 to revitalize fallow 
lands and increase self -sufficiency. This program was transformed into the "Environmental Green 
Payment on Land Area " in 2018. Under this Program, farmers are encouraged to grow im port-
substitution crops to support local production and local consumption. The policy is also helpful for 
stabilizing domestic food supplies, maintaining food security, as well as achieving the goal of 
shortening food mileage, energy conservation and carbo n reduction.  WT/TPR/M/377/Add.1  
 
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  3.3.3.1 Food standards -setting framework  
Page 73 Para 3.114  
Reportedly, Chinese Taipei's slow process for establishing MRLs for pesticides, low number of 
approved MRLs, and zero tolerance policy for pesticides without established MRLs have res ulted in 
incoming agricultural shipments being stopped at the ports of entry and other restrictions. Concerns 
also relate to MRLs that are considered not Codex standards - or science -based.169 In 2014, the 
COA devised a set of review standards to ensure con sistency in the treatment of overseas test 
reports on field efficacy and residues. The authorities indicated that they follow the principle of 
establishment of pesticide MRLs consistent with international standards on the basis of scientific 
principles, an d in line with the COA's requirements for using pesticide. Furthermore, the levels at 
which the MRLs are set depend on the dietary pattern and total intake in Chinese Taipei, and they 
are eventually established on the basis of risk assessments. The process  of evaluating the pesticide 
MRLs of incoming crops is subject to the same principles as those for local crops.  
Question N°22:  Please provide information on Chinese Taipei 's plans on the MRLs for pesticides.   
Answer :  
1. We establish pesticide MRLs based on international standards (such as Codex US, EU, Japan 
etc.) and scientific principles. Furthermore, the levels at which the MRLs are set depend on the 
dietary pattern and total dietary intake of consumers in the Separate Customs Territory of 
Taiwan, Penghu,  Kinmen and Matsu, and will eventually be established on the basis of risk 
assessments. The process of evaluating the pesticide MRLs follows above -mentioned risk 
assessment principles to protect food safety, and is the same for both imported and domestic 
crops. 
2. The concise procedures for establishing tolerance levels of pesticide residues in the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu is as follow:  
(1) Prepare all relevant documentation and apply to the competent authority;  
(2) Carry our risk  assessment procedure;  
(3) Convene an expert consultation committee meeting and review documents;  
(4) Commence administrative procedures for the draft and official document, including pre -
notification, public announcement and notification to WTO;  
(5) Officially announce the regulatory order.  
4.1.1.4.5 Export promotion, restriction and prohibition  
Page 104 Para 4.21  
Chinese Taipei helps farmers to enhance global recognition of their agricultural products and increase 
exports by conducting and facilitating internat ional marketing programmes, holding overseas 
exhibitions, and building brand images. As noted in Chinese Taipei's previous review, the coverage 
of beneficiary products in this programme is wide, including fish (tuna, grouper, and tilapia), orchids, 
tea, so ya bean and fruits (bananas and mangos)  
Question N°23:  Please provide further information on the assistance programs being provided to 
the farmers.  
Answer :  
The assistance programs being provided to farmers include the following:  
1. Production subsidies: Increasing agricultural production through program support in subsidy 
schemes in fertilizer and agricultural electricity, encouraging cultivation of import -substitution 
crops, and a direct payment program for rice paddies.  
2. Agricultural insurance programs: Stabilizing the income of farmers by agricultural insurance and 
natural disaster aid.  
3. Environmental payments on farmland: Protecting farmlands and fostering multiple land usage, 
including protection of production environments, and subsidies for organic and  environmentally -
friendly farming practices.  
4.1.1.5.1 Notified support levels  
Page 104 Para 4.23  
A complete and up -to-date picture of domestic support levels, as notified to the WTO, was not 
available, since Chinese Taipei's most recent domestic support n otification only covers 2011 and 
2012. In the context of this Review, the authorities indicated that a new notification will be submitted 
soon. Total domestic support for agriculture, including Green Box, and Amber Box (i.e. including de WT/TPR/M/377/Add.1  
 
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  minimis levels), a mounted to NT$52.8 billion in 2012 and fluctuated in the preceding y ears 
(Table  A4.1).  
Question N°24:  Are there updates on the complete and up -to-date notification of Chinese Taipei 
on domestic support?  
Answer :  
The notification for domestic support measu res from 2013 to 2015 will be submitted as soon as 
possible.  
4.3 Manufacturing  
4.3.1 Overview  
Page 119 Para 4.97  
Challenges faced by the manufacturing sector include: obstacles to industrial transformation (an 
over-concentration of electronics and original equipment manufacturers (OEM)), and a lack of key 
materials, equipment and system integration solutions as well as the fact that final goods are not 
branded (although IC components are used in global value chains); difficulties in accessing 
intern ational markets; low levels of investment; and labour shortages.77 At the time of Chinese 
Taipei's previous Review, the manufacturing sector had been negatively affected by the relocation 
of manufacturing activities to lower cost locations in the region78;  however the authorities indicated 
that as production costs in China have risen, relocation of manufacturing to China is no longer on 
an increasing trend. In response to these challenges, industrial upgrading is one of the objectives 
and strategies contain ed in the 17th mid -term development plan (NDP 2017 -2020) (Section 2.2). 
Additionally, a Five -Plus-Two Industries Innovation Plan emphasizes accelerating overall industrial 
upgrades through innovation (Section 2.2). Innovation in the chip design and semicon ductor 
industries is also being encouraged; the aim is to shift the industrial base away from its traditional 
concentration on contract manufacturing and gear it towards high -value added, service -and 
solutions -orientated business models. The focus is prima rily on emerging applications development, 
such as Internet of Things (IoT), artificial intelligence and automobile electronics. Supporting policies 
are being put in place such as to build the appropriate ecosystem and encourage investors to support 
innova tion in semiconductor technologies (such as new IC design algorithms, new processes under 
3 nanometre and 3D integrated circuit packaging).79 The authorities indicated that new legislation 
facilitating the recruitment of overseas professionals should help to alleviate labour shortages 
(Section 2).  
Question N°25:  We would like to seek further information on the implementation of the Five -Plus-
Two (5+2) Industrial Innovation Plan in terms of fostering industrial upgrades through innovation.   
Answer :  
1. The innovative development model needs to take into account employment, wages, income 
distribution, and regional inequality. It aims to ensure that all citizens share the benefits of 
economic growth. In planning for future industrial developments, the Ministry  of Economic Affairs 
has been focusing on promoting the five key innovation -oriented industries – Smart machinery, 
the Asian Silicon Valley initiative, the biotech & pharmaceutical industry, green energy, and the 
defense industry plus the circular economy,  aiming to support across -the-board industrial 
transformation and upgrading.  
2. The innovation promotion strategies are outlined as follows:  
(1) Smart Machinery: Promote the introduction of intelligent technology into the precision 
machinery industry, establish a  smart machinery ecosystem, and introduce smart 
manufacturing to various industries.  
(2) Asian Silicon Valley: By relaxing regulations, cultivating talent and encouraging local 
innovation, we aim to drive economic growth through innovation and entrepreneurship ; 
through deepening of domestic and international links, we promote industrial transformation 
and upgrades with the Internet of Things (IoT).  
(3) Green energy: Promote cross -industry integration of large enterprises, cooperate with 
international manufacturers (e.g. aircraft cabin assembly plants), establish an industry 
supply system through personnel training in the domestic market, and refocus on the Asia -
Pacific market.  
(4) Biotech & pharmaceutical industry: Integrate the resources of domestic biotechnology and 
pharmaceutical manufacturers, form alliances, develop niche products that meet the needs 
of the target market, and promote system integration and intelligent application for products 
to better compete internationally.  WT/TPR/M/377/Add.1  
 
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  (5) Defense Industry: Establish independent  design, manufacturing, assembly and key 
technologies; construct an independent military aircraft and ship supply chain, and expand 
the dual -use market; at the same time, promote the optimization of the information security 
industry structure, and create a n innovation and entrepreneurship ecosystem for the 
information security industry.  
(6) Circular Economy: Using the strategy of "circulating industrialization " and "industrial 
recycling, " we will develop innovative materials and promote the high value of renewa ble 
resources. Meanwhile, we will construct an industrial park for recycling of emerging 
materials, establish a circular economy information platform, and promote symbiosis in the 
recycling industry.  
4.4.4. Transport Services  
4.4.4.1 Maritime Transport  
Page 131 Para 4.154  
The main laws governing the sector are the Shipping Act, the Law of Ships, and the Commercial Port 
Law.137 Over the review period, the Shipping Act was amended once, in 2014, to reflect 
developments in Chinese Taipei's free trade and maritime cooperation agreements.138 
Question N°26:  Please provide further information on the applicable laws and regulations of 
Chinese Taipei with regards to acquisition and registration of ships? What are the scheme/procedure 
on ship acquisition and registration? Does Chinese Taipei provide incentives to shipping companies?  
Answer :  
1. According to Article 27 of the Shipping Act and  Section 2 of the Regulations for Administrating 
Vessel Carriers, the application for ship acquisition by shipping companies shall be submitted to 
the competent authority. Regarding the procedure of ship acquisition, please refer to the 
Application for Bui lding/Purchase/Sale Registration of Vessel (Chinese edition only). 
(https://motclaw.motc.gov.tw/wfrmDownload.aspx?ID=13509&type=Law ) 
2. Regarding ship registrations, applicants have to follow the Law of Ships and the Ship Registration 
Law. They shall submit their proposal of ship purchase to the shipping administration authority 
prior to purchase. The proposal will then be forwarded to the MOTC for approval. Applicants shall 
register the proprietorship at the shipping administration authority of the port of registry within 
3 months upon receiving the Ship Inspection Certificate and the Tonnage Certificate.  
3. There are no incentives for shipping companies.  
4.4.4 Transport Services  
4.4.4.2 Air Transport  
Page 132 Para 4.160  
Chinese Taipei has two international airports (Taoyuan International Airport) and (Kaohsiung 
International Airport) and 15 domestic airports. All airports are publicly owned and managed 
(Section 3.3.5).148 The Taoyua n International Airport is operated by a fully publically owned 
corporation ("Taoyuan International Airport Corporation"). The other 16 airports are public agencies. 
No concessions have been granted to private -sector companies. Major infrastructural works in 
progress include the construction of a third terminal at Taoyuan International Airport which should 
increase airport capacity by 20 million passengers per year. No other major infrastructural works 
are being undertaken or planned.  
Question N°27:  What is  the status of the said construction of the third terminal of Taoyuan Airport?   
Answer :  
The project is divided into 13 tenders, of which 7 tenders have commenced construction with 
progress according to schedule. Bids for the main terminal building opened for tender twice, but did 
not receive any bids. Currently, the design is in the process of being reviewed.  
4.4.4 Transport Services  
4.4.4.2 Air Transport  
Question N°28:  There is a recent order of the Civil Aviation Administration of China (CAAC) to all 
foreign airlines to reflect certain Separate Customs Territories as part of China.  How is this being 
implemented by Chinese Taipei? What are its implications for foreign airlines which have not 
complied with the order?  WT/TPR/M/377/Add.1  
 
- 99 - 
 
  Answer :  
1. Our carriers were not among the foreign airlines requested by China 's Civil Aviation 
Administration to change the designation on their websites. The language used on our carriers ' 
websites has not changed.  
2. We regard any conduct of political interference in the operation of private bu siness practices and 
international enterprises not only unreasonable, but also inconsistent with the trend of 
international air transportation developments. These kinds of incorrect information will lead to 
confusion for consumers.  
3. As a Member of the WTO, we only recognize Member 's domestic regulatory measures if they are 
carried out in a reasonable, objective and impartial manner. We thank like -minded Members, as 
well as foreign airlines and other actors of the international community that have stood up an d 
shown moral fortitude.  
ADVANCE QUESTIONS - ADDITIONAL  
3.8 Bilateral and Multilateral Economic Integration  
Page 15 Para 3.24  
3.24. In an effort to elevate our alignment with and readiness to participate in high -level regional 
trade agreements (RTAs) such as the Comprehensive and Progressive Agreement for Trans -Pacific 
Partnership (CPTPP), during the review period the government undertook a major regulatory review, 
benchmarking the rules and obligations under the CPTPP and other recent RTAs. A number of 
legislative revisions and legislative initiatives, including revisions to the Pharmaceutical Affairs Act 
as well as the Ocean Fishery Management Act and its related laws, have already been completed, 
while the Act for Control of Cosmetic Hygiene and Safety ha s passed the third reading in the 
Legislative Yuan. Other proposals for legislative amendments, including amendments to the Plant 
Variety and Plant Seed Act, Agro -pesticides Management Act, Draft Digital Communication Act, 
Patent Act, Trademark Act, Copyri ght Act, and Postal Act have also been deliberated. The Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu will continue to review trade and 
investment regulations in order to develop a free and open economy and explore further 
opportunities to  participate in regional economic integration mechanisms, including the CPTPP and 
RCEP.  
Question Add. 1:  Please provide the details of the amendments undertaken resulting from the 
regulatory review and benchmarking of rules and obligations under the CPTPP and other recent 
RTAs.  
Answer :  
Our government has been actively promoting trade liberalization by harmo nizing its trade regime 
with international norms. We have therefore referenced the high standards of the CPTPP to modify 
our trade regime by putting forward 12 legislative amendments in the past two years. Seven 
amendments have been completed, while the re maining five are under review. The amendments 
cover the areas, including IPR, distant water fishing, pharmaceutical affairs, plant variety protection, 
agro-pesticides management, cosmetic hygiene control, digital communications, etc.  
Summary  
Page 12 Para 2 2 
Chinese Taipei's mobile phone and mobile broadband penetration rates remain high. There remain 
limits on overseas investment in certain types of telecommunications companies. A partially publicly 
owned telecom company continues to retain a dominant posit ion in several market segments.  
Question Add. 2:  Will Chinese Taipei open its mobile phone and broadband supply to foreign 
investments in the future?  
Answer :  
1. In the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, telecom enterprises 
are classified into Type I and Type II. A Type I telecom enterprise refers to a facilities -based 
telecom operator that installs telecommunications line facilities and equipment in order to 
provide telecommunications services, while a Type II enterprise refers t o a service -based 
telecom operator other than Type I telecom operators.  
2. In comparison to our accession commitments to the WTO, the cap on direct foreign ownership 
in a Type I telecom enterprise has been increased to 49%, while the sum of direct and indire ct WT/TPR/M/377/Add.1  
 
- 100 - 
 
  shareholding by foreign nationals  in a Type I telecom enterprise has remained at 60%. For a 
Type II telecom enterprise, there is no limitation on foreign ownership.  
3. Where mobile phone and broadband services are supplied by a Type I telecom enterprise, t he 
enterprise shall be subject to the abovementioned foreign investment cap; where mobile phone 
and broadband services are supplied by a Type II telecom enterprise, such as a MVNO, there is 
no limitation on foreign investment.   
4. We review the foreign ownership policy in Type I telecom enterprises at irregular intervals. 
Currently, there is no further plan to relax the foreign investments cap in Type I telecom 
enterprise.   
1.2.4.2 Privatization  
Page 20 Para 1.15  
During the review period public -sector in volvement in the economy has remained relatively 
unchanged and spread over several activities, as there has been virtually a standstill in the widely 
opposed privatization process (Section 3.3.5). Publicly -owned enterprises and public utilities 
continued t o be a major source of government revenue and used as industrial development or food 
security policy tools.  
Question Add. 3:  What are the enterprises and utilities that still remain publicly owned? Are there 
plans to privatize these enterprises and utiliti es in the future? Given the widely opposed privatization 
process, how does Chinese Taipei intend to pursue the process? Can a timeline be provided on the 
implementation of the privatization process?  
Answer : 
1. Privatization plans for the CPC Corporation, Taiwan, Taiwan Power Co., Taiwan Sugar Corp. and 
Taiwan Water Supply Corp. are as follows ： 
(1) CPC Corporation, Taiwan (CPC): The privatization plan is pending conclusion of a relevant 
legislation.  
(2) Taiwan Power Co. (TPC): According to the Electricity Act, the TPC will be divided into an 
enterprise electricity generation and an enterprise for electricity transmission and 
distribution. We will review the privatization plan of the TPC after it begins the process of 
separation of electricity generation and electric ity transmission and distribution.  
(3) Taiwan Sugar Corp. (TSC): The privatization is now under review.  
(4) Taiwan Water Corp. (TWC): Certain tasks of the TWC, such as collecting water fees, 
recording water meters, operating water purification stations, are being  contracted to the 
private sector. There is no plan to privatize the TWC.  
2. State -owned financial enterprises are in charge of maintaining the stability of the domestic 
financial market. The Taoyuan International Airport Corporation, Taiwan International Por ts 
Corporation, and Chunghwa Telecom are crucial to the people 's livelihood and public interest. 
Therefore, there are no privatization plans for these enterprises. With regard to the Taiwan 
Tobacco and Liquor Corporation (TTLC), the prerequisite for releas ing shares is to reach a 
consensus between the TTLC and its employees. Because there is no such consensus at the 
moment, there is neither a timetable nor a specific plan for releasing shares of the TTLC.  
Trade Policy Formulation and Objectives  
Page 30 Para  2.10 
2.10. The Office of Trade Negotiations (OTN) continues to be responsible for international trade 
negotiations. In September 2016, supervision of the OTN was upgraded in order to achieve better 
coordination between the various agencies involved in negotiations to join the Comprehensive and 
Progressive Agreement for Trans -Pacific Partnership (CPTPP) and the Regional Comprehensive 
Economic Partnership (RCEP).  
Page 36 Para 2.33  
2.33. No other RTAs are being negotiated. However, Chinese Taipei continues  to seek to join the 
CPTPP and is undertaking preparatory work, inter alia, by updating its CPTPP impact assessment 
study, performing regime gap analysis, and through adjustment and support outreach. Chinese 
Taipei also seeks to participate in the RCEP and  other sub -regional economic integration efforts.  
Question Add. 4:  Please describe the process of how OTN pursues trade negotiations.   WT/TPR/M/377/Add.1  
 
- 101 - 
 
  Answer :  
One of the objectives of the OTN is to promote multilateral and bilateral economic and trade 
negotiations. In doing so, the OTN takes responsibility over the formulation of strategies for trade 
negotiations, the policy coordination and communication required in domestic regulatory 
adjustments, as well as coordinate our negotiating positions. The process also invol ves extensive 
communication with domestic industries, stakeholders, and the public. The OTN also explains 
negotiating guidelines and matters in question to the legislators as necessary, so as to enhance 
transparency and create maximum economic and trade be nefits for our industries.  
2.2 Trade Policy Formulation and Objectives  
Page 31 Para 2.16  
A New Southbound Policy, launched in 2016, aims to foster economic cooperation and integration 
with ASEAN, South Asia, New Zealand, and Australia. The elaborated work plan is aimed at realigning 
the role of Chinese Taipei in Asian development and seeking new opportunities and momentum for 
its own development. It focuses on the following areas: economic and trade cooperation, talent 
exchanges, resource sharing and instit utional links and connectivity. Additionally, resources will be 
used to promote five new flagship projects: regional agricultural development; medical and public 
health cooperation and the development of industrial chains; industrial talent development; 
industrial innovation and cooperation; and the NSP forum and youth exchange programme, and 
three prospective areas (e -commerce, tourism, and infrastructure).  
Question Add. 5:  Please provide further information on the use of "resources " to promote the five 
new flagship projects. Since the implementation of the New Southbound Policy, what has been its 
impact with respect to trade, investment and economic relations with target countries?  
Answer :  
1. The New Southbound Policy 's five flagship projects include talent cultivation, medical 
cooperation, industrial supply chain development, industrial innovation, regional agriculture 
development as well as policy forums and youth exchange platforms. We strive to promote the 
policy through optimizing the resources of variou s ministries and agencies, local governments, 
parliaments and civil society. Apart from expanding the government budget, we encourage 
private sectors to invest their funds and workforce, so as to deploy business in New Southbound 
Policy markets.  
2. Since the promotion of the New Southbound Policy in 2016, our trade with partner countries 
has significantly increased. In 2017, trade with New Southbound Policy countries grew by 
15.5%, while facilitating bilateral investment. In 2017, New Southbound Policy countri es 
invested 270 million U.S. dollar in the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu, with a growth rate of 15.8%. Meanwhile, our investments in those countries during 
this period totaled 3.68 billion U.S. dollar, with a growth rate of  54.51%.  
3. The New Southbound Policy facilitates comprehensive interaction with 18 Asia -Pacific countries. 
Not only does it help form closer ties with our partner countries on trade and investment, but 
also responds to the needs of partner countries ' industr ial policies and development. As 
response, we bridge our industry advantages with business opportunities in the industry chain 
thereby deepening partnerships and creating win -win results. The achievements of this policy 
have gained resounding affirmation f rom our partner countries.  
1.3.2.1  Regional Trade Agreements (RTAs)  
Page 34 Para 2.26  
2.26. As at January 2018, Chinese Taipei had regional trade agreements (RTAs) in force with China, 
El Salvador, Guatemala, Honduras, New Zealand, Nicaragua, Panama, Paraguay, and  Singapore. All 
these RTAs have been notified to the WTO Committee on Regional Trade Agreements (CRTA), with 
the exception of the RTA with China (the Cross -Straits Economic Cooperation Framework Agreement 
(ECFA)), for which an early announcement has been m ade, and the RTA with Paraguay. The main 
features of all of these RTAs together with details of the status of their consideration by the WTO 
CRTA, are detailed in Table A2.2. The authorities indicated that the RTA with China will be notified 
to the WTO onc e the follow -up agreements (see below) have been concluded.  
Page 34 Para 2.27  
Since the previous review, RTAs have entered into force, with Singapore, New Zealand and 
Paraguay.  WT/TPR/M/377/Add.1  
 
