RESTRICTED  
  
WT/TPR/S/377  
18 July 2018  
(18-4484) Page: 1/172 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
SEPARATE CUSTOMS TERRITORY OF TAIWAN , PENGHU , KINMEN AND MATSU  
This report, prepared for the fourth 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 establishi ng the Trade Policy 
Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), sought clarification from the Separate Customs Territory of Ta iwan, Penghu, 
Kinmen and Matsu on its trade policies and practices.  
 
Any tech nical questions arising from this report may be address ed to Mr Sergios Stamnas 
(tel: 022/739 5382) and Ms Katie Waters (tel: 022/739 5067).  
 
Document WT/TPR/G/377 contains the policy statement submitted by the Separate Customs 
Territory of Taiwan, Penghu,  Kinmen and Matsu.  
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu. This report was drafted in English.  
  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  9 
1  ECONOMIC ENVIRONMENT  ................................ ................................ .........................  14 
1.1  Main Features of the Economy  ................................ ................................ ...................... 14 
1.2  Recent Economic Developments  ................................ ................................ .................... 16 
1.2.1   Growth, income, and employment  ................................ ................................ .............. 16 
1.2.2   Prices  ................................ ................................ ................................ ...................... 18 
1.2.3   Main macroeconomic policy developments  ................................ ................................ ...19 
1.2.3.1   Monetary and exchange rate policy  ................................ ................................ .......... 19 
1.2.3.2   Fiscal policy  ................................ ................................ ................................ ........... 20 
1.2.4   Structural policies  ................................ ................................ ................................ .....20 
1.2.4.1   Tax reform  ................................ ................................ ................................ ............ 20 
1.2.4.2   Privatization  ................................ ................................ ................................ .......... 20 
1.2.4.3   Competition policy  ................................ ................................ ................................ .21 
1.2.4.4   Labour market policies ................................ ................................ ............................ 21 
1.2.5   Balance of payments  ................................ ................................ ................................ .22 
1.3  Developments in Trade and Investment  ................................ ................................ ......... 23 
1.3.1   Trends and patterns in merchandise trade and services trade  ................................ ......... 23 
1.3.2   Trends and patterns in inbound direct investment  ................................ ......................... 26 
2  TRADE AND INVESTMENT  REGIME  ................................ ................................ .............  29 
2.1  General Framework  ................................ ................................ ................................ .....29 
2.2  Trade Policy Formulation and Objectives  ................................ ................................ ......... 30 
2.3  Trade Agreements and Arrangements  ................................ ................................ ............ 33 
2.3.1   WTO ................................ ................................ ................................ ....................... 33 
2.3.2   Regional an d preferential agreements  ................................ ................................ ......... 34 
2.3.2.1   Regional trade agreements (RTAs)  ................................ ................................ ........... 34 
2.3.2.2   Preferential trade agreements  ................................ ................................ ................. 36 
2.3.3   Other agreements and arrangements  ................................ ................................ .......... 36 
2.3.3.1   APEC ................................ ................................ ................................ .................... 36 
2.4  Investment Regime  ................................ ................................ ................................ .....36 
2.4.1   General investment regime  ................................ ................................ ........................ 36 
2.4.2   Business environment  ................................ ................................ ............................... 38 
3  TRADE POLICIES AND P RACTICES BY MEASURE  ................................ .........................  41 
3.1  Measures Directly Affecting Imports  ................................ ................................ ............... 41 
3.1.1   Customs procedures, valuation, and requirements  ................................ ........................ 41 
3.1.1.1   Customs procedures  ................................ ................................ ............................... 41 
3.1.1.2   Customs valuation  ................................ ................................ ................................ .45 
3.1.2   Rules of origin  ................................ ................................ ................................ .......... 45 
3.1.3   Tariffs  ................................ ................................ ................................ ..................... 46 
3.1.3.1   General features  ................................ ................................ ................................ ....46 WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.1.3.2   Applied MFN tariffs  ................................ ................................ ................................ .47 
3.1.3.3   MFN tariff dispersion and escalation  ................................ ................................ ......... 49 
3.1.3.4   MFN tariff bindings  ................................ ................................ ................................ .49 
3.1.3.5   Tariff-rate quotas  ................................ ................................ ................................ ...50 
3.1.3.6   Tariff preferences  ................................ ................................ ................................ ...51 
3.1.3.7   Duty concessions/exemptions  ................................ ................................ .................. 51 
3.1.4   Other charges affecting imports  ................................ ................................ .................. 52 
3.1.5   Import prohibitions, restrictions, and licensing  ................................ ............................. 52 
3.1.5.1   Import prohibitions  ................................ ................................ ................................ 53 
3.1.5.2   Import licensing  ................................ ................................ ................................ .....53 
3.1.6   Anti-dumping, countervailing, and safeguard measures  ................................ ................. 54 
3.1.6.1   Anti-dumping and countervailing  ................................ ................................ ............. 54 
3.1.6.2   Safeguards ................................ ................................ ................................ ............ 55 
3.2  Measures Directly Affecting Exports  ................................ ................................ ............... 56 
3.2.1   Customs procedures and requirements  ................................ ................................ ........ 56 
3.2.2   Taxes, charges, and levies  ................................ ................................ ......................... 56 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ .............................. 56 
3.2.3.1   Export prohibitions  ................................ ................................ ................................ .56 
3.2.3.2   Export licensing  ................................ ................................ ................................ .....56 
3.2.4   Export support and promotion  ................................ ................................ .................... 57 
3.2.4.1   Duty and tax concessions  ................................ ................................ ........................ 57 
3.2.4.2   Free-trade export zones  ................................ ................................ .......................... 58 
3.2.4.3   Other means of promotion  ................................ ................................ ...................... 58 
3.2.5   Export finance, insurance, and guarantees  ................................ ................................ ...59 
3.3  Measures Affecting Production and Trade ................................ ................................ ........ 60 
3.3.1   Incentives  ................................ ................................ ................................ ................ 60 
3.3.1.1   Taxation  ................................ ................................ ................................ ............... 60 
3.3.1.1.1   Features  ................................ ................................ ................................ ............ 60 
3.3.1.1.2   Indirect taxation  ................................ ................................ ................................ .60 
3.3.1.1.3   Direct taxation  ................................ ................................ ................................ ....62 
3.3.1.2  Production assistance  ................................ ................................ ............................. 62 
3.3.1.2.1   Small and -medium -sized enterprises  ................................ ................................ .....63 
3.3.1.2.2   Research and development  ................................ ................................ ................... 63 
3.3.1.2.3   Designated zones  ................................ ................................ ................................ 64 
3.3.1.2.4   Sector -specific support  ................................ ................................ ........................ 64 
3.3.1.2.5   Other assistance  ................................ ................................ ................................ .65 
3.3.2   Standards and other technical requirements  ................................ ................................ 66 
3.3.2.1   Standards, testing, and certification  ................................ ................................ ......... 66 
3.3.2.1.1   Voluntary, compulsory and aligned standards  ................................ ......................... 67 
3.3.2.1.2   Transparency  ................................ ................................ ................................ ......71 WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.3.2.2   Marking, and labelling  ................................ ................................ ............................ 71 
3.3.3   Sanitary and phytosanitary measures  ................................ ................................ .......... 72 
3.3.3.1   Food standards -setting framework  ................................ ................................ ........... 72 
3.3.3.2   Quarantine regulations  ................................ ................................ ........................... 74 
3.3.3.3   Transparency  ................................ ................................ ................................ ........ 76 
3.3.4   Competition policy and price controls  ................................ ................................ .......... 76 
3.3.4.1   Competition policy  ................................ ................................ ................................ .76 
3.3.4.2   Price controls  ................................ ................................ ................................ ........ 79 
3.3.4.3   Consumer protection  ................................ ................................ .............................. 80 
3.3.5   State trading, state -owned enterprises, and privatization  ................................ .............. 80 
3.3.6   Government procurement  ................................ ................................ .......................... 82 
3.3.7   Intellectual property rights  ................................ ................................ ......................... 87 
3.3.7.1   Industrial property  ................................ ................................ ................................ .88 
3.3.7.1.1   Patents and utility models  ................................ ................................ .................... 88 
3.3.7.1.2   Trademarks  ................................ ................................ ................................ ........ 90 
3.3.7.1.3   Geographical indications  ................................ ................................ ...................... 91 
3.3.7.1.4   Plant varieties  ................................ ................................ ................................ .....91 
3.3.7.1.5   Layout designs of integrated circuits (topographies)  ................................ ................ 91 
3.3.7.1.6   Trade secrets  ................................ ................................ ................................ ......92 
3.3.7.2   Copyright and related rights  ................................ ................................ .................... 92 
3.3.7.3   Enforcement  ................................ ................................ ................................ .......... 94 
3.3.7.3. 1  Domestic enforcement  ................................ ................................ ......................... 95 
3.3.7.3.2   Enforcement by Customs  ................................ ................................ ..................... 95 
3.3.7.3.3   Judicial action  ................................ ................................ ................................ .....96 
4  TRADE POLICIES BY SE CTOR  ................................ ................................ ......................  98 
4.1  Agriculture, Forestry, and Fisheries  ................................ ................................ ................ 98 
4.1.1   Agriculture  ................................ ................................ ................................ ............... 99 
4.1.1.1   Characteristics and policy objectives ................................ ................................ ......... 99 
4.1.1.2   Legislative framework  ................................ ................................ ...........................  101 
4.1.1.3   Production and trade  ................................ ................................ ............................  101 
4.1.1.4   Trade measures  ................................ ................................ ................................ ... 102 
4.1.1.4.1  Tariffs  ................................ ................................ ................................ ..............  102 
4.1.1.4.2   Tariff quotas  ................................ ................................ ................................ ..... 102 
4.1.1.4.3   Special safeguard measures  ................................ ................................ ...............  102 
4.1.1.4.4   State trading  ................................ ................................ ................................ .... 103 
4.1.1.4.5   Export promotion, restriction and prohibition  ................................ ........................  104 
4.1.1.5   Domestic support measures  ................................ ................................ ..................  104 
4.1.1.5.1   Notified support levels  ................................ ................................ .......................  104 
4.1.1.5.2   Selected incentives and support  ................................ ................................ ..........  105 
4.1.1.5.2.1   Price support – guaranteed purchases  ................................ ...............................  105 WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.1.1.5.2.2   Fertilizer subsidies  ................................ ................................ ..........................  105 
4.1.1.5.2.3   Interest subsidy  ................................ ................................ .............................  106 
4.1.1.5.2.4   Insurance subsidies  ................................ ................................ ........................  106 
4.1.1.5.2.5   Disaster relief programmes  ................................ ................................ ..............  106 
4.1.1.5.2.6   Support for Diversified Crops programme  ................................ ..........................  106 
4.1.1.5.2.7   Small Landlords, Big Tenants Policy  ................................ ................................ .. 107 
4.1.1.5.2.8   Support to discontinue tobacco production  ................................ ........................  107 
4.1.1.5.2.9   Other  ................................ ................................ ................................ ............  107 
4.1.2   Forestry ................................ ................................ ................................ .................  107 
4.1.3   Fisheries  ................................ ................................ ................................ ................  108 
4.1.3.1   Overview  ................................ ................................ ................................ ............  108 
4.1.3.2   Legal and institutional framework  ................................ ................................ ..........  109 
4.1.3.3   Production and trade  ................................ ................................ ............................  110 
4.1.3.4   Trade measures  ................................ ................................ ................................ ... 111 
4.1.3.5  Export promotion, restrictions and prohibitions  ................................ ........................  111 
4.1.3.6   Subsidies and other public sector support  ................................ ...............................  111 
4.2  Mining and Energy  ................................ ................................ ................................ ..... 112 
4.2.1   Mining  ................................ ................................ ................................ ...................  112 
4.2.2   Energy  ................................ ................................ ................................ ..................  113 
4.2.2.1   Overview  ................................ ................................ ................................ ............  113 
4.2.2.2   Electricity  ................................ ................................ ................................ ............  115 
4.2.2.3   Hydrocarbons and natural gas  ................................ ................................ ...............  117 
4.3  Manufacturing  ................................ ................................ ................................ ...........  118 
4.3.1   Overview  ................................ ................................ ................................ ...............  118 
4.3.2   Production and trade  ................................ ................................ ...............................  119 
4.3.3   Trade measures  ................................ ................................ ................................ ...... 120 
4.3.4   Incentives  ................................ ................................ ................................ ..............  120 
4.4  Services  ................................ ................................ ................................ ...................  120 
4.4.1   Overview  ................................ ................................ ................................ ...............  120 
4.4.2   Financial services  ................................ ................................ ................................ .... 121 
4.4.2.1   Banking and finance  ................................ ................................ .............................  122 
4.4.2.1.1   Institu tional and legislative framework  ................................ ................................ . 123 
4.4.2.1.2   Market access  ................................ ................................ ................................ ... 123 
4.4.2.1.3   Prudential regulations and capital adequacy requirements  ................................ ...... 124 
4.4.2.2   Securities  ................................ ................................ ................................ ............  124 
4.4.2.3   Insurance  ................................ ................................ ................................ ...........  126 
4.4.2.3.1   Institutional and legislative framework  ................................ ................................ . 127 
4.4.2.3.2   Market access  ................................ ................................ ................................ ... 128 
4.4.3   Telecommunications services  ................................ ................................ ...................  128 
4.4.4   Transport services  ................................ ................................ ................................ .. 131 WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.4.4.1   Maritime transport  ................................ ................................ ...............................  131 
4.4.4.2   Air transport  ................................ ................................ ................................ ........  132 
4.4.4.3   Road transport  ................................ ................................ ................................ .... 133 
4.4.4.4   Rail transport  ................................ ................................ ................................ ...... 133 
4.4.5   Tourism services  ................................ ................................ ................................ ..... 134 
5  APPENDIX TABLES  ................................ ................................ ................................ ... 136  
 
CHARTS  
 
Chart 1.1 Product composition of merchandise trade, 2013 and 2017  ................................ .......24 
Chart 1.2 Direction of merchandise trade, 2013 and 2017  ................................ ....................... 25 
Chart 3.1 Average applied MFN and bound tariff rates, by HS section, 2013 and 2018  ................ 48 
Chart 3.2 Distribution of MFN applied tariff rates, 2013 and 2018  ................................ ............ 48 
Chart 3.3 Tariff escalation by two -digit ISIC industry, 2013 and 2018  ................................ ......49 
Chart 4.1 Total energy supply, 2017 ................................ ................................ ...................  114 
Chart 4.2 Interest rate spread, January 2008 -October 2017  ................................ ..................  124 
Chart 4.3 Fixed and mobile operators, market share, December  2017 ................................ .... 130 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2013 -17 ................................ .......................... 15 
Table 1.2 Basic economic indicators, 2013 -17 ................................ ................................ ........ 17 
Table 1.3 Balance of payments, 2013 -17 ................................ ................................ .............. 22 
Table 1.4 Trade in services, 2013 -17 ................................ ................................ .................... 26 
Table 1.5 Inbound and outbound flows of direct investment, by activity, 2014 -17 (approval 
basis)   ................................ ................................ ................................ ............................... 27 
Table 1.6 Inbound and outbound flows of direct investment, by source and destination, 
2014-17 (approval basis)  ................................ ................................ ................................ ....27 
Table 2.1 Principal trade -related laws, January 2018  ................................ .............................. 32 
Table 2.2 WTO dispute settlement cases involving Chinese Taipei, 
January  2014-January  2018 ................................ ................................ ................................ 34 
Table 3.1 Structure of the t ariff schedule, 2013 and 2018  ................................ ....................... 47 
Table 3.2 Summary analysis of the preferential tariff, 2017  ................................ ..................... 51 
Table 3.3 Prior approval requirement for import licenses, 2018  ................................ ................ 53 
Table 3.4 Tax refunds on incoming inputs for export manufactures, 2014 -17 ............................ 58 
Table 3.5 Structur e of direct and indirect tax revenue, 2013 -17 ................................ ............... 60 
Table 3.6 Competition policy enforcement statistics, 2012 -17 ................................ .................. 78 
Table 3.7 Price -stabilization measures  ................................ ................................ .................. 79 
Table 3.8 Indicative list of publicly owned enterprises, 2018  ................................ .................... 81 
Table 3.9 Procurement by origin, 2014 -17 ................................ ................................ ............ 82 
Table 3.10 Procurement share by type of procedure, 2 014-17 ................................ ................. 84 
Table 3.11 Patents applied for and granted, 2012 -17................................ .............................. 89 WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Table 3.12 Trademarks and related data, 2012 -17 ................................ ................................ .90 
Table 3.13 IPR enforcement by Customs, 2014 -17 ................................ ................................ .96 
Table 3.14 IPR enforcement within the market, 2012 -17 ................................ ......................... 97 
Table 4.1 Value of agriculture, forestry and fisheries  production, 2012 -16 ................................ .98 
Table 4.2 Budgetary outlays for agriculture, forestry, and fisheries by type of expenditure, 
2015-17 ................................ ................................ ................................ ........................... 98 
Table 4.3 Agricultural land, 2012 -15................................ ................................ ..................... 99 
Table 4.4 New Agricultural Policy objectives  ................................ ................................ ........  100 
Table 4.5 Value of agricultural production, 2012 -16 ................................ .............................  101 
Table 4.6 Special safeguard measures invoked, 2014 -17 ................................ ......................  103 
Table 4.7 Arrangements for rice, 2015 -16 ................................ ................................ ...........  104 
Table 4.8 Guaranteed purchases of rice  ................................ ................................ ..............  105 
Table 4.9 Fishery production 2013 -16 ................................ ................................ .................  110 
Table 4.10 Fishery production, consumption and trade, 2012 -15................................ ............  111 
Table 4.11 Subsidies to the fishing sector, 2013 -16 ................................ ..............................  111 
Table 4.12 Volume and value of mining production, 2014 -2017 ................................ .............  112 
Table 4.13 Renewable energy incentives, 2018  ................................ ................................ .... 116 
Table 4.14 Production volume and exports of petroleum products, 2014 -16 ............................  117 
Table 4.15 Industrial production value, 2014 -17 ................................ ................................ .. 119 
Table 4.16 Banking indicators, 2014 -17 ................................ ................................ ..............  122 
Table 4.17 Performance of the securities sector, 2014 -17 ................................ .....................  125 
Table 4.18 Performance of the insurance sector, 2014 -17 ................................ .....................  126 
Table 4.19 Telecommunications market, 2013 -May 2017  ................................ ......................  128 
Table 4.20 Air transport of passengers and cargo, 2012 -17 ................................ ...................  132 
 
BOXES  
 
Box 2.1 Investment framework, January 2018  ................................ ................................ .......38 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise exports, by group of products, 2013 -17 ................................ ............  136 
Table A1.2 Merchandise imports, by group of products, 2013 -17 ................................ ...........  138 
Table A1.3 Merchandise exports, by destination, 2013 -17 ................................ .....................  140 
Table A1.4 Merchandise imports, by origin, 2013 -17 ................................ ............................  141 
 
 
Table A2.1 Chinese Taipei's notifications to the WTO, January 2014 to January 2018  ...............  142 
Table A2.2 Summary features of RTAs in force, January 2018  ................................ ...............  146 
Table A2.3 Imports from LDCs under PTAs, 2014 -2017 ................................ .........................  148 
Table A2.4 Investment prohibitions and res trictions, 2018  ................................ ....................  150 
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  Table A3.1 MFN applied tariff summary, 2018  ................................ ................................ ...... 152 
Table A3.2 Non -ad valorem  applied tariffs and their respective ad valorem  equivalents  ............  153 
Table A3.3 Tariff -rate quotas and utilization, 2012 -2018 ................................ .......................  156 
Table A3.4  Prohibited exports, July 2017  ................................ ................................ ............  157 
Table A3.5 Export permits, May 2018  ................................ ................................ .................  158 
Table A3.6 Goods subject to commodity tax, 2018  ................................ ...............................  159 
Table A3.7 Main production assistance measures, 2014 -17 ................................ ...................  161 
Table A3.8 CNS and their equivalence with international standards, end -2017 .........................  170 
Table A3.9 Legal instruments on competition, 2018  ................................ ..............................  171 
 
 
Table A4.1 Domestic support to agriculture and livestock, 2009 -12 ................................ ........  172 
 
 
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  SUMMARY  
1. Since its previous Trade Policy Review in 2014, the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu's (Chinese Taipei) relatively strong fundamentals and well developed 
outward -looking economy have helped maintain macro -financial stability a nd ensure the resilience 
of its export -led economy. During the review period, annual GDP growth ranged from 0.8% (2015) 
to 4% (2014), and its annual average rate for the period 2014 -17 stood at 2.3%, a major 
slowdown compared to previous performance (avera ging 4.3% over 2002 -13). Monetary and fiscal 
stimulus measures are being used to spur economic recovery. Despite some innovation - and 
labour -related concerns, Chinese Taipei has maintained its position among the world's most 
competitive economies, with amo ng the highest living standards, while registering a slight decline 
in income inequality. Weaknesses in some areas are being addressed via ongoing reforms. 
Whereas inflation evolved cyclically (0.6% in 2017), the unemployment rate dropped progressively 
(3.8% in 2017).  
2. During the review period, trade and trade -related structural reforms (e.g. in the areas of 
trade facilitation, taxation, competition policy and intellectual property rights) were undertaken. 
Following a slowdown in 2015, both labour and total factor productivity increased in 2016 -17 
largely due to a rise in total production accompanied by a decrease in the number of working 
hours, thereby improving Chinese Taipei's international competitiveness. Since 2014, a loose 
monetary policy, involving fo ur policy rate cuts from 1.875% to 1.375%, has provided a monetary 
stimulus to growth and helped to build a stable financial environment.   
3. Chinese Taipei's managed floating exchange rate regime has allowed for exchange rate 
flexibility and foreign exchang e intervention, thus helping to diminish or prevent speculative 
attacks. During most of the review period, the nominal exchange rate depreciated (except in 2017) 
– as did  the real effective exchange rate, partly due to the strengthening of the US dollar. T he 
current account registered a larger overall surplus, averaging 13.5% of GDP in the period 2014 -17 
compared to 8.6% over the period 2010 -13, inter alia , reflecting weak internal demand and falling 
global oil prices. Foreign exchange reserves have increas ed steadily mainly due to their 
management returns. Gross external debt decreased from 33.5% of GDP in 2014 to 32.5% in 
2016.  
4. The openness of the Chinese Taipei economy to international trade, and its integration into 
the world economy and global value ch ains continued to be reflected by the steadily high ratio of 
its trade (exports plus imports) in goods and services to GDP. This stood at 117.7% in 2017, 
though lower than in 2014 partly due to weaker global demand. International trade and inbound 
direct i nvestment trends reflect the continuous importance of Asia -Pacific as Chinese  Taipei's main 
market and supplier , with China, Japan, the United States and the European Union remaining its 
major individual trading partners, whereas its main inbound direct in vestment partners were: the 
European  Union; Hong Kong, China; and Japan. Chinese Taipei continues to encourage 
investment, through incentives and facilitation measures , in order to provide a new engine for 
economic growth. In 2018, Chinese Taipei's negativ e list containing investment prohibitions and 
restrictions was amended to allow overseas investment in ship leasing services and the cultivation 
of certain crops. Consideration is being given to remov ing a pre -investment screening review 
requirement and re placing it with a post -investment registration mechanism.  
5. Since 2014,  the overall structure and functions of the executive, legislature and judiciary  of 
Chinese Taipei have remained broadly unchanged . However, a restructuring and streamlining of 
the execut ive branch has been ongoing with a view to increasing its flexibility and effectiveness; 
this has included the creation of a development council responsible for planning and supervising 
development policies. In addition to Chinese Taipei's development plan  for the period 2017 -2020, 
key economic strategies being implemented to drive innovation, promote regional cooperation and 
meet long -term infrastructural needs are respectively: the 5+2 Industrial Innovation Plan, the New 
Southbound Policy and the Forward -Looking Infrastructure Development Programme.  
6. Chinese Taipei's trade policy continues to be based on the premise that trade openness, 
global and regional connectivity, economic growth and performance, living standards and 
innovation are strongly linked. It  continues to pursue a combined unilateral, bilateral, regional and 
multilateral approach to trade policy. Chinese Taipei currently has RTAs in force with nine 
economies; those entering into force during this review period were RT As with Singapore and 
New Zealand, covering goods and services, and a cooperation agreement with Paraguay. It WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  continues to offer non -reciprocal preferences to all least -developed countries. Since 2014, it 
participated as a complainant in three new WTO dispute settlement cases and r eserved its third 
party rights in 22  cases.  
7. Chinese Taipei has maintained a strong record of notifications to the WTO, although an 
up-to-date notification on domestic support to agriculture is pending. New measures have been 
taken to foster greater public  participation in, and transparency of, policy formulation through the 
establishment of an online public policy platform and the introduction of deadlines for responses by 
the public sector to stakeholder comments. Efforts to improve the business environme nt, which is 
already highly ranked according to World Bank indicators, include enacted or planned legal reforms 
to: relax restrictions on the recruitment of overseas professionals; support SMEs; and create a 
friendlier environment for start -ups and entrepr eneurs.  
8. The general thrust of Chinese Taipei's trade policy has remained relatively unchanged during 
the period under review. The tariff remains one of the main trade policy instruments and a 
significant source of tax revenue (5.2% of total tax revenue in  2016). Although over 98% of tariff 
lines are ad valorem , and therefore transparent, the tariff involves a multiplicity of rates 
(92 ad valorem  duties, 42 alternate duties, and 16 specific duties), the same as in 2013 but 
differently allocated. As a result  of a reduction of average ad valorem  equivalent (AVEs) rates, the 
implementation of the expansion of the Information Technology Agreement (ITA) and tariff 
nomenclature changes, the simple average applied MFN tariff rate was slightly reduced from 7.8% 
in 2013 to 7.2% in 2018. Tariff protection varies substantially across and within sectors averaging 
17.8% for agricultural products and 5.1% for industrial goods in 2018 (WTO definitions). Peak 
tariff rates continue to apply to agriculture and range from zero to 1,059.6% (betel nuts); as in 
2013, the majority of rates (81.2%) are at 10% or below. Under its multilateral agricultural 
market -access commitments, Chinese Taipei applies tariff -rate quotas (TRQs) whose high 
out-of-quota rates make, in effect, certain imports almost prohibitive; during the review period, 
their average fill ratio ranged from 47.1% in 2015 to 56.5% in 2016. To accelerate industrial 
development and accommodate domestic supply and demand, industrial raw materials, staple 
goods and daily nec essities continued to benefit from tariff reduction or exemption. All tariff 
rates/lines are bound and binding commitments relating to the ITA expansion are to be fully 
implemented by 2021; the average gap of 0.3 percentage points between applied and bound  MFN 
rates suggests high predictability in the tariff. Efforts to expand RTAs contributed to the reduction 
of the simple average preferential tariff rate from half to less than a third of the MFN average 
applied tariff rate.  
9. During the review period, Chine se Taipei's trade facilitation developments included the 
ratification of the WTO Trade Facilitation Agreement (TFA) in 2015, the adoption of amendments 
clarifying relevant legislation (Customs Act), the enhancement of integration of online operations 
with the Customs -Port-Trade Single Window, facilitation in the exchange of certificates of origin, 
and the introduction of expeditious customs clearance services. The customs valuation regime and 
its main method used, the transaction value, have remained unchan ged; an advance ruling system 
on non -preferential rules of origin has been enforced as from 2016. In addition to other charges, a 
0.04% Trade Promotion Service Fee continues to be collected on incoming and outgoing 
merchandise; harbour dues for overseas ro utes remain 60% higher than for domestic routes.  
10. Import prohibitions, restrictions and licensing remain in place to, inter alia , protect public 
morals, human life or health as well as to enforce obligations under international agreements. The 
scope of impo rt bans rose from 70 ten -digit HS items (2013) to 91 (2018); the coverage of import 
permits increased to 131 items (126 in 2014). During the review period, the legislative framework 
governing anti -dumping and countervailing measures was revised in certain areas, and 
anti-dumping action remained relatively stable. Chinese Taipei continued to use anti -dumping 
provisions, mainly against imports of carbon steel plate originating mostly in Asia; it initiated 
11 anti-dumping investigations (2013 -16) and had 19 fi nal measures in effect as at end -2017. 
Although no countervailing measures have been taken so far, in April 2018 Chinese Taipei initiated 
a countervailing duty investigation against certain steel products from China. Price - or volume -
triggered special safe guard (SSG) action has been taken against imports of several agricultural 
product categories.  
11. Chinese Taipei continued not to levy any taxes on outgoing merchandise. During the review 
period, the scope of export prohibitions was expanded; the coverage of licensing and approvals 
remains relatively important. Customs duty and internal taxes paid on incoming raw materials WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  used in exports continue to be refundable. Indirect tax incentives for enterprises operating in 
export processing and free trade zones rema ined in place. Export finance, guarantees and credit 
insurance at preferential terms have assisted manufacturers in expanding exports inter alia  to the 
ASEAN, South Asia, Australia, and New Zealand markets in line with the New Southbound Policy 
objectives.  
12. Measures involving various tax and non -tax concessions such as grants and low -interest 
loans continued to support production and trade of certain agricultural, fishing, oil and gas and 
manufacturing activities, as well as to inter alia  encourage SMEs, R&D , science -based activities, 
the reasonable operation of enterprises, private participation in infrastructure projects and regional 
development. Chinese Taipei's relatively complex indirect tax structure remains unchanged and 
certain tax rates were raised ( e.g. non -value -added business tax, tobacco tax and profit seeking 
enterprise income tax). As from 2017, overseas companies undertaking online sales of services to 
local consumers have been required to register as businesses, obtain a tax identity number an d 
file VAT in Chinese Taipei.  
13. The number of Chinese Taipei standards ha s been reduced over the review period and those 
adopted in technical regulations (mandatory) stood at 2.1% (2017) of all standards; 99% of 
standards remain equivalent to international o nes. The regulatory framework governing SPS and 
related measures was amended in several areas including quarantine. The quarantine fee for 
incoming and outgoing animals, plants, wheat, barley, corn, and soy beans continues to be 
charged on an ad valorem  basis. A traceability label system for local agricultural products was 
introduced. During the review period, Chinese Taipei was subject to three TBT -related specific 
trade concerns.  
14. Public -sector involvement in the economy persists as privatization efforts r emain widely 
opposed. Public -sector participation continues to be spread over several activities including rice, 
sugar, tobacco and liquor, petroleum, aerospace, shipbuilding, electricity, water supply, banking 
and finance, engineering, and postal services . Market monopolies are retained in electricity, water 
supply and postal services. Chinese Taipei is a member of the WTO Agreement on Government 
Procurement (GPA), and continues to use non -GPA covered public procurement to support SMEs, 
environment -friendl y products, indigenous suppliers and people with disabilities; according to the 
authorities, price preferences available to local suppliers for contracts not subject to GPA 
commitments have never been applied. Changes were made to the main public procureme nt 
legislation and procurement remains decentralized. The share of non -local suppliers in the total 
value awarded varied and peaked  at 25.5% in 2017 , while their share in the number of contracts 
awarded was relatively stable . In value terms, open tendering  remains by far the most used 
procurement method (79.6%) followed by limited tendering (14.2%).  
15. The competition policy regulatory framework, which covers all activities and enterprises 
(including publicly  owned enterprises) except those subject to sector -specific laws, has been 
subject to the widest in range, largest in scale and most influential reforms since its entry into 
force. They included: the Fair Trade Commission's institutional independence and exclusive 
responsibility for enforcement; the distinc tion of free competition issues from fair competition 
issues; the threshold in the definition of monopolistic enterprises; the revision of merger 
regulations and investigation rules; and the establishment of an anti -trust fund. In mid -2015, the 
largest fin e ever was imposed for abuse of monopolistic status. Price monitoring and/or 
stabilization measures inter alia  on energy products, construction materials, bulk commodities, 
pharmaceuticals and telecom services remain in place. Consumers' rights were genera lly 
strengthened following amendments in the consumer protection legislation.  
16. Chinese Taipei's intellectual property rights legislation has been strengthened with 
amendments in areas such as patents, trademarks and copyrights including certain alignments 
with international provisions, whereas work is under way in other areas. E -filing of patents and 
trademarks has resulted in fewer complications and delays. Cooperation with certain overseas 
intellectual property offices was reinforced through specific agre ements. Overall, Chinese Taipei's 
IPR enforcement system, considered among the most efficient in the region, continued to ensure 
protection to rights holders.  
17. The agriculture sector continues to account for a small share of GDP (1.7%) and 
employment (4.9% ), and most food is imported. Chinese Taipei's overall target of 40% food self -
sufficiency suffered a setback in 2015 due to climatic conditions. Production of various agricultural WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  items remains protected by high tariffs (up to 1,059.6%), SSGs and various support mechanisms. 
Mitigating and disaster relief programmes are also available. While programmes continue to 
encourage crop diversification and i mport substitution, according to the authorities, new 
agricultural policy goals aim to create a multi -functional agricultural sector, rather than merely 
providing subsidies as in the past. Chinese Taipei offers an environmental payment option to rice 
farme rs to encourage a movement away from price support for rice and no longer purchases 
tobacco at guaranteed prices. Assistance to increase productivity has also been available through 
new programmes to introduce new technology into the sector. Export subsidi es are not provided. 
Key challenges facing the sector include fragmented farms and ageing farmers, low incomes in the 
sector and vulnerability to natural disasters.  
18. Over 60% of the surface area is forested , with reforestation efforts having gradually born e 
fruit over the past decades. The vast majority of forest is publicly  owned. Initiatives to combat 
illegal logging and promote the utilization of locally  produced timber have been taken. Public 
sector support in fisheries includes grants to fishermen to r educe their fishing capacities, and 
insurance policy contributions. Tariffs applied to fish imports average 20.4%. There were several 
legislative, regulatory and institutional developments over the review period, largely to strengthen 
Chinese Taipei's fram ework for preventing illegal, unreported and unregulated fishing. Farmers 
benefit from free water and both farmers and fishermen are eligible for reduced -price gasoline and 
diesel.  
19. The mining and quarrying sector contributes a relatively small share to GDP  and 
employment. All mineral wealth is publicly owned, with exploitation being undertaken under 
concession agreements. Chinese Taipei continues to import nearly 98% of its energy supply and as 
such remains vulnerable to global commodity price movements. An  ambitious reform programme 
aims, inter alia , to increase the share of locally  produced renewable energy in the total energy mix 
to 20%, to transition to use of cleaner energy, and to end nuclear  generation by 2025. A recent 
amendment to the Electricity Ac t has liberalized the electricity sales market for electricity 
generated from renewable sources for the first time. Incentives are being provided, largely 
through feed -in tariffs, to encourage renewable energy generation. An electricity price formula and 
a price stabilization fund are aimed at mitigating the impact of price volatility in the short term. 
Publicly  owned enterprises continue to play a significant role in the sector.  
20. Manufacturing remains a pillar of Chinese Taipei's economy, accounting for ar ound 30% of 
GDP, close to 27% of employment and more than 90% of merchandise exports. The m ain exports 
are electronic integrated circuits and micro assemblies and various chemical and basic metal 
products. Chinese Taipei envisages its industry being charac terized by cross -industry technology 
integration  in the future  and supporting strategies are being put in place. Tariffs on manufactured 
goods range from zero to 30%; the highest rates apply to certain large passenger and commercial 
vehicles, vehicle parts  and motorcycles. A wide range of general and sector -specific incentives 
(both fiscal and non -fiscal) are available to businesses.  
21. The share of services in GDP and its share in total employment remained relatively stable 
during the period under review, and  were 60% and 59.3% respectively in 2017. Despite a 
considerable decline in its service trade deficit, Chinese Taipei continues to be a net importer of 
services. Public -sector participation in the banking sector remains significant. During the review 
period, regulatory reforms in banking, inter alia,  have covered improving banks' liquidity risk 
profile, adhering to international norms, and strengthening the framework to combat money 
laundering and terrorism financing. Legal reforms have aimed, inter alia,  to strengthen supervision 
of the insurance sector and combat illegal activities.  
22. Chinese Taipei's mobile phone and mobile broadband penetration rates remain high. There 
remain limits on overseas investment in certain types of telecommunications companies. A 
partially publicly  owned telecom company continues to retain a dominant position in several 
market segments.  
23. Public sector involvement in the transport sector remains significant; all airports are publicly 
owned and managed, and Chinese Taipei retains a n equity stake in one airline and one shipping 
company. Inbound investment restrictions are in place with respect to ownership of locally  
registered airlines and ships. Only locally registered ships and airlines may provide cabotage 
services. Restrictions on inbound investment in certain road transport businesses remain in place.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  24. The tourism sector is continuing to develop rapidly. Efforts are being made to diversify 
markets for overseas visitors and to improve and diversify Chinese Taipei's tourism offeri ng. The 
sector remains open to overseas investment. New subsidy programmes have been introduced to 
encourage the development of the cruise and fly -cruise segments as well as to encourage visits 
from overseas incentive tour groups.  
25. Chinese Taipei's r eal GD P is forecast to slow down before gaining momentum in the medium  
run. Despite its solid fundamentals, downside risks to the economic outlook remain. 
Notwithstanding its existing buffers, the economy remains vulnerable to exogenous risks such as 
those relat ing to developments in the global economic outlook and international trade, and 
regional geopolitical developments. Future prosperity and sustainable growth depend on 
implementing total factor productivity -enhancing structural reforms, especially those aim ed at 
supporting the continuing shift of the economy from industry to services, with a greater focus on 
raising quality and increasing value added within this sector. These and related reforms, including 
tax, privatization, labour market and continued regu latory reforms, would increase the flexibility of 
the Chinese Taipei economy and its ability to respond to growing external competition, thus 
enabling it to continue meeting its economic and welfare objectives including inclusive growth and 
a narrower weal th divide.  
 
  WT/TPR/S/377 • Separat e Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  1  ECONOMIC ENVIRONMENT   
1.1.  Since its previous Trade Policy Review in 2014, the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu (Chinese Taipei) has been through a cyclical growth path, but its 
relatively strong fundamentals and well developed outward -looking economy have helped maintain 
macro -financial stability (Sections 1.2.1 and 1.2.3).1 Followi ng a 2014 peak, growth bottomed out 
abruptly in 2015 partly due to a slowdown in world trade and competition from emerging 
economies . As from 2017 , recovery has been supported by a stimulus plan in the face of 
uncertainty regarding  growth developments in its two of its large st trading partners, the 
United  States and China (Section 1.2.1 and below). Despite some innovation - and labour -related 
concerns , inter alia due to relatively stagnant wages and their shrinking share of GDP, 
Chinese  Taipei has maintained  its position among the world's most competitive economies , with 
among the highest  living standards , while registering a slight drop in income inequality; 
weaknesses in some areas are  being  addressed via ongoing reforms (Sections 1.2.4.1, 1.2.4.3 
and 1.2.4.4).2 Whereas inflation evolved cyclically (0.6% in 2017), the unemployment rate 
dropped progressively to 3.8% in 2017 (Sections 1.2.1 and 1.2.2). International trade and 
inbound direct investment trends reflect the continuous importance of Asia -Pacific as  
Chinese  Taipei's main market and supplier , with China, Japan, the  United States and the 
European  Union remaining its major individual trading partners. Its inbound direct investment 
partners were: the European  Union; Hong Kong, China; and Japan (Section 1 .3.2).  
1.2.  Despite Chinese Taipei's solid fundamentals, downside risks to the economic outlook remain. 
Endogenous long -run risks include the shrinking of the labour force , although ongoing 
technological upgrading is expected to maintain productivity gains, th us ensuring that GDP growth 
per capita stays level.3 Sustainable growth will depend on the continuing shift of the economy from 
industry to services, with a greater focus on raising quality and increasing value added within this 
sector, thus partly making up for Chinese Taipei's relative decline in the region as a high 
value -added exporter, but not sufficient to offset the new norm of lower growth. Regarding 
exogenous factors or risks, recent stimuli to demand , such as the improvements in the global 
economi c outlook and the strengthening of international trade, are to boost consumption and 
exports.4 However, according to the authorities and other sources, several aspects such as the 
level of debt and reforms in China, cross -strait relations, trade policies f avoured  by the 
United  States, the potential hike of the Federal Reserve's benchmark rate (Section 1.2.3.1), as 
well as regional geopolitical risks , could cause uncertainties.  
1.1  Main Features of the Economy  
1.3.  Chinese Taipei remains a highly developed outward -oriented trade -driven economy with a 
population of 23.6 million (as of March 2018).5 It is relatively well diversified, with the services 
                                                
1 In 2017, Chinese Taipei ranked 36th out of 130 economies in the FM Global Resilience Index . Twelve 
drivers of operational resilience are grouped into three factors: economic, supply chain and risk quality. These 
combine to form the composite index. FM Global Resilience Index online information. Viewed at: 
https://www.fmglobal.com/research -and-resources/tools -and-resources/resilienceindex/explore -the-
data/?&sn=1 . 
2 In 2017, Chinese Taipei ranked 14th out of 63 economies (sam e rank as in 2014) in the IMD World 
Competitiveness Yearbook . Furthermore, in 2017/18, Chinese Taipei ranked 15th among 137 economies 
(14th out of 144 in 2014/15) in the WEF Global Competitiveness Index . According to the WEF, in 2017/18 , 
despite improvemen ts in several areas, policy instability, restrictive labour relations (Section 1.2.4.4) and 
restricted potential for innovation remained a concern. Furthermore, according to Directorate General of 
Budget, Accounting and Statistics (DGBAS) figures, Chinese Taipei's Gini coefficient, one of the most commonly 
used measures to reflect income inequality, dropped from 0.342 in 2011 to 0.336 in 2013 and remained the 
same until 2016. The coefficient ranges between 0 (complete equality) and 1 (complete inequality). World 
Economic Forum (2018), The Global Competitiveness Report 2017 –2018, Geneva. Viewed at: 
http://www3.weforum.org/docs/GCR2017 -
2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf ; IMD online information. 
Viewed at: file:///D:/Users/tarasenko/Downloads/wc y-5yrs---final.pdf ; and online information 
(http://focustaiwan.tw/news/aeco/201608190023.aspx  and https://www.bloomberg.com/news/articles/2013 -
03-13/taiwan -shrinks -wealth -gap-as-xi-s-communists -struggle -in-china ). 
3 Economist Intelligence Unit online information. Viewed at: 
http://country.eiu.com/article.aspx?articleid=815457665&Country=Taiwan&topic=Economy&subtopic=Long -
term+outlook&subsubtopic=Summary . 
4 Online Academi a Sinica 2018 Economic Forecast 
(http://www.econ.sinica.edu.tw/english/content/downloads/list/2013093010101097521/ ). 
5 Online information. Viewed at: https://eng.stat.gov.tw/mp.asp?mp=5 .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  sector constituting the backbone of the economy . In terms of GDP share , services  declined  slightly 
over the review per iod (60% in 2017) , followed by manufacturing (30.8% ) (Section  1.2.1); both 
sectors are important for employment and export earnings (Table 1.1). However, its heavy 
dependence on exports exposes the economy to fluctuations in global demand.6 Chinese  Taipei 
maintains a well -developed infrastructure, an educated workforce, and a pro -business attitude 
while benefiting from a geographically strategic location.7 The economy is largely driven by 
small - and medium -sized enterprises (SMEs), which ben efit from specific production assistance 
measures (Sections 3.3.1.2.1 and 3.3. 6). Despite internal debate on social inequality, 
Chinese  Taipei's relative poverty rate is low by international levels and stood at 6.6% in 2016 
(7.7% in 2012).8  
Table 1.1 Selected macroeconomic indicators, 2013 -17 
 2013  2014  2015  2016  2017a 
Accounts (% change, unless otherwise indicated)       
Real GDP  2.2 4.0 0.8 1.4 2.9 
 Consumption  1.7 3.5 2.0 2.6 1.6 
 private consumption  2.3 3.4 2.6 2.3 2.3 
 government consumption  -0.8 3.7 -0.1 3.7 -1.1 
 Gross fixed capital formation  5.3 2.1 1.6 2.3 0.0 
 Exports of goods and non -factor services  3.5 5.9 -0.4 1.9 7.4 
 Imports of goods and non -factor services  3.4 5.7 1.1 3.5 5.2 
  XGS/GDP (%) (at current market price)  69.5 69.8 64.3 62.8 65.2 
  MGS/GDP (%) (at current market price)  60.4 59.6 51.4 50.6 52.5 
      
Unemployment rate (%)  4.2 4.0 3.8 3.9 3.8 
      
Productivity       
Labour productivity of all industries  2.0  3.9  0.5  4.4  .. 
Net fixed capital stock productivity of industrial & service sectors  -3.9  -0.6  -5.8  -4.0  .. 
Multifactor productivity of industrial & service sectors  0.1  2.4  -1.8  0.7  .. 
Prices and interest rates (%, unless otherwise indicated)       
Inflation (CPI, % change)  0.8  1.2  -0.3  1.4  0.6  
Discount rate of the central bank (end -period)  1.875  1.875  1.625  1.375  1.375  
Commercial 1 -year deposit rate (end -period)  1.360  1.360  1.210  1.040  1.040  
Commercial base lending rate (end -period)  2.882  2.883  2.829  2.631  2.632  
 Interest rate spread  1.522  1.523  1.619  1.591  1.592  
Exchange rate       
NT$/US$ (period average)  29.770  30.368  31.898  32.318  30.439  
Real effective exchange rate (% change)  1.1 0.0 -1.7 -2.3 3.5 
Nominal effective exchange rate (% change)  1.9 0.0 2.0 -0.6 6.8 
Fiscal balanceb (% of GDP)  -1.4 -0.8 0.1 -0.3 .. 
 Total revenue  16.1 15.6 15.9 15.7 .. 
  Tax revenue  11.6 11.9 12.4 12.6 .. 
 Total expenditure  17.5 16.4 15.8 16.0 .. 
Central administration balance  -0.8 -0.8 -0.1 -0.3 -0.8 
 Revenue  11.4 10.7 11.2 11.1 10.6 
 Expenditure  12.2 11.5 11.3 11.3 11.3 
General government debt  39.0 37.8 36.6 36.2 36.9 
Central administration debt  33.8 32.7 31.6 31.2 31.5 
Saving and investment (% of GDP)       
Gross  domestic savings  32.9 34.6 36.0 35.4 34.5 
Gross domestic investment  22.1 21.9 20.9 20.8 20.3 
Savings -investment gap  10.8 12.7 15.0 14.6 14.2 
External sector (% of GDP, unless otherwise indicated)       
Current account balance  9.7 11.4 14.2 13.7 14.7 
Net merchandise trade  10.7 11.3 13.9 13.3 14.1 
 Merchandise exports  74.7 71.4 64.1 58.4 61.0 
 Merchandise imports  64.0 60.1 50.2 45.1 46.9 
Services balance  -3.0 -2.2 -2.0 -1.9 -1.5 
                                                
6 The World Factbook online information. Viewed at: https://www.cia.gov/library /publications/the -world -
factbook/geos/tw.html .  
7 EIU (2017), Country Commerce , June 2017, New York. Viewed at: www.eiu.com . 
8 The relative poverty rate is defined by the Directorate General of Budget, Accounting and Stat istics 
(DGBAS) as the ratio of the number of people whose disposable income falls below the risk -of-poverty 
threshold. The risk -of-poverty threshold is set as 50% of the average disposable income which is calculated by 
dividing household disposable income by the square foot of household size. BTI (2016), Chinese Taipei Report . 
Bertelsmann Stiftung, 2016. Available at: https://www.bti -
project.org/fi leadmin/files/BTI/Downloads/Reports/2016/pdf/BTI_2016_Taiwan.pdf ; online data 
(https://photius.com/rankings/2017/economy/population_below_poverty_line_2017_ 0.html ). WT/TPR/S/377 • Separat e Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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   2013  2014  2015  2016  2017a 
 Services exports  7.1 7.8 7.8 7.8 7.9 
 Services imports  10.1 10.0 9.8 9.7 9.3 
Capital account  0.0 0.0 0.0 0.0 0.0 
Financial account  10.2 12.0 15.4 12.5 14.2 
 Direct investment  2.1 1.9 2.3 1.6 1.4 
Balance of payments  -2.2 -2.5 -2.9 -2.0 -2.2 
Terms of trade (2011=100)  101.1  103.3  114.3  112.7  110.3  
Merchandise exports (%  change)c -1.6 -0.8 -11.1 -8.0 12.9 
Merchandise imports (% change)c -3.3 -2.7 -17.2 -9.3 12.3 
Service exports (% change)c 5.5 13.8 -1.2 0.9 9.0 
Service imports (% change)c -2.4 2.4 -2.3 0.1 3.4 
Foreign exchange reserves (US$ billion)  416.8  419.0  426.0  434.2  451.5  
 in months of imports of goods and services  13.2 13.5 16.2 17.9 16.8 
Total external debt (US$ billion)  170.1  177.9  159.0  172.2  181.9  
 Short term (US$ billion)  155.6  163.3  144.8  160.0  169.2  
Debt service ratiod 1.7 1.5 1.6 2.1 1.9 
.. Not available.  
a  Provisional.  
b  Based on all levels of government.  
c  Growth rates are calculated based on BOP figures in US$.  
d  Debt service in per cent of exports of goods and services.  
Source : CBC online information. Viewed at: http://www.cbc.gov.tw ; online information. Viewed at: 
http://eng.stat.gov.tw ; online information. Viewed at: http://eng.dgbas.gov.tw ; and dat a provided 
by the authorities.  
1.2  Recent Economic Developments  
1.2.1   Growth, income, and employment  
1.4.  During the review period , the annual average GDP growth rate stood at 2.3% ( 2014-17), a 
major slowdown compared to the average of 4.3% over the period 2002 -13 (Table  1.1).9 More 
specifically , growth peaked in 2014 and bottomed out abruptly the year after , then rose 
progressively to slightly more than its 2013 level. The reasons for the overall slowdown include 
strong competition from emerging economies, remaining rest rictions on inbound direct investment, 
insufficient investment in R&D (Section 3.3.1.2.2), stagnant wages, and overreliance on exports as 
a driver of economic growth.10 To spur economic recovery in a challenging growth environment, in 
addition to a rather loose monetary policy stance and structural reforms, expenditure -driven action 
has been taken through: a March 2017 NT$882.4 billion (US$29 billion) stimulus plan desig ned to 
lift economic growth over the next eight years and help reduce the wealth gap between the cities 
and the countryside; an increase in higher minimum wages and additional funding for childcare 
and long -term care for the elderly ; pensions reform ; and c onstruction of homes (particularly social 
housing) (Section 1.2.3.1, 1.2.3.2 and 1.2.4).11 According to the DGBAS , real GDP is to grow 
by 2.4% (1.9% according to the IMF) in 2018, and is projected to slow down to 2% in 2019 (IMF) 
seemingly due to an ebbing of the global consumer  electronics cycle.12  
1.5.  Since 2014, the overall sectoral pattern of Chinese Taipei's GDP and employment has 
remained virtually unchanged (see above and Table 1.2). Following a slowdown in 2015 related 
                                                
9 WTO documents: WT/TPR/S/302/Rev.1, 18 December 2015; WT/TPR/S/232/Rev.1, 28 July 2010; and 
WT/TPR/S/ 165, 16 May 2006.  
10 Centre for East Asia Policy Studies (2014), Chinese Taipei's Economic Opportunities and Challenges 
and the Importance of the Trans -Pacific Partnership , January 2014. Viewed at: https://www.brookings.edu/wp -
content/uploads/2016/06/taiw an-trans-pacific -partnership -meltzer -012014.pdf . 
11 The stimulus plan includes a NT$420 billion Forward –Looking Infrastructure Construction Project with 
emphasis on water resource management, green energy construction, digital infrastructure and urban and 
rural infrastructure construction (Section 2.2). EIU (2017), Country Report , September, London. Viewed at: 
www.eiu.com  and EIU (2017), Country Commerce , June, New York. Viewed at: www.eiu .com; and o nline 
information ( https://www.reuters.com/article/us -taiwan -economy -stimulus/taiwan -unveils-29-billion -stimulus -
amid-uncertainty -over-u-s-china -idUSKBN16U0DF ). 
12 International Monetary Fund (2018), World Economic Outlook: Cyclical Upswing, Structural Change , 
Washington, DC, April; EIU (2018), Country Forecast , February, London. Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1386427122&mode=pdf ; online information 
(https://asia.nikkei.com/Politics -Economy/Economy/Taiwan -raises -2018-GDP-outlook -as-tech-demand -fuels-
exports ). WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  inter alia  to the growth drop and t he passing of labour legislation related developments 
(Section  1.2.4.4), both labour and total factor productivity increased in 2016 (Table 1.1) largely 
due to a rise in total production accompanied by a decrease in working hours; this trend has 
seemingly been followed by a decline in 2018.13 According to the authorities, the key to revive the 
economy, and therefore increase productivity and wages, is in innovation, which entails industrial 
upgrading and an increase in the value added of products and service s, thus boosting 
competition.14 According to the OECD "GVC Participation Index", based on the extent of each 
economy's export production connected with others, in 2011  Chinese Taipei ranked at the top 
among the Asia -Pacific economies with 69.1% of its expor ts comprising intermediate goods.15 
In 2011, its participation in GVCs (67.6%) and domestic value added in exports (57%) stood 
above the average level of developing and developed exporting economies.16  
Table 1.2 Basic economic indicators, 2013 -17 
  2013  2014  2015  2016  2017  
Real GDP (NT$ billion, 2011 prices)  14,929.3   15,529.6   15,654.8   15,875.6   16,329.2  
Current GDP (NT$ billion)  15,230.7   16,111.9   16,770.7   17,152.1   17,444.7  
Current GDP (US$ billion)  511.6  530.6  525.8  530.7  573.1  
GDP per capita at current market price (US$)  21,916  22,668  22,400  22,561  24,337  
GDP by economic activity at chained 2011 prices (annual % change)    
Agriculture, forestry and fishing  1.3 1.5 -8.4 -10.1 6.0 
Mining and quarrying  -4.2 -4.3 -6.6 -7.4 2.0 
Manufacturing  1.7 8.2 -0.3 3.1 4.3 
Electricity and gas supply  3.1 1.9 -5.4 4.6 -0.1 
Water supply and remediation services  2.3 4.6 0.1 3.5 3.4 
Construction  0.9 0.8 -0.9 -1.7 -0.2 
Services  2.1 3.1 1.3 1.2 2.2 
 Wholesale and retail trade  1.6 4.2 0.3 0.7 3.7 
 Transport and storage  7.6 0.9 -0.6 3.4 4.8 
 Restaurants and hotels  4.1 1.8 2.1 1.8 0.7 
 Information and communication  3.4 3.2 5.4 3.7 1.7 
 Finance and insurance  4.0 7.6 3.8 2.3 4.6 
 Real estate  3.0 2.1 2.0 0.8 1.1 
 Professional, scientific and technical services  1.5 1.2 -0.1 0.6 -2.2 
 Support services  2.5 4.4 4.9 3.1 3.4 
 Public administration  -0.6 -0.2 0.0 0.1 0.7 
 Education  0.7 1.1 0.1 -0.8 -1.0 
 Human health and social work  -0.8 4.3 1.2 3.0 2.2 
 Arts, entertainment and recreation  4.0 2.4 2.0 0.7 1.6 
 Other services  1.6 4.8 -0.2 -0.1 1.4 
Othera 6.2 5.5 -0.3 4.4 3.0 
GDP (production approach) by economic activit y at current prices (%)    
Agriculture, forestry and fishing  1.7 1.8 1.7 1.8 1.7 
Mining and quarrying  0.1 0.1 0.1 0.1 0.1 
Manufacturing  28.8 30.0 30.2 30.7 30.8 
Electricity and gas supply  1.3 1.5 1.8 1.7 1.4 
Water supply and remediation services  0.7 0.6 0.6 0.7 0.7 
Construction  2.6 2.6 2.5 2.4 2.4 
Services  61.9 60.4 60.1 59.7 60.0 
 Wholesale and retail trade  17.0 16.4 16.3 16.1 16.2 
 Transport and storage  2.8 2.9 3.0 2.9 3.0 
 Restaurants and hotels  2.5 2.4 2.5 2.6 2.6 
 Information and communication  3.1 3.0 2.9 2.9 2.8 
                                                
13 In 2015, the decrease in labour productivity was more pronounced in manufacturing, namely leather, 
fur, and r elated products, followed by basic metals. CBC (2016), Annual Report 2015 , April; CBC (2017), 
Annual Report 2016 , April; and EIU (2018), Country Forecast , February, London. Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1386427122&mode=pdf .  
14 CBC (2016), Annual Report 2015 , April 2016.  
15 Presentation by Dr. David S Hong, President, Institute of Economic Research, titled SMEs in Global 
Value Chains , 27 February 2015. Viewed at: https://www.pecc.org/resources/trade -and-investment -1/2184 -
smes-in-global -value -chains/file ; Centre for East Asia Policy Studies (2014), Economic Opportunities and 
Challenges and the Importance of the Trans -Pacific Partnership , January. Viewed at: 
https://www.brookings.edu/wp -content/uploads/2016/06/taiwan -trans-pacific -partnership -meltzer -
012014.pdf . 
16 The GVC participation rate indicates the share of an economy's exports that is part of a multi -stage 
trade process. WTO online information. Viewed a t: 
https://www.wto.org/english/res_e/statis_e/miwi_e/TW_e.pdf .  WT/TPR/S/377 • Separat e Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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    2013  2014  2015  2016  2017  
 Finance and insurance  6.4 6.5 6.5 6.5 6.7 
 Real estate  8.5 8.2 8.1 8.1 8.1 
 Professional, scientific and technical services  2.2 2.1 2.1 2.1 2.0 
 Support services  1.5 1.5 1.5 1.6 1.6 
 Public administration  7.0 6.6 6.4 6.3 6.3 
 Education  4.5 4.3 4.2 4.1 4.0 
 Human health and social work  3.0 2.9 3.0 3.1 3.2 
 Arts, entertainment and recreation  0.9 0.9 0.9 0.9 0.9 
 Other services  2.6 2.6 2.6 2.6 2.6 
Othera 2.9 3.0 2.9 3.0 2.9 
Share of sector in total employment (%)       
Agriculture, forestry and fishing  5.0 4.9 5.0 4.9 4.9 
Mining and quarrying  0.0 0.0 0.0 0.0 0.0 
Manufacturing  27.2 27.1 27.0 26.9 26.8 
Electricity, gas and water  1.0 1.0 1.0 1.0 1.0 
Construction  7.9 8.0 8.0 8.0 7.9 
Services  58.9 58.9 59.0 59.2 59.3 
 Wholesale and retail trade  16.6 16.5 16.4 16.4 16.5 
 Transport and storage  3.9 3.9 3.9 3.9 3.9 
 Restaurants and hotels  7.1 7.2 7.3 7.3 7.3 
 Information and communication  2.1 2.2 2.2 2.2 2.2 
 Finance and insurance  3.8 3.8 3.8 3.8 3.8 
 Real estate  0.8 0.9 0.9 0.9 0.9 
 Professional, scientific and technical services  3.2 3.2 3.2 3.3 3.3 
 Support services  2.4 2.5 2.5 2.5 2.6 
 Public administration  3.5 3.4 3.3 3.3 3.3 
 Education  5.8 5.8 5.8 5.8 5.7 
 Human health and social work  3.9 3.9 3.9 3.9 4.0 
 Arts, entertainment and recreation  0.9 0.9 0.9 0.9 0.9 
 Other  4.9 4.9 4.9 4.9 4.9 
a  Including import duties and value -added tax.  
Source:  Online statistical information. Viewed at: http://eng.stat.gov.tw  [11/04/18].  
1.6.  During the review period, Chinese Taipei's unemployment rate, which is largely linked to 
growth developments, remained low at around 4% (Table 1.1) . According to the authorities, this 
overall stability is inter alia  due to special programmes of employment facilitation at times of crisis 
and regular vocational training activities (Sec tion 1.2.4.4). In the context of an economic upturn , 
the unemployment rate decreased progressively to 3.8% in 2015 and , after a slight rise in 2016 
amid a slow economic recovery, in 2017 it dropped to its 2015 level as a result of accelerated 
growth.17 Furthermore, the number of persons that were unemployed due to business downsizing 
or closure declined moderately, reflecting a generally better eco nomic sentiment in 2017 than 
in 2016.18  
1.2.2   Prices  
1.7.  During the review period , CPI inflation was low and developed in a cyclical/irregular manner 
(Table 1.1). In 2015 , it fell into negative territory, bottoming out at -0.3%, largely driven by a 
steep decline in international commodity prices and slack internal demand, then peaked at 1.4% 
in 2016, due to a rise in prices o f vegetables and fruits affected by weather -related supply 
disruptions.19 In 2017, it dropped to 0.6% partly due to the strength of the local currency.20 The 
CPI-based inflation is expected to average 1.2% (1.3%, IMF) in 2018 in light of a  weakening  of the 
local currency, which could add to import price pressures associated with higher global oil costs, 
combined with internal demand growth developments inter alia  related to  the hikes in minimum 
wage and public sector employee pay as well as the negat ive output gap  (Section 1.2.4.4).21 
                                                
17 CBC (2017), Annual Report 2016 , April.  
18 EIU (2017), Country Report , February 2018 updates, London. Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1736425557&mode=pdf .  
19 CBC (2016), Annual Report 2015 , April.  
20 CBC (2017), Annual Report 2016 , April; and EIU (2017), Country Report , September, London. Viewed 
at: www.eiu.com . 
21 International Monetary Fund (2018), World Economic Outlook: Cyclical Upswing, Structural Change , 
Washington DC, April; and EIU (2017), Country Report , February 2018 updates, London. Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1736425557&mode=pdf .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  1.2.3   Main macroeconomic policy developments  
1.2.3.1   Monetary and exchange rate policy  
1.8.  The Central Bank (CBC), a government body whose policies seem to be appreciated across 
the region, remains responsible for, and seemingly independen t in, the formulation and 
implementation of monetary policy.22 Its objectives include: promoting financial and economic 
stability; guiding sound banking operations; and maintaining the stability of the value of the 
currency.23 The CBC does not set an inflati on target, but to attain its monetary policy objectives it 
continues to apply a mix of instruments including: open market operations, policy rate discounts 
and temporary accommodations, required reserve ratios, and re -deposit of financial institutions.24  
1.9.   Since 2014 , a loose monetary policy has provided a monetary stimulus to growth and helped 
to build a stable financial environment particularly during the 2015 global economic slowdown. The 
CBC has undertaken four policy rate cuts (September and December 20 15, March and July 2016) 
reducing the discount rate from 1.875% in 2014 to 1.625% in 2015 and 1.375% in July 2016 
(Table 1.1) as from when, in light of the gradual recovery of the economy and the stabili zed 
inflation, it has remained unchanged.25 According to the authorities, the CBC will continue to 
monitor the developments in both actual and expected inflation, the output gap, and other 
economic and financial conditions, and will undertake appropriate monetary policy action in line 
with its statutory manda te. 
1.10.   Chinese Taipei continues to maintain a managed floating exchange rate regime which allows 
exchange rate flexibility and foreign exchange intervention, and helps diminish or prevent 
speculative attacks.26 According to the authorities, in 2015, the CBC in jected liquidity through 
open market operations, thus maintaining the banks' excess reserves at a high level. Throughout 
2014 and 2015, it continued to conduct open market operations by issuing certificates of deposit 
(CDs) to maintain reserve money and ov ernight call loan rates at accommodative levels in line 
with its policy objectives.  
1.11.   During most of the review period, the nominal NT$/US$ exchange rate depreciated 
(Table  1.1) partly due to the strengthening of the United States dollar and a weakening yen , which 
raised Chinese Taipei's competitiveness concerns vis -à-vis Japanese exports.27 As investor 
sentiments generally improved and outgoing merchandise trade fared better, the local currency 
appreciated in 2017; reportedly, this development was also large ly due to a limited intervention in 
the currency market that year.28 In trade -weighted terms, overall the real effective exchange rate 
depreciated in the period 2015 and 2016, thus confirming an improvement in Chinese Taipei's 
international competitiveness.   
                                                
22 WTO document WT/TPR/S/232/Rev.1, 28 July 2010; BTI (2016), Chinese Taipei Report . Bertelsmann 
Stiftung, 2016. Available at: https://www.bti -
project.org/fileadmin/files/BTI/Downloads/Reports/2016/pdf/BTI_2016 _Taiwan.pdf . 
23 The CBC responsibilities comprise: monetary management; foreign exchange management; financial 
inspection; payment and settlement systems; currency issuance; fiscal agency functions; participation in 
international activities; and compilation  of statistics and research. CBC online information. Viewed at: 
https://www.cbc.gov.tw/lp.asp?ctNode=453&CtUnit=271&BaseDSD=7&mp=2 ; and WTO document 
WT/TPR/S/232/Rev.1, 28 J uly 2010.  
24 More detailed information on the monetary policy instruments is available at: 
https://www.cbc.gov.tw/np.asp?ctNode=443&mp=2 .  
25 The policy interest rate determines the levels of the rest of the interest rates in the economy, since it 
is the price at which private agents  – mostly private banks  – obtain money from the central bank. CBC (2017), 
Annual Report 2016 , April 2017; CBC online information. Viewed at: 
https://www.cbc.gov.tw/lp.asp?CtNode=695&CtUnit=303&BaseDSD=32&mp=2 ; CBC (2016), Annual Report 
2015, April 2016; online information ( https://www.focus -economics.com/economic -indicator/policy -interest -
rate).  
26 CBC (2016), Annual Report 2015 , April; and CBC (2017), Annual Report 2016 , April.  
27 CBC (2016), Annual Report 2015, April 2016; CBC (2017), Annual Report 201 6, April; and 
EIU (2015), Country Report, January, London. Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=142643198&mode=pdf . 
28 In 2017, Chinese Taipei was removed from the United States'  Monitoring List in its report on "Foreign 
Exchange Policies of Major Trading Partners of the United States ". The Department of the Treasury (2017), 
Report to Congress – Foreign Exchange Policies of Major Trading Partners of the United States , October 2017. 
Viewed at: https://www.treasury.gov/press -center/press -release s/Documents/2017 -10-
17%20(Fall%202017%20FX%20Report)%20FINAL.PDF ; and EIU (2017), Country Report , September, London. 
Viewed at: www.eiu.com .  WT/TPR/S/377 • Separat e Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  1.2.3.2   Fiscal policy  
1.12.   Chinese Taipei's prudent fiscal policy remained unchanged until 2017 when it shifted to an 
expansionary more pro -growth stance (Section 1.2.1 and below), a move consistent with utilizing 
fiscal space when needed while preserving longer -term fiscal sustainability. Consequently, the 
fiscal deficit declined steadily from 1.4% of GDP in 2013 to a small surplus of 0.1% in 2015 
(Table  1.1) largely due to a tight control over expenditure but also the introduction of a higher 
business -tax rate for banks and insurance companies in 2014 and a new top income tax bracket 
in 2015 (Section 3.3.1.1.3)29; in 2016, it returned to a deficit of 0.3%. The spending -driven 2017 
stimulus package coupled with the diminishing role of exports as a growth driver, is to  preserve 
the fiscal deficit in the medium -run as infrastructure projects are implemented and stronger 
stimulus measures are enacted to counteract a renewed weakness in external demand 
(Section  1.2.1).30  
1.2.4   Structural policies  
1.13.   Trade and domestic reform are considered as intrinsically linked. The 17th mid-term 
development plan (NDP 2017 -2020) intends to increase domestic investment and conduct 
structural reforms to address low business profits, stagnating wages and companies migrating 
overseas (Section 2.2). It, inter alia,  involves "industrial upgrading and an innovative economy". 
In addition, a New Southbound Policy, launched in 2016, focuses on economic and trade 
cooperation, talent exchanges, resource sharing and regional linkages  (Sections 2.2 and 3.2.5).   
1.2.4.1   Tax reform  
1.14.   During the review period, tax revenue grew steadily from 11.6% (2013) of GDP to 
12.6%  (2016) (Table 1.1) as a result of tax reforms to improve the tax structure and strengthen 
the income tax collection system, particularly for high earners.31 In January 2018, Chinese Taipei 
enacted a tax reform aimed at improving tax collection, distributing wealth more equitably and 
stemming the flow of highly skilled labour overseas.32 It includes: an increase in the profit seeking 
enterprise income tax rate fr om 17% to 20% (as from 2018); a decrease in the undistributed 
earnings tax rate from 10% to 5% (as from 2018); and, a requirement that the undistributed 
earnings tax paid at the corporate level can no longer be distributed to overseas shareholders as a 
credit against the dividend withholding tax (as from 2019).33 According to the authorities, the 
differential between profit seeking enterprise income tax and the highest marginal tax rate had 
resulted in the proliferation of companies avoiding the higher incom e tax rate, thereby lowering 
tax revenue from high earners. Reportedly, these changes might have a negative overall impact on 
the budget balance as the revenue boost from the profit seeking enterprise income tax increase is 
to be outweighed by the impact o f the lower top rate of personal income tax and higher deduction 
thresholds (Section  3.3.1.1.3).34  
1.2.4.2   Privatization  
1.15.   During the review period public -sector involvement in the economy has remained relatively 
unchanged and spread over several activities , as the re has been virtually a standstill in the widely 
                                                
29 EIU (2015), Country Report , January, London. Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=142643198&mode=pdf ; and EIU (2014), Country Report , 
December, London. Viewed at: http://www.eiu.com/FileHandler.ashx?issue_id=692579253&mode=pdf . 
30 The new infrastructure plan is likely to add at least NT$100 billion to annual spending (via a special 
budget) from 2018 onwards that will offset some of the relief provided to the  budget through public pensions 
reform. EIU (2017), Country Report , September, London. Viewed at: www.eiu.com ; and EIU (2017), Country 
Report , February 2018 updates, London. Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1736425557&mode=pdf .  
31 Ministry of Finance , Guide to Taxes 2017 . Viewed at:  
http://www.mof.gov.tw/File/Attach/75532/File_10791.pdf ; and EIU (2017), Country Report , September, 
London. Viewed at: www.eiu.com . 
32 EIU (2017), Country Report , February 2018 updates, London. Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1736425557&mode=pdf .  
33 Online information. Viewed at: http://www.ey.com/gl/en/services/tax/international -tax/alert --taiwan -
enacts -tax-reform -proposals .  
34 EIU (2017), Country Report , February 2018 updates, London. Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1736425557&mode=pdf .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  opposed privatization process (Section 3.3. 5). Publicly -owned enterprises and public utilities 
continued to be a major source of government revenue and used as industrial development or food 
security policy tools.  
1.2.4.3   Competition policy  
1.16.   Since its last review, Chinese Taipei undertook several legislative amendments representing 
the most comprehensive overhaul of its legislation in this area, inter alia,  to achieve an effective 
control of concentration of economic  power in the market (i.e. mergers), maintain institutional 
independence, take effective enforcement action against anticompetitive practices and step up 
international cooperation (Section 3.3. 4.1).35  
1.2.4.4   Labour market policies  
1.17.   Labour market rigidities were s eemingly increased but some action has been taken to 
address them. The minimum hourly and monthly wages, which are reviewed annually, have been 
raised progressively from NT$115 and NT$19,047 in 2014 to NT$140 and NT$22,000 (US$725) 
in 2017 respectively, an d remained at this level as of April 2018.36 Following amendments to the 
Labour Standards Act (LSA), as from January 2016 the workweek was cut from 42 hours to a 
maximum of 40 hours; its 2017 amendments steeply increased mandatory compensation 
payments for work performed on a worker's rest day or annual leave, and required pay -outs for 
unused annual leave.37 Furthermore, the latest LSA amendments, in force as from 1 March 2018, 
included: seven industry sectors being allowed to have their employees work up to 12 days in a 
row; an increase of the maximum allowable overtime hours of a worker from 46 to 54 per month; 
annual leave accrued by employees to be carried over to the next year; a reduction of the 
minimum number of break hours between shifts from 11 to 8 h ours with the consent of the 
employees or the labour union; and, compensatory leave used instead of pay for overtime 
worked.38 In response to the ageing of the population, the retirement age (for claiming  the labour 
insurance  old-age benefit) was raised fro m 60 to 61 in 2018; in subsequent years it is to gradually 
increase until the age of 65 by 2026. The reform of the pension system, currently under 
consideration, would ease pressure on the fiscal deficit.39  
1.18.   To reduce unemployment among the indigenous population, construction companies that 
have won contracts for public infrastructure projects must retain a workforce comprising 2% local 
people (physically or mentally disabled or aborigines) during the term of contract performance 
(Section 3.3.1.2.5, 3.3 .6 and Table A3.7); otherwise, the foregoing tenderer must compensate 
with a fee and cannot hire overseas workers to make up the shortage in question.40 Under the 
2017 policy of industrial upgrading and an innovative economy under the 17th mid-term 
developm ent plan (NDP 2017 -2020) (above and Section 2.2), new mechanisms for personnel 
exchanges, recruitment and training are envisaged. Overseas workers have somewhat alleviated 
                                                
35 Online information ( https://globalc ompetitionreview.com/insight/the -asia-pacific -antitrust -review -
2017/1138999/taiwan -fair-trade-commission ). 
36 To offset the minimal wage harm to employers, since 2011 several measures, including a subsidy of 
NT$10 per hour for part -time workers and a subsidy of up to 80% for costs associated with training workers, 
have been in place. The authorities indicated tha t these subsidies are financed by an Employment Stability 
Fund funded by contributions of employers of immigrant workers. EIU (2017), Country Commerce , June, 
New York. Viewed at: www.eiu.com ; online information ( https://www.taiwannews.com.tw/en/news/3234717  
and http://focustaiwan.tw/news/asoc/201312300006.aspx ). 
37 The shorter workweek, which had b een discussed for years, was introduced at the same time as 
regulations permitting 84 hours of work for two -week periods were removed. Employees in the industrial and 
services sectors worked an average of 169.5 hours (including 8.5 hours of overtime) per m onth in 2016, down 
3.3% from 2015. EIU (2017), Country Commerce , June, New York. Viewed at: www.eiu.com . 
38 Online information ( https://www.taiwannews.com.tw/en /news/3374025  and 
https://topics.amcham.com.tw/2018/03/taiwans -latest -labor-standards -act-amendments/ ). 
39 Reportedly, current pension liabilities stand at a round NT$18 trillion (US$597 billion) or nine times the 
central administration's total annual expenditure. Without proper fiscal adjustments, retirement funds for 
private -sector workers and retired servicemen would run out in 2027 and  2020, respectively. EIU (2017), 
Country Commerce , June, New York. Viewed at: www.eiu.com ; online information. Viewed at: 
https://cpianalysis.org/2017/07/28/pens ion-reform -made -in-taiwan/  and 
https://www.reuters.com/article/taiwan -pension/update -1-taiwan -cuts-18-pct-interest-in-civil-service -pension -
reform -idUSL3N1JO2EU . 
40 Article 98 of the Government Procurement Act  (GP Act), effective 27 May 1999; EIU (2017), Country 
Commerce , June, New York. Viewed at: www.eiu.com . WT/TPR/S/377 • Separat e Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  the labour shortage in the manufacturing and construction industries.41 Following ame ndments to 
the Employment Services Act, since November  2016, there has been no requirement for overseas 
blue-collar workers whose contracts have expired to go outside Chinese Taipei for at least one day. 
To enhance the inflow of professionals from other WT O Members, a s from 8 February 2018, 
Chinese Taipei has relaxed regulations with respect to visa, residence, health insurance as well as 
tax and retirement benefits including half of the usual income tax in the first three years, as long 
as their annual inc ome is above NT$3 million (Section 2.4.2) .42  
1.2.5   Balance of payments  
1.19.   In line with its strategy of encouraging export -led growth based on manufacturing , 
Chinese  Taipei continues to run a rising surplus in merchandise trade, which peaked in 2017, and a 
declining  deficit in services that bottomed out the same year (Table 1.3). The merchandise trade 
surplus considerably exceeded the deficit in services. Consequently, the current account registered 
a larger overall surplus, averaging 13.5% of GDP in the period 2014 -17 compared to 8.6% over 
the period 2010 -13 (Table 1.1), inter alia , reflecting stronger external demand and rising global oil 
prices developments. The current account surplus also reflects the extent to which gross domestic 
savings (34.5% of GDP, 2017) co ntinued to increasingly exceed gross domestic investment 
(20.3% of GDP, 2017) (Table 1.1).  According to IMF estimates, the current  account surplus is to 
slightly decline from 13.8% (in 2017) of GDP to 13.6% (2018) and 13.5% (2019) mainly due to 
slower grow th of exports than imports which would be supported by resilient household demand, 
private capital  goods expenditure and inputs for housing and infrastructure investment.43  
Table 1.3 Balance of payments, 2013 -17  
(US$ million)  
  2013  2014  2015  2016  2017  
Current account  49,872  60,438  74,883  72,786  84,086  
 Goods and services balance  39,355  48,774  62,412  60,276  72,655  
 Goods balance  54,557  60,190  73,095  70,615  81,035  
  Exports  382,096  378,961  336,880  309,941  349,808  
  Imports  327,539  318,771  263,785  239,326  268,773  
 Service balance  -15,202  -11,416  -10,683  -10,339  -8,380  
  Exports  36,461  41,491  40,986  41,360  45,071  
  Imports  51,663  52,907  51,669  51,699  53,451  
 Primary income  13,520  14,457  15,854  15,645  15,506  
 Credit  24,609  29,211  28,886  29,469  35,021  
  Compensation  of employees  637  678  693  746  864  
  Investment income  23,887  28,440  28,091  28,610  33,999  
  Other  85  93  102  113  158  
 Debit  11,089  14,754  13,032  13,824  19,515  
  Compensation  of employees  368  358  434  604  658  
  Investment income  10,524  14,134  12,351  12,905  18,572  
  Other  197  262  247  315  285  
 Secondary income  -3,003  -2,793  -3,383  -3,135  -4,075  
 Credit  6,179  6,661  6,603  6,944  7,248  
 Debit  9,182  9,454  9,986  10,079  11,323  
      
Capital account  67  -8  -5  -9  -12  
      
Financial account  52,407  63,476  80,976  66,436  81,107  
 Direct  investment  10,687  9,883  12,318  8,653  8,102  
 Assets  14,285  12,711  14,709  17,884  11,357  
 Liabilities  3,598  2,828  2,391  9,231  3,255  
                                                
41 As at end -March 2017, there were 639,326 overseas labourers in Chinese Taipei , up 7.5% from a 
year earlier; the manufacturing industry employed 62.1% of the total overseas labour force and services 
37.9% of the total. EIU (2017), Country Commerce , June, N ew York. Viewed at: www.eiu.com . 
42 Online information ( https://reloc8asia.com/2018/02/13/taiwan -new-rules-recruitment -employment -
foriegn -professionals -talent/ ). 
43 According to the authorities, in 2018,  a firmly  growing global economy and world trade volume 
together with the emerging demand for semiconductors ' new technological applications, such as Internet of 
things (IOT), automotive electronics, high performance computing and artificial intelligence applications, would 
support Chinese Taipei's goods export growth. According to the DGBAS, nominal exports and imports of goods 
and services would grow by 5% and 7.1% for 2018, respectively. International Monetary Fund (2018), World 
Economic Outlook: Cyclical Upswing, Structural Change , Washington, DC, April; EIU (2018), Country Forecast , 
February, London. Viewed a t: http://www.eiu.com/FileHandler.ashx?issue_id=1386427122&mode=pdf .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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    2013  2014  2015  2016  2017  
 Portfolio investment  29,129  44,041  57,198  78,820  79,039  
 Assets  37,082  57,096  56,340  81,463  82,924  
 Liabilities   7,953  13,055  -858  2,643  3,885  
 Financial derivatives  (other than reserves) and 
employee stock options  -838  -546  1,184  -2,228  -3,696  
 Assets  -6,055  -5,977  -11,227  -11,153  -11,489  
 Liabilities   -5,217  -5,431  -12,411  -8,925  -7,793  
 Other investment  2,111  -2,917  -4,735  -29,472  -14,805  
 Assets  47,505  11,869  -16,648  -7,352  11,512  
  Trade  credits and advances  565  -208  -899  -5,381  -2,535  
  Loans  16,575  8,784  3,206  5,843  -1,044  
  Currency  and deposits  18,454  -3,398  -16,738  -3,708  16,860  
  Other  assets  11,911  6,691  -2,217  -4,106  -1,769  
 Liabilities  45,394  14,786  -11,913  22,120  26,317  
  Trade  credits and advances  133  -646  -263  5,527  3,379  
  Loans  22,574  4,251  -259  8,451  11,902  
  Currency  and deposits  23,003  10,797  -12,178  9,954  14,888  
  Other  liabilities  -316  384  787  -1,812  -3,852  
 Reserve assets  11,318  13,015  15,011  10,663  12,467  
      
