WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/232/Add.1 
25 August 2010 
 (10-4458) 
Trade Policy Review Body 
5 and 7 July 2010 Original: English/Spanish 
 anglais/espagnol  inglés/español 
TRADE POLICY REVIEW 
SEPARATE CUSTOMS TERRITORY OF TAIWAN,  
PENGHU, KINMEN AND MATSU (CHINESE TAIPEI)  
 
Record of the Meeting
 
Addendum  
Chairperson:  H.E. Mr. Bozkurt Aran (Turkey) 
 
 This document contains the advance written questions, and replies provided by Chinese Taipei.1 
__________________________________________________________________________________  
Organe d'examen des politiques commerciales 5 et 7 juillet 2010 
 
EXAMEN DES POLITIQUES COMMERCIALES 
TERRITOIRE DOUANIER DISTINCT DE TAIWAN,  
PENGHU, KINMEN ET MATSU (TAIPEI CHINOIS) 
 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. M. Bozkurt Aran (Turquie) 
 
 Le présent document contient les questions écr ites communiquées à l'avance et les réponses 
fournies par le Taipei chinois.1 
__________________________________________________________________________________ 
 Órgano de Examen de las Políticas Comerciales 
5 y 7 de julio de 2010  
EXAMEN DE LAS POLÍTICAS COMERCIALES 
TERRITORIO ADUANERO DISTINTO DE TAIWÁN,  
PENGHU, KINMEN Y MATSU (TAIPEI CHINO) 
 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. Bozkurt Aran (Turquía) 
  En el presente documento figuran las preguntas presentadas anticipadamente por escrito, junto con 
las respuestas facilitadas por Taipei chino.
1 
                                                      
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y en español solamente.   
    WT/TPR/M/232/Add.1 
 Page 3 
 
 
  REPLIES PROVIDED BY THE SEPARATE CUSTOMS TERRITORY OF TAIWAN,  
PENGHU, KINMEN AND MATSU (CHINESE TAIPEI) 
INDIA  
 
Para 4 of the Summary  of the Secretariat Report me ntions that there has been a sharp drop in global 
demand owing to the global economic crisis a nd has exposed the risks associated with 
Chinese Taipei’s heavy dependence on a few manufactu red exports prompting the authorities to seek 
new engines of economic grow th and diversify economy.  
 
Question No. 1  Apart from improving the internatio nal competitiveness of the services 
industries, what are the other new engines Chinese Taipei is evaluating to propel the growth 
and diversification of its economy.  
Answer:   
We are currently planning to carry out public works and industrial projects that are expected to 
enhance the technical capabilities of local com panies and boost our economy over the next decade. 
 These public works and industrial projects encompa ss the 12 Infrastructure Projects (e.g. the 
island-wide transportation netwo rk, urban renewal, etc.), the Six Emerging Industries (e.g. 
biotechnology, green energy, etc.), the Four Intell igent Industries (e.g. cloud computing, electric 
vehicles, etc.) and the Ten Key Service Industries. For further details, please see: http://investtaiwan.nat.gov.tw /library/main_eng_general.jsp 
 
According to Para 5 of the Summary of the Secret ariat Report, Chinese Taipei has maintained sound 
macro-economic policies.  However,  the expansionary fiscal policy implemented since 2008 could put 
renewed pressure on the fiscal balance. 
 
Question No. 2
 We would like Chinese Taipei to share in formation including projection in this 
regard.   
Answer:  
In order to ensure fiscal stability and successful im plementation of governmental policies, we have 
formulated “The Medium and Long-Term Program for Achieving Sound Finance” in light of the short-term fiscal imbalance. U nder this program, we have estab lished three core business action 
plans including financial management, tax management and property management aimed at 
enhancing management effectiveness, finding alternative sources of revenue and reducing 
uneconomical spending. We believe these efforts will allow us to effectively improve the investment 
environment, promote industrial competition, bo ost employment opportunities, rationalize the tax 
burden, and ameliorate income distribution, etc. 
 
The ratio of Chinese Taipei’s inbound direct invest ment to GDP remains low by regional standards 
(Para 6 of the Summary Report of the Secretariat).  
Question No. 3
 What are the reasons for this low levels  of inbound FDI apart from positive and 
negative list?  
 
Answer:  
Our foreign investment regime is quite free and open.  The FDI reached a peak of US$7.769 billion in 
2007, accounting for 1.96% of GDP. It then fell to US$5.432 billion (1.38% of GDP) in 2008 and 
US$2.803 billion (0.74% of GDP) in 2009 due to the impact of the financial tsunami. With the recovery of the domestic and international economies,  FDI in the first quarter of 2010 rose 16.96% in 
comparison with the same period of the previous year. WT/TPR/M/232/Add.1 
Page 4  
 
  Over the past forty years – from 1970 to 2009 – the average FDI to GDP ratio was approximately 
1.36%, according to the statistics from our Invest ment Commission (Ministry of Economic Affairs).  
This ratio may appear low at first glance in com parison with other economies in the region such as 
Singapore (12%) and Hong Kong, China (29%). However, it is comparable with other neighboring 
countries like Japan and South Korea (generally between 2% ~ 7%), or even India (around 1% for most recent years, and only 0.8% in 2008), whic h have different development patterns and much more 
complex industrial structures.  
According to Para 8 of the Summary Report prepared  by the Secretariat, Chinese Taipei has provided 
duty free treatment to selected imports from Least Developed Countries (LDCs). 
 
Question No. 4
 We would like Chinese Taipei to provide details of country coverage, product 
and trade coverage, rules of origin of its duty free regime to imports from LDCs.  
Answer:  
Country coverage: We follow the criteria published by the UN.  2. Product coverage: 
A total of 149 8-digit tariff lin es are covered. For details, please see: http://doca.mof.gov.tw/ct.asp?x 
Item=99&CtNode=95 3. Trade coverage: In terms of the 2009 import value, the duty-free trade coverage was 96.45%. 
4. Rules of origin: The origin criteria for products impor ted from LDCs is governed by Ar ticle 8 to 11, Chapter 3 of the 
“Regulations Governing the Determination of Coun try of Origin of an Import Good”. For details, 
please see:  http://doca.mof.gov.tw/ ct.asp?xItem=48537&ctNode=99&mp=2. 
 
Para 13 of the Summary of the Secretariat Report stat es that as a result of the virtual standstill of the 
privatization process, direct government involvement  in the economy persists in several areas.  
 
Question No. 5
 We would like Chinese Taipei to share de tails of its privatization process along 
with time lines envisaged.  
Answer:  
Privatization of state-owned enterprises(SOEs) remai ns on top of our policy priorities. The following 
table shows the SOEs privatization process and the ti me lines envisaged. Due to various reasons, the 
privatization schedules of many of these SOEs  have had to be re-revaluated and adjusted. 
 
Privatization progress of enterprises listed in Secretariat Report Table AIII.4 
Company name Government 
ownership in 
2009 (%) Privatization methods Date set for 
privatization 
China Shipbuilding Corp. 
(CSC) 38.83 Share offering Privatized at 2008 
Taiwan Power Co. (TPC)a 94.04 Currently being planned : public offering, listing DR 
(Depositary Receipt), strategic investor are all viable 
options Re-evaluation 
Tang Zong Iron Works Co. 12.35 Share offering Privatized at 2006 
Aerospace Industrial 
Development Corp. 99.71 Convert division assets to shares in a new private 
company, then process IPO (initial public offering) Re-evaluation 
Chinese Petroleum Corp. (CPC) 100 Privatize vi a strategic sale of shares Re-evaluation 
Taiwan Sugar Corp. (TSC) 83.42 Privatization vi a sale of strategic business units (SBUs) Plan being 
processed;  time 
undecided 
Table (cont'd)  WT/TPR/M/232/Add.1 
 Page 5 
 
 
  Company name Government 
ownership in 
2009 (%) Privatization methods Date set for 
privatization 
Taiwan Water Supply Corp. 
(TWSC)a 82.40 contracting out Suspended 
Taiwan Tobacco and Liquor Co. 
Ltd. 100 The MOF has set a requirement for the privatization 
that there be a consensus between the labor union and the corporation on the matter of the release of the shares as a prerequis ite to such release To be rescheduled  
Taiwan Financial Holdings 
(TFH) 100 None. (The financial market  of Taiwan is a very 
competitive market and the three stated-owned banks 
do not hold any exclusive rights.) None 
Bank of Taiwan 100 On 1 January 2008 Bank of Taiwan was merged into 
Taiwan Financial Holdings as a subsidiary  
Land Bank of Taiwan 100 None. (The financial market  of Taiwan is a very 
competitive market and the three stated-owned banks 
do not hold any  exclusive rights.) None 
Central Trust of China n.a. The merger between The Bank of Taiwan and Central 
Trust of China was completed on 1 July 2007  
Central Deposit Insurance 
Corporation 99.9995 According to the resolution of the meeting on relevant 
matters of the "Acceleration on setting up the timetable 
for privatization of government-owned institutions and 
enhancement of the functions of Privatization Task Force" chaired by the Directive Team of Privatization 
of the Ministry of Finance on 17 October 1995, the 
business nature of the CDIC is not suitable for 
privatization None 
The Export- Import Bank  100 None. (The financial market  of Taiwan is a very 
competitive market and the three stated-owned banks 
do not hold any  exclusive rights.) None 
Printing Plant, Ministry of 
Finance 100 None None 
Taiwan Railway Administration 
(TRA) Official 
Bureaucratic 
Agency First to be corporatized, followed by re-review of 
privatization process Suspended 
Chunghwa Post (CHP)a 100 The Committee of Public En terprise Privatization is 
examining some key issues involved in the postal privatization (such as “universal postal service.”)     No definite timetable 
RSEA Engineering Corporation 19 In 2009, the Government completed the privatization of 
RSEA Engineering Corporation by formation of a 
private-owned enterprise thorough joint venture with 
private shares Privatized at 2009 
Long Ci Commercial Dynamite 
Plant 40  Privatized at 2006 
a Market monopolized. 
 
A number of improvements are being undertaken i.e. internet piracy and particularly illegal textbook 
copying in college campuses (para 17 of the Summary of the Secretariat Report). 
 
