WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  WT/TPR/M/165/Add.1 
28 September 2006 
 (06-4631) 
Trade Policy Review Body 
20 and 22 June 2006 Original:   English/Spanish 
                 anglais/espagnol                  inglés/español 
 
TRADE POLICY REVIEW 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, 
KINMEN AND MATSU (CHINESE TAIPEI) 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Ms. Claudia Uribe (Colombia)  
 This document contains the advance written questions, and replies provided by Chinese 
Taipei.1 
_________________________________________________________________________________ Organe d'examen des politiques commerciales 20 et 22 juin 2006  
EXAMEN DES POLITIQUES COMMERCIALES 
TERRITOIRE DOUANIER DISTINCT DE TAIWAN, PENGHU, 
KINMEN ET MATSU (TAIPEI CHINOIS) 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. Mme Claudia Uribe (Colombia) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par le Taipei chinois.1 
__________________________________________________________________________________ 
Órgano de Examen de las Políticas Comerciales 
20 y 22 de junio de 2006  
EXAMEN DE LAS POLÍTICAS COMERCIALES 
TERRITORIO ADUANERO DISTINTO DE TAIWÁN, PENGHU, 
KINMEN Y MATSU (TAIPEI CHINO) 
Acta de la reunión
 
Addendum  
Presidente:  Excma. Sra. Claudia Uribe (Colombia) 
 
 En el presente documento figuran las pr eguntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por el Taipei Chino.1 
 
                                                      
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/165/Add.1 
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WRITTEN QUESTIONS BY MEMBERS  
QUESTIONS BY SINGAPORE  
Goods - Tariffs 
1 We commend Chinese Taipei for its generally liberal tariff regime. However, we would 
appreciate Chinese Taipei’s comments as to how it plans to address or liberalise the following  
weaknesses or distortions in its otherwise liberal tariff regime 
(i) para 26 – on non-agricultural products, tariffs higher than 50%  were applied to some 53 lines; 
apart from passenger cars and chassi s, these also includes fish 
(ii) para 27 – the simple average rate for all AVEs was 130% ; of the top 100 tariffs, 42 were non-
ad valorem  rates . As the Secretariat had noted, non- ad valorem  rates tend to conceal 
relatively high tariff rates. 
(iii) para 29 – states that tariff escalation  is present in a number of sub-sectors, most notably 
textiles, petroleum, coal and non-metallic minera l products. Tariff escalation results in a bias 
against imports of more processed goods and therefore gives an effective rate of  protection to the processed goods that is higher than the nominal rate.    
Services 
2 We note that Chinese Taipei has made exte nsive commitments across the various sectors 
during its accession to the WTO. It is commendable that Chinese Taipei has made commitments in 
about 120 of the 160-odd sectors listed in the CPC list.  We also commend Chinese Taipei for submitting quality initial and revised offers in a ti mely manner.  While recognizing Chinese Taipei’s 
good record, we would appreciate clarification to the following  
(i) Para 58  (Secretariat Report) states that the government holds more than 50% of total bank 
assets. Four banks are fully owned by the gove rnment; all of them are scheduled to be 
privatized (ie. reducing government shareholding to less than 50%). 
It would be useful if Chinese Taipei could provide more information on (i) the four banks that 
are fully owned by the government; and (ii)  the time-frame for their privatisation. 
(ii) Para 73 discusses recent reforms in telecommuni cations. In this connection, it also refers to 
the "easing of licensing conditions and the start of issuing licenses for fixed network services".  
Could Chinese Taipei provide information on how the licensing conditions have been eased? 
What criteria have to be met in order to obtain the licenses? How many licenses has Chinese 
Taipei granted, to date, for fixed network services? 
(iii) Para 88 relating to maritime transport services states that non-Chinese Taipei companies 
wishing to establish vessel carriers, shipping agencies or freight forwarding branches require 
permission from the MOTC.  
Could Chinese Taipei explain what is entailed by the process to obtain  "permission" from the 
MOTC? What criteria is used by the MOTC to  accord  "permission" for non-Chinese Taipei 
companies? WT/TPR/M/165/Add.1 
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Trade contingency measures  
3 We note that Chinese Taipei has generally re frained from using trade contingency measures 
since it acceded to the WTO.  It is noted that Chinese Taipei has not imposed any countervailing or 
safeguard measures since its accession. However, we note that as of Dec 05, three anti-dumping 
measures were in force on two products.   
While we commend for its restrained use of trade contingency measures, we  would appreciate if 
Chinese Taipei could indicate when these anti-dumping measures would expire.  
Privatisation of state-owned enterprises 
4 In para 137, it is stated that 15 SOEs in pe troleum, aerospace, shipbuilding, iron, electric 
power, water supply, tobacco a nd liquor, banking, rail transport, postal services, and chemical 
engineering are to be privatized. The Report also states that schedules for privatizing 9 of these SOEs 
are being re-evaluated, are suspended or remain undecided.  
While we note that (according to Ch inese Taipei authorities)  the latest date for the privatization of 
SOEs is foreseen in 2008, we would appreciate if Chinese Taipei could provide more information on 
the reasons for the re-evaluation , suspension  and lack  of decision relating to the privatization of the 
9 SOEs. 
QUESTIONS BY SWITZERLAND
 
Report by the Secretariat  
I. ECONOMIC ENVIRONMENT 
(3) STRUCTURAL POLICIES (iv) Industrial policy 
Para. 19  suggests that various tax incentives are granted, in particular to "newly emerging, important 
and strategic" industries. Also tax incentives are gr anted to industries situated in science parks, export 
processing zones, industrial parks, and free-trade zones. Could the authorities of Chinese Taipei 
elaborate on the type of tax incentives which are gr anted and also indicate how such tax incentives are 
made consistent with article 3 of WTO’s Ag reement on Subsidies and Countervailing Measures 
(ASCM) which prohibits subsidies linked to export results ? 
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(4)  TRADE AGREEMENTS AND ARRANGEMENTS 
(i)  Multilateral agreements 
Para. 15  indicates that in accordance with its laws a nd regulations, Chinese Taipei prohibits inbound 
cross-strait trade involving some 2,200 tariff lines (HS 10 digit level), i.e. more than 20% of the 
10,922 total number of tariff lines at the HS-10 dig it level. Could the authorities of Chinese Taipei 
indicate the main sectors/products concerned and the economic significance of these as a percentage 
of total cross-strait imports flows? Also, are there any plans to reduce the size of these trade 
prohibitions in the coming years ?  WT/TPR/M/165/Add.1 
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III. TRADE POLICIES AND PRACTICES BY MEASURE  
(2) MEASURES DIRECTLY AFFECTING IMPORTS   (iii)  Tariffs c. Bound and applied tariffs 
According to para. 27 , Chinese Taipei has provided ad valorem equivalents (AVEs) for 
approximately 67.5% of non-ad valorem rates. C ould Chinese Taipei indicate for which reason it did 
not provide ad valorem equivalent for the rest of its non-ad valorem rates ? Did Chinese Taipei 
provide its ad valorem equivalents for all its non-ad  valorem rates in the context of the Doha round 
negotiations ? 
(iv)  Other charges affecting imports 
Para. 42. Although non-Chinese Taipei and domestic ships ar e subject to the same harbor dues for the 
same shipping routes, harbor dues are higher for overseas than for domestic routes. The reason given by Chinese Taipei is that there are differences in the quality of services provided on these routes. 
Could Chinese Taipei provide more information on what are the differences of the services provided 
and for which routes ? Switzerland considers that there could be a risk of de facto discrimination 
against foreign ships and would seek clarification on this from Chinese Taipei, especially on how it guarantees that there is no such de facto discrimination. 
(v) Import prohibitions, restrictions, and licensing  
Paras. 48-49. According to para. 49 import permits for certa in products are valid for six months from 
the date of issue and can be extended twice for no more than 6 months each time. Could Chinese 
Taipei specify if after these two extensions th e product cannot be imported any more and how it 
justifies such a prohibition ? Does this only apply to  the 24 items that require import permits as in 
table AIII.3 or does it apply to products listed in  footnote 36 ? If it applies to products listed in 
footnote 36, it would appear that the limitation of th e extension could have a trade restrictive effect ? 
We would seek a detailed justification for such a restriction. 
Report by the Separate Customs Territory  of Taiwan, Penghu, Kinmen and Matsu
 
III. ECONOMIC AND TRADE POLICY REGIME 
(2)  IMPLEMENTATION OF ACCESSION COMMITMENTS (iv)  Intellectual property rights 
Para. 32 . The report by the Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu – 
which contains the policy statement submitted by Ch inese Taipei – mentions on page 8, paragraph 32 
that in response to the emergence of certain new IPR infringement issues, an Action Plan 2006-2008 
was launched on 1 January 2006 to sustain and develop the work already carried out under the 
previous Plan. Please indicate the focus of this lat est Action Plan and describe in detail the concrete 
measures that are/will be taken under it. 
QUESTIONS BY NEW ZEALAND
 
1 Prospects  (WT/TPR/S/165 page 13, para 32) 
We note that the Chinese Taipei government consider s that the growing importance to its economy of 
cross-strait movement of goods woul d require further liberalisation of cross-strait traffic in order to 
contribute to improving the efficiency of Chinese Taip ei’s economy.  What steps toward liberalisation 
is Chinese Taipei taking in this regard? WT/TPR/M/165/Add.1 
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2 Direct Investment   (WT/TPR/S/165 page 20, para 27) 
We note that there are a number of areas where fore ign direct investment into Chinese Taipei is 
prohibited; has Chinese Taipei given considerati on to opening its postal services sector to foreign 
direct investment?   
3 Tariffs:  Non-Ad Valorem   (WT/TPR/S/165 page 29, para 23,  page 25, para 2 and page 30, 
para 27) 
We note that non-ad valorem duties apply to 1.8% of all of Chinese Taipei’s tariff lines (around 130) 
and tend to involve high ad valorem equivalents.  The Secretariat notes that non-ad valorem rates tend 
to conceal relatively high tariff rates (given that the simple average rate for all ad valorem equivalents 
supplied is 130% - and of the top 100 tariffs 42 were  non-ad valorem rates).   In its intended moves 
toward further trade liberalisation, has Chinese Taip ei considered the distorting effects of these high 
rates and will steps be taken to address this issu e?  Is Chinese Taipei considering moving to an 
exclusively ad valorem tariff structure; this would provide greater certainty about tariff costs prior to 
shipping? 
What steps are being taken to remove remaining seasonal tariffs applied to fruit? 
4 Tariffs:  Agricultural  (WT/TPR/S/165 page 30, para 28)  
The Secretariat notes that agricultural products receive much higher tariff protection than non-
agricultural products, with the average MFN tariff on agricultural products applied at 22.3%.  The 
range  of tariffs is also much greater for agricultural than non-agricultural products: 
- What program does Chinese Taipei have for reducing and simplifying tariffs on 
agricultural products?    
- Why does Chinese Taipei maintain tariff prot ection on products when there is no (or 
very little) local production to protect (such as powdered milk or sheep meat) – or in 
sectors (such as dairy) where many of Chinese Taipei’s companies are among the largest and most competitive in Asia?   
- Why does Chinese Taipei apply different ta riffs for similar products (for example, 
cheese is subject to a lower tariff than powder ed milk - 5% compared with 10%)?    
5 Tariff Peaks  (WT/TPR/S/165 page 30, para 28) 
Reducing low tariffs while leaving higher tariffs relatively unchanged risks creating a more distorting 
tariff structure, even though aver age tariffs are reduced.  Economic efficiency and resource allocation 
would be improved most if high tari ffs were reduced first and fast.  Does Chinese Taipei agree with 
this? If so, why does it not apply such principles to th e agriculture sector, when it is applying this type 
of approach in the Doha NAMA negotiations? 
6 Tariff Escalation  (WT/TPR/S/165 page 35, para 29) 
The Secretariat notes that tariff escalation results in a bias against imports of more processed goods 
and therefore gives an effective rate of protecti on to the domestic processed goods that is higher than 
the nominal rate.  Consequently, in the absence of preferences, tariff escalation can impede the 
development of less industrialised members seeking to export products with  higher value added to 
Chinese Taipei.  How does Chinese Taipei intend to address its pattern of tariff escalation?  WT/TPR/M/165/Add.1 
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7 Tariff Quotas   (WT/TPR/S/165 page 37-8, paras 34-38) 
Given Chinese Taipei’s commitment to ongoing trade lib eralisation, when does it plan to remove its 
remaining Tariff Quota provisions, particularly where other substantial barriers already exist, or the 
domestic industry is well established?  What are Ch inese Taipei’s reasons for retaining Tariff Quotas 
on deer velvet, pears, persimmons, liquid milk, ga rlic, dry shitake and certain fish species?   
8 Tariff Quotas:  Under Fill   (WT/TPR/S/165 page 38, para 38) 
Given that actual in-quota imports were either zero or less than 20% in a number of tariff lines, what 
reason does Chinese Taipei have for retaining these quota restrictions? 
9 Special Safeguards   (WT/TPR/S/165  page  68, para  11) 
The Secretariat notes that special safeguards were  triggered during 2002-05 fo r a number of products.  
What is Chinese Taipei's justification for trigge ring special safeguard measures on products such as 
liquid milk - when the domestic industry is strong, substantial barriers already exist (short shelf life, 
high transport costs) and the tariff quota is typi cally under filled?  What plan does Chinese Taipei 
have in place to phase out its use of special safeguards? 
10 Charges Affecting Imports   (WT/TPR/S/165 page 25, pa ra 3 and page 39, para 42)  
We note that additional charges, such as harbour  service dues, are imposed on Chinese Taipei imports 
at a rate 60% higher than that applie d to domestic trade.  As part of its moves toward liberalisation, is 
Chinese Taipei considering removing such provisions , or applying them in a manner which has a non-
discriminatory outcome? 
11 Domestic Support  (WT/TPR/S/165 page 12) 
We note that Chinese Taipei is committed to a su bstantial reduction in trade-distorting domestic 
support, as well as substantial improvement in mark et access.  Could Chinese Taipei please provide 
information on what steps will be take n to reduce domestic support measures? 
12 Subsidies  (WT/TPR/S/165 page 53, para 93)  
We note that Chinese Taipei continues to subsidise commercial aspects of the fisheries industry, such 
as vessel/crew insurance.  What is the rationale for subsidising what are, in effect, standard business 
costs associated with fishing? 
13 Standards   (WT/TPR/S/165 page 26, para 10 and page 54, para 98) 
The Secretariat noted that an estimated 25% of Ch inese Taipei’s trade-related standards were aligned 
to international standards.  What  steps is Chinese Taipei taking to bring its remaining trade-related 
standards in line with international norms? WT/TPR/M/165/Add.1 
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14 Standards: Transparency   (WT/TPR/S/165 page 16, para  9 and page 57, para 99) 
We note the processes set out in para 99 on page 57 of document WT/TPR/S/165 concerning 
transparency in the development process of new or amended laws and re gulations and would like 
more information on how Chinese Ta ipei ensures that foreign repr esentative offices/trading partners 
are informed of opportunities to be involved in regulatory development processes, in particular 
"consult[ation] with interested parties" prior to th e gazetting of finalised, or near finalised, laws and 
regulations.  What processes does Chinese Taipei have in place to inform trading partners of changes 
in the way laws and regulations ar e implemented (as changes in impl ementation – particularly without 
prior notification - also have the ability to unnecessarily disrupt trade)? 
15 Standards and Conformity Certification  (WT/TPR/S/165 page 56, para 102) 
What steps is Chinese Taipei taking to make conf ormity certification less of a barrier for foreign 
suppliers of those manufactured goods requiring cer tification?  Has Chinese Taipei considered 
identifying a "single desk" within each of the relevant certifying agencies - in particular the Bureau of 
Standards, Metrology and Inspection - which can be approached on certification issues? 
What reasons does Chinese Taipei identify for th e absence of foreign products from the list of 
certified nutraceutical health foods? 
16 Intellectual Property
  (WT/TPR/S/165  pages  57-62) 
The Secretariat notes that Chinese Taipei has, since accession, adopted a number of laws and 
regulations to ensure the protection of intellectua l property rights.  What measures is Chinese Taipei 
taking to ensure that "effective actions cons tituting a deterrent" are in place, as mandated under 
Article 41(1) of TRIPS, in particular with regard  to the enforcement of IPR laws and regulations, 
including sentencing provisions.   
17 Agriculture Policy  (WT/TPR/S/165 page 13, para 32) 
The Secretariat notes the great importance to Chinese Taipei’s longer-term growth of structural and 
other economic reforms to boost competition -  including of, inter alia, trade liberalisation, 
particularly in agriculture.  What program does Ch inese Taipei have in place to continue to progress 
trade liberalisation? 
18 Agriculture Policy   (WT/TPR/S/165  page  66, para  6) 
Despite significant ongoing levels of protection, the Secretariat notes that labour productivity in 
agriculture is only about one quarter of the level found in the rest of the economy and that this is most 
likely due to the small average size of farms, wh ich prevents the achievement of scale of economies, 
mechanisation and use of new technology.   Does Ch inese Taipei agree that th e protective measures it 
applies at border and via domestic support have not increased the efficiency/productivity of its 
agricultural sector? 
19 Services   (WT/TPR/S/165  pages 75-84) 
Chinese Taipei notes that profound changes to the landscape of the domestic services industry can be 
expected in the years ahead (p7, para 29).  What changes is Chinese Taipei envisaging? 
For Chinese Taipei to continue its integration in to the international economy and establish itself as a 
regional services hub, liberalisation of its services sector will be increasingly important:  WT/TPR/M/165/Add.1 
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- What steps does Chinese Taipei intend to  take to liberalise more fully its 
"Professional Services" and "Other Business Services" sectors, in particular architectural, engineering, urban pla nning, landscaping, legal and accounting 
services?   
- What reasons does Chinese Taipei have for retaining restrictions on the foreign 
ownership of private education institutions?   
- What steps is Chinese Taipei intending to  take to open its postal sector to foreign 
service providers?   
 - What concerns are causing Chinese Taip ei to hold back from removing remaining 
restrictions on Environmental Services and Tourism Services? 
QUESTIONS BY JAPAN
 
Report by the Separate Customs Territory  of Taiwan, Penghu, Kinmen and Matsu  
(WT/TPR/G/165) 
III. ECONOMIC AND TRADE POLICY REGIME 
(2) IMPLEMENTATION OF ACCESSION COMMITMENTS 
(i) Tariff  
(Page 5, paragraph 18)  (Ref. page 30, paragraph 26 of the Report by the Secretariat (WT/TPR/S/165)) 
Japan appreciates that many tariffs have reduced during the WTO accession process.  However, Japan 
hopes that the tariffs of the following items will be  further reduced under the on-going negotiations in 
the current round.   
1. Please indicate prospects for the further reduc tion of the tariffs of the following items. 
 (a) automobile parts  (b) sake and shochu  (a distilled alcoholic beverage) 
In particular, the tariff rate of sake and shochu  (40%) is quite high, compared to the tariff rates of 
other alcoholic drinks, such as whisky (0%), beer (0 %) and wine (10%). Japan recognizes that this is a 
substantial barrier for market access.  Therefore, Jap an hopes that a drastic reduction of the tariffs of 
sake and shochu  will be realized. 
(ii) Non-tariff measures  
(Page 6, paragraph 26)  (Ref. page 56, paragraph 104 of the Repo rt by the Secretariat (WT/TPR/S/165)) 
Japan recognizes that a new standard for the in spection of imported alcoholic drinks on securing 
sanitary safety will heavily affect the import of Japan ese alcoholic drinks. Therefore, Japan hopes that 
the new standard will be reviewed and relaxed as well as operated without interrupting market access  
2. In this regard, please indicate specific views. WT/TPR/M/165/Add.1 
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(iv) Intellectual property rights  
(Page 7, paragraph 30) 
Concerning the improvement of the protection of intellectual property rights, Japan had requested that 
the system of external examiners be abolished in or der to enhance the quality of the examination.  We 
recognize that the abolition of external examiners is agreed upon.  
3. In this regard, please provide further inform ation, including a specific plan for the gradual 
reduction, and a scheduled time for the fu ll abolition, of external examiners. 
(Page 7, paragraph 30) 
(Ref. page 59, paragraph 117 of the Repo rt by the Secretariat (WT/TPR/S/165)) 
Concerning the abolition of criminal liabilities for patents, utility models and design patents: 4. (a) Please indicate the reason why crimin al liabilities for patents, utility models and 
 design patents were abolished. 
 (b) Please indicate the current status for cas es of infringement, including the specific date 
after the abolition of criminal liabilities, pe r each right (patents, utility models and 
design patents), compared to those before the abolition. 
 (c) Please explain how effective enforcement measures have been established and will be 
established, in order to secure the same level of deterrents for criminal liabilities 
(Page 7, paragraph 31) 
Japan recognizes that the revised Copyright Act,  promulgated in 2004, establishes a protection 
mechanism for technological protection measures, ba sed on Article 11 of the WIPO Copyright Treaty 
and Article 18 of the WIPO Performances and Phon ograms Treaty but does not provide appropriate 
and effective legal remedies on the remove and al ter of rights management information, based on 
Article 12 of the WIPO Copyright Treaty and Ar ticle 19 of the WIPO Performances and Phonograms 
Treaty. 
5. Please indicate the reason why the revised Copyright Act does not provide appropriate and 
effective legal remedies on the remove and alter of rights management information.  If there is a plan 
for legislation on this point, please indicate it. 
(Page 7, paragraph 31) 
Japan believes that legislation for the reliability of Internet Services Providers, including the 
procedures of "Notice and Take Down, is required along with the progress of digitalization.  Last 
year, we received a reply in the Trade and Ec onomic Conference that this legislation was under 
consideration. 
6. In this regard, please indicate th e current status of consideration. 
(Page 7, paragraph 32) 
7. Please provide detailed information on th e "Action Plan 2006-2008" launched in 
January 2006.  WT/TPR/M/165/Add.1 
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(2) ONGOING REFORMS 
(iii) The telecommunications sector (Page 9, paragraph 39)  
(Ref. page 80, paragraph 72 of the Report by the Secretariat (WT/TPR/S/165)) 
Japan recognizes that Chunghwa Telecom is subject to a different limitation of foreign capital 
participation from other Type I tele com enterprises.  We also recogni ze that the limitation of foreign 
capital participation was relaxed to 40% (the sum of direct and indirect shareholding) in June 2005. 
8. Please indicate which law and regulation prov ided such a relaxation of the limitation of 
foreign capital participation.  If there is any ot her recent legislation concerning the limitation of 
foreign capital in this sector, please indicate it in detail. 
(Page 9, paragraph 40)  
The Revised Offer on Services describes a rese rvation in basic telecommunications services 
requesting that the chairman of the board shall be  a Chinese Taipei person.  On the other hand, the 
Report (WT/TPR/G/165) states that new regulations allowed for more than 50% of members of the 
board to be foreign nationals.  
9. Please provide specific and comprehensive information on the current nationality and 
residency requirements for the members of the board of telecom enterprises. 
(v) Privatization of state-owned enterprises 
(Page 10, paragraph 43)  
The Report (WT/TPR/G/165) states that all remaini ng State-owned enterprises, with the exception of 
the Taiwan Water Supply Corporation, are schedul ed to be privatized in the years to come. 
10. Please indicate the benchmark of the priva tization.  For example, how about capital 
participation? 
Report by the Secretariat
 (WT/TPR/S/165) 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) MEASURES DIRECTLY AFFECTING IMPORTS 
(v) Import prohibitions, restrictions, and licensing 
(Page 40, paragraph 46) 
As the Report (WT/TPR/S/165) points out, there are ma ny prohibitions on cross-strait trade.  Japan 
recognizes that the purposes of laws and regulati ons concerning cross-strait trade include the 
protection of domestic industries in addition to security reasons. 
11. As for these laws and regulations, please expl ain their conformity with the WTO Agreements. 
(vii) Government procurement 
(Page 43, paragraph 58)  
According to the Report (WT/TPR/S/165), a procur ement opportunity database has been established. WT/TPR/M/165/Add.1 
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12. Please indicate specifically what is a proc urement opportunity database.  Is it possible to 
access the procurement opportunity database from outside the Territory? 
(Page 45, paragraph 63)  
According to the Report (WT/TPR/S/165), the law, which entered into force in May 1999, allows 
procuring entities to request tenderers to purchase lo cally produced goods, to transfer technology, to 
make an investment, to facilitate local exports, or to take any other simila r measures; such requests 
are to be realized within the context of  industrial cooperation programmes (ICPs). 
13. In this regard, please explain the conformity  with the non-discriminatory principle in the 
WTO Agreement on Government Procurement which Chinese Taipei is seeking to access. 
VI. TRADE POLICIES BY SECTOR 
(5) SERVICES 
(iii) Telecommunications and postal services (Page 80, paragraph 72)  
14. Concerning the scope of the inter-connecting obligation in Chinese Taipei, please indicate 
whether the facilities owned by all Type I telecom enterprises are subject to the obligation, or 
facilities owned by a dominant Type I telecom enterprise is subject to the obligation. 
(Page 81, paragraph 74)  
The Report (WT/TPR/S/165) states that under the regulation, a dominant Type I telecommunications 
enterprise must set a wholesale price for teleco m services provided for other telecom enterprises. 
15. Please indicate specifically all the other asy mmetric regulations only targeting a dominant 
Type I telecommunications enterprise, if any. 
(Page 81, paragraph 74)  
The Separate Customs of Taiwan, Penghu, Kinmen and Matsu is making commitments for all articles 
of the Reference Paper including the rules of Competitive Safeguards.  
16. Please indicate the specific laws and re gulations securing the following points in the 
Reference paper:  
 1.2(a) prevention of engaging in anti-competitive cross-subsidization; 
 1.2(b) prevention of using information obtained from competitors with anti-competitive 
results; and 
 1.2(c) making available to other services supp liers on a timely basis technical information 
about essential facilities and commercially releva nt information that are necessary for 
them to provide services. 
(Page 81, paragraph 74)  
17. Please indicate specifically all the rules for firewall, other than the prohibition of anti-
competitive cross-subsidization, such as the sepa ration of accounting and the limitation of personnel 
exchange between the section for the uncompetiti ve local call market and the section for the  WT/TPR/M/165/Add.1 
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competitive market, such as internet providing services and DSL services in Chunghwa Telecom, in 
order to secure fair competition. 
(Page 82, paragraph 77)  
The Report (WT/TPR/S/165) states "According to the Cable Radio and Television Act, total direct 
ownership may not exceed 20% of the total shareholdi ng of a relevant company, and the sum of direct 
and indirect ownership may not exceed 60%; two thir ds of directors and two thirds of supervisors 
must be Chinese Taipei persons; total shareholdi ng of non-Chinese Taipei persons in the satellite 
broadcasting business may not exceed 50% of all shares."   
18. Please indicate which reservation in the Revised  Offer on Services reflects such regulations. 
(v) Transport 
(b) Maritime transport (Page 83, paragraph 87)  
The Report (WT/TPR/S/165) states that cabotage is not permitted to vessels registered overseas, 
unless a franchise is granted. 
19. Please indicate specifically in which case vessels registered overseas are granted a franchise 
and permitted to operate cabotage, including de tailed information for the requirements and 
procedures, and concrete examples. 
QUESTIONS BY CHINA
 
I. ECONOMIC ENVIRONMENT 
(4) DEVELOPMENTS IN TRADE 
Question 1: (Chinese Taipei Report p. 3 para. 10) 
Chinese Taipei Report states:  "Fluctuations in the domestic economy are inevitably linked to 
developments in external trade.  In 2001, when the economy registered a negative growth rate of -
2.2%, its exports and imports both contracted, by -16.9% and -23.3% respectively.  Conversely, when 
the economy re-gained its growth momentum in 2004 and achieved a growth rate of 6.1%, this was 
due mainly to a strong rebound in exports, with th e annual growth rate reaching as high as +21.1%."  
Considering the influence of the economy on fo reign trade, has Chinese Taipei adopted trade 
affecting measures to deal with economic fluc tuations? What specific measures has it taken?   
Question 2: (Secretariat Report p. 8 para. 26  & Chinese Taipei Report p. 3 para. 10) 
The Secretariat Report states:  "Cross-strait flows of goods amounted to US$34 billion from Chinese 
Taipei and US$17 billion to Chinese Ta ipei in 2004." Also according to  Table AI.3 in the Secretariat 
Report, the share of the export of Chinese Taipei ac ross the Strait in its total export has increased from 
3.9% to 19.6% during the period from 2001 to 2004. 
Chinese Taipei states in its Report:  "Its imports ha ve recently been growing at a much higher rate 
(31.8%) than exports, leading to a contraction of the trade surplus from US$ 22.1 billion in 2002 to 
US$ 13.6 billion in 2004.  In 2005, as the world economy slowed, so too did growth in its exports and 
imports, to 8.8% and 8.2% respectively. " 
1. Despite the slowing export growth and declining trade surplus, Chinese Taipei is 
enjoying a wider trade surplus with Ch ina, which leads to the increasingly WT/TPR/M/165/Add.1 
Page 14  
 
severe trade imbalance across the strait. Please explain the reasons behind such 
a massive trade surplus of Chinese Taipei vis-à-vis China. 
2. What plans and specific measures will Ch inese Taipei take to balance the trade 
across the strait? 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(3) TRADE POLICY OBJECTIVES 
Question 3: (Secretariat Report p. 17 para. 12) 
The Secretariat Report states:  "On regional and bila teral relations, Chinese Taipei aims to: enter into 
negotiations for free trade agreements with its trading partners; …" 
Apart from those covered in the Report, with which Members is Chinese Taipei negotiating or 
planning to negotiate on FTAs? 
(6) INVESTMENT REGIME Question 4: (Secretariat Report Summary Observatio ns para. 9, p. 11 para. 29, p. 23 para. 34) 
The Secretariat Report states:  "As regards cross-st rait direct investment, little inbound investment has 
been allowed, and outbound investment, if not pr ohibited, requires the approval of the relevant 
Chinese Taipei authorities. " 
The Secretariat Report also states:  "Based on Chinese Taipei's data on direct investment on an 
approval basis…Outbound cross-strait direct inve stment amounted to US$6.0 billion in 2005, 
accounting for about 66% of Chinese Taipei's outbo und direct investment. Inbound cross-strait direct 
investment amounted to US$30,000 in 2005; ther e was no recorded inbound cross-strait direct 
investment between 2000 and 2004." "… to date, only one such investment has been approved." 
According to the statistics of the Ministry of Co mmerce of China, China made US$12 billion direct 
investment overseas in 2005. 
Please confirm the accuracy of the information on  China’s investment in Chinese Taipei from 
2000 to 2005 as reflected in the Secretariat Re port as comprehensive informationm in this 
regard is not available in China’s statistics. Cons idering the small size of the symbolic presence 
of China’s direct investment in Chinese Taipei as indicated by the Secretariat Report, has 
Chinese Taipei imposed any restrictive measures against direct investment from China? 
Question 5: (Secretariat Report p. 23 para. 34  and Chinese Taipei Report p. 10 para. 44)  
The Secretariat Report states:  "Outbound cross-stra it direct investment requires approval from the 
competent authorities of Chinese Taipei. Outbou nd cross-strait investments by Chinese Taipei 
enterprises with paid-up capital of more than NT$80 m illion are limited to not more than 40% of their 
net assets. In certain manufacturing, agriculture, ser vices and basic infrastructure construction sectors, 
Chinese Taipei prohibits outbound cross-strait dire ct investment; the list of prohibited sectors are 
reviewed annually by the competent authorities, and decided by the government of the Separate 
Customs Territory." 
Chinese Taipei states in its Report: "The primary ob jective of the investment policy is to create a 
highly liberalized, internationalised, transparent a nd business-friendly investment environment, which 
operates in a non-discriminatory manner."  WT/TPR/M/165/Add.1 
 Page 15 
 
 
1. Does outbound investment from businesse s in Chinese Taipei to other Members 
require the same approval? Are the approval procedures for outbound investment from Chinese Taipei implemented in line with the principle of non-discrimination and its relevant accession commitment? 
2. Please confirm that Chinese Taipei gr ants non-discriminatory treatment to 
investors from all Members including China. 
Question 6: 
It is understood that Chinese Taipei recently issued relevant policies on further tightening cross-strait 
economic and trade exchange, including more strict r estrictions on its investment to China. It will 
adopt a three-tier reviewing system in the future fo r outbound investment to China. For investment to 
China less than US$ 20 million, the "investment reviewing committee" will conduct a "simple review"; for investment between US$ 20 million to 100 million, the competent authorities will 
conduct a "specific review"; and major investment over US$ 100 million will be subject to a "policy-
level review". 
 1. Please provide detailed information of th is new system and explain the rationale. 
Is this system of Chinese Taipei consistent  with its declaration on the objective to 
create a highly liberalized, transparent and business-friendly investment environment as contained in para 44 of its own Report? 
 2. What influence does Chinese Taipei exp ect this system to exert on its economy 
and interests of its business people? 
Question 7:  (Chinese Taipei Report p. 16 para. 77) 
Chinese Taipei Report states:  "There are specific plans in place to strengthen trade and investment 
with individual countries." 
What are the criteria used by Chinese Taipei to identify focal markets an d to formulate focused 
and specific trade and investment plans? What are the specific contents of those trade and 
investment plans? 
III. TRATE POLICIES AND PRACTICES BY MEASURE (1) INTRODUCTION Question 8: (Secretariat Report p. 25 para. 3)  
The Secretariat Report states:  "Additional charges, such as a trade promotion service fee and harbour 
service dues, are imposed on Chinese Taipei's imports and exports. Harbour-service dues on domestic 
trade are 60% lower than those for overseas routes." 
Could Chinese Taipei explain the rationale why harbour-service dues on its imports and exports 
are 60% higher than those on domestic trade? 
Question 9: (Secretariat Report p. 25 para. 8 & p. 26 para. 9) 
The Secretariat Report states:  "Chinese Taipei has not notified any export subsidies to the WTO." 
"Nevertheless, various forms of assistance, including  subsidies, are provided for agriculture, fisheries 
and industrial products and activities." WT/TPR/M/165/Add.1 
Page 16  
 
Does Chinese Taipei have any specific plan to  notify its export subsidies to the WTO? 
(2) MEASURES DIRECTLY AFFECTING IMPORTS Question 10: (Secretariat Report p.14 para.4 & p. 17. para.15;  p. 40 para. 46) 
The Secretariat Report states:  "According to the authorities, Chinese Taipei’s  obligations under the 
WTO Agreement supersede those under domestic laws  or regulations in the event of conflict." 
"Chinese Taipei applies its MFN tariffs to all tradi ng partners." In practice, however, "Chinese Taipei 
prohibits inbound cross-strait trade involving some 2200 tariff lines (out of its total number of 10922 tariff lines at the HS 10-digit level) in acco rdance with its laws and regulations", which are 
apparently inconsistent with Chinese Taipei’s self-declaration of "WTO Agreements superseding 
domestic laws and regula tions" as stated above. 
The Secretariat Report also states:  "As at early Febr uary 2006, 56 items (0.5% of total tariff lines, HS 
ten digits) are prohibited from importation into Ch inese Taipei (these do not include prohibitions on 
cross-strait trade concerning some 2,200 tariff lines, which are governed under specific laws and regulations concerning cross-strait trade). These 56 it ems involve mainly products....that are subject to 
trade restrictions under international agreements. 
 1. Please explain the rationale behind the ban on importing 56 items from other 
Members. 
 2. Chinese Taipei prohibits the importatio n of 2,200 tariff lines of products from 
China, excluding those subject to specia l accession commitments. Please explain 
on the conformity between the policy and the universally applied WTO principles and rules as well as Chinese Taipei’s other general accession 
commitments. 
 3. What criteria does Chinese Taipei use to  decide on and adjust the 2,200 tariff 
lines subject to import prohibition? 
 4. Please provide a plan and a timetable on the elimination of these prohibitive 
measures. 
Question 11: Commercial advertising and promoti on activities in the target market are very important for business 
development and sales. 
 1. Please clarify whether there are restri ctions on enterprises and commodities 
from China for commercial advertisements  and promotion activities in Chinese 
Taipei. If yes, please provide details and rationale. 
 2. Does Chinese Taipei impose the sa me restrictions on enterprises and 
commodities from other Members in this regard?  
(3) MEASURES DIRECTLY AFFECTING EXPORTS Question 12: (Secretariat Report p. 13 para. 32 & p. 47 para.72) 
The Secretariat Report states:  "The authorities consider that the growing importance of cross-strait 
movement of goods in Chinese Taipei's economy woul d require further liberalization of cross-strait 
traffic; such liberalization would contribute to im proving the efficiency of Chinese Taipei's economy  WT/TPR/M/165/Add.1 
 Page 17 
 
 
and its attractiveness to inbound direct investments." The Secretariat Report also states:  "Cross-strait 
movement of goods can only be undertaken by indi rect shipment through a third port, usually Hong 
Kong, China." 
 1. What is the comment of Chinese Taipei on this view reflected in the Secretariat 
Report?  
 2. What plans does Chinese Taipei have to address the business community’s 
concern for direct shipment to facilitate exports? What measures Chinese Taipei 
will adopt to reduce the high import a nd export cost caused by the indirect 
shipment?   
Question 13: (Secretariat Report p. 48 para. 76) : 
The Secretariat Report states: "A special taskforce is established to investig ate suspected trade in 
strategic high-tech goods and to determine thei r destination and purpose. Destination-specific 
restrictions apply only to "strategic" high-tech products and products that  are regarded by the 
international community to be supporting terrorism." 
Could Chinese Taipei explain in detail the cover age of ‘strategic’ high-tech products and its 
negative implications on normal trade between Chinese Taipei and other WTO Members?  
Question 14: (Secretariat Report p. 48 para. 80 & p. 53 para. 93) : 
The Secretariat Report states:  "The governme nt provides funding for various import/export 
associations to promote Chinese Taipei’s exports; gr oup visits overseas, partic ipation in trade shows 
and trade conferences, training and publication are funded under the budget." 
"In the industrial sector, the government provides subs idized loans for …, product marketing, and for 
overseas investment and construction projects."  
"According to the authorities, domestic and non-Ch inese Taipei enterprises ar e eligible for these 
subsidies on an equal basis." 
 1. Does Chinese Taipei regard these practices as providing subsidies, even though 
indirect, to its exports? If not, please explain the rationale.   
 2. Please give a few examples to show that domestic and non-Chinese Taipei 
enterprises are eligible for these subsidies on an equal basis. 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
Question 15: (Secretariat Report p. 54 para. 98) : 
The Secretariat Report states: "Data provided by the authorities indicate that about 25% of domestic 
standards were harmonized with  international ones in 2004." 
Could Chinese Taipei explain the reason for such  a low rate of alignment of its domestic 
standards with the international ones? Does Ch inese Taipei have any plan to increase such a 
rate substantially so that most of its domestic standards that are non-aligned with international 
ones will be harmonized with the international ones?  WT/TPR/M/165/Add.1 
Page 18  
 
Question 16: (Secretariat Report p. 62 para. 133) : 
The Secretariat Report states: "The number of st ores selling pirated musical compact disks declined 
from 300 to 129." 
Could Chinese Taipei confirm whether this inform ation provided by the Secretariat is correct? 
What measures does Chinese Taipei plan to take  with these stores and prevent new stores as 
such from being established in the future? 
Question 17: 
According to our understa nding, some Chinese trademarks were re gistered pre-emptively in Chinese 
Taipei. Among them there are well-known trademarks  such as Tong Ren Tang, Yang Sheng Tang, Jin 
Hou, Hui Da and Yi Zhi Bi, and registered trademarks of some traditional Chinese brands like Feng 
Ze Yuan and Fang Shan.  
 1. What legal procedures does Chinese Taipei have for addressing pre-emptive 
trademark registrations?  
 2. Will Chinese Taipei protect Chin a’s famous trademarks and well-known 
traditional registered trademarks in the patent review period?   
 3. Does Chinese Taipei have any system on the protection of famous trademarks? 
If yes, what are the reviewing procedures?  
 4. Is Chinese Taipei of the view that the above-mentioned practices constitute 
infringements of the IPRs owned by the enterprises of China? If yes, does Chinese Taipei has any plan to correct these practices? 
IV. TRADE POLICIES BY SECTOR 
(2) AGRICULTURE 
Question 18: (Secretariat Report p. 67 para. 9, p. 68 para. 10 & 15)   
Agriculture is the most trade-distorted sector in  Chinese Taipei, which enjoys multiplied protection. 
For instance, "the average applied MFN for agricultu re was 22.3% in 2005. Some 7.5% of tariff lines 
applied to agricultural goods were non-ad valo rem. Many agricultural sub-sectors benefit from 
relatively high level of MFN tariff protection, sever al of these sub-sectors are also subject to a number 
of tariff peaks. Tariff rate quotas apply mainly to agricultural products." Various subsidies are 
provided for the production of rice, sorghum and f eed corn, sweet potatoes, beans, tobacco leaves, 
certain vegetables, and sugar. Meanwhile, "inbound di rect investment in agriculture and fishing is 
restricted". 
Does Chinese Taipei have any plan or concrete measures to address the protectionist practices 
in its agricultural sector? Why is inbound direct investment in agriculture and fishing 
restricted? 
(5) SERVICES 
Question 19:  (Chinese Taipei Report p. 8 para. 34) 
Chinese Taipei Report states:  "Instead of having to obtain permission from the Securities and Futures 
Bureau of the FSC (previously the Securities and Futures Commission), all foreign investors can now 
invest in the securities market af ter simply registering with the Taiwan Stock Exchange Co. (TSEC) 
and obtaining an investment ID."   WT/TPR/M/165/Add.1 
 Page 19 
 
 
According to the above information, could people  take it as granted that Chinese investors will 
be allowed to invest in securities and futures in Chinese Taipei after registering with the TSEC? 
Question 20:  (Chinese Taipei Report p. 8 para. 36) 
Chinese Taipei Report states:  "To facilitate the consolidation process and promote foreign 
investment, market mechanisms will continuously be  used to encourage further deregulation of the 
financial sector." 
 1. What plans and timetables does Chinese Taipei have on further liberalizing its 
financial sector?  
 2. Are there restrictions for Chinese financial institutions to set up branches in 
Chinese Taipei? If yes, please provide deta iled information. Do those restrictions 
conform to Chinese Taipei’s WTO accession commitments?  
 3. What consideration does Chinese Taipei have on the establishment of branches 
by Chinese financial institutions in Chinese Taipei? 
Question 21:  (Chinese Taipei Report p. 10 para. 46) 
Chinese Taipei Report states:  "Up to the end of 200 5, with the exception of a few sectors involving 
essential security interests and public health asp ects, 99% of the manufacturing industry sector and 
95% of the services industry sector had been  opened up to foreign investment." 
Please confirm whether Chinese Taipei has opened  its market to service providers from all 
WTO Members on MFN basis.  
Question 22:   
Are there any restrictions for enterprises from WTO Members including China to hold 
exhibitions on their own or jointly with loca l enterprises in Chinese Taipei? If yes, please 
provide details and rationale. Does Chinese Taipei h ave any plan to eliminate those restrictions?  
Question 23:  
The movement of natural persons plays an importa nt role in promoting trade liberalization and 
commercial investment. According to  the statistics from Chinese Taipei, in 2005, then number of 
people that travelled to Chinese Taipei from Ch ina was 170,000 person/time while the number in the 
other direction was 4.11 million person/time. That shows a serious imbalance of personnel exchange 
across the strait, which has certainly impeded and will continue to impede the normal cross-strait 
economic, trade and investment activities.  
What is the view of Chinese Taipei on this situation? What specific measures will Chinese 
Taipei take in the future to promote bus iness personnel exchange across the strait? WT/TPR/M/165/Add.1 
Page 20  
 
QUESTIONS BY THE EUROPEAN COMMUNITIES
 
II.  TRADE  AND  INVESTMENT  REGIME 
 (2) FORMULATION
 AND  IMPLEMENTATION  OF TRADE  POLICY 
Sustainable development 
Report by Chinese Taipei, page 18, paras 86-87  - What steps does Chinese Taipei take to en sure that its trade policy does not have any 
negative effects on sustainable developm ent in Chinese Taipei and elsewhere? 
Trade and environment 
 - What mechanisms does Chinese Taipei have  in place to ensure adequate coordination 
of environmental policy and trade policy?  
Trade and social development  
 - Labour productivity in Chinese Taipei is lower in manufacturing than in services. 
Labour standards can raise productivity in trade-related industry by providing incentives to work. What labour standards ex ist, and how could they be affecting 
labour productivity?  
(6) INVESTMENT
 REGIME  
(v) Inbound and outbound direct investment  WTO Secretariat’s Report, page 11, para 29 and page 13, para 32  
The authorities of Chinese Taipei  regard inbound di rect investment as an important tool for the 
continuous growth of the economy and recognise th e need to further improve the  investment 
environment to attract inbound direct investment. 
However, the data on page 12 of the Secretaria t’s report on inbound flows of direct investment 
indicate a substantial decrease
 during the period of 2001-2004 (from 5.128.5 USD million to 
3,952.8 USD million). Also the share of services has gone down from 64.3% to 49.2% for the period 
2001-2004. 
- Could Chinese Taipei explain which meas ures were taken to effectively encourage 
Inbound Direct Investment and which impact they had on FDI? 
III.  TRADE  POLICIES  AND  PRACTICES  BY MEASURE 
(2) MEASURES  DIRECTLY  AFFECTING  IMPORTS   
Customs valuation and rules of origin 
WTO Secretariat’s Report, page 28, para 19 
- Are there textile items from the Chinese mainland transiting through Chinese Taipei, 
in particular through Chinese Taipei Export Processing Zones?  
- Is Chinese Taipei applying specific measur es aiming at avoiding deflection of trade 
that might concern Chinese textile items  facing the recently introduced EU 
quantitative limits?  WT/TPR/M/165/Add.1 
 Page 21 
 
 
(3) MEASURES  DIRECTLY  AFFECTING  EXPORTS 
Export prohibitions, restrictions and licensing 
WTO Secretariat’s Report, page 47, para 74 
- Does Chinese Taipei plan to re-introduce export licensing for textiles and clothing to 
control and ensure the origin of the produc ts, following the implementation of the EU 
– China MoU? 
Export finance, insurance, and guarantees 
WTO Secretariat’s Report, page 48, para 79 
 - Could Chinese Taipei give information a bout the average prevailing parameters of its 
export credits (currency, repayment term , interest rate, guarantee and insurance 
premium rates) for different types of countries since 2000?   
 - Could Chinese Taipei provide more info rmation on its relending facility to overseas 
bank? 
 - Could it also indicate the amount of export credits provided in these last years for 
shipments of machinery, equipment and other products?  
 - Could Chinese Taipei indicate how far it follows the provisions of the Arrangement 
on Officially Supported Export Credits of the OECD? 
Export promotion and assistance 
WTO Secretariat’s Report, page 48/49, para 80 
- Could Chinese Taipei clarify the re lations between Export-Import Bank and 
TAITRA? Does TAITRA provide support fo r export financing and insurance?  
- What kind of instruments are used?  
(4)  MEASURES AFFECTING PRODUCTION AND TRADE  
Taxation and tax-related assistance 
WTO Secretariat’s Report,  page 39, para 40, page 51, para 86 and page 74, para 44 
The Secretariat’s Report states th at the differential treatment be tween imported and domestic goods, 
in terms of the basis for calculating the commodity  tax, was eliminated in amendments to the 
Commodity Tax Act in October 2001. The Report does not mention, however, that as concerns motor 
vehicles, discrimination between imported a nd domestically produced vehicles persists.  
This is because local manufacturers can, under certa in conditions, deduct the wholesaler profit of 
currently 9%  (promulgated by the tax authorities currently)  from the selling price in calculating the 
taxable value for the commodity tax.  Notably, if  vehicle manufacturers sell vehicles to both the end-
dealer/customers and the wholesaler, and if the direct  sales to the end-dealer/customers exceed 10% of 
its total sales (with respect to the specific type of vehicle), then the manufacturer can claim that there 
is no wholesaler in respect to that specific type vehi cle. (The end-dealer is defined as the dealer that 
sells directly to the end user or individual cust omers.) Imported vehicles are not subject to the same 
rules. WT/TPR/M/165/Add.1 
Page 22  
 
- What are the authorities’ plans to elim inate the discriminatory elements in the 
application of the commodity tax to impor ted motor vehicles, which do not benefit 
from the same favorable conditions as domestically produced vehicles? 
Contingency measures 
WTO Secretariat’s Report, page 43, para 56 
- Does Chinese Taipei consider re-insta ting the "Rules for Handling Import Relief 
Cases Regarding Textiles and Clothing" should circumstances require it?  
Government procurement 
WTO Secretariat’s Report, page 43ff 
- Paragraph 57:  Does the domestic suppliers preference over non-Chinese Taipei 
suppliers apply only for the case mentioned in paragraph 63, namely a maximum 3% 
price preference when a local supplier contributes at least 50% added value ? 
- Paragraph 61:  Is the GPIS (government procurement information system) database 
available in English? Does the electronic procurement system through the Internet 
cover or will cover in the future all tenders published in the daily Government 
Procurement Gazette? Does it include parts in English? 
- Paragraph 62:  Can Chinese Taipei provide examples of "due proper cause"? 
Intellectual property rights 
WTO Secretariat’s Report , page  60, paras 126, 127, footnote 90 
The WTO Secretariat’s Report mentions that there is  one case of compulsory licensing, which is still 
pending before the Ministry of Economic Affairs. In relation to the decision to grant a compulsory licence on five patents rights (concerning rewritable compact discs) owned by a non-Chinese Taipei company, mentioned in the footnote to paragraph 126, the EC has the following questions: 
 - It appears that the appeal before the MOEA has been pending for a long time. Could 
Chinese Taipei explain why a decision has not yet been taken? 
 - It appears that the conditions laid down in Article 31 of the TRIPs Agreement relating 
to the use of compulsory licensing are not met in relation to this decision. Could 
Chinese Taipei explain how the decision complies with this provision?   
 - Could Chinese Taipei, in particular, indicate how its authorities ensure compliance 
with the condition that a compulsory licence be limited to mainly supplying the 
domestic market? 
IV.  TRADE POLICIES BY SECTORS 
(4) MANUFACTURING 
Textiles and clothing 
WTO Secretariat’s Report, page 75, para 47  - Can Chinese Taipei’s elaborate on this ne w trend in textile/clo thing exports in 2005? 
Has it anything to do with Chinese Taipei's  measures taken in the context of the 
liberalisation of textile trade as a result of the expiry of the WTO Agreement on Textile and Clothing, aiming at facing the challenge of mainland China?   WT/TPR/M/165/Add.1 
 Page 23 
 