Net errors & omissions  2,468  3,046  6,098  -6,341  -2,967  
Source:  CBC online information. Viewed at: http://www.cbc.gov.tw . 
1.20.   Chinese Taipei's gross external debt, which remains largely short term (93% in 2017), has 
been subject to irregular changes over the review period; it dropped b y 10.6% from 2014, a peak 
year, to 2015, and since then it rose by 8.3% to US$172.2 billion in 2016 and then by 5.6% to 
US$181.9  billion in 2017 (Table 1.1). As a result, the debt service ratio rose from 1.5% to a peak 
of 2.1% (2016) and then declined slig htly to 1.9% (2017). As a percentage of GDP, gross external 
debt decreased from 33.5% in 2014 to 31.7% in 2017.  
1.21.   Since 2014, Chinese Taipei's foreign exchange reserves have increased steadily by an 
overall 8.3% to US$451.5 billion in 2017 (Table 1.1) mainly  due to returns from their 
management; in 2017, they were equivalent to 78.8% of GDP  and 16.8 months of imports of 
goods and services, compared to 82% of GDP and 17.8 months in 2016, and almost three times 
the short-term external debt.  
1.3  Developments in Tra de and Investment  
1.3.1   Trends and patterns in merchandise trade and services trade  
1.22.   The openness of the Chinese Taipei economy to international trade, and its integration into 
the world economy and global value chains continued to be reflected by the steadily increasing  
ratio of its trade (exports plus imports) in goods and services to GDP; nevertheless, this ratio 
dropped from 129.4% in 2014 to 117.7% in 2017, partly due to weaker global demand  
(Table  1.1).44  
1.23.   Since its previous review, Chinese Taipei's merchan dise trade has remained largely and 
increasingly dependent on manufactures (Chart 1.1, Tables A1.1 and A1.2). The share of 
machinery and transport equipment, namely office machines and telecommunications equipment, 
and non -electrical machinery in total exp orts has risen, whereas the share of chemicals and 
mining/fuels has dropped. Electronics exports grew more in 2017 than in 2016, on the back of the 
launch of new products in global markets (Section 1.2.1).45 Manufactures rose to more than two 
thirds of tota l imports whereas mining dropped to 21.5% and agriculture increased to 6%.  
1.24.   At the same time, while Chinese Taipei's merchandise trade with economies in the region 
remained virtually unchanged for exports,  the pattern of imports shifted slightly away from the 
Middle East, partly due to the drop of oil prices and currency appreciation (Chart 1.2, Tables  A1.3 
and A1.4). Notwithstanding some minor fluctuations in trade shares, Chinese Taipei's main trading 
partners remain China, the United States, the European  Union and Japan. The merchandise trade 
shares of both China and Japan increased.  
                                                
44 EIU (2017), Country Commerce , June, New York. Viewed at: www.eiu.com . 
45 EIU (2017), Country Commerce , June, New York. Viewed at: www.eiu.com . WT/TPR/S/377 • Separat e Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Chart 1.1 Product composition of merchandise trade, 2013 and 2017  
 
Note:  SITC Rev.3 definition.  
Source:  Data provided by th e authorities.  
Chart 1.1
Product composition of merchandise trade, 2013 and 2017
2013 2017
Exports (f.o.b.)
Other consumer
goods  12.1%
Manufactures
86.9%
Total:   US$305.4 billion Total:  US$317.2 billion
Imports (c.i.f.)
Chemicals
13.2%
Iron & steel
3.2%Manufactures
60.5%Office machines &
telecommunication 
equipment
17.4%Other electrical
machines  3.7%
Non-electrical 
machinery
8.8%Other  2.0%Other electrical 
machines  4.1%Office machines & 
telecommunication 
equipment
40.7%
Other semi -manuf.  
3.2%Chemicals
12.5%Manufactures
70.6%Office machines &
telecommunication
equipment
23.7%
Total:   US$269.9 billion Total:   US$259.3 billionManufactures
91.3%Other electrical
machines  4.9%
Mining/fuels
5.7%Other electrical 
machines  6.1%
Other consumer 
goods  8.5%
Other  3.2%Office machines & 
telecommunication 
equipment
31.7%Textiles &  
clothing  
3.7%
Other  0.7%
Other semi -manuf.  
5.6%
Non-electrical 
machinery
8.1%Transport 
equipment  4.0%
Agriculture  2.1%
Source :  Data provided by the authorities (SITC Rev.3).Other consumer
goods  7.7%Other consumer
goods  10.1%Textiles & 
clothing
3.1%
Other semi -manuf.
5.9%Non-electrical 
machinery
6.8%
Other semi -manuf.
3.3%Transport 
equipment  4.0%
Agriculture
6.0%Agriculture
4.6%
Iron & steel
2.9%Iron & steel
3.7%Iron & steel
3.4%
Chemicals
12.9%Chemicals  
11.3%Other  1.4%
Fuels
15.6%Fuels
25.5%
Other mining
5.9%
Other mining  
6.2%Non-electrical 
machinery
10.8%Agriculture  2.3%
Mining/fuels
9.6%
Mining
21.5% Mining  
31.7%Transport 
equipment 
4.9%Transport 
equipment
3.3%WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Chart 1.2 Direction of merchandise trade, 2013 and 2017  
 
Source:  Data provided by the authorities . 
1.25.   During the review period, Chinese Taipei remained a net importer of services, running a 
declining deficit in the services account amounting to 1.5 % of GDP in 2017 (Tables 1.1 and 1.4). 
This was mainly the outcome of the significant increases in manufacturing services and other 
business services, despite the stagnating number of tourist visit s from China, rising outbound 
travel, and an increase in the number of remittances sent by overseas workers (Section  1.2.4.4).46  
                                                
46 EIU (2017), Country Report , September, London. Viewed at: www.eiu.com . 
Chart 1.2
Direction of merchandise trade, 2013 and 2017
2013 2017
Exports (f.o.b.)
Asia
72.5%
Total:   US$305.4 billion Total:  US$317.2 billion
Imports (c.i.f.)
Other 
7.9%
China
15.8%EU-28
8.8%
Other Middle East
7.2%Saudi Arabia
5.8%United States
9.3%
Kuwait, the State 
of  3.1%EU-28
10.0%
China
19.3%Australia  3.2%United States
11.7%
Total:   US$269.9 billion Total:   US$259.3 billionJapan
6.3%
Middle East
8.5%Korea, Rep. of
6.5%Korea, Rep. of  
5.8%United States
10.7%
Other Asia
10.1%United States
11.6%Other 
3.7%
Source :  Data provided by the authorities.Japan
16.2%China
28.0%Singapore
5.6%EU-28
8.6%
China
26.8%Singapore
6.4%
Japan
16.0%Other
7.3%
Other Asia
8.3%Hong Kong, China
13.0%EU-28
8.3%Other
5.5%
Viet Nam  2.9%Other America
2.9%
Hong Kong, China
12.9%
Japan
6.6%Malaysia  3.3%Other Asia
9.2%
Australia  2.9%Other Asia   
8.1%Korea, Rep. of
4.0%Viet Nam  3.3%
Korea, Rep. of
4.6%Philippines  3.2 %
Asia
59.7%Asia
54.7%Asia
73.6%
Other America
2.9%Other America
3.1%Other America
2.5%
Malaysia  2.8% Malaysia  3.0%
Singapore
3.4%Singapore
3.2%Middle East
16.1%WT/TPR/S/377 • Separat e Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Table 1.4 Trade in services, 2013 -17  
  2013  2014  2015  2016  2017  
Total credit (US$ million)  36,461  41,491  40,986  41,360  45,071  
 (% of total credit)  
Manufacturing services  4.0  3.9  4.0  4.9  5.7  
Maintenance and repair services  0.2  0.4  1.0  2.0  2.9  
Transport  27.6  26.5  23.9  21.3  22.0  
 Passenger  6.7  6.8  6.3  5.9  5.4  
 Freight  19.8  18.7  16.7  14.5  15.8  
Travel  33.8  35.2  35.1  32.3  27.4  
  Business  4.3  3.0  2.8  2.5  2.1  
  Personal  29.5  32.2  32.3  29.9  25.3  
Construction  1.4  2.4  1.9  2.9  3.0  
Insurance and pension  0.9  0.8  0.6  0.7  0.9  
Finance  5.6  5.8  5.9  6.3  6.4  
Charges for the use of intellectual property, n.i.e.  2.8  2.1  2.9  3.0  3.8  
Telecommunication, computer and information  3.8  4.2  5.0  5.8  6.3  
Other business services  18.8  17.5  18.4  19.2  20.1  
Personal, cultural  and recreational  0.6  0.6  0.6  0.8  0.8  
All levels of g overnment  0.6  0.7  0.8  0.8  0.8  
Total debit (US$ million)  51,663  52,907  51,669  51,699  53,451  
 (% of total debit)  
Manufacturing services  14.3  9.8  8.5  6.8  6.4  
Maintenance and repair services  1.3  1.6  1.5  1.7  1.8  
Transport  19.0  19.5  19.6  21.2  21.0  
 Passenger  3.6  3.7  3.7  5.1  4.7  
 Freight  9.4  9.1  8.5  8.6  8.8  
Travel  23.8  26.5  30.0  32.1  33.6  
  Business  4.2  4.4  4.8  5.0  4.7  
  Personal  19.6  22.1  25.2  27.1  28.8  
Construction  1.3  1.9  1.7  2.3  2.6  
Insurance and pension  1.9  1.8  1.5  1.4  1.9  
Finance  1.0  1.1  1.4  1.7  2.5  
Charges for the use of intellectual property, n.i.e.  10.1  10.0  10.7  10.2  7.0  
Telecommunication, computer and information  2.3  2.3  2.4  2.6  3.2  
Other business services  23.1  23.7  20.9  18.5  18.2  
Personal, cultural and recreational  0.5  0.5  0.5  0.4  0.5  
All levels of g overnment  1.3  1.3  1.2  1.3  1.3  
Source:  CBC online information.  
1.3.2   Trends and patterns in inbound direct investment  
1.26.   Inbound direct investment  is not only an additional source of capital. It also brings with it 
entrepreneurship, management skills, and especially new technology, which contribute to 
improved total factor productivity. Despite its relatively small market , making it difficult to att ract 
investment interest, Chinese Taipei actively supports inbound direct investment (Sections 2.4 
and 3.3.1.2.5 and Table A3.7); its market liberalization policies, RTAs and expansion of services 
(notably tourism) ensure continuous inflows.47 During the re view period, inbound direct investment 
flows peaked at US$11 billion in 2016 (Table 1.5) mainly due to several large -scale investment 
projects, including those by ASML Holdings, a Dutch producer of semiconductor manufacturing 
equipment. In 2017, the inflow s dropped by an overall 32%, to US$7.5 billion , partly due to both 
the global and the Eurozone crisis, the slow recovery of the United States economy and the 
slowdown in China.48 In 2017, the Netherlands was the largest individual source of approved 
investm ents in Chinese Taipei, followed by: British Overseas Territories in the Caribbean (mainly 
the British Cayman Islands and the British Virgin Islands); the United Kingdom; Japan; Samoa; 
and Hong Kong, China. During the review period , inbound direct investme nt flows were largely 
concentrated in services, mainly finance and insurance and wholesale and retail, as well as in 
manufacturing of electronic parts and components (Tables  1.5 and 1.6).   
                                                
47 EIU (2017), Country Commerce, June, New York. Viewed at: www.eiu.com . 
48 Online information ( https://www.nordeatrade.com/en/explore -new-market/taiwan/investment ); 
EIU (2017), Country Commerce , June, New York. Viewed at: www.eiu.com . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Table 1.5 Inbound an d outbound flows of direct investment, by activity, 2014 -17 
(approval basis)  
  2014  2015  2106  2017  
Inbound direct investment      
Total (US$ million)  5,770.0  4,796.8  11,037.1  7,513.2  
% of GDP  1.1 0.9 2.1 1.3 
By activity (% of total)      
Agriculture, hunting, forestry and fishing  0.1 0.0 0.1 0.4 
Mining and quarrying  0.00 0.00 0.00 0.00 
Manufacturing  40.7 27.8 68.6 40.6 
Electronic parts and components  14.3 5.7 32.9 28.4 
Electricity, gas and water  0.1 0.4 0.0 0.2 
Construction  0.6 0.2 0.6 0.7 
Services  58.5 71.6 30.7 58.1 
Wholesale and retail trade  13.6 22.3 10.8 11.7 
Finance and insurance  27.2 25.2 11.1 12.5 
Outbound direct investment      
Total (US$ million)  17,570.3  21,710.7  21,793.8  20,822.1  
% of GDP  3.3 4.1 4.1 3.6 
By activity (% of total)      
Agriculture, hunting, forestry and fishing  0.0 0.0 0.0 0.1 
Mining and quarrying  1.0 0.1 0.0 2.9 
Manufacturing  45.5 43.2 62.2 39.0 
Basic metals  4.8 6.1 1.6 3.5 
Electronic parts and components  9.9 10.7 30.5 10.9 
Computer, electronics and optical products  7.8 5.4 9.8 5.8 
Electrical equipment  2.2 2.6 1.4 1.2 
Machinery and equipment  2.0 1.7 2.0 1.5 
Electricity, gas and water  0.2 0.2 0.4 0.3 
Construction  0.3 0.1 0.3 0.1 
Services  52.8 56.4 37.0 57.6 
Wholesale and retail trade  11.1 5.0 7.1 9.1 
Finance and insurance  30.1 40.8 21.8 43.6 
Other  0.3 0.0 0.0 0.0 
Source:   Investment Commission, MOEA online information. Viewed at: 
https://www.moeaic.gov.tw/news.view?do=data&id=1221&lang=en&type=business_ann .  
1.27.   Chinese Taipei remains not only one of the major exporters of goods, but also of capital. 
Outbound direct investment flows peaked in 2016 and then dropped by an overall 4.5% in  2017 
(Table  1.6) due to several large -scale outbound investment projects, including those by Hon Hai 
Precision Industry Co., Ltd. investing in Sharp Display Products Corporation (Japan).  Similarly to 
inflows, during the review period outflows were largely  concentrated in services (finance and 
insurance) and manufacturing (electronic parts and components, computer, electronics and optical 
products; and basic metals) (Table 1.5). At the same time, the main individual destinations were 
China, British Overseas  Territories in the Caribbean (the British  Cayman Islands and the 
British  Virgin Islands), Viet  Nam and Japan.  
Table 1.6 Inbound and outbound flows of direct investment , by source and destination, 
2014 -17 (app roval basis)  
  2014  2015  2106  2017  
Inbound direct investment      
Total (US$ million)  5,770.0  4,796.8  11,037.1  7,513.2  
% of GDP  1.1 0.9 2.1 1.3 
By source (% of total)      
EU-28 24.2 21.2 65.6 44.5 
Netherlands  8.6 6.4 60.8 25.2 
United Kingdom  4.6 8.8 3.7 15.0 
British Overseas Territories in the Caribbean  26.3 30.6 14.0 22.8 
Japan  9.5 9.5 3.1 8.5 
Samoa  8.8 8.8 2.9 5.1 
Hong Kong, China  8.9 7.7 5.4 3.7 
Canada  0.2 0.3 0.2 3.4 
United States  2.6 2.7 1.3 2.9 
Singapore  7.9 3.5 1.0 1.8 
Other  11.5 15.7 6.6 7.2 WT/TPR/S/377 • Separat e Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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    2014  2015  2106  2017  
Outbound direct investment      
Total (US$ million)  17,570.3  21,710.7  21,793.8  20,822.1  
% of GDP  3.3 4.1 4.1 3.6 
By source (% of total)      
China  58.5 50.5 44.4 44.4 
British Overseas Territories in the Caribbean  17.6 13.3 12.5 28.4 
Singapore  0.8 1.1 7.1 4.4 
United States  1.6 1.7 1.5 4.0 
Viet Nam  3.7 5.7 2.1 3.3 
Australia  1.0 0.0 0.1 3.0 
Hong Kong, China  2.4 2.3 1.9 1.4 
EU-28 4.5 9.0 5.2 1.1 
Japan  3.9 1.4 20.7 1.0 
Korea, Rep. of  1.0 1.5 1.0 0.0 
Other  5.2 13.5 3.7 9.0 
Source:  Investment Commission, MOEA online information.  Viewed at: 
https://www.moeaic.gov.tw/news.view?do=data&id=1221&lang=en&type=business_ann .  
 
  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  2  TRADE AND INVESTMENT  REGIME  
2.1  General Framework  
2.1.  Since 2014, the overall structure and functions of the executive, legislature and judiciary  of 
the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) have 
remained broadly unchanged.1 However, a restructuring and streamlining of the executive branch 
has been ongoing with a view to increasing its flexibility and effec tiveness; by the end of this 
process the number of organizations in the executive branch will have been reduced from 37 to 29 
(14 ministries, eight councils, three independent agencies and four organizations).2 This process 
should be completed by 31 Januar y 2020.3 These changes included the creation of a development 
council (NDC) in 2014 which combines the previous responsibilities of the Council for Economic 
Planning and Development, the Research, Development and Evaluation Commission and the Public 
Constr uction Commission. The NDC is responsible for the planning, evaluation, coordination and 
supervision of Chinese Taipei's development policies.4  
2.2.  There are two levels of local self -governing bodies. At the first level there are special 
municipalities, count ies and cities and at the second level there are townships, 
county -administered cities and mountain indigenous districts of special municipalities. Local 
governments' budgets are largely funded through a revenue -sharing arrangement with the central 
adminis tration , the amount of which inter alia  depends on the size of the population and the level 
of economic development of the municipality/county.5  
2.3.  Trade and other such agreements enter into force upon ratification and promulgation; they 
have the same force and effect as domestic laws.6  
2.4.  As noted by the authorities, inputs from members of the public, businesses and civil society 
organizations into policy -making, including trade policy -making, are sought on a continuous basis 
from the time of policy formulatio n to decision -making. When important new material or 
comments are received, the competent authority holds public hearings and meetings with 
academia and experts, or conducts interagency meetings so that it can reach a conclusion; 
sometimes it is necessary to have more than one round of comments. Public/stakeholder 
comments, including from overseas companies/parties, can be expressed through a public policy 
platform launched in February 2015 ( https://join.gov.tw/ ). In October 2016, the period of time for 
public comment was increased from 14 to 60 days, and the requirement for feedback from 
agencies was introduced; this should be given, and made available online, within 14 days after the 
preview period. Seemingly, this r equirement has greatly increased the transparency of the 
regulation -making process.7  
2.5.  The Regulatory Reform Centre (RRC), a department of the NDC, inter alia , carries out 
research, planning, and coordination for regulatory reforms; promotes and manages reg ulatory 
and institutional reforms, and projects related to competitiveness; administers reforms for the 
improvement of the investment environment; facilitates international cooperation on regulatory 
reform issues; and promotes Regulatory Impact Assessment (RIA) and related capacity building.8  
2.6.  As noted by the authorities, since 2004, regulatory impact s assessment s (RIAs) are required 
for all laws sent to the legislative branch; each authority has its own RIA format. RIAs may be 
published on their respective  websites if the contents are not sensitive. Since 2014, regular 
                                                
1 More information is available in WTO documents WT/TPR/S/302/Rev.1, 18 December 2015 and 
WT/TPR/S/232/Rev.1, 28 July 2010.  
2 The changes in trade -related areas include: the creation of the Ministry of Agriculture (foreseen) and 
the creation of the NDC (completed) . Other changes relate to labour, youth, sports, culture, science, 
environment and information services.  Online inform ation. Viewed at: 
https://english.ey.gov.tw/cp.aspx?n=0B5424E21E6FF0A5 . 
3 As indicated by the authorities, the time -frame will be determined once the Organization Act has been 
enacted.  
4 Online information. Viewed at: https://www.ndc.gov.tw/en/default.aspx . 
5 Online information. Viewed at: http://english.ey.gov.tw/cp. aspx?n=ec9205f763e2a607 . 
6 WTO document WT/TPR/S/302/Rev.1, 18 December 2015.  
7 ECCT 2018 Position Papers.  Viewed at 
http://www.ecct.com.tw/file/Publications/201711151808326974 .pdf. 
8 Online information. Viewed at: https://www.ndc.gov.tw/en/cp.aspx?n=459AC4A538309231 . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
- 30 - 
 
  training programmes for public -sector officials have been undertaken in order to build their 
capacity in this area, particularly in undertaking cost -benefit analysis. In 2017, a RIA handbook 
was issued, providing public -sector agencies with guidelines to further enhance the quality of their 
regulatory work and to encourage uniformity in the format of RIAs.  
2.7.  In the context of this review, the authorities indicated that Chinese Taipei aims to re spond to 
the most recent Internet application trends, build a sound legal system aligned with global trends 
and create a friendly regulatory environment.  
2.2  Trade Policy Formulation and Objectives  
2.8.  Chinese Taipei's trade policy continues to be based on the pre mise that trade openness, 
global and regional connectivity, economic growth and performance, living standards and 
innovation are strongly linked. Chinese Taipei is focused on improving its economic 
competitiveness, entrepreneurship and enabling a better ma rket access based on the principles of 
reciprocity and fairness. To reach these objectives, it pursues a combined unilateral, bilateral, 
regional and multilateral approach to trade policy.  
2.9.  The Ministry of Economic Affairs (MOEA) remains in charge of formu lating and implementing 
economic policy and its responsibilities, inter alia , include trade and investment.9 The Bureau of 
Foreign Trade (BOFT), one of MOEA's administrative agencies, is responsible for formulating 
Chinese Taipei's trade policies, promotin g trade, and managing trade -related activities.10  
2.10.   The Office of Trade Negotiations (OTN) continues to be responsible for international trade 
negotiations.11 In September 2016, supervision of the OTN was upgraded in order to achieve 
better coordination betwe en the various agencies involved in negotiations to join the 
Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP) and the Regional 
Comprehensive Economic Partnership (RCEP).12 
2.11.   Various other ministries are involved in trade policy an d trade relations. In particular, the 
Ministry of Finance (MOF) is in charge of customs policy and customs -related affairs, tax policy and 
promotion of private participation in infrastructure projects. The Ministry of Health and Welfare is, 
inter alia , res ponsible for issues related to food safety and sanitation. The Ministry of 
Transportation and Communication is in charge of administering all aspects of transportation and 
communications. The NDC is, inter alia , responsible for formulating high -level indus trial 
development policies.13 Other agencies with trade -related responsibilities include: the Financial 
Supervisory Commission, which is in charge of development, supervision, regulation and 
examination of financial markets and financial institutions; the C ouncil of Agriculture, which is 
responsible for issues related to agriculture, forestry, fishery, animal husbandry and agrifood 
affairs; the Public Construction Commission, which deals with issues related to government 
procurement; the Ministry of Justice,  which is responsible for issues, inter alia,  related to 
formulating and reviewing legal proposals. The Fair Trade Commission is responsible for 
formulating fair trade and multi -level marketing (i.e. direct sales) policies and regulations and 
other related  matters. A communications commission (NCC14) accommodates the convergence of 
technology, promotes the sound development of communications, protects the interests of 
consumers and promotes cultural diversity.  
2.12.   The Committee on Global Economic and Trade Stra tegy created in 2012 functions as a 
high-level advisory committee on international economic and trade issues. There have been no 
changes to its structure and responsibilities over the review period.  
                                                
9 For full details of MOEA's responsibilities see online information. Viewed at: 
http://www.moea.gov.tw/MNS/english/content/Content.aspx?menu_id=190 . 
10 More detailed information on BOFT responsibilities are available at: 
https://www.trade.gov.tw/english/Pages/List.aspx?nodeID=83 . 
11 Online information. Viewed at: 
https://www.moea.gov.tw/MNS/otn_e/content/Content .aspx?menu_id=2701 .  
12 Online information. Viewed at: 
http://www.moea.gov.tw/MNS/otn_e/content/Content.aspx?menu_id=2701 .  
13 Online information. Viewed at: 
https://www.ndc.gov.tw/en/cp.aspx?n=C60222ACEB170E83&s=66EECE3106225E9D . 
14 Online information. Viewed at: https://www.ncc.gov.tw/english/content.aspx?site_content_sn=284 .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
- 31 - 
 
  2.13.   The Chung -Hua Institution for Economic Research (CIER) co ntinues to serve as an economic 
and industry -related research policy think -tank making recommendations to the authorities . 
2.14.   Economic, trade and investment goals are contained in the 17th mid-term development plan 
(NDP 2017-2020) which is the main strategy d ocument, reviewed every four years, for addressing 
current development needs. Stimulating the economy is identified as a priority task and in this 
regard, Chinese Taipei intends to increase domestic investment and institute structural reforms so 
as to addr ess long -standing problems such as low business profits, stagnating wages and 
companies migrating abroad. The plan contains six core policies, one of which is "industrial 
upgrading and an innovative economy". Under this policy heading, an ecosystem for ind ustrial 
innovation is to be developed through the promotion of technological innovation, funding 
assistance, personnel support and easing of regulations. Certain innovative industries (an Asian 
Silicon Valley, intelligent machinery, green energy technology , biomedicine, new agriculture and 
the circular economy) are to be promoted to add value across all industry sectors. Additionally, 
emphasis is placed on building a digital environment and bringing technical innovations to the 
service sector and on encoura ging innovations in the chip design and semiconductor industries, 
cultural and creative sectors, lifestyle industries and other fields with high growth potential such as 
gaming. Another of the six core policies emphasises enhancing bilateral ties with trad e partners 
and diversifying export markets and products.15 
2.15.   A Five -Plus-Two Industries Innovation Plan emphasises accelerating overall industrial 
upgrades through innovation and envisages the future of Chinese Taipei's industry as being 
characterized by cros s-industry technology integration. It contains elements of previously 
implemented strategies, such as the "Productivity 4.0 Initiative" and the "Industry Upgrading and 
Transformation Action Plan", and was formulated to be aligned with the administration's "New 
Economic Model" which is focused on sustainable development, innovation, employment and the 
distribution of wealth. The five target industries for which industrial innovation plans have been 
developed include: an Asia Silicon Valley; smart machinery; green energy; and biotech and 
pharmaceuticals. The "Plus -Two" element of the Plan relates to "new materials" and the "circular 
economy" with the aim of supporting across -the-board industrial transformation and upgrading.  
2.16.   A New Southbound Policy, launched in 2016, aims to foster economic cooperation and 
integration with ASEAN, South Asia, New Zealand, and Australia. The elaborated work plan is 
aimed at realigning the role of Chinese Taipei in Asian development and seeking new opportunities 
and momentum for its own development. It focuses on the following areas: economic and trade 
cooperation, talent exchanges, resource sharing and institutional links and connectivity. 
Additionally, resources will be used to promote five new flagship projects: regional agricu ltural 
development; medical and public health cooperation and the development of industrial chains; 
industrial talent development; industrial innovation and cooperation; and the NSP forum and youth 
exchange programme, and three prospective areas (e -commerc e, tourism, and infrastructure).  
2.17.   The Forward -looking Infrastructure Development Programme, launched in 2017 with a 
30 year view, aims to build the infrastructure needed for Chinese Taipei's development. It contains 
funding for eight categories: railway pro jects; water environments; green energy; digital 
infrastructure; urban and rural projects; child care facilities; food safety; and human resources.16  
2.18.   Sector -specific trade -related objectives are included in the Agriculture Policy 2015 
(Section  4.1). 
2.19.   Since 2014, trade and investment -related legislation has been amended or introduced in 
virtually all areas (Table 2.1).  
2.20.   Chinese Taipei attaches importance to making its main laws and other regulations 
transparent and readily accessible. Most trade and investment  related laws and regulations are 
available in English and are accessible on the Internet from the websites maintained by relevant 
ministries and agencies or through Chinese Taipei's laws and regulations database 
(http://law.moj.gov.tw/ENG/Law/LawSearchLaw.aspx ).  
                                                
15 Online information. Viewed at: 
https://english.ey.gov.tw/News_Hot_Topic.aspx?n=53CC7B 9EC4AE934F&sms=CEDBC95579E256CB . 
16 Online information. Viewed at: 
https://www.ndc.gov.tw/en/Content_List.aspx?n=BCDB1EECF95E18E2&upn=7767B950199EF590 . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Table 2.1 Principal trade -related laws, January 2018  
Area  Law (year of promulgation and the date  of last amendment)  
Trade  "Foreign Trade Act " promulgated in 1993, amended 11.12.2013  
Investment  "Statute for Investment by Foreign Nationals " promulgated in 1954, amended 
19.11.1997  
E-commerce  Electronic Signatures Act promulgated in 2001  
Import/exp ort 
procedures  "Foreign Trade Act " promulgated in 1993, amended 11.12.2013  
"Enforcement Rules of the Foreign Trade Act " promulgated in 1993, amended 
08.07.2010  
Regulations Governing Import of Commodities promulgated in 1994, amended 
31.07.2012  
Regulations Governing Export of Commodities promulgated in 1993, amended 
08.07.2010  
Regulations Governing Registration of Exporters and Importers promulgated in 1993, 
amended 10.06.2014  
Customs  Customs Act, promulgated in 1967, amended 18.01.2017  
Regulat ion of Tariff Quota promulgated in 2001, amended 27.09.2011  
Taxation  Commodity Tax Act promulgated in 1946, amended 22.11.2017  
Income Tax Act promulgated in 1943, amended 07.02.2018  
VANVABT Act promulgated in 1931, amended 14.06.2017  
TBT The Standards Ac t promulgated in 1946, amended 26.11.1997  
The Commodity Inspection Act promulgated in 14.12.1932, amended in 11.07.2007  
Weight and Measures Act promulgated in 1929, amended 29.01.2009  
Enforcement Rules of Weights and Measures Act promulgated in 1929, amend ed 
22.10.2003  
SPS Statute for Prevention and Control of Infectious Animal Diseases promulgated in 1967, 
amended 24.12.2014  
Plant Protection and Quarantine Act promulgated in 1996, amended 18.06.2014  
Act governing Food Safety and Sanitation promulgated in 1975, amended 24.01.2018  
Food Administration Act promulgated in 1997, amended 18.06.2014  
Competition  Fair Trade Act promulgated in 1991, amended 14.06.2017  
Government 
procurement  Government Procurement Act promulgated in 1998, amended in 06.01.2016  
Intellectual 
property rights  Patent Act promulgated in 1944, amended 18.01.2017  
Trademark Act promulgated in 1930, amended 30.11.2016  
Copyright Act promulgated in 1928, amended 30.11.2016  
Trade Secrets Act promulgated in 1996, amended 30.01.2013  
Agriculture  Agricultural Finance Act promulgated in 2003, amended 18.01.2017  
Agricultural Development Act promulgated in 1973, amended 30.11.2016  
Agricultural Products Market Transaction Act promulgated in 1981, amended 28.11.2012  
Forestry  Forestry Act promulgated in  1932, amended 30.11.2016  
Fisheries  Fisheries Act promulgated in 1929, amended 20.07.2016  
Distant Water Fisheries Act promulgated in 1996, amended 20.01.2017  
Mining  Mining Act promulgated in 1930, amended 30.11.2016  
Energy  Energy Administration Act promulgated in 1980, amended 30.11.2016  
Petroleum Administration Act promulgated in 2001, amended 04.06.2014  
Natural Gas Enterprise Act promulgated in 2011, amended 25.05.2016  
Electricity Act promulgated in 1947, amended 26.01.2017  
Renewable Energy Develop ment Act promulgated in 08.07.2009  
Banking  Banking Act promulgated in 1931, amended 24.06.2015  
Deposit Insurance Act promulgated in 1985, amended 04.02.2015  
Foreign Exchange Regulation Act promulgated in 1949, amended 29.04.2009  
Insurance  Insurance Act promulgated in 1929, amended 31.01.2018  
Electronic payment  Act Governing Electronic Payment Institutions promulgated in 2015, amended 
14.06.2017  
Telecommunication  Telecommunications Act promulgated in 1958, amended 11.12.2013  
Air Transport  Civil Aviatio n Act promulgated in 1953, amended 04.02.2015  
Maritime transport  Shipping Act promulgated in 1981, amended 22.01.2014  
Rail Transport  Railway Act promulgated in 1958, amended 09.11.2016  
Tourism  Act for the Development of Tourism promulgated in 1969, amended 11.01.2017  
Source:  Information provided by the authorities; and online information. Viewed at: 
http://law.moj.gov.tw/ENG/Law/LawSearchLaw.aspx ; 
http://law.coa.gov.tw/GLRSnewsout/EngLawQuery.aspx ; 
https://law.banking.gov.tw/Eng/FLAW/FLAWQRY01.aspx?lpcode=02 ; 
http://law.moj.gov.tw/eng/LawClass/LawList.aspx?LC=0118 . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.21.   Chinese Taipei has stated that trade remains pivotal to its economic development; it strives 
to pursue a free and open mult ilateral trade regime, and actively participates in the WTO 
discussions in order to contribute to the formulation of new international trade regulations and 
eventually to create greater and more tangible opportunities for all the stakeholders in the ever 
changing global trade environment.17 
2.22.   Chinese Taipei acceded to the WTO in January 2002 and it grants at least MFN treatment to 
WTO Members (exceptions are described in Section 3.1.5.1). It is a signatory to the civil aircraft 
and information technology agree ments as well as being party to the Government Procurement 
Agreement. In July 2012, Chinese Taipei accepted the 2005 Protocol Amending the TRIPS 
Agreement. In April 2014, it accepted the Protocol Amending the Government Procurement 
Agreement, and in August  2015, the Protocol concerning the Trade Facilitati on Agreement 
(Section  3.1.1).18 The last TPR of Chinese Taipei was held in 2014. In July  2015, Chinese Taipei 
notified the WTO of preferential treatment it grants to services and services suppliers of least  
developed countries stemming from the WTO LDC Services Waiver (WT/L/847). As set out in the 
notification, preferential treatment in mode 3 is granted in 8 services sector s, and for mode 4 in 
13 services sectors.19 Chinese Taipei was a participant in negoti ations to expand the ITA, 
concluded in December  2015. Under the new Agreement, import duties are to be eliminated on 
201 high -tech products.20 Between 2013 and 2015, Chinese Taipei's exports of these products 
averaged approximately US$90 billion per year, a nd the net profit from tariff reductions was 
approximately US$820 million.21 Among the 201 product items, Chinese Taipei considers that it 
has a competitive and export advantage with respect to 136 items. It is also a participant in 
plurilateral negotiations on the Trade in Services Agreement (TiSA) and on environmental goods 
(EGA).  
2.23.   At the WTO's 11th Ministerial Conference held in 2017, Chinese Taipei joined the following: 
the Joint Declaration of Trade and Women's Economic Empowerment; the Joint Ministerial 
Statement on Services Domestic Regulation; the Joint Statement on Electronic Commerce; the 
Declaration on the Establishment of a WTO Informal Work Programme for MSMEs; the Fossil Fuel 
Subsidies Reform Ministerial Statement; and the Declaration in Support of the Multilateral Trading 
System.22 
2.24.   Since 2014, Chinese Taipei has participated as a complainant in three new dispute 
settlement cases (Table 2.2 ) and has reserved its third party rights in 22 cases.23 It has not been 
involved as a defendant dur ing this period.  
                                                
17 BOFT (2016), The Development of International Trade 2016 -2017, November 2016. Viewed at: 
https://www.trade.gov.tw/english/Pages/List.aspx?nodeID=83 . 
18 WTO online information. Viewe d at: 
https://www.wto.org/english/tratop_e/tradfa_e/tradfa_agreeacc_e.htm . 
19 WTO document S/C/N/811, 27 July 2015. Preferential treatment in mode 3 is granted to: video 
tape/motion picture production and distribution services; motion picture projection services; wholesale trade 
services of motor vehicles; sales of parts and accessories of motor vehicles; sales of motorcycles and 
snowmobiles and related parts and accessories;  retailing services of motor fuel; freight transportation; and 
rental or leasing services concerning aircraft without operators. Preferential treatment in mode 4 is granted to: 
publishing services (excluding sound publishing services); rental/leasing servi ces without operators; 
building -cleaning services; packaging services; duplicating services; translation and interpretation services; 
storage and warehousing services; advertising services; food serving services; photographic services; 
telephone answering services; mailing list compilation and mailing services; and, other entertainment services.  
20 Products covered by the ITA Expansion include: new generation multi ‐component integrated circuits 
(MCOs), touch screens, GPS navigation equipment, portable intera ctive electronic education devices, video 
game consoles, and medical equipment, such as magnetic resonance imaging products and ultra ‐sonic 
scanning apparatus. Briefing note: the Expansion of Trade in Information Technology Products (ITA 
Expansion), 16 Dec ember 2015. Viewed at: 
https://www.wto.org/english/news_e/news15_e/itabriefingnotes161215_e.pdf . 
21 BOFT (2016), The Development of International Trade 2016 -2017, Novem ber. Viewed at: 
https://www.trade.gov.tw/english/Pages/List.aspx?nodeID=83 . 
22 WTO online information. Viewed at: 
https://www.wto.org/english/thewto_e/minist_e/mc11_e/documents_e.htm .  
23 WTO online information. Viewed at: 
https://www.wto.org/english/tratop_e/dispu_e/find_dispu_cases_e.htm . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Table 2.2 WTO dispute settlement cases involving Chinese Taipei, 
January  2014 -January  2018  
Subject of dispute (WTO 
document series)  Status  
Canada — Anti-Dumping 
Measures on Imports of Certain 
Carbon Steel Welded Pipe 
(WT/DS482)  Chinese Taipei requested consultations with Canada on 25  June 2014. No 
mutually agreed solution was reached and Chinese Taipei requested the 
establishment of a panel on 22 January 2015. The panel was established 
on 10  March  2015. The panel report was circulated to Members on 
21 December  2016. Canada and Chinese Taipei agreed to implement the 
DSB's recommendations within a reasonable period of time that is set to 
expire  on 25  March 2018.  
Indonesia — Safeguard on 
Certain Iron or Steel Products 
(WT/DS490)  Chinese Taipei requested consultations with Indonesia on 
12 February  2015. No mutually agreed solution was reached and Chinese 
Taipei requested the establishment of a pa nel on 20 August 2015. The 
panel was established on 9  December 2015. The panel report was 
circulated on 18 August 2017. Indonesia notified the DSB of appeal to the 
AB on 28  September  2017; Chinese Taipei notified the DSB of its decision 
to cross -appeal on 3 October  2017.  
India — Anti-Dumping Duties on 
USB Flash Drives (WT/DS498)  Chinese Taipei requested consultations with India on 24  September  2015.  
Source:  WTO online information. Viewed at:  
https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds482_e.htm ; 
https://www.wto.org/english/tr atop_e/dispu_e/cases_e/ds490_e.htm ; and 
https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds498_e.htm . 
2.25.   Chinese Taipei has submitted notifications to the WTO in most areas ( Table A2.1). As at 
January 2017, notifications were not up to date only in one area (Agreement on Agriculture: 
Art. 18:2 domestic support for which the latest notification covers the years 2011 and 2012). It 
has not made any notifications under GATS Art.  III:3 and GATS  Art. VII:4.  
2.3.2   Regional and preferential agreements  
2.3.2.1   Regional trade agreements (RTAs)  
2.26.   As at January 2018, Chinese Taipei had regional trade agreements (RTAs) in force with 
China, El Salvador, Guatemala, Honduras, New Zealand, Nicaragua, Panama, P araguay, and 
Singapore.  All these RTAs have been notified to the WTO Committee on Regional Trade 
Agreements (CRTA), with the exception of the RTA with China (the Cross -Straits Economic 
Cooperation Framework Agreement (ECFA)), for which an early announcemen t has been made, 
and the RTA with Paraguay. The main features of all of these RTAs together with details of the 
status of their consideration by the WTO CRTA, are detailed in Table A2.2. The authorities 
indicated that the RTA with China will be notified to  the WTO once the follow -up agreements (see 
below) have been concluded.  
2.27.   Since the previous review, RTAs have entered into force, with Singapore, New Zealand and 
Paraguay.  
2.28.   Chinese Taipei's RTA with Singapore was signed on 7 November 2013 and entered into fo rce 
on 19 April 2014. It was considered in the WTO's CRTA on 30 March 2015.24 In 2017, 
Chinese  Taipei's merchandise trade with Singapore constituted 3.4% of total imports and 5.8% of 
total exports. The Agreement covers liberalization of trade in both  goods and services. 
Chinese  Taipei's transition period for tariff liberalization continues until 2028 at which point 99.5% 
of tariff lines will be duty free. A total of 46 lines will remain subject to duties.25 With regard to 
Singapore, as at  2014, 99.9% o f total lines in its tariff schedules were duty free on an MFN basis; 
the remaining six lines became duty -free upon the entry into force of the Agreement. The 
Agreement also incorporates services commitments which go beyond the scope of those scheduled 
under the GATS (Section 4.4). The Agreement, inter alia, contains provisions on: investment; 
                                                
24 WTO online information. Viewed at: 
http://rtais.wto.org/UI/PublicShowMemberRTAIDCard.aspx?rtaid=527 .  
25 Tariffs will continue to apply in 11 Chapters; in ten chapters, the preferential tariffs are the same as 
the MFN rate, while in one (tobacco), the preferential tariff is lower than the MFN rate.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  competition; electronic commerce; government procurement (Section 3.3. 6); and, intellectual 
property cooperation.26 
2.29.   As noted by the authorities, Chinese Taipei's expor ts of electrical and electronic products to 
Singapore have been the largest growing export items since the entry into force of the RTA, 
accounting for more than 50% of all exports to Singapore. Liberalization of Singapore's tariffs on 
certain alcoholic bev erages is expected to boost the share of Chinese Taipei's beer in the 
Singaporean market. Exports from Singapore to Chinese Taipei have mainly been items with 
applied zero tariff treatment upon the RTA's entry into force such as machines and machine tools,  
electrical machinery and equipment and parts thereof, plastics and articles thereof, rubber and 
articles thereof, man -made filaments, dyes and pigments and other colouring matter. Other 
aspects noted by the authorities are: an increase in bilateral trade in tobacco and Chinese herbal 
medicines; an increase in the number of Chinese Taipei businesses (20%) that self -issue 
certificates of origin in order to apply for preferential tariffs under the RTA; promotion of mutual 
recognition of both parties' laborato ries and the test reports and compliance certificates issued by 
them; and promotion of bilateral investment in telecommunications, cable broadcasting and 
television, banking and shipping.  
2.30.   Chinese Taipei's RTA with New Zealand was signed on 10 July 2013 an d entered into force 
on 1 December 2013. It was considered in the WTO's CRTA on 10 November 2014.27 In 2017, 
Chinese Taipei's merchandise trade with New Zealand constituted 0.3% of total imports and 0.2% 
of total exports. Chinese Taipei's transition period for tariff liberalization continues until 2025 at 
which point 99.9% of tariff lines will be duty free. A total of 11 lines will remain subject to duties; 
these are rice and rice products. During the transition period, Chinese Taipei has transitional TRQs 
on two products – liquid milk and deer velvet. New Zealand was to liberalize all tariff lines by 
2017. The Agreement incorporates services commitments which go beyond the scope of those 
scheduled under the GATS (Section 4.4). The Agreement, inter alia, also contains provisions on 
investment, competition, electronic commerce, government procurement (Section  3.3.6), 
intellectual property, labour and environment issues, and cooperation on indigenous issues.28 It 
contains a "self -certification" ("self -declaration ") system for origin determination. An arrangement 
to recognize compliance with Good Laboratory Practice was signed by the two parties in 2017. The 
authorities indicated that since entry into force of the RTA with New Zealand, bilateral trade has 
steadily grown; New Zealand's exports to Chinese Taipei have grown by 30%, dominated by 
agricultural products, while Chinese Taipei's exports to New  Zealand grew by 7%, primarily 
industrial products.  
2.31.   On 12 July 2017, Chinese Taipei and Paraguay signed an Agreement  on Economic 
Cooperation providing for limited reciprocal tariff liberalization as well as cooperation between the 
parties in various areas (technological and technical cooperation; small and medium enterprises; 
investment promotion; customs; TBT; and SPS) . This agreement entered into force on 
28 February 2018. Under the agreement, Chinese Taipei committed to reduce to zero over a five 
year period, customs duties on 54 tariff lines at the HS  8-digit level, in areas including: beef; 
starch; fruit juice; tea or mate; animal food; certain essential oils; certain soaps; various wood 
products and certain footwear. Paraguay provides preferential tariff rates for 19 products. The 
tariff rate for five of these products is zero (sodium hydroxide, other non -ionic orga nic surface -
active agents, polyethylene terephthalate, other self -adhesive plates, and self -adhesive paper and 
paperboard). The other preferential tariff rates range between 4% and 18% and apply to items 
including: printing inks; plastic tableware; sportsw ear; iron/steel articles; hand tools; table fans; 
bicycles and fishing reels.29 
2.32.   There have been no further developments with respect to agreements on trade in goods, 
trade in services or dispute settlement under the Cross -Straits Economic Cooperation Agreem ent 
with China since 2014.30 
                                                
26 WTO document WT/REG350/1, 19 January 2015.  
27 WTO online in formation. Viewed at: 
http://rtais.wto.org/UI/PublicShowMemberRTAIDCard.aspx?rtaid=874 . 
28 WTO document WT/REG348/1, 16 July 2014.  
29 Online information. Viewed at: 
https://www.trade.gov.tw/english/Pages/Detail.aspx?nodeID=1838&pid=624240 .  
30 The Cross -Strait Investment Protection and Promotion Agreement was signed in August 2012 a nd 
entered into force in February 2013. The draft Trade in Services Agreement was concluded and signed in WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  2.33.   No other RTAs are being negotiated. However, Chinese Taipei continues to seek to join the 
CPTPP and is undertaking preparatory work, inter alia , by updating its CPTPP impact assessment 
study, performing regime gap analysis, and through adjustment and support outreach.31 
Chinese  Taipei also seeks to participate in the RCEP and other sub -regional economic integration 
efforts.  
2.3.2.2   Preferential trade agreements  
2.34.   Chinese Taipei continues to offer non -reciprocal trade preferences to all leas t developed 
countries (LDCs) designated as such by the United Nations. The 163 tariff lines covered by the PTA 
have a tariff rate of zero. Goods imported from these countries are regarded as originating if the 
goods are wholly obtained, or the regional val ue content ratio is more than 50%; preferential 
certificates of origin must be issued and certified by the LDCs respective governments.32 Among 
Chinese Taipei's biggest trading partners within the LDC group, preferential treatment is most 
used by Bangladesh  (77% of its imports entered Chinese Taipei using preferential tariffs in 2017), 
Cambodia (92%) and Myanmar (79%) (Table A2.3).  
2.35.   Chinese Taipei is among the four non -LDC WTO Members who receive GSP (Generalized 
System of Preferences) treatment from Australi a.33 It is eligible for preferential tariffs on 181 tariff 
lines (43 are agricultural goods and 138 non -agricultural), of which 164 are duty -free lines 
(27 agricultural goods and 137 non -agricultural goods).34  
2.3.3   Other agreements and arrangements  
2.3.3.1   APEC  
2.36.   Chinese Taipei has been a member of APEC since 1991. In November 2017, APEC member 
economies reaffirmed their commitment to achieve free and open trade and investment in the 
region by  2020. The members pledged to continue working together to promote innovative 
growth, inclusion and sustainable employment; create new drivers for regional economic 
integration; strengthen the capacity and innovation of MSMEs; enhance food security and 
sustainable agriculture in response to climate change; and foster a shared future.35 As indicated by 
the authorities, Chinese Taipei continues to be an active participant in different meetings. It has 
proposed initiatives and organized seminars and meetings in accordance with the theme set by the 
host economy while promoting trade in good s and services as well as the reduction of obstacles to 
commercial activities.36 
2.4  Investment Regime  
2.4.1   General investment regime  
2.37.   Chinese Taipei continues its policy of encouraging investment to provide a new engine for 
economic growth. An investment commission (MOEAIC) under the MOEA remains in charge of 
matters relating to the screening and approval of inward investment and technical cooperation as 
well as outward investment.37 In addition, the Department of Investment Services under the MOEA 
provides  single one -stop investment information services relating to planning, launching and 
expanding investments in Chinese Taipei. It promotes investments in the "5+2" innovative 
industries  (see above).  For the promotion of these sectors, Chinese Taipei is usin g both tax and 
non-tax incentives including, inter alia: tax credits, support related to assigning/licensing IPRs 
                                                                                                                                                  
June 2013, and ratification is pending. The negotiations on trade in goods and dispute settlement have not yet 
been concluded.  
31 The authorities indic ated that Chinese Taipei's bilateral trade with the 11 CPTPP economies accounted 
for 25.3% of total trade in 2016 (21.8% of exports and 29.4% of imports) as well as 55% of inward 
investment flows.  
32 WTO online information. Viewed at: 
http://ptadb.wto.org/docs/ChineseTaipei_LDC/2012/Chinese%20Taipei%20guide%202012%20En.pdf . 
33 The other three Members are Singapore; Korea (Rep. of); and Hong Kong, China.  
34 WTO online information. Viewed at: http://ptadb.wto.org/ptaTradeInfo.aspx . 
35 APEC online information. Viewed at: https://www.apec.org/Meeting -Papers/Leaders -
Declarations/2017/2017_aelm .  
36 Online information. Viewed at: https://www.trade.gov.tw/english/Pages/List.aspx?nodeID=83 .  
37 Online inf ormation. Viewed at: https://www.moeaic.gov.tw/about.view?type=atIo&lang=en .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  (Section 3.3. 7), payments from assigning/licensing IPRs, R&D subsidies, such as partial R&D and 
employee training expenditure reimbursement, a nd low interest loans.38 
2.38.   Since the previous review, there have been no chang es to the legal framework. 
2012 amendments to the "Statute for Investment by Foreign Nationals" were not passed by the 
legislature.39 Given this development, the MOEA has been conduc ting a comprehensive 
re-evaluation of the current draft amendments. It has sought public comments and is working to 
put together all relevant opinions. Thereafter it will revise the draft of the amendment and submit 
it through the regular legislative proce ss. In this context, the authorities indicated that 
consideration is being given to removing the pre -investment screening/review requirement and 
replacing it with a post -investment registration mechanism.  
2.39.   Chinese Taipei also provides a range of tax incenti ves for investments in various sectors. 
These tax incentives include: VAT exemptions; tax credits; exemptions from stamp, deed, 
securities transaction, business, land value and house taxes; five -year tax holidays; tax deferrals 
for acquisition of shares; a nd tax exemptions on royalty payments.40 In addition, favourable 
conditions exist for investors in free trade zones. These conditions include, inter alia, exemptions 
from (i) customs duty; (ii) commodity, business, tobacco and liquor taxes; (iii) public hea lth and 
welfare duties on tobacco products; and (iv) trade promotion service fees and harbour service 
fees.41 
2.40.   Chinese Taipei does not impose any limitations on the amount of investment capital.  If an 
investor holds more than one -third of total shares or con tributed more than one third of total 
capital, then the reinvestment to be made by the invested enterprise must be approved by the 
MOEA.42 According to the Statute (Article 7), potential investors are prohibited from investing in 
industries that may negativ ely affect security, public order, good customs and practices, or health; 
and those which are prohibited by the law. Chinese Taipei's negative list (prohibited and restricted 
industries) for inward investment is a compilation of restrictions contained in d ifferent laws. It was 
amended in February 2018 with overseas investment being allowed in ship leasing services, wheat 
cultivation, buckwheat cultivation, job's tears (adlay) cultivation, and protected cultivation of 
organic vegetables (limited to plant fac tories only) (Table A2.4).  
2.41.   In the case of expropriation/acquisition of an invested enterprise, the investor will be 
entitled to a reasonable compensation provided the investment accounts for less than 45% of the 
total capital amount of the invested enterp rise. If the investment accounts for 45% or more of the 
total capital amount of the enterprise in which the investment is directed, the invested enterprise 
is not subject to requisition or expropriation, as long as the said capital contribution rate of the  
investor remains unchanged for a period of twenty years after the commencement of business of 
the invested enterprise.43 
2.42.   During the review period, a bilateral investment treaty (BIT) with the Philippines was 
renegotiated and entered into force in 2018. Sev en new double -taxation agreements have entered 
into force, with Kiribati, Luxembourg, Austria, Italy, Japan, Canada and Poland. A new double 
taxation agreement (DTA) on shipping and air transport entered into force with Macao, China. The 
                                                
38 Online information. Viewed at: http://investtaiwan.nat.gov.tw/showPage?lang=eng&search=reward .  
39 The amendments were aimed at loosening restrictions so that investors may report to the competent 
authority after investing in Chinese Taipei. Around 80% of FDI projects were expected to benefit from the new 
policy, which, according to the authorities, should have not only streamlined and facilitated the investment 
application but also made the FDI regime considerably more investor -friendly. WTO document WT/REG268/1, 
21 September 2010.  
40 More detailed information on these tax incentives is available, inter alia,  in the Statute for Innovation 
(for tax credits); Business Mergers and Acquisitions Law (for stamp, deed, securities transaction, and business 
tax exemptions); New Pharmaceutical Development Act (for trainings, investment tax credits etc.); and 
Income Tax Act (for tax exemption on royalty payment).  
41 Online information. Viewed at: 
http://investtaiwan.nat.gov.tw/showPageeng10310016?lang=eng&search=10310016 . 
42 Investment can be made in the form of: cash, machinery and equipment or raw materials for own 
use; patent right, trademark right, copyright, technical know -how or other intellec tual property right; and 
other property in which the investor may invest under the Competent Authority's approval. Articles 5 and 6 of 
the Statute. Viewed at: http://law.moj.gov. tw/Eng/LawClass/LawAll.aspx?PCode=J0040002 . 
43 "Statute for Investment by Foreign Nationals", Article 14. Viewed at: 
http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=J0040002 . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Singapore –Chinese Taipei RTA which entered into force in 2014 contains investment provisions 
(Box 2.1).  
Box 2.1 Investment framework, January 2018  
RTAs with investment provisions (date of entry into force):  
Singapore –Chinese Taipei (19/04/2014); New Zealand –Chinese Taipei (01/07/2013); China –Chinese  Taipei 
(01/09/2010); Nicaragua –Chinese Taipei (01/01/2008); Guatemala –Chinese Taipei (01/07/2006); 
Panama -Chinese  Taipei (01/01/2004).  
BITs in force (date of ent ry into force):  
Argentina (1993); Belize (1999); Burkina Faso (2003); China (2013); Costa Rica (2004); Dominican Republic (2001); 
El Salvador (1997); The Gambia (2010); Guatemala (2001); Honduras (1996); India  (2002); Indonesia (1990); Japan 
(2012); Liberia (2000); Malawi  (1995); Malaysia (1993), Marshal  Islands (1999); Nicaragua (1993); Nigeria (1994); 
Panama (1992); Paraguay  (1992); Philippines (2018); Saint  Vincent and the Grenadines (2010); Saudi Arabia (2000); 
Senegal (2007); Singapore (1990); Swaziland (1998); Thaila nd (1996); The former Yugoslav Republic of 
Macedonia  (1999); United States (1952); and Viet Nam (1993).  
DTAs in force (date of entry into force)  
Australia (1996); Indonesia (1996); Malaysia (1999); New Zealand (1997); Singapore (1982); Viet Nam (1998); 
Thailand (signed in 1999, not in force); South Africa (1996); The Gambia (1998); Swaziland (1999); The former 
Yugoslav Republic of Macedonia (1999); the Netherlands (2001); the United Kingdom (2002); Senegal (signed in 
2004); Sweden (2004); Belgium (2005); Denmark (2005); Israel (2010); Paraguay (2010); Hungary (2010); 
France  (2011); India (2011); Slovakia (2011); Switzerland (2011); Germany (2012); Thailand (2012); 
Kiribati  (2014); Luxembourg (2014); Austria (2014); Italy (2015); Japan (2016); Canada (2016) ; and Poland (2016).  
DTAs (shipping and air transport)  
The Netherlands (air transport 1983, shipping 1988); Thailand (1984); Luxembourg (1985); Germany (1988); 
United  States (1988); European Union (1990); Japan (1990); Sweden (1990); Republic of Korea (199 1); 
Norway  (1991); Canada  (1995); and Macao, China (2017).  
Source:  UNCTAD Investment Policy Hub online information. Viewed at: 
http://investmentpolicyhub.unctad.o rg/IIA/CountryBits/205#iiaInnerMenu ; and Bureau of Foreign 
Trade online information. Viewed at: 
https://www.trade.gov.tw/english/Pages/List.aspx?nodeID=663 . 
2.4.2   Business environment  
2.43.   During the review period, Chinese Taipei slightly improved its ranking relating to the 
environment for business, trade and investment according to the World Bank's Doing Business 
reports. In 2018, it was ranked in 15th place out of 190 economies in comparis on to 16th place out 
of 189 economies in 2014. Chinese Taipei improved its performance with respect to starting a 
business, dealing with construction permits, getting electricity, registering property, protecting 
minority investors, paying taxes, and enfor cing contracts. Procedures related to getting credit, 
trading, and resolving insolvency have reportedly become more cumbersome.44  
2.44.   However, the World Economic Forum's 2017 -2018 Global Competitiveness Index showed a 
poorer performance of Chinese Taipei compa red to that in 2013 -2014 (15th place out of 
137 economies in the World Economic Forum's 2017 -2018 Global Competitiveness Index compared 
to 12th place out of 148 economies in 2013 -2014). The most concerning areas remain: policy 
instability, restrictive labo ur regulations, an inefficient capacity to innovate and bureaucracy. It 
improved its rankings on access to financing, combatting corruption, tax regulations and rates.45  
2.45.   Realizing the obstacles that companies are facing, the Small and Medium Enterprise 
Administration (SMEA) of the MOEA, aims to: (1) create a healthy environment for the 
                                                
44 World Bank (2018), Doing Business 2018: Reforming to create jobs . Viewed at: 
http://www.doingbusiness.org/~/media/WBG/DoingBus iness/Documents/Annual -Reports/English/DB2018 -Full-
Report.pdf  (p. 197); World Bank (2014), Doing Business 2014: Understanding Regulations for Small and 
Medium -Size Enterprises . Viewed at: 
http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual -Reports/English/DB14 -Full-
Report.pdf . 
45 WEF (2017), The Global Competitiveness Report 2017 -2018. Viewed at: 
http://www3.weforum.org/docs/GCR2017 -
2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf ; WEF (2012), The Global 
Competitiveness Repor t 2013 -2014. Viewed at: 
http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2013 -14.pdf . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  development and growth of SMEs; (2) enhance SMEs' informati on technology capabilities; 
(3) optimize SMEs' operational management capabilities; (4) promote sound development o f SME 
finance; and (5)  build a platform for enterprise start -up and incubation.46 In addition, the 2017 
Business Development Policy focuses on enterprise promotion in three key sectors: 
(1) e-commerce; (2)  smart logistics, and (3) internationalization  of th e food and beverage 
industry.47 
2.46.   As outlined in the 2016 Asia Silicon Valley Development Plan, the authorities are focusing on 
optimizing Chinese Taipei's start -up and entrepreneurship ecosystem; enhancing linkages with 
renowned technical clusters worldwide by forging connections with the research and development 
capabilities; building a complete Internet of Things (IoT) supply chain by integrating hardware 
advantages into software applications; and constructing diversified demonstration sites for smart 
produ cts and services.48  
2.47.   During the review period, Chinese Taipei introduced some amendments to the legal 
framework. The 2015 amendments to the Company Act, which regulates the organization, 
registration, and establishment -related matters for profit -making companies, allowed the 
incorporation of closed companies in order to create more flexibility for entrepreneurs and 
start-ups.49 Further draft amendments have been approved by the executive branch and are 
pending ratification by the legislature. These are in tended to create a friendlier environment for 
start-ups and entrepreneurs, improve corporate governance, enhance the rights and interests of 
shareholders, increase compliance with international money laundering norms and boost 
enterprises' operational flex ibility, management efficiency and digitalization efforts. The Act for 
Development of Small and Medium Enterprises, reviewed in January 2016, aims to enhance sound 
development of SMEs by helping them improve their operation environments, promoting mutual 
cooperation, and assisting them in striving for growth with their own efforts.50  
2.48.   Specific changes for the recruitment of overseas professionals, introduced by a 2017 Act in 
this area, comprise: (i) relaxation of regulations on work, visa, and residence, inc luding extension 
of work permits from three to five years, employment -seeking visas for overseas professionals, 
and permitting cram schools to hire overseas teachers; (ii) easing of provisions related to stay or 
residence of parents, spouses and children; and (iii) benefits on retirement, insurance and tax, 
namely, inclusion in the retirement pension system of overseas professionals with permanent 
residence status, abolition of the minimum residence requirement to participate in public health 
insurance, and  tax benefits for professionals with an income of more than NT$3 million per year.51 
2.49.   An online portal, Company, Business and Limited Partnership One -Stop Services Request  
(https://onestop.nat.gov.tw ), established i n 2011, aids companies to simplify the procedures for 
business setups and expands the service menu offered to enhance the facility of the operating 
business environment.52 
2.50.   The legal regime for e -commerce in Chinese Taipei includes, inter alia , the Electroni c 
Signature Act which aims to (1) promote universal applications of electronic transactions, 
(2) ensure the security of electronic transactions, (3) promote e -government and e -commerce 
development, and (4) enable electronic signatures to have the same func tion as those in actual 
                                                
46 Small and Medium Enterprise Administration online information. View ed at: 
http://www.moeasmea.gov.tw/ct.asp?xItem=204&CtNode=317&mp=2 . 
47 Commerce Industrial Services Portal online information. Viewed at: 
http://gcis.nat.gov.tw/mainNew/English/subclassEnAction.do?method=getFile&pk=160 .  
48 Online information. Viewed at: 
https://www.ndc.gov.tw/en/Content_List.aspx?n=90BEB862317E93FC&upn=7B70255F66FB9DF5 .  
49 More detailed information on relevant regulation is available at the Commerce Industrial Service 
Portal. Viewed a t: http://gcis.nat.gov.tw/mainNew/English/subclassEnAction.do?method=getFile&pk=96 ; Law 
Source Retrieving System of Business and Industry. Viewed at: 
http://gcis.nat.gov.tw/elaw/English/lawEnDtlAction.do?method=browse ; and 2017 Business Development 
Policy. Viewed at: http://gcis.nat.gov.tw/mainNew/English/subclassEnAction.do?method=getFile&pk=160 .  
50 Act for Development of Small and Medium Enterprises, Article 1. Viewed at: 
http://www.moeasmea.gov.tw/lp.asp?ctNode=299&CtUnit=78&BaseDSD=7&mp=2 .  
51 "Act for the Recruitment of Foreign Professionals" (approved on 7 November 2017). Viewed at: 
https://www.ndc.gov.tw/en/News_Content.aspx?n=0E2DCBAA6CB72F12&sms=B079565EECDD8520&s=225AB
A2660D863FE . 
52 More detailed information on comp any registration is available at the Commerce Industrial Services 
Portal. Viewed at: http://gcis.nat.gov.tw/mainNew/English/index.jsp .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  documents or general signatures/seals. In addition, Enforcement Rules of the Electronic Signatures 
Act were formulated to facilitate the promotion and implementation of the electronic signatures. 
Further regulations in this area inc lude the "Regulations on Required Information for Certification 
Practice Statements" and the "Regulations Governing Permission of Foreign Certification Service 
Providers".53 
2.51.   Chinese Taipei has generally improved its ranking in various transparency indices. In 2016, 
it ranked 31st (36th in 2014) out of 176 economies  in Transparency International's Corruption 
Perception Index (CPI), which measures the perceived level of public sector corruption.54 In 2016, 
it had one of the top places in the Customs Transparenc y Index in the Global Enabling Trade 
Report.55 
2.52.   In 2015, Chinese Taipei passed the Act to implement the United Nations Convention against 
Corruption (UNCAC Act); relevant agencies are in the process of preparing, promoting and 
implementing the convention wit hin their functions. In addition, in 2016, Chinese Taipei amended 
its Integrity Building Action Plan to, inter alia,  strengthen the responsibility system, promote 
openness and transparency, conduct indicator research, implement a code of conduct for civil 
servants, and encourage social participation.  
 
                                                
53 Online information. Viewed at: 
http://gcis.nat.gov.tw/mainNew/English/subclassEnAction.do?method=getFile&pk=96 .  
54 Chinese Taipei is not a party of the 2005 United Nations Convention against Corruption (UNCAC). 
Under this Convention, parties are required to establish criminal and other offences to cover a wide range of 
acts of corruption. UNODC online information. Vie wed at: 
https://www.unodc.org/unodc/en/treaties/CAC/signatories.html ; and Transparency International online 
information. Viewed at: https://www.transparency.org/news/feature/corruption_perceptions_index_2016 . 
55 Index of transparency of procedures and regulations related to customs clearance, 0 –1 (best). WEF 
online information. Viewed at: http://reports.weforum.org/global -enabling -trade -report -2016/enabling -trade -
rankings/#series=CUSTTRANSPIND .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1.  Since its previous Trade Policy Review, the general thrust of the Separate Customs Territory 
of Taiwan, Penghu, Kinmen and Matsu's (Chinese Taipei) t rade policy has remained relatively 
unchanged. While no unilateral liberalization has been undertaken, there have been policy 
developments in certain areas including trade facilitati on, tariffs, preferential trade agreements, 
sanitary and phytosanitary requirements, government procurement, competition policy, and 
intellectual property rights.  
3.2.  The tariff is one of the main trade policy instruments; its complexity and peak rates have 
remained unchanged. All tariff rates/lines are bound and the small gap between the simple 
averages of the MFN applied and bound rates ensures largely predictable and stable market access 
conditions. In addition to other charges, an ad valorem  based trade pr omotion service fee 
continues to be collected on incoming and outgoing merchandise; harbour dues for overseas 
routes remain higher than for domestic routes. Import prohibitions, restrictions and licensing 
remain in place. The legislative framework governin g anti -dumping and countervailing measures 
was revised in certain areas and anti -dumping action remained relatively stable; price - or 
volume -triggered special safeguards (SSG) action continued to be taken. The share of standards 
harmonized with internation al standards increased. The quarantine fee for certain incoming and 
outgoing items continues to be charged on an ad valorem  basis.  
3.3.  During the review period, the scope of export prohibitions and licensing was expanded. 
Export loans, guarantees and credit i nsurance at preferential terms have assisted manufacturers 
expand export markets in line with the New Southbound Policy objectives. Measures involving 
various tax and non -tax concessions such as grants, and low -interest loans continued to support 
productio n and trade.  
3.4.  Public -sector involvement in the economy in several areas persists as privatization efforts 
remain widely opposed. Chinese Taipei continues to use government procurement to support 
SMEs, environment -friendly products, indigenous suppliers and  people with disabilities for 
contracts not subject to commitments under international agreements (e.g. GPA). The competition 
policy regulatory framework has been subject to the largest reforms since its entry into force; 
price monitoring and/or stabilizat ion measures remain in place. Consumers' rights were generally 
strengthened. Chinese Taipei's intellectual property rights legislation has been strengthened and 
its overall IPR enforcement system continued to ensure protection to rights holders.  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.1.1   Customs procedures  
3.5.  During the review period, the basic customs legislation, i.e. the Customs Act and its 
Enforcement Rules, remained virtually unchanged.1 In 2014, the Customs Act w as amended to 
clarify the rights and duties of carriers and forwarders by: allowing freight forwarders to present 
their manifest to Customs and operate their transit and transhipment business; providing the legal 
basis for businesses to use self -prepared s eals; and, stipulating that self -use machinery and 
equipment imported by a bonded factory be exempt from customs duties if not moved to an 
unbonded area within five years of the date of importation. In November 2016, the Customs Act 
was further amended in several areas including the application for advance ruling with regard to 
the origin of imported goods (see below), requirements for temporary storage and bonding of 
unclearanced goods, the origin of the goods, the conversion of the price of incoming goods  to NT 
dollars at an exchange rate announced by Customs, and additional penalties and procedures for a 
variety of customs -related infractions.2 The Customs Administration, under the Ministry of Finance 
(MOF), continues to implement customs legislation wher eas other agencies, such as the Council of 
Agriculture and the Department of Health and Welfare, are involved in SPS inspection and licensing 
procedures at the border (Sections 3.1.5.2 and 3.3. 3).  
                                                
1 WTO document WT/TPR/ S/302/Rev.1, 18 December 2015.  
2 Online information ( http://www.internationaltradecomplianceupdate.com/2017/02/03/taiwan -
amendments -to-the-customs -act/). WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.6.  Registration requirements remain in place. In order to eng age in import/export business, a 
firm must register as an importer/exporter with the Bureau of Foreign Trade (BOFT) under the 
Ministry of Economic Affairs (MOEA).3 Branch offices of overseas firms registered with the 
authorities may apply for registration.  Other than these branch offices, non -permanent residents 
are not normally allowed to engage in import/export activities on a professional basis. An 
exporter/importer whose trade performance in the preceding year has attained a prescribed 
turnover, may ben efit from certain preferences.4 The use of customs brokers remains voluntary. A 
customs broker who satisfies certain criteria may seek approval for a reduced inspection ratio, 
valid for one year (renewable).5  
3.7.   Documentation requirements involving an impor t declaration submitted along with a bill of 
invoice, packing list and relevant documents have remained unchanged. Import declarations must 
be lodged within 15 days of arrival of the shipment. Importers may submit a "pre -entry 
declaration". Pre -entry decla red goods may be released by Customs; they may be for import 
through a specific regional customs house or for import through all customs houses in 
Chinese  Taipei.6 The usage rate of pre -entry declaration rose from 10% of total general 
declarations in 2011 to 20% in 2014, 17.6% in 2015, and 18.4% in 2016.  
3.8.  Since August 2013, Customs has operated the Customs -Port-Trade (CPT) Single Window, 
which allows documentation related to customs procedures including customs declarations, trade 
licensing and SPS permits,  to be submitted and processed electronically.7 As from 
11 November  2015, by simply transmitting the completed consolidated import declaration with 
relevant permits to the CPT Single Window System, importers are allowed to file their import 
declaration to Customs while simultaneously applying to licensing agencies for inspection, thus 
enhancing the integration of interagency business services and simplifying clearance procedures.8 
Traders who link to the CPT Single Window through a private information netwo rk service provider 
must pay transmission fees whose ceiling is regulated by the MOF; no fees are charged to traders 
who link directly to the System. According to the authorities, 99.99% (99.95% in  2013) of 
customs declarations were processed electronicall y in 2017, and 70.93% (67% in 2013) of 
customs duties were paid online.9  
3.9.  Customs may grant authorized economic operator (AEO) status to ten categories of 
"economic operators in the supply chain".10 There are two types of AEOs, General AEOs (AEO -G, 
involvin g importers/exporters) and Security and Safety AEOs (AEO -S). The benefits of AEO status 
depend on the type of certificate granted to the economic operator, and could include fewer 
customs controls (such as less documentation examination and reduced random inspection rate), 
simplified customs procedures, and flexibility in customs duties payment.11 AEO programme 
participation is voluntary. As at March 2018, there were 699 (618 in 2014) AEOs of which 
                                                
3 Article 9, the "Foreign Trade Act". The BOFT maintains a directory of registered importers/exporters 
(http://www.trade.gov.tw/english/Pages/List.aspx?nodeID=115 ). 
4 Article 9 -1, the "Foreign Trade Act". Preferences include reduction/exemption in service fees charged 
by TAITRA, a higher credit line of loans for export -brand -promotion activities, and listing in a BOFT directory.  
5 The detailed criteria are listed in the  Operation Directions for Customs Brokers Application for Lowering 
Goods Inspection Ratio. Viewed at: http://web.customs.gov.tw/ct.asp?xItem=51578&ctNode=5831  [in 
Chinese].  
6 Article 4, the Regulations Governing the pre -entry Customs Declaration of Import/Export Goods. 
(https://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0350012 ).  
7 The CPT Single Window  is an integrated paperless infrastructure for customs clearance documents, 
and exchange of trade documents and document verification. More information is available in WTO document 
WT/TPR/S/302/Rev.1, 18 December 2015.  
8 Ministry of Finance (2016), Governm ent Finance - 2016, July.  
9 Presentation by the Customs Administration/Ministry of Finance titled "The Current Status of WTO TFA 
(Trade Facilitation Agreement) Implementation of The Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu ". 
10 "Economic operators in the supply chain" refers to operators involved in the international movement 
of goods, such as importers, exporters, manufacturers, customs brokers, freight forwarders, shipping agents, 
warehouse operators, highway carriers, sea car riers, and air carriers. WTO document WT/TPR/S/302/Rev.1, 
18 December 2015.  
11 Under the AEO scheme, the minimum inspection ratio and quickest customs clearance cut more than 
four hours of clearance time for each container and save inspection fees amountin g to NT$8,000 (general 
inspection fee) to NT$20,000 (container clearance charge). Online Asia Today  article 
(http://www.asiatoday.com/pressrelease/taiwan -us-sign-aeo-and-c-tpat-mra), 10 March 2013.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  125 were importers and 125 exporters.12 Chinese Taipei mainta ins AEO mutual recognition 
agreements (MRAs) with the United States (November 2012), Singapore (July 2013), Israel 
(December  2013) and the Republic of Korea (December 2015); AEOs recognized by the customs 
authorities of these Members enjoy the benefits of trade facilitation in Chinese Taipei, and 
vice versa .13 A pilot AEO programme with China has been implemented from October 2016. An 
action plan regarding an AEO MRA with India has been in place since 11 October 2017. Work for 
the negotiation of AEO MRAs wit h other trading partners (e.g. the European Union and Japan) has 
been ongoing.14  
3.10.   Customs clearance for shipments may be carried out under one of the following three 
modes: "by -pass", "document review" or "document review and physical inspection", determine d 
by computerized selectivity criteria based on various factors, including the reputation of 
importers/exporters, duty rates, and origin of imports (or destination of exports).15 Physical 
inspections are, in general, carried out based on the results of risk  assessment. Chinese Taipei 
conducted time release studies (TRS) in line with the World Customs Organization's guidelines in 
2011 and 2014.16 Since January 2017, Customs has operated a TRS online system allowing online 
public consultation of relevant data o n the "broad -sense release time" (time required from arrival 
to release of containerized goods) gathered after 2016. As at 2017, the average time required 
from arrival to removal of goods was 5 days, 23 hours and 33  minutes for sea cargo, compared to 
4 day s, 21 hours and 50 minutes in 2014; this rise was apparently due to additional control and 
safety measures introduced since 2014. Regarding air cargo, the average time was  1 day, 
13 hours and 27 minutes, compared to 1 day, 9 hours and 28  minutes in 2014. A ccording to the 
authorities, the major release bottleneck is the efficiency of licensing agencies in reviewing and 
certifying the import/export licences.  
3.11.   Simplified customs clearance for imports valued under NT$50,000 remain in place. Since 
1 January 2018 , single shipments valued below NT$2,000 (previously NT$3,000) have been 
exempt from customs duties and taxes.17 However, this regulation is not applicable to frequently 
imported or special goods prescribed by the MOF. Chinese Taipei maintains a Power of At torney 
(PoA) requirement for low -value non -dutiable incoming B2C shipments but this does not cover 
e-commerce which is taken care of by courier services; transportation and logistics operators 
assume all liabilities arising from the PoA requirement rather than the person responsible for 
breaches of the law.18 In practice, the majority of B2C imports are consigned by express carriers 
or operators. They are required to provide a PoA with regard to a particular consignment upon the 
request of Customs. In genera l, the presentation of a PoA is required if indications of a false 
declaration have been found by Customs.  
3.12.   During the review period, Chinese Taipei undertook several trade facilitation initiatives.19 It 
accepted the WTO Trade Facilitation Agreement (TFA) on  17 August 2015; its Category A 
notification indicating which provisions of the TFA it intended to implement upon entry into force of 
the Agreement had already been submitted in June 2014 (Table  A2.1). Work was undertaken to 
ensure a smooth integration of online operations with the CPT Single Window.20 Electronic 
                                                
12 Presentation by H. H. Huang at the 19 -22 September 2016 IEEE International Conference on 
Management of Innovation and Technology (ICMIT). Viewed at: 
http://ieeexpl ore.ieee.org/document/7605028/ . 
13 Ministry of Finance (2016), Government Finance - 2016, July.  
14 Presentation by H. H. Huang at the 19 -22 September 2016 IEEE International Conference on 
Management of Innovation and Technology (ICMIT). Viewed at: 
http://ieeexplore.ieee.org/document/7605028/ . 
15 The by -pass mode requires no document review or physical inspection. The "document review and 
physical inspection" mode is conducted on the principle of ran dom-select inspection, unless a thorough 
inspection is deemed necessary.  
16 Undated Presentation by the Customs Administration/Ministry of Finance titled " The Current Status of 
WTO TFA (Trade Facilitation Agreement) Implementation of The Separate Customs Te rritory of Taiwan, 
Penghu, Kinmen and Matsu ". 
17 Article 49 of the Customs Act stipulates that the ceiling of customs exemptions ( de minimis  threshold) 
is prescribed by the MOF.  
18 ECCT (2016), 2017 Position Papers , 10 November. Viewed at: http://www.ecct.com.tw/ .  
19 Ministry of Economic Affairs/Bureau of Foreign Trade (2016), The Development of International Trade 
2016-2017.  
20 The BOFT has been modifying the Import/Export Licensing System (covering 13 categories of 
documents including import/export permits, etc.), the Online Operation System for Certificates of Origin and 
Certificates of Processing, the System for Management of Exporter/Importer Registration and Classification of WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  certificates of origin (ECO) mechanisms have been established with both China and the Republic of 
Korea; a Memorandum of Understanding (MOU) with Viet Nam on Collaboration on the Project for 
the Cro ss-border Exchange of Certificates of Origin was signed in July 2015, and work on an MOU 
on ECO with Belgium was signed in November 2016. The Maritime Express Handling Units of Taipei 
Harbour International Logistics Corporation and a "Taiwan International Ports Logistics 
Corporation", providing facilitated customs clearance services, such as round -the-clock simplified 
declaration and establishing cross -strait express corridors for sea cargoes, were launched on 
30 April 2015 and 20  October  2015, respectively ; both corporations are privately owned. Since 
June 2015, the latest advance import cargo information system has been in place thus marking 
the full completion of its Advance Cargo Import Information System.21 In 2015, a  programme of 
intelligent mobile insp ection enabling customs inspections through a platform built with 4G internet 
connection or wireless mobile devices has been established for real -time inspection information to 
be received, thus raising the efficiency of inspection and clearance.  
3.13.   Accordin g to World Bank Doing Business data, in 2017 Chinese Taipei stood 55th out of 
190 economies in the ease of trading across borders, lower than a number of economies in the 
region and its 18th position (out of 189 economies) in 2013.22 At the same time, it ranked 35th out 
of 136  economies in the World Economic Forum's (WEF) Enabling Trade Index 2016 rankings 
compared to 29th out of 134 economies in 2014, whereas regarding domestic market access it 
ranked 74th and 67th respectively; in t erms of efficiency and transparency of border administration 
it ranked 33rd and 26th respectively.23 According to the authorities, these drops relate inter alia  to 
the same measures that raised the clearance times (see above). According to World Bank Doing 
Business data, in 2016 importing a shipment of goods required customs (clearance and 
inspections) and port or border handling equivalent to 34.5 hours and US$155.4, and 12.9 hours 
and US$185, respectively as well as 5 documents. In 2013, importing a shipme nt required 
6 documents, took 10 days and cost US$720.24 According to the WEF, in 2015 the most 
problematic factors for importing were mainly: tariffs and non -tariff barriers; high cost or delays 
caused by international transportation; burdensome import pro cedures; domestic technical 
requirements and standards; and, high cost or delays caused by domestic transportation.  
3.14.   Customs legislation and related operational guidelines are available online.25 In 2017, 
Customs deployed advanced infrastructure with cloud c omputing services and also re -designed its 
official website by introducing responsive web design (RWD) technology allowing for easy access 
with various mobile devices anytime and anywhere.26 Under the Customs Act, Customs may issue, 
upon request, written ad vance rulings on tariff classification, origin matters, and customs 
valuation.27 The appeal procedure for customs decisions remains unchanged. Traders who disagree 
with customs decisions may request administrative remedies (e.g. reviews by Customs, or appea ls 
to the MOF). Traders not satisfied with the outcome of the administrative remedies may refer their 
                                                                                                                                                  
Commodities, and other relevant operati ons. Ministry of Economic Affairs/Bureau of Foreign Trade (2016), The 
Development of International Trade 2016 -2017. 
21 The required clearance procedures and documents were simplified and the risk -management 
mechanism was incorporated, so as to assure busine sses a better clearance environment.  
22 World Bank (2014), Doing business 2014 , 13 May. Viewed at: 
http://documents.worldbank.org/cur ated/en/474281468167054457/pdf/829800Taiwan0TWN0Box0382127B00
PUBLIC0.pdf ; World Bank (2018), Doing Business 2018 - Reforming to Create Jobs . Viewed at: 
http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual -Reports/English/DB2018 -Full-
Report.pdf . 
23 World Economic Forum and the Global Alliance for Trade Facilitation (2016), Global Enabling Trade 
Report 2016 . Viewed a t: http://reports.weforum.org/global -enabling -trade -report -2016/ . 
24 World Bank (2014), Doing business 2014 , 13 May. Viewed at: 
http://documents.worldbank.org/curated/en/474281468167054457/pdf/829800Taiwan0TWN0Box0382127B00
PUBLIC0.pdf ; World Bank (2018), Doing Bu siness 2018 - Reforming to Create Jobs . Viewed at: 
http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual -Report s/English/DB2018 -Full-
Report.pdf . 
25 Customs Administration online information, "Laws and Regulations". Viewed at: 
http://eweb.customs.gov.tw/np.asp?ctNode=12878 . 
26 Online Customs Administration  news item titled " Digital Customs enables better border management ", 
4 January 2018. Viewed at: 
https://eweb.customs.gov.tw/News_Conte nt.aspx?n=299B807D803FBB88&sms=DF669603F6D12D36&s=EC95
DD8EC267B070 . 
27 Advance rulings on country of origin are applicable only to imports from trading partners that have 
signed ECAs/FTAs with Chinese Taipei, given that the ECAs/FTAs contain relevant provis ions. These preferential 
trading partners are: Panama, Guatemala, Nicaragua, El Salvador, Honduras, and New Zealand . Customs Act 
Articles 21 and 36 -1. WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  case to the Administrative Court. Between 2014 and 2017, there were 6,253 cases of review and 
2,143 cases of appeal mostly relating to anti -smuggling acti vities; in 2017 tariff classification and 
customs valuation cases accounted for 35.1% of reviews and 14.1% of appeals.  
3.15.   Customs has listed "Anti -drug Smuggling" as a top priority for border enforcement; it 
cooperates actively with law enforcement agencies to achieve a crackdown on drug trafficking at 
the border. Modernized equipment, such as X -ray instruments and detector dog teams, have been 
deployed to make border enforcement more effective. In addition, an intelligence -oriented risk 
management mechanism has been adopted to balance customs clearance facilitation and border 
enforcement effectiveness. Between 2014 and 2017, the number and value of smuggling -related 
seizure cases rose by 118.6% to 12,245 and by 93.3% to NT$668.91 million respectively. The 
biggest increase in seizures was of narcotic drugs, whose value rose by 173.5% to 
NT$436.48  million.  
3.1.1.2   Customs valuation  
3.16.   During the review period, the customs valuation legislation remained unchanged.28 The 
transaction value based on the c.i.f. price of the merchandise is still the main method; about 99% 
of import declarations remain subject to this method.29 When the transaction value method cannot 
be used, valuation is determined by using the deductive or computed value. If none of these 
methods can be used, the customs value is decided on the basis and in the sequential order of: 
the value of identical goods; the value of similar goods; deducted value; computed value; and 
other reasonable data available  to Customs (the order of application of deducted value and 
computed value are reversible). No reference prices are used for customs valuation purposes.30  
3.17.   Imports of used motor vehicles continue to be valued on the basis of the deductive 
c.i.f. price of "m odel year of imported cars" or the "trade -in price" in the exporting economies plus 
freight and insurance, or reasonable means as provided under Article 7 of the WTO Customs 
Valuation Agreement.31 Imports of used cars accounted for 6.9% (8.4% in 2013) of to tal imports 
of motor vehicles in 2017. In the case of incoming goods on which only a rental or royalty is 
incurred, without a transfer of ownership, the customs value is determined on the basis of the 
rental or royalty amount plus the transportation fee an d insurance fee.32  
3.18.   Chinese Taipei Customs consistently monitors possible undervalued import invoices on high 
tariff rate goods such as fish, vegetables, fruits, and vehicles. If any such violation is committed, 
evaded duties should be paid and a penalty ap plied. No data on undervalued import invoices were 
available with the authorities.  
3.1.2   Rules of origin  
3.19.   Chinese Taipei continues to use non -preferential and preferential rules of origin.33 The 
non-preferential rules of origin are based on the wholly produced cr iterion and the substantial 
                                                
