WT/TPR/S/448 /Rev.1  
2 April  2024 
(24-2814) Page: 1/121 
Trade Policy Review Body   
 
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
SEPARATE CUSTOMS TERRITORY OF TAIWAN , PENGHU , KINMEN AND MATSU 
Revision  
This report, prepared for the fifth Trade Policy Review of the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu, has been drawn up by the WTO Secretariat on its own responsibility. 
The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism 
(Annex  3 of the Marrakesh Agreement Establishing the World Trade Organization), sought 
clarification from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on its trade 
policies and practices.  
 
Any technical questions arising from this report may be addressed to  Ms Eugenia Lizano 
(tel. 022 739 6578) and Mr Rosen Marin ov (tel.  022 739 6391).  
 
Document WT/TPR/G/ 448 contains the policy statement submitted by the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report was drafted in English.  
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  6 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  10 
1.1   Main features of the economy  ................................ ................................ ....................  10 
1.2   Recent economic developments  ................................ ................................ ..................  11 
1.3   Developments in trade and investment  ................................ ................................ ........  14 
1.3.1   Trends and patterns in merchandise trade and services trade  ................................ ....... 14 
1.3.1.1    Merchandise trade  ................................ ................................ ...............................  14 
1.3.1.2    Trade in services  ................................ ................................ ................................ . 18 
1.3.2   Trends and patterns in inward direct investment  ................................ ........................  19 
2   TRADE AND INVESTMENT REGIMES  ................................ ................................ ...........  22 
2.1   General framework  ................................ ................................ ................................ ... 22 
2.2   Trade policy formulation and objectives  ................................ ................................ ....... 23 
2.3   Trade agreements and arrangements  ................................ ................................ ..........  24 
2.3.1   WTO ................................ ................................ ................................ ....................  24 
2.3.2   Regional and preferential agreements  ................................ ................................ ....... 25 
2.3.3   Other agreements and arrangements  ................................ ................................ ........  26 
2.4   Investment regime  ................................ ................................ ................................ ... 27 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  32 
3.1   Measures directly affecting imports  ................................ ................................ .............  32 
3.1.1   Customs procedures, valuation, and requirements  ................................ ......................  32 
3.1.2   Rules of origin  ................................ ................................ ................................ ....... 34 
3.1.3   Tariffs  ................................ ................................ ................................ ..................  34 
3.1.3.1    Applied MFN tariff  ................................ ................................ ...............................  34 
3.1.3.2    Tariff bindings  ................................ ................................ ................................ .... 36 
3.1.3.3    Tariff rate quotas  ................................ ................................ ................................  37 
3.1.3.4    Tariff preferences  ................................ ................................ ................................  37 
3.1.3.5    Tariff concessions/exemptions  ................................ ................................ ..............  38 
3.1.4   Other charges affecting imports  ................................ ................................ ...............  39 
3.1.5   Import prohibitio ns, restrictions, and licensing  ................................ ...........................  41 
3.1.6   Anti-dumping, countervailing, and safeguard measures  ................................ ...............  42 
3.2   Measures directly affecting exports  ................................ ................................ .............  45 
3.2.1   Customs procedures and requirements  ................................ ................................ ..... 45 
3.2.2   Taxes, charges, and levies  ................................ ................................ ......................  46 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ ............................  46 
3.2.4   Export support and promotion  ................................ ................................ .................  48 
3.2.5   Export finance, insurance, and guarantees  ................................ ................................  50 
3.3   Measures affecting production and trade  ................................ ................................ ...... 50 
3.3.1   Incenti ves ................................ ................................ ................................ ............  50 
3.3.2   Standards and other technical requirements  ................................ ..............................  53 WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  3.3.3   Sanitary and phytosanitary requirements  ................................ ................................ .. 56 
3.3.4   Competition policy and price controls  ................................ ................................ ........  59 
3.3.4.1    Competition policy  ................................ ................................ ..............................  59 
3.3.4.2    Price controls  ................................ ................................ ................................ ..... 61 
3.3.5   State trading, state -owned ente rprises, and privatization  ................................ .............  62 
3.3.6   Government procurement  ................................ ................................ .......................  65 
3.3.6.1    Legal and institutional framework  ................................ ................................ ..........  66 
3.3.6.2    Procurement methods  ................................ ................................ ..........................  66 
3.3.6.3    Preferences  ................................ ................................ ................................ ........  69 
3.3.6.4    Transparency  ................................ ................................ ................................ ..... 70 
3.3.7   Intellectual property rights  ................................ ................................ ......................  70 
3.3.7.1    Copyright and related rights  ................................ ................................ .................  73 
3.3.7.2    Trademarks  ................................ ................................ ................................ ........  73 
3.3.7.3    Geographical indications  ................................ ................................ ......................  74 
3.3.7.4    Patents, utility models, and designs  ................................ ................................ ....... 74 
3.3.7.5    Plant varieties  ................................ ................................ ................................ .... 76 
3.3.7.6    Layout -designs of integrated circuits (topographies)  ................................ .................  76 
3.3.7.7    Trade secrets  ................................ ................................ ................................ ..... 76 
3.3.7.8    Enforcement  ................................ ................................ ................................ ....... 76 
4   TRADE POLICIES BY SECTOR  ................................ ................................ .....................  78 
4.1   Agriculture  ................................ ................................ ................................ ..............  78 
4.1.1   Overview  ................................ ................................ ................................ ..............  78 
4.1.2   Trade measures  ................................ ................................ ................................ ..... 80 
4.1.3   Domesti c support measures  ................................ ................................ ....................  82 
4.2   Mining and energy  ................................ ................................ ................................ .... 83 
4.2.1   Mining  ................................ ................................ ................................ ..................  83 
4.2.2   Energy  ................................ ................................ ................................ .................  83 
4.2.2.1    Overview  ................................ ................................ ................................ ...........  83 
4.2.2.2    Electricity  ................................ ................................ ................................ ...........  85 
4.2.2.3    Hydrocarbons  ................................ ................................ ................................ ..... 87 
4.3   Manufacturing  ................................ ................................ ................................ ..........  89 
4.4   Services  ................................ ................................ ................................ ..................  90 
4.4.1   Financial services  ................................ ................................ ................................ ... 90 
4.4.1.1    Banking  ................................ ................................ ................................ .............  92 
4.4.1.2    Insurance  ................................ ................................ ................................ ..........  93 
4.4.1.3    Capital market  ................................ ................................ ................................ .... 95 
4.4.2   Telecommunications services  ................................ ................................ ...................  96 
4.4.3   Transport  ................................ ................................ ................................ .............  98 
4.4.3.1    Maritime transport  ................................ ................................ ..............................  99 
4.4.3.2    Air transport  ................................ ................................ ................................ ..... 100 WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  5   APPENDIX TABLES  ................................ ................................ ................................ .. 102  
 
CHARTS  
 
Chart  1.1 Goods and services trade (BOP based), 2018 -22 ................................ ....................  14 
Chart  1.2 Product composition of merchandise trade by main HS  section, 2018 and 2022  ...........  15 
Chart  1.3 Merchandise trade by main partner, 2018 and 2022  ................................ ................  16 
Chart  1.4 Trade in intermediate goods (IG), by main category (excluding fuels), 2010 -21 ..........  17 
Chart  1.5 Main trading partners of electronic products for intermediate goods, 2021  ..................  18 
Chart  3.1 Distribution of MFN tariff rates, 2018 and 2023  ................................ ......................  36 
Chart  3.2 Restrictions to direct cross -strait imports, by HS section, 2023  ................................ . 42 
Chart  4.1 Total energy supply by source, 2018 and 2022  ................................ .......................  84 
Chart  4.2 Installed electricity generation capacity, 2018 and 2022  ................................ ..........  86 
Chart  4.3 Generated electricity, 2018 and 2022  ................................ ................................ ... 87 
Chart  4.4 Industrial production, 2018 and 2022  ................................ ................................ ... 89 
 
TABLES  
 
Table  1.1 Selected macroeconomic indicators, 2018 -22 ................................ .........................  10 
Table  1.2 Balance of payments, 2018 -22 ................................ ................................ .............  13 
Table  1.3 Merchandise trade by end -use, 2018 and 2022  ................................ .......................  16 
Table  1.4 Trade in services, 2018 -22 ................................ ................................ ..................  18 
Table  1.5 Inward and outward flows of direct investment by activity, 2018 -22  
(approval basis)  ................................ ................................ ................................ ..............  19 
Table  1.6 Inward and outward flows of direct investment by source and destination,  
2018-22 (approval basis)  ................................ ................................ ................................ .. 20 
Table  2.1 Investment incentives, 2023  ................................ ................................ ................  29 
Table  3.1 Structure of the MFN applied tariff schedule, 2018 and 2023 (February)  .....................  35 
Table  3.2 Tariff lines where applied rates exceed bound rates, 2023  ................................ ........  37 
Table  3.3 Summary analysis of the preferential tariff, 2023  ................................ ....................  38 
Table  3.4 Temporary tariff reductions  ................................ ................................ .................  39 
Table  3.5 Tobacco and Alcohol Tax and Tobacco Health and Welfare Surcharge, 2023  ................  40 
Table  3.6 Specifically Selected Goods and Services Tax, 2022  ................................ ................  40 
Table  3.7 Anti -dumping cases, 2018 -22 ................................ ................................ ..............  44 
Table  3.8 Export licens ing (permit), 2023  ................................ ................................ ............  47 
Table  3.9 Prohibited exports, February  2023 ................................ ................................ ........  48 
Table  3.10 CNS and their equivalence with international standards  ................................ .........  54 
Table  3.11 Main SPS legislation, 2022  ................................ ................................ .................  56 
Table  3.12 FTC enforcement activity, 2018 -22 ................................ ................................ ..... 61 
Table  3.13 Indicative list of firms with public participation, 2022  ................................ .............  63 
Table  3.14 Selected procurement indicators, 2018 -22 ................................ ...........................  65 WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  3.15 Th resholds and procurement methods  ................................ ................................ . 67 
Table  3.16 Procurement by type of procedure, 2018 -22 ................................ .........................  68 
Table  3.17 Requirements and terms of intellectual property rights protection, 2023  ...................  71 
Table  3.18 Trademarks and related data, 2018 -22 ................................ ................................  74 
Table  3.19 Patent applications and registrations, 2018 -22 ................................ .....................  75 
Table  4.1 Composition of agricultural output, 2018 -21 ................................ ..........................  78 
Table  4.2 Trade in agricultural products, 2018 -22 ................................ ................................ . 79 
Table  4.3 Special safeguard measures applied, 2018 -22 ................................ ........................  81 
Table  4.4 Brown rice trade and production, 2018 -21 ................................ .............................  82 
Table  4.5 Financial system assets, 2018 -22 ................................ ................................ .........  91 
Table  4.6 Banking seg ment indicators, 2018 -22 ................................ ................................ ... 93 
Table  4.7 Insurance segment indicators, 2018 -22 ................................ ................................ . 94 
Table  4.8 Stock market indicators, 2018 -22 ................................ ................................ .........  95 
Table  4.9 Telecommunications market indicators, 2018 -22 ................................ ....................  96 
 
BOXES  
 
Box 2.1 Legislative process, 2023  ................................ ................................ ......................  22 
Box 3.1 General rules of origin, 2022  ................................ ................................ ..................  34 
 
APPENDIX TABLES  
 
Table  A1.1 Merchandise exports by HS section and major HS chapter/subheading, 2018 -22 ..... 102 
Table  A1.2 Merchandise imports by HS section and major HS chapter/subheading, 2018 -22 ..... 103 
Table  A1.3 Merchandise exports by destination, 2018 -22 ................................ .....................  104 
Table  A1.4 Merchandise imports by origin, 2018 -22 ................................ ............................  105 
Table  A2.1 Most recent notifications to the WTO, January  2018 June  2023 .............................  106 
Table  A2.2 List of prohibited and restricted industries, 2022  ................................ .................  108 
Table  A3.1 MFN applied summary, 2023  ................................ ................................ ............  111 
Table  A3.2 Tariff rate quotas, 2022 and 2023  ................................ ................................ .... 113 
Table  A3.3 Preferential tariff rate quotas, 2023  ................................ ................................ .. 115 
Table  A3.4 Commodity tax, 2022  ................................ ................................ .....................  116 
Table  A3.5 Goods excluded from drawback duty, 2023  ................................ ........................  118 
Table  A4.1 Agricultural support programmes, 2018 -22 ................................ ........................  119 
 
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  SUMMARY  
1. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese  Taipei) is an 
advanced, outward -oriented economy whose performance  remains strongly influenced by the global 
trading environment. Economic activity is driven mainly by services and manufacturing, whereas 
agriculture and mining make modest contributions to GDP and employment. As a global leader in 
electronic integrated ci rcuits , Chinese  Taipei occupies a critical position in most global supply chains. 
Accordingly, its economic performance benefited from strong global demand for electronic parts and 
components during the COVID -19 pandemic and in its aftermath.  
 
2. Like most advanced economies, Chinese  Taipei faces demographic challenges driven by a 
declining fertility rate and an ageing population. However, income and gender inequalities remain 
relatively low and are not structurally embedded.  
 
3. Chinese  Taipei  continues t o rely considerably on trade: exports and imports of goods and 
services accounted for 120% of GDP in 2018 and 127% in 2022 . Trade patterns have not changed 
substantially since the previous Review in 2018. Manufactured goods, namely machinery (electrical 
equipment), remain the key driver of exports and imports. However , Chinese  Taipei's  participation 
in global value chains dee pened during the period under review and is especially significant in 
manufacturing of electronic products, particularly electronic integrated circuits. Merchandise exports 
and imports remain concentrated in trading partners in the region, followed by the United  States 
and the European  Union.  
 
4. The institutional framework for trade policy formulation and implementation has remained 
broadly unchanged since the last Review , but new participatory approaches to policy development 
have been adopted. To this end, during the review period, Chinese  Taipei drafted its first Action Plan 
(2021 -2024), aimed at promoting transparency, accountability, participation, and inclusion. The Plan 
emphasizes the importance of cooperating with civil society and of making relevant i nformation 
available to the public, as required by law. In addition, a programme under which executive agencies 
must communicate with stakeholders at all stages of policy development was implemented.  
 
5. Chinese  Taipei continues to view trade as a critical to ol to develop its economy, promote 
innovation, strengthen supply chain resiliency, and attract investment. Thus, trade policy constitutes 
one of the main pillars of Chinese  Taipei's New Model for Economic Development, designed in 2016 
to use export and loc al demand as twin engines for growth. Under the New Model, Chinese  Taipei 
has pursued several strategies in order to, inter alia, strengthen core key industries, promote 
industrial innovation and transformation, and build a digital economy. In addition to its development 
plans, Chinese  Taipei has been implementing several programmes aimed at boosting investment in 
strategic sectors, such as the Forward -looking Infrastructure Development Program, the 
"5+2 Innovative Industries Plan", and the New Southbound P olicy, aimed at reducing its 
overdependence on any single market.  
 
6. Chinese  Taipei remains a firm supporter of a rules -based multilateral trading system, as 
embodied by the WTO, and is committed to safeguarding a transparent and predictable trade and 
invest ment environment. Moreover, considering that it has a relatively limited number of regional 
trade agreements and other cooperation arrangements, it attaches high importance to the WTO 
including the plurilateral agreements, as well as tariff liberalization arrangements such as the 
Information Technology Agreements (ITA and ITA II), which have been an essential means of 
securing market access for its major exports. Chinese  Taipei was actively involved in WTO 
discussions and initiatives during the review perio d; it participated in the negotiations or discussions 
on agriculture and fisheries subsidies, trade and public health, and WTO reform, as well as in the 
Joint Initiative on Electronic Commerce, and it co -sponsored a proposal to reinvigorate the Work 
Progra mme on Electronic Commerce. Chinese  Taipei maintains a strong record of notifications at 
the WTO.  
 
7. During the review period, there were no major changes to the main legislation governing 
overseas investment. All overseas investors require prior approval to  invest in Chinese  Taipei, 
although efforts have been made to simplify the procedures of application, review, and approval of 
overseas investment, and assistance in expanding and investing overseas has been provided to local 
businesses. There are several a ctivities where inward investment is banned or restricted. The list of 
such activities, which is reviewed periodically, was last amended in 2018. Chinese  Taipei relies on a 
broad network of bilateral investment treaties (BITs) to promote investment and co -operation with WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  trading partners. In addition, Chinese  Taipei maintains a series of incentives to promote local 
investment and attract overseas investment, consisting mainly of tax deductions and other support 
measures.  
 
8. Since the last Review in 2018, the s imple average applied MFN tariff has remained almost 
unchanged, at 7.1% in 2023. Most tariffs continue to be levied on an ad valorem basis. Tariff 
protection varies substantially across and within sectors. The average tariff for agricultural products 
(WTO definition) remains substantially higher, at 17.6% in  2023 compared to the average for 
non-agricultural products that stood at 5.1%, unchanged since 2018. Among non -agricultural 
products, fish and fishery products are subject to the highest average tariffs  (19.9%), with rates 
ranging from 0% to 50% (or 0% to 83.8% if AVEs are considered). Over the review period, the main 
change in the tariff structure was an increase in the number of duty -free rates, which was mainly 
due to completion of the ITA expansion. Tariffs may be adjusted to cope with special economic 
situations, manage the supply of goods, and provide industries with appropriate operational 
conditions. These temporary adjustments are usually in place for a year. During the review period, 
such measur es were applied to staples (e.g.  beef, wheat, and some dairy products) and 
COVID -19-related goods (e.g.  masks and ethyl alcohol).  
 
9. Chinese  Taipei bound all tariff lines at levels ranging from 0% to 500%, with a total of 96  tiers. 
For six tariff lines (at t he 10‑digit level), the applied MFN tariff appears to exceed the bound level. 
Chinese  Taipei continues to offer non -reciprocal tariff preferences to all LDCs.  
 
10. The legal and institutional framework regulating non -tariff barriers has not changed 
substantial ly since 2018. In 2023 some 0.8% of tariff lines were subject to import prohibitions, on 
an MFN basis, consisting mainly of fish products; there are additional import prohibitions specific to 
direct cross -strait imports. Imports from all origins require a licence, unless otherwise specified 
in Chinese  Taipei's accession protocol. Import licensing requirements covered 2.1% of all tariff lines 
in 2022. During the COVID -19 pandemic, a temporary export ban was imposed on certain masks 
(HS 6307.90.50) and on fev er thermometers (HS  9025.19.90). Chinese  Taipei also uses export 
licensing (permits) which, in 2023, applied to 0.2% of total tariff lines. The main exports subject to 
licensing comprise equipment related to semiconductors, diamonds, and microscopes.  
 
11. As at end-2022, there were 19 anti -dumping measures in force; some had been in place for 
several years as determined necessary by sunset reviews and 4  measures had been in effect for 
more than 10 years. During the period under review, Chinese  Taipei imposed co untervailing duties 
on certain products originating in China; however, these measures were suspended because of 
overall economic interests. Chinese  Taipei did not impose any measures pursuant to the 
WTO Agreement on Safeguards; nonetheless, it continued im posing special safeguard (SSG) actions 
in regard to imports of several agricultural products.  
 
12. During the review period, there were no significant changes regarding the formulation, 
application, and objectives of technical regulations and sanitary and phyt osanitary (SPS) measures, 
and primary legislation was not amended. Subsidiary legislation was updated as required. 
Since  2018, Chinese  Taipei has submitted to the WTO 213 regular notifications concerning technical 
regulations and 101 on SPS measures. Some temporary measures, one of an urgent nature, taken 
in the context of the COVID -19 pandemic were notified to the WTO TBT Committee and five 
emergency measures to the WTO SPS Committee (four for plant protection and one for animal 
protection). Four specific trade concerns were raised in relation to the adoption of SPS  measures, 
including one concern that has been raised several times over the years.  
 
13. As in 2018, Chinese  Taipei continues to implement a series of incentive programmes to 
promote production and i nvestment. These programmes, consisting mainly of tax deductions and 
other support measures, have not undergone substantial modifications. The programmes notified to 
the WTO included mainly sectoral incentives, such as subsidies for agriculture, forestry, and industry, 
as well as horizontal incentive programmes to promote R&D. Some of these programmes are in 
place to stimulate investment and technological innovation, promote the development of SMEs, and 
facilitate access to credit. SMEs continue to be of hi gh importance to the economy in terms of their 
contribution to exports of goods and services (26% in 2021) and women's economic empowerment; 
in 2021, 37% of all SMEs were owned by women and operated in the services sector. Chinese  Taipei 
also offers incent ives in remote areas and through the Free Trade Zones, in which established 
enterprises may benefit from duties and tax exemptions. Other regimes, such as Science Parks, WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Export Processing Zones/Technology Industrial Parks, and Agricultural Technology Parks , are in 
place to create clusters and synergies.  
 
14. Public -sector involvement in different areas of the economy persists. Since the previous 
Review, the main development in government procurement was a substantial amendment to the 
Government Procurement Act aimed at improving efficiency. The procurement process remains 
decentralized; no procedural or institutional changes were made, apart from an update of the 
procurement thresholds to keep pace with inflation. Chinese  Taipei participates in the WTO GPA and 
continues to use public procurement as a tool to support SMEs, minorities, and disadvantaged 
groups, or for environmental protection . Chinese  Taipei provides offsets and price preferences to 
promote employment, industrial development, and environmental prot ection. These apply to 
procurement not covered by the WTO GPA.  
 
15. As a knowledge -based economy that relies on high-tech industries and FDI, Chinese  Taipei 
has continued to strengthen its framework for protecting technological innovation and intellectual 
property rights (IPR). During the review period, IPR legislation was amended several times with the 
view to streamlining and adapting the IPR regime to a rapidly evolving environment. At the WTO, 
Chinese  Taipei actively participates in the TRIPS Council, where  it plays a key role in discussions on 
IP as it relates to innovation, MSMEs, women, microfinance, and public -private collaboration. In 
addition, during the review period, Chinese  Taipei further deepened global IPR cooperation by 
signing a number of memora nda of understanding.  
 
16. The agriculture sector continues to be characterized by scarce farmland, fragmented farming 
operations, a declining and ageing rural workforce, and vulnerability to extreme weather events. 
Most farms remain small -scale and family -operated. Crop production provided more than 50% of 
the sector's annual output throughout the 2018 -21 period. Rice remains the most important staple 
food, although both its cultivation area and production volume have been steadily declining 
since 2018. 
 
17. Chinese  Taipei remains heavily dependent on imported food and agricultural inputs, such as 
animal feed and forage crops, and fertilizers. In 2021, imports accounted for 68.7% of 
Chinese  Taipei's annual caloric intake, up from 65.5% in  2018. Financial support provided to the 
agriculture sector continues to follow various policy directions, targeting, inter alia, specific activities, 
particular crops (rice, sugarcane, and fruit), essential inputs, and farmers' and fishers' finance and 
insurance. During t he review period, the authorities made several legislative amendments and 
enacted new legislation on organic agriculture, irrigation, distant water fisheries, agricultural 
insurance, and farmer retirement.  
 
18. Chinese  Taipei's energy needs continue to be met essentially through imports, and the energy 
supply matrix remains dominated by fossil fuels. The absence of electricity grid interconnections 
with overseas partners exacerbates its energy supply challenges. Various subsectors, including 
electricity and nat ural gas, are yet to be fully opened to competition and the footprint of state -owned 
enterprises remains large.  
 
19. The combined share of renewable sources in total energy supply, albeit still modest, has been 
on the rise, underpinned by guaranteed feed -in tariffs and regulations requiring large industrial 
consumers to take part in the green energy transition. Chinese  Taipei has also been implementing 
an industrial policy for offshore wind power generation. In 2023, Chinese  Taipei upgraded its 
framework for re ducing greenhouse gas emissions and set a formal goal to achieve net zero 
emissions by 2050. Subsidies continue to be granted to ensure the supply of petroleum products in 
remote areas, reduce pricing differences between cities and rural areas, and encoura ge the 
exploration and development of oil and natural gas reserves. Wholesale and retail prices of natural 
gas are regulated.  
 
20. Manufacturing remains a pillar of Chinese  Taipei's economy, underpinned by a vigorous 
electronic parts and components subsector, including a world -leading semiconductor industry and a 
robust chemicals subsector. Although overseas investment in certain manufacturing activities 
remains prohibited or restricted, Chinese  Taipei maintains a range of incentives aimed at 
encouraging techno logical upgrading and the creation of industrial clusters.  
 WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  21. Chinese  Taipei's economic growth continues to be supported by its highly developed and 
resilient financial system. The authorities indicate that in  2022 92.1% of adults had bank or post 
office accounts, 95.5% had made electronic payments, and 73.2% owned life insurance policies. The 
financial system remains dominated by local banks, many of which belong to financial conglomerates 
that also own insurance companies and other financial servi ces providers.  
 
22. During the review period, the authorities continued strengthening the regulatory and 
prudential supervision frameworks, while implementing various relief and revitalization measures in 
response to the COVID -19 pandemic. Key developments inc luded amendments enabling the market 
entry of Internet -only banks and insurance companies, giving insurers more flexibility to invest their 
funds, and expanding securities firms' scope of business. Chinese  Taipei also established a 
regulatory sandbox for t hematic financial technology experiments, followed by a business trials 
mechanism for banking, insurance, securities, and futures businesses. Implementation of an open 
banking framework is ongoing.  
 
23. During the review period, noteworthy developments in Chin ese Taipei's telecommunications 
market included the discontinuation of 3G mobile services in December  2018, the launching of 
5G services in 2020, the release of spectrum for next -generation satellite communications services 
in March  2022, and market consol idation (pending FTC clearance ) that would reduce the number of 
mobile operators from five to three in the near future. Significant changes were made to the legal 
and institutional framework. These included the enactment of a new Telecommunications 
Managem ent Act in 2020 and the establishment of a Ministry of Digital Affairs in 2022.  
 
24. Chinese  Taipei's geography underpins maritime transport's position as an essential lifeline for 
external merchandise trade. Throughout the review period, approximately 93% of annual overseas 
freight traffic was transported by sea. The bulk of overseas passenger traffic remains airborne. The 
outbreak of the COVID -19 pandemic triggered declines in both overseas freight and passenger 
movements during 2020 -22, with the latter decli ne being most pronounced.  
 
25. All vessels entering Chinese  Taipei's international commercial ports must use towage 
assistance. The use of pilotage services is compulsory in all international commercial ports, except 
for exempted vessels. The authorities indic ate that towage assistance and bunkering services are, 
in principle, open to competition.  
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main features of the economy  
1.1.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese  Taipei) is an 
advanced, outward -oriented, and trade -driven economy whose aggregate two -way trade flows in 
goods and services ranged between 102.3% and 127% of GDP during 2018 -22. Economic activity is 
well diversified, with the GDP share of manufacturing on an upward trend and that of services on a 
slightly downward path. The agriculture sector is small and vulnerable to adverse climatic conditions, 
and mining's contribution to GDP a nd employment remains modest (Table  1.1). 
Table  1.1 Selected macroeconomic indicators, 2018 -22 
 
2018  2019  2020  2021  2022  
Nominal GDP (TWD  billion)  18,375.0  18,908.6  19,914.8  21,739.0  22,666.5  
Real GDP (percentage change)  2.8 3.1 3.4 6.5 2.4 
Nominal GDP per capita (USD)  25,838  25,908  28,549  33,059  32,756  
Consumption expenditure (percentage change)  2.5 1.9 -1.4 0.6 3.6 
 Private consumption  2.1 2.3 -2.6 -0.4 3.5 
 Public administration consumption  4.0 0.6 2.8 3.7 3.6 
Gross fixed capital formation (percentage change)  3.2 11.1 6.2 14.5 6.3 
Unemployment rate (%)  3.7 3.7 3.9 4.0 3.7 
Labour force ('000)  11,874  11,946  11,964  11,919  11,853  
Nominal GDP by economic activity (%)  
Agriculture, forestry, fishing and animal husbandry  1.7 1.7 1.6 1.4 1.4 
Mining and quarrying  0.1 0.1 0.1 0.1 0.1 
Manufacturing  32.1 31.0 32.3 34.0 34.2 
 Electronic parts and components  12.1 11.5 13.2 15.2 .. 
Electricity, gas and water  1.7 1.8 2.1 1.7 0.2 
Construction  2.4 2.7 2.9 3.0 3.3 
Services  59.1 60.0 58.3 56.9 57.8 
 Wholesale and retail trade  15.6 15.7 15.5 15.5 15.8 
 Transportation and storage  3.0 3.0 2.8 3.8 4.0 
 Accommodation and food  2.6 2.7 2.4 2.0 2.3 
 Information and communication  3.0 3.1 3.0 2.9 3.1 
 Financial intermediation and insurance  6.7 6.8 6.7 6.7 6.4 
 Other service activities  28.3 28.6 27.9 26.0 26.2 
Othera 2.9 2.9 2.8 2.9 3.0 
Employment by economic activity (%)  
Agriculture, forestry, fishing and animal husbandry  4.9 4.9 4.8 4.7 4.6 
Mining and quarrying  0.03 0.03 0.03 0.03 0.03 
Manufacturing  26.8 26.7 26.4 26.4 26.4 
Electricity, gas and water  1.0 1.0 1.0 1.0 1.0 
Construction  7.9 7.9 8.0 8.0 8.0 
Services  59.4 59.6 59.8 59.8 60.0 
 Wholesale and retail trade  16.6 16.7 16.5 16.4 16.2 
 Transport and storage  3.9 3.9 4.0 4.0 4.2 
 Accommodation and food  7.3 7.4 7.4 7.3 7.4 
 Information and communication  2.3 2.3 2.3 2.3 2.4 
 Financial intermediation and insurance  3.8 3.8 3.8 3.8 3.8 
 Other service activities  25.5 25.6 25.8 26.0 26.1 
Prices and interest rates  
Inflation (CPI, percentage change)  1.4 0.6 -0.2 2.0 3.0 
Core CPIb (percentage change)  1.2 0.5 0.4 1.3 2.6 
Discount rate (%, end -period)  1.375  1.375  1.125  1.125  1.750  
Exchange rates  
TWD/USD  30.156  30.925  29.578  28.022  29.777  
Real effective exchange rate (2010=100)  98.2 95.6 94.5 99.1 101.3  
Public financec (% of GDP)  
Total revenue  15.5 15.5 15.2 15.3 16.3 
 Tax revenued 12.5 12.6 11.5 12.6 13.6 
Total expenditure  15.5 15.4 16.3 15.5 16.1 
Overall fiscal balance  0.02 0.11 -1.03 -0.18 0.17 
General public debt  33.9 32.7 32.1 30.1 29.7 WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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2018  2019  2020  2021  2022  
External sector  
Forex reserves, end -period (USD  billion)  461.8  478.1  529.9  548.4  554.9  
 In months of imports of goods and services  16.5 17.4 20.9 16.2 15.0 
Total external debt (USD  billion)  191.2  184.7  189.9  213.6  202.1  
 Short term debt (USD  billion)  178.6  174.7  175.3  197.4  186.8  
Debt service ratioe 2.3 4.8 2.3 2.1 2.1 
.. Not available.  
a Including import duties and value added tax.  
b Consumer Price Index (CPI) excluding the categories of fruit, vegetables, and energy.  
c Based on all levels of public administration.  
d Excluding receipts from the financial enterprises business tax, the health and welfare surcharge on 
tobacco, and resources allocated to the long -term care services development fund.  
e Debt service as a percentage of exports of goods and services.  
Source:  CBC. Viewed  at: http://www.cbc.gov.tw ; Statistics. Viewed  at: http://eng.stat.gov.tw ; 
Directorate -General of Budget, Accounting and Statistics. Viewed  at: http://eng.dgbas.gov.tw ; and 
data provided by the authorities.  
1.2.  Electronic parts and components, notably integrated circuits, constitute the backbone of 
Chinese  Taipei's merchandise exports. Being home to companies with  strong competitive 
advantages in the semiconductor chip industry,  Chinese  Taipei occupies a critical position in most 
global supply chains. It is expected to maintain this position and remain at the forefront of 
semiconductor innovation and production in the medium term, notwithstanding risks stemming from, 
inter alia, fluctuations in global demand and key trading partners' reshoring incentives and export 
controls.1 
1.3.  Chinese  Taipei's competitiveness is also underpinned by its sound governance framework, 
well-developed infrastructure, highly skilled workforce, and resilie nt financial system that offers an 
ample set of financial products and services. The economy is largely made up of small businesses 
and entrepreneurs, which benefit from various support measures (Section  3). Income and gender 
inequalities remain low by glo bal comparison and are not structurally embedded.2 However, like 
most advanced economies, Chinese  Taipei faces demographic challenges driven by a declining 
fertility rate and an ageing population. Its labour force (employed and actively seeking employment ) 
shrank during 2021 -22 to 11.85  million (Table  1.1), the first contraction in its statistics collection 
history.  
1.4.  Chinese  Taipei is a net importer of food and agricultural inputs, including animal feed and 
forage crops, and fertilizers (Section  4.1). Notwi thstanding recent progress towards greening its 
energy supply matrix, Chinese  Taipei continues to depend heavily on imported fossil fuels, keeping 
it exposed to global price fluctuations. The absence of electricity grid interconnections with overseas 
partn ers exacerbates its energy supply challenges (Section  4.2.2). Chinese  Taipei's manufacturing 
industry, notably semiconductors and chemicals production, is highly energy -intensive and relies on 
other high -carbon -footprint inputs. Consequently, Chinese  Taipe i would face considerable hurdles in 
its planned transition to net -zero greenhouse gas emissions (Section  4.4.2), as well as in a global 
trading environment being reshaped by carbon border adjustment mechanisms.  
1.2  Recent economic developments  
1.5.  Chinese  Taipei' s economy expanded steadily during 2018 -22, with real GDP growth 
averaging  3.6% per year. In the same period, per capita GDP increased from USD  25,838 
to USD 32,756 in nominal terms. Economic expansion was sustained by the timely increase in public 
spendin g in response to the COVID -19 pandemic, strong global demand for electronic parts and 
components, and a surge in private investment. Driven by significant capital expenditures in the 
semiconductors, renewable energy, and telecommunications industries, gros s fixed capital formation 
posted robust annual growth throughout the review period, reaching double -digit rates in 2019 
and 2021 (Table  1.1). 
1.6.  In response to the COVID -19 pandemic, between February  2020 and June  2023 the authorities 
implemented a package of  prevention, relief, and revitalization measures with a total budget 
 
1 EIU (2023). Viewed  at: http://country.eiu.com/FileHandler.ashx?issue_id=1873189170&mode=pdf . 
2 BTI. Viewed  at: https://bti -project.org/en/reports/country -report/TWN . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 12 - 
 
  of TWD 839 billion.3 The package comprised various measures aimed at alleviating the pandemic's 
adverse socioeconomic impact and boosting consumption. At end -April 2022, disbursements un der 
the relief package amounted to about 85% of the total budgeted amount.4 The authorities also 
stepped  up spending and implementation efforts for projects envisaged under the Forward -looking 
Infrastructure Development Program and the Six Core Strategic Industries Promotion Program.5 
1.7.  During most of the review period, the Central Bank (CBC) maintained a relatively loose 
monetary policy stance with a view to keeping credit flowing and fostering economic growth. 
Between April  2020 and June  2022, the CBC als o put in place a TWD  400 billion Special 
Accommodation Facility to help financially distressed SMEs to weather the pandemic (Section  4.4.2). 
Starting in December  2020, the CBC reinforced selective credit control measures  (in five rounds ) to 
stem excessive credit flows into the property market. In March  2022, the CBC began a gradual 
process of monetary tightening with a view to moderating inflation expectations.6 
1.8.  In addition to the CBC's shift to a tighter monetary policy stance, the authorities took steps to 
stabilize the prices of staple goods and reduce businesses' operating costs. Temporary reductions 
were applied to import duties on key raw materials, as well as to certain commodity and business 
taxes. The retail prices of natural gas, bottled gas, and electricity were also frozen until 
end-June 2022.7 
1.9.  Headline inflation was contained below 3% throughout 2018 -22, despite its upward trend 
since 2021. Consumer price fluctuations were mainly driven by supply -side factors, including global 
oil price movemen ts' repercussions on the local market for fuels and weather shock -induced declines 
in fruit and vegetable production. Inflationary pressures were also attributable to the gradual 
recovery in private consumption, as pandemic -related restrictions were progre ssively relaxed in the 
second half of 2021. Accordingly, the core inflation rate also increased from 2021 onward, albeit 
more mildly (Table  1.1). 
1.10.  By and large, the combination of accommodative monetary policy and relief measures helped 
to mitigate the pand emic's impact on the labour market. During 2018 -22, the annual unemployment 
rate remained at about 3.7%, apart from a surge in 2021 amid a local flare -up of coronavirus 
infections that triggered a tightening of containment measures. Pandemic -related job lo sses were 
most pronounced in wholesale and retail trade and in accommodation and food service activities. 
Following the easing of restrictions, the unemployment rate trended downwards.  
1.11.  During the review period, Chinese  Taipei maintained its managed floatin g exchange rate 
regime, whereby the CBC would intervene only in the event of excessive exchange rate volatility to 
mitigate any adverse effects on economic and financial stability, and to ensure an orderly currency 
exchange market.8 To provide the financial system with sufficient forex liquidity to meet demand, 
including by companies venturing into overseas markets, in 2021 the CBC channelled money 
(USD  20 billion, EUR  1 billion, and  JPY 80 billion) to the Taipei forex currency call -loan market.9 
1.12.  During 2020 -21, the nominal TWD/USD exchange rate appreciated due to Chinese  Taipei's 
strong export performance and the more accommodative US monetary policy stance. Faster 
monetary tightening in the United  States and weaker global demand fo r semiconductors reversed 
 
3 Special Act for Prevention, Relief and Revitalization Measures for Severe Pneumonia with Novel 
Pathogens of 25  February  2020 and its subsequent amendments.  
4 CBC (2022), Annual Report 2021 , June.  
5 Viewed  at: 
https://www.ndc.gov.tw/en/News7.aspx?n=D5932C00BE444345&sms=8A0404D0C442445F . 
6 Between March  2022 and March  2023, the CBC raised by 75 basis points the discount rate, the rate on 
refinancing of secured loans, and the rate on temporary accommodations. The Bank also absorbed some 
excess liquidity through open market operations, so that the (weighted average) interbank overnight call -loan 
rate increased from about 0.08% to  0.68%.  
7 CBC (2022), Financial Stability Report , Issue No.  16, May.  
8 Cash flows not involving a TWD conversion, as well as those involving a TWD conversion and related to 
(i) trade in goods and services, or (ii)  direct and portfolio investments approved by the competent authorities, 
are fully liberalized . Total annual remittances that exceed USD  5 million (resident individuals or as sociations) or 
USD 50 million (companies), and single remittances exceeding USD 0.1 million (non -residents) require prior 
approval by the CBC.  
9 CBC (2022), Annual Report 2021 , June.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  that trend in 2022 (Table  1.1). The nominal TWD/USD exchange rate was characterized by relatively 
low volatility compared to major currency pairs, such as JPY/USD and EUR/USD.10 
1.13.  As a result of pandemic -related public spending, Chi nese Taipei's fiscal balance turned 
negative, and its outstanding public debt rose during 2020 -21. Nevertheless, both the budget deficit 
and the public debt remain low by global standards. The debt to GDP ratio maintained a downward 
trajectory throughout t he review period, due to the economy's strong performance (Table  1.1). 
Underpinned by ample foreign exchange reserves, Chinese  Taipei's external debt servicing capacity 
also remained robust.  
1.14.  The current account on Chinese  Taipei's balance of payments was i n surplus throughout the 
review period, rising to almost USD 118 trillion (15.2% of GDP) in 2021 (Table  1.2). Bolstered by 
strong global demand for semiconductors, merchandise exports continued to outpace imports. In 
addition, the services trade balance po sted a widening surplus from 2020 onward, as global container 
shipping bottlenecks drove up freight rates, resulting in higher freight transport receipts. The 
financial account had a net asset increase, reflecting mainly portfolio investment dynamics.  
Table 1.2 Balance of payments, 2018 -22 
(USD  million)   
2018  2019  2020  2021  2022  
Current account  70,709  66,429  96,566  117,970  100,877  
 Goods and services balance  60,278  52,392  78,992  100,391  81,239  
 Goods balance  66,934  57,491  75,273  87,963  68,346  
 Exports  345,495  330,744  342,503  453,603  465,944  
 Imports  278,561  273,253  267,230  365,640  397,598  
 Service balance  -6,656  -5,099  3,719  12,428  12,893  
 Exports  50,209  51,838  41,210  51,995  58,169  
 Imports  56,865  56,937  37,491  39,567  45,276  
 Primary income  13,752  16,876  20,728  20,273  22,870  
 Credit  39,051  40,632  39,846  41,198  51,318  
 Compensation of employees  1,056  1,199  1,127  1,127  1,253  
 Investment income  37,816  39,232  38,575  39,933  49,930  
 Other  179 201 144 138 135 
 Debit  25,299  23,756  19,118  20,925  28,448  
 Compensation of employees  761 777 674 689 790 
 Investment income  24,222  22,649  18,214  20,023  27,471  
 Other  316 330 230 213 187 
 Secondary income  -3,321  -2,839  -3,154  -2,694  -3,232  
 Credit  7,643  8,238  7,945  8,710  9,361  
 Debit  10,964  11,077  11,099  11,404  12,593  
Capital account  63 -3 -9 3 -46 
Financial account (inc. reserve assets)  71,309  75,797  96,008  127,465  106,524  
 Direct  investment  10,944  3,523  5,447  5,925  5,431  
 Assets  18,058  11,763  11,500  11,341  15,589  
 Liabilities  7,114  8,240  6,053  5,416  10,158  
 Portfolio investment  84,028  46,401  59,034  102,658  105,388  
 Assets  68,853  54,877  36,153  81,503  59,674  
 Liabilities  -15,175  8,476  -22,881  -21,155  -45,714  
 Financial derivates  1,638  2,501  434 -286 4,656  
 Assets  -16,748  -15,490  -20,563  -21,822  -21,700  
 Liabilities  -18,386  -17,991  -20,997  -21,536  -26,356  
 Other investment  -37,800  6,714  -17,249  -1,825  -19,834  
 Assets  -15,404  13,566  607 18,648  -22,785  
 Currency and deposits  -13,390  14,692  7,183  10,111  -21,444  
 Loans  -4,190  4,273  4,021  3,906  -2,213  
 Trade credits and advances  -6,389  -4,586  -8,486  2,001  -3,139  
 Other assets  8,560  -818 -2,116  2,615  3,846  
 Liabilities  22,396  6,852  17,856  20,473  -2,951  
 Currency and deposits  4,186  3,951  2,126  21,996  -8,295  
 Loans  7,300  42 5,498  7,915  -1,967  
 Trade credits and advances  7,509  3,591  9,006  -738 3,441  
 Other liabilities  3,401  -732 1,226  -8,700  3,870  
 Reserve assets  12,499  16,658  48,342  20,993  10,883  
Net errors & omissions  537 9,371  -549 9,492  5,693  
 
10 CBC (2022), Financial Stability Report , Issue No.  16, May.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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2018  2019  2020  2021  2022  
Indicators  
Current account balance (% of GDP)  11.6 10.9 14.3 15.2 13.2 
Goods and services exports (% of GDP)  64.9 62.6 57.0 65.2 68.8 
Goods and services imports (% of GDP)  55.1 54.0 45.3 52.2 58.2 
Source:  CBC. Viewed  at: http://www.cbc.gov.tw . 
1.3  Developments in trade and investment  
1.3.1   Trends and patterns in merchandise trade and services trade  
1.3.1.1   Merchandise trade  
1.15.  Chinese  Taipei continues to rely considerably on trade: exports and imports of goods and 
services accounted for 120% of GDP in 2018 and for 127% of GDP in 2022 (Chart  1.1). Growth in 
merchandise and services trade fluctuated during the period under review mainly because of the 
pandemic. Although they stagnated in 2020, trade flows recuperated in 2021, growing at a 
double -digit rate, boosted by robust global demand for semiconductors, building of infrastructure 
for 5G networks, and automation equipment. This  underscored the impact of trade flows on 
GDP growth, which reached 6.5% on real terms in  2021.  
Chart  1.1 Goods and services trade (BOP based), 2018 -22 
 
Source:  CBC. Viewed  at: http://www.cbc.gov.tw . 
1.16.  Chinese  Taipei's trade patterns have not changed substantially since the previous Review 
in 2018. Trade continues to be heavily dependent on exports and imports of manufactured goods, 
namely ma chinery (electrical equipment). During the period under review, this concentration 
increased as the share of exports of electrical equipment in total merchandise exports, which was 
54.8% in 2018, increased to 64.6% in 2022 (Chart  1.2 and Table  A1.1). Moreo ver, the share of 
exports of electronic integrated circuits, Chinese  Taipei's major export, increased from 28.7% 
to 38.4% during the same period, as global demand for emerging technology applications such as 
high-performance computing continued to grow. On  the import side, imports of electrical equipment 
increased during the period, their share of total imports rose from 38.2% in 2018 to 44.9% in 2022. 
Petroleum and mineral products remain Chinese  Taipei's second -largest import category 
(Table  A1.2) . 
2.0
-3.30.331.8
3.76.4
-1.6
-7.733.0
9.3
-10-50510152025303540
01020304050607080
2018 2019 2020 2021 2022
Exports (goods and services, % of GDP) Imports (goods and services, % of GDP)
Exports (goods and services, % change) Imports (goods and services, % change)Chart 1.[  ]   Goods and services trade (BOP based), 2018 -2022 
% of GDP % change
Source:    CBC online information (http://www.cbc.gov.tw)  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 15 - 
 
  Chart  1.2 Product composition of merchandise trade by main HS  section, 2018 and 2022  
 
Source:  WTO Secretariat calculations, based on BOFT, Trade Statistics . 
1.17.  Chinese  Taipei's main trading partners, despite some mino r fluctuations in trade shares, have 
remained almost unchanged since 2018. Merchandise exports remained concentrated in trading 
partners in the region (mainly China; Hong  Kong,  China ; and Japan), followed by the United  States 
and the European  Union. The sh are of exports to China decrease d, while those destined for the 
United  States and Hong  Kong,  China  increase d (Chart  1.3 and Table  A1.3). Similarly, imports 
originated mainly in Asia, namely in China and Japan, followed by the United  States and the 
European  Union (Chart  1.3 and Table  A1.4).  
Chart 1.[Chinese Taipei] Product composition of merchandise trade by main HS section, 2018 and 
2022
2018 2022
Total:   
USD 334.0 billionTotal:  
USD 479.4 billion  
Base metals & 
articles thereof
7.9%Petroleum & 
mineral products 
4.1%
Base metals &
articles thereof
6.6% Total:   
USD 284.8 billionTotal:  
USD 428.0 billion Other
6.3%
Source:  WTO Secretariat calculations, based on Bureau of Trade, Trade Statistics.Other 
12.3%Transport equipment
3.4%
Other
10.4%Transport equipment
3.4%Other
8.9%
Chemicals 
8.4%Transport equipment
4.2%Transport equipment
3.5%
Plastics & rubber
7.6%
Machinery; electrical equipment
38.2% (out of which 17.8% 
electronic integrated
circuits)Machinery; electrical equipment 
44.9% (out of which 20.6% 
electronic integrated 
circuits)
Plastics &
rubber
2.5% Plastics & 
rubber
3.1% Petroleum & 
mineral products
19.3%Petroleum & 
mineral products
19.7%Precision equipment
4.3%Exports (f.o.b.)
Imports (c.i.f.)Plastics & rubber
5.4%Petroleum & 
mineral products
4.4%
Chemicals
6.6%Chemicals
4.9%
Chemicals 
10.7%Base metals &
articles thereof
7.7%Base metals & 
articles thereof
9.5%
Precision equipment
4.2%Precision equipment
3.5%Precision equipment
5.0%Machinery; electrical equipment
54.8% (out of which 28.7% 
electronic integrated
circuits)Machinery; electrical equipment 
64.6% (out of which 38.4% 
electronic integrated 
circuits)WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 16 - 
 
  Chart  1.3 Merchandise trad e by main partner, 2018 and 2022  
 
Source:  WTO Secretariat calculations, based on BOFT, Trade Statistics . 
1.18.  Imports of intermediate goods (IGs) including fuels increased from USD  197.9  billion in 2018 
to USD  288.8  billion in 2022, and exports went from USD  250.0 billion in 2018 to USD  364.7  billion 
in 2022. The share of IGs in total imports slightly decreased during the review period, while the 
share of exports of these goods in total exports increased. Imports and exports of capital goods both 
increased in v alue terms during the review period, with imports showing a substantial increase. The 
share of imports and exports of consumer goods remained almost unchanged between  2018 
and 2022 (Table  1.3). 
Table  1.3 Merch andise trade by end -use, 2018 and 2022  
 
Exports  Imports  
2018  2022  2018  2022  
Total trade (USD  billion)  334.0  479.4 284.8  428.0  
 of which (%):      
 Consumer goods  8.9 8.0 13.9 13.0 
 Intermediate goods  74.8 76.1 69.5 67.5 
 Capital goods  15.7 15.5 15.4 18.5 
 Other  0.5 0.4 1.2 1.1 
Trade in electronic products (HS Chapter  85) (USD  billion)  144.2  246.7  75.3 127.7  
Chart 1.[Chinese Taipei] Merchandise trade by main partners, 2018 and 2022
2018 2022
Total:   
USD 334.0 billionTotal:  
USD 479.4 billion  
Saudi Arabia,
Kingdom of
3.0%Malaysia
3.5%
Saudi Arabia,
Kingdom of
2.7%Total:   
USD 284.8 billionTotal:  
USD 428.0 billion Other
13.9%
Source:  WTO Secretariat calculations, based on Bureau of Trade, Trade Statistics.Other 
23.4%Hong Kong, China
12.4%
Indonesia
2.6%Japan
12.8%Other
16.2%
United States
10.7%Japan
15.5%Singapore
6.2%
EU-27
7.6%
China
18.9%China
19.6%
EU-27
9.4% EU-27
9.1% Other
22.3%Singapore
2.9%Exports (f.o.b.)
Imports (c.i.f.)Hong Kong, China
13.5%
China
25.3%
United States
11.8%Viet Nam
3.0%
United States
11.7%EU-27
7.3%China
28.9%
Singapore
3.0%Korea, Rep. of
4.6%Singapore
5.2%Japan
6.8%Japan
7.0%
Korea, Rep. of
6.9%
Malaysia
3.3%Korea, Rep. of
8.0%United States
15.7%Viet Nam 3.2 %Malaysia 3.2%Korea, Rep. of
4.7%
Australia 3.4%Malaysia
3.2%
Australia
5.8%Indonesia 1.9%WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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Exports  Imports  
2018  2022  2018  2022  
 of which (%):      
 Consumer goods  2.0 1.2 4.7 3.6 
 Intermediate goods  87.9 89.0 83.6 85.4 
 Electronic integrated circuits (HS heading 8542)  66.5 74.6 67.5 69.0 
 Capital goods  10.0 9.8 11.7 11.0 
Source:  WTO Secretariat calculations, based on UN Comtrade database, and BOFT, Trade Statistics . 
1.19.  Chinese  Taipei's participation in global value chains (GVCs ) deepened during the period under 
review. Chinese  Taipei's integration into GVCs and the world economy in general is evident from the 
large trade flows of IGs excluding fuels. Total IG exports amounted to USD  348.8  billion in 2021, 
while imports amounted to USD  232.8  billion, compared to exports of USD  254.8  billion and imports 
of USD  165.1  billion in 2018 (Chart  1.4). 
Chart  1.4 Trade in intermediate goods (IG), by main category (excluding fuels), 2010 -21 
 