Question No. 6  We would like Chinese Taipei to provide details of all such steps including 
conviction, if any, related to such activities.  
Answer:  
The important development of internet copyright  protection in recent years includes the following: 
I. Related laws  A. After numerous amendments in recent yea rs, our Internet copyright protection has 
surpassed WTO/TRIPS standards. For example: 
1. The Copyright Act amendments promulgat ed between 2003 and 2004 were made with 
reference to the WCT and WPPT, inserting legislation to expand copyright holders’ 
exclusive “public transmission rights” to  include Internet transmission. These WT/TPR/M/232/Add.1 
Page 6  
 
  amendments also included provisions with  respect to "electronic rights management 
information" and  “technological protection measures."  
2. The amendment to the Copyright Act prom ulgated on July 11, 2007, included new 
measures relating to P2P. This new regul ation prohibits business operators from 
maliciously providing technology such as P2P software to be used for the 
unauthorized transmission of music, video or other copyrighted files over the Internet. 
3. The amendment to the Copyright Act pr omulgated on May 13, 2009, added a new 
section to Chapter VI-1 regarding Limitations on Liability for Internet Service 
Providers (ISPs). This amendment, which wa s made with reference to legislation in 
other countries, included the insertion of a “notice-and-take-down” mechanism, 
whereby ISPs are given “safe harbor” when  conditions are met. This mechanism 
allows ISPs and rights holders to work toge ther to prevent Internet infringement. As 
stipulated by the amendment, TIPO issued the Regulations Governing Implementations of Limitations on Li ability for Internet  Service Providers 
on November 17, 2009.  
 B. Application of penalties for Internet infringement   There is currently no criminal penalty threshold at all for criminal prosecution of copyright 
infringement over the Internet. Prosecutors,  after hearing each case, will make their 
determinations based on regulations of the C opyright Act and the evidence particular to each 
case. Therefore, all persons engaging in infr ingement activities that meet the conditions 
entailed in the Copyright Act regulations will be  held criminally liable. Please refer to our 
Copyright Act (http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=J0070017): 
 The respective articles of Copyright Act are: 
1. Infringement of reproduction rights: ref er to  Article 91, Paragraph 1-3. 
2. Infringement of public transmi ssion rights: refer to Article 92 
3. Circumstances deemed to infringe cop yright: refer to Article 87 Paragraph 1, 
Sub-paragraph 7, and Artic le 93, Sub-paragraph 4 
II. Enforcement related issues 
A. Enforcement agencies 
1. To effectively combat Internet infringe ment, the Joint Internet Infringement 
Inspection Special Task Force (JIST) was est ablished and is comprised of members of 
the IPR Police and the Joint Optical Disk Enforcement Task Force (JODE), focusing 
on comprehensive inspection of Internet-rel ated infringement activities. All JIST 
squads are given a mandate to actively combat unauthorized file sharing and 
software piracy.  
2. In addition to the IPR Police, the Crimi nal Investigation Bureau, criminal police, and 
municipal police departments also carry out  regular Internet inspections and other 
inspection projects. Their scope of inspec tions covers the entire range of services and 
users, e.g. blogs, online biddings, online photo albums, online discussion forums, search engines, personal sites, online gam e sites, online chat rooms, and online 
social networks. 
B. Enforcement Results 
In 2009, law enforcement agencies investi gated a total of 5,543 cases, of which 
2,763 involved Internet infringement (49.8% of all infringement cases). In 2008, the total 
number of infringement cases was 6,093, of wh ich 2,687 were Internet infringements (44.1% 
of overall infringements).  
  WT/TPR/M/232/Add.1 
 Page 7 
 
 
  Illegal textbook copying on and around university campuses 
I. To strengthen campus IPR protection, th e Government has taken the following concrete 
measures: 
A. In 2007, the Ministry of Education (MOE) implemented its three-year Campus IPR 
Action Plan. An inter-agency consultation committee meets regularly to administer and monitor the progress of the Plan. Due to its  excellent enforcement achievements, the MOE 
renewed the Campus IPR Action Plan for 2010-2012. The current plan calls for a 
continuation of similar measures to help pr otect textbook copyright and effectively oversee 
the management of photocopying on campus. 
 B. The MOE has asked schools to include m essages such as ‘abide by IPR concepts’ and 
‘stop illegal photocopying’ in their stude nt handbooks. Schools have included IPR 
infringement violations in their student disciplinary regulations. In 2009, 146 schools (89% of 
all schools) also included the clause ‘shall not engage in illegal photocopying’ in their 
contracts with on-campus photocopy shops; any su ch violations will result in the termination 
of contracts. Schools also have requested on- campus photocopy services to write up rules for 
photocopying service.  
 C. The performance of each school in com bating copyright infringement is considered 
an important factor in determining MOE funding for each school (roughly 10% of annual 
funding), while serving as an encouragement fo r schools to step up the fight against IPR 
infringement on campuses. 
II. Judicial Inspections 
 In an effort to curb illegal textbook copyi ng on campuses, the High Prosecutors Office of the 
Ministry of Justice organizes regular searches of campus copy centers conducted by district 
prosecutors’ offices during the back-to-school  seasons. In February and August 2009, 
investigators uncovered pirated material in 33 copying centers, apprehending a total of 43 suspects. Total market value of all pirate d material seized was estimated at over 
NT$17 million (roughly US$600,000). The strategy  has already produced tangible gains 
against textbook piracy and plans are currently underway to continue similar investigations 
in the future. 
 
 AUSTRALIA
 
 
WTO SECRETARIAT REPORT 
 
SUMMARY 
(4) S ECTORAL POLICY DEVELOPMENTS  
 Paragraph 20 of the Secretariat Report (page xii) not es that agriculture plays a minor role in Chinese 
Taipei’s economy, which relies heav ily on imports to meet domestic needs.  Yet, despite is small 
contribution to GDP (1.6%) agriculture is a ma jor recipient of government assistance, including 
border protection and domestic support. 
 
- Given its reliance on agricultural imports to meet domestic demand, why does Chinese Taipei 
impose some of its highest tariffs on agricultural imports, as well as TRQs and special 
safeguard measures?   
 
Answer:  
Being a Recently-Acceded Member (RAM), we had m ade far more extensive commitments than that 
assumed by most Members in the UR Round. The relevant border measures imposed on agricultural 
products are adopted  based on the results of our WTO accession negotiations. WT/TPR/M/232/Add.1 
Page 8  
 
   
Given the multi-functionality of agriculture, e.g.  food security, rural development and environmental 
protection, we need to maintain appropriate border measures so as to ensure the sustainable 
development of this sector. 
 
In paragraph 23 (page viii) we note with inter est the WTO Secretariat’s finding that “commercial 
presence has been liberalized in financial, environm ental, health, and tourism services, and regulatory 
improvements have been made in professional ser vices and telecommunications, all of which could 
help attract inward direct investment.”   
 The Secretariat notes that “neverth eless some informal barriers remain in certain subsectors, and 
limits on non-Chinese-Taipei investment and other restrictions apply in basic telecommunications, 
audiovisual services, and air and maritime transpor t.  Despite recent privatization measures in banking 
and telecommunications, the Government retains a strategic position in these sectors, while postal 
services remain closed to private investment.” 
 
- We would welcome advice from Chinese Taipei about any proposed future liberalisation and 
removal of limitations on non-Chinese Taipei investment in its services sectors, and a 
timetable for that consideration. 
Answer:  
We approved in July 2009 the Service Industry Deve lopment Plan with the aim of building the service 
industry into an engine for increasing added value,  creating jobs, enhancing the quality of life, and 
stimulating economic growth. The key areas in the fi rst stage of the plan encompass tourism, creative 
and cultural industry, health care, recreational agriculture, logistics, telecommunications, and 
technical services. In terms of stra tegy, the effort will start out with enhancing the  competitiveness of 
the service industry, strengthening R&D and innova tion, creating differentiated services, reinforcing 
manpower training and recruitment from abroad, and im proving service industry statistics. 
 
Among the key areas encompassed in the first stage, a number of services sectors such as tourism, 
creative and cultural industry and health care were pr omoted as “emerging industries”. We are 
reviewing and will revise pertinent laws and regulati ons with the intention of creating a favorable 
regulatory environment for the developm ent of these emerging industries.   
 As for the limits and restrictions described by th e Secretariat Report in paragraph 63 on page 90 and 
paragraph 23 on page xiii, the liberalization an d opening of all relevant sectors for foreign 
investment have been conducted in full compliance with our WTO commitments. Furthermore, we 
continue to welcome all foreign investments whic h bring know-how and innovative technologies to 
help stimulate the growth of our economy and to im prove the living standard of our society.  The 
Investment Commission of the Ministry of Economic  Affairs (MOEA) is currently coordinating a 
general review of the existing restrictions on some industrial sectors.  Necessary modification and 
deregulation will then be made public, as soon as this review process is concluded. In addition, 
regarding further liberalization of the maritime transport service, we are planning to amend the 
proportion of foreign investment on domestic shi pping companies from 33% to less than 50%.  
 
On the other hand, in view of the importance of  the services sector, we give primacy to the DDA 
negotiations to boost the global econom ic growth, and are committed to  cooperate constructively with 
WTO Members to secure a balanced and amb itious outcome of the DDA negotiations. 
  WT/TPR/M/232/Add.1 
 Page 9 
 
 
  III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(1) I NTRODUCTION  
 Paragraph 6 of the Secretariat Report (page 35) notes  that Chinese Taipei’s global market expansion 
plan included discounted interest rates for loans, w ith the intention to aid exporters facing declining 
orders from overseas. The report also notes that va rious forms of assistance continue to be provided 
for agricultural products and activities.   
 
- Can Chinese Taipei clarify how these assistance  measures apply in respect of the export of 
agricultural products?  
Answer:  
In facing the global economic crisis, we drew up a global market expansion plan named the “New 
Cheng Ho Plan”. One of the measures which may be  related to agricultural products under this plan 
is the expansion of markets in China. The measures encompass the implementation of initiatives such 
as organizing trade missions, participating in food exhibitions, building marketing channels, and 
inviting Chinese buyers to come to purchase.  These initiatives are common trade promotion 
measures, which are similar to those measures adopted by a numb er of Members to cope with the 
global financial crisis.  
Paragraph 11 of the Secretariat’s Report (page 35)  notes that certain activities, such as export and 
import cartels, may be exempted from the application of the Fair Trade Law, if approved by the Fair 
Trade Commission, despite the FTC concerns as la ter noted by the Secretariat in (4) Measures 
Affecting Production and Trade (vii) Competitio n and Consumer Protection Policy (para 140, 
(page 74).  The Secretariat also notes in (para 140, page 73) that the Fair Trade Commission approved 
the 17 applications for the extension of approved “concerted actions,” 16 of which were related to 
joint shipment of bulk import of wheat or grains.   
 