28 Customs Act (Articles 29 to 42) and its Enforcement Rules (Articles 11 to 27).  
29 Article 29 of the Cust oms Act, and Articles 11 and 12 of the Enforcement Rules of the Customs Act.  
30 WTO document WT/ACC/TPKM/18, 5 October 2001.  
31 Where the f.o.b. value of other identical or similar new vehicles of the same model year and make 
can be found in the Customs data base, the Customs value of the imported us ed vehicles would be the 
f.o.b.  value of the identical or similar goods depreciated with years of usage plus freight and insurance fees. 
Where the f.o.b. value of other identical or similar goods is not available, the dealer invoice price of the same 
model year and make of vehicles listed in the Kelley Blue Book (KBB) and depreciated with years of usage and 
the trade -in price listed in the NADA Used Cars Magazine of the United States may be used. The lower of the 
two amounts is applied. Other valuation tools are: the reference market price of the exporting economy plus 
freight and insurance; and the reference market value information provided by car agents, dealers, or trade 
unions, or through valuation consultation.  Notes on Customs Clearance of Imported Used Motor Vehicles, last 
revised in December 2011. Viewed at: 
https://eweb.customs.gov.tw/News _Content.aspx?n=FBBDA933F2812833&sms=049D1F48EE0D790C&s=FC2F
FEF6675BA427 . 
32 Online Customs Administration information, including the Regulations Governing the Determination of 
Country of Origin of Imported Goods, Rules of Origin for Least -Developed Countri es, and Rules of Origin for 
Free Trade Agreements. Viewed at: 
https://eweb.customs.gov.tw/News_Content.aspx?n=FBBDA933F2812833&sms=049D 1F48EE0D790C&s=C4AE
7B38BE4F5C85 . 
33 Online Customs Administration information. Viewed at: 
https://eweb.customs.gov.tw/cp.aspx?n=0546649C8F2D44B4 . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  transformation criterion. If two or more countries or areas are involved in the production of goods, 
the country or area in which the goods underwent last substantial transformation is deemed to be 
the country or area of origin of the goods. Under non -preferential rules of origin, substantial 
transformation is considered to have taken place when the first six digits of the customs import 
tariff line of the processed or manufactured goods are different from those of their parts or  
materials, or the ratio of value added is at least 35% of the transaction value of the 
non-originating parts or materials.34 Article 28 of the Customs Act was amended in 2016 to 
enforce an advance ruling system on non -preferential rules of origin in line w ith Article 3 of the 
TFA (Section  3.1.1.1).35 
3.20.    Preferential rules of origin in Chinese Taipei's RTA/FTAs differ slightly depending on the 
agreement; the value added rule is also applied in the form of the regional value content (RVC) 
method, and de minimis  clauses allow for a good containing a non -originating material that does 
not undergo the tariff classification change to still originate if the value of all non -originating 
materials does not exceed 10% of the adjusted value of the good.36 In the case of le ast-developed 
countries (LDCs), the production process conducted in a particular LDC must have added value to 
the goods by a ratio of no less than 50%.37  
3.1.3   Tariffs  
3.1.3.1   General features  
3.21.   Since 1 January 2017, Chinese Taipei's Customs Import Tariff Schedule has bee n based on 
the 2017 version of the Harmonized Commodity Description and Coding System (HS). The current 
Schedule, which is available online and now consists of 9,134 eight -digit tariff lines, contains 
404 lines more than its HS 2007 version which was used in 2013.38 It has three sets of rates: the 
first (MFN rates) applies to goods from WTO Members or countries and areas that accord reciprocal 
treatment to Chinese Taipei; the second provides preferential rates (Sections 2.3.2 and 3.1.3.6); 
and, the third set  applies to imports not covered by the first two sets.39 The third set contains 
rates that are either higher than or equal to those contained in the other two sets and, in 2017, it 
covered 3.53% of total trade (2.82% in 2013); the same year the applied MFN rates covered 
90.54% of total imports. The importance of customs tariffs as a source of revenue has remained 
stable; during the review period their share of total tax revenue stood at slightly more than 5% 
(Section 3.3.1.2.1). According to the authorities,  the WTO bound rates are not contained in the 
customs tariff which has been regularly notified to the WTO since 2014.40  
3.22.   Changes to the tariff schedule are enacted and promulgated through a legislative procedure. 
Changes to the tariff schedule are usually p roposed by the relevant sectoral agencies (e.g. the 
industrial and agricultural authorities) to the Customs Tariff Commission under the MOF.41 Upon 
review and discussion with relevant stakeholders, the MOF submits its proposal for tariff changes 
for approva l.  
                                                
34 The origin rules for "completion of ma jor process" are provided in the table of "list rules". Article 7, 
the Regulations Governing the Determination of Country of Origin of an Import Good, last amended on 
24 December 2010.  
35 Presentation by the Customs Administration/Ministry of Finance titled  "The Current Status of WTO TFA 
(Trade Facilitation Agreement) Implementation of The Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu ". 
36 Online Customs Administration information. Viewed at: 
https://eweb.customs.gov.tw/cp.aspx?n=0546649C8F2D44B4 . 
37 No cumulation rules are provided for incoming merchandises from LDCs. To qualify for tariff 
preferences, LDC -origin goods must be  transported directly to Chinese Taipei. WTO document 
WT/TPR/S/302/Rev.1, 18 December 2015.  
38 Customs Administration - Tariff Database Search System. Viewed at: 
http://portal.sw.nat.gov.tw/PPL/RedirectorNonLoginAction?appId=APGQ&privilegeId=GC451 . 
39 At present, Chinese Taipei receives reciprocal treatment in: Algeria, American Samoa, Anguilla, 
Azerbaijan, Bahamas, Eritrea, Ethiopia, Holy See, Iran, Iraq, Le banon, Libya, Marshall Islands, Monaco, 
Montserrat, Nauru, Somalia, Sudan, Syria, Equatorial Guinea, Kiribati, Palau, Sao  Tome and Principe, Tuvalu 
and Comoros.  
40 WTO document G/MA/IDB/2/Rev.46, 12 September 2017.  
41 The Customs Tariff Commission also "stu dies and reviews" matters related to the levy of special 
customs duties such as anti -dumping and countervailing duties.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.1.3.2   Applied MFN tariffs  
3.23.    During the review period, Chinese Taipei's simple average applied MFN tariff rate was 
slightly reduced from 7.8% in 2013 to 7.2% in 2018 (Table 3.1) mainly due to a reduction of 
average ad valorem  equivalent (AVE) rates (see below)  and to a lesser extent the implementation 
of the expansion of the Information Technology Agreement (ITA) and the tariff nomenclature 
change (Section 3.1.3.1). According to the authorities, between 2012 and 2017 the average 
effective rate of tariffs (i.e. annual customs revenue divided by annual import value) rose from 
1.19% to 1.48%.42 Between 2014 and 2017, Chinese Taipei amended its Customs Tariff eight 
times (i.e. 22/1/2014,  1/7/2015, 9/12/2015, 18/5/2016, 30/12/2016, twice on 22/11/2017, and 
27/12/2017) to inter alia  introduce HS2017 changes and meet its RTAs commitments. Products 
that benefited from tariff reductions include ITA -related items (mainly HS84, HS85, and HS90) an d 
silk (HS50.02, HS50.03 and HS50.04). Furthermore, u nder the amendment of the Customs Import 
Tariff on 9 December 2015 the tariff rates on APEC Environmental Goods and rehabilitation 
vehicles for the disabled were eliminated so that physically challenged people can receive more 
convenient transportation services and exports of green products can be promoted accordingly.43 
Table 3.1 Structure of the tariff schedule, 2013 and 2018  
 MFN applied  Final bounda 2013  2018  
Simple average rate (%)  7.8 7.2 7.5 
 HS 01 -24 23.7 19.2 20.0 
 HS 25 -97 4.2 4.2 4.4 
 WTO agricultural products  22.1 17.8 18.7 
 WTO non -agricultural products  5.0 5.1 5.3 
Duty-free tariff lines (% of all tariff lines)  30.2 29.3 29.4 
Simple average of dutiable lines only  11.1 10.2 10.6 
Tariff quotas (% of all tariff lines)  0.8 0.9 0.9 
Non-ad valorem  tariffs (% of all tariff lines)  1.8 1.8 1.9 
Domestic tariff "peaks" (% of all tariff lines)b 4.9 6.1 5.8 
International tariff "peaks" (% of all tariff lines)c 9.3 10.9 11.3 
Nuisance applied rates (% of all tariff lines)d 4.4 4.8 3.4 
Coefficient of variation  3.8 2.6 2.5 
Total number of tariff lines  8,730  9,134  9,134  
Ad valorem  rates (> than 0%)  5,945  6,296  6,280  
Duty free rates  2,625  2,674  2,685  
Specific rates  89 92 92 
Alternate rates  71 72 77 
a Bound rates are based on the 2018 tariff schedule. Final bound rates relate to the ITA expansion to 
be fully implemented by 2021.  
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding 15%.  
d Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note:  Calculations for averages are based on Chinese Taipei's tarif f line level (8 -digit); excluding in -quota 
rates and including AVEs for specific and alternate rates, provided by the authorities. The 2013 tariff 
is based on HS07 and the 2018 tariff is based on HS17 nomenclature.  
Source:  WTO Secretariat calculations, bas ed on data provided by the authorities.  
3.24.   Tariff protection varies substantially across and within sectors averaging 17.8% for 
agricultural products and 5.1% for industrial goods in 2018 (WTO definitions) (Table 3.1). Average 
tariffs are highest for vegetabl e products (HS  section 02), at 21.6% (Chart  3.1). Manufacturing 
tariffs are highest for transport equipment (HS  section 17) at 9.2%, and for textiles and textile 
articles (HS  section 11) at 8.7%. By according varied and substantial levels of protection to 
selected sectors, especially agriculture, tariffs distort competition by favouring some activities. 
Reducing high tariffs would improve Chinese Taipei's resource allocation and welfare.  
                                                
42 Ministry of Finance (2016), Government Finance - 2016, July.  
43 Ministry of Finance (2016), Government Finance - 2016, July.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Chart 3.1 Average appli ed MFN and bound tariff rates, by HS section, 2013 and 2018  
 
Note:  Calculations for averages exclude in -quota tariff rates and include AVEs for non -ad valorem  rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.25.   The tariff structure has changed little since the last Trade Policy Review of Chinese Taipei. 
Over 98% of tariffs are levied at ad valorem  duties, and therefore transparent. There are some 
150 different rate bands (92  ad valorem duties, 42  alternate duties , and 16  specific duties), same 
as in 2013 but differently allocated, and of which 49  involve decimal rates; alternate duties apply 
to 0.8% of total tariff lines (72). Tariff rates continue to range from zero to 1,059.6% (betel nuts, 
see below and Table  A3.1). In 2018, 81.2% of rates are 10% or below, and rates of over 30% 
apply to 1.6% of tariff items, compared to 82.7% and 1.7% in 2013 respectively (Chart  3.2). The 
Chinese Taipei tariff could be rationalized, for example, by reducing the large number of r ate 
bands and removing decimal rates.  
Chart 3.2 Distribution of MFN applied tariff rates, 2013 and 2018  
 
Note:  Figures in parentheses denote the share of total lines. Excluding in -quota rates and including AVEs 
for non -ad valorem  rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
0%5%10%15%20%25%30%35%
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Calculations for averages exclude in -quota tariff rates and include AVEs for non -ad valorem rates.   
WTO Secretariat calculations, based on data provided by the authorities.Chart 3.1         Average applied MFN and bound tariff rates, by HS section, 2013 and 2018
Note:
Source: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 instrument19   Arms & ammunition
20   Miscellaneous manufacturing
21   Works of art, etc.Average applied rate 2013 and 2018 
(7.8% and 7.2%, respectively) Average final bound rate
(7.5%)MFN 2013 
MFN 2018
Final bound
(30.2) (34.3) 
(18.3)
(7.9)
(4.2) 
(2.0)   (1.4) (1.3%)(0.4%) (29.3)(34.5) 
( 17.4)
(7.9) 
(4.7)
(3.0) 
(1.6) (1.3%) 
(0.3%) 
05001,0001,5002,0002,5003,0003,500
Duty free >0-5 >5-10 >10-15 >15-20 >20-25 >25-30 >30-100 >100
Note:      Figures in parentheses denote the share of total lines.  Exluding in -quota rates and including AVEs for non -ad valore m rates.
Source:  WTO Secretariat calculations, based on data provided by the authorities.Number of tariff linesChart 3.2   Distribution of MFN applied tariff rates, 2013 and 2018
Tariff rates (%)MFN 2013
MFN 2018WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.26.   Non-ad valorem  tariffs continue to consist of alternate duties on several agricultural items 
(and mixed metal scrap), mainly agricultural and fi sh products (e.g. meat of sheep, certain fish, 
nuts), as well as specific duties on meat of bovine animals, milk, rice, and certain food 
preparations (Table A3.2). They generally apply the greater component, i.e. either an ad valorem  
or a specific duty, wh ereby the ad valorem  alternate rate sets a floor on the import duty rate. 
According to calculations of the authorities, in 2018 the ad valorem  equivalents (AVEs) of the 
specific rates could range from 1.8% (dried grapes) to 1,059.6% (betel nuts) and those of the 
alternate duties from 5% (mixed metal scrap) to 116.8% (dried cashew nuts) (Table A3.2); these 
alternate duties form part of Chinese Taipei's WTO tariff binding commitments though some of 
them have been affected by tariff nomenclature changes. The a verage AVE of non -ad valorem  
tariff rates is 53.8% (102.9% in 2013), compared to 6.4% for ad valorem  duties.  
3.1.3.3   MFN tariff dispersion and escalation  
3.27.   Since the previous Review, indicators of tariff dispersion declined (coefficient of variation, 
standard devia tion) whereas tariff escalation showed little change (Table  3.1 and Chart 3.3).  
Chart 3.3 Tariff escalation by two -digit ISIC industry, 2013 and 2018  
 
n.a. Not available.  
Note:  Calculations for averages excl ude in -quota rates and include AVEs for non -ad valorem  rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.3.4   MFN tariff bindings  
3.28.   All tariff rates/lines in Chinese Taipei's tariff schedule are bound and accession -related 
binding commitments were all implemented by 2011 (Table 3.1); those relating to the ITA 
Chart 3.3    Tariff escalation by 2 -digit ISIC industry, 2013 and 2018
n.a.n.a.
0%5%10%15%20%25%30%35%40%45%
Food,
beverages
and tobaccoTextiles and
leatherWood and
furniturePaper,
printing and
publishingChemicals Non-metallic
mineral
productsBasic metal Fabricated
metal
products and
machineryOthern.a.n.a.
0%5%10%15%20%25%30%35%40%45%
Food,
beverages
and tobaccoTextiles and
leatherWood and
furniturePaper,
printing and
publishingChemicals Non-metallic
mineral
productsBasic metal Fabricated
metal
products and
machineryOtherAverage applied rate in manufacturing
(7.2%)
Not applicable.
Calculations for averages exclude in -quota rates and include AVEs for no -ad valorem rates.
WTO Secretariat calculations, based on data provided by the authorities.n.a.
Note:
Source :First stage of processing Fully processed Semi-processedAverage applied rate in manufacturing
(6.6%)2013
2018WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  expansion are to be fully implemented by 2021 (Section 3.1.3.2). The simple a verage bound rate 
is 18.7% for agricultural products (WTO definition), and 5.3% for non -agricultural products. In its 
2018 customs tariff schedule, bound and MFN applied tariff rates coincided in about 90% of all 
tariff lines whereas in most of the rest th e difference was very small, thus suggesting high 
predictability in the tariff. Since 2013, the overall gap between the simple average MFN applied 
and bound rates has remained at 0.3  percentage points. The gap is 0.9  percentage points for rates 
affecting a gricultural items and 0.2  percentage points for non -agricultural products.  
3.29.   During the review period, Chinese Taipei's Schedule CLIII was modified and rectified to 
reflect changes relating to the introduction of Harmonized System 2007 and ITA expansion 
undertakings that became effective as of 17 February 2015 and 24 February 2017 respectively.44 
Chinese Taipei remains included in collective waivers that suspended the application of the 
provisions of Article II of GATT 1994 in order to allow it to reflect the  changes resulting from the 
introduction of HS2012 and HS2017 nomenclatures in its Schedule of Tariff Concessions.45 The 
HS2012 transposition of Schedule CLIII was submitted by the authorities to the WTO Secretariat 
on 15 November 2017 for verification; thi s submission was sen t back to the authorities on 
18 January 2018 to accept or make further comments and was re turned to the Secretariat on 
23 April 2018.  
3.1.3.5   Tariff -rate quotas  
3.30.   Chinese Taipei continued to apply tariff -rate quotas (TRQs), under its 
multilatera l agricultural market -access commitments, on 84 agricultural tariff items at the 
HS eight-digit level or 0.9% of tariff lines in 2018, virtually the same as in 2013 (Table  A3.3 and 
Section 4.1.1.4.1). In -quota ad valorem  tariff rates ranging from zero (e.g . rice) to 25%, remain 
much lower than the very high out -of-quota ad valorem  rates (e.g.  bananas, ground nut oil, 
coconuts, pineapples, shaddocks) that peak at 500% (deer velvet), thus making out -of-quota 
imports almost prohibitive. Most out -of-quota rates  (i.e. 70 out of 84) are specific whereas 
virtually all (i.e. all but three) in -quota rates are ad valorem . According to the latest data provided 
by the authorities, the average fill -in ratio of tariff quotas peaked at 56.5% in 2016 to slightly drop 
to 55. 8% in 2017 (55.9% in 2012). Fill ratios were steadily low or zero for several product 
groupings (e.g. bananas, dried day lily, betel nuts, mangoes and shaddocks) whereas for others 
they stood at or close to 100% (e.g. deer velvet, red bean, dried longans a nd rice) (Table  A3.3). 
The authorities indicated that the zero fill ratio for bananas and mangoes is due to the fact that 
they do not meet Chinese Taipei's quarantine requirements as the major production areas of these 
fruits are infected with pests and di seases; as for other products, the reduced fill ratios are the 
outcome of prevailing market conditions of supply and demand. According to the authorities, given 
the multi -functionality of the agriculture sector, TRQs are appropriate measures to ensure 
sustainable development, and they are considered in line with Chinese Taipei's WTO accession 
commitments.46  
3.31.   Tariff-rate quotas discussed in this section are applied to goods originating from WTO 
Members but TRQs under Chinese Taipei's RTAs with New Zealand, Ni caragua and Panama remain 
also in place (Section 2.3.2). Mechanisms used for quota allocation (depending on the product) on 
a first -come first -served basis or an allocation in advance method (e.g. order of application, ballot, 
performance of importation, a uctions/open bidding), the most used method, remain unchanged.47 
TRQs for all agricultural products except rice are based on both global quotas and country -specific 
quotas. The TRQ system for brown rice consists of two portions: 35% or 50,652  MT for private  
sector imports and 65% or 94,068 MT for public sector imports (i.e. the Agriculture and Food 
Agency (AFA) of the Council of Agriculture (COA)) (Section 3.3. 5). The amount allocated to public 
sector imports is divided by both country of origin and tender t ype (i.e.  the simultaneous buy -sell 
(SBS) scheme and normal tenders). Public sector imports are conducted by open tender, with the 
contract being awarded to the bidder offering the lowest quote below a ceiling price set by the 
authorities.48 A grade require ment was also imposed for the 2016 SBS quota; in response to 
                                                
44 WTO doc uments WT/Let/1034, 25 March 2015, and WT/Let/1242, 3 March 2017.  
45 WTO documents WT/L/998, 12 December 2016, WT/L/999, 12 December 2016; WT/L/1028, 
1 December 2017; and WT/L/1029, 1 December 2017.  
46 WTO document WT/TPR/S/302/Rev.1, 18 December 2015.  
47 Regulations of Tariff Quota, 27 September 2011.  
48 The ceiling price is set for each rice procurement tender on the basis of various factors, including 
export costs, freight fees, processing fees at import ports, as well as domestic retail prices. The AFA also  
surveys the market condition prior to the setting of the ceiling price. USTR (2017), 2017 National Trade WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  customer requests, the AFA had implemented the specification of Grade A on SBS procurement, 
which was removed in 2017. TRQs are administered by the MOF. The publicly owned "Bank of 
Taiwan" (BOT) is delegated by the Ministry to allocate the TRQs.49 TRQs are transferable, partially 
or wholly, with the amount of the allocated quotas within the validity of the TRQ certificates.  
3.1.3.6   Tariff preferences  
3.32.   Chinese Taipei's efforts to expand its bilateral and re gional free trade agreements during the 
review period meant that its simple average preferential tariff rate on imports from RTAs/FTAs 
dropped from 3.7% in 2013 to 2.2% in 2017 and remained considerably below the 7.2% MFN 
average applied tariff rate (Table  3.2, Section 2.3.2); the average preferential rate for imports 
from LDCs remained virtually unchanged. Under its RTAs, Chinese Taipei provides preferential 
access to imports originating in: Panama (as of 2004); Guatemala (as of July 2006); Nicaragua, 
El Salvador and Honduras (as of 2008); China and New Zealand (as from 2013); and Singapore 
(as from 2014) (Table 3.2). These agreements cover an average of 62.7% of total tariff lines on 
top of the 29.3% of lines that are already duty free at MFN level (Sectio n 3.1.3.2). Since its last 
Trade Policy Review, Chinese Taipei has kept virtually unchanged the number of items eligible for 
unilateral (non -reciprocal) duty -free preferences to LDCs; their average preferential rate remains 
similar to the simple average ap plied MFN and their coverage particularly low as compared to 
those of RTAs (Section 2.3.2.1, Table  3.2). While 90.7% (98% in 2013) of the total value of trade 
with LDCs was under this duty -free treatment, trade with LDCs accounted for only 0.8% (1.5% in 
2013) of Chinese Taipei's total trade in 2017. The Customs Administration maintains a webpage 
containing all preferential import tariffs. According to the authorities, forgone tax revenue due to 
the implementation of preferential tariff rates was estimated t o have dropped from 
NT$363.3  million in 2015 to NT$159.2 million in 2017 of which 61.8% was due to preferential 
imports from New Zealand.50  
Table 3.2 Summary analysis of the preferential tariff, 2017  
  Total  WTO agriculture  WTO non -agriculture  
Average 
(%) Duty -free 
ratesa (%) Coverageb 
(%) Average 
(%) Duty -free 
ratesa (%) Average 
(%) Duty -free 
ratesa (%) 
MFN 7.2 29.2  17.5 22.3 5.2 30.6 
RTAs         
New Zealand  0.5 98.5 70.6 3.0 93.0 0.1 99.6 
Panama  1.2 97.7 69.8 6.7 88.4 0.1 99.6 
Nicaragua  1.5 94.2 69.4 7.8 72.0 0.3 98.5 
Guatemala  1.6 91.9 69.2 8.5 62.5 0.3 97.7 
El Salvador  1.8 92.2 69.2 9.2 63.4 0.3 97.8 
Honduras  1.8 92.3 69.3 9.2 63.9 0.3 97.9 
Singapore  2.1 83.0 71.5 8.7 64.4 0.7 86.6 
China  7.0 32.7 12.3 17.5 22.3 5.0 34.7 
Average of above  2.2 85.3 62.7 8.8 66.2 0.9 89.1 
LDC 7.1 30.8 11.1 17.5 23.2 5.0 32.3 
a Duty-free lines as a percentage of total tariff lines.  
b Per cent of total number of lines. Only rates that are lower than the corresponding MFN rate are 
taken into account.  
Note:  Calculations are based on Chinese Taipei's tariff line level (8 -digit); excluding in -quota rates and 
including AVEs for non -ad valorem  rates, provided by the authorities.  
Source:  WTO Secretariat cal culations, based on data provided by the authorities.  
3.1.3.7   Duty concessions/exemptions  
3.33.   To accelerate industrial development and accommodate domestic supply and demand, the 
authorities continued to reduce or exempt tariffs on industrial raw materials, and tempor arily 
reduce tariffs on staple goods and daily necessities.51 They consider that these measures greatly 
                                                                                                                                                  
Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/reports/2017/NTE/2017%20NTE.pdf . 
49 BOT online information. Viewed at: 
http://www.bot.com.tw/English/EInternational _Trade/Tariff_Rate_Quota/Pages/default.aspx  . 
50 These estimates were calculated according to the following formula: Revenue loss of 2016 = 2016 
import value × (2016 rates - 2015 rates).  
51 Ministry of Finance (2016), Government Finance - 2016, July.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  contribute to domestic price stability, economic development, and industrial competitiveness. The 
MOF may adjust customs duties temporarily in order to d eal with an "extraordinary" economic 
situation, domestic or overseas, to accommodate the supply of goods, or to provide a "reasonable 
operational environment" without seeking approval from the legislature.52 Adjustments are allowed 
within 50% of the statuto ry duty rate or quantity, and may be applied for up to one year. Between 
2012 and 2017, the authorities undertook 6 temporary adjustments of tariff rates affecti ng 
20 items including milk and cream, pork fat free of lean meat, pork lard, other pork fat and  animal 
fats, pork lard and poultry fats, and 4 categories of goose meat; forgone tax revenue due to the 
implementation of these temporary adjustments was estimated at NT$193.4  million for this period.  
3.34.   As of March 2018, Chinese Taipei maintained admission -temporaire  agreements, allowing 
for tariff and tax exemptions for commercial samples, professional equipment, and goods for 
exhibitions to be imported for re -export without processing, with 41  economies, including 
Australia, Canada, the European Union, Ja pan, New Zealand, th e Philippines, Singapore, 
South  Africa, the Republic of Korea, Switzerland and the United States.53 The 
admission -temporaire  agreements are based on bilateral reciprocity and aimed at enhancing 
clearance facilitation of goods to be impor ted for re -export.  
3.1.4   Other charges affecting imports  
3.35.   Chinese Taipei continues to levy certain charges/fees/dues on imports that, according to the 
authorities at the time of the previous TPR, are all commensurate with the service cost. Customs 
charges for its services a special supervision fee, cargo examination fee, customs sealing fee, 
escorting fee, certificate issuance fee, and bonded warehouse stocktaking charge. The customs 
clearance fee is NT$500.  
3.36.   The Trade Promotion Service Fee continues to be collected at the border at the rate of 
0.04% on the value of imports (and exports). The Fee finances the Trade Promotion Fund, 
managed by the Trade Promotion Fund Management Committee; about a third of the 21 members 
of the Committee are re presentatives of exporters/importers. The Trade Promotion Fund is used to 
cover administrative expenses related to trade promotion activities, such as organizing exhibitions. 
Following a peak of NT$5 billion (2014), in 2017, the Fund collected NT$4.5  billion (NT$4.8 billion 
in 2012) and spent the same amount (NT$4.6  billion in 2012) on trade promotion events.  
3.37.   Harbour dues remain based on the gross tonnage of ships entering the port (ship port 
dues), number of passengers departing (passenger port dues), and  the "revenue tons" of loaded 
or unloaded cargoes (cargo port dues).54 The authorities indicated that the dues for loading and 
unloading are the same. Harbour dues are specific to shipping routes, and are applied equally to 
ships irrespective of origin for the same routes; nonetheless, harbour dues for overseas routes are 
60% higher than for domestic routes (Section 4.4.4.1). At the time of the previous TPR, the 
authorities explained that this difference reflected the costs related to the type of equipment a nd 
services provided for vessels operating these routes; this revenue is used mainly for construction 
and development of the commercial ports.  
3.1.5   Import prohibitions, restrictions, and licensing  
3.38.   During the review period, the regulatory framework governing im port prohibitions, 
restrictions, and licensing has remained largely unchanged.55 According to the authorities, these 
measures are in place to, inter alia , protect public morals, human life or health as well as to fulfil 
its WTO accession commitment and obli gations under international agreements in accordance with 
GATT Articles XX and XXI.56 A negative -list approach is applied to import prohibitions/restrictions, 
i.e. no import licences are required except for those on the List of Commodities Subject to Import  
                                                
52 Article 71 of the Customs Act.  
53 Economist Intelligence Unit (2017), Country Commerce , June, London. Viewed at: www.eiu.com . 
54 Revenue tonnes (or charged tonnes) are the greater of measurement tonnes or weight tonnes. Other 
port-service charges include: port charges (dockage, buoy, tugboat, mooring and unmooring, water supply, 
cleaning maintenance) and terminal operation charges (cargo handling, storage, wharf passage, equipment 
utilization).  
55 The relevant legislation includes the "Foreign Trade Act"; the Regulations Governing Import of 
Commodities; the Regulations on Import and Export of Endangered Species of Wild Fauna, Flora a nd Related 
Products; and the Regulations Governing Export and Import of Strategic High -Tech Commodities.  
56 WTO document WT/TPR/S/302/Rev.1, 18 December 2015.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Restriction.57 The BOFT, under the MOEA, remains in charge of import management measures, 
such as the issue of import licences and issuance of the approval of exemption from import 
prohibitions. Incoming and outgoing trade with the Democratic People's Repu blic of Korea has 
been banned since 25 September 2017.   
3.1.5.1   Import prohibitions  
3.39.   Since its previous TPR, Chinese  Taipei has expanded the scope of its import bans which 
increased from 70  ten-digit HS items (2013) to 91 (March 2018), involving 39 agricultural 
(HS 1-24) and 52  industrial (HS 25 -97) items, mainly whale sharks, puffer fish, narcotics, toxic 
chemicals, hazardous wastes, HCFC (hydrochlorofluorocarbon) compounds, fire extinguishers 
containing HCFC and waste lead -acid accumulators that are subject to tra de restrictions under 
international agreements.58 Additional prohibitions apply to direct cross -strait imports of some 
2,333 tariff lines (March 2018) , an overall increase of 147  lines since 2014 (2,186); they include 
the 70 prohibited products on an MFN ba sis.59 As of March 2018, 9,658 items (80.54%) from 
China of a total of 11,991  ten-digit HS  items could freely enter Chinese Taipei and 9,534 items 
(79.51%) were exempt from import licences (Section 3.1.5.2).  
3.1.5.2   Import licensing  
3.40.   During the review period, Chine se Taipei's import licensing requirements and procedures 
remained largely unchanged. As of April 2018, import permits were required for 131 (126 in 2014) 
items most of which were related to requirements of international agreements (e.g. CITES) and 
TRQs (Se ction 3.1.3.5), essential security as well as protection of culture, human health and the 
environment (Table 3.3); 98.9% of all incoming commodities (11,507 items) were exempt from 
import permit requirements.60 The authorities indicated that the coverage of  non-automatic import 
licensing increased mainly due to the fact that the Council of Agriculture added alien invasive 
species as non -importable goods to protect the environment. Import licences (e.g. import permits 
or import clearance certificates) for any  import of an f.o.b. value of US$20,000 or above are issued 
by the BOFT. Prior to applying for a licence, importers must obtain approval from the relevant 
sector -specific authority (Table  3.3). An import licence is valid for six months from its issuance, 
and may be extended for a maximum of 18  months. No licensing fees, other administrative 
charges or deposit are required. Import licences are not transferable.  
Table 3.3 Prior approval requirement for import licenses, 2018  
Goods  Approval authority  Rationale  
Methyl bromide; HCFCs  Environmental Protection 
Administration  To comply with obligations set out 
in the Montreal Protocol  
Breeding livestock/poultry; 
Genetic resources, genetically 
modified breeding stock/poultry 
and genetic resources  Council of Agriculture  To preserve public health and 
safety of humans, animals, and to 
prevent entry of infectious 
diseases  
Diamonds  Bureau of Foreign Trade  To cooperate with th e Kimberley 
Process Certification Scheme  
Yellow -fin tuna; Bluefin tuna; 
Southern Bluefin tuna; 
Swordfish; Big -eye tuna  Fisheries Agency  To protect marine ecology  
                                                
57 Article 7, "Foreign Trade Act", amended 6 November 2013. For the list of import restrictions se e 
Bureau of Foreign Trade online information. Viewed at: http://www.trade.gov.tw/Pages/List.aspx?nodeID=987 . 
58 Ministry of Economic Affairs/Bureau of Foreign Trade (2016), The Development o f International Trade 
2016-2017.  
59 These prohibitions cover a variety of items both industrial (1,344 lines) and agricultural (998 lines); 
they include live animals, animal products including meat and poultry, fish and fishery products, milk and dairy 
products; plants and plant products including fruits and vegetables; rice; processed foods and food -related 
products, pharmaceuticals, iron and steel, electrical and electronic items, and textile -related products. Cross -
strait trade is subject to Chinese Taip ei's specific laws and regulations dealing with such trade. WTO documents 
WT/TPR/S/232/Rev.1, 28 July 2010, and WT/TPR/S/302/Rev.1, 18 December 2015; Economist Intelligence 
Unit (2017), Country Commerce , June, London. Viewed at: www.eiu.com . 
60 Ministry of Economic Affairs/Bureau of Foreign Trade (2016), The Development of International Trade 
2014-2015; Ministry of Economic Affairs/Bureau of Foreign Trade (2016), The Development of International 
Trade 2016-2017. WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Goods  Approval authority  Rationale  
Tobacco, alcohol products; 
undenatured ethyl alcohol  Ministry of Finance  and other 
relevant  agencies  To ensure the sound management 
of alcohol imports pursuant to the 
relevant laws/regulations  
Oil and petroleum products  Bureau of Energy  To promote the sound 
development of the oil industry; to 
develop the domestic economy 
and enhance people's livelihoods; 
to protect the environment  
Fishing boats  Fisheries Agency  To maintain the sustainability of 
fishery resources  
Vessels; civil aircraft  Ministry of Transportation and 
Communications  To maintain the safety of transport 
vessels  
Firearms; ammuni tion; 
simulation guns; police weapons; 
controlled swords  Police entities  To ensure the safety and peace of 
society  
Industrial use explosives  Bureau of Mines  To ensure the safety and peace of 
society  
Beef from Canada and the 
United  States  Bureau of Foreign Trade (with prior 
approval from the food and drug 
administration agency)  To protect human health  
Source:  WTO document G/LIC/N/3/TPKM/8 , 25 September 2017, and information supplied by the 
authorities.  
3.41.   The import licensing/certification system rega rding "optical disk manufacturing equipment" 
remains automatic; it involves an import clearance certificate issued by the BOFT for safeguarding 
intellectual property rights.61 Although imports of radio -communication apparatus do not require 
licensing, impor ters of certain types of these apparatus must obtain approval prior to 
importation.62 
3.42.   Products originating in China generally continue to require permission from the MOEA prior 
to their sale to Chinese Taipei. The list of permitted goods originating in Chin a is reviewed and 
revised every six months. Among the 9,658  (9,150 in 2014) China -origin products that are 
permitted entry into Chinese Taipei, 124 (126 in 2014) products at HS 10 -digit level required 
import licences in March 2018 (Section 3.1.5.1). Accord ing to the authorities at the time of the 
previous review, the situation would improve upon the entry into force of the ECFA (Table  A2.2).  
3.43.   During the review period, Chinese Taipei continued to submit regular Replies to the 
Questionnaire on Import Licensin g Procedures to the WTO Committee on Import Licensing.63 
Chinese Taipei's notification under the 2012 Decision on Notification Procedures for Quantitative 
Restrictions is pending .64  
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.1.6.1   Anti-dumping and countervailing  
3.44.   During the review period, the legislative framework was revised in certain areas. The legal 
basis for the implementation of anti -dumping and countervailing measures consists of Articles  67, 
68 and 69 of the Customs Act and the Regulations Go verning the Implementation of the 
Imposition of Countervailing and Anti -Dumping Duties, both of which are considered by the 
authorities to be in accordance with the WTO Anti -Dumping Agreement provisions.65 Some articles 
of the Regulations were amended in 20 16 to: update the processing and deliberating procedures 
for withdrawal of cases (Articles 15 and 15 -1); revise the regulations for acceptance and 
deliberation procedures, implementation and inspection procedures, and administration of violation 
procedures  of price undertaking (Articles 23, 24, 25 and 25 -1); update application provisions for 
investigating new shippers, as well as procedures for deliberating and providing guarantees during 
                                                
61 WTO docum ent G/LIC/N/3/TPKM/8, 25 September 2017.  
62 Online information available at: www.ncc.gov.tw . 
63 WTO documents G/LIC/N/3/TPKM/6, 8 September 2015, and G/LIC/N/3/TPKM/8, 
25 September  2017.  
64 WTO document G/L/59/Rev.1, 3 J uly 2012.  
65 More information on the anti -dumping and countervailing measures procedures are available in WTO 
document WT/TPR/S/302/Rev.1, 18 December 2015.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  the period of investigation (Article 35 -1); and, update regulations f or price undertaking measures 
that will continue to apply during the sunset review period (Article 44).  
3.45.   The MOF and the MOEA continue to share responsibility over anti -dumping and 
countervailing investigations. The former is focused on dumping/countervaili ng determination and 
measure adoption, whereas the International Trade Commission (ITC) under the latter determines 
injury to domestic industries. Their websites provide information on investigations, reviews, and 
measures adopted.  
3.46.   During the period under  review, recourse to anti -dumping action remained relatively 
stable.66 Between 2013 and 2016, Chinese Taipei initiated 11  anti-dumping investigations (12 in 
2009-12) involving carbon steel plate (Brazil, China, India, Indonesia, Republic of Korea, Ukraine),  
certain flat -rolled steel products, plated or coated w ith zinc or zinc -alloys (China, 
Republ ic of Korea), Portland cement type I, II and its clinker (China), benzoyl peroxide (China), 
computer to plate (China), SUS 300 series flat -rolled products of stainless steel, cold -rolled 
(cold-reduced) (China), and towelling products (China).67 As of end -2017, 19 anti -dumping 
measures were in force on 7 products mainly carbon steel plate (6 cases), certain flat -rolled steel 
products (2 cases) and flat -rolled pro ducts of stainless steel (2 cases); 5  measures were in place 
in June 2013.68 At the same time, action affected mostly products originating in Asia 
(12, China  (7), Republic of Korea (3), India (1) and Indonesia (1)), and to a lesser extent Brazil 
and Ukraine . Most final measures consisted of definitive duties; in five cases price undertakings 
were adopted. Seven measures were reviewed and extended to a total period of six years.  
3.47.   Chinese Taipei has not taken any countervailing measures so  far. On 16 April 201 8, 
Chinese  Taipei published the notice of initiation of countervailing duty investigation against certain 
incoming flat -rolled steel products, plated or coated with zinc or zinc -alloys, carbon steel plate, 
SUS300 series flat -rolled products of stainless st eel, cold -rolled (cold -reduced), as well as initiation 
of both anti -dumping and countervailing duty investigations on the imports of certain carbon 
cold-rolled steel products and certain flat -rolled products of stainless steel, hot -rolled all 
originating i n China.69 Public hearings to collect feedback from concerned parties and gauge public 
opinion before formally launching the investigation were to be held. The MOF is expected to 
announce its preliminary countervailing duty (and anti -dumping duties) on Chin ese steel products 
in August 2018 and its final decision in October of the same year. Since its last Trade Policy 
Review, Chinese Taipei has regularly submitted semi -annual reports on anti -dumping and 
countervailing actions to the relevant WTO  Committees ( Section  2.3.1 and Table  A2.1).  
3.1.6.2   Safeguards  
3.48.   Since the previous TPR, Chinese Taipei's basic legislation on safeguards consisting of the 
"Foreign Trade Act" and the Rules for Handling Import Relief Cases remained unchanged. The 
MOEA's ITC continues to be in c harge of safeguard measures.  
3.49.   No safeguards were taken under the provisions of the WTO Agreement on Safeguards 
during the review period. An investigation on all imports of high density polyethylene (HDPE) and 
linear low density polyethylene (LLDPE) was ope ned in July 2013, and negative injury was 
determined in April 2014.  
3.50.   Chinese Taipei maintains its right to impose Special Safeguards (SSGs) on 10 (or 
14 according to the authorities) broad categories of agricultural products (7.5% of all HS07 
agricultural tariff lines) that overlap but are not identical with those under TRQs (Sections 3.1.3.5 
and Section 4.1).70 Price- or volume -triggered SSG action was taken against imports of 12, 10  and 
13 products in  2015, 2016 and 2017 respectively.71  
                                                
66 With 44  cases initiated between 1997 and 2016, Chinese Taipei was the world's 22nd major user of 
anti-dumping measures. WTO online information. Viewed at: 
https://www.wto.org/english/tratop_e/adp_e/AD_InitiationsByRepMem.pdf . 
67 WTO online information ( https://www.wto.org/english/tratop_e/adp_e/AD_InitiationsByRepMem.pdf ) 
and documents including G/ADP/N/244/TPKM, 11 September 2013; G/ADP/N/300/TPKM, 28 August 2017; and 
G/ADP/N/308/TPKM, 22 February 2018.  
68 WTO document G/ADP/N/308/TPKM, 22 February 2018.  
69 Online information ( http://www.taipeitimes.com/News/biz/archives/2018/04/23/2003691819 ). 
70 According to the authorities, the product categories consist of: peanuts; pears; garlic; betel nuts; 
chicken (chicken legs and wings, other chicken cuts); offal (livestock offal and poultry offal); liquid milk; red WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.2  Measures Directly A ffecting Exports  
3.2.1   Customs procedures and requirements  
3.51.   Registration and documentation requirements for exports, in general, remain similar to 
those for imports (Section 3.1.1.1). Exporters must be registered with the BOFT prior to engaging 
in any export busi ness. Since 2014, documentation requirements involving an export declaration 
along with loading lists, booking notes, packing list, as well as export permits and relevant 
documents have remained unchanged. As from 1995, all outgoing products have required an 
approved export customs declaration; however, if their f.o.b. value is lower than NT$50,000, a 
simple declaration can be used for their express delivery.72 According to World Bank Doing 
Business data, in 2017 exporting a shipment of goods required border  (clearance and inspections) 
and documentary (port or border handling) compliance equivalent to 17 hours and US$335, and 
31 hours and US$84, respectively as well as 5  documents.73 In 2013, exporting a shipment of 
goods required 5 documents, took 14 days and  cost US$655.  
3.2.2   Taxes, charges, and levies  
3.52.   Chinese Taipei continues not to levy export taxes. Nonetheless, exports are subject to the 
trade promotion service fee and the harbour dues (Section 3.1.4).  
3.2.3   Export prohibitions, restrictions, and licensing  
3.53.    Durin g the review period, the legislation in this area remained unchanged and similar to the 
framework and scope of those applied to imports. Similar to incoming merchandise flows, outgoing 
trade with the Democratic People's Republic of Korea has been banned (S ection 3.1.5).  
3.2.3.1   Export prohibitions  
3.54.   As at July 2017, e xports of 42 (35 in 2014) products at HS 10 -digit level (of which 
20 agricultural items (HS 1 -24)) were prohibited (Table A3.4), mostly in line with international 
conventions requirements or to protect h uman health, culture, and the environment (e.g. toxic 
chemicals, warfare, and whale shark, poisonous herbs, and antiques over 100 years old); in 
addition, sand pebbles and gravels are banned from export on the ground of environmental 
protection. No tempora ry or seasonal export bans were in place during the period under review.  
3.2.3.2   Export licensing  
3.55.   As at April 2018, export licensing/permit requirements affected 23 (37 in 2014) products at 
the HS  10-digit level (of which 3 agricultural items (HS 1 -24) from 1 November to 31 March each 
year) (Table A3.5). Besides controlled chemicals (e.g. CFC), diamonds and equipment for 
semi-conductors are also subject to export licensing. According to the authorities, as at 
March  2018, 99.26% (11,926 items) of all outgoing co mmodities (11,991 ten -digit HS items) were 
exempt from export permit requirements altogether.74  
3.56.   As at April 2018, some 1,022 products (of which 164 agricultural items (HS 1 -24)) listed as 
"Assisted by the Customs for Export Examination" required approvals from relevant competent 
                                                                                                                                                  
beans; dried shiitake; pomelos; pers immons; dry day lilies; pork belly; and rice. SSGs, permitted under 
Article  5 of the WTO Agreement on Agriculture, allow the imposition of additional duties when import quantities 
exceed SSG trigger volumes or import prices fall below SSG trigger prices. A s Chinese Taipei did not import 
many of these products in the past, SSG trigger volumes are relatively low. WTO documents 
WT/TPR/S/232/Rev.1, 28 July 2010, and TN/AG/S/29, 20 October 2016.  
71 WTO documents: G/AG/N/TPKM/134, 21 March 2016; G/AG/N/TPKM/149, 6 March 2017; 
G/AG/N/TPKM/149/Corr.1, 23 March 2017; and, G/AG/N/TPKM/160, 7 February 2018.  
72 ECCT (2016), 2017 Position Papers , 10 November. Viewed at: http://www.ecct.com.tw/ .  
73 World Bank (2014), Doing business 20 14, 13 May. Viewed at: 
http://documents.worldbank.org/curated/en/474281468167054457/pdf/829800Taiwan0TWN0Box0382127B00
PUBLIC0.pdf ; World Bank (2018), Doing Business 2018 - Reforming to Create Jobs . Viewed at: 
http://www.doingbusiness.org/~/media/WBG/DoingBusines s/Documents/Annual -Reports/English/DB2018 -Full-
Report.pdf . 
74 Ministry of Economic Affairs/Bureau of Foreign Trade (2016), The Development of International Trade 
2016-2017. WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  authorities before exportation. These products include certain foods, agricultural products, drugs 
and medical devices, chips and IP products including optical discs.  
3.57.   In addition, export of endangered species of wild fauna and flor a protected under CITES 
Appendix I or species included in the Wildlife Conservation Act must apply to the BOFT for export 
licences; the application must be accompanied by prior approvals from the Council of Agriculture. 
The MOEA simplified the process for re-exporting CITES products and improved its online 
application process in 2012.75  
3.58.   Exports of strategic high -tech commodities (SHTCs) require licences issued by the BOFT. An 
exporter that has implemented the Internal Compliance Programme may apply for an e xport 
licence that is valid for multiple export markets, buyers, consignees and end -users, and valid for 
three years for non -restricted areas or six months for restricted areas.76 SHTCs are restricted on 
exports to Cuba, China, Iran, Iraq, the Democratic Pe ople's Republic of Korea  (see above), Syria, 
and Sudan; the list of restricted commodities adopts the European Union's Community Regime for 
the Control of Exports of Dual Use Items & Technology, Common Military List, and Sensitive 
Commodities List.77 It als o uses "catch -all" controls on end -users and end -uses which indicate a 
risk that an item may be used for Weapon of Mass Destruction (WMD) purposes.  
3.59.   Chinese Taipei does not maintain any quantitative restrictions on exports.  
3.2.4   Export support and promotion  
3.2.4.1   Duty and tax concessions  
3.60.    Customs duty and taxes (i.e. Commodity Tax and the VAT) paid on imports of raw 
materials used in exports remain refundable. Duty refunds (or offsetting or drawbacks) are 
governed by the Customs Act and the Regulations Governing the Offsetting or Refund of Duties 
and Taxes on Raw Materials for Export Products that remain unchanged. The criteria for refund of 
customs duties and commodity taxes on raw materials are established by the MOEA on a 
case-by-case basis in the light of evidence  of material to be used in the production process as 
reported by the exporter prior to processing and verified by the Industrial Development Bureau.78 
Factories or firms engaged in overseas sales must, when production begins, compile a table 
showing the qua ntity of raw materials used for manufacture of finished products and send it, 
together with the documents relating to overseas sales and information concerning the quantity of 
the raw materials used, to the Ministry of Economic Affairs for examination and approval. Between 
2014 and 2017, the total annual drawback disbursements peaked at NT$3 billion in 2015, before 
dropping to NT$2.7 billion in  2016, and peaking again at NT$3.3 billion in 2017. The main sectors 
benefiting from these outlays were hardware an d machinery, transport equipment, electronic 
products, and food and canned foods (Table 3.4). The value of exports benefiting from drawback 
from 2014 onwards was not available from the authorities.  
3.61.   Outgoing goods are exempt from the commodity tax, tobacco  and alcohol tax, and VAT 
(Sections 3.3.1.1.2).  
                                                
75 ECCT (2016), 2017 Position Papers , 10 November.  
76 Online information ( https://supportoffice.jp/outreach/2011/asian_ec/2 -1-2_Chinese_Taipei.pdf ). 
77 Outgoing trade restrictions to China remain limited to 12 categories of semi -conductor wafer 
fabricating equipment for strategic high -tech commodities: chemical mechanical polishers, photo -resist 
strippers, photo -resist developers, rapid thermal processor s, deposition apparatus, cleaning equipment, dryers, 
electron microscopes, etchers, ion implanters, photo -resist coaters, and lithography equipment. In addition, 
Chinese Taipei uses its own Sensitive Commodities List specifically for export to the Democrat ic People's 
Republic of Korea and Iran, which includes 408 and 372 tariff codes for each destination.  
78 According to the authorities, information on the formula used for calculating the refund is available 
online ( https://csoas.moeaidb.gov.tw/csoas/rtms/generalcase/QueryAction.do?method=init ). Regarding 
imported raw materials subject to TRQs, the in -quota rates are applied in refunds regardless of whether the 
customs duties were paid at these rates. Payments of additional tariffs, such as SSG measures, are not eligible 
for refund. Goods sold to the bonded areas are also eligible for tax refund. Other taxes and surcharges on 
imports collected at the border (e.g. To bacco and Alcohol Tax) are not refunded. At the time of the previous 
TPR, 51 products at HS 10 -digit level, including Huku, buffalo and cow horn, and processed cheese, were 
ineligible for duty/tax refunds. WTO document WT/TPR/S/302/Rev.1, 18 December 2015.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Table 3.4 Tax refunds on incoming inputs for export manufactures, 2014 -17 
(NT$ million)  
Industry  2014  2015  2016  2017  
Amount  (%) Amount  (%) Amount  (%) Amount  (%) 
Hardware and machinery  650 22.4 643 21.4 611 22.6 715 21.86  
Transport equipment  318 10.9 342 11.4 388 14.3 443 13.56  
Electronic products  640 22 770 25.7 493 18.2 457 13.99  
Food and canned foods  416 14.3 255 8.5 93 3.4 88 2.7 
Others  882 30.4 992 33 1,124  41.5 1,566  47.9 
Total  2,906  100.0  3,002  100.0  2,709  100.0  3,269  100.0  
Source:  Information provided by the Customs Administration.  
3.2.4.2   Free-trade export zones  
3.62.    During the review period, export processing zones (EPZs) administered by the Export 
Processing Zone Administration under the MOEA, and free trade zones (FTZs) administered by the 
Free Trade Zone Administration under the Ministry of Transportation and Communications, offering 
similar incentives for enterprises, remained in place. Both EPZs  and FTZs are bonded areas. In 
addition to exemption from import duties, imports to EPZs and FTZs are exempt from other 
indirect taxes and charges collected at the border (Sections 3.1.3, 3.1.4, 3.3.1.1.2 and 4.1.1).79 
Zone regulations stipulate a minimum c apital investment of NT$80 million for the warehousing 
industry, NT$50 million for the transportation industry, NT$20 million for the manufacturing 
industry for land leases to build factories, NT$10 million for the manufacturing industry for factory 
leases  or purchases, and NT$1 million for other industries. According to article 29 of the Act for the 
Establishment and Management of FTZs, overseas profit -seeking enterprises may perform the 
functions of storage, delivery or "simple processing", or delegate th em to FTZ enterprises, and are 
entitled to exemption of their "business income" tax. Preferential trade facilitation measures are 
also applied in these areas, for example, for manufacturing and warehousing enterprises that have 
valid AEO -S certificates (Se ction 3.1.1.1), guarantee deposits are waived on bonded goods 
(including machinery) valued at under NT$10 million shipping out of the bonded zones.  
3.63.   Businesses allowed to operate in FTZs include trading, collecting, transhipment, forwarding, 
customs cleara nce, assembling, packaging, repair, manufacturing, testing, and technological 
services. Business allowed to operate in EPZs are: food; chemical products; electric appliances; 
garments; machinery; metal products; miscellaneous industrial products; precision  machinery; 
vehicles; consulting services; information services; international trading; and other approved 
industries defined as "high tech, capital intensive, high quality or high value added".80 FTZs are 
mainly aimed at developing a global logistics indus try, while EPZs focus on promoting investment 
and developing industries. Labour -intensive businesses are discouraged.  Since 1986, overseas  
banks have been allowed to operate in the zones and foreign exchange businesses have no longer 
been restricted to the  designated banks in the EPZs.  
3.64.   As at 2016, there were 605 (568 in 2014) enterprises operating and employing 
81,736  persons at 10 EPZs  (Section 3.3.1.2.3) ; 79 enterprises (68 in 2014) were 
overseas -invested. Most enterprises are engaged in manufacturing el ectronic parts and 
components; computers, electronic, and optical products; non -metallic mineral products; and 
plastic products. In 2016, the turnover of enterprises in the EPZs was approximately 
NT$377.2  billion, with around NT$192 billion sold to the loc al market. The same year, EPZs 
generated exports of US$13.3 billion and imports of US$8.1 billion that were equivalent to 4.8% 
(4.2% in  2013) and 3.5% (3.3% in 2013) of total exports and imports, respectively.  
3.2.4.3   Other means of promotion  
3.65.   Chinese Taipei conti nues to operate promotion schemes aimed at helping exporters to 
explore and expand markets, improve product quality, and upgrade product image. Trade 
promotion activities include organizing trade fairs and trade missions, providing market 
information, and establishing e -platforms for exporters. The "Taiwan External Trade Development 
Council" (TAITRA), a non -profit organization, is responsible for implementing major trade 
                                                
79 WTO document WT/TPR/S/302/Rev.1, 18 December 2015.  
80 Economist Intelligence Unit (2017), Country Commerce , June, London. Viewed at: www.eiu.com . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  promotion programmes and projects.81 At the time of the previous TPR, the BOFT was runni ng 
several specific programmes such as the Industrial Image Promotion Project, the Project to 
Promote Most -Value Products in Emerging Markets, and the Gr een Trade Promotion Project. 
In 2012, the last year for which data was made available, NT$790  million w ere spent on BOFT's 
trade promotion programmes.  In 2015, the most problematic factors for exporting were mainly: 
identifying potential markets and buyers; tariff barriers abroad; access to incoming inputs at 
competitive prices; and, high cost or delays cau sed by international transportation.82  
3.2.5   Export finance, insurance, and guarantees  
3.66.   The publicly owned Export -Import Bank (Eximbank) remains  the main institution that 
promotes exports and provides export credit, insurance, re -lending, and other kinds of export 
financing facilities. Short -term export credit (i.e. less than one year) aims to assist firms with 
obtaining working capital; medium/lo ng-term credit may cover a maximum of 85% of the contract 
value of Chinese Taipei -made machinery, equipment, turn -key plants and other capital goods.83 
Finance by Eximbank is not conditional on export performance and interest rates for export credit 
are set  at LIBOR or OECD Commercial Interest Reference Rates plus interest margin. Repayment is 
made in equal semi -annual instalments commencing six months from the shipment date and credit 
applicants may request a grace period of up to ten years (for turn -key pl ant, full -line equipment, 
single machine, or other capital goods) or three years from the delivery date of the product. 
Re-lending is provided to overseas banks in order to facilitate exports by strengthening their 
competitiveness.84 Eximbank also provides domestic firms with a finance facility for overseas 
investment, and all the credit conditions are considered in line with the provisions of the OECD 
Arrangement on Officially Supported Export Credit.  
3.67.   In the context of the New Southbound Policy (Section 2. 2), Eximbank is committed to 
building sound financing, guarantee and export credit insurance mechanisms. It is also engaged in 
integrating the NDF development fund, the SME development fund of the MOEA, and the BOFT 
trade promotion fund to jointly provide manufacturers with all types of loans, guarantees and 
export credit insurance under preferential terms relating to the grace and repayment periods to 
assist manufacturers expand their exports to the ASEAN, South Asia, Australia, and New Zealand 
markets.85 Furthermore, in addition to 18 economies targeted by the New Southbound Policy, 
in 2016 and 2017 the Eximbank continued to focus on key export expansion markets chosen by 
the MOEA, including the United States, Turkey, Viet Nam, China, Indonesia, India, Germ any, 
Malaysia, South Africa, Mexico, the Philippines, and the United Arab Emirates. The Eximbank's 
average outstanding loans totalled NT$106.46 billion at end -March 2018, up by 2.8% from a year 
earlier.86 In 2017, Eximbank guarantees totalled NT$22.1 billio n, an increase of 17.4% compared 
to 2016.87 The same year export credit insurance underwritten by Eximbank was NT$115.8 billion, 
a year -on-year growth rate of 0.5% from 2016; its export insurance amount was about 
NT$41  billion, representing an increase of N T$2.8 billion compared to 2016. In 2017, the 
Eximbank approved a total amount of NT$20.68 billion for export credit to key export expansion 
markets, representing an increase of 6.5% over 2016. As at 2017, the approved amount of policy 
export loans and loan s to emerging markets accounted for 59.1% of Eximbank's total approved 
amount of export loans; insurance underwritten for emerging markets accounted for 49.7% of its 
total export credit insurance. The same year, SMEs accounted for about 85% of Eximbank's e xport 
credit insurance, a 12.5% increase over the same period in 2016.  
                                                
81 Online information ( https://www.taiwantrade.com/ ). 
82 World Economic Forum and the Global Alliance for Trade Facilitation (2016), Global Enabling Trade 
Report 2016 . Viewed at: http://reports.weforum. org/global -enabling -trade -report -2016/ . 
83 Eximbank online information, " Medium and Long-Term Export Credit ". Viewed at: 
http://www.eximbank.com.tw/en -us/BankServices/Loans /Pages/MLTEC.aspx ; Economist Intelligence 
Unit (2017), Country Commerce , June, London. Viewed at: www.eiu.com . 
84 As of the end of 2016, Eximbank had established relending facilities in 22 markets comprising: Chile, 
Colomb ia, Dominican Republic, El Salvador, Honduras, Nicaragua, Paraguay, Peru, Armenia, Belarus, Bulgaria, 
Czech Republic, Russian Federation, Turkey, Israel, Cambodia, India, Indonesia, Mongolia, the Philippines, 
Thailand, Viet Nam and the United States, with a total of 67 financial institutions overseas; the total relending 
amount stood at US$715 million. Eximbank (2017), Annual Report 2016 , June.  
85 The NDF development fund provides a higher proportion of financial assistance to enterprises 
investing in the AS EAN, South Asia, Australia, and New Zealand markets. Eximbank (2017), Annual Report 
2016, June.  
86 Economist Intelligence Unit (2017), Country Commerce , June, London. Viewed at: www.eiu.com .  
87 Eximbank (2017), Annual Report 2016 , June.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.3  Measures Affecting Production and Trade  
3.3.1   Incentives88 
3.3.1.1   Taxation  
3.3.1.1.1   Features  
3.68.   During the review period, t otal tax revenue as a share of GDP peaked in 2016, reflecting an 
overall rise of 8% (2016), before slightly dropping in 2017, and remaining relatively low compared 
to the OECD average of 34.1% in 2016 (Table 3.5).89 The contribution of customs duties to total 
tax revenue remained significant and relatively stable (ranging from 5.2% to 5.4%  of total tax 
revenues); the Profit -Seeking Enterprise Income Tax  and the Individual Income Tax remain the 
main general direct tax components followed by the Business Tax. Reliance on indirect taxes 
(i.e. their share to total tax revenue) decreased by abou t 8%.  
Table 3.5 Structure of direct and indirect tax revenue, 2013 -17 
 2013  2014  2015  2016  2017  
Total net tax revenue (NT$ billion)  1,834.1  1,976.1  2,134.9  2,224.1  2,251.2  
% of GDP  12.0 12.3 12.7 13.0 12.9 
Direct taxes  59.5 59.8 62.0 62.5 62.6 
Profit -Seeking Enterprise Income Tax  19.1 20.4 21.7 22.9 22.3 
Individual Income Tax  21.4 20.8 22.2 22.3 21.4 
Estate and Gift Tax  1.3 1.3 1.5 2.1 2.3 
Securities Transactions Tax  3.9 4.5 3.8 3.2 4.0 
Futures Transactions Tax  0.1 0.1 0.2 0.2 0.2 
Land Value Tax  3.9 3.6 3.3 4.2 4.2 
Land Value Increment Tax  5.6 5.1 5.3 3.7 4.2 
House Tax  3.4 3.3 3.3 3.3 3.4 
Deed Tax  0.7 0.6 0.6 0.5 0.6 
Indirect taxes  40.5 40.2 38.0 37.5 37.4 
Customs duties  5.3 5.4 5.2 5.2 5.1 
Commodity Tax  8.9 8.7 8.6 8.2 7.9 
Tobacco and Alcohol Tax  2.4 2.2 2.1 2.1 2.2 
Business Tax  16.5 17.0 15.7 15.9 16.1 
Vehicle Licence Tax  3.1 3.0 2.9 2.8 2.9 
Stamp Tax  0.6 0.5 0.5 0.5 0.5 
Amusement Tax  0.1 0.1 0.1 0.1 0.1 
Financial Enterprises Business Tax  1.4 1.3 1.2 1.1 1.0 
Health and Welfare Surcharge on Tobacco  1.9 1.7 1.6 1.5 1.4 
Special and Provisional Tax  0.0 0.0 0.0 0.0 0.1 
Specifically Selected Goods and Services Tax  0.3 0.3 0.2 0.1 0.1 
Source:  Data supplied by the authorities.  
3.3.1.1.2   Indirect taxation  
3.69.   Chinese Taipei's relatively complex indirect tax structure remains unchanged. It includes the 
Value -Added and Non -Value -Added Business Tax, the Commodity Tax, tobacco and alcohol taxes, 
the Health and Welfare Surcharge and the Specificall y Selected Goods and Services Tax. All 
indirect taxes are considered to apply equally in terms of same rates and conditions to both 
domestically produced and imported goods and services.  
3.70.   The Business Tax, in the value -added and non -value -added form, continues to be levied 
under the Value -Added and Non -Value -Added Business Tax Act ( VANVABT). The Value -Added 
Business Tax (VAT) is collected from business entities at the time of selling goods and services at a 
rate of 5%. The VAT is calculated either on the basis of actual sales or the customs value of 
incoming goods plus taxes and related duties and taxes (e.g. customs duties and/or Commodity 
Tax) or other methods depending on the item. To add ress VAT collection problems arising from 
frequent e -commerce transactions, the VANVABT Act was amended on 28 December 2016 to 
                                                
88 Detailed information on all taxation and tax incentives issues is available online in the Ministry of 
Finance's Guide to Taxes 2017  (http://www.mof.gov.tw/File/Atta ch/75532/File_10791.pdf ). 
89 Online OECD data ( https://stats.oecd.org/Index.aspx?DataSetCode=REV ). WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  require overseas companies undertaking online sales of services (e.g. hotel bookings, travel 
packages, digital music) to local in dividual consumers to register as business es, obtain a tax 
identity number and file VAT in Chinese Taipei; the system entered into force on 1 May 2017 and 
at present there are 76 registered companies.   
3.71.   The Non -Value -Added Business Tax applies to: enterpris es engaged in banking and 
insurance for banking and insurance business at 5% as from 1 July 2014 (previously 2%); to 
enterprises engaged in banking, insurance, investment trusts, securities, futures, commercial 
paper and pawnshops for their core business a t 2%; other operations which are non -core business 
at 5%; the reinsurance premiums of insurance enterprises at 1%; small businesses at 1%; night 
clubs or restaurants providing entertainment at 15%; saloons or tearooms, coffee shops, and 
certain bars at 25% ; and, consignees in agricultural wholesale markets and small businesses 
supplying agricultural products at 0.1%.  
3.72.   A zero tax VAT rate continues to be levied on the sale of goods and services including: 
outgoing goods; services relating to export or servic es provided in Chinese Taipei but used 
overseas; goods sold to outbound/transit passengers in duty -free shops; goods/services sold to a 
bonded zone business entity for its operational use; international transportation; and vessels and 
aircraft used in inte rnational transportation and deep sea fishing boats.90 Exemptions from VAT 
apply to supply of goods and services and importation of certain goods.91  
3.73.   During the review period, no major changes other than temporary exemptions on purchases 
of certain types of vehicles (e.g. buses for the disabled, wheelchair -accessible vehicles, 
electric -operated automobiles or motorcycles), have been introduced to the Commodity Tax, a 
single -stage sales tax levied under the Statute for Commodity Tax at the time goods are 
dispa tched from a factory or are imported (Table A3.7). Goods subject to commodity tax are taxed 
on an ad valorem  or specific basis depending on the product. They include: rubber tires, cement, 
beverage, flat -glass, oil and gas, electric appliances, and vehicle s (Table A3.7). The Commodity 
Tax valuation basis for domestically produced goods is the manufacturers' selling price less other 
Commodity Tax included in the price or the customs value plus the corresponding customs duty for 
imports.92 Raw materials used f or manufacturing other taxable commodities, outgoing goods, and 
goods for exhibition, but not for sale, are exempt from the Commodity Tax.   
3.74.   Tobacco and alcohol taxes continue to be levied on tobacco or alcohol items produced 
domestically (including the rel ated manufacturing and packaging) or from overseas upon their 
removal from the local factory or upon importation.93 Following the 2017 amendments to the 
                                                
90 Article 7 of Value -Added and Non -Value -Added Business Tax Act, viewed at: 
http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0340080 . 
91 The supply of goods and services includes: sale of land; water supplied to farmland for irrigation; 
medical services, medicines, ward lodging and meals provided by hospitals, clinics, and sanitariums; social 
welfare services provided by social welfare organizations or institutions or labour organizations, duly 
established with the permission of the competent authority, and social we lfare services consigned by the 
authorities; education services; textbooks issued by publishing industry and authorized by education 
authorities; goods and services sold by student -run shops; newspapers, magazines, newsletters, 
advertisements, television a nd broadcasting programs; goods and services sold to their members by 
co-operatives, goods and services sold to their members by farmers', fishermen's, workers', commercial, and 
industrial associations in accordance with the law; proceeds from goods sold i n tenders, charity sales, and 
charity shows; goods and services sold in prison workshops and their finished goods stores; services rendered 
by post and telecommunications offices; monopoly goods sold at statutory prices by publicly owned monopoly 
industrie s and by business entities; service of consigned sale of stamp tax tickets and postage stamps; goods 
or services sold by peddlers or hawkers. The importation of goods includes: ships and aircraft; fertilizers; gold 
bars, gold bricks, gold foil, gold coins,  and gold ornaments; and, domestic antiques. Ministry of Finance Guide 
to Taxes 2017  (http://www.mof.gov.tw/File/Attach/75532/File_10791.pdf ) (pp. 92 -94 and 95 -96). 
92 In addition, for p roducts manufactured for others with materials provided by the consignor, the selling 
price for the computation of the taxable value is the consignor's selling price; for newly -manufactured 
commodities or in the absence of similar products, the taxable val ue may be temporarily computed on the 
basis of their manufacturing costs plus profit until they are marketed; then the taxable value will be 
determined in accordance with their selling prices, with adjustment to be made for tax collection. Ministry of 
Finance Guide to Taxes 2017  (http://www.mof.gov.tw/File/Attach/75532/File_10791.pdf ) (p. 108, 112).  
93 The tax affects: cigarettes (NT$1,590 per 1,000 sticks); cut tobacco, cigars and other tobacco 
products (NT$1,590 per kilogram); beer (NT$26 per litre) and other brewed alcoholic beverages (NT$7 per 
litre, per degree of alcohol content); distilled spirits (NT$2.5 per litre, per degree of alcohol content); 
reprocessed alcoholic beverages with  alcohol content exceeding 20% by volume (NT$185 per litre) and with 
alcohol content equal to or less than 20% by volume (NT$7 per litre per degree of alcohol content); cooking WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Tobacco and Alcohol Tax Act, the tobacco tax rate has more than doubled, from NT$590 to 
NT$1,590 per 1,0 00 cigarettes or per kilogram of other tobacco products (e.g. cut tobacco, 
cigars). Reportedly, instead of being included in the regular government account for revenue and 
expenditures, since 12 June 2017 the additional revenue has been allocated to a spec ial fund to 
finance services related to long -term care, established in accordance with the Long -Term Care 
Services Act.94 In addition, tobacco and tobacco products remain subject to the Health and Welfare 
Surcharge.95 Concerns remain over the taxation level of the mijiu rice wine, a fermented beverage 
for cooking and other uses, that continues to be taxed at the much lower rate than the rate 
applied to alcoholic beverages not for cooking, thus competing with, or being a substitute for, 
incoming alcoholic beve rages not for cooking.96 The authorities indicated that the mijiu rice wine is 
used only for cooking, therefore it does not directly compete with, or substitute imported alcoholic 
beverages; the same tax rate is also applicable to incoming "Cooking Rice Win e" on a 
non-discriminatory basis.   
3.75.   The Specifically Selected Goods and Services Tax (SSGST) continues to be charged on 
"high-priced" goods, such as passenger cars, yachts with a full length of not less than 
30.48  meters, airplanes, helicopters, ultra -light vehicles, furniture, turtle shells, hawksbill, coral, 
ivory, and furs and fur products, and membership rights, at a rate of 10%.97 More than 40% (30% 
in 2013) of SSGST revenue was collected at the border in 2017.  
3.3.1.1.3   Direct taxation  
3.76.   The Profit Seeking Enterpr ise Income Tax at rates of zero for income up to NT$120,000 and 
17% for income of NT$120,001 and above, remained unchanged until 2017 but following a tax 
reform as from January 2018 its rate was raised to 20% (Section 1.2.4.1). However, profit -seeking 
enterprises with a taxable income of not more than NT$500,000 have been subject to annual 
adjustments with a tax rate of 18% for 2018, 19% for 2019 and 20% for 2020 onwards. In 2015, 
the number of the Individual Income Tax brackets was revised from five to six  with the addition of 
the 45% tax rate bracket on the portion of net income over NT$10  million. Under the 2018 tax 
reform, in order to attract professionals to stay in Chinese Taipei and raise its international 
competitiveness, the highest individual incom e tax rate was reduced from 45% to 40% and the 
number of Individual Income Tax brackets was again revised from six back to five. Following the 
June 2015 amendment of the Income Tax Act, as of 2016, a new real property tax regime took 
effect setting a 17% r ate for local corporate taxpayers and a rate of 35% or 45% on profit -seeking 
enterprises with head offices located outside of Chinese  Taipei, depending on whether the property 
is held for more than a year or less than one year.98 A profit -seeking enterprise  which has its head 
office in Chinese Taipei and is engaged in maritime transportation may apply to be taxed under the 
tonnage tax regime.  
3.3.1.2   Production assistance  
3.77.   Chinese Taipei continued to encourage production and trade through various tax and 
non-tax inc entives (Table A3.7). According to its two notifications submitted to the WTO 
Committee on Subsidies and Countervailing Measures during the review period, support has been 
provided to agriculture (rice, diversified crops, tobacco leaves, sugar) (Section 4. 1), fisheries 
(buy-back of fishing vessels, closing fishery season, insurance costs) (Section 4.3), industry (SMEs 
                                                                                                                                                  
alcoholic products including cooking rice wine (NT$9 per litre); other alcoholi c beverages (NT$7 per litre, per 
degree of alcohol content); and, ethyl alcohol (NT$15 per litre). Ministry of Finance Guide to Taxes 2017  
(http://www.mof.gov.tw/File/Attach/75532/File_ 10791.pdf ). 
94 Library of Congress online information. Viewed at: http://www.loc.gov/law/foreign -
news/article/taiwan -proposed -amendments -to-tobacco -and-alcohol -tax/. 
95 The surcharge is levied on cigarettes (NT$1,000 per 1,000 sticks), and cut tobacco, cigars and other 
tobacco products (NT$1,000 per kilogram).  
96 WTO document WT/TPR/S/232/Rev.1, 28 July 2010; ECCT (2017), 2018 Position Papers - Clearing 
the Hurdles to Economic Progress , November. Viewed at 
http://www.ecct.com.tw/file/Publications/201711151808326974.pdf ; and USTR (2017), 2017 National Trade 
Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/reports/2017/NTE/2017%20NTE.pdf . 
97 WTO document WT/TPR/S/302/Rev.1, 18 Decemb er 2015; Ministry of Finance Guide to Taxes 2017  
(http://www.mof.gov.tw/File/Attach/75532/File_10791.pdf ).  
98 Online information. Viewed at: https://www.pwc.tw/zh/publications/assets/taiwan -pocket -tax-book-
2017.pdf  (p. 9).  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  upgrading, high -technology industries, in -zone firms, petroleum facilities) and R&D (new 
outstanding products, industrial technology developm ent, oil and gas exploration) through various 
tax and non -tax measures including duties and tax exemptions, guaranteed purchases, payments, 
grants, and concessional loans, depending on the programme.99 In most cases the duration of the 
support measure remai ned unspecified and its trade effect difficult to determine. In 2015, the total 
annual cost of the notified support was not less than NT$61.8 billion of which 20.6% was delivered 
through budgetary outlays and the rest via tax expenditures (Business tax exe mption of imports to 
in-zone firms (high -technology, EPZs (Section 3.2.4.2 and below))). Chinese Taipei produces an 
annual report on tax expenditures (e.g. foregone tax revenue in the form of tax incentives) related 
to income tax (since 2005) and value -added and non -value -added business tax (since 2017) 
incentives.  
3.3.1.2.1   Small and -medium -sized enterprises  
3.78.   Small and -medium -sized enterprises (SMEs) remain the backbone of the economy.100 
During the review period, amendments were introduced to the tax benefits under th e Act for 
Development of Small and Medium Enterprise (Table A3.7). SME -specific employment -related tax 
incentives remain in place. Between 2014 and 2016, 412 firms benefitted from these incentives 
that represented a total of NT$63.88 million of forgone tax  revenue. SMEs continue to benefit from 
assistance in the form of soft loans and credit guarantees under the SME Credit Guarantee Fund 
operated by the SME Administration (SMEA) of the MOEA.101 The development fund's (NDF) 
Programme to Support Industries to A djust to Trade Liberalization, in particular on SMEs, has 
continued to provide preferential loans for "rejuvenant projects" to enterprises affected by 
liberalization (Table A3.7).102 Furthermore, public administration entities are expected to assist 
SMEs to acquire business opportunities in public procurement projects or construction works 
(Section 3.3. 6).103  
3.3.1.2.2   Research and development  
3.79.    Research and development (R& D) remains an important driver for Chinese Taipei's 
economy, and support in this area remains in place (Table A3.7).104 The main tax incentives for 
R&D continue to be provided under the 2010 Statute for Industrial Innovation (SII) 
(Section  3.3.5), which is t o be in force until 31 December 2019 although the authorities are to 
evaluate the possibility of adjusting the tax incentives for R&D investment.105 Further tax 
incentives have been available under the Tax Benefits for the Encouragement of Investment 
scheme (Table A3.7). In 2014 and 2015, 766 and 699 (profit -seeking) enterprises applied for 
these tax incentives equivalent to NT$ 14.982 billion and NT$17.7 billion respectively. Under the 
Industrial Development Programme, Chinese Taipei has provided R&D -related  subsidies for the 
development of new outstanding projects and industrial technology (Table A3.7).  
                                                
99 WTO documents G/SCM/N/315/TPKM, 24 July 2017, and G/SCM/N/284/TPKM, 30 June 2015.  
100 According to a 2016 White Paper's statisti cs on SMEs, in 2015 there were about 1.38 million SMEs, 
2.3% more than the previous year, accounting for 97.7% of all enterprises and 78.2% of total employment in 
Chinese Taipei. Their activities represented 30.4% of total sales and 15.2% of total export s ales. Local sales 
accounted for 87.5% of SMEs' total revenue, of which 79.7% was in the services sector. In Chinese  Taipei, an 
SME is a firm with a paid -in capital of NT$80 million, or less, and less than 200 regular employees 
(manufacturing, construction,  mining and quarrying industries), or an annual sales revenue of NT$100 million 
or less and less than 100 regular employees (agriculture, forestry and fisheries, water, electricity and gas, 
commercial, transportation, warehousing and communications, financ e, insurance and real estate, industrial 
and commercial services or social and personal services industries). Micro enterprises refer to SMEs with fewer 
than 5 persons employed on a regular basis. Online information 
(https://www.moeasmea.gov.tw/ct.asp?xItem=70&CtNode=261&mp=2 ). 
101 Online information ( https://www.moeasmea.gov.tw/ct.asp?xItem=86&CtNode=324&mp=2 ). 
102 WTO document WT/TPR/S/302/Rev.1, 18 December 2015.  
103 Article 37 of the Act for Development of Small and Medium Enterprises 
(https://www.moeasmea.gov.tw/lp.asp?ctNod e=299&CtUnit=78&BaseDSD=7&mp=2 ). 
104 In 2015, Chinese Taipei's spending on R&D, adjusted for purchasing power parity (PPP), totalled 
US$33.7 billion, was 3.6% higher than the previous year, and ranked ninth highest among 42 economies 
worldwide. It accounted for 3.1% of GDP and represented an average annual increase of 6.1% over the 
previous five years, the 13th highest among the same 42 economies, according to the DGBAS. Online 
information ( http://focustaiwan.tw/news/aeco/201707190027.aspx ). 
105 Economist Intelligence Unit (2017), Country Commerce , June, London. Viewed at: www.eiu.com . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.3.1.2.3   Designated zones  
3.80.    Support continues to be available for companies operating in designated areas 
(Table  A3.7). In addition to other incentives in place for E PZs and FTZs (Sections 3.2.4.2), under 
the Preferential Land -Lease Programme for Industrial Estates based on the two principles of 
"parallel lease and sale" and "leasing is preferable to sale", the authorities continue to provide 
rent-free leasing for land  in industrial parks under the jurisdiction of the MOEA.106 In the past, land 
within industrial estates could be purchased in instalments over five to seven years, and 70 -90% 
of the land price could be borrowed from government banks at "reasonable"  terms but  this does 
not apply at present; the authorities indicated that this type of support (i.e. concessional terms of 
loans for leasing land after several extensions) was phased -out by end 2014.107 At present, the 
MOEA places an emphasis on incentives to companie s that conduct rapid investment in factory 
setup; under the "Investment Boosting Programme - Preferential Land -Lease Programme for 
Industrial Estates" it provides rent -free leasing concessions for the initial two -year period of 
investment. As at 2017, 595 (952 in 2010) companies rented 361 (778 in 2010) hectares of land 
and had created 81,471 (84,398 in 2010) jobs. As at May 2017, Chinese  Taipei had 62 industrial 
parks under the jurisdiction of MOEA, 46 industrial parks developed by local governments, 
66 industrial parks developed by the private sector, 10 export -processing zones (Section 3.2.4.2), 
3 science -based parks, 2 software parks and 7 other types of special zones (free -trade zones, 
agricultural biotechnology parks (Section 4.1), and environmental -science and technology 
parks).108 The same year there were 943 companies registered in all these zones/parks providing 
272,194 jobs and with a total sales revenue of NT$2.5 trillion. No data on the share of designated 
zones other than EPZs in total outgoing me rchandise trade were available from the authorities 
(Section 3.2.4.2).  
3.3.1.2.4   Sector -specific support  
3.81.   During the review period, tax and non -tax incentives supported agricultural activities 
(Tables A3.6 and A3.7, and Sections 3.3.1.1.2, 3.3. 4.2 and 4.1.1.5). Acco rding to the authorities, 
promoting import -substitution forms part of its new agricultural policy elements (Section 4.1).109 
According to its 2017 WTO notification, in 2011 and 2012 Chinese Taipei provided product - and 
non-product -specific support to agricul ture, the former in the form of guaranteed prices, contract 
guaranteed, drying subsidy, freight subsidy, purchase, and the latter in the form of input subsidies 
(agricultural machinery, fertilizers, waiver/reduction of electricity fees) (Section  4.1.1.5.1) .110 
During the review period, the submission of relevant WTO notifications of domestic support was 
delayed due to the time required to collect and calculate the data; the authorities indicated that 
these notifications would be submitted soon. Non -tax incent ives were also available for fisheries 
including aquaculture (Section 4.1.3.6). Oil used by farmers and fishermen is exempt from VAT, 
and additional support in the form of discounts is available for gasoline and diesel used by 
fishermen; the authorities co nsider that these subsidies are not sector -specific (Sections  3.3.4.2 
and 4.1.3.6).  
3.82.   Grants to support exploration and development of oil and gas reserves remain in place 
(Table A3.7 and Section 4.2.2.3). Special electricity tariff discounts are available to public utilities 
including water plants, electric trains and railways, public and private schools at all levels, 
sheltered workshops, registered social welfare organizations and nursing homes; no other special 
electricity tariffs are available to other consumers who are split into commercial and 
non-commercial users (Section 4.2.2.2).111 As from 2017, a nearly NT$80 billion Electricity Price 
Stabilization Fund has been used to offset losses of the publicly owned electricity company 
                                                