 
 - How does Chinese Taipei explain the 27 pe rcent increase (quantity) of its total textile 
exports towards the EU in 2005, thus becoming in a very short time one of the fastest growing exporters towards the EU in this regard?  
WTO Secretariat’s Report, page 75, para 47 and page 73/74, footnote 32 
 - Could Chinese Taipei  give more details  on the Challenge-2008 Plan? Why is textiles 
still considered as a key industry consider ing the global situation in this sector? 
(5) SERVICES  
The withholding tax on services as currently applied in  Chinese Taipei does not seem to live up to the 
requirement that it not be applied in an 'arbitrarily  or unjustifiably discriminatory manner or in order 
to constitute a disguised restriction of trade in servi ces' but be applied in an 'equitable and effective' 
manner (footnote to GATS article XIV (d)). 
- Could Chinese Taipei explain how this can be corrected? 
WTO Secretariat’s Report, page 76 ff 
Financial services 
The Secretariat Report ( paragraph 60 ) describes the conditions for gr anting licenses for branches of 
foreign banks.  
 - Could Chinese Taipei please provide info rmation on how many foreign bank branch 
licenses were granted during the last 3 years?  
 - Is it correct that Chin ese Taipei has adopted a moratorium on granting branch 
licenses?  
 - If yes, could Chinese Taipei please explain wh y this restriction has not been listed in 
its schedule of commitments? 
The Secretariat Report ( paragraphs 63 and 67 ) notes that the presence of non-Chinese Taipei insurers 
has decreased from 27 in 2000 and that there w as only one branch office of non-Chinese Taipei 
reinsurance companies at the end of 2005. 
 - Could Chinese Taipei elaborate on the causes it sees behind this decrease or low 
presence of foreign financial institutions?  
 - Could Chinese Taipei explain how its Insurance Product Approval by Classification 
system does not nullify or impair the specific commitments that have been made on insurance services?  
 - Can Chinese Taipei clarify what percenta ge of products need to be approved under 
the Insurance Product Approval by Classification system?  
The short period of 5 years for fiscal amortisation of  start up and other losses in the insurance sector 
ensures that the initial operations of foreign insurance companies are on a reduced scale and 
constitutes an effective barrier to trade. 
- Would it be possible for Chinese Taipei to extend this period to 20 years to ensure 
better trading conditions for foreign suppliers? WT/TPR/M/165/Add.1 
Page 24  
 
Telecommunications 
The Secretariat Report ( paragraph 76 ) refers to the establishment of a new telecoms regulator on 
22 February 2006. 
 - Could Chinsese Taipei explain if this regulator is fully operational?   - Could Chinese Taipei also provide further information on the functioning of this 
regulator? 
- Could Chinese Taipei confirm that the ne w regulator is an independent regulator? 
Maritime transport 
The Secretariat Report ( paragraph 89 ) mentions that four harbour free trade zones are in operation. 
 - Could Chinese Taipei explain the licensing application process that applies to 
logistics services suppliers that wish to supply their services in a free trade zone?  
 - Could Chinese Taipei clarify if separate business licenses are required for each 
logistics service? 
Tourism  
As stated in the WTO Secretariat's Report ( paragraph  94 ), the only market access restrictions on 
engaging in tourism business in Chinese Taipei conc ern tour guide services; tour guides can only be 
provided by a travel agency or a tour operator, a nd non-Chinese Taipei persons  applying for the tour-
guide examination are required to have obtained re sident certificates and been resident in Chinese 
Taipei for more than six months. 
- Does Chinese Taipei have any plans to fu rther liberalise tourism and to also grant 
foreign tour guides without residency in Ch inese Taipei the possibility to participate 
in the tour-guide examination and to work as tour guides in Chinese Taipei? 
Professional services – Engineering services 
 - Could Chinese Taipei explain if it still maintains a requirement that the Chairman of 
the Board or responsible person of an engin eering consulting firm must be a licensed 
Chinese Taipei engineer? 
QUESTIONS BY AUSTRALIA
 
III. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLY AFFECTING IMPORTS 
(iii) Tariffs 
Chinese Taipei has tariff quotas on a number of agri cultural and fish imports.  The Secretariat 
(WT/TPR/S/165, page 38, para 38) has noted qu ota underfill is occurring across a range of these 
products.  For such products, what then is the purpose of retaining the quota restrictions and 
accompanying allocation arrangements.  Has Chinese Taipei considered simply applying the in-quota 
tariff without quantitative restri ction and related formalities?  WT/TPR/M/165/Add.1 
 Page 25 
 
 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(i) Taxation and tax-related assistance 
Australia notes that Chinese Taipei applies an indire ct tax to motor vehicles based on the engine size 
of a vehicle, with a rate of 35% applying to those vehicles with an engine capacity above 2,001 cc, and 25% for vehicles with an engine capacity below 2,000 cc (WT/TPR/S/165, page 104, 
Table AIII.6).  This discriminates against Australia n-made vehicles which typically have large sized 
engines.  Could Chinese Taipei confirm the schedul ed reduction from 1 January , 2007 of the tax rate 
on sedans above 2,001 cc to 30%? 
(iv) Standards and other technical requirements 
(a) Standards, technical requirements, and inspection 
Imported cars must go through a round of testing and cer tification before they can be sold in Chinese 
Taipei.  This not only adds appreciably to the cost  to the Chinese Taipei car buyer but also delays, 
often by months, the availability of new models on the market.  While safety standards are based on 
European regulations, the variations based on ‘lo cal conditions’ result in a unique set of Chinese 
Taipei standards.  Is Chinese Taipei considering re ducing the complexity of the testing, certification 
and safety standards that currently apply to imported cars? 
There appears to be a lack of coordination among government agencies involved in the process of 
importation in the automotive sector.  The Automotive Research and Testing Centre (which carries out policy set by the Ministry of Communications and Transportation) is responsible for testing 
complete vehicles, including their components.  The Bureau of Standards, Metrology, and Inspection 
under the Ministry of Economic Affairs also requir es testing of certain specified parts, including 
wheels and safety belts.  The two ministries call for different test procedures, so that the same part has 
to be tested twice.  Is Chinese Taipei considering eliminating the different prescribed test procedures, 
so that the same part does not have to be tested twice? 
(b) Sanitary and phytosa nitary arrangements 
Australia  notes the WTO Secretariat advice that the Bureau of Animal and Plant Health  Inspection 
and Quarantine (BAPHIQ) is responsible for esta blishing and executing SPS-related policies, laws, 
and  regulations (WT/TPR/S/165, pa ge 56, para 104.).  Australia observes that BAPHIQ has proposed 
a number of amendments to SPS-related polici es, laws and regulations during the review 
period.  Australia would welcome advice from Chine se Taipei on any further reforms proposed in this 
area, including whether reforms to date are part  of a wider program of policy development. 
IV. TRADE POLICIES BY SECTOR 
(2) AGRICULTURE Chinese Taipei advised in the May 2006 meeting of  the Committee on Agriculture that the constant 
underfill of the liquid milk tariff quota is due to  consumer preferences for local produce and 
prevailing market conditions. Given this, what is the purpose of retaining the quota restrictions and 
accompanying allocation arrangements.  Has Chinese Taipei considered simply applying the in-quota 
tariff to liquid milk imports without quan titative restriction and related formalities? WT/TPR/M/165/Add.1 
Page 26  
 
(5) SERVICES 
(i) Features 
In relation to education services, we understand that the Private School Law was amended in 
June 2005, but still states that: "Foreigners may hol d no more than one-third of directors' positions, 
and may not serve as a chairman".   We further understand that foreigners may, nonetheless, be 
permitted to serve as University Presidents (for example).  
Could Chinese Taipei please explain why foreigners  are still prohibited from filling more than one 
third of director's positions or serving as Chairman  (we had understood that this restriction would be 
removed when the Private School Law was amended last year)? 
Could Chinese Taipei also advise when education servi ces will be added to the list of services that can 
be provided pursuant to paragraph (d) of Ch inese Taipei's horizontal commitment on Mode 4? 
(ii) Financial services 
Has Chinese Taipei further considered removing the Mode 3 limitations for life and non-life insurance 
services or, alternatively, relaxing the capital require ments (NT$ 2 billion) for the parent company of 
a mutual insurance company that wish es to open a branch in Chinese Taipei? 
(iii) Telecommunications and postal services 
We note that the Chinese Taipei has undertak en the obligations contained in the WTO 
Telecommunications Reference Paper.   
Please describe the measures that Chinese Taipei has implemented to ensure compliance with 
paragraphs 4 (licensing), 2.2(b) inter-connection an d 2.5 (settlement of interconnection disputes) of 
the Reference Paper. 
(vi) Legal services 
Please comment on progress regarding elimination of the 5 year experience requirement in relation to 
foreign lawyers who seek recognition as "Attorneys of Foreign Legal Affairs" (or "AFLA").   
Could Chinese Taipei advise when legal services will be added to the list of services that can be 
provided pursuant to paragraph (d) of Chinese Taipei's horizontal commitment on Mode 4? 
QUESTIONS BY THE UNITED STATES OF AMERICA
 
TRADE POLICIES AND PRACTICES BY MEASURE Measures Directly Affecting Imports – Customs Valuation and Rules of Origin – Rules of 
Origin 
1. In Paragraph 19 and footnote 12 on page 28, the Secretar iat Report briefly addressed "country 
of origin" as it relates to imports into Chinese Taip ei.  Since early 2004, Chinese Taipei has required 
that certain agricultural and fisheries imports must be accompanied by a Country of Origin Certificate 
(COC).   
A) Please clarify these regulations.  Please in clude identification of which entities may 
issue a Country of Origin Certificate and pr ovide the justification for this measure in 
the response.  WT/TPR/M/165/Add.1 
 Page 27 
 
 
 B) Please also provide a copy of the September 30, 1994 measure Regulations 
Governing the Determination of Count ry of Origin of an Import Good  that is cited in 
footnote 12. 
Measures Directly Affecting Imports – Tariffs – Tariff Structure 
2. We have been made aware that Chinese Taipei  has recently decided to follow WCO rules and 
re-classify polymeric positive temperature coeffici ent (PPTC) thermistor devices under HS 8533.   
 A) Is this correct?    B) Notwithstanding this decision to come into conformance with WCO guidelines, is 
Chinese Taipei continuing to try to coll ect duties and penalties for PPTC devices 
imported before the re-classification?  If so , what is the basis for this effort?  
Measures Directly Affecting Imports – Tariffs – Bound and Applied Rates 
3. In Chart III.1, entitled "MFN tariff averages by  HS section, year 2002 compared to 2005" on 
page 32, the Secretariat reported a higher 2005 MFN tariff average than that in 2002 for Chapter 02, 
which is vegetable products.  The tariff rate averag es for other sections in 2005 are lower than the 
2002 levels.   
 While Chinese Taipei’s tariffs continued to d ecline from 2002 to 2005, what is the reason for 
the tariff increase in 2005 for that specific section? 
4. In Table III.3, entitled "Summary analysis of the Chinese Taipei’s MFN tariff, 2002-05" on 
page 33, the Secretariat reported an MFN 2005 tari ff range of 0-1,069.9% under the Section "Coffee 
and tea, cocoa, sugar, etc."   
 Please specify which product(s) classified under this category are subject to the 1,069.9% 
rate. 
Measures Affecting Imports – Other Charges Affecting Imports 
5. The Secretariat Report related in paragraph 41 on page 39 that Chinese Taipei levies a Trade 
Promotion Service Fee at a rate of .04 25% of the price of exports and imports. 
 Please describe the services provided to importers by The Trade Promotion Fund and explain 
how this ad valorem  charge relates to the cost of the services provided. 
Measures Affecting Production and Trade – St andards and Other Technical Requirements – 
Standards, Technical Requirements, and Inspection 
6. In paragraph 99 on page 55, the Secretaria t Report described the process for developing 
standards.   
 A) Please describe how international standard s are incorporated into this process.  
 B) Please also advise when in this process draft standards are notified to the WTO. 
7. Paragraph 101 on page 55 of the Secretariat Re port stated that "[I]nspection is carried out by 
the BSMI with regard to domestically produced agricultural, industrial, and mining commodities, 
imported products and those destined for exportation. "  However, it appears that while all categories 
of imported products are subject to inspec tion, only certain domestic products are. WT/TPR/M/165/Add.1 
Page 28  
 
 Please identify which domestic products do not face inspection requirements and explain why 
like imported products face inspection. 
8. On page 56 of the Secretariat Report, paragr aph 102 advised that "[M]anufacturers may apply 
for conformity certification by the standards authority in regard to relevant dom estic standards.  Those 
that meet the certification requirements are permitte d to use the Chinese Taipei certification mark." 
 Please advise whether foreign testing labs can qua lify to test for conformity to Chinese Taipei 
standards and issue the Chinese Taipei certification mark. 
Measures Affecting Production and Trade – St andards and Other Technical Requirements – 
Sanitary and Phytosanitary Arrangements 
9. In Paragraph 104 on page  56, the Secretariat Report advised that Chinese Taipei’s Plant 
Protection and Quarantine Act  is the main law governing SPS-related trade measures.  Chinese Taipei 
has made several announcements regarding the intention to revise or amend this Act. 
 What is the status of proposed changes to the Plant Protection and Quarantine Act? 
Measures Affecting Production and Trade – Intellectual Property Rights – Compulsory 
Licensing 
10. According to paragraph 126 on page 60 of the Secretariat Report, there has been only one 
case to date of compulsory licensing in Chinese Taipei (on five patent rights concerning rewritable compact discs).   The patent owner appeal ed the case, which is still under review.  
 A) Please provide the rationale for th e compulsory licensing in this case. 
 B) Please provide an update on the status of the appeal. 
Measures Affecting Production and Trade – Intellectual Property Rights – Parallel Imports 
11. In paragraph 128 on page 61, the Secretaria t Report indicated that parallel imports of 
copyrighted products without the authorization of the right holder are illegal.   
 In such cases, would the infringer be subject to legal action in the criminal, as well as civil, 
courts? 
12. In paragraph 131 on pa ge 61, the Secretariat Report related that Chinese Taipei established a 
special IPR police force to conduct random raids on night markets and shops suspected of purveying 
pirated goods that infringe copyrights.  Howeve r, according to Table III.16 on page 62 of the 
Secretariat Report, "IP Cases Investigated and Conc luded by District Prosecutor’s Office," it appears 
that there has been a yearly decline in  the number of copyright cases since 2001.   
 Please provide more detailed information on th e IPR police’s contribution to Chinese Taipei’s 
enforcement efforts in the case of products that infringe copyrights. 
TRADE POLICIES BY SECTOR Telecommunications and Postal Services - Telecommunications 
13. A November 2005 law established the NCC as  the new telecommunications regulator in 
Chinese Taipei.  Reportedly, Chinese Taipei's govern ment asked the Council of Grand Justices in  WT/TPR/M/165/Add.1 
 Page 29 
 
 
February 2006 to review whether the NCC organi zation is inconsistent with the supreme law of 
Chinese Taipei.  
 A) Please update us on the status of this legal proceeding.  B) Have all the commissioners been appoi nted to the NCC, and is it currently 
functioning according to the 2005 law? 
QUESTIONS
 BY HONG  KONG,  CHINA  
Investment 
(WT/TPR/S/165, P. 20, Para. 27) 
1. Recognizing Chinese Taipei's initiative in further liberalizing its investment regime, is there a 
timetable to remove industries from the "restricted industries" list? 
Antidumping 
(WT/TPR/S/165, P. 41-42, Para. 51) 
2. It is noted that the Regulation on anti-dumpi ng was last amended in February 2005.  We are 
interested in knowing whether there is any plan to further amend the Regulati on. In this connection, 
we would like to know whether the test of "public  interest" is currently featured in anti-dumping 
investigations of Chinese Taipei; and if not whethe r there is plan to introduce the test in future? 
Competition 
(WT/TPR/S/165, P. 63-64, Para. 139) 
3. We note that two applications on "concerted actions" were submitted in 2004 under the Free 
Trade Law.  Can more details be provided regard ing these applications and their justifications?  
Whether these applications had been approved, and if so on what ground? 
Foreign investments in services sectors 
(WT/TPR/G/165, P. 7, Para. 29; P. 10, Para . 46; and WT/TPR/S/165, P. 76, Para.  52) 
4. We note that the Chinese Taipei governme nt has approved the overall elimination of 
restrictions on investment by foreigners in a number of sectors.  It is also pointed out that investment 
bans and restrictions have been relaxed or lifted in many sectors. 
While we would commend chinese taipei on its libera lization efforts in this regard, we note that 
restrictions remain in various ar eas in services: there are restrictions on non-chinese taipei ownership, 
and inbound direct investment is restricted (or a pproval is required), in a number of services sectors.  
it is however not clear from chinese taipei’s existing gats schedule and its services offers that such 
foreign investment restrictions have ever been eliminated or existed.  for some of the sectors mentioned in the government and secretariat reports (e.g. courier services and educational services), 
we note that chinese taipei has al ready undertaken full commitments in  respect of mode 3 in both the 
market access and national treatment columns.  we  are therefore interested to know the types of 
foreign investment restrictions remaining in these services sectors. 
Telecommunication services 
(WT/TPR/S/165, P. 82, Para. 77) 
5. We note that according to Chinese Taipei’s Cable Radio and Television Act, total direct 
ownership may not exceed 20% of the total shareholdi ng of a relevant company, the sum of direct and 
indirect ownership may not exceed 60%, and two th irds of directors and of supervisors must be WT/TPR/M/165/Add.1 
Page 30  
 
Chinese Taipei persons.  However, it does not seem th at such limitations have been inscribed for its 
services commitments undertaken for "radio and te levision services".  Would Chinese Taipei advise 
whether the relevant operators would indeed be re garded as type I telecom enterprises (para. 72 of 
WT/TPR/S/165) and hence subject to the owners hip and nationality limitations scheduled for 
telecommunication services in its GATS schedule?  If the answer is negative, we would be interested to know how the foregoing limitations are consider ed to be compatible with its services commitments 
for "radio and television services". 
Maritime services 
(WT/TPR/S/165, P. 83, Para. 88) 
5. We note that non-Chinese Taipei companies wi shing to establish vessel carriers, shipping 
agencies or freight forwarding branches require permission from the Ministry of Transportation and Communications.  We would appreciate it if Chinese Taipei could provide mo re information on the 
said permission, in particular the requirements and procedures for obtaining such permission. 
QUESTIONS BY CANADA
 
Report by the Secretariat (WT/TPR/S/165)  
Part III. Trade Policies and Practices by Meas ure, (2) Measurements Directly Affecting 
Imports, (v) Import prohibitions, restrictio ns, and licensing, page 40, paragraph 46: 
The Secretariat Report says that as of early Febr uary 2006, 56 items are prohibited from importation 
into Chinese Taipei. These doe not include prohi bitions on cross-strait trade concerning some 
2200 tariff lines, which are governed under specific la ws and regulations concerning cross-strait trade. 
1. Can Chinese Taipei explain the basis on which products are included on the list of 
prohibitions on cross-strait trade? 
Part III. Trade Policies and Practices by Measu re, (2) Measures Directly Affecting Imports, 
(v) Import prohibitions, restrictions a nd licensing, page 41, paragraph 48:  
The Secretariat Report states that the List of Commodities Assisted by Customs for Import 
Examination includes drugs, medicines, and medical devices, that these can be imported only if 
approved by the relevant authorities in charge of various sector-specific laws, and notes that according to the authorities these requirements are not generally trade restrictive. 
Canadian exporters of these products have iden tified lengthy regulatory approval processes that 
exceed international norms. 
2. Is Chinese Taipei considering the establis hment of a mechanism to accelerate approvals? 
3. Does Chinese Taipei recogni ze some foreign regulatory systems in these sectors and not 
others? 
Part III. Trade Policies and Practices by Measu re, (2) Measures Directly Affecting Imports, 
(vii) Government Procurement, page 43, paragraph 57: 
The Secretariat Report states that although Chinese Ta ipei has reached agreem ent on the substance of 
its terms of accession to the Agreement on Government Procurement, the formal decision on 
accession has yet to be taken.  WT/TPR/M/165/Add.1 
 Page 31 
 
 
4. Could Chinese Taipei clarify the ways in whic h its current practices are not consistent with 
the Agreement on Government Procurement?   
Part III. Trade Policies and Practices by Measu re, (4), Measures Affecting Production and 
Trade, (iv) Standards and other technical requirements, (b) Sanitary and phtytosanitary 
arrangements, pages 56 – 57, paragraphs 104 – 108: 
At the May 2005 OIE (World Organization for An imal Health) session, the OIE established a new 
science-based recommendation that "deboned skeletal muscle meat from cattle 30 months of age or 
less" should be eligible for trade from all countries regardless of their BSE status.   
5. Why has Chinese Taipei not recognized this OIE standard and continues to ban Canadian 
boneless beef products from cattle under thirty months of age? (paragraphs 104 and 106)  
Although Chinese Taipei is not a member of the In ternational Plant Protection Organization (IPPC), 
they are members of the WTO and subject to th e obligations contained in the SPS agreement, 
including those relating to IPPC standards.    
6.  Can Chinese Taipei explain its position on equivalency between the economic region's 
phytosanitary measures and Internationa l Standards adopted by the IPPC?   
7.  Can Chinese Taipei clarify its position w ith respect to International Standard for 
Phytosanitary Measures (ISPM) No. 08: Determination of pest free status and respecting the Principles of Plant Quarantine and International Trad e?  Section 3.1.2 of this standard prescribes that 
"if there are no records of the presen ce of the pest in the general surveillance data of an area, it may be 
reasonable to conclude that a pest is or has alwa ys been absent." Does Chines e Taipei consider this 
standard as equivalent to their domestic phytosanitary  measures and would they apply?  If not, what is 
the reason for not adhering to the noted standard?  
Part III. Trade Policy and Practices by Measure:  (4) Measures Affecting Production and Trade; 
(v)  Intellectual property rights, (d) Trade marks and geographical indications, page 59, paragraph 123:  
The Secretariat Report notes that Chinese Taipei promulgated the Operational Points on Application 
for Registration of GIs as Certification Marks  on 2 September 2004 to recognize geographical 
indications and generate a GI protection list.   
8. Can Chinese Taipei provide furt her information with respect to how this system operates? For 
example, what criteria are used to examine and allow registration? What level of protection is conferred to GIs? 
Part III. Trade Policy and Practices by Measure:  (4) Measures Affecting Production and Trade; 
(v) Intellectual property rights, (g) Compulsory licensing, page 60, paragraph 126:  
The Secretariat Report notes that to date there h as been one case of compulsory licensing in Chinese 
Taipei, that this has been appealed, and that the appeal has been in process since August 2004. 
9. What is the normal expected length of  an appeal process in a case such as this? 
Part III. Trade Policy and Practices by Measure,  (4) Measures Affecting Production and Trade, 
(v) Intellectual property rights, (i) Enforcement of IPRs, page 61, paragraph 131:  
The Secretariat Report notes that since Chinese Taip ei’s accession to the WTO, it has adopted various 
measures to strengthen the enforcement of IPR legislation.  WT/TPR/M/165/Add.1 
Page 32  
 
10. Would Chinese Taipei provide more details on the resources used in practice to fight 
intellectual property violations? 
Part III. Trade Policy and Practices by Measure,  (4) Measures Affecting Production and Trade, 
(v)  Intellectual property rights, (i) Enforcement of IPRs, page 61, paragraph 132:  
The Secretariat Report says that the total number of adjudicated cases fell from 2,797 to 2,581 
between 2004 and 2005.  
11. Can Chinese Taipei please provide more info rmation on the average time taken between the 
first proceeding until the day that the Court rende rs a decision?  Does th e average time differ 
depending on whether it is a civil or a criminal proceeding? 
Part IV. Trade Policy by Sector (3) Energy and Utilities (ii) Petroleum, petroleum products, and 
natural gas, page 70, paragraph 28 and CT Re port (WT/TPR/G/165), Part III. Economic and 
Trade Policy Regime, (2) Implementation of A ccession Commitments, (iii) Services, page 13, 
paragraph 58: 
Paragraph 28 of the Secretariat Report notes that th e sector’s major supplier for marketing petroleum 
is a state-owned enterprise (CPC).  Footnote 22 highl ights that the establishment of privately operated 
gas stations for the marketing of gasoline and diesel oil was allowed in 1987.  Finally, paragraph 28 
also indicates the governments' intention to libera lize the petroleum sector, including privatization of 
the state-owned enterprise. 
Paragraph 58 of Chinese Taipei’s Report mentions di stribution services as part of Chinese Taipei's list 
of priority sectors for the current round of negotia tions. Chinese Taipei has no commitment in Retail 
sale of motor fuel (CPC 613) under the GATS. 
12. Are foreign service providers offered national treatment in the establishment / operation of 
gas stations?  
13. Are there limitations in the num ber of foreign service suppliers?   
14. Are there restrictions on foreign ownership?  15. Are there other conditions restricting the est ablishment or management of gas stations by 
foreign service providers? 
Part IV. Trade Policies by Sector, (5) Serv ices, (i) Features, page 75, paragraph 49: 
The Secretariat Report says that Chinese Taipei main tains market access limitations with respect to 
telecommunications and more specifically, sate llite communications. Canada notes from consulting  
Chinese Taipei’s GATS Schedule of Specific Commitments  for that satellite-based mobile 
communications services for mode 1 are subjected to  commercial arrangements with Chinese Taipei 
licensed operators. 
16. Can Chinese Taipei explain the type of co mmercial arrangements i nvolved and explain the 
regulations for these commercial arrangements?  
17. What is the process if a company wants to challenge these arrangements?    WT/TPR/M/165/Add.1 
 Page 33 
 
 
Part IV. Trade Policies by Sector, (5) Serv ices, (i) Features, page 76, paragraph 53: 
The Secretariat Report notes that Chinese Taipei intends  to treat some services sub-sectors, including 
telecommunications, as "emerging industries" as defined under the Statute for Upgrading of 
Industries  and to enable businesses in these sectors to be  eligible for investment incentives under the 
Statute for the Development of SMEs .  
18. Can Chinese Taipei provide information on which telecommunication sub-sectors are covered 
by this initiative and how they are covered? 
Part IV. Trade Policies by Sector, (5) Services; ( ii) Financial Services, (c) Securities, page 79, 
paragraph 70: 
The Secretariat Report says that the regulation on securities investment by non-Chinese Taipei 
institutional investors, under which securities i nvestment per company was limited to US$3 billion, 
was abolished on 30 September 2003.  It further says that non-Chinese Taipei investors in the Chinese 
Taipei securities market are now classified into tw o types:  institutional investors and individual 
investors;  institutional investors are subject to  a US$5 million investment quota, while individual 
investors are not subject to a quota.  
Canada recognizes the efforts of Chinese Taipei to simplify the regulation of securities investment by 
non-Chinese Taipei institutional investors.  However,  the footnote to paragraph 70 indicates that 
18 companies listed on the stock exchange are s ubject to non-Chinese Taipei ownership limits. 
19. Can Chinese Taipei clarify whether these limits  are in fact complete prohibitions on foreign 
ownership of these companies? 
20. Can Chinese Taipei provide information in which sectors these companies operate?   
21. Can Chinese Taipei please explain the reason for these ownership limits and indicate whether 
there are plans for the restrictions  to be relaxed in the future? 
Part IV. Trade Policies by Sector, (5) Services,  (iii) Telecommunications and postal services, 
page 81, paragraph 74: 
According to the Secretariat report, even though Chunghwa Telecom has been privatized, its share in 
total revenues from local network services is about 98% (2005).1  Consequently, competition in the 
local call and domestic leased circuit appears sluggish ; the average tariff rate for local calls (peak 
period) declined slightly from NT$0.34 per minute in 1997 to NT$0.32 per minute in 2005.   
22. Can Chinese Taipei explain why competition in the local call and domestic leased circuit 
appears sluggish? Do the Chinese Taipei authorities ha ve any plans to further promote competition in 
this sector? 
Part IV. Trade Policies by Sector, (5) Services,  (iii) Telecommunications and postal services, 
page 81, paragraph 76: 
The Secretariat Report mentions that a new regulator for telecommunications was established on 
February 22, 2006.  Chinese Taipei h as committed itself to implementing the Telecommunication 
Reference Paper , including the establishment of an independent regulator.  
                                                      
1 The Chunghwa Telecom's share in terms of traffic hours was 29.4%, 83.2% and 57.0% for mobile, 
long-distance, and overseas services, respectively, in December 2005.  Its ma rket share in terms of subscribers 
was 36.8% for mobile, 97.4% for long-distance and 67.8% for broadband servi ces, in December 2005. WT/TPR/M/165/Add.1 
Page 34  
 
23. Can Chinese Taipei explain what specific m easures have been taken to ensure that this 
regulator remains independent? 
Part IV. Trade Policies by Sector, (5) Serv ices, (v) Tourism, page 84, paragraph 95: 
The Secretariat Report notes that Chinese Taipei ha s entered into bilatera l agreements on tourism 
cooperation with Abu Dhabi, Para guay, Singapore, and the Central American Council of Tourism.  
24. What factors are taken into consideration by Chinese Taipei in deciding whether to enter into 
such tourism cooperation agreements?  
Report by the Separate Customs Territory  of Taiwan, Penghu, Kinmen and Matsu 
(WT/TPR/G/165)  
Part II. Economic Developments: 2002-2005, page 3, paragraph 11: 
Chinese Taipei notes in its report that inward i nvestment in 2005 reached US$ 4.2 billion, with 
growth in both the manufacturing and services sector. 
Canadian companies investing in the ICT sector, as  well as those sub-contracting to Chinese Taipei 
OEMs and ODMs, report that their ability to incr ease their use of Chinese  Taipei as a regional 
business hub is being hampered by the difficulty of  travel for their mainland employees and others 
who are nationals of the PRC.  
25. Can Chinese Taipei explain if there are any special regulations governing the issuance of 
visas for PRC business visitors as well as any plan s for streamlining these processes, especially in 
light of Chinese Taipei’s commitment to reducing trade facilitation costs? 
Part III. Economic and Trade Policy Regime, (1) Adjustment for Economic Transformation, 
page 4, paragraph 16: 
Chinese Taipei’s Report refers to "Guidelines and Action Plans for Service Industry Development" 
that intend to advance 12 strategically important service sectors: finance; logistics/distribution; 
information media; medicine and health care; ma npower training, manpower placement and property 
management; tourism and recreation;  cultural and creative services; design; information; research and 
development; environmental protecti on; and engineering consulting.  
26. Can Chinese Taipei please elaborate on the c ontent of these guidelines and action plans, and 
comment on the extent to which these guidelines a nd action plans have been successful to date? 
Part III. Economic and Trade Policy Regime, (2 ) Implementation of Accession Commitments, 
(ii) Non-Tariff Measures, page 6, paragraph 26: 
Chinese Taipei notes in its Report that its SPS m easures "are in complian ce with the relevant 
international standards, recomme ndations and guidelines developed by  ... the World Organization for 
Animal Health (OIE) ... based on scientific principles and risk assessment."   
27. Chinese Taipei continues to ban all Canadian  beef products, including protein-free tallow for 
animal feed, all of which may be safely traded under OIE Guidelines.  Could Chinese Taipei please 
clarify the statement in its report in light of this ban?  
28. Chinese Taipei maintains that it must complete a detailed risk assessment of Canadian beef 
before it will make a decision on permitting imports  of any Canadian beef products. Under what  WT/TPR/M/165/Add.1 
 Page 35 
 
 
conditions does Chinese Taipei insist on undert aking detailed product risk assessments even 
when OIE or other international guidelines clearly indicate that trade in a product is safe?  
29. Normally, how long does Chinese Taipei require  to complete an SPS-related product risk 
assessment, and what are the steps following completi on of the risk assessment in order to implement 
any required changes to Ch inese Taipei's SPS requirements?  
30. Do the SPS-related risk assessments that Chinese Taipei undertakes normally apply to a 
specific type of product, without regard to an y specific customs territory or place of origin?  
31. Under what conditions does Chinese Taipei requi re that an SPS-related country-specific risk 
assessment be undertaken, the results of which w ould not necessarily extend to similar products 
originating in other Member territories? 
QUESTIONS BY TURKEY  
II. TRADE POLICY REGIME:FRAMEWORK AND OBJECTIVES 
(4) TRADE AGREEMENTS AND ARRANGEMENTS (ii) Regional and bilateral agreements,  paragraphs 18,19 
It is understood from the Secretariat Report that  in   addition to the Free Trade Agreement  entered 
into force between Panama and Chinese Taipei in 2004, and  the FTA  concluded with Guatemala, 
there are ongoing efforts to conclude FTAs with  some other South American countries including 
Nicaragua, Honduras and El Salvador. 
- Could Delegation of Chinese Taipei explain the reason of their special interest in 
this region of the world for concluding FTAs?  
- Are there intentions of launching FTAs with some countries in the other parts of 
the world ? 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION 
In the Secretariat Report, under paragraph 9, it is stated that "Nonetheless, various forms of 
assistance, including subsidies, are provided for agricultural fisheries and industrial products and 
activities". 
- Could you provide further information about the subsidies provided for the 
agricultural, fisheries and industrial products and activities? 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) MEASURES DIRECTLY AFFECTING IMPORTS (viii) State-trading activities, paragraphs 66, 67 
Secretariat Report mentions that state-trading involves only rice and banknote paper. 
- Are there any other areas state-trading is being made? 
- On the basis of the footnote 54 on page 46 of the Secretariat Report, we would 
like to learn the current situation of ex clusive rights previously granted to 
relevant government agencies as so notified under G/STR/N/10/TPKM for 
importing salt, tobacco and alcohol products. WT/TPR/M/165/Add.1 
Page 36  
 
IV. TRADE POLICIES BY SECTOR 
(2) AGRICULTURE (i) Overview, paragraph 7 (iii) Domestic measures and suppo rt programmes, paragraph  20 
The Secretariat Report states that the government ai ms to balance demand for and supply of food in 
Chinese  Taipei and that to meet these objectives farmers have been encoraged to switch from the 
production of rice to that of other crops. 
In this respect,  it is mentioned in the Report that   if farmers convert  their rice paddies to areas 
producing some other specific products such as beans etc. are paid per hectare. 
- Could Chinese Taipei Delegation inform us if this measure is being notified to 
the WTO and  within what kind of support  measures ? 
IV. TRADE POLICIES BY SECTOR 
(2) AGRICULTURE (ii) Border measures, paragraph 10 
It is noted at the Secretariat Report that tarif rate  quotas are applied mainly to agricultural products in 
Chinese Taipei, including rice, sugar, vegetables, fruits… etc. 
- Turkish Delegation is interested in learni ng if there is a plan to eliminate those 
TRQs, according to the Secretariat Report which are being distributed on the basis of level of imports in the previous  two years, open bidding and first come 
first served. 
PREGUNTAS DE COLOMBIA
 
Parte III.  POLITICAS Y PRÁCTICAS COMERCIALES POR MEDIDAS  Numeral 1)  INTRODUCCIÓN.  Párrafo 12.  Se sostiene que ciertas actividades como los carteles 
de exportación e importación pueden quedar exentos de  la aplicación de la Ley de comercio Leal si 
así lo aprueba la Comisión del Comercio Leal.  
¿Qué condiciones tiene en cuenta dicha Comisión pa ra eximir de la aplicación de ésta ley a una 
actividad?  
Numeral 2)  MEDIDAS QUE AFECTAN DIRECTAMENTE A LAS IMPORTACIONES 
Literal i)  Registro, documentación y otros trámites 
A) En el párrafo 15 se comenta que el Taipei Chino ha aplicado una ser ie de sistemas para 
simplificar el despacho de aduanas.  
 ¿Qué tipo de sistemas utiliza y ha utilizado? ¿Podría compartir su experiencia con los demás 
países miembros?    
B) En el párrafo 15 se hace mención a la posibilidad  de realizar pagos de derechos y cargas de 
manera consolidada.  
 ¿Esta opción es únicamente para los usuarios autorizados? ¿Cuáles son los requisitos para 
conferir a un usuario la calidad de autorizado? ¿Cuál es el porcentaje de usuarios autorizados 
frente a los demás usuarios?     WT/TPR/M/165/Add.1 
 Page 37 
 
 
C) ¿Cuál es el porcentaje de declaraciones de importación que son sometidas al sistema de 
control posterior? ¿Cuál es el porcentaje de declaraciones que una vez han sido sometidas al 
control posterior deben ser corregidas y dan lugar a la imposición de sanciones?    
D) ¿Existe un sistema de revisión y apelación que le permita al usuario reclamar ante la 
administración aduanera en los casos que así  lo considere pertinente? ¿De existir la 
posibilidad de apelar la decisión de la admini stración aduanera, ese procedimiento lo conoce 
un funcionario independiente de  quien adopto la decisión?  
Literal ii)  Valoración en aduana s y normas de origen.  Párrafo 17.   Se menciona la existencia de 
una base de datos de valoración que permite det ectar los casos de "infravaloración" en las 
declaraciones de los importadores. Teniendo en cuenta  que el Taipei Chino adquirió el compromiso 
de aplicar plenamente el Acuerdo de  Valoración Aduanera de la OMC  
¿Podrían compartir su experiencia con los de más países miembros y exponer algunos datos 
estadísticos al respecto?  
Literal iii)  Aranceles. 
A) En el párrafo 29 se afirma que: "La progresividad arancelaria da lugar a un sesgo 
contra las importaciones de productos más elaborados y proporciona en consecuencia un nivel efectivo de protecci ón a los artículos elaborados más alto que 
el tipo nominal.  En consecuencia, de no aplicarse el SGP u otras preferencias, la progresividad arancelaria puede obstaculizar  la industrialización de los países en 
desarrollo y los países menos adelantados que tratan de exportar productos de 
mayor valor añadido al Taipei Chino."  
¿Qué medidas ha tomado o piensa tomar el  Taipei Chino para contrarrestar la 
progresividad arancelaria y evitar que se obstaculice el acceso de los países en desarrollo y menos adelantados?   
B) En el párrafo 32 se menciona que: la alteración del " entorno operacional razonable" 
da lugar a que el Ministerio de Hacienda ajuste los derechos de aduana de manera 
extraordinaria en el Taipei Chino o en Ultramar.  
¿Qué se entiende por "entorno operacional razonable" ?  
Literal iv)  Otras cargas aplicadas a las importaciones. 
A) En el párrafo 39 se afirma que los derec hos de aduana y los impuestos de consumo 
sobre las materias primas son reintegrables.  
¿Podría explicarse en que condiciones tales de rechos e impuestos son reintegrables?  
B) Dentro de las cargas aplicadas a las importaciones se hace mención al impuesto sobre 
las transacciones comerciales.  
¿Podría ampliarse la información sobre los elementos de ésta obligación tributaria: 
hecho generador, base gravable y tarifa?  
C) De acuerdo al párrafo 43, la aduana pu ede percibir derechos por algunos servicios, 
entre otros, por el derecho de supervisión.  WT/TPR/M/165/Add.1 
Page 38  
 
¿Éste derecho hace referencia al pago por los servicios prestados por la aduana 
cuando la carga debe ser sometida a examen físico y documental?  
Literal vii)  Contratación pública. 
A) Podrían explicar en forma detallada ¿En qué consiste una contratación pública en el 
marco de un "Programa de Cooperación Industrial"?, como el señalado en el 
párrafo 63.  En especial, sería importante conocer si este tipo de programas está 
dirigido a la contratación de ciertos bienes o servicios, y si los contratos son celebrados por un determinado grupo de  entidades. Adicionalmente, sería 
conveniente que nos presentaran algunos ej emplos de contratos enmarcados en 
Programas de Cooperación Industrial. 
B) El mismo párrafo 63 señala que las preferencias a proveedores locales pueden llegar 
hasta el 3%.  Sin embargo, se entiende que  dado que la Ley de Contratación Pública 
que autoriza la aplicación de estas preferencias entró en vigencia en 1999, todavía no se ha reglamentado la aplicación de éstas, y por lo tanto las entidades no las incluyen en sus contrataciones. Si esto es correcto, por favor confirmar si existe un proyecto 
para reglamentar las preferencias. De existir  el proyecto, por favor explicar cuándo y 
cómo será la aplicación de las éstas. 
Numeral 4)  MEDIDAS QUE AFECTAN A LA PRODUCCIÓN Y EL COMERCIO 
Literal v)  Derechos de propiedad intelectual a) Situación general 
Párrafo 110.  Se menciona que en años recientes el Taipei Chino ha modificado sustancialmente sus 
principales leyes sobre los derechos de propiedad in telectual.  La Oficina de la Propiedad 
Intelectual, establecida en 1999 y dependiente del Mi nisterio de Asuntos Económicos, se encarga de 
la formulación de las políticas relacionadas con lo s derechos de propiedad intelectual, ente otros 
asuntos.   
¿Cómo es el funcionamiento de la Oficina de la Pr opiedad Intelectual como entidad encargada de la 
formulación de las políticas relacionadas con los derechos de propiedad intelectual?  
c) Patentes 
A) Párrafo 117.  Las modificaciones más recientes de la Ley de Patentes entraron en vigor el 
1ºde julio de 2004.  Estas modificaciones se referían a lo siguiente: normas relativas al 
documento de especificación;  aclaración de l as condiciones para rechazar una patente;  
anulación de procedimientos de opos ición;  derechos anuales de pa tente;  derechos exclusivos 
a prevenir ofertas de venta y derogación de responsabilidades penales por los modelos de utilidad y las patentes de diseño.   
¿Cuáles fueron las razones que llevaron al Taip ei Chino a promulgar una ley que anula los 
procedimientos de oposición en las patentes?   
B) Párrafo 120. Las obtenciones vegetales se prot egen en virtud de la Ley de Obtenciones 
Vegetales y Semillas de Plantas.  Esta ley ab arca las obtenciones vegetales que ofrecen las 
características de novedad, carácter distinti vo, uniformidad y estabilidad, así como una 
denominación adecuada de la obtención vegetal.   
¿Tiene la Ley de Obtenciones Vegetales excepciones a la protección?   WT/TPR/M/165/Add.1 
 Page 39 
 
 
f) Secretos comerciales 
Párrafo 125.  En el Taipei Chi no los secretos comerciales se protegen en virtud de la Ley de Secretos 
Comerciales, de 17 de enero de 1996;  los secretos  comerciales se definen como "cualquier método, 
técnica, proceso, fórmula, program a, diseño u otra información que pueda utilizarse en el curso de la 
producción, la venta o las operaciones".  La infracci ón de los secretos comerciales puede dar lugar a 
actuaciones civiles, como la destrucción de los productos objeto de la apropiación indebida.  Los 
datos de pruebas no divulgados están protegidos por la Ley de Asuntos Farmacéuticos desde el 5 de 
febrero de 2005.  Los plaguici das agrícolas se consideran secreto co mercial de conformidad con las 
Normas de las Pruebas Toxicológicas de los Ag roplaguicidas.  Los secretos comerciales no parecen 
estar protegidos si el país de origen de su propietario no ha firmado un acuerdo bilateral sobre 
secretos comerciales con el Taipei Chino, o no proporciona protección legal a los secretos 
comerciales de propiedad de personas del Taipei Chino.  No obstante, según las autoridades, los secretos comerciales están protegidos en el Ta ipei Chino de conformidad con el artículo 3 del 
Acuerdo sobre los ADPIC.   
¿Cómo funciona el tema de la reciprocidad en relación a la protección de algunas creaciones 
intelectuales? 
Literal vi)  Privatización de empresas de propiedad estatal 
A) ¿Qué criterios utilizan las autoridades pa ra aprobar o no la privatización de empresas 
de propiedad del Estado? 
B) Párrafo 136.  Se establece que los fondos resultantes de la privatización se entregan al 
Tesoro a título de recurso financiero para  los gastos de capital y de fondo para 
indemnización de pérdidas especiales, incluida la compensación de los empleados.   
  ¿Qué se entiende por pérdidas especiales? 
Literal vii)  Política de competencia 
Párrafo 139.  Se establece que la Ley de Comerc io Leal prohíbe la fijación de precios, la 
manipulación de las ofertas, la distribución de l mercado y otras "acciones concertadas".   
¿Existen casos, sectores y/o productos en los que se haya comprobado la realización de "acciones 
concertadas" por parte de las empresas, donde ha ya sido necesaria la aplicación de la Ley de 
Comercio Leal? 
Parte IV.  POLITICAS COME RCIALES,  POR SECTORES 
Numeral 2)  AGRICULTURA 
Párrafo 7.  (…) Además la Ley de  Desarrollo de la Agricultura es el fundamento jurídico de los planes 
oficiales de establecimiento de parques de tecnología agrícola. 
¿Podrían proporcionarnos más detalles sobre el obje tivo de los parques de tecnología agrícola? Su 
estructura administrativa?, ¿Qué tipo de incentivos fiscales o tributarios reciben las personas o empresas que allí se ubiquen?  ¿La ubicación de estos pa rques es en zonas rurales o urbanas?  ¿Qué 
tipo de infraestructura física proporciona el Esta do al aprobar la creación de dichos parques? WT/TPR/M/165/Add.1 
Page 40  
 
Numeral 4) INDUSTRIAS MANUFACTURERAS 
Literal iii) Medidas de apoyo interno 
Párrafo 40. (…)  Además las autoridades propor cionan préstamos subvencio nados para pequeñas y 
medianas empresas cualificadas, comercialización de productos y proyectos de construcción. 
¿Cuáles son los criterios para que las pequeñas y medianas empresas puedan acceder a estos 
préstamos subvencionados?  ¿Cuáles son las c ondiciones financieras de tales préstamos?  
Adicionalmente nos gustaría saber ¿Cuáles han si do los resultados logrados con estos préstamos 
subvencionados? 
Numeral 5) SERVICIOS 
Literal i)  Características. 
A) Párrafo 52. (...) Las entradas de inversion es directas están restringidas (o han de ser 
aprobadas previamente) en los sectores del transporte marítimo, transporte aéreo (incluidos los servicios de transporte aéreo de carga), servicios portuarios, empresas de tipo I en el sector de las telecomunicaci ones, financiación y financiación auxiliar, 
seguros, servicios jurídicos y contables, servicios técnicos para la arquitectura y la 
ingeniería, servicios educacionales y radiodifusión y televisión. 
¿Qué significan empresas de tipo I? 
B) Párrafo 53. Las autori dades tienen el propósito de considerar "industrias 
incipientes" los siguientes s ubsectores de servicios, con arreglo a la definición de la 
Ley de Mejora de las Industrias, y perm itir que las empresas de estos sectores 
puedan beneficiarse de los incentivos a la inversión previstos en la Ley de Desarrollo 
de la Pequeña y la Mediana Empresa:  empresas financieras, distribución, 
telecomunicación y medios de comunicaci ón, atención de la salud, formación, 
turismo, servicios culturales y de creación,  diseño, información, I&D, protección 
ambiental y servicios de ingenieros consultores  
Al considerarse esos sectores de servicios como "industrias incipientes" por la 
legislación de Taiwán, ¿Se entiende que hay otorgamiento de incentivos de manera 
discriminatoria únicamente para empresas o prestadores de servicios nacionales y no a extranjeros? ¿Cuáles son esos incentivos discriminatorios y bajo que condiciones se 
aplican? 
Literal ii)  Servicios financieros 
a) Banca 
A) Párrafo 58. En la actualidad, el sector público posee más del 50 por ciento de los 
activos bancarios totales.  Cuatro banc os son de propiedad exclusiva del sector 
público;  está previsto que todos ellos se pr ivaticen (o sea, que la participación del 
sector público se reduzca a menos del 50 por ciento).  En abril de 2005 se privatizó un banco cooperativo;  el sector público posee actualmente alrededor del 48 por 
ciento de las acciones del banco . 
¿En qué fecha específica se tiene prevista  la privatización de los bancos que 
actualmente son de propiedad estatal?  WT/TPR/M/165/Add.1 
 Page 41 
 
 
¿El sector público tiene interés en seguir par ticipando en la propiedad de esos cuatro 
bancos que van a privatizarse? 
B) Párrafo 60. El establecimiento de sucur sales de bancos no pertenecientes al Taipei 
Chino está sujeto al reglamento aplicable  a las sucursales bancarias y oficinas de 
representación que no sean del Taipei Chi no.  Los criterios para aprobar las 
solicitudes de establecimiento son los siguien tes:  que los solicitantes formasen parte, 
en lo relativo a su capital o a sus activos, de  los 500 primeros bancos del mundo en el 
año anterior a la presentación de la solicitud;  que los solicitantes hubiesen efectuado transacciones por valor de más de 1.000 millones de dólares EE.UU. con bancos del Taipei Chino en los tres años civiles ante riores a la solicitud, y que los solicitantes 
destinaran un mínimo de 150 millones de dólares NT de capital de operaciones a la 
primera sucursal, y de 120 millones de dólares NT a cada nueva sucursal. 
¿Qué actividades pueden desarrollar las oficinas de representación? ¿Las sucursales de bancos están autorizadas para operar con capital incorporado en el 
país o el capital puede estar apalancado con el de la casa matriz? 
b) Seguros Párrafo 63. A finales de 2005 había 55 compañías de  seguros en funcionamiento;  26 de ellas se 
dedicaban a seguros distintos del seguro de vida, 9 de las cuales eran filiales de compañías no 
originarias del Taipei Chino, y 29 a los seguros de vida, de las cuales 8 tampoco eran del Taipei 
Chino.  El número de estos aseguradores present es en el Taipei Chino, que en 2000 era de 
27 (11 empresas de seguros distin tos del seguro de vida y 16 de se guros de vida) ha disminuido.  
El capital desembolsado mínimo es de 2.000 millon es de dólares NT (alrededor de 57 millones de 
dólares EE.UU.), y de 50 millones de dólares NT (1,4 millones de dólares EE.UU.) para una sucursal 
de una compañía de seguros constituida en ultramar. 
¿Cuáles son los factores que explican la dismi nución del número de aseguradores presentes en el 
Taipei Chino? 
¿Las sucursales de compañías de seguros están auto rizadas para operar con capital incorporado en el 
país o el capital puede estar apalancado con el de la casa matriz? 
Literal iii) Telecomunicaciones 
Párrafo 71.  En 2004 los ingresos fiscales deri vados de los servicios de telecomunicaciones 
ascendieron a 369.000 millones de dólares NT (3,6 por  ciento del PIB).  El principal instrumento 
jurídico que regula las comunicaciones en el Taip ei Chino es la Ley de Telecomunicaciones.  El 
Ministerio de Transporte y Comunicaciones determ ina las políticas aplicables en este sector, y su 
Dirección General de Telecom unicaciones es responsable de la reglamentación del sector. 
¿Cuál es el régimen aplicable a los servicios de valor añadido?  
¿Existen diferencias regulatorias entre aquellos que prestan estos servicios sobre instalaciones propias 
y aquellos que no poseen instalaciones?  
¿Existe alguna restricción en cuanto a Acceso a Merc ados o Trato Nacional para la prestación de estos 
servicios por parte de operadores extranjeros? 
¿Existe alguna regulación especial para los prestador es de servicios de telecomunicaciones sobre la 
tecnología VoIP?  WT/TPR/M/165/Add.1 
Page 42  
 
¿Cómo definen los servicios VoIP? Son estos serv icios considerados como servicios de valor 
añadido? 
PREGUNTAS DE COSTA RICA
 
A. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS - MEDIDAS QUE AFECTAN DIRECTAMENTE A LAS IMPORTACIONES 
Contingentes
 