Source: WTO Secretariat calculations, based on UN Comtrade database.  
1.20.  Chinese  Taipei's participation in GVCs is especially significant in the manufacturing of 
electronic products, particularly electronic integrated circuits. In 2022, imports of IGs accounted for 
85.4% of total imports of electronics equipment compared to 83.6% in 2018, of which 69% (2022) 
and 67.5% (2018) were imports of IGs for electronic integrated circuits, and 11.0% (11.7% in 2018) 
were capital goods. In terms of exports of electronic prod ucts, the share of IGs amounted to 89% 
of the total in 2022, up from 87.9% in 2018, of which electronic integrated circuits were 74.6% 
(66.5% in  2018), and capital goods were 9.8% (10.0% in 2018). On the other hand, both imports 
and exports of consumer ele ctronic goods remained low in 2022, with imports at 3.6% and exports 
at 1.2%, down from 4.7% and 2%, respectively, in 2018.  
1.21.  Considering data for 2021, the main supplier of IGs destined for the manufacture of electronic 
goods and electronic integrated circu its in Chinese  Taipei was China, followed by the 
Republic  of Korea and Japan. Chinese  Taipei's major market for exports of intermediate electronics 
was also China, followed by Hong  Kong,  China (Chart  1.5). 
62%64%66%68%70%72%74%76%78%80%
050100150200250300350400
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
IG parts & accessories (transport equipment)
IG parts & accessories (excl. transport equipment)
IG ores, precious stones , rare earths
IG other industrial supplies
IG food & beverages
IG X (M )/ total X (M) - excl. IG fuelsChart 1.[TPKM]  Trade in intermediate goods (IG), by main category (excluding fuels)
59%60%61%62%63%64%65%66%67%68%69%
050100150200250
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021IMPORTS EXPORTSUSD billion USD billion
Total IG exports 2021: USD 348.8 billion
Topexport partners 2021:
China -30.6%
Hong Kong, China -16.6%
United States -10.3%Total IG imports 2021: USD 232.8 billion
Topimport partners 2021:
China -25.0%
Japan -16.6%
Korea, Rep. of -11.5%
Source:   WTO Secretariat calculations, based on UN Comtrade database.WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Chart  1.5 Main trading partners of electronic products for intermediate goods, 2021  
 
a Includes goods exported from Chinese  Taipei and thereafter re -imported into Chinese  Taipei.  
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
1.3.1.2   Trade in services  
1.22.  During the review period, Chinese  Taipei switched from being a net importer to a net exporter 
of services. After running a declining deficit in the services account, equivalent to 1.1% and 0.8% 
of GDP in 2018 and 2019, respectively, Chinese  Taipei posted a surplus from 2020 onwards. Services 
exports grew at double -digit rates in 2021, after a sharp decline in 2020 due to the COVID -19 
outbreak (Tables  1.1 and 1.4). Exports rose de spite a sharp reduction in travel due to the pandemic, 
mainly bolstered by a surge in freight transport proceeds, as an increase in global trade and 
supply -chain bottlenecks led to an increase in freight rates. Chinese  Taipei imports services similar 
to th ose exported, namely transportation; manufacturing services and other business services 
(professional and management consulting services); telecommunications, computer, and 
information; and the use of trademarks or intellectual property (IP). This type of trade in services 
reflects that Chinese  Taipei is a knowledge -based economy, exporting emerging technologies, which 
also may have a component of services and IP. This level of innovation has partly allowed the 
economy to successfully deal with supply -chain  disruptions and caused the flow of goods and 
services to surpass pre -pandemic levels during the last two  years.  
Table  1.4 Trade in services, 2018 -22 
  2018  2019  2020  2021  2022  
Total exports (USD  million)  50,209  51,838  41,210  51,995  58,169  
Service exports (% change)a 11.0 3.2 -20.5  26.2 11.9  
(% of total exports)  
Manufacturing services  5.5 6.2 9.4 8.4 7.4 
Maintenance and repair services  3.0 2.7 3.3 1.9 2.0 
Transport  21.8 20.3 26.7 38.0 37.1 
Passenger  5.3 5.2 1.3 0.2 1.1 
Freight  15.7 14.3 24.5 36.9 35.3 
 Other (including postal and courier)  0.8 0.8 0.9 0.8 0.8 
Travel  27.3 27.8 4.4 1.4 4.7 
Business  2.0 2.0 0.3 0.1 0.5 
Personal  25.3 25.8 4.1 1.3 4.2 
Construction  2.4 1.9 1.7 1.5 1.3 
Insurance and pension  0.6 0.5 0.8 0.8 0.5 
Finance  6.2 6.4 8.0 6.8 6.8 
Charges for the use of IP, n.i.e.  3.1 2.7 4.1 3.9 3.5 
Telecommunications, computer and information  7.5 7.8 11.5 11.2 11.3 
Other business services  21.1 22.3 29.0 25.1 24.3 
Personal, cultural and recreational  0.7 0.7 0.7 0.6 0.7 
Public services  0.8 0.7 0.4 0.3 0.3 
Total imports (USD  million)  56,865  56,937  37,457  39,567  45,276  
Service imports (% change)a 5.4 0.1 -34.2 5.5 14.4 
0%10%20%30%40%50%60%70%80%90%100%
Exports Imports Exports ImportsChart 1.[]   Main trading partners of electronic products for intermediate goods , 2021
Source:  WTO calculations, based on UNSD Comtrade database.Electronic integrated circuits
(HS heading 8542)Electronic products 
(HS Chapter 85)
Hong Kong, China
Korea, Rep. of
FreezonesaChina
United StatesMalaysiaJapanSingapore
a   Includes goods exported from Chinese Taipei thereafter re -imported into Chinese Taipei.WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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    2018  2019  2020  2021  2022   
(% of total imports)  
Manufacturing services  4.8 3.3 4.1 5.1 4.3 
Maintenance and repair services  1.6 1.6 2.0 2.3 2.8 
Transport  21.9 20.8 25.8 24.2 22.3 
Passenger  5.0 4.2 1.0 0.4 0.7 
Freight  9.2 8.5 12.2 12.0 11.4 
Other (including postal and courier)  7.8 8.0 12.6 11.7 10.2 
Travel  34.2 36.0 8.1 3.2 6.9 
Business  5.2 5.1 1.4 0.7 1.1 
Personal  29.0 30.9 6.7 2.5 5.8 
Construction  2.3 2.6 4.0 5.2 6.2 
Insurance and pension  1.8 1.7 3.1 3.8 3.1 
Finance  2.9 3.5 3.6 3.6 4.8 
Charges for the use of IP, n.i.e.  6.3 5.7 11.1 11.5 11.1 
Telecommunications, computer and information  3.2 4.2 8.0 9.0 8.4 
Other business services  19.3 19.2 28.4 30.6 28.5 
Personal, cultural and recreational  0.5 0.4 0.3 0.3 0.4 
Public services  1.1 1.1 1.5 1.3 1.4 
Services balance (% of GDP)  -1.1 -0.8 0.6 1.6 1.7 
a Growth rates are calculated based on BOP figures in US  dollars.  
Source:  CBC. Viewed  at: http://www.cbc.gov.tw . 
1.3.2   Trends and patterns in inward direct investment  
1.23.  Inward direct investment flows decreased during 2020 -21, because of the pandemic, and 
recuperated in 2022 (Table  1.5). During the review period, EU  member  States , mainly t he 
Netherlands and Denmark, were the largest sources of approved investments in Chinese  Taipei, 
followed by British Overseas Territories in the Caribbean and then Japan (Table  1.6). Inward direct 
investment flows were largely concentrated in services, main ly finance and insurance, as well as in 
manufacturing of electronic parts and components.  Nevertheless, investment in electronic parts and 
components has declined substantially due to several large -scale investment projects that took place 
in the earlier p art of the review period (2018 to 2019) in comparison to the later part of the review 
period (2020 to 2022). By contrast, investment in financial services increased in Chinese  Taipei as 
a result of the development of online banking services, and investment  in consultancy or financial 
holding companies.11 In 2022, inward direct investment was also attracted to the electricity sector, 
specifically in wind farms,  as part of Chinese  Taipei's policy to expand the use of renewable energy 
and incentives granted to  industries by the "5+2 Innovative Industries Plan" (Section  2.4). 
Table  1.5 Inward and outward flows of direct investment by activity, 2018 -22  
(approval basis)  
 
2018  2019  2020  2021  2022  
Inward direct investment  
Total (USD  million)  11,440.2  11,196.0  9,144.3  7,476.3  13,303.3  
% of GDP  1.9 1.8 1.4 1.0 1.7 
By activity (% of total)       
Agriculture, hunting, forestry and fishing  0.03 0.05 0.21 0.08 0.00 
Mining and quarrying  0.00 0.00 0.01 0.00 0.00 
Manufacturing  51.7 38.4 18.5 22.6 17.2 
 Chemical material and products  13.9 1.2 1.7 2.3 1.8 
 Electronic parts and components  31.8 24.6 8.8 7.6 3.7 
 Machinery and equipment  0.5 6.8 0.9 0.2 5.9 
Electricity, gas and water  0.7 4.3 12.1 2.2 14.2 
Construction  0.4 0.6 0.9 3.8 0.6 
Services  47.2 56.7 68.3 71.4 67.9 
 Wholesale and retail trade  7.8 9.5 12.2 12.1 14.2 
 Information and communication  2.1 11.1 4.0 8.3 3.7 
 Finance and insurance  28.4 19.4 30.5 30.7 41.6 
 Real estate  4.0 2.5 5.2 8.7 2.8 
 Professional scientific and technical services  3.3 9.3 14.3 5.5 3.7 
Outward direct investment  
Total (USD  million)  22,792.3  11,024.2  17,711.6  18,462.3  15,009.0  
% of GDP  3.7 1.8 2.6 2.4 2.0 
 
11 Informatio n provided by the authorities.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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2018  2019  2020  2021  2022  
By activity (% of total)       
Agriculture, hunting, forestry and fishing  0.2 0.5 0.5 0.4 0.4 
Mining and quarrying  0.7 2.7 0.0 0.0 5.6 
Manufacturing  43.7 42.2 50.9 48.9 47.3 
 Chemical material and products  4.2 4.2 2.4 2.5 1.4 
 Electronic parts and components  10.0 12.0 29.6 27.8 18.7 
 Computer, electronics and optical products  3.9 6.1 3.9 7.5 4.3 
 Electrical equipment  1.5 4.2 2.6 1.4 4.8 
 Machinery and equipment  3.7 2.2 2.2 1.5 2.0 
Electricity, gas and water  0.1 1.5 1.7 0.3 0.2 
Construction  0.5 0.4 0.3 0.3 0.2 
Services  54.9 52.6 46.6 50.1 46.3 
 Wholesale and retail trade  8.1 13.9 13.4 18.7 9.8 
 Transportation and storage  1.4 2.3 1.7 1.2 13.0 
 Finance and insurance  41.5 29.5 27.3 27.0 17.0 
Source:  Investment Commission, Ministry of Economic Affairs (MOEA ). 
1.24.  Outward investment flows decreased during the period under review (Table  1.5). This may 
have partly resulted from the three reshoring programmes launched in 2019 designed to return 
capital to Chinese  Taipei to be invest ed in specific sectors (Section  2.4), as well as the adjustments 
in the global supply chain and investment environment that came about during the pandemic and 
thereafter. Outward investment flows, similar to inflows, continue to be concentrated in the 
manu facturing sector, predominantly in the electronic parts and components subsector, and in 
services. In the services sector, the share of outward investments in the finance sector decreased 
substantially from 41.5% in 2018 to 17% in 2022, while there has bee n some increase in 
investments in the wholesale and retail trade sector. China was the main investment destination 
throughout the review period. Other destinations that account for substantial shares of 
Chinese  Taipei's outward investment include the Briti sh Overseas Territories in the Caribbean 
in 2018 and 2019, the United  States in 2020, Japan in 2021, and Singapore in 2021 and  2022 
(Table  1.6). 
Table  1.6 Inward and outward flows of direct investment by sourc e and destination, 
2018 -22 (approval basis)  
 2018  2019  2020  2021  2022  
Inward direct investment  
Total (USD  million)  11,440.2  11,196.0  9,144.3  7,476.3  13,303.3  
% of GDP  1.9 1.8 1.4 1.0 1.7 
By source (% of total)       
EU-27 53.5 31.7 39.3 18.4 36.3 
 Denmark  0.6 6.1 25.4 0.4 26.9 
 Netherlands  30.6 20.5 4.4 10.0 6.8 
British Overseas Territories in the Caribbean  13.0 27.9 21.1 27.3 18.8 
Japan  13.3 11.4 10.5 9.7 12.8 
Australia  1.0 6.4 0.9 1.4 8.6 
United  Kingdom  5.3 2.5 6.9 4.4 4.0 
Singapore  0.9 2.2 2.7 5.6 3.7 
Samoa  3.1 3.2 3.6 4.9 3.1 
United  States 2.3 3.2 2.9 9.4 3.0 
Thailand  0.6 0.6 0.1 5.6 2.8 
Hong Kong,  China  3.0 5.8 6.1 4.1 2.7 
Korea, Republic of  0.4 0.3 0.3 3.4 1.0 
Canada  0.4 0.1 0.2 0.5 0.3 
Malaysia  0.8 0.4 0.5 0.6 0.3 
Bermuda  0.1 0.0 0.1 0.2 0.3 
Other  2.3 4.2 5.0 4.3 2.4 
Outward direct investment  
Total (USD  million)  22,792.3  11,024.2  17,711.6  18,462.3  15,009.0  
% of GDP  3.7 1.8 2.6 2.4 2.0 
By source (% of total)       
China  37.3 37.9 33.3 31.8 33.6 
Singapore  0.7 5.8 3.6 20.1 22.4 
United  States 8.9 5.1 23.7 2.6 7.3 
British Overseas Territories in the Caribbean  25.9 11.9 6.2 6.4 6.3 
EU-27 5.3 6.2 8.5 3.9 3.9 
Viet Nam 4.0 8.3 4.3 5.7 3.7 
Korea, Republic of  1.0 0.1 0.2 2.3 3.1 
Australia  1.0 2.9 0.1 0.1 2.8 
Indonesia  0.6 1.3 2.9 1.4 2.0 WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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   2018  2019  2020  2021  2022  
Thailand  0.6 3.0 0.9 1.8 1.8 
Hong Kong,  China  2.5 4.1 5.1 1.4 1.6 
Samoa  1.8 3.8 2.3 1.0 1.5 
India 1.6 0.6 0.9 0.9 0.7 
Malaysia  0.2 0.9 0.2 0.7 0.6 
Japan  2.7 0.7 2.2 12.0 0.5 
Panama  0.1 0.7 0.0 0.6 0.4 
United  Kingdom  0.3 0.8 0.0 0.0 0.4 
Brazil  0.0 0.1 0.0 0.1 0.2 
Philippines  0.7 1.0 0.5 0.1 0.2 
Bermuda  2.7 0.6 0.2 5.7 0.1 
Other  1.9 4.2 4.7 1.3 7.0 
Note:  Sorted by year 2022.  
Source:  Investment Commission, MOEA.  
 WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  2  TRADE AND INVESTMENT REGIMES  
2.1  General framework  
2.1.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese  Taipei) is 
governed by the principle of separation of powers, namely, the executive, legislature, judiciary, 
examination, and control branches. Their overall structure and functions have remained broadly 
unchanged since the previous Review conduct ed in 2018.  
2.2.  The executive branch, composed of 32  agencies, including 14  ministries and the Central Bank1, 
is the highest administrative organ and is responsible for evaluating statutory and budgetary bills, 
including the conclusion of treaties. During the  review period, a Ministry of Digital Affairs was 
established to facilitate digital development, coordinate the overall planning of digital governance 
and infrastructure, and assist in the digital transformation of public and private sectors.2 
2.3.  The legisla ture has the power to decide by resolution upon any law, statute, special act, or 
general principle submitted to it, which must then be promulgated before it comes into force. The 
legislature is composed of 113  members, who serve a four -year term, renewabl e subject to 
re-election.3 All bills and regulations regarding trade, investment, or intellectual property 
rights  (IPRs) are published for public comment prior to being submitted to the legislature. In 2016, 
the comment period was extended from 14 days to  60 days and, as of 2017, bills and draft 
regulations must be published on the Public Policy Online Participation Platform. In 2018, to further 
increase transparency, the Directions for Implementing Online Participation in Public Policy were 
amended to req uire all authorities to respond to comments  (Box 2.1). 
Box 2.1 Legislative process, 2023  
Submission of a bill  
Regular bills may be proposed by any of the branches or by legislators themselves, except for bills regarding 
certain areas, such as budgetary bills, which may only be submitted by the executive branch. Members of the 
public may also submit a petition to t he legislature. Once a petition has been accepted by the legislature, it 
follows the same procedures as a bill.  
Legislative approval  
In general, bills require at least two readings in the legislature, except for statutory and budgetary bills, which 
by law require a third reading. After the first reading, bills may be referred to the appropriate committee for 
further review, sent directly to the second reading, or rejected. The second reading consists of an 
article -by-article discussion. At this stage, th e bill may be amended. At the second reading, a bill may be 
approved, rejected, or passed to the third reading. In the case of statutory and budgetary bills, a third  reading 
by the legislature is mandatory and focuses purely on form, not substance. Therefo re, revisions other than 
redrafting are not permitted, unless bills are found to contradict other laws.  
Executive approval  
Statutory and budgetary bills that have passed the third reading by the legislature are sent to the executive 
branch, which may re quest the reconsideration of a bill if it finds the bill difficult to implement, in which case 
it will return the bill to the legislature. If two  thirds of the legislators present at the meeting uphold the original 
resolution, the head of the executive bra nch must either accept the bill or resign from office.  
Public comment  
Civil society may attend legislative deliberations and provide comments.  
Promulgation of a bill  
Promulgation is the final step of the legislative process.  
Source:  Viewed  at: https://www.ly.gov.tw/EngPages/Detail.aspx?nodeid=335&pid=43232 . 
2.4.  The judiciary is responsible for judicial interpretation, adjudication, and dis ciplinary cases. The 
judicial system is composed of the Supreme Court, High Courts, and District Courts, which deal with 
civil and criminal cases; the High Administrative Court, the Supreme Administrative Court, and 
 
1 Viewed  at: https://english.ey.gov.tw/ . 
2 Organisation Act of the Ministry of Digital Affairs, 19  January  2022.  
3 Viewed  at: https://www.ly.gov.tw/Engpages/index.aspx . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  District Courts, which deal with adminis trative proceedings; and the Intellectual Property and 
Commercial Court, which deals with intellectual property litigation.4 
2.5.  The examination branch is responsible for the examinations and management of all civil service 
personnel. It exercises its authori ty independently and enjoys equal status with the rest of the 
branches.5 The control branch is responsible for exercising the powers of impeachment, censure, 
and audit. It may also undertake investigations and take corrective measures against public 
agencies.6 
2.2  Trade policy formulation and objectives  
2.6.  The main agencies in charg e of trade policy development and implementation are the Ministry 
of Economic Affairs (MOEA) and the Bureau of Foreign Trade (BOFT) under the MOEA. Their functions 
have remained virtually unchanged since the previous Review. Other ministries and agencies a re 
also involved in trade and trade -related issues, such as the Ministry of Finance (MOF) and the 
Ministry of Health and Welfare (MOHW).  
2.7.  The MOEA continues to be responsible for developing and implementing economic, trade, and 
investment policies, and it i s also in charge of developing sector al policies, such as on energy, 
industry, mining, and water resources. It deals with issues such as the imposition of safeguard 
measures and the determination of injury under anti -dumping and countervailing investigatio ns; 
Technology Industrial Parks (TIP s) (formerly called Export Processing Zones (EPZs) ) and related  
incentives; small and medium -sized enterprises (SMEs); standardization, metrology, and product 
inspection; and IPRs.  
2.8.  The BOFT is the administrative agency r esponsible for, inter alia, (i) developing and 
implementing trade policies, rules, and regulations; (ii)  participating in global economic and trade 
fora and enhancing trade relations; (iii)  handling and coordinating trade negotiations, consultations, 
and d isputes; (iv)  administering the import and export regime; and (v)  promoting overseas trade in 
general.7 
2.9.  The Office of Trade Negotiations (OTN), established in 2016, under the executive branch 
continues to be involved in global trade negotiations. The OTN acts as a high -level coordination 
mechanism among the different agencies involved in overseas trade to provide support related to 
economic and trade policy including negotiations. More specifically, the OTN's mission includes 
(i) participating in multilate ral and bilateral trade negotiations, including regional integration; 
(ii) promoting economic and trade cooperation at the global level; and (iii)  aligning Chinese  Taipei's 
trade regime with international regulations.8 
2.10.  The Committee on Global Economic and Trade Strategy was dismantled in 2021 as some of 
its functions were taken over by the OTN.  
2.11.  Trade policy constitutes one of the main pillars of Chinese  Taipei's New Model for Economic 
Development launched in 2016, which is based on sustainability, innovation, employment, and 
equitable distribution. The main goal of the New Model is to use export and local demand as twin 
engines for growth, building close ties between overseas trade and the local economy. To that end, 
according to the authorities, Chinese  Taipei's trade policy aims at reinforcing its global and regional 
connections, and actively participating in multilateral and bilateral economic cooperation fora, 
including free trade negotiations.  It also aims to help Chi nese Taipei adapt to a changing global 
environment and meet the new challenges arising in the wake of the COVID -19 pandemic, such as 
supply chain reorganization, in the spirit of attaining stability and adapting to change.  
2.12.  During the review period, two dev elopment plans (NDPs) were in place, focusing on economic, 
trade, and investment goals: (i)  the 17th development plan (NDP 2017 -2020); and (ii)  the 
18th development plan (NDP  2021-2024). Chinese  Taipei started implementing its New Model for 
Economic Develo pment  2.0 under the NDP  2021-2024, which calls for Chinese  Taipei to pursue 
 
4 Viewed  at: https://www.judicial.gov.tw/en/mp -2.html . 
5 Viewed  at: https://www.exam.gov.tw/en/ . 
6 Viewed  at: https://www.cy.gov.tw/en/cp.aspx?n=230 . 
7 Viewed  at: https://www.trade.gov.tw/english/Pages/Detail.aspx?nodeID=4660&pid=743413 . 
8 Viewed  at: https://www.ey.gov.tw/otnen/7D2F03293BCDC89C . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  various strategies, including (i)  actively focusing on six core strategic industries9; (ii) continuing to 
promote industrial innovation and transformation; (iii)  improving the eco nomic environment for 
start-ups; (iv)  developing into a capital -deployment hub for Asian businesses; and (v)  building a 
digital economy.10 
2.13.  In 2017, Chinese  Taipei launched its Forward -looking Infrastructure Development Program, 
with a 30 -year horizon, to e nsure the development of the infrastructure needed to attain the goals 
stated in the NDPs. The Program provides funding to develop projects in, inter alia, railways, water 
management, green energy, digital infrastructure, urban and rural infrastructure, fo od safety, 
childcare facilities, and human capital. This Program  seeks to promote private -public partnerships 
and create employment opportunities in highly strategic sectors.  
2.14.  The "5+2 Innovative Industries Plan" aims to boost industrial development and enh ance the 
start-up ecosystem. The Plan's purpose is to shift the industrial base away from the production of 
parts and components towards high -value -added services and total solutions. Launched in 2016, the 
Plan was designed to complement the New Model for Economic Development. Initially covering 
five industries (intelligent machinery, Asia Silicon Valley, green energy, biomedicine, and aerospace ) 
of strategic importance for linking local industries to global markets, two  other areas (high -value 
agriculture and the circular economy) were added later.  
2.15.  One of the main goals of Chinese  Taipei's trade policy is to promote the global expansion of 
its industries, for which it actively seeks to sign trade and investment agreements with partners. 
This is also one of the main goals of the New  Southbound Policy launched in 2016, which seeks to 
reduce Chinese  Taipei's overdependence on any single market and strengthen its relations with its 
neighbours in the South and with the rest of the world. The Policy has four strat egic areas – economic 
and trade collaboration, talent exchange, resource sharing, and regional connectivity – and is 
expected to enhance integration in the regional economy.  
2.16.  Chinese  Taipei's efforts to advance digital transformation have resulted in new pa rticipatory 
approaches to policy development. During the review period, Chinese  Taipei drafted for the first time 
an Action Plan (2021 -2024), which aims at promoting transparency, accountability, participation, 
and inclusion, emphasizing the importance of cooperating with civil society and of making relevant 
information available to the public, as required by law.11 In addition to the Public Policy Online 
Participation Platform, Chinese  Taipei implemented a programme under which executive agencies 
must desi gnate a liaison officer responsible for communicating with stakeholders during all steps of 
policy development. In addition, through the Public Policy Online Participation Platform, another 
means of engagement allows for an open consultation process that b rings together ministries, 
experts, business leaders, and citizens to discuss current policy issues and make recommendations 
on legislation.12 Moreover, Chinese  Taipei relies on specialized institutions to help determine and 
develop its policies. For example, the Chung -Hua Institution for Economic Research (CIER) makes 
recommendations regarding key economic and industry policies towards achievin g sustainable 
economic growth and development.13 
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.17.  Chinese  Taipei is a supporter of open trade and the rules -based multilateral trading system, 
as embodied by the WTO, and, according to the authorities, is determined to safeguard a fair, 
 
9 These are information and digital industries (including R&D on semiconductor advanced manufacturing 
technology, 5G, and the IoT), strategic industries, cybersecurity industry, precision health industries, strategic 
stockpile industries, and green and rene wable energy industries.  
10 Viewed  at: 
https://www.ndc.gov.tw/en/Content_List.aspx?n=9649AD857AF274BA&upn=C5B71E23EEC92FCF . 
11 Viewed  at: https://gec.ey.gov.tw/File/2FAAAD2B3BD2A1BF/ec011260 -2970-4cf8-8307-
d50f3cb80ea9?A=C . 
12 Viewed  at: https://join.gov.tw/ . 
13 Viewed  at: https://www.cier.edu.tw/about/vision . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  transparent, and predictable trade and investment environment.14 Its trade policies have been 
reviewed four times, most recently in September  2018.15 
2.18.  Chinese  Taipei has been a Member of the WTO since January  2002 and grants at least 
MFN treatment to all WTO Members. It is a party to both the Agreement on Trade in Civil Aircraft 
and the revised Agreement on Government Procurement. It has accepted the 2005 Protocol 
Amending the TRIPS  Agreement16 and the Agreement on Trade Facilitation.17 It has also notified its 
preferential treatment to services and service providers of least developed countries  (LDCs).18 Under 
the Information Technology Agreement (ITA), Chinese  Taipei bound at zero -rate tariffs all 
IT products covered by the Agreement in 19 97, and subsequently participated in the expansion of 
the ITA's product coverage.19 
2.19.  Chinese  Taipei actively participated in WTO discussions and initiatives during the review 
period. It participated in the Joint Initiative on Electronic Commerce20, and it c o-sponsored a 
communication containing ideas to reinvigorate the Work Programme on Electronic Commerce.21 It 
was also involved in the negotiations leading to the adoption of the disciplines contained in the 
Reference Paper on Services Domestic Regulation22 and submitted its draft Schedule of Specific 
Commitments as a contribution to the finalization of the negotiations.23 Chinese  Taipei is a member 
of the Informal Working Group on MSMEs, and was a co -sponsor of the Communication on Trade 
and Environmental S ustainability, which aims at organizing structured discussions for interested 
WTO Members as well as a dialogue with external stakeholders on trade and environmental 
sustainability.24 
2.20.  During the review period, Chinese  Taipei was active in the negotiations on fisheries subsidies, 
trade and public health, and WTO reform. Chinese  Taipei supports any proposal that restores a fully 
functioning dispute settlement mechanism and proposed to start the selection processes for filling 
vacancies on the App ellate  Body.25 On agriculture, it co -sponsored a Joint Statement on Agriculture 
Export Prohibitions or Restrictions relating to the World Food Programme.26 
2.21.  Since 2018, Chinese  Taipei has participated as a complainant in one case, namely, 
India – Tariff Tre atment on Certain Goods in the Information and Communications Technology 
Sector  (DS588); there have been no cases brought against Chinese  Taipei. It participated as a 
third party in 37 trade disputes.27 
2.22.  During the review period, Chinese  Taipei made notific ations to WTO Committees in most areas 
(Table  A2.1).  
2.3.2   Regional and preferential agreements  
2.23.  Chinese  Taipei has a limited number of regional trade agreements (RTAs) and economic 
cooperation agreements (ECAs). It places importance in pursuing economic and trad e relations with 
other trading partners in the region and beyond and securing a central role in global and regional 
supply chains. Chinese  Taipei has concluded RTAs with Belize, El  Salvador, Eswatini, Guatemala, 
Honduras, the Marshall  Islands, New  Zealand,  Nicaragua, Panama, Paraguay, and Singapore; and a 
 
14 WTO document WT/MIN(22)/ST/126 , 12 June 2022.  
15 WTO document WT/TPR/S/377/Rev.1 , 6 March  2019.  
16 WTO document WT/Let/870 , 2 November  2012.  
17 WTO document WT/Let/1069 , 3 September  2015. Chinese  Taipei designated all provisions contained 
in Articles 1 to 12 of the Agreement under Category A for full implementation upon the entry into force of the 
Agreement, in WTO document WT/PCTF/N/TPKM/1 , 26 June 2014.  
18 WTO Ministerial Conference Decision on Preferential Treatment to Services and Service Suppliers of 
LDCs ( WT/L/847 ); and WTO document S/C/N/811 , 27 July 2015.  
19 Chinese  Taipei's new schedule, which was approved by the Particip ants to the ITA Expansion, was 
circulated in WTO document G/MA/W/117/Add.22 , 16 December  2015.  
20 WTO document WT/MIN(17)/60 , 13 December  2017.  
21 WTO document WT/GC/W/855 , 11 November  2022.  
22 WTO document S/C/W/406 , 20 December  2022.  
23 WTO docum ent INF/SDR/ID S/TPKM/Rev.1 , 27 October  2021.  
24 WTO document WT/CTE/W/249 , 17 November  2020.  
25 WTO document WT/MIN(22)/ST/126 , 12 June 2022.  
26 WTO document WT/L/1109 , 21 January  2021.  
27 WTO, Dispute Settlement: The Disputes . Viewed  at: https://www.wto.org/english/tratop_e/  
dispu_e/find_dispu_cases_e.htm . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Cross -Straits Economic Cooperation Framework Agreement (ECFA).28 Chinese  Taipei notified the 
WTO that the operation of its FTA with Nicaragua and El  Salvador would be suspended indefinitely 
as of 1  July 2022 and as of 15  May 2023, respectively.29 
2.24.  Since the previous Review, two  ECAs have entered into force with Belize and Eswatini, and 
another one has been signed with the Marshall  Islands. These ECAs aim at strengthening trade and 
economic relations between the parties and exploring new areas of cooperation. They provide for 
limited reciprocal or unilateral tariff preferences30, and the provision of technical assistance and 
cooperation in areas such as customs and trade facilitation; standards, technical regu lations, and 
conformity assessment procedures; sanitary and phytosanitary measures; and innovation. These 
ECAs highlight the importance of promoting cross -border investment flows and technology transfers, 
as well as private sector involvement in the develo pment process. Given the size differences among 
the economies involved, these ECAs provide for asymmetrical treatment in favour of the smaller 
economy. In 2022, bilateral trade between Chinese  Taipei and Belize, Eswatini, and the 
Marshall  Islands amounted to USD  11.8 million, USD  16.2 million, and USD  438.6  million, 
respectively.31 
2.25.  The ECFA between China and Chinese  Taipei came into effect in 2010. The ECFA aims at 
reducing tariffs, eliminating non -tariff trade barriers, promoting trade and investment conta cts, and 
boosting economic development and employment. After the ECFA's entry into force, both parties 
implemented an early harvest programme that includes tariff concessions for 539 products from 
Chinese  Taipei and 267 from China. In the area of services,  the programme covers 7 sectors for 
Chinese  Taipei (including banking and movies), and 11 services sectors for China (including banking, 
securities, hospitals, and accounting). The ECFA provides for two additional follow -up agreements 
on goods and services . The Trade in Services Agreement, signed in 2013 and not yet in force, covers 
80 sectors from China (including finance, retail, electronics, publishing, and travel) and 64 from 
Chinese  Taipei (including transportation, tourism, and traditional Chinese med icine), all exceeding 
the level of Chinese  Taipei's WTO commitments. The negotiations on trade in goods were suspended 
in 2016.  
2.26.  Chinese  Taipei has applied for accession to the Comprehensive and Progressive Agreement 
for Trans -Pacific Partnership (CPTPP) an d is also seeking to join other subregional economic 
integration effort.  
2.27.  Chinese  Taipei continues to offer non -reciprocal trade preferences to 45 LDCs. The 163  tariff 
lines covered by the Preferential Trade Arrangement (PTA) have a preferential tariff rate  of zero.32 
Goods imported from LDCs are regarded as originating if the goods are wholly obtained or 
value -added accounts for no less than 50%.33 Chinese  Taipei receives preferential treatment from 
Australia under its Generalized System of Preferences (GSP ).34 
2.3.3   Other agreements and arrangements  
2.28.  Chinese  Taipei is a member of the Asia -Pacific Economic Cooperation (APEC). In 2014, APEC 
members committed to taking steps towards greater regional economic integration by endorsing a 
roadmap for the Free Trade Area of the Asia -Pacific (FTAAP). In 2016, the Lima Declaration on FTAAP 
was endorsed.35 In 2022 APEC reiterated its commitment to advance economic integration in the 
region, including through the work on the FTAAP agenda.36 
 
28 WTO RTA database. Viewed  at: 
http://rtais.wto.org/UI/PublicSho wMemberRTAIDCard.aspx?rtaid=713 . 
29 WTO documents WT/REG267/N/2 , 31 March  2022; WT/REG267/N/2/Rev.1 , S/C/N/500/Add.1 , 
12 May 2022; and WT/REG283/N/2 , S/C/N/544/Add.1 , 13 April 2023.  
30 Under the ECA with Eswatini, Chinese  Taipei commits to unilaterall y eliminate tariffs on a set of goods 
originating in Eswatini, except for sugar, natural honey, and avocados, which are subject to an annual TRQ.  
31 Viewed  at: https://cuswebo.trade.gov.tw/FSCE040 F/FSCE040F . 
32 Information provided by the authorities.  
33 WTO document G/RO/LDC/N/TPKM/1/Rev.1 , 22 July 2020.  
34 Information provided by the authorities.  
35 APEC, Annex  A: Lima Declaration on FTAAP . Viewed  at: https://www.apec.org/meeting -
papers/leaders -declarations/2016/2016_aelm/2016_annex -a. 
36 APEC, 2022 APEC  Ministerial Meeting . Viewed  at: https://www.apec.org/meeting -papers/annual -
ministerial -meetings/2022/2022 -apec-ministerial -meeting . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  2.29.  Chinese  Taipei, through its Semicond uctor Industry Association, is a member of the 
World  Semiconductor Council (WSC), a forum established in 1999 to encourage cooperation in the 
field. The WSC also supports the expansion of the global market for IT  products and services.37 
In 2021, the semiconductor industry in Chinese  Taipei contributed 26% of global semiconductor 
revenue. In terms of the production of advanced semiconductor chips below 16  nm, Chinese  Taipei's 
share in the global market was 61%.38 
2.30.  Chinese  Taipei uses trade as a tool to support marginalized groups that have not been able 
to benefit from globalization and trade agreements. To that effect, since 2022 Chinese  Taipei has 
participated in the Indigenous Peoples Economic and Trade Cooperation Arrangement (IPETCA), a 
non-binding economic arrangement between New  Zealand and certain APEC economies designed to 
boost indigenous peoples' participation in trade.39 
2.31.  Under the Trade and Investment Framework Agreement (TIFA), a platform for promoting 
trade and investment, Chinese  Taipei and the United  States held talks, in June  2021, on such issues 
as workers' rights and labour matters in global supply chains, the importance of having secure and 
resilient supply chains, the reform of the multilateral trading system, and out standing trade and 
investment concerns regarding copyright legislation, digital piracy, financial services, investment, 
and regulatory transparency.40 More recently, a new trade negotiation initiative was launched with 
the United  States41; issues to be neg otiated include customs administration and trade facilitation, 
good regulatory practices, anti -corruption, and SMEs.42 
2.4  Investment regime  
2.32.  Investment and innovation play crucial roles in Chinese  Taipei's economy as the main drivers 
of economic growth, and ar e therefore considered at the core of the development agenda. During 
the review period, Chinese  Taipei engaged in dialogue with many trading partners to build economic 
partnerships on investment issues, with a view to creating linkages with overseas market s and 
attracting overseas investment.43 
2.33.  The Investment Commission under the MOEA (MOEAIC) remains in charge of screening and 
approving inward and outward investment and technical cooperation. In performing these duties, 
the Commission follows Chinese  Taipe i's policy of economic liberalization. The Commission's plan 
includes such goals as (i)  simplifying the procedures of application, review, and approval of overseas 
investment, based on the criterion of "free in principle, with deliberation for exceptional cases"; 
(ii) improving the services provided to overseas investors; and (iii)  assisting local enterprises in their 
efforts to expand and invest overseas.44 
2.34.  The Department of Investment Services under the MOEA continues to be responsible for 
(i) attracting investment to Chinese  Taipei; (ii)  encouraging Chinese  Taipei businesses to return to 
and invest in Chinese  Taipei; (iii)  assisting companies to invest overseas; and (iv)  attracting talent 
from abroad. An investment promotion agency within the Department o f Investment Services 
provides a one -stop window for businesses to establish presence in Chinese  Taipei. Assistance 
includes evaluating the investment proposal and partner matchmaking in the pre -investment phase; 
obtaining the necessary licences and incent ives in the investment phase; and helping with the 
expansion of operations and investment in start -ups in the post -investment phase. The investment 
 
37 WSC (2022), "Joint Statement of the 26th Meeting of the World Semiconductor Council", 19  May. 
Viewed  at: http://www.semiconductorcouncil.org/wp -content/uploads/2023/01/2022 -WSC-Joint-Statement -
with-Annex -Final-2.pdf. 
38 WTO document WT/DS615/3 , 5 January  2023.  
39 Asia Society Policy Institute (2022), "The Evolution of the Global Trading System: How the Rise of 
Asia and Next Generation Challenges Will Shape the Future Economy". Viewed  at: 
https://asiasociety.org/sites/default/files/2022 -11/ASPI_GlobalTradsyst_report_fin.pdf . 
40 Office of the United  States Trade Representative. Viewed  at: https://ustr.gov/about -us/poli cy-
offices/press -office/press -releases/2021/june/united -states -and-taiwan -hold-dialogue -trade -and-investment -
priorities . 
41 Office of the United  States Trade Representative. Viewed  at: https://ustr.gov/sites/default/files/2023 -
05/AIT -TECRO%20Trade%20Agreement%20May%202023.pdf . 
42 Office of the United  States Trade Representative. Viewe d at: https://ustr.gov/about -us/policy -
offices/press -office/press -releases/2023/may/ustr -announcement -regardi ng-us-taiwan -trade -initiative . 
43 WTO document WT/MIN(22)/ST/126 , 12 June 2022.  
44 Viewed  at: https://www.moeaic.gov.tw . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  promotion agency also helps investors obtain land to establish plants and offices. For investments 
exceeding  TWD 500 million, the MOEA assigns a project manager to accelerate the process.45 
2.35.  The main legislation governing overseas investment in Chinese  Taipei did not change during 
the review period and was last amended in 1997.  This legislation regulates both por tfolio investment 
and FDI, as well as the provision of loans .46 According to the legislation, the origin of an overseas 
legal entity is determined by the law under which that entity was incorporated. During the review 
period, several amendments to the "Sta tute for Investment by Foreign Nationals" were proposed to 
encourage overseas investment by simplifying the reporting and approval process. If passed by the 
legislature, these amendments would replace the existing approval investment process with an 
ex post reporting mechanism, while the screening procedures for investment in certain industries 
would be tightened.47 
2.36.  The legal framework for overseas investment includes other specific regulations, such as 
regulations on the approval of Chinese investments in Chinese  Taipei, which were amended in 
December  2020 to address the increasingly diversified and complex structure of overseas 
investments and to ensure that investors do not bypass investment control mechanisms. The 
amended Regulations introduce stricter c riteria for identifying investment made through third -area 
intermediaries, expand the scope of investment activities subject to regulatory approval, and tighten 
restrictions on investment with political or military affiliations.48 
2.37.  In accordance with the le gislation, all overseas investors require an approval by the MOEAIC  
to invest in Chinese  Taipei49, except for investments in EPZs or Science Parks, which must be 
approved by the relevant specialized agency. For overseas investment in restricted sectors, an 
approval by the relevant specialized agency, in addition to the MOEAIC approval, is required.  
2.38.  Banned and restricted activities in Chinese  Taipei are specified in Chinese  Taipei's negative 
list (prohibited a nd restricted industries) for inward investment, which was last amended in 2018. 
The list is regularly reviewed, and updated if necessary.50 Overseas investors are banned from 
investing in certain areas in order to safeguard security, public order, good cu stoms and practices, 
or public health. Investment in other industries is banned or restricted by specific laws. In certain 
areas, restrictions are imposed in the form of maximum percentages (e.g.  for satellite television 
broadcasting, overseas investors mu st hold less than 50% of total shares). In some industries, such 
as for gas supply enterprises,  the limits refer to the place of origin of members in administration 
boards, in which case only natural persons from Chinese  Taipei may sit on the board. In the  case of 
tobacco and alcohol production, the restriction takes the form of a licence. For animal husbandry, 
only investments above a certain threshold are allowed, in order to attract technology -intensive and 
capital -intensive investment (Table  A2.2).  
2.39.  In addition to the legislation regarding overseas investment, Chinese  Taipei relies on a broad 
network of bilateral investments treaties (BITs) to promote investment and cooperation with trading 
partners. In December  2019, a new BIT with Viet  Nam was signed to  replace one signed in 1993; it 
has been in force since May  2020. A new BIT was also signed with India in December  2018, which 
entered into force on 14  February  2019, replacing the 2002 BIT. During the review period, two  new 
double -taxation agreements (DTA s) entered into force, with the Kingdom  of Saudi  Arabia and 
 
45 Viewed  at: https://investtaiwan.nat.gov.tw . 
46 Investment covered by these Statutes includes the purchasing of shares from a company 
incorporated in Chinese  Taipei or contributing to the capital of such a company; establishing a branch office, a 
proprietary company, or a partnership in Chinese  Taipei;  and providing a loan to an invested company for a 
duration of more than one year. Inward investments in listed, over -the-counter, and emerging stock 
companies with single acquisition of less than 10% of shares are under the jurisdiction of the Securities and 
Futures Bureau, Financial Supervisory Commission, and is governed by a separate regulation concerning 
inward  investment in securities (information provided by the authorities).  
47 Viewed  at: https://www.taipeitimes.com/News/taiwan/archives/2019/01/04/2003707315 . 
48 Viewed  at: https://www.ait.org.tw/20 22-investment -climate -statements -taiwan/ . 
49 "Statute for Investment by Foreign Nationals", Article  8. 
50 Viewed  at: https://www.moeaic.gov.tw . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  the Czech  Republic .51 In 2021, an Amending Protocol for updating the original DTA signed in 2002 
with the United  Kingdom entered into force. Investment issues are also addressed in several RTAs.  
2.40.  Chinese  Taipei maintains a series of incentives to promote local investment and attract 
overseas investment, which, in addition to the ones provided under the Free Trade Zones (FTZs), 
the Science Parks, EPZs/Technology Industrial Parks (TIPs), and the Agric ultural Technology Parks 
(Section  3.3.1), consist mainly of tax deductions and other support measures (Table  2.1). During 
the review period, new incentive programmes were implemented. In  2019, Chinese  Taipei launched 
three  reshoring programmes designed to promote the return of local companies to Chinese  Taipei 
and invest in specific sectors, particularly those covered by the  "5+2 Innovative Industries Plan". 
Under these programmes, companies investing in the latter innovative industries may rent land at 
concessionary rates and have access to finance at preferential rates. As of January  2023, as a result 
of these incentives, investments worth TWD  1.9 trillion had been attracted.52 
Table  2.1 Investment incentives,  2023  
Incentive  Description  Legal authority  
Tax incentives  
Research & development 
credits  Companies or limited partnerships that have not 
committed severe violations of environmental 
protection, employment, or food safety laws in 
the last three years may select one of the 
following incentives for crediting the expenditure 
incurred by them in R&D against the enterprise 
income tax. The creditable amount shall not 
exceed 30% of the income tax payable by them 
in the current year:  
(1) Up to 15% of the  company's expenditures 
may be deducted from its enterprise income tax 
for the current year; or  
(2) Up to 10% of such expenditures may be 
credited over three years starting from the 
current year against the enterprise income tax 
payable by the company.  Statute for Industrial Innovation 
(Article  10) 
Capitalization of earnings  Companies that use undistributed earnings to 
make substantive investments may deduct the 
invested amount from their undistributed 
earnings and are exempt from the enterpris e 
income tax.  Statute for Industrial Innovation 
(Article  23-3) 
Smart machinery and 
5G equipment investment  Companies or limited partnerships that have not 
committed severe violations of environmental 
protection, employment, or food safety laws in 
the last  three years with expenditures totalling 
between TWD  1 million and TWD  1 billion are 
entitled to apply for a 5% deduction of the 
corporate income tax for the current year or 
a 3% deduction over a period of three years. 
Each annual investment creditable amo unt shall 
not exceed 30% of the payable enterprise 
income tax in the current year.  Statute for Industrial Innovation 
(Article  10-1) 
Tariff exemptions  Imported machinery that local manufacturers are 
not able to produce may benefit from import 
tariff exemptions.  Customs Import Tariff (Note  13 
of Chapter  84, Note  7 of 
Chapter  85, and Note  3 of 
Chapter  90) 
Technology introduction  Royal ty payments to overseas companies for 
imported new production technologies or 
products using patents, trademarks, or oth er 
special rights owned by overseas companies are 
exempt from corporate income tax, subject to 
approval by the MOEA's Industrial Development 
Bureau.  Income Tax Act (Article  4) 
 
51 UNCTAD Investment Policy Hub. Viewed  at: 
http://investmentpolicyhub.unctad.org/IIA/CountryBits/205#iiaInnerMenu ; and information viewed at: 
https://www.trade.gov.tw/english/Pages/List.aspx?nodeID=663 . 
52 Viewed  at: 
https://investtaiwan.nat.gov.tw/showPageeng1135?lang=eng&search=1135&menuNum=47 . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Incentive  Description  Legal authority  
Promotion of Private 
Participation in 
Infrastructure Projects  Tax and land acqu isition incentives.  Act for Promotion of Private 
Participation in Infrastructure 
Project  
R&D subsidies  
Global R&D Innovation 
Partner Programme  This Programme encourages global companies to 
engage in R&D of key technologies with 
Chinese  Taipei companies. Such subsidies cover 
as much as 50% of the Programme.  n.a. 
Industrial Upgrade & 
Innovation Platform 
Programme  The Programme encourages R&D by i ndustries 
and the maximum subsidy amount is 40% -50% 
of the total project funding, depending on the 
nature of the project.  n.a. 
Financing  
Low-interest loans for 
upgrade of machinery and 
equipment  The maximum loan amount is 80% of the cost of 
the purchase of machinery for the project. The 
total amount for each applicant is capped at 
TWD 400 million and the maximum amount for a 
loan to purchase net zero emissions machinery 
and equipment is TWD  1 billion.  n.a. 
Incentives for recruiting talent abroad  
"Employment Gold Card"  Overseas professionals who intend to engage in 
special professional work in Chinese  Taipei may 
apply for a "Four -in-one Employment Gold Card", 
a permit that serves as a work permit, a resident 
visa, an alien residence certificate, and a 
re-entry permit and is valid for 1 to 3 years.  "Act for the Recruitment and 
Employment of Foreign 
Professionals" (Article  9) 
Income tax deduction  Overseas professionals approved for residency in 
Chinese  Taipei for the first time or those who 
have been granted an "Employment Gold Card", 
and have a salary of more than TWD  3 million, 
are eligible for a 50% deduction of total income 
tax amounts exceeding TWD  3 million.  "Act for the Recruitment and 
Employment of Foreign 
Professionals" (Article  20) 
n.a. Not applicable.  
Source:  Compiled by the WTO Secretariat, based on information available at www.investtaiwan.nat.gov.tw . 
2.41.  Local governments in Chinese  Taipei also gran t incentives for companies relocating their head 
offices and/or investing and hiring locally. For example, the Taipei City government promotes 
innovative entrepreneurship, attracts investment, and creates a high -quality business environment 
by granting sub sidies and other financial aid for R&D, SMEs, branding, vocational training for 
workers, and rent.53 Similar incentive programmes exist in Taoyuan City, Hsinchu City, and other 
municipalities.  
2.42.  During the review period, the executive branch approved amendme nts to the Statute for 
Industrial Innovation (SII) that are currently being considered by the legislature. The amendments 
offer new tax benefits to Chinese  Taipei companies engaging in technical innovation and playing a 
crucial role in the global supply ch ain. The amendments' main goal is to ensure the development of 
next-generation industries and technologies, strengthen the overall resilience of supply chains for 
semiconductor and other industries, and consolidate Chinese  Taipei's global competitive advan tage. 
2.43.  Moreover, in order to eliminate legal barriers to corporate investment and improve the overall 
investment climate, Chinese  Taipei promotes deregulation and reform and coordinates with 
government agencies to adjust laws and regulations accordingly. Du ring the review period, several 
acts regarding the business environment were amended. These reforms, although not directly 
related to investment, have had an impact on the investment climate and reinforce Chinese  Taipei's 
policy of economic liberalization.  In this regard, the Company Act was amended in August  2018 and 
December  2021 to support the digital economy and innovative entrepreneurship, as well as 
enhanced corporate governance and flexibility in business operations. Also, the Act Governing 
Electroni c Payment Institutions was amended in January  2021 to support the long -term development 
of the electronic payment industry and promote inclusive finance. The Telecommunications 
Management Act came into force in 20 20 and its goal is to , inter alia , facilitate the development of 
the industry and encourage innovation , while safeguarding competition and protecting the rights of 
consumers . In June  2018, the Cyber Security Management Act was enacted to strengthen 
 
53 Viewed  at: 
https://invest.taipei/pages/E_Incentives&Subsidies.html?1672301937#:~:text=The%20Taipei%20Municipal%
20Self%2DGovernment,to%20encourage%20innovation%20and%20investment . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  information and communications security an d personal data protection. Lastly, in December  2018 
the Unmanned Vehicles Technology Innovative Experimentation Act was enacted to encourage R&D 
in the field of unmanned vehicle technologies.  
 WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  Import (and export) procedures in the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu (Chinese  Taipei) did not go through substantial changes during the period under review 
and continue to be regulated by the Customs Act, the "Foreign Trade Act", the Cu stoms 
Anti-Smuggling Act (as amended), and different regulations. The institution in charge of 
implementing and enforcing customs laws and regulations is mainly the Customs Administration 
under the Ministry of Finance. However, other institutions such as t he Bureau of Foreign Trade 
(BOFT), the Bureau of Animal and Plant Health Inspection and Quarantine (BAPHIQ) of the Council 
of Agriculture (COA), the Fishery A gency , and the Bureau of Standards, Metrology and Inspection 
also participate.  
3.2.  In general, importe rs (and exporters) must register with the BOFT to clear imports/exports 
through Customs.1 However, individuals or organizations whose regular business is not to import 
(and export) may import (and export) specific goods without registration, following the  regulations 
stipulated by the BOFT. Import (and export) registration may be suspended, for instance, if goods 
infringe intellectual property rights (IPR) or if trade promotion fees are not paid. Importers/exporters 
whose registration has been revoked or n ullified by the BOFT may reregister two years after such 
revocation or nullification.2 
3.3.  Importers may entrust a customs broker to undertake all the relevant customs formalities to 
clear goods, including the import declaration and payment of duties.3 Impor ters or customs brokers 
must declare imported goods to Customs within 15 days from arrival or file a pre -entry declaration. 
In 2016, 18.4% of all import declarations were filed prior to their arrival; according to the authorities, 
this proportion decreased  during the period under review to reach 13.9% in 2022. Importers may 
also apply to Customs for an advance tariff classification ruling. The import declaration is submitted 
along with a bill of invoice, a packing list , and any other relevant documents  required for importation . 
Customs may also request a certificate of origin, if relevant. Import declarations may be corrected 
if required. Documents must be transmitted electronically through the Customs Port Trade (CPT) 
Single Window system.4 
3.4.  The CPT Single Window is a paperless electronic window, which has been operational 
since 2013. As at 2022, there were 31 agencies participating in the CPT Single Window. Documents 
may be submitted either in electronic or paper format; almost 100% of all customs declarati ons 
were processed electronically. All services offered by the CPT Single Window are free of charge. 
However, there is an access service fee to transmit data, which varies according to the time of 
transmission. The upper bounded fee rate is regulated by th e Ministry of Finance (MOF): 
TWD 1.72 per KB at peak hours (9:00  a.m. to 5:00  p.m. on weekdays) and TWD  1.07 per KB at 
off-peak hours.5 
3.5.  To expedite the clearance of imports, Customs may release the goods following examination 
and payment of duty and scrut inize the import declaration after release. Within six  months of release 
of goods, Customs must notify the importer if there are any refundable or recoverable duties. For 
imported goods that are not examined and released with payment of duty, or for which Customs is 
unable to immediately determine the amount of duty payable, Customs may, at the request of the 
duty-payer, examine and release the goods by allowing the duty -payer to submit documents 
required for scrutiny and pay a deposit. Customs shall then c onduct ratification and determine the 
amount of duty payable within six months of release, failing which the customs value declared by 
the duty -payer shall be accepted as the basis for determining the amount of customs duty payable 
(Article  18 of the Custo ms Act).  
 