106 More information is available online 
(http://investtaiwan.nat.gov.tw/showPage?lang=eng&search=reward ). 
107 Special incentives in the form of reduced leases apply to Changhua Coastal Industrial Park, Hualien 
Hoping Industrial Park, Ilan -Litse, Tainan Technology Park and Yunlin Technology Industrial Park.  
108 Economist Intelligence Unit (2017), Industry Report: Automotive, 2nd Quarter , London. Viewed at: 
www.eiu.com/automotive . 
109 The authorities indicated that the import substitution objective consists of encouraging farmers to 
shift from paddy production to diversifi ed crops to boost domestic coarse production, thus alleviating 
Chinese  Taipei from relying on grain imports and promote local production. Another benefit is to reduce the 
overdraft of groundwater for paddy irrigation and therefore address the already promi nent land subsidence 
issue.  
110 WTO documents G/AG/N/TPKM/106, 28 August 2013, and G/AG/N/TPKM/154, 26 September 2017.  
111 Article 52 of the Electricity Act.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Taipower (Section 3.3. 5); the authorities indicated that so far NT$3 billion had been transferred to 
Taipower.  
3.83.   In addition to support for R&D and operations at designated zones parks (Table A3.7), 
manufacturing activities continue to benefit from tax incentives to: boost investm ent in upgraded 
equipment; promote incorporation and expansion of emerging and strategic industries; import 
machinery and equipment not produced locally; invest in the manufacturing and technical services 
industry; and invest overseas. Between 2012 and 201 5, the amounts of taxes reduced or 
exempted to promote the upgrading of industry have dropped by 44.3% to NT$62.6 billion 
whereas taxes rebated for exports rose by 34.8% to NT$3.1 billion; likewise the share of the 
amount of non -export related tax relief a s a percentage of tax revenues in recent years dropped 
from 6.3% to 2.9% whereas the share related to exports remained stable at 0.1% (except 
for 2014).112 Since July 2013, the Central Bank no longer offers special loans via the commercial 
banking system at preferential interest rates to finance imports of machinery and equipment for 
major industries.  
3.84.   During the review period, Chinese Taipei continued to provide tax incentives to support 
specific industries (Table A3.7) including: the biotech and pharmaceuti cal industry (under the Act 
for the Development of Biotech and new Pharmaceutical Industry) (Sections 2.4.1, 3.3.1.2.3, 
3.3.2. 2, 4.1.1 and 4.3.1); the automotive industry; and development of international airport parks 
(under the International Airport Park  Development Act).113 Preferential loans through a 
NT$10  billion fund remain available for the promotion of the aerospace industry. To boost local 
investment in high -tech industries, the authorities provide funding for medium - and long -term 
concessional cred it facilities. The funds are meant for: investment in the information, machinery, 
electronics and textiles industries; purchase of pollution -control equipment; purchase of 
automated machinery and other factory -automation equipment; and government -encourage d 
investment projects. Each overseas company helping a local company set up a computerized 
operating system is eligible for NT$50 million in subsidies.114 Between 2014 and 2018, grants 
allocated for developing new leading industries (e.g. 3C industry (i.e. c omputer, communication 
and consumer electronics), semiconductors) peaked in 2015 at NT$420.8 million then dropped to 
NT$273.9 million in 2018; the 3C industry has been the largest recipient of these grants.  
3.85.   Tax benefits support investment in production of  local motion pictures (Table A3.7).115 In 
mid-2017, a draft act that would allow financial technology ("fintech") businesses to experiment 
more freely with new products while enjoying exemptions from various legal restrictions for up to 
18 months was awaiti ng legislative approval; a "regulatory sandbox" aimed at fostering 
innovations in areas such as peer -to-peer lending, financial identification technology and big data 
analytics was envisaged.116  
3.3.1.2.5   Other assistance  
3.86.   Tax incentives are available to promote reasonable operation of an enterprise, private 
participation in infrastructure projects and investment in less -developed regions (Table A3.7).117  
                                                
112 Ministry of Finance (2016), Government Finance - 2016, July.  
113 In November 2016, the authorities ann ounced a number of measures to support the biotechnology 
industry, including: investment of NT$10.9 billion in 2017 to boost its value to NT$ 1 trillion by 2025; the 
creation of a "biomedical corridor" between Chinese Taipei's science parks; a tax incentiv e scheme for 
biomedical start -ups; and relaxed regulations on inbound investment and recruitment into the sector. 
Concerning the automotive industry, Commodity Tax reductions or exemptions have fully benefited 
electric -powered motor vehicles (including ele ctric motor bikes), LPG cars, l ow-chassis buses, gas buses, 
hybrid -power buses, electric buses, and rehabilitation buses for the disabled (Section 3.3.1.1.2). In January 
2016, the Ministry of Finance amended existing legislation to provide a tax break of N T$50,000 (US$1,500) for 
those upgrading to a newer model within half a year of selling a car that is at least six years old.  Online 
information. Viewed at: http://investtaiwan .nat.gov.tw/showPage?lang=eng&search=10310016 ; Economist 
Intelligence Unit (2017), Industry Report: Automotive, 2nd Quarter,  9 April, London. Viewed at: 
www.eiu.com/automotive ; and Economist Intelligence Unit ( 2017), Industry Report: Healthcare, 3rd Quarter , 
22 August, London. Viewed at: www.eiu.com/healthcare . 
114 Economist Intelligence Unit (2017), Country Commerce , June, London. Viewed at: www.eiu.com . 
115 Online information. Viewed at: http://www.mof.gov.tw/File/Attach/75532/File_10791.pdf  (p. 207).  
116 Economist Intelligence Unit (2017), Country Commerce , June, London. Viewed at: www.eiu.com . 
117 Under the Business Mergers and Acquisitions Law (M&A Law) a company, which acquires the assets 
and shares of another company and pays for the acquisition with its own  voting shares, and provided that the WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.3.2   Standards and other technical requirements  
3.3.2.1   Standards, testing, and certification  
3.87.   During the review period, th e institutional setting in this area has remained virtually 
unchanged. The Bureau of Standards, Metrology and Inspection (BSMI), under the MOEA, remains 
in charge of standardization, metrology and product inspection. Its activities also encompass the 
devel opment of domestic standards, the verification of weights and measuring instruments, the 
inspection of commodities and the provision of other certification or testing services.118 By the end 
of 2018, due to organizational policy adjustments, the BSMI is to c ease its certification services for 
all management systems, except for Hazard Analysis and Critical Control Points (HACCP). The 
more than 20 private or non -profit organizations providing certification services in one or more 
areas of management systems are  taking over certification activities along with the process of 
BSMI's exit from the certification market.119 At present, eight standards -related institutions 
involved in the development and promotion of standards are under the BSMI.120 Regarding testing 
services, the BSMI maintains testing laboratories in regulated sectors and also undertakes 
research on testing methods in areas of emerging technologies. Currently, the testing laboratories 
of BSMI and its six branches (see above) are capable of performing test s of physical, chemical, 
electrical and electromagnetic compatibility properties of products. Such capabilities are important 
to assist in feasibility studies required for developing domestic standards and regulating product 
safety.121 Product testing activi ties that lead to certification are conducted at BSMI designated 
laboratories. A complete list of designated laboratories may be found on the BSMI website.122  
3.88.   The BSMI maintains cooperation arrangements with 31 organisations in 24 economies. As at 
February 2018, the BSMI had signed Mutual Recognition Agreements (MRAs) with eight economies 
(the United States (1999, 2010), Canada (2002), Australia (2004), New Zealand (2005, 2017), 
Singapore (2005), Viet Nam (2004) and Japan and the Philippines (2017)) on the a cceptance of 
conformity assessment results in regulated sectors.123 The BSMI remains a participant in the APEC 
Sub-Committee on Standards and Conformance, and the International Organization of Legal 
Metrology (OIML); it also participates in the General Confe rence on Weights & Measures (CGPM), 
the Asia Pacific Legal Metrology Forum (APLMF) and the Asia Pacific Metrology Programme 
(APMP).124 To bring domestic standards in line with international standards, the BSMI continues to 
                                                                                                                                                  
total of such shares exceeds 65% of the value of the acquired shares, can benefit from exemptions from, 
inter alia, Stamp Tax, Deed tax, and Securities Transaction Tax. Online information. Viewed at: 
http://www.mof.gov.tw/File/Attach/75532/File_10791.pdf  (p. 213) and 
http://investtaiwan.nat.gov.tw/showPage?lang=eng&searc h=10310016 .  
118 As at February 2018, the BSMI had seven departments, six administrative units, six branches and 
thirteen offices. The six branches are located in Keelung, Hsinchu, Taichung, Tainan, Kaohsiung and Hualien. 
BSMI online information. Viewed at: https://www.bsmi.gov.tw/wSite/ct?xItem=3735&ctNode=805 . 
119 According to the authorities, over the last 25 years, certification of management systems reached 
their fullest potential; the number of existing certification bodies to meet the needs of local industry for global 
deployment is sufficient and their competence is internationally recognized. BSMI (2017), 2016 Annual Report 
of BSMI , April 2017. Viewed at: https://www.bsmi.gov.tw/wSite/public/Data/f1495182475951.pdf .  
120 The standards -related institutions involved in the development of CNS are the NSRC standards 
review council and NSTCs standards technical comm ittees. In addit ion, the BSMI also recognizes 
6 standardizing groups, mainly industry associations or non -profit organizations, that participate in the 
development activities of standards.  
121 BSMI (2017), 2016 Annual Report of BSMI , April 2017. Viewed at: 
https://www.bsmi.gov.tw/wSite/public/Data/f1495182475951.pdf .  
122 It includes designated electromagnetic compatibility (EMC) and safety testing laboratories; 
designated testing labo ratories for machinery and mechanical products; and chemical products testing 
laboratories recognized by the BSMI overseas. BSMI online information. Viewed at: 
https://www.bsmi.gov.tw/wSite/ np?ctNode=4116&mp=1  . 
123 More detailed information on cooperation partners with whom agreements/MoUs were signed is 
available at: BSMI (2017), 2016 Annual Report of BSMI , April 2017. Viewed at: 
https://www.bsmi.gov.tw/wSite/public/Data/f1495182475951.pdf ; and information provided by the 
authorities.  
124 The APEC Sub -Committee on Standards and Conformance identified six priority areas for member 
economies to align their domestic standards with international standards for the period of 2014 -2018. These 
priority areas comprise: (i) solar PV, (ii) electrical  product safety, (iii) LED lighting, (iv) energy management, 
(v) electrical accessories, and (vi) EMC. Chinese Taipei authorities report that they achieved the goal of 
aligning domestic standards in these areas with international standards. BSMI online inf ormation. Viewed at: 
https://www.bsmi.gov.tw/wSite/ct?xItem=3770&ctNode=808&mp=2 .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  follow the standardization -related activities of international standardising organisations, such as 
ISO, IEC, Codex, ITU, UN/ECE, etc.125 It remains the WTO/TBT Enquiry Point of Chinese Taipei.   
3.89.   The 2017 BSMI Work Plan has been focused on domestic standards for green energy 
technologies, prec ision machinery, green transportation, energy -saving, environmental protection, 
public construction, and consumer and senior care products. With respect to energy -saving and 
environmental protection, emphasis is placed on cycling products, electric vehicle s, energy 
management system and smart meters. In response to public concerns raised by consumers for a 
healthy and safe living environment, the BSMI continues to work on, inter alia,  synthetic 
detergents, tyres, wheelchairs, infant products and products us ed for public construction.126 The 
areas identified in the 2017 work plan remain the focus areas of the 2018 plan; new products such 
as those in the energy -saving area, i.e. fuel cell technologies, wind turbines and photovoltaic 
energy management systems, we re included. In response to the needs of manufacturers, 
consumers and other users, Chinese Taipei's semi -annual work programme objective is to draft 
and revise domestic standards with a view to applying a set of consistent standards to local 
products, proc edures and services.127 
3.90.   During the review period, the legislative framework in standardization and inspection has 
remained largely unchanged. Its main legal instruments include the Standards Act, the Commodity 
Inspection Act, the Weights and Measures Act, an d their implementing regulations. The 
Regulations Governing Monitoring Inspection were amended in December 2014 to clarify the 
manner in which monitoring inspection is performed and to expedite the customs clearance 
procedures by allowing advance payment o f inspection fees under conditions approved by the 
BSMI.128  
3.91.   Regulatory impact analysis (RIA) is one of the elements of Good Regulatory Practice (GRP) 
(Section 2.1). The BSMI introduces technical regulations on a risk -based approach, where risk 
assessment is  performed at different stages of the product safety system, including setting 
standards, decision on regulating, pre -market control, border checks, and market surveillance. 
Public hearings are also held to engage stakeholders more directly in order to und erstand the 
impacts of proposed measures.   
3.3.2.1.1   Voluntary, compulsory and aligned standards  
3.92.   Standards continue to be implemented on a voluntary basis, unless they are designated as 
technical regulations (Article 4 of the Standards Act).129 Chinese Taipei's stand ards (CNS) are 
based primarily on international standards, such as those developed by the International 
Standards Organization (ISO), International Electrotechnical Commission (IEC), and International 
Telecommunications Union (ITU).130 As at end -2017, there were 13,391 (14,651 in 2013) 
standards, of which 282 (2.1%) were designated as technical regulations; at the same time, 99% 
of CNS standards were equivalent to international ones (Table A3.8). Technical regulations are 
administered by the relevant agencies  under various laws and regulations and they also issue 
conformity certificates.131 They mainly affect specific chemical products, electrical and mechanical 
goods, electronic products, civil engineering and architecture and food (Table A3.8).   
3.93.   Reportedly, al though Chinese Taipei tends to act rapidly to adopt international standards for 
sectors where it is a strong exporter (such as electronic goods), there are concerns in areas where 
the pace of adoption of international standards remains slow. Examples that seemingly stand out 
                                                
125 BSMI online information. Viewed at: 
https://www.bsmi.gov.tw/wSite/ct?xItem=3770&ctNode=808&mp=2 . 
126 BSMI (2017), 2016 Annual Report of BSMI , April 2017. Viewed at: 
https://www.bsmi.gov.tw/wSite/publi c/Data/f1495182475951.pdf . 
127 BMSI online information. Viewed at: 
https://www.bsmi.gov.tw/wSite/ct?xItem=3784&ctNode=808&mp=2 .  
128 BSMI online information. Viewed at: 
http://www.bsmi.gov.tw/wSite/public/Attachment/f1425953896025.doc . 
129 The procedure for establishing domestic standards is described in Article 7 of the Standards Act. 
WTO document WT/TPR/S/ 232/Rev.1, 28 July 2010.  
130 Online information. Viewed at: https://www.export.gov/article?id=Taiwan -Standards -for-
Trade#standardsproductcertifica tion. 
131 WTO document WT/TPR/S/232/Rev.1, 28 July 2010.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  include, inter alia, automotive double testing and food safety standards.132 The authorities 
indicated that they follow the established principle of regulations which are consistent with 
international standards and based on scientific pri nciples. Furthermore, while drafting regulations 
the considerations depend on individual experiences, and they are eventually established on the 
basis of risk assessments (see above). They also clarified that: Chinese Taipei's vehicle safety 
regulation was  harmonized with UN ECE regulation; the origin of the regulation is the same as 
those of the European Union, Japan and Korea (Rep. of); and, there is accredited technical service 
and its testing report from the European Union, Japan, Korea (Rep. of) is acc epted. In principle, 
there are no double testing issues. Based on the principle of equality and mutual -benefit, and to 
simplify the process of mutual vehicle safety type approval, Chinese Taipei welcomes the 
discussion of mutual recognition of vehicle type  approval certificates with WTO Members.  
3.94.   All products subject to (mandatory) technical regulations are subject to commodity 
inspection in accordance with the Commodity Inspection Act.133 The BSMI remains in charge of 
these testing and inspection methods; te sting of commodities can only be done by the BSMI or 
testing laboratories recognized by the BSMI (Section 3.3.2.1).134 Products that have complied with 
regulatory inspection requirements are affixed with the Commodity Inspection Mark.135 The 
Batch -by-Batch Ins pection (BBI) is applied to products with unstable manufacturing processes or 
to those products that pose concerns of risk or danger.136 As at February 2018, a total of 
574 products were subject to the BBI scheme. The Monitoring Inspection Scheme (MIS) is a 
simplified BBI system, based upon a confidence building process. As at February 2018, a total of 
555 products were subject to the MIS, all chemical products including cement products, petroleum 
products, fire -retardant paint materials, fire -retardant build ing materials, tires and toys.137 At the 
same time, 1,220 commodities of 802 chemical products and 418 mechanical, electrical or 
electronic products were subject to mandatory inspection before being allowed to be placed on the 
local market in accordance with  the Commodity Inspection Act.138 Between 2015 and 2016, the 
total number of inspection cases (3 agencies involved) increased by 10.5% to 1.6 million of which 
70.5% related to imports, about 29% to incoming consumer goods and 41.3% to incoming food 
and relat ed products. During the same period, batches of commodities inspected only by the BSMI 
increased by 0.8%, of which 98.6% related to incoming merchandise, about 51% of which were 
mechanical and electrical/electronic products.  
3.95.   Under the Registration of Produ ct Certification (RPC) testing system, products are subject to 
conformity assessment modules which cover both the design and production phases of product 
manufacturing. As at February 2018, a total of 753 products were subject to the RPC scheme. The 
Declar ation of Conformity (DoC) is a less restrictive conformity assessment procedure, which is 
generally applied to low -risk products with stable manufacturing technology and few concerns of 
risk and danger.139 As at February 2018, a total of 49 commodities were subject to the DoC 
scheme.140 Post-market surveillance measures are taken to ensure the safety of regulated 
products.141  
                                                
132 ECCT (2016), 2017 Position Papers , 10 November. Viewed at: http://www.ecct.com.tw/ .  
133 WTO document WT/TPR/S/232/Rev.1, 28 July 2010.  
134 Online information. Vie wed at: https://www.export.gov/article?id=Taiwan -Standards -for-
Trade#standardsproductcertification . 
135 BSMI (2017), 2016 Annual Report of BSMI, A pril 2017. Viewed at: 
https://www.bsmi.gov.tw/wSite/public/Data/f1495182475951.pdf . 
136 Online information. Viewed at: https://www.bsmi.gov.tw/wSite/ct?xItem=4447&ctNode=811&mp=2 . 
137 More detailed information on the application procedures, required documents and a list of designated 
laboratories is av ailable at the BSMI website 
(https://www.bsmi.gov.tw/wSite/lp?ctNode=811&CtUnit=667&BaseDSD=7&mp=2 ). Chinese Taipei commodity 
inspection schemes online information. Viewed at: 
https://www.bsmi.gov.tw/wSite/public/Attachment/f1506578277977.pdf . 
138 As of February 2018, the BSMI was commissioned by the Council of Agriculture to conduct inspection 
of 83 products imported as feedings. Information on such products is available at: 
http://civil.bsmi.gov.tw/bsmi_p qn/index.jsp?lang=en . 
139 Under the DoC scheme, manufacturers may have testing done at the BSMI designated laboratories, 
prepare their own technical documents, and then draft the declaration of conformity themselves.  
140 These products include: digital cameras , digital video cameras, typewriters, cash registers, electronic 
calculators, card punching machines, optical disc devices, data storage units, class B main boards of 
computers, add -on cards with I/O devices, and vulcanized rubber tubes. Export.gov online information. Viewed 
at: https://www.export.gov/article?id=Taiwan -Standards -for-Trade#standardsproductcertification .  
141 BSMI (2017), 2016 Annual Report of BSMI , April 2017. Viewed at: 
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  3.96.   The BSMI also administers the CNS Mark Certification System; the application for CNS 
ranges from voluntary use by businesses in purchase o r production to mandatory use when 
referenced by technical regulations.142 As at end -2017, a total of 36 factories and 2,085 products 
were granted a CNS mark. The Voluntary Product Certification (VPC) System continued to upgrade 
the level of design, developm ent and production of products based on more stringent 
requirements. In 2016, it covered 37 product items, mostly, electrical and electronic products. 
In 2016, the scope of the VPC System was expanded to cover photovoltaic (PV) modules to 
promote duality t esting and validation of PV modules, low -carbon footprint investigation of PV 
manufacturers and development of factory inspection technology. Reportedly, it provides a 
comprehensive certification system for the PV industry conducive to high -performance sol ar PV 
module technology.143  
Metrology  
3.97.   The BSMI remains responsible for developing the statutory metrology system. The purpose 
of this system is to ensure fair trade, maintain proper public safety and health, and protect the 
environment (Article 5 of the Wei ghts and Measures Act). However, with a view to aligning the 
practices of business management with the classification of legal instruments, the BSMI is in the 
process of reviewing the Enforcement Rules of Weights and Measures Act. A draft clarifying the 
category and scope of each statutory metrology instrument will be available for public 
announcement by the end of 2018 and will be open for comments by the industry and related 
stakeholders before adoption. A WTO notification is to be submitted on this matte r in the course 
of 2018.  
3.98.   By the end of 2017, there were 1,170 instrument measuring enterprises of which 251 were 
engaged in manufacturing, 231 in repairing, and 688 in importing measuring instruments. The 
measurement laboratory NML maintains 134 sets of s tandard measurement systems in 17 fields, 
and provides 5,620 calibration services for primary and secondary laboratories. In 2017, the NML 
participated in key comparisons for 15 items and 28 sets of measurement of traceability 
(Sections  3.3.3.1 and 3.3.2. 2). By the end of 2017, there had been 372 items of measurement 
standards registered in the database of the International Bureau of Weights and Measures (BIPM), 
to ensure that Chinese Taipei's measurement standards are equivalent to international 
standards.144  
Drugs approval and GM issues  
3.99.   In response to concerns over Chinese Taipei's seemingly lengthy drug -approval process, the 
Food and Drug Administration (FDA) under the Ministry of Health and Welfare (MOHW) started to 
gradually improve its benefit/risk -based drug -approval systems. In February 2017, the authorities 
approved plans to revise the legal status of the Centre for Drug Evaluation (CDE) but there has 
been no progress so far. In addition, a reduction in the number of stages in the drug -approval 
proces s from three to two is envisaged.145 According to the authorities, the average review times 
for new drug approval stood at 346 days in 2015, 361 days in 2016, and 295 days in  2017.146 In 
2016, the Health Insurance Administration's new drug approval rate stood at 50%, meaning that 
only 50% of the approved cases were subject to reimbursement. It appears that on average it 
takes up to 417 days to be approved for reimbursement; the process for cancer drugs can reach 
up to 781 days. Consequently, it seems that Chine se Taipei remains behind the comparable 
economies in ensuring patients' access to innovative and valuable treatments, despite having 
some of the lowest reimbursement prices. Furthermore, the authorities indicated that, in order to 
simplify the hospital acc reditation criteria and strike a balance with the objective of promoting the 
development of new pharmaceuticals and the biotech industry (Sections 2.4.1, 3.3.1.2.3, 
3.3.1.2.4, 3.3.2. 2, 4.1.1 and 4.3.1) under the 2017 hospital accreditation criteria (for me dical 
                                                
142 More detailed information on terms for the granting of CNS Marks is availabl e in: WTO documents 
WT/TPR/S/302/Rev.1, 18 December 2015 and WT/TPR/S/232/Rev.1, 28 July 2010.  
143 BSMI (2017), 2016 Annual Report of BSMI , April 2017. Viewed at: 
https://www.bsmi.g ov.tw/wSite/public/Data/f1495182475951.pdf . 
144 BSMI (2017), 2016 Annual Report of BSMI , April 2017. Viewed at: 
https://www.bsmi.gov.tw/wSite/public/Data/f1495182475951.pdf . 
145 Econo mist Intelligence Unit (2017), Industry Report: Healthcare , 3rd Quarter, 22 August, London. 
Viewed at: www.eiu.com/healthcare .  
146 In a few special cases it attained 500 days. In 2017, the FDA refused to file (R TF) to reject 
submissions of bad quality; as a result, the review time has significantly decreased to less than 300 days. 
ECCT (2016), 2017 Position Papers , 10 November. Viewed at: http://www.ecct.com.tw/ . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  centre use), they retained articles related to the purchase of new pharmaceuticals and medical 
devices that had been approved in accordance with the "Act For The Development Of Biotech And 
New Pharmaceuticals Industry". In addition, the revised hospi tal accreditation criteria require that 
procurement activities should not contravene commitments under any treaties or agreements, 
such as the WTO Agreement on Government Procurement (GPA). Provisions related to encouraging 
hospitals to import or to purcha se new drugs of specific origin were removed from the regional and 
district hospital accreditation criteria recently.  
3.100.   In December 2015, amendments to the School Health Act banned the use of processed 
food with biotechnology ingredients in school meals. Re portedly, this ban of genetically modified 
(GM) ingredients was not supported by scientific evidence and contradicted the GM food approval 
list issued by the MOHW (Section 3.3. 3.1). According to the authorities, these amendments were 
proposed by the legisl ators and approved expeditiously therefore there has not been sufficient 
time to proceed with their WTO notification which, as of April 2018, was still pending. Some of 
Chinese Taipei's trading partners urged it to remove this ban at the 2016 Trade and Inv estment 
Framework Agreement (TIFA) Council meeting.147  
Chemical substances  
3.101.   Following the 2013 amendments to the Occupational Safety and Health Act (OSH Act) 
(formerly the Labour Safety and Health Law), importers and producers of chemical substances 
were required to register new chemical substances that they sell or utilize in production with the 
Ministry of Labour (MOL). At the same time, parallel amendments were also passed to the Toxic 
Chemical Substances Control Act (TCSCA), drafted by the Environmenta l Protection Agency 
(EPAT). The new TCSCA covers existing and new chemical substances that are manufactured in, 
exported from, or imported into Chinese Taipei. The OSH Act further mandates registering existing 
chemical substances with EPAT under an Existin g Chemical Notification (ECN) programme and new 
chemical substances under a New Chemical Notification (NCN) programme to update the Chemical 
Substance Inventory (TCSI) which currently lists more than 100,000 chemical substances. 
Pursuant to the amended TCS CA, Chinese Taipei enacted the Regulation of New and Existing 
Chemical Substances Registration.148  
3.102.   Separate registrations under the TCSCA and OSH Act became mandatory on 
14 December  2014 and 1 January 2015, respectively. In response to requests to eliminate  the 
burden of duplicative EPAT and OSH Act listings raised at the TIFA TBT working group, as from 
August 2015 EPAT has served as a consolidated single registration window. This step, along with 
the establishment of simplified registration rules, reduced r egulatory complexity. Phase one of the 
TCSCA registration process was concluded in March 2016. In May 2016, EPAT sought stakeholder 
comments to improve the operation of the ECN and NCN registration schemes, including the single 
window, and compiled a list of chemicals to be subject to standard registration to be announced in 
the course of 2018.149 Concerns also exist on the limited duration of confidential business 
information (CBI) protection.  
Other  
3.103.   An import ban on food exports from five Japanese prefectu res after the accident at 
TEPCO's Fukushima Daiichi Nuclear Power Station in 2011 remains in place (Section 3.3.2.1.2).150 
In February 2017, Chinese Taipei notified its draft amendments to the Tobacco Hazards Prevention 
Act, including plain packaging require ments, aimed to take into account principles of the WHO 
Framework Convention on Tobacco Control; these plain packaging requirements were not retained 
at the following stage (Section 3.3. 7.1.2).151  
                                                
147 The United States and ASEAN concluded the US -ASEAN Trade and Investment Arrangement (TIFA) in 
2006 and since then have been working to build US -ASEAN trade and investment ties as well as promote 
ASEAN regional economic integration. USTR (2017), 2017 Natio nal Trade Estimate Report on Foreign Trade 
Barriers . Viewed at: https://ustr.gov/sites/default/files/files/reports/2017/NTE/2017%20NTE.pdf  and ECCT 
(2016), 2017 Posi tion Papers , 10 November. Viewed at: http://www.ecct.com.tw/ . 
148 USTR (2017), 2017 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/reports/2017/NTE/2017%20NTE.pdf . 
149 USTR (2017), 2017 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/reports/2017/NTE/2017%20NTE.pdf .  
150 STC online information. Viewed at: http://spsims.wto.org/en/SpecificTradeConcer ns/View/387 .  
151 WTO document G/TBT/N/TPKM/264, 13 February 2017.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.3.2.1.2   Transparency  
3.104.   Between January 2014 and early May 2018, Chinese Taipei submitted 167 regular 
notifications to the WTO Committee on Technical Barriers to Trade; the 60 -day period for 
comments was observed for 136 regular notifications.152 The type of measures notified to the 
WTO, included 162 technical regulations  (Article 2.9) and 88 conformity assessment procedures 
(Article 5.6). Chinese Taipei did not notify any urgent technical regulations (Article 2.10) or any 
urgent conformity assessment procedures (Article 5.7); the notified measures were mainly related 
to consumer and human health protection. In addition, only 7 out of all MRAs signed in this area 
(see above) have been notified so far (Article 10.7).153 During the review period, Chinese  Taipei 
was subject to three TBT -related specific trade concerns (STCs).154 
3.3.2.2   Marking and labelling  
3.105.   Under the Commodity Labelling Act, which remained unchanged during the review period, 
all labelling must be done in Chinese and may be supplemented by a label in English or another 
language.155 In 2015, the authorities relaxed food labe lling regulations and procedures to allow 
importers to clear unlabelled goods at Customs and move the goods to their own warehouses for 
labelling; the only requirement is that the goods are labelled before they are sold.156 A traceability 
label system for lo cal products under the Safe Agricultural Products (Gi -Am-Pu) Label has been in 
place since 20 15 (Sections 3.3.2.1.1 and 3.3.3 .1).157 The MOHW remains responsible for 
overseeing and enforcing food and beverage labelling requirements.  
3.106.   Labelling requirements f or foods containing and/or derived from genetically modified food 
raw materials remain virtually unchanged. In 2015, new biotechnology labelling regulations for 
prepackaged foods, food additives, and unpackaged foods were introduced.158 Primary products 
from GM raw materials, such as soybean oil, corn starch and syrup and soy sauce, are required to 
be labelled as GM. "Secondary" products made with GM primary products, such as beverages 
containing corn syrup, are exempted from GM labelling requirements. The le ngth and width of the 
font must not be less than 2 mm and must be noticeable due to a different colour, font or 
background. The regulations impose a 3% de minimis threshold for GM labelling. These regulations 
cover restaurants and catering establishments. Fines for violating the regulations can range from 
NT$30,000 (US$1,000) up to NT$3 million (US$100,000). Business licences can be revoked for 
serious violations.159  
                                                
152 WTO TBT IMS. Viewed at:  http://tbtims.wto.org/ . 
153 WTO online information 
(http://tbtims.wto.org/en/AgreementNotifications/Search?ProductsCoveredHSCodes=&ProductsCoveredICSCod
es=&DoSearch=True&ExpandSearchMoreFields=False&NotifyingMember= Chinese+Taipei&PartiesToTheAgreem
ent=&DocumentSymbol=&DistributionDateFrom=&DistributionDateTo=&DescriptionOfContent=&SearchTerm=
&ProposedDateOfEntryIntoForceFrom=&ProposedDateOfEntryIntoForceTo=&ProductsCovered=&SubjectMatters
CoveredByAgreement ). 
154 These STCs covered: the Draft of the Organic Agriculture Act (EU, 2016); genetically modified 
organisms labelling (Australia, Canada, New Zealand, South Africa, United States, 2015); and, additional 
labelling standard of prefecture of origin for foods from Japan  (Japan, 2015). WTO TBT IMS. Viewed at: 
http://tbtims.wto.org/en/SpecificTradeConcerns/View/508 ; 
http://tbtims.w to.org/en/SpecificTradeConcerns/View/464 ; and, 
http://tbtims.wto.org/en/SpecificTradeConcerns/View/465 . 
155 WTO document WT/TPR/S/232/Rev.1, 28 July 2010 and online information. Viewed at: 
https://gcis.nat.gov.tw/elaw/English/lawEnDtlAction.do?method=viewLaw&pk=169 .  
156 The following businesses may apply for an exemption from labelling requirements if the imported 
product is over three kilograms: (i) facilities that import food products for further processing; (ii) restaurants, 
fast food outlets and bakeries that import f ood products for their own kitchens; and (iii) importers that import 
food products for further processing or repackaging (i.e. products not for direct sale to consumers). If an 
imported product is less than three kilograms, interested companies must reques t an exemption from the FDA 
in advance. Viewed online: 
https://gain.fas.u sda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricultural%20Import%20Regul
ations%20and%20Standards%20 -%20Narrative_Taipei_Taiwan_12 -16-2016.pdf ; and ECCT (2017), 2018 
Position Papers – Clearing the Hurdles to Economic Progress , November. Viewed at: 
http://www.ecct.com.tw/file/Publications/201711151808326974.pdf . 
157 Online information ( https://eng.coa.gov.tw/ws.php?id=2 505355 ). 
158 USTR (2017), 2017 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/reports/2017/NTE/2017%20 NTE.pdf . 
159 USTR (2017), 2017 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/reports/2017/NTE/2017%20 NTE.pdf  and WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.3.3   Sanitary and phytosanitary measures  
3.3.3.1   Food standards -setting framework  
3.107.   During the review per iod, the main laws and regulations affecting food standards and 
specification remained the Act Governing Food Safety and Sanitation (last amended in 
January  2018) and its Enforcement Rules (amended in July  2017), and the Regulations of 
Inspection of Import ed Foods and Related Products (amended in June 2015). The main change 
was the raising of the legal standing of the rules on claims of medical efficacy to regulation level.  
3.108.   The MOHW remains responsible for food safety with its key implementing agency, the FDA 
(Section 3.3.2.1.1), responsible for consumers' health protection by: creating sound legal 
standards and reviewing mechanisms; implementing the food source management; establishing 
detailed quality chain monitoring systems; pushing forward laboratory r esponsibilities and 
capabilities; putting in place risk management systems; and proactively strengthening consumer 
protection and communication channels.160  
3.109.   During the review period, the FDA continued to amend food -related laws and regulations to 
comply wit h international standards. Its focus areas included: amendments to food regulatory 
standards and product review; management of food sources, in particular implementing a food 
safety control system and border inspection of food; inspection of food additives ; monitoring of the 
food safety chain including post marketing monitoring, sampling and testing of food; and food 
safety and sanitation management.161  
3.110.   Chinese Taipei is a member of the World Organization for Animal Health (OIE), but it is not 
a member of th e Codex Alimentarius Commission or the International Plant Protection Convention 
(IPPC).162 Bilateral arrangements on promoting mutual cooperation on SPS issues exist with 
Australia, Canada, China, the European Union, France, Hung ary, Italy, India, Japan, 
Korea (Rep.  of), Thailand, the Netherlands, New Zealand, the Philippines, Poland, South Africa, 
Spain, Sweden, the United Kingdom, the United States and Viet Nam.163  
Maximum residue levels  
3.111.   MOHW remains responsible for setting and promulgating maximum residue  limits (MRLs); 
the Codex standards are not automatically adopted.164 The legislative framework regulating MRLs 
includes, inter alia : Standards for Pesticide Residue Limits in Foods, Standards for Pesticide 
Residue Limits in Animal Products, and Standards fo r veterinary drug residue limits in food.165 
Chinese Taipei amends regulations on MRLs on average four times per year to remain in line with 
the latest safety assessment information. The 2017 amendments to Standards for Pesticides 
Residue Limits in Foods cov ered 128 residue limits of 22 pesticides in 66 food categories which 
were either added or changed.166  
                                                                                                                                                  
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%2 0and%20Agricultural%20Import%20Regul
ations%20and%20Standards%20 -%20Narrative_Taipei_Taiwan_12 -16-2016.pdf . 
160 MOHW (2017), 2016 Chinese Taipei Health and Welfare Report , January 2017. Viewed at: 
https://www.mohw.gov.tw/cp -137-521-2.html .  
161 Food businesses are required to use Hazard Analysis and Critical Control Points (HACCP) systems to 
prevent food hazards and establish a food safety management task force. In 2015, there were 640,000 
batches of food  imports and related products, of which 50,149 were tested. MOHW (2017), 2016 Chinese 
Taipei Health and Welfare Report, January 2017. Viewed at: https://www.mohw.gov.tw/cp -137-521-2.html . 
162 WTO docu ment WT/TPR/S/302/Rev.1, 18 December 2015.  
163 SPS measures are also covered in the RTAs with El Salvador, Guatemala, Honduras, New Zealand, 
Nicaragua, Panama and Singapore. WTO document WT/TPR/S/302/Rev.1, 18 December 2015.  
164 USDA Foreign Agricultural Service (2016), Food and Agricultural Import Regulations and Standards – 
Narrative, December. Viewed at: 
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricul tural%20Import%20Regul
ations%20and%20Standards%20 -%20Narrative_Taipei_Taiwan_12 -16-2016.pdf . 
165 In addition, standards for heavy metals are listed under Standards for Tolerance of Heavy Metals in 
Plant Origin , and standards for infant foods under Standards for Sanitation and Pesticide Residue Limits in 
Infant Foods. USDA Foreign Agricultural Service (2016), Food and Agricultural Import Regulations and 
Standards – Narrative, December. Viewed at: 
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricultural%20Import%20Regul
ations%20and%20Standards%20 -%20Narrative _Taipei_Taiwan_12 -16-2016.pdf . 
166 Online information. Viewed at: http://resources.selerant.com/food -regulatory -news/taiwan -march -
updates -for-pesticide -mrls. WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.112.   Incoming fruit, vegetables, meat and other food products are subject to inspection and 
testing by FDA inspectors at the port of entry for pesticides, animal drugs and other contaminants 
such as heavy metals. All established MRLs are implemented across the board for both incoming 
and locally produced products. All incoming merchandise is subject to market entry inspection 
upon arrival whereas local produ cts are subject to surveillance or monitoring, reportedly, at a 
much lower inspection frequency.167 The authorities indicated that the entry control measures are 
based on the "Regulations of Inspection of Imported Foods and Related Products" which are 
risk-based and take into consideration the violations record of importers; as a result the target 
items, mechanism and criteria for sampling of the entry point inspection and local surveillance 
differ.  
3.113.   With respect to imports of corn and soybeans, a declaration , which states whether the 
shipment is intended for feed/industrial use or food use, is required at Customs upon arrival. 
Incoming rice is subject to batch -by-batch testing for pesticide residues, heavy metals, aflatoxin, 
and mycotoxins. The tests are gene rally completed within 3 -5 working days; should the test 
exceed five days, incoming rice may be released into approved warehouses with an importer 
affidavit  awaiting the outcome of the test. During this time, the product cannot be sold on the 
market.168  
3.114.   Reportedly, Chinese Taipei's slow process for establishing MRLs for pesticides, low number 
of approved MRLs, and zero tolerance policy for pesticides without established MRLs have resulted 
in incoming agricultural shipments being stopped at the ports of entry  and other restrictions. 
Concerns also relate to MRLs that are considered not Codex standards - or science -based.169 In 
2014, the COA devised a set of review standards to ensure consistency in the treatment of 
overseas test reports on field efficacy and resid ues. The authorities indicated that they follow the 
principle of establishment of pesticide MRLs consistent with international standards on the basis of 
scientific principles, and in line with the COA's requirements for using pesticide. Furthermore, the 
levels at which the MRLs are set depend on the dietary pattern and total intake in Chinese Taipei, 
and they are eventually established on the basis of risk assessments. The process of evaluating 
the pesticide MRLs of incoming crops is subject to the same pri nciples as those for local crops.  
Food additives  
3.115.   The FDA's Standards for Scope, Application and Limitation of Food Additives prescribe 
strict tolerance levels and acceptable use requirements for processed food products that contain 
artificial food additi ves. As of February 2018, the Standards for Specification, Scope, Application 
and Limitation of Food Additives cover over 800 food additive standards and regulations.170 
Additives not contained in the list are prohibited for use in foodstuffs in Chinese Taip ei.171  
3.116.   Article 35 of the Act Governing Food Safety and Sanitation stipulates that when importing 
food additive combinations, food businesses must attach a product ingredient report issued by the 
manufacturer or responsible manufacturer of the country of ori gin and an official sanitary 
certificate issued by the exporter.172 To add a new food additive to the Standards for Scope, 
                                                
167 USDA Foreign Agricultural Service (2016), Food and Agricultural Import Regulations and Standards – 
Narrative, December. Viewed at: 
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricultural%20Import%20Regul
ations%20and%20Standards%20 -%20Narrative_Taipei_Taiwan_12 -16-2016.pdf . 
168 USDA Foreign Agricu ltural Service (2016), Food and Agricultural Import Regulations and Standards – 
Narrative, December. Viewed at: 
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricultural%20Import%20Regul
ations%20and%20Standards%20 -%20Narrative_Taipei_Taiwan_12 -16-2016.pdf . 
169 USTR (2017), 2017 National Trade Estimate Repor t on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/reports/2017/NTE/2017%20NTE.pdf .  
170 A complete list of food additives is available  at: 
https://consumer.fda.gov.tw/Law/Detail.aspx?nodeID=518&lang=1&lawid=241 .  
171 In addition, a searchable list of food additives is available at: 
https://consumer.fda.gov.tw/Food/FoodAdd.aspx?nodeID=161  (in Chinese), and in: USDA Foreign Agricultural 
Service (2016), Food and Agricultural Import Regulations and Standards – Narrative, December 2016. Viewed 
at: 
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20 and%20Agricultural%20Import%20Regul
ations%20and%20Standards%20 -%20Narrative_Taipei_Taiwan_12 -16-2016.pdf . 
172 This regulation does not apply to flavouring agents. Act Governing Food Safety and Sanitation. 
Viewed at: WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Application and Limitation of Food Additives, a manufacturer or a designated representative must 
send a formal application accompanied by several documents to the MOHW which evaluates the 
acceptability of these additives and makes a formal determination within four to six months.173  
Genetically modified raw materials  
3.117.   Chinese Taipei is one of the major importers of genetically modified (GM)  crops. Its 
regulatory and institutional framework remained virtually unchanged during the review period.174 
In 2015, the Feed Control Act was amended to contain a legal basis for managing GM feeds. 
Since  2014, an Advisory Committee in Genetically Modified F oods has been in place to: formulate 
genetically modified foods policies and strategies; and study and formulate genetically modified 
foods related plans and other genetically modified foods related matters.175 All genetically modified 
food raw materials (GM FRM) must be reviewed by the competent authority in health risk 
assessment; product registration must be filed for and a permit document procured from the 
competent authority (Article 21 of the Act Governing Food Safety and Sanitation).176 Importers of 
GMFRM  must file for product registration, obtain a permit document and then install a traceability 
system for tracing the source and tracking the flow of the GMFRM (Sections 3.3.2.1.1 
and 3.3.2. 2). A grace period of two years was given to unregistered GMFRM already present on the 
market until 2016. Food businesses in Chinese Taipei must retain records, documents, electronic 
files, or a database of incoming products and GMFRM for a period of five years. As at 
January  2018, Chinese Taipei had approved 130 GM fo ods.177  
3.3.3.2   Quarantine regulations  
3.118.   During the review period, most of the main laws and regulations on quarantine 
requirements have been amended. They include: the Statute for Prevention and Control of 
Infectious Animal Diseases (amended in December 2014), the Plant Protection and Quarantine Act 
(amended in June 2014), the Enforcement Rules of the Plant Protection and Quarantine Act 
(amended in December 2015), the Quarantine Requirements for the Importation of Animals or 
Animal Products (amended in June 2017), a nd Quarantine Requirements for the Importation of 
Plants and Plant Products (amended in October 2017). The amendments concerned inter alia  
clarification of the provisions of Article 5 of the Enforcement Rules of the Plant Protection and 
Quarantine Act. It lists some plant protection or plant quarantine matters that may be addressed 
by relevant agency representatives, private organizations, or individuals authorized by the 
competent or plant quarantine authority whenever necessary.178  
                                                                                                                                                  
https://consumer.fda.gov.tw/Law/Detail.aspx?nodeID=518&lang=1&lawid=292&k=%u98DF%u54C1%u5B89
%u5168%u885B%u751F%u7BA1%u7406%u6CD5% u65BD%u884C%u7D30%u5247 . 
173 USDA Foreign Agricultural Service (2016), Food and Agricultural Import Regulations and Standards – 
Narrative, December 2016. Viewed at: 
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricultural%20Import%20Regul
ations%20and%20Standards%20 -%20Narrative_Taipei_Taiwan_12 -16-2016.pdf . 
174 The legal framework contains, inter alia : the Rules for conduct in respect to Genetic Recombination 
Experiment and Fundamental Science and Technology Act under MST; the Plant Variety and Plant Seed Act, the 
Animal Industry Act, the Fishery Law and the Feed Control Act under COA; and the Act governing Food Safety 
and Sanitation under MOHW's FDA. Its institutional framework comprises: (i) the Ministry of Science and 
Technology (MST) in charge of laboratory researches; (ii) the Council of Agriculture (COA)  in charge of 
environment and feed safety; and (iii) the MOHW responsible for food safety. Food Industry Research and 
Development Institute (2016) , Regulations and safety assessment for genetically modified foods and feeds in 
Chinese Taipei presented by We n-Shen Chu, July. Viewed at: http://ilsi.org/taiwan/wp -
content/uploads/sites/19/2017/02/%E6%BC%94%E8%AA%AA%E6%AA%94%E6%A1%88 -
%E6%9C%B1%E6%96%87%E6%B7%B1%E5%8D%9A%E5%A3%AB -
%E5%8F%B0%E7%81%A3%E5%9F%BA%E5%9B% A0%E6%94%B9%E9%80%A0%E4%BD%9C%E7%89%A
9%E6%B3%95%E8%A6%8F%E8%88%87%E5%AE%89%E5%85%A8%E6%80%A7%E8%A9%95%E4%BC%
B0.pdf ; and WTO document WT/TPR/S/302/Rev.1, 18 December 2015.  
175 Regulations Governing the Establishment of the Advisory Committee in Genetically M odified Foods. 
Viewed at: http://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?PCode=L0000062 . 
176 Act Governing Food Safety and Sanitation. Viewed at: 
https://consumer.fda.gov.tw/Law/Detail.aspx?nodeID=518&lang=1&lawid=292&k=%u98DF%u54C1%u5B89
%u5168%u885B%u751F%u7BA1%u740 6%u6CD5%u65BD%u884C%u7D30%u5247 . 
177 Online database of approved GM foods in Chinese Taipei. Viewed at: 
https://consumer.fda.gov.tw/Food/GmoInfoEn.aspx?nodeID=300# . 
178 Information prov ided by the authorities.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.119.   The Bureau of Animal and  Plant Health Inspection and Quarantine (BAPHIQ), under the 
COA, continues to be responsible for animal and plant quarantine as well as for quarantine services 
and prevention and control of important animal and plant diseases and pests. The FDA remains in 
charge of the safeguarding, quality and sanitation of all agricultural imports. BAPHIQ is the WTO 
SPS enquiry point. COA's Agriculture and Food Agency (AFA) oversees such programmes as rice 
procurement and organic certification.179  
Phytosanitary measures  
3.120.   Incoming plants and plant products must have a phytosanitary certificate issued by the 
plant quarantine authority of the exporter or an electronic certificate with the agreement of the 
Chinese  Taipei's plant quarantine authority; the latter has not been in p lace as there has been no 
such agreement so far.180 Imports of soils; plants, plant products or other articles with soil; pests; 
antagonist or competitor and other organisms used as biological control agents for controlling 
pests; and packages or containers used by or harbouring the above mentioned articles are 
forbidden unless they are applied for experimental, research, educational or exhibitive use by 
governmental agencies, public enterprises, schools, corporations or organizations founded and 
registered u nder relevant laws, and approved by the competent authority.181 Prior to importation 
all relevant documents/data for risk assessment must be submitted for approval.182 Although 
certificates issued by the exporter's competent authorities are generally accepted,  in a few cases 
certificates issued by organizations or agencies accredited or authorized by the competent 
authority may also be accepted.183 The authorities indicated that there have been no new 
phytosanitary bans imposed since 2014.  
Sanitary measures  
3.121.   Anima ls and animal products remain subject to inspection and quarantine.184 The 
import/export of items subject to quarantine can only be handled by quarantine authorities or 
authorized organizations (Article 32 of the Statute). Risk assessment by the animal quara ntine 
authority is required for a first -time application for importation of animals or animal products.185  
3.122.   At present, Chinese Taipei bans the entry of animals and animal products from territories 
infected with foot -and-mouth disease, rinderpest, contagious  bovine pleuropneumonia and African 
swine fever. In addition, the following animals are prohibited from importation: (i) bovines from a 
zone affected by Bovine spongiform encephalopathy (BSE); (ii) elephants from a zone affected by 
                                                
179 USDA Foreign Agricultural Service (2016), Food and Agricultural Import Regulations and Standards – 
Narrative, December. Viewed at: 
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricultural%20Import%20Regul
ations%20and%20Standards%20 -%20Narrative_Taipei_Taiwan_12 -16-2016.pdf . 
180 If importers fail to submit phytosanitary certificates or if their certificates contain information 
inconsistent with the pertinent quarantine requirements, the plant quarantine authority can demand that 
importers submit the corrected certificates within a specified period of time, impose quarantine measures, 
re-export, or destroy imports. Article 16 of Plant Protection and Quarantine Act. Viewed at: 
http://law.moj.gov.tw/ENG/LawCl ass/LawAll.aspx?PCode=M0140001 .  
181 Article 15 of the Plant Protection and Quarantine Act online information. Viewed at: 
http://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?PCode=M0140 001. 
182 All the documents can be found under Article 11 of the Enforcement Rules. Viewed at: 
http://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?PCode=M0140 . 
183 USDA Foreign Agricultural S ervice (2016), Food and Agricultural Import Regulations and Standards – 
Narrative, December. Viewed at: 
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricultural%20Import%20Regul
ations%20and%20Standards%20 -%20Narrative_Taipei_Taiwan_12 -16-2016.pdf .  
184 These include: bovines, water buffaloes, horses, mules , donkeys, camels, sheep, goats, rabbits, pigs, 
dogs, cats, fowls, turkeys, ducks, geese, eels, prawns, tilapia, milkfish, salmons, trout, and other animals 
(Article 3 -4), other animals of similar breeds, or animals which can be affected by infectious anim al diseases, 
and their carcasses, bone, flesh, internal organs, fats, blood, hide, hair, feather, horns, hooves, tendons , milk, 
blood powder, eggs, sperm, embryos, and other objects which could spread a nimal epidemic disease 
(Article  5). Statute for Preve ntion and Control of Infectious Animal Disease, viewed at: 
http://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?PCode=M0130003 . 
185 Detailed information on the importation/exportation procedure of objects subjected to quarantine can 
be found in Chapter 4 of the Statute for Prevention and Control of Infectious Animal Disease (viewed at: 
http://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?PCode=M0130003 ) and Article 9 -10 of the Quarantine 
Requirements for the Importation of Animals and Animal Products (viewed at: 
https://www.baphiq.gov.tw/files/web_articles_files/baphiq/14984/16959.pdf ). WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  foot-and-mouth disease; (iii) perissodactyl animals from zones affected by glanders; and 
(iv) poultry and birds from zones affected by highly pathogenic avian influenza. Animal products 
prohibited from importation include: (i) products with disease -transmission potential derived from 
perissodactyl animals from zones affected by glanders; (ii) poultry from territories (zones) 
recognized as infected with highly pathogenic avian influenza or Newcastle disease; and 
(iii) products with potential to transmit BSE from territories (zones)  with reported case(s) of 
BSE.186 Imports of fishery products (live, fresh, chilled, or frozen) require a certificate of origin 
issued by either the authorities of the exporting territory or its authorized representative.187  
Fees 
3.123.   Quarantine authorities contin ue to levy service charges for operations such as on -site 
inspection at a rate of NT$500 per batch of consignment188; other inspection fees (e.g. animal 
holding fees, carcass burning fees, document handling fees, etc.) are imposed at the actual cost of 
the service  and in line with the "Regulations Governing Fees for Animal and Plant Quarantine".189 
The quarantine fee for incoming animals and plants is charged at 0.1% (0.05% for wheat, barley, 
corn, and soy beans) of the c.i.f. value for imports and the f.o.b. v alue for exports.190 To assess 
the cost of quarantine services, price fluctuations and changes in several factors are taken into 
consideration. The quarantine fees charged for incoming animals and plants are based on th e 
c.i.f. value for imports; these fees have been under ongoing review and discussion since  2017.  
3.3.3.3   Transparency  
3.124.    Between January 2014 and early May 2018, Chinese Taipei submitted 261 notifications to 
the WTO Committee on Sanitary and Phytosanitary Measures: 232 were regular notifications, 
7 were emergency notifications, and the remaining notifications were addenda. Chinese Taipei 
applied the 60 -day period for comments for 49 notifications.191 All notified SPS measures related 
to international standards, guidelines or recommendations. Chinese Taipe i was subject to one 
SPS/TBT -related STC regarding import restriction in response to the 2011 nuclear plant accident in 
Japan (Section 3.3.2.1.2).  
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.125.   Competition policy remains mainly regulated by the Fair Trade Act (FTA) and relevant 
implementing regulations, policy statements and guidelines most of which were amended during 
the review period (Table A3.9).192 All activities and conduct of enterprises (including publicly 
owned enterprises) are covered by the FTA.193 Competition issues related to certain activities are 
also subject to sector -specific legislation, such as the Banking Law, the Financial Holding Company 
Act, the Financial Institutions Merger Act, the Insurance Act, the telecommunications rules a nd 
laws regulating professionals and the practice of fee standards set by professional associations. 
The FTA has precedence over other laws with respect to competition except when these laws 
contain relevant provisions that are not in conflict with its leg islative purposes. The Fair Trade 
Commission (FTC) remains the competent authority for the formulation and implementation of 
competition policy; however, according to the authorities, for any matter covered by the FTA and 
                                                
186 Article 6 of the Quarantine Requirements for the Importation of Animals and Animal Products. Viewed 
at: https://www.baphiq.gov.tw/files/web_articles_files/baphiq/14984/16959.pdf . 
187 Viewed at: 
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricultural%20Import%20Regul
ations%20and%20Standards%20 -%20Narrative_Taipei_Taiwan_12 -16-2016.pdf . 
188 Multiple batches a t the same site are counted as one batch. Service charges for on -site inspections 
are not applied to inspections conducted at warehouses, container terminals or other locations where the 
offices of the BAPHQ are located. Article 10 of Regulations Governing  Fees for Animal and Plant Quarantine, 
amended 20 February 2014.  
189 A cap is imposed on this service charge at 15% when carried out by private practitioners.  
190 Economist Intelligence Unit (2017), Country Commerce , June, London. Viewed at: www.eiu.com . 
191 WTO SPS IMS. Viewed at: http://spsims.wto.org/ . 
192 The text of the Fair Trade Act is available at the FTC's website: 
https://www.ftc.gov.tw/internet/english/doc/docList.aspx?uid=1294 .  
193 Article 46 of the FTA.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  involving other ministries or comm issions, the FTC may consult with them.194 Industrial policy 
goals have been addressed in the FTC's policy making process through consultations with the 
stakeholders concerned.  
3.126.   During the review period, the FTA was amended three times (4 February 2015, 
24 June 2015 and 14 June 2017). Its February 2015 amendments, covering 70% of its provisions, 
were considered the widest in range, the largest in scale and the most influential legal reforms 
since its entry into force. Significant amendments on the aspect of f ree competition included: the 
FTC's independence and exclusive responsibility for FTA enforcement; the distinction of free 
competition issues from fair competition issues; the threshold in the definition of monopolistic 
enterprises; the revision of merger regulations and investigation rules; and the establishment of 
an anti -trust fund to subsidize expenses from litigation, to provide rewards for the reporting of 
illegal concerted actions, to support relevant research, education and advocacy, and to promote 
international cooperation.195  
3.127.   The FTA addresses monopolistic actions, concerted actions, mergers, as well as unfair 
competition. With regard to monopolistic actions, monopolistic enterprises are prohibited from 
abusing their market power. Where the market s hare exceeds the aforementioned thresholds, an 
individual enterprise would not be deemed as a monopolistic enterprise if its market share does 
not exceed one tenth of the relevant market or its total sales in the preceding year are less than 
NT$2 billion.196 The FTA generally prohibits competing enterprises from engaging in concerted 
action,  such as fixing price, quantity, or market share, which would have an impact on the 
functioning of the market; exemptions may include actions that are beneficial to the ec onomy as a 
whole, in the public interest and meet certain conditions. It requires that on the basis of market 
share or sales criteria, certain mergers be notified to the FTC in advance. The FTA does not apply 
to any proper conduct in connection with the ex ercise of IP rights pursuant to the provisions of the 
Copyright Law, Trademark Law, or Patent Law.197 
3.128.   The FTC may initiate investigations, upon receiving complaints or ex officio , into any 
alleged violation that harms the "public interest". Since November 2011, a leniency programme 
has been in place to encourage enterprises to report illegal concerted action, submit evidence and 
assist investigations.198 Where a violation related to monopolistic action, concerted action, resale 
price fixing, or other competit ion-restraining action is found, the FTC may order the relevant 
enterprise to cease the violation and correct its conduct within a prescribed period. The FTC may 
also issue an administrative penalty ranging between NT$100,000 and NT$50 million . If the 
relevant enterprise fails to cease the violation or take corrective action, the FTC may issue an 
order with a higher administrative penalty ranging between NT$200,000 and NT$100 million until 
the enterprise complies with the FTC's order. In the case of serious  violations related to 
monopolization and concerted action, the FTC may impose an administrative penalty of up to 10% 
of the total sales income of an enterprise in the previous fiscal year.   
3.129.   Failure to comply with FTC orders  regarding monopolization or con certed action may be 
subject to  a punishment of imprisonment of up to three years, or a fine of no more than 
NT$100  million, or both. For failure to comply with FTC orders regarding resale price fixing or other 
competition -restraining actions, the imprison ment would be up to two years and the fine would be 
up to NT$50 million. FTC decisions may be appealed at the Appeal and Petition Committee, and if 
necessary, furthered to the Administrative Court; following the February 2015 FTA amendments 
appeals may als o be addressed directly to the Administrative Court. Enterprises injured by a 
competition rules violation may file a claim for compensation at a court. The compensation should 
not exceed three times the amount of damages that is proven.  
                                                
194 Sub-paragraph 2 of Article 6 of the FTA.  
195 According to Article 47 -1 of the FTA, 30% of the fines imposed according to the FTA are put into the 
fund. Other capital sources of the fund include interest accrued on the fund, budgetary allocations and other 
relevant incomes. By the end of 2017, the to tal amount of the fund was NT$241.69 million (99.96% fines, 
0.04% interests accrued).  
196 Decree of the Fair Trade Commission on 4 March 2015. Viewed at: 
https://www.ftc. gov.tw/upload/9f149c0a -dd41-4efe-9784-7de5ace54ed1.pdf .  
197 Article 45 of the FTA.  
198 Article 35 of the FTA and the Regulations on Immunity and Reduction of Fines in Illegal Concerted 
Action Cases.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.130.   In the period 2012 -2017, the FTC opened investigations into 13,898 cases, of which only 
13.6% were self -initiated and 11.5% related to requests of opinion (Table 3.6); a total amount of 
about NT$37.5 billion was imposed with peaks in 2014, 2015 and 2017. In 2015, the FTC im posed 
a NT$5.7  billion fine, the third largest fine in its history on a group of manufacturers of electronic 
capacitors (devices used for storing electricity temporarily), a group of companies including Nippon 
Chemi -Con Corporation and NEC TOKIN Corporatio n, both of Japan, as well as the US -based 
Vishay Polytech, for holding regular meetings to restrict competition and keep prices higher than 
the market level.199 In mid -February 2015, it concluded its ex officio  investigation on Qualcomm's 
monopolistic conduc t and found that the company, a world leader in 3G and next -generation 
mobile technologies, was abusing its monopolistic status in the market of baseband chips; a fine of 
NT$23.4 billion, the largest amount ever imposed since FTC's establishment, was impos ed on 
Qualcomm.200 In May 2016, the FTC imposed a fine of NT$72.6  million on 21 container freight 
station operators for engaging in illegal concerted action to collect facility fees for export goods. In 
2017, apart from the Qualcomm case, the FTC sanctioned:  three TV channel agents for failing to 
rectify their illegal conduct that offered different transaction terms when licensing broadcasting 
rights to incumbents and newcomers; six cable TV operators for preventing competitors from 
engaging in competition by  inducement with low prices, or other improper means; ten franchisers 
for not fully disclosing to trading counterparts important franchise information during franchisee 
recruitment; and a large pharmaceutical  company for implementing resale price maintenan ce. 
Table 3.6 Competition policy enforcement statistics, 2012 -17  
Number of cases  2012  2013  2014  2015  2016  2017  
Cases opened  2,555  2,279  2,375  2,090  2,311  2,288  
Cases received: sub total  2,114  1,973  2,001  1,666  1,960  1,960  
Complaint  1,955  1,623  1,538  1,302  1,586  1,671  
Application for concerted action  10 4 8 15 5 7 
Mergers  52 51 68 60 71 43 
Request of opinion  97 295 387 289 298 239 
Self-initiated investigations  441 306 374 424 351 328 
Cases processed        
Cases concluded in current year, total  1,895  1,643  1,642  1,283  1,543  1,727  
Ruling on the violation of the FTA  86 102 77 37 42 36 
No-action decision  316 276 199 101 129 104 
Administrative action  6 1 2 - 2 1 
Review terminated  1,340  1,160  1,275  1,108  1,325  1,484  
Cases consolidated  147 104 89 37 44 102 
Fine (NT$ million)  366.6  1,336.9  6,140.5  5,860.8  267.6  23,516.3  
Anti-competitive practice  307.8  1,278.1  6,105.1  5,829.4  205.9  23,422.5  
Unfair trade practice  46.6 49.6 30.9 20.9 53.6 45.0 
Improper multi -level sales or violation of the 
Multi-Level Marketing Supervision Act  12.1 8.2 4.5 10.6 8.1 15.8 
Others  0.15 0.95 - - - - 
Appeals        
Cases concluded in current year, total  147 112 90 19 10 10 
Rejected  119 81 70 15 6 9 
Original decision repealed  17 8 12 1 - - 
Not accepted  11 11 8 2 3 1 
Withdrawn  - 1 - 1 1  
Partially rejected (or not accepted)  - 2 - - - - 
Cases pending  37 25 20 13 11 13 
Source:  Information provided by the authorities.  
3.131.   The FTC maintains competition cooperation arrangements/agreements with its 
counterparts in Australia, Canada, France, Hungary, Japan, Mongolia, New Zealand and Panama; 
no new agreements were signed during the review period.201 The FTC is a member of the 
International Competition Network (ICN) and participates in ICN's activities regularly. Competition 
advocacy is also an important aspect of the FTC's duties. In 2017, the FTC organized 81 advocacy 
activities for enterprises and t he general public. It also held training workshops on competition 
policy for business managers, lawyers, and government officials.  
                                                
199 Economist Intelligence Unit (2017), Country Commerce , June , London. Viewed at: www.eiu.com . 
200 FTC News Release, 11 October 2017, viewed at: 
https://www.ftc.gov.tw/internet/english/doc/ docDetail.aspx?uid=179&docid=15247 .  
201 Online information viewed at: https://www.ftc.gov.tw/internet/english/doc/docList.aspx?uid=1075 .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.3.4.2   Price controls  
3.132.   The Price Stabilization Committee remains responsible for work in this area.202 Whenever 
necessary, it coordin ates the supply and demand of relevant goods and services with a view to 
stabilizing their prices. To promptly respond to inquiries from the Price Stabilization Committee, 
the Commodity Price Supervisory Board continues to monitor price changes and supply of bulk 
commodities and important livelihood products. On 31 March 2015, the NDC development council 
established an online Price Information Platform to provide the general public with access to 
comprehensive information on current and historical prices of  livelihood products. Trade -related 
measures may be adopted to stabilize prices (Section 3.1.3.7).203  
3.133.   Chinese Taipei maintains price monitoring over energy products (electricity, gasoline, 
diesel, gas, and natural gas, etc.), construction materials (iron an d steel, sands and stones etc.), 
bulk commodities (e.g. wheat, corn, soybeans, flour, milk powder, cooking oil, salt), 
pharmaceuticals and telecom services . The cost of most new drugs is reviewed almost once a year, 
and has resulted in several price reduct ions in recent years, seemingly making Chinese Taipei a 
less attractive market for overseas pharmaceutical companies; the NHIA health insurance 
administration cut prices on 7,392 drugs in April 2016.204  
3.134.   Price-stabilization measures remain in place at upstre am, mid -stream, and downstream 
levels, as well as some production support measures (Table 3.7, Sections 3.3.1.2.4, 4.1.1.1 
and 4.2.2.3). Taking into account people's livelihood requirements, economic development 
objectives and local industry competitivenes s, the current floating price adjustment mechanism for 
domestic gasoline and diesel fuel of the publicly owned petroleum company (CPC Corporation) 
regulates their pre -tax wholesale price so as to keep it at the lowest level among neighbouring 
East Asian ec onomies, such as: Japan; Korea (Rep. of); Hong Kong, China; and Singapore 
(Sections  3.3.5 and 4.2.2.3). Domestic airlines abide by a maximum discount on ticket prices 
which can be made as a seasonal adjustment of 50%.  
Table 3.7 Price -stabilization measures  
Commodities  Measures  
Upstream: incoming bulk 
commodities, and farm -
gate prices of agricultural 
products  - Monitoring price changes in the international market for bulk commodities 
(wheat, corn, soybeans, fl our, milk powder and cooking oil);  
- reducing tariffs "dynamically" on some milk powder, butter, corn flour, soy flour, 
apple, nectarine, kiwifruit and goose meat;  
- exempting from business tax (corn);  
- limiting price rises of some publicly owned enterprise products: for example, 
"Taiwan Sugar Corporation" was required to stabilize the price of its small packets 
of sugar, and to keep its salad oil prices at the lowest level in the market;  
- keeping track of daily movements in farm -gate and wholesale prices of key 
agricultural products. Activating relevant production and marketing modulation 
measures when necessary. 
Mid-stream: reducing 
transportation costs, and 
strictly investigating 
cartels  - Subsidizing oil used by farmers and fishermen: exempted from the 5% Business 
Tax; subsidizing gasoline and diesel used by fishermen by 14% of the price;  
- strengthening investigation of mid -stream cartels or illegal hoarding.  
Downstream: monitoring 
market prices, setting up 
special anti -inflation 
areas, and strictly 
punishing illegal hoarding 
or price gouging  - Stabilizing market prices of agricultural products (rice, vegetables, meat);  
- setting up mechanisms for checking market prices: price checks by the MOEA, 
the Consumer Protection Committee, and  the FTC;  
- setting up special anti -inflation areas in stores, and working in coordination with 
businesses to fight inflation;  
- strengthening the investigation of cartels, illegal hoarding, and price gouging  
- enhancing transparency on price information.  
                                                
202 Members of the Price Stabilization Committee include, among others, the Ministries of Economic 
Affairs, Finance, Transportation and Communication, Health and Welfare, the Central Bank (CBC), the Council 
of Agriculture (COA), the Fair Trade Commission (FTC ), the Public Construction Commission (PCC), and the 
NDC development council.  
203 Online information available at: http://www.ey.gov.tw . 
204 Economist Intelligence Unit (2017), Industry Report: Healthcare , 3rd Quarter, 22 A ugust, London. 
Viewed at: www.eiu.com/healthcare . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Commodities  Measures  
Dedicated measures to 
stabilize the price of fruits 
and vegetables  - Establishing an Integrated Online Market Information System for Fruits and 
Vegetables on 1 May 2017;  
- increasing vegetable storage capacity;  
- establishing an emergency mechanism to inc rease vegetable imports prior to 
possible typhoon strikes;  
- establishing vegetable security stock;  
- increasing the number of stores for the supply of cheap vegetables;  
- increasing agricultural production facilities such as greenhouses;  
- strengthening p rice check when there are typhoon alarms;  
- establishing task forces to respond to possible natural disaster strikes.  
Source:  NDC online information. Viewed at: 
https://www.ndc.gov.tw/Content_List.aspx?n=E2D7F614ADB04163 .  
3.3.4.3   Consumer protection  
3.135.   The Consumer Protection Act was amended on 17 June 2015.205 Major changes brought to 
the Act concern: the use of standard contracts; distance sales and door -to-door sales; and  
consumer suits.206 The Enforcement Rules of the Consumer Protection Act were amended 
accordingly on 31 December 2015; the same day, the Regulations on Reasonable Matters as 
Exceptions to Rescind the Distance Sales were enacted to specify rules related to th e amendment 
of the Act. As a result of these amendments, consumers' rights appear to be generally 
strengthened. The Consumer Protection Committee remains responsible for organizing 
consultations and conducting reviews of consumer protection related policie s, enforcement of 
regulations, and other relevant issues. In  2017, there were 42,820 consumer complaints 
registered online on its website.  During the review period, the leading categories of consumer 
disputes were related to online gaming (3,102 cases); cl othing, leather and shoes (3,011 cases); 
telecommunication services (2,839  cases), mobile phone and peripheral products (2,555 cases); 
and the cram schools system (1,449 cases).  
3.3.5   State trading, state -owned enterprises, and privatization  
3.136.   During the review p eriod, public -sector  involvement in the economy has remained 
relatively unchanged and spread over several activities including rice, sugar, tobacco and liquor, 
petroleum, aerospace, shipbuilding, electricity, water supply, banking and finance, engineering,  
and postal services; market monopolies are retained in electricity, water supply and postal 
services (Table  3.8).207 Publicly owned enterprises continue to be managed mostly by ministries 
including the MOEA, the Ministry of Transportation and Communications, and the MOF.208 The 
government retains control over some already entirely or partly privatized enterprises, includi ng 
through managing appointments to boards of directors.209 As at April 2018, there were 18 publicly 
owned enterprises operating in Chinese Taipei (see below); their contribution to GDP rose from 
3.4% (2013) to 4.3%  (2016), whereas their share in gross fixed  capital formation dropped from 
5.5% to 4.6%. Between 2014 and 2016, the publicly owned enterprises'  total assets rose from 
NT$18.7  trillion to NT$19.7 trillion, and their net profit rose from NT$232 billion to 
NT$365.1  billion with only two companies regi stering losses (CPC Corporation and "Taiwan Railway 
Administration"). Despite a drop in 2015, these enterprises emplo yed 116,783 persons in 2016. 
In 2015, revenue from surpluses of public enterprises and public utilities, albeit gradually 
declining, accoun ted for 9.8% (11.2% in  2013) of net government revenue and remained its 
                                                
205 Consumer Protection Committee online information. Viewed at: 
https://www .cpc.ey.gov.tw/cpc_en/Content_List.aspx?n=1680CAE13C36FA16 .  
206 More information on these amendments is provided online by the Consumer Protection Committee 
at: 
https://www.cpc.ey.gov.tw/cpc_en/News_Content.aspx?n=F66FD3CFB8AED49D&sms=D5B062E5C3E2CFD2&s
=E12F415F444EDD26 .  
207 BTI (2016), Chinese Taipei Report . Bertelsmann Stiftung, 2016. Available at: https://www.bti -
project.org/fileadmin/files/BTI/Downloads/Reports/2016/pdf/BTI_2016_Taiwan.pdf  (p. 13).  
208 For example, the MOEA supervises "Taiwan Sugar", "Taiwan Power" and the CP C Corporation; the 
Ministry of Transportation and Communications supervises Chunghwa Post and "Taiwan Railway 
Administration"; and the MOF supervises "Taiwan Tobacco and Liquor", as well as the banks. Economist 
Intelligence Unit (2017), Country Commerce , June, London. Viewed at: www.eiu.com . 
209 These enterprises include, inter alia,  Chunghwa Telecom, "China Steel", "Taiwan Fertilizer", "Taiwan 
Salt", CSBC Corporation (shipbuilding), Yang Ming Marine Transportation, and eigh t public banks.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  second major source after taxes.210 No data on the share of publicly owned enterprises in local and 
overseas trade were available from the authorities.  
Table 3.8 Indicative list of publicly owned enterprises, 2018  
Company name  Public sector 
ownership (%)  Privatization progress and/or plan  
Printing Plant, Ministry of Finance  100.00  Temporarily not being privatized (it is charged 
with the implementation of government 
policies)  
Export -Import Bank  100.00  Temporarily not being privatized (it is charged 
with the implementation of government 
policies)  
Taoyuan International Airport 
Corporation  100.00  Temporarily not being privatized  
"Taiwan Tourism Bureau"  100.00  Temporarily not being privatized  
"Taiwan Tobacco & Liquor Corp."  100.00  Temporarily not being privatized (Corporation 
and its employees still have no consensus on 
privatization at the moment)  
"Taiwan Railway Administration"  100.00  Temporarily not being privatized  
"Taiwan International Ports  Corporation " 100.00  Temporarily not being privatized  
"Taiwan Financial Holding Co. Ltd."  100.00  Temporarily not being privatized (it is charged 
with the implementation of government 
policies)  
"Land Bank of Taiwan Co. Ltd."  100.00  Temporarily not being privatized (it is charged 
with the implementation of government 
policies)  
CPC Corporation (CPC)  100.00  Re-evaluation : currently being planned ( by 
public offering listing DR (Depositary Receipt))  
Chunghwa Post Co. Ltd.  100.00  Temporarily not being privatized: Chunghwa 
Post Co. Ltd. should provide universal service  
"Taiwan Sugar Corp. (TSC)"  96.51 Re-evaluation:  currently being planned by SBU 
(Strategy Business Unit)  
"Taiwan Water Corp . (TWC)"  100.00  Temporarily not being privatized: water 
purification plant by contracting out  
Chunghwa Telecom  40.18  Latest release of shares: 25 April 2017  
Aerospace Industrial Development Corp.  35.17  Latest release of shares: 21 August  2014 
"CSBC Corporation, Taiwan (CSBC)"  33.57  Latest release of shares: 18 December 2008  
RSEA Engineering  100.00  It completed the privatization of its 
construction sector on 1 November 2009 and 
will implement the procedures for its 
dissolution and liquidation in 2020  
Tang Eng. Iron Works Co.   11.56  Latest release of shares: 5 July 2006  
Source:  Information provided by the authorities; and Economist Intelligence Unit (2017), Country 
Commerce , June. Viewed at: www.eiu.com .  
3.137.   Publicly owned enter prises are also used as industrial development or food security policy 
tools. In November 2017, amendments to the Statute for Industrial Innovation (SII) mandating an 
R&D spending quota (i.e. percentage of budget) for publicly owned enterprises were passed  
(Section 3.3.1.2.2 ).211 Regarding rice, the most important crop in Chinese Taipei, t he Agriculture 
and Food Agency (AFA) of the COA continues to retain an exclusive right to import 65% of the rice 
tariff quota at the in -quota tariff rate (Sections 3.1.3.5 and 4.1) .212 The Central Engraving and 
Printing Plant (CEPP) retains an exclusive right to print currency and to import banknote paper to 
stabilize financial markets and to prevent counterfeiting through the use of banknote paper.   
3.138.   According to the legislati on and the authorities, a publicly owned enterprise is a company 
that retains de jure  monopoly rights and at least 50% of its shares are owned by the government. 
Upon the loss of its statutory monopoly rights or other special rights, and/or reduction of th e 
number of shares held by the public sector, a publicly owned enterprise is considered privatized, 
and therefore not subject to WTO notification despite being invol ved in trading activities 
(e.g. "Taiwan Tobacco and Liquor Corporation" and "Taiwan Sugar C orporation").213 Consequently, 
                                                
210 Ministry of Finance (2016), Government Finance - 2016, July.  
211 Online information ( https://www.export.gov/article?id=Taiwan -state-owned -enterprises ). 
212 WTO document G/STR/N/16/TPKM, 20 June 2016 . 
213 WTO document WT/TPR/S/232/Rev.1, 28 July 2010.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Chinese Taipei's WTO notifications during the review period cover state -trading activities on rice 
and banknote paper only.214  
3.139.   During the review period, there has been virtually a standstill in the privatization process 
involvin g the closure by liquidation of the Kaohsiung Ammonium Sulphate Co. Ltd. 
(15 January  2016) as well as the release of shares of the Aerospace Industrial Development Corp. 
(August 2014) and Chungwa Telecom (April 2017) (Table 3.8). This situation seems large ly due, 
inter alia , to: lack of consensus on privatization between employees and corporation and 
implementation of government policies; opposition; various economic considerations; regulatory 
difficulties; and the fragmented administrative structure (i.e.  different agencies involved in their 
administration).215 Furthermore, the January 2017 Electricity Act amendments included plans for 
the restructuring of the publicly owned electricity company Taipower in the period 2023 -2026 and 
the setting up of a new hold ing company that will gradually liberalize power generation and 
distribution (Section  4.2.2.2).216  
3.3.6   Government procurement  
3.140.   Government procurement amounted to NT$1 trillion in 2016, representing 6% of GDP, 
down from 7% in 2013. In 2017, construction works accounted for 36.5% of the total value of 
government procurement, while goods and services represented 35.6% and 27.9%, 
respectively.217 The share of non -local suppliers in the total value awarded ranged from 
10.9%  (2014) to 25.5% (2017) (Table 3.9), while t heir share in the number of contracts awarded 
was relatively stable, at slightly above 10% with a peak of 11.1% in 2017.218  
Table 3.9 Procurement by origin, 2014 -17  
 2014  2015  2016  2017  
Total value (NT$ billion)  934.5  919.4  1,026.0  1,222.6  
Percentage of GDP  5.8 5.5 6.0 7.0 
Share  (%) 
Local 89.1 81.4 82.2 74.5 
Non-local 10.9 18.6 17.8 25.5 
Suppliers originating in GPA parties  9.5 16.7 16.7 16.2 
Number of contracts awarded  187,966  177,956  182,082  185,803  
Share  (%) 
Local 89.8 89.1 89.2 89.6 
Non-local 10.2 10.9 10.8 11.1 
Suppliers originating in GPA parties  8.9 9.4 9.2 9.3 
Note:  The statistics include procurement not covered by the WTO/GPA and with a value of more than 
NT$100,000. The statistics  do not include procurement for resale or using in the production of 
supplies or services for sale.  
Source:  Information provided by the authorities.  
                                                
214 WTO documents G/STR/N/15/TPKM, 9 September 2014, and G/STR/N/16/TPKM, 20 June 2016 . 
215 So far the privatisation process, initiated in 1989, has been carried out through sale of shares and 
assets, formation of a privately owned enterprise by joint venture with private individuals, merger with an 
existing private enterprise, and/or capital increase. WTO documents WT/TPR/S/232/Rev.1, 28 July 2010, and 
WT/TPR/S/302/Re v.1, 18 December 2015; Economist Intelligence Unit (2017), Country Commerce , June, 
London. Viewed at: www.eiu.com ; and BTI (2016), Chinese Taipei Report , Bertelsmann Stiftung, 2016. Viewed 
at: https://www.bti -project.org/fileadmin/files/BTI/Downloads/Reports/2016/pdf/BTI_2016_Taiwan.pdf  
(p. 15). 
216 Enerdata online information. Viewed at: https://www.enerdata.net/publications/daily -energy -
news/taiwan -amends -its-electricity -act-plans -nuclear -exit-2025.html ; and Export.gov online inform ation. 
Viewed at: https://www.export.gov/article?id=Taiwan -state-owned -enterprises . 
217 In 2017, the main procurement items for goods were: pharmaceutical products, weapons and 
ammunition and parts thereof. The main services procured were: architectural, engineering and other technical 
services. The major construction contracts covered were: construction work for civil engineering and buildings.  
218 Regarding "domestic goods", the  rule for determining source of origin of goods is pursuant to the 
Regulations Governing the Determination of Country of Origin of Import Goods, which is prescribed by the 
Ministry of Finance and the Ministry of Economic Affairs. Products produced by overs eas-invested companies or 
joint-ventures are not considered "domestic". Regarding "domestic services", the rule for determining source of 
origin of services is pursuant to the GP Act and its related regulations, by the origin or the place of registration 
of the actual service provider. Where the service provider is a natural person, the citizenship applies; where 
the service provider is not a natural person, the place of registration applies.   WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.141.   Chinese Taipei is a member of the WTO Agreement on Government Procurement (GPA) 
and has opened its GPA cove red procurements to other members of the Agreement. Public Private 
Partnerships contracts are not covered by Chinese Taipei's commitment under the revised GPA. 
According to the authorities, in 2016, market access opportunities in central and sub -central 
entities under Chinese Taipei's GPA commitment stood at NT$206 .7 billion (NT$182.3 billion 
in 2014), representing 20.2% (19.5% in 2014) of its total government procurement value; 
construction and services accounted for 43.7% and 20.1% of the GPA procurement value 
respectively, and the Ministry of Transportation and Communications and Taipower are the main 
procurement entities responsible for 19.6% and 20.2% of this amount respectively.219 The 
authorities reported that, as at April  2018, the statistics for GPA -covered procurement in 2017 
were under preparation and would be submitted when available. Since 2014, the GPA procurement 
value has remained stable.  
3.142.   Chinese Taipei maintains two bilateral trade agreements that contain market -access 
commitments on government  procurement: one with New Zealand (ANZTEC), which entered into 
force on 1 December 2013, and another with Singapore (ASTEP), effective since 19 April 2014. 
Notably, under the ASTEP, the two signatories adopted lower market access thresholds for the 
procur ement of goods and services (excluding construction services) than those under the GPA  for 
central entities but for the others they are the same as those under the revised GPA, reflecting 
their willingness and ability to further liberalize their government  procurement markets 
bilaterally.220  
Legislation  
3.143.   Government procurement remains regulated by the  Government Procurement Act 
(GP Act), which aims to ensure fair and open procurement procedures, promote the efficiency and 
effectiveness of government procurement operation and ensure the quality of procurement. It 
applies to procurement by any government agency, public school, or publicly owned enterprise, for 
the contracting of construction work, the purchase or lease of property, and the retention or 
employment of services.221 During the review period, the Act was amended in January 2016.222 
The amendments included: the introduction of payment and review procedures for procurement of 
construction services; the strengthening of the role of the Complaint Rev iew Board for Government 
Procurement (CRBGP) in providing suggestions or proposals in dispute mediation; the application 
of mediation and arbitration to procurement of technical services; and the increase of the 
maximum number of CRBGP members from 25 to 3 5 in order to improve the quality and efficiency 
of dispute handling, as well as to reduce the overload on members.  
Procurement methods and relevant policies  
3.144.   Since the previous review, there has been no change in the procurement methods, bidding 
procedure s or procurement thresholds. Procurement contracts of not less than NT$1 million are 
awarded through open, selective, or limited tendering procedures. Open tendering refers to the 
procedure method under which a public notice is given to invite all interest ed suppliers to submit 
their tenders. In principle, open tendering must be used for all procurement contracts of a value of 
NT$1 million or over. Selective tendering consists of procurement with pre -qualification procedure 
where only qualified suppliers ar e invited to bid. It may be used when there is a recurring demand; 
the review of tenders is lengthy; the suppliers' cost of preparing a tender is high; the suppliers' 
qualification requirements are complicated; or the procurement concerns research and 
development. Limited tendering refers to the procedures under which no public notice is given and 
only a limited number of suppliers are invited to compete or only one supplier is invited to tender. 
It is used, inter alia , when: there is no eligible tender in response to open and selective 
                                                