Se indica en la nota al pie de página 30, del párrafo   35 (página 42), que con el método de asignación 
anticipada, los contingentes se asignan de conformi dad con el orden de presentación de solicitudes, 
por sorteo o sobre la base de importaciones precedentes.  A este respecto: 
1. ¿Cuál es el criterio para utilizar uno u otro método?   
2. ¿Se encuentra establecido en alguna norma o reglamentación, o es una decisión discrecional 
del Ministerio de Hacienda optar por un método para un período determinado?  
3. ¿El método cambia para cada  producto, o un mismo contingente puede ser asignado bajo dos 
métodos? 
4. ¿Para los productos agrícolas se aplica úni camente el método de asignación anticipada o 
también el de subasta?¿ 
5. ¿Los solicitantes que no hayan realizado importaciones en período anteriores, pueden 
participar en la asignación bajo el sistema de asignación anticipada?  ¿Existe un porcentaje determinado al cual puedan tener acceso los nuevos solicitantes? 
6. ¿Existe algún período de devolución ordinaria de  contingentes sin utilizar, de manera que el 
beneficiario no sea penalizado con la  exigibilidad de la garantía? 
7. ¿Se dispone de algún método para asignar cuotas devueltas? 
8. ¿Cuál es la base para la fianza de utilizaci ón de contingentes?  ¿Es fija, o varía según el 
producto y el monto asignado? 
9. ¿Las prima pagadas por los interesados en participar en la asignación de contingentes por 
subasta, es devuelta a los participantes que no logran cuota de participación? 
10. ¿Además de la exigibilidad de  la garantía, hay implicaciones en asignaciones futuras, por no 
utilización de las cuotas asignadas? 
11. ¿Es requisito estar inscrito en la Oficina de  Comercio Exterior para solicitar asignación de 
contingentes, o es factible acceder a la asi gnación y después proceder a la inscripción? 
Contratación pública
 
12. ¿Cómo se garantiza el principio de transparencia en una licitación selectiva?  13. ¿Cuáles son los plazos máximos para la presentación de ofertas en las distintas modalidades 
de contratación?  WT/TPR/M/165/Add.1 
 Page 43 
 
 
Exenciones arancelarias y concesiones  
En el párrafo 32 (página 41) se indica que el " Ministerio de Hacienda está autorizado a ajustar los 
derechos de aduana para hacer frente a una situación económica "extraordinaria" en el Taipei Chino 
o en ultramar, para ajustar la oferta de me rcancías, o para establecer un "entorno operacional 
razonable" sin obtener la aprobación previa del legislativo.2  Se permiten ajustes dentro del 50 por 
ciento del tipo de derecho o la can tidad legales, y pueden aplicarse hasta  un máximo de un año.  Con 
este procedimiento el Ministerio de Hacienda reduj o los derechos de aduana sobre los fertilizantes 
del 2 por ciento al 1 por ciento en 2004 (cuadro III.4)." 
14. ¿Esta posibilidad de ajustar los derechos de aduana está disponible para todos los productos 
del arancel?  
15. ¿Los derechos se pueden aj ustar también hacia arriba? 
16. ¿Cuando se ajusta un arancel de esta manera en qué medio se publica la decisión? ¿En un 
diario oficial, periódicos de circulación nacional? 
Medidas antidumping y salvaguardias  
En el párrafo 52 se señala que los procesos de  aplicación de derechos antidumping o medidas 
compensatorias pueden iniciarse por solicitud escrita de los productores o de asociaciones 
comerciales, industriales, laborales o de agrícol as afines o de otras organizaciones legales.   
17. ¿Bajo su legislación doméstica procede que asociaciones laborales tengan legitimidad activa 
para presentar una solicitud de inicio en un proced imiento antidumping? ¿Cuál es el alcance de la 
figura de "otras organizaciones legales?  
En el párrafo 55 (salvaguardias) se señala que "L a Ley de Aduanas establece que las autoridades 
pueden tomar represalias contra cualquier trato di scriminatorio de las mercancías exportadas del 
Taipei Chino o transportadas en medios de trans porte del Taipei Chino".  De conformidad con las 
normas de la OMC, una medida de salvaguardia consiste es el resulta do de un procedimiento 
administrativo para inhibir importaciones masivas que causan o amenazan causar daño a un sector productivo nacional.  
18 ¿Por qué se define la imposic ión de una medida de salvaguard ia como la potestad de "tomar 
represalias contra cualquier trato discriminatorio"?  
Registro, documentación y otros tr ámites (procedimientos aduaneros
) 
En el párrafo 15 se señala: Desde 2001 se aplica un sistema si mplificado de despacho para las 
consignaciones urgentes, con el que  los derechos pueden abonarse en línea3, y un sistema de 
auditoría posterior al despacho, que permite la puesta en circulación de determinados envíos antes 
de que se proceda al examen dete nido de los documentos y los libros contables;  este procedimiento 
entró en vigor en diciembre de 2001.  Desde 2005 se practica la consolidac ión del pago de derechos 
y cargas, con la que los importadores autorizados pu eden pagar los derechos en plazos mensuales y 
                                                      
2 Artículo 71 de la Ley de Aduanas. 
3 Las consignaciones urgentes se limitan a los enví os que no sean de productos básicos controlados, 
contrabando, artículos que infringen los derechos de propiedad intelectual, animales/plantas vivos y fauna y 
flora silvestres conservados y sus productos;  están incluidos en esta categoría los envíos de un peso en bruto por 
paquete no superior a 70 kg. WT/TPR/M/165/Add.1 
Page 44  
 
las cargas se someten a exámenes menos minuciosos
4."  La nota al pie de página número 6 indica 
algunos ejemplos de mercancías que califican como  consignaciones urgentes y en consecuencia se 
pueden beneficiar de un procedimie nto aduanero simplificado.  Con relación a este tema, Costa Rica 
desea conocer los siguientes aspectos: 
19. ¿Qué se considera como productos básicos controlados? ¿Se refiere a cualquier mercancía 
sujeta a controles de tipo sanitario o fitosanitario? 
20. ¿Cuáles son los parámetros que utilizan pa ra identificar a priori cuales productos no son 
sujetos de contrabando o cuáles artículos no infringen los derechos de propiedad intelectual, para 
poder excluirlos de este procedimiento si mplificado de consignaciones urgentes?  
21. Es interesante la distinción de consignacion es urgentes en razón de su peso bruto. En otros 
países se tienen procedimientos similares simplificados para los embarques pero en razón de su valor 
en aduana.  ¿Podrían comentar qué razones los lleva n a hacer la determinaci ón en función del peso 
bruto y no del valor? 
22. Con respecto al procedimiento de consolidaci ón de pago de derechos y cargas establecido en 
el año 2005, ¿cuál ha sido la experiencia durante este corto plazo? ¿Consideran que ha agilizado en 
alguna medida el despacho en términos de tiempo o es más bien una ventaja financiera para los 
importadores?  ¿Se les requiere a los importadores rendi r una garantía que cubr a los impuestos que se 
percibirán en el plazo de un mes?  ¿Cuáles son lo s beneficios que ha experimentado la administración 
al aplicar este procedimiento? 
En el párrafo 16 se señala que si "la aduana cree que existe una infracción del reglamento, puede 
inspeccionar las cargas importadas o exportadas en  virtud de la Ley de Aduanas o de las leyes y 
reglamentos pertinentes, incluida la Ley de Repres ión del Contrabando.  Si se sospecha que en una 
declaración de las cargas import adas o exportadas se ha infringido la ley, la aduana puede imponer 
sanciones tales como advertencias,  multas y suspensión o anulación de los privilegios contemplados 
en la Ley de Aduanas.5  Con relación a este punto, Costa Rica desea saber: 
23. Cuando se hace referencia a que se imponen san ciones ante una "sospecha" de la autoridad 
respecto a que en una declaración de las cargas importadas se ha infringido la ley, ¿se puede 
interpretar en el sentido de que no hay una reso lución  con fundamentos de hecho o derecho que 
justifique la aplicación de la sanción?  
- MEDIDAS QUE AFECTAN A LA PRODUCCIÓN Y EL COMERCIO 
Propiedad intelectual  
24. ¿Podría ampliar sobre cómo las condiciones de reciprocidad referidas no afectan el artículo 3 
del Acuerdo sobre los ADPIC en la protección de  los derechos de propiedad intelectual a no 
residentes? ¿En qué consisten estas condiciones de reciprocidad? 
                                                      
4 Entre enero de 2005 y septiembre de 2005 el 9 por ciento de las declaraciones de importación de 
carga aérea, y el 4,1 por ciento de las declaraciones de im portación de carga marítima, se hicieron con el sistema 
de despacho consolidado. 
5 Estos privilegios comprenden la transmisión de  datos electrónicos en línea y la declaración de 
importación/exportación, el despacho urgente de la consi gnación, el almacenamiento de  mercancías en depósito 
de aduanas y el pago de los derechos y cargas en plazos mensuales.  WT/TPR/M/165/Add.1 
 Page 45 
 
 
B. POLÍTICAS COMERCIALES, POR SECTORES 
Telecomunicaciones  
25. ¿En qué consiste la unificación de la administ ración de la reglamentación de los servicios de 
telecomunicaciones, radiodifusión e información en el mercado?  ¿Existe legislación en vigencia, o en elaboración,  en esta materia que pueda ser consultada?  
26. ¿La regulación tarifaria de los servicios de telecomunicaciones en el Taipei Chino es la regla 
o la excepción? ¿existe alguna consideración del c oncepto de competencia efectiva a efectos de 
definir cuándo procede esa regulación?  
27. ¿Qué metodología de regulación tarifaria se apli ca en el Taipei Chino para los servicios de 
telecomunicaciones?  
Seguros
 
28. ¿Corresponde a la Comisión de Supervisión Fina nciera la supervisión del mercado de seguros 
del Taipei Chino?  
29. ¿Cuál es la estructura de dicha Comisión? ¿La supervisión del mercado de seguros es 
especializada o se comparte con otros mercados?  
30. ¿A qué se debe la disminución en el número  de aseguradores presentes en el Taipei Chino? 
31. ¿Existen entidades aseguradoras de capital púb lico en el Taipei Chino? ¿Qué tipo de 
regulación se les aplica?  
PREGUNTAS ADDITIONNALES DE COSTA RICA  
- MEDIDAS QUE AFECTAN DIRECTAMENTE A LAS IMPORTACIONES Licencias de importación
 
En el párrafo 44 del Informe de la Secretaría se señala que en los últimos años que el número de 
partidas sujetas a las licencias de importación se ha reducido.   
32. ¿Cuánto de esta reducción se debe a los compromisos asumidos en el proceso de adhesión del 
Taipei Chino a la OMC?  ¿Esta reducción ha ido más allá de estos compromisos (liberalización unilateral)? 
- MEDIDAS QUE AFECTAN DIRECTAMENTE A LAS EXPORTACIONES 
En el Informe de Taipei Chino (párrafos 42 y 43 ), se señala que en 2003 se promulgó una Ley para el 
establecimiento y gestió n de las Zonas Francas. 
33. ¿Se otorgan subvenciones a las empresas instalad as bajo el régimen de zonas francas?  Si ese 
es el caso, ¿qué tipo de subvenciones? ¿cómo justifi ca el Taipei Chino su régimen de Zonas Francas a 
la luz de las disposiciones de la OMC, en pa rticular el Acuerdo sobre Subvenciones y Medidas 
Compensatorias? 
En el documento de la Secretaría  se mencionan varios incentivos vi gentes en el Taipei Chino a la 
inversión (incentivos fiscales, por ejemplo). WT/TPR/M/165/Add.1 
Page 46  
 
34. ¿Podría ahondar el Taipei Chino sobre su sistema de incentivos a la inversión?  ¿Existen otros 
incentivos además de los descritos en  el informe de la Secretaría?  
QUESTIONS BY THE REPUBLIC OF KOREA
 
I. TRADE POLICIES AND PRACTICES BY MEASURE 
Government procurement (WT/TPR/S/165, p. 43,  para. 59, p. 45, para. 62, WT/TPR/G/165, 
p. 14, para. 65)  
1. The Secretariat Report stat es that "According to the authorities, both domestic and non-
Chinese Taipei suppliers face the same requirement in tendering (page 43)", and notes that "By law 
government procurement must be conducted on a non-discriminatory basis, unless there is 'due proper 
cause'(page 45). 
 - Serious concerns have been raised regarding lack of transparency and arbitrary use of 
the 'due proper cause', resulting in discrim ination against certain WTO members.   
Please provide detailed explanation on th e 'due proper cause' and the criteria for 
determining the 'due proper cause' .  
2. Currently, all Korean companies are prohibite d from participating in the TRA's procurement 
procedures. Korea believes that this measure is in violation of MFN(Most Favored Nations) principle, 
and is against the spirit of the GPA(Government Pr ocurement Agreement), which Chinese Taipei is in 
the process of accession.    Korea also believes th at Chinese Taipei's conduct of excluding all the 
Korean companies from TRA's procurement procedur es because of the previous contract dispute 
incident with one of the Korean companies is against the WTO's Understanding on Rules and 
Procedures Governing the Settlement of Disputes (D SU), which prohibits th e unilateral retaliation 
against another WTO member. 
- Please provide the explanation on the case of  Chinese Taipei's conduct of excluding 
all Korean companies from TRA's procurement procedures. Also please provide any 
future plans that the Chinese Taipei govern ment has to rectify this situation.  
Rules of origin (WT/TPR/S/165, p. 27, para. 18, WT/TPR/G/165, p. 5, para. 20)  
3. The Chinese Taipei government often requir es Korean exporters to acquire the consular 
certification of approving the origin at the Ch inese Taipei Mission in Korea, even when the 
certification of the origin has been already acquire d from the relevant Korean authorities.  The items 
subject to such re-certification are apple, pear, oy ster, cabbage, marble, tile, and construction material. 
The Chinese Taipei government explains that su ch re-certification is required to prevent fraud 
importation of Chinese goods disguised as Korean products. It appears to be an unfair trade 
restrictive measure to make Kor ean exporters bear extra time a nd cost for re-certification of 
the origin.  
- Would the Chinese Taipei government have any future plans to address this 
situation?  
Tariff barriers  (WT/TPR/G/165, p. 5, para. 18)  
4. Local content requirements on imported autom obiles and motorcycles was scheduled to be 
removed with Chinese Taipei's accession to the WTO.   WT/TPR/M/165/Add.1 
 Page 47 
 
 
- Would the Chinese Taipei government explain whether the import regulations on 
motorcycles that has capacity of 150 CC or above have actually been removed as 
planned?  
Intellectual Property Rights (WT/TPR/G/165, p. 7, para. 30)  
5. It is recognized that foreign dramas, movies, and music are gaining more popularity in 
Chinese Taipei.  
- Would the Chinese Taipei government explain what measures has been undertaken to 
provide adequate protection of copyri ght on these foreign cultural products?  
II. TRADE POLICES BY SECTOR  
Standards and other technical requirements  (WT/TPR/S/165, p. 55, para. 100 ～101) 
6. What kind of ICT(Information & Communi cation Technology) products are subject to 
the current Declaration of Conformity scheme in Chinese Taipei? Also, pl ease provide any 
future plans for increasing the product coverage. 
7. Supplier's Declaration of Conformity (SDoC) procedures are categorized into 
4 different types according to the Guidelines of ITA Committee (G/IT/25). Which type is the current Declaration of Conformity scheme? 
8. Please provide the method of obtaining more de tailed information on the current Declaration 
of Conformity scheme. 
Export prohibitions, restrictions and li cencing (WT/TPR/S/165, p. 81, para. 76)
 
9. The Secretariat Report states that the new regulator was established in 
telecommunication sector in February 2006. Woul d the Chinese Taipei government provide the 
detailed information on the new regulator, including the difference in functions of the new and the 
existing regulators?  
QUESTIONS BY BRAZIL  
WT/TPR/S/165, II, (4), (ii), paragraph 19 
1. Does Chinese Taipei intend to notify to th e WTO its free-trade agreement recently concluded 
with Guatemala?  Could Chinese Taipei give furt her information about the agreement and its scope? 
2. Concerning the free-trade agreement with Nicaragua, could Chinese Taipei give further 
information about how negotiations are evolving? 
WT/TPR/S/165, III, (2), (iii), (d), paragraph 29 
3. It is mentioned in this paragraph that Chinese Taipei imposes tariff escalation in a number of 
sub-sectors, which in practice "impede the indu strialization of developing countries and LDCs 
seeking to export products with higher value-adde d to Chinese Taipei".  Could Chinese Taipei 
provide any comment and/or justification fo r the assertions made in this paragraph? WT/TPR/M/165/Add.1 
Page 48  
 
WT/TPR/S/165, IV, (2), (ii), paragraph 13 
4. Could Chinese Taipei give further informati on about the duty drawback system mentioned in 
this paragraph, as well as some clarification on wh y it would not be incompatible with WTO rules? 
FURTHER QUESTIONS BY BRAZIL
 
WT/TPR/S/165, IV, (1), paragraph 2, page 66 
According to the report of the Secretariat, "Labour  productivity in agriculture is substantially lower 
than elsewhere in the economy, and the sector receiv es relatively high border protection and domestic 
support measures compared with other sectors ...".  Could Chinese Taipei explain how those practices are compatible with WTO rules and discipline? 
WT/TPR/S/165, IV, (1), paragraph 2, page 66 
The report states that "The government of the Separa te Customs Territory has implemented a range of 
support and adjustment programmes for agriculture , including price stabilization measures for rice 
and sugar, and income programmes for elderly farmers".  Could the Delegation provide further details 
about them?  WT/TPR/M/165/Add.1 
 Page 49 
 
 
REPLIES BY THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU,  
KINMEN AND MATSU (CHINESE TAIPEI ) 
1. ECONOMIC AND TRADE  
[CHINA] 
I. Economic Environment 
 
(4) Development in Trade  Question 1: (Chinese Taipei Report p. 3 para.10) 
 Chinese Taipei Report states: “Fluctuations in  the domestic economy are inevitably linked to 
developments in external trade.  In 2001, when the economy registered a negative growth rate of -
2.2%, its exports and imports both contracted, by -16.9% and -23.3% respectively.  Conversely, when the economy re-gained its growth momentum in 2004 and achieved a growth rate of 6.1%, this was 
due mainly to a strong rebound in exports, with th e annual growth rate reaching as high as +21.1%.”  
 Considering the influence of the economy on foreign trade, has Chinese Taipei adopted trade affecting 
measures to deal with economic fluctuati ons? What specific measures has it taken? 
ANSWER:
  
 
Our domestic economy is oriented mainly arou nd foreign trade. Therefore, the freer the global 
environment for trade, the smoother the development of our foreign trade and the greater the benefits 
to our domestic economy. 
 
To spur domestic economic recovery,  we continue to promote trade  liberalization and to facilitate 
related policies. We have also taken some tr ade-related measures in conformance with WTO 
standards to promote foreign trade and enhance economic prosperity. 
  
In addition, we have carried out other meas ures designed to upgrade  product image, and to 
encourage companies to develop their own unique br ands.  These measures include assistance with 
the establishment of quality systems, R&D innova tion, product design, added value, and brand 
recognition. Through these various promotional effort s, our products have actually increased the 
international competitiveness of domestic companies. 
(4) Developments in Trade 
 
Question 2: (Secretariat Report p.8 para.26 & Chinese Taipei Report p. 3 para.10)  The Secretariat Report states:  “Cross-strait fl ows of goods amounted to US$34 billion from Chinese 
Taipei and US$17 billion to Chinese Taipei in 2004.” Al so according to Table AI.3 in the Secretariat 
Report, the share of the export of Chinese Taipei ac ross the Strait in its total export has increased from 
3.9% to 19.6% during the period from 2001 to 2004.  Chinese Taipei states in its Report:  “Its imports have recently been growing at a much higher rate 
(31.8%) than exports, leading to a contraction of the trade surplus from US$ 22.1 billion in 2002 to 
US$ 13.6 billion in 2004.  In 2005, as the world economy slowed, so too did growth in its exports and imports, to 8.8% and 8.2% respectively. ”  1. Despite the slowing export growth and declin ing trade surplus, Chinese Taipei is enjoying a 
wider trade surplus with China, which leads to  the increasingly severe trade imbalance across WT/TPR/M/165/Add.1 
Page 50  
 
the strait. Please explain the reasons behind su ch a massive trade surplus of Chinese Taipei 
vis-à-vis China.  
2. What plans and specific measures will Chinese Taipei take to balance the trade across the 
strait? 
ANSWER:
  
 
In recent years, outbound cross-strait investment by  our businesses has grown rapidly (according to 
China’s statistics, if reinvestment through third terr itories and free ports such as the Virgin Islands, 
Cayman Islands, and Western Samoa is included, then the realized value of FDI from us in 2005 was 
approximately US$59.86 billion, making us China’s sec ond-leading source of FDI). A majority of our 
overseas investment concentrates in China, which ge nerates a substantial tr ade flow and, in turn, 
contributes to our trade surplus.  
Since our businesses are engaged mostly in manufac turing, on the one hand they employ a lot of 
Chinese workers, which helps China to alleviate its serious unemployment problem, and on the other 
hand it helps China to earn a corresponding level of foreign currency. Reportedly, China’s 50.7% of 
2005 trade surplus came through foreign-funded ent erprises. Since we are China’s second-largest 
FDI source, one can say that our businesses have made a large contribution to China’s rapid 
accumulation of foreign cu rrency reserves in rec ent years. In addition, according to the “2004 Report 
on Foreign Investment in China” published by China’ s Ministry of Commerce, a total of 29 foreign-
invested companies exported more than US$1 billion worth of goods from China, and among these, 
14, or nearly half, were our companies. This shows that Chinese products have made obvious 
improvements in terms of technology level and quality really benefited from our businesses’ 
investment. From above, it is obvious that alt hough our businesses’ investments in China have 
created our trade imbalance with China, they ha ve also been very helpful for China’s economic 
development. 
All this shows that our trade surplus with Chi na is a natural phenomenon that reflects to a certain 
extent the complementarities between our respectiv e manufacturing sectors. In the past few years, 
Chinese products have made obvious improvements in  terms of technology level and quality, so our 
businesses in China are also clearly buying mo re and more locally produced raw materials. A 
relevant survey by our Ministry of Economic Affairs shows that already in 2003, 49.93% of the 
machinery and raw materials needed for producti on by our businesses in China was purchased 
locally, thereby surpassing for th e first time the amount of machinery and raw materials purchased 
from us, which was 39.37%. Given this  situation, plus the fact that we are continuing to concentrate 
our trade promotion efforts on other markets in orde r to achieve a broader distribution of markets, we 
expect that our trade imbalance with China will improve gradually. 
2. TRADE POLICY
 
[EC] II. Trade and Investment Regime 
 
(2) Formulation and Implementation of Trade Policy 
 
Sustainable development 
 
Report by Chinese Taipei, page 18, paras 86-87 
 
What steps does Chinese Taipei take  to ensure that its trade policy does not have any negative effects 
on sustainable development in Chinese Taipei and elsewhere?   WT/TPR/M/165/Add.1 
 Page 51 
 
 
ANSWER:  
 To enhance the protection of the environment and ecology, guarantee social fairness and justice, 
promote economic development, and establish us as  a “green silicon island,” the government in 
August 1997 established the Council for Sustainable Development. The Council’s 25 to 31 members 
include ministers-without-portfolio, administrators of government agencies, experts and scholars in 
related fields, and representatives of civil groups . There are eight working groups convened by 
different Ministries under the Council.   
The Council is authorized to conduct research and ra ise issues – including trade issues – that are 
relevant to sustainable development in accordance with social and development needs. After being 
agreed upon at a council meeting, these issues are re ferred to relevant working groups, governmental 
agencies or academics and experts, who will conduc t research, address the issues, and report back to 
the Council on their progress. Funds needed for researching and addressing issues are to be 
produced by the relevant agencies.  
Trade and environment 
 
What mechanisms does Chinese Taipei have in  place to ensure adequate coordination of 
environmental policy and trade policy?   
ANSWER:
  
 
The Secretariat report (Chapter II, para. 7, page 15) has described our mechanisms of trade policy 
formulation. Among the seventeen working groups , the trade and environment working group is 
responsible for coordinating trade policy and envir onmental policy. The Environmental Protection 
Administration is member of this working group, as well as the Task Force, and the Committee of 
Global Trade Strategy Alliance and Arrangement.  
Trade and social development 
 
Labour productivity in Chinese Taipei is lower in  manufacturing than in services. Labour standards 
can raise productivity in trade-related industr y by providing incentives to work. What labour 
standards exist, and how could they  be affecting labour productivity? 
ANSWER:   
 
1. In order to protect the rights and welfare of laborers and to increase labor productivity, we 
have enacted many labor laws and regulations s tipulating related minimum labor standards. Among 
these are the Labor Standards Act, Labor Safety a nd Health Act, Labor Union Law, Employment 
Service Law, Gender Equality in Employment Act and so on. In the process of drafting such laws, we 
referred to provisions of the ILO conventions and the labor laws of some industrialized countries. 
 2. Take working time, which has a close connecti on with labor productivity, as an example. The 
Labor Standards Act stipulates minimum labor stan dards regarding working time and wages, such as 
limits on normal working hours and overtime, conditions  of flexible working time, as well as minimum 
wage and the protection of minimum earnings for workers. Meanwhile, the Labor Safety and Health 
Act serves to prevent occu pational accidents and to protect workers’ safety and health, by requiring 
employers to establish safety and health installatio ns and related management procedures. These Acts 
cater to local conditions on one hand, and comp ly with international norms on the other.  
 
3. The establishment and implementation of the above-mentioned labor standards have provided 
enterprises with the flexibility  necessary to respond to a changing business environment and changing 
demands. The standards have also helped to prevent occupational accidents and diseases by WT/TPR/M/165/Add.1 
Page 52  
 
protecting laborers’ safety and health. This, in turn , has reduced labor productivity losses. Thirdly, by 
protecting workers’ rights and promoting equality in  the workplace, these standards have enabled 
workers to devote themselves more fu lly to their jobs, made it easier for companies to retain good 
workers, and enhanced labor participation. Finally , improved labor standards have helped workers 
and enterprises to avoid unnecessary conflicts, and t hus to work more closely together. All of the 
above has contributed to increased labor productivity. 
3. FTA
 
[CHINA] II. Trade Policy Regime:  Framework and Objectives 
(3) Trade Policy Objectives  
Question 3: (Secretariat Report p.17 para.12) 
 
The Secretariat Report states:  "On regional and bilate ral relations, Chinese Taipei aims to: enter into 
negotiations for free trade agreements  with its trading partners; …" 
 
Apart from those covered in the Report, with which Members is Chinese Taipei negotiating or 
planning to negotiate on FTAs? 
 
ANSWER:
  
 
We are currently negotiating with El Salvador and Honduras, and are planning negotiations with 
Costa Rica and the Dominican Republic. 
[TURKEY] 
II. Trade Policy Regime:  Framework and Objectives 
(4) Trade Agreements and Arrangements (ii) Regional and bilateral agreements, paragraphs 18,19 
 
It is understood from the Secretariat Report that in addition to the Free Trade Agreement  entered into 
force between Panama and Chinese Taipei in 2004, and  the FTA concluded with Guatemala, there 
are ongoing efforts to conclude FTAs with so me other South American countries including 
Nicaragua, Honduras and El Salvador.  
- Could Delegation of Chinese Taipei explain the reason of their special interest in this region 
of the world for concluding FTAs? 
 
- Are there intentions of launching FTAs with so me countries in the other parts of the world? 
ANSWER: 
 
 
1. The establishment of FTAs with Panama, G uatemala, Nicaragua, Honduras and El Salvador 
creates economic and trade benefits to all parties.  
2. We would be interested in negotiating an FTA w ith any of our trading partners, provided said 
FTA can create opportunities for our mutual economic development.  WT/TPR/M/165/Add.1 
 Page 53 
 
 
4. INVESTMENT  
[NEW ZEALAND] 2. Direct Investment  
 Question: (WT/TPR/S/165 page 20, para 27) 
 
We note that there are a number of areas where fore ign direct investment into Chinese Taipei is 
prohibited; has Chinese Taipei given consideration to opening its postal services sector to foreign 
direct investment?   
ANSWER: 
 
 To cope with current economic trends, the postal services sector has undergone significant changes in 
recent years. The businesses of delivering newspap ers, magazines, printed matter and parcels have 
now been opened up to free competition. As a Stat e-run company, the postal service in Chinese Taipei 
holds a monopoly in the businesses of delivering le tters, postcards and oth er correspondence in order 
to offer a less expensive, total, and safer delivery service to the general public. Therefore,  it is not 
considering opening up to foreign direct investment at present time. 
[CHINA] 
Question 7: (Chinese Taipei Report  page 16 para.77)  
 Chinese Taipei Report states: "There are specific pl ans in place to strengthen trade and investment 
with individual countries." 
 What are the criteria used by Chinese Taipei to id entify focal markets and to formulate focused and 
specific trade and investment plans? What are the specific contents of those trade and investment 
plans? 
ANSWER: 
 
 
The specific plans stated in the Report by the Se parate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu are those to strengthen trade and investme nt with Southeast Asia’s countries. Each of 
Southeast Asia’s ten countries has its  own distinctive market characteri stics, and that in each country 
there are products with market potential. This en courages our businesses to go into these markets, 
trying to expand sales or make investments there. Th e main tasks in promoting exports to Southeast 
Asian countries is providing information to our businesses on the various countries’ economic, trade 
and investment environments, on tariffs, and on status of regional integration. 
[EC] II. Trade and Investment Regime 
(6) Investment Regime 
(v) Inbound and outbound direct investment 
 Question: (Secretariat Report, page 11 , para 29 and page 13, para 32)  
 The authorities of Chinese Taipei  regard inbound di rect investment as an important tool for the 
continuous growth of the economy and ecognize the need to further improve the  investment 
environment to attract inbound direct investment. WT/TPR/M/165/Add.1 
Page 54  
 
However, the data on page 12 of the Secretaria t’s report on inbound flows of direct investment 
indicate a substantial decrease
 during the period of 2001- 2004 (from 5.128.5 USD million to 
3,952.8 USD million). Also the share of services has gone down from 64.3% to 49.2% for the period 
2001-2004. 
 Could Chinese Taipei explain which measures were  taken to effectively encourage Inbound Direct 
Investment and which impact they had on FDI?  
ANSWER:
 
 
Actually, the description on page 12 of the Secretar iat Report on inbound flows of direct investment 
indicating a substantial decrease during the p eriod 2001 to 2004 (from US$ 5,128.5 million to 
3,952.8 million) may be misleading. If we look at the data on the same page of the Report, we see that 
the annual inbound flows of direct invest ment during the period 2002 to 2004 (from 
US$3,271.8million in 2002 to 3,575.7 million in 2003, and 3,952.8 million in 2004) indicate a 
continuous mild recovery.  
 
The mild recovery in FDI inflows ca me after SARS (severe acute resp iratory syndrome), disappeared 
in 2002. FDI was boosted to U S$ 4,228.1 million in 2005, an increase of 6.96% over the previous 
year, marking the third consecutive year of mild FDI growth.   
The recovery in FDI inflows can be attributed mainly  to the adoption and implementation of measures 
that have significantly improved the investment  environment. They provided more and better 
investment opportunities by effectively fighting SARS, increasing the transparency of related administrative and legal systems, and further libera lizing investment in service sectors such as 
banking, securities, insurance, telecommunications and transportation. Therefore, FDI inflows to the 
services sector reached around US$ 2.6 billion in 2005, or 61.8% of all FDI inflows that year.  
 We continue to review obsolete regulations and upgrading outdated service systems in order to 
enhance transparency and liberalization in its investment regime. 
[HONG KONG, CHINA]  
Investment 
 
Question: (WT/TPR/S/165, P.20, Para. 27) 
 
1. Recognizing Chinese Taipei’s initiative in further liberalizing its investment regime, is there a 
timetable to remove industries from the “restricted industries” list?  
ANSWER:
 
 
To prevent foreign investment in industries that may negatively affect essential security, public order, 
and good customs and practices, the removal of industr ies from the “restricted industries” list is 
under constant review by different competent authoriti es in accordance with th eir respective laws or 
regulations.  WT/TPR/M/165/Add.1 
 Page 55 
 
 
[CHINA] 
(6) Investment Regime 
 
Question 4: (Secretariat Report Summary Observatio ns para.9, p.11 para.29, p.23 para.34)  
 The Secretariat Report states:  "As regards cross-st rait direct investment, little inbound investment has 
been allowed, and outbound investment, if not pr ohibited, requires the approval of the relevant 
Chinese Taipei authorities." 
 
The Secretariat Report also states:  "Based on Chinese Taipei’s data on direct investment on an approval basis…Outbound cross-strait direct inve stment amounted to US$6.0 billion in 2005, 
accounting for about 66% of Chinese Taipei’s outbound direct investment. Inbound cross-strait direct 
investment amounted to US$30,000 in 2005; ther e was no recorded inbound cross-strait direct 
investment between 2000 and 2004." "… to date, only one such investment has been approved." 
 
According to the statistics of the Ministry of Co mmerce of China, China made US$ 12 billion direct 
investment overseas in 2005. 
 
Please confirm the accuracy of the information on China’s investment in Chinese Taipei from 2000 to 
2005 as reflected in the Secretariat Report as compre hensive informationm in  this regard is not 
available in China’s statistics. Considering the sm all size of the symbolic presence of China’s direct 
investment in Chinese Taipei as i ndicated by the Secretariat Report,  has Chinese Taipei imposed any 
restrictive measures against direct investment from China? 
 
ANSWER:
  
 
Due to the special nature of the cross-strait relationship, we enacted a specific law on 
29 October 2003 to regulate investment from China. In accordance with this law, some investments 
from China are still restricted. 
Question 5: (Secretariat Report p.23 para.34 and Chinese Taipei Report p. 10 para.44)  
 
The Secretariat Report states:  "Outbound cross-stra it direct investment requires approval from the 
competent authorities of Chinese Taipei. Outbou nd cross-strait investments by Chinese Taipei 
enterprises with paid-up capital of more than NT$80 m illion are limited to not more than 40% of their 
net assets. In certain manufacturing, agriculture, ser vices and basic infrastructure construction sectors, 
Chinese Taipei prohibits outbound cross-strait dire ct investment; the list of prohibited sectors are 
reviewed annually by the competent authorities, an d decided by the government of the Separate 
Customs Territory."  
Chinese Taipei states in its Report:  "The primary objective of the investment policy is to create a 
highly liberalized, internationalized, transparent a nd business-friendly investment environment, which 
operates in a non-discriminatory manner." 
 
1. Does outbound investment from businesses in Chinese Taipei to other Members require the 
same approval? Are the approval procedures for outbound investment from Chinese Taipei 
implemented in line with the principle of non-discrimination and its relevant accession 
commitment? 
 
2. Please confirm that Chinese Taipei grants non- discriminatory treatment to investors from all 
Members including China. WT/TPR/M/165/Add.1 
Page 56  
 
ANSWER TO Q1:
 
 Many WTO Members regulate their people’s oversea s investment in an appropriate manner, and we 
are no exception. China itself imposes more restrictions than us.  
Due to the special cross-strait relationship, a limited list of items is still subject to special approval 
procedures and restriction.  
Today, 98.58% of our outbound invest ments to China are permitted under current regulations. Our 
businesses have invested in China on a massive sca le, with 71% of our total outward foreign 
investment went to China in 2005.  
 ANSWER TO Q2:
 
Due to the special nature of the cross-strait relationship, we enacted a specific law on 
29 October 2003 to regulate investment from China. In accordance with this law, some investments 
from China are still restricted. 
The main obstacle to Chinese investment is that China still does not allow its people to invest here. 
For example, we opened our real estate market to investment from China in 2002, but because China 
implements strict foreign exchange controls and to  date there have been only three cases of people 
from Chinese citizens purchasing real estate. Moreo ver, opening our services sector to investment by 
Chinese citizens or enterprises still involves a large amount of governmental authority. For instance, 
investment by banks and securities firms involves pr oblems of financial supervision, which can only 
be resolved through cross-strait negotiations. 
Question 6: 
 It is understood that Chinese Taipei recently issued  relevant policies on further tightening cross-strait 
economic and trade exchange, including more strict r estrictions on its investment to China. It will 
adopt a three-tier reviewing system in the future fo r outbound investment to China. For investment to 
China less than US$ 20 million, the “investme nt reviewing committee” will conduct a “simple 
review”; for investment between US$ 20 million to 100 million, the competent authorities will 
conduct a “specific review”; and major investment over US$ 100 million will be subject to a “policy-
level review”. 
 
1. Please provide detailed information of this ne w system and explain the rationale. Is this 
system of Chinese Taipei consistent with its declaration on the objective to create a highly 
liberalized, transparent and business-friendly inv estment environment as contained in para 44 
of its own Report? 
 
2. What influence does Chinese Ta ipei expect this system to exert on its economy and interests 
of its business people? 
ANSWER:
 
 Our outward investment to China already exceeded 71% of our total outward investment in 2005. 
Considering the current trend of global logistics m anagement adopted by most countries, it is obvious 
that our outward investment has over-concentrat ed on China. Therefore, an appropriate mechanism 
such as the three-tier reviewing system is considered necessary.  WT/TPR/M/165/Add.1 
 Page 57 
 
 
Question 11:  Commercial advertising and promoti on activities in the target market are very important for business 
development and sales. 
 1. Please clarify whether there are restricti ons on enterprises and commodities from China for 
commercial advertisements and promotion activities in Chinese Taipei. If yes, please provide 
details and rationale.  
 
2. Does Chinese Taipei impose the same restrictions on ente rprises and commodities from other 
Members in this regard?  
ANSWER:
 
 There is no restriction on commercial advertising and promotion activities on commodities which are 
permitted to be imported from China. 
IV. Trade Policies by Sector 
(5) Services 
 Question 19:  (Chinese Taipei Report p. 8 para.34)  
 Chinese Taipei Report states:  "Instead of having to obtain permission from the Securities and Futures 
Bureau of the FSC (previously the Securities and Futures Commission), all foreign investors can now 
invest in the securities market af ter simply registering with the Taiwan Stock Exchange Co. (TSEC) 
and obtaining an investment ID." 
 
According to the above information, could people take it as granted that Chinese investors will be 
allowed to invest in securities and futures in Chinese Taipei after registering with the TSEC? 
ANSWER:
 
 At present, Chinese investors are not allowed to in vest in securities and futures. This policy will be 
reviewed in the future.  
Question 20:  (Chinese Taipei Report p. 8 para.36)  
 
Chinese Taipei Report states:  "To facilitate the consolidation process and promote foreign 
investment, market mechanisms will continuously be  used to encourage further deregulation of the 
financial sector." 
 
1. What plans and timetables does Chinese Taipei  have on further liberalizing its financial 
sector?  
 
2. Are there restrictions for Chinese financial institutions to set up br anches in Chinese Taipei? 
If yes, please provide detailed information. Do those restrictions conform to Chinese Taipei’s 
WTO accession commitments?  
 
3. What consideration does Chinese Taipei have  on the establishment of branches by Chinese 
financial institutions in Chinese Taipei? WT/TPR/M/165/Add.1 
Page 58  
 
ANSWER to Q1: 
 
 Further liberalization of the financial sector is currently under negotiation in the Doha Round, and 
we are participating very actively in the negotiations  to further improve the market access of our 
financial sector. 
ANSWER to Qs 2.& 3.
 
 
Opening our service sector to investme nt by Chinese citizens or enterp rises still involves a great deal 
of governmental authority that needs to be ne gotiated. For instance, investment by banks and 
securities firms involves problems of financial sup ervision, which can only be resolved through cross-
strait negotiations.  
Question 21: (Chinese Taipei Report p. 10 para.46)  
 
Chinese Taipei Report states:  "Up to the end of 200 5, with the exception of a few sectors involving 
essential security interests and public health asp ects, 99% of the manufacturing industry sector and 
95% of the services industry sector had been  opened up to foreign investment." 
 Please confirm whether Chinese Taipei has opened its market to service providers from all WTO 
Members on MFN basis.  
ANSWER:
  
 The cross-strait relationship is unique and complicat ed. The opening up of our services sector to 
investment by Chinese citizens or en terprises still involves a great deal of governmental authority that 
needs to be negotiated by both si des. For example, opening up tour ism to Chinese citizens involves 
visa and many other management issues which need to  be resolved by negotia tion. In the future we 
will continue to make further effo rts to review related policies. 
Question 22: 
 
Are there any restrictions for enterprises from WTO Members including China to hold exhibitions on 
their own or jointly with local enterprises in Chinese Taipei? If yes, please provide details and 
rationale. Does Chinese Taipei have any pl an to eliminate those restrictions?  
ANSWER:
 
 There is no restriction on Chinese enterprises taking part in the international exhibitions. 
5. CUSTOMS (PROCEDURE, VALUATION, RO)
 
 
[EC] 
 
III. Trade Policies and Practices by Measure 
(2) Measures Directly Affecting Imports 
Customs Valuation and Rules of Origin  
Question:  (Secretariat Report, page 28, para. 19)  Are there textile items from the China transiti ng through Chinese Taipei, in particular through 
Chinese Taipei Export Processing Zones?   WT/TPR/M/165/Add.1 
 Page 59 
 
 
ANSWER:  
 There is no transit prohibition of t extile items from China.  How ever, we have adopted the following 
measures in order to deal with the possible ci rcumstance of illegal transit textile and apparel goods: 
 
1. The Customs shall conduct risk management examinations of transit textile and apparel 
 goods.  
2. Textile and apparel goods falling under HS 61 and 62 shall be labeled with their correct 
 country of origin.  Goods without th e required labeling will be excluded.   
 
3. Country of origin shall be marked on all tex tile and apparel goods for export or on their inner 
 or outer packaging in a conspicuous and durable manner.  
In addition, there are very few textile items fr om China transiting through  our Export Processing 
Zones since the number of textile fact ory in the Zones is very limited.  
 
Question: 
 
Is Chinese Taipei applying speci fic measures aiming at avoiding deflection of trade that might 
concern Chinese textile items facing the r ecently introduced EU quantitative limits? 
 
ANSWER:
 
 
There are no specific measures on the import or ex port of textile products in this regard. 
 
[US] 
 
III. Trade Policies and Pactices by Measure (2) Measures Directly Affecting Imports  Customs Valuation and Rules of Origin  
 Question: 
 
In Paragraph 19 and footnote 12 on page 28, the Secretariat Report briefly addressed “country of 
origin” as it relates to imports into Chinese Taipei.  Since early 2004, Chinese Taipei has required that 
certain agricultural and fisheries imports must be accompanied by a Country of Origin Certificate 
(COC).   A) Please clarify these regulations.  Please include  identification of which entities may issue a 
Country of Origin Certificate and provide the ju stification for this measure in the response.  
 
ANSWER:
 
 
According to Article 28 of the Customs Act, Customs should follow the relevant regulations when determining the origin of impor ted goods. If necessary, Customs may request the duty-payer to 
provide the relevant certificate of or igin issued by either the governmen t of the country of origin or its 
authorized unit for certain products. 
 
B) Please also provide a copy of the September 30, 1994 measure Regulations Governing the 
Determination of Country of Origin of an Import Good  that is cited in footnote 12.  
 WT/TPR/M/165/Add.1 
Page 60  
 
ANSWER:
 
 The Rules of Origin on Imported Goods of (30 September) 1994 have been revised and replaced by 
the Regulations Governing the Determination of Co untry of Origin  on Imported Goods, which was 
promulgated on March 29, 2004.  
 
[COLOMBIA]
 
 
Questions:  
Numeral 2)  Medidas que Afectan Directamente a las Importaciones 
 Literal i)  Registro, documentación y otros trámites 
 
A) En el párrafo 15 se comenta que el Taipei Chino ha aplicado una ser ie de sistemas para 
simplificar el despacho de aduanas. ¿Qué tipo de si stemas utiliza y ha utilizado? ¿Podría compartir su 
experiencia con los demás países miembros?    
 
ANSWER: 
 
 No efforts have been spared by our Customs to simplify and harmonize customs formalities and 
procedures. The following are some of the major approaches taken in recent years: 
 
1. Cargo Clearance Automation
 
 
The Customs started to implement automated cleara nce systems for air cargo and  sea cargo in 1992 
and 1995, respectively. Utilizing the UN/EDIFACT m odel, importers, exporters and other related 
parties are able to file their declarations with Cu stoms electronically. Currently, 99% of declarations 
are processed in this way, and th e average clearance time for air cargo import is 13 minutes, while 
that for sea cargo import is two hours. 
 
2. Pre-entry Clearance System  
 
To provide business sectors with a just-in-time and zero-inventory business    environment, we have 
implemented the Pre-entry Clearance System. In oth er words, shipments can be cleared prior to the 
arrival of carriers if the relevant manifest is duly transmitted to the Customs a fter the vessel leaves its 
last port in a foreign country. Fo r by-passed declarations, the cargo will be released immediately 
upon its arrival. 
 
3. Advance Ruling on Tariff Classifications  
 
To help importers know the correct tariff classifications  and duty rates prior to   importation, so that 
they are able to calculate the cost of importing goods and thus minimize possible disputes between 
themselves and Customs afterwards, we have been u tilizing the Advance Classification Ruling System 
since 1999. 
 4. Simplified Clearance for Express Consignments
 
 
Customs implemented the first phase of the Informal  Entry System in August 2000, followed by the 
second phase in 2001. Moreover, since October 2002, express carriers have been  allowed to pay duty 
on-line for high-value import consignments. Currently, our system is fully consistent with the WCO’s 
principles in this regard, and we also participated  in APEC’s Advisory Mission to provide technical 
assistance on express consignment clear ance operations to other economies. 
  WT/TPR/M/165/Add.1 
 Page 61 
 
 
5. Twenty-four hours Clearance Service  
 The Customs provides round-the-clock service for busi nesses in such areas as  express consignment, 
cargo release alongside aircraft or sh ips, and urgent import/export goods. 
 6. Risk management and the Post-Clearance Auditing System
 
 
To strike a balance between trade facilitation and border security, we have established a Cargo and 
Entry Summary Selectivity System and applied risk management techniques to the enforcement 
operations so as to focus on high-risk groups with  limited manpower. Our objec tives are to facilitate 
clearance operations to the great est extent possible and minimize cust oms intervention in the process 
of clearance, without jeopardizing security.  
 We have also adopted a Post-Clearance Auditing Syst em. We first set up selectivity criteria to target 
high-risk shipments and then conduct a thorough revi ew of their documents – including clearance 
information, accounting books, et c. – after release of the cargo. Since this system was first 
implemented in 2002, it has recove red a huge amount of duties and  taxes, and significantly enhanced 
the voluntary compliance rate wh ile facilitating legitimate trade. 
 7. Customs On-line Services
 
 
In line with the e-government policy, our Custom s has provided more than 80 types of web-based 
application services since November 1, 2003. The In ternet declaration system for air cargo was 
established in April 2004, followed by th e system for sea cargo in August 2005. 
 
The Customs clearance database also provides real -time information on the whereabouts of traders’ 
declarations, so that they are abl e to trace the progress of their en tries through the Internet. Along 
with assisting traders, this transparent practice has also served to improve the integrity of our 
Customs. 
 8. E-Payment System
 
 
Based on the electronic payment module of the e- Government Service Platform (GSP), the Customs 
has consolidated the Customs cargo clearan ce systems and the e-Financial Services System to 
establish the “Customs Duty and Tax Internet Pa yment System.” To provide more alternative 
channels and mechanisms for traders to pay taxes, duties and fees, the Internet online payment 
services were launched on February 20, 2006. 
 
9. Authorized Trader System  
 
Please refer to the following for details. 
 
B) En el párrafo 15 se hace mención a la posibilidad  de realizar pagos de derechos y cargas de 
manera consolidada. ¿Esta opción es únicamente pa ra los usuarios autorizados? ¿Cuáles son los 
requisitos para conferir a un usuari o la calidad de autorizado? ¿Cuál es el porcentaje de usuarios 
autorizados frente a los demás usuarios?    
 
ANSWER:  
 Our Customs is in the process of promoting the Au thorized Trader System, in which accredited firms 
may enjoy the privileges of lower cargo examination rates and paying duties on a monthly basis. Import and export firms meeting the following requi rements may apply to any Customs Office for 
consolidated duty payment: 
 WT/TPR/M/165/Add.1 
Page 62  
 
1. Those having a certification mark for excellent  trade performance, or an excellent trade 
performance card issued by the Ministry of  Economic Affairs; or those having an average 
annual trade performance equivalent to or exce eding US$14 million over the past three years. 
2. Those bearing no records of duty evasion, smug gling or other legal violations in the past 
three years. 
3. Those administering import/export pr ocedures and financing by computer.  
4. Those filing applications or transmitting clea rance data through Electronic Data Interchange 
(EDI). 
 
Currently, there are 125 firms approved by the Customs.  This initiative has greatly  facilitated trade, 
and enhanced the competitive edge of loca l enterprises in international markets. 
 
C) ¿Cuál es el porcentaje de declaraciones de importación que son sometidas al sistema de control posterior? ¿Cuál es el porcentaje de decl araciones que una vez han sido sometidas al control 
posterior deben ser corregidas y dan luga r a la imposición de sanciones?    
 
ANSWER:
 
 
To enhance the efficiency of Post-Clearance Audit (PCA), the Customs uses risk management skills to 
screen high-risk profiles.  We conduct PCA only on    potentially counterfeit entries.  According to our 
statistics, in 2005, post-clearance auditing was con ducted in 4,124 cases, accounting for just 0.15% 
of total import entries. Among these, 63% were found to involve cheating. 
 D) ¿Existe un sistema de revisión y apelación que le permita al usuario reclamar ante la 
administración aduanera en los casos que así lo c onsidere pertinente? ¿De existir la posibilidad de 
apelar la decisión de la administración aduane ra, ese procedimiento lo conoce un funcionario 
independiente de quien adopto la decisión?   ANSWER:
 
 According to Article 47 of the Customs Anti-Smuggling Act, when the person in question does not 
agree with the disposition made by Customs, they ma y, within 30 days from the date of receipt of the 
disposition notice, file a written protest in given format against Customs for review. Customs shall 
make a determination on the protest within two mont hs from the date of receipt, and notify the person 
disposed; when necessary, the term may be prolonged once for no more than two months. 
 The determination will be made by the Appeal R eview Committee of Customs, not by an individual 
Customs officer.  
Literal ii)  Valoración en Aduanas y Normas de Origen.  Párrafo 17.  Se menciona  la existencia de una 
base de datos de valoración que permite detectar los casos de “infravaloración” en las declaraciones 
de los importadores. Teniendo en cuenta que el Ta ipei Chino adquirió el compromiso de aplicar 
plenamente el Acuerdo de Valo ración Aduanera de la OMC  
 
¿Podrían compartir su experiencia con los de más países miembros y exponer algunos datos 
estadísticos al respecto?  
 
ANSWER:
 
 
We have brought our Customs Act into compli ance with the GATT Valuation Agreement and 
implemented the transaction value system sinc e 1 July, 1986. To fulfill the commitment on our 
accession to the WTO, we further revised the relevant provisions of the Customs Act and the 
Enforcement Rules of the Customs Act to fully meet the WTO Valuation Agreement. 
  WT/TPR/M/165/Add.1 
 Page 63 
 
 
The Customs has been utilizing the Transaction Value System since 1986. The determination of 
Customs Value of imported goods is in co mpliance with the WTO Valuation agreement. 
 