1 "Foreign Trade Act", Article  9. 
2 The period is counted starting from the date of revocation or nullification ("Foreign Trade Act", 
Article  9). 
3 Customs A ct, 11  May 2022, Article  22. 
4 Customs Act, 11  May 2022, Articles  10-1, 16,  17, 21, and  28. 
5 Information provided by the authorities.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  3.6.  Upon any changes to an advance ruling on tariff classification, Customs has to state, in writing, 
the reason to the duty -payer (or its agent). If the duty -payer (or its agent) is able to prove that a 
contract has been entered into, the transaction  has been conducted according to the contract, and 
the change in tariff classification will cause loss, the duty -payer (or its agent) may apply for an 
extension of the period of validity of the ruling, up to 90 days. In the case where a change to an 
advanc e ruling on tariff classification involves import regulations, the imported goods shall be subject 
to the import regulations in effect at the time of importation.  
3.7.  If the duty -payer (or its agent) is dissatisfied with the advance tariff classification rulin g, it may 
apply to the Customs Administration for a review prior to the importation of the goods. The Customs 
Administration must deal with the case, except with a valid reason.  
3.8.  The customs clearance for shipments is carried out under three  modes: by -pass, document 
review, or document review and physical inspection. Customs uses a risk -based system to 
automatically identify and select potential high -risk shipments and thus determine the customs 
clearance mode to be used. If there is inadequate information t o determine whether a shipment is 
low-risk, shipments are usually cleared using the document review and physical examination mode. 
Shipments considered as low -risk but that require an import licence need to go through the 
document review mode; the rest of the imported shipments considered low -risk would be cleared 
through the by -pass mode.  
3.9.  Customs may issue a notice of post -clearance audit within six months of the date following the 
release of the imports (and/or exports). Post -clearance audits may be initi ated within two years from 
the date following such release. To carry out this procedure, Customs may request evidence 
(e.g. records, documents, accounting books, and/or relevant files or databases) regarding the 
imports or exports.6 According to the post -clearance audit result, duties might need to be refunded.7 
Interest will be paid on the refundable duty in the post -clearance audit cases in accordance with 
Article  65 of the Customs Act.  
3.10.  Customs collects a trade promotion service fee, based on the cost o f the imported (and 
exported) goods, at a rate of not more than 0.0425%. This fee is to finance a trade promotion fund.8 
Some items may be exempt from this fee. Customs also collects service charges9 for the issuance 
of various certificates.  
3.11.  An AEO certi fication programme for importers, exporters, and supply chain enterprises is still 
in place.10 There are two types of AEO status: General Authorized Economic Operator (AEOG) and 
Security and Safety Authorized Economic Operator (AEOS ). The requirements to obtain AEOG 
certification are lower than those required to obtain AEOS certification.11 AEOSs are granted 
additional benefits, such as fewer document reviews  and lower rates of examination .12 Customs 
provides preferential treatment f or goods imported by authorized economic operators (AEOs). These 
imports can be released prior to payment of duties. The importer can complete a consolidated 
payment of duties for the released goods on a monthly basis, if the duty -payers provide a deposit 
or an affidavit to Customs (Article  19). 
3.12.  In general, Chinese  Taipei continues to use the transaction value to determine the customs 
value of imported goods.13 If the transaction value cannot be determined, the different methods as 
stipulated in the Customs Valuation Agreement are used.14 To verify the correct customs value, 
Customs may open an investigation and examine other documents concerning the price of th e 
 
6 All evidence relating to imported (or exported) goods must be kept for five years (Customs Act, 
Article  98). 
7 Customs Act, Article  13. 
8 "Foreign Trade Act", Article  21. 
9 Refer to the Regulations Governing Collection of Customs Service Fees for the full list of fees.  
10 AEO certification may be granted to, inter alia, customs brokers; freight forwarders; shipping 
agencies ; warehouse operators; and highway, sea, and air carriers (Regulations Governing the Certification 
and Management of the Authorized Economic Operators, 8  June 2022).  
11 Certification requirements are stipulated in Articles  5 and 6 of the Regulations Governi ng the 
Certification and Management of the Authorized Economic Operators, 8  June 2022.  
12 Regulations Governing the Certification and Management of the Authorized Economic Operators, 
8 June 2022, Articles 9 and 16.  
13 Customs Law, Article  29. 
14 Customs Law, Article  30. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 34 - 
 
  imported goods, including accounting books and vouchers related to the imported goods or identical 
or similar goods supplied by other sellers; verify the transaction or deductive value of the imported 
goods or identical or similar goods; and examine past  records of customs values assessed for 
previous shipments.15 
3.13.  Importers, if not satisfied, may ask Customs within 30 days following the date of receiving 
the duty memo to review its decision regarding, inter alia, tariff classification, customs value, and 
duties due, and withdraw the goods after paying the entire duty amount or providing a guarantee. 
Customs may review its decision and make a determination within two months following the date of 
receiving the application. The importer may file an appeal and  then enter into administrative 
litigation according to the law if still dissatisfied with the determination.16 
3.1.2   Rules of origin  
3.14.  Chinese  Taipei continues to apply non -preferential and preferential rules of origin. The 
legislation that regulates these rules,  and the rules of origin per se , has not changed since 2018.17 
The preferential rules apply to imports originating in LDCs and in markets with which Chinese  Taipei 
has preferential trade arrangements. Non -preferential rules of origin apply to all other imp orts. Both 
types of rules of origin are based on the wholly produced and the substantial transformation criteria 
(Box 3.1). Under each preferential trade arrangement, there are also specific rules.18 
Box 3.1 General rules of origin, 2022  
Non-preferential rules of origin  
Wholly produced  
Substantial transformation (jump in tariff classification (6 -digit) or value -added is more than 35%)  
Rules of origin for LDCs  
Wholly produced  
Substantial transformation (added value of no less than 50%)  
Rules of origin for preferential trade agreements  
Wholly produced  
Substantial transformation  
Specific rules of origin  
Source:  Regulations Governing the Determination of Country of Origin of an Import Good of 30  October  2008 
and information viewed at: https://eweb.customs.gov.tw/singlehtml/1911 . 
3.1.3   Tariffs  
3.1.3.1   Applied MFN tariff  
3.15.  In 2023, the applied MFN tariff consisted of 9,136 lines at the 8 -digit level or 12,280 at 
the 10-digit level in the HS17 nomenclature. Chinese  Taipei uses both ad valorem  and 
non-ad valorem  tariff rates; however, most tar iffs lines are subject to ad valorem  rates. There 
are 158 tariff lines (1.7% of the total) subject to non -ad valorem  rates; of these, 92 are subject to 
specific rates, and  66 are subject to alternate duties, compared to 92 and 72, respectively, at the 
time of the previous Review. The non -ad valorem  duties apply mainly to agricultural products 
(WTO  definition) and fish products, except for other mixed metal scrap (one tariff line). To calculate 
the tariff indicators, the Secretariat used, for the non-ad valorem tariffs, the ad valorem  equivalents 
(AVEs) provided by the authorities, which were calculated using the unit value method, where trade 
data were available. AVEs were provided for all tariff lines with non -ad valorem  rates (Table  3.1). 
 
15 Customs Law, Article  42.  
16 Customs Law, Articles  45-47. 
17 Regulations Governing the Determination of Country of Origin of an Import Good, 24  December  2010.  
18 Viewed  at: https://eweb.customs.gov.tw/singlehtml/1911 . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 35 - 
 
  Table  3.1 Structure of the MFN applied tariff schedule, 2018 and 2023 (February)  
 
2018  
(8-digit level)  2023  
(8-digit level)  2023  
(10-digit level)  
Simple average rate (%)  7.2 7.1 7.2 
 HS 01 -24 19.2 19.0 18.2 
 HS 25 -97 4.2 4.1 3.8 
 WTO agricultural products  17.8 17.6 16.6 
 WTO non -agricultural products  5.1 5.1 5.1 
Duty-free tariff lines (% of all tariff lines)  29.3 30.6 33.3 
Simple average of dutiable lines only  10.2 10.3 10.8 
Tariff quotas (% of all tariff lines)  0.9 0.9 0.8 
Non-ad valorem  tariffs (% of all tariff lines)  1.8 1.7 1.6 
Domestic tariff peaks (% of all tariff lines)a 6.1 6.0 6.9 
International tariff peaks (% of all tariff lines)b 10.9 10.8 12.7 
Nuisance applied rates (% of all tariff lines)c 4.8 4.2 3.4 
Coefficient of variation  2.6 2.6 2.3 
Total number of tariff lines  9,134  9,136  12,280  
 Ad valorem  rates (> than 0%)  6,296  6,179  7,998  
 Duty-free rates  2,674  2,799  4,089  
 Specific rates  92 92 116 
 Alternate rates  72 66 77 
a Domestic tariff peaks are defined as those exceeding three times the overall simple average 
applied  rate. 
b International tariff peaks are defined as those exceeding 15%.  
c Nuisance applied rates are those greater than zero, but less than or equal to 2%.  
Note:  Calculations for averages are based on 10 -digit tariff line level, excluding in -quota rates and 
including AVEs for specific and alternate rates, provided by the authorities. The tariff schedules 
for 2018 and 2023 are based on HS17 nomenclature.  
Source:  WTO Sec retariat calculations, based on data provided by the authorities and information viewed at: 
https://portal.sw.nat.gov.tw/APGQ/LoginFree?request_locale=en_US . 
3.16.  The simple average applied MFN tariff has remained almost unchanged since the last Review, 
decreasing from 7.2% in 2018 to 7.1% in 2023 (Table  3.1).19 The average tariff for agricultural 
products (WTO  definition), albeit a decline, remains  substantially higher at 17.6% in 2023 (17.8% 
in 2018) compared to the average protection for non -agricultural goods that stood at 5.1%, 
unchanged since  2018. The tariffs affecting agricultural products range from zero to 500% or 
from zero to 1,069.9% if A VEs are considered. As at the time of the last Review, most agricultural 
products continue to benefit from above -average tariff protection, especially cereals and 
preparations (28.7%), rice products carry non -ad valorem  tariffs rates with AVEs of 467.4% for rice 
in the husk (paddy or rough) (HS  1006.10.0000), and of 284.9% for other worked rice 
(HS 1104.29.2000), followed by dairy products (20.6%). Regarding non -agricultural products, fish 
and fishery products show the h ighest protection (19.9%) with tariffs ranging from zero to 50% 
(or zero to 83.8% if AVEs are considered) (Table  A3.1).  
3.17.  The distribution of tariff rates has not undergone major changes since the last Review. Tariff 
rates continue to range from zero to 500%  and from zero to 1,069.9% considering the 
non-ad valorem  rates. In 2023, Chinese  Taipei's tariff contained 142 different rates (87  ad valorem  
duties (including duty free), 39 alternate duties, and 16 specific duties), less than the 150  rates 
applied in 20 18 (92  ad valorem  duties (including duty free), 42 alternate rates, and 16  specific 
duties). Applied ad valorem  tariff rates, 45 in 2023 (49 in 2018), include decimal points.  
3.18.  The main change in the tariff structure is an increase of the duty -free rates, wh ich is mainly 
due to completion of the Information Technology Agreement (ITA) expansion. Most tariff 
rates (81.2%) remain at 10% or below, and the tariffs with rates above 25% had a slight decrease 
from 3.2% to 3.0% (Chart  3.1 and Table  A3.1). The highest rates apply to products such as areca 
(betel) nuts (HS  0802.80.0000) with a rate of 1,069.9% (including AVEs), while the highest 
ad valorem  rate of 500% applies to other deer velvet  (HS 0507.90.2000), followed by a rate of 
338%, which applies to crude and refined ground -nut (peanut) oil (HS  1508.10.0000 and 
HS 1508.90.0000), and a rate of  184% affecting pomelos, fresh or dried (HS  0805.40.2000).  
 
19 Comparison of averages is done using the 2018 and 2023 tariffs at the 8 -digit level, which have 9,134 
and 9,136 lines, respectively, and the 2023 tariff at the 10 -digit level, which has 12,280 lines.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 36 - 
 
  Chart  3.1 Distribution of MFN tariff rates, 2018 and 2023  
(Number of tariff lines)  
 
Note:  Figures above the bars refer to the percentage of total lines. Excluding in -quota rates and including 
AVEs for non -ad valorem  rates.  
Source:  WTO Secretariat calculations, bas ed on data provided by the authorities, and CPT Single Window. 
Viewed  at: https://portal.sw.nat.gov.tw/APGQ/LoginFree?request_locale=en_US . 
3.1.3.2   Tariff bindings  
3.19.  All tariff lines in Chinese  Taipei's tariff schedule are bound, all accession -related binding 
commitments were implemented, and those related to the ITA expansion were fully implemented 
in 2021.  
3.20.  Chinese  Taipei bound all of its tariff lines from HS Chapters 1 -97 at levels ranging from  zero 
to 500%, with a total of 96 tiers. The highest bound rates apply to the same lines with the highest 
applied tariff rates.20 As with the applied MFN rates, tariff lines are bound at ad valorem  (98.3%) , 
specific rates (0.9%), or alternate duties (0.8%). In 2023, Chinese  Taipei's applied MFN tariff ranges 
(WTO definition) coincided for most products to the bound tariff ranges, except for sugars and 
confectionery, non -electric machinery, and petroleum.21 The app lied and the bound rates are at the 
same level for all tariff lines that carry specific rates, and for lines with alternate rates there is 
only one line that differs.22 Nevertheless, a comparison of Chinese  Taipei's bindings and the MFN 
tariff applied in 2 023 reveals that for six tariff lines the applied MFN tariff exceeds the bound level 
(Table  3.2). 
 
20 These are other deer velvet (500%) (HS  0507.90.2000); crude and refined ground  nut (peanut) oil 
(HS 1508.10.0000 and HS  1508.90.0000) (338%); and pomelos, fresh or dried (HS  0805.40.2000) (184%).  
21 If the HS section  definition is used, MFN applied tariff rate and bound ranges did not coincide for the 
following groups of products: prepared food, beverages and tobacco; mineral products; and machinery and 
electrical equipment.  
22 The exception is mus tard flour and meal and prepared mustard (HS  2103.30.0000) with an 
MFN applied rate at TWD  9/kg or 15% (whichever is the highest) and the corresponding bound rate is 
TWD 12/kg or  20% (whichever is the highest).  
29.334.5
17.4
7.9
4.7
3.0 3.230.6 33.3
17.3
7.9
4.7
3.0 3.033.3
30.8
15.2
8.0
5.8
3.93.1
05001,0001,5002,0002,5003,0003,5004,0004,500
Duty free >0%-5% >5%-10% >10%-15% >15%-20% >20%-25% >25%MFN 2018 (HS 8 -digit level)
Total number of lines:  9,134
MFN 2023 (HS 8 -digit level)
Total number of lines: 9,136
Note:  Figures above the bars refer to the percentage of total lines. Excluding in -quota rates and including AVEs for non -ad val orem 
rates.
Source:  WTO Secretariat calculations, based on data provided by the authorities and Customs Port Trade Single Window online 
information.MFN 2023 (HS 10 -digit level)
Total number of lines: 12,280WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 37 - 
 
  Table  3.2 Tariff lines where applied rates exceed bound rates, 2023  
HS code  Description  MFN applied 
rate Bound rate 
(CTS 
database)  
0208.10.2000  Edible offal of rabbits or hares, fresh, chilled or frozen  45% 20% 
2916.16.0000  Binapa cryl (ISO)  5% 2.5%  
8211.95.3000  Knives with cutting blades, serrated or not: handles of iron and 
steel 9% 6% 
Combined refrigerator -freezers, fitted with separate external doors or drawers, or combinations 
thereof  
8418.10.1100  Capacity of 800 litres and over, household type  4% 3.5%  
8418.10.1200  Capacity of 500 litres and over, but less than 800 litres, 
household type  4.2%  3.5%  
8418.10.1300  Capacity of less than 500 litres, household type  8% 3.5%  
Source:  WTO Secretariat calculations, based on WTO CTS database, data provided by the authorities, and 
CPT Single Window. Viewed  at: https://portal.sw.nat.gov.tw/APGQ/LoginFree?request  
_locale=en_US . 
3.1.3.3   Tariff rate quotas  
3.21.  Chinese  Taipei continues to maintain MFN tariff rate quotas (TRQs) for 84 agricultural tariff 
items at the HS 8-digit level or 0.9% of tariff lines in 2023, the same as in 2018 (Table  3.1) and 
(Table  A3.2) Chinese  Taipei also negotiated preferential TRQs with Belize (raw and refined sugar), 
Eswatini (raw and refined sugar, natural honey, and avocados ), El Salvador (raw and refined sugar, 
dried plantains, dried bananas, and dried pineapples), Guatemala (raw and refined sugar), Honduras 
(raw and refined sugar),  New Zealand (deer velvet and liquid milk), and  Paraguay (raw and refined 
sugar) (Table  A3.3).  
3.22.  Quota rates are in most cases ad valorem  and remain substantially lower than the 
out-of-quota rates; they range from zero to 25%. Fill ratios in 2022 showed an important variation 
according to product. Fill ratios were high, reaching almost 100%, for some products (dried shiitake, 
ground nut, red beans, liquid milk, and rice). In other instan ces, there were no imports under TRQs 
or fill ratios were very low, as was also the case in 2018, mainly bananas, betel nuts, dried day lilies, 
mangoes, and shaddocks. According to the authorities, TRQs are not used because local production 
is sufficient t o meet domestic demand. The TRQ for deer velvet, which carries an out -of-quota rate 
of 500%, also has a low fill in -quota rate of 2%.  
3.23.  The methods to allocate quotas do not seem to have changed substantially since  2018. 
The "Bank of Taiwan" (BOT), as delega ted by the MOF, has the exclusive right to allocate the 
WTO TRQs for all products, excluding rice. These are still allocated by the COA23: 65% of the TRQ  for 
rice is allocated to the COA, and the rest may be imported by any registered importer/exporter or 
food dealer. The COA allocates quotas by using an open tender, with the contract awarded to the 
bidder offering the lowest quote below a ceiling price set by the authorities.24 The BOT allocates 
quotas on a first -come, first -served basis or uses an advance  allocation method (this includes order 
of application, ballot, performance of importation, and auctions/open bidding).25 
3.1.3.4   Tariff preferences  
3.24.  Chinese  Taipei grants preferential treatment to imports originating in certain trading partners. 
The coverage of th e preferences negotiated by Chinese  Taipei varies substantially in the different 
agreements, as does the average preferential tariff. The average tariff applied for some trading  
partners is relatively low, at 0.2%, as in the case of the arrangement with Ne w Zealand, under which 
the number of duty -free lines is almost 100%. However, in the case of Paraguay, the coverage is 
low (1.2%) and the preferential average tariff (7%) is slightly lower than the average 
MFN tariff (7.2%). In all instances, the number of  agricultural products that enjoy preferential 
treatment is lower than the number of non -agricultural products, and the average preferential tariff 
rate for non -agricultural products is substantially lower than the one negotiated for agricultural 
products  (Table  3.3). 
 
23 WTO document G/STR/N/18/TPKM/Add.1 , G/STR/N/19/TPKM , 10 March  2022.  
24 WTO document WT/TPR/S /377/Rev.1 , 6 March  2019.  
25 Regulations of Tariff Quota, 27  September  2011, Article  4. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  3.3 Summary analysis of the preferential tariff, 2023  
(%) 
 Total  WTO agriculture  WTO 
non-agriculture  
 Average  Duty -
free 
ratesa Coverageb Average  Duty -
free 
ratesa Average  Duty -free 
ratesa 
MFN 7.2 33.3  
16.6 22.6 5.1 35.7 
Trading arrangement  
New Zealand 
FTA 0.2 99.9 66.6 1.2 99.5 0.0 100.0  
Singapore FTA  0.6 99.1 66.3 3.1 95.3 0.0 99.95  
Panama FTA  1.0 97.6 64.3 5.1 89.6 0.1 99.4 
Nicaragua FTA  1.1 97.1 63.8 5.2 89.5 0.3 98.8 
Guatemala FTA  1.3 97.1 63.8 5.8 88.5 0.3 98.9 
El Salvador FTA  1.2 97.1 63.8 5.6 88.8 0.3 98.9 
Honduras FTA  1.2 97.1 63.8 5.8 88.8 0.3 98.9 
Belize FTA  6.5 36.8 3.5 14.4 35.3 4.8 37.1 
China FTA  7.0 37.4 4.1 16.6 22.6 4.9 40.7 
Paraguay FTA  7.0 34.5 1.2 15.8 27.7 5.1 36.0 
Eswatini FTA  7.0 34.8 1.5 16.1 26.2 5.0 36.7 
LDC 7.1 34.7 1.5 16.5 23.1 5.0 37.4 
a Duty-free lines as a percentage of total tariff lines.  
b Percentage of total number of lines. Only rates that are lower than the corresponding MFN rate are 
taken into account.  
Note:  Calculations are based on tariff line level (10 -digit), excluding in -quota rates and including AVEs for 
non-ad valorem  rates, provided by the authorities.  
Source:  WTO Secretariat calculations, based on d ata provided by the authorities, and CPT Single Window. 
Viewed  at: https://portal.sw.nat.gov.tw/APGQ/LoginFree?request_locale=en_US . 
3.25.  Chinese  Taipei maintains preferential tariff quotas on imports from some partners 
(Table  A3.3).  
3.1.3.5   Tariff concessions/exemptions  
3.26.  Chinese  Taipei continues to apply a de minimis  value for the imposition of import duties, 
i.e. imported goods valued under TWD  2,000 (or th e equivalent of USD  67.2) are exempt.  
3.27.  The Customs Act lists the imported articles that are exempt from customs duty. These items 
include imports for public institutions; non -profit donations; educational material for teaching; 
pharmaceutical products or me dical apparatus required to prevent epidemics; equipment and 
articles for emergency aid; and samples of no commercial value.26 Chinese  Taipei also grants duty 
exemption for the fuel and materials used on ships, aircraft, and other means of transport engage d 
in overseas trade, based on reciprocal treatment.27 Exemptions are also granted on goods used for 
a specific activity (e.g.  scientific research, exhibitions, making movies, and repair and maintenance) 
if they are re -exported within six  months from the date of importation; however, under special 
circumstances, this period may be extended.28 
3.28.  Tariff exemptions are also in place under different incentives programmes to promote 
investment, such as those provided for under the Act for Promotion of Private Participation in 
Infrastructure Projects (PPIP Act).  
3.29.  Duty exemptions also apply to goods imported under different customs regimes such as 
temporary admission of goods, re -importation, re -exports of raw materials, Free Trade Zones 
(FTZs), and bonded  warehouses.29 
3.30.  In addition, customs duties and tariff quotas may be adjusted to cope with special economic 
situations, manage the supply of goods, and provide industries with appropriate operational 
conditions (i.e.  ensuring a continuous supply of commodit ies and assisting manufacturers in lowering 
 
26 Customs Act, 11  May 2022, Article  49. 
27 Customs Act, 11  May 2022, Article  49(13). 
28 Customs Act, 11  May 2022, Articles  52 and 53.  
29 Customs Act, 11  May 2022.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  their import costs). Adjustments may be up or down. In general, these could be up to 50%, and up 
to 100% in the case of staples whose prices have had substantial fluctuations (Table  3.4). Measures 
are usually in place for a year.30 
Table  3.4 Temporary tariff reductions  
HS Codes  Description  Tariff reduction  Period  
6307.90.50  Masks , filtering efficiency 94% or 
more, of textile materials  7.5% to 0%  27/02/202 0-26/05/2020  
2207.10.90  Other undenatured  ethyl alcohol of an 
alcoholic strength by volume 
exceeding 90% vol  20% to 10%  27/02/2020 -26/08/2023  
0201.10.10  
0201.10.90  
0201.20.10  
0201.20.20  
0201.20.90  
0201.30.10  
0201.30.20  
0201.30.90  
0202.10.10  
0202.10.90  
0202.20.10  
0202.20.20  
0202.20.90  
0202.30.10  
0202.30.20  
0202.30.90  Meat of bovine animals  TWD 10/Kg to  
TWD 5/Kg 01/12/2021 -31/12 /2023  
1001.19.00  
1001.99.00  Wheat  6.5% to 0%  01/12/2021 -31/12/2023  
0402.10.00  
0402.21.00  Milk powder for baking  10% to 5%  07/02/2022 -31/12/2023  
0405.10.00  Butter  5% to 2.5%  07/02/2022 -31/12/2023  
0405.90.10  Anhydrous milk fat  8% to 4%  07/02/2022 -31/12/2023  
Source:  Information provided by the authorities.  
3.1.4   Other charges affecting imports  
3.31.  In addition to customs duties, imports exceeding the de minimis  value of TWD  2,000 continue 
to be subject to the commodity tax, the tobacco and alcohol tax, the Specifically Selected Goods 
and Services Tax, and the Value -Added and Non -Value -Added Business Tax (VANVABT).  
3.32.  Rubber tyres, cement, some fruit juices, petroleum products, electric appliances, and vehicles 
whether locally manufactured or imported are subject to the commodity tax (Table  A3.4).31 In the 
case of cement and refined petroleum products, th e tax may be adjusted by 50% if there are rapid 
and persistent increase in prices. In general, commodities may be exempt if they are used for defined 
purposes, such as raw materials for manufacturing other taxable commodities, imported for 
exhibitions (i.e . not for sale), or exported (Article  3). However, the Act also stipulates other 
exemptions for vehicles, based on end -use (Article  12). In addition, to promote consumption of 
energy -efficient electric appliances32, reduce production costs, and ensure peop le's livelihood, the 
tax burden may be reduced by a maximum amount for a specific period.33 In this respect, the 
commodity tax was reduced for Portland I cement34 and for oil products.35 
3.33.  Tobacco and alcohol products, whether locally manufactured or importe d, are subject to the 
Tobacco and Alcohol Tax (14  June 2017) and the Tobacco Health and Welfare Surcharge (Table  3.5). 
In general, exemptions apply to goods used as inputs to manufacture other taxable tobacco or 
 
30 Customs Act, 11  May 2022, Article  71. 
31 Commodity Tax Act, 30  December  2022 (last update), Article  1. 
32 Commodity Tax Act, 26  May 2021, Article  12-4. 
33 From 15  June 2021 to 14  June 2023, the commodity tax on new refrigerators, new air conditioners, 
and new dehumidifiers, which are classified as first - or second -grade of the energy -efficient levels, was 
reduced by a maximum amount of TWD  2,000 (Commodity Tax Act, 20  December  2022, Article  11-1). 
34 The Commodity Tax on Portland I cement was reduced from TWD  320/MT to TWD  160/MT, from 
1 December  2021 to 31  December  2023.  
35 The Commodity Tax on gasoline was reduced from TWD  6,830/kL to TWD  4,830/kL, and for d iesel oil 
from TWD  3,990/kL to TWD  2,490/kL, from 7  February  2022 to 30  September  2023.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 40 - 
 
  alcohol products and to goods used for exhib ition and re -exported thereafter.36 The surcharge is 
used to finance measures related to tobacco control and public health.37 
Table  3.5 Tobacco and Alcohol Tax and Tobacco Health and Welfare Surcharge, 2023  
Product  Tax rate  
Tobacco and Alcohol Tax  
Cigarettes  TWD 1,590/1,000 sticks  
Cut tobacco  TWD 1,590/kg  
Cigars  TWD 1,590/kg  
Other tobacco products  TWD 1,590/kg or TWD  1,590/1,000 sticks, w.i.t.h.  
Beer TWD 26/l 
Other brewed alcoholic beverages  TWD 7/l/degree of alcohol content  
Distilled spirits  TWD 2.5/l/degree of alcohol content  
Reprocessed alcoholic beverages with alcohol 
content exceeding 20% by volume  TWD 185/l 
Reprocessed alcoholic beverages with an alcohol 
content not exceeding 20% by v olume  TWD 7/l/degree of alcohol content  
Cooking alcoholic beverages  TWD 9/l 
Other alcoholic products  TWD 7/l/degree of alcohol content  
Ethyl alcohol  TWD 15/l 
Tobacco Health and Welfare Surcharge  
Cigarettes  TWD 1,000/1,000 sticks  
Cut tobacco  TWD 1,000/kg  
Cigars  TWD 1,000/kg  
Other tobacco products  TWD 1,000/kg or  TWD 1,000/1,000 sticks , w.i.t.h.  
w.i.t.h.  Whichever is the highest.  
Source:  Tobacco and Alcohol Tax Act, 8 February  2023; Tobacco Hazards Prevention Act, 15  February  2023; 
and infor mation provided by the authorities.  
3.34.  The Specifically Selected Goods and Services Tax is imposed on the sale, manufacture, and 
import of specific goods and services (Table  3.6).38 Commodities are exempt if they are used as raw 
materials for manufacturing ot her taxable commodities; for exhibitions (i.e.  not for sale); for  R&D 
and education, public security, emergency medical care, or disaster relief purposes; or exported.39 
The general tax rate is 10%.40 In the case of imports, the tax is collected upon impor tation. The 
taxable value for imports is the sum of the customs value and the import duty; if imports are subject 
to commodity tax or business tax, the taxable base is the customs value plus the import duty and 
the commodity and the business taxes.41 
Table  3.6 Specifically Selected Goods and Services Tax, 2022  
Product  General tax rate  
Passenger cars with nine seats or less (value ≥ TWD  3 million)  10% 
Yachts (full length ≥ 30.48 meters)  10% 
Airplanes, helicopters, and ultra -light vehicles (value ≥ TWD  3 million)  10% 
Turtle shells, hawksbill, coral, ivory, furs, and their products 
(value  ≥ TWD 500,000)  10% 
Furniture (value  ≥ TWD  500,000)  10% 
Source:  Specifically Selected Goods and Services Tax Act, 24  June 2015; and information provided by the 
authorities.  
 
36 Tobacco and Alcohol Tax Act, Article  5. 
37 Regulations of the Tobacco Health and Welfare Surcharge Distribution and Utilization, 24  May 2019 
and Tobacco Hazards Preven tion Act, 22  March  2023, Article  45. 
38 Specifically Selected Goods and Services Tax Act, 24  June 2015.  
39 Specifically Selected Goods and Services Tax Act, 24  June 2015, Article  6. 
40 Specifically Selected Goods and Services Tax Act, 24  June 2015, Article  7. 
41 Specifically Selected Goods and Services Tax Act, 24  June 2015, Article  10. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  3.35.  The VANVABT is levied on the sale of goods or services and on imported goods.42 The tax rate 
is no less than 5% and no more than 10%. In 2022, the general VANVABT was 5%, a reduced rate 
applies to certain services, and some goods and services are exempt.43 Exempt imported goods 
include all goods exempted from customs duties44; fertilizer and inputs used for farming; vessels 
and aircraft used in international transportation and deep -sea fishing boats; gold bars and other 
products made of gold; and antiques.45 In cases of extraordinary economic situation, the  VANVABT 
may be adjusted on imported wheat, barley, corn, and soybeans.46 From 7  February  2022 
to 31 December  2023, imported soybeans , wheat, and corn are exempt from the VANVABT.47 
3.36.  Chinese  Taipei also maintains the trade promotion service fee on imported (exported) goods 
at a rate of a maximum 0.0425% of the value of the goods imported (exported). The levy is used 
to finance trade faci litation initiatives.48 The commercial port service fees, collected  by the Ministry 
of Transportation and Communications, used to finance commercial ports, are still in place. 
Commercial port service fees are set according to the gross tonnage of ship ente ring the ports, 
number of travellers, loaded and unloaded cargo, and the type of cargo (bulk and general cargo).49 
3.1.5   Import prohibitions, restrictions, and licensing  
3.37.  Chinese  Taipei continues to impose import prohibitions, restrictions, and licensing to, 
inter alia, protect public morals, human life and health, and the environment; fulfil obligations under 
international arrangements; and adjust the balance -of-payment s.50 The legislation that regulates 
the imposition of non -tariff barriers has not changed subst antially since 2018.51 The competent 
authority is the Ministry of Economic Affairs (MOEA). The prohibition, restriction, or licensing 
requirements imposed on imports (exports) may be suspended when the reasons to impose them 
cease to exist.  
3.38.  In February  2023, import prohibitions applied to 94 tariff lines at the HS  10-digit level on 
an MFN basis, which represented 0.8% of all tariff lines. These lines included 43 lines under 
WTO agriculture and 51 under WTO non -agriculture, 50 of which involved f ish products. These 
prohibitions apply mainly to items regulated by international arrangements. Additional import 
prohibitions apply to some direct cross -strait imports; these  apply to 2,455 tariff lines at the 10 -digit 
level (20% of all tariff lines).52 Cross-strait import prohibitions applied mainly to live animals and 
products, vegetables, prepared foods, transport equipment, and textiles (Chart  3.2); other 
cross-strait imports are conditionally permitted (351 tariff lines at the 10 -digit level or 2.9% o f all 
tariff lines).  
 
42 The Value -Added Business Tax (VAT) is applied to most sales that take place in Chinese  Taipei, while 
the Non -Value -Added Business Tax ("Non -VAT") is applied to sales by certain defined types of businesses.  
43 Value -Added and Non -Value -Added Business Tax Ac t, 14 June 2017, Article  8. 
44 For the full list of goods exempt from customs duties, see Customs Act, 11  May 2022, Article  49. 
45 Value -Added and Non -Value -Added Business Tax Act, 14  June 2017, Article  9. 
46 Value -Added and Non -Value -Added Business Tax Act, 14 June 2017, Article  9-1. 
47 Information provided by the authorities.  
48 "Foreign Trade Act", 25  December  2019.  
49 For more details on the different rates, see the Regulations on Collection, Custody and Use of 
Commercial Port Dues of 7  July 2021. 
50 "Foreign Trade Act", 25  December  2019, Article  11; Regulations Governing Import of Commodities of 
8 July 2010; and  Customs Act, 11  May 2022, Article  15. 
51 The relevant legislation includes the "Foreign Trade Act", 25  December  2019; Regulations Governing 
Import of C ommodities, 8  July 2010; the Customs Act, 11  May 2022; Regulations on Import and Export of 
Endangered Species of Wild Fauna, Flora and Related Products, 16  August  2010; and Regulations Governing 
Export and Import of Strategic High -tech Commodities, 20  October 2017.  
52 For detailed information on import bans and authorization requirements, see: 
https://fbfh.trade.gov.tw/fh/ap/queryCCCRegFormf_e.do . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Chart  3.2 Restrictions to direct cross -strait imports , by HS section, 2023  
 
Source:  WTO Secretariat calculations, based on BOFT, Classification of Commodities and Regulations . 
Viewed  at: https://fbfh.trade.gov.tw/fh/ap/listIERegf_e.do?q_type=2&language=E . 
3.39.  The import licensing system is regulated by Article  11 of the "Foreign Trade Act" and the 
Regulations Governing Import of Commodities (8  July 2010) and has not changed substantially since 
the previous Review in 2018. In some cases, the product coverage has  expanded, for instance, 
licences applying to fish products (shark fin, toothfish, and fry of Eriocheir sinensis) were added. 
In 2022, 258 tariff lines at the 10 -digit level (2.1% of all tariff lines) were subject to import licensing, 
while in 2018 there w ere 207 tariff lines at the 10 -digit level (1.7% of all tariff lines).53 In terms of 
trade, imports represented on average 1.96% of total imports in 2021. Import licences are in all 
instances non -automatic. In most cases, unless otherwise specified in the accession protocol, 
licences apply to imports from all origins. If the licence is not granted, the applicant may appeal.  
3.40.  Import restrictions also apply to rice products that contain rice varieties bred locally that have 
not been allowed by the competent au thority for overseas cultivation. These cannot be imported 
unless such import has been approved by the competent authority.54 
3.41.  In general, import licences are valid for six months from the date of issuance, and imports 
must be shipped prior to the expiry da te of the licence. If the imports cannot be shipped within the 
prescribed validity of the import licence, the applicant may apply for an import licence of a longer 
validity, by explaining reasons and submitting evidential documents.55 
3.1.6   Anti-dumping, counter vailing, and safeguard measures  
3.42.  The main legislation related to trade remedies remained largely unchanged during the period 
under review.56 The authorities in charge of anti -dumping and countervailing investigations also 
 
53 For the  full list of products at the HS 10 -digit level, see WTO document G/LIC/N/3/TPKM/13 , 
11 October  2022.  
54 These varieties include rice in the husk (paddy or rough) (HS  1006.10.00.00 -0/9825.11.00.00.2); 
husked (brown) rice (HS  1006.20.00.00 -8/9825.12.00.00.1); glutinous rice (HS  1006.30.00.10 -4/ 
9825.13.00.11.7); other semi -milled or wholly milled rice, whether or not polished or glazed 
(HS 1006.30.00.90 -7/9825.13.00.12.6); and broken rice (HS  1006.40.00.00 -4/9825.13.00.20.6) 
(Plant Variety and Plant Seed Act, Article  51, para.  2). 
55 Regulations Governing Import of Commodities, 8  July 2010, Articles  13, 14, and 15.  
56 These measures are mainly regulated by the Customs Act, 11  May 2022; Regulations Governing the 
Implementation of t he Imposition of Countervailing and Anti -Dumping Duties, 28  January  2019; and Rules for 
Handling Import Relief Cases, 13  January  2014.  
0%5%10%15%20%25%30%35%40%45%
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21Conditionally
permitted
ProhibitedChart 3.[TPKM]  Restrictions on imports from China, by HS section, 2022 
01   Live animals & products        
02   Vegetable products
03   Fats & oils      
04   Prepared food, etc.
05   Mineral products
06   Chemicals & products07   Plastic & rubber
08   Hides & skins
09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles
12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.
15   Base metals & products
16   Machinery
17   Transport equipment
18   Precision instruments19   Arms & ammunition
20   Miscellaneous manufacturing
21   Works of art, etc.
Source:  WTO Secretariat calculations, based on Bureau of Foreign Trade, Classification of Commodities and Regulations.  
Viewed at:  https://fbfh.trade.gov.tw/fh/ap/listIERegf_e.do?q_type=2&language=E.WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  remained unchanged. The MOF is resp onsible for assessing whether the imported product is 
subsidized or dumped; the authority responsible for the determination of injury is the MOEA; and 
the International Trade Commission (ITC) conducts the investigation, which may be initiated 
ex officio , by an application or the referral of other agencies.57 
3.43.  In general, imported goods that have directly or indirectly received a financial subsidy or are 
imported at a price less than the normal value, causing injury to any local industry, may be subject 
to the imposition of countervailing or anti -dumping duty, as appropriate.58 However, prior to 
imposing a measure, the ITC must conduct an investigation of relevant evidence and information 
submitted in writing by all interested parties. Public hear ings are also held, in which all interested 
parties may participate and submit their opinions.59 
3.44.  The amount of countervailing duty imposed cannot exceed that of the subsidy and allowance 
received for the imported goods, and the amount of anti -dumping duty imposed cannot exceed the 
dumping margin of the imported goods.60 The legislation does not provide for the application of a 
lesser duty rule or public interest test. The measures applied are imposed by law once the 
investigation is finalized and the existe nce of a subsidy or dumping is determined.61 Parties subject 
to countervailing or anti -dumping duties can appeal the decision before the administrative courts 
within two months from announcement of the decision.  
3.45.  All the decisions taken concerning the diffe rent steps of an investigation need to be notified 
to the applicant and the known interested parties in writing through a public notice. These are the 
initiation of the investigation, the preliminary or final determination, the provisional/definitive 
impos ition of a countervailing duty or anti -dumping duty, the suspension or termination of the 
investigation following the acceptance of an undertaking62, and the termination of the case when 
the final determination is that there is no subsidy or dumping.  
3.46.  The C ustoms Administration can investigate the possible circumvention or evasion of trade 
remedies following an inspection of imported goods or based on information received from other 
agencies. If circumvention or evasion of trade remedies is established, the Customs Administration 
can levy the duties evaded and impose a fine of up to five times the duties evaded.63 
3.47.  An interim investigation on the lapse or change of the findings may be undertaken ex officio , 
or upon request one year after the imposition of the duty, if information substantiating the need for 
a review is provided.64 Chinese  Taipei undertook two interim investigations during the review period. 
In general, countervailing or anti -dumping duties are terminated five years from their date of 
imposition , unless the competent authorities have initiated a sunset investigation to determine 
whether or not to continue imposing the measure and determine that the expiry of the duty would 
be likely to lead to the continuation or recurrence of the practice (subsi dization or dumping) and of 
injury. In those cases, the duty may remain in force pending the determination of such 
investigation.65 
3.48.  At present, Chinese  Taipei has 19 anti -dumping measures in place, of which 2  investigations 
were initiated and finalized dur ing the period under review, while the other measures have been in 
place for several 5 -year periods, as they have been determined as necessary by sunset reviews. 
Measures imposed apply mainly to China (47%) (Table  3.7). In addition, during the review perio d 
(in 2018), Chinese  Taipei initiated two investigations that resulted in the imposition of duties 
 
57 Regulations Governing the Implementation of the Imposition of Countervailing and Anti -Dumping 
Duties, 28  January  2019, Articles  2 and 3.  
58 Customs Act, 11  May 2022, Articles  67 and 68.  
59 Regulations Governing the Implementation of the Imposition of Countervailing and Anti -Dumping 
Duties.  
60 Customs Act, 11  May 2022, Article  69. 
61 "Foreign Trade Act", 25  December  2019, Artic le 19. 
62 When an application of undertaking is accepted, the MOF suspends the investigation and any 
provisional impositions of countervailing duty or anti -dumping duty (Article  24). 
63 Customs Anti -Smuggling Act, Article  37. 
64 Regulations Governing the Impl ementation of the Imposition of Countervailing and Anti -Dumping 
Duties, 28  January  2019, Article  43. 
65 Regulations Governing the Implementation of the Imposition of Countervailing and Anti -Dumping 
Duties, 28  January  2019, Article  44. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  in 2019, which were suspended because of overall economic interests.66 In 2022, an additional 
investigation related to float glass in sheets originating in M alaysia, Indonesia, and Thailand was 
initiated; a preliminary investigation determination was reached, and no preliminary measure was 
taken. The average length of anti -dumping measures in force as at 31  December  2022 was 
6.9 years; however, 4 measures have  been in place for more than 10  years.  
Table  3.7 Anti-dumping cases, 2018 -22 
Product  HS code  Trading partner  Final determination  
Towel products  6302.60; 6302.91  China  Imposition of duties: 01/06/2006  
Price undertaking: 19/09/2006  
1st sunset review : 21/03/2011  
Imposition of duties: 20/12/2011  
Price undertaking: 19/12/2011  
2nd sunset review : 30/11/2016  
Imposition of duties: 21/12/2017  
3rd sunset review : 30/11/2022  
Certain footwear  6402.20; 6402.91; 
6402.99; 6403.20; 
6403.51; 6403.59; 
6403.91; 6403.99  China  Imposition of duties: 16/03/2007  
Price undertaking: 12/07/2007  
1st sunset review : 18/12/2011  
Imposition of duties: 13/12/2012  
Price undertaking: 17/04/2013  
2nd sunset review : 11/1 2/2017  
Imposition of duties: 17/01/2019  
Price undertaking: 17/06/2019  
Benzoyl peroxide 
(BPO)  2916.32  China  Imposition of duties: 20/05/2010  
1st sunset review : 11/05/2015  
Imposition of duties: 14/03/2016  
2nd sunset review : 10/03/2021  
Imposition of duties: 21/03/2022  
Type I and Type  II of 
Portland cement and 
of its clinker  2323.10; 2523.29  China  Imposition of duties: 30/05/2011  
1st sunset review : 18/05/2016  
Imposition of duties: 20/02/2017  
2nd sunset review : 18/02/2022  
Imposition of duties: 09/11/2022  
SUS 300 series 
flat-rolled products 
of stainless steel, 
cold-rolled 
(cold-reduced)  7219.32; 7219.33; 
7219.34; 7219.35; 
7220.20  China; Korea, Rep. of  Imposition of duties: 15/08/2013  
Price undertaking: 05/03/2014  
1st sunset review : 08/08/2018  
Imposition of duties: 29/08/2019  
Certain flat -rolled 
steel products, 
plated or coated with 
zinc or zinc -alloys  7210.30:7210.41; 
7210.49; 7210.61; 
7210.90; 7212.20; 
7212.30; 7212.50; 
7225.91; 7225.92; 
7225.99; 7226.99  China; Korea, Rep. of  Imposition of duties: 22/08/2016  
1st sunset review : 20/08/2021  
Imposition of duties: 14/09/2022  
Carbon steel plate, 
including, without 
limitation, flat -rolled 
products of iron or 
non-alloy steel, 
hot-rolled, or certain 
other alloy steel, not 
in coils, not  clad, 
plated or coated, of 
a thickness of 6  mm 
or more  7208.51; 7208.52; 
7208.90; 7211.14; 
7225.40; 7226.91  Brazil; China; India; 
Indonesia; Korea, Rep. of; 
Ukrainea Imposition of duties: 20/08/2016  
Price undertaking: 20/02/2017  
1st sunset review : 20/08/2 021 
Imposition of duties: 14/09/2022  
Certain aluminum 
foil 7607.11  China  Imposition of duties: 22/02/2021  
Ceramic tiles  6904.10; 6904.90; 
6907.21; 6907.22; 
6907.23  India; Viet  Nam; Malaysia; 
Indonesia  Imposition of duties: 04/10/2021  
a The anti -dumping duty imposed on goods originating in Ukraine was suspended for one  year due to 
overall economic interests.  
Source:  WTO document G/ADP/N/377/TPKM , 27 February  2023; and Customs Administration. Viewed  at: 
https://eweb.customs.gov.tw/singlehtml/1913?cntId=cus16_179393_1913 . 
 
66 WTO document G/ADP/N/377/TPKM , 27 February  2023.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  3.49.  In 2018, Chinese  Taipei initiated five countervailing investigations on certain steel products 
originating from China, which resulted in the imposition of five countervailing duties.67 These 
measures were suspended because of overall economic interests.68 The countervailing measures 
applied to 325 tariff lines at the 10 -digit level (of the 2022 tari ff schedule) under Chapter  72.69 
3.50.  Chinese  Taipei's provisions to impose import relief measures, when an increase in the import 
volume of goods causes or threatens to cause serious injury to a Chinese  Taipei industry that 
produces like or directly competitiv e products, remained unchanged during the review period.70 The 
industry concerned may apply to the competent authority for investigation of the injury and for 
import relief. The MOEA, through an investigation undertaken by the ITC, is in charge of determin ing 
if there is injury to Chinese  Taipei 's industries.71 If the existence of injury or threat thereof is 
established, the MOEA72 may adjust the tariff, impose import quotas, or provide financing guarantee, 
subsidy for R&D, assistance for training, or other  adjustment measures or assistance.73 If the MOEA 
deems that it is necessary to adopt a tariff adjustment as a relief measure, it notifies the MOF so 
that this can be implemented.74 
3.51.  During the review period, Chinese  Taipei did not impose safeguards under t he provisions of 
the WTO  Agreement on Safeguards.  
3.52.  Chinese  Taipei reserved the right to impose Special Safeguards (SSG) on agriculture products. 
These measures continue to be regulated by the Customs Act (Article  72) and the Regulations for 
Imposition of th e Additional Duty on Agriculture Products, which have remained unchanged 
since 2018. According to the Regulations, the SSG may be used for betel nuts, chicken, dried day 
lilies, garlic, fresh and liquid milk, offal, peanuts, pears, persimmon, pomelo, pork belly, red beans, 
rice, dried shiitake, and sugar.75 The additional duty may be imposed when the cumulative import 
volume exceeds the trigger level or when the customs value falls below the trigger price.  
3.53.  Chinese  Taipei may impose retaliatory duties based on reciprocity, if it is deemed that exports 
from Chinese  Taipei are accorded discriminatory treatment.76 Chinese  Taipei did not introduce this 
type of measure during the period under review.77 
3.2  Measures directly affecting exports  
3.2.1   Customs procedures and req uirements  
3.54.  Export procedures continue to be regulated by, inter alia, the Customs Act, the "Foreign Trade 
Act", and the Customs Anti -Smuggling Act (as amended). The institution in charge of implementing 
and enforcing customs laws and regulation on exports i s mainly the Customs Administration. 
However, as in the case of imports, other institutions also participate.  
3.55.  Exporters need to register with the BOFT to clear goods through Customs. Export registration 
may be suspended, for instance, if goods infringe IPRs or if customs duties and charges, such as 
 
67 WTO document G/SCM/N/334/TPKM , 13 September  2018.  
68 WTO documents G/SCM/N/349/TPKM , 22 October  2019; G/SCM/N/392/TPKM , 26 July 2022; and 
G/SCM/N/399/TPKM , 3 February  2023.  
69 The products affected are certain carbon cold -rolled steel products; certain flat -rolled products of 
stainless steel, hot -rolled; certain flat -rolled stee l products, plated or coated with zinc or zinc -alloys; carbon 
steel plates; and flat -rolled products of stainless steel, cold -rolled, whether in coils or sheets.  
70 "Foreign Trade Act", 25  December  2019, Article  18; and Rules for Handling Import Relief Case s, 
13 January  2014.  
71 Rules for Handling Import Relief Cases, 13  January  2014.  
72 Rules for Handling Import Relief Cases, 13  January  2014, Article  4. 
73 Rules for Handling Import Relief Cases, 13  January  2014, Article  4. 
74 Customs Act, 11  May 2022, Article  72. 
75 In the case of offal, the additional duty may be imposed only where the cumulative import volume 
exceeds the trigger level (Regulations for Impos ition of the Additional Duty on Agriculture Products, Article  3). 
Viewed  at: https://eweb.customs.gov.tw/singlehtml/3298?cntId=cus16_3298_3298 . 
76 Customs Act, 11  May 2022, Article  70. 
77 Information provided by the authorities.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  trade promotion fees, are not paid. Exporters may reregister two years after revocation or 
nullification of the registration.78 
3.56.  An export declaration, with the supporting documents (e.g.  loading lists, booking no tes, and 
packing lists), as well as the required export permits, must be submitted to the Customs 
Administration prior to shipment. Export declarations may be corrected if required (Article  17 of the 
Customs Act). Documents may be transmitted electronicall y through the CPT Single Window system 
established by Customs. Electronic data transmission requires connection to Customs through the 
Customs value -added network (VAN).79 Paper copies may be used if the customs clearance system 
is not working.  
3.57.  Exporters c ertified as AEOs receive preferential treatment at Customs.80 AEOs require a lower 
document review and examination rate; goods selected for physical inspection may be exempt from 
examination, and if inspection cannot be exempt, goods are given priority. AEOs may also apply for 
non-intrusive inspection.  
3.58.  The BOFT, or other  institutions entrusted by the Bureau, is in charge of issuing certificates of 
origin or certificates of processing for exports, as required by the trading partners.81 However, with 
regard to trademarks, the exporter has to ascertain the ownership of the t rademarks, to prevent 
counterfeiting; the trademarks need to be indicated in the export declaration.82 If Customs deems 
that an export commodity bears a trademark that is not in conformity with the export declaration, 
the exporter is required to prove that  the owner has granted the right to use the trademark, verify 
that there is no violation, and release the commodity.83 
3.2.2   Taxes, charges, and levies  
3.59.  Chinese  Taipei does not levy any taxes on exports.84 
3.60.  Exports are exempt from the commodity tax, the Tobacco an d Alcohol Tax, the Tobacco Health 
and Welfare Surcharge, and the Specifically Selected Goods and Services Tax.85 The VANVABT is 
zero rated in the case of exports.86 
3.2.3   Export prohibitions, restrictions, and licensing  
3.61.  The BOFT on a yearly basis compiles a list  of restricted export commodities in accordance 
with export regulations.87 Chinese  Taipei imposes export restrictions on specific trading partners88, 
and on an MFN basis on the same grounds as import prohibitions.89 During the COVID -19 pandemic, 
a temporary export ban was imposed on masks with a specific filtering efficiency (HS  6307.90.50) 
(24 January to 31  May 2020)90, and on fever thermometers (HS  9025.19.90) (4  March to 
31 March  2020).  
 