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  Question Add. 6:  What has been the impact of the ECFA and the FTAs with Singapo re and New 
Zealand on trade and investments?  
Answer :  
1. Since ANZTEC entered into force, we have eliminated tariffs on 8,787 product lines as of January 
1, 2018, which is a 98.7% level of liberalization. As for New Zealand, it has completely removed 
duties on all our exports. In 2017, we exported U.S.$468 million worth of goods to New Zealand, 
for an increase of 9.6% over the previous year. Comparatively, we imported U.S.$839 million 
worth of goods from New Zealand, for an increase of 3.3% over the previous year. As for 
investment from 2014 to July 2018, we approved 31 New Zealand investment cases, totaling 
around US$3.03 million, with agriculture, forestry, fishery and animal husbandry, wholesale 
and retailing, and information services as the major targets f or investment. As for our 
investment in New Zealand, there are 11 investment cases, amounting to U.S.$1.91million, 
with financial services, electronic manufacturing, and plastic fabrication as the main sectors.  
2. The "Agreement between Singapore and the Sepa rate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu on Economic Partnership " (ASTEP) entered into force on April 19, 2014. Total 
bilateral trade value for the first year after ASTEP 's entry into force reached U.S.$28.18 billion, 
up 0.7% from that of  the previous year. Despite impacts from the plunge in global trade and 
the fact that bilateral trade value fell to U.S.$24.58 billion in 2015 and to U.S.$23.67 billion in 
2016, the value of trade rebounded in 2017 to U.S.$26.34 billion, increasing 11% ove r the 
previous year. As for bilateral investment, from 2014 to 2017, the Investment Commission 
approved 85 investment cases in Singapore, totaling around U.S.$2.8 billion, with the major 
targets for investment being wholesale and retailing, electronic prod ucts and component 
manufacturing, and finance and insurance. Meanwhile, Singapore has invested in 657 cases in 
the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, totaling around US$8.72 
billion.  
3. As for the Economic Cooperation Framework Ag reement (ECFA), the ECFA Early Harvest list for 
goods and services was implemented completely on January 1, 2011.  As of March 2018, the 
total tariff reduction for the early harvest products of both sides amounted to an estimated 
U.S.$5.41 billion and U.S.$ 485 million, respectively. Our trade -in-services (non -financial) 
investments on the Early Harvest list to China amounted U.S.$873 million, while investments 
from China to us amounted to U.S.$417 million from 2011 to June 2018.  
2.3.2.1 Regional Trade Agreem ents (RTAs)  
Page 35 Para 2.32  
2.32. There have been no further developments with respect to agreements on trade in goods, trade 
in services or dispute settlement under the Cross -Straits Economic Cooperation Agreement with 
China since 2014.  
Question Add. 7:  How does Chinese Taipei envision to move forward with this engagement?  
Answer :  
Once our legislators pass the Cross -Strait Agreement Oversight Bill, we will engage with China on 
cross-strait economic cooperation in accordance with the Bill.  
2.3.2.1 Regional Trade Agreements (RTAs)  
Page 37 Para 2.39  
2.39. Chinese Taipei also provides a range of tax incentives for investments in various sectors. These 
tax incentives include: VAT exemptions; tax credits; exemptions from stamp, deed, securities 
transacti on, business, land value and house taxes; five -year tax holidays; tax deferrals for 
acquisition of shares; and tax exemptions on royalty payments.40 In addition, favourable conditions 
exist for investors in free trade zones. These conditions include, inter  alia, exemptions from (i) 
customs duty; (ii) commodity, business, tobacco and liquor taxes; (iii) public health and welfare 
duties on tobacco products; and (iv) trade promotion service fees and harbour service fees.  
Question Add. 8:  Please indicate sector s covered by tax incentives.  
Answer :  
Most of these tax incentives are functional tax incentives, such as R&D tax credit, and are provided 
to industries engaged in qualified activities instead of a specific industry.   WT/TPR/M/377/Add.1  
 
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  17  KINGDOM OF SAUDI ARA BIA (ADDITIONAL)  
2. ECONOMIC AND TRADE ENVIRONMENT  
2.1 Macroeconomic Environment  
In section 2.2. and as shown in Table 2.1, the real GDP growth rate of the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu was 2.86% in 2017, which was significantly higher 
than the previous year (1.41%) indicating the resilience of the econo my.  
Question Add. 1:  Can you explain the main driver of this economic growth in 2017 comparing to 
the previous years? What is the expected growth for 2018?   
Answer :  
1. In 2017, real GDP grew 2.89% (according to the latest data released on August 17, 2018). It 
was mainly driven by strong overseas demand, especially for electronic components and 
machinery.  
2. Following a spurt of growth in the first half -year of 2018, the economic momentum is expected 
to continue in the second half of 2018. However, high oil pric es, trade conflicts, and geopolitical 
tensions will probably add downside risks to the world economy. Consequently, our real GDP is 
generally predicted to grow by 2.69% in 2018.   
2.2 Developments in External Trader . 
In section 2.4, the report mentioned that due to an upswing in the global economy and sluggishness 
during the reference period, both the imports and exports of the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu in 2017 reached double -digit growth. The trade surplus also 
experi enced positive growth during the review period expanding by 16.5% over the previous year.  
Question Add. 2:  How did you succeed to generate this growth in exports side during this 
challenging period of global economy and its demand? Did the Four -Year Nation al Development Plan 
(2013 -2016) have any impact on this growth?   
Answer :  
1. The steady recovery of the global economy and trade were the major driving forces for our high 
export growth in 2017. However, this good performance can also be attributed somewhat to the 
consolidated efforts of the government and the business sector to diversify exports, including:  
(1) Diversifying export products: Accelerating industrial upgrading and transformation to 
expand the variety of export products and improve their quality in order to enhance 
international competitiveness.  
(2) Diversifying export markets: Developing closer ties with emerging markets such as 
countries in South and Southeast Asia, while consolidating our relations with conventional 
partners such as the U.S., European  nations and Japan.  
(3) Engaging in meaningful trade liberalization and reinforcing ongoing efforts to conclude and 
participate in regional economic cooperation agreements: Preparing for accession to the 
Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP); we 
have formulated and implemented improvements to our economic and trade regulatory 
regime, including wide -ranging regulatory adjustments to achieve greater alignment with 
international practices and standards across such areas as d igital communication, patents, 
postal services and pharmaceuticals.  
2. The Four -Year National Development Plan (2013 -2016) provided concrete strategies and 
measures for enhancing export growth momentum, such as:  
(1) Accelerating industrial upgrading and transform ation to increase domestic value -added 
content of exports and job creation opportunities  
(2) Diversifying export products and markets to mitigate the impact of global shocks.  
(3) Expanding economic and trade ties and promoting trade in services to boost economic 
growth.  
2.2 Developments in External Trade r: 
From section 2.6, you mentioned that the major category of products exported by the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu was electrical machinery and equipment, 
accounting for 44.5% of t otal exports.  WT/TPR/G/377 – WTO Government Report  WT/TPR/M/377/Add.1  
 
- 104 - 
 
  Question Add. 3:  Does the government have specific support (treatment) for this industry? How 
does the government involve in this industry compared to private sector?   
Answer :  
1. We have developed the manufacturing industry for electronic and electric machinery products 
via creating diverse applications, developing manufacturing technology and cultivating advanced 
technology  talents while providing a fair environment for industrial development to elevate our 
international competitiveness. We ar e committed to the solid supply chain relationships we have 
with Japan, the European Union, the United States and China. Additionally, we are one of the 
critical and active members of the Information Technology Agreement (ITA). Our high degree of 
trade lib eralization resulted in the expansion of intra -industry trade and our high export 
concentration in electronic and electrical machinery and equipment.  
2. The main role of the government is to build a sound investment environment for the industry. 
We also ende avour to help enterprises solve operational difficulties so they can grow based on 
a level playing field.  
2.3 Development of Foreign Investment  
In section 2.8, you reported that the outbound foreign direct investment (FDI) from the Separate 
Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu generally showed growth trends on a year -
by-year basis from 2014 to 2017. On average, outbound and inbound investment during 2014 -2017 
amounted to US $20.5billion and US$7.6billion.  
Question N°4:  What kind of efforts the government making to switch the trend between the 
inbound and the outbound investments? Is there any monitoring mechanism for impacts of FDI on 
different sectors of economy and the local content and knowhow? If yes, can you provide us a short 
descripti on for it?  
Answer :  
1. We are currently focusing on enhancing our economy 's investment environment and intensifying 
industrial innovation and transformation. We intend to implement related policies so as to 
provide a new economic growth model and increase our competitiveness. These efforts are as 
follows:  
(1) Practical improvements within the "five shortages " issue: We have identified shortages of 
land, skilled talent, labor, water, and electricity as issues affecting local investment. In 
response, we have crea ted short -, mid -, and long -term strategies to alleviate these 
shortages. As part of this, we occasionally convene inter -ministerial meetings on boosting 
investment to accelerate the removal of barriers to investment. In addition, we are enhancing 
the struc ture and functions of the InvesTaiwan Service Center, thereby further building an 
environment that encourages enterprises to invest in the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu.  
(2) Active implementation of the Forward -looking Infrastr ucture Development Program: 
Construction and improvement of infrastructures in key areas are being actively implemented, 
and this will help drive private investment and create a strong foundation for our future 
development.  
(3) Intensifying the "5+2 Industrial  Innovation Program ": The foundation for this program has 
been laid, and we are intensifying its promotion in order to facilitate industrial diversification 
and economic development. The key sectors in this program include smart machinery, green 
energy tec hnology, the Asia Silicon Valley project, the biopharmaceutical industry, the 
defense industry, new agriculture and the circular economy  
2. Foreign investors are required to apply for approvals for investments in advance.  
3. Generally speaking, most cases are ap proved as long as the required documents are complete, 
except for ones involving industries restricted from foreign investments. These cases require 
competent authorities to examine the investment projects according to the relevant laws and 
regulations.  
4. According to Article 7 of the Statute for Investment by Foreign Nationals, the investor is 
prohibited from investing in the following industries:  
(1) Those which may negatively affect essential security, public order, good customs and 
practices, or public health ; and  
(2) Those which are prohibited by the law.  
5. To further enhance the transparency and predictability of our investment regime, the Investment 
Commission of the MOEA is undertaking draft amendments for the Statute for Investment by WT/TPR/M/377/Add.1  
 
- 105 - 
 
  Foreign Nationals. These d raft amendments will go through the legislative process after a review 
of public opinion has been completed.  
6. In addition, investments conducted by foreign investors are regulated by the Negative list for 
Investment by Foreign Nationals - including Prohibit ed Industries and Restricted Industries. The 
revised Negative List for Investment by Foreign Nationals entered into effect on February 8, 
2018. The Investment Commission will regularly review this Negative List.  
2.3 Development of Foreign Investment  
Section 2.10 shows that the leading sources of inbound investments were the Netherlands, the 
British Overseas Territories in the Caribbean, the United Kingdom, Japan, and American Samoa, 
accounting for 74.12% of the total inbound FDI.  
Question Add. 5:  Is there any specific agreement or privilege for these mentioned countries to 
invest? Is there any promotion for specific sector than others? Can you provide us with breakdown 
of FDI by countries?  
Answer :  
1. The Separate Customs Territory of Taiwan, Penghu, Kin men and Matsu provides a long -term, 
stable, friendly and transparent investment environment that is attractive for foreign 
investment. We provide equal and fair treatment to investors from all countries and have been 
active in signing bilateral investment agreements with other countries and agreements designed 
to avoid double taxation. For further information on these topics, please refer to the following 
websites:  
https://www.dois.moea.gov.t w/en/Home/relation1_1  (Bilateral Investment Agreement ) 
https://www.dois.moea.gov.tw/en/Home/relation1_2  (Agreements on avoiding double taxation)  
2. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu does not provide any 
investment incentives for specific industries or sectors.  
Regarding a breakdown of the FDI, please refer to the attachment.  
3. Development of Trade and Investment Policies  
3.2 Macroeconomic Policy  
In section 3. 2, it was mentioned that to foster domestic economic development, priority has been 
given to meeting the infrastructure needs over the next three decades. To this end, the "Forward -
looking Infrastructure Development Program " was formally launched in 2017 t o provide a framework 
for future infrastructure development.  
Question Add. 6:  Can you provide us with more details about this development program? How is 
the government planning to finance all these different projects? Will the private sector and 
internati onal investors be part of it and if yes, in which sector?  
Answer :  
1. In an ongoing effort to build infrastructure for domestic economic development over the next 30 
years, the government is actively making a comprehensive plan to expand infrastructure 
investment. The Forward -looking Infrastructure Development Program includes funding for 8 
categories: railway projects to provide safe and fast transportation, water environments to build 
resilience against climate change, green energy infrastructure to fo ster environmental 
sustainability, digital infrastructure to create a smart and connected economy, urban and rural 
projects to balance regional development, child care facilities to reverse declining birth rate 
trends, infrastructure to ensure food safety,  and human resources infrastructure to nurture 
talent and boost employment.  
2. Under the special act governing forward -looking infrastructure projects, the program will be 
funded by a special budget of NT$420 billion (US$13.9 billion) over four years (Septemb er 2017 
- August 2021).  
3. Development of Trade and Investment Policies  
3.2 Trade and Investment Policy  
Section 3.5 mentioned that the government continues to strengthen economic and trade relations 
with important trading partners to enhance linkages with various supply chains and to enhance 
technology cooperation. Furthermore, it launched the New Southbound Policy to provide an 
overarching framework for the development of a new and comprehensive relationship with additional WT/TPR/M/377/Add.1  
 
- 106 - 
 
  partners in the Asia -Pacific reg ion, and to redefine the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu 's critical role in this region for the 21st century.  
Question Add. 7:  Can you provide us more details about the New Southbound Policy? What 
criterions you have to frame your new partnership?  
Answer : 
1. The New Southbound Policy is an important economic and trade strategy that responds to the 
changing global economic situation  by redefining our position in Asia and seeking a new direction 
to dynamically drive economic development. This policy has changed our engagement priorities 
with Southeast Asian countries by shifting from trade and investment of the past to 
comprehensive b ilateral exchanges. We are promoting this policy by further extending its 
domestic market demand and making full use of its soft power, while coordinating efforts to 
optimize the resources and energies of various ministries and agencies, local governments,  and 
civil society to formulate work plans that focus on the following four areas: 1) economic and 
trade cooperation, 2) talent exchanges, 3) resource sharing, and 4) regional connectivity. By 
developing and promoting five flagship projects and three highl y potential sectors, we expect to 
create a new mode for cooperation that seeks mutual benefits and win -win synergy, while 
gradually building mutual trust and a sense of community involving  the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu and the countries of ASEAN, South Asia, New 
Zealand, and Australia.  
(1) The five flagship project are: 1) talent cultivation, 2) medical cooperation and industrial 
supply chains, 3) innovative industries, 4) regional agriculture, and 5) policy forums and 
youth  exchange platforms.  
(2) The three highly potential sectors are: e -commerce, infrastructure, and tourism.  
2. As we are geographically closely positioned to Southeast Asia, frequent exchanges occur 
between our peoples. More than 300,000 people from ASEAN countries  reside in the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu. Furthermore, ASEAN countries are a 
main destination for our outbound investments, with a cumulative investment value reaching 
nearly US$ 100 billion. This is evident of our clos e bilateral relations.  The International Monetary 
Fund has forecasted the average economic growth rate for countries in ASEAN and South Asia 
to reach 5.4% in 2018, which surpasses the average global growth rate. Furthermore, in 
consideration of their young er populations, emerging middle classes, the potential needs of their 
domestic markets, as well as recent changes internationally, we have targeted 18 countries in 
ASEAN and South Asia to alleviate the risks of over -concentration in a few markets. We have 
conducted dynamic interaction and responded to the needs of partner countries ' industrial 
policies and development by bridging our industrial advantages with business opportunities via 
industrial chains and deepened partnerships to create win -win results.  
3. Development of Trade and Investment Policies  
3.7 Regulatory Reform and Liberalization  
In section 3.19, you discussed different policy reforms. One of them is the tax reform. In order to 
establish a competitive, fair, and reasonable income tax system tha t complies with international 
taxation trends, the amendments to the Income Tax Act were promulgated on 7 February 2018.  
Question Add. 8:  What is the expected impact of income tax deduction on government fiscal 
revenues and how does it affect the professionals from abroad to stay in the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu ?  
Answer :  
According to the income tax ref orm which was put into practice in 2018, the personal standard 
deduction for individual income tax was raised from NT$90,000 to NT$120,000 (NT$240,000 for a 
taxpayer filing with his or her spouse); the special deduction for wage income and the special 
deduction for the disabled were raised from NT$128,000 to NT$200,000, respectively; and the 
special deduction for pre -school children was raised from NT$25,000 to NT$120,000 per child per 
year. These increases in deductions range from 33% to 380% of previous l evels. For professionals 
from abroad who reside in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
for 183 days or more in a taxable year can also apply for the previous four deductions. With these 
amendments to the income tax system, we  can relieve the tax burden on salary earners, middle -
and-low income earners, and taxpayers who have children. Thus, we expect that the tax reform will 
increase households ' disposable income, directly stimulate consumption, indirectly encourage 
investment,  and boost economic development. This will also have a positive effect on tax revenue.   
  WT/TPR/M/377/Add.1  
 
- 107 - Kingdom of Saudi Arabia Q5 attachment  
STATISTICS ON APPROVED OVERSEAS CHINESE AND FOREIGN INVESTMENT BY AREA  
(unit: US$1,000)  
Year  Asia Area  North American Area  Europen Area  
Sub-total  Japan  Sub-total  United States of 
America  Sub-total  United Kingdom  
Case  Amount  Case  Amount  Case  Amount  Case  Amount  Case  Amount  Case  Amount  
1952 0  0  0  0  0  0  0  0  0  0  0  0  
1953 1  160  1  160  1  1.881  1  1.881  0  0  0  0  
1954 1  14  1  14  3  2.028  3  2.028  0  0  0  0  
1955 1  141  1  141  2  4.423  2  4.423  0  0  0  0  
1956 3  1.323  3  1.323  3  1.143  3  1.143  0  0  0  0  
1957 7  887  7  887  1  11  1  11  0  0  0  0  
1958 5  1.385  5  1.385  0  0  0  0  0  0  0  0  
1959 1  460  1  460  1  100  1  100  0  0  0  0  
1960 3  503  3  503  5  14.029  5  14.029  0  0  0  0  
1961 5  1.387  5  1.387  1  4.288  1  4.288  0  0  0  0  
1962 17  2.767  17  2.767  9  808  9  808  0  0  0  0  
1963 11  2.876  11  2.876  10  9.028  10  9.028  1  527  0  0  
1964 6  2.240  6  2.240  7  10.196  7  10.196  0  0  0  0  
1965 16  2.385  16  2.385  17  31.104  17  31.104  1  43  1  43  
1966 42  3.210  42  3.210  16  17.744  16  17.744  2  746  1  19  
1967 83  16.553  83  16.553  20  15.935  20  15.935  2  218  2  218  
1968 116  18.079  116  18.079  22  37.834  22  37.834  1  1.519  1  1.519  
1969 88  19.032  88  19.032  37  28.816  37  28.816  2  20.239  1  72  
1970 61  29.774  61  29.774  19  68.820  19  68.820  3  1.881  2  900  
1971 22  13.112  22  13.112  24  44.323  24  44.323  1  250  1  250  
1972 34  9.244  34  9.244  25  38.368  25  38.368  2  4.308  1  100  
1973 118  48.953  118  48.953  38  68.259  38  68.259  5  11.875  3  1.084  
1974 59  41.888  59  41.888  28  78.768  28  78.768  0  13.531  0  0  
1975 28  26.203  28  26.203  15  42.264  15  42.264  2  4.139  0  258  
1976 32  32.392  32  32.392  16  35.465  16  35.465  0  21.998  0  45  
1977 25  30.282  25  30.282  23  61.536  23  61.536  0  24.043  0  0  
1978 52  54.869  52  54.869  22  72.574  22  72.574  0  3.378  0  865  
1979 49  55.468  49  55.468  26  81.860  26  81.860  0  13.327  0  889  
1980 38  89.142  38  89.142  23  189.854  23  189.854  4  9.121  2  4.665  
1981 29  66.038  29  66.038  31  206.127  31  206.127  4  6.902  3  2.736  
1982 25  152.367  25  152.367  52  91.998  52  91.998  4  14.725  0  360  
1983 37  197.541  37  197.541  40  99.268  40  99.268  4  7.289  3  983  
1984 32  115.577  32  115.577  51  241.250  51  241.250  5  56.823  2  37.692  
1985 35  146.124  35  146.124  53  340.641  53  340.641  3  87.130  3  84.039  
1986 91  255.919  91  255.919  66  146.937  66  146.937  15  119.984  7  59.801  
1987 213  432.238  213  432.238  93  446.505  93  446.505  10  47.895  5  18.965  
1988 218  444.937  218  444.937  85  160.838  85  160.838  21  73.240  12  36.181   
  WT/TPR/M/377/Add.1  
 