The Customs has established a valua tion database to detect the value declared by importers to assess 
whether said values are a ccurate and true. The database is used as a risk assessment tool to detect 
under-valuation. 
 
When Customs doubts the truth and accuracy of the declared value, they may ask the importer to 
provide further explanation or more detailed inform ation, including documents or other types of 
evidence for verification.  
In cases in which the value decla red is verified as the true transac tion value, it will be accepted by 
Customs even if it is less than the value listed in the database.  
 
Data in the above-mentioned database wa s collected from the following sources: 
 (1) the Customs value of imported goods determined by field Customs offices.  
 
(2)  the Customs value of imported goods determ ined through an investigation by the Directorate 
General of Customs. 
 
The percentage of entries screened fo r a value review is 6.5% for sea cargo and  2.4% for air cargo. 
 
Literal iv) Otras cargas aplicadas a las importaciones. 
 
De acuerdo al párrafo 43, la aduana  puede percibir derechos por algunos servicios, entre otros, por el 
derecho de supervisión.  
 
¿Éste derecho hace referencia al pago por los servici os prestados por la adua na cuando la carga debe 
ser sometida a examen físico y documental?  
 
ANSWER:
 
 
The service fee and charges may be paid either when  the services are requested or on a monthly 
basis. 
 
[COSTA RICA]  
Registro, documentación y otros tr ámites (procedimientos aduaneros 
 
En el párrafo 15 se señala: 
Desde 2001 se aplica un sistema si mplificado de despacho para las 
consignaciones urgentes, con el que  los derechos pueden abonarse en línea6, y un sistema de 
auditoría posterior al despacho, que permite la puesta en circulación de determinados envíos antes 
de que se proceda al examen dete nido de los documentos y los libros contables;  este procedimiento 
entró en vigor en diciembre de 2001.  Desde 2005 se practica la consolidac ión del pago de derechos 
y cargas, con la que los importadores autorizados pu eden pagar los derechos en plazos mensuales y 
                                                      
6 Las consignaciones urgentes se limitan a los enví os que no sean de productos básicos controlados, 
contrabando, artículos que infringen los derechos de propiedad intelectual, animales/plantas vivos y fauna y flora silvestres conservados y sus productos;  están incluidos en esta categoría los envíos de un peso en bruto por paquete no superior a 70 kg. WT/TPR/M/165/Add.1 
Page 64  
 
las cargas se someten a exámenes menos minuciosos
7.”  La nota al pie de página número 6 indica 
algunos ejemplos de mercancías que califican como  consignaciones urgentes y en consecuencia se 
pueden beneficiar de un procedimie nto aduanero simplificado.  Con relación a este tema, Costa Rica 
desea conocer los siguientes aspectos: 
 1. ¿Qué se considera como productos básicos cont rolados? ¿Se refiere a cualquier mercancía 
sujeta a controles de tipo sanitario o fitosanitario? 
 ANSWER:
 
 The restricted commodities do not include all the arti cles needed to be quarantined, but the following 
shall not be imported: 
 
(1) Fake or spurious currencies or securities, or moulds for printing counterfeit currency; 
 (2) Articles infringing upon the rights of patents, trademarks and copyrights; 
 
(3) Articles prohibited by the relevant laws and regulations from importa tion, such as weapons, 
ammunition, drugs, etc. 
 
2. ¿Cuáles son los parámetros que utilizan para  identificar a priori cuales productos no son 
sujetos de contrabando o cuáles artículos no infring en los derechos de propiedad intelectual, 
para poder excluirlos de este procedimiento simplificado de consignaciones urgentes?  
 ANSWER:
 
 
Our Customs has established a Cargo and Ent ry Summary Selectivity System and applied risk 
management techniques to the enforcem ent operations with the help of X-Ray equipment so as to fight 
against smuggling.    
 
3. Es interesante la distinción de consignaciones ur gentes en razón de su peso bruto. En otros 
países se tienen procedimientos similares simplificados  para los embarques pero en razón de su valor 
en aduana.  ¿Podrían comentar qué razones los lleva n a hacer la determinaci ón en función del peso 
bruto y no del valor? 
 
ANSWER:  
 
The reason why “express consignments” shall be limit ed to shipments with a gross  weight for each 
package of not more than 70 kg is to facilia te manpower and X-Ray equipment operations. As a 
matter of fact, we place restrictions on the gross weight only of each package, not on the total gross 
weight of a shipment. 
 4. Con respecto al procedimiento de consolidación de pago de derechos y cargas establecido en 
el año 2005, ¿cuál ha sido la experiencia durante este corto plazo? ¿Consideran que ha agilizado en 
alguna medida el despacho en términos de tiempo o es más bien una ventaja financiera para los 
importadores?  ¿Se les requiere a los importadores rendi r una garantía que cubr a los impuestos que se 
percibirán en el plazo de un mes?  ¿Cuáles son lo s beneficios que ha experimentado la administración 
al aplicar este procedimiento? 
 
                                                     
 
7 Entre enero de 2005 y septiembre de 2005 el 9 por ciento de las declaraciones de importación de 
carga aérea, y el 4,1 por ciento de las declaraciones de im portación de carga marítima, se hicieron con el sistema 
de despacho consolidado.  WT/TPR/M/165/Add.1 
 Page 65 
 
 
ANSWER:  
 The Consolidated Duty Payment Syst em is welcomed by the trade co mmunity and is of great help in 
providing local enterprises with a competitive edge  in international markets. It not only expedites 
customs clearance but also reduces the cost s for traders and the Customs administration. 
 The guarantee of duty and/or a fee for consolidated duty payment may be provided in the following forms: 
1. Cash 
2. Bonds issued by the government  3. Time Certificate of Deposit issued by a bank 4. Time Certificate of Depos it issued by a credit cooperative 
5. A one year or more common certificate issued  by a trust and investment company, or  
6. Guarantee provided by a financial institute. 
 
Import/export firms may apply for using an affidavit in lieu of guarantee of duty and/or fee for the 
consolidated duty payment if they meet the requirements.  For firms approved for consolidated duty payment and affidavit in lieu of guarantee of duty and/or 
fee, the amount covered by the affidavit shall not exce ed two times the average monthly import duty or 
tax in the preceding fiscal year. In addition, th e Consolidated Duty Payment System reduces 
administration costs, as well as the amount of tax forms.   
 
En el párrafo 16 se señala que si “la aduana cree que existe una infracción del reglamento, puede 
inspeccionar las cargas importadas o exportadas en  virtud de la Ley de Aduanas o de las leyes y 
reglamentos pertinentes, incluida la Ley de Repres ión del Contrabando.  Si se sospecha que en una 
declaración de las cargas import adas o exportadas se ha infringido la ley, la aduana puede imponer 
sanciones tales como advertencias, multas y susp ensión o anulación de los privilegios contemplados 
en la Ley de Aduanas.
8  Con relación a este punto, Costa Rica desea saber: 
 5. Cuando se hace referencia a que se imponen sanci ones ante una “sospecha” de la autoridad 
respecto a que en una declaración de las cargas importadas se ha infringido la ley, ¿se puede 
interpretar en el sentido de que no hay una reso lución  con fundamentos de hecho o derecho que 
justifique la aplicación de la sanción?   ANSWER:
 
 
According to Article 47 ofthe  Customs Anti-smuggli ng Act, if the person in question does not agree 
with the disposition made by Customs, they may, within 30 days from the date of receipt of the 
disposition notice, file a written protest in given format against Customs for review. Customs shall 
make a determination of the protest within two mont hs from the date of receipt of a protest, and notify 
the person disposed; where necessa ry, the term may be prolonged once for no more than two months. 
 
                                                      
8 Estos privilegios comprenden la transmisión de  datos electrónicos en línea y la declaración de 
importación/exportación, el despacho urgente de la consi gnación, el almacenamiento de  mercancías en depósito 
de aduanas y el pago de los derechos y cargas en plazos mensuales. WT/TPR/M/165/Add.1 
Page 66  
 
[KOREA] 
 
Rules of Origin 
 
Question: (WT/TPR/S/165, p.27, para.18, WT/TPR/G/165, p.5, para.20)  
3. The Chinese Taipei government often requires Korean exporters to acquire the consular 
certification of approving the origin at the Ch inese Taipei Mission in Korea, even when the 
certification of the origin has been already acquire d from the relevant Korean authorities.  The items 
subject to such re-certification are apple, pear, oy ster, cabbage, marble, tile, and construction material. 
The Chinese Taipei government explains that such  re-certification is required to prevent fraud 
importation of Chinese goods disguised as Korean pr oducts. It appears to be an unfair trade 
restrictive measure to make Kor ean exporters bear extra time a nd cost for re-certification of 
the origin.  
 
Would the Chinese Taipei government have any future plans to address this situation?   ANSWER:
 
 
In order to facilitate the verific ation of the certificate of origin, we are working on establishing the E-
CO system between our Customs and Korea’s Customs.  Once the system is established, we believe the 
problem raised will be improved to the greatest extent possible.  
6. TARIFFS
 
 
[SINGAPORE]  
 
Goods – Tariffs 
 1 We commend Chinese Taipei for its generally liberal tariff regime. However, we would 
appreciate Chinese Taipei’s comments as to how it plans to address or liberalise the following 
weaknesses or distortions in its otherwise liberal tariff regime 
 
(i) para 26 – on non-agricultural products, tariffs higher than 50%
 were applied to some 53 lines; 
apart from passenger cars and chassis, these also includes fish 
 
ANSWER:   
 
Among these 53 lines, 26 lines are passenger cars and chassis, while the remaining 27 lines are fish 
products. In fact, these higher tariff rates are the out-of-quota rates for tariff lines which are subject 
to TRQs. The TRQs for passenger cars and chassis will be phased out at the end of 2010, and the final 
bound rate for these lines will be 17.5%. The TRQs for fish products will be phased out at the end of 
year 2007, and the final bound rate for these lines w ill be as follows: 25% (4 lines); 30% (16 lines); 
40% (2 lines); 42.5% (1 line); 50% (1 line); 30% or NT$ 9.3/KG, whichever is higher (1 line); 25% 
or NT$ 7.3/KG, whichever is higher (1line); and 30% or NT$ 57.2/KG, whichever is higher (1line) 
respectively, according to the co mmitments of our WTO accession. 
 
As mentioned in the report by the Separate Custom s Territory of Taiwan, Penghu, Kinmen and Matsu, 
we strongly believe in an open and liberal trading  system leading to global  economic growth. We 
have made extensive commitments during our accessi on, and would like to make further commitments 
in accordance with the results of the Doha Round negotiations. 
  WT/TPR/M/165/Add.1 
 Page 67 
 
 
(ii) para 27 – the simple average rate for all AVEs was 130% ; of the top 100 tariffs, 42 were non-
ad valorem rates . As the Secretariat had noted, non- ad valorem  rates tend to conceal relatively 
high tariff rates. 
 
ANSWER:  
 
More than 98% of the tariff lines are already subject  to ad valorem duties.  The non-ad valorem 
duties in our Schedule are the results of our access ion commitments.  The issue of transferring the 
items under non-ad valorem duty to ad valorem dut y is currently being discussed in the DDA 
negotiations. In NAMA negotiations, it seems t hat there is a consensus among Members to move 
toward binding only as ad valorem duties, and we will make any revisions as necessary in accordance 
with the results of the NAMA negotiations.  On th e other hand, in Agricultural negotiations the issue 
being discussed is about tariff simplification.  The non-ad valorem tariffs of agricultural products in 
our Schedule are either specific duties or mixed du ties (ad valorem duty or specific duty, which ever 
is higher).  Since specific duty is also very trans parent and predictable, it has the merit that the duty 
amount imposed can be easily calculated without applying Customs valuation rules.  Therefore, we 
have no plan to convert non-ad valorem tariffs to ad valorem for agricultural products.  
 
(iii) para  29 – states that tariff escalation  is present in a number of sub-sectors, most notably 
textiles, petroleum, coal and non-metallic mine ral products. Tariff escalation results in a bias 
against imports of more processed goods and theref ore gives an effective rate of protection to 
the processed goods that is higher than the nominal rate. 
 ANSWER:
  
 We believe that appropriate tariff escalation on spec ific sub-sectors is necessary for the protection of 
domestic processed goods. Nevertheless, we are awar e that the issue of tariff escalation has been 
discussed in the new round of negotiations, and furt her improvement on tariff escalation will be made 
in accordance with the outcome of the WTO Doha Round of negotiations. 
 
[SWITZERLAND] 
 
III. Trade Policies and Practices by Measure 
(2) Measures Directly Affecting Imports 
(iii) Tariffs 
c Bound and applied tariffs  
According to para. 27, Chinese Taipei has provided ad valorem equivalents (AVEs) for approximately 
67.5% of non-ad valorem rates. Could Chinese Taip ei indicate for which reason it did not provide ad 
valorem equivalent for the rest of its non-ad va lorem rates ? Did Chinese Taipei provide its ad 
valorem equivalents for all its non-ad valorem rates in the context of the Doha round negotiations ?  
 
ANSWER:
  
 
At the time the WTO Secretariat drafted the Re port, we had not yet completed the ad valorem 
equivalents (AVEs) calculation for non-agricultural products, and that was the reason why we did not 
provide their AVEs in para. 27.   
The figure of 67.5% indicated in para. 27 is fo r agricultural products only. Actually, there are 
54 lines of non-agricultural produc ts subject to non-ad valorem rates, and we submitted these AVE 
calculations to the WTO Secretariat on January 20, 2006.  
The AVEs for the 54 lines of non-agricultural products  are available on the WTO website. The AVEs 
for the 106 lines of agricultural produc ts can be found on the same website. WT/TPR/M/165/Add.1 
Page 68  
 
[NEW ZEALAND] 
 
3 Tariffs:  Non-Ad Valorem   (WT/TPR/S/165 page 29, para 23,  page 25, para 2 and page 30, 
 para 27)  
 We note that non-ad valorem duties apply to 1.8% of all of Chinese Taipei’s tariff lines (around 130) 
and tend to involve high ad valorem equivalents.  The Secretariat not es that non-ad valorem rates tend 
to conceal relatively high tariff rates (given that the simple average rate for all ad valorem equivalents 
supplied is 130% - and of the top 100 tariffs 42 we re non-ad valorem rates). In its intended moves 
toward further trade liberalisation, has Chinese Taip ei considered the distorting effects of these high 
rates and will steps be taken to address this issue?   Is Chinese Taipei considering moving to an 
exclusively ad valorem tariff structure; this would provide greater certainty about tariff costs prior to 
shipping?   
What steps are being taken to remove re maining seasonal tariffs applied to fruit? 
 
ANSWER:
 
 
More than 98% of the tariff lines are already subject  to ad valorem duties.  The non-ad valorem 
duties in our Schedule are the results of accession commitments.  The issue of transferring the items 
under non-ad valorem duty to ad valorem duty is cu rrently being discussed in the DDA negotiations. 
In NAMA negotiations, it seems that there is a c onsensus among Members to  move toward binding 
only as ad valorem duties, and we will make any rev isions as necessary in accordance with the results 
of the NAMA negotiations.  On the other hand, in Agricultural negotiations the issue being discussed 
is about tariff simplification.  The non-ad valorem ta riffs of agricultural produc ts in our Schedule are 
either specific duties or mixed duties (ad valorem dut y or specific duty, which ever is higher).  Since 
specific duty is also very transparent and predictable,  it has the merit that the duty amount imposed 
can be easily calculated without applying Customs valuation rules.  Therefore, we have no plan to 
convert non-ad valorem tariffs to ad valorem for agricultural products. 
Seasonal tariffs are applied only to citrus fruits  and they are in accordance with our accession 
commitments.  We have no plan to move seasonal tariffs. 
 
4 Tariffs:  Agricultural   (WT/TPR/S/165 page 30, para 28)  
 
The Secretariat notes that agricultural products receive much higher tariff protection than non-
agricultural products, with the average MFN tariff on agricultural products applied at 22.3%.  The 
range  of tariffs is also much greater for agricultural than non-agricultural products: 
 
- What program does Chinese Taipei have for reducing and simplifying tariffs on agricultural 
products?    
- Why does Chinese Taipei maintain tariff protec tion on products when there is no (or very 
little) local production to protect (such as powdere d milk or sheep meat) – or in sectors (such 
as dairy) where many of Chinese Taipei’s companies are among the largest and most 
competitive in Asia?   
- Why does Chinese Taipei apply different tariffs  for similar products (for example, cheese is 
subject to a lower tariff than powdered milk - 5% compared with 10%)?    
 
ANSWER:  
 
We impose tariffs on agricultural products based on the results of the negotiations held upon our 
WTO accession. We will further reduce tariffs on ag ricultural products according to the outcome of 
the DDA negotiation.  On the issue of tariff simplific ation, the non-ad valorem tariffs of agricultural 
products in our Schedule are either specific duties or  mixed duties (ad valorem duty or specific duty, 
which ever is higher).  Since specific duty is also  very transparent and predictable, it has the merit  WT/TPR/M/165/Add.1 
 Page 69 
 
 
that the duty amount imposed can be easily calcul ated without applying Customs valuation rules.  
Therefore, we have no plan to convert non-ad valorem  tariffs to ad valorem for agricultural products. 
It is necessary for us to mainta in current tariffs on sheep meat, powdered milk and liquid milk 
because these are the substitutes fo r the consumption of domestic goat meat and liquid milk, which 
are sensitive.  Because powdered milk can be easily reverted into liquid milk, it is necessary to impose a higher 
tariff on it than on cheese products.  5 Tariff Peaks   (WT/TPR/S/165 page 30, para 28)  
 Reducing low tariffs while leaving higher tariffs relatively unchanged risks creating a more distorting 
tariff structure, even though aver age tariffs are reduced.  Economic efficiency and resource allocation 
would be improved most if high ta riffs were reduced first and fast.  Does Chinese Taipei agree with 
this? If so, why does it not apply such principles to th e agriculture sector, when it is applying this type 
of approach in the Doha NAMA negotiations? 
 
ANSWER:
  
 
Agriculture is uniquely multifunctional in that it provides food security, rural evelopment and environmental protection.  Therefore, in the wake of trade liberalization, certain flexibilities must be 
provided to Members so that thei r agriculture sectors can be ustained at an appropriate level of 
production to safeguard the above-men tioned non-trade concerns.  We believe that in the case of 
agricultural products tariffs simply reflect the differences between import and domestic prices, and 
that the level of a tariff does not indicate the level  of protection. Therefore, in the current Agricultural 
negotiations, we strongly support th e proposal that the linear approach, with flexibilities, be adopted 
for tariff reduction. Because the approach in the NA MA negotiations would result in those sensitive 
agricultural products with higher tariffs (in other words, with larger price differences) reducing the 
most, which would consequently le ad to the disappearance of these i ndustries. This is totally against 
the principle of flexibility provided in the Fr amework Agreement and cannot be applied to the 
agriculture sector. 
 6 Tariff Escalation  (WT/TPR/S/165 page 35, para 29)  
 The Secretariat notes that tariff escalation results in a bias against imports of more processed goods 
and therefore gives an effective rate of protecti on to the domestic processed goods that is higher than 
the nominal rate.  Consequently, in the absence of preferences, tariff escalation can impede the 
development of less industrialised members seeking to export products with  higher value added to 
Chinese Taipei.  How does Chinese Taipei intend to address its pattern of tariff escalation? 
 
ANSWER: 
 
 
Please refer to the answer to Singapo re’s question on Goods-Tariffs 1 (iii). 
 7 Tariff Quotas   (WT/TPR/S/165 page 37-8, paras 34-38)  
 
Given Chinese Taipei’s commitment to ongoing trade lib eralisation, when does it plan to remove its 
remaining Tariff Quota provisions, particularly where other substantial barriers already exist, or the 
domestic industry is well established?  What are Ch inese Taipei’s reasons for retaining Tariff Quotas 
on deer velvet, pears, persimmons, liquid milk, ga rlic, dry shitake and certain fish species?   
 
ANSWER:
  
 
We removed TRQs on chicken meat, pork belly, pork,  and poultry offals in January 2005, and we will 
further abolish the TRQs on fish and persimmons in  January 2008.  Because agriculture has multi-WT/TPR/M/165/Add.1 
Page 70  
 
functionality and the value of providing public goods  that cannot be asses sed solely by economic 
efficiency, we believe it is necessary to mainta in TRQs on certain important and sensitive products. 
 8 Tariff Quotas:  Under Fill   (WT/TPR/S/165 page 38, para 38)  
 Given that actual in-quota imports were either zero or less than 20% in a number of tariff lines, what 
reason does Chinese Taipei have for retaining these quota restrictions? 
 ANSWER:
 
  Regarding the nil quota fill-rate for some specific pr oducts, this is because related products from 
main exporting countries do not meet with our SPS requirements. With respect to the under-filled 
quotas, it is a result of domestic market factors, such  as over-supply and declining consumption. Since 
these products are important and sensitive for us , we would like to maintain the TRQ system. 
Furthermore, my government rea ffirms its commitment to ensu re the transparency, equity, and 
efficiency of its TRQ administration. 
 
[JAPAN] 
 
Report by the Separate Customs Territory  of Taiwan, Penghu, Kinmen and Matsu 
(WTO/TPR/G/165)> 
III. ECONOMIC AND TRADE POLICY REGIME (2) Implementation of Accession Commitments 
(i) Tariff  (Page 5, paragraph 18)  (Ref. page 30, paragraph 26 of the Report by the Secretariat (WT/TPR/S/165))  
Japan appreciates that many tariffs have reduced during the WTO accession process.  However, Japan 
hopes that the tariffs of the following items will be  further reduced under the on-going negotiations in 
the current round.   
 1. Please indicate prospects for the further reduc tion of the tariffs of the following items. 
(a) automobile parts  
(b) sake and shochu  (a distilled alcoholic beverage)  
 
In particular, the tariff rate of sake and shochu  (40%) is quite high, compared to the tariff rates of 
other alcoholic drinks, such as whisky (0%), beer (0 %) and wine (10%). Japan recognizes that this is a 
substantial barrier for market access.  Therefore, Japan hopes that a drastic reduction of the tariffs of 
sake and shochu  will be realized. 
 
ANSWER:
 
 
In fact, the current tariff rates for automobile parts, sake and shochu were determined during our 
WTO accession negotiations. We will further reduce the tariffs on these products according to the 
outcome of the Doha Round of negotiations.  
[AUSTRALIA]  III. Trade Policies and Practices by Measure 
(2) Measures Directly Affecting Imports 
(iii) Tariffs 
 Chinese Taipei has tariff quotas on a number of agricultural and fish imports.  The Secretariat 
(WT/TPR/S/165, page 38, para 38) has noted qu ota underfill is occurring across a range of these 
products.  For such products, what then is the purpose of retaining the quota restrictions and  WT/TPR/M/165/Add.1 
 Page 71 
 
 
accompanying allocation arrangements.   Has Chinese Taipei considered simply applying the in-quota 
tariff without quantitative restric tion and related formalities?  
 ANSWER:
  
 We removed TRQs on chicken meat, pork belly, po rk, and poultry offals in January 2005. We will 
further abolish the TRQs on fish and persimmons in January 2008. Because agriculture has multi-
functionality and the value of providing public goods  that cannot be asses sed solely by economic 
efficiency, we believe it is necessary to mainta in TRQs on certain important and sensitive products. 
 
[US] 
 
Measures Directly Affecting Imports – Tariffs - Tariff Structure 
 2. We have been made aware that Chinese Taipei  has recently decided to follow WCO rules and 
re-classify polymeric positive temperature coefficient (PPTC) thermistor devices under 
HS 8533.   
 
A) Is this correct?    ANSWER:
  
 Yes.  It is correct that we have decided to fo llow the decision of the WCO/HS Committee on the 
classification of PPTC devices. The Ministry of Finance announced the adoption of HS 853329 for 
PPTC devices on October 7, 2005. 
 
B) Notwithstanding this decision to come into  conformance with WCO guidelines, is Chinese 
Taipei continuing to try to collect duties and pe nalties for PPTC devices imported before the re-
classification?  If so, what is the basis for this effort?  
 
ANSWER: 
 
 
Based on documents detailing the discussion and decisions of the WCO/HS Committee (NC0830E 1 and Annex F/9 to Doc.NC0892E2), it seems that HS 8533 and HS 8536 are both possible headings for 
the classification of PPTC devices. Thus, the heading which we apply – 8536 – is appropriate, and the 
duties for PPTC devices imported before re-classi fication are being collected. In addition, with 
reference to the importation of PPTC devices for th e period from 1999 to 2002, this case involved 
false declaration, violating the relevant article of our Anti-Smuggling Act, our customs authority 
therefore decided to issue a disposition notice for penalty. For cases under the administrative and 
court relief process, the Ministry of Finance will respect the decisions made by the Petitions and 
Appeals Committee and the courts, respectively.  
Measures Directly Affecting Imports – Tariffs - Bound and Applied Rates 
 3. In Chart III.1, entitled “MFN tariff averages by  HS section, year 2002 compared to 2005” on 
page 32, the Secretariat reported a higher 2005 MFN ta riff average than that in 2002 for Chapter 02, 
which is vegetable products.  The tariff rate averag es for other sections in 2005 are lower than the 
2002 levels.   
 
While Chinese Taipei’s tariffs continued to decline from 2002 to 2005, what is the reason for the tariff 
increase in 2005 for that specific section? WT/TPR/M/165/Add.1 
Page 72  
 
ANSWER:
  
 We adopted HS 2002 as of December 19, 2003. The tariff that for vegetable in 2005 is higher than 
that in 2002 is due to the HS2002 conversion.  
4. In Table III.3, entitled “Summary analysis of the Chinese Taipei’s MFN tariff, 2002-05” on 
page 33, the Secretariat reported an MFN 2005 tari ff range of 0-1,069.9% under the Section “Coffee 
and tea, cocoa, sugar, etc.”    
Please specify which product(s) classified under this  category are subject to the 1,069.9% rate. 
 
ANSWER:
  
 
That would be “rolled or flaked rice,” classifie d under tariff number 11041910 in  our tariff schedule. 
The figure of 1069.9% is an AVE that comes from a non-ad valorem rate of NT$49/kg (out-of-quota 
rate).  
[COLOMBIA] 
 
Literal iii)  Aranceles.  
A) En el párrafo 29 se afirma que: “La progresividad arancelaria da lugar a un sesgo contra las 
importaciones de productos más elaborados y pro porciona en consecuencia un nivel efectivo de 
protección a los artículos elaborados más alto que el  tipo nominal.  En consecuencia, de no aplicarse 
el SGP u otras preferencias, la progresividad arancelar ia puede obstaculizar la industrialización de 
los países en desarrollo y los países menos adelant ados que tratan de exportar productos de mayor 
valor añadido al Taipei Chino.”  
 
¿Qué medidas ha tomado o piensa tomar el Taip ei Chino para contrarrestar la progresividad 
arancelaria y evitar que se obstaculice el acceso de  los países en desarrollo y menos adelantados? 
 
ANSWER:
  
 
Please refer to the answer to Singapo re’s question on Goods-Tariffs 1 (iii). 
 B) En el párrafo 32 se menciona que: la alteración del “ entorno operacional razonable” da lugar 
a que el Ministerio de Hacienda aj uste los derechos de aduana de ma nera extraordinaria en el Taipei 
Chino o en Ultramar.  
 
¿Qué se entiende por “entorno operacional razonable” ? 
 ANSWER:
  
 The application of the condition “reasonable operational  environment” is to avoid our firms being 
disrupted in their business by any extraordinary economic situation. For example, to prevent the 
spread of “foot and mouth” disease in 2002, we te mporarily reduced the statutory rate of the” 
vaccines against foot and mouth” by half so as to provide a reasonable operational environment for 
the animal industry.  
Literal iv)  Otras cargas aplicadas a las importaciones. 
 
A) En el párrafo 39 se afirma que los derechos de  aduana y los impuestos de consumo sobre las 
materias primas son reintegrables.  
  WT/TPR/M/165/Add.1 
 Page 73 
 
 
¿Podría explicarse en que condiciones tales derechos e impuestos son reintegrables?  
 
ANSWER:   
 
According to the Customs Act, customs duty paid on raw materials used in the manufacture of articles 
intended for export is refundable following exportation of the finished products according to the raw 
materials in the quantity required for normal prod uction, unless the item of duty refund has been 
cancelled by the Ministry of Finance by public notice or the amount of the refundable duty, or 
percentage of it in the FOB price of the finished products is lower than the limit prescribed by the 
Ministry of Finance. 
 
[COSTA RICA] 
 
A. Políticas y Prácticas Comerciales, por Medidas - Medidas que Afectan Directamente a las Importaciones  
- Contingentes  
Se indica en la nota al pie de página 30, del párrafo   35 (página 42), que con el método de asignación 
anticipada, los contingentes se asignan de conformi dad con el orden de presentación de solicitudes, 
por sorteo o sobre la base de importaciones precedentes.  A este respecto:  
6. ¿Cuál es el criterio para utilizar uno u otro método? 
 ANSWER:
 
 The methods of TRQ allocation to which agricultura l products are subject are implemented according 
to the Working Party Report of our accession. 
 7. ¿Se encuentra establecido en alguna norma o reglamentación, o es una decisión discrecional 
del Ministerio de Hacienda optar por un método para un período determinado?  
 ANSWER:
 
 The methods of TRQ allocation to which agricultura l products are subject are stipulated in the 
Working Party Report of our accession.  
8. ¿El método cambia para cada producto, o un mi smo contingente puede ser asignado bajo dos 
métodos? 
 
ANSWER:
  
 
According to the Working Party Report of our a ccession, a method of allocation applies to some 
specific products, and furthermore an annual quota of a specific product will be allocated under the 
same method of allocation. 
 9. ¿Para los productos agrícolas se aplica únicament e el método de asignación anticipada o también 
el de subasta?¿  ANSWER:
  
 The method of allocation in advance is a comprehen sive expression, which refers to different ways of 
allocation, including open bidding. WT/TPR/M/165/Add.1 
Page 74  
 
10. ¿Los solicitantes que no hayan realizado im portaciones en período anteriores, pueden 
participar en la asignación bajo el sistema de asignación anticipada?  ¿Existe un porcentaje determinado al cual puedan tener acceso los nuevos solicitantes? 
 
ANSWER:
  
 
Two years after our accession to the WTO, as co mmitted, applicants with no record of import could 
apply for the unused quota annually on a first come, first served basis. 
 
11. ¿Existe algún período de devolución ordinaria de  contingentes sin utilizar, de manera que el 
beneficiario no sea penalizado con la  exigibilidad de la garantía? 
 
ANSWER:  
 
Recipients aren’t allowed a refund of their perfor mance bond if they fail to use their quota within the 
valid period. According to Article 11-1 of “The Regulations of Tariff Quota”, recipients may apply 
for a return of the performance bond after the import ation of goods within the valid period of the 
tariff quota certificate.  
12. ¿Se dispone de algún método para asignar cuotas devueltas? 
 ANSWER:
 
 The method for reallocation of unused quota would be according to the Working Party Report of our 
accession.  
13. ¿Cuál es la base para la fianza de utilización de contingentes?  ¿Es fija, o varía según el 
producto y el monto asignado? 
 
ANSWER:
 
 
Under the open bidding method, recipients have to h and in the deposit which is based on 10% of their 
bidding. 
 
14. ¿Las prima pagadas por los interesados en participar en la asignación de contingentes por 
subasta, es devuelta a los participantes que no logran cuota de participación? 
 
ANSWER:   
 
Yes, the deposit will be refunded to applicants if they don’t acquire the quota. 
 
15. ¿Además de la exigibilidad de la garantía, ha y implicaciones en asignaciones futuras, por no 
utilización de las cuotas asignadas? 
 ANSWER:
  
 Recipients who can’t utilize their quota won’t affect their future application. 
 16. ¿Es requisito estar inscrito en la Oficina de Comercio Exterior para solicitar asignación de 
contingentes, o es factible acceder a la asi gnación y después proceder a la inscripción?  WT/TPR/M/165/Add.1 
 Page 75 
 
 
ANSWER:  
 Any enterprise registered as an Importer/Exporter would be eligible to apply for certificates under 
each of the quota allocation system. That means applicants have to register with the Bureau of 
Foreign Trade (under the Ministry of Economic Affa irs) to be an importers/exporters before they 
apply for quota allocation. 
 
Exenciones arancelarias y concesiones 
 En el párrafo 32 (página 41) se indica que el “ Ministerio de Hacienda está autorizado a ajustar los 
derechos de aduana para hacer frente a una situación económica "extraordinaria" en el Taipei Chino 
o en ultramar, para ajustar la oferta de merc ancías, o para establecer un "entorno operacional 
razonable" sin obtener la aprobación previa del legislativo.
9  Se permiten ajustes dentro del 50 por 
ciento del tipo de derecho o la c antidad legales, y pueden aplicarse hasta  un máximo de un año.  Con 
este procedimiento el Ministerio de Hacienda reduj o los derechos de aduana sobre los fertilizantes 
del 2 por ciento al 1 por ciento en 2004 (cuadro III.4).”  
17. ¿Esta posibilidad de ajustar los derechos de a duana está disponible para todos los productos 
del arancel?   ANSWER:
 
 This kind of adjustment is applicable to a ll tariff lines in the Customs Import Tariff. 
 
18. ¿Los derechos se pueden ajus tar también hacia arriba? 
 
ANSWER:
  
 The said adjustment includes duty increase. How ever the tariff rate after adjustment should not 
exceed the bound rate of WTO commitment.  
19.  ¿Cuando se ajusta un arancel de esta manera en qué medio se publica la decisión? ¿En un 
diario oficial, periódicos de circulación nacional? 
 
ANSWER:
  
 
In the case of the said duty adjustment on import g oods, the Ministry of Finance will promulgate in its 
bulletin board. In addition to th e promulgation process, the inform ation about the duty adjustment 
can also be found on Ministry of Finance’s web site. 
                                                      
9 Artículo 71 de la Ley de Aduanas. WT/TPR/M/165/Add.1 
Page 76  
 
7. OTHER CHARGES
 
 
[SWITZERLAND] 
 
III. Trade Policies and Practices by Measure 
(2) Measures Directly Affecting Imports 
(iv) Other charges affecting imports  
Question: (Para. 42.)  
 
Although non-Chinese Taipei and domestic ships are subject to the same harbour dues for the same 
shipping routes, harbour dues are higher for overseas than for domestic routes. The reason given by 
Chinese Taipei is that there are differences in the quality of services provided on these routes.  
 
Could Chinese Taipei provide more information on what are the differences of the services provided and for which routes? Switzerland considers that there could be a risk of de facto  discrimination 
against foreign ships and would seek clarificati on on this from Chinese Taipei, especially on how it 
guarantees that there is no such de facto discrimination.  
ANSWER:
 
 Domestic routes, considered internal affairs, en joy cabotage rights, but the granting of such rights 
does not constitute unfair treatment of international  routes.  Furthermore, the wharfs and handling 
facilities for domestic shipping routes and cargos are in ferior to those for international routes, and it 
is unnecessary for officials to conduct customs cl earance, quarantine and security on cargo that is 
shipped domestically. Therefore, the commercial port dues for domestic shipping routes are lower 
than those for international routes, and non-Chin ese Taipei ships approved to operate on domestic 
routes    enjoy the same discount. 
 
[NEW ZEALAND] 
 
10 Charges Affecting Imports   
 
Question: (WT/TPR/S/165 page 25, para. 3 and page 39, para. 42) 
 
We note that additional charges, such as harbour  service dues, are imposed on Chinese Taipei imports 
at a rate 60% higher than that applied to domestic trad e.  As part of its moves toward liberalization, is 
Chinese Taipei considering removing such provisions , or applying them in a manner which has a non-
discriminatory outcome?   ANSWER:
 
 Please refer to the answer to Switzerland’s question on Para. 42. 
 
[CHINA] 
 
III. Trade Policies and Practices by Measure (1) Introduction 
 
Question 8: (Secretariat Report p. 25 para. 3)  
 
The Secretariat Report states:  "Additional charges, such as a trade promotion service fee and harbour 
service dues, are imposed on Chinese Taipei's imports and exports. Harbour-service dues on domestic 
trade are 60% lower than those for overseas routes."  WT/TPR/M/165/Add.1 
 Page 77 
 
 
 Could Chinese Taipei explain the rationale why ha rbour-service dues on its imports and exports are 
60% higher than those on domestic trade? 
 
ANSWER:
 
 
Please refer to the answer to Switzerland’s question on Para. 42. 
[US] 
 Measures Affecting Imports – Other Charges Affecting Imports  
 
Question 5.   
The Secretariat Report related in paragraph 41 on page 39 that Chinese Taipei levies a Trade 
Promotion Service Fee at a rate of .04 25% of the price of exports and imports. 
 
Please describe the services provided to importers by The Trade Promotion Fund and explain how this ad valorem  charge relates to the cost of the services provided. 
 
ANSWER:
 
 
The trade promotion fee rate was recently reduced  to 0.0415%. It is collected on all imports and 
exports exclusively to promote import and export trade. The amount collected approximates to the 
cost of services rendered.  The services provided include trade promotion projects, assistance during 
incidences of unfair trade practices, expansion of bu siness markets, and the training of international 
trade talent. 
 
8. IMPORT PROHIBITIONS, RESTRICTIONS AND LICENSING  
 
[SWITZERLAND] 
 
II. Trade Policy Regime:  Framework and Objectives 
(4) Trade Agreements and Arrangements 
(i)  Multilateral agreements 
 Para. 15 indicates that in accordan ce with its laws and regulations , Chinese Taipei prohibits inbound 
cross-strait trade involving some 2,200 tariff lines (HS 10 digit level), i.e. more than 20% of the 10,922 total number of tariff lines at the HS-10 dig it level. Could the authorities of Chinese Taipei 
indicate the main sectors/products concerned and the economic significance of these as a percentage 
of total cross-strait imports flows? Also, are there any plans to reduce the size of these trade 
prohibitions in the coming years?  
 
ANSWER:
  
 
1. Status of the importation prohi bition on commodities from China:   
 As of 31 May, 2006, the importation from China of a total of 2,237 items, accounting for 20.50% of 
the 10,910 items under the HS ten-digit code, is prohi bited. (Prohibited items are listed according to 
the chapter in the attachment; the main items are iron and steel, meat and edible meat offal, cotton 
and articles thereof) Of those items, 1,395 are in dustrial products and 842 are agricultural goods. 
 WT/TPR/M/165/Add.1 
Page 78  
 
2. Economic significance of the policy proh ibiting importation of goods from China
:  
 Currently, all the items of which imports from Chi na are prohibited are considered as sensitive items. 
Therefore, any relaxation of import restrictions would have far-reaching negative impacts on the 
domestic economy and industries. The actual level of negative influence is difficult to estimate. 
 
3. Plan to reduce the number of prohibited items:
  
 Interested parties may apply to the Bureau of Foreign  Trade (BOFT) for a review of lifting an import 
ban on a specific item. In an attempt to further lib eralize imports from China, the BOFT not only 
holds regular meetings once every two months to review applications from individuals, but also 
conducts once every six months regular, comprehensive reviews of all the remaining items that are 
still subject to import restrictions. 
 
[CHINA] 
 
(2) Measures Directly Affecting Imports 
 Question 10: (Secretariat Report p.14 para.4 & P.17. para.15; p.40 para.46) 
 
The Secretariat Report states:  "According to the au thorities, Chinese Taipei’s obligations under the 
WTO Agreement supersede those under domestic laws  or regulations in the event of conflict." 
"Chinese Taipei applies its MFN tariffs to all tradi ng partners." In practice, however, "Chinese Taipei 
prohibits inbound cross-strait trade involving some 2200 tariff lines (out of its total number of 10922 
tariff lines at the HS 10-digit level) in accordance wi th its laws and regulations", which are apparently 
inconsistent with Chinese Taipei’s self-declarati on of "WTO Agreements su perseding domestic laws 
and regulations" as stated above. 
 The Secretariat Report also states:  “As at early February 2006, 56 items (0.5% of total tariff lines, HS 
ten digits) are prohibited from importation into Ch inese Taipei (these do not include prohibitions on 
cross-strait trade concerning some 2,200 tariff lin es, which are governed under specific laws and 
regulations concerning cross-strait trade). These 56 it ems involve mainly products....that are subject to 
trade restrictions under international agreements. 
 
1. Please explain the rationale behind the ban on importing 56 items from other Members.  
 2. Chinese Taipei prohibits the importation of  2,200 tariff lines of products from China, 
excluding those subject to special accession commitments. Please explain on the conformity between 
the policy and the universally applied WTO prin ciples and rules as well as Chinese Taipei’s other 
general accession commitments.  
 
3. What criteria does Chinese Taip ei use to decide on and adjust the 2,200 tariff lines subject to 
import prohibition?  
 
4. Please provide a plan and a timetable on th e elimination of these prohibitive measures. 
 ANSWER TO Q1:
  
 A total of 56 items listed in Table AIII.2 are prohi bited from importation in order to protect public 
morals, and human life or health, and to fulfil obligations under international agreements in 
accordance with Article XX of GATT 1994.    WT/TPR/M/165/Add.1 
 Page 79 
 
 
ANSWER TO Q2:   
 Cross-strait relations are special and complex. Int eraction between the two sides involves much more 
than simple trade issues. Moreover, as both parties joined the WTO at around the same time, they did 
not engage in accession negotiations with each ot her under the WTO framework. Consequently, since 
becoming a Member of the WTO, we have not immedi ately been able to carry out a comprehensive 
overhaul of cross-strait trade and economic regulations.  
 
Nevertheless, we have shown a high degree of sin cerity in taking unilatera l steps to greatly ease 
restrictions on cross-strait trade and economic  activities, and have repeatedly made public 
announcements of willingness to conduct trade negotiations with China, with a view to facilitating the 
gradual normalization of trade and economic relations between the two sides. 
 ANSWER TO Q3:
  
 
Pursuant to Article 8.1 of the relevant regulati ons concerning cross-strait trade, the Ministry of 
Economic Affairs will lift restrictions on imported goods  originating in China as long as such 
deregulation fulfils the conditions set forth in the regulations.  
ANSWER TO Q4:
  
 
Interested parties may apply to the Bureau of Foreign  Trade (BOFT) for a review of lifting an import 
ban on a specific item. In an attempt to further lib eralize imports from China, the BOFT not only 
holds regular meetings once every two months to review applications from individuals, but also 
conducts once every six months regular, comprehensive reviews of all the remaining items that are 
still subject to import restrictions. 
 
[JAPAN] 
 
III. Trade Policies and Practices by Measure 
(2) Measures Directly Affecting Imports 
(v) Import prohibitions, restrictions, and licensing (Page 40, paragraph 46)   As the Report (WT/TPR/S/165) points out, there are ma ny prohibitions on cross-strait trade.  Japan 
recognizes that the purposes of laws and regulati ons concerning cross-strait trade include the 
protection of domestic industries in addition to security reasons.  
11. As for these laws and regulations, please explai n their conformity with the WTO Agreements.  
 
ANSWER:
 
 
Please refer to the answer to China’s question 10, sub-question 2.  
[CANADA] 
 
Report by the Secretariat (WT/TPR/S/165)  Part III. Trade Policies and Practices by Meas ure, (2) Measurements Directly Affecting 
Imports, (v) Import prohibitions, restrictio ns, and licensing, page 40, paragraph 46: 
 
The Secretariat Report says that as of early Febr uary 2006, 56 items are prohibited from importation 
into Chinese Taipei. These doe not include prohi bitions on cross-strait trade concerning some 
2200 tariff lines, which are governed under specific la ws and regulations concerning cross-strait trade. WT/TPR/M/165/Add.1 
Page 80  
 
1. Can Chinese Taipei explain the basis on which products are included on the list of prohibitions on cross-strait trade?   ANSWER:
 
 Please refer to the answer to China’s question 10, sub-question 2. 
 
Part III. Trade Policies and Practices by Measu re, (2) Measures Directly Affecting Imports, 
(v) Import prohibitions, restrictions a nd licensing, page 41, paragraph 48:  
 The Secretariat Report states that the List of Commodities Assisted by Customs for Import 
Examination includes drugs, medicines, and medica l devices, that these can be imported only if 
approved by the relevant authorities in charge of various sector-specific laws, and notes that according 
to the authorities these requirements are not generally trade restrictive.  
Canadian exporters of these products have iden tified lengthy regulatory approval processes that 
exceed international norms. 
 
2. Is Chinese Taipei considering the establishmen t of a mechanism to accelerate approvals?  
 ANSWER:
  
 Statistical data indicates that the average review time for a new drug is 4.4 months This is not long, in 
comparison to 15.4 months in the US FDA, 12 months in Japan, 9.4 months in the European Union 
and 6-10 months in Canada.  In addition, we have set the target of next year to reduce at least 10% of the review time on the user-fee based system. 
 
Starting 12 April, 2006, the application for registra tion of a Class 1 medical device can be filed in 
person and its approval may be granted on the same day. 
 
3. Does Chinese Taipei recognize some foreign regul atory systems in these sectors and not others?  
 ANSWER:
  
 
To comply with international norms, we make  reference to international activities in its 
pharmaceutical regulatory issues, such as theI nternational Conference on Harmonization (ICH), the 
Global Harmonization Task Force (GHTF), the Asian Harmonization Working Party (AHWP), Drug 
Information Association (DIA) meetings, and International Pharmaceutical Federation (FIP) 
meetings. It has also hosted serious int ernational conferences of the APEC Network on 
Pharmaceutical Regulatory Framework since 2000 in order to have a dialogue with major regulatory 
bodies. 
The medical device GMP requirements announced by Department of Health (DOH), are based on the 
ISO13485 international standard for quality syst ems.  DOH also recognizes over one hundred 
international standards for medical devices that can be voluntarily adopted by all foreign and 
domestic manufacturers for use in their product. 
 
[KOREA] 
 
Tariff Barriers  (WT/TPR/G/165, p.5, para.18) 
 
4. Local content requirements on imported autom obiles and motorcycles was scheduled to be 
removed with Chinese Taipei's accession to the WTO.   WT/TPR/M/165/Add.1 
 Page 81 
 
 
Would the Chinese Taipei government explain whether the import regulations on motorcycles that has capacity of 150 CC or above have actually been removed as planned?   
ANSWER:
  
 
Yes, import prohibition on motorcycles with a capa city of 150 CC or above was removed as planned 
from 1 July, 2002. 
 
9. CONTINGENCY MEASURES  
 
[SINGAPORE] 
 
Trade Contingency Measures 
3 We note that Chinese Taipei has generally re frained from using trade contingency measures 
since it acceded to the WT O.  It is noted that Chinese Taipei  has not imposed any countervailing or 
safeguard measures since its accession. However, we note that as of Dec 05, three anti-dumping 
measures were in force on two products.  
While we commend for its restrained use of trad e contingency measures, we would appreciate if 
Chinese Taipei could indicate when these anti-dumping measures would expire.  
 
ANSWER:   
The expiry dates for the anti-dumping measures t hat are currently in force (April 2006) on two 
products are as follows: 1) For art paper from J apan, the judgment took effect as of 20 July 2000. 
Based on the results of a sunset review, it will remain in force until 2 March 2011: 2) For Portland 
cement from the Republic of Korea and the Philippi nes, the measures will expire on 18 July 2007. 
 [EC] 
 
Contingency Measures 
WTO Secretariat’s Report, page 43, para 56 
Does Chinese Taipei consider re-instating the "Rules for Handling Import Relief Cases Regarding 
Textiles and Clothing" should circumstances require it?  
ANSWER:
  
The “Rules for Handling Import Relief Cases Re garding Textiles and Clothing” were abolished on 
4 April, 2005 with the expiry of  the “Agreement on Textiles and Clothing (ATC)” on 1 January, 2005. 
The regulation with respect to transitional textile sa feguards, originally stipulated in the “Rules for 
Handling Import Relief Cases Regarding Textiles and Clothing” pursuant to Report of the Working 
Party on the Accession of China, has been moved to Chapter 4-2 of the “Rules for Handling Import 
Relief Cases”. Therefore, at present we do not exp ect to re-instate the “Rules for Handling Import 
Relief Cases Regarding Textiles and Clothing”.  
[HONG KONG, CHINA]  
Antidumping  
(WT/TPR/S/165, P. 41-42, Para. 51) 
2. It is noted that the Regulation on anti-dumpi ng was last amended in February 2005.  We are 
interested in knowing whether there is any plan to further amend the Regulati on. In this connection, WT/TPR/M/165/Add.1 
Page 82  
 
we would like to know whether the test of “public interest” is currently featured in anti-dumping 
investigations of Chinese Taipei; and if not whethe r there is plan to introduce the test in future? 
ANSWER:
  
1. At the present time, we have no furt her plans for amending the Regulation. 
2. We have taken public interest into considerati on when deciding whether or not to impose an 
anti-dumping measure. However, there has not yet been any determination that imposition of anti-
dumping duty be changed as a result of the consideration of public interest. 
 
[COLOMBIA] 
 
Parte III, literal vi), b) párrafo 55.  Medidas de emergencia (salvaguardias), se menciona que "La Ley 
de Aduanas establece que las autoridades pueden tomar represalias contra cualquier trato  
discriminatorio de las mercancías exportadas del Taipei Chino o transportadas en medios de 
transporte del Taipei Chino".... Al respecto, sería ú ltil pedir se aclare el alcance de esta disposición, ya 
que al no estar explícito si las represalias aplican únicamente a mercancías originarias de ese territorio 
aduanero, podría inferirse que di cho país puede tomar represalias cuando una mercancía de cualquier 
origen se comercialice a través de Taipei (por ejempl o, mercancía originaria de China continental que 
sea objeto de medida discriminatoria). 
 
ANSWER:   
The meaning of retaliation measures against any discrminatory treatment on our export goods or 
goods carried by our means of transport stipulated in  our Customs Act, para. 55, is not related to the 
definiton of safeguard measures prescribe d in the WTO Safeguards Agreement. 
- According to the conditions prescribed in Ar ticle 70 in the Customs Act, we will take 
retaliation measures against those countries that have implemented discriminatory treatment on our 
export goods or goods carried by our means of transport. We would like to reiterate that, to date, not 
a single retaliatory measure has been imposed ag ainst any country in accordance with the above 
provision. 
 
[COSTA RICA] 
Medidas Antidumping y Salvaguardias  
 En el párrafo 52 se señala que los procesos de  aplicación de derechos antidumping o medidas 
compensatorias pueden iniciarse por solicitud escrita de los productores o de asociaciones comerciales, industriales, laborales o de agrícol as afines o de otras organizaciones legales.   
 
20. ¿Bajo su legislación doméstica procede que asociaciones laborales tengan legitimidad activa 
para presentar una solicitud de inicio en un proced imiento antidumping? ¿Cuál es el alcance de la 
figura de “otras organizaciones legales?  
 