78 The period is counted starting from the date of revocation or nullification ("Foreign Trade Act", 
Article  9). 
79 Implementation Regulations Governing the Operation of Cu stoms Port Trade Single Window, 
26 February  2019.  
80 Customs Act, Article  19. 
81 "Foreign Trade Act", Article  20-2. 
82 Regulations Governing Export of Commodities, 1  April 2020, Article  10. 
83 Regulations Governing Export of Commodities, 1  April 2020, Article  11. 
84 Information provided by the authorities.  
85 Commodity Tax Act, 30  December  2022, Article  3; Tobacco and Alcohol Tax Act, 8  February  2023, 
Article  5; Specifically Selected Goods and Services Tax Act, 24  June 2015, Article  6; and Tobacco Hazards 
Prevent ion Act, 22  March  2009, Article  4. 
86 Value -Added and Non -Value -Added Business Tax Act, 14  June 2017, Article  7. 
87 Regulations Governing Export of Commodities, 1  April 2020.  
88 "Foreign Trade Act", Article  5. 
89 "Foreign Trade Act", Article  6. 
90 WTO, COVID -19: Measures Affecting Trade in Goods . Viewed  at: https://www.wto.org/english/  
tratop_e/covid19_e/trade_related_goods_measure_e.htm . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  3.62.  The BOFT also issues export licences.91 Export licences (per mits) are valid for 30  days from 
the date of issuance and cannot be extended. If exports do not take place, the licence is cancelled, 
and reapplication is required.92 Amendments may be made to an export licence, in general within 
six months of the date whe n the original export licence was issued.93 Exports may be exempt from 
the licensing requirement if the f.o.b. value is less than USD  20,000 or if they are earmarked for a 
specific use. These exports include goods and fuel to be used by vessels (including fishing vessels), 
articles to be used in an exhibition, and articles to be used for humanitarian relief.  
3.63.  In 2023, 20 tariff lines at the at HS  10-digit level were subject to export licensing (permit), 
representing 0.2% of total lines. Goods subject to expo rt licensing, as at the time of the last Review, 
were mainly equipment in connection with semiconductors, diamonds, and microscopes (Table  3.8). 
Three  products require a seasonal export licence from 1  November to 31  March each year.94 In 2021 
and 2022, exp orts subject to licensing accounted for 0.4% of total exports.95 
Table  3.8 Export licensing (permit), 2023  
HS code  Description  Effective date  
0301.92.2010a Glass eel (elver) (over 5,000 pcs per kg)  01/01/1989  
0301.92.2020a Eel fry (not less than 501 pcs, less than 5,000 pcs per kg)  01/01/1989  
0301.92.2030a Young eel (elver) (not less than 11 pcs, less than 500 pcs 
per kg) 01/01/1989  
7102.10.0000  Diamond, unsorted  01/01/1989  
7102.21.0000  Industrial diamonds, unworked or simply sawn, cleaved 
or bruted  01/01/1989  
7102.31.0000  Non-industrial diamonds, unworked or simply sawn, 
cleaved or  bruted  01/01/1989  
8486.10.0020  Grinding, polishing and lapping machines for processing of 
semiconductor wafers  01/10/2010  
8486.20.0011  Chemical vapor deposition apparatus for semiconductor 
production  01/10/2010  
8486.20.0012  Physical deposition apparatus for semiconductor production  01/01/2009  
8486.20.0031  Machine -tools for dry -etching patterns on semiconductor 
materials  01/10/2010  
8486.20.0032  Spraying appliances for etching, stripping or cleaning 
semiconductor wafers  01/10/2010  
8486.20.0033  Apparatus for wet etching, developing, stripping or cleaning 
semiconductor wafers  01/10/2010  
8486.20.0040  Epitaxial deposition machines for semiconductor wafers  01/10/2010  
8486.20.0050  Ion implanters for doping semiconductor materials  01/01/2009  
8486.20.0061  Step and repeat aligners for semiconductor wafers  01/10/2010  
8486.20.0062  Scanning aligners for semiconductor wafers  01/10/2010  
8486.20.0063  Electron beam direct writers to produce patterns on 
semiconductor wafer  01/10/2010  
8486.20.0071  Spin dryers for semiconductor wafer processing  01/10/2010  
8486.20.0072  Spinners for coating photographic emulsions on 
semiconductor wafers  01/10/2010  
8486.20.0073  Photo -resist coaters for semiconductor wafers  01/10/2010  
8486.20.0080  Apparatus for rapid heating of oxidation, diffusion, 
annealing of semiconductor wafers  01/10/2010  
9031.41.1010  Photomicrographic microscopes fitted with equipment 
specifically designed for the handling and transport of 
semiconductor wafers or reticles  01/10/2010  
9031.80.0020  Electron beam microscopes fitted with equipment 
specifically desi gned for the handling and transport of 
semiconductor wafers or reticles  01/10/2010  
a Licensing/permit applied from 1  November to 31  March only.  
Source:  Ministry of Economic Affairs, BOFT.  
 
91 For exports of strategic high -tech commodities, the BOFT or the appointed or entrusted agency issues 
the export licence (permit) (Regulations Governing Export and Import of Strategic High -tech Commodities, 
20 October  2017).  
92 Regulations Governing Export of Commodities, 1  April 2020, Article  24. 
93 Regulations Governing Export of Commodities, 1  April 2020, Article  26. 
94 These products are glass eel (elver) (HS  0301.92.2010); eel fry (HS  0301.92.2020); and young eel 
(elver) (HS  0301.92.2030) . Viewed  at: https://www.trade.gov.tw/English/ . 
95 WTO Secretariat calculations based on data from the BOFT.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  3.64.  Export prohibitions apply to 32 tariff lines at the HS  10-digit level, representing 0.3% of total 
tariff lines in 2023. Prohibitions are unchanged since the previous Review; they apply mainly to 
whale shark, Dutchman's pipe (plant), and weapons (Table  3.9). 
Table  3.9 Prohibited exports, February  2023  
HS code  Description  Effective date  
0106.19.4023  Myocastoridae spp.  01/09/2013  
0208.90.2920  Meat of dogs, fresh, chilled or frozen  01/01/2009  
0301.99.2948  Serrasalmus spp., Pygocentrus spp., Pristobrycon spp., Pygopristis spp.  01/09/2013  
0301.99.2949  Electric eel (Electrophoridae spp.)  01/09/2013  
0301.99.2951  Whale shark (Rhincodon typus), live  17/07/2017  
0302.81.0010  Whale shark (Rhincodon typus), fresh or chilled  29/11/2013  
0303.81.0010  Whale shark (Rhincodon typus), frozen  29/11/2013  
0304.47.0010  Whale shark (Rhincodon typus) fillets, fresh or chilled  01/01/2017  
0304.59.9020  Whale shark (Rhincodon typus) meat (whether or not minced), fresh or 
chilled  29/11/2013  
0304.88.0011  Whale shark (Rhincodon typus), fillets or steaks, frozen  01/01/2017  
0602.90.1010  Mushroom spawn, containing narcotics (the composition of which is as set 
forth in Article  2.3 of "Statute for Narcotics Hazard Control")  21/08/2002  
1211.90.6000  Slender dutchmanspipe (A ristolochia debilis radix)  01/01/2017  
1211.90.9141  Southern Fangchi Root (Aristolochiae Fangchi Radix)  01/01/2017  
1211.90.9142  Stem of manchurian dutchmanspipe (Aristolochiae manshuriensis caulis)  01/01/2017  
1211.90.9143  Dutchmanspipe fruit ( Aristolochiae Fructus)  01/01/2017  
1211.90.9144  Dutchmanspipe vine (Aristolochiae Caulis)  01/01/2017  
1404.90.9950  Mushroom products, containing narcotics (the composition of which is as set 
forth in Article  2.3 of "Statute for Narcotics Hazard Control")  21/08/2002  
1604.19.9071  Whale shark (Rhincodon typus), whole or in pieces, but not minced, 
prepared or preserved, frozen  22/03/2001  
1604.19.9072  Whale shark (Rhincodon typus), whole or in pieces, but not minced, 
prepared or preserved, canned  22/03/2001  
1604.19.9079  Other whale shark (Rhincodon typus), whole or in pieces, but not minced, 
prepared or preserved  22/03/2001  
2505.90.0010  Other natural sands, chloride containing more than 0.012%  05/07/2017  
2505.90.0090  Other natural sand of all kinds, whether or not coloured, other than 
metal -bearing sands of Chapter 26  05/07/2017  
2517.10.9000  Other pebbles, gravel, broken or crushed stone, of a kind commonly used 
for concrete aggregates, for road metalling or for railway or other ballast, 
wheth er or not heat -treated  29/11/2013  
8710.00.0010  Tanks and other armoured fighting vehicles, motorised, whether or not 
fitted with weapons  29/07/1993  
8710.00.0020  Parts of tanks and other armoured fighting vehicles, motorised  29/07/1993  
8906.10.0000  Warships  19/12/2003  
9301.10.0000  Artillery weapons (for example, gun, howitzers and mortars)  29/11/2013  
9301.20.0000  Rocket launchers; flame -throwers; grenade launchers; torpedo tubes and 
similar projectors  19/12/2003  
9301.90.0000  Other military weapons  19/12/2003  
9705.00.0020  Collections and collectors' pieces of weapon  31/12/1994  
9705.00.0090  Other collections and collectors' pieces of zoological, botanical, 
mineralogical, anatomical, historical, archaeological, pal aeontological, 
ethnographic, or numismatic interest  31/12/1994  
9706.00.0090  Other antiques of an age exceeding 100 years  04/01/1995  
Source:  Ministry of Economic Affairs, BOFT.  
3.2.4   Export support and promotion  
3.65.  Under the duty drawback programme, customs duties and other charges paid on imported 
raw materials used to produce goods for export may be offset or refunded following exportation of 
the finished products, unless the item for which the duties or taxes had to be refunded "has been 
cancelled by the M inistry of Finance by public notice or the amount of the refundable duty, or 
percentage of it in the f.o.b. price of the finished products is lower than the limit prescribed by the 
Ministry of Finance".96 In 2023, all raw materials except 51 items may bene fit from this refund 
(Table  A3.5). Manufacturers must apply for a duty refund or an offsetting of the accounts for export 
products, within a year and a half after the date on which the raw materials were imported. If this 
 
96 Customs Act, 11  May 2022, Article  63. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  time limit is exceeded, the applic ation is in general rejected; however, the time limit may be 
extended for one year, under special circumstances.97 
3.66.  Export processing enterprises may be registered as bonded factories.98 Raw materials, and 
machinery and equipment imported by bonded factorie s, to be used in manufacturing or processing 
of exported products are exempt from customs duties. If inputs or raw materials are moved out of 
bonded factories, duties must be paid; in this case, duties are paid only if machinery and equipment 
are moved out  within five years following the date of importation.  
3.67.  The Export Processing Zones (EPZs), an incentive programme notified to the WTO that was 
established to promote investment and trade99, operated until 2021, when they were renamed to 
Technology Industria l Parks (TIPs)100, under the same statutes. The EPZs were managed by the 
Export Processing Zone Administration101, while the TIPs are managed by the Bureau of Industrial 
Parks under the MOEA.102 The activities that the industries established in the EPZs were authorized 
to perform did not seem to have changed since the previous Review and these same activities can 
be undertaken in the TIPs. The industries established in the EPZs were exempted from import taxes, 
commodity taxes, and business taxes on machinery a nd equipment, raw materials, fuels, 
semi-finished products, samples, experimental animals and plants and goods for trade, storage and 
transhipment; and from deed taxes on the acquisition of newly -built factories, and so are the ones 
established in the TIPs .103 
3.68.  In 2022, there were 10 TIPs in operation. The number of companies operating in EPZs (TIPs ) 
and their corporate revenue increased over the period under review, from 629 companies in  2018 
with a total corporate revenue of USD  13,096.7  million to 745 in 2022 with a total corporate revenue 
of USD  17,616.7  million; the number of employees also incr eased, from 82,418 in 2018 to  88,596 
in 2022. These companies operate primarily in the manufacturing sector (specifically in electronic 
parts and components; machinery and equipment; and computers, electronic and optical products). 
The EPZ/TIP programme re mains important for Chinese  Taipei as, over the 2018 -22 period, on 
average, it accounted for 4.1% of total exports and 3.1% of total imports.  
3.69.  The Trade Promotion Working Plan, implemented by the BOFT, has been in place to promote 
export diversification.104 The main tasks include organizing exhibitions, providing customized project 
services and information services, maintaining and operating a trade portal105, and integrating the 
private sector to develop new markets. Support to participate in different exhibi tions is provided for 
up to TWD  300,000; the grant may be used for instance to install counters at fairs and for travel 
expenses.106 The support programmes and procedures were modified to allow for more flexibility in 
response to the COVID -19 pandemic. For instance, the BOFT increased support, which is currently 
still in force, for online exhibitions.  
3.70.  In addition, Chinese  Taipei also implements industry -specific programmes. For instance, 
Chinese  Taipei supports the textiles and clothing industry, which is on e of the most significant 
manufacturing sectors, through the "Textile Export Promotion Project" (TEPP). In 2021 the project 
 
97 Customs Act, 11  May 2022, Article  63; and Regulations Governing the Offsetting or Refund of Duties 
and Taxes on Raw Materials for Export Products, 19  March  2018.  
98 Customs Act, 11  May 2022, Article  59. 
99 WTO document G/SCM/N/372/TPKM , 1 June 2021; and Statute for the Es tablishment and 
Administration of Export Processing Zone, 2  June 2010.  
100 The Management Regulations of the Export Processing Zone Administration and Branches, 
3 May 2021.  
101 The Management Regulations of the Export Processing Zone Administration and Branches, 
3 May 2021.  
102 Act for the Establishment and Administration of Technol ogy Industrial Parks, 19  January  2023 
(last amended).  
103 Act for the Establishment and Administration of Technology Industrial Parks, 19  January  2023 
(last amended), Article  21; and Statute for the Establishment and Administration of Export Processing Zone,  
2 June 2010, Article  13. 
104 Viewed  at: https://www.tppo.org.tw/ . 
105 Viewed  at: https://www.taiwantrade.com/home.html . 
106 Viewed  at: https://www.tppo.org.tw/upload/20220523182004.pdf . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  mainly provided marketing assistance to premium textile exporters.107 Chinese  Taipei's textile and 
clothing industry has evolved to d evelop high value -added materials and functional textiles.108 
3.2.5   Export finance, insurance, and guarantees  
3.71.  The Export -Import Bank (Eximbank), a specialized bank, continues to facilitate trade in 
accordance with the general economic, trade, and finance policies ; in this context it cooperates in 
different initiatives designed, inter alia, by the MOEA and the BOFT. Its main objectives are to 
provide financial services to facilitate trade and thus promote employment and economic growth. 
Against this background, the  bank continues to offer different types of short - and long -term export 
and investment credit facilities; shipbuilding credit; export guarantees; export credit insurance; and 
relending and other types of financing facilities.109 In addition, as in 2021, Exi mbank implemented 
the "Got Your Back", a programme designed to support enterprises that encountered operational 
difficulties due to the pandemic.110 
3.72.  Eximbank offers various export credit facilities mainly to promote exports of goods, services, 
and technolog y, to achieve industrial integration of traditional and high -tech industries and industrial 
upgrading, while assisting manufacturers to become more competitive and invest overseas. Thus, 
beside the general loans, Eximbank also has facilities to assist the development of innovative key 
industries such as machinery and other capital equipment in line with the "5+2 Innovative Industries 
Plan". The bank also has programmes targeting SMEs through the provision of export credit 
insurance; it offers insurance for up to 100% (political risk) and 80% -90% (commercial risk).111 
In 2021, loans provided to SMEs accounted for 30.3% of the total loans, and some 85% of the 
bank's customers of export credit insurance business were SMEs.112 
3.73.  The terms of financing differ for eac h credit facility; for instance, Eximbank provides general 
export credit for up to 2  years, and medium - and long -term export credit for up to 10  years. The 
coverage of the credit also varies (it may reach up to 100%). Interest rates are determined by 
Eximb ank, on a case -by-case basis, based on cost of capital, operating conditions, and market rates 
for similar loans. At present, for instance, a floating interest rate applies to transactions under the 
Relending Facility. Under this Facility, Eximbank provide s loans to local and overseas financial 
institutions, which, in turn, relend funds to finance imports of goods produced in Chinese  Taipei. The 
percentage of financing is up to 100% of the gross purchase price, for a five -year period.113 
3.3  Measures affecting p roduction and trade  
3.3.1   Incentives  
3.74.  As in 2018, Chinese  Taipei continues to implement a series of incentive programmes, which 
have been notified to the WTO. The programmes notified included mainly sectoral incentives, such 
as subsidies for agriculture114, forest ry, and industry, as well as horizontal incentive programmes to 
promote R&D. Some of these programmes are in place to stimulate investment and technological 
innovation, promote the development of SMEs, and facilitate access to credit.115 Chinese  Taipei also 
offers incentives based on geographic considerations (remote areas)116, and regimes such 
 
107 Small and Medium Enterprise Administration (SMEA), 2021 White Paper on Small and Medium 
Enterprises . 
108 Viewed  at: https://export.textiles.org.tw/en/about_us.aspx . 
109 For the full list of Eximbank's services, see: https://www.eximbank.com.tw/en -
us/BankService/Loans/Pages/default.aspx# . 
110 Eximbank (2022), Annual Report 2021 . Viewed  at: https://www.eximbank.com.tw/en -
us/AnnualReport/SiteAssets/Pages/Forms/EditForm/2021%20Annua l%20Report.pdf . 
111 Viewed  at: https://www.eximbank.com.tw/en -us/BankService/ECI/Pages/SECISM.aspx . 
112 Eximbank (2022), Annual Report 2021 . Viewed  at: https://www.eximbank.com.tw/en -
us/AnnualReport/SiteAssets/Pages/Forms/EditForm/2021%20Annua l%20Report.pdf . 
113 Viewed  at: https://www.eximbank.com.tw/en -
us/BankService/RelendingFacility/Pages/RelendingFacili ty.aspx . 
114 WTO document G/AG/TPKM/207 , 12 January  2022.  
115 WTO document G/SCM/N/372/TPKM , 1 June 2021.  
116 Chinese  Taipei notified that it subsidizes the construction of petroleum facilities in remote, aboriginal, 
and isolated island areas as well as transportation outlays, and offers price subsidies by subsidizing the cost of 
shipping to remote areas (WTO document G/SCM/N/372/TPKM , 1 June 2021).  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  as FTZs117, Science Parks, EPZs/TIPs, and Agricultural Technology Parks, in which established 
enterprises may benefit from duty and tax exemptions. Incentives are also granted to promote 
investment (Section  2). 
3.75.  Chinese  Taipei provides support to produce rice, feed corn, soybeans, forage crops, wheat, 
sugarcane, and other indigenous crops. Policy -oriented special agricultural loans at preferential 
interest rates, which range from 1.29% to 2.43%, are also available to all farmers and fishers and 
agricultural industries. There are different types of loans, with specific ceilings, determined by 
the COA; however, the amount of the loan is decided by the ban k, based on the applicant's financial 
situation. The objective of these programmes is to ensure food security, farmers' income, disaster 
relief, environmental conservation of farmland, and in the case of sugar, to develop the sugar 
industry (Section  4.1). In the fisheries sector, to reduce fishing capacity and thus ensure the 
sustainability of fisheries resources, Chinese  Taipei implements programmes to buy -back fishing 
vessels, close the fishery season, and promote the purchase of marine disaster insurance  by covering 
a portion of the insurance cost.  
3.76.  The support programmes notified for the industrial sector relate mainly to the financing 
for SMEs. The SME sector continues to be extremely important for the economy. According to 
information provided by the au thorities, in 2021, some 1.6  million companies (98.9% of all 
companies) were considered SMEs, generating approximately 80.4% of total jobs; most 
SMEs  operated in the services sector. The export value (of both goods and services) produced by 
SMEs was TWD  3,361 billion in 2021, up from TWD  2,694  billion in 2020, and the export contribution 
(the ratio of exports of goods and services by SMEs to total exports) was around 26% in 2021.118 In 
terms of merchandise exports, the top three industries are electronic parts and components, 
machinery and equipment, and fabricated metal products. In addition, in 2021 female -owned 
SMEs  accounted for 37% of all SMEs119; they operated mainly in the serv ices sector (i.e.  wholesale 
and retail trade, and accommodation and food services).  
3.77.  SMEs are regulated, inter alia, by the Act for Development of Small and Medium Enterprises, 
Standards for Identifying Small and Medium -sized Enterprises, and the Small and Medium Enterprise 
Guidance System Establishment and Guidance Rules. In 2020, Chinese  Taipei revised the definition 
of SMEs; as of that date, businesses in all sectors of the economy with paid -in capital of no more 
than TWD  100 million or fewer than 200 reg ular employees are considered as SMEs.120 Previously, 
different criteria were used. The "old standard" included only businesses in the manufacturing, 
construction, and mining and quarrying sectors with paid -in capital of no more than TWD  80 million 
or fewer  than 200 regular employees, or businesses in other industries besides those mentioned 
above with either a sales revenue of TWD  100 million or less in the previous year, or fewer than 
100 regular employees in the previous year.121 
3.78.  Chinese  Taipei seeks to pr omote the SME sector through various support programmes. In this 
context, the SME Development Fund was established to ensure financing and guarantees for the 
sector.122 The competent authority is in charge of coordinating with financial and credit guarantee  
institutions to ensure the provision of capital for SMEs, and if needed, to meet the capital 
requirements for small and medium credit guarantee institutions through a donation (Article  13). 
Banks are required to provide a specific ratio of their portfolio /financing facilities to SMEs and make 
funds available to provide special or emergency financing facilities (Articles 13 -17). If a SME suffers 
damages because of natural disaster, the competent authority coordinates with the financial 
authority for tax exe mption or reduction or other remedies (Article  22). In addition, Chinese  Taipei 
notified that all enterprises that meet the Standards for Identifying Small and Medium -sized 
Enterprises may apply for loans to finance damage caused by disaster, at a ceiling interest rate 
of 1% plus a flat rate of the two -year postal fixed savings rate. SMEs may also apply for medium - and 
long-term loans for product marketing, overseas investment, and construction projects. Loan 
 
117 Act for the Establishment and Management of Free Trade Zones, 16  January  2019.  
118 Viewed  at: https://www.moeasmea.gov.tw/masterpage -en. 
119 SMEA, White Paper on Small and Medium Enterprises 2022 , Chapter  1: Major Trends in the 
Development of SMEs.  
120 Standards for  Identifying Small and Medium -sized Enterprises, 24  June 2020. Viewed  at: 
https://law.moea.gov.tw/EngLawContent.aspx?lan=E&id=10396 . 
121 Information p rovided by the authorities.  
122 Act for Development of Small and Medium Enterprises, 6  January  2016, Article  9. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  applications are approved by commercial banks, b ut financing is provided by the SME 
Development  Fund.123 
3.79.  SMEs that invest in innovative R&D may get a tax credit of up to 30% of the income tax 
payable (Article  35). In addition, the Small Business Innovation Research (SBIR) programme 
provides grants to enc ourage SMEs to engage in innovation and R&D. The programme provides 
grants for (i)  preliminary research and planning (phase 1) (maximum of TWD  1 million) for 
six months; (ii)  R&D and detailed planning (phase  2) (maximum of TWD  10 million) for two years; 
and (iii)  implementation (phase  2+) (maximum of TWD  5 million) for one  year.124 
3.80.  In 2021, through the " International Market Development Subsidy Plan ", in place since  2013, 
assistance was provided in 43 cases, including to 29 SMEs, to encourage market diversifi cation.125 
To further support SMEs, Chinese  Taipei has implemented a series of programmes such as the 
"Township Revitalization Project for Small and Medium Enterprises" (since 2018) and the "Project of 
Digital Innovation and International Marketing for SMEs " (since 2019).126 
3.81.  In addition, under the Statute for Industrial Innovation (SII), SMEs may also obtain 
a 10%-15% tax credit against income tax for R&D expenditures.127 In January  2023, the SII was 
amended to offer tax credits against income tax to a company  that engages in technological 
innovation, occupies a key position in global supply chains, and invests in innovative R&D (25% tax 
credit on income tax) and advanced manufacturing processes (5% tax credit on income tax).128 In 
order to accelerate industrial  innovation and value -added, and promote economic transformation 
and development, a special fund for development (NDF) was established (Article  29) to, inter alia, 
finance investment (e.g.  in industrial innovation, high -tech development, recyclable/renewab le 
energy/resources, and "green energy" industries), and facilities.129 
3.82.  Chinese  Taipei also offers grants to finance leading industries, develop innovative 
applications, and upgrade and transform existing industries, such as biotechnology, new 
pharmaceutica ls, and 5G and smart machine technologies. Under the amended SII, the duration of 
tax credits for investment in new smart machinery and 5G wireless systems was extended until 
end-2024.130 Chinese  Taipei also provides tax incentives to promote the biotech an d pharmaceutical 
industries (advanced medical and high -tech products).131 In 2021, Chinese  Taipei extended the 
existing tax breaks for investment in biomedical R&D for another 10  years.132 The revised SII also 
provides for new tax benefits to further promote  the development of the biomedical industry. The 
exploration and development of oil and natural gas reserves is also subsidized, through grants and 
loans at preferential interest rates, in order to ensure the local supply and stabilize the oil market.  
3.83.  To stimulate R&D and innovation of industrial technology and promote the development of 
advanced technology, the SII also allows for the establishment of industrial parks.133 According to 
the authorities, there are currently 214 industrial parks established und er the SII; these can be set 
up by the public or the private sector. These parks provide infrastructure and services to foster the 
creation of industrial clusters and local development. Industries established in these parks do not 
receive any tax concessio n. 
 
123 WTO document G/SCM/N/372/TPKM , 1 June 2021.  
124 Viewed  at: https://www.moeasmea.gov.tw/article -en-2607-4318. 
125 Viewed  at: https://www.imdp.org.tw/ . 
126 Viewed  at: https://info.moeasmea.gov.tw/masterpage -wpi. 
127 Statute for Industrial Innovation , 18 February  2022.  
128 Viewed  at: https://english.ey.gov.tw/Page/61BF20C3E89B856/e68f4b83 -e22b-4587-9d9a-
b0bb3a3de5da . 
129 Statute for Industrial Innovation, 18  February  2022, Article  30. 
130 Statute for Industrial Innovation, 18  February  2022, Article  10-1. 
131 Act for the Development of Biotech and Pharmaceutical Industry, 30  December  2021.  
132 Act for the Development of Biotech and New Pharmaceuticals Industry was renamed to Act for the 
Development of Biotech and Pharmaceutical Industry, and the benefits granted under Articles  5 to 10 are 
effective from 1  January  2022 to 31  December  2031.  
133 Statute for Industrial Innovation  (latest amendment) , 19 January  2023, Article  33. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  3.84.  In addition to the industrial parks allowed by the SII, at present, there are other types of 
parks or bonded area such as FTZs, Science Parks134, TIPs (previously EPZs)135, and Agricultural 
Technology Parks.136 Some of these parks are bonded areas and/or offer tax incentives to the 
established enterprises. In general, all park enterprises are entitled to import raw materials, 
commodities, fuel, semi -finished products, and machinery and equipment, exempt from cus toms 
duties and other charges affecting imports.137 
3.85.  FTZs are bonded areas that have been in place to promote trade, and thus economic 
development, by facilitating logistics and management system, and the flow of goods, financial 
services, and technology tra nsfer. Goods, machinery, and equipment that enter an FTZ are exempt 
from customs duties and other charges affecting imports, and other fees (e.g.  trade promotion 
service fees, and harbour service dues).138 To promote employment, Chinese  Taipei requires that at 
least 60% of all employees hired in FTZ enterprises are natural persons from Chinese  Taipei.139 
In 2023, there are seven FTZs established, including six seaport FTZs and one airport FTZ. Each  FTZ 
has a  unique development strategy and is positioned according to its location and main industry in 
the nearby area to create industry clusters and synergies. In 2022, the value of goods traded 
through  FTZs amounted to TWD  1.8 trillion, and the volume was 4.35  million tonnes.140 
3.3.2   Standards and other technical requirements  
3.86.  The main legislation regulating standardization, metrology, and consumer safety in 
Chinese  Taipei did not change substantially during the period under review141; however, the 
subsidiary legislation  is often updated as required in response to industry and consumer needs, and 
technological developments. For instance, there are 7 regulations and 12 directives relating to 
standardization, 117  directives governing the different regulated products and pro cedures, and 
25 regulations setting issues such as the use of certification marks, recognition of testing 
laboratories, and exemptions from inspection.142 In the case of metrology, the Act dates from 2009 
and has not changed; nevertheless, there are 14  regulations and 33  directives that deal with 
verification and type approval related to weights and measuring instruments.143 
3.87.  The Bureau of Standards, Metrology and Inspection (BSMI), under the MOEA, is the 
competent authority to enforce the Standards, Commodity  Inspection, and Weights and Measures 
Acts. It  continues to be responsible for standardization, metrology, and consumer product safety. It 
is also the WTO enquiry point/notification authority for TBT issues.  
3.88.  The BSMI sets an annual work programme, which in cludes Chinese  Taipei's standards  (CNS) 
that are to be drafted and revised according to the needs of manufacturers, consumers, and other 
users, with a view to applying consistent standards to Chinese  Taipei's products, procedures, and 
services.144 The work programme is published on a monthly basis in the BSMI Standards Gazette. 
In its 2022 work plan, the BSMI emphasized areas related to green energy technologies, 
environmental protection, energy saving, smart machinery, and products to assist in scientific a nd 
technological development.  
 
134 WTO document G/SCM/N/372/TPKM , 1 June 2021; and Act for Establishment and Administration of 
Science Parks, 6  June 2018.  
135 Act for Establishment and Administration of Technology Industrial Parks, 19  January  2023.  
136 Act of Establishment and Administration of Agricultural Technology Parks, 4  May 2016.  
137 Act for Establishment and Administration of Science Parks, 6  June 2018, Art icle 23; Act for 
Establishment and Administration of Technology Industrial Parks, 19  January  2023, Article  21; and Act of 
Establishment and Administration of Agricultural Technology Parks, 4  May 2016, Article  22. 
138 Act for the Establishment and Management of Free Trade Zones, 16  January  2019, Article  21. 
139 Act for the Establishment and Management of Free Trade Zones, 16  January  2019, Article  10. 
140 Information provided by the authorities.  
141 These include the Standards Act, 26 November  1997; the Enforcement R ules of the Standards Act, 
25 November  1998; the Commodity Inspection Act,  11 July 2007; and the Weights and Measures Act, 
21 January  2009. Viewed  at: https://www.bsmi.gov.tw/wSite/np?ctNode=9 519&mp=2 . 
142 Viewed  at: https://www.bsmi.gov.tw/wSite/np?ctNode=9519&mp=2  and 
https://www.bsmi.gov.tw/wSite/lp?ctNode=9522&xq_xCat=b&mp=2 ; and information provided by the 
authorities.  
143 Viewed  at: https://www.bsmi.gov.tw/wSite/lp?ctNode=9521&xq_xCat=c&mp=2 ; and information 
provided by the authorities . 
144 Viewed  at: https://www.bsmi.gov.tw/wSite/public/Attachment/f1677826197395.pdf . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  3.89.  Within the BSMI, the Standards Division is responsible for the development and compilation 
of CNS. Standards are set in accordance with the Standards Act and applicable regulations and are 
developed considering the interests o f consumer and industry, and international practices.145 Use of 
standards is voluntary unless referenced in a technical regulation as being mandatory. Technical 
regulations are the basis to carry out inspection, certification, accreditation, recognition, or  other 
conformity assessment activities. When a need for establishing a technical regulation arises, suitable 
existing local and international standards are reviewed for referencing in the technical regulation.  
3.90.  Procedures to develop standards do not seem t o have changed substantially since the last 
Review in 2018. The procedure is as follows: submitting a proposal146; drafting; soliciting comments; 
review; determination; and approval and promulgation.147 In general, it takes about six  months to 
complete the p rocess; however, if the proposal is complex or onsite investigation or testing is 
required, eight or more months may be needed.148 International standards are used, fully or 
partially, as a basis for drafting CNS. The BSMI may also adopt related internation al standards or 
Chinese  Taipei's group standards that already exist when these are technically appropriate and 
applicable.149 According to information provided by the authorities, the equivalency rate between 
CNS and international standards is high (Table  3.10). Standards are reviewed every five  years after 
adoption or earlier if required. Copies of CNS may be purchased online or onsite; CNS that have 
English translations are marked with an asterisk in the CNS Catalogue.  
Table  3.10 CNS and their equivalence with international standards  
Area  Total local 
standards  
Existence of 
international  
standardsa 
(A) 
Number of local 
standards 
equivalent to 
international 
standardsb 
(B)=(C)+(D)  
Mandatory  
technical  
regulations  
(C) 
Voluntary  
standards  
(D) 
Rate of equivalence 
(%) 
(E)=(B)/(A)×100  
Civil engineering and architecture  560 81 72 6 66 88.9 
Mechanical engineering  2,138  457 455 41 414 99.6 
Electrical engineering  1,244  429 425 78 347 99.1 
Electronics engineering  603 271 271 25 246 100.0  
Automotive and aerospace 
engineering  477 41 41 2 39 100.0  
Railway engineering  106 23 23 0 23 100.0  
Shipbuilding engineering  354 22 22 1 21 100.0  
Ferrous materials and metallurgy  312 127 127 36 91 100.0  
Non-ferrous materials and 
metallurgy  236 78 78 4 74 100.0  
Nuclear engineering  0 0 0 0 0 n.a. 
Chemical industry  1,956  519 519 24 495 100.0  
Textile industry  390 116 115 3 112 99.1 
Mining  82 8 8 0 8 100.0  
Agriculture  331 92 92 1 91 100.0  
Food 355 174 173 11 162 99.4 
Wood industry  85 20 18 4 14 90.0 
Pulp and paper industry  190 62 62 4 58 100.0  
Environmental management  54 52 52 0 52 100.0  
Ceramic industry  282 70 63 3 60 90.0 
Wares  306 102 102 3 99 100.0  
Accessibility design  35 30 30 0 30 100.0  
Medical equipment and appliances  258 150 150 3 147 100.0  
Information and communication  921 835 834 8 826 99.9 
Industrial safety  252 49 43 13 30 87.8 
 
145 Updated information on the drafting or revising of CNS is published in the Standards Gazette and at: 
https://www.bsmi.gov.tw/ . 
146 Any person, legal entity, public agency, or organization may submit a proposal for the establishment, 
amendment, or resciss ion of CNS (information provided by the authorities).  
147 Standard Act, 26  November  1997, Article  7. 
148 Viewed  at: https://www.bsmi.gov.tw/wSite/ct?xItem=4122&ctNode=9814&mp=2 . 
149 Standard Act, 26  November 1997, Article  8. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Area  Total local 
standards  
Existence of 
international  
standardsa 
(A) 
Number of local 
standards 
equivalent to 
international 
standardsb 
(B)=(C)+(D)  
Mandatory  
technical  
regulations  
(C) 
Voluntary  
standards  
(D) 
Rate of equivalence 
(%) 
(E)=(B)/(A)×100  
Quality control  74 62 62 4 58 100.0  
Physical distribution and 
packaging  174 45 45 1 44 100.0  
General and miscellaneous  429 253 252 24 228 99.6 
Total  12,204  4,168  4,134  299 3,835  99.18  
n.a. Not applicable.  
a Number that has corresponding international standards.  
b Local standards that are identical with or modify corresponding international standards are 
considered equivalent to international standards.  
Source:  Information provided by the authorities.  
3.91.  The BSMI continues to provide voluntary certification and testing services.150 The BSMI 
implements two voluntary product certifica tion programmes: the CNS Mark Certification (CNS  Mark) 
System, which is granted to products that comply with relevant CNS; and the Voluntary Product 
Certification (VPC) System, which is used mainly for products with emerging technology and for 
innovative p roducts. The main difference between the two systems is that the VPC System can be 
used to certify products that comply with relevant international standards where CNSs have not yet 
been developed.151 
3.92.  Overseas manufacturers may apply to obtain a CNS Mark Ce rtificate. To obtain a CNS Mark, 
a company needs to have its quality management system assessed and products tested to assess 
compliance with CNS standards. Assessment of the company's quality management system is done 
by certification bodies recognized by  the BSMI. Testing can be done by the BSMI or testing 
laboratories recognized by the  BSMI.152 Once permission to use the CNS Mark has been granted, the 
BSMI will, inter alia, conduct follow -up visits to factories for quality control, inspect products in the  
market, and revise compliance. In cases of non -compliance, the CNS Mark registered manufacturers 
are required to take corrective measures.153 
3.93.  Products subject to technical regulations must be inspected as per the Commodity Inspection 
Act and its regulation s before they are imported or placed on the market.154 The BSMI oversees 
inspection and testing; it maintains four kinds of pre -market inspection schemes: batch -by-batch 
inspection, monitoring inspection, registration of product certification (RPC), and dec laration of 
conformity (DoC). For batch -by-batch inspection and monitoring inspection, manufacturers or 
importers must apply to the BSMI for inspection before products are shipped out of the production 
premises or when they arrive at destination. Testing c an be done by the BSMI, its commissioned 
organizations, or testing laboratories recognized by the BSMI.155 The Commodity Inspection Mark 
shall be affixed before products are placed on the market.156 The BSMI also undertakes post -market 
surveillance based on a risk assessment system to ensure the safety of regulated products. The 
BSMI adopts an annual plan to undertake market surveillance and identify products of high risk, and 
specifies principles for conducting surveillance activities, including market check s, sampling tests, 
 
150 Viewed  at: https://www.bsmi.gov.tw/wSite/ct?xItem=4141&ctNode=9457&mp=2 . 
151 Directions Governing the CNS Mark, 26  May 2022; Regulations Governing the CNS Mark, 
22 January  2022; and Regulations Governing Fees for the CNS Mark, 11  November  2021.  
152 Viewed  at: https://www.bsmi.gov.tw/wSite/ct?xItem=4129&ctNode=9814&mp=2 . 
153 Information provided by the authorities.  
154 Regulations Governing Fees for Commodity Inspection, 7  November  2022; Regulations Governing the 
Use of Commo dity Inspection Mark, 11  January  2022; and Regulations Governing Exemption from Inspection 
of Commodities, 21  November  2019.  
155 For a list of Conformity Assessment Bodies, see: 
https://www.bsmi.gov.tw/wSite/lp?ctNode=9769&CtUnit=4133&BaseDSD=7&mp=2 . 
156 Viewed  at: https://www.bsmi.gov.tw/wSite/ct?xItem=97595&ctNode=9766 . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  special projects, and monitoring of products sold online.157 Importers or manufacturers of certain 
products may apply for exemption from inspection under certain conditions.158 
3.94.  The number of products that require mandatory inspection by th e BSMI increased from 
1,224  in 2018 to 1,356 in 2022. During 2018 -22, 165 items were added, and 33 items were removed 
from the List of Regulated Products. According to the authorities, all of the added products were 
notified to the WTO TBT Committee. Most of the products that are regulated are mechanical 
products, electrical and electronics products, and textiles.159 
3.95.  To facilitate conformity assessment procedures for the industry and trading partners, 
Chinese  Taipei has several mutual recognition arrangement s (MRAs ); these mainly cover electrical 
and electronic products. Some MRAs only cover the recognition of test reports, while others are more 
comprehensive, with recognition extending to certificates. Testing laboratories or certification bodies 
are designa ted under different MRAs, which allow products for export to the other contracting party 
to be tested locally.  
3.96.  During 2018 -23 (June), Chinese  Taipei made 213 regular notifications to the 
WTO TBT Committee, most of which were notified as technical regulatio ns or/and conformity 
assessment procedures.160 The measures notified related mainly to measures to protect human 
health and safety. Four notifications were related to temporary measures taken because of the 
COVID -19 pandemic; one of them was of an urgent na ture.161 The urgent measure related to draft 
amendments to the Regulations for the Inspection and Examination of Imported Medical Devices.162 
During the review period, one specific trade concern was raised at the Committee about the draft of 
the Organic Agri culture Act.163 
3.3.3   Sanitary and phytosanitary requirements  
3.97.  The regulatory framework to formulate and implement sanitary and phytosanitary  (SPS) 
measures has not changed significantly since the previous Review. Several laws and regulations still 
regulate plant and animal health and food safety (Table  3.11). The main pieces of legislation to 
govern measures to prevent the introduction of pests or diseases and ensure food sanitation, safety 
and, quality, and protect public health are the Plant Protection and Quara ntine Act; Statute for the 
Prevention and Control of Infectious Animal Diseases; and the Act Governing Food Safety and 
Sanitation.  
Table  3.11 Main SPS legislation, 2022  
Legislation  Entry into 
force  
Plant Protection and Quarantine Act  20/06/2018  
Control plant diseases and pests and prevent their spread   
Enforcement Rules of the Plant Protection and Quarantine Act  11/05/2020  
Regulate inspections conducted in the inspection areas of port warehouses  
Inspections are to take place based on risk assessment   
Quarantine Requirements for the Importation of Plants and Plant Product  19/01/2023  
List of prohibited plants or plant products, origin, and the reasons thereof   
 
157 Viewed  at: https://www.bsmi.gov.tw/wSite/ct?xItem=97640&ctNode=9770  and 
https://www.bsmi.gov.tw/wSite/ct?xItem=97595&ctNode=9766 . 
158 These conditions are listed in Articles 4 -14 of the Regulations Governing Exemption from Inspection 
of Commodities.  
159 The lists of regulated products is available at: 
https://www.bsmi.gov.tw/wSite/lp?ctNode=9767&CtUnit=4131&BaseDSD=7&mp=2 ; and the list of products 
subject to mandatory inspection is available at: https://ci vil.bsmi.gov.tw/bsmi_pqn/pqn/uqi6103f.do . 
160 WTO, ePing SPS & TPT Platform. Viewed  at: https://eping.wto.org/ . 
161 They related to the examination of me dical devices (WTO document G/TBT/N/TPKM/496 , 
30 June 2022); inspection requirements for fire doors in buildings (WTO document G/TBT/N/TPKM/466 , 
23 September  2021); amendments to registration of new and existing chemical substances (WTO document 
G/TBT/N/TPKM/457 , 28 May 2021); and examination of imported medical masks (WTO document 
G/TBT/N/TPKM/422 , 30 June 2020).  
162 WTO document G/TBT/N/TPKM/496 , 30 June 2022.  
163 WTO, ePing SPS & TBT Platform. Viewed  at: https://eping.wto.org/en/Search/TradeConcerns . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Legislation  Entry into 
force  
Statute for the Prevention and Control of Infectious Animal Diseases  13/12/2019  
Prevent the occurrence, contagion, and spread of infectious animal diseases   
Regulations for the Importation of Objects Subject to Animal Quarantinea 29/03/2022  
Establish control measures for products of animal origin   
Regulations Governing Fees for Animal and Plant Quarantine  17/03/2020  
Quarantine fees are 0.1% of the f.o.b. va lue of exports (except for certain animals, 
plants, and products thereof) or the import duty value   
Quarantine fees are 0.05% of the import duty value for wheat, barley, corn, or soybean   
Quarantine fees are waived on articles used for aid or relief   
Act Governing Food Safety and Sanitation  12/06/2019  
Govern the food sanitation, safety, and quality; and protect public health   
Enforcement Rules of the Act Governing Food Safety and Sanita tion 13/07/2017  
Specifies regulations on good hygiene practice for food and on food safety control 
systems   
Regulations for Systematic Inspection of Imported Food  26/09/2019  
Define "systematic inspection"  
List the products subject to systematic inspection   
Regulations of Inspection of Imported Foods and Related Products  10/06/2019  
Define the inspection requirements, procedures, and operation   
Standards for Pesticide Residue Limits in Foods  17/02/2023  
Establish/amend maximum residue limits (MRLs) for pesticidesb 
Actual MRLs are calculated based on the products' weight and form  
The analysis of MRLs includes the pesticide itself and its metabolite   
Standards for Pesticide Residue Limits in Animal Products  01/11/2022  
Establish /amend MRLs for pesticidesc 
Actual MRLs are calculated based on the products' weight and form  
The analysis of MRLs includes the pesticide itself and its metabolite   
Standards for Veterinary Drug Residue Limits in Foods  11/05/2022  
Establish/amend MRLs for veterinary drugsd  
Standards for Specification, Scope, Application and Limitation of Food Additives  02/08/2022  
Establish the name, scope, application, and limitation of food additivese  
a Repealed the Quarantine Requirements for  the Importation of Animals and Animal Products.  
b As at 2022 (September), there were 7,516 MRLs related to 397 pesticides. During 2018 -22 
(September), there were 11 revisions and 1,298 MRLs were amended.  
c As at 2022 (September), there were 379 MRLs related to 99 pesticides. During 2018 -22 
(September), there were 6 revisions and 182 MRLs were amended.  
d As at 2022 (September), there were 1,530 MRLs of 149 veterinary drugs. During 2018 -22 
(September), there w ere 7 revisions and 120 MRLs were amended.  
e As at 2022 (September), restrictions were established for 796 food additives. During 2018 -22 
(September), there were 13 revisions to the list of additives and 68 food additives were amended.  
Source:  Compiled by the WTO Secretariat based on information provided by the authorities and 
online  information.  
3.98.  The main institution responsible for developing and implementing SPS measures also remains 
unchanged since 2018. The Ministry of Health and Welfare (MOHW), through  its implementing 
agency the Food and Drug Administration (FDA), continues to deal with issues related to food safety 
and sanitation and is responsible for, inter alia, ensuring quality and safety of food, medical products, 
and cosmetics; SPS inspection an d certification procedures; and food labelling. The BAPHIQ, under 
the COA, safeguards and ensures the quality and safety of imports of agricultural products; manages 
quarantine services to prevent and control animal and plant diseases and pests; and is 
the WTO enquiry point/notification authority for SPS issues. Other agencies such as the BSMI, under 
the MOEA, and the Customs Administration are also involved in the procedures to set and/or 
implement SPS measures.  
3.99.  Chinese  Taipei sets and amends SPS measures according to international standards, 
guidelines, or recommendations, and scientific evidence.164 If the epidemic situation changes or a 
new epidemic pest of quarantine significance occurs, which poses a risk to the production of crops 
and animal health, th e COA amends the list of products subject to SPS measures and import 
inspection, as required.165 
 
164 Information provided by the authorities.  
165 The list of products subject to import inspection may be viewed at: 
https://fbfh.trade.gov.tw/fh/ap/queryCCCRegFormf.do  or https://portal.sw.nat.gov.tw/APGQ/GC411 . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  3.100.   To ensure the health of animals and humans, the competent authority, in response to the 
existence of infectious animal diseases or a global epidemic, may announce quarantine measures, 
including the prohibition to import, transit, or tranship. In this instance, the competent authority 
coordinates with other agencies to implement the necessary measures to prevent and control the 
sanitary situation.  
3.101.   Importers of goods subject to animal quarantine must submit the following documents, in 
electronic or paper format, to the import/export animal quarantine authority, to apply for quarantine 
inspection: original veterinary certificate; bill of lading or sea waybill/a ir waybill; photocopies of 
import or customs declaration; and any other relevant documents required by the import/export 
animal quarantine authority.166 For animals for which the quarantine requirements have not been 
determined, the importer, prior to impor tation, must apply for the issuance of an individual 
quarantine requirement from the competent authority and for quarantine inspection with the 
import/export animal quarantine authorities.  
3.102.   The import/export animal quarantine authority specifies the ports o f entry, transit, or 
transhipments and areas/places of inspection. The packaging of quarantine products cannot be 
opened, moved, or handled in a way that may spread infectious animal diseases. The quarantine 
authority may also inspect vehicles, vessels, or  aircraft before goods are un/loaded for import 
(export). The results of the inspection are notified to the importers (exporters). If animals are found 
to be sick, infected, or contaminated, and a risk of transmission of infectious animal diseases exists, 
precautionary measures as deemed necessary are taken, including immediate disposal.  
3.103.   Domestic and imported products sold, including online, are subject to quarantine 
requirements and must have a warning label indicating the animal health inspection or quara ntine 
requirements.167 
3.104.   The BAPHIQ updates, when necessary, the list of individual quarantine requirements of 
prohibited plants and plant products by origin.168 Requirements are based on international standards, 
guidelines, or recommendations, and scientific evidence, and are changed accordingly.169 Moreover, 
for plants or plant products prohibited by origin, the prohibition also applies if they are unloaded and 
transhipped through a territory included in the list. Imports of regulated plants and plant products  
require a phytosanitary certificate issued by the plant quarantine authority at origin.170 
3.105.   To monitor and prevent the entrance and dissemination of plant diseases and pests, 
the BAPHIQ may publicly notify the types and scope of specific plant diseases and pests, and 
establish a monitoring or surveying programme accordingly; and, if deemed necessary, take 
emergency control measures, such as restricting or prohibiting the cultivation of susceptible plants 
or destroy those already cultivated; order the owner t o kill the relevant pests; and/or establish 
quarantine inspection stations. In this context, plant protection/quarantine officers are empowered 
to enter farms, warehouses, vessels, vehicles, or aircraft to inspect plants and plant products and 
their packag ing.171 
3.106.   The FDA, the competent authority governing food safety and sanitation in Chinese  Taipei, 
sets food sanitary requirements based on the principle of risk assessment, as well as on scientific 
evidence and existing international standards. The FDA has a  risk assessment and advisory system, 
as well as a food sanitation and safety monitoring system. If during monitoring an incidence is found 
that may be harmful to food sanitation and safety, an inspection is conducted, an alert is issued, 
and other necessa ry measures are implemented.  
3.107.   Chinese  Taipei's regulations regarding food safety are vast and detailed. The Act Governing 
Food Safety and Sanitation is a general piece of legislation, and specific regulations have been 
enacted to implement it.172 In many ins tances, these are product specific. In addition to setting 
 
166 Regulations for the Importation of Objects Subject to Animal Quarantine, 29  March  2022.  
167 Statute for the Prevention and Control of Infectious Animal Diseases, Article  38-3. 
168 For the latest list of individual quarant ine requirements, refer to: www.baqhiq.gov.tw . 
169 Information provided by the authorities.  
170 Plant Protection and Quarantine Act, 20  June 2018, Article  16. 
171 Plant Protection and Quar antine Act, 20  June 2018, Articles  5 and 11.  
172 For full details of this body for legislation, see: 
https://www.fda.gov.tw/eng/law.aspx?cid=16&cr=650614838 . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  food-related sanitary requirements, the FDA sets standards for pesticides173, veterinary drugs174, 
food additives residue limits175, and labelling of food products. Regulations seem to apply both to 
locally produced foods and to imports and exports. For instance, in 2022, the FDA indicated that 
food exporters had to comply with local regulations as well as at destination.176 
3.108.   Inspection requirements for imported food products are amended as necessary, to ensure 
compliance with the sanitation and safety requirements. In this context, the FDA and the Customs 
Administration have set up a customs notification platform for food imports that do not require 
import inspection, which is updated on a q uarterly basis, based on the FDA's inspection results. 
Other food imports may be required to undergo systematic inspection. In general, food products 
require a three -tier sanitary control: at origin, upon arrival, and post -market surveillance.177 Some 
food products, such as meat, fish, eggs, and dairy products, require stricter sanitary controls at 
origin (for instance, an audit of the food safety management conditions of the production chain). In 
addition, during the period under review, an onsite inspectio n fee was introduced.178 
3.109.   Upon arrival, imported products may be subject to different types of inspection: 
batch -by-batch inspection, reinforced or regular randomly selected batch inspection, batch -by-batch 
verification, or oversight inspection.179 The type o f inspection is determined by factors such as 
publicly available information about product safety, scientific evidence, and nonconforming records. 
Nevertheless, due to the nature or inspection time -frame, food importers may apply for prior release 
of the i mported goods and store them at a specific location.180 In addition, p referential inspection 
measures (i.e.  the minimum inspection rate of regular randomly selected batch inspection) apply to 
importers with "Excellent Industry" status.  
3.110.   During 2018 -23 (June) , Chinese  Taipei made 161  regular notifications to the 
WTO SPS Committee. Most of them (101) were related to food safety or to protect human health, 
32 to protect plant health, and 26 to protect animal health. Two of the regular notifications were 
temporar y measures taken as a result of the COVID -19 pandemic; they related to alternative 
methods to submit food safety and sanitation certificates, and original veterinary and phytosanitary 
certificates. Five notifications indicated that emergency measures were taken, four of which were 
taken for plant protection and one for animal protection. Fifty -six of the measures notified by 
Chinese  Taipei were not based on international standards. Four specific trade concerns were raised 
in relation to the measures adopted  by Chinese  Taipei regarding new procedures for the recognition 
of infectious animal disease -free status of a trading partner; import restrictions on poultry and beef; 
phytosanitary risk assessment procedure on imports of fresh vegetables and fruits; and g eneral 
import restrictions due to bovine spongiform encephalitis (BSE). This last concern has been raised 
since 2004 and was last raised in  2020.181 
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.111.   Chinese  Taipei's competition regime did not undergo  major changes during the review 
period, having been rationalized in 2015 and in 2017.182 The main antitrust legislation, the Fair Trade 
Act, regulates both anti -competitive conduct and unfair trade practices. The Fair Trade 
Commission  (FTC) remains the com petent authority for the formulation and implementation of 
 
173 To consult the latest list of MRLs for food, see: 
https://consumer.fda.gov.tw//Law/Detail.aspx?nodeID=518&lang=1&lawid=127 ; for the latest list of MRLs on 
animal products, see: https://consumer.fda.gov.tw//Law/Detail.aspx?nodeID=518&lang=1&lawid=132 . 
174 To cons ult the latest list of MRLs for veterinary drugs for food, see: 
https://www.fda.gov.tw/eng/lawContent.aspx?cid=16&id=306 . 
175 To consult the latest lis t of MRLs for food additives, see: 
https://www.fda.gov.tw/eng/lawContent.aspx?cid=16&id=308 . 
176 Viewed  at: https://www.fda.gov.tw/eng/newsContent.aspx?id=28359 . 
177 Viewed  at: https://www.fda.gov.tw/eng/newsContent.aspx?id=28344 . 
178 Regulations for Systematic Inspection of Imported Food, 26  September  2019, Article  6, paras.  2-3; 
and information provided by the authorities.  
179 Regulations for Syst ematic Inspection of Imported Food, 26  September  2019, Article  8. 
180 Act Governing Food Safety and Sanitation of 12  June 2019, Article  33. 
181 Viewed  at: https://eping.wto.org/en/Search/TradeConcerns . 
182 WTO document WT/TPR/S/377/Rev.1 , 6 March  2019.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  competition policy.183 The FTC and Chinese  Taipei's specialized regulatory agencies have 
complementary competence in regulated sectors.184 
3.112.   The FTC's responsibilities include investigating and penaliz ing violations of the Fair Trade 
Act, as well as the ex ante control of economic concentrations. Investigations may be initiated 
ex officio  or on the basis of a complaint from any person.185 Independently of FTC administrative 
proceedings, which are not to be suspended by virtue of filing a lawsuit, injured parties may seek 
cessation of anti -competitive practices (and compensation for damages) in court.186 Likewise, 
independent and parallel ap peals to FTC decisions may be made before the competition authority 
itself and a court; however, the judicial system has the final say. During the review period, the  FTC 
made several procedural improvements with a view to increasing its transparency.  
3.113.   Chine se Taipei's competition legislation does not apply to export -oriented anti -competitive 
practices (including cartels) that only have effects on overseas markets. The provision of public aid 
or any preferential tax treatment by public authorities also remain s outside its scope. During the 
review period, the FTC issued guidelines on consultations prior to the filing of a merger notification 
and revised its guidelines on merger notification, franchising practices, civil air transport alliances, 
and false or mis leading advertising. Amendments were also made to the regulations governing 
rewards for the reporting of illegal concerted actions and the notification of drug patent linkage 
agreements.187 In December  2022, the FTC released a "White Paper on Competition Po licy in the 
Digital Economy", setting out certain guiding principles for enforcement and suggestions for possible 
regulatory amendments.188 
3.114.   In general, Chinese  Taipei's competition regime follows the rule -of-reason (i.e.  effects -based 
assessment) approach i n the consideration of economic concentrations and anti -competitive 
practices. Concerted action is prohibited as a rule, except in certain circumstances where prior 
approval must be sought from the FTC.189 Compulsory licensing of IPRs may be used as a remed y 
for the conditional clearance of mergers or as a penalty for anti -competitive conduct. The authorities 
indicated that none of the administrative sanctions and merger remedies imposed by the FTC 
during  2018-22 involved the compulsory licensing of IPRs. 
3.115.   Economic concentrations require prior approval from the FTC whenever (i)  the resulting 
enterprise's market share exceeds one  third; (ii)  one of the merging parties has a pre -merger 
market share of at least 25%; or (iii)  the merging parties' turnover for the previous fiscal year 
exceeded certain thresholds.190 The FTC does not have authority to review non -notifiable mergers. 
During 2018 -22, the FTC blocked two proposed mergers and gave conditional approval in five  cases 
(Table  3.12). Over the same period, enfor cement action was taken in several markets, including 
harbour stevedoring, ready -mixed concrete, security guard services, hard disk components, air 
transportation services, pharmaceuticals, food delivery services, and household air  conditioners.  
 