- 108 - Year  Asia Area  North American Area  Europen Area  
Sub-total  Japan  Sub-total  United States of 
America  Sub-total  United Kingdom  
Case  Amount  Case  Amount  Case  Amount  Case  Amount  Case  Amount  Case  Amount  
1989 237  667.552  237  667.552  73  380.942  73  380.942  20  229.347  10  70.094  
1990 184  838.947  184  838.947  77  581.301  77  581.301  16  139.270  5  89.390  
1991 142  535.249  142  535.249  68  612.078  68  612.078  13  98.534  6  43.682  
1992 120  421.176  120  421.176  85  220.350  85  220.350  11  80.140  3  11.495  
1993 89  277.974  89  277.974  67  235.099  67  235.099  12  144.407  5  58.655  
1994 117  395.789  117  395.789  66  326.839  66  326.839  18  110.188  8  30.318  
1995 158  572.818  158  572.818  75  1.303.882  75  1.303.882  13  270.438  6  195.027  
1996 171  545.776  171  545.776  68  489.082  68  489.082  18  64.522  12  35.974  
1997 169  854.103  169  854.103  107  491.456  107  491.456  31  194.496  12  90.631  
1998 234  539.677  234  539.677  257  952.027  257  952.027  44  200.464  26  74.971  
1999 231  514.127  231  514.127  218  1.145.345  218  1.145.345  51  336.102  35  143.361  
2000 317  732.869  317  732.869  213  1.328.633  213  1.328.633  57  994.565  37  683.600  
2001 242  684.857  242  684.857  158  939.820  158  939.820  48  770.956  32  245.393  
2002 213  608.674  213  608.674  159  600.359  159  600.359  55  495.764  39  189.083  
2003 203  726.072  203  726.072  161  686.991  161  686.991  37  308.575  18  33.757  
2004 228  826.929  228  826.929  161  361.284  161  361.284  46  521.874  28  192.992  
2005 214  724.399  214  724.399  138  803.754  138  803.754  53  547.016  32  140.636  
2006 313  1.591.093  313  1.591.093  275  883.443  275  883.443  104  6.923.185  62  1.505.991  
2007 358  999.633  358  999.633  308  3.147.520  308  3.147.520  110  6.964.977  52  651.386  
2008 300  439.667  300  439.667  283  2.856.815  283  2.856.815  72  2.078.151  38  458.066  
2009 266  238.961  266  238.961  281  264.302  281  264.302  57  1.876.674  34  885.200  
2010 340  400.494  340  400.494  235  319.243  235  319.243  58  1.074.094  36  647.098  
2011 441  444.867  441  444.867  302  737.829  302  737.829  59  618.801  43  89.826  
2012 619  414.330  619  414.330  294  404.614  294  404.614  79  1.262.911  45  63.477  
2013 618  408.684  618  408.684  299  582.719  299  582.719  94  298.658  59  61.758  
2014 488  548.763  488  548.763  273  147.978  273  147.978  88  766.054  58  268.269  
2015 471  453.397  471  453.397  265  131.910  265  131.910  106  730.069  82  422.651  
2016 458  346.875  458  346.875  247  141.654  247  141.654  95  7.115.848  59  407.625  
2017 418  640.642  418  640.642  276  214.759  276  214.759  86  3.025.205  61  1.129.812  
2018-01-07 286  1.016.834  286  1.016.834  150  142.759  150  142.759  54  2.514.442  35  82.114  
Total  10.249  20.726.701  10.249  20.726.701  6.524  24.129.808  6.524  24.129.808  1.697  41.300.857  1.028  9.254.016  
STATISTICS ON APPROVED OVERSEAS CHINESE AND FOREIGN INVESTMENT BY AREA (CONT'D)  
(unit: US$1,000)  
Area  Europen Area  Middle America  Oceania  
Total  Netherlands  Sub-total  British Virgin Islands  Sub-total  Independent State of 
Samoa  
Year Case  Amount  Case  Amount  Case  Amount  Case  Amount  Case  Amount  Case  Amount  
1952 0  0  0  0  0  0  0  0  0  0  0  0  
1953 0  0  0  0  0  0  0  0  0  0  2  2.041  
1954 0  0  0  0  0  0  0  0  0  0  4  2.042   
  WT/TPR/M/377/Add.1  
 
- 109 - Area  Europen Area  Middle America  Oceania  
Total  Netherlands  Sub-total  British Virgin Islands  Sub-total  Independent State of 
Samoa  
Year Case  Amount  Case  Amount  Case  Amount  Case  Amount  Case  Amount  Case  Amount  
1955 0  0  0  0  0  0  0  0  0  0  3  4.564  
1956 0  0  0  0  0  0  0  0  0  0  6  2.466  
1957 0  0  0  0  0  0  0  0  0  0  8  898  
1958 0  0  0  0  0  0  0  0  0  0  5  1.385  
1959 0  0  0  0  0  0  0  0  0  0  2  560  
1960 0  0  0  0  0  0  0  0  0  0  8  14.532  
1961 0  0  0  0  0  0  0  0  0  0  6  5.675  
1962 0  0  0  0  0  0  0  0  0  0  26  3.575  
1963 1  527  0  0  0  0  0  0  0  0  22  12.431  
1964 0  0  0  0  0  0  0  0  0  0  13  12.436  
1965 0  0  0  0  0  0  0  0  0  0  34  33.532  
1966 1  727  0  0  0  0  0  0  0  0  60  21.700  
1967 0  0  0  0  0  0  0  0  0  0  105  32.706  
1968 0  0  0  0  0  0  0  0  0  0  139  57.432  
1969 1  20.167  0  0  0  0  0  0  0  0  127  68.087  
1970 1  981  0  0  0  0  0  0  0  0  83  100.475  
1971 0  0  0  0  0  0  0  0  0  0  47  57.685  
1972 1  4.208  0  0  0  0  0  0  0  0  61  51.920  
1973 2  10.791  0  0  0  0  0  0  0  0  161  129.087  
1974 0  13.531  0  0  0  0  0  0  0  0  87  134.187  
1975 2  3.881  0  0  0  0  0  0  0  0  45  72.606  
1976 0  21.953  0  0  0  0  0  0  0  0  48  89.855  
1977 0  24.043  0  0  0  0  0  0  0  0  48  115.861  
1978 0  2.513  0  0  0  0  0  0  0  0  74  130.821  
1979 0  12.438  0  0  0  0  0  0  0  0  75  150.655  
1980 2  4.456  0  0  0  0  0  0  0  0  65  288.117  
1981 1  4.166  0  0  0  0  0  0  0  0  64  279.067  
1982 4  14.365  0  0  0  0  0  0  0  0  81  259.090  
1983 1  6.306  0  0  0  0  0  0  0  0  81  304.098  
1984 3  19.131  2  1.269  2  1.269  0  0  0  0  90  414.919  
1985 0  3.091  0  0  0  0  0  0  0  0  91  573.895  
1986 8  60.183  0  4.804  0  4.804  0  0  0  0  172  527.644  
1987 5  28.930  2  20.010  2  20.010  0  0  0  0  318  946.648  
1988 9  37.059  9  106.862  9  106.862  0  0  0  0  333  785.877  
1989 10  159.253  25  207.357  25  207.357  0  0  0  0  355  1.485.198  
1990 11  49.880  17  65.670  17  65.670  0  0  0  0  294  1.625.188  
1991 7  54.852  12  60.314  12  60.314  0  0  0  0  235  1.306.175  
1992 8  68.645  13  36.706  13  36.706  0  0  0  0  229  758.372  
1993 7  85.752  10  38.316  10  38.316  0  0  0  0  178  695.796  
1994 10  79.870  22  75.636  22  75.636  1  1.864  1  1.864  224  910.316  
1995 7  75.411  28  151.062  28  151.062  0  5.676  0  5.676  274  2.303.876  
1996 6  28.548  51  417.442  51  417.442  0  2.909  0  2.909  308  1.519.731   
  WT/TPR/M/377/Add.1  
 
- 110 - Area  Europen Area  Middle America  Oceania  
Total  Netherlands  Sub-total  British Virgin Islands  Sub-total  Independent State of 
Samoa  
Year Case  Amount  Case  Amount  Case  Amount  Case  Amount  Case  Amount  Case  Amount  
1997 19  103.865  106  659.243  106  659.243  1  21.324  1  21.324  414  2.220.622  
1998 18  125.493  189  711.465  189  711.465  6  1.772  6  1.772  730  2.405.405  
1999 16  192.741  200  1.215.765  200  1.215.765  4  2.452  4  2.452  704  3.213.791  
2000 20  310.965  244  1.560.352  244  1.560.352  8  7.580  8  7.580  839  4.624.000  
2001 16  525.563  184  841.948  184  841.948  16  50.936  16  50.936  648  3.288.516  
2002 16  306.680  199  643.309  199  643.309  45  92.451  45  92.451  671  2.440.557  
2003 19  274.818  209  663.359  209  663.359  49  108.915  49  108.915  659  2.493.912  
2004 18  328.882  166  673.914  166  673.914  60  143.379  60  143.379  661  2.527.381  
2005 21  406.381  163  862.739  163  862.739  86  206.978  86  206.978  654  3.144.886  
2006 42  5.417.195  277  999.910  277  999.910  105  212.991  105  212.991  1.074  10.610.621  
2007 58  6.313.591  363  1.218.050  363  1.218.050  187  357.378  187  357.378  1.326  12.687.558  
2008 34  1.620.085  227  686.587  227  686.587  117  348.676  117  348.676  999  6.409.896  
2009 23  991.474  181  674.319  181  674.319  90  228.195  90  228.195  875  3.282.451  
2010 22  426.996  181  749.531  181  749.531  137  242.548  137  242.548  951  2.785.910  
2011 16  528.975  202  790.717  202  790.717  146  259.592  146  259.592  1.150  2.851.807  
2012 34  1.199.435  297  1.043.110  297  1.043.110  193  377.453  193  377.453  1.482  3.502.418  
2013 35  236.900  462  1.140.906  462  1.140.906  229  380.283  229  380.283  1.702  2.811.251  
2014 30  497.785  520  1.190.033  520  1.190.033  312  507.464  312  507.464  1.681  3.160.291  
2015 24  307.417  475  1.070.246  475  1.070.246  322  422.171  322  422.171  1.639  2.807.792  
2016 36  6.708.222  317  1.182.459  317  1.182.459  218  316.632  218  316.632  1.335  9.103.468  
2017 25  1.895.393  209  926.879  209  926.879  257  386.927  257  386.927  1.246  5.194.413  
201801 -07 19  2.432.328  92  449.608  92  449.608  122  172.399  122  172.399  704  4.296.043  
Total   669  32.046.841  5.654  21.139.897  5.654  21.139.897  2.711  4.858.946  2.711  4.858.946  26.835  112.156.209  
 
 WT/TPR/M/377/Add.1  
 
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  18  CHINA  (ADDITIONAL)  
SUMMARY, para. 12  
As from 2017, overseas companies undertaking online sales of services to local consumers have 
been required to register as businesses, obtain a tax identity number and file VAT in Chinese Taipei.  
Questions Add. 1:  Is the practice of Chinese Taipei requiring overseas companies to register VAT 
similar to a simplified registration method of the EU's VAT Mini One Stop Shop, or the normal VAT 
registration method with the same standards as local taxpayers?  
Answer :  
In order to control tax sources, we created a VAT system for foreign companies selling cross -border 
electronic services. As of May 1, 2017, companies that sell cross-border electronic services to 
individual domestic purchasers shall register for business and file VAT in the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu. Considering that these companies don 't have fixed 
places of business in the S eparate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, an 
online taxation registeration platform was built to simplify the registering procedure for these 
companies and decrease their compliance costs.  
Questions Add. 2:  If the same registration met hod is applied as with local taxpayers, overseas 
companies undertaking online sales of services to local consumers must register VAT in Chinese 
Taipei and file tax declaration on time. It will greatly increase the company's tax compliance costs, 
and the po licy implementation effect may also be far from satisfactory. How does Chinese Taipei 
view this issue and how to ensure that overseas companies comply with this system?  
Answer :  
Please refer to our response to Questions Add. 1  
Page 21, para. 1.14  
In Januar y 2018, Chinese Taipei enacted a tax reform aimed at improving tax collection, distributing 
wealth more equitably and stemming the flow of highly skilled labour overseas.  
Questions Add. 3:  We would like to know more about this tax reform, such as the types  of taxes 
involved, changes in tax rates, adjustments to tax incentives, etc., and whether this tax system 
reform has an impact on investors outside Chinese Taipei.  
Answer :  
The amendments to the Income Tax Act were made on February 7, 2018. The main contents of the 
income tax reform are as follows:  
1. Relieve the tax burden on salary earners, middle and low income earners, and taxpayers with 
children.  
The amount of four deduction items of individual income tax has been raised: the standard 
deduction, the  special deduction for wage income, the special deduction for the disabled, and 
the special deduction for pre -school children.  
2. The highest marginal tax rate for the individual income tax was reduced from 45% to 40% to 
encourage professionals to stay in the  Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu, so as to enhance the willingness to invest, and improve international 
competitiveness.  
3. Enhance the willingness to invest and create employment opportunities.  
(1) We have adopted a new dividend ta x regime by abolishing the partial imputation tax system 
on dividends. As a result, by combining the income tax of profit -seeking enterprises with the 
individual income tax on dividends, the top aggregate tax burden (including income tax of 
profit -seeking enterprises and individuals) has been reduced from 49.68% to 42.4% (= 20% 
+ 80% × 28%).  
(2) The tax rate of the income tax of profit -seeking enterprises has been raised from 17% to 
20%, which is lower than the OECD average tax rate of 23.5%. It still allows en terprises to 
operate competitively around the world while helping the government maintain a sound fiscal 
position.  WT/TPR/S/377 – WTO Secretariat Report  WT/TPR/M/377/Add.1  
 
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  (3) In addition to the above adjustments, we have reduced the surtax rate on undistributed 
earnings of companies from 10% to 5%. Reducing the ag gregate tax burden on an 
enterprise 's retained earnings will allow some relief of the tax burden, promote enterprises 
to accumulate capital to finance the need of innovation and upgrading in the future.  
(4) We raised the withholding tax rate on foreign dividen ds from 20% to 21%, which is lower 
than that of other countries such as 22% in South Korea, 26.375% in Germany, and 30% 
in the United States. If the foreign -invested shareholder 's country of residence has a tax 
agreement with us, the tax burden will not be  affected. This will reduce the difference of the 
tax burden between domestic and foreign investors.  
4. Simplify the tax system in line with international trends  
By abolishing the partial imputation tax system on dividends, we have deleted the provisions 
regarding the imputation credit account that profit -seeking enterprises shall maintain, calculate 
and record, as well as related penalties.  
Through the amendments to the income tax system, we expect that the tax reform will increase 
disposable income, directly  stimulate consumption, indirectly encourage investment, thereby driving 
profit growth for enterprises. Also, we assist enterprises to transform and attract professionals to 
stay in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsuby estab lishing a 
competitive investment tax environment. This will bring positive effects on tax revenue.   
Page 43, para. 3.7  
The usage rate of pre -entry declaration rose from 10% of total general declarations in 2011 to 20% 
in 2014, 17.6% in 2015, and 18.4% in 2 016. 
Questions Add. 4:  What are the requirements of the customs for pre -entry declaration? Why did 
the usage rate of pre -entry declaration decrease after 2014?  
Answer :  
1. For information on the requirements of the customs for pre -entry declaration, please see the 
Regulations Governing the pre -entry Customs Declaration of Import/Export Goods. 
(https://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0350012 ) 
2. The usage rate of pre -entry declaration has not dramatically fluctuated, staying at around 18% 
over recent years.  
Page  43, para. 3.8  
3.8. Since August 2013, Customs has operated the Customs -Port-Trade (CPT) Single Window, 
which allows documentation related to customs procedures including customs declarations, trade 
licensing and SPS  permits, to be  submitted  and processed  electronically.  
Questions Add. 5:  What is the proportion of customs declarati ons through Single Window? In 
addition to customs declaration and application for relevant licenses, what functions are there or will 
be available in the Single Window system? Is there a corresponding plan and timetable?  
Answer :  
1. The percentage of customs declarations lodged through the CPT Single Window is about 99.99%.  
2. For traders, there are also several useful services available on the CPT Single Window, such as 
electronic -payment for duties or fees, online information inquiries on the status of clearanc e, 
and application for duty and tax refund. Moreover, the CPT Single Window serves as an 
information sharing platform for participating government agencies to conduct data exchange. 
There is no plan to add more functions to the CPT Single Window at present . 
Page  44, para. 3.10  
Chinese Taipei conducted time release studies (TRS) in line with the World Customs Organization's 
guidelines in 2011 and 2014. Since January 2017, Customs has operated a TRS online system 
allowing online public consultation of relevan t data on the "broad -sense release time" (time required 
from arrival to release of containerized goods) gathered after 2016.  
Questions Add. 6:  Is the TRS online system an independent investigation system or an auxiliary 
one? Please introduce how the TRS on line system works. At present, what is the time spent on each 
link of the goods from arrival to release?  WT/TPR/M/377/Add.1  
 
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  Answer :  
1. Through the CPT Single Window, our Customs is able to track the movement and transaction 
status of containerized goods from their arrival to r elease, by integrating information acquired 
from various parties involved in the whole import process such as port authorities and container 
terminals, making this an independent study system. The Single Window allows us to measure 
release time on a more a ccurate and real -time basis, compared to the questionnaire surveys 
adopted by the TRS.  
2. As of January 2017, information on the "broad -sense release time " (time required from arrival 
to release) of containerized goods has been made available to the public. T he time spent on 
each step from arrival to release can be accessed via: 
http://portal.sw.nat.gov.tw/PPL/RedirectorNonLoginAction?appId=APGQ&privilegeId=GQ01%3
FclassType%3D12 .  
Page  45, para. 3.14  
In 2017, Customs deployed advanced infrastructure with cloud computing services and also re -
designed its official website by introdu cing responsive web design (RWD) technology allowing for 
easy access with various mobile devices anytime and anywhere.  
Questions Add. 7:  How is cloud computing technology applied at the Customs? What other 
advanced technologies has the Customs used to impr ove service levels?  
Answer :  
To build reliable and efficient IT infrastructure, Customs introduced cloud computing (i.e. 
Infrastructure as a Service, IaaS) to establish the Customs cloud. It allows Customs to develop the 
innovative application in a flexible manner.  
For example, Customs is working on big data analysis in the aforementioned cloud to identify 
potential high -risk targets.  
Page 105, para. 4.29  
Table 4.8 Guaranteed purchases of rice  
Questions Add. 8:  Please provide the quantity of guaranteed purchases of rice for the past 3 years 
and the proportion of total production.  
Answer :  
Unit: 1000 metric tonnes, %  
year Quantity of guaranteed purchases  Proportion of total production  
2015 363 23% 
2016 398 25% 
2017 467 27% 
II. Other Questions  
Questions Add. 9:  According to relevant provisions of Article 9 of the Measures for the 
Administration of Financial Business Transactions and Investment Licensing Between Chinese Taipei 
and Mainland China (Jin Guan Yin Fa Zi No. 10000310960), mainland banks can only establ ish a 
branch or invest in a local financial institution in Chinese Taipei. However, there are no institutional 
restrictions on local banks and foreign banks. Since the opening of offshore business in Chinese 
Taipei must be undertaken through the establishm ent of an international financial business branch, 
due to the above -mentioned regulatory restrictions, it is currently not possible for mainland banks 
to set up a second institution for offshore business in Chinese Taipei. It is not conducive for mainland 
banks to play the role of promoting cross -strait economic and trade exchanges. Please give 
explanation on this regulation.  
Answer :  
Due to excessive competition in our financial market, when domestic banks or foreign banks invest 
in domestic banks, the nu mber of entities making equity investments should be one in principle, 
except for merger models that help accelerate our financial consolidation. This would avoid negative 
effects such as conflicts of interest or business competition. This principle does n ot only apply to 
banks from China.  WT/TPR/M/377/Add.1  
 