- What were the reasons for the FTC approving the exemptions for wheat and grains bulk 
imports?  
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 following  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: … 5. joint acts in regards to the importa tion of foreign goods for 
the purpose of strengthening trade;…”  Furthermore,  these actions should be approved by the Fair 
Trade Commission in advance.    
The 16 applications approved by the FTC were from food manufacturers applying for joint 
purchasing and shipping of the imported bulk cargos  such as soybeans, wheat, and corn.  As these 
grains can be freely imported and the importe r does not need additional qualifications, the 
manufacturers planned the shipments on the basis of freely registered import amounts and chose 
suitable opportunities to import. Just like a domino effect, the joint purchasing and shipping can increase domestic supply, which lowers import and warehouse costs, prevents capital tie-up and a 
heavy interest burden and reduces purchase risk, as  well as enhances bargaining power. There is no 
question that this type of practice was beneficial to the economy as a whole and in the public interest, 
therefore the approval was granted.  However,  the second paragraph of Article 15 of the FTA 
stipulates, “The approval shall specify a time limit not exceeding three years. The enterprises 
involved may, with justification, file a written application for an extension thereof with the Central 
Competent Authority within three months prior to the expiration of such period; provided, however, 
that the term of each extension shall not exceed three years.”  Furthermore, to prevent other illegal 
restrictive or unfair competitive practices, the FTC also imposed conditions on participants:  to file WT/TPR/M/232/Add.1 
Page 10  
 
  reports with the FTC periodically, to allow any one pa rticipant to import grains by itself, and not to 
exclude any one participant without justification, etc. in these cases.  
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(vi) Export finance, insurance and guarantees 
 Paragraph 74 of the Secretariat’s Report (pag e 53) states that the Export-Import Bank promotes 
exports and provides export financin g and other kinds of export fina ncing facilities, including export 
credit for shipments of machinery and other products. 
 
- Can Chinese Taipei clarify whether it provi des export finance for agricultural produce, 
including at discounted interest rates? 
Answer:  
The global credit crunch following the global financial  crisis in 2008 made it very difficult for our 
exporters to obtain credit from international financial  markets, and the cost of capital suddenly rose. 
These extremely unfavourable circumstances have sign ificantly affected our export activities.   
 
As mentioned above, we drew up the “New Cheng Ho  Plan” to cope with the crisis. The measures 
under this plan, including improving the trade fi nance environment, were short-term, temporary (to 
end at the end of 2010) and suitable for any industry. We have no agricultural export subsidies.   
 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  
(i) Taxation and tax-related assistance 
 
Paragraph 85 of the Secretariat’s Report (page 57) sets out a list of some income tax incentives, 
including a tax credit for investment in resource-poor or lesser developed rural areas.   
 
- Given that agriculture plays a minor role in  Chinese Taipei’s economy, agricultural producers 
receive high levels of protection and support (Secretariat’s Summary, (4) Sectoral Policy 
Developments para 20) could Chinese Taipei cl arify what is meant by “resource” poor, and 
also “lesser developed”?  
Answer:  
Paragraph 85 of the Secretariat’s Report is about the Statute for Upgrading Industries(SUI). The tax 
incentives of SUI expired at the end of 2009.  It is no longer in effect. 
 
- What are the criteria for receiving such tax credits? 
Answer:  
Please refer to our answer above.  
Paragraph 85 also notes that  tax relief is availabl e with respect to import duties and business taxes for 
certain industries.  
 
- Are agricultural imports eligible for such tax relief provisions? 
Answer:  
Please refer to our answer above. 
 
- Could Chinese Taipei clarify what  is meant by “certain industries”?  WT/TPR/M/232/Add.1 
 Page 11 
 
 
  Answer:  
Please refer to our answer above.  
(ii) Subsidies  
Paragraph 89 of the Secretariat Report (page 58) no tes that subsidies are provided in the form of 
guaranteed purchase prices and/or grants for the pr oduction of rice, sorghum, and feed corn, sweet 
potatoes, beans tobacco leaves, certa in vegetables and sugar.  It also notes that fertiliser prices in 
Chinese Taipei remain comparatively low due to gove rnment subsidies and that subsidised interest 
loans are available to farmers.   
- What is the guaranteed purchase price for subsidised agricultural products? 
 - Is it a fixed priced or does it change?  If so, how are changes determined? 
Answer:  
The agricultural products receiving a guaranteed pu rchase price from govern ment include rice, 
sorghum and feed corn. The guar anteed purchase prices for sorg hum and feed corn are NT$14 and 
NT$15 per kilogram, respectively. These guaranteed  purchase prices are fixed. The guaranteed 
purchase prices for rice are NT$23 per kilogram  for the Planned Procurement and NT$ 20 per 
kilogram for the Guidance Procurement.   
 
- What are the government subsidies on fertiliser?  
 
Answer:  
In response to the rising international oil and fertilizer prices, we offer subsidi es for fertilizer prices 
and domestic transport fees to stabilize the domestic price of fertilizers. 
 
- What are the agricultural activities that qualify for subsidised interest loans? 
 
- What are the ceilings on the subsidised interest loans?  
 
Answer:  
We provide policy-oriented special agricultural lo ans which are instrumental to modernize farm 
machinery,  improve agricultural management , and enhance living standards of farmers and 
fishermen. The ceiling on total of these special agricultural loans is NT$30 billion in 2010. 
 (v) Intellectual property rights 
 
Australia agrees with Chinese Taipei that IP is crucial to developing a knowledge-based economy and 
to incentivising innovation and research a nd development (page 65, paragraph 112). 
 
- Australia welcomes the improvements that Ch inese Taipei has made to its intellectual 
property system, in particular with respect to measures on internet piracy and illegal textbook 
copying (p xii, para 16). 
 
Answer:  
We appreciate Australia’s comments.  WT/TPR/M/232/Add.1 
Page 12  
 
  IV.  TRADE POLICIES BY SECTOR 
(2)
  A GRICULTURE , LIVESTOCK , AND FISHERIES  
(i)  Overview 
 
Paragraph 8 of the Secretariat Report (page 77) not es that Chinese Taipei’s cultivated land area has 
declined progressively due to the implementation of the set-aside program. 
 
- How does the set-aside program work?  
 
Answer:  
To cope with the liberalization of rice market upon our WTO accession, and to maintain the balance 
of supply and demand of rice, we encourage farmers  to set aside their paddy fields and grow green 
manure on their fallow fields with the aim at  re ducing production and mainta ining soil fertility. The 
present area of fallow land is about 220,000 hectares. 
 
- How does it relate to the land reform program, which is designed to expand the average size 
of farms ((ii) Policy Objec tives – para 12, page 78)? 
 
Answer:  
In response to the global food crisis that began in the second half of 2007, we launched a program 
entitled "Small Landlords, Large Tenant Farmers" to encourage elderly farmers to retire and lease 
their land to younger tenant farmers to revitalize th e use  of fallow land and to expand the scale of 
farming.  
 
(ii) Policy objectives 
 
Paragraph 12 of the Secretariat report (page 78 & para 26, page 82) notes that Chinese Taipei is 
looking at eventually replacing the guaranteed price for rice with direct income subsidies.   
 
- Can Chinese Taipei elaborate on the options being considered for direct income 
subsidies/payment?  
 
Answer:  
The possible direct payment program for rice is still under assessment by our Government. 
 
(iv)  Domestic Support Measures (a) Price support and other product-specific measures 
 
Paragraph 20 of the Secretariat Report (page 79) notes that Chinese Taipei will submit its domestic 
support notifications for 2007 and 2008 once the relevant data has been collected. 
 
- Can Chinese Taipei indicate when its domestic support notifications are likely to be submitted 
to the WTO Secretariat? 
 
Answer:  
We have almost completed our domestic support no tification document for 2007 and will submit it in 
the near future. As for the notification of 2008, we a re currently collecting its relevant data. We will 
submit these two DS notifications once they are  completed.  
 
Paragraph 21 of the Secretariat Report (page 81)  notes that since 2004 price stabilisation measures 
have been implemented for several products deemed to  be particularly sensitive to imports.  In 2004, 
price stabilisation was implemented for citrus, garlic, chicken, duck, and goose,  and in 2005 for citrus 
and garlic.  No measures have been triggered since 2006.   WT/TPR/M/232/Add.1 
 Page 13 
 
 
   
- What products are deemed to be particularly sensitive to imports? 
 
Answer:  
Crops with large cultivation area and low elasti city are deemed sensitiv e products. For example, 
garlic, onions, liucheng (sweet orange) a nd milkfish are deemed sensitive products. 
 
- What are the product price triggers for price stabilisation measures? 
 
Answer:  
The measures of price stabilization will be initiated when the  prices of the above-mentioned products 
are  below  their direct production costs.  
Paragraph 22 of the Secretariat Report (page 81) notes there is a monitoring mechanism to balance 
supply and demand for some 30 agricultural and fi sh products.  In 2005-08 between NT$100 million 
and NT$200 million was allocated to mana ge overproduction of these products.    
 
- What products are subject to this monitoring mechanism? 
 
Answer:  
About 30 kinds of sensitive agricultural products such as paddy rice, onions, staple vegetables are 
subject to this monitoring mechanism.  
- What products received su pport in 2007 and 2008? 
 
- How much was assistance was allocated to those products? 
 
Answer:  
In 2007 and 2008, liucheng (sweet  orange), cabbage, onion, banana, peanut, garlic and eel received 
the support from the above-mentioned program. The budget remained betw een NT$100 million and 
NT$200 million for each year. 
 Paragraph 23 of the Secretariat Report (pages 81-82)  notes that total budgetary outlays for under the 
Adjustment Programme for Paddy Upland Fiel d Utilisation was NT$3.1 billion between 2005 and 
2008.  In addition, since 2008, direct payments ha ve been made to farmers who produced corn in 
fallowed rice paddies with a budgetary outlay of NT$147 million in 2009 and NT$225 in 2010.   
 
- Can Chinese Taipei please advise the annua l outlay under the Adjustment Programme for 
Paddy Upland Field Utilisati on between 2005 and 2008?  
 
- What is the budgetary outlay for 2009 and 2010? 
 
Answer:  
The annual outlay under the Adjustment Progr amme for Paddy/ Upland Field Utilisation was 
NT$10.5 billion for 2005, NT$10.8 billion for 2006,  NT$10.8 billion for 2007 and NT$10.9 billion for 
2008. The budgetary outlay is NT$11.3 b illion each year for 2009 and 2010. 
 
- What was the budgetary outlay in 2008 for the direct payments for corn production in 
fallowed rice paddies? 
 
Answer:  
The direct payments for feed corn production in  fallowed rice paddies was NT$13 million in 2008. 
 WT/TPR/M/232/Add.1 
Page 14  
 
  (b)  Loans 
 
Paragraph 25 of the Secretariat Report (page 82) notes that the Agricultural Product Import Damage 
Relief Fund provides financing to facilitate adjustment in agricultural industri es affected by increased 
imports.  
- What is the trigger for activation of this fund?  
 