183 The FTC also enforces the Multi -Level Marketing Supervision Act aimed at protecting the rights and 
interests of participants in multi -level marketing progr ammes. Enterprises wishing to engage in multi -level 
marketing must apply for registration with the FTC prior to commencing operations.  
184 The FTC has issued specific guidelines for certain markets, including telecommunications, wholesale 
trade, financial in termediation, textbook publishing, electronic marketplaces, and real estate brokerage.  
185 In accordance with its remit, the FTC carries out an industrial market structure survey on an annual 
basis. The survey's findings are taken into account in the formula tion of pro -competitive policy proposals.  
186 FTC rulings do not bind the courts that hear cases involving antitrust matters. In situations where a 
parallel investigation by the FTC is ongoing, parties may not apply for an order to stay the court proceedings . 
The courts have the discretion to treble the level of damages granted if the plaintiff has established that the 
defendant had committed the violation wilfully.  
187 As from January  2018, agreements involving drugs with a patent linkage of must be notified to the 
Ministry of Health and Welfare, which will refer them to the FTC in case of anti -competitive concerns 
(Pharmaceutical Affairs Act, Article  48-19). 
188 Viewed  at: https://www.ftc.gov.tw/internet/english/doc/docDetail.aspx?uid=1942&docid=17352 . 
189 Fair Trade Act, Article  15. 
190 The turnove r thresholds that would trigger a pre -merger notification were last amended in 
December  2016. Viewed  at: https://www.ftc.gov.tw/upload/530fef1f -6053-4268-8219-4db5291c6cb1 .pdf. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  3.12 FTC enforcement activity, 2018 -22 
Description  2018  2019  2020  2021  2022  
Cases opened  2,467  2,046  2,394  2,522  2,384  
 Merger notification filing  69 64 65 62 74 
 Complaint  1,802  1,507  1,855  2,075  1,856  
 Concerted action filing  3 4 9 1 6 
 Leniency application  0 2 1 1 4 
 Request for opinion  273 197 190 156 145 
 Ex officio  investigation  320 274 275 228 303 
Cases concluded  2,454  2,002  2,375  2,606  2,358  
 Mergera 67 60 62 69 69 
 Cleared unconditionally  26 26 35 32 22 
 Cleared subject to remedies  1 0 2 1 1 
 Blocked  1 1 0 0 0 
 Abuse of dominance  0 0 0 1 0 
 Restrictive practice  9 2 3 10 7 
 Unfair trade practice  62 26 32 55 77 
Total FTC fines (TWD  million)  43.7 76.3 626.73  1,547.21  78.46  
Appeals  15 20 4 25 15 
 Original decisions reversed/amended  0 5 14 0 1 
a In addition to cleared and blocked mergers, the merger review statistics also include outcomes such 
as "jurisdiction not exercised", "non -notifiable nature", and "incomplete documentation".  
Note:  Statistics on the enforcement of the Multi -Level Marketing Supervision Act are excluded.  
Source:  FTC. 
3.116.   The FTC and competent courts may order an offending enterprise to stop or rectify its 
unlawful conduct and pay a fine. Failure to comply with the FTC's sanctions (except those related to 
merger control) will result in criminal liability and the case will be referred to a public prosecutor. 
The statutory limits on pecuniary and criminal sanctions have not been updated  since 
Chinese  Taipei's previous Review.191 Under the FTC's leniency programme aimed at detecting 
concerted action, the first whistle -blower may receive full or partial immunity, depending on the 
authorities' prior knowledge of the anti -competitive conduct.  Up to four subsequent applicants may 
be granted reductions (up to 50%) of their administrative fines.  
3.117.   Chinese  Taipei makes continuous efforts to strengthen and formalize its cooperation 
arrangements on competition policy. During 2018 -22, the FTC concluded  technical cooperation 
instruments with the competition authorities of Eswatini and Indonesia.192 In general, these 
cooperation instruments contain provisions on exchange of best practices and non -confidential 
information.193 Chinese  Taipei is also an active  participant in global and regional fora on competition 
policy, including the International Competition Network and the APEC Competition Policy and 
Law Group.  
3.3.4.2   Price controls  
3.118.   Chinese  Taipei maintains statutory price controls on natural gas (Section  4.2.2.3) . In 
addition, the prices of certain goods and services are regulated in specific circumstances, whereas 
the overall relevant market for the good or service is not subject to price regulation. For instance, 
the feed -in tariffs for renewable energy sold to the public utility enterprise (TPC) are set annually 
through broad consultations convened by the MOEA. The MOEA also regulates the retail prices of 
electricity supplied by TPC to end -users.  
3.119.   Since end -November  2020, a telecommunications regulator  (NCC) regu lates the prices of 
telecommunications enterprises deemed to have significant power in a service market.194 Under 
Chinese  Taipei's universal health insurance system, the insurer (NHIA) carries out price surveys and 
 
191 WTO document WT/TPR/S/377/Rev.1 , 6 March  2019.  
192 Viewed  at: https://www.ftc.gov.tw/internet/english/doc/docList.aspx?uid=1075 . 
193 The authoriti es indicate that the FTC has not signed any cooperation instruments that would allow it 
to exchange confidential information with other enforcers without prior consent from the investigated parties, 
or to offer investigative assistance.  
194 Previously, the N CC applied price controls on telecommunications enterprises that own and operate 
network facilities.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  price adjustments for reimbursed drugs on an annual basis.195 Seasonal discounts on airfares for 
local flights remain capped at 50%.196 
3.120.   During the review period, Chinese  Taipei maintained price support mechanisms for 
producers of certain agricultural products (rice, sugar, and tobacco leaves). Admin istered prices for 
guaranteed purchases of tobacco leaves were abolished in 2018.197 
3.121.   The Price Stabilization Committee remains the main body in charge of coordinating the 
supply and demand of goods and services with a view to stabilizing their prices.198 A Commodity 
Price Supervisory Board is responsible for monitoring the price fluctuations of important commodities 
and raw materials and carrying out tasks assigned by the Price Stabilization Committee.199 Line 
ministries and agencies may also independently ta ke actions aimed at maintaining price stability 
within their respective remits, such as overseeing the price -setting decisions of subordinate 
state-owned enterprises.  
3.3.5   State trading, state -owned enterprises, and privatization  
3.122.   In 2022, as at the time of the last Review, Chinese  Taipei notified to the WTO 
three  state trading enterprises200: the Agriculture and Food Agency (AFA); the BOT, which has the 
exclusive right to allocate the WTO TRQs; and the Central Engraving and Printing Plant (CEPP), which 
has the ex clusive rights to print currency and import banknote paper.201 
3.123.   The AFA regulates the production and commercialization, including export and import, of 
different types of rice to ensure food security, farmers' income, and market stability.202 The AFA 
purchase s a portion of paddy rice, at a guaranteed price, for food security stockpiling; the remaining 
rice is sold freely in the local market. The AFA imports rice to ensure the smooth operation of the 
local market and the price stabilization system. The AFA reta ins the exclusive right to import 65% 
of the WTO TRQs of rice; registered importers can participate in the allocation of rice quotas 
for private imports that are allocated through tenders held by the MOF. In 2021, the AFA 
imported  55.5% of total rice impor ts.203 
3.124.   The number and sectors of the economy in which state -owned enterprises operate did not 
undergo major changes during the period of review (Table  3.13). Since 2018, it appears that only 
one institution has been privatized.204 The authorities indicate th at there are no further privatization 
or disinvestment plans. Most of the state -owned enterprises operate in the services and utilities 
sector. Among these enterprises, only those operating in postal services and the electricity market 
(transmission and di stribution) retain exclusive rights. Although competition is allowed in other 
markets, the CPC  Corporation in charge of the fuel and gas supply has a substantial market share 
regarding oil products and, in the case of natural gas, it handles almost 100% of  the market. Except 
for one enterprise (postal services) that gets preferential tax treatment, the rest do not receive 
incentives, and none are required to source goods or services locally.  
 
195 Health Insurance Act, Article  46. Viewed  at: 
https://law.moj.gov.tw/ENG/LawC lass/LawAll.aspx?pcode=L0060001 . 
196 Regulations Governing Tariffs for Passengers and Cargo Air Transportation. Viewed  at: 
https://law.moj.gov.tw /ENG/LawClass/LawAll.aspx?pcode=K0090055 . 
197 WTO document G/AG/N/TPKM/207 , 12 January  2022.  
198 The Committee comprises representatives of various Ministries including  Economic Affairs, Finance, 
Transportation and Co mmunications,  and Health and Welfare, as well as of the Central Bank (CBC), the FTC, 
the COA, the Directorate General of Budget, Accounting and Statistics (DGBAS), the Public Construction 
Commission, the Development Council (NDC), and the executive branch's Consumer Protec tion Department.  
199 The Commodity Price Supervisory Board is established by the Ministry of Economic Affairs, with the 
Deputy Minister serving as its convener.  
200 Pursuant to Article  XVII:4(A) of the GATT  1994 and Paragraph 1 of the understanding on the 
interpretation of Article  XVII. 
201 WTO documents G/STR/N/18/TPKM/Add.1 , G/STR/N/19/TPKM , 10 March  2022; and 
G/STR/N/19/TPKM/Add.1 , 20 October  2022.  
202 The types of rice regulated by AFA are rice in the husk (HS  1006.10.00.00); husked (brown) rice 
(HS 1006.20.00.00); glutinous rice (HS  1006.30.00.10); other semi -milled or wholly milled rice, whether or 
not polished or glazed (HS  1006.30.00.90); and broken rice (HS  1006.40.00.00).  
203 WTO calculation based on WTO documen t G/STR/N/19/TPK M/Add.1 , 20 October  2022.  
204 A waste management company was privatized in 2018.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  3.13 Indicative list of firms with public participation, 2022  Company 
name  
Public sector 
ownership  
Sector  
Market share  
2022  
Any 
monopoly or 
exclusive 
rights  
Preferential 
duty and/or 
tax 
treatment  
Local sourcing 
requirements  
State -owned enterprises  
Chunghwa Post 
Corporation, Ltd 
(CPC)  100%  Postal and Courier 
Services  8% Exclusive 
rights for 
postal services  Preferential 
tax 
treatmenta No 
Financial Services 
(excluding 
insurance services)  .. No No 
Insurance Services  3.61% No No 
"Taiwan 
International 
Ports 
Corporation, 
Ltd" (TIPC)  100%  Transportation and 
Storage  63% No No No 
Taoyuan 
International 
Airport 
Corporation, Ltd 
(TIAC)  100%  Airport Operation 
and Management  93% No No No 
"Taiwan 
Financial Holding 
Corporation, 
Ltd" (TFHC)  100%  Financial Services  9%b No No No 
"Land Bank of 
Taiwan 
Corporation, 
Ltd" (LBTC)  100%  Financial Services  5%b No No No 
Export -Import 
Bank 
(Eximbank)  100%  Financial Services  n.a. No No No 
CPC Corporation 
(CPC)  100%  Fuel and Gas Supply  Oil products: 77.5%  
Gasoline: 79.6%  
Diesel: 77.2%  
Fuel oil: 96.4%  
Aviation fuel: 60.3%  
Natural gas: almost 100%  No No No 
"Taiwan Water 
Corporation" 
(TWC)  100%  Water Supply  78.33%  No No No 
"Taiwan Power 
Company"  
("Taipower") 
(TPC)  94.04%  Electricity Supply  75% Exclusive right 
for electricity 
transmission 
and 
distribution  No No 
"Taiwan Tobacco 
and Liquor 
Corporation"  100%  Manufacturing  ..c No No No 
"Taiwan Sugar 
Corporation" 
(TSC)  96.51%  Manufacturing  
Wholesale and 
Retail Trade  Sugar: 55.85%  No No No 
Public participation  
Chunghwa 
Telecom 
Corporation, Ltd 
(CTC)  41% Telecommunications 
Services  Local Fixed 
Communications Services: 
91.7% market share of 
local telephone 
subscribers, 82.1% market 
share of domestic 
long-distance call minutes, 
and 62.6% market share of 
broadband access 
subscribers.  
Internet and Other 
Value -added Services: 
57.8%  
International Fixed 
Communications Services: 
47.1%  
Mobile Communications 
Services: 36.6%  
International leased line: 
75.6%  No No No WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 64 - 
 
  
Company 
name  
Public sector 
ownership  
Sector  
Market share  
2022  
Any 
monopoly or 
exclusive 
rights  
Preferential 
duty and/or 
tax 
treatment  
Local sourcing 
requirements  
Mega Financial 
Holding 
Corporation, Ltd 
(MFHC)  8.4%  Financial Services  5.5%b No No No 
First Financial 
Holding 
Corporation, Ltd 
(FFHC)  11.49%  Financial Services  5.6%b No No No 
"Taiwan 
Cooperative 
Financial Holding 
Corporation, 
Ltd" (TCFH)  26.06%  Financial Services  6.1%b No No No 
Hua Nan 
Financial 
Holdings 
Corporation, Ltd 
(HNFHC)  1.7%  Financial Services  4.9%b No No No 
Chang Hwa 
Commercial 
Bank, Ltd 
(CHCB)  12.19%  Financial Services  3.9%b No No No 
"Taiwan 
Business Bank 
Corporation, 
Ltd" (TBBC)  2.08%  Financial Services  3.0%b No No No 
Trade -Van 
Information 
Services 
Corporation, Ltd 
(TVISC)  36.11%  Information 
Services  ..c No No No 
Central 
Reinsurance 
Corporation 
(CRC)  9.82%  Financial Services  n.a. No No No 
"China Steel 
Corporation" 
(CSC)  20% Manufacturing  Steel plates: 72%  
Wire rods: 56%  
Hot-rolled steel 
Coils/sheets: 24%  
Cold-rolled steel 
Coils/sheets: 42% 
Electrical steel sheets: 
77% 
Hot-dip galvanized Steel 
sheets: 28%  
electro -galvanized steel 
sheets: 75%  No No No 
Taiyen Biotech 
Corporation, Ltd 
(TAIYEN)  38.88%  Manufacturing  Salt: 80% No No No 
Tang Eng Iron 
Works 
Corporation, Ltd 
(TE) 11.56%  Manufacturing  10.3%  No No No 
"CSBC 
Corporation, 
Taiwan" (CSBC)  11.25% Manufacturing  .. No No No WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 65 - 
 
  
Company 
name  
Public sector 
ownership  
Sector  
Market share  
2022  
Any 
monopoly or 
exclusive 
rights  
Preferential 
duty and/or 
tax 
treatment  
Local sourcing 
requirements  
Aerospace 
Industrial 
Development 
Corporation 
(AIDC)  35.17%  Manufacturing  .. No No No 
Cowin 
Environmental 
Resources Ltd 
(COWIN)  42.00%  Waste Collection, 
Treatment and 
Disposal Activities; 
Materials Recovery  Incineration: 4.8%  No No No 
.. Not available.  
n.a. Not applicable.  
a Tax exemption is granted for mail delivery services, postal property, bills, receipts, and other 
documents used to provide postal services (Postal Act, Art icle 9). 
b The market share was calculated by the asset scale.  
c The market share figure is not available because the company has diversified its product lines 
beyond its initial business. Therefore, representation of market share data is not possible.  
Source:  Information provided by the authorities.  
3.3.6   Government procurement  
3.125.   During the review period, Chinese  Taipei engaged in government procurement activities 
worth on average more than TWD  1.7 trillion annually, which represents around 8.6% of GD P, an 
increase compared to 6.0% for the previous review period (Table  3.14). In value terms, construction 
accounts for 36.93% of total government procurement, followed by goods and services, accounting 
for 41.5% and 21.57%, respectively.  
Table  3.14 Selected procurement indicators, 2018 -22 
 2018  2019  2020  2021  2022  
Total value (TWD  billion)a 1,608.4  1,794.5  1,662.2  1,742.3  1,905.8  
Contribution to GDP (%)  8.8 9.5 8.4 8.0 8.4 
 Local suppliers (%)  77.8 61.8 84.6 73.4 81.6 
Overseas suppliers (%)  22.2 38.2 15.4 26.6 18.4 
 GPA Parties (%)  20.2 35.8 14.2 23.1 17.0 
GPA covered procurement  470.4  542.5  582.3  574.5  608.7  
 Contribution to GDP (%)  2.6 2.9 2.9 2.6 2.7 
Total number of contracts 
awarded  200,973  199,368  205,123  200,093  205,021  
Local suppliers (%)  89.5 89.1 89.0 88.9 89.2 
Overseas suppliers (%)  10.5 10.9 11.0 11.1 10.8 
 GPA Parties (%)  8.7 8.8 8.9 8.8 8.7 
GPA covered procurement 
(TWD  billion ) 3,197  3,659  3,900  4,031  4,088  
a Total value includes GPA and non -GPA procurement and excludes small procurement (value of less 
than TWD  100,000), for which there are no statistics available.  
Source:  Information provided by the authorities.  
3.126.   Chinese  Taipei became a Party to the WTO  Agreement on Government Procurement (GPA) 
in 2009 and to the revised GPA in 2014. Its commitments under the GPA follow the principle of 
reciprocity. Procurement of construction and goods accounted for 42% and 44%, respectively, of 
the value of GPA covered procurement i n 2021.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 66 - 
 
  3.3.6.1   Legal and institutional framework  
3.127.   Government procurement continues to be regulated mainly by the Government Procurement 
Act (GP Act) and its Enforcement Rules. The legal framework also includes several regulations that 
clarify and develop certain p rovisions of the GP Act.205 Chinese  Taipei has not notified the Committee 
on Government Procurement (CGP) of any changes to its laws and regulations relevant to the  GPA 
and in the administration of such laws and regulations (GPA 2012, Article  XXII:5 (see al so GPA  1994, 
Article  XXIV:5(b))).  
3.128.   The GP Act aims at establishing fair and open procurement procedures, promoting the 
efficiency and effectiveness of government procurement operations, and ensuring the quality of 
procurement. The Act applies to procurement  conducted by any public  agency, public school, or 
state-owned enterprise. In conducting procurement activities, entities must protect public interests 
and observe fairness and reasonableness and must not grant differential treatment to suppliers.206 
The Ac t was substantially amended in  2019207 to improve efficiency in the procurement process, 
promote industry competitiveness, and maintain market order.208 For example, the amended Act, 
inter alia, (i) abolishes the requirement to specify the reasons for choosi ng the most advantageous 
tender instead of the bid with the lowest price, and establishes that the most advantageous tender 
must be selected for the procurement of certain services above the threshold for publication 
(TWD  1.5 million)209; and (ii)  stipulate s sanctions for bidders offering improper benefits for a 
contract to be awarded to them, which may include a ban from participating in any government 
procurement procedures for up to three  years.210 
3.129.   There were no major changes to the institutional framework  for government procurement 
during the review period. The government procurement system continues to be decentralized and 
governed by the Public Construction Commission (PCC), which is responsible, inter alia, for 
(i) developing and amending laws, regulati ons, and policies on government procurement that 
reaches the threshold for publication; (ii)  reviewing and approving standard procurement contracts; 
(iii) coordinating with and supervising all entities regarding procurement affairs; (iv)  handling 
complaint s against central procuring entities; and (v)  collecting and publishing statistics.211 
Procurement at the local, municipal, or county (city) levels follows the procedures and guidelines 
developed by the PCC, with some flexibilities, particularly where procurement does not reach the 
threshold for publication (TWD  1.5 million).  
3.3.6.2   Procurement me thods  
3.130.   Since the previous Review, there have been no changes in the procedures used. The 
government procurement system contemplates several thresholds, some of which were modified 
during the period, not necessarily linked to specific procedures, and three p rocurement methods 
(Table  3.15). The new thresholds for publication and small procurement were announced at the end 
of 2022 and came into effect on 1  January  2023. These were changed due to inflationary pressure, 
through administrative regulation enacted b y the responsible entity.  
 
205 Such as provisions dealing with procurement on a turnkey basis, joint tendering, or assistance for 
SMEs in government procurement.  
206 GP Act , Article  6. 
207 Decree of 22  May 2019 amending Articles  4, 15, 17, 22, 25, 30, 31, 50, 52, 59, 63, 76, 85, 93, 94, 
95, 101, and 103 and adding Articles  11-1, 26 -1, and 70 -1. 
208 Baker McKenzie (2019), Client Alert . Viewed  at: 
https://insightplus.bakermckenzie.com/bm/attachment_dw.action?attkey=FRbANEucS95NMLRN47z%2BeeOgEF
Ct8EGQJsWJiCH2WAWBW0hl3oTMYt61yXk6aPsN&nav=FRbANEucS95NMLRN47z%2BeeOgEFCt8EGQbuwypnpZjc
4%3D&attdocparam=pB7H esg%2FZ312Bk8OIuOIH1c%2BY4beLEAeTFazlVrff%2Bo%3D&fromC ontentView=1 . 
209 These services include professional, technical, information, social welfare, and/or cultural or creative 
services (GP Act, Article  52). 
210 GP Act, Articles  59 and 101.  
211 GP Act, Article  10. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 67 - 
 
  Table  3.15 Thresholds and procurement methods  
Threshold  Type of contract  Amount of contract  Method  Additional 
requirements  
Small 
procurement  Construction works  Up to TWD 150,000  Single tendering 
(price negotiation)  n.a. 
Goods  
Services  
Procurement 
not reaching 
the threshold 
for publication, 
but no less 
than one  tenth 
of that 
threshold  Construction works  Between TWD  150,000 
and TWD  1.5 million  Open tenderinga 
Limited or single 
tendering  n.a. 
Goods  
Services  
Publication  Construction works  TWD 1.5 million and 
above  Open tenderingb 
Selective tendering  
Limited or single 
tendering  n.a. 
Goods  
Services  
Supervision  Construction works  TWD 50 million and above  Open tenderingb 
Selective tendering  
Limited or single 
tendering  Supervision is 
required by the 
superior entity  Goods  TWD 50 million and above  
Services  TWD 10 million and above  
Large 
procurement  Construction works  TWD 200 million and 
above  Open tenderingb 
Selective tendering  
Limited or single 
tendering  Supervision is 
required by the 
superior entity and 
Specific qualifications 
may be required  Goods  TWD 100 million and 
above  
Services  TWD 20 million and above  
n.a. Not applicable.  
a Offers must be obtained openly from at least three suppliers.  
b At least three tenders must be obtained at the first tendering.  
Source:  GP Act.  
3.131.   For procurement reaching the threshold for publication (i.e.  of TWD  1.5 million and above), 
the GP  Act establishes that, in principle, open tendering must be used. Under these procedures, a 
public notice is issued inviting all interested suppliers to bid. In certain circumstances, however, 
selectiv e or limited tendering may also be used (e.g.  where there is a need for a prequalification 
evaluation). In such cases, a public notice is issued inviting all interested suppliers to provide their 
qualification documents, and once the evaluation is complete , qualified suppliers are invited to bid.212 
In certain cases, procuring entities are exempt from issuing a public notice and may use limited 
tendering procedures.213 For procurement reaching the threshold for publication, technical 
specifications related to  performance and functional requirements are specified and, where possible, 
based on international standards. According to the GP  Act, competition must not be restricted unduly 
by establishing requirements or qualifications above the level necessary for im plementing the 
contract. For open and selective tendering procedures, the notice of invitation to tender/notice of 
qualification evaluation must be published on the e -Procurement System (GEPS). The GP  Act 
specifically prohibits fragmenting procurements to bypass the provisions applicable to the threshold 
for publication.214 For large procurements, the GP  Act stipulates that specific qualifications may be 
prescribed, in order to ensure that suppliers have substantial experience, a good performance 
record, and  capacity (i.e.  financial resources, workforce, and equipment). This type of procurement 
is subject to the same procedures as procurement reaching the threshold for publication.  
3.132.   Such procedures also apply to procurement subject to supervision. However, the  procuring 
entity must submit relevant documents to its superior entity (i.e.  the entity at a level immediately 
 
212 Prequalification may be used where (i)  there is a recurring dema nd; (ii)  the review of tenders is 
time-consuming; (iii)  the cost of preparing a tender is high; (iv)  the qualification requirements are complex; or 
(v) procurement concerns research and development (R&D).  
213 These cases include where (i)  an open or selectiv e tendering has been declared void, or the tenders 
submitted do not conform to established requirements; (ii)  the subject of the procurement can only be supplied 
by one supplier, and there is no other alternative or substitute (e.g.  exclusive right, sole s ource product or 
supply, or a work of art); (iii)  there is extreme urgency; (iv)  additional deliveries are needed and a change of 
supplier would not ensure interchangeability and compatibility with already existing supplies or services; and 
(v) the subject  of the procurement is a commodity.  
214 GP Act, Article  14. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 68 - 
 
  above) and such entity must monitor all procurement proceedings, including tender opening, price 
competition or price negotiation, and contract awarding.  
3.133.   Where procurement does not reach the threshold for publication but exceeds one tenth of 
such threshold, entities must use open tendering procedures and receive at least three offers in 
writing.215 If the procuring entity receives fewer than three offers, the procedure is considered void, 
and the entity may use the limited tendering procedure. Entities may also use selective or limited 
tendering procedures subject to the same conditions as specified for procurement reaching the 
threshold for publica tion.216 In principle, procurements of a value not reaching the threshold for 
publication are reserved for SMEs, unless the SME is not capable of carrying out the contract.217 
3.134.   In regard to small procurement, procuring entities may directly negotiate with the supplier 
and are not required to issue a public notice and obtain offers from three suppliers.218 Chinese  Taipei 
does not collect annual data on small procurement.  
3.135.   The GP  Act also contemplates special procurement, which is defined in terms of the 
characteristics of the object of procurement and, therefore, is not subject to a threshold. 
Construction works above a certain scale, and goods or services that require special professional or 
technical skills or equipment, fall within the category of spec ial procurement. The procedures used 
for procurement that reaches the threshold for publication are also used for special procurement. As 
is the case of large procurement, given the characteristics of this type of acquisition, procuring 
entities may prescr ibe specific qualifications for special procurement bidders.  
3.136.   The provisions of the GP  Act on invitation to tender and award of contracts may not apply 
to certain procedures used for procurement (i)  in response to a disaster, an epidemic, or an imminent 
danger; (ii)  between  public entities; and (iii)  from an international organization, an  overseas 
government, or their authorized institutions under an agreement that includes specific provisions on 
government procurement.219 Procurement conducted in connection with an R&D project financed 
with public funds is also excluded from the GP  Act.220 
3.137.   During the review period, most government procurement in value terms was conducted 
under open tendering procedures (Table  3.16).  
Table  3.16 Procurement by type of procedure, 2018 -22 
 Item  Open tendering  
(%) Selective tendering 
(%) Limited tendering  
(%) 
2018 Share of total value  79.3 5.2 15.5 
Construction  96.2 0.0 3.8 
Goods  59.5 12.6 27.9 
Services  82.3 2.0 15.7 
2019 Share of total value  63.0 8.6 28.4 
Construction  95.9 0.1 4.0 
Goods  33.7 16.8 49.5 
Services  84.3 1.4 14.3 
2020 Share of total value  76.5 10.5 13.0 
Construction  94.9 0.0 5.1 
Goods  52.1 27.6 20.3 
Services  84.1 1.2 14.7 
2021 Share of total value  73.5 11.2 15.3 
Construction  87.1 8.3 4.6 
Goods  53.0 21.5 25.5 
Services  80.5 1.6 17.9 
 
215 GP Act, Article  49. 
216 GP Act, Articles  23 and 49.  
217 Regulations Governing Assistance for Small and Medium Enterprises Participating in Government 
Procurement, last amended on 24 April 2002, Article  3. 
218 Article  5 of the relevant tendering regulations related to small procurement, which were adopted on 
26 April 1999 and last amended on 8  March  2018.  
219 Regulations for Invitation to Tender and Award of Contract in Special Procure ment, last amended on 
27 August  2009.  
220 Fundamental Science and Technology Act, last amended on 14  June 2017, Article  6. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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   Item  Open tendering  
(%) Selective tendering 
(%) Limited tendering  
(%) 
2022 Share of total value  78.1 5.8 16.1 
Construction  94.1 1.0 4.9 
Goods  52.8 17.7 29.5 
Services  80.5 0.1 19.4 
Note:  Includes procurement not covered by the WTO  GPA and with a value of more than TWD  100,000  and 
does not include procurement for resale or use in the production or supply of goods or services for 
sale. 
Source:  Information provided by the authorities.  
3.138.   In order to ensure efficiency an d quality, an entity may conduct procurement on a turnkey 
basis, consolidating into one single contract for a certain period the procurement of design and work, 
supply, installation, and maintenance.221 A procuring entity may also allow joint tendering by a  
limited number of suppliers, depending on the characteristics of a procurement, provided it increases 
competition among suppliers or does not restrain competition.222 The procedures applicable to these 
types of procurement are the same as those for procure ment reaching the threshold for publication.  
3.139.   An entity may also sign an inter -entity supply contract with a provider for the supply of 
goods or services that are commonly required by two or more entities. These contracts have a 
maximum duration of two year s, and their value cannot reach the threshold for supervision, unless 
approved by the superior entity.223 In 2021, inter -entity supply contracts as a share of total 
procurement amounted to about 2.5%.  
3.140.   The participation of overseas suppliers in government pr ocurement is regulated by the 
requirements set forth in the arrangements to which Chinese  Taipei is a party (such as 
the WTO GPA)224 and certain other regulations under which Chinese  Taipei may impose restrictions 
or bans on suppliers, products, or services  from a trading partner that does not allow or restricts 
market access to suppliers, products, or services from Chinese  Taipei.  
3.3.6.3   Preferences  
3.141.   The GP  Act provides for offsets and price preferences to promote employment, industrial 
development, and environment al protection. These apply to procurements not covered by the GPA.  
3.142.   A procuring entity may request a tenderer (both local and overseas) to purchase locally 
produced goods, transfer technology, invest, and/or facilitate exports to the extent that it is not 
prohibited by the arrangements to which Chinese  Taipei is a party. Alternatively, where an overseas 
supplier offers the bid with the lowest price, a procuring entity may award the contract to a local 
supplier at such price, as long as the goods provide d contain at least 50% of local value added, or 
the construction works or services are locally provided.225 
3.143.   Preferential treatment for local suppliers is granted to the extent that it is not prohibited by 
the arrangements to which Chinese  Taipei is a party.  Where an overseas supplier offers the bid with 
the lowest price for a procurement reaching the threshold for publication, a procuring entity may 
award the contract to a local supplier at a higher price not exceeding 3% and five  years.226 
3.144.   Government procure ment is also used as a tool for supporting minorities and disadvantaged 
groups, or for environmental protection. For procurements not reaching the threshold for publication 
in aboriginal areas, entities must procure from aboriginal individuals, institution s, legal persons, or 
groups, provided that they are able to carry out the contract, when conducting procurement of 
amounts that are below the threshold for publication in the aboriginal areas. There is no minimum 
 
221 GP Act; and Regulations for the Implementation of Procurement on a Turnkey Basis, last amended 
on 24  September  2012, Article  24. 
222 GP Act; and Regulations for Joint Tendering, last amended on 22  May 2007, Article  25. 
223 Regulation for the Implementation of Inter -entity Supply Contracts, last amended on 
22 November  2019, Article  6. 
224 The FTAs between Chinese  Taipei and New  Zealand and Sin gapore include a chapter on government 
procurement.  
225 GP Act, Article  43 and 44. 
226 GP Act, Article  44. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  procurement amount nor a yearly target.227 If the winning supplier in aboriginal areas has more 
than 100 employees, at least 1% must be aboriginal people. The GP  Act also stipulates the use of 
limited tendering procedures for the procurement of goods and services provided by people with 
physical o r mental disabilities, prisoners, or philanthropic organizations. There is a price preference 
of up to 10% for tenders that include products labelled as being environmentally friendly.228 The 
laws and regulations related to government procurement do not set  yearly targets regarding the 
purchase of eco -products.  
3.145.   Procuring entities must award a specific percentage of their intended procurement 
to SMEs.229 To implement this requirement, a non -binding yearly target percentage (YTP) is 
established, which is curren tly set at 45%.230 In conducting procurement reaching the threshold for 
publication, an entity may require that the tenderer be a SME or encourage the winning supplier to 
subcontract SMEs. The YTP is also enforceable at the local level. In  2022, the value o f government 
procurement conducted with SMEs amounted to TWD  522 billion, representing 86.85% of total 
government procurement.  
3.3.6.4   Transparency  
3.146.   In order to enhance openness and transparency, Chinese  Taipei maintains an electronic 
information system for governm ent procurement, i.e.  the GEPS.231 This system is designed to 
provide information about tender notices and award notices of all procuring entities to facilitate 
participation in government procurement. The Government Procurement Gazette has now been fully 
integrated into the GEPS.  
3.147.   In accordance with the GP  Act, a protest or complaint may be filed in case of a dispute 
between a procuring entity and a supplier.232 Where the value of procurement reaches the threshold 
for publication, a supplier may file a writte n complaint with the relevant institutions.233 In all cases, 
mediation is encouraged. However, if mediation is unsuccessful, complainants may have recourse 
to arbitration. According to Article  74 of the GP Act, a complaint may be filed because of a dispute 
arising (between an entity and a supplier) because of an invitation to or an evaluation of a tender, 
or the award of a contract. The decision may be appealed to the administrative courts.  
3.3.7   Intellectual property rights  
3.148.   As part of its overall effort to promot e high -technology industries and attract FDI, 
Chinese  Taipei has continued to strengthen its framework for protecting technological innovations 
and IPRs. During the review period, there were a number of amendments to the IPR legislation. 
Some of these chan ges were introduced to align Chinese  Taipei's legislation with the provisions of 
the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP). Overall, the 
purpose of these amendments is to streamline the IPR legal regime and adapt it to a rapidly evolving 
environment (Table  3.17).  
3.149.   Intellectual property (IP) policy continues to be the responsibility of the MOEA's intellectual 
property office (TIPO), which is also responsible for drafting IP laws, ensuring interagency 
enforcement coordin ation, and implementing the IPR Action Plan 2021 -23. 
3.150.   At the WTO, Chinese  Taipei is an active member of the TRIPS Council, where it plays a key 
role in discussions on IP and innovation, including MSME growth through IP, women and IP, IP and 
 
227 Indigenous Peoples Employment Rights Protection Act, 4  February  2015, Article  11. 
228 GP Act; and Regulations for Priority Procurement of Eco -Products, l ast amended on 15  January  2001, 
Article  96. 
229 According to the Standards for Identifying Small and Medium -sized Enterprises, an enterprise is 
considered to be a SME if it has been incorporated in accordance with relevant laws, it has paid -in capital of not  
more than TWD  100 million, and it has less than 200 employees.  
230 WTO document GPA/WPS/SME/26 , 6 July 2016.  
231 The English version of the website, which includes information on the WTO  GPA, can be accessed at: 
https://web.pcc.gov.tw/tps/QueryTender/query/queryEng?mode= . 
232 GP Act, Article  74. 
233 GP Act, Article  76. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  microfinance, an d public -private collaboration in innovation.234 Apart from the 
WTO TRIPS  Agreement, Chinese  Taipei participates in IPR protection and cooperation under 
the APEC's Intellectual Property Rights Expert Group (IPEG). Chinese  Taipei does not participate in 
WIPO -administered agreements. However, insofar as it implements the WTO  TRIPS  Agreement, it 
also complies with substantive obligations of the main WIPO conventions that are incorporated by 
reference to this Agreement, such as the Paris Convention, the Berne Co nvention, the 
Rome  Convention, and the Treaty on Intellectual Property in Respect of Integrated Circuits 
(IPIC Treaty).  
3.151.   During the period under review, Chinese  Taipei continued to deepen global IPR cooperation 
by signing a number of memoranda of understand ing (MoU).235 
Table  3.17 Requirements and terms of intellectual property rights protection, 2023  
Subject 
matter  Protection  Remarks  
Copyright and 
related rights  The Copyright Act protects 10 types of works (oral and 
literary works, musical works, dramatic and choreographic 
works, artistic works, photographic works, pictorial and 
graphical works, audiovisual works, sound recordings, 
architectural works, and computer programs), as well as 
derivative works.  
The term of protection is 50 years after the author's death, 
except for photographic and audiovisual works, sound 
recordings, and performances, which are protected for 
50 years from the public release of the work.  
Works by authors originating in a WTO Member,  or if there 
is a principle of reciprocity, are protected. Otherwise, works 
are protected only if first published in Chinese  Taipei or 
published in Chinese  Taipei within 30 days of their first 
publication outside Chinese  Taipei. This applies if there is 
reciprocity.  Parallel imports of 
copyright -protected products are 
prohibited (Article  87.4), subject 
to certain exceptions.  
Trademarks 
(including 
certification 
and collective 
marks)  Any sign with distinctiveness – consisting, in particular, of 
words, devices, symbols, colours, three -dimensional shapes, 
motions, holograms, sounds, or any combination thereof – 
is protected for a period of 10 years, renewable indefinitely 
for additional periods of 10 years.  
Registration is based on the principle of recipr ocity or on the 
existence of an arrangement for the reciprocal protection of 
trademarks.  
To apply for a trademark, an overseas applicant must use a 
trademark agent. An applicant who has filed an application 
in a trading partner that is a WTO Member or gran ts 
reciprocal recognition of priority rights with Chinese  Taipei 
may claim a right to priority within six months from the 
original application.  The Trademark Act (Article  36.2) 
adopts the principle of 
international exhaustion, thus 
allowing parallel import s. 
Geographical 
indications 
(GIs) 
(certification or 
collective 
marks)  Geographical indications are registered under the 
Trademark Act as certification marks or collective marks.  
For a good or service to be protected under a geographical 
indication it must  have a quality, reputation, or other 
characteristic that is fundamentally attributable to its 
geographic origin.  
Applications for a GI certification mark must be filed by a 
legal entity, a legal group, or an authority.  
Applications for a GI collective tra demark must be filed by a 
union, an association, or other group having a legal 
personality. GIs are protected for as long as the 
requirements conferring protection exist.  
Registered GIs are protected for a period of 10 years, 
renewable indefinitely for add itional periods of 10 years.   
 
234 See, for example, WTO documents IP/C/W/638 , 16 February  2018; IP/C/W/652 , 8 February  2019; 
IP/C/W/667 , 9 September  2020; IP/C/W/675 , 26 February  2021; IP/C/W/679 , 27 May 2021; IP/C/W/685 , 
1 October  2021; and IP/C/W/686 , 25 February  2022.  
235 TIPO, Annual Report  (2021). Viewed  at: https://www.tipo.gov.tw/en/lp -309-2.html . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Subject 
matter  Protection  Remarks  
Inventions, 
utility models, 
and designs  Inventions, utility models, and designs are protected by a 
patent as long as they meet the criteria of novelty, inventive 
step, and industrial applicability.  
Patents are granted based on the principle of reciprocity or 
the existence of an arrangement for t he reciprocal 
protection of patent rights.  
Invention patents are granted for 20 years, utility model 
patents for 10 years, and design patents for 15 years from 
the date of filing.  
In principle, patents are not renewable. However, invention 
patents involvin g a pharmaceutical or agrochemical, or the 
manufacturing process thereof, may be extended only once 
for a period of up to five years to compensate for any delays 
in obtaining the regulatory approval.  
Overseas applicants must designate a patent attorney to file 
patent applications and handle patent -related matters.  
An applicant who has first applied for a patent in a trading 
partner that has reciprocal recognition of priority rights with 
Chinese  Taipei or is a WTO  Member may claim a right to 
priority within 12 months from the original application , and 
in the case of design patent applications, 6 months . Inventions will not be granted a 
patent if disclosed in a printed 
publication, publicly exploited, or 
publicly known prior to the filing 
of the application.  
The following are also excluded 
from patentability: (i)  animals, 
plants, and essential biological 
processes for the production of 
animals or plants, except for 
processes for producing 
microorganisms; (ii)  diagnostic, 
therapeutic, and surgical 
methods for th e treatment of 
humans or animals; and 
(iii) inventions contrary to public 
order or morality.  
Utility models that are contrary 
to public order or morality cannot 
be granted a patent.  
A design may not be granted a 
patent if it is (i)  the shape of an 
article solely dictated by its 
functions; (ii)  an object of fine 
art; (iii)  the layout of an 
integrated circuit and electronic 
circuit; or (iv)  an article contrary 
to public order or morality.  
The Patent Act adopts the 
principle of international 
exhaustion (Articl e 59.1.6), thus 
allowing parallel imports.  
Layout -designs 
(topographies) 
of integrated 
circuits  A layout -design is protected if it is the result of the creator's 
intellect and efforts. At the time of creation, the circuit 
layout must not be ordinary, comm on, or known, although 
the combination of ordinary, common, or known 
components or interconnections may be protected.  
Layouts are protected for 10 years from the date of 
application or the date of first commercial exploitation, 
whichever is first.  
An overs eas owner may apply for registration in 
Chinese  Taipei if there is a protection granting arrangement 
in force, or based on the principle of reciprocity. An 
overseas owner may also obtain protection in Chinese  Taipei 
if the first commercial exploitation occ urred in 
Chinese  Taipei, and there is reciprocity.   
New plant 
varieties  Protection is granted only if a variety is new, distinct, 
uniform, and stable, and has been given an appropriate 
plant variety denomination.  
For trees and perennial vine plants, protection is for 
25 years from the date of approval.  
For all other plant species, the term of protection is 20  years 
from the date of approval.   
Trade secrets  A trade secret is defined as any method, technique, process, 
formula, programme, design , or other information that may 
be used in the production, sales, or operations, that is not 
known generally, has economic value, and whose owner has 
taken reasonable measures to maintain secret.  
Trade secrets are automatically protected for as long as 
they remain undisclosed.   
Traditional 
intellectual 
creations of 
indigenous 
peoples  Protection is granted to traditional religious ceremonies, 
music, dance, songs, sculptures, weaving, patterns, 
clothing, folk crafts, or any other expression of the cultural 
achievements of indigenous peoples.  
These creations are permanently protected after being 
registered with the Council of Indigenous Peoples.   
Source:  Compiled by the WTO Secretariat based on Chinese  Taipei's IPR legislation.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  3.3.7.1   Copyright and related rights  
3.152.   Copyright and related rights in Chinese  Taipei continue to be protected under the Copyright 
Act and subsidiary legislation.236 During the review period, Chinese  Taipei made several 
amendments to the Copyright Act in order to impose civil and criminal  liability on providers of 
computer software enabling access to copyright infringing websites, and to facilitate the use of 
copyright -protected works in the context of distance learning and digital archives.237 Also, to ensure 
compliance with the IPR provis ions of the CPTPP, the Copyright Act was amended to consider 
instances of illegal digital piracy, distribution, and public transmission constituting a serious 
infringement as offences indictable without complaint. Optical disc piracy, however, is no longer  
considered a serious infringement and is now subject to general liability.  
3.153.   The Regulations Governing Application for Approval of License of Works of Unknown Owner 
of Copyrights and Royalties for Use Thereof were also amended to facilitate the use of orpha n works 
and support the development of cultural and creative industries, in accordance with the Development 
of the Cultural and Creative Industries Act, which promotes the use of such works.238 
3.154.   The Copyright Collective Management Organization (CMO) Act was also amended to 
introduce a public consultation mechanism for TIPO to obtain comments from general copyright 
users when processing permit applications by CMOs. The amended Act also establishes term limits 
for CMO managers, as well as internal controls to e nsure good governance, and promotes technology 
use within these organizations to enhance management and operations. TIPO's authority to 
supervise and penalize a CMO violating the law was also enhanced.239 
3.3.7.2   Trademarks  
3.155.   Trademarks continue to be protected under  the Trademark Act and subsidiary legislation, 
including the Enforcement Rules of the Trademark Act.240 During the review period, the 
Trademark  Act was amended to include criminal provisions on counterfeit labels of trademarks or 
collective trademarks. Unde r the amended Act, criminal liabilities now apply to some preparatory 
and contributory acts of infringement, including the importation of counterfeit labels and packaging. 
In addition, "intentional and negligent" acts are now subject to civil liabilities, while only intentional 
acts constitute criminal liability. The Enforcement Rules of the Trademark Act were also amended to 
establish that the Classification of Goods and Services maintained by the Registrar Office shall be 
based on the International Classi fication of Goods and Services published by WIPO. In addition, the 
Regulations Governing the Implementation of Filing Trademark Applications and Services by 
Electronic Means were amended to allow applicants to file trademark applications by alternative 
means when the file size is too big (i.e.  a read -only DVD to be submitted in person or via postal 
service to complete the e -filing process).  
3.156.   TIPO also revised the Examination Guidelines on Likelihood of Confusion to help determine 
whether there is likelihood of confusion between two trademarks.  
 