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  Questions Add. 10:  According to the relevant provisions of Article 69 of the Measures for the 
Administration of Financial Business Transactions and Investment Licensing Between Chinese Taipei 
and Mainland China, for the branches of mainland banks participating in interbank lending of the 
total amount of net interbank lending shall not exceed twice the working capital. However, there is 
no restriction of the total lending amount for local and foreign banks. Affected by this, mainland 
banks are constrained by local financing, and it is difficult to deepen their business links with the 
local market. Please give explanation on this regulation.  
Answer :  
1. The provisions of Article 69, paragraph 1 (4) of the said Regulations are based on the 
consideration of prudential supervision, to effectively control and keep financial leverage risks 
to stay within the scope of the local branch of China 's banks ' working capital and maintain the 
stability of NTD interbank call loan market. In addition, there are similar provisions in Article 25 
of China's "Interbank Lending Management Regulations".  
2. As the FSC and its counterparts in China have established a supervisory cooperation mechanism, 
we recommend for this issue to be addressed through consultation between the two parties.   
Questions Add. 11 : According to bank feedback, the local credit reporting system is yet open to 
mainland banks. The Chinese Taipei regulatory authorities have no clear restrictions on the entry of 
mainland banks into the credit reporting system. However, the local credit r eporting center currently 
requires that mainland banks not submit relevant application materials. Affected by this, mainland 
banks cannot timely and comprehensively understand the credit information of local customers, 
which affects credit granting for loc al customers. Please give explanation on this regulation.  
Answer :  
The Joint Credit Information Center (JCIC) adopts a membership system, and relevant information 
(e.g. credit reports) is subject to joint management by member institutions. In accordance w ith the 
relevant regulations of the members of JCIC, if a bank wishes to join the JCIC as a member, it should 
provide relevant documents to the JCIC in its application.  
We have noticed that Chinese Taipei has made a commitment to land -based cross -border co urier 
services in its WTO accession commitments: as part of cross -border cargo handled by air express 
companies, land services can be provided to all recipients, excepts for those currently reserved by 
the post department of Chinese Taipei required by the law. 
Questions Add. 12:  What are the services currently reserved by  the post department of 
Chinese  Taipei?  
Answer :  
1. The government instructed the Chunghwa Post Co. Ltd. to be in charge of universal postal 
services; therefore, at present, pursuant to Artic le 6 of the Postal Act, the Chunghwa Post Co. 
Ltd. holds exclusive rights in the delivery of letters, postcards or other correspondence.  
2. The draft proposal of the amendments to the Postal Act, which rules out the two -way domestic 
and international trans -border documents from the exclusive rights, is currently going through 
the legislative process. After the revision of the Act, the Chunghwa Post Co. Ltd. will continue to 
hold exclusive rights on postcards, aerogrammes, items under a certain weight (500g) an d items 
with a unit price under 13 times basic postage.  
Questions Add. 13:  How to understand land -based cross -border courier service? Can foreign 
express delivery companies not provide courier services between two points in Chinese Taipei?  
Answer : 
1. The Sep arate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is surrounded by sea. 
Our railways and highways do not connect to other economies. Therefore, there is not a land -
based cross -border express service industry.  
2. Foreign express delivery companies that have been approved to operate transportation 
businesses can provide courier services between two points in the Separate Customs Territory 
of Taiwan, Penghu, Kinmen and Matsu.  
3. Foreign express delivery companies without the license of automobile cargo t ransportation within 
designated route(s) cannot provide courier services in the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu after delivering goods to our airports or harbors, but they can WT/TPR/M/377/Add.1  
 
- 115 - 
 
  cooperate with our automobile cargo transportatio n enterprises that operate within designated 
route(s) to provide courier services between two points in the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu.  
Questions Add. 14:  What is the current development status of courier services? Is there a need to 
fulfill the licensing approval process or other requirements for setting up a foreign express delivery 
company?  
Answer :  
As courier services may involve several sectors such as  air freight forwarder (the Civil Aviation Act), 
freight forwarder, container terminal operator (the Shipping Act), cargo handling forwarder, cargo 
handling industry (the Commercial Port Law), automobile cargo transportation, and automobile 
cargo transport ation within designated route(s) (the Highway Act), foreign express delivery 
companies have to apply for licence in accordance with relevant laws. At present, major express 
companies such as DHL, TNT, Ubisoft, and FedEx have entered into our market.  
Questi ons Add. 15:  What are the specific regulations and requirements for customs clearance for 
cross-border express mails?  
Answer :  
The regulations for customs clearance for cross -border express mails are no different from those for 
other mail items. Key requi rements for goods imported or exported by post are as follows:  
1. The invoices for imported postal articles should be either attached to their outer packaging or 
placed in their packing boxes for Customs review.  
2. All regulatory requirements applicable to ordin ary trade are equally applicable to postal imports 
or exports.  
3. If a postal item sent from overseas has a FOB value exceeding US$5,000, the recipient is 
required to submit an import declaration to Customs. For a postal item with a value between 
CIF NT$2,000  (approximately US$64.50) and FOB US$5,000, no Customs declaration is 
required. However, if the item is taxable, Customs will issue a duty memo for the Post to collect 
the applicable duty and taxes accordingly upon delivery of that item. Any single shipmen ts 
valued below NT$2,000 is exempt from customs duties and taxes.  
The text of the Regulations Governing Customs Clearance Procedures for Importing and Exporting 
Postal Parcels can be found at: 
https://law.moj.gov.tw/Law/LawSearchResult.aspx?p=A&k1=%E9%83%B5%E5%8C%85&t=E1F1
A1&TPage=1   
  WT/TPR/M/377/Add.1  
 
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  19  USA (ADDITIONAL)  
Follow -up Questions based on the Secretariat Report (WT/TPR/S377)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.2.5 Export finance, insurance, and guarantees  
Page 59, paragraph 3.66:  The Secretariat's Report states the publicly owned Export -Import Bank 
provides export credit, insurance, re -lending, and other kinds of export financing facilities.  
Question 4 : Please explain if any of these export -financing programs cover agricultural products.  
Chinese Taipei Answer:  The export financing and export credit insurance programs of the 
Eximbank cover agricultural products.  
U.S. Follow -Up Question:  In response to q uestion 4 regarding 3.2.5 Export finance, insurance, 
and guarantees: Chinese Taipei stated that "the export financing and export credit insurance 
programs of the Eximbank cover agricultural products. "  
• Please explain the basis for which Chinese Taipei did not report Eximbank 's export financing 
support activities in its export competition questionnaire (ECQ) response under the Nairobi 
Decision on Export Competition.  
Answer :  
The export financing program is provided for all exports and not specifically for agricultural products. 
The export financing and export credit insurance provided by Eximbank is in line with market 
conditions, and there is no special preferential interest rate or insurance rate. The program does not 
involve any subsidies.  
• Please indicat e whether Chinese Taipei will be providing ECQ responses, including regarding 
Eximbank 's activities, for previous years and going forward as required under the Nairobi 
Decision.   
Answer :  
The export financing program was not reported as it is not specifica lly for agricultural products and 
does not involve any subsidies.  
• Please identify and describe each export financing support programs th at cover agricultural 
products.  According to the Export -Import Bank website, there are several export financing 
programs  including general export credit, short -term export credit, export guarantee, 
comprehensive export credit insurance (short term and open account), and letter of credit 
insurance.  
Answer :  
The export financing and export credit insurance provided by Eximba nk has no specific support plan 
for agriculture products.  
3.3.3 Sanitary and phytosanitary measures  
3.3.3.1 Food standards -setting framework  
Page 73, paragraph 3.114:  The Secretariat's Report states "Chinese Taipei's slow process for 
establishing MRLs for pesticides, low number of approved MRLs, and zero tolerance policy for 
pesticides without established MRLs have resulted in incoming agricultural shipments being stop ped 
at the ports of entry and other restrictions.." The Report states that the process of evaluating the 
pesticide MRLs of incoming crops is subject to the same principles as those for local crops.  
Question 15 : Please elaborate on any plans to improve the process for establishing MRLs for 
pesticides to avoid unnecessary delays.  
Chinese Taipei Answer:  We are establishing an online inquiry system for applications for pesticide 
MRLs on import crops. The system is expected to launch by the end of this year, aft er which 
applicants will be able to track the progress of the application online.  WT/TPR/M/377/Add.1  
 
- 117 - 
 
  U.S. Follow -up Question:  While an online tracking system for MRL applications would seemingly 
increase transparency of the MRL regulatory process, can Chinese Taipei explain  how the online 
tracking system will speed up the process for MRL approvals?   
Answer :  
Applicants will be able to track the progress of the application immediately via the online inquiry 
system before receiving the formal letter from the TFDA. After the in quiry system is launched, 
applicants will be able to know the status of their applications anytime and prepare for the next step 
in the application process in advance. In addition, the TFDA can manage the progress and total time 
required for all applicatio ns via this inquiry system,  and ensure a smooth and fast document review 
processes.  
Question 16 : Please confirm whether efficacy data and crop grouping requirements are the same 
for incoming crops as local crops.   
Chinese Taipei Answer:  The process of evaluating the pesticide MRLs of incoming crops is subject 
to the same principles as those for local crops.  
U.S. Follow -up Question:  What is the purpose of requiring efficacy data in an application for MRLs 
for imported agricultural product s?  
Answer :  
The purpose of requiring efficacy data is to provide scientific references for experts to evaluate 
whether the tolerance application of the pesticide can be used for domestic crops. Once MRLs are 
announced, they apply equally to both domestic and imported agro -products.  
3.3.4.1 Competition Policy  
Page 77, paragraph 3.126:  During the review period, the Fair Trade Act (FTA) was amended three 
times (4 February 2015, 24 June 2015 and 14 June 2017). Its February 2015 amendments, covering 
70% of its provisions, were considered the widest in range, the largest in scale and the most 
influential legal reforms since its entry into force.  
Question 22:  Do the recent amendments to the competition law include additional rights for 
respondents such as the oppo rtunity to review and rebut evidence? If so, please describe these 
additional rights.  
Chinese Taipei Answer:  Additional rights for respondents such as the opportunity to review and 
rebut evidence are not included in the recent amendments to the competitio n law.  
U.S. Follow -up Question:  The United States considers the opportunity for respondents to review 
and rebut evidence as important aspects of competition law.  Is Chinese Taipei considering further 
reforms to its competition law and if so, might these additional rights be included?   
Answer :  
During an investigation, the FTC may notify the respondents to appear to make oral statements and 
submit documents or exhibits to rebut an allegation as provided for in Paragraph 1, Article 27 of the 
FTA. In this re gard, the respondents do have the opportunity to review and rebut evidence under 
the current FTA.  
  WT/TPR/M/377/Add.1  
 
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  20  MALAYSIA  
GOVERNMENT REPORT  
Page 8  
3.3 Industrial Polciy and Reform  
3.9. In the past four years, several major industrial development programs such as the Backbone 
Enterprises Program, and the Industry Upgrading and Transformation Program have been launched 
to facilitate the potential of carefully selected industries to le ad the transformation of industrial 
innovation models. The objectives of these programs are to advance economic growth, increase 
employment opportunities and improve income distribution by boosting industrial optimization and 
transformation.  
Question N°1:  Malaysia is interested to seek further information on the Backbone Enterprises 
Program. Does the program assist in start -ups of enterprises?  
Answer :  
1. The Backbone Enterprises Program was proposed in October 2012, it defines the feature of 
"Backbone Enter prises " as "Businesses with considerable size, solid technological foundation, 
and unique and proprietary technology in certain fields, are highly competitive in the global 
market, and have their primary management or production lines within the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu ." 
2. The Ministry of Economic Affairs (MOEA) is responsible for accepting applications from 
enterprises and for organizing professional review meetings to select potential Backbone 
Enterprises. The MOEA al so provides consulting services in talent, technology, intellectual 
property and brand marketing to accelerate the growth of the potential Backbone enterprises.  
3. Any registered company (including start -ups) whose annual revenue less than NT$ 20 billion 
(around US$ 667 million) and less than 2,000 employees is qualified to apply. The selected 
potential Backbone Enterprises will be prioritized in governmental consulting services.  
3.10. The flagship 5+2 Industrial Innovation Plan was launched in 2016 to serve a s the primary 
industrial development policy undertaking. The aim of this plan is to transform industrial innovation, 
moving towards high -value -added, service -oriented and solutions -oriented business models. It 
envisions achieving industrial innovation, job  creation, equitable wealth distribution, and 
sustainability. The seven (5+2) innovative industrial pillars are: the Asia Silicon Valley, Smart 
Machinery, Green Energy Technology, Biomedical Industry, Defense Industry, New Agriculture, and 
the Circular Eco nomy. Details of each are briefly outlined below.  
Question N°2:  Malaysia seeks further information on the implementation progress of the flagship 
5+2 Industrial Innovation Plan. Was the plan successful in achieving its goal to transform industrial 
innovat ion, moving towards high -value -added, service -oriented and solutions -oriented business 
models?  
Answer :  
1. Since it was first promoted in July 2016, the 5+2 program has continued according to plans. The 
authority continues to use measures such as nurturing i ndustrial clusters, strengthening 
integrated manufacturing capacity, attracting foreign investments and linking to the global 
innovative momentum to promote industrial transformation.  
2. Take Smart Machinery as an example, we hope to upgrade our precision machinery to smart 
machinery, and utilize smart production lines for smart manufacturing to advance local industrial 
transformation. Considering the differences in business scale, it is difficult to expect all SMEs to 
transform across -the-board into smart production lines and smart factories. With the help of the 
Smart Machine Box (SMB) guidance project, we can assist SMEs introduce digital production and 
smart facility into their operations. In addition, we will implement smart plans for the automobile 
industry, aerospace industry, water system hardware/hand tool industry, and rubber and plastics 
industry to create smart machinery benchmark models.  WT/TPR/M/377/Add.1  
 
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  SECRETARIAT REPORT  
Page 84 -85 
3.147. Relevant laws and regulations on government procurement, procurement notices and 
contract award information are published in the Government Procurement Gazette (currently an e -
gazette) as well as on the PCC's website.226 To enhance the openness and transparency of 
procurement information, since 1999 Chinese Taipei has maint ained an online procurement platform, 
namely GEPS (Government E -Procurement System), to provide single website e -procurement 
service for government entities and suppliers.227 All procuring entities are required to publish their 
tender notices, tender docum entation and award notices in the Government Procurement Gazette 
and on the platform. A procuring entity may base its decision on whether to receive tenders through 
GEPS upon "actual needs" relating to the specificity/characteristics of the procured item; the 
authorities indicated that certain local companies do not have the capacity to meet e -procurement 
requirements. For GPA covered procurements, summary notices in English are also published 
through the system. During the review period, there was an annua l average of about 250,000 
procurements providing e -tender documentation annually, accounting for over 99% of the total 
number of tenders. By promoting e -tendering documentation, the authorities saved time and 
reduced human recourses and printing costs est imated at over NT$ 1 billion per year. In addition, 
the publishing of the e -Government Procurement Gazette saves printing -related advertisement costs 
estimated at about NT$3 billion per year.  
Question N°3:  We seek further information on the participation o f foreign supplier/contractor 
registration system imposed for companies that wish to participate in Government Procurement? If 
so, seek information on the process?  
Answer :  
We do not have a foreign supplier/contractor registration system for companies tha t wish to 
participate in government procurements.  
Page 86  
3.3.6 Government procurement  
3.153. The Complaint Review Boards for Government Procurement (CRBGP) established at different 
levels of government are responsible for handling complaints filed by supp liers where there might 
be a breach of laws and regulations in a procurement whose contract value is over NT$1 million. If 
the supplier does not accept the CRBGP's decision, it may file an administrative appeal with the 
administrative appeal court. Reporte dly, arbitration is often the preferred form of dispute settlement 
for overseas suppliers, rather than mediation, which is the current practice in public procurement 
contracts.  
Question N°4:  We seek further information mediation process under dispute settl ement. Could you 
provide information on the complaint mechanism provided for contract value below NT$1 million?  
Answer :  
1. In the event that a procurement entity and a supplier fail to reach an agreement over a dispute 
in relation to the performance of the contract in question, the supplier or entity could apply to 
CRBGP for mediation. The mediation would proceed after the mediation fee has been paid by 
the applicant. The result of mediation shall either be established upon consensus of the parties, 
or fail to establish if there is no consensus.  
2. Pursuant to paragraph 1 of Article 75 and paragraph 1 of Article 76 of the GP Act, for any dispute 
between a procurement entity and a supplier arising out of the invitation to tender, the 
evaluation of tender, or the award of contract, the supplier could file a protest for any 
procurement, regardless of the value of contract, but would not be allowed to file a complaint to 
the CRBGP if the value of procurement does not reach the threshold for publication (NT$1 million,  
about US$32,446)  
Question N°5:  What is the interim measure available towards the procurement process while the 
complaint being heard by CRBGP?  WT/TPR/M/377/Add.1  
 
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  Answer :  
Pursuant to paragraph 2 of Article 82 of the GP Act, the CRBGP may notify the procuring entity to 
suspend the procurement procedures if necessary. A procurement entity could also suspend 
procurement procedures in accordance with paragraph 1 of Article 84 of the GP Act.  
Page 87 -97 
3.3.7 Intellectual property rights  
3.160. With respect to pharmaceutical inventions, important steps have been taken towards 
ensuring better protection in this area to promote the economy's innovation potential.251 In 
December 2017, the Pharmaceutical Affairs Act (PAA) was amended as part o f Chinese Taipei's 
commitment to join the then Trans -Pacific Partnership Agreement (TPP, Section 2.3.2). The 
amendment was aimed at aligning existing IPRs in this area to the TPP provisions by, inter alia, 
tightening data exclusivity for new indications an d setting up a patent linkage system to ensure that 
generic drugs are not launched in Chinese Taipei while the original patent is still valid.252 Additional 
amendments to the PAA, providing data exclusivity for new drugs with new ingredients and for drugs 
with newly added or change of indications with international data involving a three year regulatory 
protection that might be extended to five years for those with domestic clinical trials, have been in 
place since 31 January 2018; nevertheless, the legisla tive process for the Patent Linkage 
amendments has not yet been completed.253  
Patent Linkage  
Question N°6:  With regards to the amendment of the PAA, what are the mechanisms that have 
been put in place for the patent linkage system? Are there any relevant guidelines or SOP on the 
patent linkage system?  
Answer :  
At the present, we have drafted two relevant regulations: the Regulation for Patent Linkage of Drugs 
and the Regulation for Patent Linkage of Agreement and Notification. The notification of the draf t 
Regulation for Patent Linkage of Drugs was released on September 11, 2018 and reported to the 
TBT Committee of the WTO.  
Question N°7:  In the event where there are two or more applicants for the first generic drug, Seek 
information if the joint marketing exclusivity be equally divided among generic companies?  
Answer :  
According to Paragraph 3 of Article 48 -16 of the Pharmaceutical Affairs Act, if more than one 
application for a generic drug permit that complies with the requirements regarding the earliest  duly 
prepared application documents is filed on the same date, such applications are jointly subject to 
the 12 -month period of marketing exclusivity.  
Question N°8:  Seek further information if the PAA contain any provision which allows for 
submission of generic application to the regulatory agency (TFDA) while the patent of the originator 
product is still in force (i.e., Bolar Provision)?  
Answer :  
According to Artic le 60 of the Patent Act, the effects of the patent right shall not extend to research 
and trials of pharmaceuticals.  
Generic drug applicants are allowed to submit registration to TFDA based on Article 39 of the PAA. 
If the patent of the originator is stil l valid, the applicant shall obey the regulations of patent linkage 
of drugs according to Chapter 4 of PAA.  
Question N°9:  The patent linkage system will ensure that generic drugs are not launched in Chinese 
Taipei while the original patent is still valid. However, is there a provision in the PAA which allows 
manufacture for export of such generic drugs?  
Answer :  
There is no relevant provision in the PAA regulating the manufacture of generic drugs for export 
while the original patent is still valid in the S eparate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu.  WT/TPR/M/377/Add.1  
 