ANSWER:
  
Yes, labour associations which are legally establis hed and can be identified as being representative of 
the domestic industry, may apply for the impositi on of an anti-dumping duty against the imported 
product on behalf of the industry manufacturing the like product.  
As for the definition of other legal organizations indicated in our Implementation Regulations on the 
Imposition of Countervailing and Antidumping Duties, this relates to any associations as long as they 
are legitimately established and can be identified as being representative of their domestic industry.    WT/TPR/M/165/Add.1 
 Page 83 
 
 
En el párrafo 55 (salvaguardias) se señala que “La Ley de Aduanas establece que las autoridades 
pueden tomar represalias contra cualquier trato di scriminatorio de las mercancías exportadas del 
Taipei Chino o transportadas en medios de trans porte del Taipei Chino”.  De conformidad con las 
normas de la OMC, una medida de salvaguardia consiste es el resulta do de un procedimiento 
administrativo para inhibir importaciones masivas que causan o amenazan causar daño a un sector productivo nacional.  
 
21. ¿Por qué se define la imposición de una medida de salvaguardia  como la potestad de “tomar 
represalias contra cualquier trato discriminatorio”?  
 
ANSWER:
  
The meaning of retaliation measures against any discrminatory treatment on our export goods or 
goods carried by our means of transport stipulated in  our Customs Act, in para 55, is not related to 
the definititon of safeguard measures presc ribed in the WTO Safeguards Agreement. 
 
10. GOVERNMENT PROCUREMENT  
 
[JAPAN] 
Report by the Secretariat (WT/TPR/S/165) 
III. Trade Policies and Practices by Measure 
(2) Measures Directly Affecting Imports 
(vii) Government procurement  
(Page 43, paragraph 58)  
According to the Report (WT/TPR/S/165), a procur ement opportunity database has been established. 
12. Please indicate specifically what is a proc urement opportunity database.  Is it possible to 
access the procurement opportunity database from outside the Territory? 
 
ANSWER:  
In order to enhance transparency of government pr ocurement, we have developed a database system 
named “Government Procurement Information System” (GPIS) （http://web.pcc.gov.tw ） to collect 
and compile tendering and award information. Ad ditionally, with a view to making government 
procurement information more transparent, we ha ve undertaken a program of publishing English 
summary tendering notices for procurements that ma y be covered by GPA in the future in the 
Government Procurement Information System. This program has started on Jan. 1, 2005. There have 
been 1,577 English summary tendering notices published till April 30, 2006. 
 (Page 45, paragraph 63)  
According to the Report (WT/TPR/S/165), the law, which entered into force in May 1999, allows 
procuring entities to request tenderers to purchase lo cally produced goods, to transfer technology, to 
make an investment, to facilitate local exports, or to take any other simila r measures; such requests 
are to be realized within the context of  industrial cooperation programmes (ICPs). 
13. In this regard, please explain the conformity  with the non-discriminatory principle in the 
WTO Agreement on Government Procurement which Chinese Taipei is seeking to access. 
 
ANSWER: 
 
According to Articles 43 and 44 of the Govern ment Procurement Act, an entity conducting a 
procurement may adopt some ICPs measures, exc ept otherwise prohibited by the treaties or 
agreements to which we are a party. Once beco ming a party to the WTO Agreement on Government WT/TPR/M/165/Add.1 
Page 84  
 
Procurement (GPA), we will adopt ICPs measures under the norms of the GPA for Procurements 
covered by GPA.  
[EC]  
Government Procurement 
WTO Secretariat’s Report , page 43ff 
 - Paragraph 57:  Does the domestic suppliers preference over non-Chinese Taipei suppliers 
apply only for the case mentioned in paragraph 63, namely a maximum 3% price preference 
when a local supplier contributes at least 50% added value ? 
 ANSWER:
  
According to Articles 43 and 44 of the Government  Procurement Act, local/foreign suppliers or 
local/foreign products may be accorded differential treatments except otherwise prohibited by the 
treaties or agreements to which we are a party. Such treatments may incl ude domestic content, 
technology transfer, investment, export facilitation or  price preference by 3%  maximum. The margin 
of preference and the starting and the expiry dates of the preference period for particular tenders are 
to be published in the Government Procurement Gazette. Since the Government Procurement Act 
came into effect in May 1999, there is no such  preference being published as the scope which the 
preference may be adopted has not been prescribed yet. 
- Paragraph 61:  Is the GPIS (government procurement information system) database available 
in English? Does the electronic procurement syst em through the Internet cover or will cover 
in the future all tenders published in the da ily Government Procurement Gazette? Does it 
include parts in English? 
 ANSWER:
 
The GPIS (government procurem ent information system) database is  mainly in Chinese. However, 
with a view to making government procurement information more transparent, we have undertaken a 
program of publishing English summary tendering no tices for procurements that may be covered by 
GPA in the future in the GPIS. This program has started on Jan. 1, 2005. There have been 
1,577 English summary tendering notices published till April 30, 2006. The electronic procurement 
system through the Internet covers all tenders publis hed in the daily Government Procurement 
Gazette. 
 - Paragraph 62:  Can Chinese Taipei provide examples of "due proper cause"? 
 
ANSWER:
  
 
According to Article 6 of the Government Procurem ent Act, an entity shall observe the principle of 
protecting public interests, fairness and reasonableness,  and shall not accord differential treatment to 
suppliers without due cause. For example, accord ing to Articles 43 and 44 of the Government 
Procurement Act, local/foreign suppliers or loca l/foreign products may be accorded differential 
treatments except otherwise prohibited by the trea ties or agreements to which we are a party. Such 
treatments may include domestic content, technology  transfer, investment, export facilitation or price 
preference by 3% maximum. 
  WT/TPR/M/165/Add.1 
 Page 85 
 
 
[CANADA] 
 
Part III. Trade Policies and Practices by Measu re, (2) Measures Directly Affecting Imports, 
(vii) Government Procurement, page 43, paragraph 57: 
 
The Secretariat Report states that although Chinese Ta ipei has reached agreem ent on the substance of 
its terms of accession to the Agreement on Government Procurement, the formal decision on 
accession has yet to be taken. 4. Could Chinese Taipei clarify the ways in whic h its current practices are not consistent with 
the Agreement on Government Procurement?  
 
ANSWER:
 
 
Since the enactment of the Government Procur ement Act in 1999, our government procurement 
practices have been in conformity with the Agreement on Government Procurement. 
 
[COLOMBIA] 
 
Literal vii)  Contratación Pública.  
 
A) Podrían explicar en forma detalla da ¿En qué consiste una contra tación pública en el marco de 
un "Programa de Cooperación Industrial"?, como el señalado en el párrafo 63.  En especial, sería 
importante conocer si este tipo de programas está dirigido a la contratación de ciertos bienes o 
servicios, y si los contratos son celebrados por un  determinado grupo de entidades. Adicionalmente, 
sería conveniente que nos presenta ran algunos ejemplos de contrato s enmarcados en Programas de 
Cooperación Industrial.  ANSWER:
  
 
According to the Government Procurement Act, excep t as otherwise prohibited by the treaties or 
agreements to which we are a party, an entity co nducting a procurement may adopt the industrial 
cooperation program (ICP).  
 B) El mismo párrafo 63 señala que las preferencias a proveedores locales pueden llegar hasta el 
3%.  Sin embargo, se entiende que dado que la Ley de Contratación Pública que autoriza la aplicación de estas preferencias entró en vigencia en 1999, to davía no se ha reglamentado la aplicación de éstas, 
y por lo tanto las entidades no las incluyen en su s contrataciones. Si esto es correcto, por favor 
confirmar si existe un proyecto para reglamentar las preferencias. De existir el proyecto, por favor explicar cuándo y cómo será la aplicación de las éstas. 
 
ANSWER:
  
 
There in no such preference plan so  far. If there will be any such plan in the future, it will not apply to 
procurements covered by GPA, and will be in conformity with the provision of Article 44 of the 
Government Procurement Act.  
 
[COSTA RICA] 
 
Contratación Pública 
 12. ¿Cómo se garantiza el principio de transparencia en una licitación selectiva? 
 WT/TPR/M/165/Add.1 
Page 86  
 
ANSWER:
 
 Since the enactment of the Government Procuremen t Act (hereinafter referred to as the "Act") in 
1999, our government procurement system has conf ormed to international norms. While conducting 
procurements, government entities s hall follow fair and open procurement procedures. According to 
Article 19 of the Act, an entity shall apply open te ndering procedures to all procurement of a value 
reaching the threshold for publication (NT$ 1 million) in  general. According to Article 27 of the Act, 
for open tendering procedures or selective tendering  procedures, an entity shall publish a notice of 
invitation to tender on the Government Procurem ent Gazette, and also make it available on the 
information network. we have developed the “Gover nment Procurement Information System” (GPIS) 
(http://web.pcc.gov.tw) to collect and compile  tendering and award information, and the above-
mentioned GPIS information is free to suppliers. According to Article 61 of the Act, the outcome of an award will be published on the Government Procuremen t Gazette, as well as on the GPIS, and notify 
all tenderers in writing within 30 days after award of contact provided that the procurement is of a 
value reaching the threshold for publication (NT$ 1 million). The enforcement of the Act has created 
a transparent and fair government procurement market and ensured suppliers’ opportunities of 
participating in tendering equally. In addition, we have established the Complaint Review Board for 
Government Procurement (CRBGP), an impartial and independent mechanism for suppliers to seek 
resolution of their complaints, with a view to pr oviding a non-discriminatory, timely, transparent, and 
effective bid challenge system. In the event that procuring entities are in breach of the Government 
Procurement Act, suppliers may use the bid challenge procedures to protect their interests. We hereby 
emphasizes that CRBGP is an impartial and i ndependent review body. All domestic or foreign 
suppliers who seek resolution of their complain ts through CRBGP will be treated equally. 
 
13. ¿Cuáles son los plazos máximos para la presen tación de ofertas en las distintas modalidades 
de contratación? 
 
ANSWER:
 
 
According to Article 28 of the Government Procur ement Act, an entity shall prescribe a reasonable 
time-limit for tendering from the date of publishing a notice of invitation to tender or the date of 
inviting suppliers to tender until the deadline for s ubmission of tender or the deadline for receipt of 
documents. According to “Standards for Time-limits for Tendering”(refer to 
www.pcc.gov.tw/eng/indexE.htm/ Goverment Procurem ent Related Regulations), there are different 
time-limits for tendering in tendering procedures. Fo r procurements to be covered by GPA, the time-
limits will follow the requirements of GPA. 
 
[KOREA] 
 
I. Trade Policies and Practices by Measure 
Government Procurement 
(WT/TPR/S/165, p.43, para.59, p.45, para.62, WT/TPR/G/165, p.14, para.65)   
1. The Secretariat Report stat es that "According to the authorities, both domestic and non-
Chinese Taipei suppliers face the same requirement in tendering (page 43)", and notes that "By law 
government procurement must be conducted on a non-discriminatory basis, unless there is 'due proper cause'(page 45). 
 
- Serious concerns have been raised regarding lack of transparency and arbitrary use of 
the 'due proper cause', resulting in discrim ination against certain WTO members.  
Please provide detailed explanation on th e 'due proper cause' and the criteria for 
determining the 'due proper cause' .  WT/TPR/M/165/Add.1 
 Page 87 
 
 
ANSWER:   
 According to Article 6 of the Government Procurem ent Act, an entity shall observe the principle of 
protecting public interests, fairness and reasonableness,  and shall not accord differential treatment to 
suppliers without due cause. For example, accord ing to Articles 43 and 44 of the Government 
Procurement Act, local/foreign suppliers or loca l/foreign products may be accorded differential 
treatments except otherwise prohibited by the trea ties or agreements to which we are a party. Such 
treatments may include domestic content, technology  transfer, investment, export facilitation or price 
preference by 3% maximum. In addition, we ha ve established the Complaint Review Board for 
Government Procurement (CRBGP), an impartial and independent mechanism for suppliers to seek 
resolution of their complaints, with a view to pr oviding a non-discriminatory, timely, transparent, and 
effective bid challenge system. In the event that procuring entities are in breach of the Government 
Procurement Act, suppliers may use the bid challe nge procedures to protect their interests. All 
domestic or foreign suppliers who seek resolution of their complaints through CRBGP will be treated 
equally.  
2. Currently, all Korean companies are prohibite d from participating in the TRA's procurement 
procedures. Korea believes that this measure is in violation of MFN(Most Favored Nations) principle, 
and is against the spirit of the GPA(Government Pr ocurement Agreement), which Chinese Taipei is in 
the process of accession.    Korea also believes th at Chinese Taipei's conduct of excluding all the 
Korean companies from TRA's procurement procedur es because of the previous contract dispute 
incident with one of the Korean companies is against the WTO's Understanding on Rules and 
Procedures Governing the Settlement of Disputes (D SU), which prohibits th e unilateral retaliation 
against another WTO member. 
 
Please provide the explanation on the case of Chinese Taipei's conduct of excluding all Korean 
companies from TRA's procurement procedures. Al so please provide any future plans that the 
Chinese Taipei government has to rectify this situation.   
ANSWER:
  
 
Due to that Hyundai Precision & Ind. Co. Ltd (the predecessor of Hyundai Mobis) failed to fulfill the contractual responsibility for a previous contract, TS B-9332-190(3) /Push-Pull trains procurement, 
with Taiwan Railway Administration (TRA), severe faults  of the push-pull trains have occurred which 
have resulted in trains being delayed in revenue se rvices, or withdrawn from services. Passengers are 
seriously influenced during their course of jour ney, and TRA has suffered a great pressure and blame 
from the public and local press for improvement. In  order to force the contractor to assume the 
contractual responsibility to resolve the outstanding problems, TRA has imposed a restriction on 
Korean companies to participate in TRA’s tenders, as instructed by Ministry of Transportation and 
Communication. Hyundai Mobis has thus authorized Rotem company to  deal with all outstanding issues arising from 
the above-said contract. 
The negotiation regarding the outstanding issues of push-pull trains between Rotem and TRA is still 
ongoing. Currently, Rotem is in the process of conduc ting a detailed analysis of the train faults in 
order to propose a concrete modification plan for TRA’s assessment. The restriction will be removed 
soon after Rotem’s solution proposal is accepted. 
 WT/TPR/M/165/Add.1 
Page 88  
 
11. STATE TRADING
 
 
[TURKEY] 
 
III. Trade Policies and Practices by Measure 
(2) Measures Directly Affecting Imports 
(viii) State trading activities, paragraphs 66, 67  
Secretariat Report mentions that state-trading involves only rice and banknote paper.  
 
- Are there any other areas state-trading is being made?  
 ANSWER:
 
 No, only for rice and banknote paper. 
 
- On the basis of the footnote 54 on page 46 of the Secretariat Report, we would like to 
learn the current situation of exclusive rights previously granted to relevant 
government agencies as so notified under G/STR/N/10/TPKM for importing salt, 
tobacco and alcohol products. 
 ANSWER:
 
 1. Salt: The Statute for Salt Administration was abolished on 20 January 2004. The privatization 
of Taiyen Biotech Co., Ltd. now enjo ys no exclusive rights or privileges. 
2. Tobacco and alcoholic products: Taiwan Tobacco and Liquor Corporation enjoys no 
exclusive rights or privileges. 
 
12. EXPORT PROHIBITIONS, RESTRICTIONS AND LICENSING
 
 [CHINA] 
 
III. Trade Policies and Practices by Measure  
(3) Measures Directly Affecting Exports 
 Question 13: (Secretariat Report p. 48 para. 76):  
The Secretariat Report states: “A special taskforce is established to investig ate suspected trade in 
strategic high-tech goods and to determine thei r destination and purpose. Destination-specific 
restrictions apply only to "strategic" high-tech products and products that are regarded by the 
international community to be supporting terrorism.” 
Could Chinese Taipei explain in detail the coverage of ‘strategic’ high-tech products and its negative 
implications on normal trade between Chinese Taipei and other WTO Members?   ANSWER:
 
 The term “Strategic Hi-Tech Co mmodities” covers the following: 
 
I. Commodities on the export control lists as strategic high-tech commodities: 
1. Control List of Wassenaar Arrangement, including List of Dual-use Goods and 
Technologies and Munitions List. 
2. Control List of Nonproliferation, including Control List of Missile Technologies 
Control Regime, Control List of Australia Group, and Control List of Nuclear 
Suppliers Group. 
3. Goods on Sensitive Commodity List destined for North Korea and Iran.  WT/TPR/M/165/Add.1 
 Page 89 
 
 
II. Export commodities which are not on any of th e Control Lists referred  to in the preceding 
items, but for which it is possible that their end- use or the use intended by their end user is for 
producing or developing military weapons such as nuclear, biological or chemical weapons or 
missiles. 
 III. Import commodities for which an Internationa l Import Certificate or a relevant Assurance 
Certificate issued by Chinese Taipei is required purs uant to the regulations of the government of the 
exporting country. 
We built up our strategic high-tech export contro l system in accordance with the control rules and 
policy objectives set forth in the WA, MTCR, AG, NSG and other international export control regimes, aiming at effectively preventing the proliferation of  various weapons and achieving the goals of trade 
security and global economic prosperity. There is no evidence that the adoption of the strategic high-
tech export control system will have any nega tive impact on normal commercial transactions. 
 
[EC] 
 
(3) Measures Directly Affecting Exports 
Export Prohibitions, Restrictions and Licensing 
WTO Secretariat’s Report, page 47, para 74  
- Does Chinese Taipei plan to re-introduce expor t licensing for textiles and clothing to control 
and ensure the origin of the products, following the implementation of the EU – China MoU?  
 ANSWER: 
 
 We do not plan to re-introduce export licensing for textiles and clothing. 
 
13. EXPORT FINANCE, INSURANCE, AND GUARANTEES
 
 
[EC] 
 
Export finance, insurance, and guarantees  
WTO Secretariat’s Report, page 48, para 79 
 
- Could Chinese Taipei give information about th e average prevailing parameters of its export 
credits (currency, repayment term, interest ra te, guarantee and insurance premium rates) for 
different types of countries since 2000?   
 
ANSWER:   
Export Credits: 
1. Currency: USD 、EUR、JPY, etc. 
2. Repayment term: 
 (1) Short-term: the tenor is for up to one year 
 (2) Medium- and long-term: scheduled in appr oximately equal semi-annual installments 
commencing six months after shipment. Grace period may be granted upon 
applicant’s request. 
3. Interest rate: LIBOR or OECD CIRR plus interest margin 4. Insurance premium rates: 
Ranging from 0.33% for a 10-day period to 3. 288% for a 360-day period in short-term export 
insurance. 
 - Could Chinese Taipei provide more inform ation on its relending facility to overseas bank? WT/TPR/M/165/Add.1 
Page 90  
 
ANSWER:
 
  The Re-lending Facility is one of the programmes developed by the Export-Im port Bank to encourage 
foreign businessmen to purchase Ch inese Taipei’s manufactured goods. Basically, the Re-lending 
Facility is a bank-to-bank arr angement between the Export-Import Bank and other banks, therefore 
no need for foreign businessmen wishing to use th e credit to contact the Export-Import Bank direct. 
Under this arrangement, the Export -Import Bank provides funds to other banks for re-lending to their 
clients who wish to purchase domestic manufactured goods. 
 
The basic elements of the Re-lending Facility are as follows: 
(1) Types of Goods to be financed: mach inery or other goods exported from us. 
(2) Currency: in US Dollars 
(3) Percentage of Financing: up to 85% of the gross purchase price of each eligible 
import transaction. The relending bank s hall submit its request for disbursement 
within six months after the date of shipment. 
(4) Amount: for each transaction, the amount of financing can be up to US$2,000,000.00 
(5) Tenor: from 6 months to 5 years 
(6) Interest Rate: floating at six month LIBOR (London Interbank Offered Rate) plus 
margin. 
(7) Repayment: Normally, the principal s hall be repaid in approximately equal semi-
annual installments with the first one be ing repaid on the date falling 12 months after 
the date of the Export-Import Bank disbu rsement. Where the tenor of any eligible 
import transaction is less than one year (i nclusive), the re-lending bank shall repay 
such loan in one lump sum on the maturity date. 
(8) repayment: Prepayment of Export-Import Bank’s loans and interest may be made 
without penalty.   
 
- Could it also indicate the amount of export credits provided in these last years for shipments 
of machinery, equipment and other products?  
 
ANSWER:
  
 
The amount of export credits provided in these last years are as follows: 
 2001 ：US$ 30,945,000 
 2002 ：US$ 43,555,000 
 2003 ：US$ 56,351,000 
 2004 ：US$ 98,358,000 
 2005 ：US$ 106,357,000 
 
- Could Chinese Taipei indicate how far it fo llows the provisions of the Arrangement on 
 Officially Supported Export Credits of the OECD? 
 
ANSWER:   
 
The general terms and conditions of medium- and lo ng-term Export Credits provided by the Export-
Import Bank are referred to the provisions of th e Arrangement on Officially  Supported Export Credits 
of the OECD. 
  WT/TPR/M/165/Add.1 
 Page 91 
 
 
14. TRADE  PROMOTION  AND  ASSISTANCE  
 
[EC] 
 
Export Promotion and Assistance  
WTO Secretariat’s Report, page 48/49, para 80 
 - Could Chinese Taipei clarify the relations between Export-Import Bank and TAITRA? Does 
TAITRA provide support for expor t financing and insurance?  
- What kind of instruments are used?  ANSWER:
  
 TAITRA and Export-Import Bank are separate and independent organizations. TAITRA does not 
provide support for export financing and insurance. 
 
15. TAXATION
 
 
[EC] 
 
WTO Secretariat’s Report,  page 39, para 40, page 51, para 86 and page 74, para 44 
 
The Secretariat’s Report states th at the differential treatment be tween imported and domestic goods, 
in terms of the basis for calculating the commodity  tax, was eliminated in amendments to the 
Commodity Tax Act in October 2001. The Report does not mention, however, that as concerns motor 
vehicles, discrimination between  imported and domestically pr oduced vehicles persists.  
This is because local manufacturers can, under certa in conditions, deduct the wholesaler profit of 
currently 9% (promulgated by the tax authorities currently) from the selling price in calculating the 
taxable value for the commodity tax.  Notably, if  vehicle manufacturers sell vehicles to both the end-
dealer/customers and the wholesaler, and if the direct  sales to the end-dealer/customers exceed 10% of 
its total sales (with respect to the specific type of vehicle), then the manufacturer can claim that there 
is no wholesaler in respect to that specific type vehi cle. (The end-dealer is defined as the dealer that 
sells directly to the end user or individual cust omers.) Imported vehicles are not subject to the same 
rules. 
What are the authorities’ plans to eliminate the di scriminatory elements in the application of the 
commodity tax to imported motor vehicles, which do  not benefit from the same favorable conditions 
as domestically produced vehicles? 
 
ANSWER:  
 
1. The same basis for calculation of the commod ity tax is used for taxable goods, whether they 
are manufactured domestically or imported from o verseas; that is, the selling price not including the 
commodity tax at which the wholesalers obtained the goods, is taken as the taxable basis in 
accordance with the Commodity Tax Act. In addition to selling to wholesalers, domestically produced 
commodities are also sold to reta ilers directly. When a commodity is sold to retailers or consumers 
directly, the price also includes the wholesale profit,  despite there being no wholesaler involved.  In 
order to have the same taxable basis  for every possible mode, it is allowed that the wholesale profit be 
deducted when the commodity is sold to retailers or  consumers directly, e.g. if a vehicle is sold to 
retailers directly, the selling price may include a deduction for wholesale profit of 9%; if the vehicle 
is sold to the wholesaler, there is no deduction fo r wholesale profit included in the selling price. 
2. In addition to vehicles, other taxable goods under the Commodity Tax Act are subject to the 
same rule.  The wholesale profit on rubber tyres,  beverages, flat-glass and electric appliances is 
currently about 8%. WT/TPR/M/165/Add.1 
Page 92  
 
3. The commodity tax is an inland tax. Countries draft their inland tax to include a scale of tax 
revenue and a method of levy in accordance with thei r national conditions and finance. As this matter 
is of interest to the EC, we will also look at similar tax systems of relevant countries for further 
reference.  
[AUSTRALIA] 
 
Australia notes that Chinese Taipei applies an indir ect tax to motor vehicles based on the engine size 
of a vehicle, with a rate of 35% applying to t hose vehicles with an engine capacity above 2,001 cc, 
and 25% for vehicles with an engine capacity below 2,000 cc (WT/TPR/S/165, page 104, 
Table AIII.6).  This discriminates against Australia n-made vehicles which typically have large sized 
engines.  Could Chinese Taipei confirm the scheduled  reduction from 1 January, 2007 of the tax rate 
on sedans above 2,001 cc to 30%?  
 
ANSWER:
 
 
According to the commitment made on our accession to  the WTO, the commodity tax rate applying to 
vehicles with an engine capacity above 2,001 cc w ill be reduced to 30% from 1 January, 2007. 
 
[COLOMBIA] 
Literal iv)  Otras cargas aplicadas a las importaciones. 
 B) Dentro de las cargas aplicadas a las importaciones se hace mención al impuesto sobre las 
transacciones comerciales.   
¿Podría ampliarse la información sobre los elemen tos de ésta obligación tributaria: hecho generador, 
base gravable y tarifa?   ANSWER:
  
 Imports and domestically produced goods and services are levied at th e same rate of sales tax, 
including the Value-Added and Non-Value-Added Busi ness Tax, the Commodity Tax (applied mainly 
to rubber tyres, cement, beverage, flat glass,  oil and gas, certain electric appliances and motor 
vehicles), and the Tobacco and Alcohol Tax. The tax bases, tax rates and other information 
concerning these taxes can be found in the relavent laws, which are posted on the website of the 
Taxation Agency at www.dot.gov.tw
. 
 
16. SUBSIDIES  
 
[SWITZERLAND] 
 
Report by the Secretariat I. Economic Environment 
(3) Structural Policies 
(iv) Industrial olicy 
 Para. 19 suggests that various tax incentives are grante d, in particular to “newly emerging, important 
and strategic” industries. Also tax incentives are gran ted to industries situated in science parks, export 
processing zones, industrial parks, and free-trade zones. Could the authorities of Chinese Taipei 
elaborate on the type of tax incentives which are gr anted and also indicate how such tax incentives are 
made consistent with article 3 of WTO’s Ag reement on Subsidies and Countervailing Measures 
(ASCM) which prohibits subsidies linked to export results?  WT/TPR/M/165/Add.1 
 Page 93 
 
 
ANSWER:  
 1. Tax incentives granted to newly emerg ing, important and strategic industries
: 
The scope of “emerging, important and strategi c industries” includes  the “3Cs” (computer, 
communication and consumer electronics), precisi on electronic devices, precision machinery 
equipment, aerospace, biotechnology and specialty chemicals, green technology, advanced materials, 
nanotechnology, and technical service industries.  The granting of such subsidies is not contingent 
upon export performance and is automatic as long as the application is in compliance with the 
criteria and requirements set out in the Statute for Upgrading Industries (SUI).  Please refer to our 
prior notification document for more details (G/SCM/N/123/TPKM).  
2. Tax incentives granted to in dustries located in science parks, export processing zones, 
industrial parks, and free-trade zones : 
The purpose of these zones was established to facili tate the production of goods, in which exports 
manufactured from imported materials need not pay  the duties and claim refunds afterwards. Because 
the exports from these zones do not receive “undue” amounts of refund or exemption, current practices do not constitute prohibited export subsidies under the ASCM.  
The relevant subsidies carried out by free-trade  zone has not yet been included in our prior 
notification.  We will submit th e notification at a later stage. 
 
[NEW ZEALAND] 
 
12 Subsidies (WT/TPR/S/165 page 53, para 93) 
 We note that Chinese Taipei continues to subsidise commercial aspects of the fisheries industry, such 
as vessel/crew insurance.  What is the rationale for subsidising what are, in effect, standard business 
costs associated with fishing?   ANSWER:
 
 The programme for subsidizing vessel/crew insurance purports to provide insurance assistance to our 
fishermen against marine disasters. Please refer to  our prior notification document for more details 
(G/SCM/N/123/TPKM).   In this regard, we share the opi nion of New Zealand expressed in the Rules negotiations that certain 
social insurance programmes and natural disaster relief should be consid ered as non-prohibited 
fisheries subsidies. 
 
[CHINA] 
 
Question 9: (Secretariat Report p. 25 para. 8 & p.26 para.9)  
 
The Secretariat Report states ：”Chinese Taipei has not notified any export subsidies to the WTO.” 
“Nevertheless, various forms of assistance, including subsidies, are provided for agriculture, fisheries 
and industrial products and activities.” Does Chinese Ta ipei have any specific plan to notify its export 
subsidies to the WTO? 
 
ANSWER:
 
 
We have not adopted and maintained any export s ubsidy programmes.  Consequently, there is no 
necessity for us to notify the WTO of any export subsidies. 
 WT/TPR/M/165/Add.1 
Page 94  
 
Question 14: (Secretariat Report p. 48 para. 80 & p. 53 para. 93 
 
The Secretariat Report states: “The government  provides funding for various import/export 
associations to promote Chinese Taipei’s exports; gr oup visits overseas, participation in trade shows 
and trade conferences, training and publication are funded under the budget.”  “In the industrial sector, the government provides subs idized loans for …, product marketing, and for 
overseas investment and construction projects.”  
“According to the authorities, domestic and non-Ch inese Taipei enterprises are eligible for these 
subsidies on an equal basis.”  
 1. Does Chinese Taipei regard these practic es as providing subsidies, even though 
indirect, to its exports? If not, please explain the rationale.   
 2. Please give a few examples to show th at domestic and non-Chinese Taipei enterprises 
are eligible for these subs idies on an equal basis. 
ANSWER:
 
 
1. Export promotion and assistance :  
The export promotion scheme is funde d by the ‘trade promotion fee’ that is collected on all imports 
and exports at a rate of 0.0415%.  According to our Foreign Trade Act, the trade promotion fee is 
used exclusively for promoting import and export trade .  In addition, the eligibility for the subsidy 
was not restricted to specific industries or enterpri ses.  All industries conducting import or export are 
entitled to apply for the subsidies.  Therefore, th e programme should not be considered as providing 
direct or indirect subsidies to its exports. 
 
2. Medium and long-term loans  for product marketing and loans for overseas investment and 
construction projects : 
The projects are carried out through the Small and Medium-sized Enterprise Development Fund 
(SMEDF), and the rate of interest for each loan is determined according to the financial 
circumstances of the applying SME. The interest mark-up is calculated according to the London 
Interbank Offered Rate (LIBOR) and the OECD’s Co mmercial Interest Reverence Rate (CIRR) for the 
loan item in question. Final rates are negotiated after taking into consideration the applying SME’s overall financial situation. Therefore, the loan’ s interest rate is und er no circumstances more 
favourable than prevailing market rates.  Similar concerns were raised during our accession 
negotiation and full explanations were provided.  Please refer to our latest notification document for 
more details (G/SCM/N/123/TPKM). 
Both domestic and 100% foreign-owned companies, as  long as they meet the qualifications of SME 
standards, are eligible for the loans. 
 
[TURKEY] 
 
III. Trade Policies and Practices by Measure 
(1) Introduction 
 
In the Secretariat Report, under paragraph 9, it is  stated that “Nonetheless, various forms of 
assistance, including subsidies, are provided for agricultural fisheries and industrial products and 
activities”. 
- Could you provide further informati on about the subsidies provided for the 
agricultural, fisheries and industrial products and activities? 
 
ANSWER:
 
 
For further information, please refer to our previous subsidies notification (G/SCM/N/123/TPKM). 
  WT/TPR/M/165/Add.1 
 Page 95 
 
 
[COLOMBIA] 
 
Numeral 4) Industrias Manufactureras 
Literal iii) Medidas de apoyo interno 
 
Párrafo 40. (…)  Además las autoridades propor cionan préstamos subvencio nados para pequeñas y 
medianas empresas cualificadas, comercialización de productos y proyectos de construcción. 
 ¿Cuáles son los criterios para que las pequeñas y medianas empresas puedan acceder a estos 
préstamos subvencionados?  ¿Cuáles son las c ondiciones financieras de tales préstamos?  
 Adicionalmente nos gustaría saber ¿Cuáles han si do los resultados logrados con estos préstamos 
subvencionados? 
 
ANSWER:
 
 
1. All enterprises, meeting the qualifications of Small and Medium- Sized Enterprises (SME) 
standards, are eligible for the loans. 330 ap plications were approved over the past three 
years, amounting to a total of 2.46 billion NT Dollars. 
2. Please refer to the answer to Question 13 raised by China. 
 
Numeral 5) Servicios Literal i)  Características. 
 
A) Párrafo 53. Las autoridades tienen el propósito  de considerar "industrias incipientes" los 
siguientes subsectores de servicios, con arreglo a la de finición de la Ley de Mejora de las Industrias, 
y permitir que las empresas de estos sectores pue dan beneficiarse de los incentivos a la inversión 
previstos en la Ley de Desarrollo de la Peque ña y la Mediana Empresa:  empresas financieras, 
distribución, telecomunicación y medios de comunica ción, atención de la salud, formación, turismo, 
servicios culturales y de creación, diseño, inform ación, I&D, protección ambiental y servicios de 
ingenieros consultores  
Al considerarse esos sectores de servicios como “i ndustrias incipientes” por la legislación de Taipei 
Chino, ¿Se entiende que hay otorgamiento de incen tivos de manera discrimin atoria únicamente para 
empresas o prestadores de servicios nacionales y no a extranjeros? ¿Cuáles son esos incentivos 
discriminatorios y bajo que condiciones se aplican? 
 
ANSWER:
  
 
According to the Statute for Upgrading Industries (S UI), all companies  incorporated in accordance 
with the Company Act may apply for the tax incentiv es (including incentives for “the newly-emerging, 
important and strategic industries”). Both domes tic and foreign companies are eligible for the tax 
incentives on an equal basis. 
 
17.  STANDARDS AND OTHER TECHNICAL REQUIREMENTS 
 
[NEW ZEALAND] 
 
13 Standards (WT/TPR/S/165 page 26, para 10 and page 54, para 98) 
 The Secretariat noted that an estimated 25% of Ch inese Taipei’s trade-related standards were aligned 
to international standards.  What  steps is Chinese Taipei taking to bring its remaining trade-related 
standards in line with international norms? WT/TPR/M/165/Add.1 
Page 96  
 
ANSWER
: 
 The rate provided in the Secretariat Report is ca lculated on the basis which includes cases where 
related international standards do not exist. In footnote 74 on page 54, we provided a rate of 71%, 
which we believe would be a better way of presen ting the harmonization status of our domestic 
standards, as harmonization is only possible when relevant international standards exist.   As indicated in paragraph 97 on page 54, we are not a member of the ISO or IEC, or indeed most 
international standardizing bodies. Nevertheless, we  spare no efforts in observing the obligations 
under the Code of Good Practice of Annex 3 to the TBT Agreement in developing our domestic 
standards. We will continue the harmonization pro cess by placing priority on harmonizing standards 
that are referenced by technical regulations w ith related international standards in our work 
programme, which will be notified to the ISO/IEC In formation Center every six months. At the same 
time, we also hope that there are channels that we could use to express our n eeds in areas for which 
international standards could be developed.  
14 Standards:  Transparency  (WT/TPR/S/165 page 16, para 9 and page 57, para 99) 
 
We note the processes set out in para 99 on page 57 of document WT/TPR/S/165 concerning 
transparency in the development process of new or amended laws and re gulations and would like 
more information on how Chinese Ta ipei ensures that foreign representative offices/trading partners 
are informed of opportunities to be involved in regulatory development processes, in particular 
“consult[ation] with interested parties” prior to th e gazetting of finalised, or near finalised, laws and 
regulations.  What processes does Chinese Taipei have in place to inform trading partners of changes 
in the way laws and regulations ar e implemented (as changes in impl ementation – particularly without 
prior notification - also have the ability to unnecessarily disrupt trade)? 
 
ANSWER
: 
 
The transparency obligations of government bodies in  the development of new or amended laws and 
regulations are stipulated in Article 154 of the Administrative Procedure Act, which requires that a 
public announcement shall be made in a governme nt gazette or newspaper when legal orders or 
administrative rules are under preparation. The Bureau of Standards, Metrology and Inspection 
(BSMI) publishes proposed new or amended regulations at the government gazette 
(http://gazette.nat.gov.tw/egFront/index.jsp ) as well as its web site (www.bsmi.gov.tw ). During the 
process of consultation, the BSMI would also forw ard information to relevant industry associations 
and foreign trade centres, to the best of its k nowledge, to invite their comments. The same 
transparency obligation applies to changes in the implementation of regulations. In addition, the 
BSMI also notifies measures in accordance with Ar ticles 2.9 and 5.6 of the TBT Agreement when the 
measures may have a significant effect  on the trade of other Members. 
 
15 Standards and Conformity Certification (WT/TPR/S/165 page 56, para 102) 
 What steps is Chinese Taipei taking to make conf ormity certification less of a barrier for foreign 
suppliers of those manufactured goods requiring cer tification?  Has Chinese Taipei considered 
identifying a “single desk” within each of the relevant  certifying agencies - in particular the Bureau of 
Standards, Metrology and Inspection - which can  be approached on certification issues?  
 
ANSWER
: 
 
Most of the difficulties in making conformity cer tification by foreign suppliers are basically due to 
language barriers and the availability of testing facilities. In addition to making available English 
translations of important regulatory information,  the BSMI also provides services to both domestic 
and foreign suppliers by answering questions concer ning the certification processes.  The BSMI and  WT/TPR/M/165/Add.1 
 Page 97 
 
 
its branches respectively already each have a singl e desk to process conformity certification cases. 
Contact information for these single desks is available at the following BSMI web site: 
(http://www.bsmi.gov.tw/page/pagetype10_s ub.jsp?no=20&groupid= 5&pageno=880&type_no=4 ).  
 
Regarding the availability of testing facilities, the BSMI accepts EMC reports from a number of 
foreign testing laboratories for electrical and elect ronic products. For suppliers in New Zealand, the 
MRA signed with us in July 2006  the mutual reco gnition of conformity assessment results, including 
testing reports and certification, which would facilita te the export of electrical and electronic products 
from New Zealand to our market.  Interested Memb ers would also be welcome to negotiate similar 
agreements/arrangements with us in orde r to produce the same trade benefits. 
 
What reasons does Chinese Taipei identify for th e absence of foreign products from the list of 
certified nutraceutical health foods? 
ANSWER:  
 By May of 2006, 80 items health foods have been ce rtified by the Department of  Health, 23 items of 
which are imported products.  It is allowed for the origin of product to be shown on the labelling of 
such imported health foods. 
 
[JAPAN] 
 
Report by the Separate Customs Territory  of Taiwan, Penghu, Kinmen and Matsu 
(WT/TPR/G/165) 
III. Economic and Trade Policy Regime (2) Implementation of Accession Commitments  
(ii) Non-Tariff Measures (Page 6, paragraph 26)  
(Ref. page 56, paragraph 104 of the Report by the Secretariat (WT/TPR/S/165))  
Japan recognizes that a new standa rd for the inspection of imported alcoholic drinks on securing 
sanitary safety will heavily affect the import of Japan ese alcoholic drinks. Therefore, Japan hopes that 
the new standard will be reviewed and relaxed as well as operated without interrupting market access  
2. In this regard, please indicate specific views.  
 
ANSWER:
 
 
1. Pursuant to the Paragraph 2, Article 4 of the Regulati ons Governing the Inspection of 
Imported Alcohol, the inspection is  conducted by “lot-to-lot inspection”, “lot-sampling inspection”, 
and “release after documentary examination”.  
2. According to Paragraph 1 of Article 6 of the Regulati ons Governing the Inspection of 
Imported Alcohol, “release after documentary exami nation” will apply to the following instances: 
 (1) Alcohol products that have been previously inspected and found to be in conformity 
with the standard hygiene requirements. 
 (2) Alcohol products other than those sampled for inspection. 
 (3) Alcohol products accompanied by t est reports, inspection certificates or relevant 
examination and verification certificates issued within two years for that particular 
lot of alcohol products by the authority (institution) of nations having reciprocal 
recognition relation with us. 
3. Regarding the Subparagraph 3, Paragraph 1, Article 6 of the Regulations Governing the 
Inspection of Imported Alcohol, al cohol products accompanied by t est reports, inspection certificates 
or relevant examination and verification certificates issu ed for that particular lot of alcohol products 
by the authority (institution) of na tions having reciprocal recognition relation with us referred to in 
Paragraph 1, Subparagraph 3, shall mean the following: WT/TPR/M/165/Add.1 
Page 98  
 
 (1) It belongs to the inspection report pr ovided by the recognized laboratory among the 
International Laboratory Accreditation Cooperation. 
 (2) It belongs to the test reports or gu aranties issued by the competent governmental 
authorities or alcoholic professional associati ons of the original/exporting countries 
of those alcoholic products categories announced by central competent authority 
verifies that the alcohol indeed belongs to  the announced product category, and it 
also conforms to our standard hygiene requirements. 
4. Japan has been accepted as one of the c ountries where alcoholic professional associations 
can issue the test reports or guaranties to verify t hat the alcoholic products conform to our hygiene 
standards.  
5. As most of the imported alcohol products  qualify for application of the release-after-
documentary examination measure, implementation of the inspection system has no interrupting effect 
on market access, and it also conforms to the SPS Agreement. 
 
[CHINA] 
 
Question 15: (Secretariat Report p. 54 para. 98): 
 
The Secretariat Report states: “Data provided by the authorities indicate that about 25% of domestic 
standards were harmonized with  international ones in 2004.” 
Could Chinese Taipei explain the reason for such a low rate of alignment of its domestic standards 
with the international ones? Does Chin ese Taipei have any plan to increase such a rate substantially so 
that most of its domestic standards that are non- aligned with international ones will be harmonized 
with the international ones? 
 
ANSWER
: 
 
Please refer to the answer to Ques tion 13 raised by New Zealand. 
 
[AUSTRALIA] 
 
(iv) Standards and other technical requirements 
(a) Standards, technical req uirements, and inspection  
 Imported cars must go through a round of testing and cer tification before they can  be sold in Chinese 
Taipei.  This not only adds appreciably to the cost  to the Chinese Taipei car buyer but also delays, 
often by months, the availability of new models on the market.  While safety standards are based on 
European regulations, the variations based on ‘lo cal conditions’ result in a unique set of Chinese 
Taipei standards.  Is Chinese Taipei considering re ducing the complexity of the testing, certification 
and safety standards that currently apply to imported cars? 
 
ANSWER
: 
 
1. Currently mutual recognition of the approval of  certificates is carried out under the UN/ECE 
1958 Agreement. Since we are not a contracting pa rty to this Agreement, it’s difficult for us to 
recognize the ECE certificates under this condition. Besides, recognition of approval certificates 
should be based on mutual principles, and it would not be appropriate for us to accept any country’s 
certificate unilaterally. 2. According to current Ministry of Transpor tation and Communications (MOTC) regulations, 
test reports from MOTC accredited foreign (third  party) technical services are accepted for type 
approval. So far, French UTAC, German TÜV F ahrzeug-Lichttechnik GmbH, TÜV Kraftfahrt GmbH 
have been accredited by MOTC. MOTC encour ages interested technical services to apply for 
acceditation.  WT/TPR/M/165/Add.1 
 Page 99 
 
 
3. In order to provide more ways for testi ng and to reduce repeated testing, MOTC has 
approved mechanisms such as manufacturers’ labs ’ witnessed testing through MOTC approved 
technical services. Therefore, manufacturers’ labs c an carry out testing under the witness of approved 
technical services, and repeated tests can thus be avoided. 
4. If any country finds it necessary to discuss the mutual recognition of approval certificates, 
MOTC would welcome this. MOTC also we lcomes foreign technical services applying for 
accreditation.  There appears to be a lack of coordination among government agencies involved in the process of 
importation in the automotive sector.  The Automotive Research and Testing Centre (which carries out policy set by the Ministry of Communications and Transportation) is responsible for testing 
complete vehicles, including their components.  The Bureau of Standards, Metrology, and Inspection 
under the Ministry of Economic Affairs also requir es testing of certain specified parts, including 
wheels and safety belts.  The two ministries call for diff erent test procedures, so that the same part has 
to be tested twice.  Is Chinese Taipei considering eliminating the different prescribed test procedures, 
so that the same part does not have to be tested twice?  ANSWER
: 
 The BSMI did require the inspection of certain moto r vehicle components in support of the policy of 
the MOTC. For vehicles seeking type approval from the MOTC, test reports issued by the BSMI on 
these vehicle components are recognized by the MOTC . As a result, motor vehicle components subject 
to the BSMI inspection do not have to be tested twice. 
 
[US] 
 
Measures Affecting Production and Trade – St andards and Other Technical Requirements – 
Standards, Technical Requirements, and Inspection 
 6. In paragraph 99 on page 55, the Secretaria t Report described the process for developing 
standards.  
A) Please describe how international standard s are incorporated into this process.  
B) Please also advise when in this process draft standards are notified to the WTO. 
 ANSWER
: 
 Article 8 of the Standards Act states that the standards authority may adopt related international 
standards that already exist when the scope, grade, condition and level of application are appropriate 
to domestic circumstances. Where international standards are adopted, the stages of drafting and 
soliciting comments in the standards development pro cedure may be omitted. International standards 
are being considered at different stages of standards  development and details could be found in our 
regulations governing the establishment of those standards (electronic version is available at 
http://www.bsmi.gov.tw/english/law/Regulations _Governing_the_Establishm ent_of_National_Standa
rds.doc ) .  
 The BSMI notified its acceptance of the Code of G ood Practice to the ISO/IEC Information Center on 
30 July 2002 (G/TBT/CS/N/146) and under the ob ligation of Paragraph J the BSMI has been 
notifying the existence of work programmes to the ISO/IEC Information Center every six months since 
2002. The latest notification was made on 17 Fe bruary 2006. Details of the work programmes are 
also available at the BSMI web site (http: //www.bsmi.gov.tw/english/standardization_notify.htm
). For 
each set of draft standards, a period of 60 da ys is given to soliciting comments from interested 
parties. WT/TPR/M/165/Add.1 
Page 100  
 
7. Paragraph 101 on page 55 of the Secretariat Report stated that “[I]nspection is carried out by 
the BSMI with regard to domestically produced agricultural, industrial, and mining commodities, 
imported products and those destined  for exportation.”  However, it a ppears that while all categories 
of imported products are subject to inspec tion, only certain domestic products are. 
 Please identify which domestic products do not face  inspection requirements and explain why like 
imported products face inspection. 
 
ANSWER
: 
 
The BSMI requires the same inspection requirements from domestic products as  well as for imported 
products. We would be in a better position to prov ide further clarification if specific cases could be 
identified. 
8. On page 56 of the Secretariat Report, paragr aph 102 advised that “[M]anufacturers may apply 
for conformity certification by the standards authority in regard to relevant dom estic standards.  Those 
that meet the certification requirements are permitte d to use the Chinese Taipei certification mark.” 
 
Please advise whether foreign testing labs can qualify to test for conformity to Chinese Taipei 
standards and issue the Chinese Taipei certification mark.  ANSWER
: 
 Paragraph 102 basically described the voluntary CNS Mark Certification System implemented by the 
BSMI. Products are allowed to use the CNS Mark wh en the quality management system of the factory 
is certified against ISO 9001 by certification bodies recognized by the BSMI and the product meets 
relevant CNS standards after inspection or testi ng. There are currently 11 quality management system 
certification bodies recognized by the BSMI. A list of these recognized bodies can be found at the BSMI web site. Testing or inspection of the product is now performed by the BSMI. 
 
[COLOMBIA] 
Preguntas adicionales de Colombia en relación con el  Examen de Política Comercial de Taipei Chino: 
 
Preguntas sobre reglamentos técnicos 
 1. En el numeral 99 de la parte III se menci ona que desde 2002 el Taipei Chino ha presentado 
notificaciones  de conformidad con los artículos  2 y 5 del Acuerdo OTC. ¿Qué solución ha 
considerado el gobierno sobre los reglamentos técnicos anteriores al año 2002?  ANSWER
: 
 Technical regulations and conformity assessment procedures adopted before 2002 were published on 
the website of the “Laws and Regulations Dat abase” hosted by the Ministry of Justice, 
http://law.moj.gov.tw
). In addition, relevant regulations and conformity assessment procedures 
adopted before 2002 were required to comply with transparency requirements, which included review 
of the appropriateness of relevant international  standards, consultation with interested parties 
(related industry associations, foreign trade offices,  etc.) at the proposal stage, and publication of 
final draft at government gazettes.   
2. Según el numeral 101 las autoridades opinan que el Taipei Chino aplica los mismos procedimientos de inspección a los productos domésticos y a las importaciones. ¿Estos procedimientos se ejecutan con rapidez para lo s productos importados y en un orden no menos 
favorable que el dispuesto para las mercancías nacionales?   WT/TPR/M/165/Add.1 
 Page 101 
 
 
ANSWER : 
 Yes, the conformity assessment procedures are app lied to imported products in  the same expeditious 
way as those applied to domestic products. In additi on to the provision of alternative conformity 
assessment procedures, from which manufacturers ma y choose to demonstrate compliance of their 
products with our requirements, the use of electr onic tools also helps to expedite the customs 
clearance process. 
 
[KOREA] 
 
Standards and other technical requirements (WT/TPR/S/165, p.55, para.100 ～101) 
 
 6. What kind of ICT(Information & Comm unication Technology) products are subject to 
the current Declaration of Conformity scheme in Chinese Taipei? Also, pl ease provide any 
future plans for increasing the product coverage.  
 
ANSWER
:  
 
There are 30 electronic products subject to the D eclaration of Conformity (DoC) scheme. The 
experience of implementing DoC for electronic products was described in detail in our submissions to 
the TBT Committees (G/TBT/W/195 and G/TBT/W/195/Ad d.1). As the success of DoC relies on an 
effective market surveillance, awareness of the responsibilities to  be met by manufacturers and the 
support of legal framework, the extension of DoC coverage will be reviewed against the development 
of these factors.  
7. Supplier's Declaration of Conformity (SDoC)  procedures are categorized into 4 different 
types according to the Guidelines of ITA Committee (G /IT/25). Which type is the current Declaration 
of Conformity scheme?   ANSWER
:  
 The Declaration of Conformity scheme implemented could be classified as ty pe 2 according to the 
Guidelines of ITA Committee (G/IT/25).  
8. Please provide the method of obtaining more de tailed information on the current Declaration 
of Conformity scheme.  
 
ANSWER
:  
 
Detailed information on the requirements and implem entation of the Declaration of Conformity 
scheme is available at BSMI’s web site (http://www.bsmi.gov.tw/page/  
pagetype8.jsp?groupid=5&page=189 ). Inquiries may also be sent to the BSMI directly by e-mail or 
fax. 
 
18. SPS  
 
[AUSTRALIA] 
 
(b) Sanitary and phytosa nitary arrangements 
 Australia  notes the WTO Secretariat advice that the Bureau of Animal and Plant Health  Inspection 
and Quarantine (BAPHIQ) is responsible for es tablishing and executing SPS -related policies, laws, 
and  regulations (WT/ TRP/S/165, page 56, para  104.).  Australia observes that BAPHIQ has WT/TPR/M/165/Add.1 
Page 102  
 
proposed a number of amendments to SPS-related policies, laws a nd regulations during the review 
period.  Australia would welcome advice from Chine se Taipei on any further reforms proposed in this 
area, including whether reforms to date are part  of a wider program of policy development.  
 