236 Copyright Collective Management Organization Act, last amended on 18  May 2022; Regulations of 
Copyright Dispute Mediation, last amended on 14  April 2004; Regulations Governing Application for Approval of 
Compulsory License of Musical Works and Royalties f or Use Thereof, last amended on 4  August  2020; 
Standards for Application Fees Related to Copyright Affairs, last amended on 12  April 2010; Regulations 
Governing Application for Approval of License of Works of Unknown Owner of Copyrights and Royalties for U se 
Thereof, last amended on 11  March  2021; and Regulations for Copyright Collective Management Organization 
Fees, last amended on 26  February  2010.  
237 WTO documents IP/N/1/TPKM/23 , IP/N/1/TPKM/C/13 , 11 October  2019; and 
IP/N/1/TPKM/34 , IP/N/1/TPKM/C/17 , 22 September  2022.  
238 WTO document IP/N/1/TPKM/31 , IP/N/1/TPKM/C/15 , 10 June 2021.  
239 WTO document IP/N/1/TPKM/35 , IP/N/1/TPKM/C/18 , 22 September  2022.  
240 Implementation Regulations for Customs to Detain Articles Infringing the Rights in the Trademark, 
last amended on 2  August  2012; Trademark Examiner Qualification Act, last amended on 2  February  2000; 
Standards of Trademark Fees, last amended on 28  June 2012; Regulations Governing the Implementation of 
Filing Trademark Applications and Services by Electronic Means, last amended on 9  June 2020; and 
Regulations Governing Customs Measures in Protecting t he Rights and Interests of Trademark, last amended 
on 15  September  2021.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  3.157.   During the review period, trademark registrations showed an increasing trend 
(81,460  in 2021 compared to 71,809 in 2018). The share of trademarks registered by residents 
showed a significant increase during the same per iod (23%), particularly in 2020 and 2021 
(Table  3.18). The average disposal pendency for trademark applications hit a record low in 2021 
of 6.2 months.241 
Table  3.18 Trademarks and related data, 2018 -22 
 2018  2019  2020  2021  2022  
Trademarks  
Applications  84,816  86,794  94,089  95,917  94,778  
Residents  59,840  61,928  72,170  73,374  74,326  
Non-residents  24,976  24,866  21,919  22,543  20,452  
Registrations  71,809  70,785  78,849  81,460  79,400  
Residents  50,463  48,921  56,736  62,071  60,312  
Non-residents  21,346  21,864  22,113  19,389  19,088  
Certification marks  
Applications  46 40 47 41 36 
Registrations  29 44 34 29 28 
Collective membership marks  
Applications  49 53 46 48 48 
Registrations  39 37 39 48 32 
Source:  TIPO, Annual Report  (2021); and information provided by TIPO.  
3.3.7.3   Geographical indications  
3.158.   Geographical indications (GIs) may be registered in Chinese  Taipei as certification marks or 
collective marks under the Trademark Act. GIs are also governed by other acts, such as the Fair 
Trade Act, the Tobacco and Alcohol Administration Act, the Regulati ons Governing the Labelling of 
the Alcohol Products, and the Commodity Labelling Act.  
3.159.   Chinese  Taipei is a co -sponsor of the Joint Proposal for the establishment of a multilateral 
system of notification and registration of GIs for wines and spirits, which w ould be applied on a 
voluntary basis.242 Chinese  Taipei  also opposes the extension of the higher level of GI protection for 
wines and spirits to all goods.243 
3.3.7.4   Patents, utility models, and designs  
3.160.   Patent protection in Chinese  Taipei remains regulated by the P atent Act and secondary 
legislation, including the Enforcement Rules of the Patent Act.244 During the review period, the 
Patent  Act was amended to, inter alia, (i) extend the term of protection for the design patent 
from 12 to 15  years; (ii)  loosen restrict ions on the division of invention and utility model patent 
applications after approval; and (iii)  specify the period for applying for a post -grant amendment to 
a utility model patent and for a substantive examination.245 
3.161.   In order to align Chinese  Taipei's legal framework for patents with the CPTPP, in 2019 a 
patent linkage system was implemented under the Pharmaceutical Affairs Act. To ensure consistency 
between this Act and the Patent Act, in 2022 the latter was amended t o provide the legal basis for 
patent holders to sue generic drug manufacturers that make a P4 declaration for patent 
infringement. The amended Act also provides that in case a patent holder does not file a suit within 
 
241 TIPO, Annual Report  (2021). Viewed  at: https://www.tipo.gov.tw/en/lp -309-2.html . 
242 WTO doc ument TN/IP/W/10/Rev.4 , 31 March  2011.  
243 WTO document IP/C/W/386 , 8 November  2002.  
244 Regulations of Patent Fees, last amended on 27  September  2019; Regulations Governing the 
Implementation of Filing Patent Applications and Services by Electronic Means, last amended on 9  June 2020; 
Regulations Governing the Determi nation of Patent Term Extension, last amended on 11  April 2018; 
Regulations Governing Customs Detaining Goods Suspected of Patent Infringement, last amended on 
24 March  2014; Regulations for the Patent Linkage of Drugs, 1  July 2019; Regulations for the Dep osit of 
Biological Material for Patent Application, last amended on 4  June 2015; and Patent Attorney Act, last amended 
on 21  November  2018.  
245 WTO document IP/N/1/TPKM/24/Rev.1 , IP/N/1/TPKM/P/13 /Rev.1 , 3 November  2022.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  the stipulated time period, the generi c drug manufacturer may file a declaratory judgement to 
ascertain whether any infringement has occurred.246 
3.162.   The Enforcement Rules of the Patent Act were also amended to exempt 
biotechnology -related applicants from submitting a list of sequences in written f orm and to relax the 
period for submitting third -party observations to TIPO.247 Moreover, major amendments were 
introduced in the Regulations Governing the Determination of Patent Term Extension, so that it is 
no longer required to submit a document proving  that the clinical trial or field test has been approved 
for patent term extension overseas. In addition, for field tests that need not be conducted in 
sequence, the limitation that only the longest one may be claimed for patent term extension was 
removed.248 
3.163.   The Examination Guidelines for Computer Software -related Inventions were amended to 
take into account the increased use of AI -based applications and innovations in many industries. 
The amended Guidelines now specify the eligibility criteria to be used b y TIPO for computer 
software -related inventions.249 
3.164.   No changes were made to the provisions on compulsory licensing contained in the Patent  Act, 
and no compulsory licences were issued during the review period.  
3.165.   The total number of patents applied for and gran ted declined slightly during the review 
period; the number of invention patent applications grew, whereas the number of utility model and 
design patent applications decreased. Most patent applications were submitted by Chinese  Taipei 
residents, but the sha re of overseas applicants increased compared to the previous review period, 
when the share averaged 40% (Table  3.19). In 2022, the top three item categories benefitting from 
patent grants were semiconductor devices (10.62%), optics (8.32%), and basic elect ronic 
circuitry  (6.20%). The average disposal pendency for invention patent applications hit a record low 
in 2019 of 13.6  months. For utility model patent applications, the record low was registered in  2020 
(2.2 months). The average pendency of design pate nt applications stood at 7.3  months during the 
review period.250 
Table  3.19 Patent applications and registrations, 2018 -22 
 2018  2019  2020  2021  2022  
Patent applications  
Invention  47,429  48,268  46,664  49,116  50,242  
Residents (%)  39 39 41 40 39 
Non-residents (%)  61 61 59 60 61 
Utility models  17,910  17,580  17,555  15,796  14,662  
Residents (%)  93 93 94 92 93 
Non-residents (%)  7 7 6 8 7 
Designs  8,082  8,804  8,019  7,701  7,155  
Residents (%)  53 48 49 46 48 
Non-residents (%)  47 52 51 54 52 
Total 73,421  74,652  72,238  72,613  72,059  
Residents (%)  53 53 55 52 51 
Non-residents (%)  47 47 45 48 49 
Patents granted  
Inventions  36,147  34,926  33,811  36,576  37,175  
Residents (%)  41 41 41 42 43 
Non-residents (%)  59 59 59 58 57 
Utility models  18,559  16,300  17,489  15,742  14,212  
Residents (%)  93 93 93 92 92 
Non-residents (%)  7 7 7 8 8 
 
246 WTO document IP/N/1/TPKM/33 , IP/N/1/TPKM/P/17 , 6 July 2022.  
247 WTO documents IP/N/1/TPKM/25 , IP/N/1/TPKM/P/14 , 5 December  2019; and IP/N/1/TPKM/27 , 
IP/N/1/TPKM/P/15 , 20 July 2020.  
248 WTO document IP/N/1/TPKM/19 , IP/N/1/TPKM/P/10 , 26 September  2018.  
249 TIPO (2021), Annual Report . Viewed  at: https://www.tipo.gov.tw/en/lp -309-2.html . 
250 Information provided by the authoriti es. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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   2018  2019  2020  2021  2022  
Designs  7,487  6,660  7,419  7,158  6,627  
Residents (%)  52 51 45 46 44 
Non-residents (%)  48 49 55 54 56 
Total 62,193  57,886  58,719  59,476  58,014  
Residents (%)  58 57 57 56 55 
Non-residents (%)  42 43 43 44 45 
Source:  TIPO, Annual Report  (2021); and information provided by TIPO.  
3.3.7.5   Plant varieties  
3.166.   There have been no major changes to the Plant Variety and Plant Seed Act, which was last 
amended in May  2018.  
3.3.7.6   Layout -designs of integrated circuits (topographies)  
3.167.   Layout -designs of integrated circuits continue to be protected under the Integrated Circuit 
Layout Protection Act, last amended in 2002, and the Enforcement Rules of the Integrated Circuit 
Layout Protection Act. No major changes were made during the review period.  
3.3.7.7   Trade secrets  
3.168.   Trade secrets continue to be protected under the Trade Secrets Act. In January  2020, the 
Act was amended to introduce the confidential ity order mechanism to safeguard complainants' trade 
secrets during criminal investigation proceedings. A person who violates a confidentiality order is 
liable to imprisonment for a maximum of three  years. The purpose of this amendment is to deter 
leaks of  trade secrets, increase corporations' willingness to file a lawsuit, and enable prosecutors to 
effectively conclude their investigations. Moreover, as these amendments also increase protection 
of overseas persons' trade secrets, they could have an impact on FDI and R&D.251 
3.3.7.8   Enforcement  
3.169.   According to the authorities, IPR quality and quantity are instrumental to Chinese  Taipei's 
competitiveness and for promoting its global economic integration.252 During the review period, 
Chinese  Taipei took measures and instit uted several new policies to enhance IPRs' enforcement, 
such as the IPR Action Plan 2021 -23, which is being implemented in line with Chinese  Taipei's policies 
on industrial innovation and development. The main goal of the Plan is to strengthen investigatio ns 
of piracy, counterfeiting, and theft of trade secrets to effectively reduce infringements.  
3.170.   An Inter -agency Coordination Taskforce for IP Enforcement, including representatives of 
some ministries, the general police force, the IPR Police, and the Customs  Administration, continues 
to coordinate enforcement work.  
3.171.   All IPR laws contain provisions on civil remedies in case of infringement. Infringement of 
copyright, trademarks, and trade secrets also carries criminal liability. Criminal penalties upon 
infringe ment of copyright include imprisonment for up to five years and/or a fine of up to 
TWD 2 million. Criminal penalties for trademark infringement include imprisonment for up to 
three  years and/or a fine of up to TWD  200,000. Criminal penalties are also in pl ace for trade secret 
misappropriation (between 1 and 10  years and/or a fine of between TWD  3 million and 
TWD 50 million).  
3.172.   IPR enforcement on imported and exported goods is conducted by the Customs 
Administration, which may suspend ex officio  the release of  goods suspected of infringing IPRs. To 
expedite counterfeit identification, the Regulations Governing Customs Measures in Protecting the 
Rights and Interests of Trademarks were amended in 2021, so that right holders can identify 
suspected goods on an e -platform rather than onsite. During the review period, the Customs 
Administration continued to exchange information on cases of counterfeiting with its global 
counterparts.  
 
251 WTO document IP/N/1/TPKM /26, IP/N/1/TPKM/U/3 , 9 April 2020.  
252 TIPO (2021), Annual Report . Viewed  at: https://www.tipo.gov.tw/en/lp -309-2.html . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  3.173.   In the local market, the main entities in charge of IPR infringement are the district 
prosecutor's offices, the Investigation Bureau (MOJ), the police force, the IPR Police, and the 
Intellectual Property and Commercial Court. During the review period, the Intellectual Property Court 
was merged with the Commercial Court and was then renamed as the Intellectual Property and 
Commercial Court. The IPR Police continue to undertake counterfeit and piracy investigations. The 
Joint Optical Disk Enforcement Taskforc e (JODE) conducted periodic and random inspections of 
optical disc plants until 2021, when according to the authorities these were put on hold. In 2022, 
the value of trademark and copyright seizures in the local market amounted to TWD  49.45  million.253 
 
 
253 Information provided by the authorities.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture  
4.1.1   Overview  
4.1.  Farming, animal husbandry, fisheries, and forestry accounted for 1.4% of GDP and 4.6% of 
employment in 2022, against 1.7%  and 4.9%,  respectively, in 2018 (Table  1.1). The crops segment 
provided more than 50% of the sector's annual output throughout the 2018 -21 period, whereas 
forestry's contribution remained very modest. The livestock segment's relative importance in the 
sector's outp ut grew steadily, while fisheries' share maintained a mostly downward trend. The main 
activities were horticulture and hog and poultry farming (Table  4.1). Rice remains the most 
important staple food in the Separate Customs Territory of Taiwan, Penghu, Kin men and  Matsu 
(Chinese  Taipei), although both its cultivation area and production volume have been steadily 
declining since 2018.1 
Table  4.1 Composition of agricultural output, 2018 -21 
 
2018  2019  2020  2021  
Total (TWD  million)  525,610.1  512,427.9  503,805.3  536,074.2  
 Crop production  269,445.6  262,509.5  263,610.3  272,179.9  
 Fruit 99,352.0  92,343.5  95,779.7  101,259.6  
 Vegetables  73,332.5  77,828.3  74,617.2  81,476.1  
 Paddy rice  42,986.5  39,891.5  38,753.9  35,149.1  
 Livestock production  166,687.0  162,941.8  168,813.4  185,786.7  
 Hogs 70,359.5  70,944.4  71,487.3  76,696.6  
 Broilers, incl. coloured  43,867.6  40,048.6  46,448.7  52,878.3  
 Hen eggs  21,131.7  22,010.3  21,413.2  23,066.8  
 Forestry production  139.2  156.4  165.6  227.4  
 Timber  108.5  132.4  143.9  203.1  
 Fishery production  89,267.5  86,622.6  71,216.1  77,880.2  
 Deep sea fisheries  35,740.3  33,840.3  25,560.8  32,658.4  
 Inland aquaculture  31,819.6  31,353.2  27,159.8  27,187.0  
Source:  Council of Agriculture (COA). Viewed  at: https://eng.coa.gov.tw/ws.php?id=2505686 . 
4.2.  Chinese  Taipei's agriculture sector remains small on account of scarce farmland, fr agmented 
farming operations, and a declining and ageing rural workforce. In 2021, Chinese  Taipei 
had 734,634  ha under cultivation, 8,107  ha used for animal husbandry, and 30,668  ha used for 
aquaculture ponds.2 Most farms remain small -scale (1.1  ha on aver age) and family -operated.  
4.3.  Vulnerability to adverse climatic conditions constitutes another impediment to the 
sector's  growth and productivity. During the review period, Chinese  Taipei experienced several 
weather -related disasters, including floods and drou ght. The total disaster -related agricultural loss 
for 2018 -21 was estimated at TWD  34.9 billion.3 
4.4.  Chinese  Taipei remains heavily dependent on imported food and agricultural inputs, such as 
animal feed and forage crops, and fertilizers. Its trade balance i n fish and fish products 
(WTO  definition) was positive during 2018 -19 but turned negative thereafter (Table  4.2). Imports 
of food represented about 3.6% of total merchandise imports in 2022, against 4% in 2018.4 In 2021, 
imports accounted for 68.7% of Chi nese Taipei's annual caloric intake, against 65.5% in  2018. The 
steep rise in sea transport costs, triggered by a global shortage of shipping containers following the 
outbreak of the COVID -19 pandemic, had a dampening effect on Chinese  Taipei's trade in 
agricultural products.  
 
1 Viewed  at: https://eng.coa.gov.tw/ws.php?id=8842 . 
2 There were also 52,391  ha of fallow land.  
3 Viewed  at: https://eng.coa.gov.tw/upload/files/eng_web_structure/2505697/ZA _ZA10 -
1_276_110.pdf . 
4 WTO Secretariat calculations, based on BOFT, Trade Statistics . Viewed  at: 
https://cuswebo.trade.gov.tw/FSCE000F/FSCE000F . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  4.2 Trade in agricultural products, 2018 -22 
 
Description  2018  2019  2020  2021  2022  
Exports (USD  million)  3,632.2  3,784.0  3,629.9  4,241.2  3,717.0  
(% of total exports)  1.1 1.1 1.1 1.0 0.8 
Top 5 categories (HS 4 -digit level, % of total agriculture exports)  
2106 Food preparations, n.e.s.  16.9 18.8 19.0 19.8 21.2 
1905 Bread, pastry, cakes, biscuits and 
other bakers' wares, whether or 
not containing cocoa  5.4 5.3 5.5 5.2 5.7 
0505 Skins and other parts of birds 
with their feathers (..)  7.3 6.9 4.5 4.8 5.2 
2402 Cigars, cheroots, cigarillos and 
cigarettes of tobacco or of 
tobacco substitutes  3.8 3.6 3.4 4.8 5.1 
2202 Waters, containing added sugar 
or other sweetening matter or 
flavoured, and other 
non-alcoholic beverages  5.1 5.0 5.3 5.1 5.0 
Imports (USD  million)  12,639.5  12,658.5  12,374.6  14,757.5  16,854.2  
(% of total imports)  4.4 4.4 4.3 3.9 3.9 
Top 5 categories (HS 4 -digit level, % of total agriculture imports ) 
1201 Soya beans, whether or not 
broken  8.5 8.1 8.3 10.1 11.1 
1005 Maize (corn)  6.8 7.7 7.1 8.9 10.3 
2106 Food preparations, n.e.s.  5.4 5.6 5.6 5.5 5.3 
0202 Meat of bovine animals, frozen  4.6 5.0 5.0 4.3 5.1 
2208 Undenatured ethyl alcohol of an 
alcoholic strength by volume of 
less than 80% vol; spirits, 
liqueurs and other spirituous 
beverages  5.3 6.0 5.4 5.0 4.3 
Trade balance (USD  million)  
Agriculture  -9,007.2  -8,874.6  -8,744.7  -10,516.4  -13,137.1  
Fish and fishery productsa 353.5  195.4  -245.6  -66.8 -463.1  
Foodb -6,585.2  -6,816.1  -7,206.9  -8,322.2  -10,858.6  
Animal feedc -614.4  -595.8  -605.2  -690.5  -830.2  
Fertilizerd -117.7  -129.5  -153.8  -84.4 -226.2  
a HS Chapters and headings 03, 0508, 0511.91, 1504.10, 1504.20, 1603 -1605, and 2301.20.  
b HS Chapters 1 -23 (excluding Chapters 5, 6, 13, and 14, and headings 1108, 1109, 1201 -1209, 
1520, 1211 .30, 1211 .40, 1211 .50, 1212 .21, 1212 .29, 2207 .10, and 2207 .20) and headings 3823, 
3502.11, and 3502 .19. 
c HS Chapter 23 and headings 1213 and 1214.  
d HS Chapter  31. 
Note:  Unless indicated otherwise, the WTO definition of agricultural products is applied.  
Source:  WTO Secretariat calculations, based on BOFT, Trade Statistics . Viewed  at: 
https://cuswebo.trade.gov.tw/FSCE000F/FSCE000F . 
4.5.  Inward investment in most agriculture (farming, animal husbandry, forestry, fishing, and 
aquaculture) activities remains restricted (Section  2.4). A "Small Landlords, Big Tenants" 
programme, in place since 2009, continues to offer various incentives aimed at rejuvenating the 
agricultural labour structure, expanding farm scale, and providing retirement relief to 
elderly farmers.5 
4.6.  The Council of Agriculture (COA) remains in charge of farming, animal husbandry, forestry, 
fishery, and food matters in Chinese  Taipei.6 Its responsibilities include policy formulation and 
implementation, including guiding and supervising re levant activities undertaken at the provincial 
and municipal levels. The COA shares responsibilities with other public bodies in the areas of water 
resources, land use, ocean and coastal management, and disaster prevention.  
4.7.  During the review period, the CO A's efforts to protect the rights and interests of the farming 
population and nourish an optimal agricultural environment were guided by its New Innovative 
Agriculture Programme comprising three main axes: enhancing farmers' welfare, improving 
infrastructu re, and upgrading competitiveness. In addition, the COA continued executing strategies 
 
5 WTO document WT/TPR/S/377/Rev.1 , 6 March  2019.  
6 Viewed  at: https://eng.coa.gov.tw/ws.php?id=2505380 . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  and action plans elaborated in accordance with Chinese  Taipei's Climate Change Adaptation Action 
Plan and New Southbound Policy (NSP).  
4.8.  The COA remains in charge of the A gricultural Credit Guarantee Fund (ACGF) aimed at assisting 
farmers and fishers with insufficient collateral to obtain agricultural loans. The COA is also the 
competent authority managing the Fund for Redressing Damage to Farmers Caused by Agriculture 
Imports and its sub -fund, the Pig Farming Industry Fund, established in 2021. These Funds finance 
support measures intended to help farmers to cope with the challenges of trade liberalization, 
accelerate the agriculture sector's structural transformation, and enhance its competitiveness. In 
January  2021, Chinese  Taipei also established an Agricultural Insurance Fund for the purpose of 
implementing risk -spreading mechanisms, stabilizing the agricultural insurance system's operations 
and functions, training loss adjusters, and establishing an agricultural insurance database. Pursuant 
to the Agricultural Insurance Act, the COA is to inject up to TWD  10 billion into the Fund. The 
authorities indicate that TWD  0.6 billion have been injected to date.  
4.9.  The main laws gov erning the sector remain the Agricultural Development Act, the Forestry  Act, 
and the Fisheries Act. During the review period, amendments were made to, inter alia, the Farmer 
Health Insurance Act and the Fisheries Act. Chinese  Taipei also enacted the Organi c Agriculture 
Promotion Act (30  May 2018), the Act for Distant Water Fisheries (20  July 2016), the Agricultural 
Insurance Act (27  May 2020), the Farmer Pension Act (10  June 2020), and the Irrigation  Act 
(22 July 2020). On 1  October  2020, all irrigation ass ociations operating in Chinese  Taipei were 
formally absorbed by a newly established Irrigation Agency under the COA.7 
4.10.  Chinese  Taipei joined the Southern Indian Ocean Fisheries Agreement (SIOFA) in July  2019. 
Having made essential improvements in the areas of legal framework; traceability; global 
cooperation; and monitoring, control, and surveillance, Chinese  Taipei was removed from the 
European  Union's "Yellow Card" list for illegal, unreported, and unregulated fishing on 
27 June 2019.8 
4.1.2   Trade measure s 
4.11.  The average applied MFN tariff for agricultural products (WTO definition) including AVEs 
was 16.6% (17.6% at the HS  8-digit level) in 2023, down from 17.8% in 2018 (Table  3.1). Some  6% 
of tariff lines for agricultural products were subject to non -ad valorem rates and the simple average 
AVE was 59.5% (against an average of 13.9% across ad valorem  rates). The highest MFN tariffs 
applied to areca  (betel) nuts (HS  0802.80.0000, TWD  810/kg with an AVE of 1,069.9%), followed 
by other deer velvet (HS  0507.90.200 0, 500%9), and rice in the husk (HS  1006.10.0000, 
TWD 45/kg with an AVE of 467.4%).  
4.12.  Import duties on most wood products (184 out of the 201 tariff lines in HS Chapter  44) remain 
set at zero, and the simple average tariff is 0.9% in 2023. The simple averag e tariff rate for fish and 
fishery products (WTO definition) was 19.9% (20.1% at the HS  8-digit level) in 2023, down 
from 20.4% in 2018.10 Some 61 out of  816 tariff lines carried non -ad valorem  rates and the 
average  AVE was 25.8%. The highest MFN tariffs f or fisheries imports apply to frozen mullets 
(HS 0303.89.1000, TWD  25/kg, AVE at 83.8%); and shrimps and prawns, dried, salted or in brine, 
but not smoked (HS  0306.95.1910 and  0306.95.1990, TWD  48/kg or 25%, whichever is higher, 
AVE at 72.5%).  
4.13.  Chinese  Taipei applies tariff rate quotas (TRQs) on certain agricultural imports 
(Section  3.1.3.3). Special safeguard measures (SSGs) were applied on agricultural imports on 
several occasions during 2018 -22 (Section  3.1.6 and Table  4.3). 
 
7 By centralizing irrigatio n management, Chinese  Taipei aims to expand service coverage and ensure 
maximum efficiency in the use of agricultural water resources. The authorities affirm that the terms of 
irrigation services supply to farmers remain unaffected by the institutional ref orm. Irrigation services are 
provided to farmers free of charge and are not subject to any membership fees.  
8 Viewed at: https://ec.europa.eu/commission/presscorner/detail/en/ip_19_3397 . 
9 Out-of-quota rate.  
10 Chinese  Taipei's 2018 import tariff contains 9,134 lin es at the 8 -digit level, whereas its 2023 tariff 
contains 12,280 lines at the 10 -digit level. For comparison purposes, the figure in parentheses indicates the 
corresponding average rate calculated on the basis of the 8 -digit lines contained in the 2023 tar iff. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  4.3 Special safeguard measures applied , 2018 -22 
- This measure was not applied.  
Note:  If both volume -based and price -based SSGs are applicable on an import consignment, only one of 
them (the higher additional duty) will be applied.  
Source:  WTO documents G/AG/N/TPKM/177 , 28 February  2019; G/AG/N/TPKM/190 , 21 January  2020; 
G/AG/N/TPKM/199 , 5 February  2021; and G/AG/N/TPKM/210 , 21 February  2022; and information 
provided by the authorities.  
4.14.  The COA, through its Agriculture and Food Agency (AFA), maintains the exclusive ri ght to 
import rice on behalf of the public sector, namely 65% of the annual brown rice TRQ  quantity 
(Section  3.1.3.3). During 2018 -21, imports of brown rice remained relatively stable while local 
production declined steadily. Nevertheless, Chinese  Taipei w as a net exporter of brown rice 
in 2020-21 (Table  4.4). Year Product description  Volume -based  Price -based  
Period  Quantity affected 
(kg) Consignment  Quantity 
affected (kg)  
2018 Peanuts  25/12/18 to 31/12/18  2,979  4 4,900  
Garlic  14/12/18 to 31/12/18  4,813  - - 
Chicken legs and wings  21/09/18 to 31/12/18  25,985,804  1,425  44,768,590  
Other chicken cuts  27/03/18 to 31/12/18  6,982,930  48 444,907  
Fresh milk  03/08/18 to 31/12/18  2,706,687  - - 
Other liquid milk  - - 25 218,909  
Poultry offal  18/07/18 to 31/12/18  90,649  - - 
Red beans  21/12/18 to 31/12/18  1,795  2 97 
Dried shiitake  21/12/18 to 31/12/18  2,396  - - 
Persimmon  - - 1 4 
Pork belly  22/08/18 to 31/12/18  3,624,601  90 503,020  
2019 Pears  - - 3 31 
Other garlic, fresh or 
chilled  23/09/19 to 31/12/19  638,492  - - 
Chicken legs and wings  18/10/19 to 31/12/19  29,159,494  3,307  97,121,324  
Other chicken cuts  11/02/19 to 31/12/19  3,966,556  58 919,884  
Fresh milk  10/09/19 to 31/12/19  1,411,597  - - 
Other liquid milk  26/11/19 to 31/12/19  330,230  2 744 
Poultry offal  23/08/19 to 31/12/19  166,312  - - 
Livestock offal  27/11/19 to 31/12/19  1,428,469  - - 
Red beans  - - 5 382 
Dried shiitake  07/10/19 to 31/12/19  1,689  26 48,094  
Persimmon  - - 1 48 
Pork belly - - 82 1,004,975  
2020 Pears  - - 1 10 
Chicken legs and wings  27/10/20 to 31/12/20  5,830,045  5,257  152,970,970  
Other chicken cuts  21/07/20 to 31/12/20  4,619,263  52 881,617  
Fresh milk  29/09/20 to 31/12/20  747,301  - - 
Other liquid milk  - - 2 487 
Poultry offal  13/11/20 to 31/12/20  50,678  - - 
Dried shiitake  24/06/20 to 31/12/20  30,955  54 166,632  
Pork belly  - - 114 641,026  
2021 Rice - - 11 5,410  
Peanuts  16/12/21 to 31/12/21  6,478  6 948 
Pears  - - 1 15 
Garlic (dried garlic bulb, 
whole, cut, sliced, 
broken or in powder)  28/09/21 to 31/12/21  99,019  - - 
Chicken legs and wings  - - 2,882  81,198,846  
Other chicken cuts  - - 29 322,553  
Other liquid milk  30/11/21 to 31/12/21  225,701  8 5,476  
Dried shiitake  26/02/21 to 31/12/21  114,180  114 233,387  
Persimmon  07/10/21 to 31/12/21  26,970  - - 
Pork belly  - - 30 326,295  
2022 Rice 06/12/22 to 31/12/22  144,819  90 15,073,378  
Peanuts  25/03/22 to 31/12/22  302,353  9 5,027  
Garlic (dried garlic bulb, 
whole, cut, sliced, 
broken or in powder)  01/12/22 to 31/12/22  15,500  - - 
Chicken legs and wings  - - 488 12,473,036  
Other chicken cuts  - - 10 34,331  
Other liquid milk  05/09/22 to 31/12/22  1,656,958  - - 
Red beans  04/11/22 to 31/12/22  17,793  -  
Dried shiitake  21/02/22 to 31/12/22  175,564  154 275,161  
Persimmon  25/10/22 to 31/12/22  26,154  - - 
Pork belly  17/10/22 to 31/12/22  2,235,499  2 22,960  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  4.4 Brown rice trade and production, 2018 -21 
('000 metric tonnes)  
Brown rice  2018  2019  2020  2021  
Total imports  127.5  139.7  127.8  127.9  
 Imports by the AFA  79.9 81.8 69.9 86.2 
Total exports  74.5 112.5  264.2  227.6  
Local production  1,561.6  1,428.3  1,387.2  1,241.7  
Source:  Information provided by the authorities.  
4.15.  Chinese  Taipei has notified the Committee on Agriculture that no export subsidy programmes 
subject to reduction commitments were implemented during the 2018 -22 period.11 
4.16.  The COA continues to assist farmers in their global market expansion efforts by conducting 
and facilitating marketing programmes, supporting participation in overseas exhibitions, and building 
brand images. Export promotion initiatives cover a broad range of beneficiary products, including 
fish (tuna, grouper, and tilapia), orchids, tea, soya beans, and fruits (bananas and mangos). 
During  2018-22, the COA hoste d 29 agricultural product marketing events and provided support for 
participation in 5 4 international exhibitions and 137 sales promotion activities carried out overseas.  
4.17.  In July 2017, the COA established an agricultural single window to assist enterprises that 
intend to launch or expand operations in NSP partner economies. The single window offers 
information and services in various areas, including investment regimes, capital requi rements, 
technical support, trade, intellectual property rights, certification, and labour markets. The 
authorities indicate that the single window assisted 129 applicants during 2020 -22. 
4.18.  Export prohibitions remain in place for certain plant, animal, and f ish species and products 
thereof (Section  3.2.3). The authorities indicate that no new import or export prohibitions for 
agriproducts were introduced during 2018 -23. 
4.19.  Chinese  Taipei has concluded arrangements on the equivalence of organic agriproducts 
certification with Australia, Canada, Japan, New  Zealand, and the United  States.  
4.1.3   Domestic support measures  
4.20.  Chinese  Taipei's most recent domestic support notifications cover 2018 and 2019.12 The total 
Aggregate Measurement of Support (AMS) increased from TWD  9 billion in 2018 to TWD  9.4 billion 
in 2019. Total Green Box support also increased slightly from TWD  37.2 billion to TWD  37.6 billion 
over the same period. Rice continued to receive the most significant product -specific support, 
accounting for the bulk of t otal product -specific outlays in each year. The AMS's non -product -specific 
component expanded from TWD  1.8 billion in 2018 to TWD  3 billion in  2019. The increase was 
mainly driven by expenditures to subsidize the price of agricultural machinery. Notified 
non-product -specific support expenditures also included fertilizer freight subsidy, agricultural 
fertilizer price difference subsidy, waiver or reduction of fees for electricity used for agricultural 
production, fuel subsidy for agricultural machinery, inte rest subsidy, and livestock insurance subsidy.  
4.21.  Chinese  Taipei has notified to the Committee on Subsidies and Countervailing Measures 
several support programmes that were in place during the review period. A number of additional 
support programmes were also  implemented (Table  A4.1).  
4.22.  Financial support provided by Chinese  Taipei to the agriculture sector continues to follow 
various policy directions, targeting, inter alia, specific activities, particular crops (rice, sugarcane, 
and fruit), essential inputs, and farmers' finance and insu rance. The COA remains the main entity in 
charge of managing the provision of support funds to agricultural producers and controlling their 
compliance with relevant conditions. The Ministry of Economic Affairs (MOEA) and TSC, a 
 
11 WTO documents G/AG/N/ TPKM/170 , 22 January  2019; G/AG/N/TPKM/189 , 27 January  2020; 
G/AG/N/TPKM/198 , 25 January  2021; G/AG/N/TPKM/208 , 14 January  2022; and G/AG/N/TPKM/219 , 
19 January  2023.  
12 WTO documents G/AG/N/TPKM/206  and G/AG/N/TPKM/ 207, 12 January  2022.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  state-owned enterprise, admi nister the domestic support for sugar.  Agricultural subsidy funding, 
except for sugar, is approved annually by the COA and comes from its own budget.  
4.23.  The COA continues to make planned purchases of paddy rice from farmers at guaranteed 
prices for Chinese  Taipei's food security stock. Pursuant to the Food Administration Act, the reserve 
stock requirement for rice is set at no less than three  months' consumption (equivalent to 
about  300,000 metric tonnes).13 The authorities affirm that food security stocks are  mainly released 
through the provision of school lunches.  
4.24.  In response to the COVID -19 pandemic, the COA implemented a wide range of emergency 
measures aimed at minimizing the adverse impact on the agriculture sector and ensuring business 
continuity.14 The main relief measures included TWD  23 billion allocated for relief loans; subsidized 
interest payments and no processing fees for up to one year for severely impacted industries; 
flexibilization of loan terms; fully or partially subsidized interest payments  between 1  March  2020 
and 28  February  2021 on loan balances that were outstanding as of 15  January  2020; arrangements 
for the deferral of loan repayments; provision of living subsidies (TWD  10,000 -TWD 30,000) to 
farmers and fishers; operating cost subsidie s for eligible economic agents15; rent subsidies for 
fishers' associations renting space for direct sales of seafood; relief for recreational farms' water and 
electricity payments; and public forest land rent reduction or elimination. Stimulus measures 
implemented by the COA mainly took the form of marketing and sales promotion activities, as well 
as export incentives (seafood, fruit, and flowers) and incentives to adjust supply and warehousing 
to changes in consumption patterns. Visits to agricultural tour ism venues and forest recreation areas 
were encouraged through voucher and package eco -tour schemes.  
4.2  Mining and energy  
4.2.1   Mining  
4.25.  Mining and quarrying activities in Chinese  Taipei remain relatively modest, accounting for less 
than 0.1% of annual GDP throughout  the review period (Table  1.1). No significant changes were 
introduced to the relevant legal and institutional framework during the review period.  
4.2.2   Energy  
4.2.2.1   Overview  
4.26.  Chinese  Taipei's energy needs continue to be met essentially through imports, although 
import ed energy's share of the total energy supply decreased slightly from 98% in 2018 to 97.3% 
in 2022. Energy imports represented 18.1% of the total import bill in 2022, up from 17.6% in  2018. 
The energy supply matrix remains dominated by fossil fuels (Chart  4.1), with coal and natural gas 
being the inputs for most locally generated electricity. Renewable sources' combined share in total 
energy supply, albeit still modest, has been on the rise. All energy resources are imported by sea, 
as Chinese  Taipei's elect ricity grid remains without any overseas interconnections. The energy 
sector's resilience is also limited by ageing infrastructure and constrained opportunities for 
overseas  cooperation.  
 
13 Viewed  at: https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=M0030066 . 
14 Regulations for Relief and Revita lization Measures for Agriculture in Response to the Impact of Severe 
Pneumonia with Novel Pathogens of 12  March  2020.  
15 Eligible economic agents include fishing vessel owners, flower farmers, enterprises in the Pingtung 
Agricultural Biotechnology Park, ag riproduct trading businesses, farmers' and fishers' organizations, fisheries 
cooperatives, and fisheries companies.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 84 - 
 
  Chart  4.1 Total energy  supply by source, 2018 and 2022  
('000 kilolitres of oil equivalent)  
 
a Excluding exports, international marine bunker and international civil aviation supplies, and stock 
changes.  
Note:  Wherever applicable, figures in brackets indicate indigenous resourc es' respective share in total 
supply.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
4.27.  Ensuring an ample and steady energy supply is vitally important to Chinese  Taipei's economy, 
particularly the fast -growing and energy -intensive semiconductor industry. However, various 
segments, including electricity and natural gas, are yet to be fully opened to competition and the 
footprint of state -owned enterprises remains large. Electricity transmission, electricity distribution, 
and p iped fuel gas supply remain on Chinese  Taipei's negative list for inward 
investment  (Table  A2.2).  
4.28.  The MOEA's Bureau of Energy (BOE) remains the main entity in charge of formulating energy 
policy and implementing energy -related legislation; it also acts as the regulator of the electricity 
subsector. Its responsibilities include evaluating and planning energy supply and demand; granting 
authorizations for the exploration, production, transport, storage, transformation, import and 
export, distribution, marketi ng, and utilization of energy; reviewing natural gas and electricity prices 
and renewable energy feed -in tariffs; granting establishment permits to energy enterprises and 
overseeing their operations; and overseeing technical personnel in the sector.16 The Environmental 
Protection Administration is responsible for drawing up plans and regulations in the area of climate 
change adaptation, in collaboration with relevant ministries and agencies.  
4.29.  The energy sector remains governed mainly by the Energy Administra tion Act, the Petroleum 
Administration Act, the Natural Gas Enterprise Act, the Electricity Act, and the Renewable Energy 
Development Act. Following a referendum carried out in November  2018, the Electricity Act was 
amended on 22  May 2019 to abolish the pr ovision stipulating the decommissioning of nuclear power 
generation equipment by 2025.  
4.30.  In May  2019, an amendment of the Renewable Energy Development Act introduced local 
authorities' competence to support the reviewing process of renewable energy generatio n equipment 
(up to 2,000  kW capacity); new "conversion rules between feed -in tariffs and green power direct 
supply/wheeling"; incentives for power generation cooperatives, civil power plants established by 
residents of a community, and renewable energy pow er generation and energy storage facilities 
installed in indigenous areas; and a requirement that large electricity consumers either install 
renewable generation and storage facilities of a certain capacity or purchase a certain amount of 
electricity gener ated from renewable sources (verifiable by a certificate).17 The Natural Gas 
 
16 Viewed  at: https://www.moeaboe.gov.tw/ECW/english/co ntent/Content.aspx?menu_id=960 . 
17 Large consumers that fail to comply with the requirement must pay "monetary substitution" to the 
competent authority for the development of renewable energy.  
Chart 4.[Chinese Taipei]   Total energy supply by source, 2018 and 202 2
Source:  WTO Secretariat calculations, based on data provided by the authorities.Crude oil & petroleum 
products 43. 7%
(0.08% locally sourced)
Natural gas 1 9.1%
(0.06% locally 
sourced)
Coal & coal 
products 29.7%Renewable energy 2. 6%
(fully locally sourced)Nuclear fuel 4.9%Total supply:
140,240Crude oil & petroleum 
products 4 7.7%
(0.05% locally sourced)
Total supply:
147,174Natural gas 15. 4%
(0.12% locally
sourced)
Nuclear fuel 5.4%
Renewable energy 1.8%
(fully locally sourced)Coal & coal 
products 29. 7%
a   Excluding exports, international marine bunker and international civil aviation supplies, and stock changes.2018 2022
Total primary energy supplya:  
122,976Total primary energy supplya:
117,797Thousand kilolitres of oil equivalent
Note:  Wherever applicable, figures in brackets indicate indigenous resources' respective share in total supply.WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 85 - 
 
  Enterprise Act was amended in May  2020 to institute penalties for utility enterprises refusing to 
supply natural gas without proper justification.  
4.31.  In 2020, Chinese  Taipei enacted "Regulations for the Management of Setting up Renewable 
Energy Power Generation Equipment of Power Users above a Certain Contract Capacity" requiring 
large electricity consumers (those consuming more than 5,000  kW) to make certain in vestments in 
renewable energy generation or storage.  
4.32.  The Guidelines on Energy Development (2017) remain the principal policy document for the 
sector. The policy document envisions a smooth process of energy transition through balanced 
advances in the areas  of energy security, green economy, environmental sustainability, and social 
equity. Specific objectives under these four pillars include ensuring energy diversity; increasing 
energy efficiency; strengthening energy planning and management, and energy savi ng; enhancing 
energy storage and smart systems integration; reducing greenhouse gas (GHG) emissions; and 
establishing an energy market environment with fair competition.18 
4.33.  Energy policy continued to be influenced by the Greenhouse Gas Reduction and Managem ent 
Act (2015), which was superseded by the Climate Change Response Act on 15  February  2023. The 
new Act upgraded Chinese  Taipei's framework for GHG reduction and formalized its goal of 
transitioning to net -zero GHG emissions by 2050. Key innovations inclu de the introduction of a 
carbon pricing mechanism and a complementary incentive mechanism for emissions reduction.19 
Chinese  Taipei's plans for transitioning to net -zero GHG emissions include an energy transition 
strategy comprising three pillars (building  a zero -carbon energy system, enhancing infrastructure 
for system resilience, and promoting green energy innovation and investment) and 
nine action  areas.20 
4.34.  Under its Industrial Energy Technology Programme, the BOE offers subsidies to 
Chinese  Taipei -regist ered companies that seek to develop innovative energy technologies and 
enhance energy industries' specialization. Financial support may focus on the development, 
demonstration, and verification of frontier technologies, innovative applications, value -added  
products, or system integration in energy industries.21 The authorities indicate that the Industrial 
Energy Technology Programme had 139 beneficiaries during the 2018 -22 period. Outside this 
programme, the BOE also provides consulting assistance on GHG em ission management and 
emission verification subsidies to businesses. The subsidies may target inventory checks, voluntary 
reduction verifications, and offset programme verifications. In addition, Chinese  Taipei's Green 
Finance Action Plan seeks to catalyze  fundraising and investment in the green energy segment.  
4.2.2.2   Electricity  
4.35.  Between 2018 and 2022, Chinese  Taipei's total installed capacity expanded from 52,666  MW 
to 61,944  MW and generated electricity increased from 275,539  GWh to 288,154  GWh. Coal -fired 
power  plants continued to play a key role, although their respective shares of installed capacity and 
electricity generation decreased during 2018 -22. Over that period, the electricity generation portfolio 
shifted towards liquefied natural gas (LNG) -fired and r enewable energy power plants (Charts  4.2 
and 4.3). 
 
18 Viewed  at: https://www.moeaboe.gov.tw/ECW/main/content/wHandMenuFile.ashx?file_id=559 . 
19 Viewed  at: https://www.epa.gov.tw/eng/37CE8CA1532189C3 . 
20 Viewed  at: https://www.epa.gov.tw/DisplayFile.aspx?FileID=A3360AB964B4B8E1 . 
21 Viewed  at: https://www.moeaboe.gov.tw/ECW/english/content/Content. aspx?menu_id=8716 . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 86 - 
 
  4.36.  The electricity subsector comprises "Taipower" (TPC), nine independent power 
producers  (IPPs), and 79 producers for own consumption  (self-producers).22 TPC retains the 
exclusive right for electricity transmission and distribution; the company owns the power grid and is 
responsible for power system balancing. Meeting the statutory reserve margin (supply capacity 
exceeding peak demand by at least 15%) is the s hared responsibility of all market players that sell 
electricity to end -users.23 The authorities indicate that TPC makes continuous efforts to upgrade 
infrastructure and expand the electricity grid's coverage, with a focus on promoting renewable 
energy.  
4.37.  TPC also remains dominant in the electricity generation market, accounting for 55.8% of 
installed capacity and 67.9% of generated electricity in 2022, down from 63.4% and 69.0%, 
respectively, in 2018 (Charts  4.2 and 4.3).24 Since 2017, renewable energy produ cers can sell their 
electricity to consumers either directly or through TPC's grid (wheeling). Alternatively, they can sell 
it to TPC at guaranteed feed -in tariffs set annually through broad consultations convened by 
the MOEA.25 Non-renewable power produce rs are allowed to sell electricity only to TPC. All 
businesses that own electricity generation equipment must contribute to the Fund to Facilitate the 
Development of Electric Power.  
Chart  4.2 Installed electri city generation capacity, 2018 and 2022  
 
Note:  Shaded areas denote TPC's share of the respective resource.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
 
22 In March  2023, TPC, a fully state -owned enterprise,  carried out a capital increase in the amount of 
TWD 149.9  billion, which was fully subscribed by the MOEA.  
23 During 2018 -22, the actual reserve mar gin ranged between 10% and 16.8%. Viewed  at: 
https://ww w.taipower.com.tw/en/page.aspx?mid=4488&cid=2792&cchk=02060b9f -a45e-40f1-9d39-
627908bf9dbe#:~:text=The%20percentage%20of%20reserve%20margin,than%200.365%20day%20per%20
year. 
24 Pursuant to the Electricity Act, TPC must ens ure the accounting separation of its business lines to 
avoid any cross -subsidization and must unbundle its supply, transmission, and distribution operations 
during  2023-25. 
25 The feed -in tariff in force at the time of signing a power purchase contract with  TPC remains valid 
for 20 years . 
31.0%
4.2%
3.4%33.9%4.7%
Total:
61,944MWTotal: 
52,666 MW22.8%2018 2022
Total TPC:  34,587MW Total TPC:  33,415 MW
Pumped storage Thermal: coal -fired Thermal: oil -fired
TPC Renewable energy Thermal: LNG -fired Nuclear5.9%32.1%
36.7%4.9%11.9%8.6%WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 87 - 
 
  Chart  4.3 Generated electricity, 2018 and 2022  
 
Note:  Shaded areas denote TPC's share of the respective resource.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
4.38.  Chinese  Taipei has implemented a two -stage tendering system for the allocation of envisaged 
offshore wind energy generation capacity with a view to ensuring economic efficiency and minimizing 
the fiscal burden of guaranteed power purchase schemes. In the first stage, project developers must 
meet a score threshold, based on  their technical and financial capabilities and their plans to integrate 
into local supply chains by implementing an industrial relevance programme. The second stage is a 
price-based competitive auction. In case of identical price bids, project developers are ranked 
according to their scores on the optional industrial relevance criteria.  
4.39.  The Electricity Tariff Examination Council (ETEC) under the MOEA annually reviews and 
adjusts transmission and distribution tariffs implemented by TPC. TPC's tariff for whe eling is also 
subject to review and approval by the ETEC. To mitigate the economic impact of short -term 
fluctuations in electricity prices, an Electricity Price Stabilization Reserve absorbs any excess profits 
made by TPC and (upon ETEC approval) compensat es the company when its performance falls short 
of the reasonable profit margin.  
4.40.  Renewable energy generation equipment without a locally manufactured analogue remains 
eligible for import duty exemption, provided that its intended use is verified.26 During the review 
period, Chinese  Taipei implemented a Green Energy Roofs Project offering subsidies to local 
administrations to install rooftop photovoltaic power facilities. Subsidies were also made available to 
foundations, medical institutions, and schools th at wish to install a stationary fuel cell 
power -generation system (up to 500  kW capacity).27 
4.2.2.3   Hydrocarbons  
4.41.  Because locally extracted crude oil volumes remain very low, Chinese  Taipei must import 
virtually all of the crude oil that underpins its consumption of refined petroleum products. Oil and 
petroleum products remain subject to import licensing requirements28 and prior approval of each 
imported consignment. Importers must also be in possession of an establishment permit and an 
operation licence from the BOE.  
4.42.  Import duties on crude oil and petroleum products remain relatively low, with an average MFN 
applied ra te of 2.2%. Some 16 of the 38 tariff lines are duty -free, and the highest applied tariff rate 
 
26 Viewed  at: https://www.moeaboe.gov.tw/ECW/english/content/Content.aspx?menu_id=8711 . 
27 Viewed  at: https://www.moeaboe.gov.tw/ECW/english/content/Content.aspx?menu_id=8714 . 
28 WTO document s G/LIC/N/3/TPKM/7 , 22 August  2016; and G/LIC/N/3/TPKM/13 , 11 October  2022. 
1.5%8.3%
42.0%1.1%38.9%
Total:
288,154 GWhTotal: 
275,539 GWh8.2%2018 2022
Total TPC:  195,781 GWh Total TPC:  190,027 GWh
Pumped storage Thermal: coal -fired Thermal: oil -fired
TPC Renewable energy Thermal: LNG -fired Nuclear3.0%33.5%
47.6%1.2%4.6%10.0%WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 88 - 
 
  is 5% (Table  A3.1). In 2022, the combined value of petroleum imports amounted to 9.5% of the 
merchandise import bill. Chinese  Taipei's main suppliers of oil and p etroleum products were the 
Kingdom of Saudi  Arabia  (25.3%), the United  States (17.9%), the State  of Kuwait (16.7%), and the 
United  Arab Emirates (13.7%).  
4.43.  Chinese  Taipei's market for refined petroleum products remains divided essentially between 
CPC Corpora tion (CPC), a state -owned enterprise, and a private company. During the review period, 
CPC operated two refineries with a combined capacity of 600,000  barrels/day and the private 
company operated one refinery with a daily capacity of 540,000  barrels.29 Both companies export 
their excess production of refined petroleum products.30 Whereas exports of petroleum products are 
not subject to prior authorization or registration requirements, exporters of petroleum products must 
be approved by the BOE before commen cing business operations.  
4.44.  In May  2023, there were 236 companies with active gasoline and diesel wholesale licences, 
compared with 237 in 2018. CPC continues to dominate the retail market for petroleum products. 
At the end of 20 22, it had a network of 1,9 25 filling stations (including 1,3 02 owned by CPC 
franchisees) out of a total of 2,5 19 stations operating in Chinese  Taipei. CPC also operates aviation 
fuelling stations at all airports in Chinese  Taipei and has marine bunkering stations for international 
vessels at four ports. CPC's shares in total sales of gasoline, diesel, fuel oil, and aviation fuel were 
79.6%, 77.2%, 96.4%, and 60.3%, respectively.  
4.45.  The Petroleum Administration Act does not contain any provisions on price controls. The 
authorities indicat e that, in the past, the MOEA had proposed a price adjustment formula for locally 
sold gasoline and diesel to CPC, but the company has not been expected to adhere to it in its pricing 
decisions since August  2013. CPC's rivals in the gasoline and diesel mar kets are also free to make 
their pricing decisions independently.  
4.46.  Subsidies continue to be granted to ensure the supply of petroleum products in remote areas, 
reduce pricing differences between cities and rural areas, as well as to encourage the exploratio n 
and development of oil and natural gas reserves.  
4.47.  Pursuant to the Petroleum Administration Act, crude oil importers and refinery operators in 
Chinese  Taipei are required to maintain a security stockpile ensuring at least 60 days of supply. In 
addition, th e authorities must also maintain an oil security stockpile of at least 30 days of supply.31 
The security reserves are monitored through monthly reports from operators and periodic 
inspections by the BOE. Since 2018, importers of natural gas are also requir ed to maintain security 
stockpiles and to have a minimum level of storage capacity. The minimum stockpiles and storage 
capacity thresholds (expressed in terms of daily gas supply) are to be gradually raised from 7 and 
15 in 2019  to 14 and  24, respectively,  in 2027.32 
4.48.  Chinese  Taipei's modest natural gas production nearly halved during 2018 -21 (Chart  4.1). 
Accordingly, imports of LNG continued to account for the bulk of local consumption. The import duty 
on natural gas remains set at zero. In 2022, Chinese  Taipei's major LNG suppliers were 
Australia  (37%), Qatar (26%), and the United  States (11%). Demand for natural gas is set to grow, 
driven by the authorities' efforts to transition to less polluting energy sources.  
4.49.  CPC owns Chinese  Taipei's two operational L NG receiving terminals with a combined annual 
handling capacity of 1 6.5 million tonnes, giving it a de facto monopoly on natural gas imports. One  of 
these terminals is currently being expanded to meet rising demand for LNG. In addition, CPC has 
invested in  the construction of a third terminal (scheduled to come on stream in June  2025) and is 
expanding its extensive natural gas transmission and distribution network with a view to achieving 
 
29 Economist Intelligence Unit (2022), Industry Report: Energy . Viewed  at: 
http:// country.eiu.com/filehandler.ashx?issue_id=1742660557&mode=pdf . 
30 The authorities indicate that control of tanker loading/unloading facilities in Chinese  Taipei is divided 
nearly equally between the two companies.  
31 The s upply volume is calculated on the basis of the average local sales for the previous 12 months.  
32 Viewed  at: https://www.moeaboe.gov.tw/ECW/english/c ontent/ContentLink2.aspx?menu_id=  
965&sub_menu_id=8673 . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 89 - 
 
  island -wide coverage. Two additional LNG receiving terminals, owned b y TPC, are also being 
constructed.33 
4.50.  At March  2023, there were 25 utility companies (including CPC) supplying natural gas to 
about  3.9 million users in Chinese  Taipei. Wholesale and retail prices of natural gas are regulated by 
the MOEA, based on the princ iple of full -cost recovery and allowing for a reasonable profit margin. 
CPC reviews changes to the cost of importing LNG on a monthly basis and may directly modify local 
natural gas prices if the adjustment remains within a 3% range (month -on-month), or wi thin 
a 6% range (over a three -month period). Approval from the MOEA is required if these thresholds 
are to be exceeded.  
4.3  Manufacturing  
4.51.  Manufacturing remains a pillar of Chinese  Taipei's economy, accounting for 34.2% of GDP, 
26.4% of employment (Table  1.1), and 92% of merchandise exports in 2022.34 Manufacturing output 
expanded from TWD  15.7 trillion in 2018 to TWD  19.9 trillion in 2022. S ustained growth in the 
electronic parts and components subsector, notably the semiconductor industry, underpinned overall 
sector growth. Chemicals also remained a key subsector, although its share in total industrial output 
declined somewhat during 2018 -22 (Chart  4.4). Over the same period, Chinese  Taipei's exports of 
manufactured goods were dominated by electronic integrated circuits, which accounted for 41.7%  of 
total manufacturing exports in 2022. Other export categories included data processing machine parts 
and accessories, and automatic data processing machines.  
Chart  4.4 Industrial production, 2018 and 2022  
 