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  Data Exclusivity  
Question N°10:  Does the new amendment in PAA pertaining to data exclusivity extend to Biologics? 
If so, is the period of DE protection similar to that of small molecules?  
Answ er:  
The Pharmaceutical Affairs Act does not distinguish between biologics and small molecules, data 
exclusivity rules apply to both biologics and small molecules.  
Page 52 - 54 
3.1.5  Import prohibitions, restrictions, and licensing  
Question N°11:  Appreciate if further information could be provided for the procedure implemented 
by the Chinese Taipei government for importation or exportation of human remains, human tissue, 
microorganism and pathogenic substances?  
Answer :  
The customs clearance procedures of general import/export goods are conducted in accordance with 
the Customs Act. However, for special imported/exported air cargos, relevant regulations are as 
follows:  
1. Imported air cargos of fresh foods, perishable goods, live animals, plants, hazardous goods, 
radioactive element, ashes, corpses, bulk cargos, or goods permitted examined and released 
alongside aircraft by the Customs with special consideration, shall be allowed for pre -entry 
declaration, provided all required documentation is pre sented by the concerned duty -payer, and 
shall be released pursuant to Article 18 of the Customs Act. The respective import manifest may 
be processed after the arrival of the aircraft and the said examination and release are done.  
2. Exported air cargos of fre sh foods, perishable goods, live animals, plants, hazardous goods, 
oversize goods that a warehouse cannot accommodate, or goods permitted examined and 
released alongside the aircraft by Customs with special consideration, shall be allowed for 
pre-entry dec laration, provided all required documentation is presented by the concerned 
exporter.  
Question N°12:  If there is such procedure, what are the relevant regulation or Act that regulate 
the procedure? Particularly for areas of importation or exportation of hu man remains, human tissues, 
microorganism and pathogenic substances, if any.  
Answer :  
For more information about relevant regulations, please see the Regulations Governing the Pre -entry 
Customs Declaration of Import/Export Goods. 
(https://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0350012 ). 
  WT/TPR/M/377/Add.1  
 
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  21  UKRAINE  
QUESTION REGARDING T HE ANSWER, PROVIDED BY CHINESE TAIPEI TO  THE ADVANCE 
WRITTEN QUESTION 14,  SUBMITTED BY UKRAIN E (RD/TPR/978)  
Page 37  
Chinese Taipei indicated that “If a disease outbreak occurs in the territory of a country, the country 
can apply for the recognition of disease -free zone by following our procedure”.  
Question:  
Ukraine would appreciate if Chinese Tai pei could provide detailed information concerning application 
procedure for recognition of disease -free zone.  
Answer :  
1. For recognition of pest free areas of plant pest(s): An exporting country may apply for 
recognition of a pest free area of a plant pest i n accordance with the Procedures  for Recognition  
of Pest Free Areas,  and provide scientific evidences for review. The information is published  on 
BAPHIQ’ s website .(https://www.baphiq.gov.tw/ en/view.php?catid=11698 )  
2. For recognition of disease -free status of infectious animal disease(s): If a country considers itself 
meeting the disease free criteria described in the OIE Terrestrial Animal Health Code, the country 
can apply for recognition of disease -free status, in accordance with the Procedure for the 
Recognition of Disease -Free Status o f a Foreign Country after the eradication of the disease 
while conforming to the OIE guidelines for disease -free countries. The information is published  
on BAPHIQ’ s website . (https: //www.baphiq.gov.tw/view_redirect.php?id=5776&type=f ) 
3. Upon receiving the application, the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu will commence the review pro cess. 
  WT/TPR/M/377/Add.1  
 
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  QUESTIONS SUBMITTED VIA THE TPR Q&A ONLI NE SYSTEM  
1  ICELAND  
WT/TPR/G/377 – Government Report  
3. DEVELOPMENT OF TRADE AND INVESTMENT POLICIES  
3.8 Bilateral and Multilateral Economic Integration  
Page 14, Paragraphs 3.23  
Specifically, key initiatives for which the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu has been serving as a lead or main sponsor during the review period were the creation of the 
APEC Women and the Economy Sub -Fund (with the U.S. and Australia);  
Question 1 : 
The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is among WTO members that 
are putting women's economic empowerment at the heart of the trade agenda through the Trade 
Impact Working Group, established under the auspices of the  International G ender 
Champions -Geneva. On the occasion of the 11th WTO Ministerial Conference in Buenos Aires more 
than 120 WTO members and observers launched a joint declaration on women and economic 
empowerment that aims inter alia at sharing best practices and working  together in the WTO to 
remove barriers for women's economic empowerment and increase their participation in trade.  
Iceland notes with interest the information in the report the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu have provided f or this TPR on work in APEC they have led or where they 
have served as main sponsor on inclusive trade, as well as on women and economic development. 
Could the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu share information of 
the content and/or outcome of this work?  
Also, could the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu share information 
on the participation of women in their economy? Have particular barriers that limit women's 
participation in trade been identifie d? Have any particular measures been identified to address such 
barriers or to encourage women's participation in trade and promote women's entrepreneurship, or 
are such measures being developed?   
Answer :  
The outcomes of our initiatives  
In recent years, t he Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has made 
various responses to the APEC "Women in STEM" initiative. We have encouraged women to utilize 
innovative technology to explore business opportunities. Since 2017, we have integrated  the concept 
of gender -based innovation into our APEC projects as follows:  
1. From 2013 to 2016, we implemented the APEC -funded project "Innovation for Women and 
Economic Development".  
2. In order to encourage women's participation in science, technology, engineering and 
mathematics, we promoted the "Gender Innovation for Technology and Science" project, the 
subject of which was consistent with the APEC Gender Inclusion Guidelines.  
3. In 2018, in order to survey the challenges, opportunities and ways of tackli ng women's 
participation in agriculture in APEC areas, we are promoting the "APEC GIFTS A+: Promoting 
Gender Inclusion in Smart Agriculture". This project intends to improve innovation and 
development in agricultural technology, facilities and environment.  
In 2017, the APEC Women and Economy Sub -fund, co -funded by the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu, the United States and Australia, was established to encourage 
APEC economies to implement cross -forum projects that integrate ge nder perspectives. We welcome 
APEC economies among various fora to take advantage of this fund to promote gender 
mainstreaming in the APEC region. This sub -fund aims to institutionalize and provide ongoing 
support so as to advance APEC's objectives to incr ease women's economic participation, integrate 
gender perspectives through international cooperation, and promote "inclusive growth".  WT/TPR/M/377/Add.1  
 
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  Barriers to women's participation in trade, and our countermeasures include:  
1. Lack of access to financing channels  
(1) Youth Entrepreneurial Business Start -up Loan : limit of NT$2 million.  
(2) Phoenix Micro Startup Program : limit of NT$1 million and no guarantor or collateral needed. 
The government provides 95% guaranteed coverage as well as two years of preferred 
interest, thereby a lleviating capital and interest burdens for women entrepreneurs.  
2. Difficulties in accessing markets  
We have created a website for women entrepreneurs that contains information on their major 
products. In addition, the government has launched numerous trade promotion projects to assist 
women in entering international markets. A total of 11 international digital courses were created 
to help cultivate women's knowledge about developments in international markets. Women 
students constituted roughly 48% of the cl asses.  
3. Lack of professional skills and capabilities  
The government has established the Female Business Owners Consultative Committee and 
Female Entrepreneurship Volunteer system to foster cooperation among female -owned 
businesses and to facilitate the integration of relevant resources and information so that female 
entrepreneurs can secure more wide -ranging assistance.  
4. Lack of leadership roles and opportunities to voice opinions  
The government has established the Female Business Owners Consultative Comm ittee and the 
Female Entrepreneurship Volunteer system. It has provided individualized and integrated services 
for women entrepreneurs that are available at different stages and focus on their needs. Female 
entrepreneurship will be promoted by learning fro m model women entrepreneurs and their 
successful experiences.  
5. Innovation and technology  
We have implemented the APEC projects "Innovation for Women and Economic Development", 
"Gender Innovation for Technology and Science" and "APEC GIFTS A+: Promoting Gend er 
Inclusion in Smart Agriculture".  
  WT/TPR/M/377/Add.1  
 
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  2  EU 
WT/TPR/S/377 – WTO Secretariat Report  
1. Economic Environment  
1.2 Recent Economic Developments  
1.2.3 Main macroeconomic policy developments  
Page 22, para 1.18  
Employment page 22 para 1.18 and page 39 para 2.48 on recruitment of overseas professionals  
"To enhance the inflow of professionals from WTO members, as from 8 February 2018" Chinese 
Taipei has relaxed regulations with respect to visa, residence, health insurance as well as tax and 
retirement benefits".  
EU Qu estion N°1:  Could Chinese Taipei indicate if such changes have already brought impact? If 
so, are there any figures available? Are the persons attracted more in the manufacturing or in the 
services sector?  
Answer :  
1. The Act for the Recruitment and Employme nt of Foreign Professionals came into force on 
February 8, 2018. Through the relaxation of visa, work and residency regulations and the 
enhancement of insurance, tax and retirement benefits, the Act is aimed at building a friendlier 
work and residency envi ronment and enhancing the inducement for foreign professionals to come 
to and stay in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, setting an 
important milestone for the legislation of our talent retention and recruitment.  
2. Implementa tion outcomes as of July 31, 2018:  
(1) Issuance of Employment Gold Card: So far, there are a total of 164 applicants, and 
68 Employment Gold Cards have been issued, including 27 in the field of science & 
technology, 16 in the field of economics, 7 in the field  of education, 14 in the field of culture 
& arts, and 4 in the field of finance, providing convenience for these foreign special 
professionals to freely seek employment and change jobs.  
(2) Other outcomes of the relaxation of work and residency regulations: Th e Ministry of Labor 
issued work permits to 19 foreign adult children of legal residents, and to 8 freelance artists 
who can thus engage in artistic work freely and do not need to apply through an employer; 
also, 35 foreign special professionals were able t o extend their work permit duration from 3 
years to 5 years, and they all engage in specialized and technical work. In addition, the 
Ministry of the Interior approved 63 applications for permanent residency where the 
applicants correspond to the regulation  that once the foreign professionals obtain the 
permanent residency, the spouses, minor children and disabled adult children can apply for 
permanent residency after residing in the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu for 5 consec utive years.  
3. Trade Policies And Practices By Measure  
3.1 Measure Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements / Customs procedures and 
requirements and customs valuation  
Page 42 para 3.9  
2.9 states that a pilot AEO pr ogramme has been launched with China in 2016.  
EU Question N°2:  
Could Chinese Taipei give some information about the scope of this programme and the main lessons 
learnt?  
Answer :  
The pilot project of cross -strait cooperation on the mutual recognition of AEO  was launched between 
Nanjing, Fuzhou, and Xiamen of China and Keelung and Kaohsiung of the Separate Customs Territory 
of Taiwan, Penghu, Kinmen and Matsu in October of 2016. However, the actual effect of the current 
pilot project is relatively limited.  WT/TPR/M/377/Add.1  
 
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  3. Trade Policies And Practices By Measure  
3.1 Measure Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements / Customs procedures and 
requirements and customs valuation  
Page 42 para 3.10  
Despite its really good ranking in "doing business" it appears that the average duration of the Time 
Release Studies in Chinese Taipei has increased since the last period of review to 5 days. This would 
be in particular due to "a major bottleneck that is the efficiency of the licensing agencies in  reviewing 
and certifying the import and export licences". Para 3.13 reports that " in 2017, Chinese Taipei stood 
55th out of 190 economies in the ease of trading across borders, lower than a number of economies 
in the region and lower than its 18th positi on of 2013". "In 2015 the most problematic factors for 
importing were mainly tariffs and NTBs, high cost or delays caused by international transportation, 
burdensome import procedures, domestic technical requirements and standards and high cost or 
delays c aused by domestic transportation".  
EU Question N°3:  Taking into account that Chinese Taipei intends to continue taking full advantage 
of global trade, what are the intentions of the Chinese Taipei authorities in this regard?  
Answer :  
In recent years, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has 
strengthened border control for food safety, and implemented trade management and 
documentation review against FTA imports. These measures caused a slight increase of c ustoms 
release time. However, our Customs has also been actively advancing modernization of customs 
operations such as paperless operation, intelligent mobile inspection, joint examinations of the goods 
eligible for being examined and released alongside th e airplane with licensing agencies, and inking 
the AEO MRA with major trading partners following the implementation of the WTO Agreement on 
Trade Facilitation. We firmly believe that these measures will further simplify the customs 
procedures, shorten over all customs release times and save costs for traders.  
EU Question N°4:  The EU would also welcome information regarding the National Trade Facilitation 
Committee and its role vis à vis the above described issues in particular?  
Answer :  
In order to impleme nt the WTO Trade Facilitation Agreement, our trade facilitation committee is 
playing a coordinated role to promote cooperation between Customs and other border management 
agencies, simplifying the import/export trade procedures, and addressing relevant pro blems, so as 
to shorten overall customs release time and reduce trade costs.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
3.3.1.2.4 Sector -specific support  
3.84 
Page 65 para 3.84 relates to subsid ies that are specific to given sectors including aerospace or 
pharmaceutical or automotive.  
EU Question N°5:  Regarding footnote 117 page 65, the EU would appreciate clarification as to the 
subsidies that can be granted under certain conditions during a mer ger and acquisition that covers 
more than 65% of the total capital of the "bought" entity concerned?  
Answer :  
1. In order to eliminate obstacles arising from mergers and acquisitions carried out by enterprises, 
the Business Mergers and Acquisitions Act provi des tax incentives for those cases that meet 
specific conditions under the principle of economic identity. These incentives are meant to reduce 
the tax burden with respect to the transfer of properties via mergers and acquisitions and shall 
not be regarded  as subsidies.  
2. Article 39 of the Business Mergers and Acquisitions stipulates:  
 In carrying out a division or acquisition of assets or shares by a company pursuant to Articles 27 
through 30 of this Act, where the shares are entitled with voting rights as c onsideration to pay 
the merged/consolidated and acquired company, and while such shares comprise a value not WT/TPR/M/377/Add.1  
 
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  less than sixty -five percent of the total consideration, or where a company is carrying out the 
merger/consolidation, the following shall apply:  
(1) Any and all deeds and certificates so created are exempted from the stamp tax;  
(2) The title -ship of acquired immovable property is exempted from the deed tax;  
(3) Transferred securities are exempted from the securities exchange tax;  
(4) Any commodities or labor servi ces transferred are deemed as not falling within the scope of 
imposition of the business tax;  
(5) Transfer of the registration of the title -ship shall be immediately completed after the current 
value of any land owned by the company with the transfer has been confirmed. The land 
value increment tax duly borne by the existing land title holder may be registered under the 
name of the company acquiring the land after the merger/consolidation and acquisition; in 
the case of any further transfer of that land, the la nd value increment tax registered shall be 
paid on a priority basis over any and all liabilities and mortgage from the proceedings of the 
disposition of such land.  
 After the land value increment tax, under Item 5 of the preceding paragraph, is registered, when 
shares as the consideration are transferred by the acquired company or divided company such 
that the shares it holds become less than sixty -five percent of the  consideration within three 
years upon completing the registration of the land transferred, the acquired company or the 
divided company shall make later payment of the land value increment tax registered; any 
shortage of the later payment shall be made goo d by the acquiring company and the surviving 
company or the newly incorporated company after the division.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
3.3.2.1 Stan dards, testing, and certification  
3.91 
Page 67 para 3.91 reports that "Regulatory impact analysis is one of the elements of Good 
Regulatory practice and that the BSMI introduces technical regulation on a risk based approach."  
EU Question N°6 : Regarding the  notification TPKM/245, the EU welcomes Chinese Taipei 
commitment to remove the former restrictions applied regarding phthalates DMP and DEP in bicycles. 
The EU understands that a decision has been taken and that the final result will soon be published 
once consolidations have been finalised. The EU would appreciate confirmation of this understanding 
of the very recent developments and a copy of such decision.  
Answer :  
1. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu confirms that a decis ion, 
as summarized below, has been made at the Technical C ommittee Meeting on 
15 November  2017 to remove the restrictions of DMP and DEP from CNS 15503, which is adopted 
as the inspection standard of children's bicycles. The new edition of CNS 15503 is exp ected to 
be published in November of 2018. After its publication, we will proceed to update the inspection 
standard for children's bicycles and notify the WTO of the proposal.  
2. The summarized translation of the decision on DMP and DEP on 15 November 2017:  
 To revise the standard CNS 15503 "General requirements for the safety of children's products" 
by removing the restrictions on DMP and DEP, based on the following reasons:  
(1) The main use of DMP and DEP is not as additives to plastic products. These two phthal ates 
are rarely used in the plastics industry. Moreover, according to the results of post -market 
surveillance conducted by the Bureau of Standards, Metrology & Inspection (BSMI), DMP and 
DEP are rarely detected in toys and children's products.  
(2) Currently, t here is no regulation restricting the use of DMP and DEP in general products 
around the world.  
(3) Currently, no clear evidence or study shows any adverse effects of DMP and DEP on human 
health.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting  Production and Trade  
3.3.2 Standards and other technical requirements  
3.3.2.1 Standards, testing, and certification  
There are several foreign laboratories authorized to certify organic products. However, a new law 
introduces the existence of a mutual reco gnition agreement with the country of a laboratory as a 
requisite for this authorization to a foreign laboratory.  WT/TPR/M/377/Add.1  
 
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  EU Question N°7:  Are the certificates currently issued by foreign laboratories going to be revoked 
if no mutual recognition agreement is reach ed with the country where they are based? What are the 
transitional measures considered?  
Answer :  
1.  The Organic Agriculture Promotion Act was enacted on May 30, 2018. Article 42 of the Act 
stipulates that it will enter into force one year after the enactment date. According to Article 37 
of the Act, if those countries announced by the central competent authority as organic equivalent 
prior to the implementation of this Act fail to reach mutual organic equivalence with the Separate 
Customs Territory o f Taiwan, Penghu, Kinmen and Matsu within one year of the implementation 
of this Act, the central competent authority shall abolish the equivalence recognition. Therefore, 
these clauses effectively give countries a grace period of two years to comply with the 
requirement of bilateral organic equivalence, and are applicable to all WTO members.  
2.  Enactment of the Act provides two approaches for foreign organic products to access the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu: (1) Country of  origin can 
reach a bilateral arrangement on organic equivalence with the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu; (2) The producers are authorized by a foreign certification 
body that obtained accreditation from the Separate Customs  Territory of Taiwan, Penghu, 
Kinmen and Matsu. These approaches resemble those of the EU.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.1 Food standards -setting f ramework  
3.108  
Chinese Taipei requires that unprocessed imported foodstuffs are issued a sanitary certificate, which 
has to be agreed between the Bureau of Animal and Plant Health Inspection and Quarantine 
(BAPHIQ) and the sanitary/phytosanitary authoritie s of the country of origin. However, the 
negotiation of this certificate takes a very long time due to the fastidiousness of the procedure and 
lack of personnel on CT's administration commensurate with the amount of work that the task 
implies.  
EU Question N°8: What measures are being taken to correct the excessively long negotiating 
periods?  
Answer :  
Regarding the application for meat and products thereof, various factors can affect the review 
process, such as the range of completeness of the supporting documents, and the applicant's degree 
of responsiveness to provide the necessary information. To inform applicants about the progress of 
their applications, we will notify the exporting countries if we do not receive any supplementary 
information or respon se within six months.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.1 Food standards -setting framework  
3.109  
"During the review period, the FDA continued to amend food-related laws and regulations to comply 
with international standards. Its focus areas included: amendments to food regulatory standards 
and product review; management of food sources, in particular implementing a food safety control 
system and border i nspection of food; inspection of food additives; monitoring of the food safety 
chain including post marketing monitoring, sampling and testing of food; and food safety and 
sanitation management. The number of maximum residue levels (MRLs) of Chinese Taipei  (CT) is 
very low compared to other jurisdictions in World Trade Organization (WTO). Also, tolerance for 
substances with no established MRL is zero".  
EU Questions N°9: Can Chinese Taipei explains how the adoption of maximum residue levels 
(MRLs) and the es tablishment of tolerance policies for substances with no MRL is making progress? 
Are MRL's and tolerance policies going to be introduced for organic products in the new law on 
organic products?  WT/TPR/M/377/Add.1  
 