219 So far the GPA has covered procurement of Taipei and Kaohsiung  Cities; other mega cities have not 
been officially included in the list of the sub -central entities. Currently, Chinese Taipei has no plans to expand 
its GPA coverage to include other municipalities in its list of sub -central entities. WTO documents 
GPA/1 37/Add.1, 27  May 2016, and GPA/142/Add.3, 3 July 2017.  
220 The GPA standard thresholds are SDR 130,000 for goods and services procured by government 
entities, SDR 200,000 for local government entities and SDR 400,000 for other entities, and SDR 5 million for  
construction services procurement by all entities. Under the ASTEP, Chinese Taipei and New Zealand set the 
thresholds at SDR 130,000 for goods and services and SDR 5 million for construction services procured by all 
entities.  
221 Articles 2 and 3 of the Government Procurement Act.  
222 Public Construction Commission. Viewed at: http://lawweb.pcc.gov.tw/EngLawContent.aspx?id=49 .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  procedures; the subject of procurement is an exclusive right; there is extreme urgency; or the 
procurement involves follow -up maintenance by the current supplier.223 Contracts are granted to 
either the lowest priced tender or t he most advantageous tender, as prescribed in tender 
documents. The authorities have been promoting the most advantageous tender criteria in key and 
significant works.  
3.145.   Between 2014 and 2016, the share of open tendering in total procurement value dropped 
whereas that of limited tendering rose (Table 3.10); this was due to large military procurements in 
2015 and 2016 that were conducted through limited tendering. In 2017, the share of open 
tendering in total procurement value rose back to 79.6%; 14.2% was aw arded through limited 
tendering and 6.2% through selective tendering.  
Table 3.10 Procurement share by type of procedure, 2014 -17  
Year Item  Open tendering  
(%) Selective tendering 
(%) Limited tendering 
(%) 
2014 Share of total value  81.7 5.6 12.7 
Construction  92.0 1.4 6.6 
Goods  69.6 14.1 16.3 
Services  81.7 1.6 16.7 
2015 Share of total value  74.5 9.1 16.4 
Construction  91.6 1.6 6.8 
Goods  49.2 25.4 25.4 
Services  81.4 0.9 17.7 
2016 Share of total value  78.4 5.4 16.2 
Construction  92.5 0.0 7.5 
Goods  57.1 15.7 27.2 
Services  83.0 1.1 15.9 
2017 Share of total value  79.6 6.2 14.2 
Construction  96.0 0.0 3.9 
Goods  61.0 16.3 22.7 
Services  81.9 1.3 16.9 
Note:  The statistics include procurement not covered by the WTO/GPA and with a value of more than 
NT$100,000. The statistics do not include procurement for resale or using in the production of 
supplies or services for sale.  
Source:  Information provided by the a uthorities.  
3.146.   The Chinese Taipei public procurement system remains decentralized. The Public 
Construction Commission (PCC) remains the authority to formulate, coordinate, and monitor the 
implementation of government procurement policies on goods, services, a nd construction works. 
The special municipalities of Taipei City, Xinbei City, Taoyuan City, Taichung City, Tainan City and 
Kaohsiung City maintain their procurement audit teams to audit procurement operations handled 
by their respective authorities.224 Pursuant to paragraph 1 of Article 108 of the GP Act, the central, 
municipal, and county (city) authorities may establish procurement supervision unit(s) to monitor 
and supervise procurement affairs. Besides the Central Procurement Supervision Unit under the 
PCC, 15 central entities and 22 local entities have established their own procurement supervision 
units. The Central Procurement Supervision Unit under PCC is responsible for auditing and 
supervising all procurement cases, while the other procurement a udit teams are responsible for 
their entities and subordinate agencies. According to the authorities, there is no problem arising 
from their allegedly overlapping project supervision and dispute handling systems.225  
3.147.   Relevant laws and regulations on governme nt procurement, procurement notices and 
contract award information are published in the Government Procurement Gazette  (currently an 
e-gazette) as well as on the PCC's website.226 To enhance the openness and transparency of 
procurement information, since 199 9 Chinese Taipei has maintained an online procurement 
platform, namely GEPS (Government E -Procurement System), to provide single website 
                                                
223 Article 18 -22 of the Government Procur ement Act.  
224 ECCT (2017), 2018 Position Papers - Clearing the Hurdles to Economic Progress , November. Viewed 
at http://www.ecct.com.tw/file/Publications/201711151808326974.pdf . 
225 ECCT (2017), 2018 Position Papers - Clearing the Hurdles to Economic Progress , November. Viewed 
at http://www.ecct.com.tw/file/Publications/201711151808326974.pdf   
226 PCC websi te: http://www.pcc.gov.tw .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  e-procurement service for government entities and suppliers.227 All procuring entities are required 
to publish their tend er notices, tender documentation and award notices in the Government 
Procurement Gazette and on the platform. A procuring entity may base its decision on whether to 
receive tenders through GEPS upon "actual needs" relating to the specificity/characteristic s of the 
procured item; the authorities indicated that certain local companies do not have the capacity to 
meet e -procurement requirements. For GPA covered procurements, summary notices in English 
are also published through the system. During the review pe riod, there was an annual average of 
about 250,000 procurements providing e -tender documentation annually, accounting for over 99% 
of the total number of tenders. By promoting e -tendering documentation, the authorities saved 
time and reduced human recourse s and printing costs estimated at over NT$ 1 billion per year. In 
addition, the publishing of the e -Government Procurement Gazette saves printing -related 
advertisement costs estimated at about NT$3 billion per year.  
3.148.   Chinese Taipei's government procurement regime requires reciprocity in terms of market 
access opportunities. The GP Act stipulates that procuring entities should restrict or ban suppliers, 
products or services from certain territories from participating in the procurement where the 
territory imp oses a restriction or ban on the suppliers, products or services from Chinese Taipei.228 
A procuring entity may indicate in its tender documentation whether overseas suppliers from 
countries not parties to agreements signed by Chinese Taipei are allowed to p articipate in the 
tendering; if allowed, the procuring entities must specify the name of the country concerned.  
3.149.   Legal provisions for preferential treatment for local suppliers, with the aim of promoting 
local employment and industrial development remain i n place.229 This treatment is available to 
procurement not subject to Chinese Taipei's commitments under international treaties or 
agreements (e.g. GPA).230 Local suppliers are eligible for a price preference of 3% maximum.231 
The margin of the price preference and the starting/expiry dates of the price preference period for 
particular tenders must be published by the responsible entity in the Government Procurement 
Gazette . However, the authorities indicated that although no price preference has been published 
or implemented since the entry into force of the GP Act in 1999, there is no plan to suppress this 
provision from the Act.  
3.150.   The GP Act allows procuring entities to introduce offset requirements in their 
procurements, except when prohibited by agreements to which Chinese Taipei is a party.232 The 
offsets may include requirements on local content, technology transfer, investment, export 
facilitation, or other similar measures, provided that they do not have a weight of over one third in 
the evaluation. No furthe r information (e.g. number of cases and type of items) on the 
implementation of this policy since 2014 was available from the authorities.  
3.151.   Chinese Taipei continues to use non -GPA covered government procurement to support: the 
development of local small and  medium enterprises (SMEs) (Section 3.3.1.2.1); the procurement 
of environment -friendly (green) products; indigenous suppliers; and people with disabilities. To 
promote SMEs' participation in government procurement, a yearly target percentage (YTP) of the 
value of procurement awarded or subcontracted to SMEs in the total value of procurement is set. 
The YTP has increased from 20% in 2000, when the schedule was established, to 40% in 2010 and 
has remained unchanged since then.233 The YTP has non -binding charac ter and is assessed in a 
"conglomerated" manner. The value to be subcontracted to an SME by a non -SME is determined 
by the latter and at its own discretion. For a procurement valued at less than NT$1 million, the 
procuring entity may prescribe in its tende r documentation that the contract will be granted to an 
SME unless SMEs are not in a position to carry out the procurement in question. The award 
information published online in the GEPS specifies whether the winning supplier is an SME, and if 
not, an esti mated value is sub -contracted to SMEs. The Small and Medium Enterprise 
Administration provides information on government procurement regulations and advises SMEs on 
practical issues. The PCC collects and classifies the information yearly, notifies the proc uring 
                                                
227 An English version of the introductory page of the GEPS website is available at: 
http://web.pcc.gov.tw/tps/pss/tender. do?method=goNews .  
228 Article 17 of the GP Act.  
229 Local suppliers are defined as suppliers that supply property with at least 50% value added locally, 
or suppliers of construction work or services locally.  
230 Articles 17, 43 and 44 of the GP Act.  
231 Article 4 4 of the GP Act.  
232 Articles 43 and 44 of the GP Act.  
233 WTO document GPA/WPS/SME/26, 6 July 2016.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  entities, and publishes it on its website. In 2017, the total value of contracts of a value exceeding 
NT$100,000 awarded or subcontracted to SMEs was NT$782.4 billion, representing 64% of the 
total procurement of these contracts.  
3.152.   Procuring entities are encouraged but not required to give priority to environment -friendly 
goods in their procurements according to Article 96 of the GP Act. A price preference of no more 
than 10% might be granted to relevant certified goods. Terms and sp ecifications relate d to 
Article  96 are defined by the Regulations for Priority Procurement of Eco -Products, jointly 
published by the PCC and the Environmental Protection Administration in 1999.234 A 2001 
Programme defines the proportion and categories of environmentally prefer able products that 
governmental agencies shall purchase. The goal has been amended annually according to the 
yearly performance and it is set at 90% for 2017. Currently, a total of 168 categories of products, 
with the Green Mark, the Energy Label, the Wate r Conservation Label, or the Green Building 
Material Label, are included in the list. The system applies to products regardless of origin 
considerations. On 21 March 2018, there were 295 local an d overseas companies with 
6,437  certified models among 51 kin ds of products. An appraisal mechanism was created and 
maintained to evaluate the overall performance of the system in accordance with established 
criteria and index; honours or awards are granted to entities meeting their annual environment -
friendly goods  purchase targets.  
Enforcement  
3.153.   The Complaint Review Boards for Government Procurement (CRBGP) established at 
different levels of government are responsible for handling complaints filed by suppliers where 
there might be a breach of laws and regulations in  a procurement whose contract value is over 
NT$1 million. If the supplier does not accept the CRBGP's decision, it may file an administrative 
appeal with the administrative appeal court. Reportedly, arbitration is often the preferred form of 
dispute settle ment for overseas suppliers, rather than mediation, which is the current practice in 
public procurement contracts.235 Between 2014 and 2017, 1,235 complaints related to invitation to 
tender, evaluation of tender, or award of contract were filed with the CRBG P of the PCC, of which 
14 cases were filed by overseas suppliers, accounting for 1.1% of total cases. Of the 
aforementioned 14 cases, none of them were found to be in breach of relevant laws and 
regulations; 1 case was appealed to the administrative court.  Compared with the period covered 
under the previous TPR, the number of complaints increased due to the objections of suppliers to 
the payment of a bid bond which they were informed of by the procuring entities pursuant to a 
notice of the audit office of C hinese Taipei which calculates the related costs of a tender. Between 
2014 and 2017, a total of 5,937 disputes, of which 3,040 were complaints (including complaints 
related to invitation to tender, evaluation of tender, or award of contract and the debarre d 
suppliers) and 2,897 were mediations for GPA -covered and non GPA -covered procurements, were 
settled by seven CRBGPs. Among the complaints and mediations filed to the CRBGPs, 47% 
involved construction , 28% services and 25% properties. According to the PCC 's Annual 
Enforcement Report 2017, during the period 2014 -2017, among complaints related to invitation to 
tender, evaluation of tender or award of contract filed to the CRBGP of the PCC regarding ordinary 
complaints, 91% involved "complaint against the pro cedures or the outcome of the procurement", 
8% involved "complaint against the content of the tender documentation"; and 1% involved 
"complaint against the interpretations, subsequent explanations, amendments or supplements of 
the tender documentation".236 No data on bid-rigging cases examined from 2014 onwards were 
available from the authorities.  According  to the results of a satisfaction survey on the CBRGP of 
the PCC by suppliers and procuring entities, the overall satisfaction rating stood at 93%, which i s 
indicative that Chinese Taipei's complaint review mechanism is effective and efficient.  
                                                
234 The Regulations are available at: 
http://law.moj.gov.tw/Eng/LawClass/LawAll.asp x?PCode=A0030084 .  
235 The outcomes of mediations are not legally binding, and thus parties may subsequently pursue 
remedies in courts or arbitration, an option that lengthens the process and is costly for both sides. ECCT 
(2017), 2018 Position Papers - Clearing the Hurdles to Economic Progress , November. Viewed at 
http://www.ecct.com.tw/file/Publications/201711151808326974.pdf . 
236 The Annual Performance Report is available at: https://www.pcc.gov.tw/  (in Chinese only).  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.3.7   Intellectual property rights  
3.154.   Chinese Taipei considers that the protection of intellectual property rights (IPR) 
encourages investment and fosters the development of  knowledge -based industries which are key 
to maintaining its global competitiveness.237 Chinese Taipei's IPRs policy has remained virtually 
unchanged; it is focused on improving its regime by amending the existing regulations, and its 
2015-2017 IPR Action pl an has been largely focused on enforcement (Section 3.3. 7.3).238 During 
the review period, Chinese Taipei strengthened protection in areas such as patents, trademarks 
and copyrights, whereas further work is under way in trade secrets and copyright. In discus sions 
in the TRIPS Council it has either co -sponsored or supported ad hoc  agenda items under which the 
link between innovation and IPRs was examined from various perspectives.239 
3.155.   Since 2014, Chinese Taipei has submitted 23 notifications with respect to its obligations 
under the WTO TRIPS Agreement (Table A2.1). Apart from the WTO TRIPS Agreement, Chinese 
Taipei participates in IPRs protection and cooperation within the APEC Intellectual Property Rights 
Expert Group (IPEG) framework. It remains a non -Member o f WIPO and, therefore, a 
non-signatory of WIPO -administered agreements. Chinese Taipei maintains bilateral instruments 
on IPR protection and enforcement in the form of agreements or MoUs with several economies.240 
During the review period, it signed new MoUs  with the Republic of Korea on the Exchange of 
Industrial Property Information and the Electronic Exchange of Priority Documents (2015), the 
United Kingdom (UKIPO) for the Mutual Cooperation in the Field of Deposit of Biological Material 
for the Purposes o f Patent Procedure (2017), and the European Union (EUIPO) on bilateral IPR 
cooperation (2018), as well as Patent Prosecution Highway (PPH) MoUs with the 
Republic  of Korea  (2015), Spain (SPTO) (2016), Poland (UPRP) (2017) and Canada (CIPO, pilot) 
(2018) (Se ction 3.3.7.1.1). In addition, it continues to strengthen exchanges and cooperation with 
the USPTO, JPO, KIPO, SIPO, and other intellectual property offices in various economies.241 A 
Cross -Strait Agreement on IPR Protection and Cooperation has been in place since 
12 September  2010.  
3.156.   The MOEA's intellectual property office (TIPO) remains in charge of formulating IPR policy, 
laws and regulations; administration of IPR registration and public I P awareness; settling disputes, 
and enforcement of IPR -related laws; inter -agency coordination;  and promoting cooperation with 
Chinese Taipei's trading partners.242 All main IPR laws and regulations are available in both English 
and Chinese on TIPO's website  (https://www.tipo.gov.tw/mp.asp?mp=2 ).243 Since January 2014, 
TIPO has operated an electronic delivery of patent and trademark official documents; this 
improvement facilitated document search, statistics a nd management, and reduced document 
storage space, cost and postage. In the period 2014 -2017, a total of 1,090,812 official documents 
                                                
237 For example, all royalties for patents, trademarks and know -how to overseas licensers face a 20% 
tax to be withheld at the source. However, these royalty payments may be exem pt from the withholding 
requirement if trademarks and patents are licensed to a local entity (including an approved inbound investment 
with up to 100% overseas ownership) under an approved agreement for technical cooperation. This exemption 
does not apply to transfers of technical know -how for use exclusively by high -tech industries or important 
technical industries. Economist Intelligence Unit (2017), Country Commerce , June, London. Viewed at: 
www.eiu.com ; AmCham 2015 Ind ustry Committees priority issues. Viewed at: http://amcham.com.tw/wp -
content/uploads/2016/05/WP -2015-Intellectual -Property -Licensing.pdf . 
238 MOEA (20 16), 2015 Intellectual Property Office Annual Report , June 2016.  
239 Chinese Taipei was a co -sponsor of the ad hoc  agenda item on IP and Innovation at the TRIPS 
Council meetings in February 2018 (IP/C/M/88); October 2017 (IP/C/M/87 and Add.1); March 2017 (I P/C/M/85 
and Add.1); November 2016 (IP/C/M/83 and Add.1); June 2016 (IP/C/M/82 and Add.1); March 2016 
(IP/C/M/81 and Add.1); October 2015 (IP/C/M/80 and Add.1); and June 2014 (IP/C/M/76 and Add.1).  
240 These economies include: Austria, Australia, Chile, Costa Rica, El Salvador, the European Union, 
France, Germany, Guatemala, Japan, Liechtenstein, the Netherlands, Paraguay, the Philippines, Spain, 
Switzerland, the United Kingdom and the United States. Th e complete list of bilateral agreements is provided 
online by TIPO ( https://www.tipo.gov.tw/ct.asp?xItem=175779&ctNode=6842&mp=2 ); and in WTO document 
WT/TPR/S/302/Rev.1, 18 Decem ber 2015.  
241 MOEA's Intellectual Property Office online information. Viewed at: 
https://www.tipo.gov.tw/ct.asp?xItem=175779&ctNode=6842&mp=2 ; and MOEA (2016), 2015 Intellectual 
Property Office Annual Report , June 2016.  
242 WTO document WT/TPR/S/232/Rev.1, 28 July 2010.  
243 In accordance with the relevant laws and regulations, all applicants for IPR protection, irrespective of 
origin, receive the same level of protection; application pr ocedures in terms of time and fees are also the 
same. WTO document WT/TPR/S/232/Rev.1, 28  July 2010.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  were delivered and 293,376 cases filed electronically.244 A patent or trademark applicant must file 
an application with TIPO , which normally renders a decision within six months upon submission of 
all supporting documents (Sections 3.3. 7.1.1 and 3.3. 7.1.2). In 2017, the average first official 
action pendency for invention patents and trademarks was 8.8 and 5.07 months, respecti vely; and 
the average disposal pendency for inventions, utility models and design patents and trademarks 
was 16, 2.4, 7.1 and 7.04 months, respectively.  
3.157.   Following the 2011 amendments of Article 59.6 of the Patent Act and of Article 36.2 of the 
Trademark Ac t that introduced the principle of international exhaustion, parallel imports are not 
considered to be in violation of relevant laws, therefore they are permitted. However, regarding 
copyright, according to Article 87.4 of the Copyright Act parallel import s are considered as 
infringement except for the cases listed in Article 87bis of the Act.245 No data on values and main 
product categories of parallel imports since 2014 were available from the authorities.  
3.3.7.1   Industrial property  
3.3.7.1.1   Patents and utility models  
3.158.   Protection for patent rights remains for 20 years from the filling date of the application for 
inventions, ten years for utility models, and 12 years for design.246 The Patent Act was last 
amended in 2017 with key revisions including: the extension of the grace  period for invention and 
utility model patent applications from 6 to 12 months preceding the date of domestic filing; the 
removal of restrictions on the types of disclosure that qualify for the grace period regardless of 
whether such disclosure was the ap plicant's intention or not; and in response to public calls, the 
removal of the requirements of claiming the grace period at the time of filing an application.247 In 
line with the needs of the industry and relevant policies, and to align relevant provisions with the 
2017 amendments to the Patent Act, amendments were introduced to the Enforcement Rules of 
the Patent Act and, inter alia , referred to the submission of the priority document in e -form, 
technical terms for design patents and the postponement of the  publication of a patent (e.g. its 
extension from three to six months).248  
3.159.   To promote partnerships with other economies with respect to mutual recognition of 
biological material deposit effects, 2015 amendments, enforced in January 2016, were made to 
Article 11 of the Regulations for the Deposit of Biological Material for Patent Application based on 
the Regulations under WIPO's Budapest Treaty on the International Recognition of the Deposit of 
Microorganisms for the Purposes of Patent Procedure.249 In 2016, am endments were introduced to 
the Patent Attorney Act, to cover issues relating to patent attorneys' practices, including the 
modes and the scope of their commissioned practices, their on -the-job training, as well as 
management and disciplinary actions for p atent agents.250  
                                                
244 MOEA (2015), Annual Report 2014 Intellectual Property Office , July 2015; MOEA (2016), 2015 
Intellectual Property Office Annual Report , June 2016 . MOEA ( 2017), 2016 Intellectual Property Office Annual 
Report, August 2017. Viewed online: https://www.tipo.gov.tw/public/data/782314564271.pdf . 
245 These exceptions include the original or copies  of a work imported that are, inter alia : (i) for the use 
of all levels of government agencies; (ii) for the supply of works to non -profit scholarly, educational, or 
religious organizations, or for library lending or archival purposes, (iii) for the privat e use of the importer, not 
for distribution; (iv) for visually impaired, learning disabled, hearing impaired or other persons with a 
perceptual disability; (v) original or copies of a work incorporated into any legally imported goods, machinery, 
or equipme nt that are imported in conjunction with the import of such items; and (vi) user's manuals or 
operating manuals accompanying any legally imported goods, machinery, or equipment.  Article 87bis of the 
Copyright Act. Viewed at: https://www.tipo.gov.tw/public/data/61221027271.pdf .  
246 Articles 52, 114, and 135 of the Patent Act. Viewed at: 
https://www.tipo.gov.tw/public/Atta chment/752949427.pdf . 
247 WTO document IP/N/1/TPKM/15, IP/N/1/TPKM/P/8, 10 October 2017; and MOEA (2017), 2016 
Intellectual Property Office Annual Report , August 2017. Viewed online: 
https: //www.tipo.gov.tw/public/data/782314564271.pdf . 
248 Other amendments of the Enforcement Rules of the Patent Act to clarify certain doubts in practices 
and coordinate with the amendment of the 2014 Patent Act were undertaken in 2014 and relate to: clarifying 
the calculation of grace period; clarifying continuation of the patent rights; and inserting a new provision to 
avoid double patenting. WTO document IP/N/1/TPKM/7, IP/N/1/TPKM/P/6, 11 March 2015.WTO document 
IP/N/1/TPKM/16, IP/N/1/TPKM/P/9, 10 October 2017 . 
249 WTO document IP/N/1/TPKM/11, IP/N/1/TPKM/O/3, 10 December 2015.  
250 WTO document IP/N/1/TPKM/13, IP/N/1/TPKM/P/7, 10 December 2015.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.160.   With respect to pharmaceutical inventions, important steps have been taken towards 
ensuring better protection in this area to promote the economy's innovation potential.251 In 
December 2017, the Pharmaceutical Affairs Act (PAA) was amended as part of Chinese Taipei's 
commitment to join the then Trans -Pacific Partnership Agreement ( TPP, Section 2.3.2). The 
amendment was aimed at aligning existing IPRs in this area to the TPP provisions by, inter alia,  
tightening data exclusivity for new indications and setting up a patent linkage system to ensure 
that generic drugs are not launched in Chinese Taipei while the original patent is still valid.252 
Additional amendments to the PAA, p roviding data exclusivity for new drugs with new ingredients 
and for drug s with newly added or change of indications with international data involving a three 
year regulatory protection that might be extended to five years for those with domestic clinical 
trials, have been in place since 31 January 2018; nevertheless, the legislative process for the 
Patent Linkage amendments has not yet been completed.253  
3.161.   During the review period, there were no changes to compulsory licensing in the Patent Act 
and no such ca ses have  arisen  so far.  
3.162.   The number of patent applications declined whereas the number of patents granted 
increased and continues to mainly relate to invention patents (Table 3.11). Although the majority 
of applications are made by residents, the share of overseas patent applicants and recipients has 
risen to above 40% due to a drop in patent applications by residents, especially for inventions 
between 2012 and 2016. In  2017, TIPO received a total of 73,791 patent applications (compared 
to 78,015 applicatio ns in  2014); the same year, 71,877 patents were granted (compared to 
76,252 in 2014) (Table 3.11); the top three item categories in which the most patents were 
granted in 2017 were semiconductor devices (6,618 cases), optics (5,587 cases) and shaping of 
metal (4,261 cases). Chinese Taipei's patent application review period has shortened from an 
average of 41 months in  2013 to 16 months in  2017, following the implementation of the Patent 
Backlog Reduction Project launched in 2010, the Patent Prosecution High way (PPH) as from 2011, 
and other fast -track measures.254 As at February 2018, TIPO maintained six PPH bilateral 
agreements of which three were signed during the review period (see above).255 In 2017, the 
pendency from PPH request to final decision was within 4 months. Reportedly, TIPO's e -filing 
service for patent applications and continued PPH expansion with a number of economies have 
resulted in fewer complications and delays in the application process (Section 3.1.1).256 
Table 3.11 Patents applied for and granted, 2012 -17 
 2012  2013  2014  2015  2016  2017  
Patent applications        
Invention  51,189  49,218  46,379  44,415  43,836  46,122  
Domestic (%)  45 44 41 39 38 39 
Overseas (%)  55 56% 59 61 62 61 
                                                
251 USTR (2017), 2017 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/reports/2017/NTE/2017%20NTE.pdf .  
252 A patent linkage system provides notice of a patent owner's rights to potential competit ors. 
Economist Intelligence Unit (2017), Industry Report: Healthcare , 3rd Quarter, 22 August, London. Viewed at: 
www.eiu.com/healthcare .  
253 Online information ( https://www.fda.gov.tw/en/newsContent.aspx?id=2281 5 and 
http://www.conventuslaw.com/report/taiwan -amendment -to-the-pharmaceutical -affairs -act/ ). 
254 There are two types of PPH programs, i.e. the general P PH and PPH MOTTAINAI. The general PPH 
enables an applicant, whose claims are determined to be allowable/patentable in the Office of First Filing (OFF), 
to have the corresponding application filed in the Office of Second Filing (OSF) advanced out of turn fo r 
examination while at the same time allowing the OSF to exploit the search and examination results of the OFF; 
PDX is the programme for electronic exchange of priority documents. Under the PPH "MOTTAINAI" enables an 
applicant, whose claims have been deter mined to be allowable/patentable by the Office of Earlier Examination 
(OEE), to undergo an accelerated examination at the Office of Later Examination (OLE), regardless of with 
which office the application was first filed. MOEA's Intellectual Property Offic e online information. Viewed at: 
https://www.tipo.gov.tw/ct.asp?xItem=335512&ctNode=7556&mp=2  and 
https://www.tipo.gov.tw/ct.asp?xItem=575120&ctNode=6687&mp=2 ; Export.gov online information. Viewed 
at: https://www.export.gov/article?id=Taiwan -Protection -of-Property -Rights. 
255 These agreements were signed with the United States (2011), Japan (2012), Spain (2013), the 
Republic of Korea (2015), Poland (2017) and Canada (2018). Online TIPO information 
(https://www.tipo.gov.tw/ct.asp?xItem=335512&ctNode=7556&mp=2  ).  
256 Amcham online information. Viewed at: https://amcham.com.tw/wp -
content/uploads/2017/06/Intellectual -Property -Licensing -EN.pdf .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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   2012  2013  2014  2015  2016  2017  
Utility model  25,636  25,025  23,488  21,404  20,161  19,549  
Domestic (%)  95 95 94 94 94 94 
Overseas (%)  5 5 6 6 6 6 
Design  8,248  8,968  8,148  7,808  8,445  8,120  
Domestic (%)  61 57 57 57 54 53 
Overseas (%)  39 43 43 43 46 47 
Total 85,073  83,211  78,015  73,627  72,442  73,791  
Domestic (%)  62 61 59 57 56 55 
Overseas (%)  38 39 41 43 44 45 
Patents granted        
Invention  25,536  40,251  45,601  48,315  48,947  45,710  
Domestic (%)  48 49 47 44 43 41 
Overseas (%)  52 51 53 56 57 59 
Utility model  24,643  24,847  23,712  22,106  19,793  19,037  
Domestic (%)  95 95 95 94 94 94 
Overseas (%)  5 5 5 6 6 6 
Design  6,431  7,050  6,939  7,666  7,666  7,130  
Domestic (%)  61 61 58 56 55 51 
Overseas (%)  39 39 42 44 45 49 
Total 56,610  72,148  76,252  78,087  76,406  71,877  
Domestic (%)  70 66 63 59 58 56 
Overseas (%)  30 34 37 41 42 44 
Source:  Information provided by the authorities.  
3.3.7.1.2   Trademarks  
3.163.   Upon registration, the exclusive right of the trademark continues to be provided for ten 
years, renewable indefinitely for ten year periods.257 During the review per iod, the Trademark Act 
was amended in December 2016 to exclude application of confiscation/seizure provisions of the 
Criminal Code and to maintain the absolute obligation of confiscation under Article 98 of the 
Trademark Act. The amendment made no changes to confiscation practices. The 
2015 amendments to the Enforcement Rules of the Trademark Act were mainly aimed at 
streamlining the trademark application process by exempting the applicant from submitting the 
original copy of proof for rights of priority an d exhibition priority, as well as a copy of the written 
request and related documents of the original application for the division of application for 
registration.258 In 2017, the schedule of Article 19 of the Enforcement Rules of the Trademark Act 
was amend ed to correspond with the Nice Classification (NCL 11 -2017).259  
3.164.   TIPO's e -filing service for trademark applications led to fewer complications and delays in 
the trademark application process (Section 3.3. 7 and above). In 2017, TIPO received a total of 
83,802  applications for trademark registration (compared to 75,933 in 2014), mostly from 
residents (Table 3.12).  
Table 3.12 Trademarks and related data, 2012 -17 
 2012  2013  2014  2015  2016  2017  
Trademarks        
Applications  74,357  74,031  75,933  78,523  79,300  83,802  
Domestic  55,696  55,338  56,217  57,356  57,548  61,215  
Overseas  18,661  18,693  19,716  21,167  21,752  22,587  
Registrations  61,918  60,557  66,257  62,993  68,177  74,226  
Domestic  45,659  44,174  48,728  45,233  48,828  53202  
Overseas  16,259  16,383  17,529  17,760  19,349  21024  
Rejections  8,724  8,581  7,641  7,692  8,956  8903 
Certification marks        
Applications  37 41 31 43 27 41 
Registrations  42 30 37 31 26 30 
Collective membership marks        
Applications  71 64 72 58 47 61 
Registrations  39 54 48 56 52 36 
Source:  Information provided by the authorities.  
                                                
257 Trademark Act online information. Viewed at: https://www.tipo.gov.tw/public/data/7161442371.pdf .  
258 WTO document IP/N/1/TPKM/9, IP/N/1/TPKM/T/6, 1 October 2015.  
259 WTO document IP/N/1/TPKM/18, IP/N/1/TPKM/T/8, 10 October 2017.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.165.   Despite the existence of relevant legal and penal provisions, reportedly there are concerns 
regarding the seemingly unauthorized use by Chinese  Taipei companies of luxury brand logos and 
other promotional materials, thus creating a false impression that trademark owners act as 
sponsors or conduct co -marketing activities with these companies.260 Plans to introduce plain 
packaging for tobacco products raised  concerns about possible spill -over effects of standardized 
packaging requirements into other industry sectors, including alcoholic beverages, soft drinks and 
fast food.261 A draft amendment of the Tobacco Hazards Prevention Act was sent for legislative 
consideration on 21 December 2017 (Section 3.3.2.1.1); the proposal for plain packaging was not 
included in the suggested amendment.  
3.3.7.1.3   Geographical indications  
3.166.   During the review period, the legislative framework governing geographical indications 
(GIs) consisti ng of the Trademark Act and other relevant legislation remained unchanged.262 GIs 
are protected against uses that mislead consumers and allow free riding; third parties are 
prohibited from applying for registration as trademarks and from abusing indications of origin, 
which constitutes an act of unfair competition. According to the authorities, there have been no GI 
infringing cases between 2014 and 2017; nevertheless, during the same period TIPO rejected 
three applications for trademark registration that wer e similar to overseas GIs for wines or spirits. 
A system of notification and registration of GIs for wines and spirits that is based on voluntary 
participation remains in place . With regard to the extension to other products of the higher level of 
protecti on for wines and spirits required under the TRIPS Agreement, the authorities continue to 
maintain that neither the necessity nor urgency for such an extension had been demonstrated.  
3.3.7.1.4   Plant varieties  
3.167.   Since the previous review, there have been no changes to the Plant Variety and Plant Seed 
Act, amended in 2010.263 The Act provides protection for plant varieties that have the 
characteristics of novelty, distinctness, uniformity, and stability, as well as an appropriate plant 
variety denomination.264 In 2016, discu ssions were held in the context of the bilateral Economic 
and Trade Consultation IPR Working Group with the European Commission on issues of IPR law, 
enforcement of protection, mutual recognition on distinctness, uniformity and stability (DUS) 
reports for plant variety of Phalaenopsis  and Doritaenopsis , as well as on cooperation with global 
counterparts.265 To expedite the mutual takeover of DUS test reports between Chinese Taipei and 
the European Union, the authorities amended the DUS test report for Phalaen opsis to discuss it 
with the EU Community Plant Variety Office (CPVO) Technical Committee.  
3.3.7.1.5   Layout designs of integrated circuits (topographies)  
3.168.   Layouts of integrated circuits remain protected under the Integrated Circuit Layout 
Protection Act, last amende d in 2002. The protection period remains for ten years from the date of 
application or the date of first commercial exploitation, whichever is first.266  
                                                
260 Articles 36.1, 68, 69, 95 and 97 of the Trademark Act. Amcham online information. Viewed at: 
https://amcham.com.tw/wp -content/uploads/2017/06/Intellectual -Property -Licensing -EN.pdf ; and ECCT 
(2017), 2018 Position Papers – Clearing the Hurdles to Economic Progress , November. Vi ewed at 
http://www.ecct.com.tw/file/Publications/201711151808326974.pdf .  
261 ECCT (2016), 2017 Positions Papers , and ECCT (2017), 2018 Position Papers - Clearing the Hurdles 
to Economic Progress , November. Viewed at 
http://www.ecct.com.tw/file/Publications/201711151808326974.pdf . 
262 These include the Fair Trade Act, the Tobacco and Alcohol Administrati on Act, the Regulations 
Governing the Labelling of the Alcohol Products, the Commodity Labelling Act, and other related regulations. 
Online information ( http://aippi.org/wp -
content/uploads/2017/06/2017_StudyReport_IM_Taiwan_SC_GeoInd_2017 -06-06_NEW.pdf ). 
263 Laws & regulations online database. Viewed at: 
http://law .moj.gov.tw/eng/LawClass/LawContent.aspx?pcode=M0030024 . 
264 WTO document WT/TPR/S/302/Rev.1, 18 December 2015.  
265 MOEA (2017), 2016 Intellectual Property Office Annual Report , August 2017. Viewed online: 
https://www.tipo.gov.tw/public/data/782314564271.pdf . 
266 WTO document WT/TPR/S/232/Rev.1, 28 July 2010.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.3.7.1.6   Trade secrets  
3.169.   Since the last TPR, no changes have been made to the Tra de Secrets Act, last revised 
in 2013. The Act contains civil and criminal liability (Article 13) for trade secret misappropriation. 
In 2017, TIPO proposed draft amendments to the current Act that inter alia  relate to: trade secret 
infringement indictable only upon complaint; an unrecogni zed overseas entity's standing to file a 
complaint; limited accessibility of secret -related materials during criminal investigation; and, 
reciprocal treatment for overseas trade secrets.267 However, at a public hearing held on 
5 May 2016, the public voiced i ts opposition against this proposal thus leading to the non -inclusion 
of the proposed change in the revised version of the draft amendments.   
3.170.   Agro-pesticides are considered a trade secret under the Standards for Physico -chemical 
Property Tests and Toxicolo gy Testing of Agro -pesticides.  
3.171.   To promote awareness of trade secret protection during the review period, Chinese Taipei 
conducted 9 rounds of seminars on Trade Secret Practices with over 400 participants aimed at 
stepping up investigation techniques. In addition, 5 symposiums on Reasonable Measures for 
Maintaining Confidentiality of Trade Secrets with around 600 participants aimed at helping SMEs 
build a robust protection mechanism were held between 2016 and 2017. Participants were mostly 
members of law e nforcement agencies as well as legal counsels from technology industry and 
courts.268  
3.3.7.2   Copyright and related rights  
3.172.   Chinese Taipei's Copyright Act was last amended in November 2016. It continues to 
protect ten types of work (Article 5) upon accomplishment o f the work and for 50 years after the 
author's death (Article 30) except for photographic works, audio visual works, sound recordings, 
and artists' (performers') performances, for which copyright is granted for 50 years from the time 
of public release (Art icle 34).269 Copyright does not need to be registered to be protected. Under 
Article 4, works of overseas right holders enjoy copyright protection provided there is a 
treaty/agreement ratified by the legislature.270 With respect to other works, no protection a pplies, 
unless first published in Chinese Taipei, or published in Chinese Taipei no more than 30  days after 
first publication in a territory that provides reciprocal protection to Chinese Taipei right holders.   
3.173.   Similar to trademarks (Section 3.3. 7.1.2), th e 2016 amendments to the Copyright Act 
(Article 98) were aimed at the alignment of existing provisions with the new chapter on 
"Confiscation" in the Criminal Code.271 The remainder of the draft amendment of the Copyright 
Act, including the Standards for Comp ensation for Fair Use of Works in Paragraph 4 of Article 47 of 
the Copyright Act which includes works of unknown copyright owners and registration of copyright 
pledges, is still under review due to ongoing discussion regarding the adjustment of the 
compens ation rate. Revisions of the "Operation (al) Directions for (Various ) Applying (of) the 
Copyright Collective Management Organization (of the Intellectual Property Office, MOEA )" and 
"Directions Applying for Permission to Establish a Copyright Collective Man agement Organization" 
were published in July  2016 (see below); they now include more concrete description of original 
provisions, enhancement of review meetings, more flexibility in public hearings, and the coverage 
of financial statements in applicants' b usiness plans.272  
                                                
267 Online information ( https://www.lexo logy.com/library/detail.aspx?g=ce36be36 -d5a4-47cf-bfa3-
75537db3f1d7  and https://www.lexology.com/library/detail.aspx?g=63501e8b -4494-4af1-be53-
0cf342deac93 ). 
268 MOEA (2015), Annual Report 2014 Intellectual Property Office , July 2015; MOEA (2016), Annual 
Report 2015 Intellectual Property Office , June 2016; and MOEA (2017), 2016 Intellectual Property Office 
Annual Report , August 2017. Viewed online: https://www.tipo.gov.tw/public/data/782314564271.pdf . 
269 These works include: oral and literary works, musical works, dramatic and choreographic works, 
artistic works, photographic works, pi ctorial and graphical works, audio -visual works, sound recordings, 
architectural works and computer programs. Article 5 of Copyright Act. Viewed at: 
https://members.wto.or g/crnattachments/2017/IP/TPKM/17_4035_00_e.pdf .  
270 As of 2002, when Chinese Taipei became a WTO Member, works created by people from WTO 
Member obtained protection.  
271 WTO document IP/N/1/TPKM/14, IP/N/1/TPKM/C/12, 10 October 2017.  
272 MOEA (2017), 2016 Intel lectual Property Office Annual Report , August. Viewed at: 
https://www.tipo.gov.tw/public/data/782314564271.pdf .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.174.   In response to the advanced development of digital technology, in October 2017 a draft 
amendment to the Copyright Act comprising 145 articles expected to change 80% of the current 
provisions was approved and sent to the legislative branch for inspection and formal amendment 
through three successive readings where it remained as of April 2018.273 The key proposed 
changes include: revised definitions of "public broadcasting" and "public transmission"; 
simultaneous further communication to the p ublic rights; new provisions on "retransmission 
rights"; new provisions on performer's rights, namely, performers whose acting appears in a 
physical audiovisual form such as a digital video disks shall receive the same rights as persons 
whose performances are fixed in phonograms; provisions on fair use of copyright works by the 
general public were adjusted; new provisions on compulsory licensing of works of unknown 
economic right holders and those on the registration of copyright pledges; and amendments to 
provisions on criminal liability.274  
3.175.   According to the authorities, at the time of the previous TPR the Copyright Act was: 
consistent with the TRIPS Agreement and had implemented protection and enforcement standards 
as stipulated by the WIPO Internet Treatie s (i.e. the WIPO Copyright Treaty and the WIPO 
Performances and Phonogram Treaty) as well as provisions on exceptions and limitations set by 
WIPO's Marrakesh Treaty to Facilitate Access to Published Works by Visually Impaired Persons and 
Persons with Print  Disabilities.275  
3.176.   During the review period and as in many other WTO Members, copyright -related concerns 
included: the use of infringing streaming devices (ISD), apps, website linking, and "plug in" media 
players offering stream ripping/downloading functions  and inability of laws/regulations to deal with 
the vast amount of illegal downloading activities facilitated by non -hosted websites and websites 
offshore; short -term copyright protection compared to other economies (e.g. the European Union 
(up to 70  years ), the United States (95/120 years depending on the work), Mexico (75 years)); 
relaxing current penal provisions and no longer treating violations as public crimes; and the 
greater freedom given under the Copyright Collective Management Organization (CCMO)  Act to 
content users to appeal to TIPO to revise the copyright royalty fees.276 The authorities indicated 
that any person committing acts involving provision of peer -to-peer (P2P) to facilitate viewing via 
streaming or downloads by the general public is vio lating the provision of subparagraph 7, 
paragraph 1 of Article 87 of the Copyright Act. Any person providing the public with hyperlinks that 
enable streaming of infringing contents may be regarded as a joint -principal offender or abettor 
according to Artic le 92 of the Copyright Act, although judicially collecting relevant evidence can be 
difficult; right holder groups recently called for legislative amendment, demanding that any person 
committing the aforementioned act be deemed as copyright infringement. S tream ripping is a 
technology that enables users to decode or disrupt streaming platforms to facilitate (illegal) 
download; any person committing the above act is liable for violating the provisions of Article 80 
or Subparagraph 7, Paragraph 1 of Article 8 7 of the Copyright Act. To stem the infringing activities 
facilitated by non -hosted websites and websites offshore, in mid -2017 Chinese Taipei adopted 
"Follow the Money" measures to block the advertising revenues of piracy sites.277 The authorities 
consider that the current term of protection for economic rights of a work is in compliance with 
WTO/TRIPS requirements. A draft amendment to the Copyright Act removes the minimum penalty 
of 6 months imprisonment for some criminal liability provisions, thus giving a court of law more 
                                                
273 They cover 93 amendments and 17 new articles. Online information 
(https://www.lexology.com/library/detail.aspx?g=884d7f2c -c6d4-4695-9611-c8eebbcd0ad2 ). 
274 TIPO online information. Viewed at: 
https://www.tipo.gov.tw/ct.asp?xItem=652057&ctNode=6687&mp=2  and Lexicologa online information. 
Viewed at: https://ww w.lexology.com/library/detail.aspx?g=10ec7be4 -8071-4be3-92e4-8ff8e89866ab .  
275 WTO document WT/TPR/S/302/Rev.1, 18 December 2015.  
276 TIPO's intervention into copyright royalty rate setting under the CCMO Act has seemingly resulted in 
unstable royalty rates and interference with the normal rights of parties to negotiate rates in the free market. 
AMCHAM information ( http://amcham.com.tw/wp -content/uploads/2016/08/WP -2016-Intellectual -Property -
Licensing -English.pdf ); and ECCT (2017), 2018 Position Papers - Clearing the Hurdle s to Economic Progress , 
November . Viewed at: http://www.ecct.com.tw/file/Publications/201711151808326974.pdf . 
277 Following the recent adoption of "Follow the Money" measures ove rseas, e.g. in the United States 
and the United Kingdom, in September 2017 TIPO facilitated the conclusion of a Memorandum of 
Understanding (MoU) on the Infringing Website List (IWL) between the invited rights holder groups and 
advertisers. As a result, ad vertisers receiving lists of rogue sites from rights holders groups should refrain from 
placing ads on such sites to deter infringement. TIPO is to continue its intermediary role to facilitate the sound 
operation of the mechanism and encourage more adverti sers to participate in the agreement. Online 
information ( http://www.taipeitimes.com/News/biz/archives/2017/09/05/2003677797 ).  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  flexibility in determining sentences in lawsuits; other than this amendment, the criminal 
sentencing and standards of prosecution are in line with the existing laws.  
3.3.7.3   Enforcement  
3.177.    Chinese Taipei has continued to pursue its objective of  making the intellectual property 
environment conducive to more innovation and R&D. Chinese Taipei is seen as having one of the 
most efficient IPR enforcement regimes in the Asian region.278 Its ranking on IPRs protection has 
remained virtually unchanged. In  2017, it was positioned 27th out of 137 economies in the WEF 
Global Competitiveness index in terms of intellectual property protection, compared to 26 out of 
144 economies in 2014.279 According to the International Property Rights Index (IPRI), it ranked 
24th globally and 6th regionally out of 127 and 19 economies, respectively, in 2017; and 
23rd globally and 6th regionally out of 95 and 16 economies, respectively, in  2014.280 According to 
the Global Software Study, the estimated rate of unlicensed software installation in Chinese Taipei 
stood at 36% in 2015, down from 38% in 2013 and well below the Asia Pacific regional average of 
61%.281 The authorities indicated that online pi racy within Chinese  Taipei has been curbed through 
the "Follow the Money" initiative (Section 3.3. 7.2) and international cooperation (see below) as 
most major online infringements are committed by websites located overseas.  
3.178.   Since its previous review, Chin ese Taipei has maintained policies and measures to 
strengthen IPRs enforcement. The TIPO 2015 -2017 IPR Action plan was, inter alia , aimed at: 
coordinating inspection agencies, police forces, and prosecutors to counter new forms of IPR 
violations; strengthe ning enforcement in counterfeit and piracy investigations; investigating and 
curbing online copyright infringement; implementing border control measures; strengthening the 
Trade Secrets Act enforcement; facilitating a comprehensive IPR legal system; enhanc ing 
education; and promoting international and cross -strait exchange and cooperation.282  
3.179.    Chinese Taipei's IPR Action Plan 2018 -2020 is a response to global industrial trends, 
particularly in areas such as digital technology, as well as fast development in the Internet and 
social media. It is also in line with its overall economic and trade policies, such as the 
5+2 Industry Innovation Plan and the New Southbound Policy (Sections 2.2 and 3.2.5).283 The 
Plan highlights assistance to corporations (especially SME s) working on R&D and innovation, 
strengthens trade secrets protection and infringement investigation involving e -commerce and 
online purchases, as well as strengthens overseas IPR protection assistance. Its main objectives 
include: increasing enterprises'  R&D and innovation capability; the establishment of an IPR legal 
regime that suits the local environment and aligns with international regulations; the effective 
investigation of counterfeit and piracy and strengthening of trade secrets protection; the 
enhancement of online copyright protection and fair use mechanisms; the effective implementation 
of campus IPR protection; enhancement of enforcement officers' professional knowledge and skills; 
improving public awareness of IPR protection; and, the strength ening of global cooperation and 
overseas IPR protection.  
                                                
278 In 2009, reflecting progress in Chinese Tai pei's IPR legal regime and enforcement, the Office of the 
US Trade Representative removed it from the Special 301 Watch List. Export.gov online information. Viewed 
at: https://www.export.gov/article?id=Taiwan -Protection -of-Property -Rights ; Amcham online information. 
Viewed at: https://amcham.com.tw/wp -content/uploads/20 17/06/Intellectual -Property -Licensing -EN.pdf .  
279 WEF (2017), The Global Competitiveness Report 2017 -2018, Geneva. Viewed at: 
http://www3.weforum.org/docs/GCR2017 -
2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf ; and WEF (2015), The Global 
Competitiveness Report 2014 -2015, Geneva. Viewed at: 
http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2014 -15.pdf .  
280 The IPRI scores the underlining institutions of a strong property rights regime: the legal and political 
environment, physical property rights, and intellectu al property rights. It is the world's only index entirely 
dedicated to the measurement of intellectual and physical property rights. International property rights index 
online information. Viewed at: https://internationalpropertyrightsindex.org/countries  and 
https://internationalpropertyrightsindex.org/about .  
281 The biennial study published in May 2016 by the Business Sof tware Alliance - a private industry 
group, estimated the commercial value of unlicensed software in Chinese Taipei at US$264 million in 2015, 
down from US$305 million in 2013. Economist Intelligence Unit (2017), Country Commerce , June, London. 
Viewed at: www.eiu.com . 
282 MOEA (2015), Annual Report 2014 Intellectual Property Office , July 2015; MOEA Intellectual Property 
Office online information. Viewed at: https://www.tipo.gov.tw/public/data/75161541271.pdf . 
283 Online information ( https://topics.amcham.com.tw/2017/05/52 -industrial -innovation -plan/). WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  3.180.   All IPRs laws contain provisions on civil remedies in case of infringement.284 Criminal 
penalties upon infringement of copyright include imprisonment for up to five years and a fine of up 
to NT$5 milli on.285 Criminal penalties for trademark infringement include imprisonment for up to 
three years and a fine of up to NT$200,000. Criminal penalties are also in place for trade secrets 
misappropriation (Section 3.3. 7.1.6). Intellectual property right holders c an enforce their rights 
with investigations, raids, preliminary injunctions, indictment and trial, and cease and desist 
letters.286  
3.181.   An Inter -agency Coordination Taskforce for IP Enforcement, including representatives of 
the police force, the IPR Police, the  Customs Administration, the Ministry of Justice (MOJ), the 
Investigation Bureau of the MOJ, the Ministry of Education, and the Ministry of Economic Affairs, 
continues to coordinate enforcement work (Sections 3.3. 7.3.1 and 3.3. 7.2).287 Campus IPR 
protection has been enhanced through the MOU signed in August 2016 between the Ministry of 
Education and right holder groups. In addition to the MOU on the Infringing Website List (IWL) 
(Section 3.3. 7.2), an MoU on IPR Enforcement Cooperation betwee n the United State s and 
Chinese  Taipei entered into effect in February 2017.288  
3.3.7.3.1   Domestic enforcement  
3.182.   The Police Force, the District Prosecutors Office and the High Prosecutors Office 
(Intellectual Branch Office) implement IPR legislation. The IPR Police undertakes counterfei t and 
piracy investigation. The Joint Optical Disk Enforcement Taskforce (JODE) continues to conduct 
periodic and random inspections of optical disc plants, printing plate factories, and other related 
facilities. In 2016, the value of trademark and copyrig ht seizures in the local market is reported to 
amount to NT$14.4 billion (US$432 million), down from NT$19.5  billion (US$630 million) in  2015; 
in 2016, affirmed IP infringement cases totalled 4,946  cases, a 1.35% decline over the previous 
year.289  
3.183.   TIPO cont inues to pursue activities to enhance educational advocacy in this area, 
including: publication of various advocacy materials, newspapers, television and radio ads, internet 
activities, and speeches to promote IPR.290 Chinese Taipei has also continued to pro mote 
professional knowledge and the enforcement capability of police officers, judges, and lawyers as 
well as to raise awareness of representatives of the industry and academia through various 
training courses and workshops. These were mainly focused on tr ade secrets protection (legal 
regime and practices) (Section 3.3. 7.1.6), IPR online enforcement, high -tech crime/cybercrime 
investigation and digital forensics technology, patent strategies and their use in various tech fields, 
as well as patent search sys tem.  
3.3.7.3.2   Enforcement by Customs  
3.184.   IPR enforcement on incoming and outgoing goods is conducted by Customs, which may 
suspend ex officio  the release of goods suspected of infringing IPRs. The number of cases involving 
seizures of incoming counterfeit branded good s rose from 149 cases in 2014 to 228 cases in 2017, 
with the majority of the violations involving computing, communication, and consumer products 
(Table  3.13). Furthermore, seizures of incoming goods infringing trademark increased to 228 cases 
in 2017 with  vehicle parts, consumer electronics and cosmetics ranking at the top, in terms of the 
number of confiscated articles. Customs officials attribute the rise in seizures to increased 
                                                
284 WTO document WT/TPR/S/232/ Rev.1, 28 July 2010.  
285 Articles 88 and 91 of the Copyright Act (viewed at: 
https://www.tipo.gov.tw/public/data/61221027271.pdf ) and Article 95 of the Trademark Act (viewed at: 
https://www.tipo.gov.tw/public/data/7161442371.pdf ).  
286 Wang&Wang online information. Viewed at: https://www.wangandwang.com/intellectual -
property/intellectual -property -overview -taiwan/intellectual -property -taiwan/ . 
287 WTO document WT/TPR/S/302/Rev.1, 18 December 2015.  
288 USTR (2017), 2017 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/sites/default/files/files/reports/2017/NTE/2017%20NTE.pdf .   
289 Online information. Viewed at: https://www.export.gov/article?id=Taiwan -Protection -of-Property -
Rights .  
290 MOEA Intellectual Property Office online information. Viewed at: 
https://www.tipo.gov.tw/public/data/75161541271.pdf  . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  detection of small parcel air freight shipments of counterfeit goods purcha sed from overseas 
e-commerce sites.291  
Table 3.13 IPR enforcement by Customs, 2014 -17 
Enforcement on incoming goods infringing trademarks  
 
Cases  
Computer, 
communication, 
and consumer 
electronics  
Bags/leather  
Clothes  
Cosmetics  
Watches  
Shoes  
Medicines  
Car parts  
Toys  
Others  
2014 149 4,390  1,483  942 31,300  874 698 200 367 2,388  12,938  
2015 199 5,052  2,456  1,045  6,300  304 1,237  - 2,605  1,359  15,172  
2016 169 107,303  141 4,864  2,820  627 - 17,630  5,307  4,318  49,882  
2017 228 18,676  6,186  5,481  9,402  4,112  184 7,662  157,183  5,250  40,132  
Enforcement on incoming goods infringing copyright  
 Cases  Game software  
(or game CDs)  Pirated optical discs  
(or movie DVDs)  Others  Total  
2014 9 1 1,439  0 1,440  
2015 12 0 785 300 1,085  
2016 9 46 1,341  1 1,388  
2017 0 0 0 0 0 
Enforcement on outgoing goods  
Export commodities infringing trademarks  Trademarks in the export declaration not in 
conformity with the commodity trademark 
and referred to BOFT through TIPO   Cases  Quantities of 
commodities infringed  
2014 1 1,500  122 
2015 1 660 291 
2016 3 7,747  242 
2017 5 16,484  260 
Source:  Information provided by the authorities.  
3.3.7.3.3   Judicial action  
3.185.   An Intellectual Property Court continues to cover first instance and second  instance civil 
action for the protection of IPRs. Criminal cases are dealt with by district courts in the first 
instance and by the IP Court in the second instance. For administrative action, the Court acts as 
first instance, and appeals are made to the Supreme Administr ative Court. Between its 
establishment in July 2008 and end 2017, the Intellectual Property Court dealt with 13,206 cases 
(8,323 until 2013), of which 95.7% (12,634 cases) had been closed.292 More than half of the cases 
were either first  or second instance c ivil cases, while the remaining cases were virtually evenly 
spread between administrative and criminal cases.  
3.186.   Between 2013 and 2017, the share of cases found violating the law out of all investigated 
cases at all District Prosecutors Offices (including pr osecution, application for summary judgement, 
and deferred prosecution and ex officio ) dropped from 51% (2013) to 33%  (2017), and the share 
of cases found guilty by the Court (including imprisonment, detention and fines) out of total 
adjudications was redu ced from 81% (2013) to 73% (2016) (Table 3.14). Between 2013 
and 2017, the share of indictment out of all investigated cases at all District Prosecutors Offices 
dropped from 22.6% to 16.5%, and the share of imprisonment out of total adjudications declined 
from 36.9% to 22.2% whereas the share of fines rose from 3.2% to 5% (Table 3.14). This 
performance reflects an enforcement concern relating to a seemingly increasing reluctance to 
grant search warrants in IPR -related cases, which are necessary for the pres ervation of evidence; 
                                                
291 Online information. Viewed at: https://www.export.gov/article?id=Taiwan -Protection -of-Property -
Rights .  
292 WTO document WT/TPR/S/302/Rev.1, 18 December 2015; online information 
(http://ipc.judicial.gov.tw/ipr_english/doc/Statistics/10612 -1.pdf). WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  IPR enforcement appears also hampered through reduced levels of sentencing and fines given to 
those convicted, an explanation considered by the authorities as lacking substantial supporting 
evidence.293  
Table 3.14 IPR enforcement within the market, 2012 -17 
District Prosecutors Offices  
 
Investigations 
concluded  Outcome (case)  
Indicted  
(ordinary 
procedure)  Indicted  
(summary 
judgement)  Deferred  Not 
indicted  Others  
2012 7,763  799 995 2,073  2,754  1,142  
2013 7,818  712 1,058  2,081  2,909  1,058  
2014 6,791  587 842 1,566  2,798  998 
2015 8,075  757 820 1,602  3,629  1,267  
2016 7,667  625 679 1,279  3,678  1,406  
2017 7,022  557 599 920 3,730  1,223  
Police Force  
 Total  Trademark 
violations  Copyright 
violations  Optical discs 
seized  Internet 
cases  
Cases  Suspects  Cases  Suspects  Cases  Suspects  No. of discs  Cases  
2012 5,484  6,342  3,260  3,716  2,224  2,626  131,648  2,892  
2013 5,730  6,623  3,475  3,983  2,255  2,640  99,608  3,535  
2014 4,910  5,730  2,760  3,120  2,150  2,610  350,604  2,929  
2015 5,014  5,691  2,804  3,070  2,210  2,621  183,958  3,935  
2016 4,946  5,527  2,642  2,908  2,304  2,619  3,912  893 
2017 4,523  5,191  2,123  2,446  2,398  2,742  3,572  92,306  
IPR police  
 Total 
cases  Types of cases  
Internet  Markets  Storefronts  Flyers  Factories  Others  
2012 2,576  1,570  402 562 3 6 24 
2013 2,754  1,803  370 551 2 2 27 
2014 2,115  1,393  217 458 1 9 37 
2015 2,428  1,963  100 345 0 6 14 
2016 2,516  2,143  119 238 1 8 7 
2017 2,162  1,694  103 108 0 38 219 
IP adjudication findings  
 Total adjudication  Imprisonment  Detention  Fines  Acquitted  Others  
2012 1,915  818 677 62 125 233 
2013 1,700  628 695 55 93 229 
2014 1,740  493 782 66 120 279 
2015 1,520  328 760 64 107 261 
2016 1,339  279 608 91 104 257 
2017 1,295  287 636 65 67 240 
Source:  Information provided by the authorities.  
 
                                                
293 Amcham online information. Viewed at: https://amcham.com.tw/wp -
content/uploads/2017/06/Intellectual -Property -Licensing -EN.pdf .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.  Agriculture, forestry and fisheries together accounted for 1.7% of GDP and 4.9% of total 
employment in 2017 (Table 1.2). Continuing a trend in evidence during the previous review 
period, the value of total agriculture, forestry and fishery produc tion continued to grow, peaking 
in 2014 and dropping off slightly in 2015 due to climate and weather factors, but recovering 
thereafter (Table 4.1).1 Inward investment in most agriculture and animal husbandry activities , as 
well as forestry, fishing and aq uaculture , is restricted under the applicable laws (Section 2.4.1 and 
Table A2.4); as indicated by the authorities , the decision as to whether to allow overseas 
investment rests with the Investment Commission, which relies on the advice of the Council of 
Agriculture (COA). Inflows of inbound direct investment into these sectors over the review period 
were negligible (Table 1.5).  
Table 4.1 Value of agriculture, forestry and fisheries production, 2012 -16 
(NT$ million)  
 2012  2013  2014  2015  2016  
Agriculture production  372,050  381,418  416,709  408,364  430,913  
Forestry production  375 432 382 244 207 
Fishery production  106,174  101,650  104,962  92,256  86,453  
Total  478,000  483,499  522,052  500,863  517,573  
Source:  COA (2016) Statistics Yearbook. Viewed at: 
http://agrstat.coa.gov.tw/sdweb/public/book/Book.aspx ; and information provided by the 
authorities.  
4.2.  The budgetary outlay for agriculture, fores try and fisheries reached NT$35.5 billion in 2017, 
down from 39.5 billion in 2016 and 35.8 billion in 2015. Budgetary support is most significant for 
agriculture (72.1% of the total in 2017), followed by forestry (16.4%) and fisheries (11.4%) 
(Table 4.2).  
Table 4.2 Budgetary outlays for agriculture, forestry, and fisheries by type of 
expenditure , 2015 -17 
(NT$ million)  
 2015  2016  2017  
Agriculture (total)  25,079.8  27,988.0  25,627.3  
- development of agricultural food technologies  161.5  143.3  722.6  
- general administration  741.9  775.7  270.4  
- agricultural food management  1,418.4  2,901.9  1,192.9  
- food administration operation  22,758.0  24,167.1  23,441.4  
Forestry (total)  6,226.4  6,370.1  5,841.2  
- forestry research  66.4  71.0  39.4  
- general administration  2,273.7  2,625.0  2,326.7  
- forestry management and development  3,886.3  3,674.0  3,475.2  
Fisheries (total)  4,478.8  5,138.1  4,052.2  
- management services  298.4  351.7  344.7  
- research services  161.3  182.1  179.1  
- fisheries management  3,050.3  3,363.0  2,376.5  
- fisheries development  968.8  1,241.3  1,152.0  
Source:  Information provided by the authorities.  
4.3.  The COA remains the entity responsible for the administration of forestry, agriculture, 
fisheries, livestock and other affairs concerning foodstuffs.2 An ongoing executive level 
reorganization will involve the establishment of an agriculture ministry, once the requisite decision 
has been taken by the l egislative branch. It is envisaged that the new ministry will improve the 
functioning of its departments, including through promoting agricultural technology 
industrialization, strengthening agricultural product safety and marketing, enhancing agricultural  
resource protection, implementing farmland water conservancy construction and rural 
                                                
1 Online information. Viewe d at: https://eng.coa.gov.tw/ws.php?id=2505341 .  
2 The various bodies falling under the COA's responsibilities were viewed at: 
https://eng.coa .gov.tw/ws.php?id=2501014 .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  development, and improving animal protection and pet management. The COA owns and manages 
the Pingtung Agricultural Biotechnology Park, while two other biotechnology parks  (for trees and 
orchids) are owned and managed by local administrations.  
4.4.  In 2014, an agricultural technology research institute (ATRI) was established by the COA as 
an independent foundation; it is intended to provide a platform for applying advanced agric ultural 
technology to the sector in order to enhance productivity and export competitiveness.  Apparently, 
this is part of a drive to encourage value chain agricultural production. The ATRI's responsibilities 
include analysing market information and technol ogical developments; and providing training 
services.3 There have been no other institutional changes since  2014.  
4.1.1   Agriculture  
4.1.1.1   Characteristics and policy objectives  
4.5.  The key impediments to the productivity and competitiveness of the agricultural sector in 
Chinese Taipei remain the fragmented nature of agricultural holdings and demographic trends (the 
average age of farmers is 63.5 years). The average farm size is still 1.1  hectares and the number 
of farming households has steadily increased from 749,375 in 2012 to 775,264 in 2015 
(Table  4.3).4 Low incomes in the farming sector have made it difficult to attract young people into 
the profession.5 Chinese Taipei is also vulnerable to natural disasters as witnessed by the damage 
inflicted by the typhoons Soudelo r and Dujuan in 2015, which also negatively impacted production 
and labour productivity.  
Table 4.3 Agricultural land, 2012 -15  
Year  No 
land <0.1 
hectare  0.1-0.5 
hectares  >0.5 
hectares  Total  
2012 Farming hou seholds  4,730  26,266  405,468  342,911  779,375  
Share in total agricultural 
household  0.6%  3.4%  52.0%  44.0%  100%  
2013 Farming households  3,978  23,423  407,053  345,853  780,307  
Share in total agricultural 
household  0.5%  3.0%  52.2%  44.3%  100%  
2014 Farming households  3,150  32,614  380,737  367,989  784,490  
Share in total agricultural 
household  0.4%  4.2%  48.5%  46.9%  100%  
2015 Farming households  4,848  13,355  383,430  316,331  775,264a 
Share in total agricultural 
household  0.6%  1.7%  48.9%  40.3%  100%  
a 2015 data includes a total of 57,300 farm households which did not engage in agriculture.  
Source:  COA (2016), Basic Agricultural Statistics 2015 . Viewed at: 
http://agrstat.coa.tw/sdweb/public/book/Book.aspx ; and information provided by the authorities.  
4.6.  Building on previous strategies6, Chinese Taipei's objectives for the agricultural sector are set 
out in its New Agricultural Policy, adopted in December 2016.7 This policy is based upon three 
                                                
3 FFTC Agricultural Policy Platform online information. Viewed at: 
http://ap.fftc.agnet.org/ap_db.php?id=241 .  
4 In 2015, this figure included 57,300 farming households t hat did not engage in agriculture.  
5 On average , farming families earn only just over 20% of their total income from farming.  
6 Previous strategies related to: transforming the agricultural sector from a traditional to a competitive, 
modern one; developin g organic agriculture; attracting young generation farmers and providing aged farmers' 
life care; expanding the scale of farms; building an agricultural corridor alongside the railway track linking 
southern Changhua county and Yunlin county (an area which suffers from serious land subsidence ); and 
diversifying and enhancing the quality of agricultural products. The various measures to be taken under these 
policies included: revitali zing agricultural communities; reactivating fallow land; conserving water us ed for 
irrigation purposes; using technology to assist with production and marketing; promoting interdisciplinary 
cooperation to expedite the establishment of industrial value chains; establishing an agricultural technology 
research institute; creating new  market opportunities through trade agreements; establishing an ageing farmer 
allowance plan; promoting the small landlords big tenants policy; providing training and education; 
establishing farmers' income compensation measures; launching an agricultural insurance plan for disaster 
relief; increasing domestic food self -sufficiency and encouraging local production and consumption; 
strengthening the food safety management mechanism; and highlighting brand characteristics of local produce WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  pillars (Table 4.4), as well as measures to improve agricultural structures (reactivating fallow 
farmland; establishing large -scale zones to specialize in farming selected crops; and encouraging 
young people to return to ru ral areas) and promote rural development through regenerating rural 
communities and promoting agro -tourism. According to the authorities, the overall aim is to 
actively create a multi -functional agricultural sector, rather than merely providing subsidies, as in 
the past. Measures are aimed at responding to natural disasters, stabilizing farmers' income s, 
improving the shortage of manpower, and enhancing modernized agriculture and its 
competitiveness.  
Table 4.4 New Agricultural Policy objectives  
Pillar  Objectives  
Pillar I: Establishing 
agricultural paradigms  Implement green environmental payments on farmland; promote agricultural insurance 
programmes; upgrade the livestock industry; enhance the conservation of fishery 
resources; promote green energy; sustainably use forest resources; promote smart 
agriculture; encourage young farmers; and activate local economies.  
Pillar II: Formulating a 
safety system for 
agricultural products  Establish a food security system;  implement the "Big Granary project" for non -GMO grain 
production areas; promote organic and environmentally friendly farming; ensure safe 
yields of agricultural produce at their source; increase the frequency of agricultural 
product inspections; and estab lish a trusted labelling system for agricultural products.  
Pillar III: Enhancing the 
capabilities of agricultural 
marketing  Support robust small -scale farmers and agribusiness; establish export companies for 
agricultural and fishery products; construct an  online trading platform for agricultural 
products; develop agricultural clusters; sign cooperative accords with trading partners.  
Source:  Information provided by the authorities.  
4.7.  Thus far, concrete measure s taken to achieve these objectives have , inter alia, included: the 
development and expansion of a traceability system for locally produced agricultural products so 
as to encourage local production and consumption; new regulations to strengthen food safety and 
quality8; expansion of Chinese Taipei's dis aster relief program me; a new public sector support 
programme for natural disaster crop insurance (see below); and loosened restrictions on 
employing external labour in the slaughtering industry to cope with manpower shortages.9 The 
COA has also undertaken  various training, R&D, and information technology support activities and 
launched an "Smart Agriculture 4.0 programme" which involves the introduction of advanced 
technologies into three focal areas (bio -agriculture, quality agriculture and precision agri culture); 
ten priority product categories have been selected as pilot industries in the first stage of 
promotion.10 As indicated by the authorities, results achieved from implementation of this 
programme thus far include: the creation of an information plat form for orchids, seedlings, 
mushrooms, rice and major export crops as well as procedures for customized planting; the 
establishment of a demonstration field for smart production of seedlings; and the development of 
a quick response (QR) coding system for access to the origin of agro products, with relevant 
information such as land location, farmers' information, and inspections undertaken.  
4.8.  Chinese Taipei set an overall food self -sufficiency target of 40% (based on calories) in 2011. 
According to the author ities, the overall food self -sufficiency ratio peaked in 2014 at 34% and now 
stands at 31% due to the impact of typhoons. There are no product -specific self -sufficiency 
targets. Efforts to meet the overall self -sufficiency goal as well as to increase the p roduction of 
import substitution crops (an objective contained in the New Agricultural Policy11) are largely being 
undertaken through the "Support for Diversified Crops" programme (see below) and the "Adjusting 
                                                                                                                                                  
through origin certi fication. The various policies were viewed at: 
https://eng.coa.gov.tw/theme_list.php?theme=eng_policies .  
7 The New Agricultural Policy is only available in Chinese ( https://www.coa.gov.tw/ws.php?id=3 ). 
8 Amendments were made to the Agro -Pesticides Management Act to increase fines for manufacture, 
trade, sale, distribution, etc. of banned agro -chemicals. Online information. Viewed at: 
https://eng.coa.gov.tw/ws.php?id=2505341 .  
9 Online information. Viewed at: https://eng.coa.gov.tw/ws.php?id=2505351 .  
10 The "Smart Agricultur e 4.0 program me" is part of the wider "Productivity 4.0 Initiative" which 
concerns other sectors of the economy. Advanced technologies include sensors, digital devices, internet of 
things (IoTs), and big data, which will be used to digitali ze knowledge, au tomate production, produce quality 
products, facilitate operations and promote cloud -based source -tracing . The ten product categories are: 
phalaenopsis orchids; seedlings; mushrooms; rice; agricultural facilities; aquaculture; poultry; traceable 
agro-products; dairy; and deep -sea fishing. Online information. Viewed at: 
https://eng.coa.gov.tw/ws.php?id=2505350 .  
11 Among the objectives contained in the New Agricultural Policy are to encourage farmers to grow 
import -substitute crops and to encourage the cultivation of  fallow farmland with import -substitute crops or 
non-GMO soybean and maize.   WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  the Cropping System and Revitalizing Fallow La nd" programme launched in  2013. Under  the latter 
programme, fields may only be left fallow for one growing season during the year (during which 
green manure crops must be grown); in the other season, farmers are encouraged to cultivate 
(a) import substitution crops; (b) crops with export potentia l; (c) organic crops; or (d)  crops with 
unique local characteristics12; they are eligible for diversion payments ranging from NT$15,000 to 
NT$45,000 per hectare. Other measures in place, inter alia , to encourage farmers to plant import 
substitution crops in clude: providing subsidies for farming equipment; setting up a platform for 
farmland renting brokerage; providing interest -free loans for renting land and low -interest loans 
for business operations; and implementing disaster relief (see below).13 The main i mport 
substitution crops being grown are feed corn, soybean and wheat. In 2016, Chinese  Taipei 
produced 65,105 tonnes of feed corn (with a value of NT$586 million); 3,061 tonnes of soybean 
(with a value of NT$176 million) and 3,638 tonnes of wheat (with a value of NT$116  million). 
Since 2014, the volume and value of soybean production has increased each year while the 
volume and value of feed corn and wheat have fluctuated.  
4.9.  Price stabilization measures are in place for certain agricultural products (Table 3.7). 
4.1.1.2   Legislative framework  
4.10.   The main law governing the sector remains the Agricultural Development Act of 1973 as 
amended.14 The Act was further amended once over the review period, in 2016, in order to 
exempt farms organized in the form of a sole proprieto rship or partnership and legally  registered 
agricultural cooperatives from profit -seeking enterprise income tax (which is levied at a rate of 
17% over a certain threshold) for selling self -produced primary agricultural products.15 The 
exemption is in force for a five year period, starting from 11 November 2016 . The estimated 
revenue foregone for this tax exemption is NT$16.96 million per year.   
4.1.1.3   Production and trade  
4.11.   Crop production represents nearly 62% of the value of total agricultural production and 
livest ock production, just over 38%. In value terms, fruit, hogs, vegetables and rice are the most 
important items reared or produced (Table 4.5).  
Table 4.5 Value of agricultural production, 2012 -16  
 2012  2013  2014 2015  2016  
Agricultural production 
(NT$  million)  372,050  381,418  416,709  408,364  430,913  
Crop production (%)  60.1 60.7 59.5 59.9 61.6 
- Paddy rice  10.7 9.7 10.0 9.2  8.8 
- Coarse grain  2.2 2.4 3.0 2.6 3.0 
- Special crops  3.3 3.2 3.1 3.1  3.0 
- Vegetables  16.5 16.1 14.4 15.8 17.9 
- Mildew  1.5 1.6 1.6 2.1 2.2 
- Fruit 21.3 23.0 23.3 22.5 22 
- Ornamental plants  4.3 4.3 4.0 4.1 4.1 
Livestock production (%)  39.9 39.9 40.5 40.1 38.4 
- Hogs 17.9 17.4 18.4 17.6 16.6 
- Broiler chickens  4.3 4.4 4.5 4.6 4.5 
- Colourful broiler chickens  5.6 5.5 5.3 5.4 5.2 
- Mule and Muscovy duck  1.4 1.7 1.8 2.1 2.0 
- Cow milk  5.5 5.0 5.2 5.5 2.3 
- Hen eggs  5.2 5.0 5.2 5.5 5.4 
Source:  COA (2016), Statistics Yearbook . Viewed at: 
http://agrstat.coa.gov.tw/sdweb/public/book/Book.aspx ; and information provided by the 
authorities.  
                                                
12 Online information. Vi ewed at: https://eng.coa.gov.tw/ws.php?id=2505342  and 
https://eng.coa.gov.tw/ws.php?id=2505358 .  
13 WTO document WT/TPR/M/302/Add.1, 23 October  2014 [p. 25].  
14 For further details on the Act see WTO document WT/TPR/S/165/Rev.1, 10 October 2006. The 
Agricultural Development Act was viewed at: 
http://law.coa.gov.tw/G LRSnewsout/EngLawContent.aspx?Type=E&id=239 .  
15 The Agricultural Development Act, Article 47 -1.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.12.   Chinese Taipei has a trade deficit in food, and imports supply a significant part of 
consumption. Imports of food (excluding fish) represented about 4.5% of total merchandise 
imports in 2015 and 2016, the major products being: soybeans, corn and food prepa rations. 
In 2016, Chinese Taipei's main sources of food imports were, in order of importance: the 
United  States, the European Union , Brazil, Japan and New Zealand.  
4.13.   Exports of food (excluding fish) comprised about 0.8% of total merchandise exports both in 
2015 and 2016, and major exported products included food preparations, spirits, and non -alcoholic 
beverages. The main destinations include: China; the United States; Hong  Kong, China; and 
Japan. According to official sources, Chinese Taipei is the world's l argest exporter of orchids, 
representing over 90% of flower export value in 2015.16 
4.1.1.4   Trade measures  
4.1.1.4.1   Tariffs  
4.14.   The average applied MFN tariff for agricultural products (WTO definition) including AVEs was 
17.8% in 2018 (Table 3.1). 7.2% of tariff lines for agricultural products are subject to 
non-ad valorem  rates and the simple average AVE is 68.1%. Thirty tariff lines had rates over 
100%, mainly as a result of the tariff lines with out -of-quota rates. The highest MFN tariffs apply 
to: areca (betel) nuts, fr esh or dried (1 tariff line at 1,059.6%); other deer velvet (1 tariff line at 
500%); various rice and rice products (12 tariff lines with rates ranging from 100.9% to 476.8%); 
various ground nut and ground nut products (7 tariff lines with rates ranging fr om 120.8% to 
338%); fresh or dried pomelos (1 tariff line at 184%); fresh or dried pineapples (2  tariff lines at 
173%); dried longans and longan pulp (1 tariff line at 137.8%); coconuts, shelled and other 
(2 tariff lines at 120%); dried cashew nuts in shel l (1 tariff line at 116.8%); dried shitake (1 tariff 
line at 109%); and dried day lily (1 tariff line at 103%).17 
4.15.   At the time of Chinese Taipei's previous review, the authorities indicated that tariff 
reductions would be considered based on the outcomes of the Doha Development Agenda (DDA) 
negotiations.18 In the context of this Review, the authorities confirmed that Chinese Taipei's 
position in this regard has not changed.  
4.16.   Over the review period, temporary tariff reductions were applied to milk and cream, por k fat 
and lard, poultry fat and goose meat (Section 3.1.3.7).  
4.1.1.4.2   Tariff quotas  
4.17.   Chinese Taipei applies tariff -rate quotas (TRQs), under its multilateral  agricultural 
market -access commitments, on 85 agricultural tariff items at the HS eight -digit level  
(Sectio n 3.1.3.5).  
4.1.1.4.3   Special safeguard measures  
4.18.   Special safeguard measures (SSGs) were taken several times during the review period 
(Section 3.1.6.2). During Chinese Taipei's previous review , it was observed that there had been  a 
notable increase in price -based SSG s since 201319; this tendency is also reflected in the current 
review period (Table 4.6). The authorities have indicated that the increased activation of 
price-based SSG's at some points may have been due to changes in domestic supply and demand, 
as well as  the commercial (i.e. profit) considerations of importers.20  
                                                