Source:  WTO Secretariat calculations, based on Industrial Production Statistics database, MOEA.  
4.52.  Chinese  Taipei is a global leader in the semiconductor chip industry, particularly in the 
production of the smallest, most efficient circuits. According to the authorities, Chinese  Taipei 
accounted for 26% of global semiconductor revenue in  2021 and had a much larger share (61%) of 
the global market for advanced semiconductor chips (below 16  nm).35 Maintaining a position at the 
cutting edge of the semiconductor industry requires continuous investment in research and 
development, and in attra cting specialized personnel.  
4.53.  The Industrial Development Bureau (IDB) within the MOEA remains responsible for industrial 
policy formulation. The overarching strategies for the manufacturing sector continue to be set out 
in Chinese  Taipei's mid -term developm ent plans. During the review period, the authorities sought 
 
33 Viewed  at: https://www.moeaboe.gov.tw/ECW/english/content/Content.aspx?menu_ id=8677 . 
34 The sector's share of merchandise exports is calculated on the basis of the SITC Rev.  3 classification.  
35 WTO document WT/DS615/3 , 5 January  2023.  
10.0%
7.7%
8.3%
4.6%
25.9%4.3%6.3%16.0%3.2%5.2%8.5%
Basic metals Fabricated metal products
Electrical equipment, machinery and equipment Transport equipment
Electronic parts and components Computers, electronic and optical products
Petroleum and coal products Chemicals
Rubber and plastics Food beverages and tobacco
Other manufacturingChart 4.[Chinese Taipei]   Industrial production, 2018 and 2022
Source:  WTO Secretariat calculations, based on Industrial Production Statistics database, MOEA.9.1%
8.0%
7.8%
4.9%
31.0%5.8%5.8%12.3%2.7%5.2%7.4%
Total:
TWD 19,884 billionTotal:
TWD 15,712 billion20182022WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 90 - 
 
  to address several challenges faced by the sector, including the prevalence of cross -strait links in its 
overall global value chains position, the need to reduce its GHG footprint, insufficient in vestment 
and innovation, and an ageing population. Accordingly, Chinese  Taipei's strategic priorities were 
focused on industrial upgrading ("5+2 Innovative Industries Plan" followed by the Six Core Strategic 
Industries Promotion Program), optimizing the st art-up ecosystem, stepping up digital 
transformation, strengthening digital infrastructure and governance, transitioning to low -carbon 
industrial production, and fostering the development of green industry.36 
4.54.  Overseas investment in certain manufacturing ac tivities remains prohibited or restricted 
(Section  2.4). Chinese  Taipei maintains a range of incentives aimed at encouraging industrial 
investment and technological upgrading (Section  3.3.1). The authorities also have a long -standing 
tradition of supportin g the creation of industrial clusters as a way of fostering the manufacturing 
sector's development. At end -2022, Chinese  Taipei had 13 Science Parks, 10 Technology Industrial 
Parks (formerly called Export Processing Zones), 214 industrial parks (including 83 managed by 
private -sector entities), and 2 industrial ports.37 The authorities indicate that the main industrial 
clusters include integrated circuits, optoelectronics, telecommunications, computers and peripherals, 
precision machinery, and biotechnology . 
4.55.  In 2023, tariffs on manufactured goods (HS  Sections  5-21) ranged from zero to 30% 
(Table  A3.1). As at the time of Chinese  Taipei's previous Review, the highest tariff protection was 
applied on certain tank lorries, winch trucks, and chassis for special p urpose vehicles (three tariff 
lines at 30%). In 2023, various large passenger vehicles, trucks for the transport of goods, and 
chassis continued to attract tariffs of 25% (29  tariff lines); certain motorcycles attracted tariffs 
of 20% (5  tariff lines).  
4.4  Services  
4.56.  In 2022, services accounted for 57.8% of GDP and 60% of employment, compared to 59.1% 
and 59.4%, respectively, in 2018. As at the time of the previous Review, the services subsectors 
making the biggest contributions to GDP are wholesale and retail tr ade (15.8%), real estate activities 
and ownership of dwellings (7.5%), and finance and insurance (6.4%) (Table  1.1). Chinese  Taipei 
recorded a narrowing services trade deficit during 2018 -19 and a widening surplus thereafter 
(Section  1.3). 
4.57.  Chinese  Taipei m ade no changes to its GATS commitments during the review period. An 
overview of these commitments has been given in previous Reviews.38 In its RTAs with Guatemala, 
New Zealand, and Singapore, Chinese  Taipei has undertaken preferential commitments on trade in 
services that, in many instances, constitute improvements over those contained in its GATS 
schedule.39 
4.4.1   Financial services  
4.58.  Chinese  Taipei's economic growth continues to be underpinned by its highly developed and 
resilient financial system, which offers a n ample set of financial products and services across 
banking, insurance, asset management, and capital markets. Financial and insurance activities' 
contributions to GDP and employment remained broadly stable throughout the review period, and 
stood at 6.4%  and 3.8%, respectively, in 2022 (Table  1.1). The authorities indicate that in  2022 
92.1% of adults had bank or post office accounts, 95.5% had made electronic payments, and 
73.2%  owned life insurance policies.  
4.59.  Total financial sector assets amounted to TWD  114.8  trillion in 2022, representing 506.6% of 
nominal GDP. Local banks remain a key pillar of the financial system, accounting for 55.1% of total 
 
36 Development Plan (2021 -2024). Viewed  at: 
https://www.ndc.gov.tw/en/Content_List.aspx?n=9649AD857AF274BA&upn=C5B71E23EEC92FCF .  
37 Viewed  at: https://www.moeaidb.gov.tw/ctlr?lang=1&PRO=publication.rwdPublicationList .  
38 WTO document s WT/TPR/S/165/Rev.1 , 10 October  2006; and WT/TPR/S/302/Rev.1 , 
18 December  2015.  
39 For a comparison between Chinese  Taipei's commitments on trade in services scheduled under its 
RTAs and the GATS, see WTO documents WT/REG297/1/Rev.1 , 17 July 2013, Table  4.2 for the RTA with 
Guatemala; WT/REG348/1 , 16 July 2014, Table  4.3 for the RTA with New  Zealand; and WT/REG350/1 , 
19 January  2015, Table  4.2 for the RTA with Singapore.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  assets in 2022, up from 53.7% in 2018. Life insurance companies' combined assets amounted to 
approximately 3 0% of total financial sector assets during the review period (Table  4.5). Many local 
banks belong to financial conglomerates that also own insurance companies and other financial 
services providers.  
Table  4.5 Financial system assets, 2018 -22 
(TWD  billion)   
2018  2019  2020  2021  2022  
Total assets, of which  91,159.2  96,770.3  104,066.4  109,561.8  114,832.1  
Banking segment  64,131.4  66,627.5  71,459.0  75,270.0  80,245.1  
Local banks  48,990.7  51,270.2  55,545.8  59,267.7  63,293.8  
Publicly owned banks  8,176.0  8,271.4  8,665.6  9,105.7  9,769.3  
Partially publicly  owned  15,645.7  16,465.0  17,920.0  19,481.5  20,245.4  
Overseas banks (local branches)  4,982.6  5,010.7  5,145.4  4,895.2  5,485.7  
Credit cooperatives  733.5  761.9  806.7  862.1  896.2  
Farmers' and fishers' associations  2,025.8  2,073.5  2,191.8  2,324.2  2,388.5  
Chunghwa Posta 6,384.7  6,506.6  6,664.0  6,867.6  7,141.3  
Bills finance companies  1,014.1  1,004.6  1,105.3  1,053.2  1,039.6  
Insurance segment  26,716.5  29,820.3  32,211.8  33,852.4  34,134.2  
Life insurers  26,322.0  29,392.0  31,752.0  33,343.0  33,623.0  
Local life insurers  25,928.0  28,914.0  31,259.0  32,803.0  33,266.0  
Publicly  owned life insurersb 1,087.0  1,162.0  1,231.0  1,273.0  1,300.0  
Non-life insurers  353.5  384.5  411.4  453.2  452.9  
Local non -life insurers  341.3  370.8  396.3  437.1  432.8  
Reinsurers  41.0 43.8 48.4 56.2 58.3 
Local reinsurers  37.3 39.2 42.7 49.5 50.3 
Securities and futures segment  311.3  322.5  395.6  439.4  452.8  
Securities finance companies  12.3 13.4 14.2 21.4 19.2 
Futures merchants  243.0  248.0  316.0  345.0  362.0  
Securities and investment trusts  56.0 61.1 65.4 73.0 71.6 
a Savings and remittances department.  
b Including Chunghwa Post's life insurance department.  
Source:  Information provided by the authorities . 
4.60.  The Financial Supervisory Commission (FSC) and the Central Bank (CBC) continue to share 
regulatory competences over the financial system. The FSC remains the competent authority 
responsible for s upervising, regulating, examining, and facilitating the development of financial 
markets and financial services. The CBC's remit includes, inter alia, promoting financial stability and 
sound banking operations, and maintaining an orderly foreign exchange market. A Financial 
Supervision Joint Committee, comprising representatives of the FSC, the CBC, the Bureau of 
Agricultural Finance, and the Central D eposit Insurance Corporation  (CDIC), convenes regularly to 
coordinate financial system supervision, regulation, and examination activities.40 
4.61.  During the review period, the FSC continued strengthening the risk management framework 
for financial services fir ms, expanded sustainability and governance disclosure requirements, and 
amended its guidelines on combating money  laundering and the financing of terrorism.41 The 
legislation governing electronic payments was consolidated in 2021 to allow payment instituti ons to 
expand their scope of business and conduct better risk management.  
4.62.  In response to the COVID -19 pandemic, the FSC adjusted several regulations governing the 
provision of financial services with a view to balancing business continuity and employees'  health 
and safety. The FSC also deferred the implementation of Basel  III prudential supervision criteria 
until 2024, thereby enabling banks to devote more resources to providing credit. In addition, the 
FSC allowed life insurers to provide low -interest loan s to economically disadvantaged policyholders, 
authorized the temporary deferral of automobile insurance premium payments, and expanded the 
list of insurance products that may be sold online.  
4.63.  In line with its mandate, the CBC took steps to keep credit flow ing, make borrowing more 
affordable for pandemic -hit SMEs, and stem excessive credit flows into the property market. Under 
a special accommodation facility, launched in April  2020 and adjusted several times, the CBC 
 
40 The CDIC is a subordinate entity of the FSC.  
41 In 2021, the FSC requested banks and insurers  to conduct stress tests to assess their exposure to 
risks arising from a low interest rate environment and the pandemic. The results indicated strong capital 
adequacy and risk -bearing capacities.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  provided liquidity to banks at preferent ial interest rates for onward lending to SMEs.42 Starting in  
December  2020, the CBC reinforced (in five rounds) selective credit control measures aimed at 
reining in lenders' real estate credit risk exposure. These measures were adjusted in March, 
Septembe r, and December  2021 to strengthen their effectiveness.  
4.64.  Under the NSP , Chinese  Taipei encourages local financial businesses to diversify their 
exposure to emerging Asian markets. The FSC has implemented several financial support measures 
to help local banks expand their overseas presence accordingly, including a "Programme to 
Incentivize Lending by Domestic Banks to Enterprises in Target Countries of the New Southbound 
Policy".43 During 2018 -22, the FSC approved 30 applications by local banks for the establishment of 
commercial presence in NSP markets. Over the same period, local banks' loans to borrowers 
from NSP economies totalled TWD  6.2 trillion.  
4.65.  In 2018, Chinese  Taipei established a regulatory sandbox for thematic financial technology 
experiments, followed by a business trials mechanism for banking, insurance, securities , and futures 
businesses in 2019.44 During the review period, successful experiments resulted in legislative 
amendments that provide for small -amount remittance services, fund swap services, and cost 
averaging investment services. The FSC also continued im plementing an open banking framework, 
issued guidelines for customer data sharing among financial institutions, and launched work on the 
development of a standardized mobile identity verification mechanism for the financial services 
market. For its part, t he CBC launched a feasibility study on a potential central bank digital 
currency  (CBDC). The research project's first phase (wholesale CBDC) was completed in June  2020 
and the second phase (retail payments) was completed in 2022 . 
4.4.1.1   Banking  
4.66.  As of April  2023, the banking segment comprised 38  locally incorporated banks, 31  local 
branches of overseas banks, 23  credit cooperatives, 311  credit departments of farmers' and fishers' 
associations, 8  bills finance companies, and Chunghwa Post Corporation, Ltd (CPC) (sav ings and 
remittances services).45 There were also 59  offshore banking units of local and overseas banks that 
only handle transactions in non -local currencies. In 2019, the FSC approved the establishment of 
three Internet -only banks, and they launched opera tions between December  2020 and 
March  2022.46 Besides CPC, which has the largest network of branches, three commercial banks 
remain fully publicly  owned. In addition, six other banks remain partially publicly  owned.  
4.67.  During the review period, the banking se gment's total deposits and loans grew steadily, partly 
driven by relief and revitalization measures implemented by the authorities in response to the 
COVID -19 pandemic. Locally incorporated banks (excluding the postal savings bank) continue to 
account for the bulk of banking segment deposits and loans, whereas local branches of non -local 
banks and credit cooperatives still play minor roles (Table  4.6). Accordingly, most non -performing 
loans also remain concentrated in locally incorporated banks. The ratio o f non-performing loans to 
total bank loans remained very low throughout the review period. The authorities indicate that the 
top three banks accounted for 22.3% of banking segment deposits in  2022, down from 23.2%  
in 2018.  
 
42 Commercial banks were allowed to accept SME loan applicat ions under the facility until 
31 December  2021. SME loans granted were eligible for the facility's preferential interest rates until 
30 June 2022. In June  2021, the maximum loan amount for individual small -scale businesses was raised from 
TWD 0.5 million t o TWD  1 million. The authorities indicate that the facility resulted in 306,981 approved loan 
applications with a total disbursed amount of TWD  503.6  billion.  
43 Viewed  at: https:/ /www.banking.gov.tw/en/home.jsp?id=243&parentpath=0,241 . 
44 At end -March  2023, the FSC had approved 64 experimentation and business trial applications.  
45 The authorities consider the Agricultural Bank, CPC (savings and re mittances department), and 
farmers' and fishers' associations as being outside the banking system because they are not regulated by 
the FSC. 
46 Internet -only banks are subject to the same minimum paid -in capital requirement as conventional 
banks (TWD  10 billion). In addition, at least 25% of the Internet -only bank's paid -in capital must be held by a 
bank or financial holding company and total shareholding by financial institutions should exceed 40%.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  4.6 Banking segment indicators, 2018 -22 
 
2018  2019  2020  2021  2022  
Deposits (TWD  billion), of which  40,432  42,842  46,908  50,451  54,830  
Local banks (%)  95.8 95.3 95.5 96.4 95.5 
Publicly  owned banks (%)  16.4 15.3 14.6 14.2 14.1 
Overseas banks (local branches) (%)  2.5 3.1 2.9 2.0 3.0 
Credit cooperatives (%)  1.7 1.6 1.6 1.6 1.5 
Loans (TWD  billion), of which  30,463  31,759  33,462  35,747  38,824  
Local banks (%)  93.7 93.5 94.0 94.2 94.4 
Publicly  owned banks (%)  15.4 15.3 15.5 15.0 15.3 
Overseas banks (local branches) (%)  4.8 5.0 4.4 4.3 4.1 
Credit cooperatives (%)  1.6 1.6 1.6 1.5 1.5 
Non-performing loans (TWD  billion), of which  69.1 64.2 70.2 59.7 55.1 
Local banks (%)  99.1 99.1 98.5 98.5 99.2 
Publicly  owned banks (%)  13.5 13.2 11.1 10.2 10.2 
Non-performing loans/bank loans (%)  0.23 0.20 0.21 0.17 0.14 
Non-performing loans/bank loans, local banks (%)  0.24 0.21 0.22 0.17 0.15 
Interest rate spreada, local banks (percentage point)  1.34 1.32 1.23 1.24 1.32 
Interest rate spreada, overseas banks (local branches)  
(percentage point)  0.47 0.54 0.62 0.75 0.89 
a Interest rate spread calculations are based on the weighted average interest rates on loans and 
deposits.  
Note:  The data exclude the Agricultural Bank, CPC  (savings and remittances department), and farmers' 
and fishers' associations.  
Source:  FSC. 
4.68.  No significant changes were introduced to market access conditions in the banking sector 
during the review period. Overseas banks must establi sh commercial presence and obtain a business 
licence (like locally incorporated banks) from the FSC to provide services in Chinese  Taipei.47 Locally 
incorporated banks and local branches of overseas banks must comply with the same minimum 
capital adequacy ratios and paid -in capital requirements. Unlike local branches of overseas banks, 
locally incorporated banks must also comply with a liquidity coverage ratio requirement.48 To conduct 
retail deposit business, an overseas bank's local branch typically needs  to have operating capital of 
at least TWD  250 million. Banks wishing to conduct forex -related business or to establish an offshore 
banking unit must obtain approval from the CBC. Overseas investment in postal savings and 
remittance services (except small -amount remittance services for migrant workers) remains 
prohibited (Section  2.4). 
4.69.  During the review period, the FSC introduced several amendments to the regulatory 
framework to provide banks with more flexibility, notably in the acquisition of corporate bo nds issued 
by an overseas banking subsidiary and the wealth -management services they may offer to their 
customers. The FSC also implemented programmes aimed at fostering lending to SMEs and to 
enterprises in key innovative industries and the six core strat egic industries identified by the 
authorities.  
4.70.  Unless exempted, deposit -taking financial institutions must participate in the deposit 
insurance programme administered by the CDIC. The maximum amount covered by the CDIC in the 
event of bankruptcy of a finan cial institution is TWD  3 million per depositor.  
4.4.1.2   Insurance  
4.71.  As of December  2022, Chinese  Taipei's insurance segment comprised 23  locally incorporated 
life insurers (including CPC's life insurance department), 3  branches of overseas life insurers, 
17 locally  incorporated non -life insurers, 6  branches of overseas non -life insurers, 1  locally 
incorporated reinsurer, and 2  branches of overseas reinsurers. There were also 20  offshore 
 
47 Establishing a representative office in Chinese  Taipei is also subject to FSC approval. The permissible 
activities of a representative office are limited to collecting commercial and market information and business 
liaison.  
48 As from January  2019, local b anks are required to maintain a liquidity coverage ratio (calculated by 
dividing a bank's high -quality liquid assets by its total net cash flows over a 30 -day period) of at least 100%. 
An overseas bank applying to establish a branch office in Chinese  Taipe i must specify the liquidity risk 
management framework adopted by the head office and the liquidity risk management measures applicable to 
the Chinese  Taipei branch.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  insurance units that are not allowed to handle TWD -denominated transactions. Sal es via bank 
branches and insurance agents remain the dominant distribution channels. In 2022, the FSC allowed 
Internet -only banks to concurrently carry out insurance broker and insurance agent business, and 
began receiving applications for establishment of  Internet -only insurance companies.49 
4.72.  Two life insurers, including CPC's life insurance business, remain fully publicly owned. One 
reinsurer is partially publicly owned, and three other non -life insurers have indirect public 
participation. The authorities indicate that publicly owned insurers accounted for 3.8% of total assets 
and 4.4% of premium income in the life insurance market in 2022. The corresponding figures for 
non-life insurers with public participation were 15.9% and 13.5%, respectively. The part ially publicly 
owned reinsurer accounted for 86.2% of total assets and 74.6% of premium income in the 
reinsurance market.  
4.73.  The insurance segment's total premium income declined during 2018 -22, reflecting a steady 
decrease in life insurance premiums. Life in surance density and penetration indicators were also on 
a downward trend during that period. Nevertheless, life insurance continued to account for the bulk 
of insurance segment premiums. Market concentration, as measured by the top 
five insurers'  respectiv e shares of total premium income, remained above 60% in both the life and 
non-life insurance industries (Table  4.7). 
Table  4.7 Insurance segment indicators, 2018 -22 
 
2018  2019  2020  2021  2022  
Premium income (TWD  billion), of which  3,677  3,644  3,352  3,179  2,556  
Non-life insurers (%)  4.5 4.9 5.6 6.5 8.7 
Life insurers (%)  95.5 95.1 94.4 93.5 91.3 
Non-life insurance market concentrationa (%) 61.4 61.4 61.3 61.3 61.5 
Life insurance market concentrationa (%) 66.2 67.3 68.2 64.6 63.9 
Insurance densityb (TWD)  155,886  154,379  142,271  135,981  109,848  
Non-life insurance densityb (TWD)  7,021  7,505  7,984  8,875  9,508  
Life insurance densityb (TWD)  148,865  146,874  134,287  127,106  100,340  
Insurance penetrationc (%) 20.7 19.3 17.0 14.7 11.3 
Non-life insurance penetrationc (%) 0.9 0.9 1.0 1.0 1.0 
Life insurance penetrationc (%) 19.8 18.3 16.0 13.7 10.3 
a Market concentration is defined as the combined premium income of the top five non -life (life) 
insurers as a share of the non -life (life) insurance industry's total premium income.  
b Insurance density is defined as gross written premiums per capita.  
c Insurance penetration is defined as total gross writ ten premiums as a percentage of GDP.  
Source:  FSC. 
4.74.  The main legislation governing insurance activities, the Insurance Act, was amended in 
May 2021 to strengthen insurers' risk -bearing capacity and to guide them to invest their funds in 
certain undertakings. Key changes include adopting the net worth ratio as an additional supervisory 
indicator, raising the cap on insurers' investments in local corporate bonds, and enabling insurers to 
invest in certain non -guaranteed commercial paper and in priv ate equity funds. During the review 
period, amendments were also made to the regulations governing insurers' real estate and overseas 
investments, and the use of insurers' funds in special projects, public utilities, and social welfare 
enterprises. In 2018 , Chinese  Taipei capped insurers' overseas investments, including in locally 
issued non -TWD-denominated bonds, to 65.3% of total funds.  
4.75.  No significant changes have been introduced to market access conditions in the insurance 
segment since Chinese  Taipei's previous Review.50 An insurer may not commence operations unless 
it has received permission from the FSC, completed establishment registration, posted bond (equal 
to 15% of the paid -in capital), and obtained a business licence. Overseas insurers must establish a 
local branch office with a paid -in capital of at least TWD  50 million. Representative offices of overseas 
insurers are prohibited from solicitation activities. Local insurers and local branches of overseas 
insurers are subject to the same statu tory limits and approval requirements on their lending and 
 
49 At least 40% of an Internet -only insurer's equity must be owned by financial institution s, with at least 
25% being held by a life insurer or a financial holding company with an insurance unit. Statutory paid -in capital 
requirements for Internet -only life and non -life insurers are set at TWD  2 billion and TWD  1 billion, 
respectively. Internet -only insurers are subject to the same regulations as conventional insurers.  
50 WTO document WT/TPR/S/377/Rev.1 , 6 March  2019.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  investment activities. An overseas insurer cannot promote its products or insure risks located in 
Chinese  Taipei from a head office or a branch outside Chinese  Taipei.  
4.76.  In general, life and non -life insurers are regulated in the same manner.51 Insurers must not 
concurrently engage in life and non -life insurance business, although the FSC may authorize a 
non-life insurer to offer personal injury or health insurance.  
4.77.  Liability insurance remains compuls ory for owners of motor vehicles in Chinese  Taipei. During 
the review period, the Compulsory Automobile Liability Insurance (CALI) Act was amended to also 
cover owners of electric two -wheel mini vehicles52 and to lessen the financial burden of policyholder s 
who have purchased more than one CALI policy. CALI premiums are regulated and reviewed every 
year by the FSC.53 CALI accounted for about 8.41% of total non -life insurance industry premiums 
in 2022.  
4.4.1.3   Capital market  
4.78.  Chinese  Taipei's capital market comprises  the "Taiwan Stock Exchange" (TWSE), the Taipei 
Exchange  (TPEx), and the "Taiwan Futures Exchange"  (TAIFEX). Besides stocks, the TWSE and TPEx 
provide platforms for trading, inter alia, bonds, commercial paper, depository receipts, 
exchange -traded funds, e xchange -traded notes, beneficiary securities, warrants, and derivatives. 
The TAIFEX provides a platform for investing in futures and options contracts.  
4.79.  In December  2022, securities services providers in Chinese  Taipei comprised 12 1 securities 
firms (includ ing 16 non -local), 85  brokers (16 non -local), 82  dealers (9 non -local), 69  underwriters 
(10 non -local), 38  securities investment trust enterprises (18 non -local), and 8 6 securities 
investment consulting enterprises (9 non -local). On the futures market, the re were 17  futures firms 
(1 non-local), 26  concurrently operated enterprises (1 non -local), 30  proprietary traders, 28  brokers 
(1 non-local), 33  futures advisory enterprises, 5  managed futures enterprises, 42  introducing 
brokers, and 9  futures trust enterp rises.  
4.80.  During the review period, company listings and market capitalization on both the TWSE and 
the TPEx maintained an upward trend. Apart from a pandemic -related contraction in 2019, annual 
equity trading volumes also rose considerably, indicating ample stock market liquidity (Table  4.8). 
Table  4.8 Stock market indicators, 2018 -22 
 
2018  2019  2020  2021  2022  
TWSE  
Listed companies (number)  928 942 948 959 971 
Capital issued (TWD  billion)  7,159  7,156  7,238  7,385  7,500  
Market value (TWD  billion)  29,319  36,414  44,904  56,282  44,266  
Stock trading value (TWD  billion)  29,609  26,465  45,654  92,290  56,081  
Net overseas investment in traded shares (TWD  billion)  -355 244 -609 -450 -1,090  
TPEx  
Listed companies (number)  766 775 782 788 808 
Capital issued (TWD  billion)  739 747 742 761 742 
Market value (TWD  billion)  2,827  3,434  4,352  5,782  4,424  
Stock trading value (TWD  billion)  8,146  7,608  12,087  20,276  14,879  
Net overseas investment in traded shares (TWD  billion)  -13 26 9 -49 -53 
Unlisted companies  
Number  672 677 708 747 785 
Capital issued (TWD  billion)  1,509  1,484  1,376  1,458  1,400  
Source:  FSC. 
 
51 Life insurance comprises life, accident, health, and annuity insurance. Non -life insurance comprises 
various types,  including fire, marine, automobile, aviation, engineering, liability, and credit.  
52 Electric -powered vehicles with a maximum speed of 25  km/hour, weighing 40  kg or less without a 
battery or 60  kg or less with a battery.  
53 The FSC works in conjunction with  the MOTC on technical matters, such as the range of vehicles 
subject to compulsory insurance, definitions of accident, and the penalizing and handling of uninsured vehicles.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  4.81.  In July  2021, in line with the authorities' industrial policy objectives, the TWSE and the TPEx 
established new stock boards within their respective frameworks to offer dedicated fundraising 
channels to start -ups. Besides expanding the scope of Chinese  Taipei's capital market, this initiative 
is aimed at fostering the development of innovative businesses, thereby accelerating industry 
transformation. During the review period, the TPEx also took steps to facilitate the development of 
a market for sustainable  bonds.  
4.82.  Chinese  Taipei's strategy for developing its capital market has, for a long time, focused on 
facilitating the issuance of non -TWD-denominated bonds and the local listing of 
overseas -incorporated companies through initial public offerings or seconda ry listings. The stock of 
outstanding non -TWD-denominated bonds issued in Chinese  Taipei by overseas entities reached the 
equivalent of TWD  5,931  billion in 2022, up from TWD  4,541  billion in 2018. At the end of 2022, 
86 overseas -incorporated companies wit h a combined market capitalization of TWD  1,477.6  billion 
were listed on the TWSE; the respective figures for the TPEx were 31 and TWD  128.95  billion.  
4.83.  In 2019, the FSC adopted regulations enabling the issuance of non -TWD-denominated sukuk 
(Islamic bonds). During the review period, regulatory framework amendments expanded securities 
firms' scope of business, including by enabling them to accept orders to trade in closed -end funds 
and overseas securities, issue exchange -traded notes, and engage in third -party trust business. The 
FSC also issued regulations enabling the use of up to 25% of repatriated offshore funds for 
investment in financial instruments.  
4.84.  The Securities and Exchange Act remains the main law governing Chinese  Taipei's capital 
market. Overseas -incorporated companies planning to be listed on the TWSE or the TPEx must 
ensure that their articles of incorporation conform to the Company Act's provisions on share 
issuance, shareholders' meetings, minority shareholder protection, and directors' duties a nd 
responsibilities. The statutory requirements for admission to perform professional activities on 
Chinese  Taipei's securities and futures markets remained unchanged during the review period.54 
Overseas firms may establish subsidiaries, branches, and repr esentative offices. Minimum paid -in 
capital thresholds apply uniformly to locally incorporated and non -local firms, and there are no 
ownership restrictions.  
4.4.2   Telecommunications services  
4.85.  Total telecommunications services revenue declined from TWD 317.5  billion in 2018 to 
TWD 276.5  billion in 2021 but preliminary data point to a partial recovery in 2022. Mobile 
communications remained the main revenue earner throughout the review period, followed by 
fixed- line data. Mobile telephony and fixed a nd mobile broadband penetration rates maintained an 
upward trend, whereas fixed -line telephony subscriptions continued to decrease (Table  4.9). 
Table  4.9 Telecommunications market indicators, 2018 -22 
 
2018  2019  2020  2021  2022a 
Subscriptions per 100 inhabitants (%)  
Fixed -line telephony  55.5 54.6 54.1 53.6 .. 
Mobile telephony  123.7  123.2  124.6  127.0  .. 
Fixed -line broadband  24.1 24.5 25.3 27.1 .. 
Mobile broadband  111.0  114.8  117.2  119.3  .. 
Number of active providers  
Fixed -line telephony  4 4 4 4 4 
Mobile telephony  5 5 5 5 5 
Fixed -line broadband  121 113 93 66 51 
Mobile broadband  5 5 5 5 5 
Telecom services revenue (TWD  billion), of which  317.5  298.7  282.7  276.5  285.1  
Mobile communications  176.1  162.1  153.7  155.0  160.9  
Fixed -line telephony  45.8 41.7 36.7 34.6 32.8 
Fixed -line data  89.9 88.6 86.0 80.7 85.1 
.. Not available.  
a Preliminary data.  
Source:  NCC. 
 
54 WTO document WT/TPR/S/377/Rev.1 , 6 March  2019.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  4.86.  The incumbent telecommunications operator, Chunghwa Telecom Corporation Ltd (CTC), is 
partially publicly  owned and remains the dominant player in fixed -line markets (telephony, 
broadband, and multimedia on demand). The company also has the highest market s hare (38.9% 
in 2021) in the mobile communications market (Table  3.13) and is a major submarine cable operator 
in Chinese  Taipei.  
4.87.  During the review period, noteworthy developments in Chinese  Taipei's telecommunications 
market included the discontinuation of 3G mobile services in December  2018, the launching of 
5G services in 2020, the release of spectrum for next -generation satellite communications services 
in March  2022, and market consolidation (pending FTC clearance) that would reduce th e number of 
mobile operators from five to three in the near future.  
4.88.  The Ministry of Transportation and Communications (MOTC) remains responsible for 
overarching policy formulation, and the NCC remains the telecommunications sector's regulator. The 
Ministry  of Digital Affairs (MODA), established in August  2022, is responsible for coordinating and 
advancing Chinese  Taipei's digital development. MODA's remit includes formulating digital 
development and cybersecurity strategies, strengthening communications net work resilience, 
ensuring that digital resource allocation meets public interests, and enhancing digital services and 
digital governance. MODA's responsibilities include implementing equal access and number 
portability services, allocating and assigning te lecommunications resources (including radio 
frequency spectrum and telecommunications numbers), and improving universal 
telecommunications service.  
4.89.  Chinese  Taipei's main telecommunications law, the Telecommunications Act, was replaced by 
the Telecommunicat ions Management Act on 1  July 2020.55 The authorities indicate that the new 
law is intended to encourage technological innovation, lower entry barriers, and ensure a level 
playing field in the sector. Under the new legal framework, registration with the NC C is mandatory 
only for operators that provide telecommunications services through the public switched 
telecommunications network (PSTN), which requires the use of public resources (frequency or 
numbering), or have interconnections with other telecommunica tions operators.56 Registered 
operators may provide telecommunications services by setting up their own networks or using 
existing third -party networks.57 The deployment of telecommunications networks not intended for 
own use is subject to prior approval b y the NCC.58 As such, telecommunications network owners are 
not necessarily registered telecommunications service providers (operators).  
4.90.  Only locally incorporated companies and local branches of overseas companies may register 
with the NCC as telecommunica tions operators and/or apply for network deployment approval.59 A 
network owner must be incorporated as a limited liability company and the chairperson of its board 
of directors must be from Chinese  Taipei. Statutory limits on direct and indirect overseas 
shareholding in any company that owns and runs a telecommunications network remain unchanged 
(Table  A2.2).  
4.91.  A separate licensing mechanism remains in place for the allocation of spectrum for public 
telecommunications services. Mobile spectrum licences are a llocated through a two -stage auction 
process among NCC -approved telecommunications network owners for exclusive use by their 
respective mobile networks. The Telecommunications Management Act introduced the possibility of 
frequency transfer and/or sharing a rrangements among licence holders  or with other operators , 
subject to MODA's prior approval. In May  2022, the NCC approved frequency sharing and swap 
arrangements between some licensees.60 
 
55 Telecommunications companies are also subject to relevant provisions of the Personal Data Protection 
Act and the Cybersecurity Management Act.  
56 Enterprises that have obtained a radio frequency franchise licence or an operation licence in 
accordance with the Telecommunications Act must register with the NCC by 1  July 2023.  
57 There is no statutory requirement for structural or functional separation between a company's 
network and telecommunications service activities.  
58 The NCC must carry out an onsite insp ection before allowing a newly deployed network to begin 
operations.  
59 Registrations and approvals have unlimited validity.  
60 Regulatory authority over spectrum licensing, as well as spectrum transferring and sharing, was 
passed from the NCC to MODA in Aug ust 2022. WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  4.92.  Pursuant to the new legal framework, the NCC can designate certain telecommunications 
services markets as regulated markets, determine the dominant companies therein, and implement 
relevant control measures. Regulatory controls apply only to companies with significant market 
power (SMP) and comprise the following requirem ents: (i)  disclosure of information on 
interconnection, network access components, and use of their telecommunications infrastructure; 
(ii) compliance with fair, reasonable, and non -discriminatory principles in interconnection 
agreements; (iii)  preparation  of template agreements (interconnection and access to network 
components or relevant infrastructure) and submission for NCC approval; and (iv)  accounting 
separation of different services. The NCC also regulates the fees set by telecommunications 
companies  with SMP and may enforce a limit on their adjustment.61 
4.93.  In April  2022, the NCC designated fixed -line voice retailing, fixed -line broadband retailing, 
fixed-line wholesale services, fixed -line voice termination services, and mobile voice termination 
servic es as regulated markets. In May  2023, the NCC determined that CTC has SMP in all of these 
designated markets. The NCC also deemed that SMP was held by three other companies in the 
fixed-line voice termination services market and four other companies in the  mobile voice 
termination services market.  
4.94.  MODA administers the allocation and assignment of telecommunications numbers in 
Chinese  Taipei. Only NCC -approved public telecommunications network owners are qualified to apply 
for the assignment of numbers. Tele communications numbers , except for subscriber numbers,  
cannot be leased or lent and can be transferred only in the framework of subscriber number 
portability.  
4.95.  Universal service obligations in Chinese  Taipei cover voice -based public payphone services, 
as we ll as Internet access and voice -based telephone services in remote areas. MODA may designate 
as universal service providers one or more registered telecommunications operators or companies 
deploying fixed or mobile telecommunications networks. The selectio n is based on a competitive 
process. Universal service provision is financed by annual contributions from registered 
telecommunications operators whose annual revenue generated from telecommunications services 
exceeds a prescribed threshold.  
4.96.  The authoritie s indicate that proceeds from the 5G spectrum licences auction carried out 
in 2020 have been used to accelerate 5G infrastructure rollout and reduce the digital divide between 
urban and rural areas. Under Chinese  Taipei's Forward -looking Infrastructure Dev elopment Program, 
MODA is to allocate approximately TWD  225 million per year until 2025 to support 
telecommunications operators' infrastructure deployment efforts in remote areas. The authorities 
indicate that telecommunications operators built 154 mobile broadband base stations in  2022, 
exceeding the programme's target (95 stations).  
4.97.  Controlled telecommunications radio -frequency equipment, whether used in the deployment 
of networks or by end -users, requires type  approval  by the NCC before it can be manufac tured in or 
imported into Chinese  Taipei. Import approval certificates are valid for one or two years, depending 
on the device's characteristics; importation of subsequent consignments requires a separate 
approval certificate. Manufacturers, importers, and  owners of devices exceeding a certain power 
threshold must report on the devices' flow, purpose, and status.62 Type approvals issued in overseas 
jurisdictions may be recognized as equivalent to NCC approvals within the scope of a mutual 
recognition arrang ement signed by Chinese  Taipei.  
4.4.3   Transport  
4.98.  Chinese  Taipei's geography underpins maritime transport's position as an essential lifeline for 
external merchandise trade. Throughout the review period, approximately 93% of annual overseas 
freight traffic was tra nsported by sea. The bulk of overseas passenger traffic remains airborne. The 
 
61 NCC, Regulations Governing the Fees of Telecommunications Enterprises with Significant Market 
Power, 26  November  2020.  
62 NCC, Administrative Regulations on Manufacturing, Import and Reporting of Controlled 
Telecommunications Radio -Frequency Dev ices, 19  November  2021.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  outbreak of the COVID -19 pandemic triggered declines in both overseas freight and passenger 
movements during 2020 -22, with the latter decline being most pronounced.63 
4.99.  No signific ant changes were introduced to the relevant institutional framework during the 
review period. The MOTC, through various subordinate bodies, remains responsible for policy 
formulation, regulation, and oversight of all transport modes.64 
4.100.   Chinese  Taipei's str ategic priorities for the transport sector are set out in its 18th mid-term 
development plan (NDP  2021-2024). The principal focus areas include (i)  expanding and upgrading 
the railway network; (ii)  completing the construction of backbone highways and expre ssways; 
(iii) accelerating airport development and improving air transport services; (iv)  enhancing harbours' 
competitiveness and navigation safety performance; and (v)  promoting smart transportation 
technology.65 
4.4.3.1   Maritime transport  
4.101.   The Maritime and Port Bureau (MPB) continues to act as Chinese  Taipei's regulator (shipping 
administration authority) of maritime transport. The MPB has wide -ranging responsibilities, spanning 
strategic planning, maritime affairs, vessel management, port affairs, maritime labour affairs, and 
maritime safety. Its remit includes the supervision of ocean freight alliance organizations' operations 
and the handling of ocean freight -related consumer protection disputes.66 The MPB also manages 
the operations of some ports and publ ic infrastructure therein.67 
4.102.   Chinese  Taipei's seven international commercial ports, as well as two domestic commercial 
ports, continue to be managed by "Taiwan International Ports Corporation" (TIPC), a state -owned 
enterprise. TIPC coordinates the operatio ns of its subordinate ports to maximize overall port -group 
strengths and compete cooperatively for new business, with a view to strengthening Chinese  Taipei's 
status as a shipping hub. All companies, regardless of their origin, may participate in public te ndering 
processes to operate port terminals. In 2023, there were six non -local companies operating 
terminals at Chinese  Taipei's international ports, up from three in  2018.  
4.103.   All vessels entering Chinese  Taipei's international commercial ports must use towag e 
assistance. The use of pilotage services is compulsory in all of these ports, except for exempted 
vessels.68 The authorities indicate that towage assistance and bunkering services are, in principle, 
open to competition. Expatriates are not admitted to ex aminations for the licensing of pilots.  
4.104.   The main legislation governing maritime transport comprises the Shipping Act, the Law of 
Ships, the Ship Registration Law, the Commercial Port Law, the Pilotage Law, the Seafarer  Act, and 
the Aids to Navigation Act. The Law of Ships was amended in November  2018, with a view to 
strengthening ship safety management and reassigning relevant inspection responsibilities to 
the MPB. 
4.105.   The conditions and requirements for registering vessels, as well as Chinese  Taipei's applied  
regime on overseas investment in maritime transport, remained unchanged during the review 
period.69 Engaging in sea transportation as a vessel carrier remains subject to MOTC approval. 
Overseas vessel carriers must either establish a branch office in Chin ese Taipei or commission a 
local shipping agency to handle passenger and cargo transportation affairs on their behalf.70 
 
63 Viewed  at: https://www.motc.gov.tw/en/app/statistics501.jsp?lang=en&folderName=en&id  
=610&parentpath=0%2C154 . 
64 The MOTC's internal structure and affiliated bodies can be viewed at: 
https://www.motc.gov.tw/en/app/artwebsite?module=artwebsite&id=31 5&serno=null . 
65 NDP 2021 -2024. Viewed  at: 
https://www.ndc.gov.tw/en/Content_List.aspx?n=9649AD857AF274BA&upn=C5B71E23EEC92F CF. 
66 Vessel carriers operating in Chinese  Taipei that wish to participate in concerted cargo or passenger 
rate setting activities must obtain the MPB's approval. If anti -competitive concerns arise, the MPB will 
intervene  in coordination with the FTC to remedy the situation.  
67 A detailed overview of the MPB's responsibilities can be viewed at: 
https://www.motcmpb.gov.tw/En/Article?siteId=2&nodeId=100 10. 
68 Pilotage Law, Article  6. 
69 WTO document WT/TPR/S/377/Rev.1 , 6 March  2019.  
70 The prescribed minimum operational funds threshold for the purposes of branch establishment is 
TWD 12 million.  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Overseas investment in a Chinese  Taipei -registered vessel carrier remains limited to 50% of the 
company's capital.  
4.106.   Overseas ownership o f a Chinese  Taipei -registered vessel, through a limited company, is 
restricted to less than 50% of the company's capital; the director authorized to represent the 
company must be a natural person from Chinese  Taipei. Cabotage services remain reserved for 
Chinese  Taipei -registered vessels unless a franchise is granted to an overseas -registered vessel. The 
employment of overseas seafarers on Chinese  Taipei -registered vessels must be approved by 
the MPB, subject to economic needs tests.  
4.107.   In December  2022, there  were 166 vessel carriers and 317 vessels with cumulative gross 
tonnage of 4,773,765 tonnes registered in Chinese  Taipei, compared to 166 carriers and 283  vessels 
with gross tonnage of 3,578,719 tonnes in December  2017. In 2023, there were two vessel carri ers 
with public participation of less than 3 2%. The main port infrastructure projects launched in 
Chinese  Taipei during 2018 -23 include new container and cruise passenger terminals in the Port of 
Kaohsiung, embankment construction and land reclamation in the Port of Taipei, and construction 
of wind power wharves in the Port of Taichung.  
4.4.3.2   Air transport  
4.108.   The Civil Aeronautics Administration (CAA) remains responsible for regulating air transport 
and providing flight navigation services. The gover ning legislation, the Civil Aviation Act, was 
amended in April  2018 to include specific provisions on the management of drone activities. The 
amendment introduced, inter alia, a registration system for drone owners, drone inspection 
competences for the CAA  (including for imported drones), and rules on drone flight activities.71 
4.109.   The conditions and requirements for performing commercial air transport services, as well 
as Chinese  Taipei's applied regime on overseas investment in air transport, remained unchang ed 
during the review period.72 Carrying passengers, cargo, and mail between two points in 
Chinese  Taipei remains prohibited for overseas air transport operators and overseas aircraft. 
Domestic passenger and cargo air fares, and airport fees are regulated. Overseas investment in 
Chinese  Taipei -incorporated airlines and airport ground handing (including refuelling) and catering 
service providers must not exceed 50% of total equity and no individual overseas investor can hold 
more than 25%.73 Civil air carrier s may seek CAA authorization to concurrently operate an airport 
ground handling service; overseas air carriers are also eligible on a reciprocity basis.  
4.110.   International air transport services are governed by air transport arrangements (ATAs) 
based on the pri nciple of reciprocity. As of April  2023, Chinese  Taipei had ATAs in force with 
57 partner jurisdictions, of which 9 were either revised or newly signed during the review period. 
The authorities indicate that all ATAs in force provide for 1st through 4th freedoms of the air. Typically, 
the arrangements also allow for multi -designation and cooperative arrangements, and some of the 
ATAs do not require that statistics be exchanged. The withholding clause within the ATAs has been 
set at "substantial ownership an d effective control" (SOEC). The more liberal agreements stipulate 
5th freedom traffic rights and "free determination" capacity clauses.  
4.111.   As of March  2023, 56  airlines, including 6  locally registered air carriers, provided flight 
services in Chinese  Taipei.  One air carrier had indirect public participation (31% of paid -in capital). 
Scheduled services covered 223  routes connecting Chinese  Taipei with 78  cities worldwide. The 
authorities indicate that air carriers registered in Chinese  Taipei accounted for 68%  of total 
passenger volume and 71% of cargo volume. Chinese  Taipei's total active commercial fleet 
comprised 233 aircraft, including 13 freight airplanes.  
4.112.   Air carriers operating regular flights on offshore island routes are eligible for support for the 
transportation of passengers residing on any of the offshore islands.74 Between 2020 and 2022, to 
mitigate the COVID -19 pandemic's impact on air transportation, all carriers operating in 
Chinese  Taipei received support in the form of reduced rent for land or facilities leased at terminals 
 
71 Civil Aviation Act.  
72 WTO document WT/TPR/S/377/Rev.1 , 6 March  2019.  
73 There are no restrictions on overseas investment in aircr aft maintenance and repair services.  
74 Regulation for the Subsidization of Civil Air Transport Enterprises in Respect of the Operation of 
Offshore Island Routes. Viewed  at: https: //law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=K0090045 . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  and office space at airports, interest subsidies on existing loans, and assistance with personnel costs. 
The authorities affirm that the temporary support measures have been phased out and no airline is 
offered any form of su pport under normal circumstances.  
4.113.   Chinese  Taipei has 17 airports, including 4 international airports. Taoyuan International 
Airport remains the main international passenger and cargo hub, whereas Songshan, Taichung, and 
Kaohsiung serve as auxiliary interna tional airports. All airports remain publicly owned and 
operated.75 Taoyuan International Airport is being expanded with the construction of a third terminal 
(expected by 2026) and a third runway (expected by 2030), which would increase its annual 
passenge r handling capacity from 37  million to 82  million and its peak hourly take -off and landing 
capacity from 50 to  90 movements. Other scheduled infrastructure works include terminal expansion 
at Taichung International Airport and terminal reconstruction at Ka ohsiung International Airport.76 
The authorities indicate that no airport or terminal concessions were granted to private -sector 
companies during 2018 -23. 
 