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  Answer :  
1.  According to the Standards for Pesticide Residue Li mits in Foods and the Standards for Pesticide 
Residue Limits in Animal Products, products without listed pesticides levels shall not have any 
level of pesticides detected.  
2.  For pesticides and product items approved by the EU but for which no standards have  been 
established in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, it is 
recommended that exporters should submit the relevant scientific data in their application. The 
list of required information is available on the TFDA website 
(http://www.fda.gov.tw/TC/download.aspx?cid=99&pn=2 , No.11 ZIP file). We welcome 
exporters to provide detailed information of individual pesticides for reference in the review.  
3. The concise procedures for establishing tolerance levels of pesticide residues in the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu are as follows:  
(1) Prepare all relevant documentation and apply to the competent authority;  
(2) Carry out risk assessm ent procedures;  
(3) Convene an expert consultation committee meeting and review documents;  
(4) Commence administrative procedures for the draft and official document, including 
pre-notification, public announcement and notification to the WTO;  
(5) Official ly announce the regulatory order.  
4. According to the Agricultural Production and Certification Act and the Certification Standards for 
Organic Agricultural Products and Organic Agricultural Processed Products, organic agricultural 
products and processed prod ucts shall be produced without chemical pesticides, chemical 
fertilizers, veterinary drugs, or any other chemicals. Meanwhile, packaging materials containing 
bactericidals, fungicides, preservatives, fumigants, pesticides, migratable fluorescent 
substances , and other prohibited substances, GMOs, etc. and ones with contamination risks are 
prohibited for use on organic agricultural products. In addition, operators are responsible for 
taking all necessary precautions to prevent organic agricultural products fr om mixing with non -
organic ones and coming into contact with prohibited materials.  
5.  The above -mentioned provisions, by their very definitions, imply that an organic agricultural 
product or processed product can be considered qualified only if no prohibited  substances are 
detected. We use the LOQ values prescribed by the Ministry of Health and Welfare to determine 
the level that is considered to be "Not Detected" for each prohibited substance, which uniformly 
applies to all imported and domestic organic prod ucts. 
6.  At present, there are no plans for establishing MRL tolerance for banned substances of organic 
agricultural products and processed agricultural products.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.1 Food standards -setting framework  
3.112  
"Incoming fruit, vegetables, meat and other food products are subject to inspection and testing by 
FDA inspectors at the port of entry for pesticides, animal drugs and o ther contaminants such as 
heavy metals. All established MRLs are implemented across the board for both incoming and locally 
produced products. All incoming merchandise is subject to market entry inspection upon arrival 
whereas local products are subject to  surveillance or monitoring, reportedly, at a much lower 
inspection frequency. The authorities indicated that the entry control measures are based on the 
"Regulations of Inspection of Imported Foods and Related Products" which are risk -based and take 
into consideration the violations record of importers; as a result the target items, mechanism and 
criteria for sampling of the entry point inspection and local surveillance differ."  
EU Questions N°10:  What does the revision procedure consist of, when residue of a pesticide is 
found in an inbound shipment and the exporter does not agree with the test results? Is there a 
protocol for re -sampling and re -testing? Are the tests repeated by the same testing facility or a 
different one that did not take part in the original test? Is there any possibility to bring the case 
before independent laboratories or does it have to be addressed to an FDA facility?  
Answer :  
According to Article 23 of the Regulations of Inspection of Imported Foods and Related Products, the 
obligatory inspection applicant can apply for re -examination to the original inspection authority 
within 15 days after receipt of the notification of results. Application for re -examination is limited to 
one time only, and shall be performed by the original inspection authority using remaining samples 
for the re -examination.  WT/TPR/M/377/Add.1  
 
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  EU Question N° 11:  Is Chinese Taipei planning to modify the maximum residue levels (MRLs) to 
align them with international standa rds? 
Answer :  
The MRLs set by the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu are based 
on international standards (e.g., Codex), standards of developed countries (e.g., the U.S., EU, and 
Japan) as well as scientific principles. They als o comply with the Council of Agriculture's standards 
for pesticide usage. Furthermore, the levels at which the MRLs are set depend on the dietary patterns 
and total dietary intake of consumers in the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu, and are eventually established on the basis of risk assessments. The establishment of 
the pesticide MRLs of imported crops follows the same principles as those of domestic crops as 
mentioned above, so as to ensure the safety of the diet of our citi zens. 
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.2 Quarantine regulations  
Page 75 paras 3.121 and 3.122  
The EU notes with satisfaction the recent approval of be ef imports from Sweden and the Netherlands 
but does not understand the remaining obstacles for the imports from other EU Member States -. For 
example, applications from Italy, France, Denmark are still pending -. Given that these EU member 
States follow the same legislation and can give the exact same guarantees as the Netherlands and 
Sweden, the EU considers that time is ripe to allow all imports from the EU.  
EU Question N°12:  Could Chinese Taipei indicates its intentions including as regards the timing for 
the lifting of the current impediments to imports from all other EU Member States?  
Answer :  
Regarding beef applications, after documentary review and risk assessment, the TFDA will invite 
experts to conduct on -site inspections. Once the TFDA completes all  aspects of its technical review, 
each case will enter the cross -ministerial mechanism for follow -up administrative work. All cases are 
currently undergoing the above procedures.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.2 Quarantine regulations  
3.122  
Page 75 paras 3.121 and 3.122  
At the moment, all EU Member States are free of Highly Pathogenic Avian Influenza in accordance 
with the recommendations of the OIE. Yet, Chinese Taipei maintains restrictions on seven Member 
States (Austria, Belgium, Germany, Spain, Italy, Netherlands for example not to mention all). 
Chinese Taipei continues requiring a formal application process, which obliges EU Member States to 
make  detailed submissions that are then reviewed in all length - The WTO Secretariat notes the long 
time that those processes take in its report -. Based on experience gained during previous study 
visits, seminars and numerous exchanges of information, the EU co nsiders that Chinese  Taipei 
should trust that declarations for disease -freedom of EU Member States are credible and reliable. 
There is no need to do what EU considers a redundant re -evaluation.  
EU Questions N°13 : What are Chinese Taipei views on the above and intentions for the future? 
Could Chinese Taipei confirm the intention to lift restrictions on European poultry products imposed 
as a result of incidents of highly pathogenic avian influenza and by when? When is Chinese Taipei 
going to adopt regionalisa tion approaches in relation to highly pathogenic avian influenza and African 
swine fever for continuation of trade, as foreseen in Article 6 of the SPS Agreement? Which zones 
are currently recognized as free of highly pathogenic avian influenza (HPAI)?  
Answer :  
1.  Every member of the WTO and OIE has the right to conduct risk assessments and require 
necessary scientific evidence from the exporting countries. The progress of review depends on 
the degree of cooperation by the exporting countries. To facilitate the proc edure, we will notify 
the exporting country if we have not received any response for at least half a year. For those WT/TPR/M/377/Add.1  
 
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  countries that were previously deemed as animal disease -free but whose status was revoked 
later due to disease outbreaks, a simplified appl ication procedure is available for them to reapply 
for recognition.  
2.  According to the "Quarantine Requirements for the Importation of Poultry Meat", the 
meat-exporting country must be recognized as free from HPAI and ND by our competent 
authorities. If the  exporting country is recognized as free from HPAI but not from ND, meat 
heated by methods in accordance with the above -mentioned quarantine requirements is the only 
option. If there is any outbreak of HPAI in the exporting country, it can apply for recogn ition of 
HPAI-free status after HPAI is eliminated.  
3.  Regarding regionalization approaches in relation to HPAI and ASF:  
(1) As a Member of the WTO and OIE, we accept the concept of zoning. We follow the relevant 
international standards and conduct risk assessme nts based on science. The same 
application procedures apply to all trading partners. We have recognized regionalization for 
the United States, Canada, Australia, Italy (ASF), and Brazil.  
(2) The pork industry is very important for us and we are ASF -free. ASF i s extremely infectious 
with a high mortality rate. There is no vaccine or medicine to prevent or cure the disease. In 
addition, the zoning delineated for ASF control will be difficult for a small economy. Therefore, 
zoning for ASF will be considered with c autious discretion.  
4.  The Council of Agriculture announced the "List of Infectious Animal Diseases -free and Infected 
Countries (Zones)" according to Article 33 of the "Statute for Prevention and Control of Infectious 
Animal Disease". Belgium, Estonia, Finla nd, Hungary, Lithuania, Poland, Portugal, Spain, France 
and the United Kingdom are recognized as HPAI -free countries by the COA among the member 
states of the European Union.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and  Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
3.127  
The EU notes that reforms have been carried out in this important area. The EU notes page 77 para 
3.127 the following " The FTA does not apply to any proper conduct in conn ection with the exercise 
of IP rights pursuant to the provisions of the copyright law, the patent law or the trademark law".  
EU Questions N°14:  Could Chinese Taipei elaborate on the scope and impact of this exemption 
and indicate the rationale for such exe mption? Does the EU understand correctly that the compliance 
with the IP laws precludes the application of any competition law provisions to the concerned 
undertaking?  
Answer :  
1. Article 45 of the FTA stipulates that conduct in connection with the exercise o f intellectual 
property rights under the Copyright Act, Trademark Act, or Patent Act is not covered by the FTA 
unless it is improper.  
2. In examining competition cases involving IP rights, the Fair Trade Commission (FTC) must 
examine whether the conduct is an  exercise of rights pursuant to the IP Acts and whether such 
conduct is proper in connection with the exercise of rights under the IP Acts. If the conduct in 
question oversteps the scope of the proper exercise of rights under the IP Acts, such conduct 
shall fall under the scope of application of the FTA and relevant rules.  
3. The FTC has enacted the Fair Trade Commission Guidelines on Technology Licensing 
Arrangements and the Fair Trade Commission Guidelines on the Reviewing of Cases Involving 
Enterprises Issu ing Warning Letters for Infringement on Copyright, Trademark, and Patent 
Rights as a detailed exposition of criteria for law enforcement.  
3. Trade Policies and Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.2 Price controls  
Table 3.7 price -stabilisation measure  
Among the measures described, one can read in the column "mid stream" that subsidizing oil used 
by farmers or fishermen, exemption of 5% business tax, subsidizing use of diesel by farmers and 
fishermen count among the options that can be used by the authorities.  WT/TPR/M/377/Add.1  
 
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  EU Question N°15:  Could Chinese Taipei detail how these measures have been used respectively 
for supporting farmers and fishermen and the amounts involved?  
Answer :  
We prov ide a non -specific oil subsidy to vulnerable sectors to reduce any burdens caused by 
fluctuations in fuel prices. Farmers and fishermen are among the most vulnerable and low -income 
groups.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.5 State trading, state -owned enterprises and privatization  
3.138  
"State trading enterprises in the WTO are defined as "Governmental and non -governmental 
enterprises, including marketing boards, which have been granted exclusive or special rights or 
privileges, including statutory or constitutional powers, in the exercise of which they influence 
through their purchases or sales the level or direction of imports or exports". In page 21 para 1.15, 
the WTO Secretariat recalls the fact t hat "Publicly owned entities continue to be a major source of 
revenue, and are used as industrial development or food security policy tools". In para 3.136 the 
WTO Secretariat notes that "the Government retains control over some already entirely or partly 
privatized enterprises".  
EU Question N°16 : Given that the WTO Secretariat reports that there are no data available on 
trade carried out by those STEs/SOEs, how can Chinese Taipei justify that only two companies are 
listed as STEs, namely the Central Engrav ing and Printing Plant and the Food Agency that controls 
65% of total rice imports? What is the rationale for not notifying "Taiwan Tobacco & Liquor Corp" 
listed in table 3.8 or "Taiwan Sugar Corp." given that those enterprises are deemed to export 
accordi ng to the WTO Secretariat?  
Answer : 
The tobacco, alcohol and sugar markets in the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu have been fully liberalized. The Taiwan Tobacco and Liquor Corporation (TTLC) 
and the Taiwan Sugar Corporation ( TSC) no longer enjoy either monopoly or privilege with respect 
to the manufacture or sale of tobacco, alcohol or sugar. Therefore, TTLC and TSC do not fall under 
the scope of the definition of state trading enterprises as provided for in Article XVII of th e GATT 
1994 and thus are not required to notify.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.6 Government procurement  
3.141 and 2.17  
Page 83 para 3.141 shows that total procurement covered under the GPA is about 20% of the total 
government procurement value while Page 31 para 2.17 refers to the forward looking infrastructure 
development programme which covers a number of sectors such as railways, water, green energy 
etc. The EU is aware of the relative diffi culty for international business to be aware of public 
procurement opportunities and seize opportunities.  
EU Question N°17:  Given the scope of the above mentioned programme, does Chinese Taipei have 
any idea already of the magnitude of the projects that wi ll be concerned and of the possible resort 
to public procurement to fulfil the objective of development of the necessary infrastructure? Could 
one reasonably expect that more than 20% of the total government procurement value would be 
open to foreign bidde rs?  
Answer :  
1. Under the special act governing forward -looking infrastructure projects, the program will be 
funded by a special budget of NT$420 billion (US$13.9 billion) over four years (September 2017 
- August 2021).  
2. Execution of the infrastructure projec ts in the program shall be in accordance with the 
Government Procurement Act, which includes rules on the participation of foreign suppliers.  
3. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has been a member of 
the WTO Agreement on Gover nment Procurement (GPA) since July 15, 2009. Procurements 
covered by the GPA are conducted in accordance with the GPA rules and are open to suppliers WT/TPR/M/377/Add.1  
 
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  of GPA members. For non GPA -covered procurements, the procuring entities may decide whether 
to allow the p articipation of foreign suppliers. Therefore, it is difficult to estimate the share of 
the total government procurement value that would be open to foreign bidders.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.1.2 Trademarks  
3.163  
"During the review period, the Trademark Act was amended in December 2016 to exclude application 
of confiscation/seizure provisions of the Criminal Code and to maintain the absolute obligation of 
confiscation under Article 98 of the Trademark Act. "  
EU Question N°18:  What is the reason for this amendment and what could be the practical 
consequences in terms of range of sanctions in case of infringement?  
Answer :  
1. According to the amendment to the C riminal Code that took effect on July 1, 2016, provisions 
on confiscation stipulated under other laws prior to the said effective date will no longer be 
applied. However, in order to apply the new provisions of the criminal code, the ownership as 
well as l egitimate grounds for obtaining infringing goods shall be ascertained. The addition of 
burden of proof for ex officio confiscation and ascertaining process would compromise the 
efficacy of combating counterfeiting. Therefore, in order to maintain the absol ute obligation to 
confiscate infringing goods under the Trademark Act, the Trademark Act was amended in 
November of 2016 and entered into force in December, 2016.  
2. All articles or documents that constitute infringement of rights in trademark, certification  mark, 
or collective trademark shall be confiscated, regardless of whether such articles or documents 
belong to the offenders.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.1.2 Trademarks  
3.165  
"Despite the existence of relevant legal and penal provisions, reportedly there are concerns 
regarding the seemingly unauthorized use by Chinese Taipei companies of luxury brand logos and 
other promotional materials, thus creatin g a false impression that trademark owners act as sponsors 
or conduct co -marketing activities with these companies".  
EU Question N°19:  The EU would appreciate further information from the authorities on the 
magnitude of these practices and on their efforts  to fight such illegal practice and on the results in 
combatting such practices.  
Answer :  
Regarding whether a third party using luxury products as promotional gifts constitutes trademark 
infringement, TIPO hasn't reached any conclusion despite having exami ned relevant laws and 
inquired relevant practices of other countries. Should a trademark proprietor believe that the said 
promotional activity infringes its trademark rights, the proprietor may file a lawsuit with a court of 
law or report it to the Crimina l Investigation Corps and then await adjudication by our judicial 
authorities.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.1.3 Geographical indications  
3.166  
"A system of notification and registration of GIs for wines and spirits that is based on voluntary 
participation remains in place".  
EU Question N°20:  Could Chinese Taipei give further clarifications as to the legal establishment, 
effects of registration and future deve lopments regarding the GI register?  WT/TPR/M/377/Add.1  
 
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  Answer :  
1. We would like to clarify that regarding "a multilateral system of notification and registration of 
GIs for wines and spirits," which is one of the issues debated in the TRIPS Council of the WTO, 
no conclusion has yet been made, and we do not have a system of notification and registration 
of GIs for wines and spirits that is based on voluntary participation in place.  
2. Geographical indications (GIs) may be registered with TIPO as geographical certification marks, 
or geographical collective trademarks. If a third party uses the certification mark/trademark 
without consent of its proprietor(s) and hence there exists a likelihood of confusion on relevant 
consumers, the said party may be held civilly and criminally lia ble for infringement of rights.  
3. The GIs for wines and spirits we recognized under bilateral agreements have been uploaded to 
TIPO's databases as reference for trademark registration examination and used to prevent the 
registration of a third party's mark.  
EU Question N° 21:  How do the authorities enforce the 2015 amendment to the Tobacco and 
Alcohol Administration Act requiring alcoholic drinks entering the market to carry the original 
manufacturer's lot code? What steps have been taken or are envisaged to ensure that this 
requirement is enforced?  
Answer :  
1. On June 12, 2006, the Ministry of Finance issued an announcement that "importers may make 
their own number on the label of the imported alcohol product as a substitute for the number of 
production batch if  there is no production batch number on the label of that product. However, 
such a newly made number on the alcohol product should be traceable to each Customs import 
declaration or counter checked with the import inspection application so as to facilitate  later 
traceability and recall of the product thereafter." The requirement of labelling "batch numbers" 
on alcoholic bottles stipulated in the Tobacco and Alcohol Administrative Act and amended on 
June 18, 2014 is actually not a new requirement but is inte nded to help relevant businesses 
comply with the regulations in order to facilitate implementation.  
2. When the competent authority finds alcoholic products without labelled batch numbers during 
market audits, the importers will be notified to correct this wi thin a specified period of time, and 
may not continue to sell the mislabelled item until the correction is made, according to provisions 
in Paragraphs 1 and 3 of Article 50 of the Tobacco and Alcohol Administration Act. If the 
correction has not been made by the deadline, further penalties will be imposed for each 
violation, and the violating tobacco or alcohol products will be confiscated. The sale of tobacco 
or alcohol products not in compliance with the regulation will result in forfeiture of the said 
products.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.2 Copyright and related rights  
3.173  
"The remainder of the draft amendment of the Copyright Act, including the Standard s for 
Compensation for Fair Use of Works in Paragraph 4 of Article 47 of the Copyright Act which includes 
works of unknown copyright owners and registration of copyright pledges, is still under review due 
to ongoing discussion regarding the adjustment of t he compensation rate."  
EU Question N°22:  Could Chinese Taipei explain further the mechanism of compensation, notably 
which kind of non -authorised uses of protected works is covered and the current and the future 
proceeding for the establishment of the rate ? Regarding the amendments to the Copyright law, is 
Chinese Taipei going to extend the terms of protection from 50 to 70 years and to introduce a legal 
basis allowing foreign websites blocking?  
Answer :  
1. In fact, Article 47 of the Copyright Act cited in the  first question  has been modified into Article  57 
in the 2017 draft amendments to the Copyright Act, which allow the expansion of the scope of 
fair use to public transmission under the following conditions:  
(1) For the purpose of compiling textbooks required to be examined or edited by laws or 
regulations, the works of another person that have been publicly released may be reproduced 
or adapted. The textbooks may be distributed or publicly transmitted by the comp iler. In 
addition, the compiler of the textbooks may also reproduce, adapt, or distribute works of 
another person if he/she does so for the purposes of making supplementary teaching aids WT/TPR/M/377/Add.1  
 
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  which come along with the textbooks and which are exclusively provide d to teachers for 
teaching.  
(2) In the aforementioned circumstances, the exploiter of the work shall notify its economic 
rights holder and pay compensation for the use. The compensation rate in such cases shall 
be set by the competent authority.  
Currently, th e 2017 draft amendments are still under legislative review. Therefore, the 
evaluation of whether the rate needs to be adjusted or not will only be possible when the draft 
amendments are passed by the legislature, and after factors such as how the rate is r eally being 
used in the market as well as opinions from related industries have been taken into account.  
A quick clarification: The 2016 amendments to the Copyright Act were aimed at the alignment 
of existing provisions with the new chapter on "Confiscatio n" of the Criminal Code. They have 
nothing to do with the compensation rate in question, which is stipulated in the 2017 draft 
amendments.  
2. As for the second question, the current term of protection for copyrighted works is life time plus 
fifty years or fif ty years after publication, which are already in line with WTO/TRIPS requirements. 
With regard to the extension of the term of protection, as the issue remains highly controversial, 
it has not been included in the draft amendments this time around.  
3. With r egard to the issue of blocking foreign rogue website, we proposed website -blocking draft 
amendment in 2013 and 2017 separately. However, the proposal was met with huge opposition 
from different sectors, as people feared that their access to information and  freedom of speech 
would be severely compromised. From such examples where similar proposals have been 
dropped again and again due to public backlash, it is obvious that the blocking of websites is 
easily associated with the subject of freedom of speech, h ence making it highly sensitive, it is 
believed that more prudent feasibility studies are needed and such decisions should not be 
rushed hastily.  
4. In addition, TIPO has studied the practices of the other WTO members that adopt similar legal 
systems and found no website -blocking practices in their judicial systems. Hence, we believe 
that more research and evaluation need to be done before any moves ar e made on this front.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.2 Copyright and related rights  
3.174  
"In October 2017 a draft amendment to the Copyright Act comprising 1 45 articles expected to 
change 80% of the current provisions was approved. "  
EU Question N°23:  Could Chinese Taipei explain further the reform as regards the revised 
definitions of "public broadcasting" and "public " and the adjusted provisions on fair use  of copyright 
works by the general public?  
Answer :  
1. The revision of the definition of "public broadcasting" was made with the aim to accommodate 
possible future technological developments. As such, in addition to keeping conventional means 
of wire or wireless broadcast that are already listed in the current Act —that is, the usage of term 
"broadcast" is kept in order to stay in line with the usage of that term in international treaties 
and legislations of many countries —"other similar means" were also a dded and enumerated in 
the draft amendments in question. This is an addition that will give more flexibility to the 
provision by allowing it to cover possible new means of broadcasting —that is, means that can 
achieve the effect of communicating to the publ ic—that might emerge in the future. For example, 
live internet broadcasting, a practice that is currently in place, is something that falls into the 
category of "other similar means of broadcasting". Also, to emphasize that public broadcasting 
means broadc asting of real -time, linear programs, the word "simultaneous" is added in the draft 
amendments after taking references from related Japanese legislations.  
2. No changes have been made to the definition of the term "public" in the current Act.  
3. As the fair use provisions in the current Act no longer satisfy the demands of today's network 
and digital era, draft amendments were made to fair use -related provisions covering the 
following areas: use for legislative or administrative purpose; use for judicial and admi nistrative 
procedures; use for educational purposes; use of works of public juristic persons; quotations 
from works; use for non -profit purposes; community antennas, computer program backups; and 
the republishing of current event -related materials. New fai r use provisions related to distance 
learning and digital collections of public libraries were also added in the draft amendments after WT/TPR/M/377/Add.1  
 