16 Online information. Viewed at: https://english.ey.gov.tw/cp.aspx?n=D558EBF449B7C570 .  
17 Eight tariff lines have ad valorem  rates: other deer velvet; coconuts, shelled; other coconuts; 
pineapples fresh or dried (2 lines); pomelos, fresh or dried; crude ground -nut oil; refined ground -nut oil and its 
fractions.  
18 WTO Document WT/TPR/M/302/Add.1,  23 October 2014.  
19 With respect to price -based SSGs, once the import price falls below the trigger price, an additional 
duty may be imposed on a batch -by-batch basis according to Article 5 of the Agreement on Agriculture. In 
principal, trigger prices equal the average 1990 to 1992 c.i.f. import prices of the product. Trigger prices of 
some products, which were not imported during the base period, are based on the c.i.f. prices of those 
products in neighbouring markets.  
20 The authorities confirmed that this explanation provid ed during its previous review (WTO document 
WT/TPR/M/302/Add.1, 23 October 2014) remains valid.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Table 4.6 Special safeguard measures invoked, 2014 -17  
 Description of product  Volume -based SSGsa Price -based -SSGsa 
Cases  Quantity affected (kg)  
2017 Rice - 36 5,952  
Peanuts  03.03 to 31.12  2 300 
Garlic  10.01 to 31.12  - - 
Betel Nuts  13.03 to 31.12  - - 
Chicken legs and wings  - 1,217  41,343,629  
Other chicken cuts 09.06 to 31.12  24 204,162  
Fresh milk  03.08 to 31.12  29 68 
Other liquid milk 24.10 to 31.12  13 727 
Red beans  20.01 to 31.12  - - 
Dried shiitake  20.10 to 31.12  4 3,818  
Persimmon  17.11 to 31.12  - - 
Dried day lilies  22.12 to 31.12  - - 
Pork belly  04.09 to 31.12  109 658,850  
2016 Peanuts  15.12 to 31.12  7 1,781  
Garlic  29.07 to 31.12  - - 
Chicken legs and wings  16.11 to 31.12  2,018  84,281,753  
Other chicken cuts  26.10 to 31.12  73 859,785  
Fresh milk  28.07 to 31.12  - - 
Other liquid milk  08.12 to 31.12  22 11,009  
Red beans  27.06 to 31.12  - - 
Pomelos  23.05 to 31.12  - - 
Persimmon  08.11 to 31.12  - - 
Pork belly  22.09 to 31.12  37 555,050  
2015 Rice 24.12 to 31.12  1 1,460  
Peanuts  15.12 to 31.12  21 1,150  
Pears  09.11 to 31.12  - - 
Chicken legs and wings  16.07 to 31.12  819 37,462,135  
Other chicken cuts  - 33 61,952  
Fresh milk  26.08 to 31.12  39 27,175  
Other liquid milk  26.10 to 31.12  - - 
Livestock offal  17.09 to 31.12  - - 
Red beans  - 1 2 
Dried shiitake  - 4 33 
Persimmon  17.11 to 21.12  -  
Pork belly  21.08 to 31.12  21 603,565  
2014 Rice - 7 29,670  
Peanuts  11.04 to 31.12  - - 
Pears  26.11 to 31.12  - - 
Garlic  21.12 to 31.12  - - 
Betel nuts  29.04 to 31.12  - - 
Chicken legs and wings  05.09 to 31.12  28 789,445  
Other chicken cuts  - 23 605,428  
Fresh milk  03.09 to 31.12  - - 
Other liquid milk  03.11  to 31.12  33 44,903  
Red beans  - 2 538 
Dried shiitake  17.11 to 31.12  5 3,062  
Pork belly  29.09 to 31.12  21 513,115  
a  If both the 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/160, 7 February 2018; G/AG/N/TPKM/149, 6 March 2017; 
G/AG/N/TPKM/149/Corr.1, 23 March 2017; G/AG/N/TPKM/134, 21 March 2016; and 
G/AG/N/TPKM/122, 11 March 2015 and information provided by the authorities.  
4.1.1.4.4   State trading  
4.19.   Rice remains the only agricultural product subject to state -trading. The Agriculture and Food 
Agency (AFA) under the COA regulates the production, purchase, warehousing, export and import 
of rice, with a view to ensuring food security, market  stability and income security for farmers. The 
AFA purchases a portion of the paddy rice owned by farmers for food security stocks (at least 
three months ' consumption) at guaranteed prices, while most of the rice produced enters the 
market freely (Table  4.7). Food security stocks are mainly released to schools for school lunches 
(around 20,000 tonnes per year). The AFA has the exclusive right to import the public sector 
portion of the TRQ on rice, i.e. 65% of the TRQ.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Table 4.7 Arrangements for rice, 2015 -16 
('000 metric tonnes)  
 2015  2016  
Total quantity imported  152.9  150.8  
Quantity imported by the AFA  94.0 94.0 
Total quantity exported  93.3 104.6  
Quantity exported by the AFA  0 0 
Chinese Taipei's production (brown rice)  1,260.4  1,264.1  
Domestic purchases by the AFA (paddies)  363 398 
Chinese Taipei's supply (brown rice)  1,217.8  1,188.5  
Domestic sales by the AFA (brown rice)  459.2  430.6  
Source:  Information provided by the authorities.  
4.1.1.4.5   Export promotion, restriction and prohibition  
4.20.   Chinese Taipei has notified the Committee on Agriculture that no export subsidy 
programmes subject to reduction commitments have been applied.21 
4.21.   Chinese Taipei helps farmers to enhance global recognition of their agricultural products and 
increase exports by conducting and facilitating international marketing programmes, holding 
overseas exhibitions, and building brand images. As noted in Chinese Taipei's previous review , the 
coverage of beneficiary products in thi s program me is wide, including fish (tuna, grouper, and 
tilapia), orchids, tea, soya bean and fruits (bananas and mangos).22  
4.22.   Export prohibitions are in place for Coypu (Myocastoridae); dog meat; mushroom spawn 
and products (containing narcotics); dutchmans pipe (including its fruits); and Southern Fangchi 
Root (Table A3.4). The re -export of subsidized fertilizers (see below) is prohibited.  
4.1.1.5   Domestic support measures  
4.1.1.5.1   Notified support levels  
4.23.   A complete and up -to-date picture of domestic support levels, as noti fied to the WTO, was 
not available , since Chinese Taipei's most recent domestic support notification only covers 2011 
and 2012. In the context of this Review, the authorities indicated that a new notification will be 
submitted soon. Total domestic support for agriculture, including Green Box, and Amber Box 
(i.e. including de minimis  levels), amounted to NT$ 52.8 billion  in 2012 and fluctuated in the 
preceding years (Table A4.1).  
4.24.   The current total Aggregate Measurement of Support (AMS) reached NT$8 billion in  2012, 
up from NT$7.2 billion in 2011; and NT$3.9 billion in 2010 and 2009 respectively.  
4.25.   Over the period 2009 -12, product -specific support increased from NT$4.2 billion to 
NT$9  billion over this period; it is most significant for rice. A notable trend is i ncreased support for 
vegetables which increased from NT$217 million to NT$634 million over the same period 
(Table  A4.1).  
4.26.   The non -product -specific component of the AMS fluctuated over the period : NT$9.2 billion in 
2009, NT$6.2 billion (2010), NT$7.1 billion  (2011) and NT$6.8 billion (2012). As at the time of 
Chinese Taipei's previous review, fluctuations have been partly linked to changes in world prices 
for fertilizers and crude oil. In 2012, the main non -product -specific AMS expenditures were on the 
agricu ltural fertilizer price difference subsidy (NT$4 billion) (see also Section  4.1.1.5.2.2 below) 
and interest subsidies (NT$2.2 billion) (see also Section 4.1.1.5.2.3 below) (Table A4.1).  
4.27.   Support notified under the Green Box was nearly NT$43 billion in 2011 and nearly 37 billion 
in 2012, a decrease from peak support levels in 2009 (just over NT$44 billion). The biggest 
budgetary decrease over the period was in the area of payments for relief from natural disasters 
                                                
21 Notifications cover the review period up to 2017, inclusive. WTO  documents: G/AG/N/TPKM/159, 
23 January 2018 (for 2017); G/AG/N/TPKM/146, 23 January 2017 (for 2016); G/AG/N/TPKM/132, 
29 January  2016 (for 2015); and G/AG/N/TPKM/121, 10 February 2015 (for 2014).  
22 WTO Document WT/TPR/M/302/Add.1, 23 October 2014.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  (see also Section 4.1.1.5.2.5 below). Support  for general services, the largest category, peaked 
in 2011, influenced mainly by increased support to infrastructural services (Table A4.1).  
4.1.1.5.2   Selected incentives and support  
4.1.1.5.2.1   Price support – guaranteed purchases  
4.28.   Chinese Taipei subsidi zes producers of rice and sugar by buying these products at 
guaranteed prices, which are generally higher than market prices. The authorities confirmed that 
guaranteed prices are the only form of price support used.  
4.29.   With respect to rice, the COA has implemented a two -track polic y since January 2018. 
Farmers can choose to either receive a "green payment" of NT$10,000 -NT$13,500 per hectare or 
to sell rice to the Agriculture and Food Agency (AFA) at guaranteed prices , as previously (see 
below). The purpose of the two -track policy is  to encourage farmers to plant high quality rice and 
sell it to the market; this should reduce the distortion in rice market prices and, by reducing 
support, speed up reform of the rice industry. The authorities indicated that it is too early to see 
which support option farmers generally prefer.  There continue to be three types of guaranteed 
purchases of rice through the Agriculture and Food Agency (AFA): planned, supplementary and 
additional. Limits on the quantity of the different rice types that may be p urchased have not 
changed since Chinese  Taipei's previous review (Table 4.8). The "planned" purchase category 
takes into account production prices and is usually higher than the market price, while "additional" 
prices are not and the "supplementary" purcha se prices depend on demand.23 As indicated by the 
authorities, the purpose of having the "additional prices" is to avoid prices being lower than 
production costs. The "supplementary" prices aim at stabilizing market prices. Farmers who 
produce rice in paddy  fields are eligible for all three types of guaranteed purchase, while those 
producing in upland areas are only eligible for "supplementary" and "additional" purchases. The 
amount spent on the subsidy was NT$583 million in 2014 and NT$696 million in 2015.  
Table 4.8 Guaranteed purchases of rice  
 Guaranteed prices  Quantity limit  
Planned 
purchase  NT$26/kg for Japonica -type rice  
NT$25/kg for Indica -type rice and glutinous rice  2,000 kg/hectare for the first crop  
1,500 kg/hectare for the second crop  
Supplementary 
purchase  NT$23/kg for Japonica -type rice  
NT$22/kg for Indica -type rice and glutinous rice  1,200 kg/hectare for the first crop  
800 kg/hectare for the second crop  
Additional 
purchase  NT$21.6/kg for Japonica -type rice  
NT$20.6/kg for Indica -type rice and glutinous rice  3,000 kg/hectare for the first crop  
2,400 kg/hectare for the second crop  
Source:  WTO document G/SCM/N/315/TPKM, 24 July 2017.  
4.30.   Guaranteed purchases of sugar are undertaken by the "Taiwa n Sugar Corporation"  (TSC), a 
publicly owned enterprise. The TSC concludes contracts with sugar farmers for the purchase of 
sugarcane and sugar sharing. Sugarcane farmers obtain 55% of the sugar made from sugarcane, 
and are paid either the domestic sugar s elling price (which is based on the international sugar 
price), or the prepaid contract price (NT$24,878 per ton), whichever is higher. The contract price 
takes into account domestic sales and marketing costs and it has been frozen since 1990. Sugar 
factor y subsidies include covering the costs of transporting sugar cane, and contract costs such as 
cane garden fire insurance and parasitic wasp tablets. The cost of guaranteed purchases and sugar 
factor y subsidies was a total of NT$248.75 million over the peri od 2014 -17. 
4.1.1.5.2.2   Fertilizer subsidies  
4.31.   From May 2008, the COA had subsidized the price increases of chemical fertilizers, with 
farmers paying the pre -May 2008 price plus 15% of the price increase.24 The subsidy was granted 
based on the actual usage of fertilizer, with no limit on the amount of subsidy per farmer. This 
subsidy scheme was terminated in July 2017.  
4.32.   Two new fertilizer subsidy schemes were introduced in 2018. Farmers in remote areas and 
offshore islands are eligible for a fertilizer freight subsidy of NT$500 per tonne. Additionally , all 
farmers are eligible for freight subsidies (also at NT$500/tonne) for composite fertilizers containing 
                                                
23 WTO document WT/TPR/S/302/Rev.1, 18 December 2015.  
24 WTO document WT/TPR/S/302/Rev.1, 18 December 2 015  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  organic matter. The purpose of the latter scheme is t o promote eco -friendly agriculture and reduce 
the use of chemical fertilizers.  
4.1.1.5.2.3   Interest subsidy  
4.33.   All farmers and fishermen are eligible for loans with subsidized interest rates in order to 
operate smoothly (update equipment, improve skills and innovation, increase the value -added of 
their products, strengthen sales, respond to natural disasters etc.). The loan capital is provided by 
credit departments of farmers' associations and fishermen's associations or the Agricultural Bank. 
The source of finance for t he subsidy is the Agricultural Development Fund. The amount of the 
interest subsidy was NT$1.7 billion in 2014 and NT$1.4 billion in 2015. In 2015, as in previous 
years, the main expenditure was on loans for accelerating rural construction (81.6% of loans) ; the 
next biggest category of loans were those to expand the family farm and support land purchases 
by farmers (9.2%); followed by loans for farm machinery (5.6%); and then loans for natural 
agricultural disasters (3.5%).25 
4.1.1.5.2.4   Insurance subsidies  
4.34.   The COA runs  three livestock insurance programmes. Under the pig mortality insurance 
programme, the authorities pay 40 -70% of the insurance premiums and farmers pay the 
remaining 60% -30% depending on the rearing scale of pig farms. Under the pig transportation 
insuran ce programme, the authorities pay 50% of the insurance premiums and farmers pay the 
remaining 50%. Under the dairy cattle mortality insurance programme, the authorities pay 70% of 
the insurance premiums and farmers pay the remaining 30%. The authorities in dicated that the 
average annual cost of these subsidies was around NT$230 million.  
4.35.   In 2015, the COA initiated a new programme for natural disaster insurance for agricultural 
crops; it subsidi zes one -third to one -half of the premiums for approved insurance products offered 
by private insurance providers. The amount of the premium subsidy for the year 2017 was around 
NT$18.23 million. Seven items have been included in the initial period of this insurance scheme 
(pears, mangoes, custard apples, paddy rice, aqu atic products, grouper, and bird flu).  
4.1.1.5.2.5   Disaster relief programmes  
4.36.   Over the review period, amendments were made to the Regulations for the Relief of 
Damage Caused by Natural Disasters in the wake of the 2015 typhoons. Certain crops and 
fisheries items which  were previously not eligible for relief are now eligible for low interest rate 
loans.26 Additionally, changes were made to expand eligibility for post -disaster cash relief as well 
as to increase the value of such relief.27 As reported by the authorities, to tal relief allocations 
in 2015 amounted to NT$3.6 billion , benefitting 139,400  households , and 353 farm or fishing 
households received low -interest loans totalling NT$26  million.28  
4.1.1.5.2.6   Support for Diversified Crops programme  
4.37.   Under the "Support for Diversified Crops" programme, payments are made to farmers 
whose circumstances  fall under one of the following categories : (a) growing rice in the base year 
(1994 -2003); (b)  growing guaranteed price purchase crops of feed corn, sorghum or sugarcane in 
the base year; o r (c) registering as set -aside or diversion under "Rice Production and Rice Field 
Diversion Projects" in the base year. Diversion payments range from NT$15,000 to NT$45,000 per 
hectare. The amount of the subsidy granted in 2014 was NT$3.5 billion and in 20 15, 
NT$3.7  billion.29  
                                                
25 WTO document G/SCM/N/315/TPKM, 24 July 2017.  
26 Additional crops eligible for disaster relief are: citrus fruit, b amboo shoots and short -term vegetables. 
Additional fishery items are: grouper, eel, ornamental fish raised in outdoor fish ponds, and in door aquaculture 
production and management facilities.  
27 Online information. Viewed at: https://eng.coa.gov.tw/ws.php?id=2505353 .  
28 Online information. Viewed at: https://eng.coa.gov.tw/ws.php?id=2505360 .  
29 WTO document G/SCM/N/315/TPKM, 24 July 2017. In 2015, the breakdown of the subsidy was: 
NT$527 million for feed corn; NT$95 million for vegetables; NT$519 million for forage crops; and NT$2 .6 billion 
for other crops.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.1.1.5.2.7   Small Landlords, Big Tenants Policy  
4.38.   Under the "Small Landlords, Big Tenants" policy, launched in May 200930, small landowners 
over 65 years old who have paid agricultural insurance for over five years and who lease their land 
to tenant s may receive a monthly incentive of NT$2,000 per hectare up to a maximum of 
3 hectares (NT$72,000 annually). The measures to assist big tenants are: (a) a subsidy for 
improving leased agricultural land; (b) a subsidy for contract farming; (c) enterprise m anagement 
assistance packages (including subsidies for purchasing production equipment and applying for 
verification of healthy and safe agricultural products ); zero -interest rent and low -interest (1%) 
loans; and (d)  natural disaster assistance. By the end  of December 2017, the policy had assisted 
19,427  hectares, 39,701 small landlords and 2,279 big farmers, and the authorities report that it 
has met the objectives of expanding farm size and encouraging participation of younger farmers.31 
The cost of this p olicy was NT$1.23 billion in 2016.  
4.1.1.5.2.8   Support to discontinue tobacco production  
4.39.   The purchase of domestically  produced tobacco leaf used to be regulated by the 
Government Procurement Act and was conducted through a restricted tendering procedure. The 
purchase price took into account costs, market prices and past awards. The value of tobacco leaf 
purchased in 2015/16 was NT$283.1 million and NT$276.8 million in 2016/17. In February 2017, 
this procurement practice was terminated. The COA enacted "Operating Guidel ines for Advising 
Farmers to Declare Abandonment of Tobacco Leaf Production" with a view to encouraging farmers 
who brought in tobacco leaves for procurement during the period 2016/2017 to abandon their 
undertaking. The farmers who made such a declaration were eligible for a one -time payment of 
NT$600,000 per hectare. Farmers may apply for support to transfer production into other crops, 
under the policy of "Basis for Support Provision to Farmers Transferring Away from Tobacco Leaf 
Production".  
4.1.1.5.2.9   Other  
4.40.   Farme rs also receive reduced -price gasoline and diesel  (Table 3.7). Under the Act of 
Irrigation Association Organization, members of the Irrigation Association are entitled to use 
irrigation and drainage facilities; the COA pays the membership fee for farmers a nd hence they 
effectively receive their water free of charge. Under the "Income Tax Act" farmers are permitted to 
deduct 100% of costs and necessary expenses from their whole year's income, and the income tax 
is zero.  
4.1.2   Forestry  
4.41.   The forestry sector in Chines e Taipei is small , accounting for 0.01% of GDP in 2016.32 There 
are an estimated 268,317  persons employed in the sector. Green forests cover nearly 61% of the 
surface area (some 2,197,000 hectares) and reforestation efforts have resulted in a 2.2% increase 
in the forested area since 1993.33 Publicly  owned forests (including forests owned at central and 
county/city levels) cover 1,857,000 hectares, of which there are 460,000 hectares of protected 
forests.34 The estimated size of commercial forest land, includin g both publically and privately  
owned forests is 290,000 hectares. The logging of primary forests has been banned since  1990.  
4.42.   Harvesting of yields on publicly  owned forests is carried out according to an annual logging 
plan which is compiled by the Forestr y Bureau (see below).35 Owners of private forest lands must 
also submit logging plans to be included in the annual logging plan. Various efforts have been 
taken to prevent illegal logging, including: the production of an illegal logging high risk area map; 
a rewards system for reporting illegal logging; and the recruitment of volunteer forest rangers to 
work alongside full -time rangers.36 As noted by the authorities, promotional activities, such as 
participating in exhibitions, are being undertaken to encoura ge the use of domestic timber.  
                                                
30 The stated objectives of this policy are to rejuvenate the agricultural labour structure, expand farm 
scale and give retirement relief to elderly farmers.  
31 Online information. Viewed at: 
https://eng.coa.gov.tw/theme_data.php?theme=eng_policies&sub_theme=eng_programs_services&id=17 .  
32 Online statistical information. Viewed at: http://http//eng.stat.gov.tw . 
33 Online information. Viewed at: https://www.forest.gov.tw/EN/forest -news/0060708 .  
34 Online information. Viewed at: https://www.forest.gov.tw/EN/forest -news/0060308 .  
35 Forestry Act, Article 15.  
36 Online information. Viewed at: https://www.forest.gov.tw/EN/forest -news/0060308 .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.43.   The Forestry Bureau under the COA continues to regulate the development of forestry. The 
main law is the Forestry Act of 2004, as amended. Amendments to the Act in 2016 introduced 
articles relating to the protection of trees  outside forests; the extension of an awards system for 
achievements in protecting or adopting trees; and penalties for illegal activities.  
4.44.   The objectives for the sector as set out in the New Agricultural Policy (see above) are to: 
promote afforestation an d reforestation; strengthen forest preservation and comprehensive 
management of forests; promote nature conservation; preserve wild animal and plant resources; 
ensure the sound functioning of ecological systems; strengthen the economic value of forest land  
and upgrade the quality of forest recreation areas.37  
4.45.   The value of forestry production has fluctuated in recent years, from a high of 
NT$432  million in 2013 to a low of NT$207 million in 2016 (Table 4.1) Over the period under 
review, the volume of timber logged steadily decreased from 37,899.19  m3 in 2014 to 
24,769.23  m3 in 2016;  with most timber being logged from publically  owned forests.38 
4.46.   Most imported wood products (114 out of the 131 tariff lines in HS chapter 44) face zero 
tariffs, and the simple aver age tariff is 1.4%. According to the authorities, 99% of the timber used 
in Chinese Taipei is imported. Timber and timber products from CITES species may not be 
imported or exported. There is no requirement to process wood prior to export.  
4.47.   In 2013, in orde r to activate idle farmlands, the COA launched the Adjusting the Farming 
System Program me to promote 6 to 10 years of short -term economic forestation. This program me 
aims to increase the self -sufficiency rate of local wood industries, provide diversified u tilization of 
local farmland and also to contribute to carbon sequestration.39 Financial support is available to 
farmers and forest  owners to help them pay for various kinds of certification fees.  
4.1.3   Fisheries  
4.1.3.1   Overview  
4.48.   In 2016, fishing accounted for 0.23% of GDP.40 According to the authorities, in 2016, 
Chinese  Taipei had a 2.2% share in global fisheries' landed value and a 0.7% share of global 
aquaculture production value. It is estimated that in 2016 the sector employed 236,593 persons 
and that there were 22, 695 locally  registered fishing vessels, comprising a total of 596,759 GT. 
According to official sources, the key challenges facing the sector include demographic trends, with 
an outflow of workers into other sectors; offshore and coastal water contaminatio n which has 
depleted fish stocks; a deterioration in the environment for fish farming; and climate change. To 
address the challenges of conserving coastal and offshore fisheries resources, the Fisheries Agency 
(FA) of the COA is promoting the reduction of fishing, fostering habitat cultivation and 
environmental maintenance, strengthening conservation and management and campaigning for 
monitoring, control and surveillance of coastal fisheries to ensure the sustainable utilization of 
fisheries resources. To a ddress labour shortages, incentives have been adjusted to graduates of 
maritime schools and training centres to encourage young people to stay in the industry. 
Additionally, possibilities to engage overseas fisheries workers have been expanded (see below).   
4.49.   The objectives for the sector as set out in the New Agricultural Policy (see above) are to 
pro-actively participate in international fisheries organizations; implement norms for management 
of fishing vessels; strengthen measures to increase coastal fishe ries resources and preserve 
coastal ecologies in a sustainable manner; improve water supply facilities for areas where 
aquaculture is concentrated; and strengthen on -site monitoring, testing, and management of the 
use of pharmaceuticals for fisheries produ cts.41 Other key objectives are to combat IUU fishing 
through implementation of legislation and action plans (see below).  
                                                
37 New Agricultural Policy. Viewed at: https://eng.coa.gov.tw/ws.php?id=2505347 . These goals are also 
set out in the stated goals of the Forestry Bureau. Viewed at: https://theme.forest.gov.tw/Policies/Important -
Policies/en/ .  
38 In 2014, 15% of total timber logged was from private forests, 9% in 2015 and 24% in 2016.  
39 The area of short -term economic forestation under the Program me was 33 hectares in 2013; 33 
hectares in 2014; 49 hectares in 2015; 74 hectares in 2016 and 27 hectares in 2017.  
40 Online statistical information. Viewed at: http//eng.stat.gov.tw .  
41 New Agricultural Policy. Viewed at: https://eng.coa.gov.tw/ws .php?id=2505347 .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.50.   In August 2015, Chinese Taipei joined the North Pacific Fisheries Commission and has been 
actively participating in its meetings.  
4.51.   Chinese Taipei issued its plan of action to prevent , deter and eliminate illegal, unreported 
and unregulated fishing (IPOA -IUU) in 2013 to complement the United Nations Food and 
Agriculture Organization (FAO) 2001 International Plan of Action in this area.42 
4.1.3.2   Legal and institutional framework  
4.52.   The main law governing the sector is the Fisheries Act of 2008, as amended. Its objectives 
are to: ensure the conservation and rational use of aquatic resources; increase fisheries 
productivity; promote sound fisheries devel opment; guide and assist recreational fisheries; 
maintain the orderly operation of fisheries; and improve the livelihood of fishermen.43 The 
Fisheries Act restricts engagement in fisheries operations in Chinese Taipei to locals, unless a 
cooperation agreeme nt is reached.44  
4.53.   There have been several legislative, institutional and regulatory developments in the 
fisheries sector over the review period, largely in order to strengthen Chinese Taipei's framework 
to prevent illegal, unreported and unregulated fishing  (IUU). This is in part in response to a yellow 
card warning issued by the E uropean Union  in 2015 to Chinese  Taipei regarding perceived 
shortcomings in its regime for preventing illegal fishing.45 As reported by the OECD, a Five -Year 
Program me for strengthe ning international cooperation on combatting IUU fishing began in 
January 2016, which includes: a reformed legal framework; an international economic and trade 
strategy; rules for traceability of fish and fisheries products; and new regulations for control  and 
management of coastal and offshore fishing vessels in port and at sea. A plan of control and 
inspection was set up in 2015 to conduct monitoring, control and surveillance measures  on 
domestic fishing vessels and to ensure their compliance with interna tional regulations and 
domestic management measures to prevent, deter and eliminate IUU fishing activities. Additional 
landing declaration requirements and transhipment controls were strengthened.46 According to 
official sources, heavy fines or criminal san ctions as main penalties have been introduced, 
supplemented by other management actions (i.e. revocation of fishing licence, forfeiture of catch, 
fishing gear and fishing vessel, and a requirement for the violating vessel to stop fishing and 
return to a de signated port within a given time -frame). A 24/7  Fisheries Monitoring Centre has 
also been established allowing fishermen to receive notices from the COA and minimize the 
possibility of unintentional violations.47 The authorities indicated that they are wor king with the 
European Union  to be released from the yellow card warning.  
                                                
42 Online information. Viewed at: https://www.fa.gov.tw/en/Policy/content.aspx?id=26&chk=e5df77d1 -
3ad0-49a2-9837-3e511 7f1e850&param=pn%3d1 .  
43 The Fisheries Act (2008). Viewed at: 
http://law.coa.gov.tw/GLRSnewsout/EngLawContent.aspx?lan=E&id=231&KW=fisheries+act .  
44 The Fish eries Act, Article 5. The regulatory framework for cooperation agreements are the Regulations 
on External Fisheries Cooperation (viewed at: 
http://law.coa.gov.tw/GLRSnewsout /EngLawContent.aspx?Type=E&id=249 ) and the Regulations on the 
Management of Fisheries Cooperation Regulations for External Fisheries Cooperation and the Regulations on 
the Management of Fisheries Cooperation (viewed at: 
http://law.coa.gov.tw/GLRSnewsout/EngLawContent.aspx?Type=E&id=252 ). 
45 The EU prohibits fisheries products from entering its market unless they are certified as legally fished. 
It has a yellow card warning sys tem which indicates that the recipient is at risk of being identified as 
uncooperative in the fight against illegal fishing. In the case of Chinese Taipei , concerns related to: "serious 
shortcomings in the fisheries legal framework, a system of sanctions t hat does not deter IUU fishing, and a lack 
of effective monitoring, control and surveillance of the long -distance fleet" as well as a concern that it "does 
not systematically comply with Regional Fisheries Management Organization (RFMO) obligations. Europe an 
Commission online information. Viewed at: http://europa.eu/rapid/press -release_IP -15-5736_en.htm .  
46 OECD online information. Viewed at: http://www.oecd -
ilibrary.org/docserver/download/5316011e.pdf?expires=1519138391&id=id&accname=ocid195767&checksum
=8EE71C15468AB2860C3F9BA4 A67D3C70 ; and  online information. Viewed at: 
https://www.fa.gov.tw/en/Announcement/content.aspx?id=50&chk=f006f8ba -a4ca-40f6-a3bc-
729e79b14d5c&param=pn%3d1 .  
47 Online information. Viewed at: 
https://www.fa.gov.tw/en/Announcement/content.aspx?id=50& chk=f006f8ba -a4ca-40f6-a3bc-
729e79b14d5c&param=pn%3d1 .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.54.   Other changes over the review period have been a further loosening of the regime for 
employing overseas fisheries workers to cope with a shortage of local fishermen; in July 2015, th e 
Ministry of Labour announced that Vietnamese fisheries workers may be employed in 
Chinese  Taipei and during the period November 2017 to February 2018, 1,897 persons from 
Vietnam had been employed. This announcement brings to five the number of Members fr om 
which fisheries workers may be hired (the others are: Indonesia;  the Philippines; Malaysia and 
Mongolia).48  
4.55.   The Fisheries Agency under the COA regulates the fishing sector. It is, inter alia , responsible 
for issuing the required fisheries licences; gran ting permission for the building, modification or 
chartering of vessels; and granting permission for the import and export of fishing vessels.  
4.1.3.3   Production and trade  
4.56.   According to the authorities, Chinese Taipei follows the catch quotas which are regulated b y 
regional fisheries management organizations.49 It manages quotas through deep sea fisheries 
management and e -logbook systems.50  
4.57.   Fisheries production fluctuated over the period 2012 -16; with a significant drop between 
2015 and 2016 due to the reduction of squid jigging fishery, typhoon damage and cold damage. 
The main components of fisheries production in value terms are deep -sea fisheries, which 
accounted for 44% of the value of production in 2016 and inland water aquaculture (33%) 
(Table  4.9). According t o official sources, Chinese Taipei is the world's top producer of Pacific 
saury, it is among the world's major suppliers of grouper and tilapia and it has a significant 
ornamental fish farming industry, with around 260 farms producing over 300 species.51  
Table 4.9 Fishery production 2013 -16  
(NT$ '000,000)  
 Deep -sea 
fisheries  Offshore 
fisheries  Coastal 
fisheries  Marine aqua -
culture  Inland water 
fisheries  Inland water 
aqua -culture  Total  
2013 43,829  12,531  4,046  6,998  2 34,245  101,650  
2014 43,644  14,276  4,077  6,169  1 36,794  104,962  
2015 39,172  10,606  3,605  6,255  7 33,156  92,256  
2016 37,715  10,641  4,115  5,601  6 28,441  86,519  
Source:  Online information. Viewed at: https://eng.coa.gov.tw/ws.php?id=2505271 ; and information 
provided by the authorities.  
4.58.   Fisheries accounted for 34% of agriculture, fishing and forestry exports combined in 2016. 
The main export categor ies are frozen fish, mainly: bigeye tuna; skipjack; yellowfin tuna; albacore 
and tilapia, as well as fresh/chilled bigeye and yellow fin tuna; live eels; cuttlefish and squid 
(frozen, dried, salted, in brine or smoked); prepared or preserved minced fish; a nd live fish 
(mainly grouper). Chinese Taipei has consistently maintained a trade surplus in fisheries 
(Table  4.10). The main import categories were frozen shrimp and prawns; flours/meals/pellets of 
aquatic invertebrates; fresh or chilled Atlantic and Danu be Salmon; cuttlefish and squid (frozen, 
dried, salted, in brine or smoked); and frozen halibut.  
                                                
48 Online information. Viewed at: https://eng.coa.gov.tw/ws.php?id=2505351 . Prior to recruiting 
non-local workers, vessel owners who have a fish ery licence must engage a local employment agency which 
has been certified by the Ministry of Labour (MOL) to issue an employment advertisement for local workers on 
a website for 21 days and in newspapers for 14 days. If there are no local applications, th en the Ministry of 
Labour will approve the issuance of an employment permit. Once this permit has been received, the vessel 
owner can entrust an MOL -certified overseas agency to recruit overseas crew.  
49 These organizations include: the International Commis sion for the Conservation of Atlantic Tunas 
(ICCAT); the Western and Central Pacific Fisheries Commission (WCPFC); the Indian Ocean Tuna Commission 
(IOTC); and the Commission for the Conservation of Southern Bluefin Tuna (CCSBT).  
50 As noted by the authorit ies, once Chinese Taipei receives its catch quotas from the respective 
organizations it distributes them to registered fishing vessels. Each day, vessels need to log into their 
e-logbook system and transmit their locations and quantity of fish caught to Ch inese Taipei's fish monitoring 
centre. If a vessel is close to filling its quota it receives an alert. The authorities indicated that inspections take 
place on -board and when vessels are being unloaded. Additionally, there is information exchange with over seas 
counterparts when Chinese Taipei vessels dock in overseas harbours.  
51 Online information. Viewed at: https://english.ey.gov.tw/cp.aspx?n=D558EBF449B7C570 .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Table 4.10 Fishery production, consumption and trade, 2012 -15  
(Tonnes)  
Classification  2012  2013  2014  2015  
Production  1,256,082  1,274,282  1,409,807  1,299,741  
Import  539,497  466,258  487,649  465,169  
Export  654,458  683,541  794,509  795,409  
Consumption  1,141,121  1,056,999  1,102,947  969,501  
Note:  Fisheries production includes marine and aquaculture fisheries.  
Source:  Information provided by the authorities.  
4.1.3.4   Trade measures  
4.59.   The tariff schedule contains 444 tariff lines for fish and fishery products (WTO definition), 
with a simple average tariff rate of 20.4%. 54 tariff lines are non -ad valorem  and the average of  
the AVEs was 25.9%. The highest MFN tariffs apply to: top shell, dried, salted or in brine (AVE of 
92.8%); other shrimps and prawns, dried, salted or in brine (AVE of 80.8%); top shell, frozen 
(AVE of 61.6%); mullet, frozen (AVE of 54.4%); squid, dried, s alted or in brine (AVE of 50%); 
jacks, crevalles and scads, frozen (50%); and, other carangidae fish, frozen (50%).  
4.60.   Imports of certain fish and fish products (whale shark, puffer fish and ball puffer fish) are 
prohibited for conservation purposes (Section 3.1.5). Exports restrictions apply to: eels, glass eel, 
eel fry, young eel, tuna, swordfish, salmon and trout.  
4.1.3.5   Export promotion, restrictions and prohibitions  
4.61.   The authorities confirmed that Chinese Taipei does not provide any export promotion 
support speci fic to the fisheries sector. The export of whale shark (live, chilled, frozen etc.) is 
prohibited (Section 3.2.3).  
4.1.3.6   Subsidies and other public sector support  
4.62.   Most of general support expenditures in the sector by Chinese Taipei are directed to 
fisheries man agement programmes (Table 4.11).  
Table 4.11 Subsidies to the fishing sector, 201 3-16  
(NT$ million)  
 2013  2014  2015  2016  
Fishing vessels buy -back programme  113.0  47.8 46.5 43.6 
Reward for closing fishery season  179.8  181.8  185.1  181.0  
Fishing vessels marine insurance reward  51.4 57.4 51.2 53.8 
Source:  WTO document G/SCM/N/315/TPKM, 25 July 2017; and information provided by the authorities.  
4.63.   To avoid overfishing, the FA continues to provide grants to fishermen to reduce their fishing 
capacities. Under the Fishing Vessel Buy -Back Program me, grants are paid for the purchase of 
fishing vessels with valid fishing licences ; the buy -back amount is calculated on the basis of the 
tonnage of the fishing vessel and the length, pipe diameter and engine power of the raft.52 Since 
this programme's inception in 2001, 944 vessels and 1988 rafts have been purchased under this 
scheme and dismantled.53 Under the Reward for Closing the Fishing Season program me, 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 year. The aim of the 
scheme is to encourage active fishing vessels not to fis h during the low season  (Table 4.11) . 
                                                
52 The buy -back amounts fo r vessels are on a sliding scale (NT$50,000/GT for 1st to 5th ton; 
NT$40,000/GT for 6th to 10th ton; NT$30,000/GT for 11th to 20th ton; NT$25,000/GT for 21st to 50th ton; 
NT$20,000/GT for 51st to 100th ton; NT$18,000/GT over 100 tons. The maximum amount fo r each eligible 
vessel is NT$7.9 million.  
53 Figures are up  to date as at mid -April 2018.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.64.   Under the Fishing vessels marine insurance scheme, the FA also pays between 40% and 
100%, depending on the size of the vessel, of the cost of insurance for vessels if damaged at sea 
(Table 4.11).54 
4.65.   Fishermen are also eligible for public sector support under the interest subsidies programme 
(Section 4.1.1.5.2.3) and the disaster relief programme (Section 4.1.1.5.2.5). Fishing vessels also 
benefit from discounted diesel and gasoline (Table 3.7 and Section 3.3.1.2.4).  
4.2  Mining and Energy  
4.2.1   Mining  
4.66.   In 2017, mining and quarrying accounted for 0.1% of GDP (Table 1.2). In 2016, there were 
nearly 2,700 persons engaged in the sector, of which around half were employed in the extraction 
of crude petroleum and natura l gas and the other half in quarrying of stone sand, clay and other 
mining activities.55 Mining activities are regulated by the Bureau of Mines under the MOEA. The 
main law governing the sector is the Mining Act of 1930, as amended.56 Over the review period,  
the Act was amended once, in 2016, to align it with changes to the Criminal Code.57  
4.67.   All minerals are publicly  owned. In order to undertake mining and related activities, a 
mineral right , either for exploring or mining, must be obtained. Exploration rights  are granted for 
four years, extendable once by two years. Mining rights are granted for 20 years, extendable once 
for a further 20 years. By end 2017, there were a total of 223 mines including offshore mines, of 
which 171 were active. In the same year , the area covered by active concessions was 
36,649  hectares. Mineral right fees and mineral royalties are collected; revenue accruing from 
these amounted to NT$225.2 million in 2017. There has been no inbound direct investment into 
the sector (Table 1.5) in s pite of there being no inward investment restrictions in force.  
4.68.   According to official sources , there are 15 kinds of minerals with economic value mined in 
Chinese Taipei. These include: certain energy minerals (petroleum, natural gas (see also 
Section  4.2.2)); metallic minerals (gold); and, non -metallic minerals (sulfur, marble, dolomite, 
limestone, feldspar, talc, serpentine, gem, kaolinite, and silica sand). In value terms, mining 
production is dominated by natural gas, followed by marble, serpentine and  petroleum 
(Table  4.12).  
Table 4.12 Volume and value of mining production, 2014 -2017  
Mineral  Volume  
Value  Unit 2014  2015  2016  2017  
Gold Volume  
Value  Hectogram  
US$ 49 
153,805  22 
59,495  .. 
.. 40 
124,198  
Petroleum  Volume  
value  Kilo litre  
US$ 9,320  
6,030,624  9,534  
3,166,029  8,446  
2,141,531  5,407  
1,805,381  
Natural gas  Volume  
Value  Kilo c.m.a 
US$ 386,548  
225,285,794  373,775  
134,837,043  321,891  
79,105,545  265,702  
79,708,203  
Marble  Volume  
Value  Metric ton  
US$ 20,591,169  
91,905,282  18,035,342  
62,276,402  15,918,147  
46,551,087  15,675,146  
63,994,806  
Limestone  Volume  
Value  Metric ton  
US$ 30,049  
330,347  1,094  
59,208  1,439  
77,045  2,993  
449,108  
Dolomite  Volume  
Value  Metric ton  
US$ 22,196  
899,190  22,350  
871,010  22,005  
885,146  13,357  
582,615  
Talc Volume  
Value  Metric ton  
US$ 133 
21,532  162 
10,139  250 
7,736  .. 
.. 
Mica Volume  
Value  Metric ton  
US$ 5,016  
1,256,973  8,287  
1,977,054  1,879  
442,453  750 
187,506  
Kaolinite  Volume  
Value  Metric ton  
US$ 1,808  
199,098  732 
2,978  4,035  
18,130  1,665  
10,635  
                                                
54 Small vessels (below 100 tonnes) are eligible for 100% of the insurance cost, while larger vessels are 
eligible for a proportional system.  
55 Online information. Vi ewed at: https://www.mine.gov.tw/Download/PInfo/P00001287A.pdf .  
56 Online information. Viewed at: https://l aw.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=J0020001 .  
57 Article 69 of the Mining Act was amended to delete section 2 which related to confiscation of unlawful 
gains.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Mineral  Volume  
Value  Unit 2014  2015  2016  2017  
Serpentine  Volume  
Value  Metric ton  
US$ 137,955  
4,333,488  133,964  
3,589,176  102,021  
2,813,733  72,072  
2,596,681  
Feldspar  Volume  
Value  Metric ton  
US$ 5 
112 1 
12 0 
2 0 
1 
Gem Volume  
Value  Kilogram  
US$ 694 
5,106  941 
3,969  794 
5,121  608 
81,149  
Rock crystal  Volume  
Value  Metric ton  
US$ 2,851  
46,943  3 
840 186 
15,745  122 
5,749  
Silica sand  Volume  
Value  Metric ton  
US$ 131,652  
827,556  132,469  
694,049  175,644  
939,995  139,274  
848,735  
Sulphur ore  Volume  
Value  Metric ton  
US$ 1 
1 0 
0 1 
2 1 
2 
.. Not available.  
a Cubic meter.  
Source:  Information provided by the authorities.  
4.69.   Tariff protection is low. According to the ISIC 2 classification of mining, the average applied 
MFN tariff on mining products was 0.6% in 2016. Over 80% of tariff lines are duty free and MFN 
applied tariffs range from zero to 7.5% (Table A3.1). An export p rohibition is in place for pebbles, 
gravels and stone commonly used for concrete aggregates, road metalling or railway/other ballast 
(Table A3.4), in order to meet local market demand and, in the long term, to protect inland 
resources.  
4.70.   In the context of t his Review, the authorities indicated that no incentives are provided to 
companies operating in this sector.  
4.2.2   Energy  
4.2.2.1   Overview  
4.71.   Chinese Taipei continues to depend heavily on energy imports. In 2017, 98.04% of the total 
energy supply was imported (Chart 4.1). Fuels accounted for 15.32% of the merchandise import 
bill in 2017. Total energy consumption in Chinese Taipei in 2017 was 117.28 million kilolitres of oil 
equivalent; the annual average consumption growth rate has been 2.55% over the past 20 years. 
The ene rgy and industrial sector is the main energy consumer, accounting for 44.56% of total 
consumption in 2017, followed by non -energy use (i.e. industrial inputs) (21.18%); the transport 
sector (11.88%); the services sector (10.79%); the residential sector (10 .72%); and the 
agriculture, forestry and fisheries sectors (0.87%).58 Electric power transmission and power 
distribution and piped fuel gas supply are listed as restricted industries under the negative list for 
inward investment. Chinese Taipei remains vuln erable to global commodity price movements, and 
until recently was operating with a low reserve margin (7.2% in 2017). However as a result of 
recent measures undertaken, it is expected that the reserve margin will reach 15% by 2019.  
4.72.   The MOEA remains respon sible for formulating energy policy and implementing 
energy -related legislation (see below). The Bureau of Energy, under the MOEA regulates the 
natural gas utilities, petroleum and LPG filling stations, and the import, export, production and sale 
of petrol eum products. In 2016, an Energy and Carbon Reduction Office was created to oversee 
implementation of greenhouse gas emission reduction targets (see below), increase renewable 
power (solar and wind) generation and facilitate research and development spendi ng on green 
energy.59 
4.73.   The main laws governing the energy sector remain the: Petroleum Administration Act (see 
below); the Natural Gas Enterprise Act (see below); the Electricity Act (see below); the Renewable 
Energy Development Act (see below); and the Ener gy Administration Act.  
                                                
58 MOEA , Energy Statistics Handbook 2016 . Viewed at: 
https://web3.moeaboe.gov.tw/ECW/english/content/SubMenu.aspx?menu_id=1537 .  
59 EIU online information. Viewed at: 
http://country.eiu.com/filehandler.ashx?issue_id=236106007&mode=pdf .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
- 114 - 
 
  Chart 4.1 Total energy supply, 2017  
 
Source:  Data provided by the authorities.  
4.74.   The Energy Administration Act (1980, as amended) was promulgated to upgrade the energy 
administration aimed at the rational and efficient u se of energy.  It provides for the establishment 
of an Energy Development Fund, sets out approval requirements for energy -related activities , and 
has provisions on energy use and audit as well as penalties.60 It was amend ed once over the 
review period, in 2016, in order to reflect revised rules on confiscation contained in the Criminal 
Law. 
4.75.   Energy policy is also influenced by the 2015 Greenhouse Gas Emission Reduction and 
Management Act. Under this Act , an emission reducti on target has been set at 50% of the 2005 
level by 2050. Entities are assigned carbon emissions allowances and if they exceed the initial 
allocated allowances, they can procure unused allowances through the Early Action Offset Project, 
carbon trading, or o ther approaches. Penalties for non -compliance include fines (maximum of 
NT$1,500 per metric ton), suspension and shutdown.61  
4.76.   Chinese Taipei continues to pursue many of the targets contained in its 2008 Sustainable 
Energy Development Policy, which has as the overall goal  of establish ing a high efficiency, high 
value -added, low emission and low dependence energy consumption and supply system, through 
cleaner energy supply and rationalized energy demand.62  
4.77.   A more recent 2017 Guideline on Energy Development set s out the main pillars of 
Chinese  Taipei's energy policies, namely: energy security; green economy; environmental 
sustainability; and social equity. Its objectives are to end nuclear energy by 2025 and take the 
necessary steps to ensure this, including thr ough energy transition, energy saving, exploration, 
storage and smart system integration. Trade aspects of the guideline include ensuring the stability 
of energy import channels and decentralizing the sources and approaches in energy procurement 
to reduce the risks of imported energy supply. Other notable aspects include: reducing 
dependency on fossil fuel energy, expanding the use of natural gas, and strengthening incentives 
for green energy development. Energy market reform is to be promoted on the premis e of 
"diversified supply", "equity in usage" and "freedom of choice", and energy prices are to be 
                                                
60 Energy Administration Act (1980, as amended). Viewed at: 
http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PC ode=J0130002 .  
61 Online information. Viewed at: https://www.epa.gov.tw/public/Data/511181640271.pdf .  
62 Sustainable Energy Development Policy. Viewed at: 
http://web3.moeaboe.gov.tw/ECW/english/content/Content.aspx?menu_id=1524 . Specific targets to be 
reached by 2025 include: improving energy efficiency by more than 2% per annum so as to decrease energy 
intensity by 50%; reducing CO2 emissions to the year 2000 level; increasing the share of low carbon energy in 
electricity generation systems to 55% (from the current 40%); increasing the share of renewable energy in the 
electricity system to 8%; increasing  the use of low carbon natural gas to account for 25% of power generated; 
and reducing  carbon intensity of manufacturing by 30%. Other objectives are to reconsider the nuclear power 
option; replace existing power generating units; introduce clean coal tech nology; rationalize energy prices; 
allocate emission quotas and reduction requirements for industry; and undertake various regulatory reforms. 
See also WTO documents WT/TPR/S/232/Rev.1, 28 July 2010, and WT/TPR/S/302/Rev.1, 18 December 2015.  
Chart 4.[] Total energy supply, 2017
Source:  Data provided by the authorities.Imported liquefied 
natural gas
14.99%
Imported coal
30.19%Domestic production
1.96%Imported 
nuclear energy
4.44%Imported crude oil & 
petroleum products
48.42%
Solar thermal
0.08%Solar PV, wind & biogas power
0.22%Conventional hydro power
0.35%Biomass & waste
1.09%Natural gas  0.16%
Refinery feedstocks  0.06%WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
- 115 - 
 
  rationalized.63 An Energy Transition White Paper will be elaborated to achieve the objectives set in 
the Guideline; the authorities indicated that this should be completed by June 2018. External 
concerns have been expressed that the ambitious target of ending nuclear power by 2025 may be 
an expensive and complicated option, particularly given limited operating energy reserves.64  
4.2.2.2   Electricity  
4.78.   "Taipower" (TPC), a p ublicly  owned enterprise, continues to play a dominant role in the 
electricity sector (Section 3.3. 5). It generates 70% of total electricity produced and until recently 
had a monopoly on the transmission, distribution and sale of electricity. However, sign ificant 
industry changes were set in train with the amendment of the Electricity Act in January  2017, 
which allows renewable energy generating corporations to sell their electricity directly to 
consumers rather than being obliged to sell it to TPC as befor e.65 Such sales may be effected 
either through wheeling or direct supply. It also allows for the establishment of renewable energy 
retailing enterprises and fully opens users' power purchasing choice for renewable energy. Legal 
amendments also provide for t he future creation of an electricity industry regulatory authority 
which, inter alia , will be responsible for supervising and managing electricity enterprises and the 
electric power market, and protecting users' rights and access to and use of electricity.  The 
schedule for establishing this authority is being reviewed together with the organizational 
restructuring  of the MOEA. Additionally , the law provides for the restructuring of the operations of 
TPC into two parts: one for generation and the other for t ransmission, distribution and sales; the 
time frame for completing this restructuring is within 6 -9 years of the passing of the amendments 
(i.e. during the period 2023 -2026).66 The TPC will remain the sole operator in the area of electrical 
energy transmiss ion and distribution. According to the authorities , there are no plans to privatize 
the TPC.  
4.79.   There are 19 independent power producers (IPPs) which together generate 17% of total 
electricity produced. Overseas investors are allowed to own 100% of an IPP.  
4.80.   In November 2016, a new electricity retail price formula was adopted; the average 
electricity price per kWh is based on the following calculation: power purchasing expenditure 
(including profits), plus transmission and distribution expenditure (including pr ofits) plus service 
charges for electricity sales, plus reasonable profits for the electricity retailing utility enterprise, 
divided by the total amounts of electricity sold. Electricity prices are reviewed and adjusted twice 
per year, in April and October , by the Electricity Tariff Examination Council which falls under the 
MOEA's responsibility. The growth rate of the increase/decrease in electricity prices should, in 
principle, not exceed 3% compared to the last adjustment. The Electricity Tariff Examinat ion 
Council approves the reasonable profits, according to the operating performance of the electricity 
enterprise; the rate of return on investment for reasonable profits is set between 3% and 5%. The 
upper bound rate of 5% is applied if Taipower experienc es losses. If the accumulated losses are 
covered, the rate of return on investment is reduced to 3%. In March 2018, the first tariff increase 
since October 2013 was announced (an average rise of 3%), and following a series of successive 
cuts. According to the authorities, the average electricity prices for the first half of 2018 were: 
NT$3.59/kWh for the small business sector; NT$2.49/kWh for the residential sector; NT$3.31/kWh 
for low voltage electricity; NT$2.70/kWh for high voltage electricity; and NT$2. 234/kWh for 
ultra-high voltage electricity.  
4.81.   In 2017, an electricity price stabilization fund was established in order to mitigate the 
impact of volatile electricity prices in the short  term; it is financed through tariffs. In 2017, the 
balance of the fund was NT$79 billion. Due to lower revenues and increased costs, Taipower 
posted a loss in 2017 and its accumulated losses rose to above NT$100 billion67; and it has 
recently received pay -outs from the fund.  
                                                
63 Guideline on  Energy Development. Viewed at: 
http://web3.moeaboe.gov.tw/ECW/english/content/SubMenu.asxp .  
64 Online information. Viewed at: http://www.world -nuclear.org/information -library/country -
profiles/others/nuclear -power -in-taiwan.aspx  and 
http://country.eiu.com/filehandler.ashx?issue_id=236106007&mode=pdf . 
65 EIU online inf ormation. Viewed at: http://www.eiu.com/industry/article/1604995544/liberalization -of-
the-energy -sector -proceeds -smoothly/2017 -01-13. 
66 Online information. Viewed at: 
http://law.moj.gov.tw/Eng/LawClass/LawAllPara.aspx?PCode=J0030011 . 
67 Online information. Viewed at: http://focustaiwan.tw/news/aeco/201707160010.aspx .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
- 116 - 
 
  4.82.   Chinese  Taipei's target is to increase the share of  locally  produced renewable energy in the 
total supply to 20% by 2025; it has been estimated that investments of around NT$1.8  trillion will 
be needed.68 In addition to renewable energy targets and  objectives set out in the 
2008 Sustainable Energy Developme nt Policy and the 2017 Guideline on Energy Development,  
"green energy" is also one of the five main innovative industries included in the 17th mid-term 
development plan (NDP  2017-2020), for which industrial innovation plans are being implemented 
(Section 2 ). Additionally, a green energy infrastructure component has been included in the 
2017-2021 Forward -looking Infrastructure Development Programme (Section 2); with a budgetary 
allocation of NT$20.8 billion to be used for shoring up the infrastructure and ce rtification 
capabilities needed for green energy development. The focus will be on conserving, storing and 
creating energy as well as integrating systems. Initiatives include : (a) installing low -voltage smart 
meters across Chinese  Taipei and implementing time -of-use electricity pricing plans which can be 
selected by end users; (b)  promoting research and development platforms to improve photovoltaic 
modules' reliability, efficiency,  cost and safety; (c) constructing underwater foundations and heavy 
cargo piers needed for wind power development; and (d) establishing the Shalun Green Energy 
Science City, a green -energy industry ecosystem which will include a certification site and an 
inspection and testing centre.69  
4.83.   As required by the Renewable Energy Development Act (promulgated in 2009), the TPC and 
IPPs must contribute to a renewable energy fund. The contribution is based on their units of power 
generated annually, excluding  the elec tricity generated by renewable energy. The fund is used to 
subsidize utilities when they produce or purchase electricity generated by renewable energy. Under 
the same Act, the importation of equipment for use in generating renewable energy is exempt 
from i mport tariffs, provided that  its intended use is verified and there is no domestic production of 
such equipment.70 
4.84.  New incentive program mes are in place in order to help achieve renewable targets 
(Table  4.13). The 2 -Year Solar PV Project and the Green Energ y Roofs Project are first steps 
towards meeting the goal of 3 GW of rooftop and 17GW of surface -based solar power installations 
by 2025. For each of these projects , the incentives take the form of "feed -in" tariffs. The 
authorities confirmed that there are  no local -content requirements.  
Table 4.13 Renewable energy incentives, 2018  
Governing regulations 
(date introduced)  Description  
2-Year Solar PV project  
(October 2017)  Two-year programme (running between June 2016 and June 2018) (a) to install 
solar power units on public  buildings, factories, agricultural facilities and other 
rooftops (goal of 910 MW of power) and (b) to install surface -based solar 
installations on land currently used by the salt industry, land subject to severe 
subsidence , aquatic areas, sealed landfills and polluted acreage (goal of 610 MW of 
power).  
Green Energy Roofs 
Project  
(October 2017)  Over the period January 2018 to December 2020, local adminis trations  are eligible 
for subsidies to install roof solar panels. Subsidies cover 40% of the construction 
costs (50% in remote locations) and 100% of the design costs. Subsidies are also 
available for building public solar power stations in remote areas an d aboriginal 
lands; 100% of the design costs are covered and an additional subsidy, not 
exceeding NT$600,000 would be provided for the building of power lines to these 
power stations. Local administrations  are responsible for selecting service providers 
to install the rooftop photovoltaic systems for building owners. Electricity generated 
by the solar panels is first consumed by the building occupants, and any surplus is 
sold wholesale by the service provid er to the TPC for suppling other homes and 
businesses. The photovoltaic service provider that installs the system can sell the 
generated electricity to the grid at a feed -in tariff  rate that is guaranteed for 
20 years. From this tariff, at least 10% will b e returned to the building owners, 
while another 3% will go to local administrations  to support green energy 
development funds and local infrastructure.  
                                                
68 Online information. Viewed at: 
https://www.moeaboe.gov.tw/ECW/english/news/News.aspx?kind=6&menu_id=958&news_id=14939 .  
69 Online information. Viewed at: 
https://english.ey.gov.tw/News_Content.aspx?n=4733E27E047FAFE8&sms=B82C8C4331A350DC&s=84BB5A0
05A572A13  and http://www.sgesc.nat.gov.tw/en/index.php .  
70 WTO documents WT/TPR/S/302/Rev.1, 18 December 2 015, and WT/TPR/S/232/Rev.1, 28 July 2010.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Governing regulations 
(date introduced)  Description  
4-year Wind Power 
Promotion Plan  
(2017 -2020)  Incentives take the form of a 20 -year guaranteed power pu rchase scheme provided 
under the framework of the Renewable Energy Development Act (2009). In 2018, 
two options are provided for offshore wind developers. One is a guaranteed feed -in 
tariff of NT$5.8498/kWh for 20 years, and the other is a guaranteed feed -in tariff of 
NT$7.1177/kWh for the first 10 years and NT$3.5685/kWh for the next 10 years. 
The target is to reach 520MW of offshore wind by 2020 and 5,500 MW of offshore 
wind by 2025.  
Source:  Online information. Viewed at:; http://focustaiwan.tw/news/aeco/201710250024.aspx ; 
https://www.moeaboe.gov.tw/ECW/english /news/News.aspx?kind=6&menu_id=958&news_id=1493
9; http://www.taipeitimes.com/News/front/archives/2017/10/26/2003681057 ; and information 
provided by the authorities.  
4.2.2.3   Hydroc arbons and natural gas  
4.85.   The oil industry continues to be regulated by the Petroleum Administration Act (2001, as 
amended). Over the review period, it was amended in 2014 in order to further specify the 
Petroleum Fund's scope, coverage and conditions.  
4.86.   Chine se Taipei imports almost all of its crude oil, which is yielded into petroleum products. 
Excess production of petroleum products is exported. Over the period 2014 -16, production and 
exports remained fairly stable (Table 4.14)  
Table 4.14 Production volume and exports of petroleum products, 2014 -16 
 Production volume of petroleum products 
('000 KLOE)  Exports of petroleum products 
('000  KLOE)  
2014 55,436.1  19,461.0  
2015 54,949.4  18,834.1  
2016 53,998.8  19,463.0  
Source:  Information provided by the authorities.  
4.87.   Tariffs on petroleum products (WTO category) are low, with an average MFN applied rate of 
2%. Nearly half of the 34 tariff lines are duty free and the highest tariff rate applied is 5% 
(Table  A3.1). In 20 16, the value of crude petroleum oil imports amounted to 5.6% of the 
merchandise import bill; imports mainly came from Saudi  Arabia (31.9%); Kuwait (20.1%); and 
Angola (10.1%).71 Import licensing is required for oil and petroleum products (Table 3.3). The 
importation of hydrocarbons requires prior -approval (an establishment permit and an operation 
licence) from the Bureau of Energy within the MOEA . There are two companies which import crude 
oil, the CPC and "Formosa Petrochemical Corporation ". 
4.88.   The publicly  owned petroleum company CPC operates two oil refineries which account for 
48% of the domestic refining capacity; the rest is undertaken by the private firm, "Formosa 
Petrochemical Corporation", which operates a single oil refinery.72 As at early 2018, 
237 companies had been granted gasoline and diesel wholesale licences. The authorities confirmed 
that there are currently no plans to privatize CPC.  
4.89.   There are no price controls on petroleum products. Various petroleum products are subject 
to the commodity tax (Table A3. 6). Petroleum is exported or re -exported primarily by both CPC 
and "Formosa Petrochemical Corporation " if there is a surplus after refining. Over the period 
2014-16, exports and re -exports of petroleum products accounted for between 3.5% and 6.4%  of 
total merchandise exports.73 A business is not allowed to start an oil export operation until its 
application has been approved, and a registration certificate issued, by the Bureau of Energy.  
                                                
71 Data from UN Comtrade Database, SITC Rev.3.  
72 EIU online information. Viewed at: 
http://country.eiu.com/filehandler.ashx?issue_ id=236106007&mode=pdf . At the time of Chinese Taipei's 
previous review, the CPC had a 57% share of refinery capacity. However, its market share has decreased due 
to the closure, in 2015, of one of its refineries.  
73 In 2014, the value of exports and re -exports of petroleum products, other than crude (SITC Rev. 3 
code 334) and residual petroleum products (SITC Rev. 3 code 335) amounted to US$19 ,905.5  million  (6.3% of WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.90.   Reduced -price diesel and gasoline are available for farmers and fishermen (Table 3.7). 
Subsidies continue to be granted to encourage petroleum facility operators to maintain product 
supplies in remote areas, reduce the pricing between cities and such areas, and to encourage the 
exploration and development of oil an d natural gas reserves (Table  A3.7).  
4.91.   The natural gas industry is regulated under the Natural Gas Enterprise Act (2011, as 
amended).74 Over the review period, it was amended in 2016 in order to clarify requirements that 
natural gas utility enterprises should  satisfy the demand of households, commercial businesses, 
and service sectors before supplying natural gas to other sectors . It gives the competent authority 
the right to review natural gas sales prices and basic fees on a periodic basis , and it also has 
revised provisions on business inspections and penalties.  
4.92.   Given limited local natural gas resources, demand is met almost  entirely  by imports of 
liquefied natural gas (LNG). The annual output of natural gas production in Chinese Taipei was 
0.26 million  tonnes in 2014, 0.25 million tonnes in 2015, 0.22 million tonnes in 2016 and 
0.18 million tonnes in  2017. The import tariff on natura l gas is zero. In 2017, Chinese Taipei's 
major suppliers were Qatar (30.8% of LNG imports), Malaysia (18.2%), Indonesia (13%) and 
Papua New Guinea (11.2%).  
4.93.   The CPC has a de facto monopoly on imports of natural gas. Twenty -five natural gas utility 
enterpris es provide natural gas to about 3.5 million users. The market coverage ratio is around 
46%. The CPC sets wholesale prices in accordance with a natural gas pricing formula which is 
based on the full -cost-recovery principle; this formula must be approved by the MOEA. Retail gas 
prices are regulated by the MOEA and are based on the principle of full -cost-recovery.  
4.3  Manufacturing  
4.3.1   Overview  
4.94.   Manufacturing continues to be a pillar of Chinese Taipei's economy. In 2017, it accounted 
for 30.8% of GDP, 26.8% of employm ent (Table 1.2) and 91.2% of merchandise exports. 
Responsibility for industrial policy formulation rests with the Industrial Development Bureau (IDB) 
within the MOEA.  
4.95.   Inward investment is prohibited under Chinese Taipei's negative list (Section  2.4.1 and 
Table A2.4) in the manufacture of certain chemical materials, certain chemical products, weapons, 
and cadmium smelting.75 Inward investment restrictions are in place for the manufacturing of 
nitroglycerin (not used in gun powder/explosives); military instru ments and equipment; and 
military aircraft. Flows of inward investment into the manufacturing sector have fluctuated 
dramatically on an annual basis since  2014, ranging from US$27.8 million to a peak of 
US$68.6  million; the subsector attracting the highest  levels of inward investment is electronic 
parts and components (Table 1.5).  
4.96.   Central to Chinese Taipei's strategy for developing its manufacturing sector has  been, for a 
very long time, support for the creation of industrial clusters in different geographi cal areas. This 
has taken the form of industrial policies encouraging investment in production in local counties and 
cities and laws and regulations inducing a good environment for the development of firms and 
related corporate entities. Policy measures ta ken to encourage cluster development have included 
industrial park development strategies, provision of low -cost industrial land with tax exemptions, 
investment incentives, and a variety of industrial cooperation mechanisms.76  
                                                                                                                                                  
total merchandise exports). In 2015 , the figures were respectively US$11,535.1  million  and 4 .1%. In 2016 , the 
figures were respectively US$9,793.6 million and 3.5%.  
74 Petroleum Administration Act. Viewed at: 
http://law.moj.gov.tw/Eng/LawClass/LawContent.aspx?PCODE=J 0020019 . Natural Gas Enterprise Act. Viewed 
at: http://law.moj.gov.tw/Eng/LawClass/LawContent.aspx?PCODE=J0020019 . 
75 With respect to chemical material, the prohibitions relat e to the manufacturing of nitroglycerin for 
military use; soda -chloride factories operating with mercuric electrolyzers; a category of chemical products in 
accordance with the UN prohibition of chemical weapons; and CFC, halon, methylchoroform, carbon 
tetrachloride. The manufacture of the following chemical products is prohibited: gun powder fuse, agents of fire 
and fulminating mercury.  
76 A map detailing the main cluster activities was viewed at: 
https://www.moeaidb.gov.tw/ctlr?lang=1&PRO=publication.rwdPublicationView&id=3322 .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.97.   Challenges faced by the manuf acturing sector include: obstacles to industrial transformation 
(an over -concentration o f electronics and original equipment manufacturer s (OEM)), and a lack of 
key materials, equipment and system integration solutions as well as the fact that final goods are 
not branded (although IC components are used in global value chains); difficulties in accessing 
international markets; low levels of investment; and labour shortages.77 At the time of 
Chinese  Taipei's previous Review, the manufacturing sector had been n egatively affected by the 
relocation of manufacturing activities to lower cost locations in the region78; however the 
authorities indicated that as production costs in China have risen, relocation of manufacturing to 
China is no longer on an increasing tren d. In response to these challenges, industrial upgrading is 
one of the objectives and strategies contained in the 17th mid-term development plan (NDP  
2017-2020) (Section  2.2). Additionally, a Five -Plus-Two Industries Innovation Plan emphasi zes 
accelerating  overall industrial upgrades through innovation (Section 2.2). Innovation in the chip 
design and semiconductor industries is also being encouraged; the aim is to shift the industrial 
base away from its traditional concentration on contract manufacturing an d gear it towards high -
value added, service -and solutions -orientated business models. The focus is primarily on emerging 
applications development, such as Internet of Things (IoT), artificial intelligence and automobile 
electronics . Supporting policies  are being put in place  such as to build  the appropriate ecosystem 
and encourag e investors to support  innovation in semiconductor technologies (such as new IC 
design algorithms, new processes under 3  nanometre and 3D integrated circuit packaging).79 The 
authori ties indicated that new legislation facilitating the recruitment of overseas  professionals 
should help to alleviate labour shortages (Section 2).  
4.3.2   Production and trade  
4.98.   In terms of production value, the main subsectors are: electronic parts and components; 
basic metal industries; chemical materials;  petroleum and coal products; fabricated metal 
products; and computers, electronic and optical products (Table 4.15).  
Table 4.15 Industrial production value, 2014 -17 
(NT$ million)  
 2014  2015  2016  2017  
Total manufacturing  14,425,538  12,861,116  12,313,235  13,033,676  
Food manufacturing  507,829  494,180  509,229  515,170  
Beverages and tobacco manufacturing  146,397  144,701  143,993  167,588  
Textiles mills  293,885  284,746  272,374  264,362  
Wearing apparel and clothing accessories  22,918  21,885  21,847  20,069  
Leather, fur and related products  26,316  20,201  16,378  16,038  
Wood and bamboo products  19,106  18,378  19,169  19,517  
Pulp, paper and paper products  161,666  158,138  155,847  165,065  
Printing and reproduction of recorded media  69,831  67,369  69,962  67,476  
Petroleum and coal products  1,258,477  835,042  705,754  778,992  
Chemical materials  2,076,752  1,658,719  1,568,491  1,756,264  
Chemical products  265,070  258,490  253,498  263,480  
Pharmaceuticals and medicinal products  76,256  73,735  78,779  79,010  
Rubber products  97,980  96,033  91,036  93,763  
Plastic products  269,035  260,393  254,200  254,339  
Non-metallic mineral products  228,509  217,653  191,742  184,165  
Basic metal industries  1,540,074  1,225,132  1,137,371  1,346,990  
Fabricated metal products  781,541  712,049  701,858  742,063  
Electronic parts and components manufacturing  3,749,487  3,615,521  3,547,434  3,673,051  
Computers, electronic and optical products  788,920  696,244  655,208  618,868  
Electrical equipment  387,628  366,315  355,382  381,317  
Machinery and equipment  664,702  649,088  601,938  652,540  
Motor vehicles and parts  421,844  407,037  387,042  383,223  
Other transport equipment  282,184  287,106  267,635  266,898  
Furniture  37,860  38,368  38,211  38,091  
Other manufacturing  186,069  182,177  183,659  189,210  
Repair and installation of industrial equipment and machinery  65,202  72,414  85,200  96,129  
Source:  Online statistical information. Viewed at: 
https://eng.dgbas.gov.tw/public/data/dgbas03/bs2/yearbook_eng/Yearbook2016.pdf ; and data 
provided by the authorities.  
                                                
77 Online information. Viewed at: 
https://www.moeaidb.gov.tw/ctlr?lang=1&PRO=publication.rwdPublicationView&id=3322 .  
78 WTO document WT/TPR/S/232/Rev.1, 28 July 2010.  
79 Online information. Viewed at: 
https://www.moeaidb.gov.tw/ctlr?lang=1&PRO=publication.rwdPublicationView&id=3322 .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.99.   Chinese Taipei's main exports of manufacture d goods are office machines and 
telecommunication equipment (predominantly electronic integrated circuits and micro assemblies), 
which represented nearly 41% of total merchandise exports in 2017 and various chemicals, 
representing 11% of total merchandise exports. Imports of manufactured goods (SITC Rev.3) 
accounted for 72.4% of all merchandise imports; the major import category (in 2016) was 
electronic integrated circuits and micro assemblies.  
4.3.3   Trade measures  
4.100.   Tariffs on manufactured goods (HS Sections 5 -21) in 2018 ranged from 0% to 30%. 
Highest tariffs fall under the transport equipment sub -category and are imposed on certain tank 
lorries, winch trucks and chassis for special purpose vehicles (3 tariff lines at 30% (HS  8-digit 
level) ). Various large passeng er vehicles; trucks for the transport of goods; and chassis, attract 
tariffs of 25% (29 tariff lines); and certain motorcycles attract tariffs of 20% (5 tariff lines).  
4.101.   Steel remains the predominant industry for which anti -dumping investigations are ongoin g 
and measures are in force (Section 3.1.6.1).  
4.102.   Manufacturing companies may benefit from Chinese Taipei's regime for duty refunds of raw 
materials used in exports (Section 3.2.4.1). They are also the most dominant industry group in 
EPZs (Section 3.2.4.2).  
4.3.4   Incentives  
4.103.   Multiple sector -specific and general tax incentive schemes are in place (Section  3.3.1.2. ).80 
Public sector support in terms of building infrastructure and providing subsidies is also taking place 
in the context of building a "greener" economy; wh ich may invigorate local manufacturing 
industries to grow in new "niche" areas. In the automotive sector, for example, Chinese Taipei has 
set a target of banning all petroleum -powered vehicles by 204081, and reportedly it is establishing 
a foothold in the m arket for electrical vehicles, particularly in terms of parts manufacturing and 
automotive electronics.82 Likewise, policy directions aimed at encouraging solar energy generation 
are also intended to assist local manufacturing businesses develop products in  this area 
(Section  4.2.2.2). Tax incentives are available for the purchase of electric -powered automobiles 
and motorcycles and hybrid electric vehicles  (Section 3.3.1.2.4) . 
4.4  Services  
4.4.1   Overview  
4.104.   In 2017, services accounted for 60% of GDP and 59.3% of employme nt. The biggest 
services subsectors in terms of contribution to GDP were: wholesale and retail trade (16.2%); real 
estate (8.1%); and finance and insurance (6.7%) (Table 1.2). During the review period, 
Chinese  Taipei was a net importer of services (Section  1.3).  
4.105.   An overview of Chinese Taipei's GATS commitments is contained in previous reviews.83 All 
of the RTAs to which Chinese Taipei is a signatory contain provisions on trade in services 
(Section  2.3.2); however only the RTAs with Singapore, New Zealand an d Guatemala contain 
schedules of specific commitments on services. As reported in detail in the respective factual 
presentation reports considered by the WTO Committee on Regional Trade Agreements (CRTA), 
                                                
80 In the context of this Review, the authorities noted that the Statute for Industrial Innovation was 
amended in 2017 to provide some tax incentives for angel investors  and limited partnership venture capitals 
forms, so as to encourage investment in start -ups. Additionally, the income tax deferral on employee stock 
awards and investors' stock pay -out has been extended to the year in which shares are actually transferred.   
81 Chinese Taipei's objec tives are to replace public bus es and official vehicles with electric vehicles 
by 2030, ban the selling of petroleum motorcycles by 2035 and petroleum automobiles by 2040. Online 
information. Viewed at: https://www.moeaidb.gov.tw/ctlr?lang=1&PRO=news.rwdNewsView&id=23660 .  
82 EIU online information. Viewed at: 
http://country.eiu.com/filehandler.ashx?issue_id=56094789&mode=pdf . As noted by the EIU, electronics 
account for 40% of vehicle production costs and this should rise to over 60% with the development of the 
autonomous car.  
83 WTO document WT/TPR/S/165/Rev.1,  10 October 2006 (section 5(i)); and WT/TPR/S/302/Rev.1, 
18 December 2015 (section 4.4.1).  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  the preferential commitments Chinese Taipei has und ertaken in these RTAs, in many instances, 
are improvements over those scheduled under its GATS schedule.84  
4.106.   Chinese Taipei's GATS commitments cover about 120 of the 160 -odd services subsectors. 
It lists MFN treatment exemptions for the acquisition of land a nd air transport services, which are 
to be regulated on the basis of reciprocal treatment and/or bilateral arrangements. Market access 
limitations concern, inter alia , financial services (including banking, insurance, and asset 
management), telecommunicati ons (including satellite communications, land -based mobile 
communications, radio, and TV), and some professional services (such as legal services, 
accounting, and taxation).85 
4.4.2   Financial services  
4.107.   In 2017 , financial services and insurance activities contribu ted 6.7% to GDP and accounted 
for 3.8% of employment (Table 1.2).86 The sector's total assets rose from NT$90,324.5  million in 
2014 to NT$102,696.6 million 2017. In 2017, banks accounted for 75.9% of the system's assets 
and insurance companies for 24.1%.  
4.108.   According to the authorities, Chinese Taipei's banking sector remains stable and resilient. 
As at the end of Q4 2017, the average common equity tier 1 ratio, tier 1 capital ratio and total 
capital adequacy of local banks had reached 11.20%, 11.81% and 14.17%  respectively, all higher 
than the minimum requirements set for 2019. In addition, the 2016 stress test results showed that 
average capital ratio and leverage ratio of local banks under stress scenarios were higher than the 
minimum requirements set for 201 6 and 2017. There have been no bankruptcies over the review 
period . Banks benefit from a high proportion of stable customer deposits and the system's low use 
of overseas funding makes it less vulnerable to contagion risks during turbulent periods in global  
capital markets.87 
4.109.   The Central Bank ( CBC), inter alia , ensures financial stability and conducts sound banking 
operations (for a fuller description of its responsibilities see Section 1.2.3.1).88  
4.110.   The Financial Supervisory Commission (FSC), established in 2004, remains the sole 
statutory financial supervisor and supervises all financial institutions including banks, securities 
and insurance companies. Its purpose is to build a sound, fair, effective and internationalized 
financial environment and market, an d maintain financial stability.  It is authorized to conduct 
targeted examinations on issues related to monetary, credit and forex policies and payment 
systems (on -site supervision) and implements off -site monitoring to identify the weakness es of 
individual  financial institutions and respond appropriately to banking system developments.89 The 
FSC owns the Central Deposit Insurance Corporation. As reported by the FSC, it has helped 
channel capital into the real economy; assisted enterprises raise funds in the capital market and 
enhanced protection of the rights and interests of investors an d financial consumers. Concrete 
recent ly adopted  measures include: (a) making  it easier to  obtain finance for entrepreneurship; 
(b) promoting innovative experimentation  in financial technology; (c) developing green finance; 
(d) encouraging the development of financial products for the elderly; ( e) supporting the 
New Southbound Policy (see Section 2); (f) encouraging financial institutions to take part in urban 
renewal; (g) increasing stock market liquidity; and (h) enhancing protection of the rights and 
interests of financial consumers, and promoting financial inclusion.  
                                                
84 For a comparison between Chinese Taipei's sector -specific commitments scheduled under its RTAs 
and the GATS, see WTO document WT/REG350/1, Table 4.4 for the RTA b etween Chinese Taipei and 
Singapore; WTO document WT/REG297/1/Rev.1, 17 July 2013, Table 4.2 for the RTA between Chinese Taipei 
and Guatemala; and WTO document WT/REG348/1, 16 July 2014, Table 4.3 for the RTA between 
Chinese  Taipei and New Zealand.  
85 WTO d ocument WT/TPR/S/302/Rev.1, 18 December 2015.  
86 As of end -2017, the sector employed 432,000 people. EIU (2018), Industry Report - Financial 
services, 1st Quarter 2018 . Viewed at: http://www.eiu.com/FileHandler.ashx?issue_id=1746444958&mode=pdf  
(p. 2).  
87 BTI (2016), Chinese Taipei Report . Bertelsmann Stiftung, 2016. Available at: https://www.bti -
project.org/fileadmin/files/BTI/Downloads/Reports/2016/pdf/BTI_2016_Taiwan.pdf . 
88 EIU (2018), Industry Report - Financial services, 1st Quarter 2018 . Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1746444958&mode=pdf . 
89 Online information. Viewed at  : https://www.cbc.gov.tw/ct.asp?xItem=882&CtNode=492&mp=2 311. WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.111.   As of July 2014, the business tax rate for enterprises engaged in banking and insurance 
business was increased from 2% to 5%; this increase forms part of a broader fiscal reform 
package. Sal es amounts from reinsurance premiums are taxed at 1%.90 The tax applies to 
insurers' gross receipts.91 
4.4.2.1   Banking and finance  
4.112.   Chinese Taipei's banking sector appears to remain saturated, with many banks and a 
limited number of clients. As a result, net interest  margins have fallen to one of the lowest levels 
in Asia.92 As of 2017, the banking system structure consisted of 38  locally  incorporated banks 
(down from 39 due to a merger approved in 2017)93; 29 local branches of non -local banks; 
23 credit cooperatives; 3 11 credit departments of farmers' and fishermen's associations; and eight 
bills finance companies94 (Table 4.16).95 The banking sector remains dominated by publically  
owned banks; three banks are fully publically  owned (the "Bank of Taiwan", the Land Bank an d the 
EXIM Bank) and a further six banks are partially publically  owned (the "Taiwan Cooperative Bank", 
the First Commercial Bank, the Hua Nan Commercial Bank, the Chang Hwa Commercial Bank, the 
Mega International Commercial Bank and the "Taiwan Business B ank"). At the end of 2016, these 
banks held 49.01% of total bank assets, down from 52% in 2010. There are 24 banks with local 
majority ownership which accounted for 42.5% of total assets. The five banks with non -local 
majority ownership accounted for 5.8% of total assets. At the end of 2016, locally  incorporated 
banks (excluding the postal savings bank) accounted for 77.2% (77.6% in  2014) of total deposits 
and 90.5% (91.1% in 2014) of total loans; while local branches of non -local banks accounted for 
2% (1. 1% in 2014) of total deposits and 3.7% (3.1 in 2014) of total loans, respectively 
(Table  4.16).  
Table 4.16 Banking indicators, 2014 -17 
Title 2014  2015  2016  2017  
Number of banks  406 409 410 410 
Locally  incorporated banks  39 39 39 38 
Local branches of non -local banks  30 30 29 29 
Credit cooperatives  23 23 23 23 
Credit departments of farmers' and fishermen's associations  306 309 311 311 
Bill finance companies  8 8 8 8 
Total deposit s (NT$ trillion)  36.5 38.7 40.1 41.5 
Locally  incorporated banks (%)  77.6 77.7 77.2 78.0 
Local branches of non -local banks (%)  1.1 1.4 2.0 1.6 
Postal savings (%)  15.0 14.8 14.8 14.4 
Total loans (NT$ trillion)  23.5 24.3 25.1 26.3 
Locally  incorporated banks (%)  91.1 90.8 90.5 89.9 
Local branches of non -local banks (%)  3.1 3.3 3.7 4.3 
Non-performing loan ratio (%)  0.24 0.22 0.26 0.26 
Locally  incorporated banks (%)  0.25 0.23 0.27 0.28 
Local branches of non -local banks (%)  0.03 0.00 0.08 0.01 
Profitability      
Return on assets (ROA) – locally  incorporated banks  0.79 0.75 0.68 0.67 
Return on equity (ROE) – locally  incorporated banks  11.65  10.58  9.24 8.97 
Source:  FSC statistics. Viewed at: http://www.banking.gov.tw/en/  [06/07/2017]; and information provided 
by the authorities.  
                                                