 
75 Taoyuan International Airport has been operated by Taoyuan International Airport Corporation, a 
state-owned enterprise, since 2010.  
76 Civil Airport System Plan  2040. Viewed  at: https://www. caa.gov.tw/FileAtt.ashx?lang=1&id=30155 . WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  5  APPENDIX TABLES  
Table  A1.1 Merchandise exports by HS section and major HS chapter/subheading, 
2018 -22 
HS section/chapter/subheading  2018  2019  2020  2021  2022  
Total exports (USD  billion)  334.0  329.2  345.1  446.4  479.4   
(% of total exports)  
01 Live animals and products  0.6 0.6 0.5 0.4 0.4 
02 Vegetable products  0.2 0.3 0.2 0.2 0.2 
03 Fats and oils  0.0 0.0 0.0 0.0 0.0 
04 Prepared food, beverages and tobacco  0.7 0.8 0.7 0.7 0.6 
05 Mineral products  4.4 4.3 2.1 2.7 4.1 
 27 Mineral fuels and oils  4.1 3.9 1.8 2.3 3.7 
 2710 Petroleum oils (..), other than crude  3.9 3.7 1.7 2.2 3.5 
06 Chemicals and products thereof  6.6 5.7 4.8 5.2 4.9 
 29 Organic chemicals  3.4 2.7 2.1 2.6 2.3 
07 Plastics and rubber  7.6 6.9 6.2 6.7 5.4 
 39 Plastics and articles thereof  6.7 6.0 5.4 5.9 4.8 
08 Raw hides and skins; leather, furskins and articles 
thereof  0.2 0.2 0.1 0.1 0.1 
09 Wood, cork, straw  0.1 0.05 0.04 0.04 0.03 
10 Pulp of wood; paper and paperboard  0.6 0.6 0.5 0.5 0.5 
11 Textiles and textile articles  3.0 2.8 2.2 2.0 1.8 
12 Footwear, headgear, etc.  0.1 0.1 0.1 0.1 0.1 
13 Articles of stone, plaster, cement  0.7 0.7 0.7 0.6 0.5 
14 Precious stones and metals  0.4 0.4 0.9 0.6 0.5 
15 Base metals and articles thereof  9.5 8.5 7.4 8.2 7.7 
 72 Iron and steel  3.1 2.7 2.2 2.9 2.5 
 73 Articles of iron and steel  2.6 2.4 2.1 2.1 2.2 
 74 Copper and articles thereof  1.5 1.3 1.2 1.2 1.0 
16 Machinery, electrical equipment  54.8 57.7 63.2 61.9 64.6 
 84 Machinery and mechanical appliances, parts 
thereof  11.6 13.0 12.9 12.9 13.2 
 8471 Automatic data processing machines 
and units thereof (..)  1.7 2.7 3.1 2.7 3.2 
 8473 Parts and accessories (..) suitable for 
use principally with machines of headings 
84.70 to 84.72  2.3 3.2 3.5 3.9 4.0 
 85 Electrical and electronic equipment  43.2 44.7 50.3 49.0 51.5 
 8517 Telephone sets, including telephones 
for cellular networks (..)  1.7 2.3 2.6 2.3 2.7 
 8523 Discs, tapes, solid -state non -volatile 
storage devices, smart cards and other 
media for the recording of sound or of other 
phenomena (..)  2.1 2.3 2.7 2.4 1.8 
 8542 Electronic integrated circuits  28.7 30.5 35.5 34.8 38.4 
17 Transport equipment  3.4 3.4 3.2 3.3 3.5 
 87 Vehicles, other than railway, tramway  3.0 3.1 2.9 3.0 3.3 
18 Precision equipment  5.0 4.9 4.9 4.5 3.5 
 90 Optical, photo, technical, medical, etc. 
apparatus  4.9 4.8 4.8 4.4 3.4 
 9013 Liquid crystal devices (..)  2.2 2.0 2.0 1.9 1.1 
19 Arms and ammunition  0.03 0.03 0.05 0.06 0.04 
20 Miscellaneous manufactured articles  1.5 1.6 1.6 1.7 1.2 
21 Works of art, etc.  0.004  0.003  0.004  0.005  0.003  
Other  0.5 0.5 0.5 0.5 0.4 
Source:  Data are derived from foreign trade statistics compiled by Customs Administration, Ministry of 
Finance. Viewed  at: https://portal.sw.nat.gov.tw/APGA/GA35E . 
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  A1.2 Merchandise imports by HS section and major HS chapter/subheading, 
2018 -22 
HS section/chapter/subheading  2018  2019  2020  2021  2022  
Total imports (USD  billion)  284.8  285.7  286.1  382.0  428.0   
(% of total imports)  
01 Live animals and products  1.3 1.3 1.3 1.1 1.1 
02 Vegetable products  1.6 1.7 1.6 1.6 1.7 
03 Fats and oils  0.1 0.1 0.1 0.1 0.2 
04 Prepared food, beverages and tobacco  1.7 1.7 1.7 1.4 1.3 
05 Mineral products  19.3 17.0 11.8 15.0 19.7 
 26 Ores, slag and ash  0.9 1.2 1.2 1.7 1.1 
 27 Mineral fuels and oils  18.0 15.5 10.3 13.1 18.3 
 2709 Petroleum oils and oils obtained from 
bituminous minerals; crude  8.2 7.5 4.4 5.2 7.3 
 2710 Petroleum oils and oils from bituminous 
minerals, not crude  3.5 2.4 1.9 2.5 2.3 
 2711 Petroleum gases and other gaseous 
hydrocarbons  3.1 2.9 2.1 3.0 4.8 
06 Chemicals and products thereof  10.7 9.6 9.3 8.8 8.4 
 29 Organic chemicals  3.7 3.0 2.5 2.8 2.3 
 30 Pharmaceutical products  1.4 1.5 1.5 1.4 1.7 
 38 Miscellaneous chemical products  2.3 2.1 2.2 1.9 1.9 
07 Plastics and rubber  3.1 3.0 3.1 2.9 2.5 
 39 Plastics and articles thereof  2.7 2.5 2.7 2.5 2.1 
08 Raw hides and skins; leather, furskins and 
articles thereof  0.3 0.3 0.3 0.3 0.3 
09 Wood, cork, straw  0.5 0.4 0.4 0.4 0.3 
10 Pulp of wood; paper and paperboard  0.9 0.9 0.8 0.7 0.6 
11 Textiles and textile articles  1.3 1.2 1.2 1.0 0.9 
12 Footwear, headgear, etc.  0.3 0.3 0.3 0.2 0.2 
13 Articles of stone, plaster, cement  1.0 1.0 1.0 0.9 0.8 
14 Precious stones and metals  1.2 1.0 1.3 1.4 1.1 
15 Base metals and articles thereof  7.9 7.0 6.8 7.6 6.6 
 72 Iron and steel  3.4 2.8 2.5 3.3 2.6 
 74 Copper and articles thereof  2.0 1.7 1.7 1.9 1.6 
16 Machinery, electrical equipment  38.2 42.6 47.5 46.6 44.9 
 84 Machinery and mechanical appliances, parts 
thereof  11.8 14.8 15.0 15.1 15.1 
 8486 Machines principally used for the 
manufacture of semiconductor boules or 
wafers, semiconductor devices, integrated 
circuits or flat panel displays (..)  4.1 6.8 6.3 6.6 6.9 
 85 Electrical machineries and parts thereof  26.4 27.8 32.4 31.5 29.8 
 8542 Electronic integrated circuits  17.8 18.8 21.8 21.3 20.6 
17 Transport equipment  4.2 4.2 4.1 3.5 3.4 
 87 Vehicles other than railway, tramway  3.1 3.1 3.4 2.8 2.5 
18 Precision equipment  4.3 4.5 5.0 4.6 4.2 
 90 Optical, photo, technical, medical, etc. 
apparatus  4.1 4.3 4.9 4.4 4.0 
19 Arms and ammunition  0.004  0.003  0.004  0.002  0.003  
20 Miscellaneous manufactured articles  0.8 0.8 0.9 0.8 0.7 
21 Works of art, etc.  0.03 0.03 0.02 0.02 0.02 
Other  1.2 1.3 1.3 1.1 1.1 
Source:  Data are derived from foreign trade statistics compiled by Customs Administration, Ministry of 
Finance. Viewed  at: https://portal.sw.nat.gov.tw/APGA/GA35E . 
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  A1.3 Merchandise exports by destination, 2018 -22 
  2018  2019  2020  2021  2022  
Total exports (USD  billion)  334.0  329.2  345.1  446.4  479.4   
(% of total exports)  
Americas  14.4 16.6 16.9 17.1 18.2 
 United  States  11.8 14.1 14.6 14.7 15.7 
 Other America  2.6 2.5 2.2 2.4 2.5 
 Mexico  0.7 0.9 0.8 0.8 1.0 
 Canada  0.8 0.7 0.6 0.7 0.7 
 Brazil  0.4 0.4 0.3 0.4 0.3 
Europe  9.4 9.0 8.1 8.6 8.7 
 EU-27 7.6 7.3 6.6 7.1 7.3 
 Netherlands  1.8 1.8 1.8 1.8 1.8 
 Germany  2.1 2.0 1.7 1.8 1.8 
 Italy 0.7 0.6 0.5 0.6 0.6 
 Belgium  0.4 0.4 0.4 0.6 0.6 
 France  0.5 0.5 0.4 0.4 0.4 
 Spain  0.4 0.4 0.3 0.4 0.4 
 Poland  0.3 0.3 0.3 0.3 0.3 
 EFTA 0.2 0.2 0.2 0.2 0.2 
 Other Europe  1.6 1.4 1.3 1.2 1.2 
 United  Kingdom  1.2 1.1 1.0 0.9 0.8 
 Türkiye  0.4 0.3 0.3 0.3 0.3 
CISa 0.4 0.4 0.4 0.4 0.2 
Africa  0.6 0.6 0.5 0.5 0.6 
Middle East  1.4 1.3 1.1 0.9 1.0 
 United  Arab Emirates  0.4 0.5 0.3 0.3 0.3 
Asia 73.4 71.6 72.8 72.0 70.8 
 China  28.9 27.9 29.7 28.2 25.3 
 Japan  6.8 7.1 6.8 6.5 7.0 
 Other Asia  37.6 36.7 36.4 37.2 38.5 
 Hong Kong,  China  12.4 12.3 14.2 14.1 13.5 
 Singapore  5.2 5.5 5.5 5.8 6.2 
 Korea, Republic of  4.7 5.1 4.4 4.5 4.6 
 Malaysia  3.2 2.9 2.7 3.0 3.5 
 Viet Nam 3.2 3.3 3.0 3.1 3.0 
 Philippines  2.7 1.9 1.6 1.4 1.6 
 Thailand  1.8 1.7 1.5 1.6 1.6 
 Australia  1.0 1.0 0.9 1.1 1.6 
 India 1.1 1.0 0.8 1.0 1.1 
 Indonesia  1.0 0.9 0.7 0.7 0.7 
 Bangladesh  0.3 0.4 0.2 0.3 0.4 
Other  0.4 0.5 0.3 0.5 0.5 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  Data are derived from foreign trade statistics compiled by Customs Administration, Ministry of 
Finance. Viewed  at: https://portal.sw.nat.gov.tw/APGA/GA35E . 
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table A1.4 Merchandise imports by origin, 2018 -22 
  2018  2019  2020  2021  2022  
Total imports (USD  billion)  284.8  285.7  286.1  382.0  428.0   
(% of total imports)  
Americas  14.2 15.0 14.1 13.2 13.3 
 United  States  11.6 12.2 11.4 10.3 10.6 
 Other America  2.6 2.8 2.7 2.9 2.7 
 Canada  0.7 0.6 0.5 0.6 0.6 
 Brazil  0.6 0.7 0.7 0.7 0.6 
Europe  10.7 11.8 11.8 11.2 10.8 
 EU-27 9.1 10.2 10.1 9.7 9.4 
 Germany  3.5 3.3 3.6 3.3 3.3 
 Netherlands  1.4 2.8 2.3 2.7 2.4 
 France  1.3 1.1 1.0 0.9 0.9 
 Italy 0.9 0.9 0.9 0.8 0.8 
 EFTA 0.8 0.8 0.9 0.7 0.7 
 Switzerland  0.7 0.6 0.8 0.6 0.6 
 Other Europe  0.9 0.8 0.8 0.7 0.7 
 United  Kingdom  0.7 0.7 0.7 0.6 0.6 
CISa 2.0 1.5 1.2 1.4 1.3 
 Russian  Federation  1.5 1.1 1.1 1.3 1.1 
Africa  0.9 0.6 0.8 1.0 1.1 
Middle East  9.6 8.3 5.4 6.5 8.3 
 Saudi Arabia, Kingdom of  3.0 2.7 1.7 2.1 2.7 
 Kuwait, State of  1.8 1.5 0.9 1.2 1.6 
 United  Arab Emirates  1.6 1.6 1.0 1.3 1.6 
 Qatar  1.0 1.0 0.8 0.7 0.9 
 Oman  0.7 0.5 0.3 0.5 0.6 
 Israel  0.2 0.3 0.4 0.4 0.5 
Asia 59.1 59.4 62.7 62.5 60.6 
 China  18.9 20.1 22.2 21.6 19.6 
 Japan  15.5 15.4 16.0 14.7 12.8 
 Other Asia  24.7 23.9 24.4 26.2 28.2 
 Korea, Republic of  6.9 6.2 7.2 8.0 8.0 
 Australia  3.4 3.5 2.8 3.9 5.8 
 Malaysia  3.3 3.6 3.5 3.1 3.2 
 Singapore  3.0 2.8 3.1 3.2 2.9 
 Indonesia  1.9 1.6 1.6 2.1 2.6 
 Viet Nam 1.3 1.8 1.9 1.6 1.6 
 Thailand  1.6 1.5 1.6 1.6 1.5 
 India 1.1 0.9 0.8 0.8 0.7 
 Philippines  0.9 0.7 0.7 0.8 0.7 
Other  3.5 3.5 4.0 4.2 4.6 
 Free zoneb 3.4 3.5 4.0 4.1 4.6 
a Commonwealth of Independent States, including certain associate and former member States.  
b Includes goods exported from Chinese  Taipei thereafter re -imported into Chinese  Taipei.  
Source:  Data are derived from foreign trade statistics compiled by Customs A dministration, Ministry of 
Finance. Viewed  at: https://portal.sw.nat.gov.tw/APGA/GA35E . 
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 106 - 
 
  Table  A2.1 Most recent notifications to the WTO, January  2018-June  2023 
Agreement  Requirement  Symbol and date of latest notification  
Agreement on Agriculture  
Articles 10 and 18.2  Export subsidy (ES:1)  G/AG/N/TPKM/219 , 19/01/2023  
Article  18.2 Domestic support: total aggregate 
measure of support (DS:1)  G/AG/N/TPKM/206 -207, 12/01/2022  
Article  18.2 Market access: administration of tariff 
and other quota commitments (MA:1)  G/AG/N/TPKM/192 , 15/05/2020  
Article  18.2 Market access: volume of imports 
under tariff and other quotas (MA:2)  G/AG/N/TPKM/221 , 16/02/2023  
Articles 5.7 and 18.2  Special safeguard provisions (MA:5)  G/AG/N/TPKM/223 , 22/03/2023  
Article  5.7 Volume -based special safeguard 
(MA:3)  G/AG/N/TPKM/222 , 10/03/2023  
General Agreement on Trade in Services  
Article  V:7(a)  Notification of Regional Trade 
Agreement  S/C/N/544/Add.1 -WT/REG283/N/2/ , 13/04/2023  
Article  III.3 Change in regulation affecting trade in 
services covered by specific 
commitments  S/C/N/1127 , 31/01/2023  
Agreement on Implementation of Article  VI of the GATT  1994 (anti -dumping)  
Article  16.4 Anti-dumping actions ( ad hoc) G/ADP/N/385 , 07/06/2023  
Article  16.4 Anti-dumping actions (semi -annual)  G/ADP/N/377/TPKM , 27/02/2023  
GATT  1994  
Article  XVII:4(a)  State trading activities  G/STR/N/19/TPKM/Ad d.1, 20/10/2022  
Agreement on Government Procurement  
Article  XVI:4  Reporting of statistics on government 
procurement  GPA/STAT(21)/TPKM/1 , 25/05/2022  
Paragraph 2 of 
Annex  D in 
Appendix  2 Statistics on procurement  GPA/WPS/STAT/24/Add.8 , 04/05/2018  
Annexes 1, 2, and 3 
of Appendix  I Thresholds as expressed in TWD  GPA/THR/TPKM/3 , 11/11/2022  
Article  XIX:1(b)  Proposed modifications and 
rectifications to coverage  GPA/MOD/TPKM/3 , 14/01/2021  
Agreement on Import Licensing Procedures  
Article  7.3 Replies to questionnaire on import 
licensing procedures  G/LIC/N/3/TPKM/13 , 11/10/2022  
Article  5.1 to 5.4  Institution of import licensing 
procedures or changes thereto  G/LIC/N/2/TPKM/18 -20, 17/01/2023  
Decision on Notification Procedures for Quantitative Restrictions  
G/L/59/Rev.1  Quantitative restrictions  G/MA/QR/N/TPKM/5 , 30/09/2022  
Decision on Preferential Rules of Origin for Least Developed Countries  
Paragraph  4.3 Preferential rules of origin for LDCs  G/RO/LDC/N/TPK M/1/Rev.1 , 22/07/2020  
Agreement on Subsidies and Countervailing Measures  
Article  25.1 Subsidies  G/SCM/N/372/TPKM , 01/06/2021  
G/SCM/N/372/TPKM/Suppl.1 , 27/09/2021  
Article  25.11  Countervailing duty actions 
(semi -annual)  G/SCM/N/399/TPKM , 03/02/2023  
G/SCM/N/399/TPKM/Add.1 , 20/04/2023  
Articles  32.6 Laws and regulations  G/SCM/N/1/TP KM/1/Suppl.2 -
G/ADP/N/1/TPKM/1/Suppl.2 , 24/08/2018  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article  7 and Annex  B Proposed and adopted SPS regulations  G/SPS/N/TPKM/450 , 04/01/2018 to 
G/SPS/N/TPKM/606/Add.1 , 08/06/2023  
Agreement on Technical Barriers to Trade  
Article  10.7 Agreements on issues related to 
technical regulations, standards, or 
conformity assessment procedures  G/TBT/10.7/N/146 , 08/02/2018, to  
G/TBT/10.7/N/152 , 07/01/2021  
Article  15.2 Implementation and administration of 
the Agreement  G/TBT/2/Add.69/Rev.1 , 20/06/2018  
Article  2.10 Technical regulations (urgent)  G/TBT/N/TPKM/443 , 30/11/2020 to 
G/TBT/N/TPKM/496/Add.1 , 25/07/2022  
Article  2.9 Technical regulations  G/TBT/N/TPKM/283 /Rev.1 , 15/01/2018 to 
G/TBT/N/TPKM/516/Add.1 , 13/06/2023  
Articles 2.9 and 5.6  Technical regulations and conformity 
assessment procedures  G/TBT/N/TPKM/313 , 15/01/2018 to  
G/TBT/N/TPKM/525/Add.1 , 05/06/2023  
Article  5.6 Conformity assessment procedures  G/TBT/N/TPKM/285 /Rev.1 , 16/02/2018 to  
G/TBT/N/TPKM/502 , 18/08/2022  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 107 - 
 
  Agreement  Requirement  Symbol and date of latest notification  
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article  63.2 Laws/regulations made effective by 
the notifying Member; amendments to 
a law/regulation  IP/N/1/TPKM/36 -IP/N/1/TPKM/P/18 , 02/12/2022  
Source:  Compiled by the WTO Secretariat, based on notifications documents.  
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 108 - 
 
  Table  A2.2 List of prohibited and restricted industries, 2022  
Industry Subitem  Description  Reasons for 
prohibition/restriction  
Prohibited activities  
18 Manufacture of 
chemical materials  1810 Manufacture of 
chemical materials  Manufacturing of nitroglycerine 
used in explosive pillars involving 
public safety)  Security.  
Soda-chloride factories operating 
with mercuric electrolyzers  Environmental protection 
and human health.  
A category of chemical products in 
accordance with the UN 
prohibition of chemical weapons  Security.  
CFC, halon, methylchoroform, 
carbon tetrachloride  Environmental protection 
(Montreal Protocol).  
19 Manufacture of 
chemical products  1990 Manufacture of 
other chemical 
products not elsewhere 
classified  Gun powder fuse, agents of fire, 
and fulminating mercury  Security.  
24 Manufacture of 
basic metals  2499 Manufacture of 
other basic metals not 
elsewhere classified  Cadmium smelting  Environmental protection 
and human health.  
29 Manufacture of 
machinery and 
equipment  2939 Manufacture of 
other general -purpose 
machinery  Firearms, weapons 
manufacturing, arms repair, 
ammunition and fire -control 
(exclusive of non -civil aircraft) 
high-energ y weapons systems 
(such as laser weapons, 
microwave weapons, and 
electromagnetic railguns), and 
other high -tech weapons systems  Security.  
49 Land 
transportation  4931 Motor bus 
transportation  
4932 Taxi 
transportation  
4939 Other bus 
transportation  Including city passenger bus 
services and highway passenger 
services  
Tour bus services  Stability of inland 
transportation and 
consumer protection.  
54 Postal and courier 
activities  5410 Postal activities   Postal monopoly.  
60 Broadcasting and 
programming  6010 Radio 
broadcasting  
6020 Television 
broadcasting and 
subscription 
programming  Radio broadcasting industry  
Radio -television industry 
(exclusive of satellite television 
broadcasting)  The spectrum is publicly 
owned.  
Preservati on of cultural 
diversity and consumer 
protection.  
64 Financial 
intermediation  6415 Postal saving and 
remittance services   Postal monopoly. The 
prohibition applies to all 
investors regardless of 
origin.  
69 Legal and 
accounting activities  6919 Other legal 
activities  Public notary services  Prohibited.  
93 Sports activities 
and amusement and 
recreation  9323 Special 
amusement activities   Public order and good 
morals.  
Restricted activities  
01 Agriculture and 
animal husbandry  0111 Growing of rice   Food security;  
safeguarding varieties and 
technologies;  
balance between supply 
and demand.  0112 Growing of 
cereals (except rice)  Exclusive of the cultivation of 
wheat, buckwheat, and Job's tears 
(adlay)  
0113 Growing of 
special crops  Exclusive of the cultivation of 
Chinese herbal medicine crops 
and special crops with health -
giving properties (not including 
tea) 
 
0114 Growing of 
vegetables  Exclusive of the cultivation of 
organic vegetables and the 
cultivation of vegetables using 
protected cultivat ion (limited to 
plant factories)  
 0116 Growing of 
mushrooms   
 0119 Growing of other 
crops   WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 109 - 
 
  Industry Subitem  Description  Reasons for 
prohibition/restriction  
 0121 Raising of cattle  
0122 Raising of 
swine/pigs   Stability and development 
of husbandry. Only 
investment exceeding 
TWD 30 million is allowed 
in order to encourage 
technology -intensive and 
capital -intensive 
investment.   Raising of breed swine  
 0123 Raising of 
chickens  Raising of breed chickens  
 0124 Raising of ducks  Raising of breed ducks  
 0129 Other animal 
husbandry   
02 Forestry    Forests are mainly publicly 
owned goods.a 
03 Fishing and 
aquaculture    To ensure the right of local 
fishers to operate, given 
the limited water resources 
available.b 
10 Manufacture of 
tobacco products    Tobacco and alcohol 
production is subject to a 
permit of establishment. 
Only after having received 
a permit of establishment 
may an investor obtain a 
licence permit, which is 
necessary in order to start 
production and operation. 
This restriction applies to  
all investors regardless of 
origin.c 
18 Manufacture of 
chemical material, 
fertilizers and 
nitrogen compounds, 
plastic and rubber 
materials, 
man-made fibres  1810 Manufacture of 
chemical material  Manufacturing of nitroglycerine  
(used in gun powder and 
explosive pillars involving public 
safety)  Public safety. Overseas 
investors can invest in the 
manufacturing of 
nitroglycerine not used in 
gun powder and explosive 
pillars.d 
27 Manufacture of 
computers, 
electronic and optical 
products  Military instrument and equipment  Overseas investment is 
allowed insofar as it 
contributes to science and 
technology.d 
31 Manufacture of 
other transport 
equipment and parts  3190 Manufacture of 
other transport 
equipment and parts 
not elsewhere 
classified  Manufacture, repair and assembly 
of military aircraft  
33 Other 
manufacturing  3399 Other 
manufacturing not 
elsewhere classified  Processing of ivory  Prior approval from the 
police is required to import 
or export live wildlife or 
protected wildlife products.  
Protected wildlife and its 
products shall not be 
traded or exhibited in 
public areas without the 
permission of the 
authorities.e 
35 Electricity and 
gas supply  3510 Electricity supply  Electric power transmission and 
power distribution  Public interest.f 
3520 Gas supply  Piped fuel gas supply  Only natural persons from 
Chinese  Taipei may be the 
founders, directors, or 
supervisors of gas supply 
enterprises.g 
36 Water supply  3600 Water supply  Tap water supply  Public service.h 
50 Water 
transportation  5010 Ocean 
transportation  
5020 Inland and lake 
transportation  Marine vessel transportation  The overseas investor 
must establish a branch by 
law or commission a 
Chinese  Taipei shipping 
agency as its agent.i 
51 Air transportation  5100 Air transportation   Restricted.j 
52 Support activities 
for transportation  5260 Service activities 
incidental to air 
transportation  Airport ground services, air 
catering services, and airport 
operation and management 
services  Restricted.j WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 110 - 
 
  Industry Subitem  Description  Reasons for 
prohibition/restriction  
60 Programming and 
broadcasting 
activities  6020 Television 
broadcasting and 
subscription 
programming  Satellite television broadcasting 
(provision of satellite television 
programming)  Overseas shareholders 
may hold less than 50% of 
the total shares.k 
61 
Telecommunications  6100 
Telecommunications  Cable television services, satellite 
television broadcasting (direct 
broadcast satellite TV service), 
and/or Type  I telecommunications 
enterprise  A system operator's 
directors from 
Chinese  Taipei shall not be 
less than two  thirds of the 
total number of directors . 
The same principle applies 
to supervisors.  
The chairperson of the 
system operation shall be 
from Chinese  Taipei.  
Total overseas investment 
in a company operating a 
cable radio and/or 
television system shall be 
less than 60% of the total 
number of shares.  
Direct overseas 
shareholding is limited to 
legal entities; the total 
number of shares directly 
held by overseas 
shareholders shall not 
exceed 20%.  
The total number of shares 
of a satellite broadcasting 
business directly held by 
overseas shareholders 
shall be less than 50%.  
The chairperson of the 
board of a Type I 
telecommunications 
enterprise shall be from 
Chinese  Taipei. The total 
direct shareholding by 
overseas citizens may not 
exceed 49%, and the sum 
of direct and indirect 
shareholding  may not 
exceed 60%.l 
69 Legal and 
accounting activities  6912 Scrivener 
activities  Land registration services  The provider must be from 
Chinese  Taipei and be a 
certified Land 
Administration Agent.m 
a Forestry Act; Land Act.  
b Fisheries Act.  
c Tobacco and Alcohol Administration Act.  
d "Statute for Investment by Foreign Nationals".  
e Wildlife Conservation Act.  
f Electricity Act; Privately Owned Public Utilities Supervisory Act.  
g Natural Gas Enterprise Act.  
h Water Supply Act; Water Act.  
i Shippi ng Act; Law of Ships; Seafarer Act.  
j Civil Aviation Act.  
k Satellite Broadcasting Act.  
l Cable and Television Act; Satellite Broadcasting Act; Telecommunications Act.  
m Land Administration Agent Act.  
Source:  Chinese  Taipei's negative list (prohibited and restricted industries) for inward investment, amended 
8 February  2018.  
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 111 - 
 
  Table  A3.1 MFN applied summary, 2023  
  Number 
of lines  Average  
(%) Rangea 
(%) CoV Duty free  
(%) Rangeb 
(%) 
bound 
tariff  
Total  12,280  7.2 0-1,069.9  
(0-500)  2.3 33.2 0-500 
HS 01 -24 2,896  18.2 0-1,069.9  
(0-500) 1.7 15.9 0-500 
HS 25 -97 9,384  3.8 0-30 1.1 38.7 0-30 
By WTO category  
WTO agricultural products  2,212  16.6 0-1,069.9  
(0-500) 2.1 22.6 0-500 
 Animals and products thereof  474 17.6 0-45 0.6 1.5 0-45 
 Dairy products  56 20.6 5-77.4 
(5-30) 0.8 0.0 5-30 
 Fruit, vegetables, and plants  718 18.9 0-1,069.9  
(0-184) 2.4 24.4 0-184 
 Coffee and tea  47 12.5 0-37.4 
(0-30) 0.8 25.5 0-30 
 Cereals and preparations  211 28.7 0-467.4  
(0-35) 1.9 7.1 0-35 
 Oils seeds, fats, oil and their 
products  143 10.9 0-338 4.0 51.7 0-338 
 Sugars and confectionery  33 15.9 0-27.5 0.5 6.1 3-143 
 Beverages, spirits and tobacco  144 18.8 0-40 0.6 11.1 0-40 
 Cotton  5 0.0 0-0 0.0 100.0  0-0 
 Other agricultural products, n.e.s.  381 5.8 0-500 4.5 50.7 0-500 
WTO non -agricultural products  10,068  5.1 0-83.8 
(0-50.0)  1.3 35.7 0-50 
 Fish and fishery products  816 19.9 0-83.8 
(0-50.0)  0.5 5.4 0-50 
 Minerals and metals  2,072  2.4 0-12.5 1.5 63.5 0-12.5 
 Chemicals and photographic 
supplies  2,391  2.8 0-20 0.8 28.6 0-20 
 Wood, pulp, paper and furniture  565 0.5 0-12.5 4.2 93.8 0-12.5 
 Textiles  964 7.4 0-12.5 0.5 3.6 0-12.5 
 Clothing  376 11.7 10.5-12 0.0 0.0 10.5-12 
 Leather, rubber, footwear and travel 
 goods  312 5.6 0-10 0.6 11.5 0-10 
 Non-electric machinery  890 3.1 0-17.5 0.9 29.8 0-20 
 Electric machinery  564 3.3 0-15 1.1 42.7 0-15 
 Transport equipment  318 10.0 0-30 0.8 19.8 0-30 
 Non-agricultural products, n.e.s.  762 2.7 0-10 1.1 47.4 0-10 
 Petroleum  38 2.2 0-5 0.9 42.1 0-10 
By HS section  
 01 Live animals and products  1,218  18.0 0-500 1.0 8.1 0-500 
 02 Vegetable products  838 18.4 0-1,069.9  
(0-184) 2.7 31.6 0-184 
 03 Fats and oils  80 12.6 0-338 4.2 35.0 0-338 
 04 Prepared food, beverages and 
tobacco  760 18.8 0-127.3  
(0-40) 0.7 8.9 0-143 
 05 Mineral products  249 1.0 0-7.5 1.8 67.5 0-10 
 06 Chemicals and products thereof  2,249  2.7 0-25 0.9 33.0 0-25 
 07 Plastics, rubber, and articles 
thereof  412 4.7 0-10 0.5 3.6 0-10 
 08 Raw hides and skins, leather, and 
its products  131 3.0 0-10 1.1 47.3 0-10 
 09 Wood and articles of wood  233 1.3 0-12.5 2.3 81.1 0-12.5 
 10 Pulp of wood, paper and 
paperboard  290 0.0 0-0 0.0 100.0  0-0 
 11 Textiles and textile articles  1,291  8.6 0-12.5 0.4 4.2 0-12.5 
 12 Footwear, headgear, etc.  159 6.2 0-10 0.4 4.4 0-10 
 13 Articles of stone, plaster, cement  328 7.2 0-12.5 0.4 3.0 0-12.5 
 14 Precious stones and metals, 
pearls  82 0.1 0-6.5 9.0 98.8 0-6.5 
 15 Base metals and articles thereof  1,424  1.8 0-10 1.8 72.5 0-10 
 16 Machinery, electrical equipment, 
etc. 1,468  3.0 0-17.5 1.1 36.6 0-20 
 17 Transport equipment  340 9.6 0-30 0.9 21.2 0-30 
 18 Precision equipment  418 2.1 0-10 1.4 56.2 0-10 
 19 Arms and ammunition  29 2.2 0-5 1.1 55.2 0-5 WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 112 - 
 
    Number 
of lines  Average  
(%) Rangea 
(%) CoV Duty free  
(%) Rangeb 
(%) 
bound 
tariff  
 20 Miscellaneous manufactured 
articles  266 3.1 0-11 1.0 38.3 0-11 
 21 Works of art, etc.  15 0.0 0-0 0.0 100.0  0-0 
CoV Coefficient of variation.  
a Ranges in brackets exclude AVEs for non -ad valorem  rates.  
b Ranges exclude AVEs for non -ad valorem  rates.  
Note:  Averages excluding in -quota rates and including AVEs for non -ad valorem  rates, provided by the 
authorities.  
Source:  WTO Secretariat calculations, based on data provided by the authorities, and CPT Single Window. 
Viewed  at: https://portal.sw.nat.gov.tw/APGQ/LoginFree?request_locale=en_US . 
 
  
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 113 - Table  A3.2 Tariff rate quotas, 2022 and 2023  
Product  HS code  Out-of-quota 
rate (2023)  In-quota rate 
(2023)  Tariff quota 
quantity (MT)  In-quota 
imports  
(MT)  Fill ratio 
(2022)  
Deer velvet  0507.90.2000  500%  22.5%  5 0.1 2.0%  
Liquid milk  0401.10.1000; 0401.10.2000; 
0401.20.1000; 0401.20.2000; 
0401.40.1000; 0401.40.2000; 
0401.50.1000; 0401.50.2000; 
0402.99.1000; 0402.99.2000; 
0402.99.9200; 0403.90.2900; 
0403.90.4000; 0403.90.5900; 
0403.90.9000; 1806.90.5300; 
1806.90.5500; 1901.90.2500; 
1901.90.2700  TWD 15.6/kg  15% 21,298  20,928  98.3%  
Ground -nuts:    
5,235  5,219  99.7%  
 Ground -nuts, in shell  1202.30.1000; 1202.41.0000; 
2008.11.1100; 2008.11.9100  TWD 42/kg  25% 
 Ground -nuts, shelled  1202.30.2000; 1202.42.0000; 
2008.11.1200; 2008.11.9200; 
2008.19.4200  TWD 64/kg  25% 
 Flours and meals of 
ground -nuts 1208.90.1100; 1208.90.2100  TWD 64/kg  25% 
 Ground -nuts oil  1508.10.0000; 1508.90.0000  338%  25% 
Red beans  0710.29.1000; 0713.32.0000; 
1106.10.1000; 2004.90.1010; 
2004.90.1090; 2005.51.1010; 
2005.51.1090; 2005.59.1000; 
2006.00.1100; 2006.00.2500  TWD 22/kg  22.5%  2,500  2,475  99.0%  
Garlic bulbs:     
3,520  3,157  89.7%  
 Bulbs for planting  0703.20.1000  TWD 27/kg  0% 
 Bulbs other than for planting  0703.20.9000; 0712.90.4000  TWD 27/kg  22.5%  
Dried shiitake  0712.39.2000  TWD 369/kg  25% or 
TWD 110/kg, 
w.i.t.h.  288 287 99.8%  
Dried day lily  0712.90.5000  TWD 58/kg  22.5%  101 0 0% 
Coconut  0801.12.0000; 0801.19.0010; 
0801.19.0090  120%  15% or 
TWD 0.9/kg, 
w.i.t.h.  10,000  5,168  51.7%  
Betel nuts  0802.80.0000  TWD 810/kg  17.5%  8,824  33 0.4%  
Bananas  0803.10.1000; 0803.10.2000; 
0803.90.1000; 0803.90.2000  100%  12.5%  13,338  0 0% 
Pineapples  0804.30.1000; 0804.30.2000  173%  15% 23,870  1,419  5.9%  
Mangoes  0804.50.2100; 0804.50.2200  60% 25% 12,755  0 0% 
Shaddocks  0805.40.2000  184%  25% 4,300  0 0% 
Fresh pears, excl. European pears  0808.30.9000  TWD 49/kg  18% 9,800  8,870  90.5%  
Dried longans and longan pulp  0813.40.1000  TWD 88/kg  15% 330 330 100%   
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 114 - Product  HS code  Out-of-quota 
rate (2023)  In-quota rate 
(2023)  Tariff quota 
quantity (MT)  In-quota 
imports  
(MT)  Fill ratio 
(2022)  
Rice:    
144,720  136,033  94.0%  
 Rice, groats and meal of rice  
 
 
 Rice starch  1006.10.0000; 1006.20.0000; 
1006.30.0010; 1006.30.0090; 
1006.40.0000; 1103.19.3000  TWD 45/kg  
 
 
TWD 49/kg  
TWD 49/kg  0% 
 
 
10% 
20%, 25%  1108.19.1000  
 Other rice products  1102.90.1100; 1102.90.1900; 
1103.20.1000; 1104.19.1000; 
1104.29.2000; 1806.90.6100; 
1806.90.7100; 1806.90.9200; 
1901.90.9100; 1902.11.1000; 
1902.19.1000; 1902.20.1010; 
1902.20.1020; 1902.30.2000; 
1904.10.2011; 1904.10.2012; 
1904.10.2091; 1904.10.2092; 
1904.20.1100; 1904.20.2100; 
1904.90.1010; 1904.90.1020; 
2106.90.9800  
w.i.t.h.  Whichever is the highest.  
Source:  WTO document G/AG/N/TPKM/221  (16 February  2023), and CPT Single Window. Viewed  at: 
https://portal.sw.nat.gov.tw/APGQ/LoginFree?request_locale=en_US . 
 
 
 
 WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 115 - 
 
  Table  A3.3 Preferential tariff rate quotas, 2023  
Trading  
partner  Product  HS code  Tariff rate 
quota  In-quota 
rate Out-of-quota 
rate 
Belize  Raw sugar  1701.13.0010; 
1701.13.0090; 
1701.14.0000; 
1701.91.1010; 
1701.91.1090  25,000  MT 0% 6.3%  
Refined sugar  1701.99.9010; 
1701.99.9090  10,000  MT 0% 17.5%  
El Salvador  Raw sugar  1701.13.0010; 
1701.13.0090; 
1701.14.0000; 
1701.91.1010; 
1701.91.1090  80,000  MT (the 
quota has a limit 
of 10,000  MT for 
refined sugar)  0% 6.3%  
Refined sugar  1701.91.2000; 
1701.99.1000; 
1701.99.2000; 
1701.99.9010; 
1701.99.9090  0% 17.5%  
Dried plantains  0803.10.2000  1 MT 0% 100%  
Dried bananas  0803.90.2000  0% 100%  
Dried pineapples  0804.30.2000  0% 173%  
Dried mangoes  0804.50.2200  0% 60% 
Eswatini  Raw sugar  1701.14.0000  53,000  MT 0% 6.3%  
Refined sugar  1701.99.9010; 
1701.99.9090  28,000  MT 0% 17.5%  
Natural honey  0409.00.0000  250 MT 0% 35% 
Avocados  0804.40.0000  30 MT 0% 15% 
Guatemala  Raw sugar  1701.13.0010; 
1701.13.0090; 
1701.14.0000; 
1701.91.1010; 
1701.91.1090  87,573  MT 0% 6.3%  
Refined sugar  1701.91.2000; 
1701.99.1000; 
1701.99.2000; 
1701.99.9010; 
1701.99.9090  47,154  MT 0% 17.5%  
Honduras  Raw sugar  1701.13.0010; 
1701.13.0090; 
1701.14.0000; 
1701.91.1010; 
1701.91.1090  55,000  MT 0% 6.3%  
Refined sugar  1701.91.2000; 
1701.99.1000; 
1701.99.2000; 
1701.99.9010; 
1701.99.9090  15,000  MT 0% 17.5%  
New Zealand  Deer velveta 0507.90.2000  3,500  kg 0% 300%  
Liquid milk  0401.10.1000; 
0401.10.2000; 
0401.20.1000; 
0401.20.2000; 
0401.40.1000; 
0401.40.2000, 
0401.50.1000; 
0401.50.2000  10,000  MT 0% TWD 14/kg  
Paraguay  Raw sugar  1701.13.0010; 
1701.13.0090; 
1701.14.0000; 
1701.91.1010; 
1701.91.1090  50,000  MT 0% 6.3%  
Refined sugar  1701.91.2000; 
1701.99.1000; 
1701.99.2000; 
1701.99.9010; 
1701.99.9090  10,000  MT 0% 17.5%  
a Period of allocation: 1  January to 1  September  2023 only.  
Note:  HS codes are aligned to the 2023 tariff schedule at 10 -digit level.  
Source:  WTO Secretariat calculations, based on WTO CTS database, and data provided by the authorities.  
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  A3.4 Commodity tax, 2022  
Product  HS code  Description  Tax rate  
Rubber tyres  40111000 -40114000, 
40117010 -40129010  Rubber tyres for buses 
and trucksa 10% 
All other rubber tires  15% 
Cement  25232100 -90, 
32149000, 38245000  White or coloured 
cement  TWD 600/MT  
Portland I cement  TWD 320/MT  
Portland blast -furnace 
slag cement  TWD 280/MT  
Cement substitutes and 
others  TWD 440/MT  
Beverage  
(machine -made cool 
drinks)  20091110 -20099090, 
21069070, 21069098, 
21069099, 22011020, 
22021000 -22029990, 
22090000  Machine -made diluted 
natural fruit/vegetable 
juiceb 8% 
Other machine -made 
beverage  15% 
Flat-glass 70031210 -70080000, 
70159021, 70159029, 
70159060, 70159090, 
70161000, 70169000  All kinds of flat -glass and 
glass bar that are 
polished or sand, 
coloured or transparent, 
figured or engraved, 
polished -edged or 
non-polished -edged, 
roll-edged or 
unroll -edged  10% 
Oil and gas  27071000, 27072000, 
27073000, 27075000, 
27079990, 27101210, 
27101230 -27101949, 
27101965, 27101966, 
27101990 -27102090, 
27109190, 27109900, 
27111200 -27111990, 
27112910, 27112990, 
36061000, 38140000, 
38170000  Gasoline  TWD 6,830/kL  
Diesel oil  TWD 3,990/kL  
Kerosene  TWD 4,250/kL  
Fuel oil for aircraft  TWD 610/kL  
Fuel oil  TWD 110/kL  
Dissolving oil  TWD 720/kL  
Liquefied petroleum gas  TWD 690/MT  
Electric appliances  84143010, 84143020, 
84148019, 
84151010 -84158200, 
84159010, 
84181011 -84182999, 
84183090, 84184090, 
84185090 -84186920, 
84186990, 84198100, 
84796000, 84798910, 
85098090, 85141000, 
85142000, 85165000, 
85166010, 85166090, 
85167200, 85182100, 
85182200, 85182940, 
85182990, 85184090, 
85185090, 
85192010 -85219090, 
85258010 -85258090, 
85271300, 
85272110 -85279900, 
85284910, 85285910, 
85286910, 85287110, 
85287120, 85287191, 
85287200, 85437053, 
85437059, 85437094, 
85437099  Refrigerators  13% 
Colour television sets  13% 
Electric air conditioners 
that use electrical 
devices to control room 
temperatured 20% 
Central air conditioning 
units composed of 
compressor, air 
conditioning box and fan 
coil 15% 
All kinds of electric 
dehumidifiersd 15% 
Video recorders  13% 
Record playerse 10% 
Audio recorders  10% 
Stereophonic systems  10% 
Electric ovens  15% WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Product  HS code  Description  Tax rate  
Vehicles  87011000, 87012000, 
87013010, 87013090, 
87019110, 87019190, 
87019210, 87019290, 
87019310, 87019390, 
87019410, 87019490, 
87019510, 87019590, 
87021020 -87043200, 
87049090 -87052000, 
87054000 -87059060, 
87059080 -87079090, 
87087030, 87087090, 
87089911 -87089924, 
87091110 -87091990, 
87111019, 87111020, 
87112090 -87119030, 
87161000 -87163100, 
87163990, 87164000  Automobiles:   
 Passenger sedans with 
fewer than 9  seats:   
 not exceeding 
2,000  cc 25% 
 exceeding 2,001  cc 30% 
Trucks, buses, and other 
vehiclesf 15% 
Motorcycles  17% 
a Inner tubes, solid rubber tyres, and rubber tyres for use on man -powered/animal -powered vehicles 
and farming vehicles are exempt.  
b Pure natural fruit juice, fruit syrup, concentrated fruit syrup, concentrated fruit juice, and natural 
vegetable juice are exempt.  
c Electrification glass and reinforced glass used for producing moulds are exempt.  
d Dehumidif iers for use in factories are exempt.  
e Hand-carry-type record players smaller than 32  cm are exempt.  
f From 5  June 2014 to 31  December  2024, low chassis buses, gas buses, hybrid oil and electric buses, 
electric buses, and rehabilitation buses for the disa bled are exempt.  
Source:  Commodity Tax Act, Articles 6 -12. 
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  A3.5 Goods excluded from drawback duty, 2023  
HS code  Description  
0103910000  Live swine, weighing less than 50  kg, other than pure -bred breeding animals  
0103920000  Live swine, weighing 50  kg or more, other than pure -bred breeding animals  
0402913000  Cream, evaporated or sterilized, not containing added sugar, or other sweetening matter  
0406100000  Fresh (unripened  or uncured) cheese, including whey cheese, and curd  
0406200010  Grated or powdered cheese, of all kind, for feeding  
0406200090  Grated or powdered cheese, of all kind, not elsewhere specified or included  
0406300000  Processed cheese, not grated or powdere d 
0406400000  Blue-veined cheese and other cheese containing veins produced by Penicillium roqueforti  
0406900000  Other cheese  
0504001100  Casings of swine  
0506901100  Hu Ku (Tigris Os) (incl. for Chinese drugs)  
0506901200  Hsiung Ku (Ursi Os) (incl. for Chinese drugs)  
0506901910  Fishery bones (bones suitable for human consumption are classified under chapter  3) 
0506901920  Bau ku (leopard os) (incl. for Chinese drugs)  
0506901990  Other bones  
0506902000  Horn-cores  
0506903000  Powder and waste of bones and horn -cores  
0507101100  Ivory, unworked or simply prepared but not cut to shape  
0507101200  Rhinoceros horns, superior quality (incl. for Chinese drugs)  
0507101300  Rhinoceros horns, inferior quality (incl. for Chinese drugs)  
0507101900  Other animals teeth  
0507102100  Ivory powder  
0507102200  Rhinoceros horns powder  
0507102900  Other animals teeth powder  
0507103100  Ivory, waste  
0507103200  Rhinoceros horns, waste  
0507103900  Other animal teeth powder, waste  
0507901100  Dia Mou K'o ( Eretmochelytis carapax) (incl. for Chinese drugs)  
0507901200  Pieh Chia K'o (Amydae carapax) (incl. for Chinese drugs)  
0507901300  Tortoise shell, Terrapin plastron (incl. for Chinese drugs)  
0507901400  Tortoise claws  
0507901500  Tortoise scales  
0507901600  Whalebone, whalebone hair  
0507901700  Whalebone, whalebone hair, waste  
0507902300  Buffalo and cow horns  
0507902400  Antelope horns (incl. for Chinese drugs)  
0507902500  Goat horns (incl. for Chinese drugs)  
0507902600  Chuan Shan Chia ( Manidis squama) (incl. for Chinese drugs)  
0507902700  Crocodile scales  
0507903200  Antelope horn powder (incl. for Chinese drugs)  
0507909100  Other animal horns, hooves, nails, claws and beaks (incl. for Chinese drugs)  
0507909200  Other animal horn, hooves, nails, claws and beaks, powder (incl. for Chinese drugs)  
0507909300  Other animal horn, hooves, nails, claws and beaks, waste (incl. for Chinese drugs)  
0508001110  Precious red coral (Family Coralliidae) materials  
0508001190  Other coral and simila r material  
0508001210  Powder and waste of precious red coral (Family Coralliidae) materials (incl. for Chinese drugs)  
0508001290  Other powder and waste of coral and similar material (incl. for Chinese drugs)  
0508002000  Shells of molluscs, crustaceans or echinoderms and cuttle -bone, unworked or simply prepared 
but not cut to shape  
0508003000  Shell meal  
0508004000  Shell waste  
0510001100  Ambergris  
0510001200  Castoreum  
0510001300  Civet 
0510001400  Musk of granules (incl. for Chinese drugs)  
0510001500  Musk of powder in bottle (1 gm) (incl. for Chinese drugs)  
Source:  Data provided by the authorities and CPT Single Window online information.  
  WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  A4.1 Agricultural support programmes, 2018 -22 
Part A  
Objective  Description  2018 -22 
Total beneficiaries  Total 
disbursements 
(TWD  million)  
1. Securing rice 
market stability 
(supply, prices, 
and farmers' 
income)  Since January  2018, farmers could choose 
to either receive a direct payment 
(TWD  10,000 -TWD 13,500) per ha or 
continue selling rice to the COA's 
Agriculture and Food Agency (AFA) at 
guaranteed prices. The direct payment 
option was discontinued in 2022. The AFA 
carries out planned, supplementary, and 
additional rice purchases. Diff erent prices 
and maximum quantities are set for each 
type of purchase.  Direct payment: 
316,600 farmers  
Rice purchases: 
706,200 farmers  Direct payment: 
2,799  
Planned rice 
purchases: 3,771  
Supplementary rice 
purchases:  608 
Additional rice 
purchases: 177  
2. Supporting 
crop diversification  Payments ( TWD 25,000 -TWD 60,000) per 
ha are made to farmers who follow a 
diversion programme away from rice 
production (having met certain conditions 
in the 1994 -2003 period).  Average area 
(2018 -21): 130,827  ha 1,221.84 dur ing 
2018-21 
3. Developing the 
sugar industry in 
cooperation with 
farmers  TSC concludes contracts with farmers for 
the purchase of sugarcane and sugar 
sharing. Farmers may sell their share 
(55%) of the refined sugar at either the 
market price or the guaranteed contract 
pricea, whichever is higher. TSC also 
provides grants to sugarc ane farmers to 
help finance their operations (subsidize 
interest payments on loans, insurance 
premiums, fees for pest and disease 
control, inspection fees, etc.).  5,376 farmers  TSC grants and 
guaranteed price 
purchases: 323.63  
4. Facilitating 
farmers' and 
agribusinesses' 
access to finance  The Agricultural Development Fund 
subsidizes the preferential interest rates on 
loans provided by farmers' and fishers' 
associations or the Agricultural Bank. 
Eligible loans' intended uses may span 
business de velopment, competitiveness 
enhancements, and rebuilding after natural 
disasters.  224,484 households 
for a cumulative loan 
amount of 
TWD 171,377  million  11,291  
5. Reducing 
fishing capacity  Owners of fishing vessels with valid fishing 
licences receive a grant for their 
decommissioning. The buy -back amount is 
a function of the vessel's tonnage or the 
raft's length, pipe diameter, and engine 
power. Programme suspended since 2021.  124 decommissioned 
vessels (2018 -20) 147.16 
(2018 -20) 
6. Encouraging 
voluntary 
suspension of 
fishing activity 
during the low 
season  Owners of fishing vessels with valid fishing 
licences are eligible for grants if the vessel 
operates at sea for more than 90 days in a 
year and is docked in port for at least 
120 days in the ye ar. Average number of 
participating vessels 
per year: 9,965  1,630.6  
7. Promoting 
fishing vessel 
insurance  (i) Grants payable to owners to cover a 
portion of the costs of fishing vessels' 
insurance against damage at sea.  
(ii) Subsidized insurance premiums for 
owners of motorized fishing boats (rafts) of 
less than 100  metric tonnes.  9,176 vessels and 
boats  39 
8. Promoting 
liability insurance 
of motor vessels 
fishing in the 
maritime area 
subject to the 
fisheries 
agreement with 
Japan  Grants payable to owners to cover a 
portion of  the liability insurance costs of 
motor -based fishing vessels operating in 
the maritime area.  0 0 
a The guaranteed price set out in TSC  contracts has remained unchanged since 1990.  
Source:  WTO document G/SCM/N/372/TPKM , 1 June 2021.   WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Part B  
Objective  Description  2018 -22 
Total beneficiaries  Total 
disbursements 
(TWD  million)  
1. Promoting the 
Traceable 
Agricultural 
Products (TAP) 
certification  The TAP standard embodies eco -friendly 
production practices. The COA subsidizes 
the fees for TAP certification by a third 
party. Farmers also receive support 
according to the size of their TAP -certified 
cultivated area.  31,508 farmers  1,573.23  
2. Promoting 
locally produced 
and traceable 
ingredients in 
school lunches and 
non-staple foods 
for the military  The COA encourages the use of local, 
traceable food in the procurement of school 
lunches (TWD  6 per person per meal). 
Eligible ingredients must have Organic, 
TAP, or CAS certification marks or a 
QR Code.  Approximately 
1.8 million students per 
year and all military 
personnel  School lunches: 
6,600  
Non-staple foods: 
492.2  
3. Stimulating 
organic agriculture  Reduced rent and guaranteed lease periods 
for the rental of public land for organic 
agriculture.  8,079  (plots of 
land) Forgone revenue: 
291.89  
4. Improving 
farmers' 
occupational safety  Since November  2018, the COA offers 
farmers' occupational -injury insurance. 
Participation is voluntary and premiums are 
subsidized so that farmers pay 
TWD 15/month.  319,090 participants  Approximately 89  
5. Promoting 
agricultural 
insurance  The COA subsidizes 33% -50% of the cost 
of premiums for approved insurance 
products. Local authorities may also 
provide subsidies.  363,000 2,060 
6. Fuel subsidies 
for fishing vessels  The COA subsidizes fuel used by fishing 
vessels and boats. The subsidized fuel 
volume is a function of actual operation 
hours at  sea. Average number of 
participating 
vessels (2018 -21): 
12,992  5,115 during 
2018-21 
7. Promoting 
eco-friendly 
fertilizers  The COA subsidizes farmers' freight costs 
(TWD  500/tonne) for compound fertilizer 
containing organic matter.  140,000  farmers  1,411  
8. Ensuring 
access to fertilizers 
in remote areas  Farmers in remote areas and offshore 
islands are eligible for fertilizer freight cost 
support of TWD  500/tonne.  50,000  farmers  103 
9. Promoting the 
mechanization of 
production  The COA subsidizes up to one  third of the 
cost of agricultural machinery purchased 
for land preparation, fertilization, pest 
control, harvest, and post -harvest 
treatment purposes.  180,000  farmers  1,760  
10. Disaster relief  The COA provides cash relief and low -
interest loans to farmers who have 
suffered losses from natural disasters.  Cash relief: 
373,532 
households  Cash relief: 
11,988 
11. Maritime 
disaster relief for 
fishing vessels  The COA provides relief for vessels 
rendered non -operational or destroyed by 
fire or force majeure  during operations at 
sea. 63 vessels  4 
12. Strengthening 
farmers' and 
fishers' 
associations  The COA subsidizes investments by 
farmers' associations in expanding their 
extension and education facilities.  289 approved 
applications  500 
13. Promoting 
ecosystem -friendly 
farmland 
management  Financial rewards for farmers operating on 
private land (outside protected areas) in 
harmony with endangered species' 
habitats.  2,000 farmers  
(since 2020)  50 (since 2020)  
14. Encouraging 
agricultural uses of 
arable land  Users of land in specific zones for 
agricultural production are eligible for an 
agricultural environment basic payment 
(TWD  5,000/ha) up to twice per year.  Average area  
(2020 -21): 
339,500  ha 3,400 during 
2020-21 
15. Assisting 
farmers in 
employing pipeline 
irrigation facilities  Natural persons who own irrigated 
farmland for agricultural production are 
eligible for annual support of up to 
TWD 400,000.  15,999  1,088  
16. Promoting 
green energy 
facilities  Farmers and fishers who install green 
energy facilities related to agricultural 
operations are eligible for low -interest 
loans.  298 loans during 
2021-22 120 (interest 
subsidies) during 
2021-22 WT/TPR/S/ 448/Rev.1  • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 121 - 
 
  Objective  Description  2018 -22 
Total beneficiaries  Total 
disbursements 
(TWD  million)  
17. Minimizing 
pollution from the 
livestock industry  Livestock farms' investments in pollution 
prevention equipment are eligible for a 
subsidy (up to 50% of each item's cost and 
up to TWD  500,000 for a single item).  2,500 livestock 
farms  600 
18. Supporting 
young farmers  Young farmers establishing agricultural 
businesses are eligible for subsidized loans 
of up to TWD  2 million (TWD  5 million for 
the top 100 young farmers). The applicable 
interest rate is zero for the first five years 
and 0.54% thereafter.  15,380 households 
for a cumulative 
loan amou nt of 
TWD 20,397  million  1,630  
19. Stabilizing new 
farmers' livelihood  New farmers who have completed 
professional agricultural training are 
eligible for a grant of (TWD  360,000 -
TWD 720,000 over two  years) to help them 
remain in farming as a profession.  515 persons  156.5  
20. Promoting 
scientific 
aquaculture 
management  Investments in newly purchased smart 
equipment are eligible for a subsidy of up 
to 50% of the expenditure, with a 
maximum limit of TWD  1,500,000.  928 persons  128 
21. Modernizing 
meat products' 
transport and 
marketing  Investments in temperature control 
equipment and sanitation improvements 
are eligible for a subsidy (up to 50% of 
each item's cost and up to TWD  2 million 
for a single item).  31 111.95  
22. Encouraging 
compliance with 
sustainable forest 
management 
norms  The COA covers 50% of the fees payable 
by businesses applying for Forest 
Stewardship Council certification.  2 1.02 
23. Promoting 
structure -
enhanced 
greenhouse 
facilities  Erecting structure -enhanced greenhouse 
facilities is eligible for a subsidy (up to 
50% of the costs in western Chinese  Taipei 
and up to 60% elsewhere).  5,520 farmers for a 
cumulative 
greenhouse area of 
1,740  ha 
(2018 -21) 425 during 
2018-21 
24. Promoting 
farm size 
expansion  Under the "Small Landlords, Big Tenants" 
programme, small landowners over 65 
years old who have paid agricultural 
insurance for over five years and who lease 
their land to tenants may receive a 
monthly incentive of TWD  2,000/ha, up to 
a maximum o f 3 hectares. Assistance to 
big tenants includes incentives for contract 
farming, support for purchasing production 
equipment, and zero -interest rent and 
low-interest loans.  837 big tenants  267 
Source:  COA, Annual Report , various editions, 2018-20; and information provided by the authorities.  
__________