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  taking reference from related legislations in other countries.  
4. In addition, regarding the limitations on economic right s set out in Articles 44 to 63 of the current 
Copyright Act, the applicability of those articles depends, in addition to the requirements in the 
respective articles, on the catch -all requirement of whether the use falls "within a reasonable 
scope," which m ust be examined based on the four criteria for fair use set out in Article 65. To 
more clearly define the limitations on economic rights, the amendment clearly specifies the 
requirements for the application of the respective limitations originally set out in Articles 44 to 
63, and deletes the requirement of "within a reasonable scope" (except in Article 51 of the 
current Act, regarding private reproduction). So it is no longer necessary to further examine 
those types of fair use under the catch -all fair use  requirements of Article 65 of the current Act, 
exploitation will now be permitted as long as the requirements of the respective individual 
articles are met. Besides, the exploitation not covered by Articles 44 to 63 is permitted when it 
meets the four cri teria for fair use set out in Article 65.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.3 Enforcement  
EU Question N°24:  Could Chinese Taipei provides more details on the ongo ing discussions 
regarding enforcement of IPR notably as regards the fighting against online piracy? Given the 
importance of online IPR infringements originating from websites outside the jurisdiction of Chinese 
Taipei, what is the state of cooperation with  concerned third countries regarding those situations?  
Answer :  
1. We have always placed importance regarding IPR protection. Digital infringement such as piracy 
rogue sites and equipment for illegal streaming, in particular, have in recent years been targeted 
for in -depth analysis and proactively dealt with. To fight online piracy, our efforts includes: (1) 
the Criminal Investigation Bureau (CIB) holds a scientific research and development section, 
responsible for tasks concerning information -processin g, communications, and digital forensic 
investigation works, to improve its digital forensic technologies, and to promote the research, 
development, and use of professional equipment; (2) the Criminal Investigation Brigade (CIBr) 
as well as criminal police  forces around our territory have all allocated budget to set up 
investigation task -forces specializing on technology crimes, in the hope of delivering tougher law 
enforcement and making better use of relevant equipment, thereby curbing infringement on the  
internet; and (3) many workshops on internet intellectual property infringement investigation 
and practices are held to strengthen enforcement personnel's cybercrime investigation skills and 
to facilitate investigation of relevant cases.  
2. Intellectual Prop erty Office (IPO), Ministry of Economic Affairs and Ministry of Justice (MOJ) have 
co-hosted the "Set -Top Box and Copyright Act" seminar on July 17th, 2018. They have invited 
staffs from prosecutors' office, judges and judicial polices to discuss relevant issues regarding 
online IPR infringements and dilemmas of law practice, expecting to find out the solution and 
trying to improve the efficiency of maintaining law order. As to the revision of Copyright Act (the 
Act), IPO is now drafting the new edition of the Act. MOJ has also collected the opinions from 
relevant institutions in the aforementioned seminar, expecting to reach the consensus with these 
institutions, and offering it as an important reference for the revision of the Act.  
3. According to reports by right holders, most overseas rogue websites targeting our audience are 
based in foreign countries. As such, we have sought assistance from our counterpart through an 
MOU on IPR enforcement cooperation with the US, by asking it to help shut down such infrin ging 
websites in the US. In addition,  under the coordination of TIPO, rights -holders and advertising 
groups have reached a voluntary agreement on Infringing Website List (IWL), which would 
discourage advertisers from placing ads on infringing websites, the reby disrupting the revenue 
flow of the infringers. Besides, TIPO has promoted cooperation between rights -holders and 
Google. Google also suggests these rights -holders to make good use of its copyright protection 
policy and mechanism. And in response, Goog le will take actions such as notice and take down, 
de-ranking, and termination of account to against infringing websites.  WT/TPR/M/377/Add.1  
 
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  3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.2 Quarantine regulations  
3.119  
The Bureau of Animal and Plant Health Inspection and Quarantine (BAPHIQ), under the COA, 
continues to be responsible for animal and plant quarantine as well as for quarantine services and 
prevention and control of impor tant animal and plant diseases and pests. The FDA remains in charge 
of the safeguarding, quality and sanitation of all agricultural imports. BAPHIQ is the WTO SPS enquiry 
point. COA's Agriculture and Food Agency (AFA) oversees such programmes as rice procu rement 
and organic certification  
EU questions N°25 : Chinese Taipei has unilaterally recognised 16 EU Member States as equivalent 
for organic production standards, however when European organic products arrive on the territory, 
they are inspected by the com petent authorities against compliance to local standards, which imply 
also a zero tolerance to pesticides, although coming from a drift or an unavoidable contamination, 
and zero tolerance to plasticisers in certain oil products which are unavoidable. What is the reason 
of such inconsistent behaviour towards what it is recognised as equivalent and when are the 
burdensome procedures going to be removed?  
Answer : 
Article 6 of the Imported Organic Agricultural Product and Organic Agricultural Processed Product 
Management Regulations provides that the COA may request that the applicant provide samples for 
inspection or testing when it is deemed necessary. Further, in accordance with relevant laws and 
regulations, prohibited substances of organic agricultural produ cts and processed products shall not 
be detected. We use the LOQ values prescribed by the Ministry of Health and Welfare to set each 
prohibited substance's "Not Detected" level and conduct sampling inspection or testing. The methods 
of such sampling inspec tion or testing apply uniformly to all imported and domestic organic products.  
4. Trade Policies By Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1.1 Characteristics and policy objectives  
4.6 
Page 99 section 4.1.1.1., para 4.6 and para 4.23 page 104  
"In 2016 Chinese Taipei has adopted a new Agricultural Policy including strategies and objectives" 
The latest DS:1 notification, forwarded in 2017, covers the years 2010 & 2011".  
EU Question N°26:  Can Chinese Taipei give an indication of the timing for the  notifications that 
are, according to the WTO Secretariat" to be done soon" - para 3.81 page 64 -? How do the authorities 
consider compatible the objective of import substitution with the WTO obligations regarding trade in 
agriculture?  
Answer : 
1.  The notifications will be submitted to the Secretariat by June 2019.  
2.  The import -substitution crops are free import items and are irrelevant to market access issues. 
The supply of domestically produced grains accounts for a very low proportion of domestic 
dema nd. Under the Adjusting the Cropping System and Revitalizing Fallow Land Program, 
farmers are encouraged to grow import -substitution crops to stabilize domestic food supplies 
and maintain food security, as well as to shorten food mileage.  
4. Trade Policies  By Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1.4.3 Special safeguard measures  
4.18 
"Over the last years Chinese Taipei has taken an increasing number of Special safeguard measures 
and the price -based SSG increased".  
EU Question N°27 : Taking into  account that self -sufficiency in many sectors is far less than the 
pursued objective of 40%, how does Chinese Taipei explain the need for the many SSG measures? 
Some of the SSG measures are taken after really small quantities have been imported (table 4.6 ), 
i.e. for red beans for instance 2kg. What is the rationale for such measures and is Chinese Taipei WT/TPR/M/377/Add.1  
 
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  considering to review its use of SSG measures with the view to allow imports to become more 
commercially viable?  
Answer : 
1. Implementation of SSG is in accor dance with our WTO accession commitments and Article 5 of 
the Agreement on Agriculture.  
2. We will review the SSG measures according to the outcomes of the DDA agricultural negotiations.  
4. Trade Policies By Sector  
4.2 Mining and Energy  
4.2.2.2 Electricity  
4.84 
"New incentive programmes are in place in order to help achieve renewable targets (Table 4.13). 
The 2 -Year Solar PV Project and the Green Energy Roofs Project are first steps towards meeting the 
goal of 3 GW of rooftop and 17GW of surface -based solar power installations by 2025. For each of 
these projects, the incentives take the form of "feed -in" tariffs. The authorities confirmed that there 
are no local -content requirements. "  
It seems that an obstacle to reach the solar energy production targets by 2025 is lack of available 
land for relevant scale solar production. Another plan to increase supply of land for energy production 
use is to let publicly owned land to this use.  
EU Question N°28 : Does Chinese Taipei have plans to amend the Agricultural Development Act to 
allow a change in the use of agricultural land to energy production? Are the authorities aiming to 
open international bids to foreign power generators? If so, when?  
Answer : 
1. Under the Regulations Governing Applications for Installing Farming Facilities on Agricultural 
Land, the Council of Agriculture promotes green energy development on agricultural land based 
on the premise of ensuring food security and sustainability. There is n o plan at this stage to 
amend the Agricultural Development Act for changing the use of agricultural land.  
2. According to the Renewable Energy Development Act, the feed -in tariff mechanism is 
implemented to support solar PV deployment. In the case of state -owned land or government -
planned areas of capacity allocation operations, there will be a project bidding mechanism 
without restrictions on foreign companies to participate in.  
4. Trade Policies By Sector  
4.4 Services  
4.4.5 Tourism services  
4.180  
Page 135 p ara 4.180 refers to new subsidy programmes for o verseas tours though para 
4.173  reports that visitor arrivals have increased year on year reaching 10.7 Million tourists in 2016. 
In addition it is noted that Chinese Taipei tries to promote sustainable touri sm and quality tourism 
but in fact fly -cruise subsidies per passenger can reach 30 dollars for groups of less than 300 fly 
cruise passengers and 50 dollars for groups of over 600.  
EU Question N°29:  Could Chinese Taipei give more details about such subsidie s- amounts, 
conditions, purpose - and their impact on the yearly flow of tourists/types of tourists?  
Answer :  
1. The purpose of these Directions for Fly -cruise Incentives from the Taiwan Tourism Bureau is to 
promote the development of fly -cruises by encouragin g international cruise lines that combine 
flights and cruises into packages to make the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu one of their ports of call.  
2. Conditions for incentives: Subsidies shall be given to cruise lines with a f ly-cruise schedule that 
includes accumulated layovers in the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu of 48 hours or more. The amount of the subsidy will be based on the number of 
passengers on the cruise ship.  WT/TPR/M/377/Add.1  
 
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  WT/TPR/G/377 – Governme nt Report  
9. Government Report  
3 Development of Trade and Investment Policies  
3.2 Trade and Investment Policy  
Page 7 para 3.6 on the New Southbound Policy and its "connectivity" dimension. "Specifically, the 
New Southbound Policy is designed to boost links  with partners in this region through activities in 
the following four key areas: (…) Regional connectivity: Expanding institutional cooperation with 
partner countries and strengthening consultation and dialogue. Effectively utilizing private groups, 
overs eas expatriate networks, and other channels to enhance stability and prosperity in the region".  
EU Question N°30:  Could Chinese Taipei give more details about the settings for regional 
cooperation in this regard and how the private sector is involved, what are the main players involved?  
Answer :  
1. Regional cooperation:  
(1) The New Southbound Policy has changed our engagement priorities with Southeast Asian 
countries from foreign trade and investment to comprehensive bilateral exchanges with 
Southeast Asian countries. To promote this policy, we are striving to make full use of our 
soft power, optimizing the resources  as well as efforts of various ministries, local 
governments, and civil society.  
(2) Currently, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is focusing 
on cooperation in the areas of medical and health care, agriculture, disaster rel ief, and 
education in order to strengthen regional linkages, such as:  
 Encouraging our hospitals to cooperate with Southeast Asian countries in the training of 
medical and health personnel.  
 Establishing agricultural model zones and assisting farmer organiza tions.  
 Sharing experiences and providing assistance in disaster relief.  
 Encouraging student exchanges and talent training for industries.  
2. Involvement of the private sector:  
Our government and private sector are jointly promoting the New Southbound Policy:  
(1) Cultivating human resources for industry: We encourage our universities to collaborate with 
local industries to provide courses to match the needs of our overseas businesses, and 
encourage students from the region to study in the Separate Customs Terri tory of Taiwan, 
Penghu, Kinmen and Matsu.  
(2) Encouraging our experienced entrepreneurs abroad and expatriate business associations to 
share their experiences and assist enterprises wishing to explore the regional market.  
9. Government Report  
3 Developmen t of Trade and Investment Policies  
3.5 Labor reform  
Page 9 labour reform: The EU notes the reform of the Labor Standard Act in force since last March 
and the willingness of the authorities to monitor enforcement.  
EU Question N°31:  Could Chinese Taipei give  more details about the institutions in charge of 
monitoring enforcement and the sanctions in case of infringement to the legislation?  
Answer :  
1. In implementing labor inspections, the Ministry of Labor adopts the principle of division of labor 
between the central and local governments. The central government is responsible for labor 
safety and health, while supervision and inspection related to the Labor Standards Act are carried 
out by local competent authorities. At present, there are 337 inspectors for l abor conditions.  
2. The Labor Standards Act includes administrative penalties and criminal penalties. If the conduct 
of a business entity is deemed illegal, it shall be fined in accordance with the penalties prescribed 
in the Act. According to Article 79 of t he Labor Standards Act, employers found to have violated 
provisions prescribed in Article 79 of the Labor Standards Act shall be subject to fines of between 
NT$20,000 and NT$1,000,000. In addition, according to Article 80 -1 of the Labor Standards Act, 
when  a business entity is fined for violating the Act, the competent authority shall publicly 
announce the name of such business entity or its owner(s), the person(s) in charge, and shall 
also order such business entity to make improvements within a specified period; failure to make 
those improvements shall be subject to consecutive fines. The competent authority may 
determine the amount of the fine in accordance with the number of employees that the violation 
involves, the number of violations accumulated, or the amounts to be paid according to the law.  WT/TPR/M/377/Add.1  
 
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  9. Government Report  
3 Development of Trade and Investment Policies  
3.7 Regulatory Reform and Liberalization  
Page 13: fisheries management reform.  
EU Question N° 32 : The EU notes the reforms adopted and would li ke to ask Chinese Taipei if there 
are any available statistics regarding the results of the renewed fight against IUU, for example 
regarding recidivism?  
Answer : 
1. With all the fisheries management measures and the new policies on combating IUU fishing, we 
have continued to rectify the compliance records in relevant RFMOs. As a result, significant 
improvement has been achieved.  
2. Our non -compliance record in the ICCAT, IATTC and CCSBT remains low or non -existent. As for 
the WCPFC and IOTC, the non/partial -compl iance records are decreasing year by year. For 
instance, between 2012 and 2017, the level decreased from 20 to 5.  
9. Government Report  
3 Development of Trade and Investment Policies  
3.9 Digital Economy  
Page 16 para 3.28 on the digital economy  
The Financial  Technology Development and Innovative Experimentation Act that came into force on 
30 April 2018 sounds like a positive step to promote innovation in the financial services sector. In 
this regard, the EU would appreciate clarification on the ability of ove rseas financial services 
providers to take part in this mechanism and the extent to which Chinese Taipei will encourage 
foreign fintech providers to support the development of this sector of the economy?  
EU Question N°33 : Could Chinese Taipei further expli cit the conditions under which this flexibility 
applies?  
Answer :  
1. The experimental mechanism for FinTech innovation applies to both domestic and foreign 
applicants. Foreign individuals, sole proprietorships or partnerships and companies are welcome 
to apply for experiments. Therefore, financial services providers from all over the world may be 
stationed in our jurisdiction to test innovative financial products or services if they have feasible 
innovative ideas. The FSC will be happy to offer assistance.  
2. In addition to the experimental mechanism, the FSC also encourages overseas financial services 
providers to develop their innovative financial products or services in our jurisdiction. It has 
launched many major initiatives, such as:  
(1) Setting up a "FinTech  Space", a physical cluster for incubating FinTech startups and 
facilitating related collaboration, including with foreign corporations. It provides services of 
nurturing, match -making with investors and business partners and working space, enables 
collabo ration among companies, academia and research organizations, and builds strong 
global networks.  
(2) Signing FinTech cooperation agreements with foreign financial regulators so as to strengthen 
mutual collaboration, thus assisting FinTech companies to expand in to each other's markets.  
(3) Holding the FinTech Taipei 2018 (FinTech festival) to create a platform for idea exchange for 
FinTech talent and business opportunities. Enterprises from around the world will be invited 
to the festival to participate in the exhibi tion and develop new ideas.   
3. For further information on the Financial Technology Development and Innovative 
Experimentation Act, please visit 
https://law.moj.gov.tw/Eng/LawC lass/LawContent.aspx?PCODE=G0380254 . 
  WT/TPR/M/377/Add.1  
 
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  3  CANADA  
WT/TPR/S/377 – WTO Secretariat Report  
0. Summary / Abstract  
0.14 
Public -sector  involvement in the economy persists as privatization efforts remain widely opposed. 
Public -sector participation continues to be spread over several activities including rice, sugar, 
tobacco and liquor, petroleum, aerospace, shipbuilding, electricity, wate r supply, banking and 
finance, engineering, and postal services.  
Question 1:  
Can Chinese Taipei please elaborate on the types of public -sector participation in the shipbuilding 
industry aside from the fishing vessel programs mentioned on page 111, Table 4. 11? 
Answer :  
The CSBC shipbuilding business was a state -owned enterprise before 2008. The types of shipbuilding 
include container vessels, tankers, bulk carriers, and specialized vessels (such as DCC and tug 
boats). However, CSBC was privatized on December  18, 2008. At present, only 28.17% shares of 
the CSBC are owned by the MInistry of Economic Affairs.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
3.3.2.1.1 Voluntary , compulsory and aligned standards  
3.100.  
The Secretariat Report indicates that in December 2015, amendments to the School Health Act 
banned the use of processed food with biotechnology ingredients in school meals. The report states 
that this ban of geneti cally modified (GM) ingredients was not supported by scientific evidence and 
contradicted the GM food approval list issued by the MOHW (Section 3.3.3.1). The report further 
notes that, as of April 2018, a WTO notification for these amendments was still pen ding. 
Question 2:  
Could Chinese Taipei indicate if they intend to notify these amendments to the WTO, and if so, when?  
Answer :  
We will issue relevant notification to the WTO as soon as possible.  
Question 3 : If, as the report states, this ban was not suppo rted by scientific evidence, could 
Chinese Taipei elaborate on the factors, criteria or information used to justify such a ban?  
Answer : 
Our legislators, based on international concerns regarding the reported safety of genetically modified 
foods, banned the use of processed food with biotechnology ingredients in school meals in order to 
take extra precautions in the face of potential risks of uncertainty, particularly for students who are 
in a period of physical and mental maturation. We will continue to communicate with lawmakers on 
this issue.  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.1 Food standards -setting framework  
3.114  
The report states as follows: "Rep ortedly, Chinese Taipei's slow process for establishing MRLs for 
pesticides, low number of approved MRLs, and zero tolerance policy for pesticides without 
established MRLs have resulted in incoming agricultural shipments being stopped at the ports of 
entry  and other restrictions. Concerns also relate to MRLs that are considered not Codex standards - 
or science -based."  
Question 4:  Does Chinese Taipei have a standard timeline for establishing MRLs or import MRLs for 
pesticides?  WT/TPR/M/377/Add.1  
 