Answer:  
Through the Agricultural Import Monitoring and Warning System, the designated authority and 
farmers can easily trace the import volume and pr ices of major agriculture produce. The designated 
authority will undertake relief meas ures utilizing the Agricultura l Product Import Damage Relief 
Fund to assist farmers once the Redress Review Committee determines that serious damage has been 
or is likely to be caused by the surge of agricultural imports. 
 
- Does this fund operate in conjunction with pr ice stabilisation measures and the monitoring 
mechanism? 
 
Answer:  
When the Redress Review Committee determines that serious damage has been or is likely to be 
caused by agricultural imports, the designated  authority will take relief measures, including price 
stabilization measures to help farmers. However,  there is no link between  the redress measures and 
the monitoring mechanism. 
 
(c) Income Support and Other Types of Assistance 
 
Paragraph 26 of the Secretariat Report (page 82) notes that several subsidies are provided for production inputs, such as the purchase of machinery, reduced fees for electricity, and premiums for 
livestock insurance. 
 
- What production inputs qualify for inputs subsidies?  
 
- How are the input subsidies calculated? 
 
Answer:  
For those who meet the conditions  of production input subsidies,  they can apply for subsidies, 
including agricultural electricity, fertilizer and ot her production materials. With respect to the 
electricity for agricultural operation the basic  f ee is exempted. Regarding agricultural machinery, we 
establish a list of new agricultural machinery each ye ar to subsidize farmers for new purchases. 70% 
of the livestock insurance fee is supported by the government. 
 
(5) S ERVICES  
 
(no numerical listing as not covered in Secretariat or Government Reports) 
 
Education 
 Regulations for transnational education remain re latively strict despite some relaxation in recent 
years.  The private school and university laws have  been amended to increase the time allowed for 
study via distance education (now 50% of credits), and decrease the minimum time spent on campus 
(8 months for Masters, 16 months for PHD, 32 mont hs for Bachelors).  However, distance education 
is defined in a very narrow sense incorporating only synchronous (occurring simultaneously) and 
asynchronous distance learning.  Correspondence learning is not recognised in Chinese Taipei.  WT/TPR/M/232/Add.1 
 Page 15 
 
 
   
- Could Chinese Taipei inform Members on efforts to further liberalise this area? 
 
Answer:  
The recognition of international academic credits through distance learning follows the regulations 
set out in “Implementation Regulations Regarding Distance Learning by Universities”. 
 
“Distance Learning” is referred to in Article 3 of these regulations as interactions between teachers 
and students by means of telecommunication netwo rks, computer networks, video channels and other 
media.  The correspondence courses are not in cluded.  We are not considering to recognize 
correspondence learning at this time becau se of concerns over quality assurance. 
Chinese Taipei’s Ministry of Education is exploring revisions to regulations that limit recognition of 
vocational education and training diplomas and certificates.  
- Could Chinese Taipei inform Members on the progress of these revisions? 
 
Answer:  
They are still under review.  No timetable has been set. 
 CHINESE TAIPEI’S REPORT 
 
III. POLICY ENVIRONMENT AND REFORMS (iv) Domestic reforms 
 
27. Promotion of I ndustrial Innovation 
 
The Report by Chinese Taipei (paragraph 27, page  11) and the Secretariat Report (paragraph 50, 
page 33) state that the Statute for Industrial Innovation (SII) is the successor to the Statute for 
Upgrading Industries which expired at the end of 2009.  We understand the Legislative Yuan passed 
the SII in April 2010.  
- Could Chinese Taipei elaborate on how the Stat ute applies to foreign companies, and whether 
the Act makes available the sa me incentives for industrial innovation and development to all 
domestic and foreign companies? 
 
Answer:  
Foreign companies which establish subsidiaries in the territory of the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu in accordance with the Company Act are eligible for tax 
incentives with regard to the investment  in innovative R & D activities.  
 
(v) Economic vitalization policy 
 34. Full Deposit Guarantee scheme on bank savings deposits 
 
The Report by Chinese Taipei (paragraph 34, page 13 ) and Secretariat Report (paragraph 14, page 6; 
and paragraph 85, page 95) state that the Fu ll Deposit Guarantee scheme on bank savings deposits 
was implemented in late 2008 till th e end of 2010 to ensure the stability of the financial system. 
  
- Could Chinese Taipei inform Members whether the Government has decided to extend the 
scheme past end-2010? 
 WT/TPR/M/232/Add.1 
Page 16  
 
  Answer:  
We are planning to phase out the full deposit guarantee by the end of 2010. In addition, it has been 
proposed to raise the protection limit from the p re-crisis level of NT$1.5 million to NT$3 million to 
cover over 98% of the depositors. 
 To prevent possible irregular deposit flows among local banks after the guarantee expires, 
supervisory measures ha ve been adopted by the FSC to monitor banking institutions in preparation 
for the transition. A publicity campaign will be launc hed as soon as the trans ition plan is approved. 
 
V. OTHER MULTILATERAL (REGIONAL) AND BILATERAL TRADE 
RELATIONSHIPS 
 
58. Free Trade Agreements and ot her bilateral initiatives  
 
The Report by Chinese Taipei (paragraph 58, page 17) states that Chinese Taipei is negotiating a 
cross-strait economic cooperation framework agreem ent with China.  We understand Chinese Taipei 
will notify the agreement to the WTO. 
 
- Could Chinese Taipei elaborate on the proposed cross-strait economic cooperation framework 
agreement, in particular the scope and timet able for liberalisation under the agreement? 
 
Answer:  
The Economic Cooperation Framework Agreement (ECFA)  is, in its nature, a framework agreement. 
The ECFA stipulate clearly that both parties will st art to negotiate four agreements covering goods, 
services, investment protection and dispute settlement w ithin six months after its taking effect and will 
conclude negotiations as soon as possible.  
 
 
NEW ZEALAND  
 
Standards  (WT/TPR/S/232 page 35, para  7 and page 59, para 95)  
 
We note that by 2009 only 18% of Chinese Taipei’s applied standa rds were aligned to international 
standards, down from 25% in 2005.  (This is particul arly noteworthy since we see that all standards 
that were introduced between 2005 and 2009 were  harmonised with existing international ones.) 
 
- What is the reason for this decrease?  What  steps is Chinese Taipei taking to redress this 
situation and to increase the proportion of its applied standards that are aligned to 
international standards.  Please provide details  on any work programme being undertaken to 
achieve this, including inform ation on the timetable expected to apply to this work. 
 
Answer:  
The alignment rate of our officia l standards with international standards dropped from 25% in 2005 
to 18% in 2009 for mainly two reasons. One re ason was the re-evaluation of the definition of 
international standardizing bodies. In 2006, the Gu ide for Alignment of APEC Member Economies’ 
Standards with International Stan dards, endorsed by the APEC/CTI in 1996, was used as the criteria 
to calculate the alignment rate. In the Guide, ref erences were made to 27 international organizations 
listed in the ISO/IEC KWIC Index of Internati onal Standards, which were fewer than the number of 
international standardizing organizations that was used for calculation in 2005. The other reason was 
the integration of standards of similar nature. 
 
Nevertheless, we believe that the rate of equivale nce indicated in Table III.7, which is 74.16%, is a 
better way of representing the harmonization status of our official standards, as harmonization is only  WT/TPR/M/232/Add.1 
 Page 17 
 
 
  possible when related international standards exist. This calculation shows an increase of the 
alignment rate from 71% in 2005 to 74.16% in 2009.  
In addition, 221 official standards are now referenced by technical regulations, and all of them are 
aligned with international standards. 
 Agricultural Policy
 (WT/TPR/S/232 page 76, para 2)  
 
According to the Secretariat report the agriculture sector has been playing a declining role as Chinese 
Taipei’s economy has grown.  It now contributes only 1.6% to GDP and 5.3% to employment (with labour productivity only one quarter that of the rest of the economy).  We note too that these figures 
have not changed substantially since Chinese Taipei ’s last review despite a high level of ongoing 
assistance, including border protection and domestic  support.  We also note the policy objective 
Chinese Taipei has set of developing a “competitiv e, market-oriented agricultural industry”.   
 
- We would be interested in a fuller explana tion from Chinese Taipei as to how it reconciles 
this on-going particularly high le vel of support to agriculture, with the place of agriculture in 
Chinese Taipei’s overall economy and Chinese Taipei’s stated objectives under its new 
agricultural policies to develop a “competitive,  market-oriented agricultural industry”. 
 
Answer:  
Given the multi-functionality of agriculture, e.g.  food security, rural development and environmental 
protection, we need to assist the agricultural sect or for its sustainable development and to increase its 
competitiveness, with the aim at devel oping  a market-oriented agriculture sector. 
 
Ever since our accession to the WTO, we have been  actively engaged in the DDA negotiations to 
ensure the ongoing process of trade liberalization as we ll as try to transform the amber-box measures 
to blue-box  or green-box measures that would result in less trade distortion. 
 In order to raise the quality and competitiveness of domestic agricultural product, the government 
implements certain measures to achieve a compe titive and market-oriented agricultural industry, such 
as developing safe agricultu ral products, establishing ma rketing zones and local brands. 
 
Agricultural Special Safeguards
 (WT/TPR/S/232 page 47, para 50)  
 
The Secretariat report notes that for some of the products for which the agricultural special safeguard 
is applied, the SSG trigger volumes are relatively low, resulting in special safeguards being readily 
triggered. 
 
- We would appreciate advice on what options Chin ese Taipei is looking at to adjust trigger 
volumes over time to more accurately reflect a natural growth in trade under a more 
liberalised regime to minimise undue triggering of the special safeguard? 
 
Answer:  
The Trigger Volumes of the special safeguards were calculated in accordance with Article 5 of the 
Agreement on Agriculture.  In the future, we will follow the outcomes of DDA negotiations.  
 
- What plan does Chinese Taipei have in place to phase out its use of special safeguards? 
 
Answer:  
The Trigger Volumes of the special safeguards were calculated in accordance with Article 5 of the 
Agreement on Agriculture. In the future, we will follow the outco mes of the DDA negotiations. 
 WT/TPR/M/232/Add.1 
Page 18  
 
  Tariff Structure
 (WT/TPR/S/232 page 39, para 23)  
 
We note that Chinese Taipei’s current tariff struct ure remains quite complex (with 150 different rate 
bands, including 86 ad valorem , 16 specific and 48 alternate rates).  Non- ad valorem  tariffs are levied 
mainly on agricultural products and equate to particularly high ad valorem  equivalents.  The 
Secretariat report indicates: “non- ad valorem  rates continue to conceal relatively high tariff rates.” 
 