90 Article 1 1 of Value -added and Non -value -added Business Tax Act . 
91 The business tax rate shall be 2% for enterprises engaged in banking, insurance, investment trusts, 
securities, futures, commercial paper, and pawnshops for their core business separate from banking and 
insurance business, but 5% for all other operations which are non -core business. Article 11 VANVABT Act, 
http://www.mof.gov.tw/File/Attach/75532/File_10791.pdf  (p. 96);  and EIU (2018), Industry Report - Financial 
services, 1st Quarter 2 018. Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1746444958&mode=pdf . 
92 EIU (2018), Industry Report - Financial services, 1st Quarter 2018 . Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1746444958&mode=pdf . 
93 In 2017, the FSC approved the merger of Yuanta Commercial Bank and Ta Chong Bank, with Yuanta 
Commercial Bank being the  surviving entity after the merger.  
94 The business of a bills finance company includes certifying and underwriting short term bills and 
financial bonds; brokering and trading short term bills, financial bonds and government bonds; and 
guaranteeing and endo rsing short term bills.  
95 A complete list of financial institutions is available at: 
https://www.cbc.gov.tw/lp.asp?ctNode=495&CtUnit=210&BaseDSD=7&mp=2 . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.4.2.1.1   Institutional and legislative framework  
4.113.   The main laws governing the banking sector are: the Banking Act; the Deposit Insurance 
Act; the "Foreign Exchange Regulation Act"; and the Act Governing Ele ctronic Payment 
Institutions. In 2015, the Banking Act was amended to allow a bank to invest up to 40% of equity 
in financial institutions, rather than 40% of paid -in capital as previously. In 2018, the Banking Act 
and the Act Governing Electronic Payments  Institutions were amended to facilitate the 
development of general finance and financial technology, pursuant to the enactment in 2017 of the 
Financial Technology Development and Innovative Experimentation Act. In 2015, the Financial 
Institutions Merger L aw was amended to improve merger and acquisition procedures and provide 
an array of tax incentives.96  
4.114.   In December 2014, the FSC and the CBC jointly promulgated the "Standards Implementing 
the Liquidity Coverage Ratio of Banks" in order to move in line with  international norms and 
improve the short -term resilience of the liquidity risk profile of banks. The standards, which 
entered into force in 2015, require banks to maintain eligible, high -quality liquid assets to meet 
their liquidity needs for a 30 calend ar day liquidity stress scenario. As of January 2015, the 
liquidity coverage ratio of banks amounted to 60%, and is expected to reach 100% as of 
January  2019. In  2016, the FSC and the CBC additionally introduced "Standards Implementing the 
Net Stable Fundi ng Ratio of Banks" ensuring, according to the authorities, that banks have 
sufficient long -term stable funding sources to support business expansion, thus reducing future 
funding pressure.  
4.115.   In addition, to enhance the quality of credit rating services and s upport the sound 
development of credit rating agencies, in December 2015 the FSC amended the "Regulations 
Governing the Administration of Credit Rating Agencies with reference to international regulatory 
standards". The key amendments include: (i) enhancin g sound business operations of credit rating 
agencies and quality of credit ratings; (ii) strengthening the requirements regarding the scope and 
content of information disclosure by credit rating agencies; and (iii) adding provisions regarding 
prevention o f conﬂict of interests to strengthen independence of credit rating agencies.  
4.116.   In 2017, to further enhance the framework for anti -money laundering and countering 
terrorism financing, the FSC introduced amendments to "The Rules Governing Offshore Banking 
Branches". These amendments strengthen Offshore Banking Units' (OBUs) ability to undertake 
customer due diligence by using the assistance of third parties and prohibit OBUs from 
encouraging or assisting a resident customer to open an OBU account using the iden tity of a 
non-resident. In 2017, the FSC promulgated "Regulations Governing Anti -Money Laundering of 
Financial Institutions" and "Directions Governing Internal Control System of Anti -Money 
Laundering and Countering Terrorism Financing of Banking Sector and  Electronic Payment 
Institutions as well as Electronic Stored Value Card Issuers" to delineate custom er due diligence 
and thereby further strengthen the mechanisms to prevent money laundering and the financing of 
terrorism.  
4.4.2.1.2   Market access  
4.117.   During the review period, market access conditions remained unchanged. Overseas banks 
must establish commercial presence to provide services in Chinese Taipei, and obtain approval 
(business licen ce) from the FSC.97 They may set up subsidiaries, branches or representat ive offices 
subject to approval by the FSC. Representative offices of a non -local bank are limited to collecting 
commercial and market information and business liaison. A subsidiary of a non -local bank must 
comply with the same minimum capital adequacy rat ios and paid -in capital requirements as a 
locally  incorporated bank.98 Non-local financial institutions can invest in local financial companies 
with up to 100% ownership.99 Inward investment is prohibited in postal saving and remittance 
services as specified  in Chinese Taipei's negative list for investment (Section  2.4.1 and 
Table  A2.4). 
                                                
96 EIU (2018), Industry Report - Financial services, 1st Quarter 2018 . Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1746444958&mode=pdf . 
97 Article 117 of Banking Act. Viewed at: 
http://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?PCode=G0380001 .  
98 WTO documents WT/TPR/S/232, 31 May 2010; and WT/TPR/S/302/Rev.1, 18 December 2015.  
99 EIU (2018), Industry Report - Financial services, 1st Quarter 2018 . Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1746444958&mode=pdf . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.4.2.1.3   Prudential regulations and capital adequacy requirements  
4.118.   During the review period, Chinese Taipei continued to implement Basel III 
capital -adequacy standards, launched in 201 3, with the planned transition period until 2019. As of 
September 2017, locally  incorporated banks had a sound capital adequacy ratio of 13.4% (12.9% 
in 2015) mainly due to increases in cumulative earnings and common stock.100 In 2015, the FSC 
and CBC introd uced the liquidity coverage ratio of banks' high -quality liquid assets to their net 
outward cash flow within a 30 -day period as a new bank prudential measure. Locally  incorporated 
banks were initially required to meet a minimum liquidity coverage ratio of 60%. The required 
ratio was further raised to 70% in 2016, 80% in 2017 and 90% in 2018. A further scheduled 
increase is expected to bring it to 100% in 2019.101  
4.119.   During the review period, non -performing loans of monetary financial institutions as a 
whole inc reased by NT$11.5 billion to NT$81.9 billion in 2016 due to declining asset quality; and 
their average NPL ratio also increased to 0.28% at the end of 2016 from the previous year's 
0.25%.102 According to the FSC, the average NPL ratio stood at 0.28% at end -2017. Concerns 
have been expressed that real estate -related loans account for a higher level (40%) in the books 
of Chinese Taipei's locally  incorporated banks.103 
4.120.   Between January 2014 and end -October 2017, Chinese Taipei's bank interest rate spread 
(differenc e between the average borrowing and lending rates in nominal terms) marginally 
increased from 1.52% to 1.59% (Chart 4.2).  
Chart 4.2 Interest rate spread, January 2008 -October 2017  
 
Source:  CBC online information.  
4.4.2.2   Securities  
4.121.   During the review period, the percentage of non -local investors in total market 
capitalization increased from 36.4% in 2014 to 38.1% in 2016 (Table 4.17). As of 
31 December  2017, there were 111 securities firms, 39  securities invest ment-trust enterprises, 
84 securities investment consulting enterprises and 15 futures commission merchants.  
                                                
100 EIU (2018), Industry Report - Financial services, 1st Quarter 2018 . Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1746444958&mode=pdf ; and CBC (2017), Annual Report 
2016, April.  
101 EIU (2018), Industry Report - Financia l services, 1st Quarter 2018 . Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1746444958&mode=pdf . 
102 CBC (2017), Annual Report 2016 , April.  
103 BTI (2016), Chinese Taipe i Report . Bertelsmann Stiftung, 2016. Available at: https://www.bti -
project.org/fileadmin/files/BTI/Downloads/Reports/2016/pdf/BTI_2016_Taiwan.pd f. 
0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%5.0%
Jan-08
July-08
Jan-09
July-09
Jan-10
July-10
Jan-11
July-11
Jan-12
July-12
Jan-13
July-13
Jan-14
July-14
Jan-15
July-15
Jan-16
July-16
Jan-17
July-17Base lending rate
1-year deposit rate
Interest spread
Source:     Central Bank of the Republic of China (Taiwan) online information.Chart 4.1   Interest rate spread (%), January 2008 to October 2017WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  Table 4.17 Performance of the securities sector, 2014 -17 
 2014  2015  2016  2017  
TWSE listed companies: number  854 874 892 907 
Capital issued (NT$ trillion)  6.8 7.0 7.0 7.1 
Market capitalization (NT$ trillion)  26.9 24.5 27.2 31.8 
GTSM companies: number  685 712 732 744 
Capital issued (NT$ trillion)  0.7 0.7 0.7 0.7 
Market capitalization (NT$ trillion)  2.7  2.7 2.7 3.3 
Unlisted companies (number)  621 646 645 658 
Capital issued (NT$ trillion)  1.8 1.7 1.6 1.6 
Inbound investment in stock market      
Number of approved cases  1,372  1,300  1,304  1,147  
Accumulated net inward remittance (US$ billion)  1.9 1.9 2.0 208.1  
Percentage of market value held by overseas investors (%)  36.4 36.7 38.1 39.5 
Source:  FSC statistics. Viewed at: http://www.sfb.gov.tw/en/ ; and information provided by the authorities.  
4.122.   The Securities and Futures Bureau of the FSC remains responsible for planning and 
implementing the supervision and regulation of securities and futures markets as well as securities 
and futures enterprises.104 To boost the securities market , the FSC launche d the Securities Market 
Stimulation Program me in February 2015, consisting of eight strategies and 15 measures. The 
measures include, inter alia: (i) easing the price fluctuation limit to 10%; (ii) enhancing securities 
firms' settlement account functions; (iii) streamlining the procedures of account opening and 
trading for securities investors; (iv) enlarging the scope of targets for day  trading, and (v) lifting 
the limits on margin purchases and short sales. As at end -2016, the Programme had brought 
about a 10-15% rise in trading volume.105 In January 2016, in order to facilitate the use of 
investors' holdings for reinvestment, and to enable securities firms to use their funds more 
efficiently, the FSC issued an order allowing securities companies to conduct borrowing and 
lending of funds to customers for unrestricted purposes. The scope of collateral includes "Taiwan 
Stock Exchange" ( TWSE ) or TPEx listed securities, trust funds  raised and invested in 
Chinese  Taipei, government bonds and spot gold registered f or trading on the TPEx. Additionally, 
in order to increase stock market liquidity, the securities transaction tax on day trading was halved 
from 3% to 1.5% as from 28  April 2017. The authorities reported a significant increase both in the 
day trading turno ver and the average daily turnover as a result of this tax cut.  
4.123.   The Securities and Exchange Act continues to be the main law governing the sector; in 
2018 it was amended to promote inclusive financing and the development of Fintech. Amendments 
were also m ade to the Securities Trust and Consulting Act in 2018 in order to increase the 
competitiveness of the domestic asset management industry and promote the sound operation of 
securities investment trust and consulting enterprises.  
4.124.   During the review period, the FSC introduced several amendments to the regulatory 
framework to provide securities firms with more flexibility.  
4.125.   The "Regulations Governing Securities Firms" were amended twice over the review period, 
in 2015 and 2017. Key changes introduced in 2015 i ncluded, inter alia,  lowering operating bonds 
for individual branch units of a securities firm to NT$5  million; easing limits on the size of 
securities firms' holdings of securities issued by any single non -local company; and adding 
provisions under which customers' settlement funds may be temporarily deposited in the securities 
firm's settlement account. The ceiling on non -local currency deposits held by a securities firm not 
for business operation purposes was also raised to 30% of the firm's net worth. F urthermore, the 
FSC issued an order permitting invested non -local enterprises, in which the parent securities firm 
owns 50% or more of the shares, or over which the parent has de facto  control, to lend funds to, 
and provide guarantees to, one another. Chan ges introduced in 2017 included easing the 
aggregate liabilities of a securities firm (from 4 times to 6 times its capital net worth) so as to 
enhance the flexibility of securities firms' financial resource distribution and the efficiency of their 
capital utilization. When a securities firm engages in performing financial derivative trading 
contracts and related hedging activities, the amount of these transactions may be excluded from 
the calculation of its quota for holding equity securities issued by rela ted parties. There has been a 
relaxation of the restrictions on financial status for trading financial derivatives on the securities 
                                                
104 Article 4 of the Organic Act Governing the Establishment of the Financial Supervisory Commission.  
105 FSC (2016), 2015-2016 Annual Report , September.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  firm's business premises; and other changes were made in order to increase fund use flexibility for 
investors holding separ ate accounts set up by a securities firm for individual customers in its 
settlement accounts.  
4.126.   Amendments to "The Regulations governing Borrowing or Lending Money in Connection 
with Securities Business by Securities Firms" included enlarging the scope of fi nancing instruments 
and collaterals.106 In September 2015, the investment cap on securities trading by banks in the 
exchange market and over -the-counter -market was raised from 25% to 30%; a provision was also 
added allowing the limit to be adjusted by the co mpetent authority in line with the economic and 
financial situation.107 
4.127.   In 2017, the FSC published the amendments to "The Regulations Governing the 
Preparation of Financial Reports by Securities Issuers", effective as of January 2018, mainly 
adjusting relate d accounting items and attached forms, as well as specifying the disclosure 
requirements on financial instruments and contracts with customers.108  
4.128.   As in the previous Review, non -local securities firms may establish subsidiaries, branches, 
and representative  offices, with no ownership restrictions. The minimum paid -in capital 
requir ements are the same for locally incorporated and non -local securities firms.109 Offshore 
securities units and OBUs are allowed to operate in Chinese Taipei's "free economic pilot zon es" 
(FEPZs), providing a range of financial products and services to local and non -local professional 
investors. A llowing these operations in the FEPZs, which offer a range of tax concessions, helps to 
expand the scale of Chinese Taipei's financial market by attracting overseas investors.110  
4.4.2.3   Insurance  
4.129.   In 2017, Chinese Taipei's insurance industry consisted of 54 insurance companies and 
branches.  Insurance penetration increased to 20.5% and the total premium income of the 
insurance industry rose steadily (Tabl e 4.18). 
Table 4.18 Performance of the insurance sector, 2014 -17 
 2014  2015  2016  2017  
Percentage in the total assets of financial institutions (%)  29.6 29.5 31.8 33.6 
Non-life insurance  0.5 0.5. 0.5 0.5 
Life insurance  29.1 29.0 31.3 33.1 
Insurance penetration (%)  18.0 18.3 19.2 20.5 
Non-life insurance  0.8 0.8 0.9 0.9 
Life insurance  17.2 17.5 18.3 19.6 
Number of insurance companies and branches – total 54 54 54 54 
Reinsurance  3 3 3 3 
Non-life insurance – local 17 17 17 17 
Non-life insurance – branches of non -local companies  5 5 6 6 
Life insurance – local 24 24 23 23 
Life insurance – branches of non -local companies  5 5 5 5 
Total premium income of insurance industry (NT$ trillion)  2.9 3.1 3.3 3.6 
Non-life 0.1 0.1 0.1 0.2 
Life 2.8 3 3.2 3.4 
Source:  FSC statistics. Viewed at: http://www.ib.gov.tw/en/  [20/07/2017]; and information provided by the 
FSC.  
4.130.   Two insurance companies are fully publically  owned, the "Bank Taiwan Life Insurance Co., 
Ltd", which had a 1.24% market share in 2015111, and the "Central Reinsurance Corporation" 
                                                
106 FSC (2016), 2015-2016 Annual Report , September.  
107 FSC (2016), 2015-2016 Annual Report , September.  
108 Information provided by the authorities ( legislation, regulations, etc.).  
109 NT$400 million for underwriting, NT$400 million for trading, NT$200 million for brokerage, and an 
additional NT$30 million for establishing a branch office. WTO documents WT/TPR/S/2 32, 31 May 2010; and 
WT/TPR/S/302/Rev.1, 18 December 2015.  
110 EIU (2018), Industry Report - Financial services, 1st Quarter 2018 . Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1746444958&mode=pdf . 
111 The market share is calculated by the ratio of the company's gross premium income to overall 
domestic premium income of the life insurance industry.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  which had a 18.83% market share of the non -life reinsurance market and 23.49% market share of 
the life reinsurance market i n 2015.112 A further four are indirectly partially -owned.  
4.131.   Owners of automobiles in Chinese Taipei are required to have a contract of Compulsory 
Automobile Liability Insurance (CALI) which is available from private insurance companies. This 
ensures that injur ed parties receive basic coverage for injuries caused by automobile traffic 
accidents. The MOTC works in conjunction with the FSC to supervise the implementation of the 
CALI; premiums are regulated and reviewed every year.  
4.132.   The market remains fairly concent rated, with the top providers, including Cathay Life 
Insurance, Nan Shan Life and Fubon Life Insurance, accountin g for 53% of total premiums 
(NT$1,669 billion) in 2016. Sales in bank branches (bancassurance) are the dominant sales 
channel for the sector.  In 2016,  total premiums for all types of insurance reached US$102 billion, 
making Chinese Taipei the fourth -largest insurance market in Asia after Japan, China and the 
Republic of Korea.113 
4.133.   Chinese Taipei continues to promote micro -insurance businesses – as of 2017, there were 
27 insurance companies engaging in micro -insurance (15 life insurers and 12 non -life insurers). As 
of 2017, the accumulated number of individuals covered by micro -insurance reached 502,000 with 
a total insured amount  of more than NT$165 billion (around US$5.5 billion).  It is expected that 
more economically disadvantaged and specific groups of people can be taken care of, thus 
strengthening the social safety net.114 
4.4.2.3.1   Institu tional and legislative framework  
4.134.   The FSC Insurance Bureau remains responsible for planning and implementing the 
supervision and regulation of the insurance market and insurance enterprises.115  
4.135.   The governing legislation for the sector is the Insurance Act. The 2014 amendments to this 
Act aimed to, inter alia : (i) enhance the independence of directors and thus facilitate 
implementation of corporate governance; and (ii) prompt insurers to more appropriately exercise 
their shareholder rights with respect to inv estee companies, and their rights as owners of 
securitization products. Further amendments in 2015 included: (i) introduction of 4 -tier regulatory 
requirements for RBC ratio of the insurance company; (ii) strengthening of internal audit control; 
(iii) a truthful representation obligation of the policy holder regarding subject insured and 
important matters relating to risk, and (iv) an insurance brokers' obligation of due diligence and a 
duty of loyalty.  
4.136.    As specified in the Insurance Act, life insurance co mpanies may not offer non -life 
insurance services and vice versa, except where a non -life insurance enterprise is authorized by 
the competent authority to engage in personal injury or health insurance.116  
4.137.   In a move to allow insurers to develop a significant  presence in overseas property 
markets, the FSC continues to relax restrictions on overseas investments in real estate by local 
insurance firms. In 2017, the FSC relaxed overseas investment rules by allowing insurers to invest 
in private debt funds and pri vate real -estate funds. In January 2018, insurers were also allowed to 
invest as much as 10% of their assets under management in equity futures funds and futures 
exchange -traded -funds.117 
4.138.   In 2017, to enhance the framework for anti -money laundering and counte r terrorism 
financing for multinational insurance companies, Chinese Taipei amended the pertinent regulations 
so that a non -local insurance enterprise, which applies to establish a branch in Chinese Taipei, 
                                                
112 The market s hare is calculated by the  ratio of the company's domestic ceded -in premium to the 
domestic ceded -out reinsurance premium.  
113 EIU (2018), Industry Report - Financial services, 1st Quarter 2018 . Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=1746444958&mode=pdf . 
114 Information provided by the authorities.  
115 Article 4 of the Organic Act Governing the Establishment of the Financial Supervisory Commission.  
116 WTO documents WT/TPR/S/232, 31 May 2010; a nd WT/TPR/S/302/Rev.1, 18 December 2015.  
117 EIU (2018), Industry Report - Financial services, 1st Quarter 2018 . Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=17464449 58&mode=pdf  . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  must now prepare a document issued by the compete nt local authority certifying that no serious 
deficiency in anti -money laundering and countering terrorism financing has taken place in the last 
five years.118 
4.4.2.3.2   Market access  
4.139.   An insurance company's paid-in capital  must amount  to a minimum of  NT$2 billion. 
Non-local insurance enterprises, must obtain approval from th e FSC to set up a branch office  which 
is allowed to engage in insurance business; the branch's paid-in capital must be at least 
NT$5 0 million. Representative offices are prohibited from solicitation  activities.119 Reinsurance and 
retrocession and maritime shipping insurance may be obtained from companies located overseas. 
However for all other forms of insurance a commercial presence is required.  
4.4.3   Telecommunications services  
4.140.   Reportedly, Chinese Taipei  has one of the most competitive telecommunications markets in 
the world.120 Chinese Taipei's mobile phone penetration rate remains high at 122.4%, although 
subscriptions have slightly dropped off in recent years as the market has become saturated. Mobile 
broadband subscriptions have continued to increase, such that by May 2017, the mobile 
broadband penetration rate was 96.6% (with 87.6% of these subscribers paying for 4G services). 
Fixed telephone subscriptions have continued to decrease due to the take -up of mobile services, 
while fixed broadband subscriptions have remained stable (Table 4.19). The total revenue of 
telecom services was NT$360 billion in 2016; the main revenue earner was the mobile phone 
segment (nearly 59%), followed by fixed Internet and va lue-added services (just over 15%). 
Revenue from data communications has continued to increase as a proportion of total telecom 
revenue.121 
Table 4.19 Telecommunications market, 2013 -May 2017  
Market  2013 2014 2015 2016 2017 (May)  
Mobile phone  Penetration rate (%)  127.6  128.4  125.0  122.9  122.4  
Subscribers (million)  29.8 30.1 29.4 28.9 28.8 
Fixed telephone  Penetration rate (%)  52.3 51.4 50.6 49.7 49.3 
Subscribers (million)  12.2 12.1 11.9 11.7 11.6 
Interneta  Penetration rate (%)  76.3 78.0 78.0 79.7 92.8 (Aug.)  
Users (million)  15.9 16.3 16.4 16.8 18.7 (Aug.)  
Mobile broadbandb Penetration rate (%)  77.4 80.9 81.2 92.4 96.6 
Subscribers (million)  18.1 19.0 19.1 21.8 22.8 
Fixed broadbandc Penetration rate (%) 24.1 24.2 24.1 24.2 24.2 
Subscribers (million)  5.6 5.7 5.7 5.7 5.7 
a Internet users refer s to individuals who accessed the Internet during the year.  
b Mobile broadband subscribers are the 3G and 4G subscribers that can access the Internet.  
c Fixed broadband subscribers are subscribers of ADSL, FTTx, cable modem, and leased line that can 
access the Internet.  
Source:  Data provided by the authorities.  
4.141.   The Ministry of Transport ation and Communications (MOTC) is responsible for establishing 
overal l policies for the telecommunications sector. The fully independent communications 
commission (NCC) regulates the sector; its current objectives are to strengthen the 
communications infrastructure, encourage innovation, lead in digital applications and 
transformation through cross -sector governance and continue to apply the concept of digital 
equality and digital inclusion to protect the rights of the public.122 Priority actions being 
implemented by the NCC, inter alia,  include: development of 4G services (fi rst launched in 2014) 
                                                
118 Information provided by the authorities.  
119 Rogan, P. (2016), The Insurance and Reinsurance Law Review , 4th edition.  
120 Online information. Viewed at: 
http://country.eiu.com/articleindustry.aspx?articleid=246287408&Country=Taiwan&topic=Industry&subtopic=
Telecommunications .  
121 Online information. Viewed at: 
https://www.ncc.gov.tw/english/files/16060/384_1830_170428_1.pdf .  
122 Online information. Viewed at: 
https://www.ncc.gov.tw/english/files/18022/382 _2184_180227_1.pdf .  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  and planning for the future development of 5G services by 2020; improvement of connection 
quality; medium and long -term planning of spectrum arrangements to meet the needs of Internet 
broadband and "internet of things" (IoT) services;  and the release of IoT number restrictions. In 
June 2017, 2G services were terminated. Reportedly, Chinese Taipei is expanding its digital 
platforms and there is a greater focus on e -services and digital media which depend on mobile 
Internet and fixed bro adband.123 
4.142.   The main law governing the sector is the Telecommunications Act; there were no 
amendments to this Act over the review period.124 Recently, two new laws were drafted and are 
being reviewed by the legislative branch: the "Telecommunications Management  Act" and the 
"Digital Communications Act". The aim of these laws is to: provide an environment conducive to 
digital convergence, involving a shift towards  regulations being categorized by behaviour rather 
than business; introduce the concept of Internet g overnance into the digital economy; strengthen 
Internet security; and promote digital economy infrastructure.125  
4.143.   There are two types of telecom operators. Type 1 operators own and operate network 
facilities and are subject to price -cap regulations (see belo w); they include operators providing 
mobile, satellite and fixed -line services. Type 2 operators do not own and operate network facilities 
and may set their prices freely.126 Both must be licensed by the NCC. Inbound investment 
restrictions continue to be in  place for Type 1 operators (overseas investment is limited to a 
maximum of 49%). Additionally, the sum of direct and indirect shareholding may not exceed 60%. 
Minimum capital requirements also apply to Type 1 operators.127  
4.144.   As at March 2018, there were 5 pr oviders of mobile telecommunications services operating 
in Chinese Taipei ("Chunghwa Telecom"; "FarEasTone"; "Taiwan Mobile"; "Taiwan Star Telecom128" 
"Asia Pacific Telecom") and 5 fixed-line network providers ("Chunghwa Telecom"; "Taiwan Fixed 
Network"; "As ia Pacific Telecom"; "New Century"; "InfoComm Tech"). "Chunghwa Telecom" is 
partially publicly owned (35.29% of shares are held by the MOTC)  (Section 3.3. 5), while the other 
providers are fully privately  owned. "Chunghwa Telecom" is the dominant provider i n the fixed 
telecom market. It is also the biggest mobile provider, albeit in a more competitive environment 
(Chart 4.3).  
4.145.   To ensure a competitive environment, the NCC applies price controls on dominant type 1 
telecommunications enterprises; these include a price control on mobile and fixed termination 
rates, a price cap on wholesale leased lines and tariff approvals. It also requires them to submit 
detailed information when fixing or adjusting tariffs. The NCC declares as Dominant Type 1 
telecommunications enterprises those operators that meet any of the following criteria: (a)  control 
of critical and key telecommunications in frastructure; (b) dominance over market prices; (c) a 
market share of subscribers or business volume.129 Non-dominant Type 1 operators and Type 2 
operators only need to notify the NCC whenever their tariffs are fixed or adjusted. As at April 
2018, "Chunghwa Telecom", "Taiwan Mobile" and "FarEasTone" had been designated as dominant 
3G operators and "Chunghwa Telecom" had been designated as a dominant fixed -line operator.  
4.146.   According to the ITU's Measuring the Information Society Report, tariffs have been 
declini ng in the mobile -cellular and mobile broadband (prepaid handset -based) segments and have 
been stable in the fixed broadband and mobile broadband (post -paid computer -based) segments.  
                                                
123 Online information. Viewed at: 
http://country.eiu.com/filehandler.ashx?issue_id=236287407&mode=pdf .  
124 Online information. Viewed at: https://www.ncc.gov.tw/english/files/15092/17_1628_150923_1.doc .  
125 Online information. Viewed at: 
https://www.ncc.gov.tw/english/files/18022/382_2184_180227_1.pdf .  
126 A full list of the number of licenced Type 1 and Type 2 licensees and operators as at 2016 was 
viewed at: https://www.ncc.gov.tw/english/files/18022/382_2184_180227_1.pdf .  
127 These minimum capital requirements are as follows: (a) Under the Regulations for Administration of 
Mobile Broadband Businesses it is NT$6 billion for 4G mobile broadband businesses; (b)  under the Regulations 
for Administration on Satellite Communications Services, it is NT$100 million for fixed communications satellite 
services and NT$500 million for mobile communications satellite services; (c) under the Regulations for 
Administration o n Fixed Network Telecommunications Businesses it is: NT$6.4 billion for integrated network 
business, NT$800 million for long distance network business, NT$800 million for international network business 
and NT$300 million for international submarine cable l eased -circuit business.  
128 In 2014, "Taiwan Star Cellular" and "Vibo Telecom" merged to become "Taiwan Star Telecom". 
Online information. Viewed at: http://country.eiu.com/f ilehandler.ashx?issue_id=236287407&mode=pdf .  
129 Administrative Regulations Governing Tariffs of Type 1 Telecommunications Enterprises.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
- 130 - 
 
  Chart 4.3 Fixed and mobile operators, market share, December 2017  
 
Source:  Data provided by the authorities.  
4.147.   Regulations governing interconnection have not changed over the review period.130 
Dominant carriers are forbidden from rejecting interconnection requests and  regulations set out 
the guiding principles for bilateral negotiations between telecom companies to set interconnection 
rates and terms. Interconnection rates must be cost -orientated, fair, reasonable and 
non-discriminatory. If no agreement is reached betw een telecom enterprises within three months, 
either party may file a written application to the NCC for arbitration.131 No such applications have 
been made to the NCC since January 2014. Amendments to the regulations, in November 2017, 
are to include a claus e prescribing that the mobile communication network connection rates 
announced by the NCC will also apply to mobile broadband business operators.132  
4.148.   Other pro -competitive regulations in place require practices such as number portability, 
equal access, whole sale pricing and accounting separation. Cross -subsidization is not permitted.133  
4.149.   Spectrum licences are allocated through an auction process. A new procedure was adopted 
in 2017, involving a two -stage auction process. The first stage is multi -round auction w ith 
quantity -based bidding (i.e. bidding for the number of blocks). The second stage is for 
location -based bidding (i.e. bidding for specific assignments in accordance with blocks won).134 
4.150.   The NCC may designate Type 1 operators as responsible for providing u niversal 
telecommunications services (fixed -line local telephone services and broadband services) to 
specific areas.135 Losses arising from the provision of universal services are covered by the 
Telecommunications Universal Services Fund. The Fund is finance d through contributions from 
telecommunications operators which are set as a proportion of their revenue. There have been no 
changes to the universal service regulation since 2014. Public sector investment totalling 
US$1.5  billion is planned to be made ove r the period up to 2025 to improve Chinese Taipei's digital 
infrastructure and to narrow the differences between rural and urban areas.136  
                                                
130 Regulations Governing Network Interconnection among Telecommunication Enterprises.  
131 WTO document WT/TPR/S/232/Rev.1, 2 8 July 2010. Interconnection rules are set out in the 
Regulations Governing Network Interconnection among Telecommunication Enterprises.  
132 Online information. Viewed at: 
https://www.ncc.gov.tw/english/files/17041/360_2009_170419_1.pdf .  
133 WTO document WT/TPR/S/232/Rev.1, 28 July 2010.  
134 Online information. Viewed at: 
https://www.ncc.gov.tw/english/news_detail.aspx?site_content_sn=360&is_history=0&pages=0&sn_f=2126 .  
135 As noted in a previous Review (WTO document WT/TPR/S/232/Rev.1, 28 July 2010), under the 
Universal Telecommunication Services Regulations, the incumb ent operator must, and other Type 1 telecom 
operators may, apply to provide universal services by submitting an annual implementation plan; once a 
Committee has reviewed the applications, the NCC designates the universal service providers on the basis of 
the merits of their respective plans.  
136 Online information. Viewed at: 
http://country.eiu.com/filehandler.ashx?issue_id=236287407&mode=pdf .  
Chart 4.[telecom]    Telecommunication operators, as of December 2017
"Taiwan Star Telecom"
6.9%Fixed -line market Mobile telecom market
"FarEasTone"
25.0% "Asia Pacific Telecom"
6.4%"Taiwan Mobile"
25.2%
"Chunghwa Telecom"
36.5%
Source:  Data provided by the authorities."Chunghwa Telecom"
93.3%"Asia Pacific Telecom"
1.7%"Taiwan Fixed Telecom"
1.6%"New Century 
InfoComm Tech"  3.4%WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
- 131 - 
 
  4.4.4   Transport services  
4.151.   Chinese Taipei's main transport sector objectives are set out in the Forward Looking 
Infrastructure  Plan (Section 2), which prioriti zes developing the railway and local metropolitan 
transit systems. Specific goals are: linking the high speed and conventional rail systems into an 
integrated network ; upgrading and improving conventional rail services; mov ing rail tracks above 
or underground to speed up commuter services; promoting urban mass rapid transit and building 
tourism -orientated rail systems for central and southern areas.  
4.4.4.1   Maritime transport  
4.152.   Chinese Taipei continues to depend mainly on maritime tra nsport for its imports and 
exports of merchandise goods; around 99% of the volume and 53% of the value of 
Chinese  Taipei's external trade is carried by ship. In 2017, there were 1.3 million passengers 
travelling on inbound and outbound voyages on internati onal routes. The authorities indicated that 
the cabotage market is small and no official data on its exact size is collected.  
4.153.   The Ministry of Transportation and Communications (MOTC) remains responsible for 
regulating the maritime transport sector, includ ing ports. Within the MOTC, the Maritime and Port 
Bureau (MPB) is responsible for studying and drafting regulations, policies and development plans 
governing the shipping industry, vessels, maritime seafarers, maritime affairs and commercial 
ports, as well  as planning, implementation and supervision of other maritime and port -related 
affairs . The "Taiwan International Ports Corporation"  (TIPC) is in charge of all international 
commercial port operations. The MPB or appointed local authorities are in charge of all commercial 
port operations.  
4.154.   The main laws governing the sector are the Shipping Act, the Law of Ships, and the 
Commercial Port Law.137 Over the review period , the Shipping Act was amended once, in 2014, to 
reflect developments in Chinese Taipei's fre e trade and maritime cooperation agreements.138  
4.155.   There have been no changes to conditions and requirements for registering vessels or to 
Chinese Taipei's applied regime on overseas investment. MOTC approval must be obtained to 
engage in sea transportation as  a vessel carrier.139 To be registered locally, at least 50% of the 
carrier's capital must be from Chinese Taipei.140 Only vessels registered in Chinese  Taipei may 
undertake cabotage services, unless a franchise is granted.141 In 2017, the MOTC granted more 
than 200 voyages to overseas -registered vessels. Overseas vessel carriers must establish a local 
branch in Chinese Taipei or commiss ion a local shipping agency as their  agent before they can 
provide international transport services (passengers and cargo). They  must keep a minimum 
operating fund of NT$12 million.  
4.156.   Vessel carriers engaged in liner service must submit cargo and passenger tariffs to the 
MOTC for examination; if tariffs are found to be improper (i.e. much higher or lower than the usual 
market price),  the MOTC may order carriers to make revisions; no such case occurred over the 
review period. Agreements between overseas and local operators on freight rates and charges 
must be filed with the MOTC; if an agreement is considered to impede the "order of sh ipping or 
economic development", the MOTC may order a revision of the agreement within a specific period.  
4.157.   There are no requirements to transport certain goods on locally  registered vessels.  
4.158.   Chinese Taipei had the world's 12th largest maritime fleet in 2016, with 898 vessels of over 
1,000 gross tonnes. It has 165 shipping carriers including 3 major companies that provide 
container transport service and three that provide bulk transport services.142 The Yang Ming 
                                                
137 The Law of Ships (viewed at: http://db.lawbank.com.tw/Eng/FLAW/FLAWDAT0201.asp ) and the 
Commercial Port Law were not amended over the review period.  
138 Shipping Act. Viewed at: http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=K0070001 . 
139 Shipping Act, Article 7. As set out in Article 3 of the Act, a "vessel carrier" means the industry 
engaging in transportation of passengers and cargoes by p ower-driven vessels or non-power -driven vessels of  
a set gross tonnage, wherefrom it receives remuneration.  
140 Law on Ships, Article 5.  
141 Shipping Act, Article 4.  
142 Online information. Viewed at: 
http://www.motc.gov.tw/en/home.jsp?id=256&parentpath=0,150,250# . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
- 132 - 
 
  Transport Corpora tion is a partially publically  owned shipping company; it has a capacity of 
640,806 TEU and has a 2.9% market share.143  
4.159.   Chinese Taipei has seven international ports; in 2016 over 80% of the volume of imports 
and exports were handled by two ports: Kaohsiung Port (which handled nearly 50% of trade 
volume) and Taichung Port (32%).144 According to the authorities , Kaohsiung Port was ranked the 
world's 15th largest port in 2017 in terms of the amount of container cargo handled and it is an 
important transit point f or maritime transport between Asia, Europe and America. Ports are 
operated by the TIPC (Section 3.3. 5). Both local and non -local companies may participate in public 
tendering processes to operate port terminals; as at mid -April 2018 there were three non -local 
companies operating terminals at the Kaohsiung Port.145 An Intercontinental Container Centre 
Project has been implemented at the Port of Kaohsiung in response to the trend towards large 
container ships and to reinforce the status of Kaohsiung Port as a t ranshipment hub. The first 
phase included four container terminals which are now operational. The second phase comprises 
the construction of a petrochemical oil storage and transport centre; it should be completed 
in 2019.  
4.4.4.2   Air transport  
4.160.   The Civil Aeronaut ics Administration (CAA), under the MOTC, regulates the air transport 
sector. The g overning legislation is the Civil Aviation Act.146 Over the review period , it was 
amended in 2015 in order to follow international civil aviation regulations and practices.147 
4.161.   Chinese Taipei has two international airports (Taoyuan International Airport) and 
(Kaohsiung International Airport) and 15 domestic  airports. All airports are publicly owned and 
managed (Section 3.3. 5).148 The Taoyuan International Airport is operated by a fu lly publically  
owned corporation ("Taoyuan International Airport Corporation"). The other 16 airports are public 
agencies. No concessions have been granted to private -sector companies. Major infrastructural 
works in progress include the construction of a t hird terminal at Taoyuan International Airport 
which should increase airport capacity by 20 million passengers per year. No other major 
infrastructural works are being undertaken or planned.  
4.162.   International passenger transportation by air has continued to g row year -on-year. 
By 2017, there were 66 million passengers. Passenger numbers on internal flights have fluctuated. 
Cargo volumes both on internal and overseas flights have fluctuated since 2013 (Table 4.20).  
Table 4.20 Air transport of passengers and cargo, 2012 -17 
 2012  2013  2014  2015  2016  2017  
Passengers ('000)  46,860  50,336  55,357  58,156  63,253  65,978  
- International  35,899  39,385  44,391  47,983  51,979  54,475  
- Cabotage  10,680  10,547  10,563  9,798  10,843  11,097  
- Transit  282 403 402 374 431 406 
Cargo (MTs '000)  2,091  2,085  2,222  2,151  2,233  2,416  
- International  1,102  1,083  1,145  1,136  1,215  1,314  
- Cabotage  36 36 35 33 32 30 
Source:  Online statistical information. Viewed at: 
https://eng.dgbas.gov.tw/public/data/dgbas03/bs2/yearbook_eng/Yearbook2016.pdf .  
                                                
143 Data provided by the authorities based on Alphaliner TOP 100, 3 April 2018.  
144 Online statistical information. Vi ewed at: 
https://eng.dgbas.gov.tw/public/data/dgbas03/bs2/yearbook_eng/Yearbook2016.pdf .  
145 There are several local companies operating terminals or container fr eight stations in Chinese 
Taipei's various ports. The main ones are: China Container Terminal Corp.; United Logistics International Co.; 
Evergreen Marine Corp.; Wan Hai Lines; YangMing Marine Transport Corp.; Kao Ming Container Terminal; Lien 
Hai Terminal Corp. and Taipei Port Container Terminal Corp. The non -local companies are APL, Hyundai 
Merchant Marine and OOCL.  
146 Online information. Viewed at: 
http://law.moj.gov.tw/Eng/ LawClass/LawContent.aspx?pcode=K0090001 .  
147 As noted by the authorities, the amendment mainly includes initial airworthiness and continued 
airworthiness of flight operation standards, validation and certification of flight simulation training devices, and 
criteria for the design, manufacture and test flight activities of ultra -light vehicles.  
148 Taoyuan International Airport is manged by the publicly  owned Taoyuan International Airport 
Corporation Limited.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
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  4.163.   As at end -2017, 85 airlines provided flight services: 79 were non -local airlines a nd 6 were 
air carriers registered in Chinese Taipei. Scheduled international services provided by local and 
non-local carriers covered 296 routes connecting 141 cities worldwide.  Air carriers registered in 
Chinese Taipei accounted for 56% of total passenge r volume and 64% of cargo volume. The 
carriers with the biggest market share are "China Airlines" (with a 25% market share in passenger 
volume and a 38% share in cargo volume) and Eva Airways (22% market share in passenger 
volume and a 25% share in cargo v olume) (Section 3.3. 5). 
4.164.   The Civil Aviation Act (Article 81) prohibits overseas aircraft or overseas civil air transport 
enterprises from carrying passengers, cargo and mail between two points in Chinese Taipei. The 
Act also limits overseas investment in  domestic  airlines to 49% of total equity, and a cap on 
individual inbound investment is set at 24%.  
4.165.   As of June 2017, Chinese Taipei had signed 57 reciprocal bilateral air services agreements  
(ASAs); 12 of these were either signed or revised over the review period. All of the air services 
agreements most recently concluded by Chinese Taipei allow for multi -designation and cooperative 
arrangements, and many do not require that statistics be exchanged. The withholding clause 
within the ASAs has been consistentl y set at " substantial  ownership and effective control"  
(SOEC) .149 The most open agreements include 5th freedom traffic rights and liberal "free 
determination" capacity clauses.  
4.166.   As set out in the Civil Aviation Act and the Regulations Governing Airport Ground  Handling 
Services, overseas investment in airport ground handling services companies is limited to less than  
50% of shares and no single overseas person or company may hold more than 25% of total 
shares. There are no restrictions under the applicable regu lations on overseas investment with 
respect to aircraft maintenance and repair services; regulations applicable to this activity are set 
out in the Regulations of Repair Station Certification and Management for Aviation Products, 
Appliances and Parts.150 
4.4.4.3   Road transport  
4.167.   There are approximately 20,000 km of highway networks in Chinese Taipei; the main 
roads include three north –south freeways as well as five east –west expressways, together totalling 
1,050  km. An electronic toll system has been in effect on th e freeways since end -2013.  
4.168.   The MOTC's policy objectives for the sector are to: provide a comfortable and convenient 
transportation service; encourage the use of public transportation; work to smooth transfers 
between various transport modes; raise safety; and establish "smart" technologies and ticketing 
systems. Within the MOTC, the Directorate General of Highways remains responsible for highway 
automobile transport, tourist bus transport enterprises, and car and pick up rental businesses; 
automobile cargo transport and container truck transportation enterprises. A number of agencies 
are responsible for metropolitan automobile transport enterprises.151  
4.169.   The main law governing road transportation remains the Highway Act.152 Restrictions on 
inbound investment in commercial automobile business remain in place.153 
4.4.4.4   Rail transport  
4.170.   According to official sources, over 230 million passengers and 7.76 million metric tonnes of 
freight are carried by trains per year. There are 1.065  km o f railway in Chinese Taipei which 
include : general railways; a high -speed rail system (350  km of track) ; an urban mass rapid 
transport (MRT) system in Taipei (about 131  km of track); and a MRT system in Kaohsiung (about 
41 km of track).  
                                                
149 SOEC is the most restrictive type of withholding c lause. More liberal clause -types are: principal place 
of business and community of interest.  
150 Online information. Viewed at: https://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCo de=K0090028  
and https://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=K0090011 . 
151 WTO document WT/TPR/S/302/Rev.1, 18 December 2015.  
152 Online information. Viewed at: http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=K0040001 .  
153 Under Article 35 of the Law, non -Chinese Taipei persons or legal persons are prohibited from 
investing in commerci al automobile businesses within the boundaries of Chinese Taipei; however, those who 
are approved by the MOTC may apply to invest in: car and pickup truck rental, automobile cargo transport, and 
container truck transport.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
- 134 - 
 
  4.171.   The MOTC is the re gulator for rail transport. It administers publicly  owned railways and 
supervises local, private and special railways.154 The MOTC's objectives for the subsector are to 
create a more orderly and convenient railway transportation  system  for Chinese Taipei, ra ise the 
overall efficiency of rail service for Hualien and Taitung and build a robust urban -rural railway 
service. Future efforts are to be directed at achieving "greener" and more seamless transportation 
with industrial and sightseeing potential.  
4.172.   The mai n law governing the sector is the Railway Act of 1958 as amended. Over the review 
period , it was amended in 2014 and 2016, with changes being related to safety aspects. As set out 
in law, in principle , railways should be publicly  owned and managed and the construction, 
extension, transfer or management of local, private and special railways, must be ratified by the 
MOTC.155 Concessions have been granted to locally -owned private sector companies to operate 
Chinese  Taipei's high speed rail system and Kaohsiung' s MRT system. Overseas investment, in 
principle , is permitted, but has not happened in practice. The other railways are operated by 
public -sector entities.  
4.4.5   Tourism services  
4.173.   The tourism sector is continuing to develop rapidly. Visitor arrivals have increase d year on 
year, reaching 10.7 million in 2016, up from 7.3 million in 2012. Ninety per cent of visitor arrivals 
are from within Asia, largely China (47% of visitor arrivals in 2016), followed by Japan (18%) and 
the Republic of Korea (8%); these markets hav e been the most dynamic.156 Most visitor arrivals 
in 2016 were for leisure (70.7%), followed by business (6.9%), visiting relatives (4%), study 
(0.6%), conferences (0.6%); medical treatment (0.4%); exhibitions (0.1%); and other (16.7%). 
In 2016, the average stay was 6.5 nights, with an average spending rate of US$193 per day; both 
the length of stay and average spending rates have slightly declined in recent years.157 An airport 
service fee of NT$500 is levied per person exiting Chinese Taipei.  
4.174.   The Tourism Bure au of the MOTC continues to be responsible for policy formulation and 
implementation in the sector. The legal framework for the tourism sector is the Act for the 
Development of Tourism.158 This was amended three times over the review period, in 2015, 2016 
and 2017. Among the changes are: introducing  the possibility of levying a tourism conservation 
fee159; requir ing that competent authorities employ professional guides in ecological and cultural 
environment reserves in order to preserve, maintain and explain the resources unique to 
Chinese  Taipei and that priority be given to employing local indigenous peop le as professional 
guides; and introduc ing exemptions or reductions in the land value tax and housing tax (these are 
taxes levied at the local level) for appr oved tourist amusement, tourist hotel and hotel enterprises 
which support official policy for raising quality.160  
4.175.   Tourism is one of the areas in which Chinese Taipei is seeking to strengthen ties with other 
Asian economies through its New Southbound Policy (Section 2.2). Recent steps taken in this 
context have been to: offer visa -free entry for visitors from Brunei Darussalam, the Philippines and 
Thailand; encourage Chinese Taipei businesses operating in these Asian economies to organize 
inbound incentive to urs; stage tourism promotion events; and, create a friendlier environment for 
Muslim travellers, for example through the promotion of halal certification in hotels and 
restaurants.161  
                                                
154 Railway Act, Article 4. Viewed a t: 
http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=K0030001 .  
155 Railway Act, Article 3.  
156 In 2012, there were 3.6 million visitor arrivals from China and 5.1 million in 2016. For Japan, the 
figures are 1.4 million in 2012 and 1.9 million in 2016 (an increase of ove r 463,387). For the Republic 
of Korea, the figures are: 259,089 in 2012 and 884,397 in 2016 (an increase of 625,308).  
157 In 2012, the average length of stay w as 6.87 nights and the average spend per visitor was US$234. 
Online statistical information. Viewed at: 
https://eng.dgbas.gov.tw/public/data/dgbas03/bs2/yearbook _eng/Yearbook2016.pdf .  
158 Online information. Viewed at: http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=K0110001 . 
159 As noted by the authorities, this fee targets scenic spo ts or natural areas. The fee is not yet being 
levied (as at mid -April 2018) pending the approval of enforcement rules.  
160 Local authorities decide if structures meet the overall goal for local development and social purposes. 
They also decided on the extent  of the reduction or whether an exemption is offered.  
161 Online information. Viewed at: https://nspp.mofa.gov.tw/nsppe/news.php?post=130296&unit=376 . WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
- 135 - 
 
  4.176.   The Tourism Bureau is implementing the Tourism 2020: A Sustainable Touris m 
Development Plan approved in January 2018. It has 5 main action plans to fulfil the objective of 
Chinese Taipei being a "friendly, smart and experience -filled Asian travel destination ". The primary 
action plan is market diversification. The emphasis is o n Japan, the Republic of Korea and 
Southeast Asia. However, Chinese Taipei is also seeking to deepen the penetration of the European 
and American markets, maintain the Chinese market and further develop new market segments 
such as meetings, incentives, con ventions and exhibitions, cruise markets, Muslim tourism and 
charter -flight travellers. A second action plan is to promote local travel through the deployment of 
new travel card and tourism events programmes. The third action plan relates to guidance for 
industrial transformation, under which adjustments to the tourism structure will be made to 
improve service quality, develop e -commerce and maximise opportunities for businesses through 
brand exposure, quality -evaluation mechanisms, increased resources and support for travel 
agencies, and strengthened training for non -local tour guides. The fourth action plan is to promote 
"smart tourism" involving the integration and improvement of services for tourists, including 
information, ticketing systems and public t ransport services. The final action plan is to expand 
experimental tourism, by working with local administrations to create new tourist attractions and 
promote locali zed travel adventures, such as themed itineraries for scenic spots catering to 
overseas to urists.162  
4.177.   The sector is fully open to inbound investment. As set out in the Act for the Development 
of Tourism, overseas travel agencies wishing to establish subsidiaries in Chinese  Taipei must 
obtain approval from the Tourism Bureau, recognition and appro val in accordance with the 
Company Law, and a travel enterprise licence. Non -local travel enterprises intending to dispatch 
representatives must apply to the Tourism Bureau and notify the MOEA; such representatives may 
not engage in business outside Chines e Taipei.163 There has been overseas investment in hotels.  
4.178.   Since 1 March 2017, new incentives under the "Special Offers of International Cruise at 
TIPC Ports" have been provided by the TIPC to develop Chinese  Taipei's cruise travel industry; 
these involve di scounts on dockage and passenger service fees for certain categories of 
passenger -vessel calls.164 This incentive scheme is due to expire at end -December 2018. It is 
estimated that revenue foregone will amount to 0.03% of the TIPC's revenue. It seems that 
positive results have been achieved, with a 30% increase in passenger numbers.  
4.179.   Under the Tourism Bureau's "Directions for Preferential Loans for Upgrading the Tourism 
Industry", hotel operators who take out a loan and make interest payments can apply for sub sidies 
from the Bureau to help pay part of their interest. Subsidized interest loan funds must be used for 
investments in upgrading equipment, renovations, expansion, reconstruction of business premises, 
as well as capital repairs and upgrade that raise th e quality of travel and accommodation. Over the 
period 2014 -17, the scheme assisted 15 tourist hotels, with the total interest subsidies reaching 
NT$88.4 million.  
4.180.   A new subsidy scheme has been introduced to encourage overseas incentive tour groups to 
visit Chinese Taipei; the level of subsidies granted depends on the length of stay, size of group, 
origin of visitors and whether there are multiple visits.165 Another scheme is designed to promote 
the fly -cruise segment. Subsidies are available to cruise lines with a fly -cruise schedule that 
includes accumulated layovers in Chinese Taipei for 48 hours or more; the subsidy per passenger 
is US$30 per passenger for groups of over 300 fly -cruise passengers and US$50 per passenger for 
groups of over 600.166 Funding for  both schemes is provided by the Tourism Bureau.  
                                                
162 Online information. Viewed a t: https://amcham.com.tw/2017/09/tourism -2020-sustainable -tourism -
development -strategy/ . 
163 Tourism Development Act, Article 28. Viewed at: 
http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=K0110001 . 
164 These are: (a) full dockage exemption for maiden visits by cruise ships; (b) extra incentive discounts 
on passenger -service fees for single -route, multiple port call itineraries in Chinese Taipei (c) special berthing 
incentives for "fly -cruise" (Port of Keelung) and homeport (Port of Kaohsiung) calls. Online information. Viewed 
at: 
https://www.motc.gov.tw/en/home.jsp?id=158&parentpath=0,151&mcustomize=news_view.jsp&dataserno=2
01706160009&aplistdn=ou=data,ou=news,ou=english,ou=ap_root,o=motc,c=tw&toolsflag=Y&imgfolder=img . 
165 Online information. Viewed at: https://www.roc -
taiwan.org/uploads/sites/97/2017/04/Incentices_for_Promotion_of_Incentive_Torus_to_Taiwan.pdf .  
166 Online information. Viewed at: http://a dmin.taiwan.net.tw/upload/law/20180103/833f8b1e -ca46-
4020-b3e4-65d1ff88b239.pdf . WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports, by group of products, 2013 -17 
  2013  2014  2015  2016  2017  
Total exports (US$ billion)  305.4  313.7  280.4  280.3  317.2  
 (% of total)  
Total primary products  11.7  10.5  8.2  8.0  8.0  
 Agriculture  2.1  2.2  2.2  2.3  2.3  
 Food 1.1  1.2  1.4  1.4  1.4  
 Agricultural raw material  1.0  0.9  0.9  0.8  0.8  
 Mining  9.6  8.3  6.0  5.7  5.7  
 Ores and other minerals  0.2  0.2  0.2  0.5  0.4  
 Non-ferrous metals  1.8  1.7  1.6  1.7  1.9  
 6826 - Copper foil (whether or not printed or backed with 
paper, paperboard, plastics or similar backing materials), of a 
thickness (excluding any backing) not exceeding 0.15 mm; 
copper powders and flakes  0.5  0.5  0.5  0.6  0.7  
 Fuels 7.6  6.4  4.1  3.5  3.4  
 334 - Petroleum oils and oils obtained from bituminous 
minerals, other than crude  7.4  6.2  4.0  3.4  3.3  
Manufactures  86.9  88.7  90.7  91.2  91.3  
 Iron and steel  3.7  3.8  3.2  3.0  3.4  
 Chemicals  12.9  12.4  11.6  11.0  11.3  
 5743 - Polycarbonates, alkyd resins and other polyesters  1.0  0.9  0.9  0.8  0.9  
 5729 - Other styrene polymers  0.8  0.8  0.7  0.7  0.8  
 5112 - Cyclic hydrocarbons  1.2  1.0  0.7  0.6  0.6  
 Other semi -manufactures  5.9  6.0  6.3  5.9  5.6  
 6942 - Screws, bolts, nuts, coach screws, screw hooks, rivets, 
cotters, cotter pins, washers (including spring washers) and 
similar articles, of iron or steel  1.2  1.3  1.4  1.3  1.3  
 Machinery and transport equipment  48.6  51.0  54.7  57.0  57.8  
 Power generating machines  0.5  0.6  0.7  1.0  1.1  
 Other non -electrical machinery  6.3  6.4  6.7  6.6  7.0  
 7284 - Machinery and mechanical appliances specialized for 
particular industries, n.e.s.  0.9  0.9  0.9  1.0  1.3  
 Agricultural machinery and tractors  0.0  0.0  0.1  0.0  0.0  
 Office machines & telecommunication equipment  31.7  34.0  36.8  39.9  40.7  
 7764 - Electronic integrated circuits and microassemblies  20.6  23.0  24.8  27.9  29.1  
 7649 - Parts and accessories suitable for use solely or 
principally with the apparatus of division 76  1.4  1.5  2.6  2.8  3.0  
 7763 - Diodes, transistors and similar semiconductor devices; 
photosensitive semiconductor devices (including photovoltaic 
cells, whether or not assembled in modules or made up into 
panels); light -emitting diodes  2.6  2.8  2.8  2.5  2.0  
 7599 - Parts and accessories (other than covers, carrying cases 
and the like) suitable for use solely or principally with the 
machines of subgroups 751.1, 751.2, 751.9 and group 752  1.8  2.0  1.9  1.8  2.0  
 7643 - Transmission apparatus for radio -telephony, radio -
telegraphy, radio -broadcasting or television, whether or not 
incorporating reception apparatus or sound -recording or 
reproducing apparatus  1.9  1.2  1.0  0.9  0.7  
 Other electrical machines  6.1  5.7  5.8  5.0  4.9  
 7722 - Printed circuits  1.9  1.9  2.0  1.8  1.7  
 Automotive products  2.1  2.2  2.4  2.2  2.1  
 7843 - Other parts and accessories of the motor vehicles of 
groups 722, 781, 782 and 783  1.2  1.2  1.4  1.4  1.3  
 Other transport equipment  1.8  2.0  2.4  2.2  1.9  
 7853 - Invalid carriages, whether or not motorized or otherwise 
mechanically propelled; parts of the articles of group 785  0.6  0.8  0.9  0.9  0.9  
 Textiles  3.4  3.3  3.5  3.2  2.9  
 6552 - Other knitted or crocheted fabrics, not impregnated, 
coated, covered or laminated  0.8  0.8  0.9  0.8  0.7  
 6531 - Fabrics, woven, of synthetic filament yarn (including 
woven fabrics obtained from materials of heading 651.88), other 
than pile and chenille fabrics  0.6  0.6  0.6  0.6  0.5  
 Clothing  0.3  0.3  0.3  0.3  0.2  
 Other consumer goods  12.1  11.9  11.2  10.8  10.1  
 8719 - Liquid crystal devices, n.e.s.; lasers (other than laser 
diodes); other optical appliances and instruments, n.e.s.  5.2  4.3  3.1  2.7  2.6  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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    2013  2014  2015  2016  2017  
 8939 - Articles of plastics, n.e.s.  0.6  0.6  0.7  0.7  0.6  
 8843 - Lenses, prisms, mirrors and other optical elements, of 
any material, mounted, being parts of or fittings for instruments 
or apparatus, other than such elements of glass not optically 
worked  0.3  0.5  0.7  0.7  0.7  
Other  1.5  0.8  1.1  0.8  0.7  
Note:  SITC Rev.3 definition.  
Source:  Data provided by the authorities.  
  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table A1. 2 Merchandise imports, by group of products, 2013 -17 
  2013  2014  2015  2016  2017  
Total imports (US$ billion)  269.9  274.0  228.6  230.6  259.3  
 (% of total)  
Total primary products  36.3 35.6 28.2 25.4 27.4 
 Agriculture  4.6 5.6 6.3 6.2 6.0 
 Food 3.2 4.3 5.0 5.0 4.8 
 Agricultural raw material  1.4 1.3 1.3 1.2 1.2 
 Mining  31.7 29.9 22.0 19.3 21.5 
 Ores and other minerals  2.8 2.6 2.2 2.2 2.2 
 Non-ferrous metals  3.4 3.5 3.5 3.3 3.7 
 6821 - Copper, refined and unrefined; copper anodes for 
electrolytic refining; copper alloys, unwrought  1.2 1.2 1.2 1.2 1.4 
 Fuels 25.5 23.8 16.3 13.8 15.6 
 3330 - Petroleum oils and oils obtained from bituminous 
minerals, crude  12.4 11.7 7.0 5.6 6.5 
 334 - Petroleum oils and oils obtained from bituminous 
minerals, crude  6.1 5.3 3.9 3.5 3.5 
 3431 - Natural gas, liquefied  3.6 3.6 2.7 2.1 2.5 
 3212 - Other coal  2.5 2.2 2.1 1.9 2.6 
Manufactures  60.5 62.1 68.6 72.4 70.6 
 Iron and steel  3.2 3.3 2.9 2.6 2.9 
 Chemicals  13.2 12.9 13.2 12.7 12.5 
 5985 - Chemical elements doped for use in electronics, in the 
form of discs, wafers or similar forms; chemical compounds 
doped for use in electronics  1.0 1.2 1.3 1.2 1.1 
 5429 - Medicaments, n.e.s.  0.7 0.7 0.9 0.9 0.9 
 5112 - Cyclic hydrocarbons  1.6 1.3 0.9 0.9 1.0 
 5989 - Chemical products and preparations, n.e.s.  1.0 0.9 0.8 0.8 0.7 
 Other semi -manufactures  3.3 3.4 3.8 3.5 3.2 
 Machinery and transport equipment  33.1 34.2 39.5 44.4 43.4 
 Power generating machines  0.7 0.8 0.9 1.8 1.9 
 7144 - Reaction engines  0.0 0.0 0.0 0.8 0.8 
 Other non -electrical machinery  8.1 7.5 9.0 10.5 8.9 
 7284 - Machinery and mechanical appliances specialized for 
particular industries, n.e.s.  4.0 3.2 4.0 5.4 3.8 
 7285 - Parts, n.e.s., of the machines and mechanical appliances 
of headings 723.48, 727.21 and 728.41 through 728.49  1.0 1.1 1.3 1.4 1.6 
 Agricultural machinery and tractors  0.0 0.0 0.0 0.1 0.1 
 Office machines & telecommunication equipment  17.4 18.4 20.5 22.6 23.7 
 7764 - Electronic integrated circuits and microassemblies  11.6 12.4 13.8 15.6 16.7 
 7643 - Transmission apparatus for radio -telephony, radio -
telegraphy, radio -broadcasting or television, whether or not 
incorporating reception apparatus or sound -recording or 
reproducing apparatus  0.9 1.1 1.5 1.2 1.3 
 7763 - Diodes, transistors and similar semiconductor devices; 
photosensitive semiconductor devices (including photovoltaic 
cells, whether or not assembled in modules or made up into 
panels); light -emitting diodes  0.9 0.9 1.1 1.0 0.9 
 7599 - Parts and accessories (other than covers, carrying cases 
and the like) suitable for use solely or principally with the 
machines of subgroups 751.1, 751.2, 751.9 and group 752  0.5 0.6 0.7 0.8 1.1 
 Other electrical machines  3.7 3.6 4.1 4.2 4.1 
 Automotive products  2.1 2.4 2.9 2.9 2.8 
 7812 - Motor vehicles for the transport of persons, n.e.s.  1.2 1.4 1.8 1.9 1.9 
 Other transport equipment  1.2 1.5 2.0 2.4 2.1 
 7929 - Parts, n.e.s. (not including tyres, engines and electrical 
parts), of the goods of group 792  0.1 0.1 0.1 0.9 0.7 
 Textiles  0.5 0.5 0.6 0.5 0.5 
 Clothing  0.6 0.6 0.8 0.8 0.7 
 Other consumer goods  6.6 7.1 7.9 7.8 7.3 
 8747 - Oscilloscopes, spectrum analyzers and other instruments 
and apparatus for measuring or checking electrical quantities 
(other than meters of subgroup 873.1); instruments and 
apparatus for measuring or detecting alpha, beta, gamma, X -
ray, cosmic or o ther ionizing radiations . 0.9 1.3 1.2 1.3 1.1 WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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    2013  2014  2015  2016  2017  
 8742 - Drawing, marking -out or mathematical calculating 
instruments (e.g. drafting machines, pantographs, protractors, 
drawing sets, slide -rules, disc calculators); instruments for 
measuring length, for use in the hand (e.g. measuring rods and 
tapes, micr ometres)  0.6 0.5 0.7 0.8 0.8 
Other  3.2 2.4 3.1 2.1 2.0 
Note:  SITC Rev.3 definition.  
Source:  Data provided by the authorities.  
  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table A1. 3 Merchandise exports, by destination, 2013 -17 
  2013  2014  2015  2016  2017  
Total exports (US$ billion)  305.4  313.7  280.4  280.3  317.2  
 (% of total)  
Americas  13.6 13.9 15.1 14.5 14.1 
 United States  10.7 11.1 12.2 12.0 11.6 
 Other America  2.9 2.8 2.9 2.5 2.5 
 Canada  0.8 0.8 0.8 0.7 0.7 
 Mexico  0.6 0.6 0.8 0.7 0.7 
Europe  9.1 9.2 9.3 9.4 9.3 
 EU-28 8.3 8.4 8.5 8.8 8.6 
 Germany  1.8 2.0 2.1 2.1 2.0 
 Netherlands  1.5 1.6 1.5 1.6 1.6 
 United Kingdom  1.4 1.3 1.3 1.3 1.2 
 Italy 0.6 0.6 0.6 0.7 0.7 
 France  0.5 0.5 0.5 0.6 0.5 
 EFTA 0.2 0.2 0.2 0.2 0.2 
 Other Europe  0.5 0.6 0.6 0.4 0.5 
 Turkey  0.5 0.5 0.5 0.4 0.5 
Commonwealth of Independent States (CIS)  0.6 0.5 0.4 0.4 0.4 
Africa  1.1 0.9 0.8 0.7 0.6 
Middle East  1.9 2.0 1.9 1.7 1.5 
 United Arab Emirates  0.6 0.5 0.5 0.5 0.4 
 Saudi Arabia, Kingdom of  0.6 0.6 0.6 0.4 0.3 
Asia 72.5 72.3 71.6 72.9 73.6 
 China  26.8 26.2 25.4 26.4 28.0 
 Japan  6.3 6.3 6.9 7.0 6.6 
 Other Asia  39.5 39.7 39.3 39.6 39.0 
 Hong Kong, China  12.9 13.6 13.6 13.7 13.0 
 Singapore  6.4 6.5 6.2 5.8 5.6 
 Korea, Republic of  4.0 4.0 4.5 4.6 4.6 
 Malaysia  2.7 2.7 2.5 2.8 3.3 
 Viet Nam  2.9 3.2 3.4 3.4 3.3 
 Philippines  3.2 3.0 2.7 3.1 3.0 
 Thailand  2.1 1.9 2.0 2.0 2.0 
 Australia  1.2 1.1 1.1 1.1 1.0 
 India 1.1 1.1 1.0 1.0 1.0 
 Indonesia  1.7 1.2 1.1 1.0 1.0 
Other  1.2 1.1 0.8 0.4 0.5 
Source:  Data provided by the  authorities.  
  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table A1. 4 Merchandise imports, by origin, 2013 -17 
  2013  2014  2015  2016  2017  
Total imports (US$ billion)  269.9  274.0  228.6  230.6  259.3  
 (% of total)  
Americas  12.5 12.8 14.3 15.1 14.6 
 United States  9.3 10.0 11.6 12.4 11.7 
 Other America  3.1 2.8 2.7 2.7 2.9 
 Brazil  1.0 0.8 0.8 0.8 1.0 
Europe  9.9 9.8 11.0 11.5 10.9 
 EU-28 8.8 8.9 10.0 10.5 10.0 
 Germany  3.1 3.4 3.8 3.7 3.5 
 Netherlands  1.7 1.2 1.3 1.8 1.3 
 France  1.0 1.0 1.2 1.3 1.5 
 Italy 0.8 0.8 0.9 1.0 1.0 
 EFTA 1.0 0.9 0.9 0.8 0.7 
 Other Europe  0.1 0.1 0.1 0.1 0.1 
Commonwealth of Independent States (CIS)  1.5 1.7 1.3 1.7 1.7 
 Russian Federation  1.2 1.3 1.1 1.1 1.3 
Africa  3.0 2.7 1.4 1.3 1.4 
Middle East  16.1 14.6 10.3 7.6 8.5 
 Saudi Arabia, Kingdom of  5.8 5.0 3.2 2.5 2.6 
 Kuwait, the State of  3.1 2.4 1.7 1.3 1.4 
 United Arab Emirates  1.7 2.0 1.5 1.1 1.5 
 Qatar  2.3 1.9 1.7 1.0 1.0 
Asia 54.7 55.7 59.1 59.7 59.7 
 China  15.8 17.5 19.3 19.1 19.3 
 Japan  16.0 15.2 16.9 17.6 16.2 
 Other Asia  23.0 22.9 22.9 23.0 24.2 
 Korea, Republic of  5.8 5.4 5.7 6.4 6.5 
 Singapore  3.2 3.1 3.1 3.3 3.4 
 Australia  2.9 2.7 2.5 2.6 3.2 
 Malaysia  3.0 3.2 2.9 2.7 2.8 
 Indonesia  2.6 2.7 2.6 1.9 1.9 
 Thailand  1.4 1.6 1.7 1.7 1.7 
 Viet Nam  1.0 0.9 1.1 1.2 1.2 
 Philippines  0.8 0.8 0.8 1.0 0.9 
 India 1.0 0.9 0.8 0.9 1.2 
Other  2.3 2.7 2.7 3.2 3.3 
Source:  Data provided by the authorities.  
  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table A2. 1 Chinese Taipei's notifications to the WTO, January 2014 to January 2018  
Agreement  Requirement  Symbol and date of latest notification  
Agreement on Agriculture  
Articles 10 and 18.2  Export subsidy (ES:1)  G/AG/N/TPKM/115, 14/08/2014  
G/AG/N/TPKM/121, 10/02/2015  
G/AG/N/TPKM/132, 29/01/2016  
G/AG/N/TPKM/146, 23/01/2017  
Article 18.2  Domestic support: total aggregate 
measure of support (DS:1)  G/AG/N/TPKM/154, 26/09/2017  
Article 18.2  Market access: volume of imports 
under tariff and other quotas (MA:2)  G/AG/N/TPKM/112, 10/04/2014  
G/AG/N/TPKM/126, 24/11/2015  
G/AG/N/TPKM/135, 29/03/2016  
G/AG/N/TPKM/148, 06/03/2017  
Articles 5.7 and 18.2  Special safeguard provisions (MA:5)  G/AG/N/TPKM/111, 20/02/2014  
G/AG/N/TPKM/122, 11/03/2015  
G/AG/N/TPKM/134, 21/03/2016  
G/AG/N/TPKM/149, 06/03/2017  
Article 5.7  Volume -based special safeguard (MA:3) 
and price -based special safeguard 
(MA:4)  G/AG/N/TPKM/110, 31/01/2014  
G/AG/N/TPKM/113, 09/05/2014  
G/AG/N/TPKM/114, 20/05/2014  
G/AG/N/TPKM/116, 25/09/2014 to 
G/AG/N/TPKM/120, 07/01/2015  
G/AG/N/TPKM/123, 14/08/2015 to 
G/AG/N/TPKM/125, 19/10/2015  
G/AG/N/TPKM/127, 03/12/2015 to 
G/AG/N/TPKM/131, 27/01/2016  
G/AG/N/TPKM/133, 16/03/2016  
G/AG/N/TPKM/136, 13/06/2016 to 
G/AG/N/TPKM/145, 16/01/2017  
G/AG/N/TPKM/147, 15/02/2017  
G/AG/N/TPKM/ 150, 30/03/2017 to 
G/AG/N/TPKM/153, 21/09/2017  
G/AG/N/TPKM/155, 15/11/2017 to 
G/AG/N/TPKM/158, 15/01/2018  
General Agreement on Trade in Services  
Article V:7(a)  Notification of Regional Trade 
Agreement: Singapore and 
Chinese  Taipei  S/C/N/739, WT/REG350/N/1, 23/04/2014  
Notifications of preferential treatment 
to services and service suppliers of 
least developed countries  S/C/N/811, 27/07/2015  
Agreement on Implementation of Article VI of the GATT 1994 (anti -dumping)  
Article 16.4  Anti-dumping actions (ad hoc)  G/ADP/N/256, 11/04/2014  
G/ADP/N/274, 24/07/2015  
G/ADP/N/284, 19/04/2016  
G/ADP/N/290, 22/09/2016  
G/ADP/N/297, 23/03/2017  
Article 16.4  Anti-dumping actions (semi -annual)  G/ADP/N/252/TPKM, 27/01/2014  
G/ADP/N/259/TPKM, 30/07/2014  
G/ADP/N/265/ TPKM, 26/02/2015  
G/ADP/N/272/TPKM, 06/10/2015  
G/ADP/N/280/TPKM, 09/03/2016  
G/ADP/N/286/TPKM, 14/10/2016  
G/ADP/N/294/TPKM, 07/02/2017  
G/ADP/N/300/TPKM, 28/08/2017  
GATT 1994  
Article XVII:4(a)  State -trading activities  G/STR/N/15/TPKM, 09/09/2014  
G/STR/N/16/TPKM, 20/06/2016  
Article XXIV:7(a)  Notification of Regional Trade 
Agreement: Singapore and Chinese 
Taipei  S/C/N/739; WT/REG350/N/1, 23/04/2014  
Agreement on Government Procurement  
Article XIX:5  Modification of statistics on government 
procurement  GPA/123, 28/07/2014  
Article XVI:4 -5 Statistics  GPA/130, 10/06/2015  
GPA/137/Add.1, 27/05/2016  
GPA/142/Add.3, 03/07/2017  
Paragraph 2 of 
Annex  F in Appendix  2 Exclusions and restrictions in the 
Annexes to Appendix I  GPA/WPS/EXCS/6, 19/12/2014  
Paragraph 2 of 
Annex  D in Appendix  2 Statistics on procurement  GPA/WPS/STAT/3, 29/05/2015  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Agreement  Requirement  Symbol and date of latest notification  
Paragraph 3.2 of 
Annex  C in Appendix  2 Questionnaire; work programme on 
SMEs  GPA/WPS/SME/5, 04/08/2015  
GPA/WPS/SME/22, 27/06/2016  
GPA/WPS/SME/26, 06/07/2016  
Annexes  1, 2 and 3 of 
Appendix I  Thresholds  GPA/W/325/Add.10, 21/11/2014  
GPA/W/336/Add.10, 15/11/2016  
Agreement on Import Licensing Procedures  
Article 7.3 (4)  Replies to questionnaire on import 
licensing procedures  G/LIC/N/3/TPKM/5, 01/08/2014 to  
G/LIC/N/3/TPKM/8, 25/09/2017  
Article 1.4(a) and 
8.2(b)  Publication of import licensing 
procedures  G/LIC/N/1/TPKM/9, 01/08/2014 to  
G/LIC/N/1/TPKM/12, 22/09/2017  
Decision on Notification Procedures for Quantitative Restrictions  
G/L/59/Rev.1  Quantitative restrictions  G/MA/QR/N/TPKM/1, 03/10/2014  
G/MA/QR/N/TPKM/2, 28/07/2016  
Agreement on Rules of Origin  
Articles 5 and 4 of 
Annex II  Ad hoc  G/RO/N/113, 02/04/2014  
G/RO/N/119, 14/10/2014  
First time  G/RO/LDC/N/TPKM/1, 10/07/2017  
Agreement on Subsidies and Countervailing Measures  
Article 25.1  Subsidies  G/SCM/N/284/TPKM, 30/06/2015  
G/SCM/N/315/TPKM, 24/07/2017  
Article 25.11  Countervailing duty actions (semi -
annual)  G/SCM/N/267, 16/12/2013  
G/SCM/N/274, 23/06/2014  
G/SCM/N/281, 12/12/2014  
G/SCM/N/298, 18/12/2015  
G/SCM/N/305, 15/06/2016  
G/SCM/N/313, 16/12/2016  
G/SCM/N/321, 15/06/2017  
Agreement on Safeguards  
Termination  Termination of a safeguard 
investigation with no safeguard 
measure imposed  G/SG/N/9/TPKM/1, 14/05/2014  
Articles 12.5 and 8.2  Notification of termination of safeguard 
investigation  G/L/1076; G/SG/N/12/TPKM/1, 20/10/2014  
Article 12.6  Legislation  G/SG/N/1/TPKM/3, 28/01/2014  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7 and Annex B  Proposed and adopted SPS regulations  G/SPS/N/TPKM/303, 10/01/2014 to 
G/SPS/N/TPKM/452, 10/01/2018  
Agreement on Technical Barriers to Trade  
Article 2.10   G/TBT/N/TPKM/210, 29/07/2015  
Article 2.9  Technical regulations  G/TBT/N/TPKM/154, 07/01/2014 to 
G/TBT/N/TPKM/156, 14/03/2014  
G/TBT/N/TPKM/158, 01/04/2014 to 
G/TBT/N/TPKM/164, 19/06/2014  
G/TBT/N/TPKM/166, 08/07/2014  
G/TBT/N/TPKM/168, 23/07/2014  
G/TBT/N/TPKM/171, 18/08/2014  
G/TBT/N/TPKM/172, 18/08/2014  
G/TBT/N/TPKM/174, 04/09/2014 to 
G/TBT/N/TPKM/178, 10/10/2014  
G/TBT/N /TPKM/181, 28/10/2014  
G/TBT/N/TPKM/184, 06/11/2014  
G/TBT/N/TPKM/185, 06/11/2014  
G/TBT/N/TPKM/185/Rev.1, 23/02/2016  
G/TBT/N/TPKM/185/Rev.2, 15/09/2016  
G/TBT/N/TPKM/187, 27/11/2014  
G/TBT/N/TPKM/188, 28/11/2014  
G/TBT/N/TPKM/190, 08/12/2014  
G/TBT/N/TPKM/192, 13/01/2015 to 
G/TBT/N/TPKM/196, 16/01/2015  
G/TBT/N/TPKM/198, 28/01/2015  
G/TBT/N/TPKM/199, 28/01/2015  
G/TBT/N/TPKM/207, 19/06/2015  
G/TBT/N/TPKM/211, 29/07/2015  
G/TBT/N/TPKM/212, 12/08/2015  
G/TBT/N/TPKM/216, 01/10/2015  
G/TBT/N/TPKM/219, 14/10/2015 to 
G/TBT/N /TPKM/222, 13/11/2015  
G/TBT/N/TPKM/226, 07/01/2016  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Agreement  Requirement  Symbol and date of latest notification  
  G/TBT/N/TPKM/227, 04/02/2016  
G/TBT/N/TPKM/229, 04/03/2016 to 
G/TBT/N/TPKM/231, 01/04/2016  
G/TBT/N/TPKM/239, 08/07/2016 to 
G/TBT/N/TPKM/242, 03/08/2016  
G/TBT/N/TPKM/244, 01/09/2016  
G/TBT/N/TPKM/246, 26/09/2016  
G/TBT/N/TPKM/249, 14/10/2016  
G/TBT/N/TPKM/251, 20/10/2016  
G/TBT/N/TPKM/257, 06/12/2016  
G/TBT/N/TPKM/262, 19/01/2017  
G/TBT/N/TPKM/264, 13/02/2017  
G/TBT/N/TPKM/266, 13/03/2017  
G/TBT/N/TPKM/267, 13/04/2017 to  
G/TBT/N/TPKM/269, 18/04/2017  
G/TBT/N/TP KM/275, 09/06/2017  
G/TBT/N/TPKM/283, 09/08/2017  
G/TBT/N/TPKM/283/Rev.1, 15/01/2018  
G/TBT/N/TPKM/286, 16/08/2017 to 
G/TBT/N/TPKM/288, 28/08/2017  
G/TBT/N/TPKM/292, 02/10/2017 to 
G/TBT/N/TPKM/294, 05/10/2017  
G/TBT/N/TPKM/296, 30/11/2017  
G/TBT/N/TPKM/297, 30/1 1/2017  
G/TBT/N/TPKM/302, 30/11/2017  
G/TBT/N/TPKM/305, 30/11/2017 to 
G/TBT/N/TPKM/307, 30/11/2017  
G/TBT/N/TPKM/310, 04/12/2017  
G/TBT/N/TPKM/312, 15/11/2017  
G/TBT/N/TPKM/283/Rev.1, 15/01/2018  
Articles 2.9 and 5.6  Technical regulations  G/TBT/N/TPKM/157, 24/03/2014  
G/TBT/N/TPKM/165, 07/07/2014 to  
G/TBT/N/TPKM/167, 23/07/2014  
G/TBT/N/TPKM/148/Rev.1, 09/07/2014  
G/TBT/N/TPKM/169, 06/08/2014  
G/TBT/N/TPKM/170, 14/08/2014  
G/TBT/N/TPKM/173, 26/08/2014  
G/TBT/N/TPKM/179, 22/10/2014  
G/TBT/N/TPKM/180, 24/10/2014  
G/TBT/N/TPKM/182, 04/11/2014  
G/TBT/N/TPKM/183, 06/11/2014  
G/TBT/N/TPKM/186, 20/11/2014  
G/TBT/N/TPKM/189, 28/11/2014  
G/TBT/N/TPKM/191, 12/12/2014  
G/TBT/N/TPKM/197, 21/01/2015  
G/TBT/N/TPKM/200, 25/02/2015 to 
G/TBT/N/TPKM/206, 19/06/2015  
G/TBT/N/TPKM/168/Rev.1, 17/03/2015  
G/TBT/N/TPKM/208, 02/07/2015  
G/TBT/N/TPKM/209, 03/07/2015  
G/TBT/N/TPKM/213, 02/09/2015 to 
G/TBT/N/TPKM/215, 21/09/2015  
G/TBT/N/TPKM/217, 01/10/2015  
G/TBT/N/TPKM/218, 07/10/2015  
G/TBT/N/TPKM/223, 03/12/2015 to 
G/TBT/N/TPKM/225, 08/12/2015  
G/TBT/N /TPKM/228, 19/02/2016  
G/TBT/N/TPKM/232, 12/04/2016 to 
G/TBT/N/TPKM/238, 07/07/2016  
G/TBT/N/TPKM/243, 10/08/2016  
G/TBT/N/TPKM/206/Rev.1, 16/08/2016  
G/TBT/N/TPKM/245, 01/09/2016  
G/TBT/N/TPKM/247, 27/09/2016  
G/TBT/N/TPKM/248, 06/10/2016  
G/TBT/N/TPKM/250, 17/1 0/2016  
G/TBT/N/TPKM/252, 20/10/2016 to  
G/TBT/N/TPKM/256, 02/12/2016  
G/TBT/N/TPKM/258, 09/12/2016 to 
G/TBT/N/TPKM/261, 12/01/2017  
G/TBT/N/TPKM/263, 30/01/2017  
G/TBT/N/TPKM/265, 02/03/2017  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Agreement  Requirement  Symbol and date of latest notification  
  G/TBT/N/TPKM/270, 19/04/2017  
G/TBT/N/TPKM/272, 16/05/2017 to  
G/TBT/N/TPKM/274, 22/05/2017  
G/TBT/N/TPKM/276, 16/06/2017 to  
G/TBT/N/TPKM/282, 28/07/2017  
G/TBT/N/TPKM/284, 09/08/2017  
G/TBT/N/TPKM/289, 14/09/2017 to  
G/TBT/N/TPKM/291, 29/09/2017  
G/TBT/N/TPKM/295, 27/11/2017  
G/TBT/N/TPKM/298, 30/11/2017  
G/TBT/N/TPKM/299, 30/11/2017  
G/TBT/N/TPKM/301, 30/11/2017  
G/TBT/N/TPKM/303, 30/11/2017  
G/TBT/N/TPKM/304, 30/11/2017  
G/TBT/N/TPKM/308, 30/11/2017  
G/TBT/N/TPKM/309, 01/12/2017  
G/TBT/N/TPKM/311, 04/12/2017  
G/TBT/N/TPKM/313, 15/01/2018  
G/TBT/N/TPKM/314, 09/01/2018  
Article 5.6  Conformity assessment procedures  G/TBT/N/TPKM/285, 16/08/2017  
Agreement on Implementation of Article VII of GATT 1994 (customs valuation)  
Articles 1, 4, 5, 6, 7, 
9, 10, 11, 12, 13 and 
16 Replies to questions on customs 
valuation  G/VAL/N/2/MNE/1, 22/12/2014  
Article 22  Laws/regulations  G/VAL/N/1/MNE/1, 15/12/2014  
Article 4  Notification of treatment of interest 
charges in customs value of imported 
goods  G/VAL/N/3/MNE/1, 22/12/2014  
Agreement on Trade Facilitation  
WT/L/911  Category A commitments  WT/PCTF/N/TPKM/1, 26/06/2014  
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/4, 21/01/2014  
IP/N/1/TPKM/E/3, IP/N/1/TPKM/P/4, 28/01/2014  
IP/N/1/TPKM/P/3, 28/01/2014  
IP/N/1/TPKM/T/5, 11/03/2014  
IP/N/1/TPKM/5, 11/03/2014  
IP/N/1/TPKM/6, 22/04/2014  
IP/N/1/TPKM/U/2, 08/05/2014  
IP/N/1/TPKM/P/5, 08/05/2014  
IP/N/1/TPKM/L/3, 08/05/2014  
IP/N/1/TPKM/C/11, 08/05/2014  
IP/N/1/ TPKM/C/10, 08/05/2014  
IP/N/1/TPKM/8, IP/N/1/TPKM/O/1, 11/03/2015  
IP/N/1/TPKM/7, IP/N/1/TPKM/P/6, 11/03/2015  
IP/N/1/TPKM/10, IP/N/1/TPKM/O/2, 01/10/2015  
IP/N/1/TPKM/9, IP/N/1/TPKM/T/6, 01/10/2015  
IP/N/1/TPKM/13, IP/N/1/TPKM/P/7, 10/12/2015  
IP/N/1/TPKM/12, IP/N/1/TPKM/O/4, 10/12/2015  
IP/N/1/TPKM/11, IP/N/1/TPKM/O/3, 10/12/2015  
IP/N/1/TPKM/18, IP/N/1/TPKM/T/8, 10/10/2017  
IP/N/1/TPKM/17, IP/N/1/TPKM/T/7, 10/10/2017  
IP/N/1/TPKM/16, IP/N/1/TPKM/P/9, 10/10/2017  
IP/N/1/TPKM/15, IP/N/1/TPKM/P/8, 10/10/2017  
IP/N/1/T PKM/14, IP/N/1/TPKM/C/12, 10/10/2017  
Agreement on Trade -Related Investment Measures  
Article 6.2  Notification of publications  G/TRIMS/N/2/Rev.24, 15/09/2014  
G/TRIMS/N/2/Rev.24/Add.4, 05/05/2015  
Source:  WTO Secretariat.  
  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table A2. 2 Summary features of RTAs in force, January 2018  
El Salvador –Honduras –Chinese Taipei Free Trade Agreement  
Parties  El Salvador, Honduras and Chinese Taipei  
Date of entry into force  El Salvador and Chinese Taipei : 1 March 2008  
Honduras and Chinese Taipei : 15 July 2008  
End of transition period (goods liberalization) for 
Chinese  Taipei  01 January 2027  
Coverage  Goods and services  
Chinese Taipei's merchandise trade with El Salvador (2017)  0.02% of total imports; 0.03% of total exports  
Chinese Taipei's merchandise trade with Honduras  (2017)  0.03% of total imports; 0.02% of total exports  
WTO legal cover  GATT Art. XXIV & GATS Art. V  
WTO consideration status  Factual presentation distributed. WTO 
consideration 03.07.2013  
WTO document series  WT/REG283/1/Rev.1  
 