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  Answer :  
In general, if the applicant can prepare all relevant documentation, it takes approximately two years 
in most cases to finalize an MRL application. The review time may vary due to the complexity of the 
case. An application with insufficient data will result in the establishm ent of the MRLs being impeded.  
Question 5: Does Chinese Taipei publish the results of assessments of risk conducted when 
establishing pesticide MRLs that are not based on Codex standards?  
Answer :  
In the Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu, the establishment of food 
safety related standards is based on the standards of Codex, dietary patterns, and the risk 
assessment conducted by us. International and developed countries' food safety standards are also 
taken as references, and th e risk assessments of the application must meet the requirements of 
standards before the MRL can be established as a result. After the administrative and legislative 
processes of MRL establishment are completed, the new MRL will be announced on the TFDA we bsite 
and the WTO SPS Committee notified.  
Question 6:  What is Chinese Taipei's procedure for establishing MRLs or MRLs that are supported 
by data generated in another jurisdiction (import MRLs) for pesticides?  
Answer :  
The procedures for establishing toler ance levels of pesticide residues in the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu are as follows:  
1. Prepare all relevant documentation and apply with the competent authority;  
2. Carry out risk assessment procedures;  
3. Convene an expert consu ltation committee to review the application;  
4. Commence administrative procedures for the draft and official document, including 
pre-notification, public announcement and notification to WTO;  
5. Officially announce the regulatory order.  
Question 7 : How does Chinese Taipei take Codex standards into account when establishing 
pesticide MRLs?  
Answer :  
In the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, the establishment of food 
safety related standards is based on the standards of Codex, dietar y patterns, and the risk 
assessment. The food safety standards of developed countries are also taken into consideration as 
references in order to harmonize our standards with international standards.  
4. Trade Policies By Sector  
4.1 Agriculture, Forestry, a nd Fisheries  
4.1.1.1 Characteristics and policy objectives  
4.6. 
According to this section of the Trade Policy Review of Chinese Taip ei, the country adopted its 
New Agricultural Policy in 2016. One of the objectives (pillars) of the policy is "formulating a  safety 
system for agricultural products". To achieve this objective, the government is planning to 
implement the "Big Granary Project" for non -GMO grain production areas. In addition, according to 
the information from Chinese Taipei Government, Chinese Ta ipei will also be undertaking strategies 
to rebuild the grain crop industry, increasing the land area by about 30,000 hectares by 2020.  
Question 8:  Could Chinese Taipei provide more details on the "Big Granary Project" including how 
it will be implemented?   
Answer :  
The "Big Granary Project" is implemented with the following goals:  
1.  Establish a cultivation service system for scale expansion: Advise farmers who participated in 
the previous "Small Landlord Big Tenants" program or young farmers to transfer their cultivation 
to coarse grain crops. They are also given support to purchase agricultural machinery. Adopting 
this project will be helpful in building a sound cultivation service system, enabling the expansion 
of cultivation scale.  
2. Establish production  clusters and post -harvest treatment centers: Introduce contract farming to WT/TPR/M/377/Add.1  
 
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  form a union so that they can collectively formulate production plans, purchase materials, and 
implement pest prevention measures, leading to the establishment of production cluste rs and 
regional post -harvest treatment (drying) centers. Furthermore, entrepreneurial management 
and marketing are also introduced for a better connection with the retail end.  
3.  Introduce traceability and certification schemes to create market differentiat ion: Set up systems 
that improve product safety via traceability like TAP certification, CAS, organic, or traceability 
QR codes to coarse grain producers, which provide information for consumers.  
4.  Develop diverse processed products and adopt new marketing approaches to realize the 
consumption of locally produced items: Counsel industries to develop processed products made 
from domestic coarse grain to enlarge market demand, which would lead to greater production 
capacity. The products can be introduced thro ugh channels such as direct marketing, farmers' 
markets, trade fairs, or special exhibitions. Other outlets such as supermarket chains, hyper 
malls, retailers operated by farmers' and fishermen's associations, and online stores are also 
being explored for marketing.  
Question 9: Could Chinese Taipei elaborate on why the "Big Granary Project" under Pillar II of its 
New Agriculture Policy (Formulating a safety system for agriculture products) is limited to non -GMO 
agricultural products?  
Answer :  
According to  Article 52 of the Plant Variety and Plant Seed Act, without the approval of the central 
competent authority, the importation or exportation of transgenic plants is prohibited. Unless the 
applicant has obtained approval from the central competent authority  to conduct field testing, passed 
the field examination, and submitted the documentation of the approval as issued by the central 
competent authority concerning the main purposes as declared in the application, a transgenic plant 
imported from abroad or br ed domestically is prohibited from domestic promotion or sale. 
Accordingly, there is a two -stage process that any transgenic plant must pass before it can be legally 
promoted or planted for production in the Separate Customs Territory of Taiwan, Penghu, Ki nmen 
and Matsu.  
Question 10:  Does Chinese Taipei's New Agricultural Policy involve any biotechnology and 
innovation initiatives?   
Answer :  
1.  "Developing innovative agriculture" is one of the New Agricultural Policy strategies. It is expected 
to promote agricultural transformation and upgrading through cross -domain cooperation and the 
introduction of new technologies.  
2.  The ongoing "Smart Agriculture" plan focuses on strengthening automatic/intelligent 
development and the application of mechanical equipmen t to save labor and energy, improve 
agricultural operative effectiveness, and stabilize production capability and the sale of 
high-quality agricultural products. As for the Agricultural Bioeconomy Development Program, its 
main targets include crops, livest ock industries and aquatic industries, such as new plant and 
animal species and seedlings, the agricultural genomics technology platform and plant and 
animal health management (including vaccines, biologics and testing). The strategies can be 
enforced base d on technology and environment approaches.  
4. Trade Policies By Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1.5.1 Notified support levels  
4.24 - 4.25 
According to the Review Document, the current total Aggregate Measurement of Support (AMS) in 
Chinese Taipei reached NT$8 billion in 2012, up from NT$7.2 billion  in 2011, and NT$3.9 billion 
in 2010 and 2009 respectively. Over the period 2009 -12, the product -specific support increased 
from NT$4.2 billion to NT$9 billion; with the most significant su pport going to rice. However, an 
important trend is increased support for vegetables. Support for vegetables increased from 
NT$217  million to NT$634 million over the same period.  
Question 11:  Since Chinese Taipei is encouraging the production of soybeans, wheat and corn 
(Table 3.7, p.79), did the product -specific AMS for these commodities increase over the review 
period as it did for rice and vegetables?  WT/TPR/M/377/Add.1  
 
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  Answer :  
1. Since 2011, the "Support for Diversified Crops" project has been put forth to encourage the 
cultivation of import -substitution crops that are in high demand domestically, with the aim of 
increasing the value of farmland. Product -specific support for soybeans and feed corn has 
increased over the review period. Wheat did not receive any support.  
2. Since  2013, the estimated product -specific support for soybeans, wheat and feed corn has 
increased due to the "Adjusting the Cropping System and Revitalizing Fallow Land" measures 
being put forth to encourage cultivation of import -substitution crops that are in  high demand 
domestically with the aim of revitalizing farmland and increasing the domestic food supply.  
Question 12:  Could Chinese Taipei provide more details on why the AMS increased during the 
reviewed years? Has there been any change to this upward tre nd since the end of the review period?  
Answer :  
There is no significant upward trend in the AMS over the review period.  
WT/TPR/G/377 – Government Report  
9. Government Report  
3.6. 
Resource sharing: Capitalizing on the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu's soft powers to promote bilateral and multilateral cooperation in culture, tourism, medical 
care, technology, agriculture, and small and medium -sized enterprises. The aim of this outreach is 
to improve the quality of life in partn er countries, as well as to create opportunities for deepening 
the economic engagement of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
with the respective partners.  
Question 13:  The report indicates that the aim of these outreach are to improve the quality of life 
in partner countries, could Chinese Taipei elaborate on how these improvements on quality of life 
are realized through these outreach efforts?  
Answer :  
1. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has a ccumulated a great 
deal of experience in improving medical care, education, technology, and agriculture, as well as 
in assisting the development of small - and medium -sized enterprises. We are willing to share 
our experiences with our partner countries.  
2. Taking natural disasters as an example, the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu has accumulated abundant disaster relief experience and is home to the 
largest fire training centre in Asia. We can carry out cooperation with partner c ountries in disaster 
prevention capacity enhancement and emergency assistance to reduce injuries, casualties and 
economic loss.  
3 Development of Trade and Investment Policies  
3.3 Industrial Policy and Reform  
Para 3.10.  
Chinese Taipei's Industrial Policy an d Reform focuses on achieving industrial innovation, job creation, 
equitable wealth distribution, and sustainability under seven (5+2) innovative industrial pillars: the 
Asia Silicon Valley, Smart Machinery, Green Energy Technology, Biomedical Industry, De fense 
Industry, New Agriculture, and the Circular Economy.  
Question 14 : To translate these Industrial Policy and Reform policy into trade terms, how does 
Chinese Taipei envision to work with partners in cooperation in these seven areas?  
Answer : 
1. We are act ively cooperating with partner countries in many aspects, such as technology 
innovation, international marketing, talent exchange, and so on. In terms of technology, since 
innovation is an important part of our agenda, we are enhancing linkages with renown ed 
technology clusters worldwide, such as Silicon Valley. And we launched ASVDA Bay Area Office 
in 2017 so as to integrate resource and establish networks of industries and research institutes. 
In addition, in order to promote international cooperation in Smart Machinery and the Circular 
Economy, the Industrial Development Bureau (IDB) assists the private sector in connecting with WT/TPR/M/377/Add.1  
 
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  multinational companies and adopting international technology trends through bilateral 
cooperation forums, business match making  and delegation visits to create mutual cooperation 
opportunities for both sides.  
2. In terms of New Agriculture, we have developed the platform for bilateral agricultural cooperation 
with partner countries to discuss issues and cooperation projects based on mutual interests. 
Through the implementation of the New Agriculture Policy, we have strengthened cooperation 
projects on developing new agricultural technologies, securing food security and food safety, and 
enhancing agricultural marketing and sustainabili ty with our partner countries.  
3. We welcome the interest of any WTO Members who are interested in participating in the 
above -mentioned areas.  
Question 15 : Are there any specific trade incentives to encourage trade especially in these seven 
areas? If so, could Chinese Taipei elaborate on these incentives and the anticipated timeframes?  
Answer :  
No specific trade incentives are provided to encourage trade in those seven areas.  
General / Unspecified / Other Questions  
In the World Bank Report on Doing Business: Reforming to Create Jobs, it is mentioned that different 
organizations can now issue certificates of origin.  
Question 16 : Are there any penalties for exporters that prepare fraudulent certificates of origin?  
Answer :  
1.  Under Article 28 of the Foreign Trade Act, an exporter/importer who uses false certificates of 
origin may be issued a warning, imposed an administrative fine o f an amount not less than 
NT$30,000 (about US$976) and not more than NT$300,000 (about US$9,767), or banned from 
exporting or importing goods for a period not less than one month and not more than one year. 
In a serious case, its export/import registration  can be revoked.  
2. Exporters that provide fraudulent certificates of origin, and are involved in criminality shall be 
referred to the competent judicial authority for investigation. If the investigation finds the 
documents to be indeed fraudulent, exporters may be punished for offenses of forging 
instruments or seals under the Criminal Code.  
Question 17:  What steps has Chinese Taipei taken to ensure the integrity of electronic certificates 
of origins generated in either China or Chinese Taipei?  
Answer :  
1. Currently, only the electronic data of certificates of origins under the Cross -Straits Economic 
Cooperation Framework Agreement (ECFA) is transmitted cross -border.  
2. The certificates of origin issued by the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu are managed by an online operating system, covering application, issuance, 
transmission and storage. To ensure the integrity of electronic certificates of origins, the 
electronic data is encrypted during transmission.  
  WT/TPR/M/377/Add.1  
 
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  4  GUATEMALA  
WT/TPR/S/377 – WTO Secretariat Report  
2.TRADE AND INVESTMENT REGIME  
2.2 Trade Policy Formulation and Objectives  
Para 2.15  
Question 1 : 
Podría la delegación de Taipei Chino ampliar la información relacionada al Plan de Innovación 5+2, 
cuáles son sus principales objetivos y cuáles son sus líneas estratégicas más importantes?  
Answer : 
1. In order to spur industrial transformation and provide a new engine for economic growth, the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has prioritized the "5+2" 
innovative industries for development plan. These industries all share something in common, 
i.e., they all address domestic demand and possess local economic characteristics. Thus, it is 
our intention to use them as a nucleus to spur industrial transformation while pushing forward 
industrial growth for the next generation.  
2. This plan was formulated based on the core values of employment, innovation and (equitable 
wealth) distribution on the one hand, and attention to future, global and local links on the other. 
So this plan is also expected to create job opportunities and bring more balanced regional 
development.  
3. Innovation is important in our agenda, but challenges in the areas of technology, capital, talent 
and regulation occur during the process of promoting industrial innovation. To give impetus to 
the 5+2 plan, we are making every effort to provide countermeasures. For exam ple, we have 
enacted the Act for the Recruitment and Employment of Foreign Professionals, as well as issued 
the Employment Gold Card to certain foreign professionals, both of which aim to build a friendly 
environment that attracts international talent to w ork and live in the Separate Customs Territory 
of Taiwan, Penghu, Kinmen and Matsu.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
Page 93 (Para 3.175)  
According to the authorities, at the time of the previous TPR the Copyright Act was: consistent with 
the TRIPS Agreement and had implemented protection and enforcement standards as stipulated by 
the WIPO Internet Treaties (i.e. the WIPO Copyright Treaty and the WIPO Performances and 
Phonogram Treaty) as well as provisions on exceptions and limitations set by WIPO's Marrakesh 
Treaty to Facilitate Access to Published Works by Visually Impaired Persons and Persons with Print 
Disabilities.  
Question 2 : 
Cuales han sido las principales medida s que han tomado para la implementación del Tratado de 
Marrakech ?  
Answer :  
To mirror the exceptions and limitations provided by the WIPO Marrakesh Treaty, we revised Article 
53 of the Copyright Act in 2014 to expand the scope of exceptions and limitations  of copyrighted 
works for persons with disabilities (including the visually impaired, learning disabled, and hearing 
impaired or other persons with a perceptual disability). The amendment not only allows government 
agencies and non -profit organizations to produce accessible format copies for persons with 
disabilities, it also permits persons with disabilities and their representatives to produce such copies 
for non -profit and individual use. The change also allows the circulation and import of accessible 
format copies legally produced exclusively for use by persons with disabilities, in the hope of 
facilitating greater access to copyrighted works for them.  
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  5  EL SALVADOR  
WT/TPR/S/377 – WTO Secretariat Report  
2.TRADE AND INVESTMENT REGIME  
2.4 Investment Regime  
2.4.2 Business environment  
Page 39 (Para 2.47)  
Question 1 : 
"Teniendo en cuenta la importancia de las PYME en la economía del Taipéi Chino, agradeceríamos si 
pudiesen compartir información sobre ¿cuáles han sido las principales acciones realizadas en  el 
marco de la "La Ley de Desarrollo de la Pequeña y Mediana Empresa" revisada en enero de 2016 y 
los resultados más relevantes obtenidos hasta el momento a través de su implementación, 
específicamente en la promoción, desarrollo e inserción de este tipo de empresas en el comercio 
mundial."  
Answer : 
The Act for the Development of Small - and Medium -sized Enterprises was enacted in 1991. The 
amendment of Article 36 -2 made in 2016 was aimed mainly at encouraging small - and medium -sized 
enterprises to increase domestic employment and raise salaries for entry -level employees during 
times of economic downturn. SMEs that pay better salaries to employees can receive tax deductions 
to their income. This regulation was only implemented for a short period of time, as t he economy 
has recovered. We expect that future amendments to the Act will benefit SMEs by facilitating their 
participation in international trade.  
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  6  HONDURAS  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
3.126  
During the review period, the FTA was amended three times (4 February 2015, 24 June 2015 and 
14 June 2017). Its February 2015 amendments, covering 7 0% of its provisions, were considered the 
widest in range, the largest in scale and the most influential legal reforms since its entry into force. 
Significant amendments on the aspect of free competition included: the FTC's independence and 
exclusive respo nsibility for FTA enforcement; the distinction of free competition issues from fair 
competition issues; the threshold in the definition of monopolistic enterprises; the revision of merger 
regulations and investigation rules; and the establishment of an ant i-trust fund to subsidize expenses 
from litigation, to provide rewards for the reporting of illegal concerted actions, to support relevant 
research, education and advocacy, and to promote international cooperation.  
Question N°1:  Could the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  please 
provide details to define the monopolistic criteria?  
Answer :  
1. Definition (Article 7 of the FTA):  
(1) The term "monopolistic enterprise" as used in the FTA means any enterprise that faces no 
competition or has a dominant position to enable it to exclude competition in the relevant 
market.  
(2) Two or more enterprises shall be deemed monopolistic enterprises if they do not in fact 
engage in price competition with each other and they as a whole have the same status  as the 
enterprise defined in the preceding paragraph.  
2. Criteria (Article 8 of the FTA):  
(1) An enterprise shall not be deemed a monopolistic enterprise as defined in the preceding article 
if none of the following circumstances exists:  
(i) the market share of the enterprise in the relevant market reaches one half of the market;  
(ii) the combined market share of two enterprises in the relevant market reaches two thirds 
of the market; and  
(iii) the combined market share of three enterprises in the relevant market reaches three 
fourths of the market.  
(2) Under any of the circumstances set forth in the preceding paragraph, where the market share 
of any individual enterprise does not reach one tenth of the relevant market or where its total 
sales in the preceding fiscal year are less t han the threshold amount as publicly announced 
by the competent authority, such an enterprise shall not be deemed as a monopolistic 
enterprise. (The publicly announced threshold of the total sales at which an enterprise is 
exempted from being deemed as a m onopolistic enterprise is when its total sales in the 
preceding fiscal year is less than NT$2 billion).  
(3) An enterprise exempt from being deemed as a monopolistic enterprise by any of the preceding 
two paragraphs may still be deemed a monopolistic enterprise  by the competent authority if 
the establishment of such enterprise or any of the goods or services supplied by such an 
enterprise to the relevant market is subject to legal or technological restraints, or there exists 
any other circumstance under which th e supply and demand of the market are affected and 
the ability of others to compete is impeded.  
3.128  
The FTC may initiate investigations, upon receiving complaints or ex officio, into any alleged violation 
that harms the "public interest". Since November 2011, a leniency programme has been in place to 
encourage enterprises to report illegal concerted action, submit evidence and assist investigations. 
Where a violation related to monopolistic action, concerted action, resale price fixing, or other 
competiti on-restraining action is found, the FTC may order the relevant enterprise to cease the 
violation and correct its conduct within a prescribed period. The FTC may also issue an administrative 
penalty ranging between NT$100,000 and NT$50 million. If the relev ant enterprise fails to cease the 
violation or take corrective action, the FTC may issue an order with a higher administrative penalty WT/TPR/S/377 – WTO Secretariat Report  WT/TPR/M/377/Add.1  
 
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  ranging between NT$200,000 and NT$100 million until the enterprise complies with the FTC's order. 
In the case of serious violations related to monopolization and concerted action, the FTC may impose 
an administrative penalty of up to 10% of the total sales income of an enterprise in the previous 
fiscal year.  
Question N°2:  Could the Separate Customs Territory of Taiwan, Pengh u, Kinmen and Matsu  please 
provide statistics on the leniency program?  
Answer :  
The leniency program was introduced to the FTA in 2011. The FTC has received 15 leniency 
applications between 2011 and 2017. Among them, 3 were eligible for the leniency program.  
  WT/TPR/M/377/Add.1  
 
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  7  REPUBLIC OF KOREA  
10.  GENERAL / UNSPE CIFIED / OTHER QUEST IONS  
Question(s) Add. 1:  
The Railways Administration under the Ministry of Transport and Communication (MOTC) has 
excluded Korean companies from bidding for the railway project by the government of 
Chinese  Taipei. We believe that this measure by the Government of Chinese Taipei is unfair. Korea 
would like to seek the response from Chinese Taipei on this issue.  
Answer :  
1. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has been a member of 
the WTO Agreement on Government Procurement (GPA) since July 15, 2009. Procurements 
covered by the GPA are conducted in accordance with the GPA rules, and are open to suppliers 
of GPA members pursuant to our Appendix I to the GPA.  
2. According to a previous letter sent by the MOEA in 2001, Korean enterprises are welcome to 
participate in those procurement projects applicable to the WTO GPA procurement standards, 
particularly those transport items that are covered under HS codes 8601, 8 603, 8605, 8607 and 
8608. Based on our statistics collected from July 2009 to August 2018, the amount of awarded 
bids made by Korea for rail equipment or materials was over NT$  27.6 billion (about 
US$ 900 million).  
3. For non -GPA-covered procurements, the pro curing entities may decide whether to allow 
participation of foreign suppliers. Generally speaking, domestic companies would be preferred 
for procurement projects below the GPA threshold. Only designated foreign brands that meet 
the terms of limited biddin g will be open specifically to foreign companies. This method complies 
with the spirit of the GPA.  The increasing amounts of awarded bids mentioned above confirm 
that there is no discrimination or differential treatment toward Korean companies.  
10.  GENER AL / UNSPECIFIED / O THER QUESTIONS  
Question(s) Add. 2:  
Although the Korean Government has opened a shipping route betw een Korean and Japan to 
Chinese  Taipei, the government of Chinese Taipei has banned Korean shipping companies from 
transporting container cargo between Chinese Taipei and Japan. We believe that the government of 
the Chinese Taipei needs to open the shipping route between Chinese Taipei and Japan to Korean 
shipping companies in a reciprocal manner. Korea would like to  seek the response from 
Chinese  Taipei to this issue.  
Answer :  
The issue raised should be dealt with in bilateral negotiations. We welcome the Korean government 
to discuss this issue in a bilateral meeting.  
__________