- In these circumstances, we should be grateful  to receive clarification from Chinese Taipei on 
its plans for tariff simplification, including for conversion of its non- ad valorem  tariffs to 
more transparent ad valorem  tariffs. 
 
Answer:  
All the tariff systems are based on the results of  our WTO accession negotiations. Currently only a 
few tariff lines adopt non-ad valorem tariffs, including  specific tariffs and mixed tariffs. We are of the 
views that these two types of non-ad valorem ta riffs are easy to calculate, transparent and 
predictable.  In the future, we will follow the outcomes of DDA negotiations. 
 
Tariffs: Agriculture  (WT/TPR/S/232 page 34, para 2)  
 The Secretariat report has highlighted that the highe st tariff rates apply to agricultural products and 
the range of tariffs is much greater for agri cultural products than for non-agricultural products. 
 - In light of Chinese Taipei’s firm support for trade liberalisation (WT/TPR/G/232, page 7, 
para 9) what steps does Chinese Taipei have pla nned to bring the particularly high tariffs it 
applies on certain agricultural products more in to line with its overall average tariff levels 
applying to non-agricultural products? 
 
Answer:  
Being a recently-acceded Member, we had made fa r more extensive commitments than that assumed 
by most Members in the UR Round.   
The in-quota tariff rates of agricultural TRQ prod ucts are all relatively low—ranging from 0% to 
25%. All the administrative procedures for these TRQs are in accordance with the principles of 
transparency, predictability, equ ity, and are based on market mec hanism. The processes provide full 
market access opportunities for these TRQ products. 
 As for the out-quota tariff rates, they are calculated  based on the formula of tariff equivalence, which 
reflect the price difference between domestic mar ket and international market. All the in–quota and 
out–quota tariff rates are the results of the negotiati ons for our accession to th e WTO. In the future, 
we will follow the outcomes of DDA negotiations. 
 Tariff Quotas
 (WT/TPR/S/232 page 39, para  26 and page 40, para 28) 
 
We note that tariff rate quotas have fallen from 12 9 tariff lines in 2005 to 101 tariff lines in 2009 
(reducing product coverage by about 22%).  We no te too that many of the remaining tariff quotas 
have consistently been under-filled.  
 - In these circumstances, we would appreciate information on what kind of review programme 
Chinese Taipei has underway to re-examine the way in which it administers these tariff rate 
quotas and either make changes to its procedures in order to improve TRQ uptake, or remove 
tariff quota restrictions in cases where these are plainly not being filled. 
  WT/TPR/M/232/Add.1 
 Page 19 
 
 
  Answer:  
All of our TRQ products are administered in a tran sparent, fair and predictable manner and based on 
the market mechanism. The allocation provid es full market access opportunities for these TRQ 
products.  
 
Domestic Support  (WT/TPR/S/232 pages 76-79)  
 
The Secretariat report indicates an intention on the pa rt of Chinese Taipei to move towards a system 
of direct payments for agricultural domestic support. 
 - We would be grateful if Chinese Taipei would please advise its intended timetable to achieve 
this transition. 
 
Answer:  
The possible direct payment program for certain ag ricultural products is still under assessment by 
government.  
 Subsidies
 (WT/TPR/S/232 page 58, para 89)  
 The Secretariat notes that Chinese Taipei provides subsidies to selected products and activities in 
agriculture, fisheries and manufacturing. 
 - What is the rationale for continuing to subsid ise commercial aspects of the fisheries industry, 
which are essentially standard business costs, su ch as marine insurance for fishing vessels? 
 
Answer:  
In order to improve the social security and welfare of fishermen, we only provide subsidies on marine 
insurance for small scale and artisanal fishi ng vessels weighing less than 100 tons. For further 
information, please refer to our no tification document G/SCM/N/186/TPKM. 
 
Statute for Industrial Innovation  (WT/TPR/S/232 page 57-58, para 88) 
 
We note Chinese Taipei has recently put in place a new set of tax incentives and employment 
subsidies for the business and industrial sectors in its new Statute for Industr ial Innovation.  When 
will Chinese Taipei be providing a full notification of these provisions to the WTO’s SCM 
Committee? 
 
Answer:  
For subsidies that are defined in Art.1 and 2 of th e ASCM, we will fully notify to the WTO according 
to Art. 25.2 of the ASCM .  
 
Maximum Residue Limits  (WT/TPR/232 page 35, para 7 and page 63, para 106) 
 
The Secretariat report refers to the process Chin ese Taipei has established to set MRLs for 218 
priority products currently without specific MRLs.  We were pleased that two products on which New 
Zealand had placed priority had MRLs set for them last year, as part of the group of 88 finalised 
MRLs completed by earlier this year. At the same  time, a long list of priority items (around 100) 
remains. 
 
- We would appreciate Chinese Taipei providing a timetable for completion of the process of 
setting these remaining priority MRLs.  We would also appreciate Chinese Taipei confirming 
its intention to apply international standards in  cases where specific MRLs have not been set 
(or are pending). WT/TPR/M/232/Add.1 
Page 20  
 
   
Answer:   
We aim to complete the risk assessment as well as the MRLs of the remaining items as soon as 
possible. 
 In compliance with the WTO/SPS Agreement, we de termine the appropriate level of protection, in 
particular with respect to MRLs, based on inter national standards, guidelines and recommendations, 
such as Codex and those of our major trading partn ers in setting our own MRLs, as well as according 
to scientific evidence and domestic dietary patterns. 
 
Services
 (WT/TPR/S/232 page 76, para  5 to page 100 para 105)  
 
Postal Services  
 
The Secretariat report notes that plans were draw n up by Chinese Taipei in 2004 to move towards 
privatisation of postal services but that no timetable has yet been established for this. 
 
- We would appreciate an update from Chinese Taipei on its plans and timeline for moving 
forward in this area, consistent with its stat ed objective of boosting the competitiveness of its 
services sectors, including through “accelerating deregulation”.  
 
Answer:  
According to the first Paragraph of Article 6 of  the Postal Acts, apart from Chunghwa Post and 
others so entrusted, no others may engage in the business of delivering letters, postcards or other 
correspondence. However, the busin ess of delivering newspapers, magazines, printed matter and 
parcels is open to free competition. 
 Regarding privatisation of postal services, the Comm ittee of Public Enterprise Privatization is 
examining some key issues involved  in the postal privatization (such as “universal postal service.”) At 
present, there is no definite time schedule for postal privatization. Please also refer to the answer to 
Question 5 raised by India. 
 
Education Services
 
 
- What reasons does Chinese Taipei have for reta ining restrictions on the foreign ownership of 
private education institutions?  
 
Answer:  
Under the amendments to the Private School Law passed in 2008, foreigners or foreign legal persons 
who meet legal approval may set up private senior high schools or above. 
 
Additionally, restrictions on forei gners pertaining to the election of school board presidents, 
principals and percentages regarding board memb ers were also abolished at the same time. 
 
Professional Services  
(WT/TPR/S/232 page 105, paras 126 and 127)   
 We note Chinese Taipei continues to maintain some forms of business limitations for the provision of 
legal and accounting services under the “commercial presence” mode. 
 - Please advise plans to provide for more flex ibility in form of business to provide these 
services consistent with Chinese Taipei’s stated goal of “creating diverse services,  WT/TPR/M/232/Add.1 
 Page 21 
 
 
  strengthening talent cultivation and recruitmen t from abroad and accelerating deregulation” in 
the services sector (WT/TPR/G/232, p. 10, para 20). 
 
Answer:   
Regarding accounting services, a foreigner who obtains  qualifications to practice as a CPA and has a 
commercial presence in our territory in accordan ce with our Certified Public Accountant Act may 
engage in CPA services. Regulations applying to forei gn CPAs are consistent with those applying to 
domestic CPAs. 
 
For legal services, we currently only allow an attorney to practice law as a natural person. Therefore, 
all offices set up either by local attorneys or by fo reign attorneys are not allowed to operate in the 
form of a corporation. Although our Attorney Re gulation Act provides that an attorney must have an 
office, yet an attorney’s office does not meet the qua lifications for a juridical person. Accordingly, a 
foreign attorney’s office must opera te in the form of a natural person (sole proprietorship) or a 
partnership with another foreign a ttorney or a local attorney. 
 With a view to aligning with international prac tice, promoting legal reform, simplifying procedures, 
and deregulating, the government has taken action in several areas during the review period. To 
facilitate the submission of practical  suggestions for deregulation by the civil society, the Council for 
Economic Planning and Development (CEPD) has set  up a platform on its website, and convenes 
related ministries and commissions together for a "r olling" review of regulations. WTO Members are 
more than welcome to submit any concrete suggestions for further evaluation.  
 (WT/TPR/S/232 page 105, para 128)   
 
We note the requirement for non Chinese Taipei qua lified architects to re-sit local examinations and 
to undergo two years of construction experience to  obtain an “Architect Practising Certificate”. 
 
- What provisions does Chinese Taipei have in place to enable an overseas qualified architect 
to have these qualifications recognised more exped itiously to be able to participate in one-off 
or medium term projects? 
 
Answer:  
According to the Building Code and Architects Act, a person who is registered as an architect in our 
territory  and has established an office may be permitte d to provide services rel ated to the architect 
certification practice.  These regulations are demonstr ated in our schedule of specific commitments in 
Mode 1 to Mode 3 limitations on market access of architect services.  Foreigners and our citizens are 
required to follow the same regul ations. There are no discriminations. In addition, both of us are 
members of the APEC Architect Project. The aim of  the APEC Architect framework is to establish a 
mechanism to facilitate the mobility of archit ects for the provision of architectural services 
throughout the APEC region by reducing current barriers to the export of professional services. 
Through bilateral agreement, members can simplify  the licensing  procedures of architects. 
 (WT/TPR/S/232 pages 105-106, para 129)   
 
We note Chinese Taipei maintains a residency requ irement for non-Chinese Taipei engineers to be 
able to provide engineering services in Chinese Taipei.   
- Please advise which specific services are open to provision by overseas qualified engineers on 
a consultancy basis (e.g. through cross-borde r supply) and the means by which overseas 
qualified engineers can go about providing these services. 
 WT/TPR/M/232/Add.1 
Page 22  
 
  Answer:  
1. According to our GATS’s Schedule of Spec ific Commitments, the limitation on market access 
of cross-border supply in engineering services is: “N one, except for services related to professional 
engineer certification practice which can only be pr ovided by our licensed professional engineers.” 
2. Foreign engineers have to possess  our licenses for relevant professional engineer with local 
residency in order to perform professional engineeri ng services pursuant to our laws and regulations.   
 