ANSWER:
  
 
Our policy on SPS measures is to harmonize the measures with the SPS Agreement and international 
standards, guidelines and recommendations as set by the OIE, IPPC, and Codex, taking into 
consideration the domestic and international pest and  disease status. Since our accession to the WTO 
from 1 January 2002, all of our revised relevant laws and regulations have been amended in 
accordance with science-based risk assessments and the pest and disease status.  BAPHIQ will 
continue to revise and develop the relevant SPS measures to protect the health and lives of animals, plants and humans, and the safety of agri cultural production whenever necessary.   
 
[US] 
 
Measures Affecting Production and Trade – St andards and Other Technical Requirements – 
Sanitary and Phytosanitary Arrangements 
 
9. In Paragraph 104 on page 56, the Secret ariat Report advised that Chinese Taipei’s Plant 
Protection and Quarantine Act  is the main law governing SPS-related trade measures.  Chinese Taipei 
has made several announcements regarding the intention to revise or amend this Act. 
 What is the status of proposed changes to the Plant Protection and Quarantine Act? 
 ANSWER:
  
 The draft amendment to the Plant Protection and Quarantine Act is currently under discussion by the 
BAPHIQ.   
[CANADA] 
 
Part III. Trade Policies and Practices by Measu re, (4), Measures Affecting Production and 
Trade, (iv) Standards and other technical requirements, (b) Sanitary and phtytosanitary 
arrangements, pages 56 – 57, paragraphs 104 – 108: 
 
At the May 2005 OIE (World Organization for An imal Health) session, the OIE established a new 
science-based recommendation that "deboned skeletal muscle meat from cattle 30 months of age or 
less" should be eligible for trade from all countries regardless of their BSE status.   
 5. Why has Chinese Taipei not recognized this OIE standard and continues to ban Canadian 
boneless beef products from cattle under thirty m onths of age? (paragraphs 104 and 106)  
 
ANSWER:
 
 
Since we are free from BSE, HPAI, rinderpest, contagious bovine pleuropneumonia, African swine 
fever and rabies, many efforts have been devoted to  maintaining the diseases free status in order to 
protect animal and human health. In accordance with the OIE Code and the concept of risk 
assessment and the appropriate level of protecti on addressed in the SPS Agreement, we have adopted 
measures to ensure the safe trade of beef from BSE infected countries. Th e safety assessment and 
technical evaluations undertaken by the panel of experts are based on scientific evidence in 
conformity with international standards, guidelines and recommendations. In ad dition, as per Article 
6 of the SPS Agreement, it is the responsibility of the exporting country to provide the importing 
country with relevant technical information to prove its consistency. Because of the re-occurrence of  WT/TPR/M/165/Add.1 
 Page 103 
 
 
BSE in early 2006 in Canada, which aroused great concern among the general public, it is important 
that Canada provides detailed information relatin g to these cases for us to be able to undertake 
appropriate review and evaluation. 
 Although Chinese Taipei is not a member of the In ternational Plant Protection Organization (IPPC), 
they are members of the WTO and subject to the obligations contained in the SPS agreement, including those relating to IPPC standards. 
6. Can Chinese Taipei explain its position on  equivalency between the economic region's 
phytosanitary measures and Internationa l Standards adopted by the IPPC?   
 ANSWER:
  
 Although we are not a contracting party to the IPPC, being a WTO Member, our phytosanitary measures are in compliance with the principles of  the SPS Agreement and the International Standards 
for the Phytosanitary Measures (ISPM) developed by the IPPC. For example, all the import 
quarantine requirements are in accordance with science-based risk assessments and management, 
and have adopted the relevant ISPMs. 
 7. Can Chinese Taipei clarify its position w ith respect to International Standard for 
Phytosanitary Measures (ISPM) No. 08: Determina tion of pest free status and respecting the 
Principles of Plant Quarantine and International Trad e?  Section 3.1.2 of this standard prescribes that 
"if there are no records of the presen ce of the pest in the general surveillance data of an area, it may be 
reasonable to conclude that a pest is or has alwa ys been absent." Does Chines e Taipei consider this 
standard as equivalent to their domestic phytosanitary  measures and would they apply?  If not, what is 
the reason for not adhering to the noted standard?  
 
ANSWER:
  
 
We follow the principle of ISPM No. 8. However, as per Article 6 of the SPS Agreement, it is the 
responsibility of the exporting country to provide us with relevant technical information to meet the 
requirements set out in “Procedures for the Recognition of Pest Free Area to Identify the Pest Status 
of an Area”. If a trading par tner claims that there is no general surveillance data regarding the 
presence of the pest in the area , we will review the documents of the surveillance data and other 
relevant technical information provided by  the trading partner for making decision.  
 
Report by the Separate Customs Territory  of Taiwan, Penghu, Kinmen and Matsu 
(WT/TPR/G/165)  
Part III. Economic and Trade Policy Regime, (2 ) Implementation of Accession Commitments, 
(ii) Non-Tariff Measures, page 6, paragraph 26: 
 
Chinese Taipei notes in its Report that its SPS m easures "are in complian ce with the relevant 
international standards, recomme ndations and guidelines developed by  ... the World Organization for 
Animal Health (OIE) ... based on scientific principles and risk assessment."  
 
27. Chinese Taipei continues to ban all Canadian  beef products, including protein-free tallow for 
animal feed, all of which may be safely traded under OIE Guidelines.  Could Chinese Taipei please 
clarify the statement in its report in light of this ban?  
 
ANSWER:  
 
For importing animal fat, oil used for feed (includi ng tallow) from a BSE infected country, the risk 
assessment is currently undertaken by BAPHIQ. The evaluation ref ers to the OIE Terrestrial Animal 
Health Code and relevant international practices. WT/TPR/M/165/Add.1 
Page 104  
 
28. Chinese Taipei maintains that it must complete a detailed risk assessment of Canadian beef before it will make a decision on permitting imports  of any Canadian beef products. Under what 
conditions does Chinese Taipei insist on undert aking detailed product risk assessments even 
when OIE or other international guidelines clearly indicate that trade in a product is safe?  
 
ANSWER:
 
The Department of Health (DOH) adopts the same ap proach to an application for beef import from a 
BSE infected area irrespective of the applicant c ountry, in order to protect domestic consumers. The 
risk assessment on beef for human consumption is in line with the OIE Code, SPS Agreement and 
international practices without any discrimination or trade restriction.  
 29. Normally, how long does Chinese Taipei require  to complete an SPS-related product risk 
assessment, and what are the steps following completi on of the risk assessment in order to implement 
any required changes to Chin ese Taipei's SPS requirements?  
 
ANSWER:
 
 There is no fixed time frame to complete a risk a ssessment. However, due to the limited workforce and 
other administrative resources, th e following factors may facilitate  the risk assessment process: 
(1) the exporting country provides sufficient scien tific evidences, including pest list, surveillance 
information, mitigation measures, etc.; (2) the sa me or similar product has been previously assessed; 
(3) if more than one product is requested to be im ported, the priority is  being proposed by the 
exporting country; (4) relevant international standards exist; or (5) the product is being suspended temporarily. A formal reply will be given once the eval uation is completed. For any change or draft of 
the SPS-related requirements, we will notify th e WTO Secretariat and allow sufficient comment 
period in accordance with the G/SPS/7/Rev.2. Comments from Members and stakeholders will be 
taken into consideration while finalizing the SPS regulations. All regulations will be published in 
governmental Gazettes before implementation. 
 30. Do the SPS-related risk assessments that Chinese Taipei undertakes normally apply to a 
specific type of product, without regard to an y specific customs territory or place of origin?  
 ANSWER:
 
 In general, we conduct risk assessments w ith regard to the product and its origin. 
 
31. Under what conditions does Chinese Taipei requi re that an SPS-related country-specific risk 
assessment be undertaken, the results of which w ould not necessarily extend to similar products 
originating in other Member territories?   ANSWER:
  
 Generally, we will undertake risk assessment for ne w products requested to be imported. In some 
cases, we will also actively initiate risk assessment  for currently-imported pr oducts, which may pose 
risks as indicated by scientific evidence. As stated  above, existing risk assessment results of a specific 
product may be used as reference fo r expediting the risk assessment pr ocess of a similar product from 
another origin. However, as regulatory, surveillance,  control and management systems, as well as the 
pest or disease status, may vary among countries, the results of an existin g risk assessment of a 
similar product may not be applicable to that of other trading members. 
  WT/TPR/M/165/Add.1 
 Page 105 
 
 
[COLOMBIA] 
 
SOLICITUD RECONOCIMIENTO PARA EXPO RTAR CARNE Y PRODUCTOS CARNICOS A 
TAIPEI CHINO  
La Dirección de Relaciones Comerciales ha venido  haciendo seguimiento a la labor del ICA en el 
proceso de solicitud de la CERTIFICACION de las áreas libres de aftosa por parte del Bureau of Animal Plant Inspection and Quarantine, Committee of Agriculture (COA) de Taipei Chino.   
En diciembre de 2005, el ICA recibió por parte de la autoridad del Taipei Chino un nuevo formulario 
para ser diligenciado solicitando información adicional,  con el fin de actualizar los datos enviados 
anteriormente.  El ICA ya acopió la información y está en el proceso de traducción al inglés, tanto de 
la información del formulario como de sus ane xos, para enviarla a las autoridades sanitarias de 
Taiwán.  
ANSWER:
 
 
APPROVAL PROCEDURES FOR BEEF IMPORTED FROM COLOMBIA 
Recognition of Diseases Free Status: 
Step 1:  As Colombia has not yet been rec ognized as a country free from foot and mouth 
disease (FMD), rinderpest, bovine contagious pleuropneumonia and African swine fever, a formal application in accordance with the “Procedure for the Recognition of Disease-Free 
Status of a Foreign Country” is required. Relevant documents s hould be submitted to 
BAPHIQ, Council of Agriculture (COA), for review and evaluation. 
 
Certification for Equivalence Proc ess regarding Meat Sanitation: 
Step 2: If approval is granted by the COA to recognize Colombia as a country free from the 
diseases mentioned above, Colombia may then commence its application for the approval of 
inspection processes of beef production. It is requested that a response to the questionnaire 
“Information on Meat Inspection Issue in Countries Intending to Export Meat And Meat Products Derived From Cloven Hoofed Livesto ck” be completed, and the relevant documents 
be provided. Step 3: After completion of a document review, the on-site inspection process will be 
followed. The cost of the inspection shall be borne by the applicant. 
 
Approval: 
Step 4: If approval is granted, beef and beef products from Colombia that comply with our quarantine requirements will be allowed to be imported. 
 
With regard to the market access of beef importatio n, please refer to the following procedures: 
 
1. Formal application for the recognition of  diseases free status, certification for 
equivalence process on meat sanitation and im plementation of on-site inspection are 
required by BAPHIQ in a sequential manner. 
2. After receiving approval from BAPHIQ , the Bureau of Food Safety, DOH, will 
conduct risk assessment on the safety of beef consumption.  
 3. An equivalency assessment will be co nducted by a joint committee consisting of 
experts from BAPHIQ, DOH, and academics, after completion of the above 
procedures. 
 WT/TPR/M/165/Add.1 
Page 106  
 
19. INTELLECTUAL PROPERTY RIGHTS (IPRs)
 
 
[SWITZERLAND] 
 
Report by Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
III. Economic and Trade Policy Regime 
(2) Implementation of Accession Commitments 
(iv) Intellectual Property Rights 
 Para. 32.  The report by the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu – 
which contains the policy statement submitted by Ch inese Taipei – mentions on page 8, paragraph 32 
that in response to the emergence of certain ne w IPR infringement issues, an Action Plan 2006-2008 
was launched on 1 January 2006 to sustain and develop the work already carried out under the 
previous Plan. Please indicate the focus of this lat est Action Plan and describe in detail the concrete 
measures that are/will be taken under it. 
 
ANSWER:
 
 
In response to the new forms of in fringement, the IPR Action Plan 2006-2008 is in place with heavy 
emphasis on Internet infringement, campus piracy,  and enhancing law enforcement officials’ capacity 
and capability to implement IPR protection meas ures. Major goals of the latest plan are to: 
 
1. Establish comprehensive IPR legisla tion and policies to fulfill international 
responsibilities and improve legislation quality; 
2. Fortify IPR-specific police force and fac ilities, and enhance the professional skills of 
enforcement officials to better implement IPR protection; 
3. Enhance border controls and reduce trade  in counterfeit and pirated products; 
4. Provide professional training for ju dges and prosecutors, establish reasonable 
sentencing standards, and streamline I PR litigation proceedings to ensure 
appropriate penalties for illegal activities; 
5. Promote the use of licensed software and other copyrighted materials; establish and 
provide guidance for a uniform IPR licensing mechanism; 
6. Strengthen educational promotion programmes to establish a proper IPR concept in 
the minds of the general public; 
7. Strengthen international  exchange and cooperation to enhance understanding of IPR 
protection worldwide; 
8. Reward innovation and invention, assi st businesses to commercialize their patents, 
and improve the global competitiveness of domestic enterprises. 
 
[NEW ZEALAND] 
 
16 Intellectual property   (WT/TPR/S/165  pages  57-62) 
The Secretariat notes that Chinese Taipei has, since accession, adopted a number of laws and 
regulations to ensure the protection of intellectua l property rights.  What measures is Chinese Taipei 
taking to ensure that “effective actions cons tituting a deterrent” are in place, as mandated under 
Article 41(1) of TRIPS, in particular with regard  to the enforcement of IPR laws and regulations, 
including sentencing provisions.   
 
ANSWER:  
 
Our IPR enforcement procedures a re in compliance with Article 41 of the TRIPS Agreement: 
  WT/TPR/M/165/Add.1 
 Page 107 
 
 
1. The Copyright Act, the Trademark Act, and the Patent Act enable right holders to 
request the court to remove the infringement  of their rights. Where there is likelihood 
of infringement, a request may be made to prevent such infringement.  Besides, the 
right holders can demand damage compen sation from the infringers.   
2. The Copyright Act and the Trademark Act pr ovide criminal penalties of up to 3 years 
imprisonment and a concurrent fine. 
3. The Copyright Act and the Trademark Act enable right holders, who have valid 
grounds for suspecting that the importati on of counterfeit trademark or pirated 
copyright goods may take place, to lodge an application for the suspension by the 
customs authorities of the release in to free circulation of such goods. 
 
[JAPAN] 
 
Report by the Separate Customs Territory  of Taiwan, Penghu, Kinmen and Matsu 
(WT/TPR/G/165) 
III. Economic and Trade Policy Regime  (2) Implementation of Accession Commitments 
(iv) Intellectual Property Rights  
(Page 7, paragraph 30) 
 
Concerning the improvement of the protection of intellectual property rights, Japan had requested that 
the system of external examiners be abolished in or der to enhance the quality of the examination.  We 
recognize that the abolition of external examiners is agreed upon. 
 
3. In this regard, please provide further inform ation, including a specific plan for the gradual 
reduction, and a scheduled time for the fu ll abolition, of external examiners. 
 
ANSWER:
 
 
Article 17 of the TIPO Organizational Act was re vised and promulgated on 17 July, 2002, to limit the 
number of outside examiners to no more than 10% of  the total staff through gradual reduction over a 
span of eight years commencing January 1999 and finishing in January 2007. By the time the total 
number of outside examiners will be reduced to 80, or 10% of the 806 staff. (See chart below)  
    Year 
 
Type 2002 2003 2004 2005 2006 2007 
Outside Examiners 775 775 675 575 475 80 
 
(Page 7, paragraph 30) 
(Ref. page 59, paragraph 117 of the Report by the Secretariat (WT/TPR/S/165)) 
 Concerning the abolition of criminal liabilities for patents, utility models and design patents: 
 
4.  
(a) Please indicate the reason why criminal  liabilities for patents, utility models and 
design patents were abolished. 
(b) Please indicate the current status for cases of infringement, including the specific date 
after the abolition of criminal liabilities, pe r each right (patents, utility models and 
design patents), compared to those before the abolition. 
(c) Please explain how effective enforcement measures have been established and will be 
established, in order to secure the same le vel of deterrents for criminal liabilities. WT/TPR/M/165/Add.1 
Page 108  
 
ANSWER:
  
 (a) 
 1. As far as criminal liabilities for patent infringement are concerned, most countries 
adopt civil remedies in their legal regime. Article 61 of TRIPS leaves members the 
discretion to decide whether to apply criminal liabilities on patent infringements.  
2. Since invention patenting requires comp licated technical and professional legal 
knowledge, it is difficult to render judgment on infringements. In practice, it is not 
uncommon for a patent holder to initiate criminal procedure and to appeal to the 
prosecutor for search and seizure. Alt hough cases of this kind are generally 
acquitted, the damage has already been  done. To ensure fairness and reasonable 
treatment, we decriminalized patent infringements.  
(b) There are no such statistics available now. (c) To ensure protection for the patent rights  holder, compensation for damages is increased 
from twice the amount of damage to triple the amount of damage. (Article 83, Paragraph 3 of 
Patent Act) 
 
(Page 7, paragraph 31) 
 Japan recognizes that the revised Copyright Act,  promulgated in 2004, establishes a protection 
mechanism for technological protection measures, based on Article 11 of the WIPO Copyright Treaty 
and Article 18 of the WIPO Performances and Phon ograms Treaty but does not provide appropriate 
and effective legal remedies on the remove and alte r of rights management information, based on 
Article 12 of the WIPO Copyright Treaty and Ar ticle 19 of the WIPO Performances and Phonograms 
Treaty. 
 
5. Please indicate the reason why the revised Copyright Act does not pr ovide appropriate and 
effective legal remedies on the remove and alter of ri ghts management information.  If there is a plan 
for legislation on this point, please indicate it. 
 
ANSWER:
 
 
The 2003 amendment of the Copyright Act enac ted the regulation of “rights management 
information” and provided an appropriate and effec tive legal protection mechanism (Please refer to 
Articles 80bis and 88 for civil remedy provisions and Article 96bis for cr iminal penalty provisions).  
Hence, such legislation is already in place.  
 
(Page 7, paragraph 31) 
 
Japan believes that legislation for the reliability  of Internet Services Providers, including the 
procedures of “Notice and Take Down, is required along with the progress of digitalization.  Last 
year, we received a reply in the Trade and Ec onomic Conference that this legislation was under 
consideration. 
 
6. In this regard, please indicate th e current status of consideration. 
 
ANSWER:  
 
In response to trends in digital technology devel opment, we revised the Copyright Act in 2003 and 
again in 2004, to regulate public transmission rights,  electronic rights management information, and 
technological protection measures. These revisions are in compliance with the World Intellectual 
Property Organization Copyright Treaty (WCT) and Performances and Pho nograms Treaty (WPPT). 
In addition, our government has proposed a bi ll incorporating the “notice and take down”  WT/TPR/M/165/Add.1 
 Page 109 
 
 
mechanism to regulate ISP liability . This amendment will ensure co mplete IPR protection in the 
Internet environment. 
 
(Page 7, paragraph 32) 
 
7. Please provide detailed information on the “Action Plan 2006-2008” launched in 
January 2006. 
 ANSWER:
 
 Please refer to our answer to the question from Switzerland related to para 32. 
[CHINA] 
 
Question 16: (Secretariat Report p. 62 para. 133):  
 
The Secretariat Report states: “The number of stores selling pirated musical compact disks declined from 300 to 129.” 
 
Could Chinese Taipei confirm whether this inform ation provided by the Secretariat is correct? 
What measures does Chinese Taipei plan to take with these stores and prevent new stores as such 
from being established in the future? 
 
ANSWER:
 
 
This information was cited from the IFPI commerc ial Piracy Report 2005. We will continue to carry 
out the implementation as set forth in the IPR Action Plan 2006-2008 to combat counterfeits and 
piracy, and to reinforce inspections. All police authorities will clamp down on infringement activities at night markets and shopping locations within their respective jurisdictions to ensure IPR protection 
measures are duly implemented.   
Question 17:  
 
According to our understanding, some Chinese trademar ks were registered pre-emptively in Chinese 
Taipei. Among them there are well-known trademarks  such as Tong Ren Tang, Yang Sheng Tang, Jin 
Hou, Hui Da and Yi Zhi Bi, and registered trademarks of some traditional Chinese brands like Feng 
Ze Yuan and Fang Shan.  
1. What legal procedures does Chinese Taipei have for addressing pre-emptive trademark 
registrations?   ANSWER:
 
 According to Article 23(1)(14) of the Tradema rk Act, We have mechanism to exclude applicant 
registering another person’s trademark pre-emptively.  The third party or the interested party may 
cancel the registration by means of opposition or invalidation procedure. 
 
2.  Will Chinese Taipei protect China’s famous trademarks and well-known traditional registered 
trademarks in the patent review period?  
 
ANSWER:
 
 
According to Article 23(1)(12) of the Trademark Act, This includes registered and non-registered 
well-known trademarks . Recently, with cross-strait trade increasing, 102 trademark registrations WT/TPR/M/165/Add.1 
Page 110  
 
that are identical or similar to China’s fam ous trademarks and well-known traditional registered 
trademarks have been cancelled for violating Article 23(1)(12) or 23(1)(14). Only 5 disputed 
cancellation applications were denied  due to insufficient evidence. 
 
3.  Does Chinese Taipei have any system on the protection of famous trademarks? If yes, what are the reviewing procedures?  
 
ANSWER:
 
 
The holder of well-known trademark rights may file an opposition with the registrar office within three months of the publishing date, to cancel the trademark. The rights holder may also request or 
inquire invalidation within five years from the publis hing date. If the registration complies mala fide 
with Article 23(1)(12), the five years period shall not be applied. 
 
4.  Is Chinese Taipei of the view that the above-mentioned practices c onstitute infringements of 
the IPRs owned by the enterprises of China? If yes, does Chinese Taipei has an y plan to correct these 
practices? 
 
ANSWER
 
 
As stated in the above-mentioned responses, our  trademark opposition and invalidation mechanisms 
provide adequate protection for rights holders of China. 
 
[EC] 
 
Intellectual property rights WTO Secretariat’s Report , page  60, paras 126, 127, footnote 90  
The WTO Secretariat’s Report mentions that there is one case of compulsory licensing, which is still 
pending before the Ministry of Economic Affairs. In relation to the decision to grant a compulsory licence on five patents rights (concerning rewritable compact discs) owned by a non-Chinese Taipei 
company, mentioned in the footnote to paragraph 126, the EC has the following questions: 
 It appears that the appeal before the MOEA h as been pending for a long time. Could Chinese Taipei 
explain why a decision has not yet been taken? 
 
ANSWER:
 
 
The appeal case in question was submitted to the Ministry of Economic Affairs on 27 August, 2004. 
Since this case is unique in that the compulsory li cense is the first of its kind being approved, it 
involves complicated legal issues and the party invo lved submits evidence and legal proofs as well as 
its willingness for a compromise. The Ministry conven ed five meetings whereb y all parties involved, 
including the competent authority that rendered the original disposition, the appellant, and the 
intervenor, were allowed to present their positions. Judgment in this case has been rendered on 
16 June, 2006, in favor of TIPO’s administrative decision. 
 
It appears that the conditions laid down in Article  31 of the TRIPs Agreement relating to the use of 
compulsory licensing are not met in relation to this decision. Could Chinese Taipei explain how the 
decision complies with this provision? 
 
ANSWER:  
 
All of the conditions laid down in TRIPS Article 31 were met in relation to the decision. These 
conditions include: the authoriza tion of compulsory licence was considered on its individual merits;  WT/TPR/M/165/Add.1 
 Page 111 
 
 
prior to the compulsory licence, the proposed user  had made many efforts to obtain authorization 
from the right holder on reasonable commercial term s and conditions and that such efforts were not 
successful within a reasonable period of time; the scope and duration of compulsory licence was 
limited to the purpose for which it was authorized ; it was non-exclusive and non-assignable; it was 
authorized predominantly for the supply of the do mestic market; the user was ordered to pay 
adequate remuneration to the right holder; and the ri ght for right holder to pursue judicial review 
was assured by the Administrative Litigation Act.  Could Chinese Taipei, in particular, indicate how its  authorities ensure compliance with the condition 
that a compulsory licence be limited to  mainly supplying the domestic market? 
ANSWER:
 
 
In the event that the reason or condition for compul sory licence no longer exist or been violated, the 
patent holder may apply to the competent patent authority for annulling the compulsory licence in 
accordance with the Patent Act Article 77, which is in conformity with TRIPS Article 31(g). The 
patent holder, in fact, had applied to annul the compulsory licence on May 5, 2006, based on the 
reason that the user did not meet the condition of being the predominant supplier of the domestic 
market. The competent patent authority therefore w ill examine the fact and then make a decision. 
 
[US] 
 
Measures Affecting Production and Trade – Intellectual Property Rights – Compulsory 
Licensing 
 
10. According to paragraph 126 on page 60 of the Secretariat Report, there has been only one 
case to date of compulsory licensing in Chinese Taipei (on five patent rights concerning rewritable 
compact discs).   The patent owner appeal ed the case, which is still under review.  
 
A) Please provide the rationale for th e compulsory licensing in this case. 
 ANSWER:
 
 
According to Article 76 of the Patent Act, “in th e case of an applicant’s failure to reach a licensing 
agreement with the patentee concerned under reas onable commercial terms and conditions within a 
considerable period of time, the Patent Authority  may, upon an application, grant a right of 
compulsory licensing to the applicant to put  the patented invention into practice.” 
 
The compulsory licensing applicant in this ca se had corresponded with the patent holder on three 
occasions between March and April 2001 to express its  intent for negotiation, and resolutions were 
not reached at the negotiations with said patent holder between June 2001 and April 2002.  
 
Therefore, the period of negotiation between both parties should be considered “a considerable 
period of time” since March 2001 to April 2002 was longer than a year and they failed to reach an 
agreement. The competent patent authority therefor e issued the compulsory license in accordance 
with Patent Act Article 76, which is in  conformity with TRIPS Article 31(b). 
 
B) Please provide an update on the status of the appeal.  ANSWER:
 
 The patent holder did not accept the decision of gr anting compulsory license and has appealed to the 
Committee of Petitions and Appeal of the Ministry of Economic Affairs on 26 August, 2004. The 
Committee of Petitions and Appeal has held several hearings since then. Because both parties had WT/TPR/M/165/Add.1 
Page 112  
 
conveyed willingness for reconciliation during the admi nistrative review procedure, the Petitions and 
Appeals Committee thus postponed the following hearing several times at the requests from both 
parties. The final hearing was held on 10 April,  2006. The Petitions and Appeals Committee rendered 
a final decision on 16 June, 2006, in favor of TIPO’s administrative decision.  
Measures Affecting Production and Trade – Intellectual Property Rights – Parallel Imports 
11. In paragraph 128 on page 61, the Secretaria t Report indicated that parallel imports of 
copyrighted products without the authorization of the right holder are illegal.  
In such cases, would the infringer be subject to le gal action in the criminal, as well as civil, courts? 
ANSWER:
 
 1. A person who imports the original or copies of a work without the authorization of the economic rights holder shall be deemed to have in fringed copyright pursuant to the subparagraph 4 
of Article 87 of the Copyright Act. The importer sha ll be liable for civil remedies but without criminal 
offense. 
 
2. The aforementioned imported goods are ille gal goods. Any person who distributes or rents 
such illegal goods will be in violation of economic  right holder’s distribution right and rental right 
and shall be responsible for both civil damage and crimi nal offense according to Article 28bis, Article 
91bis and Article 29, Article 92 of the Copyright Act. 
 12. In paragraph 131 on pa ge 61, the Secretariat Report related that Chinese Taipei established a 
special IPR police force to conduct random raids on night markets and shops suspected of purveying 
pirated goods that infringe copyrights.  Howeve r, according to Table III.16 on page 62 of the 
Secretariat Report, “IP Cases Investigated and Concluded by District Prosecutor’s Office," it appears that there has been a yearly decline in the number of copyright cases since 2001. 
 
Please provide more detailed information on the IPR police’s contribution to Chinese Taipei’s enforcement efforts in the case of products that infringe copyrights. 
 
ANSWER:
 
 
Starting 2005, the IPR Police conducted daily inspec tions of night markets to strengthen the search 
for pirated ODs. As of December 2005, the IPR Police had dispatched a total of 18,771 officers on 
4,933 inspections, uncovered 1,428 cases of infringe ment, forwarded 1,583 suspects to prosecutors’ 
offices for further investigation, and seized 451,463 CD s. The full force of the deterrent is reflected in 
the 26.42% increase in the number of dispatched  officers, a 17.15% and 51.43% increase in cases 
and suspects discovered respectively, and a 52.17% decrease in the number of pirated CDs seized. 
 
As of May 31 this year, the IPR Police had c onducted 1317 raids whereby a total of 4495 officers 
were dispatched. A total of 644 cases of infringe ment were found and 712 suspects were forwarded to 
the prosecutors’ office, increase of 11.42% and 8.54%. 
 
We will continue to carry out the implements as set forth in the IPR Action Plan 2006-2008 to combat 
counterfeits and piracy, and to reinforce inspections. All police authorities will clamp down on infringement activities at night markets and shopping locations within their respective jurisdiction to 
ensure our IPR protection measures are duly implemented.   WT/TPR/M/165/Add.1 
 Page 113 
 
 
[CANADA] 
 
Report by the Secretariat (WT/TPR/S/165)  
Part III. Trade Policy and Practices by Measure:  (4) Measures Affecting Production and Trade; 
(v) Intellectual property rights, (d) Trade ma rks and geographical indications, page 59, 
paragraph 123: 
 The Secretariat Report notes that Chinese Taipei promulgated the Operational Points on Application 
for Registration of GIs as Certification Marks  on 2 September 2004 to recognize geographical 
indications and generate a GI protection list.   
8. Can Chinese Taipei provide further information with respect to how this system operates? For 
example, what criteria are used to examine and allow registration? What level of protection is conferred to GIs?  
ANSWER:
  
 As an obligation to afford protection to geographical indications in accordance with the provisions of 
the TRIPS, and to strengthen our protection mechani sm for geographical indications, we promulgated 
as a guideline the “Operational Points on Applica tion for Registration of Geographical Indications 
as Certification Marks”. The examination criteria in clude the relationship between the given quality, 
reputation or other characteristics of the goods  with the geographical origin. The competent 
authorities related to the goods concerned, provide ex officio administration assistance. Until now, 
with the exception “Chihshang Rice” Certificati on Mark protected as GI, no other GIs have 
registered as a certification mark in a ccordance with the said guideline. 
 
Part III. Trade Policy and Practices by Measure:  (4) Measures Affecting Production and Trade; 
(v) Intellectual property rights, (g) Compulsory licensing, page 60, paragraph 126:   
The Secretariat Report notes that to date there h as been one case of compulsory licensing in Chinese 
Taipei, that this has been appealed, and that the appeal has been in process since August 2004. 
 
9. What is the normal expected length of an appeal process in a case such as this?  
 
ANSWER:
 
 
1. According to Article 85 of the Administrative Appeal Procedure, the administrative appeal decision shall be made within 3 months which may be extended if necessary. The period can only be 
extended one time with two months limits. 
 
2. The appeal for the compulsory licence in qu estion is unique in that the compulsory licence 
and is the first of its kind being approved. The case involves complicated legal issues and the party 
involved submits evidence and legal proofs as well as its willingness to compromise. The Ministry has 
convened five meetings whereby all parties involved, including the co mpetent authority that rendered 
the original disposition, the appellant, and the in tervenor, were allowed to present their positions. As 
a result, the time required for the appeal decision is longer than usual. 
 
Part III. Trade Policy and Practices by Measure, (4) Measures Affecting Production and Trade, 
(v) Intellectual property rights, (i) Enforcement of IPRs, page 61, paragraph 131:  
 
The Secretariat Report notes that since Chinese Taip ei’s accession to the WTO, it has adopted various 
measures to strengthen the enforcement of IPR legislation. 
 WT/TPR/M/165/Add.1 
Page 114  
 
10. Would Chinese Taipei provide more details on the resources used in practice to fight 
intellectual property violations?   ANSWER:
 
 In order to fully carry out our IPR policy, all rel evant government agencies have put strenuous efforts 
to combat IPR piracy and infringement.  
 In 2005, police agencies discovered a total of 4,648  cases of IPR infringement, a 10.43% increase 
from the 4,209 cases discovered in 2004. The Jo int Optical Disk Enforcem ent Taskforce (JODE) 
conducted 1,193 inspections of OD factories, an  11.81% inspection-volume increase from the 
1,067 inspections in 2004, but no violations were found.  It is clear that JODE’s efforts have had a 
deterrent effect on illegal OD manufacturing.  Inspections on borders were also enhanced. In 2005 , 174 cases of alleged trademark infringements 
through importation were found and a to tal of 2,393,323 items were seized  include cigarettes, leather 
goods, clothing, and pharmaceutical  products. In addition, 76 cases of copyright infringements 
through importation were also discovered, and 33,290 pirated ODs were seized.  
 IPR protection is an established policy of our government; its purpo se is to fulfill international 
obligations, encourage innovation and inven tion for industrial upgrade, and enhance the 
competitiveness as well as sustainable economic d evelopment. The “IPR Action Plan 2006-2008” is 
instituted by the Ministry of Economic Affairs (M OEA) to foster a sound IPR protection environment 
and meet industrial development needs. 
 
Part III. Trade Policy and Practices by Measure, (4) Measures Affecting Production and Trade, 
(v) Intellectual property rights, (i) Enforcement of IPRs, page 61, paragraph 132:  
The Secretariat Report says that the total number of adjudicated cases fell from 2,797 to 2,581 
between 2004 and 2005.   
11. Can Chinese Taipei please provide more info rmation on the average time taken between the 
first proceeding until the day that the Court rende rs a decision?  Does th e average time differ 
depending on whether it is a civil or a criminal proceeding? 
 
ANSWER:
 
 For ordinary civil cases, the average time required by  the court to render its decision is as follows: 
 1. Copyright: 208.8 days 
 2. Patent: 379.1 days  3. Trademark: 298 days 
 
For criminal cases, the average time required by th e court to render its decision is as follows: 
 1. Copyright: 123.23 days 
 2. Trademark: 63.9 days   WT/TPR/M/165/Add.1 
 Page 115 
 
 
[COLOMBIA] 
 
Numeral 4)  Medidas que Afectan a la Producción y el Comercio 
Literal v)  Derechos de Propiedad Intelectual  
A) Situación General 
Párrafo 110.  Se menciona que en años recientes el Taipei Chino ha modificado sustancialmente sus 
principales leyes sobre los derechos de propiedad intelectual.  La Oficina de la Propiedad 
Intelectual, establecida en 1999 y dependiente del Mi nisterio de Asuntos Económicos, se encarga de 
la formulación de las políticas relacionadas con lo s derechos de propiedad intelectual, ente otros 
asuntos.    
¿Cómo es el funcionamiento de la Oficina de la Pr opiedad Intelectual como entidad encargada de la 
formulación de las políticas relacionadas con los derechos de propiedad intelectual?  
 ANSWER:
 
 IPR policy formulation is one of TIPO’s responsib ilities. Its function is to ensure IPR laws and 
regulations for patent, trademark, copyright, trade secrets, and IC layout to be revised in a timely 
fashion to stay abreast of int ernational development trends and to meet the need of domestic 
industrial development.   
 
C) Patentes  
A) Párrafo 117.  Las modificaciones más recientes de la Ley de Patentes entraron en vigor el 
1ºde julio de 2004.  Estas modificaciones se referí an a lo siguiente: normas relativas al documento de 
especificación;  aclaración de las condiciones para rechazar una patente;  anulación de procedimientos de oposición;  derechos anuales de patente;  de rechos exclusivos a prevenir ofertas de venta y 
derogación de responsabilidades penales por los mode los de utilidad y las patentes de diseño.   
 ¿Cuáles fueron las razones que llevaron al Taipei Chino a promulgar una ley que anula los 
procedimientos de oposición en las patentes?   
 
ANSWER:
 
 
Opposition is a public pre-survey mechanism before the issuance of a patent. The requirements for 
opposition are similar to those for cancellation. In 2001, although only 3.5% of patent opposition 
applications were approved, every patent issuance wa s delayed 3 months due to the opposition 
mechanism. Since opposition is seldom used but  highly abused, most members have abandoned it. 
Therefore, we merged opposition and cancellation mechanisms in the recent 2003 amendment of the 
Patent Act. 
 
B) Párrafo 120. Las obtenciones vegetales se prot egen en virtud de la Ley de Obtenciones 
Vegetales y Semillas de Plantas.  Esta ley abarca las obtenciones vegetales que ofrecen las 
características de novedad, carácte r distintivo, uniformidad y estabilidad, así como una denominación 
adecuada de la obtención vegetal.    
¿Tiene la Ley de Obtenciones Vegetales excepciones a la protección? 
 
ANSWER:
 
 
According to The Plant Variety and Plant Seed Act, since on 5 December, 1988, seed plants, ferns, and other plants designated as botanical taxons as  governed shall be published by the central WT/TPR/M/165/Add.1 
Page 116  
 
competent authority. Up to now, 95 items which we commonly planted are published and protected. 
Besides, the protection of a plant variety right shall not extend to the use of these material for non-profit purposes, such as research. 
 
F) Secretos comerciales 
 
Párrafo 125.  En el Taipei Chi no los secretos comerciales se protegen en virtud de la Ley de Secretos 
Comerciales, de 17 de enero de 1996;  los secretos  comerciales se definen como "cualquier método, 
técnica, proceso, fórmula, program a, diseño u otra información que pueda utilizarse en el curso de la 
producción, la venta o las operaciones".  La infracci ón de los secretos comerciales puede dar lugar a 
actuaciones civiles, como la d estrucción de los productos objeto de la apropiación indebida.  Los 
datos de pruebas no divulgados están protegidos por la Ley de Asuntos Farmacéuticos desde el 5 de 
febrero de 2005.  Los plaguici das agrícolas se consideran secreto co mercial de conformidad con las 
Normas de las Pruebas Toxicológicas de los Ag roplaguicidas.  Los secretos comerciales no parecen 
estar protegidos si el país de origen de su propietario no ha firmado un acuerdo bilateral sobre 
secretos comerciales con el Taipei Chino, o no proporciona protección legal a los secretos 
comerciales de propiedad de pers onas del Taipei Chino.  No obstante, según las autoridades, los 
secretos comerciales están protegidos en el Ta ipei Chino de conformidad con el artículo 3 del 
Acuerdo sobre los ADPIC.   
 ¿Cómo funciona el tema de la reciprocidad en relación a la protección de algunas creaciones 
intelectuales? 
ANSWER:
 
 
Our IPR regime is in full compliance with  the TRIPS Agreement upon our accession to the 
WTO on 1 January, 2002. Thus, nationals of any memb er enjoy the same legal status as Chinese 
Taipei citizens.  
[COSTA RICA] 
 
Medidas que afectan a la producción y el comercio Propiedad Intelectual  
 
22. ¿Podría ampliar sobre cómo las condiciones de reciprocidad referidas no afectan el artículo 3 
del Acuerdo sobre los ADPIC en la protección de  los derechos de propiedad intelectual a no 
residentes? ¿En qué consisten estas condiciones de reciprocidad?  
ANSWER:
 
 
1. We have incorporated the principles of “National Treatment” and “Most-Favored-Nation 
Treatment” into Article 4 of the Copyright Act.   
2. Regarding the reciprocal agreement for the protection of copyright, there has been the 
“Agreement for the Protection of Copyright betw een the CCNAA and the AIT” and the “Arrangement 
between the New Zealand Commerce and Indust ry Office and the Taipei Economic and Cultural 
Office, New Zealand on the Reciprocal Protection and  Enforcement of Copyright”. When we acceded 
to the WTO in 2002, we notified that we would a ccord advantage, favour or  privilege under the above 
two pre-existing Agreements to the nationals of other WTO Members pursuant to the principle of 
“Most- Favored-Nation Treatment”. 
 3. The reciprocal treatment regarding trademark and patent priority rights between us and our 
trading partners before our accession to the WTO has applied to WTO members since 
1 January, 2002.  WT/TPR/M/165/Add.1 
 Page 117 
 
 
[KOREA] 
 
Intellectual Property Rights(WT/TPR/G/165, p.7, para.30) 
 
5. It is recognized that foreign dramas, movies, and music are gaining more popularity in Chinese Taipei. 
 
Would the Chinese Taipei government explain wh at measures has been undertaken to provide 
adequate protection of copyright on these foreign cultural products?  
 
ANSWER:
 
 
1. Dramas, movies, and music are copyrightable under our Copyright Act. 
 2. After our accession to the WTO in 2002, a ll works of WTO member States are protected 
under the principles of MFN and national treatment. Article 4 of our Copyright Act has reflected the 
above two principles.  
3. Regarding the protection of copyright, the works of Chinese Taipei citizens and foreign 
nationals are treated equally without discrimination.  
 
20. PRIVATIZATION OF STATE-OWNED ENTERPRISES
 
[SINGAPORE] 
 
Privatisation of State-owned enterprises 
 
4 In para 137, it is stated that 15 SOEs in pe troleum, aerospace, shipbuilding, iron, electric 
power, water supply, tobacco a nd liquor, banking, rail transport,  postal services, and chemical 
engineering are to be privatized. The Report also states that schedules for privatizing 9 of these SOEs 
are being re-evaluated, are suspended or remain undecided. 
 While we note that (according to Chinese Taipei aut horities) the latest date for the privatization of 
SOEs is foreseen in 2008, we would appreciate if Chinese Taipei could provide more information on 
the reasons for the re-evaluation, suspension and lack  of decision relating to the privatization of the 
9 SOEs. 
 
ANSWER:
 
 
There are three factors impeding the process of privatization of the nine SOEs: 
 
 1. The modifications of related Acts  are pending in the legislature;  
 2. There is opposition from SOE labour unions and employees who fear loss of job 
security in the future; 
 3. Our capital market cannot afford to relea se too many shares within a short period of 
time. 
 
Services 
 
2 We note that Chinese Taipei has made exte nsive commitments across the various sectors 
during its accession to the WTO. It is commendable that Chinese Taipei has made commitments in 
about 120 of the 160-odd sectors listed in the CPC list.  We also commend Chinese Taipei for submitting quality initial and revised offers in a ti mely manner.  While recognizing Chinese Taipei’s 
good record, we would appreciate clarification to the following  WT/TPR/M/165/Add.1 
Page 118  
 
(i) Para 58 (Secretariat Report) states that the government holds more than 50% of total bank 
assets. Four banks are fully owned by the government; all of them are scheduled to be privatized (ie. reducing government shareholding to less than 50%). 
 
It would be useful if Chinese Taipei could provide  more information on (i) the four banks that are 
fully owned by the governme nt; and (ii) the time-frame for their privatisation. 
 
ANSWER:
 
 
The Taiwan Cooperative Bank has been privatized since 2005 and at the end of January, 2006, the government’s shareholding of the Taiwan Cooperati ve Bank was 47.93%.  The privatization of the 
Bank of Taiwan has been postponed until June 2008 since the Central Trust of China will be merged 
with the Bank of Taiwan by June 2007.  Land B ank of Taiwan will be privatized in December 2006. 
 For more information, please refer to Table AIII.8 of the Secretariat Report (WT/TPR/S/165, 
Page 106).  
[JAPAN] 
 
Report by the Separate Customs Territory  of Taiwan, Penghu, Kinmen and Matsu 
(WT/TPR/G/165) 
III. Economic And Trade Policy Regime  
(2) Implementation Of Accession Commitments 
(v) Privatization of state-owned enterprises  (Page 10, paragraph 43)  
The Report (WT/TPR/G/165) states that all remaini ng state-owned enterprises, with the exception of 
the Taiwan Water Supply Corporation, are schedul ed to be privatized in the years to come. 
 
10. Please indicate the benchmark of the priva tization.  For example, how about capital 
participation?  ANSWER:
 
 
1. According to Article 1 of the relevant Ac t concerning the privatization of state-owned 
enterprises, this Statute is enacted to facilitate the privatization of state-owned enterprises, to exert 
the market mechanism, and to enhan ce the operational efficiency of ent erprises. Therefore, in order to 
exert the market mechanism and to enhance the opera ting efficiency of enterprises, the quality 
benchmark for privatization in the Separate Cu stoms Territory of Taiwan, Penghu, Kinmen and 
Matsu is : (1) the industry is free and fully comp etitive, and (2) the enterprises have no policy burden 
from government.  
 2. According to Article 3 of the relevant Ac t concerning the privatization of state-owned 
enterprises, the term "state-owned  enterprise" indicates any enterprise either solely owned by any 
government or jointly operated by governments and private individuals where the capital of the 
government exceeds fifty percent (50%). So it could be said that the quantity benchmark for 
privatization in the Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu is: “As 
capital participation in the enterprise by privat e individuals or sectors exce eds fifty percent (50%), 
the enterprise is privatized.” 
  WT/TPR/M/165/Add.1 
 Page 119 
 
 
[COLOMBIA] 
Literal vi)  Privatización de empresas de propiedad estatal 
 
A) ¿Qué criterios utilizan las autoridades para aprobar o no la privatización de empresas de 
propiedad del Estado? 
 
ANSWER:  
 
According Article 3 of the relevant Act concerning the privatization of state-owned enterprises, the 
term “state-owned enterprise" indicates any ent erprise either solely owned by any government or 
jointly operated by governments and private indivi duals where the capital of the government exceeds 
fifty percent (50%). Theref ore, “as capital participation in the en terprise by the private individuals or 
sectors exceeds fifty percent (50%), the enterprise is privatized”. 
 B) Párrafo 136.  Se establece que los fondos resultant es de la privatización se entregan al Tesoro 
a título de recurso financiero para los gastos de  capital y de fondo para indemnización de pérdidas 
especiales, incluida la compensación de los empleados.    ¿Qué se entiende por pérdidas especiales? 
 
ANSWER:
 
According to Article 8 of the relevant statute, employees laid off under the preceding paragraph and 
who meet the retirement conditions, shall be add itionally handled according to the retirement 
regulations; for employees who clear the procedu res of severance according to paragraph 2, or are 
laid off according to the preceding paragraph, shoul d they suffer any loss of pension payable to them 
under the civil servant insurance program or th e old-age payment under the labour insurance 
program, their losses of such benefits shall be comp ensated;  for employees who are transferred to 
and retained by a private-owned ent erprise privatized from a state-ow ned enterprise, if they incur any 
loss with respect to their insurance period orig inally covered under the civil servant insurance 
programme as a result of switching their insurance enrollment to the labour insurance programme, 
they shall be compensated by analogy;  any reductio n or loss of other rights or interests which are 
originally available shall also be compensated ( paragraph 4 ). The term “special losses” covers the 
various damages and losses to the employees mentioned above. 
21. COMPETITION POLICY  
 
[HONG KONG, CHINA]  Competition (WT/TPR/S/165, P. 63-64, Para. 139) 
 3. We note that two applications on “concerted actions” were submitted in 2004 under the Free 
Trade Law.  Can more details be provided regard ing these applications and their justifications?  
Whether these applications had been approved, and if so on what ground? 
 
ANSWER:
 
 The two applications on “concerted actions” submitt ed in 2004 under the Fair Trade Act were:  
 
1. Four domestic TV stations applied for approval of the joint purchase of the authorization to 
broadcast the Athens 2004 Olympic Games and lease th em to cable channels. The application was in WT/TPR/M/165/Add.1 
Page 120  
 
accordance with Subparagraph 5, Paragraph 1, Article 14 of the Fair Trade Act: “joints acts in 
regard to the importation of foreign goods for the purpose of strengthening trade”.  
The Fair Trade Commission considered that the join t purchase could help reduce costs by sharing the 
licensing fee, and promote trading efficiency, thus it would be in the public interest.  The application 
was approved by the FTC with the following four u ndertakings: (1) the advertising price shall not be 
improperly raised; (2) the applicants shall not join tly determine the schedule of each applicant' s 
programmes; (3) the applicants shall not impr operly exclude radio station businesses from 
participating in the broadcast of the Olympic Ga mes; and (4) the applicants shall not employ the 
approval of such concerted action to  engage in other concerted actions. 
 
2. Three domestic airline companies applied for an approval of free endorsement program to 
transfer tickets among each other on the Taipei-H enchung Route. The application was in accordance 
with subparagraph 1, paragraph 1, Article 14 of the Fa ir Trade Act: “unifying the specifications or 
models of goods for the purpose of reducing costs,  improving quality, or increasing efficiency”  
 The FTC believed that application would benefit th e overall economy and be in the public interest, 
such as resulting in shorter flight intervals, increase d passenger rates, lower flight costs, improved 
operational efficiency, and more convenience to passengers. There were no apparent disadvantages 
resulting from unfair competition or competitive restrain ts such as entry barri ers, price rigidity, the 
impact on the market both upstream and downstream,  and consumer interests. The application was 
approved by the FTC and the validity period will be until 31 January, 2006.   
[COLOMBIA] 
 
Parte III. Politicas y Prácticas Comerciales por Medidas  
 
Numeral 1)  Introducción.  Párrafo 12.  Se sostiene que ciertas actividades como los carteles de 
exportación e importación pueden quedar ex entos de la aplicación de la Le y de comercio Leal si así lo 
aprueba la Comisión del Comercio Leal.  
 
¿Qué condiciones tiene en cuenta dicha Comisión pa ra eximir de la aplicación de ésta ley a una 
actividad?  
ANSWER:
 
 Article 14 of the Fair Trade Act states that: “No enterprise shall have any concerted action; unless 
the concerted action that meets one of the followi ng requirements is beneficial to the economy as a 
whole and in the public interest, and the application with the central competent authority for such 
concerted action has been approved: 
 
1. unifying the specifications or models of  goods for the purpose of reducing costs, 
improving quality, or increasing efficiency;  
2. joint research and development on goods or  markets for the purpose of upgrading 
technology, improving qua lity, reducing costs, or increasing efficiency;  
3. each developing a separate and specialized  area for the purpose of rationalizing 
operations;  
4. entering into agreements concerning solely the compe tition in foreign markets for the 
purpose of securing or promoting exports;  
5. joint acts in regard to the importation of foreign goods for the purpose of 
strengthening trade;  
6. joint acts limiting the quantity of producti on and sales, equipment, or prices for the 
purpose of meeting the demand orderly, while in economic downturn, the market price of products is lower than the average  production costs so that the enterprises in  WT/TPR/M/165/Add.1 
 Page 121 
 
 
a particular industry have difficulty to maintain their business or encounter a 
situation of overproduction; or  
7. joint acts for the purpose of improving operational effic iency or strengthening the 
competitiveness of small-medium enterprises.” 
 