 
Guatemala –Chinese Taipei Free Trade Agreement  
Parties  Guatemala and Chinese Taipei  
Date of entry into force  01 July 2006  
End of transition period (goods liberalization) for 
Chinese  Taipei  2020 
Coverage  Goods and services  
Chinese Taipei's merchandise trade with Guatemala (2017)  0.04% of total imports; 0.04% of total exports  
WTO legal cover  GATT Art. XXIV & GATS Art. V  
WTO consideration status  Factual presentation distributed. WTO 
consideration 03.07.2013  
WTO document series  WT/REG297/1/Rev.1  
 
 
New Zealand –Chinese Taipei Free Trade Agreement  
Parties  New Zealand and Chinese Taipei  
Date of entry into force  01 December 2013  
End of transition period (goods liberalization) for 
Chinese  Taipei  2025 
Coverage  Goods and services  
Chinese Taipei's merchandise trade with New Zealand (2017)  0.3% of total imports; 0.2% of total exports  
WTO legal cover  GATT Art. XXIV & GATS Art. V  
WTO consideration status  Factual presentation distributed. WTO 
consideration 10.11. 2014 
WTO document series  WT/REG348/1  
 
 
Nicaragua –Chinese Taipei Free Trade Agreement  
Parties  Nicaragua and Chinese Taipei  
Date of entry into force  01 January 2008  
End of transition period (goods liberalization) for 
Chinese  Taipei  2022 
Coverage  Goods and services  
Chinese Taipei's merchandise trade with Nicaragua (2017)  0.05% of total imports; 0.01% of total exports  
WTO legal cover  GATT Art. XXIV & GATS Art. V  
WTO consideration status  Factual presentation distributed. WTO 
consideration 27.09. 2010 
WTO document series  WT/REG267/1/Rev.1  
 
 
Panama –Chinese Taipei Free Trade Agreement  
Parties  Panama and Chinese Taipei  
Date of entry into force  01 January 2004  
End of transition period (goods liberalization) for 
Chinese  Taipei  2013 
Coverage  Goods and services  
Chinese Taipei's merchandise trade with Panama (2017)  0.01% of total imports; 0.04% of total exports  
WTO legal cover  GATT Art. XXIV & GATS Art. V  
WTO consideration status  Factual presentation distributed. WTO 
consideration 29.11. 2010 
WTO document series  WT/REG268/1  
 WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Singapore –Chinese Taipei Free Trade Agreement  
Parties  Singapore and Chinese Taipei  
Date of entry into force  19 April 2014  
End of transition period (goods liberalization) for 
Chinese  Taipei  2028 
Coverage  Goods and services  
Chinese Taipei's merchandise trade with Singapore (2017)  3.4% of total imports; 5.6% of total exports  
WTO legal cover  GATT Art. XXIV & GATS Art. V  
WTO consideration status  Factual presentation distributed. WTO 
consideration 30.03. 2015 
WTO document series  WT/REG350/1  
 
 
Cross –Straits Economic Cooperation Framework Agreement (ECFA)  
Parties  China and Chinese Taipei  
Date of entry into force  12 September 2010  
End of transition period (goods liberalization) for 
Chinese  Taipei  2013 (for early harvest items)  
Coverage  Goods and Services  
Chinese Taipei's merchandise trade with China (2017)  19.3% of total imports; 28.0% of total exports  
WTO legal cover  Not notified to WTO (early announcement 
made)  
WTO consideration status  Not notified to WTO  
 
Paraguay –Chinese Taipei Agreement on Economic Cooperation  
Parties  Paraguay and Chinese Taipei  
Date of entry into force  28 February 2018  
End of transition period (goods liberalization) for 
Chinese  Taipei  2023 
Coverage  Goods (limited scope)  
Chinese Taipei's merchandise trade with Paraguay (2016)  0.009% of total imports and 0.01% of total 
exports  
WTO legal cover  Not notified to WTO  
WTO consideration status  Not notified to WTO  
Source:  WTO Secretariat.  
  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table  A2.3 Imports from LDCs under PTAs, 2014 -2017  
(NT$ '000)  
Trading partner   2014  2015  2016  2017  
Afghanistan  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 0 
0 123 
0 
Angola  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 0 
0 0 
0 
Bangladesh  Total value of imports  
Value of imports entering under preferences  542,073  
411,526  371,698  
310,107  228,731  
193,999  233,519  
181,622  
Benin  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 0 
0 0 
0 
Bhutan  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 228 
0 2 
0 
Burkina Faso  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 0 
0 42 
0 
Burundi  Total value of imports  
Value of imports entering under preferences  2,076  
0 9,508  
0 5,849  
0 5,068  
0 
Cambodia  Total value of imports  
Value of imports entering under preferences  72,137  
55,040  128,597  
113,562  222,102  
204,982  171,374  
157,746  
Central African  
Rep. Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 0 
0 0 
0 
Chad  Total value of imports  
Value of imports entering under preferences  0 
0 1 
0 0 
0 0 
0 
Comoros  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 75 
0 11 
0 
Congo DR  Total value of imports  
Value of imports entering under preferences  176 
0 0 
0 1 
0 302 
0 
Djibouti  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 0 
0 0 
0 
Eritrea  Total value of imports  
Value of imports entering under preferences  21 
0 0 
0 0 
0 0 
0 
Ethiopia  Total value of imports  
Value of imports entering under preferences  207,472  
7,600  227,654  
863 325,730  
314 532,581  
3,518  
Gambia  Total value of imports  
Value of imports entering under preferences  1 
0 0 
0 0 
0 0 
0 
Guinea  Total value of imports  
Value of imports entering under preferences  0 
0 533 
0 199 
0 73 
73 
Guinea -Bissau  Total value of imports  
Value of imports entering under preferences  35 
0 0 
0 0 
0 0 
0 
Haiti  Total value of imports  
Value of imports entering under preferences  3,561  
3,458  855 
850 6 
6 20 
20 
Kiribati  Total value of imports  
Value of imports entering under preferences  15,226  
0 0 
0 0 
0 0 
0 
Lao PDR  Total value of imports  
Value of imports entering under preferences  35,923  
1,409  29,554  
3,678  45,101  
2,005  30,473  
4,777  
Lesotho  Total value of imports  
Value of imports entering under preferences  1,034  
1,034  0 
0 0 
0 0 
0 
Liberia  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 0 
0 0 
0 
Madagascar  Total value of imports  
Value of imports entering under preferences  779 
 1,719  
1,719  869 
785 774 
774 
Malawi  Total value of imports  
Value of imports entering under preferences  1,330  
1,330  20,156  
20,156  12,566  
12,566  16,455  
16,455  
Mali Total value of imports  
Value of imports entering under preferences  12 
12 0 
0 0 
0 0 
0 
Mauritania  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 0 
0 0 
0 
Mozambique  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 3 
3 0 
0 
Myanmar  Total value of imports  
Value of imports entering under preferences  116,278  
115,203  126,727  
125,220  134,985  
126,488  165,578  
131,409  
Nepal  Total value of imports  
Value of imports entering under preferences  7,011  
6,962  6,139  
5,727  7,754  
6,750  9,829  
9,155  
Niger  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 131 
131 55 
55 
Rwanda  Total value of imports  
Value of imports entering under preferences  6,017  
0 6,847  
0 7,955  
214 9,325  
0 
Sao Tome and 
Principe  Total value of imports  
Value of imports entering under preferences  319 
0 253 
0 407 
0 58 
0 WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Trading partner   2014  2015  2016  2017  
Senegal  Total value of imports  
Value of imports entering under preferences  860 
860 4,457  
4,421  1,244  
1,244  1,315  
1,315  
Sierra Leone  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 6 
6 0 
0 
Solomon Islands  Total value of imports  
Value of imports entering under preferences  23,001  
0 0 
0 0 
0 0 
0 
Somalia  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 0 
0 29 
29 
South Sudan  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 0 
0 0 
0 
Sudan  Total value of imports  
Value of imports entering under preferences  11,365  
4,063  3,565  
3,565  755 
1 3,251  
3,251  
Timor Leste  Total value of imports  
Value of imports entering under preferences  26 
1 5,189  
0 5,360  
4 12,621  
2 
Togo Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 0 
0 269 
269 
Tuvalu  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 0 
0 0 
0 
Uganda  Total value of imports  
Value of imports entering under preferences  14,517  
0 10,593  
0 22,122  
0 19,885  
0 
Tanzania  Total value of imports  
Value of imports entering under preferences  15,409  
1,941  17,628  
13 13,700  
620 22,772  
19 
Vanuatu  Total value of imports  
Value of imports entering under preferences  0 
0 0 
0 52 
52 0 
0 
Yemen  Total value of imports  
Value of imports entering under preferences  2,131  
0 3,075  
0 3,726  
1,734  1,930  
0 
Zambia  Total value of imports  
Value of imports entering under preferences  0 
0 212 
0 166 
0 318 
0 
Source:  Based on information provided by the authorities.  
 WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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  Table A2. 4 Investment prohibitions and restrictions, 2018  
1. Prohibited  
Scope of industry  Sub-item of industry  Description  
Manufacture of 
chemical material, 
fertilizers and nitrogen 
compounds, plastic and 
rubber materials, man -
made fibres  1810 Manufacture of chemical 
material  Manufacturing of nitroglycerin for military use 
(nitroglycerin used in explosive pillars involving public 
safety)  
Soda-chloride factories operating with mercuric 
electrolyzers  
A category of chemical products in accordance with the 
UN prohibition of chemical weapons  
CFC, halon, methylchoroform, carbon tetrachloride  
Manufacture of other 
chemical products  1990 Manufacture of other 
chemical products not 
elsewhere classified  Gun powder fuse, agents of fire and fulminating mercury  
Manufacture of basic 
metals  2499 Manufacture of other 
basic metals not elsewhere 
classified  Cadmium smelting  
Manufacture of 
machinery and 
equipment  2939 Manufacture of other 
general -purpose machinery  Firearms, weapons manufacturing, arms repair, 
ammunition and fire -control (exclusive of military 
aircraft), high -energy weapons systems (such as laser 
weapons, microwave weapons, and electromagnetic 
railguns) and other hi -tech wea pons systems  
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  
Postal and courier 
activities  5410 Postal activities   
Programming and 
broadcasting activities  6010 Radio broadcasting  
6020 Television broadcasting 
and subscription programming  Radio broadcasting industry  
Radio television industry (exclusive of satellite television 
broadcasting)  
Financial service  
activities  6415 Postal saving and 
remittance services   
Legal and accounting 
activities  6919 Other monetary 
intermediation  Public notary services  
Sports activities and 
amusement and 
recreation activities  9323 Special amusement 
activities   
2. Restricted  
Scope of industry  Sub-item of industry  Description  
Agriculture and animal 
husbandry  0111 Growing of rice   
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 protec ted cultivation 
(limited to plant factories  
0116 Growing of mushrooms   
0119 Growing of other crops   
0121 Raising of cattle   
0122 Raising of swine/pigs  Raising of breed swine  
0123 Raising of chickens  Raising of breed chickens  
0124 Raising of ducks  Raising of breed ducks  
0129 Other animal husbandry   
Forestry    
Fishing    
Manufacture of tobacco 
products    WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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 Scope of industry  Sub-item of industry  Description  
Manufacture of 
chemical material, 
fertilizers and nitrogen 
compounds, plastic and 
rubber materials, man -
made fibres  1810 Manufacture of chemical 
material  Manufacturing of nitroglycerin (not used in gun powder 
and explosive pillars involving public safety)  
Manufacture of 
computers, electronic 
and optical products   Military instrument and equipment  
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  
Other manufacturing  3399 Other manufacturing not 
elsewhere classified  Processing of ivory  
Electricity and gas 
supply  3510 Electricity supply  Electric power transmission and power distribution  
3520 Gas supply  Piped fuel gas supply  
Water supply  3600 Water supply  Tap water supply  
Water transportation  5010 Ocean transportation  
5020 Inland and lake 
transportation  Transport by ship  
Air transportation  5100 Air transportation   
Support activities for 
transportation  5260 Service activities 
incidental to air transportation  Airport ground services, air catering services and airport 
operation and management services  
Programming and 
broadcasting activities  6020 Television broadcasting 
and subscription programming  Satellite television broadcasting (provision of satellite 
television programming)  
Telecommunications  6100 Telecommunications  Cable television services, satellite television broadcasting 
(direct broadcast satellite TV service) and/or Type -I 
telecommunications enterprise  
Legal and accounting 
activities  6912 Scrivener activities  Land registration services  
Source:  Information provided by the authorities.  
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  Table A3. 1 MFN applied tariff summary, 2018  
  Number 
of lines  Average 
(%) Range 
(%) Coefficient 
of variation 
(%) Duty 
free 
(%) 
Total  9,134  7.2 0-1,059.6  2.6 29.2 
HS 01 -24 1,844  19.2 0-1,059.6  2.0 16.4 
HS 25 -97 7,290  4.2 0-30 1.0 32.5 
By WTO category       
WTO agricultural products  1,504  17.8 0-1,059.6  2.4 22.4 
 Animals and products thereof  224 18.4 0-45 0.6 3.1 
 Dairy products  49 22.4 5-69.4 0.8 0.0 
 Fruit, vegetables, and plants  451 21.0 0-1,059.6  2.6 20.0 
 Coffee and tea  46 12.4 0-38.2 0.8 26.1 
 Cereals and preparations  174 31.4 0-476.8  2.0 6.9 
 Oils seeds, fats, oil and their products  128 12.9 0-338 3.7 49.2 
 Sugars and confectionary  29 16.1 0-27.5 0.5 6.9 
 Beverages, spirits and tobacco  116 18.1 0-40 0.5 12.9 
 Cotton  5 0.0 0-0 0.0 100.0  
 Other agricultural products, n.e.s.  282 6.3 0-500 4.8 46.5 
WTO non -agricultural products  7,630  5.1 0-92.8 1.2 30.6 
 Fish and fishery products  444 20.4 0-92.8 0.5 5.4 
 Minerals and metals  1,445  2.8 0-12.5 1.3 54.5 
 Chemicals and photographic supplies  1,605  2.8 0-20 0.8 27.3 
 Wood, pulp, paper and furniture  382 0.7 0-12.5 3.7 91.9 
 Textiles  883 7.6 0-12.5 0.4 3.4 
 Clothing  366 11.8 10.5-12.5 0.0 0.0 
 Leather, rubber, footwear and travel goods  219 5.2 0-10 0.7 15.1 
 Non-electric machinery  825 3.3 0-17.5 0.9 23.6 
 Electric machinery  501 3.8 0-15 0.9 28.3 
 Transport equipment  265 9.5 0-30 0.9 21.5 
 Non-agricultural products, n.e.s.  661 3.1 0-10 1.0 39.6 
 Petroleum  34 2.0 0-5 1.0 47.1 
By ISIC sector       
 ISIC 1 - Agriculture, hunting and fishing  664 15.8 0-1,059.6  3.1 32.2 
 ISIC 2 - Mining  139 0.6 0-7.5 2.8 81.3 
 ISIC 3 - Manufacturing  8,330  6.6 0-500 2.0 28.2 
 Manufacturing excluding food processing  7,116  4.3 0-30 1.0 31.1 
 Electrical energy  1 0.0 0-0 0.0 100.0  
By stage of processing       
 First stage of processing  1,231  12.7 0-1,059.6  3.3 39.6 
 Semi-processed products  2,833  4.6 0-297.9  2.4 33.1 
 Fully processed products  5,070  7.3 0-338 1.5 24.7 
By HS section       
 01 Live animals and products  734 18.7 0-500 1.2 9.0 
 02 Vegetable products  559 21.6 0-1,059.6  2.8 27.5 
 03 Fats and oils  78 12.7 0-338 4.2 35.9 
 04 Prepared food, beverages and tobacco  473 18.3 0-121.7  0.8 11.6 
 05 Mineral products  231 1.0 0-7.5 1.8 67.5 
 06 Chemicals and products thereof  1,496  2.7 0-25 1.0 32.9 
 07 Plastics, rubber, and articles thereof  358 4.7 0-10 0.6 3.4 
 08 Raw hides and skins, leather, and its 
products  87 3.3 0-10 1.1 39.1 
 09 Wood and articles of wood  161 1.9 0-12.5 1.9 73.9 
 10 Pulp of wood, paper and paperboard  182 0.0 0-0 0.0 100.0  
 11 Textiles and textile articles  1,220  8.7 0-12.5 0.4 4.2 
 12 Footwear, headgear, etc.  76 6.0 0-10 0.5 9.2 
 13 Articles of stone, plaster, cement  258 6.7 0-12.5 0.4 3.9 
 14 Precious stones and metals, pearls  76 0.1 0-6.5 8.7 98.7 
 15 Base metals and articles thereof  894 2.6 0-10 1.4 59.3 
 16 Machinery, electrical equipment, etc.  1,333  3.4 0-17.5 0.9 26.3 
 17 Transport equipment  284 9.2 0-30 0.9 22.2 
 18 Precision equipment  363 2.3 0-10 1.3 48.8 
 19 Arms and ammunition  21 1.7 0-5 1.4 66.7 
 20 Miscellaneous manufactured articles  240 3.1 0-11 0.9 37.1 
 21 Works of art, etc.  10 0.0 0-0 0.0 100.0  
Note:  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.   WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
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 Table A3. 2 Non-ad valorem  applied tariffs and their respective ad valorem  equivalents  
HS code  Description  MFN 2018a AVE 
02011010  Meat of bovine animals, fresh or chilled  NT$10/kg  4.3%  
02011090  Meat of bovine animals, fresh or chilled  NT$10/kg  4.3%  
02012010  Meat of bovine animals, fresh or chilled  NT$10/kg  2.7%  
02012020  Meat of bovine animals, fresh or chilled  NT$10/kg  2.5%  
02012090  Meat of bovine animals, fresh or chilled  NT$10/kg  2.1%  
02013010  Meat of bovine animals, fresh or chilled  NT$10/kg  2.3%  
02013020  Meat of bovine animals, fresh or  chilled  NT$10/kg  4.0%  
02013090  Meat of bovine animals, fresh or chilled  NT$10/kg  3.5%  
02021010  Meat of bovine animals, frozen  NT$10/kg  12.7%  
02021090  Meat of bovine animals, frozen  NT$10/kg  12.7%  
02022010  Meat of bovine animals, frozen  NT$10/kg  3.6%  
02022020  Meat of bovine animals, frozen  NT$10/kg  3.9%  
02022090  Meat of bovine animals, frozen  NT$10/kg  5.1%  
02023010  Meat of bovine animals, frozen  NT$10/kg  3.5%  
02023020  Meat of bovine animals, frozen  NT$10/kg  4.2%  
02023090  Meat of bovine animals, frozen  NT$10/kg  5.6%  
02041000  Meat of sheep, fresh, chilled or frozen  NT$11.3/kg or 15%  15.0%  
02042100  Meat of sheep, fresh, chilled or frozen  NT$11.3/kg or 15%  15.0%  
02042200  Meat of sheep, fresh, chilled or frozen  NT$11.3/kg or 15%  15.0%  
02042300  Meat of sheep, fresh, chilled or frozen  NT$11.3/kg or 15%  15.0%  
02043000  Meat of sheep, fresh, chilled or frozen  NT$11.3/kg or 15%  15.0%  
02044100  Meat of sheep, fresh, chilled or frozen  NT$11.3/kg or 15%  15.0%  
02044200  Meat of sheep, fresh,  chilled or frozen  NT$11.3/kg or 15%  15.0%  
02044300  Meat of sheep, fresh, chilled or frozen  NT$11.3/kg or 15%  15.0%  
02045000  Meat of goats, fresh, chilled or frozen  NT$11.3/kg or 15%  15.0%  
03019921  Live swamp eel  NT$10.8/kg or 18%  18.9%  
03024400  Mackerel, fresh or chilled  NT$9.3/kg or 30%  30.0%  
03024920  Capelin, fresh or chilled  NT$9/kg or 17.5%  17.5%  
03028910  Mullet, fresh or chilled  NT$30/kg  22.1%  
03028930  Sweetfish (Ayu), fresh or chilled  NT$23/kg or 17.5%  17.5%  
03028951  Rice-field eel, fresh or chilled  NT$10.8/kg or 18%  18.0%  
03028960  Shishamo smelt, lake smelt, fresh or chilled  NT$9/kg or 17.5%  17.5%  
03035400  Mackerel, frozen  NT$7.3/kg or 25%  25.0%  
03035920  Capelin, frozen  NT$6.42/kg or 12.5%  12.5%  
03038910  Mullet, frozen  NT$25/kg  54.4%  
03038930  Sweetfish (Ayu), frozen  NT$23/kg or 17.5%  20.4%  
03038951  Rice-field eel, frozen  NT$10.8/kg or 18%  18.0%  
03038960  Shishamo smelt, lake smelt, frozen  NT$6.42/kg or 12.5%  12.5%  
03044910  Swamp eel fillets, fresh or chilled  NT$12/kg or 20%  20.0%  
03045910  Swamp eel meat, fresh or chilled  NT$12/kg or 20%  20.0%  
03048910  Swamp eel fillets, frozen  NT$12/kg or 20%  26.1%  
03055971  Silver anchovy, dried  NT$47.6/kg or 25%  40.2%  
03061112  Rock lobster and other sea crawfish, not smoked, frozen  NT$33.7/kg or 15%  15.0%  
03061212  Lobster, not smoked, frozen  NT$33.7/kg or 15%  15.0%  
03061421  Swamp crabs, not smoked, frozen  NT$40.8/kg or 30%  37.2%  
03063100  Rock lobster and other sea crawfish, live, fresh or chilled  NT$33.7/kg or 15%  15.0%  
03063200  Lobster, live, fresh or chilled  NT$33.7/kg or 15%  15.0%  
03063321  Swamp crabs, live, fresh or chilled  NT$47.6/kg or 35%  35.0%  
03069110  Rock lobster, dried, salted or in brine, but not smoked  NT$33.7/kg or 15%  15.0%  
03069210  Lobster, dried, salted or in brine, but not smoked  NT$33.7/kg or 15%  15.0%  
03069511  Shrimp skin, dried , but not smoked  NT$5.36/kg or 24%  24.0%  
03069519  Other shrimps/prawns, dried, salted/in brine, but not 
smoked  NT$48/kg or 25%  80.8%  
03071920  Oysters, dried, but not smoked  NT$50/kg or 25%  25.0%  
03072100  Scallops, live, fresh or chilled  NT$17.2/kg or 10%  10.0%  
03072200  Scallops, frozen, but not smoked  NT$17.2/kg or 10%  10.0%  
03072920  Scallops, dried, salted or in brine, but not smoked  NT$184/kg or 12.5%  12.5%  
03073921  Mussels, dried, but not smoked  NT$40.5/kg or 27%  44.6%  
03074221  Squid, live, fresh or chilled  NT$15/kg  49.6%  
03074321  Squid, frozen, but not smoked  NT$15/kg  30.4%  
03074922  Squid, dried, salted or in brine, but not smoked  NT$219/kg or 50%  50.0%  
03077120  Ruditapes philippinarum, live, fresh or chilled  NT$34/kg or 30%  30.0%  
03077210  Ruditapes philippinarum, frozen, but not smoked  NT$34/kg or 30%  36.5%  
03077220  Arcoida, frozen, but not smoked  NT$11.7/kg or 25%  25.0%  
03077230  Clams, frozen, but not smoked  NT$22.6/kg or 20%  32.6%  
03078121  Other abalone, live, fresh or chilled  NT$30/kg or 7.5%  7.5%  
03078122  Other haliotis diversicolor, live, fresh or chilled  NT$66.4/kg or 20%  20.0%  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 154 - 
 
  HS code  Description  MFN 2018a AVE 
03078310  Abalone, frozen, but not smoked  NT$30/kg or 7.5%  9.0%  
03078320  Haliotis diversicolor, frozen, but not smoked  NT$83/kg or 25%  26.2%  
03078720  Abalone, dried, but not smoked  NT$225/kg or 15%  25.0%  
03078740  Abalone, including Haliotis diversicolor, smoked  NT$36/kg or 9%  11.4%  
03079170  Locos, live, fresh or chilled  NT$26.6/kg or 14%  16.0%  
03079210  Arcoida, frozen, but not smoked  NT$11.7/kg or 25%  25.0%  
03079220  Clams, frozen, but not smoked  NT$22.6/kg or 20%  20.5%  
03079230  Top shell, frozen, but not smoked  NT$30/kg or 20%  61.6%  
03079240  Locos, frozen, but not smoked  NT$19/kg or 10%  10.0%  
03079951  Top shell, dried, salted or in brine, but not smoked  NT$45.2/kg or 30%  92.8%  
03079963  Locos, smoked  NT$17/kg or 10%  34.9%  
03081921  Sea cucumbers, spiky, dried, but not smoked  NT$100/kg or 10%  10.0%  
03083030  Jellyfish, dried, salted or in brine, but not smoked  NT$8.4/kg or 12%  13.1%  
04011010  Fresh milk  NT$15.6/kgb 59.6%  
04011020  Long-life milk  NT$15.6/kgb 58.9%  
04012010  Fresh milk  NT$15.6/kgb 48.8%  
04012020  Long-life milk  NT$15.6/kgb 64.2%  
04014010  Fresh milk  NT$15.6/kgb 21.5%  
04014020  Long-life milk  NT$15.6/kgb 69.4%  
04015010  Fresh milk  NT$15.6/kgb 19.8%  
04015020  Long-life milk  NT$15.6/kgb 48.1%  
04029910  Fresh milk, containing added sugar  NT$15.6/kgb 25.0%  
04029920  Milk, evaporated or sterilized, containing added sugar  NT$15.6/kgb 25.0%  
04029992  Other milk, containing added sugar  NT$15.6/kgb 55.4%  
04039029  Certain type of buttermilk  NT$15.6/kgb 5.7%  
04039040  Curdled milk  NT$15.6/kgb 20.8%  
04039059  Other flavoured, modified, fermented milk  NT$15.6/kgb 58.6%  
04039090  Certain type of cream  NT$15.6/kgb 20.8%  
07032010  Garlic bulb for planting  NT$27/kgb 54.8%  
07032090  Other garlic, fresh or chilled  NT$27/kgb 54.8%  
07102910  Frozen red beans  NT$22/kgb 66.5%  
07123920  Shiitake, dried  NT$369/kgb 109.0%  
07129040  Dried garlic bulb  NT$27/kgb 30.8%  
07129050  Day lily, dried  NT$58/kgb 103.0%  
07133200  Dried red beans  NT$22/kgb 58.6%  
08013120  Dried cashew nuts, in shell  NT$26.2/kg or 16%  116.8%  
08013220  Dried cashew nuts, shelled  NT$26.2/kg or 16%  16.0%  
08021120  Bitter almonds, in shell, fresh or dried  NT$4/kg or 10%  10.0%  
08021220  Bitter almonds, shelled, fresh or dried  NT$4/kg or 10%  10.0%  
08024110  Fresh chestnuts, in shell  NT$5.8/kg or 16%  16.7%  
08024120  Dried chestnuts, in shell  NT$10.2/kg or 16%  16.7%  
08024210  Fresh chestnuts, shelled  NT$5.8/kg or 16%  21.1%  
08024220  Dried chestnuts, shelled  NT$10.2/kg or 16%  16.0%  
08028000  Areca (betel) nuts, fresh or dried  NT$810/kgb 1059.6%  
08062010  Grapes, dried (raisin), in bulk  NT$2/kg  2.9%  
08062020  Grapes, dried (raisin), packed in boxes  NT$2/kg  1.8%  
08083090  Other pears, fresh  NT$49/kgb 83.5%  
08121000  Cherries, provisionally preserved  NT$10/kg or 20%  20.0%  
08134010  Longans, dried and longan pulp  NT$88/kgb 137.8%  
10061000  Rice in the husk (paddy or rough)  NT$45/kgb 476.8%  
10062000  Husked (brown) rice  NT$45/kgb 261.4%  
10063000  Semi-milled or wholly milled rice  NT$45/kgb 230.7%  
10064000  Broken rice  NT$45/kgb 318.5%  
11029011  Glutinous rice flour  NT$49/kgb 252.6%  
11029019  Other rice flour  NT$49/kgb 297.9%  
11031910  Groats and meal of coix  NT$5.7/kg or 20%  20.0%  
11031930  Groats and meal of rice  NT$45/kgb 80.2%  
11032010  Pellets of rice  NT$49/kgb 81.6%  
11041910  Rolled of flaked rice  NT$49/kgb 194.1%  
11042920  Other worked rice  NT$49/kgb 274.5%  
11061010  Red bean flour, meal and powder  NT$22/kgb 81.3%  
11081910  Rice starch  NT$49/kgb 143.3%  
12023010  Seed of ground -nuts, in shell  NT$42/kgb 26.8%  
12023020  Seed of ground -nuts, shelled  NT$64/kgb 26.8%  
12024100  Ground -nuts, in shell  NT$42/kgb 186.3%  
12024200  Ground -nuts, shelled, whether or not broken  NT$64/kgb 120.8%  
12089011  Flours and meals of ground -nuts, edible  NT$64/kgb 122.5%  
12089021  Flours and meals of ground -nuts, inedible  NT$64/kgb 122.5%  
12129952  Bitter apricot stones and kernels  NT$4/kg or 10%  10.0%  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 155 - 
 
 HS code  Description  MFN 2018a AVE 
18069053  Certain type of prepared milk containing cocoa  NT$15.6/kgb 8.3%  
18069055  Certain type of flavoured milk  containing cocoa  NT$15.6/kgb 8.3%  
18069061  Certain type of cereals containing cocoa  NT$49/kgb 26.1%  
18069071  Certain type of prepared food containing cocoa  NT$49/kgb 38.2%  
18069092  Certain type of prepared food containing cocoa  NT$49/kgb 26.1%  
19019025  Milk, prepared, containing added sugar  NT$15.6/kgb 54.4%  
19019027  Flavoured milk, prepared  NT$15.6/kgb 23.9%  
19019091  Certain type food preparations containing >=30% rice  NT$49/kgb 39.3%  
19021110  Uncooked rice pasta, not stuffed or otherwise prepared  NT$49/kgb 103.6%  
19021910  Uncooked rice pasta, not stuffed or otherwise prepared  NT$49/kgb 60.0%  
19022010  Other stuffed rice pasta  NT$49/kgb 113.3%  
19023020  Other rice pasta  NT$49/kgb 100.9%  
19041020  Certain type food preparations containing > =30% rice  NT$49/kgb 41.9%  
19042011  Certain type food preparations containing >=30% rice  NT$49/kgb 65.8%  
19042021  Certain type food preparations containing >=30% rice  NT$49/kgb 65.8%  
19049010  Certain type food preparations containing >=30% rice  NT$49/kgb 29.4%  
20049010  Certain type of prepared and preserved red beans  NT$22/kgb 19.7%  
20055110  Certain type of prepared and preserved red beans  NT$22/kgb 16.0%  
20055910  Certain type of prepared and preserved red beans  NT$22/kgb 35.2%  
20060011  Certain type of prepared and preserved red beans  NT$22/kgb 48.3%  
20060025  Certain type of prepared and preserved red beans  NT$22/kgb 19.7%  
20081111  Ground -nuts, roasted, in shell  NT$42/kgb 121.7%  
20081112  Ground -nuts, roasted, shelled  NT$64/kgb 29.6%  
20081191  Ground -nuts, in shell, otherwise prepared or preserved  NT$42/kgb 45.6%  
20081192  Ground -nuts, shelled, otherwise prepared or preserved  NT$64/kgb 59.0%  
20081942  Certain type of prepared mixtures of nuts and seeds  NT$64/kgb 34.9%  
21033000  Mustard flour and  meal and prepared mustard  NT$9/kg or 15%  15.0%  
21069098  Other food preparation containing >= 30% rice  NT$49/kgb 26.0%  
81129222  Other mixed metal scrap  NT$750/TNE or 5%  5.0%  
a Alternate rates: whichever is the greater.  
b Out-of-quota rate.  
Source:  Information provided by authorities.  
  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 156 - 
 
  Table A3. 3 Tariff -rate quotas and utilization, 2012 -2018  
Tariff rate quotas, 2018  
Products  Out-of-quota rate 2018  In-quota rate 2018  Tariff quota 
quantity (MT) 2018  
Deer velvet (1 line)  500%  22.50%  5  
Fresh pears (1 line)  NT$49/kg  18% 9,800  
Bananas (4 lines)  100%  12.50%  13,338  
Red bean (8 lines)  NT$22/kg  22.50%  2,500  
Liquid milk (19 lines)  NT$15.6/kg  15% 21,298  
Peanuts (13 lines)  
5,235  Ground -nuts and flours 
and meals thereof  NT$42/kg or NT$64/kg  25% 
Ground -nuts oil  338%  25% 
Garlic bulbs (3 lines)  
3,520  For planting  NT$27/kg  0% 
Other  NT$27/kg  22.50%  
Dried shiitake (1 line)  NT$369/kg  25% or NT$110/kg 
whichever is the higher  288  
Dried day lily (1 line)  NT$58/kg  22.50%  101  
Coconuts (2 line)  120%  15% or NT$0.9/kg 
whichever is the higher  10,000  
Betel nuts (1 line)  NT$810/kg  17.50%  8,824  
Pineapples (2 line)  173%  15% 23,870  
Mangoes (2 line)  60% 25% 12,755  
Shaddocks (1 line)  184%  25% 4,300  
Dried longans (1 line)  NT$88/kg  15% 330  
Rice (24 lines)  
144,720  Rice NT$45/kg  0% 
Rice products  NT$49/kg  20% or 25%  
Groats and meal of rice  NT$45/kg or NT$49/kg  0-25% 
Tariff quotas utilization ratio, 2012 -17 
(%) 
Products  2012  2013  2014  2015  2016  2017  
Deer velvet  99.6 99.4 99.4 99.4 99.4 91.9 
Fresh pears  76.3 57.9 99.6 63.1 99.9 77.2 
Bananas  0 0.0 0.0 0.0 0.0 0.0 
Red bean  99.9 100.0  74.7 98.4 99.9 99.9 
Liquid milk  55.7 70.7 87.2 86.0 84.5 96.9 
Peanuts  99.7 98.5 99.9 99.9 100.0  99.9 
Garlic bulbs  99.3 22.6 75.6 5.4 99.3 48.0 
Dried shiitake  51.3 51.4 78.4 24.4 71.6 94.8 
Dried day lily  77.1 0.0 0.0 0.0 0.0 0.0 
Coconuts  28.1 66.6 63.5 64.3 33.4 61.7 
Betel nuts  0.3 0.2 0.3 0.1 0.2 8.0 
Pineapples  7.5 11.9 11.7 13.0 17.4 14.2 
Mangoes  0 0.0 0.0 0.0 0.0 0.0 
Shaddocks  0 0.0 0.0 0.0 0.0 0.0 
Dried longans  99 100.0  100.0  100.0  100.0  100.0  
Rice  99.9 92.7 88.7 99.9 98.2 100.3  
Average  55.86  48.24  54.94  47.13  56.48  55.8 
Source:  Information provided by the authorities.  
  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 157 - 
 
 Table A3. 4 Prohibited exports, July 2017  
  Description  
1 0106.19.40.23 -7 Myocastoridae spp.  
2 0208.90.29.20 -4 Meat of dogs, fresh, chilled or frozen  
3 0301.99.29.48 -9 Serrasalmus spp., Pygocentrus spp., Pristobrycon spp., Pygopristis spp.  
4 0301.99.29.49 -8 Electric eel (Electrophoridae spp.)  
5 0301.99.29.51 -3 Whale shark (Rhincodon typus), live  
6 0302.81.00.10 -5 Whale shark (Rhincodon typus), fresh or chilled  
7 0303.81.00.10 -4 Whale shark (Rhincodon typus), frozen  
8 0304.47.00.10 -6 Whale shark (Rhincodon  typus) fillets, fresh or chilled  
9 0304.59.90.20 -0 Whale shark (Rhincodon typus) meat (whether or not minced), fresh or chilled  
10 0304.88.00.11 -5 Whale shark (Rhincodon typus), fillets or steaks, frozen  
11 0602.90.10.10 -9 Mushroom spawn, containing narcotics (the composition of which is as set forth in 
article 2.3 of the "Statute for Narcotics Hazard Control")  
12 1211.90.60.00 -1 Slender dutchmanspipe (Aristolochia debilis radix)  
13 1211.90.91.41 -5 Southern Fangchi Root (A ristolochiae Fangchi Radix)  
14 1211.90.91.42 -4 Stem of manchurian dutchmanspipe (Aristolochiae manshuriensis caulis)  
15 1211.90.91.43 -3 Dutchmanspipe fruit  (Aristolochiae Fructus)  
16 1211.90.91.44 -2 Dutchmanspipe vine (Aristolochiae Caulis)  
17 1404.90.99.50 -2 Mushroom products, containing narcotics (the composition of which is as set forth 
in article 2.3 of the "Statute for Narcotics Hazard Control")  
18 1604.19.90.71 -2 Whale shark (Rhincodon typus), whole or in pieces, but not minced, prepared or 
preserved, frozen  
19 1604.19.90.72 -1 Whale shark (Rhincodon typus), whole or in pieces, but not minced, prepared or 
preserved, canned  
20 1604.19.90.79 -4 Other whale shark (Rhincodon typus), whole or in pieces, but not minced, prepared 
or preserved  
21 2505.90.00.10 -5 Other natural sands, chloride containing more than 0.012%  
22 2505.90.00.90 -8 Other natural sands of all kinds, whether or not coloured, other than metal -bearing 
sands of Chapter 26  
23 2517.10.90.00 -1 Other pebbles, gravel, broken or crushed stone, of a kind commonly used for 
concrete aggregates, for road metalling or for railway or other ballast, whether or 
not heat -treated  
24 2903.81.00.00 -6 1,2,3,4,5,6 -Hexachlorocyclohexane (HCH (ISO)), including lindane (ISO, INN) 
25 2914.39.00.1 0-4 Isomers and salts of Phenyl -2-propanone, P2P  
26 2914.79.00.20 -3 Isomers and salts of o -Chlorphenyl cyclopentyl ketone, 2 -Chlorophenylcyclopentyl 
ketone, o -Chlorobenzoylcyclopentane  
27 2921.45.00.60 -6 2-Naphthylamine (beta -naphthylamine)  
28 2921.45.00.71 -3 2-Naphthylamine acetate  
29 2921.45.00.72 -2 2-Naphthylamine Hydrochloride  
30 2921.49.00.10 -3 P-Aminobiphenyl  
31 2921.49.00.20 -1 P-Aminobiphenyl Hydrochloride  
32 2925.29.00.10 -3 Hydroxylimine HCL  
33 2926.90.90.30 -3 Isomers and salts of alpha -Acetylphenylacetonitrile  
34 8710.00.00.10 -3 Tanks and other armoured fighting vehicles, motorized, whether or not fitted with 
weapons  
35 8710.00.00.20 -1 Parts of tanks and other armoured fighting vehicles, motorized  
36 8906.10.00.00 -7 Warships  
37 9301.10.00.00 -6 Artillery weapons(for example, gun, howitzers and mortars)  
38 9301.20.00.00 -4 Rocket launchers; flame -throwers; grenade launchers; torpedo tubes and similar 
projectors  
39 9301.90.00.00 -9 Other military weapons  
40 9705.00.00.20 -6 Collect ions and collectors' pieces of weapon  
41 9705.00.00.90 -1 Other collections and collectors pieces of zoological, botanical, mineralogical, 
anatomical, historical, archaeological, palaeontological, ethnographic or numismatic 
interest  
42 9706.00.00.90 -0 Other antiques of an age exceeding one hundred years  
Source:  Information provided by the authorities.  
  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 158 - 
 
  Table A3. 5 Export permits, May 2018  
  Description  
1 7102.10.00.00 -1 Diamond, unsorted  
2 7102.21.00.00 -8 Industrial diamonds, unworked or simply sawn, cleaved or bruted  
3 7102.31.00.00 -6 Non-industrial diamonds, unworked or simply sawn, cleaved or bruted  
4 8486.10.00.20 -1 Grinding, polishing and lapping machines for processing of semiconductor wafers  
5 8486.20.00.11 -0 Chemical vapor deposition apparatus for semiconductor production  
6 8486.20.00.12 -9 Physical deposition apparatus for semiconductor production  
7 8486.20.00.31 -6 Machine -tools for dry -etching patterns on semiconductor materials  
8 8486.20.00.32 -5 Spraying appliances for etching, stripping or cleaning semiconductor wafers  
9 8486.20.00.33 -4 Apparatus for wet etching, developing, stripping or cleaning semiconductor wafers  
10 8486.20.00.40 -5 Epitaxial deposition machines for semicondu ctor wafers  
11 8486.20.00.50 -2 Ion implanters for doping semiconductor materials  
12 8486.20.00.61 -9 Step and repeat aligners for semiconductor wafers  
13 8486.20.00.62 -8 Scanning aligners for semiconductor wafers  
14 8486.20.00.63 -7 Electron beam direct writers to produce patterns on semiconductor wafer  
15 8486.20.00.71 -7 Spin dryers for semiconductor wafer processing  
16 8486.20.00.72 -6 Spinners for coating photographic emulsions on semiconductor wafers  
17 8486.20.00.73 -5 Photo -resist coaters for semiconductor wafers  
18 8486.20.00.80 -6 Apparatus for rapid heating of oxidation, diffusion, annealing of semiconductor wafers  
19 9031.41.10.10 -2 Photomicrographic microscopes fitted with equipment specifically designed for the 
handling and transport of  semiconductor wafers or reticles  
20 9031.80.00.20 -4 Electron beam microscopes fitted with equipment specifically designed for the handling 
and transport of semiconductor wafers or retices  
Source:  Information provided by the authorities.  
  WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 159 - 
 
 Table A3. 6 Goods subject to commodity tax, 2018  
Taxable items  Tax 
amount or 
rate Exemptions  
Beverages   
Pure natural fruit juice, fruit syrup, concentrated fruit syrup, 
concentrated fruit juice, and natural vegetable juice that is in 
compliance with the domestic standards are exempted  Diluted natural 
fruit/vegetable juice  8% 
Other machine -made cool 
and soft drinks  15% 
Cement   
Tax on Portland blast -furnace slag cement was reduced to 
NT$196/MT on 1  January 2000;  
The tax may be adjusted within 50% of the prescribed tax 
amounts according to the actual situation  White or coloured cement  NT$600/MT  
Portland I cement  NT$320/MT  
Portland blast -furnace slag 
cement  NT$280/MT  
Cement substitutes and 
others  NT$440/MT  
Electric appliances   
Dehumidifiers for use in factories are exempted  
Record players, portable sets having a diameter of less than 
32 centimetres are exempted  Refrigerators  13% 
Colour television sets  13% 
Air conditioners  20% 
Central air conditioning units 
composed of compressor, air 
conditioning box, and fan coil  15% 
Dehumidifiers  15% 
Video recorders  13% 
Record players  10% 
Audio recorders  10% 
Stereophonic systems  10% 
Electric ovens  15% 
Flat-glass   Conductive glass and reinforced glass used for mould -making 
are exempted.  
Article 9 -1 of the Commodity Tax Act: Within 5  years from 24 
November 2017, any domestic manufacturers or importers may 
apply for exemption from the commodity tax on the glass used 
exclusively for photovoltaic modules by submitting a statement 
promising not to sell or use such products for any other 
purposes as well as the certificate of usage issued by the 
competent industry authority  Including all kinds of flat -
glass and glass bar s 10% 
Oil/gas   
The tax may be adjusted within 50% of the prescribed tax 
amounts according to the actual situation  Gasoline  NT$6,830/KL  
Diesel oil  NT$3,990/KL  
Kerosene  NT$4,250/KL  
Fuel oil for aircraft  NT$610/KL  
Fuel oils  NT$110/KL  
Dissolving oils NT$720/KL  
Liquefied petroleum gas  NT$690/MT  
Rubber tyres   Inner tubes, solid rubber tyres, tyres used on 
manpowered/animal -powered vehicles and farming vehicles are 
exempted from the commodity tax  Tyres for buses and trucks  10% 
Various other rubber tyres  15% 
Vehicles   Vehicles imported for use in technical research and 
development, special -purpose vehicles equipped with devices 
for exclusive use in public security control and/or sanitation 
activities, mail transportation vehicles, tractors equipped with 
farming equipment, cargo trucks/cars for exclusive use on 
farmland, and engineering vehicles not running on public roads 
are exempted.  
From 1 January 2007, the tax rate on sedans above 2,001cc 
was reduced to 30%; electric -powered automobiles and 
motorcycles are taxed at half of the statutory tax rates.  
Low chassis buses, gas buses, hybrid oil and electric buses, 
electric buses, and rehabilitation buses for the disabled which 
were purchased and for which registration is completed within 
5 years  from 5 June 2014 have been exempted from 
commodity tax.  
Wheelchair -accessible vehicles which conform to the Vehicle 
Safety Test Standard and were purchased within 5 years from 
6 February  2015 are exempted from the commodity tax. Sedans below 2,000 cc  25% 
Sedans above 2,001 cc  30% 
Trucks, buses, other vehicles  15% 
Motorcycles  17% WT/TPR/S/ 377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 160 - 
 
  Taxable items  Tax 
amount or 
rate Exemptions  
However, owners of the afo rementioned tax -exempt vehicles 
must pay the original commodity tax if the vehicle was changed 
and the equipment for carrying the wheelchair torn down within 
5 years from the date of registration.  
Article 12 -3 of the Commodity Tax Act: Between 
28 January  2017 and 31  December  2021, a person who 
purchases a completely electric -operated automobile or 
motorcycle and completed registration is exempted from the 
Commodity Tax. However, the exempted tax amount shall be 
limited to NT$1.4  million taxable value; the e xcessive portion is 
not exempted.  
Article 12 -5 of the Commodity Tax Act: Within 5 years from 
8 January 2016 a person who scraps or exports his/her 
passenger sedan, truck, or dual -purpose vehicle which had left 
the factory for at least 6 years and holds a l icence for the 
above vehicle for more than one year, within 6 months before 
or after the scrapping or export date, for the person purchasing 
a new vehicle of the above type and completing its registration, 
the commodity tax of such a new vehicle shall be r educed by 
NT$50,000. A person who scraps or exports his/her motorcycle 
below a 150 cc cylinder volume which had left the factory for at 
least 4 years and holds a licence for such a motorcycle for 
more than one year, within 6 months before or after the 
scrapping or export date, for the person purchasing a new 
motorcycle and completing its registration, the commodity tax 
of such a new motorcycle shall be reduced by NT$4,000.  
Article 12 -6 of the Commodity Tax Act: Between 
24 November  2017 and 31  December  2019,  a person who 
scraps his/her used truck which was produced by the factory 
before 30 June 1999 and purchases a new truck and completes 
its registration, the commodity tax for the new truck shall be 
reduced by NT$50,000.  
Source:  Information provided by the authorities; and Commodity Tax Act. Viewed at: 
http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0340076 .  
   
  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 161 - Table A3. 7 Main production assistance measures, 2014 -17 
Measure  Total duration of the 
programme  Beneficiaries  Cost budgetary/foregone 
tax revenue)  
(A) SMALL AND MEDIUM -SIZED ENTERPRISES     
(i) Tax incentives     
Hiring Additional Employees  
 - Up to 130% of salaries paid to newly hired employees can be 
recognized as additional tax deductible salary expenses;  
 - Up to 150% – for employees who are 24 years or younger.  2014-24 
2016-24 SMEs that hire additional full -time employees and raise 
overall salary expenses  2014: NT$13.91million  
2015: NT$33.35million  
2016: NT$14.85million  
2017: ..  
Salary Raises  
 - In case of salary increase to domestic junior employees, a 
SME can deduct up to 130% of the incremental annual gross 
salary payments, excluding statutory basic wage adjustment.  2016-24 SMEs  2016: NT$1.77 million  
2017: ..  
(ii) Non -tax incentives     
Loans for SMEs: specific and urgent financing for 
recovery plans from damage caused by disasters  
 - Loan provided by banks as from 2016, the ceiling interest 
rate is 1% plus a flat rate of 2 -year postal fixed savings rate.  
 No time limit  All enterprises th at meet "Standards for Identifying a 
Small and Medium -Sized Enterprise":  
- enterprises engaged in manufacturing, construction, 
mining or excavating, paid -in capital of less than 
NT$80 million;  
- enterprises engaged in economic activities (e.g. 
agriculture,  logging, fishing, the raising of livestock, 
utilities, commerce, transport, warehousing, 
communications, finance, insurance, real estate, 
commercial, social or individual services) with an 
annual operating revenue of less than NT$100  million  2012-16: NT$1 2.4 million  
2017: NT$43.41  million  
 
Medium and long term loans for product marketing and 
loans for overseas investment and construction projects  
 - Approval of loan applications performed by commercial 
banks; capital provided entirely by SME Development F und. No time limit  All enterprises which meet the "Standards for 
Identifying a Small and Medium -Sized Enterprise"  2014: NT$540 million  
2015: NT$514 million  
2016: NT$630 million  
2017: NT$514 million  
Preferential loans to enterprises affected by 
liberalizat ion for rejuvenant projects:  
 - 10 year loans to cover up to 90% of project cost, with a cap 
of NT$100  million per applicant.  No time limit  
 All enterprises that meet the definition of rejuvenant 
enterprises of the "Programme to Support Industries 
to Adjust to Trade Liberalization"  2014: NT$3,331 million  
2015: NT$1,500 million  
2016: NT$4,400 million  
2017: NT$5,637 million  
Loans for SMEs and private enterprises  
 - 25% of loans provided by the Development Fund, and 75% 
by domestic banks.  Until the expir ation of 
the Industrial 
Innovation Act  All enterprises (not limited to a specific industry or 
enterprise)  2014-16: NT$29.12 million  
  
  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 162 - Measure  Total duration of the 
programme  Beneficiaries  Cost budgetary/foregone 
tax revenue)  
B) RESEARCH & DEVELOPMENT AND RELATED FIELDS     
(i) Tax incentives     
Tax credit for R&D  
 - 15% of the amount invested in R&D may be credited from 
the profit -seeking enterprise income tax within a limit of 30% 
in the same year.  
- Since 2016, a company can claim a tax credit for three years 
using a 10% tax credit rate within a limit of 30% inco me tax; 
or claim a tax credit within the current year using a 15% tax 
credit rate within a limit of 30% income tax.  2010-19 
 - All profit -seeking enterprises;  
- Companies engaging in qualified R&D activities 
(limited partnerships could apply Tax credit for  R&D 
since 22 November 2017)  2014:  NT$14,982  million  
2015:  NT$17,755  million  
2016: NT$ 20,590 million  
2017: ..  
Tax Deferral on Income in the Form of Stock from 
Technology Investment and Stock -based Employee 
Compensation  
 - Deferral of income tax assessment until the year of transfer 
or the 5th year after the year of shares subscription  (Before 
amendment)  
- Deferral of income tax assessment until the year of transfer 
after the year of shares subscription (After amendment).   
2016- 
23/11/2017  
 
24/11/2017 -2019 - Form of Stock from Technology Investment: Chinese 
Taipei individuals or companies (limited partnerships 
could apply Tax Deferral on Income in the Form of 
Stock from Technology Investment since 22  November 
2017);  
- Stock -based Employee Compensation: all individuals  2016: ..  
2017: ..  
 
200 Percent Deduction of R&D Expenses  2016-19 Chinese Taipei individuals or companies (limited 
partnerships could apply since 22  November 2017)  2016: .. 
2017: ..  
Tax Benefits for the Encouragement of Investment  
(R&D -related)  n.a. Upgrading industries  n.a. 
Tax Credits for Upgraded Equipment  
 - 5%-35% tax credits for R&D equipment.  1991-2009 
Extended until 
31 December 2017  Profit -seeking enterprises engaging in qualified 
activities  2014:  NT$10,071 million  
2015:  NT$1,249 million  
2016:  NT$3,562 million  
2017:  .. 
(ii) Non -tax incentives     
Grants – funds for development of new outstanding 
projects  
 - The assistance funds granted are a total of no more than 
50% of the amount of the following expenses incurred 
exclusively for the development of new leading products:  
 (i) Costs incurred for full -time research personnel;  
 (ii) Costs of consumable instru ments and raw materials;  
 (iii) Costs for use and maintenance of R&D equipment;  
 (iv) Costs for technology transfer;  
 (v) Travel fees related to the project.  No time limit  Any company incorporated under the Company Law 
with sound financial standing and wit hout ever having 
a record of refusal or bounced cheque through a 
domestic bank  2014-16:NT$4,495 million  
  
  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 163 - Measure  Total duration of the 
programme  Beneficiaries  Cost budgetary/foregone 
tax revenue)  
Grants – funds for development of industrial technology, 
Technology Development Programme for Enterprises  
 - The assistance funds to be granted must not exceed 50% of 
the total amount of the following expenses:  
 (i) Costs incurred for full -time and/or part -time research 
personnel;  
 (ii) Costs of consumable instruments and raw materials;  
 (iii) Costs for use an d maintenance of R&D equipment;  
 (iv) Costs for technology transfer;  
 (v) Domestic travel expenses.  
 
 - Programmes include:  
1. Advanced Technology Research Plan (A+ Industrial 
Innovation R&D programme)  
- Subsidies are available for 40% to 50% of total de velopment 
funding for new technologies that are not yet mature in 
Chinese Taipei and that will, in the future, generate strategic 
products, services, or industries.  
 
2. Integrated R&D Plan (A+ Industrial Innovation R&D 
programme)  
- Subsidies are available for 40% to 50% of total project cost 
for the integration of key and cross -sector technologies.  
 
3. Encouragement of Domestic Enterprises to Set Up R&D 
Centres (A+ Industrial Innovation R&D programme)  
- Subsidies are available for up to NT$2 0million or 50% of total 
spending by domestic enterprises on the establishment of R&D 
centres in Chinese Taipei .  
 
4. Global Innovation and R&D Partnership Plan  
- Subsidies are available for up to 50% of total spending by 
overseas enterprises to engage in innovation and R &D in 
Chinese Taipei.   No time limit  Any company incorporated under the Company Law 
with sound financial standing and without ever having 
a record of refusal or bounced cheque through a 
domestic bank.  
A company can apply for this fund to offset the costs 
of the following activities:  
1. Research and development of advanced 
technologies that may be aptly characterized as vital 
and innovative in the long term;  
2. Technologies research and development that 
enhance vertical or horizontal integration and drive t he 
forming of industry chain ecosystems or clusters;  
3. Establishment of research and development centres 
in Chinese Taipei that create innovative technologies 
and services;  
4. Development of innovative or integrative 
manufacturing technology by SMEs  
 2014: NT$2,063 million  
2015: NT$2,230 million  
2016: NT$2,279 million  
2017: NT$2,008 million   
  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 164 - Measure  Total duration of the 
programme  Beneficiaries  Cost budgetary/foregone 
tax revenue)  
C) DESIGNATED ZONES     
Tax incentives     
Duty and tax exemptions for all in -zone enterprises  
 - Exemptions from:  
 (i) Import duty, commodity and business taxes on imported 
machinery and equipment;  
 (ii) Import duty, commodity and business taxes on imported 
raw and consumption materials, fuels, semi -finished products, 
samples, and finished products for transhipment by  traders 
and warehousing operators;  
 (iii) Deed tax when acquiring a new standard plant building in 
the Export Processing.  Zone No time limit  All in-zone industries  2014-16: NT$39,985million  
Duty and tax exemptions for high -technology industries  
 - Exemptions from customs duty, commodity tax, and 
business tax (VAT) on imported machinery and equipment, raw 
material, and commodities, fuel, and semi -finished products.  No time limit  The "Science -Based Industrial Park" (the Park) 
enterprises  
 2014-16: NT$115,153 million  
 
D) SECTOR -SPECIFIC SUPPORT     
AGRICULTURE & FISHERIES     
Tax incentives     
- VAT exemptions for primary agricultural products, fertilizer, 
pesticides, veterinary drugs, agricultural machinery, 
transportation equipment for farmland, and fuel oil and 
electricity used in such machinery and equipment, and sales of 
rice and wheat flour and the service of husking rice.  No time limit  
 Exemptions for primary agricultural products, sales of 
rice and wheat flour and the service of husking rice  
 2014:  NT$23 ,882 million  
2015: NT$25 ,759 million  
2016: NT$24,755 million  
2017: NT$24,799 million  
- Commodity tax exemptions for inner tubes, solid rubber 
tyres, rubber tyres for use on man -powered/animal -powered 
vehicles and farming vehicles, tractors equipped with farming 
equipment, and cargo trucks/cars for exclusive use in farm 
land. No time limit  
 (1) Inner tubes, solid rubber tyres, rubber tyres for 
use on farming vehicles;  
(2) Tractors equipped with farming equipment, and 
cargo trucks/cars for exclusive use in farm land   
Non-tax incentives     
Subsidy - Support for rice programme  
 - Planned, supplementary and additional purchases.  No time limit  Farmers producing rice in paddy fields  2014: NT$583  million  
2015: NT$696 million  
2016: NT$557 million  
2017: NT$  651 million  
Subsidy - Support for diversified crops  
 - Provided in form of diversion payment (guaranteed price 
purchase, or registering as set -aside or diversion under "Rice 
Production and Rice Field Diversion Projects").  No time limit  Farmers producing selected crops  
 2014: NT$3,524 million  
2015: NT$3,718 million  
2016: NT$3,490 million  
2017: NT$3,567 million  
Subsidy - Support for tobacco leaves  
 - Purchase under restricted price tendering.  No time limit  
 Tobacco farmers  2013: NT$346.8 million  
2014: NT$339.8 million  
2015: NT$330.4 Million  
2016: NT$283.1 million  
2017:NT$276.8 million   
  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 165 - Measure  Total duration of the 
programme  Beneficiaries  Cost budgetary/foregone 
tax revenue)  
Subsidy - Support for sugar  
 - Guaranteed purchase;  
 - Subsidy for loans for the purchase of inputs, insurance 
premium, fees for pest and disease control, inspection fees for 
sugar brix, etc.  No time limit  
 Sugarcane farmers  2014: NT$59.36 million  
2015: NT$84.19 million  
2016: NT$54.41 million  
2017: NT$40.79  million  
Interest subsidy  
 - Preferential interest rates loans for all farmers and fishermen 
in various industries or type of agriculture.  No time limit  
 All farmers and fishermen  2014: NT$1,730 million  
2015: NT$1,408 million  
2016: NT$1,286 million  
Grant - Fishing Vessels Buy -Back Programme  
 - Buy-back amount for fishing vessels, calculated and 
accumulated in 2015 -16: 
 i) NT$50,000 for each gross ton of the 1st to 5th ton;  
 ii)NT$40,000 for each gross ton of the 6th to 10th ton;  
 iii)NT$30,000 for e ach gross ton of the 11th to 20th ton; etc.  No time limit  
 Owners of all varieties of fishing vessels with valid 
fishing licences, including recreational fishing vessels  2014: NT$47.804 million  
2015: NT$40.720 million  
2016: NT$37.547 million  
2017: NT$0 million  
Grant – Reward for Closing Fishery Season  
 No time limit  
 Any fishing vessels with valid fishing licences that 
comply with the related regulations of closing fishery 
except recreational fishing charter boats.  2014: NT$179.944 million  
2015: NT$183.529 million  
2016: NT$180.879 million  
2017: NT$173.815 million  
Grant – Fishing Vessels Marine Insurance Reward  
 - Grants to cover a portion of the insurance costs for fishing 
vessels if damaged at sea.  No time limit  
 Owners of fishing vessels  2014: NT$57.353 million  
2015: NT$51.219 million  
2016: NT$53.840 million  
2017: NT$50.045 million  
MANUFACTURING     
Tax incentives     
Tax Benefits for the Encouragement of Investment  
Encouragement of Investment in Manufacturing and the 
Technical Services Industry  
 - Five year income tax exemptions (from the date of selling its 
products/render services) for a newly incorporated company;  
 - Five year income tax exemptions (from the date of newly 
added equipment starts to operate/render services) for an 
existing company.  2001-03 
2008-09 
Extended until 
31 December 2027  Qualified companies in manufacturing industry and its 
related technical services industry  
 2014: NT$ 4,928  million  
2015: NT$ 5,185 million  
2016: NT$ 5,188 million  
2017: ..  
BIOTECH AND PHARMACEUTICAL INDUSTRY     
Tax incentives     
Biotechnology and New Pharmaceutical Industries  
 - 35% of R&D and employee training expenditures can be 
claimed as a deductible expense;  
 - Companies investing in or founding or expanding 
biotechnology or new pharma can claim 20% of the invested 
amount as a deductible expense;  
 - Tax exemptions on income received in form of stock/ 
subscription of shares through stock option certificates.  2007-21 
 Qualified companies in b iotechnology and new 
pharmaceutical industries   
- a profit -seeking enterprise that (i) subscribes for the 
stock issued by a Biotech and New Pharmaceuticals 
Company at the time of the latter's establishment or 
subsequent expansion; and (ii) has been a registered 
shareholder of the Biotech and New Pharmaceuticals 
Company for a period of three (3) years or more.  
- top executives and technology investors  2014: NT$20 million  
2015: NT$45 million  
2016: NT$114 million  
2017:  ..   
  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 166 - Measure  Total duration of the 
programme  Beneficiaries  Cost budgetary/foregone 
tax revenue)  
MOTION PICTURE PRODUCTION     
Tax incentives     
Encouragement of Investment in Production of Domestic 
Motion Pictures  
 - Up to 20% of the purchase price of the company stock may 
be claimed as a deductible expense.  2004-14 
2015-25 
 Profit -seeking enterprises investing a certain amount 
in the establishment or expansion of a film production 
enterprise and holding registered stock, either 
originally owned or obtained as a result of fundraising, 
in that enterprise for a period of at least three years  2015: NT$13 million  
2016: NT$6 million  
2017: ..  
OIL & GAS     
Non-tax incentives     
Grants – funds for encouraging exploration and 
development of oil and natural gas reserves  
 - The grant is used only in support of the following activities:  
 
 i) The implementation of geological, geophysical, and/or 
geochemical surveys and research necessary for the 
exploration of oil and natural gas;  
 ii) Drilling for the exploration and/or development of oil and/or 
natural gas reserves;  
 iii) Any other necess ary pertinent activities that have been 
reviewed and approved by the authorities.  
 
The total subsidy allocated for an exploration proposal  must 
not exceed 50% of the budget in the applicant's proposal.  
The total subsidy allocated for a development proposal  must 
not exceed 12% of the budget in the applicant's proposal.  
Should the proposal be successful, the whole grant plus 
additional feedback, computed by 10% compound interest, 
must be returned in 5 -15 years.  Started in 2002, not 
subject to deadline  Compani es limited by shares incorporated under the 
Company Law that engage in the exploration and 
development of oil and natural gas reserves are 
eligible for the grant  2013: NT$350 million  
2014: NT$430 million  
2015: NT$400 million  
2016: NT$68 million  
2017: NT$15 6 million  
 
Subsidies for the establishment and operation costs of 
petroleum facilities, and products consumption costs in 
the remote areas, aboriginal areas and isolated island 
areas.  
 - Subsidy for the establishment of petroleum facilities in such 
areas;  
 - Subsidy for maintenance costs of petroleum facilities in such 
areas;  
 - Subsidy to offset the cost of shipping petroleum or LPG to 
such areas;  
 - Subsidy for extra personnel costs in the operation of 
petroleum facilities in such areas;  
 - Subsidy to di minish the price difference of household LPG 
between remote areas, aboriginal areas and urban or/and 
suburban areas.  Started in 2002:  
2010 – for aboriginal 
areas; 2014 – for 
remote areas.  
No time limit  Owners and/or operators of petroleum facilities in 
these areas  2014: NT$267 million  
2015: NT$280 million  
2016: NT$252 million  
2017: NT$274 million  
  
  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 167 - Measure  Total duration of the 
programme  Beneficiaries  Cost budgetary/foregone 
tax revenue)  
E) OTHER INCENTIVES     
1. Encouragement of Newly Emerging, Important, and 
Strategic Enterprises  
 - Up to 20% tax credit for encouragement of newly emerging, 
important and strategic industries.  2000-09 
Extended until 
31 December 2018  
 Profit -seeking enterprises or individuals  who invest in 
newly emerging, important, and strategic enterprises  2014: NT$1,882million  
2015: NT$1,752million  
2016: NT$840million  
2017: ..  
2. Encouragement to Import Machinery and Equipment Not 
Produced by Chinese Taipei  
 - Import and business tax exemptions for encouragement of 
import machinery and equipment.  2002-no time -limit  Companies in scientific industries  .. 
Tax Benefits for Promoting the Reasonable Operation of 
an Enterprise     
1. Encouragement of Merger or Consolidation  
 - Exemption from stamp, deed, securities transaction, and 
business taxes.  
 2002-no time limit  
 A company, which acquires the assets and shares of 
another company and pays for the acquisition with its 
own voting shares, and provided that the total of such 
shares exceeds 65% of the value of the acquired 
shares  ..  
2. Deduction of Land Value Increment Tax Upon the Relocation 
of Factories.  1991-no time limit   .. 
3. Tax Exemption on the Value of Assets Increased Upon 
Revaluation.  
In the case of a 25% rise in prices, the fixed assets, depletion 
assets, and intangible assets may be revalued according to 
laws and regulations. The appreciation incurred due to 
revaluation or adjustment of assets must be recorded as 
unrealized revaluation surplus and shall be exempted from 
profit -seeking enterprise income tax. As these assets are 
transferred, los t, or scrapped such revaluation surplus shall be 
included in taxable income of the current year and subject to 
profit -seeking enterprise income tax.  No time limit  
  ..  
  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 168 - Measure  Total duration of the 
programme  Beneficiaries  Cost budgetary/foregone 
tax revenue)  
Promotion of private participation in Infrastructure 
Projects  
 
- Construction companies awarded contracts for public 
infrastructure projects are required to retain a workforce 
comprising 2% indigenous Chinese Taipei people.  
According to article 2 of the Act for Promotion of Private 
Participation in Infrastructure Pro jects (PPIP Act), if matters 
are not specified in its law, other relevant laws shall apply.  
If the PPP projects are in accordance with the PPIP Act and are 
conformed to major infrastructure projects, the projects shall 
apply the relevant tax benefits in th e PPIP laws.  
1. Exemption from business income tax (a maximum period 
of five years).  
The provisions of Regulations Governing Application for 
Exemption from Profit -seeking Enterprise Income Tax by 
Private Institutions Participating in Public Infrastructure 
Projects shall apply.  
 
2. Investment tax credit for capital expenditures.  
The provisions of Regulations Governing Application of 
Investment Tax Credits to Private Institutions Participating in 
Public Infrastructure Projects shall apply.  
 
3. Preferential customs du ties on imported machinery and 
equipment.  
The provisions of Regulations Governing Exemption and 
Installment Payments of Import Duties to Private Institutions 
Participating in Public Infrastructure Projects shall apply.  
 
4. Reduction or exemption of the house tax, the land value 
tax, and the deeds tax.  
The provisions of the regulations governing application of tax 
exemption or reduction of land value tax, housing tax, and 
deed tax to private institutions participating in public 
infrastructure projects promulgat ed by the 
municipal/county/city government shall apply.  
 
5. Investment tax credits of subscription of shares issued 
by the private institution (up to twenty percent of the 
subscription price).  .. Projects are in accordance with PPIP laws and are 
conformed to major infrastructure projects    
  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 169 - Measure  Total duration of the 
programme  Beneficiaries  Cost budgetary/foregone 
tax revenue)  
Promotion of private participation in Infrastructure 
Projects  
 
- Construction companies awarded contracts for public 
infrastructure projects are required to retain a workforce 
comprising 2% indigenous Chinese Taipei people  
 
- Five-year tax holidays; tax credit of up to 20% on certain 
investment expenditures of private institutions participating in 
a major infrastructure project; customs duty incentives or 
payment in instalments; reduction in land value tax, house tax, 
and d eed tax; and investment tax credit for corporate 
shareholders.  2000-no time limit  
 1. For five -year tax holidays and tax credit on certain 
investment expenditures, the beneficiary is a private 
entity participating in a major infrastructure project;  
2. For  investment tax credit for corporate 
shareholders, the beneficiary is a profit -seeking 
enterprise shareholder of private institution 
participating in a major infrastructure project  For five -year tax holidays, 
tax credit on certain 
investment expenditures, and 
investment tax credit for 
corporate shareholders:  
2014:  NT$723 million  
2015:  NT$566 million  
2016:  NT$552 million  
2017:  ..  
n.a. Not applicable.  
.. Not available.  
Source:  WTO documents G/SCM/N/284/TPKM, 30 June 2015 and G/SCM/N/315/TPKM, 24 July 2017; Online information. Viewed at: 
http://investtaiwan.nat.gov.tw/showPage?lang=eng&search=reward ; Online information. Viewed at: 
https://www.moeasmea.gov.tw/ct.asp?xItem=86&CtNode=324&mp=2 ; Online information. Viewed at: http://www.mof.gov.tw/File/Attach/75532/File_10791.pdf ; and 
Online information. Viewed at: https://www.moeasmea.gov.tw/ct.asp?xItem=235&ctNode=299&mp=2 ; Economist Int elligence Unit (2017), Industry Report: 
Automotive , 2nd Quarter, London. Viewed at: www.eiu.com/automotive ; and information provided by the authorities.  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
- 170 - 
 
  Table A3. 8 CNS and their equivalence with international standards, end -2017  
Area  
Total standards  
Existence of  
international  
standardsa (A) 
Number of standards 
equivalent to  
international  
standards (B)  Standards 
equivalent to 
international 
standardsb 
(B)＝(C)＋(D) 
Rate of equivalence (%) 
(E)=(B)/(A)×100  Mandatory 
technical 
regulations (C)  
Voluntary 
standards (D)  
A Civil engineering and architecture  620  88  74  8  66  84.1  
B Mechanical engineering  2,116  412  410  11  399  99.5  
C1-C4 Electrical engineering  1,200  347  343  68  275  98.8  
C5-C7 Electronics engineering  786  262  262  31  231  100.0  
D Automotive and aerospace engineering  512  42  42  4  38  100.0  
E Railway engineering  91  16  16  0  16  100.0  
F Shipbuilding engineering  354  22  22  1  21  100.0  
G Ferrous materials and metallurgy  386  123  123  35  88  100.0  
H Non-ferrous materials and metallurgy  250  80  80  6  74  100.0  
J Nuclear engineering  0  0  0  0  0  N/A 
K Chemical industry  2,551  496  496  27  469  100.0  
L Textile industry  378  97  94  2  92  96.9  
M Mining  82  8  8  0  8  100.0  
N1-N4 Agriculture  382  85  85  5  80  100.0  
N5-N7 Food 520  185  185  16  169  100.0  
O Wood industry  84  27  27  13  14  100.0  
P Pulp and paper industry  193  62  62  3  59  100.0  
Q Environmental management  52  50  50  0  50  100.0  
R Ceramic industry  376  107  97  14  83  90.7  
S1-S2 Domestic wares  278  79  79  1  78  100.0  
S3 Accessibility design  28  24  24  0  24  100.0  
T Medical equipment and appliances  327  171  171  3  168  100.0  
X Information and communication  871  786  785  8  777  99.9  
Z1-Z3 Industrial safety  241  27  22  7  15  81.5  
Z4 Quality control  81  45  45  2  43  100.0  
Z5-Z6 Physical distribution and packaging  171  42  42  1  41  100.0  
Z7-Z9 General and miscellaneous  461  260  259  16  243  99.6  
 Total  13,391  3,943  3,903  282  3,621  98.99  
a Number that have corresponding international standards.  
b A local standard that is identical to or modifies corresponding international standards is considered 
as equivalent to international standards.  
Source:  Information provided by the authorities.  
  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
- 171 - 
 
  Table A3. 9 Legal instruments on competition, 2018  
Instruments  Dates of promulgation or 
most recent amendment  
Fair Trade Act  14 June 2017  
Enforcement Rules of Fair Trade Act  2 July 2015  
Organic Act of the Fair Trade Commission  14 November 2011  
Code of Conduct for Antitrust Compliance of Enterprises  20 October 2011  
Principles of the Fair Trade Commission Regarding the Definition of Relevant 
Markets  6 March 2015  
The Threshold of Total Sales at Which an Enterprise is Exempted from Being 
Deemed a s a Monopolistic Enterprise  4 March 2015  
Regulations for Calculation of Administrative Fines for Serious Violations of 
Article 9 and Article 15 of the Fair Trade Act  6 March 2015  
Standards on the Application of Article 46 of the Fair Trade Act  4 August 2016 
Regulations Governing Management and Utilization of the Antitrust Fund  24 November 2015  
Regulations on Payment of Rewards for Reporting of Illegal Concerted Actions  19 April 2016  
Fair Trade Commission Disposal Directions (Policy Statements) on Trade 
Associations and Other Business Groups  17 June 2016  
Fair Trade Commission Disposal Directions (Guidelines) on Technology 
Licensing Arrangements  24 August 2016  
Fair Trade Commission Disposal Directions (Guidelines) on the Reviewing of 
Cases Involvin g Enterprises Issuing Warning Letters for Infringement on 
Copyright, Trademark, and Patent Rights  24 December  2015 
Concerted actions   
Public Notice on Filings for Approval or Extension of Concerted Actions  20 September 2016  
Fair Trade Commission Disposal Directions (Guidelines) on Approval of 
Concerted Pricing among Small or Medium -sized Enterprises  26 December 2016  
Fair Trade Commission Disposal Directions (Guidelines) on Concerted 
Petroleum Purchasing by Individual Petrol Stations  17 May 2016  
Regulations on Immunity and Reduction of Fines in Illegal Concerted Action 
Cases  6 March 2015  
Sector -specific policies   
Fair Trade Commission Disposal Directions (Guidelines) on Elevator Enterprise 
Sales and Maintenance  22 April 2015  
Fair Trade Commis sion Disposal Directions (Policy Statements) on the Sales of 
Elementary and Junior High School Textbooks  30 December 2015  
Fair Trade Commission Disposal Directions (Policy Statements) on Cable 
Television Related Enterprises  27 May 2016  
Fair Trade Commission Disposal Directions (Policy Statements) on the 
Financial Industry  25 September 2015  
Mergers   
Merger Types to Which Paragraph 1 of Article 11 of the Fair Trade Act Does 
Not Apply  18 July 2016  
Thresholds and Calculation of Sales Amount which En terprises of a Merger 
shall File with the Fair Trade Commission  2 December 2016  
Directions for Enterprises Filing for Merger  15 June 2017  
Regulations for the Examination of Financial Holding Company Merger Cases  9 July 2015  
Fair Trade Commission Disposal Directions (Guidelines) on Handling Merger 
Filings  18 July 2016  
Fair Trade Commission Disposal Directions (Guidelines) on Extraterritorial 
Mergers  1 December 2016  
Note:  Legislation on other aspects of fair trade, such as false advertisement and  multi-level marketing 
enterprises, are covered in this table.  
Source:  FTC's online information. Viewed at: https://www.ftc.gov.tw/internet/english/ , and information 
provided by the authorities.  
  WT/TPR/S/377 • Separate Customs Territory of Taiwan, Penghu, Kinme n and Matsu  
 
- 172 - 
 
  Table A4. 1 Domestic support to agriculture and livestock, 2009 -12 
(NT$ million, unless otherwise indicated)  
 2009  2010  2011  2012  
Total domestic support (I + II)  57,471.42  51,819.33  58,054.48  52,790.07  
Equivalent to GDP (%)  0.44 0.37 0.41 0.36 
Equivalent to total tax revenue (%)  3.9 3.3 3.4 3.0 
Equivalent to total public expenditure (%)  2.2 2.0 2.2 2.0 
I. Aggregate Measurement of Support (AMS)a     
(a) Product -specific AMS  4,195.20  4,205.15  8,063.60  9,040.93  
- Rice (paddy)  2,550.14  2,637.90  6,129  6,931.78  
- Feed cornb 198.97  173.06  222.12  261.93  
- Soybean  0 0 0 17.57  
- Sorghumb 5.67 0.45 0 0 
- Peanuts  218.49  232.21  330.79  317.91  
- Sugar  150.86  142.18  110.61  91.98  
- Tobacco leaves  234.71  223.27  217.98  210.16  
- Vegetables  217.05  224.98  444.72  633.84  
- Table sugarcane  15.11  13.31  8.79 10.50  
- Sweet potatoes  108.93  85.37  109.02  95.81  
- Forage crops  185.98  196.44  214.69  236.92  
- Other crops  309.29  275.98  275.88  232.53  
(b) Non -product -specific  AMS 9,211.28  6,185.96  7,079.81  6,775.82  
- Agricultural machinery price subsidy  19.65  21.87  27.01  27.77  
- Fertilizer freight subsidy  492.88  403.85  412.19  0 
- Agricultural fertilizer price difference subsidy  5,206.24  2,097.37  3,085.84  4,003.28  
- Waiver or reduction of fees for electricity used for 
agricultural production  557.73  562.66  277.56  282.00  
- Fuel subsidy for agricultural machinery  0 0 0.22 45.66  
- Interest subsidy  2,739.45  2,894.90  3,076.48  2,225.87  
- Livestock insurance programme  195.33  205.31  218.51  191.24  
II. Measures exempt from the reduction 
commitment – "Green Box"  44,064.94  41,428.22  42,893.07  36,973.32  
General services      
- Research (general, in relation to environmental 
programmes and product -specific)  3,336.32  3,475.64  2,943.07  2,952.07  
- Pest and disease prevention  983.32  879.98  556.53  410.25  
- Training services  831.03  436.77  755.45  1,096.07  
- Extension and advisory services  2,367.04  2,644.55  2,098.30  2,362.02  
- Inspection services  607.85  473.64  292.10  231.13  
- Marketing and promotion  services  1,073.70  1,300.06  988.95  1,629.95  
- Infrastructural services  13,265.68  16,856.92  22,667.49  16,533.80  
Payments for relief from natural disasters      
- Aid for natural disaster: payments for relief of 
incomes damaged by natural disaster  11,238.36  5,153.52  1,381.07  1,342.64  
- Interest subsidy: special loans granted to farmers for 
the relief of farms damaged due to natural disaster  63.67  153.08  1,072.34  654.29  
Structural adjustment assistance provided through 
resource retirement programme s     
 - Land retirement programmes  524.16  504.83  597.79  693.41  
Environmental programmes      
- Interest subsidy for pollution reduction  3.84 4.66 4.42 3.54 
- Programmes for preventing pollution, managing 
agricultural waste and monitoring on the pollution of 
water and soil, for promoting the sustainable use of 
farm land  85.50  105.71  99.06  69.86  
- Interest: loan granted to farmers for the use of water 
and soil conservation  12.58  12.69  11.81  9.23 
- Land conservation subsidy  9,548.13  9,369.50  9,394.47  8,955.24  
Regional assistance programmes      
- Integrated agricultural construction and 
environmental improvement programmes for 
disadvantaged farmers  123.76  56.67  30.22  29.82  
a Calculations are based on Annex 3 of the Agreement on Agriculture, and may not represent actual 
spending.  
b  Price support for sorghum was discontinued in 2011 and for feed corn in 2013.  
Source:  WTO Secretariat calculations, based on WTO documents G/AG/N/TPKM/106, 28 August 2013 and 
G/AG/N/TPKM/154, 26 September 2017.  
__________