Regulatory Reform  
 
We congratulate Chinese Taipei for the improvement it has made in 2009 in the World Bank “Doing 
Business Survey” (moving from 119th place to 29th place in the specific area of “starting a business”).  
We request an update from Chinese Taipei on its fu rther plans for regulatory reform in this area. 
 
Answer:  
After the World Bank issued the Doing Busi ness 2010 report in September 2009, the Council for 
Economic Planning and Development (CEPD) set about  planning a new wave of reforms to improve 
the business environment. On October 21, it presente d a report on Reform Strategies for Modernizing 
the Law and Institutions of the Business Environmen t. This report was given strong government policy 
support, and the supervisory level of our business environment reforms wa s upgraded from one of 
direction by joint meetings of ministers without po rtfolio to one of direction by the vice premier. 
 
The business environment reforms targ eted for 2010 fall within the scope of five of the World Bank’s 
indicators, namely, Starting a Business, Dealing with Construction Permits, Registering Property, 
Protecting Investors, and Paying Taxes. The main de tails of reform in the area of “Starting a 
Business” are as follows: 
 
1. The Ministry of Economic Affairs (MOEA)  has stipulated a further reduction of the 
administrative processing time for company registra tion due to the abolishment of the comprehensive 
certification system. (Effective from January 20, 2010.)   
2. The Department of Health (DOH) has amende d Article 28 of the Enforcement Rules of the 
National Health Insurance Act, to stipulate that  the procedure for arranging health insurance 
coverage for employees of a newly established en tity is completed as soon as the application is 
delivered to the Bureau of National Health In surance, and the coverage becomes effective 
immediately at that time. (This amendment came into effect on December 30, 2009.) 
3. The Council of Labor Affairs (CLA) has amended the Directions for Review of Work Rules 
with the provision of a sample set of work rul es, to speed up the work ru les review process. (This 
amendment came into effect on January 20, 2010) 
4. The Company Act will be amended to c hange the CPA capital auditing certification to a 
post-startup requirement for submission to the comp etent authority, to redu ce the time needed for 
starting a company. (This amendment is curren tly under review by the Legislative Yuan.) 
 
Temporary Decrease in Custom Duties  (WT/TPR/S/232 page 42, para 35)  
 
We commend the rational response Chinese Taipei applied to rising commodity prices in 2008 of 
applying unilateral reductions to  its customs duties on 30 items it deemed “basic necessities” 
(including fuels and certain basic foodstu ff, e.g. cereals and dairy products).   
 - Could Chinese Taipei provide information on how these tariff reductions were of benefit to its 
economy?   
 
Answer:  
Taking “wheat flour” and “brewed or distilled d regs and waste” as an example, after temporarily 
lowering the tariffs on these products, the import values increased by 50% to 60% during the first  WT/TPR/M/232/Add.1 
 Page 23 
 
 
  year of the temporary tariff reduction. These fi gures indicate such temporary reduction had a 
significant effect on accommodating the supply of goods. However, there was no significant effect during the second year of the period of temporary reduction. 
 
We welcome too the decisions that Chinese Taipei t ook in 2009 to continue to extend many of these 
reductions in recognition of the value derived by Chinese Taipei’s consumers and small and medium 
enterprises from this measure. 
 
- In light of this experience, we would encour age Chinese Taipei to examine and effect more 
permanent tariff reductions in the relevant prod uct areas to provide greater predictability and 
certainty to its business sector, as well as contri buting to its competitiveness. What processes 
does Chinese Taipei have under way to achieve this? 
 
Answer:  
We voluntarily revised its “Customs Import Tar iff,” promulgated on 15 June 2010 to boost the 
competitiveness of its businesses. The tariffs of 19 items, including those for non-cathode-ray tube 
monitors, gas buses, potatoes, etc. were reduced. We  will continue to study the effects of changes in 
the levels of tariff rates to gain further und erstanding of the role of such changes.  
 On the other hand, we give primacy to the DDA ne gotiations for further liberalization of the global 
market to boost global economic growth, and are co mmitted to cooperating constructively with WTO 
Members to secure a balanced and ambitious outcome of the DDA negotiations. 
 Trade Documentation Procedures
 (WT/TPR/G/232 page 11, para 23)  
 
We note the increased coverage Ch inese Taipei has achieved (reportedly up to 91.27% in 2009) with 
its on-line FT Net system aimed at streamlining procedures for import/export permits, certificates of 
origin and inspection or quarantine related docum ents and reducing transaction costs for business.  
What practical benefits has Chinese Taipei obtained from adopting these streamlined on-line 
procedures?   
 
Answer:  
FT Net, the online network to facilitate trade, was launched in March 2005, and as of May this year 
(2010), sixteen licensing authorities have used the system  for their e-trade operations, with a total of 
1,300 clients and 4.42 million electronic application ca ses.  During this period, the rate of electronic 
applications for licensing and declaration documents reached 91.3%, with an accuracy rate of more 
than 98%. 
 
The government invested US$34.71 million in the Tr ade Facilitation Plan (FT Net) from 2003 to May 
of 2009, which resulted in economic benefits  worth US$380.75 million. An estimated 
US$310 thousand worth of paper has been saved by th is paperless trade communication.  Digitization 
can save up to US$179.47 million, and simplific ation can save an additional US$200.97 million. 
  
HONG KONG, CHINA
 
 
Financial Services 
(WT/TPR/S/232: p. 90, para. 60; p. 91, para. 66)  
1. While we commend CT on its effort in revi sing the financial services legal framework to 
further liberalize and restructure the financial market with a view to transforming into a financial 
centre for the Asia Pacific region, we note that market access for cross-border supply (mode 1) in 
several subsectors of financial services was left unbound in CT.  With the increasing use of electronic WT/TPR/M/232/Add.1 
Page 24  
 
  access and delivery plus the increasing complexity, bu ndling and diverse sources of financial services, 
would CT share with us if it has any further plan to liberalize the cross border supply of the subsectors 
in financial services?   
Answer:  
In 2005, we officially began allowing  the offering and sale of offshore funds provided that approval or 
effective registration has been obtained from our  financial regulator. So far, we do not have any 
further plan to liberalize cross-border supply in  the referenced financial services subsectors. 
 
MFN Exemptions 
(WT/TPR/S/232: p. 90, para. 62)  
2. CT’s schedule of specific commitments incl udes three exemptions from MFN treatment, one 
relating to acquiring the rights and interests in lands for all sectors and two for auxiliary air transport 
services.  All the three exemptions are of an indefi nite intended duration and for the former one, CT 
reserves the right to offer more favourable treatment to WTO Members conditioned on reciprocity.  We are of the view that these MFN exemptions do not fall in line with the GATS principles.  We 
would appreciate CT’s advice on any plan to remove them. 
 
Answer:  
Regarding our exemption in acquiring the rights and  interests in lands, we understand that an open 
market in land would attract more favorable foreign investments.  We also strongly welcome such 
investments currently subjected to reciprocity.  How ever, due to the special geographical nature of 
our territory such as limited land area, scarce re sources and high population density, effective use of 
scarce land involving security interest s has always been one of our most important land policies.  We 
would like to refer such exemption to the fourth paragraph of the preamble of GATS which explicitly 
recognizes the “right of Members to regulate” and the third paragraph of the preamble which 
stipulates that while achievement of progressively higher levels of liberalization of trade in services is 
desirable, due respect should be given to “national policy objectives.”  We beli eve this is a legitimate 
policy objective recognized under GATS and, therefore, continues to provide the conditions in which 
the need for exemptions still prevails.  In addition,  the exemption is not absolute in nature as we have 
reserved the right to offer more favorable treatment on condition of reciprocity for mutual benefits, 
which is exactly in line with the aim of GATs to“promot[e] the interests of all participants on a 
mutually advantageous basis.”   
 
Maritime Services 
(WT/TPR/S/232: pp. 101-102, para. 111)  
3. We note from the Secretariat Report that non- CT vessel carriers are required to establish a 
branch in order to provide international transport services to passengers and cargo in the territory.  
And they must also keep a minimum operating fund of NT$12 million.  We would appreciate CT’s 
enlightenment on how this requirement reconciles with CT’s offers on international freight and 
passenger transport under maritime transport services.  
 
Answer:  
The requirements of the minimum operating fund and the establishment of a branch office are neither 
market access, nor national treatment limitations. The purpose of the requirements is to ensure 
quality of service granted.  
 
  WT/TPR/M/232/Add.1 
 Page 25 
 
 
  MALAYSIA  
 
GOVERNMENT REPORT 
 
Page 8 and 9, para 14  
 
14. Outbound investment from the Separate Cust oms Territory of Taiwan, Penghu, Kinmen and 
Matsu reached US$11.96 billion in 2006, which repr esented a substantial 41.44% increase from the 
previous year. A further increase of 37.49% was achieved in 2007. In 2008, outbound investment 
declined by 7.8% but still exceeded US$15 billion (T able 4). In 2009, outbound investment continued 
to decline. The global economic downturn was likely the main reason behind the substantial declines 
in outward investment in both 2 008 and 2009. Nevertheless, in sp ite of the decline in outbound 
investment, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu's outbound 
investment performance ranked 26th in the world in 2008, 3 notches up from 2007. As regards 
multilateral work on Regional Trade Agreemen ts (RTAs), Chinese Taipei supports the WTO 
Transparency Mechanism for RTAs;  it considers that the mechanism's factual presentations help 
Members to acquire a more comprehensive unders tanding of RTAs-related issues.  The authorities 
believe that this mechanism might prevent RT A proliferation from undermining the multilateral 
negotiations. 
Question:  
 
 In 2008 the outbound direct investment from the Chinese Taipei flows almost double the amount of inbound direct investment and ranked 26th in  the world. Could Chinese Taipei elaborate on 
its outbound investments in the manufacturing and services sectors (by value, industries, and 
destination), prospects and stra tegies for outbound investment? 
 
Answer:  
According to official statistics, outbound investment  from the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu amounted to US$15.157 b illion in 2008 and US$10.148 billion in 2009, 
down 7.8% and 33.1%, respectively, from the year before. For the two years, outward investment in 
manufacturing totalled approximately US$17.445 billion and in services about US$7.696 billion, 
accounting for 68.9% and 30.4%, respectively, of all outbound investment. Investment in China 
accounted for 70.48% of the overall amount. ( please see the attachment)  
 
To avoid an excessive concentration of outbou nd investment and to help enterprises respond to 
regional economic changes and the rise of emerging markets, our strategies and prospects for outbound investment are as follows: 
 - Deployment strategy: Inclusion of lo cal resources in the competitiveness of our 
enterprises, enhancement of their global deployment capabilities, and their integration into local markets.  
 - Future prospects: As the world economy  recovers and our economy develops, we will 
continue expanding  outbound investment. 
 