Thus, the exemptions of export and import cartels st ated in the subparagraph 4 and 5 of this article 
are for the benefit of the economy and in the public interest. Furthermore, these actions should apply 
for the approvals of the Fair Trade Commission in  advance. So far, there has never been an export 
cartel approved and only 6 import cartels approved by  the FTC.  Most of the import cartels are food 
manufacturers applied for joint purchasing and shippi ng of the imported bulk cargos, such as 
soybeans, wheat, and corns.  Acco rding to Article 15 of the FTA, the FTC may attach conditions or 
require undertakings and must always specify a tim e limit in these granted approvals. Article 16 
further states that should the cause for approv al no longer exist, should the economic condition 
change, or should the enterprises involved engage in any conduct beyond the scope of the approval, 
the FTC may revoke the approval, alter the contents of  the approval or order the enterprises involved 
to cease from continuing the conduct, rectify its conduct or to take necessary corrective actions. 
 
Literal vii)  Política de Competencia 
 
Párrafo 139.  Se establece que la Ley de Comerc io Leal prohíbe la fijación de precios, la 
manipulación de las ofertas, la distribución del mercado y otras “acciones concertadas”.   
¿Existen casos, sectores y/o productos en los que se haya comprobado la realización de “acciones 
concertadas” por parte de las empresas, donde haya sido necesaria la aplicación de la Ley de 
Comercio Leal?  ANSWER:
 
 Article 7 of the Fair Trade Act states that, “The term  "concerted action" as used in this Act means the 
conduct of any enterprise, by means of contra ct, agreement or any other form of mutual 
understanding, with any other competing enterprise,  to jointly determine the price of goods or 
services, or to limit the terms of quantity, technolog y, products, facilities, trading counterparts, or 
trading territory with respect to such goods and servi ces, etc., and thereby to restrict each other's 
business activities. 
 The term “concerted action” as u sed in the preceding paragraph is  limited to horizontal concerted 
action at the same production and/or marketing stage , which would affect the market function of 
production, trade in goods, or supply and demand of services. 
 
The term "any other form of mutual understandi ng" as used in Paragraph 1 means other than 
contract or agreement, a meeting of minds whether legally binding or not which would in effect lead to joint actions. 
 
By means of its charter, a resolution of a genera l meeting of members or a board meeting of directors 
or supervisors, or any other means, to restrict activ ities of enterprises is also deemed as horizontal 
concerted action as used in Paragraph 2.” 
 
By the end of April 2006, the Fair Trade Co mmission had handed down 117 penalties for concerted 
action since its establishment in 1992.  A recent exam ple was the case of a cement cartel involving 
11 cement manufacturers and 10 cement silo holders or distributors for their price fixing practices 
since 2001. After 4 years’ investigation, on 15 D ecember, 2005, the Fair Trade Commission issued a 
penalty order against the 21 cement enterprises and  imposed administrative fines varying from 5 to 
18 million NT Dollars. The total amount of the fine was 210 million NT Dollars (approximately 
US$6.3 million); this is the second highest adminis trative fine ever issued by the Commission.   WT/TPR/M/165/Add.1 
Page 122  
 
Indicar cómo operan los monopolios legales, para el caso del azúcar   
ANSWER:
  
 According to Paragraph 1, Article 5 of the Fair Trade Act, “ The term "monopolistic enterprise" as 
used in this Act means any enterprise that fa ces no competition or has a dominant position to enable 
it to exclude competition in a relevant market.”  Also, in Paragraph 1 of Article 5-1: “An enterprise 
shall not be deemed a monopolistic enterprise as  defined in the preceding article if none of the 
following circumstances exist:  1. the market share of the enterprise in a relevant market reaches one-
half of the market; 2. the combined  market share of two enterpris es in a relevant market reaches two-
thirds of the market; and 3. the combined market share of three enterprise s in a relevant market 
reaches three-fourths of the market.”  Taiwan Sugar Cooperation, the largest sugar supplie r and importer in TPKM with 70% market share, 
was regarded as a “monopolistic enterprise” by definition when it was investigated for abusing 
dominant position by the Fair Trade Commissi on in 2001 and 2004 respectively.  The company is 
owned by the government but is not exempted from application of the Fair Trade Act. 
22. AGRICULTURE
 
 
[NEW  ZEALAND] 
9 Special Safeguards  (WT/TPR/S/165,  page 68, para 11)   
The Secretariat notes that special safeguards were  triggered during 2002-05 fo r a number of products.  
What is Chinese Taipei's justification for trigge ring special safeguard measures on products such as 
liquid milk - when the domestic industry is strong, substantial barriers already exist (short shelf life, 
high transport costs) and the tariff quota is typical ly under filled?  What pl an does Chinese Taipei 
have in place to phase out its use of special safeguards?  ANSWER:
 
 In line with our accession commitments, we have ado pted SSG measures for some sensitive products. 
Those measures have been implem ented in accordance with the WTO’s Agreement on Agriculture. 
 With regard to the under-filled quotas on certain produc ts, this situation was caused by domestic 
market factors, including over-supply and declining consumption.  
 
Lastly, during the Doha Round Negotiations, my de legation holds the view that SSG should be 
maintained as long as the reform process is on-goi ng, in accordance with Ar ticle 5 of the Agreement 
on Agriculture. We hope that New Zealand could give its support on this important issue. 
 
11 Domestic Support  (WT/TPR/S/165 page 12)  
 We note that Chinese Taipei is committed to a su bstantial reduction in trade-distorting domestic 
support, as well as substantial improvement in mark et access.  Could Chinese Taipei please provide 
information on what steps will be take n to reduce domestic support measures? 
 
ANSWER:
 
 
With respect to domestic support, we will try to transform the amber-box measures into blue-box 
measures or green-box measures that are less trade-d istorting after the conclusion of Doha Round. 
  WT/TPR/M/165/Add.1 
 Page 123 
 
 
17 Agriculture Policy  (WT/TPR/S/165 page 13, para 32)  
 
The Secretariat notes the great importance to Chinese Taipei’s longer-term growth of structural and 
other economic reforms to boost competition -  including of, inter alia, trade liberalisation, 
particularly in agriculture.  What program does Ch inese Taipei have in place to continue to progress 
trade liberalisation? 
 
ANSWER:  
 
The present tariff structure is th e result of negotiations upon our a ccession to the WTO. Until now, we 
have been actively engaged in the DDA negotiations to achieve substantial improvement on the three 
pillars, and to ensure the ongoing process of trade liberalization. 
 
18 Agriculture Policy  (WT/TPR/S/165 page 66, para 6) 
Despite significant ongoing levels of protection, the Secretariat notes that labour productivity in 
agriculture is only about one quarter of the level found in the rest of the economy and that this is most 
likely due to the small average size of farms, wh ich prevents the achievement of scale of economies, 
mechanisation and use of new technology.   Does Chinese Taipei agree that the protective measures it 
applies at border and via domestic support have not  increased the efficiency/productivity of its 
agricultural sector? 
 
ANSWER:  
 
We are of the view that the efficiency/productivity  of the agriculture sector might be affected by 
various macro- or micro-factors. In some cas es, necessary border measures and assistance(s) from 
the government may increase the efficiency/productivity of the sector. Besides, agriculture plays a 
multifunctional role in the balance among productio n, livelihood, and ecology, such as food security, 
rural development, landscape, wa ter conservation, and bio-diversity , which are public goods and can 
not be adequately reflected through a free mark et mechanism. Therefore, we should not limit our 
consideration of the agriculture sector merely to efficiency/productivity.   
 
[CHINA] 
 
IV. Trade Policies by Sector 
(2) Agriculture  
Question 18: (Secretariat Report p. 67 para. 9, p. 68 para. 10 & 15)  
 Agriculture is the most trade-distorted sector in  Chinese Taipei, which enjoys multiplied protection. 
For instance, “the average applie d MFN for agriculture was 22.3% in 2005. Some 7.5% of tariff lines 
applied to agricultural goods were non-ad valo rem. Many agricultural sub-sectors benefit from 
relatively high level of MFN tariff protection, several of these sub-sectors are also subject to a number 
of tariff peaks. Tariff rate quotas apply mainly to  agricultural products.” Various subsidies are 
provided for the production of rice, sorghum and f eed corn, sweet potatoes, beans, tobacco leaves, 
certain vegetables, and sugar. Meanwhile, “inbound di rect investment in agriculture and fishing is 
restricted”. 
 
Does Chinese Taipei have any plan or concrete m easures to address the protectionist practices in its 
agricultural sector? Why is inbound direct investment in agriculture and fishing restricted? 
 
ANSWER:
 
 1. My government has made very extensive commitm ents in the course of its accession to the 
WTO, which is far beyond the level of commitm ents made by other Members from the Uruguay WT/TPR/M/165/Add.1 
Page 124  
 
Round.  It has already adopted reasonable border and domestic measures in compliance with its 
accession commitments. We will further reform our agricultural policies in accordance with the 
outcome of the DDA negotiations. 
 
2. As to the regulations of inbound direct investme nt in agriculture, the lands of the fisheries 
and forestry sectors shall not be transferred or leased  to foreigners. This restriction was imposed in 
consideration of territorial secur ity and environmental conservation. 
 
[AUSTRALIA] 
 
IV. Trade Policies By Sector 
(2) Agriculture 
 
Chinese Taipei advised in the May 2006 meeting of  the Committee on Agriculture that the constant 
underfill of the liquid milk tariff quota is due to  consumer preferences for local produce and 
prevailing market conditions. Given this, what is the purpose of retaining the quota restrictions and 
accompanying allocation arrangements.   Has Chinese Taipei considered simply applying the in-quota 
tariff to liquid milk imports without quantita tive restriction and related formalities?  
ANSWER:
 
 We impose TRQs on this product based on the r esults of the negotiations held upon our WTO 
accession. Because it is considered sensitive, we  intend to maintain the current measures. 
 
[TURKEY] 
 
IV. Trade Policies by Sector 
(2) Agriculture 
(i) Overview, paragraph 7 
(iii) Domestic Measures and suppo rt programmes, paragraph   20 
 The Secretariat Report states that the government aims to balance demand for and supply of food in 
Chinese Taipei and that to meet these objectives fa rmers have been encouraged to switch from the 
production of rice to that of other crops. 
 
In this respect, it is mentioned in the Report th at if farmers convert their rice paddies to areas 
producing some other specific products such as beans etc. are paid per hectare. 
 
Could Chinese Taipei Delegation inform us if this  measure is being notified to the WTO and within 
what kind of support measures ? 
 
ANSWER:
 
 
Yes. We notified the WTO of this measure in document “G/AG/N/TPKM/32, on 2 March, 2006” which 
included the Diversion Payments program for switchi ng from the production of rice to that of certain 
other crops.  Some of the Diversion Payments are calc ulated into AMS, the others into de minimis. 
 
(ii) Border Measures, paragraph 10 
 
It is noted at the Secretariat Report that tarif rate  quotas are applied mainly to agricultural products in 
Chinese Taipei, including rice, sugar, vegetables, fruits… etc. 
  WT/TPR/M/165/Add.1 
 Page 125 
 
 
Turkish Delegation is interested in learning if there is a plan to eliminate those TRQs, according to the 
Secretariat Report which are being distributed on th e basis of level of imports in the previous 
two years, open bidding and first come first served. 
 
ANSWER:  
 
We removed TRQs on chicken meat, pork belly, pork, and poultry offals in J anuary 2005, and we are 
set to further abolish the TRQs on fish and persimm ons in January 2008.  Because agriculture has 
multi-functionality and has the value of providing pub lic goods that cannot be assessed solely by 
economic efficiency, we believe it is necessary to  maintain TRQs on certain important and sensitive 
products.   
[COLOMBIA] 
 
Parte IV.  POLITICAS COMERCIALES, POR SECTORES Numeral 2)  Agricultura 
 
Párrafo 7.  (…) Además la Ley de  Desarrollo de la Agricultura es el fundamento jurídico de los planes 
oficiales de establecimiento de parques de tecnología agrícola. 
¿Podrían proporcionarnos más detalles sobre el obje tivo de los parques de tecnología agrícola? Su 
estructura administrativa?, ¿Qué tipo de incentivos fiscales o tributarios reciben las personas o empresas que allí se ubiquen?  ¿La ubicación de estos pa rques es en zonas rurales o urbanas?  ¿Qué 
tipo de infraestructura física proporciona el Esta do al aprobar la creación de dichos parques? 
 
ANSWER:
 
 The Agricultural Biotechnology Park is located in PingTung County. The eight industries on which it 
is focused are: plant seeds, functional foods, animal/fowl breeds, water plant seeds, biological 
pesticide and fertilizer, animal vaccines, animal/plant insect pest testing reagents, and the 
agricultural biological technology value-added service industry. The infrastructure construction has 
been underway. Up until the end of Dece mber 2005, 75 manufacturers have submitted their 
applications, 43 of which have been approved. More manufacturers are building their factories in the 
park. Incentives include rent-free for early com ers until 2007, loan, subsidies for human resources 
training and R&D. 
 
Preguntas de colombia relacionadas con el sector agricola  
 
Se informa que en el sector agríco la se aplican salvaguardias especiales. Podrían indicarnos si  ha sido 
aplicada y a qué productos?   ANSWER:
  
 In line with our accession commitments, we apply SSG  measures to some sensitive products.  With 
respect to the products for which SSG action has been envoked since 2002, please refer to our 
notifications, including G/AG/N/TPKM/8,  G/AG/N/TPKM/20, G/AG/N/TPKM/27 and 
G/AG/N/TPKM/36. 
 
Podría Taipei Chino proporcionar detalles sobre la forma cómo el Estado participa en el comercio de arroz?   
 WT/TPR/M/165/Add.1 
Page 126  
 
ANSWER:
 
 1. Rice is both the staple food and the most important crop for us. The government regulates the 
production, purchasing, warehousing, export and im port of rice for the purpose of food security, 
stabilizing the market, and securing farmers’ livelihood.  2. Import of rice has been following the tariff quota system since 2003, which was submitted to 
the WTO Secretariat in 2002. The annual quantity of  rice quota is equivalent to 144,720 tons of 
brown rice, of which 65% (94,06 8 tons) is imported by the government and the rest (50,652 tons) by 
the private sector. 
 
3. Domestic food dealers must take part in bids for acquiring the 35% rice quota. The government has been allocating the quota three times  each year since 2003. In 2005, the allocation 
times were November, March, and May, with volumes of 15,000 tons, 20,652 tons, and 15,000 tons, 
respectively.  
4. Importation of government rice is govern ed by the Agricultu re and Food Agency
, Council of 
Agriculture (hereinafter referred to as “AFA ”). The AFA is in charge of the agricultural policy and 
administration, and also plays the role of a st ate trading enterprise to import government rice in 
batches. 
 5. The quantities of rice imported and exported over recent years (which include the products 
listed below) are shown in Tables I and II. 
 
Rice Products HS number 
Rice in the husk 1006.10.00.00 
Husked (brown) rice 1006.20.00.00 
Glutinous rice 1006.30.00.10 
Other semi-milled or wholly milled rice, 
whether or not polished or glazed 1006.30.00.90 
Broken rice 1006.40.00.00 
 
Table I: The volume of imported rice during 2000-2005  
Year Total quantity imported 
(1000Mt) Annual Quota Quantity for 
government 
(1000Mt) 
2000 6.1 0 
2001 5.5 0 
2002 103.6 94 
2003 147.7 94 
2004 171.8 94 
2005 66.9 94 
Note: The importation date for government ri ce may be postponed to the next year.  
  WT/TPR/M/165/Add.1 
 Page 127 
 
 
Table II:  The volume of exported rice during 2000-2005 
 
Year Total quantity exported 
(1000Mt) Quantity exported by state 
trading enterprise 
(1000Mt) 
2000 119 0 
2001 156 0 
2002 94 0 
2003 28 0 
2004 43 0 
2005 345 0 
 Solicitar información de las formas de asistencia a la agricultura, la pesca y los productos y 
actividades industriales, en especial del apoyo a los ingresos de los agricultores ancianos. 
 
ANSWER:
 
 
1. Please refer to our new and full notification (G/SCM/N/123/TPKM).  
2. According to The Elderly Farmers’ Welfa re Allowance Act, since 1 January, 2006, each 
farmer above 65 years of age can obtain 5000 NT dollars per month of welfare allowance. 
Solicitar explicación detallada de las medidas de est abilización de precios para el arroz y el azúcar 
ANSWER: 
 
 
1. Rice To reduce the impact of government rice released into the market, the resale prices are properly 
determined by referring to their imported prices, management costs, domestic market rice prices, and 
the quality of the imported rice for sale.   
2. Sugar  
The Taiwan Sugar Company (TSC) selling price of sugar  has to be determined by the international 
white sugar price, with which it has to compete, rather than by its production cost, and to be adjusted 
flexibly according to the international market pri ce. The most important factors affecting TSC’s 
pricing strategy for sugar are the international s ugar price, tariffs, import fees, value added tax, and 
market share. 
 
23. ENERGY AND UTILITIES
 
 
[CANADA] 
 
Part IV. Trade Policy by Sector (3) Energy and Utilities (ii) Petroleum, petroleum products, and 
natural gas, page 70, paragraph 28 and CT Re port (WT/TPR/G/165), Part III. Economic and 
Trade Policy Regime, (2) Implementation of A ccession Commitments, (iii) Services, page 13, 
paragraph 58. 
 Paragraph 28 of the Secretariat Report notes that th e sector’s major supplier for marketing petroleum 
is a state-owned enterprise (CPC).  Footnote 22 highl ights that the establishment of privately operated 
gas stations for the marketing of gasoline and diesel  oil was allowed in 1987.   Finally, paragraph 28 
also indicates the governments' intention to libera lize the petroleum sector, including privatization of 
the state-owned enterprise. WT/TPR/M/165/Add.1 
Page 128  
 
Paragraph 58 of Chinese Taipei’s Report mentions di stribution services as part of Chinese Taipei's list 
of priority sectors for the current round of negotia tions. Chinese Taipei has no commitment in Retail 
sale of motor fuel (CPC 613) under the GATS. 
 
12. Are foreign service providers offered national treatment in the establishment / operation of 
gas stations?  
 
ANSWER:
 
 
Yes, foreign service providers, according to the Pe troleum Administration Law, are offered national 
treatment in the establishment/operation of gas stations.  
 
13.  Are there limitations in the num ber of foreign service suppliers?   
 ANSWER:
 
 According to the Petroleum Administration Law,  there is no limitation on the number of foreign 
service suppliers.  
14.  Are there restrictions on foreign ownership?  
 
ANSWER:
 
 
According to the Petroleum Administration La w, there is no restriction on foreign ownership. 
15. Are there other conditions restricting the est ablishment or management of gas stations by 
foreign service providers? 
 
ANSWER:  
 
Foreign service providers establishing and managing gas sta tions are in line with domestic providers 
under the Petroleum Administration Law. 
 
24. MANUFACTURING  
 
[EC] 
 
IV. Trade policies by sectors    
(4) Manufacturing 
Textiles and Clothing 
WTO Secretariat’s Report, page 75, para 47  
Can Chinese Taipei’s elaborate on this new trend in  textile/clothing exports in 2005? Has it anything 
to do with Chinese Taipei's measure s taken in the context of the liberalisation of textile trade as a 
result of the expiry of the WTO Agreement on Textile  and Clothing, aiming at facing the challenge of 
China?  
 
ANSWER:
 
 
Employment in the textile and clothing sector has decreased year by year. Th e number of employees 
has decreased 25% over the last five years, from 262,000 in 2000 to 198,000 in November 2005.  In 
2005 alone, our textile and clothing export volume  and value declined by 13% and 6% respectively, 
compared to 2004.  WT/TPR/M/165/Add.1 
 Page 129 
 
 
After liberalization of the textile and clothing tr ade, our industries encountered numerous challenges. 
Among these are competition from emerging countries,  especially China, trade barriers of importing 
countries, challenges related to global deployment, lack of labour forces, s horter product life-cycles 
and changing individual consumer preferences.  We have adopted the following measures to help the 
industries upgrade their competitiveness:  
 - assisting them to cope with globaliza tion and the development of regional economies, 
 - promoting digitalization and e-commer ce to establish the quick response capability of 
the industries, 
 - enhancing R&D and design capabilities to facilitate product differentiation and 
increase added value, 
 - developing and introducing a high-quality textile workfo rce to create momentum for 
industrial upgrading,  
 - building a sound operational environmen t to reduce the impact on the textile and 
clothing trade.of the removal of the quota system  
 
How does Chinese Taipei explain the 27 percent increase (quantity) of its total textile exports towards 
the EU in 2005, thus becoming in a very short tim e one of the fastest growing exporters towards the 
EU in this regard?  
 ANSWER:
 
 1. According to our trade statistics, the export volume of textiles and clothing to the EU in 2005 
(25 members) was 198.78 thousand tons, an increase of 19.31% compared to the previous year. 
 
2. According to the statistics of the EU, from Jan. to Sept. 2004, the EU imported 
196.18 thousand tons of our textiles and clothing, which is 2.1% of the EU total import volume. In the 
same period of 2005, the volume increased to 185.41 thousand tons, accounting for 2.5% of total EU 
import volume. Although the volume of our exports g rew in 2005, the share accounted for of the EU’s 
total imports in this sector is still limited.   
3. To cope with the effects of liberalization of  the textile and clothing trade in 2005, we have 
been actively enhancing R&D and design capabilities to facilitate product differentiation in the textile 
and clothing industry. In light of the above, some of  our export growth in 20 05 was due to the transfer 
of orders from other supplier countries to us. At the same time, domestic demand in the EU market 
has been increasing gradually after its enlargemen t in 2004. From Jan. to Sept. 2005, the EU 
imported 7,422.14 thousa nd tons, representing an increase of 4.9% as  compared to the same period 
in 2004. The increase in our exports is subject to  the supply and demand conditions of the EU market. 
 
WTO Secretariat’s Report, page 75, para 47 and page 73/74, footnote 32 
 Could Chinese Taipei give more details on the Cha llenge-2008 Plan? Why is textiles still considered 
as a key industry considering the global situation in this sector 
 
ANSWER:
 
 
1. For more details on the Challenge-2008, plea se visit the website at http://www.cepd.gov.tw/  
encontent/en_data/en_content.jsp?linkID=111 &parentLinkID=111&businessID=150&gosec2=y .  
 
2. The government selected key industries with the potential, with promotion, for future 
development. The key industries selected include: (1) “two-trillion and twin-star industries”: 
semiconductors, colour-image displays, digital c ontent and biotechnology; (2) service industries: 
R&D, information, logistics and care-providing; (3) green industries: waste, recycling and reuse; 
(4) traditional industries: high-tech textiles, functio nal foods and cosmetics, new materials, chemical WT/TPR/M/165/Add.1 
Page 130  
 
products for optoelectrics applications, light me tals, electrical vehicle s and sports and leisure 
products.  Because traditional indus tries create job opportunities as well as stabilize society, they are 
pinpointed as key industries for upgrading their valu e-added. Among the traditional industries, high-
tech textile industries are selected as key traditiona l industries because of their potential for future 
development. We have an advanced man-made-fiber  industry and integrated industrial cooperation 
chains both in the middle and down streams. Looking to the future, we will be actively introducing 
new technology and materials, as well as devel oping new products in order to push for new 
opportunities for the textiles and clothing industries. 
 
25. SERVICES – FEATURES
 
 [EC] 
 
IV. Trade Policies by Sectors 
(5) Services  
The withholding tax on services as currently applied in  Chinese Taipei does not seem to live up to the 
requirement that it not be applied in an 'arbitrarily  or unjustifiably discriminatory manner or in order 
to constitute a disguised restriction of trade in servi ces' but be applied in an 'equitable and effective' 
manner (footnote to GATS article XIV (d)). 
 Could Chinese Taipei explain how this can be corrected?  
 
ANSWER:
  
1. In cases where foreign ent erprises have no fixed places of business and business agents 
derive service income, their income shall be subject to withholding tax in accordance with our Income 
Tax Act.  
2. Source of income is determined on the basis of  the facts of each case, and in accordance with 
Article 8 of the Income Tax Act.  Taking the pr ovisions in Subparagraph 3 of the Article as an 
example, the income incurred from services rendere d outside our territory is not seen as income 
sourced from us. However, if the related service s are furnished simultaneously both at home and 
overseas, such as underwriting fees on issuance of overseas securities derived by foreign enterprises 
under the consignment of domestic enterprises, the in come incurred from su ch services is recognized 
as being domestically sourced.  
3. Owing to the diverse nature of the source rules adopted by various countries under their 
respective domestic laws, international double taxa tion may be imposed on cross border transactions. 
One way to avoid international double taxation is through the conclusion of tax treaties bilaterally, 
and this would rely on the mutual efforts of our government and the Eurochambres. 
 4. To establish a healthy tax system to cope with  changes in international trends is a major goal 
of our tax reforms. With regard to any significant  tax issues which involve foreign enterprises, the 
Ministry of Finance will invite representatives of chambers of commerce and related institutions to 
communicate on the matter and to discuss relevant points so as to raise the level of common 
understanding and achieve unanimity on such tax issues.   WT/TPR/M/165/Add.1 
 Page 131 
 
 
[AUSTRALIA] 
 (5) SERVICES 
(i) Features 
 
In relation to education services, we understand that the Private School Law was amended in 
June 2005, but still states that: "Foreigners may hold no more than one-third of directors' positions, 
and may not serve as a chairman".  We further u nderstand that foreigners may, nonetheless, be 
permitted to serve as University Presidents (for example).  
Could Chinese Taipei please explain why foreigners  are still prohibited from filling more than one 
third of director's positions or serving as Chairman  (we had understood that this restriction would be 
removed when the Private School Law was amended last year)?  
 
ANSWER:
 
 
The limitations in our relevant law are to try to  strike an appropriate culture balance, while paying 
due respect to Chinese Taipei's policy objective. However, the Ministry of Education is currently 
working to amend the Private School Law. For sec ondary schools, universities and junior colleges, it 
is planned to abolish the restriction that a foreigner may not become the Chairperson of the Board of 
Directors. In addition, in order to achieve bal ance, the number of foreigners on the Board of 
Directors is to be adjusted to not exceedi ng 2 out of 5 of the board members. 
 With regard to adult education services (CPC924)  and other education and training services 
(CPC929), the rules that a foreigner may not beco me the Principal (president) and Chairperson of 
the Board of Directors still holds.   
Could Chinese Taipei also advise when education servi ces will be added to the list of services that can 
be provided pursuant to paragraph (d) of Ch inese Taipei's horizontal commitment on Mode 4? 
ANSWER:
 
 The opening up of educational services with respect to  the movement of natural persons is not being 
considered at the moment.  
[HONG KONG, CHINA]  
 
Foreign Investments in services sectors 
(WT/TPR/G/165, P. 7, Para. 29; P. 10, Para. 46; and WT/TPR/S/165, P. 76, Para.  52) 
 
4. We note that the Chinese Taipei governme nt has approved the overall elimination of 
restrictions on investment by foreigners in a number of sectors.  It is also pointed out that investment 
bans and restrictions have been relaxed or lifted in many sectors. 
 
While we would commend Chinese Taipei on its libera lization efforts in this regard, we note that 
restrictions remain in various areas in servi ces: there are restrictions on non-Chinese Taipei 
ownership, and inbound direct investment is restri cted (or approval is required), in a number of 
services sectors.  It is however not clear from Chinese Taipei’s existing GATS schedule and its 
services offers that such foreign inv estment restrictions have ever been eliminated or existed.  For 
some of the sectors mentioned in the two Reports (e.g. courier services and educational services), we 
note that Chinese Taipei has alread y undertaken full commitments in respect of mode 3 in both the 
market access and national treatment columns.  We are therefore interested to know the types of 
foreign investment restrictions remaining in these services sectors. WT/TPR/M/165/Add.1 
Page 132  
 
ANSWER
: 
 Please refer to Table II.2 on page 21 of the Secretariat Report. 
 
[CANADA] 
 
Part IV. Trade Policies by Sector, (5) Serv ices, (i) Features, page 75, paragraph 49: 
 
The Secretariat Report says that Chinese Taipei main tains market access limitations with respect to 
telecommunications and more specifically, sate llite communications. Canada notes from consulting 
Chinese Taipei’s GATS Schedule of Specific Commitments  for that satellite-based mobile 
communications services for mode 1 are subjected to commercial arrangements with Chinese Taipei 
licensed operators. 
 16. Can Chinese Taipei explain the type of co mmercial arrangements involved and explain the 
regulations for these commercial arrangements?  
 17. What is the process if a company wants to challenge these arrangements?  
 
ANSWER
: 
 
According to Article 5 of the Administrative Regulations on Satellite Communications Services, a 
foreign Mobile Satellite Service (MSS) operator shall enter into a cooperation contract with domestic 
satellite communication operator or interna tional network business of fixed network 
telecommunications services operator. The dom estic satellite communication operator or 
international network businesses of fixed network telecommunications services serves as the agent 
representing the foreign MSS operator to make a ser vice contract with users and shoulders contract 
obligations together with the above mentioned fo reign MSS operator. The foreign MSS operator can 
provide its MSS not only by signing a commercial cooperation contract with our local licensed 
operator, but also by applying for the licence vi a a commercial presence. The intention of this 
requirement for a foreign MSS supplier to sign a commercial cooperation contract with our local licensed operator is that a foreign MSS supplier w ithout having an operation franchise can provide its 
MSS to our citizens and also protect consumers’ rights. Details can be found at the web-site 
(http://www.dgt.gov.tw/English/Regulat ions/dgt41/dgt41-Satellite-3609.shtml
). The above-mentioned 
cooperation contract, a private commercial arra ngement, is negotiated between a foreign MSS 
company and our licensed operators. Our relevant government authorities will not involve itself in 
any private commercial arrangement ne gotiation between telecom operators. 
 
Part IV. Trade Policies by Sector, (5) Serv ices, (i) Features, page 76, paragraph 53: 
 
The Secretariat Report notes that Chinese Taipei inte nds to treat some services sub-sectors, including 
telecommunications, as “emerging industries” as defined under the Statute for Upgrading of 
Industries  and to enable businesses in these sectors to be eligible for investment incentives under the 
Statute for the Development of SMEs . 
 
18. Can Chinese Taipei provide information on which telecommunication sub-sectors are covered 
by this initiative and how they are covered?  
 
ANSWER:  
 
Neither Statutes provide investment incenti ves for the telecommunication services sector.  
  WT/TPR/M/165/Add.1 
 Page 133 
 
 
Report by the Separate Customs Territory  of Taiwan, Penghu, Kinmen and Matsu 
(WT/TPR/G/165) Part III. Economic and Trade Policy Regime, (1 ) Adjustment for Economic Transformation, 
page 4, paragraph 16: 
Chinese Taipei’s Report refers to “Guidelines and Action Plans for Service Industry Development” 
that intend to advance 12 strategically important service sectors: finance; logistics/distribution; 
information media; medicine and health care; ma npower training, manpower placement and property 
management; tourism and recreation;  cultural and creative services; design; information; research and 
development; environmental protecti on; and engineering consulting.  
26. Can Chinese Taipei please elaborate on the c ontent of these guidelines and action plans, and 
comment on the extent to which these guidelines and action plans have been successful to date?  
 
ANSWER:
 
 
1. The content of the guidelines and action plans  
To speed up promotion of the services indust ry’s development, the government selected 12 key 
categories of service industries for priority devel opment through the implementation of 24 flagship 
plans and major measures. As the 12 industri es face many common issues in the process of 
development, and with eight main fronts on which so lutions need to be worked out, the government 
further formulated the “General Precepts of the Guidelines and Action Plans for Service Industry 
Development,” laying down eight main directional st rategies for this purpose. These key strategies 
are: manpower cultivation; adopting a negative listi ng approach for the revision of related laws and 
regulations; setting up mechanisms that are conducive to service industry development; unifying the 
functions of related ministries and commissions; providing investment incentives; promoting the 
internationalization of the service sector; devel oping local-feature service industries; and 
implementing the flagship plans and main-axial measures for 12 categories of service industries. 
 2. Overall performance In all, under the 24 flagship plans  and main measures for promoting the development of 12 categories 
of service industries, draft amendments have been made to 25 statutes, of which eight have been 
passed into law and promulgated, ten are under legi slative review, and six are under administration 
consideration. In addition, 113 executive orders have been revised, 74 talent-cultivation schemes have 
been completed, and 55 tasks related to alignment with international norms have been carried out. 
Altogether, these are highly pleasing results. Furth ermore, of the 303 tasks concerning the 12 service 
industries that were scheduled for completion in  2005, 288 have been fully accomplished, a 
completion rate of 95%. And, of the 109 performance indicators for the 24 flagship plans and main 
measures, 99 have been accomplishe d, a completion rate of 90.8%. These are again highly pleasing 
results. 
 
26. SERVICES – FINANCIAL SERVICES
 
 
[EC] 
 
(5) S ERVICES  
WTO Secretariat’s Report, page 76 ff Financial services 
 The Secretariat Report ( paragraph 60 ) describes the conditions for granting licenses for branches of 
foreign banks.   
- Could Chinese Taipei please provide informa tion on how many foreign bank branch licenses 
were granted during the last 3 years?  WT/TPR/M/165/Add.1 
Page 134  
 
- Is it correct that Chinese Taipei has adopted  a moratorium on granting branch licenses?  
- If yes, could Chinese Taipei please explain why this restriction has not been listed in its 
schedule of commitments? 
 
ANSWER:
 
 We have granted 3 foreign bank branch licenses during the last 3 years. 
 
In fact, we have not adopted a moratorium on granting branch licenses. The Financial Supervisory 
Commission permits foreign banks to establish br anches in the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu if the applicant banks meet the requirements set forth in the 
Regulations Governing the Foreign Bank Branc hes and Representative Offices. The competent 
authority granted permission for the Barclays B ank PLC to establish a Taipei branch and OBU 
branch in March 2005. 
 
In May 2003, the competent authority also granted a new Tien-Mu branch license to Citibank N.A. In 
addition, the Banco Bilbao Vizcaya Argentaria S. A. (BBVA) of Spain also applied to establish a 
representative office in Taipei in March 2006. The competent authority is currently reviewing its 
application.    
The Secretariat Report ( paragraphs 63 and 67 ) notes that the presence of  non-Chinese Taipei insurers 
has decreased from 27 in 2000 and that there w as only one branch office of non-Chinese Taipei 
reinsurance companies at the end of 2005. 
 
- Could Chinese Taipei elaborate on the causes it sees behind this decrease or low presence of 
foreign financial institutions?  
 
ANSWER:
 
 
The number of foreign life insurance institutions seem s to be declining, mainly because four foreign 
life insurance companies changed their presence from branch offices to subsidiaries during the period 
between 2000 and 2005.  Meanwh ile, two non-life insurance companies were acquired by foreign 
insurance groups.   - Could Chinese Taipei explain how its Insurance Product Approval by Classification system 
does not nullify or impair the specific commi tments that have been made on insurance 
services?  
 
ANSWER:
 
 
Under the present product review system, produc ts fall into three categories: “approval” （full  
pproval must be sought ）; “file and use” （notification must be made prior to distribution; there is a 
15-working-day silence procedure, during which the authority has an opportunity  to disagree or ask 
further questions ）; “use and file” （product can be marketed first with an obligation of notification 
of its existence to the authority within 15 days ）. The prescribed maximum length for products 
subject to “approval” is 90 working days. Therefore,  the present system doesn ’t nullify or impair the 
additional commitments that have b een made on insurance services. 
 
A new regulation has been inte nsively discussed between the authority and the industry since 
July 2005. In the future, except for products sp ecified in the regulation as being subject to  WT/TPR/M/165/Add.1 
 Page 135 
 
 
“approval”, most product filings will be subject  to “use and file”, and “file and use” will be 
cancelled to enable insurers to launch new products more speedily and timely. 
 - Can Chinese Taipei clarify what percentage  of products need to be approved under the 
Insurance Product Approval by Classification system?   ANSWER:
 
 
The percentage of products subject to prior ap proval varies depending on the types of product the 
insurers intend to develop. The authority in recent ye ars has been relaxing the regulation to narrow 
the scope of products subject to approval. The trend of the percentage of products subject to 
“approval” is decreasing, ranging from 46 ％to 24％ in 2003 to 2005. 
 
In the future, the new product review system will  expand the range of categories of insurance 
products which are subject to “use and file”, and rescind “file and use” system. The percentage of 
products subject to “approval” will be expected to decrease further. 
 
The short period of 5 years for fiscal amortisation of  start up and other losses in the insurance sector 
ensures that the initial operations of foreign insurance companies are on a reduced scale and 
constitutes an effective barrier to trade. 
 - Would it be possible for Chinese Taipei to ex tend this period to 20 years to ensure better 
trading conditions for foreign suppliers?  
 
ANSWER:
 
 
1. That the period for tax loss carry-forward is five years is in accordance with the provisions 
under Article 39 of the Income Tax Act. The setti ng of the five-year term takes into consideration the 
variations in profit and loss for the whole indus try; the periods for assessment; and the periods 
required for the keeping of certificates. Further, it is  difficult to give special treatment to a specific 
industry. 
2. There are certain preferential income tax treatments, i.e., de ductions of various unrealized 
expenses, for insuran ce industry under the income tax regulations. 
 
3. In addition, the related rule is appropriate as  in concurrence with practice in China, Japan, 
and Korea, which also each have their own provisio ns for a five-year tax loss carry-forward period. 
 
[AUSTRALIA] 
 
(ii) Financial Services  
Has Chinese Taipei further considered removing the Mode 3 limitations for life and non-life insurance 
services or, alternatively, relaxing the capital require ments (NT$ 2 billion) for the parent company of 
a mutual insurance company that wishes to open a branch in Chinese Taipei?  
 ANSWER:
 
 Since a mutual insurance company is not required to have paid-in capital and issue shares in the 
future, the company may encounter great potential ri sks. For the purpose of maintaining the integrity 
of the financial system and protecting consumers, we  require foreign mutual insurance companies to 
meet the requirement of having at least NT$2 b illion net worth for its parent company when the WT/TPR/M/165/Add.1 
Page 136  
 
company establishes a branch in the Separate Cu stoms Territory of Taiwan, Penghu, Kinmen and 
Matsu. 
 
[CANADA] 
 
Part IV. Trade Policies by Sector, (5) Services; ( ii) Financial Services, (c) Securities, page 79, 
paragraph 70:  
 
The Secretariat Report says that the regulation on securities investment by non-Chinese Taipei 
institutional investors, under which securities inv estment per company was limited to US$3 billion, 
was abolished on 30 September 2003.  It further says that non-Chinese Taipei investors in the Chinese 
Taipei securities market are now classified into tw o types:  institutional investors and individual 
investors;  institutional investors are subject to  a US$5 million investment quota, while individual 
investors are not subject to a quota.  
Canada recognizes the efforts of Chinese Taipei to simplify the regulation of securities investment by 
non-Chinese Taipei institutional investors.  However,  the footnote to paragraph 70 indicates that 
18 companies listed on the stock exchange are s ubject to non-Chinese Taipei ownership limits. 
 
19. Can Chinese Taipei clarify whether these limits  are in fact complete prohibitions on foreign 
ownership of these companies?  
 
20. Can Chinese Taipei provide information in which sectors these companies operate?  
 
21. Can Chinese Taipei please explain the reason for these ownership limits and indicate whether 
there are plans for the restrictions  to be relaxed in the future?  
 
ANSWER:
 
 
We opened its door to foreign portfolio investment in 1983. A gradual policy was taken to allow firstly 
the indirect investment of funds raised overseas by domestic investment trust companies, followed by 
direct investment of qualified foreign institutional in vestors (1991) and then finally all foreign natural 
persons (1996).  
On September 30, 2003, the relevant  regulations governing investment in  securities by Chinese Taipei 
citizens residing overseas and non-Chinese Taipei c itizens was amended, in which the QFII system 
was abolished.  Since then, all foreign investors have been able in vest in the securities market after 
simply registering with the Taiwan Stock Exchange Co. (TSEC).  We lifted limits on total/individual 
foreign shareholding in public companies on 30 December 2000.  Under the newly amended 
Regulations Governing Investment in Securities by  Overseas Chinese and Foreign Investors, foreign 
investors are divided into two categories: forei gn institutional investors (FINIs) and foreign 
individual investors (FIDIs). While FIDIs are subject to a US$5 million investment quota, FINIs are 
free of an upper limit on investment.  Applicable acts and regulations may in a few instances limit the 
percentage of equity holdings by foreign nationals  in companies in certain industries (such as posts, 
telecommunications, and shipping) to meet policy n eeds related to Chinese Ta ipei's interests in the 
economic, social, or cultural spheres. Most de veloped countries have similar policies, and the 
practice in the Separate Customs Territory of Taiw an, Penghu, Kinmen and Matsu is in line with 
developed-market standards. Now, there are 20 compani es listed on the stock exchange are subject to 
foreign ownership limits. 
  WT/TPR/M/165/Add.1 
 Page 137 
 
 
[COLOMBIA] 
 
Literal ii)  Servicios financieros 
a) Banca  
A) Párrafo 58. En la actualidad, el sector púb lico posee más del 50 por ciento de los activos 
bancarios totales.  Cuatro bancos son de propiedad exclusiva del sect or público;  está previsto que 
todos ellos se privaticen (o sea, que la participac ión del sector público se reduzca a menos del 50 por 
ciento).  En abril de 2005 se privatizó un banc o cooperativo;  el sector público posee actualmente 
alrededor del 48 por ciento de las acciones del banco . 
 ¿En qué fecha específica se tiene prevista la priv atización de los bancos que actualmente son de 
propiedad estatal?  
¿El sector público tiene interés en seguir participando en la propiedad de esos cuatro bancos que van a 
privatizarse?  
ANSWER:
 
 
The Taiwan Cooperative Bank has been privatized since 2005.  Currently, ther e are three banks fully 
owned by the government.  The privatization date of Bank of Taiwan has postponed until June 2008 
since the Central Trust of China will be merged in to Bank of Taiwan by J une 2007.  Land Bank of 
Taiwan will be privatized in December 2006.  Th e plan on relieving those shares will depend on the 
government’s policy and capital market.  
 
B) Párrafo 60. El establecimiento de sucursales de bancos no pertenecientes al Taipei Chino está 
sujeto al reglamento aplicable a las sucursales ba ncarias y oficinas de representación que no sean del 
Taipei Chino.  Los criterios para aprobar las solicit udes de establecimiento son los siguientes:  que los 
solicitantes formasen parte, en lo relativo a su capita l o a sus activos, de los 500 primeros bancos del 
mundo en el año anterior a la presentación de la solicitud;  que los solicitantes hubiesen efectuado 
transacciones por valor de más de 1.000 millones de  dólares EE.UU. con bancos del Taipei Chino en 
los tres años civiles anteriores a la solicitud, y que los solicitantes destinaran un mínimo de 
150 millones de dólares NT de capital de operaciones a la primera sucursal, y de 120 millones de dólares NT a cada nueva sucursal.  
¿Qué actividades pueden desarrollar las oficinas de representación? 
 
ANSWER:
 
 
According to article 121 of the Banking Act, businesses which may be conducted by a foreign bank 
shall be as prescribed by the competent authority, af ter consultation with the central bank, within the 
business scope set forth in Article 71 and Artic le 101, Paragraph 1 of  the Banking Act.  
 
As indicated above, a foreign bank in general ma y conduct businesses which may be conducted by a 
commercial bank or by an investment trust company  after obtaining approval from the competent 
authority.  
¿Las sucursales de bancos están autorizadas para ope rar con capital incorporado en el país o el capital 
puede estar apalancado con el de la casa matriz?  WT/TPR/M/165/Add.1 
Page 138  
 
ANSWER:
 
 According to article 120 of the Banking Act, a foreign bank shall appropriate funds exclusively 
earmarked for its operation of business within th e Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu.   
Article 3 of the Regulations Governing Forei gn Bank Branches and Representative Offices also 
provides that a foreign bank which has been appro ved to establish branch offices in the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu shall allocate a minimum operating capital.  Such operating capital shall be booked on a consolidated basis in the account of the first 
branch office established upon the recognition of the fo reign bank or any other branch office of such 
foreign bank as may be designated by the competent authority. Therefore, a foreign bank branch may conduct busin ess under the operating capital of its branch 
offices. 
 
b) Seguros 
 
Párrafo 63. A finales de 2005 había 55 compañías de  seguros en funcionamiento;  26 de ellas se 
dedicaban a seguros distintos del seguro de vida, 9 de las cuales eran filiales de compañías no 
originarias del Taipei Chino, y 29 a los seguros de vida, de las cuales 8 tampoco eran del Taipei 
Chino.  El número de estos aseguradores present es en el Taipei Chino, que en 2000 era de 
27 (11 empresas de seguros distin tos del seguro de vida y 16 de se guros de vida) ha disminuido.  
El capital desembolsado mínimo es de 2.000 millon es de dólares NT (alrededor de 57 millones de 
dólares EE.UU.), y de 50 millones de dólares NT (1,4 millones de dólares EE.UU.) para una sucursal 
de una compañía de seguros constituida en ultramar. 
 
¿Cuáles son los factores que explican la dismi nución del número de aseguradores presentes en el 
Taipei Chino?  
ANSWER:
 
 
The number of foreign life insurance seems to be decl ining, mainly because four foreign life insurance 
companies have changed their presence from branch o ffices to subsidiaries during the period between 
2000 and 2005.  Meanwhile , two non-life insurance companies were acquired by foreign insurance 
groups.  
¿Las sucursales de compañías de seguros están auto rizadas para operar con capital incorporado en el 
país o el capital puede estar apalancado con el de la casa matriz? 
 
ANSWER:
 
According to Article 8 of the “Regulations on Granting Special Approval and Administration of 
Foreign Insurance Companies”, a foreign insurance enterprise shall set aside a minimum working 
capital for each of its branch companies pursuant to its business plan, amounting to not less than 
NT$50,000,000 (approximately US$1.5 million).  The a ccount of paid-in capital is treated separately 
from that of its overseas parent company.  
[COSTA RICA] 
 Seguros 
 
23. ¿Corresponde a la Comisión de Supervisión Fina nciera la supervisión del mercado de seguros 
del Taipei Chino?   WT/TPR/M/165/Add.1 
 Page 139 
 
 
ANSWER:  
 The Financial Supervisory Commission (FSC) was es tablished on 1 July 2004 as a single financial 
regulator that consolidates the functions of m onitoring and rule-setting for the banking, securities, 
futures, and insurance industries, and also ca rries out cross-sector financial examinations. The 
primary objectives of the Commission are to consol idate the supervision of banking, securities and 
insurance sectors, and to act as a single regulator fo r all of these industries. Hence, the FSC is the 
supervisory authority of our insurance industries. 
 
24. ¿Cuál es la estructura de dicha Comisión? ¿La supervisión del mercado de seguros es 
especializada o se comparte con otros mercados?   ANSWER:
 
 
There are 4 bureaus, 4 departments, and 4 offices under the FSC:  
4 Bureaus: Monetary Affairs, Securities and Fu tures, Insurance, and Examination Bureau.  
4 Departments: Planning, International Affairs,  Legal Affairs, and Information Management 
Department.  4 Offices: Secretariat, Personnel, Acco unting, and Anti-Corruption Office;  
 
According to the Organic Act Governing the Estab lishment of the Financial Supervisory Commission, 
the FSC shall establish Insurance Bureau, which shall be responsible for monitoring and regulating 
insurance markets and insurance enterprises, and for formulating, planning, and implementing 
policies, laws, and regulations connected therewith. 
 
25. ¿A qué se debe la disminución en el número de aseguradores presentes en el Taipei Chino?    
 
ANSWER:
 
 
The number of foreign life insurance institutions seem s to be declining, mainly because four foreign 
life insurance companies changed their presence from branch offices to subsidiaries during the period 
between 2000 and 2005.  Meanwh ile, two non-life insurance companies were acquired by foreign 
insurance groups.  
26. ¿Existen entidades aseguradoras de capital púb lico en el Taipei Chino? ¿Qué tipo de 
regulación se les aplica?  
 
ANSWER:
 
Yes, there are two state-owned insurers. One is th e Life Insurance Department of Central Trust of 
China, and the other is the Simple Life Insur ance Department of Chunghwa Post Co. Ltd.  These two 
companies are regulated by the Insurance Act, same as private-owned insurers.  In addition, the core 
business of Simple Life Insurance Department of Ch unghwa Post Co. Ltd is industrial life insurance. 
The company is regulated by the Si mple Life Insurance Law as well. 
 
27. SERVICES-TELECOMMUNICATIONS AND POSTAL SERVICES 
 
[SINGAPORE] 
 
Services 
 
2.(ii) Para 73 discusses recent reforms in telecomm unications. In this connection, it also refers to 
the “easing of licensing conditions and the start of issuing licenses for fixed network services”. 
 WT/TPR/M/165/Add.1 
Page 140  
 
Could Chinese Taipei provide information on how the licensing conditions ha ve been eased? What 
criteria have to be met in order to obtain the lic enses? How many licenses has Chinese Taipei granted, 
to date, for fixed network services? 
 
ANSWER:
 
 
Three new fixed-line network licences were issued in 2000. Applications for integrated network 
services licences can be accepted in March and Sept ember of each year on a regular basis since 
September 2004. The minimum paid-in capital require ment for integrated fixed-line network services 
was reduced from NT$ 40 billion to NT$ 16 billi on, and the system capacity requirements were 
lowered from one million subscriber lines/ ports to 400 thousand. Respective local, long-distance and 
international network business licences have been available si nce September 2005. The capital 
requirements for operating long-distance and int ernational network businesses are both set at 
NT$ 2 billion. A local network operation weight based on the ratio of local population to the 
population of the separate customs territory is used  to calculate the capital requirement for local 
network business licences, (i.e. NT$ 12 billion multip lied by the local network operation weight). For 
example, the capital requirement for a local netwo rk license in Taipei City is NT$ 1.2 billion.  
 
The current operating conditions for fixed–line netw ork services are set to ensure that licensees can 
provide high-quality services based on the required economics of scale and the level of network 
construction. The conditions are based on objective and transparent criteria to qualify operators’ 
competence and ability to provide services. To date, a total of 71 licences have been granted for fixed-
line network services, including 4 licences for integrat ed network services, 63 licences for domestic 
leased circuit services and 4 licences for interna tional submarine cable services, respectively. 
 
[JAPAN] 
 
Report by the Separate Customs Territory  of Taiwan, Penghu, Kinmen and Matsu 
(WT/TPR/G/165)  (2) Ongoing reforms 
(iii) The Telecommunications Sector 
(Page 9, paragraph 39)  (Ref. page 80, paragraph 72 of the Report by the Secretariat (WT/TPR/S/165)) 
 
Japan recognizes that Chunghwa Telecom is subject to a different limitation of foreign capital 
participation from other Type I tele com enterprises.  We also recogni ze that the limitation of foreign 
capital participation was relaxed to 40% (the sum of direct and indirect shareholding) in June 2005. 
8. Please indicate which law and regulation prov ided such a relaxation of the limitation of 
foreign capital participation.  If there is any ot her recent legislation concerning the limitation of 
foreign capital in this sector, please indicate it in detail. 
 