Page 10, para 20 
 
20. By enhancing the international competitiven ess of its services sector, bolstering R&D and 
innovation, creating diverse services, strengthening  talent cultivation and recruitment from abroad, 
and accelerating deregulation, the Separate Custom s Territory of Taiwan, Penghu, Kinmen and Matsu 
endeavors to enable the services sector to become an engine for increasing added value, creating 
employment, improving the quality of life, and pr omoting economic growth. The Government gives 
priority to promoting the development of services sectors such as medical tourism, international 
logistics, music and digital content, MICE (M eeting, Incentive, Convention, and Exhibition), WT/TPR/M/232/Add.1 
Page 26  
 
  Taiwanese cuisine globalization, urban renewal,  WiMax, e-commerce, education, and financial 
services. 
Questions: 
 
 How is Chinese Taipei promoting the development on its WiMAx and e-commerce?  
Answer:  
Development of e-Commerce  
 
According to our survey, the domestic B2C e-comm erce market scale was NT$207.6 billion in 2009, 
which is a 22% growth from the market scale of NT$170.3 billion in 2008, a nd is expected to grow 
18% in 2010 to reach NT$245.8 billion. In addition, acco rding to the FIND survey  of the Institute for 
Information Industry, the internet’s prevalence rate has reached 46%, meaning that 106 million 
people frequently surf the internet. These figures indicate the prosperous development of the domestic 
e-commerce market. 
 However, following the popularization and developm ent of e-commerce, a number of issues have 
arisen, e.g. personal information leakage and int ernet fraud. The competent authority is currently 
exerting itself to develop a robust legal environment for e-commerce that will be highly identified by 
consumers.  
 
Development of WiMAX   
The measures to promote WiMAX industry include the followings: 
 - Promoting domestic deployment of fiber-optic and WiMAX networks, and building 
interoperability testing capabilities to business opportunities for deployment of next-
generation networks(NGN). 
 - Strengthening industrial collaboration by signing memorandums of understanding 
with leading international communication e quipment vendors to explore procurement 
opportunities in emerging markets 
 - Promoting the establishment and collaboration of applications for cross-strait 
broadband and wireless broadband networks 
 - Promoting new fiber-optic broadband service s, and encouraging the development of 
opportunities for people to experience new wireless broadband applications services 
that target particular locations or groups  
 - Establishing new indicators for co mmunications industry competitiveness, and 
continuing to monitor the overall health of the industry; and helping companies to 
establish mechanisms for training personnel in the use of new technologies 
 
 What are the other services sectors that will be promoted over the next 5 years? Please 
provide information on how Chinese Taip ei will facilitate the expansion. 
 
Answer:   
To promote the future development of the servi ce sectors, our government will focus on the 
aforementioned service sectors.  
  WT/TPR/M/232/Add.1 
 Page 27 
 
 
  SECRETARIAT REPORT 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
 
Page 6 and 7, para 17  
 
17. Capital flows are for the most part liberaliz ed.  Residents in Chinese Taipei may use foreign 
exchange proceeds from exports and pay for imports without restriction.  Remittances not involving 
the conversion of NT dollars and those involving th e conversion of NT dollars but related to goods 
and services trade, and to approved direct and portfo lio investment are also liberalized.  However, 
certain limits remain in place on other forms of s hort-term capital flows involving the conversion of 
NT dollars. 
Question:  
 
 What are the “certain limits” imposed on short term capital flows? 
 
Answer:  
We divide foreign exchange transac tions involving the conversion of NT dollar into three categories, 
namely trade in goods and services, direct inves tment and portfolio investment approved by 
competent authorities, and others. The Central Bank set up annual accumulative remittance 
allowances for each company and individual, and a limit on each transaction for non-residents as 
well. These annual accumulati ve remittance allowances and the limit on each transaction are 
US$50 million, US$5 million and US$100,000, respec tively. These annual accumulative remittance 
allowances and the limit on each transaction apply to transactions processed directly by authorized 
foreign exchange banks. Prior approval from the cen tral bank is needed for transactions exceeding 
these annual accumulative remittance allow ances and the limit on each transaction. 
 
1. However, transactions related to trade in goods and direct investment and portfolio 
investment approved by competent authorities are not counted toward the company or individual’s 
annual accumulative remittance allowances. In addition,  transactions related to non-residents’ direct 
investment and portfolio investment approved by competent authorities are not constrained by the 
single transaction limit either.  
Page 23 and 24, para 27 and 28
 
 27. Increased participation in free-trade agreemen ts (FTAs) and economic integration in the Asia 
Pacific region, using the NAFTA and the EU as mode ls, are Chinese Taipei's main tools for attaining 
key trade policy objectives, such as market divers ification, globalization of domestic firms, and 
promotion of non-Chinese-Taipei investment and gr owth (section (4)).  The negotiation of FTAs is 
motivated primarily by economic considerations.  Reportedly, Chinese Taipei has targeted FTAs with 
Central American countries to, inter alia,  gain access to the United St ates market under NAFTA and 
CAFTA through investment in these countries.  Acco rding to the authorities, there is an increasingly 
favourable international environment for Chinese Ta ipei to negotiate FTAs with its major trading 
partners. 
28. As regards multilateral work on Regional Trade Agreements (RTAs), Chinese Taipei supports 
the WTO Transparency Mechanism for RTAs;  it cons iders that the mechanism's factual presentations 
help Members to acquire a more comprehens ive understanding of RTAs-related issues.  The 
authorities believe that this mechanism might prevent RTA proliferation from undermining the 
multilateral negotiations. WT/TPR/M/232/Add.1 
Page 28  
 
  Question:
 
  According to the WTO Secretariat Report on para 27 until para 34, Chinese Taipei has signed 
several preferential trade agreements including on th e regional, plurilateral a nd bilateral level. Could 
Chinese Taipei explain whether social and labour is sues are addressed within the regional, plurilateral 
and bilateral trade agreements mentioned in para 27 until 34, and if so, how?  
 
Answer:  
We have signed FTAs with five Central American countries. Our FTA with Nicaragua contains a 
labor chapter that accommodates a broad spectrum of  labor principles. These principles include:  
- Freedom of association  
- The right to bargain collectively  
- The right to strike  - Prohibition of forced labor  
- Labor protections for children and young persons  
- Minimum employment standards  - Elimination of employment discrimination  
- Equal pay for women and men  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
Page 34, para 3 a nd Page 45, para 39
 
 
3. Customs clearance procedures have remained expeditious and electronically operated; since 
2007, "excellent" importing/exporting businesses (i .e. those whose trade performance attains a 
prescribed amount), have benefited from more exclus ive trade facilities.  Additional charges imposed 
on imports and exports, such as a trade promotion service fee, and harbour service dues, remain unchanged.  Harbour-service dues on domestic trad e remain 60% lower than those for overseas 
routes, which require costlier equipment and ser vices for large international cargo freighters.  
39. Customs continues to collect fees for certain  services, including a special supervision fee, 
cargo examination fee, customs sealing fee, escorting fee, certificate issuance fee and bonded 
warehouse stocktaking charge;  no duty drawback service charge (section (3)(v)) has been levied 
since 25 July 2006.  Fees have remained unchanged.  
Questions:
 
 
 We seek clarification on the objectives of these fees (para 39) imposed on exporter and 
importer.  
 
Answer:  
All the fees are collected by  Customs according to extra services rendered. These fees are 
commensurate with the cost rend ered and not served for fiscal purpose. 
 
 Are the fees charged commensurate with services pr ovided? Is there any plan to remove such 
fees?  
 
Answer:  
Yes. All fees are commensurate with services provid ed. All fees charged are based on the user-pays 
principle, and does not represent an indirect protect ion to domestic products, or taxation on imports 
or exports for fiscal purposes. To take the trade pr omotion fund as an example, the fee collected was 
assessed on both exporters and importers without discri mination. The services provided under this 
fund include trade promotion projects, assistan ce during incidences of unfair trade practices and  WT/TPR/M/232/Add.1 
 Page 29 
 
 
  programs for the protection of intellectual property rights. There is a review process to adjust the 
fees, we currently have no plan to remove such fees.  
 
Page 34, para 4 a nd Page 46, para 45  
 4. Since its previous Trade Policy Review, Chinese Taipei has expanded slightly the scope of its 
import bans to 63 ten-digit HS items (as of Oc tober 2008); 24 items have remained subject to 
non-automatic import licensing.  There are no quantitative import restrictions.   
45. Since 2004, Chinese Taipei has submitted only one WTO notification on import licensing 
procedures (in 2009); according to the authorities,  this was for internal "technical reasons". 
Question:
 
 
 We seek clarification on the list of the 63 ten digit HS items under import ban. Is there any plan to reduce such bans?  
Answer:  
The list of the 63 items under import ban involves main ly products such as narcotics, toxic chemicals, 
hazardous wastes, whale shark, and HCFC (hydro chlorofluorocarbon) compounds which are subject 
to trade restrictions under international agreements . We adopt those measures in order to protect 
public morals and human life or health. Therefore,  the import ban falls in line with our accession 
commitment and GATT Article XX. We have no plan to reduce such ban at the present stage.   
 
 We seek further clarification on the ph rase “for internal technical reasons”. 
 
Answer:  
We have since 2004 submitted only one WTO notifica tion on import licensing procedures in 2009. 
This is solely the result of intergovernmental coor dination difficulties. Howev er, we place importance 
on the WTO transparency mechanism. Therefore, after the settlement of the aforementioned internal 
technical reasons, we consolidated all the c hange regarding our import licensing procedures and 
their corresponding governing regulations from 2004  to 2008, and submitted notification to the WTO 
in August 2009 (see WTO document G/LIC/N/3/TPK M/2/Rev.1). Our notificatio n has been considered 
by Members at the meeting of the committee on import licensing held in April 2010.  
Page 34 and 35, para 5 and 6
 
 
5. Exemptions and, on a case-by-case basis, draw backs are used in order to reduce, if not 
eliminate, the extent to which import tariffs levied  on raw materials (and intermediate goods) used in 
the production of exports feed through to become  implicit taxes on exports;  such tariff relief 
measures tend to increase the complexity of the border  taxation.  Similarly, rebates of internal sales 
taxes are used to facilitate trade by ensuring that exported goods are not subject to double taxation (in 
both Chinese Taipei and importing countries). 
6. A global market expansion plan in place sin ce end 2008, includes discounted interest rates for 
loans; it was intended to aid exporters facing dec lining orders from oversea s.  Various forms of 
assistance, including subsidies for production and con sequently trade, continue to be provided for 
agricultural, fisheries, and industrial products a nd activities.  Chinese Taipei has not notified any 
export subsidies to the WTO. WT/TPR/M/232/Add.1 
Page 30  
 
  Questions:
 
  We seek further details on the application and system of the drawbacks, rebates and loans 
provided to exporters. 
 