ANSWER:
  
 
Article 12.5 of Telecommunications Act stipulated that the percentage of shareholding by foreigners 
in Chunghwa Telecom Co., Ltd. be separately prescribed by the Ministry of Transportation and 
Communications (MOTC)(http://www.dgt.gov.t w/English/Regulations/Telcommunications  
ACT.shtml ). The MOTC relaxed the sum percentage of direct and indirect shareholding by foreigners 
for the CHT Company to 40% on June 14 2005. Th ere is no other recent legislation concerning the 
limitation of foreign capital. 
  WT/TPR/M/165/Add.1 
 Page 141 
 
 
(Page 9, paragraph 40)  
 
The Revised Offer on Services describes a rese rvation in basic telecommunications services 
requesting that the chairman of the board shall be  a Chinese Taipei citizen.  On the other hand, the 
Report (WT/TPR/G/165) states that new regulations allowed for more than 50% of members of the 
board to be foreign nationals. 
 
9. Please provide specific and comprehensive information on the current nationality and 
residency requirements for the members of the board of telecom enterprises. 
 
ANSWER:  
 
In July 2002, Article 12.3 of Telecommunications  Act was amended to voluntarily eliminate the 
limitation that more than 50% of Members of the Board to be Chinese Taipei c itizens, except that the 
Chairman of the Board of a Type I telecommunicati ons enterprise shall be a Chinese Taipei citizen 
(http://www.dgt.gov.tw/English/Regul ations/TelcommunicationsACT.shtml ). Pursuant to Chapter V of 
Company Limited by Shares of Com pany Act amended in November 2001 
(http://211.74.141.235/elaw/query/indexe.htm ), there are no residency requirements for the Members 
of the Board of a Type I telecommunications enterprise. 
 
Report by the Secretariat (WT/TPR/S/165) IV. Trade Policies by Sector (5) Services 
(iii) Telecommunications and postal services  
(Page 80, paragraph 72) 
 
14. Concerning the scope of the inter-connecting obligation in Chinese Taipei, please indicate 
whether the facilities owned by all Type I telecom enterprises are subject to the obligation, or 
facilities owned by a dominant Type I telecom enterprise is subject to the obligation. 
 
ANSWER:
 
 
Interconnection obligations are prescribed in Artic le 11 of Communications Basic Act. Articles 16.1 
to 16.9 of Telecommunications Act are also subject  to the facilities by all Type I telecommunications 
enterprises. Interconnection obligations required by  Article 16.10 and paragr aph 1 & 2 of Article 26-
1 of Telecommunications Act are subject to a domin ant Type I telecommunications enterprise. Details 
of “Telecommunications Act” and “Regulatio ns Governing Network Interconnection among 
Telecommunications Enterprises” ca n be found at the web-site 
(http://www.dgt.gov.tw/English/Re gulations/Regulations.shtml) . 
 
(Page 81, paragraph 74)  
The Report (WT/TPR/S/165) states that under the regulation, a dominant Type I telecommunications 
enterprise must set a wholesale price for teleco m services provided for other telecom enterprises. 
 
15. Please indicate specifically all the other asy mmetric regulations only targeting a dominant 
Type I telecommunications enterprise, if any. 
 
ANSWER:  
 
According to Article 10 of “Administrative Regulations Governing Tariffs of Type I 
Telecommunications Enterprises”, a dominant Type I telecommunications enterprise means that the 
enterprise: (1) has the control over essential telecommunications  facilities; (2) has dominant power WT/TPR/M/165/Add.1 
Page 142  
 
over market prices; or (3) has a subscriber numb er or turnover which accounts for 25% or more of 
the specific business market in which the operator is engaged. 
 
The asymmetric regulations targeting the dominan t Type I telecommunications enterprise are as 
follows: (1) Competitive safeguards: Article 26-1 of “Telecommunications Act” and Article 9, 9.2, 10 
& 18 of “Administrative Regulations Governing Tariffs  of Type I Telecommunications Enterprises” 
(2) Interconnection obligations: Articles 16. 10, paragraph 1 & 2 of Article 26-1 of 
Telecommunications Act, and Articles 7,11,14, 15,16 & 17 of “Regulations Governing Network 
Interconnection among Telecommunications Enterprises”. (3) Licensing: Articles 45 & 74 of “Regulations Governing Fixed Network Telecomm unications Businesses”. Details of relevant 
telecommunications acts and regulations  can be found at the web-site 
(http://www.dgt.gov.tw/English/Re gulations/Regulations.shtml)
. 
 
(Page 81, paragraph 74) 
 The Separate Customs of Taiwan, Penghu, Kinmen and Matsu is making commitments for all articles 
of the Reference Paper including the rules of Competitive Safeguards. 
 16. Please indicate the specific laws and re gulations securing the following points in the 
Reference paper: 
  1.2(a) prevention of engaging in anti-competitive cross-subsidization; 
  1.2(b) prevention of using information ob tained from competitors with anti-competitive 
results; and 
  1.2(c) making available to other services suppliers on a timely basis technical information 
about essential facilities and commercially relevant information that are necessary for them to 
provide services. 
 ANSWER:
 
 1. Paragraph 1.2(a): Article 19 & 26 of “Telecommunications Act” 
(http://www.dgt.gov.tw/English/Regul ations/TelcommunicationsACT.shtml
), “Accounting Standards 
and Regulation for Type I Telecommunications Enterprises” (http://www.dgt.gov.tw/English/Regulat ions/type1-account-standard.shtml
) and “Administrative 
Regulations Governing Tariffs of Type I Telecommunications Enterprises” 
(http://www.dgt.gov.tw/English/ Regulations/Tariffs-Type1.shtml ). 
 2. Paragraph 1.2(b): Article 6 of “Regulations Governing Network Interconnection among 
Telecommunications Enterprises” (http:// www.dgt.gov.tw/English/Regulations/Network-
Interconnection.shtml ), and Article 10 of “Fair Trade Act” 
(http://www.ftc.gov.tw/EnglishWeb/English.html ). 
 
3. Paragraph 1.2(c): Article 26-1 & 31 of “Telecommunications Act” 
(http://www.dgt.gov.tw/English/Regul ations/TelcommunicationsACT.shtml ). 
 
(Page 81, paragraph 74)  
17. Please indicate specifically all the rules for firewall, other than the prohibition of anti-
competitive cross-subsidization, such as the sepa ration of accounting and the limitation of personnel 
exchange between the section for the uncompetiti ve local call market and the section for the 
competitive market, such as internet providing services and DSL services in Chunghwa Telecom, in 
order to secure fair competition. 
  WT/TPR/M/165/Add.1 
 Page 143 
 
 
ANSWER:  
 Article 19 of Telecommunications Act stipulates that  the Type I telecommunications enterprise shall, 
in accordance with their operating items, establish separate accounting systems to calculate profits 
and losses and may not employ cross-subsidy to hinder fair competition (http://www.dgt.gov.tw/English/Regul ations/TelcommunicationsACT.shtml
). 
 
“Accounting Standards and Regulation for Type I Te lecommunications Enterprises” is to establish 
for Type I Telecommunication enterprises the ac counting separation system, accounting method, 
procedures, and principles, guidelines for acc ounting supervision and administration and other 
compulsory accounting criteria (http://www.dgt .gov.tw/English/Regul ations/type1-account-
standard.shtml ) “Administrative Regulations Governing Tariffs of Type I Telecommunications 
Enterprises” is to establish administrative rules go verning the tariffs of Type I telecommunications 
enterprise including wholesale price of a dominant Type I telecommunications enterprise, 
administration and examination of tariffs, initial off er of each tariff, the entities to which the price 
adjustment cap shall be applied, the services to wh ich the tariffs shall be applied, tariff items, the 
adjustment  coefficient and other compul sory rules (http://www.dgt.gov.tw/English/  
Regulations/Tariffs-Type1.shtml ). 
 
(Page 82, paragraph 77) 
 
The Report (WT/TPR/S/165) states “According to th e Cable Radio and Television Act, total direct 
ownership may not exceed 20% of the total shareholdi ng of a relevant company, and the sum of direct 
and indirect ownership may not exceed 60%; two thir ds of directors and two thirds of supervisors 
must be Chinese Taipei persons; total shareholdi ng of non-Chinese Taipei persons in the satellite 
broadcasting business may not exceed 50% of all shares.”   
 
18. Please indicate which reservation in the Revised  Offer on Services reflects such regulations. 
 ANSWER:
 
 Cable radio/television and satellite broadcasting servi ces are not included in the list of our Revised 
Offer for WTO Doha Round Negotiation. 
 
[EC] 
 
Telecommunications 
 The Secretariat Report ( paragraph 76 ) refers to the establishment of a new telecoms regulator on 
22 February 2006. 
 
- Could Chinsese Taipei explain if this regulator is fully operational?  - Could Chinese Taipei also provide further in formation on the functioning of this regulator? 
- Could Chinese Taipei confirm that the ne w regulator is an independent regulator? 
 ANSWER
:  
 The NCC has been in operation since 22 February,  2006.  It is responsible for regulating the 
telecommunications, media and information sectors.  The NCC’s key functions include licensing; 
enforcement; spectrum assignment and management; t echnical standards; type  approval; regulations 
of information and communications security; consum er protection; and international cooperation. 
The NCC is definitely an independent  regulator as Article 5 of the WTO Reference Paper required. 
 WT/TPR/M/165/Add.1 
Page 144  
 
[AUSTRALIA] 
 
(iii) Telecommunications and postal services 
 We note that the Chinese Taipei has undertak en the obligations contained in the WTO 
Telecommunications Reference Paper. 
 
Please describe the measures that Chinese Taipei has implemented to ensure compliance with 
paragraphs 4 (licensing), 2.2(b) inter-connection an d 2.5 (settlement of interconnection disputes) of 
the Reference Paper.   ANSWER:
 
 1. Paragraphs 4 (licensing): Article 12 of Tel ecommunications Act stipulates that the operating 
items and scope, the timetable for deregulation, and th e number of operators to be allowed for Type I 
telecommunications enterprises shall be announced by the government. With respect to granting 
franchise to Type I telecommunications enterpri ses' service provisions, the NCC may adopt a system 
of evaluation and examination, open tender or any ot her appropriate method, in consideration of the 
objectives of liberalization policy, conditions of the telecommunications market, consumers' rights, 
and other needs of public interests. (http://www.dgt.gov.tw/English/
 
Regulations/TelcommunicationsACT.shtml ). Relevant telecommunications regulations related with 
transparency and public availability for li censing procedures and criteria for specific 
telecommunications services are as follows: “Regulations Governing on Fixed Network Telecommunications Businesses”; “Mobile Communi cations Services”; “Satellite Communications 
Services”; “the Third Generation (3G) Mob ile Telecommunications Services” and “Type II 
Telecommunications Services”. Details can be found at the web-site 
(http://www.dgt.gov.tw/English/ Regulations/Regulations.shtml
). 
 2. Relevant telecommunications regulations relat ed to Paragraph 2.2(b) inter-connection are as 
follows: Article 11 of Communications Basic Act stipulates that the government takes necessary 
measures to promote interconnection within the communications infrastructure. Network 
interconnection shall conform to the princi ples of transparency, reasonableness and non-
discrimination. Article 26-1 of Telecommunications  Act (http://www.dgt.gov.t w/English/Regulations/
 
TelcommunicationsACT.shtml ) and Articles 7, 11, 14, 15 & 17 of “Regulations Governing Network 
Interconnection among Telecommunications En terprises” (http://www.dgt.gov.tw/English/  
Regulations/Network-Interconnection.shtml) . 
 
3. Relevant telecommunications regulations  related to Paragraph 2.5 (settlement of 
interconnection disputes) are as follows: Articl es 26 to 32 of “Regulations Governing Network 
Interconnection among Telecommunications En terprises” (http://www.dgt.gov.tw/English/  
Regulations/Network-Interconnection.shtml) . 
[US] 
 
Trade Policies by Sector 
Telecommunications and Postal Services – Telecommunications  
13. A November 2005 law established the NCC as  the new telecommunications regulator in 
Chinese Taipei.  Reportedly, the government asked th e Council of Grand Justices in February 2006 to 
review whether the NCC organization is inconsis tent with the supreme law of Chinese Taipei.  
 
A) Please update us on the status of this legal proceeding. B) Have all the commissioners been appointed  to the NCC, and is it currently functioning 
according to the 2005 law?  WT/TPR/M/165/Add.1 
 Page 145 
 
 
ANSWER : 
 A) The legal proceeding is still under judicial review.  
B) 12 of 13 nomination were confirmed on 12  January, 2006. Due to some resignations 
afterwards, only nine commissioners were i naugurated. The NCC currently functions in 
accordance with the NCC Organization Act of 2005. 
 
[HONG KONG, CHINA] 
 
Telecommunication Services (WT/TPR/S/165, P. 82, Para. 77) 
 5. We note that according to Chinese Taipei’s Cable Radio and Television Act, total direct 
ownership may not exceed 20% of the total shareholdi ng of a relevant company, the sum of direct and 
indirect ownership may not exceed 60%, and two th irds of directors and of supervisors must be 
Chinese Taipei persons.  However, it does not seem that  such limitations have been inscribed for its 
services commitments undertaken for “radio and te levision services”.  Would Chinese Taipei advise 
whether the relevant operators would indeed be re garded as type I telecom enterprises (para. 72 of 
WT/TPR/S/165) and hence subject to the owners hip and nationality limitations scheduled for 
telecommunication services in its GATS schedule?  If the answer is negative, we would be interested to know how the foregoing limitations are consider ed to be compatible with its services commitments 
for “radio and television services”. 
 
ANSWER
: 
 
The Cable Radio and Television services operators a re not regarded as Type I telecommunications 
enterprises and are not subject to the owners hip and nationality limitations scheduled for 
telecommunications services in its GATS schedule. We made commitments for “radio and television 
services” sectors corresponding with CPC 96131 (Radio services) and 96132 (Television services) 
for the production services of radio and television programmes whether live or on tape or other 
recording medium for subsequent broadcast. Th ese programmes may be for entertainment, for 
promotion, education, or traini ng or news dissemination, incl uding pictures or plays that are 
normally produced in radio and television studios. Also included are productions such as sports 
coverage, weather forecasting, interviews, etc. Th e above commitments are for Radio and Television 
Programme Supply Businesses. Since the ownership and nationality limitations on cable radio and/or 
television system operators are not included in our services commitments, there should be no 
confusion about our Cable and Television Act.  
[CANADA]  
Part IV. Trade Policies by Sector, (5) Serv ices, (i) Features, page 75, paragraph 49: 
 
The Secretariat Report says that Chinese Taipei main tains market access limitations with respect to 
telecommunications and more specifically, sate llite communications. Canada notes from consulting 
Chinese Taipei’s GATS Schedule of Specific Commitments  for that satellite-based mobile 
communications services for mode 1 are subjected to  commercial arrangements with Chinese Taipei 
licensed operators.   
16. Can Chinese Taipei explain the type of co mmercial arrangements i nvolved and explain the 
regulations for these commercial arrangements?   17. What is the process if a company wants to challenge these arrangements?   
 WT/TPR/M/165/Add.1 
Page 146  
 
ANSWER
: 
 According to Article 5 of Administrative Regulati ons on Satellite Communications Services, a foreign 
Mobile Satellite Service (MSS) operator shall ente r into a cooperation contract with our domestic 
satellite communication operator or interna tional network business of fixed network 
telecommunications services operator. The dom estic satellite communication operator or 
international network businesses of fixed network telecommunications services serves as the agent 
representing the foreign MSS operator to make a service contract with  users and shoulder contract 
obligations together with the above mentioned fo reign MSS operator. The foreign MSS operator can 
provide its MSS not only by signing a commercial cooperation contract with our local licensed 
operator, but also by applying for the license vi a a commercial presence. The intention of this 
requirement for a foreign MSS supplier to sign a commercial cooperation contract with our local 
licensed operator is that a foreign MSS supplier w ithout having an operation franchise can provide its 
MSS to our citizens and also protect consumers’ rights. Details can be found at the web-site 
(http://www.dgt.gov.tw/English/Regulat ions/dgt41/dgt41-Satellite-3609.shtml
).The above mentioned 
cooperation contract, a private commercial arra ngement, is negotiated between a foreign MSS 
company and our licensed operators. Our relevant  government authorities will not involve any 
private commercial arrangement nego tiation between telecom operators. 
 
Part IV. Trade Policies by Sector, (5) Services,  (iii) Telecommunications and postal services, 
page 81, paragraph 74: 
 
According to the Secretariat report, even though Chunghwa Telecom has been privatized, its share in 
total revenues from local network services is about 98% (2005).10  Consequently, competition in the 
local call and domestic leased circuit appears sluggish ; the average tariff rate for local calls (peak 
period) declined slightly from NT$0.34 per minute in 1997 to NT$0.32 per minute in 2005. 
 22. Can Chinese Taipei explain why competition in the local call and domestic leased circuit 
appears sluggish? Do the Chinese Taipei authorities have any plans to further promote competition in 
this sector?  ANSWER:
 
 The ChungHwa Telecom Company, as an incumbent op erator, owns the existi ng local loop network, 
and new entrants face difficulties in deploying the last-mile and rights of way construction. To 
introduce competition for local ca ll services, three new fixed-line network licences were issued in 
2000. Applications for integrated network servi ces licences have been able to be accepted in 
March and September of each year on a regular basis since September 2004. The minimum paid-in 
capital requirement for integrated fixed-line netw ork services was reduced from NT$ 40 billion to 
NT$ 16 billion, and the system capacity requirements were lowered from one million subscriber lines/ 
ports to 400 thousand. Respective local, long- distance and international network business licences 
have been available since September 2005. In the meantime, the Administrative Regulation Governing 
Tariffs of Type I Telecommunications Enterp rises was amended on 11 January 2006.  Under the 
Regulation, a dominant Type I telecommunications en terprise must set a wholesale price for telecom 
services provided for other teleco m enterprises. According to Article 9.2 of the Administrative 
Regulation Governing Tariffs of Type I Telecommunications Enterprises 
(http://www.dgt.gov.tw/English/Re gulations/Tariffs-Type1.shtml)
, a dominant Type I 
telecommunications enterprise shall set a whol esale price for the telecommunications services 
providing for other telecommunicatio ns enterprises. To set the whol esale price, the avoidable costs 
and fees should first be deducted from the retail price, and shall not exceed its promotional price. 
                                                      
10 The Chunghwa Telecom's sh are in terms of traffic hours was 29.4%, 83.2% and 57.0% for mobile, 
long-distance, and overseas services, respectively, in December 2005.  Its ma rket share in terms of subscribers 
was 36.8% for mobile, 97.4% for long-distance and 67.8% for broadband servi ces, in December 2005.  WT/TPR/M/165/Add.1 
 Page 147 
 
 
Also, the dominant Type I Telecommunications Enterprises shall not have unfair competition against 
other telecommunications enterprises. 
 
Part IV. Trade Policies by Sector, (5) Services,  (iii) Telecommunications and postal services, 
page 81, paragraph 76  
The Secretariat Report mentions that a new regul ator for telecommunications was established on 
February 22, 2006.  Chinese Taipei h as committed itself to implementing the Telecommunication 
Reference Paper , including the establishment of an independent regulator.  
 23. Can Chinese Taipei explain what specific measu res have been taken to ensure that this 
regulator remains independent?  
 
ANSWER:
 
 
To ensure the NCC’s independence, Article 7 of th e Organization Act of NCC explicitly specifies that 
the NCC exercises its independent authority as prescribed by the Act and its commissioners shall 
refrain from influence of political parties and exerci se their authority independently. In short, the 
NCC is an independent regulator that has no ties with, separate from and not  accountable to, the 
incumbent or any supplier of telecom services.  
 
[COLOMBIA] 
 
Numeral 5) Servicios Literal i) Características. 
 
A) Párrafo 52. (...) Las entradas de inversiones di rectas están restringidas (o han de ser aprobadas 
previamente) en los sectores del transporte marítimo, transporte aéreo (incluidos los servicios de 
transporte aéreo de carga), servicios portuarios, empresas de tipo I en el sector de las telecomunicaciones, financiación y financiación aux iliar, seguros, servicios jurídicos y contables, 
servicios técnicos para la arquitectura y la i ngeniería, servicios educacionales y radiodifusión y 
televisión.  
¿Qué significan empresas de tipo I? 
 
ANSWER:
 
 
According to Article 11 of Telecommunications Ac t, telecommunications enterprises are classified 
into Type I telecommunications enterprises and Ty pe II telecommunications enterprises. A Type I 
telecommunications enterprise means an enterprise that installs telecommunications line facilities 
and equipment in order to provide teleco mmunications services. The aforementioned 
telecommunications line facilities and equipment ref er to network transmission facilities connecting 
the sending and receiving terminals, the switching faciliti es installed to be integrated with the network 
transmission facilities, and the auxiliary facilities of both. A Type II telecommunications enterprise 
means a telecommunications enterprise other than Type I telecommunications enterprises. 
 
Literal iii) Telecomunicaciones 
 
Párrafo 71.  En 2004 los ingresos fiscales deri vados de los servicios de telecomunicaciones 
ascendieron a 369.000 millones de dólares NT (3,6 por  ciento del PIB).  El principal instrumento 
jurídico que regula las comunicaciones en el Taip ei Chino es la Ley de Telecomunicaciones.  El 
Ministerio de Transporte y Comunicaciones determ ina las políticas aplicables en este sector, y su 
Dirección General de Telecom unicaciones es responsable de la reglamentación del sector. WT/TPR/M/165/Add.1 
Page 148  
 
¿Cuál es el régimen aplicable a los servicios de valor añadido?   
ANSWER:
 
 
The value-added telecommunications services belong to Type II telecommunications services. Please 
refer to the Administrative Regulations on  Type II Telecommunications Business at 
(http://www.dgt.gov.tw/English/ Regulations/Regulations.shtml ) 
 
¿Existen diferencias regulatorias entre aquellos que prestan estos servicios sobre instalaciones propias y aquellos que no poseen instalaciones?   ANSWER:
 
 Yes, the regulations for a Type II Telecommunications Business are lighter than a Type I 
Telecommunications Business. For example, Type  I operations require franchising, licensing and 
foreign ownership restrictions while a Type II operation only require a licence and no foreign 
ownership restrictions.  
¿Existe alguna restricción en cuanto a Acceso a Merc ados o Trato Nacional para la prestación de estos 
servicios por parte de operadores extranjeros?  ANSWER:
 
 Please refer to our Revised Offer (TN/S/O/TPKM/Rev.1) for WTO Doha Round Negotiation. 
 
¿Existe alguna regulación especial para los prestador es de servicios de telecomunicaciones sobre la 
tecnología VoIP?   ANSWER:  Relevant regulations include “Administrative Regul ations on Type II Telecommunications Business”, 
“Regulations Governing Network Interconnecti on among Telecommunications Enterprises”, and 
“Regulations Governing Telecommunications Numb ers”. Their URLs are listed as follows:  
 
http://www.dgt.gov.tw/English/Regulat ions/dgt42/dgt42- Type2-3609.shtml 
http://www.dgt.gov.tw/English/Regulations/Network-Interconnection.shtml 
http://www.dgt.gov.tw/English/Regulat ions/dgt40/dgt40-tele-num.shtml 
 To regulate the Internet Telephony Service Providers,  the regulations mentioned above were amended 
and put into effect in November 2005. The amendments include:  
 
1. Number allocation: prefix-number 070(si milar to non-geographic), number length 
11-digitals, number capacity 100 million. 
2. Licence fees: 1% of annual revenue. 3. Network interconnections: the E.164 Vo IP operators have the right to request 
interconnection with Type I telecommunication enterprise. The revenue and pricing 
of communication between E.164 VoIP operator and Type I Telecommunication 
Enterprises belong to originating network.  
4. Universal service fund: the VoIP operato rs are imposed the obligation to contribute 
USF. 
5. Service quality: the E.164 VoIP operator shall disclose the difference of service 
quality between VoIP and PSTN. 
6. Emergency telephone service: the E.164 VoIP  operator shall provide free Emergency 
telephone service (e.g. 119 or 110) for subscribers.  WT/TPR/M/165/Add.1 
 Page 149 
 
 
7. Number portability: the VoIP operators don’t need to provide NP  service in current 
stage. However, the DGT(NCC) reserves the rights to ask th e E.164 VoIP operator to 
provide the service in the future. 
8. Communications supervision: the E.164 VoIP operator shall provide lawful 
interception.  
 ¿Cómo definen los servicios VoIP? Son estos serv icios considerados como servicios de valor 
añadido?  
ANSWER:
 
 
The VoIP service is regard as Internet Telephony Service (ITS). According to the Administrative 
Regulations on Type II Telecommunications Business,  the “ITS” is defined as the voice service 
received and transmitted through Internet provided by  the Type II operator and one of the value-add 
services in Type II services. 
 
[COSTA RICA] 
 
B. Políticas Comerciales, por Sectores Telecomunicaciones 
 
27. ¿En qué consiste la unificación de la administ ración de la reglamentación de los servicios de 
telecomunicaciones, radiodifusión e información en el mercado?  ¿Existe legislación en vigencia, o en elaboración,  en esta materia que pueda ser consultada?  
 
ANSWER:
 
 
According to Article 2 of Communications Basic Act and Article 2 of Organization Act of NCC, the 
NCC implements the regulations concerning communications. The communications means 
transmission of sounds, pictures, text or data by wi re, radio, satellite or other electromagnetic means, 
including the Telecommunications Act, Radio and Television Act, Cable Radio and Television Act and 
Satellite Broadcasting Act. Details of Communi cations Basic Act and NCC Organization Act can be 
found at the web-site (http://www.ncc.tw ). 
 
28. ¿La regulación tarifaria de los servicios de telecomunicaciones en el Taipei Chino es la regla o la excepción? ¿existe alguna consideración del c oncepto de competencia efectiva a efectos de 
definir cuándo procede esa regulación?  
 
ANSWER:
 
 
According to the Administrati ve Regulation Governing Tariffs of Type I Telecommunications 
Enterprises (http://www.dgt.gov.tw/Eng lish/Regulations/Tariffs-Type1.shtml ), services provided by all 
Type I enterprises are subject to price-cap regul ations, which are based on consumer price index 
formula. To ensure effective competition, all bas ic telecom services with significant impact on the 
general public provided by the dominant opera tor are subject to approval by the NCC. 
 
29. ¿Qué metodología de regulación tarifaria se apli ca en el Taipei Chino para los servicios de 
telecomunicaciones?   ANSWER:
 
 According to the Administrati ve Regulation Governing Tariffs of Type I Telecommunications 
Enterprises (http://www.dgt.gov.tw/Eng lish/Regulations/Tariffs-Type1.shtml
), services provided by all 
Type I enterprises are subject to price-cap regul ations, which are based on consumer price index WT/TPR/M/165/Add.1 
Page 150  
 
formula. Also, according to Article 27 of Telecommunications Act 
(http://www.dgt.gov.tw/English/Regul ations/TelcommunicationsACT.shtml
), all Type II enterprises 
just need to make the tariff notific ation to the NCC prior to implemen tation in order to protect the 
rights of consumers and better understand the market situation. We do not require the pre-approval 
measure for tariffs of Type II telecom enterprises. 
 
[KOREA] 
 
Export Prohibitions ,restrictions and licencing (WT/TPR/S/165, p.81, para.76) 
 
9. The Secretariat Report states that the new regulator was established in telecommunication sector in February 2006. Would the government provide the detailed information 
on the new regulator, including the difference in functions of the new and the existing regulators?  
 
ANSWER:
 
 
In response to the convergence of telecommuni cations, media, and information technology 
development, the NCC has been in operation since 22 February, 2006 in accordance with its 
Organization Act (http://www.ncc.tw/ncc-orgact.htm ). The NCC’s key functions include licensing, 
enforcement, spectrum assignment and management, t echnical standards, type  approval, regulations 
of information and communications  security, consumer protection and international cooperation etc. 
The NCC commissioners shall refrain from influen ce of political parties and exercise their authority 
independently. It comprises of 13 Commissioners with 3- year terms of office. Also, the NCC is funded 
both by its own fees (i.e. 5%-15% of regulated f ees collected from industries) and by a government 
allocated budget.  
28. SERVICES – TRANSPORT (MARITIME AND AIR)
 
 [SINGAPORE] 
 
Services 
 
2.(iii) Para 88 relating to maritime transport services states that non-Chinese Taipei  companies 
wishing to establish vessel carriers, shipping agencies or freight forwarding branches require 
permission from the MOTC.  
Could Chinese Taipei explain what is entailed by  the process to obtain “permission” from the MOTC? 
What criteria is used by the MOTC to accord “permission” for non-Chinese Taipei companies? 
ANSWER:
 
 
The process and criteria used for granting permission  to foreign vessel carriers, shipping agencies or 
freight forwarding companies that wish to organize local branches are the same as those for domestic 
companies.  For more informa tion, please refer to the Shipping Act, the Regulations for 
Administrating Vessel Carriers and Vessel Chartering  Operators, the Regulations for Administrating 
Shipping Agency, and the Regulations for Administrating Ocean Freight Forwarders on the following 
website：http://law.moj.gov.tw/eng/   
  WT/TPR/M/165/Add.1 
 Page 151 
 
 
[JAPAN]  
 
IV. Trade Policies By Sector 
(5) Services 
(v) Transport 
(b) Maritime transport 
(Page 83, paragraph 87)  
 
The Report (WT/TPR/S/165) states that cabotage is not permitted to vessels registered overseas, 
unless a franchise is granted. 
 19. Please indicate specifically in which case vessels registered overseas are granted a franchise 
and permitted to operate cabotage, including de tailed information for the requirements and 
procedures, and concrete examples.  ANSWER:
 
 For the need of the shipping with specific characteristics, the applicant  shall firstly consult with the 
shipowners’ association to ensure no proper domes tic vessels to offer the service, and then apply to 
local shipping administration authority for exa mining and submitting to MOTC for issuing the 
franchise to operate cabotage. For example, due to th e need of shipping the special size generating 
set for power plant, the heavy-lift vessel registered overseas may get the permit to operate cabotage if 
there are no proper Chinese Taipei vessels to offer the service. 
 
[NEW ZEALAND] 
 
1. Prospects (WT/TPR/S/165 page 13, para 32) 
 
We note that the Chinese Taipei government consider s that the growing importance to its economy of 
cross-strait movement of goods would require further liberalisation of cross-strait traffic in order to 
contribute to improving the efficiency of Chinese Taip ei’s economy.  What steps toward liberalisation 
is Chinese Taipei taking in this regard? 
 
ANSWER:
 
 
Cross-strait direct transportation involves a great deal  of governmental authority, in areas such as 
the flying of ship’s flags, port administration, negotiation of navigation rights, aviation safety 
controls, vessel supervision, and so on. All of th ese matters require that both sides negotiate and sign 
agreements on a basis of parity, and put such agreemen ts into effect in their laws and regulations, 
taking into account the rights and interests of both sides. 
 
In the meantime, until we are able to implement direct cross-strait transportation, our government 
has adopted some transitional measures, such as permitting flag-of-convenience ships to sail between 
designated ports on either side of the strait, and  implementing lunar New Year charter flights. 
Furthermore, we have listed cargo and passenger c harter flights as a priority negotiating item. The 
two sides are currently engaged in a dialogue, and we have recently reached a consensus allowing 
the launch the of special charter flights to be im plemented. This will serve as the basis for the 
continued related negotiations in the future.  WT/TPR/M/165/Add.1 
Page 152  
 
[CHINA] 
 
(3) Measures Directly Affecting Exports 
Question 12: (Secretariat Report p.13 para.32 &p.47 para.72)  
 
The Secretariat Report states ：“The authorities consider that the growing importance of cross-strait 
movement of goods in Chinese Taipei's economy woul d require further liberalization of cross-strait 
traffic; such liberalization would contribute to im proving the efficiency of Chinese Taipei's economy 
and its attractiveness to inbound direct investments.” The Secretariat Report also states ：“Cross-strait 
movement of goods can only be undertaken by indi rect shipment through a third port, usually Hong 
Kong, China.” 
 
1. What is the comment of Chinese Taipei on this  view reflected in the Secretariat Report?  
2. What plans does Chinese Taipei have to a ddress the business community’s concern for direct 
shipment to facilitate exports? What measures Ch inese Taipei will adopt to reduce the high 
import and export cost caused by the indirect shipment?  
 
ANSWER:
 
Please refer to the answer to New Zealand’s Question. 
 
[EC] 
 
Maritime Transport 
 
The Secretariat Report ( paragraph 89 ) mentions that four harbour free trade zones are in operation. 
 
- Could Chinese Taipei explain the licensing a pplication process that applies to logistics 
services suppliers that wish to supply their services in a free trade zone?  
- Could Chinese Taipei clarify if separate busin ess licenses are required for each logistics 
service? 
 
ANSWER:  
 
The licensing application process that applies to logi stics services suppliers wishing to supply their 
services in a free trade zone is as same as that which applies to those operating outside of the zone. 
Suppliers are required to submit their business license applications to relevant authorities, and 
separate business licenses are required  for certain logistics service. 
 
[HONG KONG, CHINA]  
 
Maritime Services 
(WT/TPR/S/165, P. 83, Para. 88)  
6. We note that non-Chinese Taipei companies wi shing to establish vessel carriers, shipping 
agencies or freight forwarding branches require pe rmission from the Ministry of Transportation and 
Communications.  We would appreciate it if Chinese Taipei could provide mo re information on the 
said permission, in particular the requirements and procedures for obtaining such permission. 
ANSWER:
  
 
The process and criteria used for granting permission  to foreign vessel carriers, shipping agencies or 
freight forwarding companies that wish to organize local branches are the same as those for domestic 
companies.  For more informa tion, please refer to the Shipping Act, the Regulations for  WT/TPR/M/165/Add.1 
 Page 153 
 
 
Administrating Vessel Carriers and Vessel Chartering  Operators, the Regulations for Administrating 
Shipping Agency, and the Regulations for Administrating Ocean Freight Forwarders on the following website: http://law.moj.gov.tw/eng/
 
 
29. SERVICES - TOURISM  
 
[EC] 
 
Tourism  
 
As stated in the WTO Secretariat's Report ( paragraph  94 ), the only market access restrictions on 
engaging in tourism business in Chinese Taipei conc ern tour guide services; tour guides can only be 
provided by a travel agency or a tour operator, a nd non-Chinese Taipei persons  applying for the tour-
guide examination are required to have obtained re sident certificates and been resident in Chinese 
Taipei for more than six months. 
 
- Does Chinese Taipei have any plans to further lib eralise tourism and to also grant foreign tour 
guides without residency in Chinese Taipei the possibility to participate in the tour-guide 
examination and to work as tour guides in Chinese Taipei?  
 
ANSWER:   
 
Subject to the overall balance of the trade in ser vices negotiations, we have granted foreigners the 
right to take tour guide exams and will be willing to consider further liberalizati on of this sector with 
regard to tour guide services. 
 
In addition, the requirement of obtaining resi dent certificate and the six months residency 
requirement for foreigners applying for the tour -guide examination was eliminated on 
17 February 2004.  
 
[CANADA] 
 
Part IV. Trade Policies by Sector, (5) Serv ices, (v) Tourism, page 84, paragraph 95: 
 The Secretariat Report notes that Chinese Taipei ha s entered into bilatera l agreements on tourism 
cooperation with Abu Dhabi, Para guay, Singapore, and the Central American Council of Tourism.  
 
24. What factors are taken into consideration by Chinese Taipei in deciding whether to enter into 
such tourism cooperation agreements?  
 
ANSWER:
 
 
The signing of bilateral tourism cooperation MOUs  increases tourism exchanges between signatories, 
supports tourism development, facilitates the exchang e of experience in tourism-related matters, and 
encourages joint promotion of regional tourism. On the principle of reciprocal treatment, therefore, 
we take a positive and proactive attitude to the signi ng of bilateral cooperation MOUs with national 
tourism organizations. WT/TPR/M/165/Add.1 
Page 154  
 
30. SERVICES - LEGAL SERVICES
 
[AUSTRALIA] 
 
(vi) Legal Services 
 
Please comment on progress regarding elimination of the 5 year experience requirement in relation to 
foreign lawyers who seek recognition as "Attorneys of Foreign Legal Affairs" (or "AFLA").   
 
ANSWER:  
 
In light of the complexity of a typical internatio nal case, in order to ensu re the quality of the service 
provided pursuant to GATS Article VI domestic regulations, we require AFLAs to have at least 
5 years of practicing his/her home jurisdiction la ws. Consequently, we are not considering the 
elimination or reduction of the requirement.   
Could Chinese Taipei advise when legal services will be added to the list of services that can be 
provided pursuant to paragraph (d) of Chinese Taipei's horizontal commitment on Mode 4?  
 
ANSWER:
  
 
Our commitment made pursuant to paragraph (d) of  the horizontal commitment on Mode 4 does not 
include legal services. In other words, our co mmitment on the movement of a natural persons does 
not include permission for natural persons to practi ce law as a contractual service provider. Practice 
of law is a profession and, therefore, the practiti oner must go through certain procedures, including 
examinations, before obtaining the qualification for prac ticing law as an attorney. At the same time, 
the attorney must be subject to controls and supervi sion of the government. This is intended to ensure 
the quality of their services and safe guard the interest and rights of the public. A foreign attorney 
practices law without setting up an office would constitu te a violation of our Attorney Regulation Act, 
which requires all attorneys shall set up an office.  We do not consider legal service providers to be 
included in paragraph (d) of the horizontal comm itment on Mode 4 that permits the entry into 
Chinese Taipei for the practice of law as soon as a contract is signed. 
 
31. SERVICES – OTHERS  
 
[NEW  ZEALAND] 
 
19 Services   (WT/TPR/S/165  PAGE 75-84)   
Chinese Taipei notes that profound changes to the landscape of the domestic services industry can be 
expected in the years ahead (p7, para 29).  What changes is Chinese Taipei envisaging?  
 
ANSWER:  
 
By 2008, the service sector will create nearly 600  thousand new jobs and increase its share of 
employment to almost 60% of our workforce. 
 
For Chinese Taipei to continue its integration in to the international economy and establish itself as a 
regional services hub, liberalisation of its ser vices sector will be increasingly important: 
 
- What steps does Chinese Taipei intend to ta ke to liberalise more fully its “Professional 
Services” and “Other Business Services” sectors, in particular architectural, engineering, 
urban planning, landscaping, le gal and accounting services?    WT/TPR/M/165/Add.1 
 Page 155 
 
 
ANSWER:  
 1. Architectural services: 
To ensure the quality of service and familiarity with our  domestic building cod es, all architects must 
pass an examination and register as an architect in order to establish an office. These regulations 
apply regardless of the person’s domestic or fo reign origin. Although we are not currently 
contemplating any changes to the requirement, we are working within APEC to push for the 
reciprocal recognition of architects in acco rdance with the APEC Architect Framework. 
 
2. Engineering services In terms of professional engineering services, TPKM has been a member of the APEC Engineer 
Framework since 17 June, 2005. Negotiations with oth er interested Members are expected in future to 
establish mutual recognition under the APEC Engineer Framework.  
3. Legal services  
Upon acceding to the WTO, our market has been more open to providers of legal services than most 
countries. Our commitments in the legal services se ctor already allow foreign legal services providers 
to provide professional services of his/her home jurisdiction or international law through 
establishment of law office, and we also allow partner ship with or hiring of licenced foreign lawyers. 
We have no plan for further opening of our legal services sector.  4. Accounting services Currently, CPA services are not allowed to be provided  in a form of juristic person. We are drafting 
amendment to our Certified Public Acc ountants Law to lift this restriction. 
 - What reasons does Chinese Taipei have for reta ining restrictions on the foreign ownership of 
private education institutions?   
 ANSWER:
 
 The limitations in our relevant law are to try to  strike an appropriate culture balance, while paying 
due respect to Chinese Taipei's policy objective. However, the Ministry of Education is currently 
working to amend the Private School Law. For sec ondary schools, universities and junior colleges, it 
is planned that the restriction that a foreigner may not become the Chairperson of the Board of 
Directors be deleted. In addition, to achieve a ba lance, the number of foreigners in the Board of 
Directors is adjusted to not exceeding 2 out of 5 of the Board.  With regard to adult education services (CPC924)  and other education and training services 
(CPC929), the rules that a foreigner may not beco me the Principal (President) and Chairperson of 
the board of directors still holds. 
 Revision of the said law is still in the legislative process.   
 - What steps is Chinese Taipei intending to take  to open its postal sector to foreign service 
providers?   
 ANSWER:
 
 We have already opened courier and express deliver y services to foreign service providers. However, 
similar to many other WTO Members, we have concern regarding the universal services nature of 
postal services. Therefore, we are not considering the liberalization of the post al sector at present. 
 - What concerns are causing Chinese Taipei to hold back from removing remaining restrictions 
on Environmental Services and Tourism Services? WT/TPR/M/165/Add.1 
Page 156  
 
ANSWER:
 
 1.  Environmental services: 
In general, our market of envir onmental services is very open and libera lized. In line with the UN’s 
Provisional Central Product Classification, we  have committed to opening our environmental 
services in sewage services, refuse disposal, sani tation-related services, and other environmental 
services (cleaning services of exhaust gases, noise abatement services) and the consultation services 
on the natural environment and landscape protection services. 
 
2.  Tourism services:  The requirement of obtaining a residence certificate and being resident in our territory for more than 
six months for foreigners applying for the t our-guide examination was eliminated on 
17 February, 2004.  Subject to the overall balance of trade in services negotiations, we will be willing 
to consider further liberalization of this sector with regard to tour guide services. 
 
[EC] 
 
Professional services – Engineering services 
 
- Could Chinese Taipei explain if it still maintains a requirement that the Chairman of the 
Board or responsible person of an engineeri ng consulting firm must be a licensed Chinese 
Taipei engineer? 
 
ANSWER:
  
 
The introduction to paragraph 1 of Article 5 of the Act Governing the Administration of Professional 
Engineering Consulting Firms (hereinafter referred to  as “the Act”) prescribes that the Chairperson 
of the Board of Directors or statutory represen tative of a professional engineering consulting firm 
shall be a licensed professional engineer, no matter whether the firm is local one or foreign. The 
foregoing is prescribed to ensure the quality of e ngineering technology services and to maintain the 
level of public safety by ensuring the participa tion of licensed professional engineers in companies’ 
operations or their direction. 
 
Subparagraphs 1, 2 and 3 of paragraph 1 of Article 5 of the Act prescribes that the Chairperson of 
the Board of Directors or the statutory representa tive of a firm need not be a licensed professional 
engineer if:  
 (1) A firm hires a minimum of twenty of domestically licensed professional engineers. 
 (2) A firm is listed on either our Stock Exchange or Over-the-Counter. 
 (3) A firm is headquartered in a country that is a member to a treaty of an international 
organization in which we are also a signatory (e.g. WTO Agreement) and the firm has been registered in its mother count ry for more than 5 years and has accumulated 
at least NT$ 2 billion in engineering consulta tion contracts, domestic (in its mother 
country) or overseas, over the past five years.  
The above subparagraph 3 of paragraph 1 of Article 5 of the Act provides a better treatment for 
foreign firms to establish subsidiary or branch office,  a treatment which does not apply to local firms. 
The foregoing requirement of an accumulated contra ct amount for the past five years is prescribed to 
ensure the quality of engineering technology services and to  maintain public safety. It is in conformity 
with the requirement of paragraph 4 of Article 6 of the GATS.  WT/TPR/M/165/Add.1 
 Page 157 
 
 
[CHINA] 
 
Question 23: 
 
The movement of natural persons plays an importa nt role in promoting trade liberalization and 
commercial investment. According to the statistics from Chinese Taipei, in 2005, then number of 
people that traveled to Chinese Taipei from Chin a was 170,000 person/time while the number in the 
other direction was 4.11 million person/time. That shows a serious imbalance of personnel exchange 
across the strait, which has certainly impeded and will continue to impede the normal cross-strait 
economic, trade and investment activities.  
 What is the view of Chinese Taipei on this situati on? What specific measures will Chinese Taipei take 
in the future to promote business pe rsonnel exchange across the strait? 
 
ANSWER:
 
 
Our citizens do not need permission from any domes tic government authority to visit China, in 
contrast to the individual screening that China re quires for its citizens’ visits. Moreover, China still 
has not given the green light for its citizens to vis it as tourists. These are among the factors that affect 
the visit of Chinese citizens.  Therefore, we hope  that China can as soon as possible enter into 
negotiations with us on allowing its citizens to vis it for tourism, so as to promote a more balanced 
movement of people across the strait.  
 
Upon the request of our trading partners, we have am ended our regulations severa l times to facilitate 
the visits of business people from China.  At present,  in most cases, permission can be obtained within 
five to ten days. Also, the Investment Commission of  the MOEA, which we have designated to serve as 
a single window for screening applications, can provide related assistance and speed up the 
processing of such cases.  In the future, we will continue to make more efforts to simplify the 
application procedure and lower the qualification requirement, and etc. 
 
[CANADA] 
 
Report by the Separate Customs Territory  of Taiwan, Penghu, Kinmen and Matsu 
(WT/TPR/G/165) 
Part II. Economic Developments: 2002-2005, page 3, paragraph 11: 
 
Chinese Taipei notes in its report that inward i nvestment in 2005 reached US$ 4.2 billion, with 
growth in both the manufacturing and services sector.  
Canadian companies investing in the ICT sector, as  well as those sub-contracting to Chinese Taipei 
OEMs and ODMs, report that their ability to incr ease their use of Chinese  Taipei as a regional 
business hub is being hampered by the difficulty of travel for their Chinese employees and others who 
are nationals of the PRC.  
 25. Can Chinese Taipei explain if there are any special regulations governing the issuance of 
visas for PRC business visitors as well as any plan s for streamlining these processes, especially in 
light of Chinese Taipei’s commitment to reducing trade facilitation costs?   ANSWER:
 
 Upon the request of our trading partners, we have am ended our regulations severa l times to facilitate 
the visits of business people from China.  At present,  in most cases, permission can be obtained within 
five to ten days. Also, the Investment Commission of  the MOEA, which we have designated to serve as 
a single window for screening applications, can provide related assistance and speed up the WT/TPR/M/165/Add.1 
Page 158  
 
processing of such cases.  In the future, we will continue to make more efforts to simplify the 
application procedure and lower the qualification requirement, and etc.  32. WRITTEN QUESTIONS BY BRAZIL
 
 
WT/TPR/S/165, II, (4), (ii), paragraph 19 
 
1. Does Chinese Taipei intend to notify to th e WTO is free-trade agreement recently concluded 
with Guatemala? Could Chinese Taipei give furthe r information about the agreement and its scope? 
 ANSWER: (3. FTA)
 
 1. We will discuss with Guatemala ab out the matter of notifying the WTO. 
 
2. The FTA is a comprehensive agreement, coveri ng a wide variety of issues. These include 
trade in goods, rules of origin, customs proce dures, safeguards, unfair tr ade practices, SPS, TBT, 
services, investment, temporary entry of busin ess persons, air transportation, maritime 
transportation, IPR, a nd dispute settlement. 
 
2. Concerning the free-trade agreement with Nicaragua, could Chinese Taipei give further 
information about how negotiations are evolving? 
 
ANSWER: (3. FTA)
 
 
We signed the Framework for negotiating a Free Trade Agreement with Nicaragua in August 2004. 
Following this, four rounds of negotiations were  held and the agreement was signed on 16 June 2006. 
The agreement must now be further approved by the le gislatures of the two parties, according to their 
respective domestic procedures, before its implementation.  
WT/TPR/S/165, III, (2), (iii), (d), paragraph 29 
 3. It is mentioned in this paragraph that Chinese Taipei imposes tariff escalation in a number of 
sub-sectors, which in practice “impede the indus trialization of developing countries and LDCs 
seeking to export products with hi gher value-added to Chinese Taipei” 
 ANSWER: (6. Tariffs)
 
 We believe that appropriate tariff escalation on specifi c sub-sectors is necessary for the protection of 
domestic processed goods. Nevertheless, we are awa re that the issue of tariff escalation has been 
discussed in the Doha Round of negotiations, and further improvement on tariff escalation will be 
made in this Round.  
WT/TPR/S/165, IV, (2), (II), PARAGRAPH 13 
 4. Could Chinese Taipei give further informati on about the duty drawback system mentioned in 
this paragraph, as well as some clarification on wh y it would not be incompatible with WTO rules? 
 ANSWER: (6. Tariffs)
 
 According to Article 63 of the Customs Act, cu stoms duty paid on raw materials used in the 
manufacture of articles intended for export is refundable following the exportation of the finished 
products. However, the duty refunded on imported materials shall not exceed that which was 
collected at the time of importation.   WT/TPR/M/165/Add.1 
 Page 159 
 
 
It is our view that the said duty drawback system is  compatible with relevant WTO rules, such as the 
provisions noted in Article XVI of GATT 1994, and in Annexes I through III of the Agreement on 
Subsidies and Countervailing Measures. 
 
Further written questions by Brazil 
 
WT/TPR/S/165, IV, (1), paragraph 2 page 66 
 
According to the report of the Secretariat, "Labour  productivity in agriculture is substantially lower 
than elsewhere in the economy, and the sector receiv es relatively high border protection and domestic 
support measures compared with other sectors ...".  Could Chinese Taipei explain how those practices 
are compatible with WTO rules and discipline? 
 
ANSWER: (22. Agriculture)  
 
We have made extensive commitments during the co urse of our accession to the WTO-- commitments 
that are beyond the level of those made by ot her Members in the Uruguay Round. We have already 
adopted reasonable border and domestic measures in compliance with our accession commitments, 
and we intend to further reform our agricultural policies in the DDA negotiations. 
 
WT/TPR/S/165, IV, (1), PARAGRAPH 2, PAGE 66 
The report states that "The government of the Separa te Customs Territory has implemented a range of 
support and adjustment programmes for agriculture , including price stabilization measures for rice 
and sugar, and income programmes for elderly farmers".  Could the Delegation provide further details 
about them?  ANSWER: (22. Agriculture)
 
 
1. Support for rice: The policy objectives are to ensure the security of the food supply by 
balancing supply and demand for rice, and to stab ilize rice prices for the maintenance of farmers’ 
income. The rice purchases are made available to farmers who produce rice in paddy fields and 
follow the irrigational rotation scheme for planting and not planting. The purchase prices of rice are 
set by the government and are determined by taki ng into account production costs, type of rice and 
crop. The purchase quantities of rice are limited to a maximum of 3,120 kg per hectare for the first 
crop, and 4,600 kg per hectare for the second crop. Farmers are free to decide whether they want to 
sell their products to the government. 
 
2. Support for sugar: The purpose of this progr amme is to develop the sugar industry in 
cooperation with farmers. The Taiwan Sugar Corpor ation entered contracts with farmers for the 
purchase of sugarcane and sugar sharing, under which sugarcane farmers obtain 55% of the sugar 
made from their sugarcane. If the domestic selling price of sugar is higher than the prepaid contract 
price, the sugarcane farmers are paid the domestic se lling price. If the domestic selling price is lower 
than the prepaid contract price, the farmers are paid the prepaid contract price. The contract price 
was set after taking into account the domestic selling price and the marketing costs. It has been frozen 
since 1990.  
3. Income programme for elder farmers: Acco rding to The Elder Farmers’ Welfare Allowance 
Act, each qualified elder farmer can obtain a monthl y welfare allowance of NT$5,000 to improve his 
or her living standard. The beneficiary must be over 65 years of age, and have been covered by health 
insurance for more than six months.  
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