Answer:  
Drawbacks and Rebates 
 
In accordance with Paragraph 1 of Article 63 of the Customs Act, customs duty paid on raw materials 
used in the manufacture of goods intended for export is refundable, following exportation of the finished products according to the criteria for th e raw materials in the quantity required for normal 
production. That is to say, the customs duty draw back is calculated based on the quantity or the 
damaged rate of the materials used in the m anufactured goods. Therefore, it is necessary for the 
exporter to provide required documents and evidence for claiming the duty drawback.  
 
The Customs calculates the amount of duty drawback according to the related regulations based on 
the quantity of the materials used in the manufacture of the export products. The exporter is required 
to complete the application form for the duty drawback of export goods. The key items in the 
application include the description of the material, th e detail of the import declaration of the imported 
material, the name of the importer of the material, the quantity of the material used in the exported 
goods, the amount of duty paid per unit, the amount of drawback  claimed. 
 Loans provided to exporters 
 
The global credit crunch following the global financial storm in 2008 has made it very difficult for 
our exporters to obtain credit from international  financial markets, and the cost of capital was 
suddenly to rise. These extremely unfavourable circu mstances have significantly affected our export 
activities.  
 
To address the global crisis, we drew up a global market expansion plan named the “New Cheng Ho Plan”. This plan aims to assist businesses in fi nding export opportunities. It provides, among others, 
export credit 122 insurance and export loans to export ers.  Those measures ar e short-term, temporary 
and suitable for any industry and applied fully in compli ance with the provisions of the Agreement on 
Subsidies and Countervailing Measures.  Interested exporters can file applications to the Export-
Import Bank. 
 
 Are there any plans to redu ce the subsidies provided for exporters and manufacturers under 
the global market expansion plan? 
 
Answer:  
Regarding the “New Cheng Ho Plan”, as we me ntioned before (Please refer to the answer to 
Question 10), measures adopted under this plan are short-term, temporary and suitable for any 
industry and applied fully in compliance with th e provisions of the Agreement on Subsidies and 
Countervailing Measures.  Most of the measures are planned to cease at the end of 2010.  Page 36, para 13
 
 13. As from 2007, an exporter or importer (including publicly-owned firms) whose trade 
performance in the preceding year has reached a prescribed amount qualifies as an "excellent" 
importing/exporting business.  Benefits include:  be ing listed in a BOFT directory; awards;  reduced 
(or eliminated) service fees, and preferential treat ment for "special-case" services available from 
TAITRA (section (3)(vii));  a higher line of credit,  in conformance with relevant Ministry of 
Economic Affairs (MOEA) regulati ons on extension of credit;  and specific certification marks.  WT/TPR/M/232/Add.1 
 Page 31 
 
 
  Questions:  
  Please clarify on the words “prescribed amount” and how is it determined.  
Answer:  
The “prescribed amount” shall be publicly announced by the MOEA. The amount is determined by 
the increase or decrease proportion of the growth rate of foreign trade and the change of overall 
economic and trade environment in the previous year. It is publicly announced in the middle of Jan. 
every year in the MOEA Bulletin.    
 We seek better understanding of the benefits pr ovided especially on loans and line of credit. 
 
Answer:  
According to BOFT regulation of “Guidelines on l oan for enterprises to promote their brands in 
overseas markets”, the line of credit for every plan c an not reach over 70% of requirement of fund; 
but for the excellent exporters/importers in recent fi ve years, the line of credit can increase to 80% of 
requirement of fund.  
 
Page 36, para 16  
 
16. Customs officers may inspect import (and export) cargoes if they believe that regulations are 
being breached.  Penalties include warnings, fines, and suspension or repeal of privileges.  
Importers/exporters may file a protest with the Customs and/or appeal.  Between 2006 and 2009 
(October), a total of 17,519 seizure cases invol ved merchandise worth US$257.7 million, consisting 
mainly of electronics and electric goods, agricultu ral and fishery products, chemicals, and gold and 
silver coins, shipped mainly from:  China;  Hong  Kong, China;  Singapore;  Malaysia;  and Japan.  
The main reasons for smuggling are price differen ces (electronics, electric goods, agricultural and 
fishery items) and import controls or prohibitions ( illicit drugs, endangered species, counterfeit items). 
Questions:  
  We seek clarification on the appeal system a dopted by Chinese Taipei. What are the rights of 
the importers and exporters? 
  What is the time to process such appeals?  
Answer:  
According to the Customs Anti-Smuggling Act, wh ere the person in question does not agree with the 
relevant disposition, he or she may, within 30 days from the date of receipt of the disposition notice, 
file a written protest in given format against Customs for review.  
2. Customs shall make a determination of review on the protest within two months from the date 
of receipt of a protest, and notify the person dis posed; where necessary, the term may be prolonged 
once for no more than two months. Where the person disposed does not agree with the determination 
made by Customs, he or she may file an appeal  and administrative proceeding according to relevant 
laws. 
  Does Chinese Taipei apply risk management  system? Does the system follows relevant 
international standards and practices including th e Revised Kyoto Convention and the WCO Risk 
Management Guideline as a basis for its risk management procedures?  
 WT/TPR/M/232/Add.1 
Page 32  
 
  Answer:  
Yes. Our Customs has applied risk management system and has followed relevant international standards and practices including the Revised Kyoto Convention and the WCO Risk Management 
Guideline.  
Page 59, para 93
 
 
93. During the period under review no changes we re made to Chinese Taipei's main legal 
instruments regulating standardization and inspecti on, e.g. the Standards Act and the Weights and 
Measures Act.  The Commodity Inspection Act was re vised in 2007 and its changes mainly involved:  
the use of risk management princi ples for pre-market inspection to facilitate trade;  the imposition of 
obligations on distributors not to display or sell pr oducts not complying with inspection requirements;  
the imposition of obligations on business operators to  notify incidents caused by their products;  and 
adjustment of penalties.  The Bureau of Sta ndards, Metrology and Inspection (BSMI), under the 
Ministry of Economic Affairs, remains in charge of, inter alia, the devel opment and promotion of 
standards;  commodity inspections in accordan ce with mandatory technical regulations;  and 
voluntary product and management systems certifi cation.  The BSMI has concluded cooperation 
arrangements with 34 organizations in  24 countries.  It is also responsible for the full implementation 
of the Mutual Recognition Agreement on Electro-Ma gnetic Compatibility, and is a signatory to the 
International Committee of Weights and Measur es Mutual Recognition Arrangement.  The BSMI 
participates in APEC and the Organisation Interna tionale de Métrologie Légale (OIML) and is the 
enquiry point under the WTO Agreement on Technical Barrier to Trade. 
Question:  
 
 Could Chinese Taipei list down the types of  cooperation arrangements that have been 
concluded with the above mentioned 24 countries? 
 
Answer:  
3. The cooperation arrangements that the BSMI c oncluded with other countries mainly involve 
co-registration cooperation on management syste m certification, product marks, technical 
cooperation, regulatory cooperation and cooperation for general purposes.  
Page 59 and 60, para 95 and 96  
 
95. Domestic standards are voluntary, except for those designated as tec hnical regulations.  At 
end-March 2009, there were 14,329 domestic standa rds in Chinese Taipei (13,981 in October 2005), 
of which 221 (1.5%) were designated as technical re gulations.  At the same time, 18% (25% in 2005) 
of domestic standards were harmonized with inte rnational ones in 2009 (Table III.7).  The BSMI 
adopts relevant international standards when the sc ope, grade, condition, and level of application are 
appropriate for domestic circumstances.  All sta ndards newly introduced between 2005 and 2009 were 
harmonized with existing international ones;  th ese standards pertain to engineering (railway, 
nuclear), environmental management, domestic wares, and information and communication. 
 
96. Mandatory technical regulations are governed by the relevant authorities under various laws 
and regulations; these authorities issue conformity certificates.  Technical regulations are mainly 
applied to certain chemical products, electrical products, and electronic and mechanical products 
(Table III.7).   WT/TPR/M/232/Add.1 
 Page 33 
 
 
  Questions:  
  The Secretariat report states that “Mandatory technical regulations are governed by the 
relevant authorities under various laws and regulations; these authorities issue conformity 
certificates.”; (…)”. Who are the relevant authorities that issue the conformity certificates? 
 
Answer:  
The major regulatory authorities are Environmenta l Protection Administration (for environment 
requirements); Council of Agriculture (for agricu ltural products); Department of Health (for 
pharmaceuticals, medical devices, cosmetics, food products, etc.);  National Treasury Agency, 
Ministry of Finance (for liquors); Construction and Planning Agency, Ministry of Interior (for 
construction products); Ministry of Interior (for fire-fighting equipment); National Communications 
Commission (for telecommunication equipment); Depa rtment of Railways and Highways, Ministry of 
Transportation and Communications (for motor vehic les); Bureau of Energy, Ministry of Economic 
Affairs (for energy efficiency requirements); Depar tment of Commerce, Ministry of Economic Affairs 
(for commodity labelling) and Bureau of Standards, Me trology and Inspection (for  safety of consumer 
products), Ministry of Economic Affairs. 
 
 What do they use as a basis for determining their criteria for adoption of standards and 
issuance of certificates?  
Answer:  
4. The BSMI, observing Annex 3 to the TBT Agreement, uses international standards as the 
basis for developing national standards. National stan dards are referenced by technical regulations and 
form the basis for issuance of certificates. The ot her regulatory authorities also have transparent 
procedures for adopting technical regulations. 
Page 61 and 62, para 99  
 
99. Proposals by any person, government agency or organization for adopting new domestic 
standards are submitted to the BSMI and reviewed by the Standards Review Council.  Notices of 
proposed technical regulations, standards, and pro cedures for conformity assessment are published in 
the Government Gazette (http://gazette.nat.gov.tw/egF ront/eng/EngIndex.jsp) and are available on the 
BSMI website (http://www.bsmi.gov.tw).  The work programme on domestic standards, as required in 
Annex 3(j) of the WTO TBT Agreem ent, is published in the Standard s Gazette.  Between 1 January 
2005 and mid-March 2010, Chinese Taipei submitted 77 notifications under Articles 2, 5, and 10 of 
the WTO TBT Agreement. 
 
Questions:  
 
 Could Chinese Taipei please explain how the authorities (e.g. WTO Enquiry 
Point/Notification Authority) monitor the creation or modification of TBT technical regulations/conformity assessment procedures in its country in order to determine whether a WTO 
notification is required under the transpar ency obligations of the TBT Agreement? 
 
Answer:  
5. There is an Interagency Working Group on TBT under the Task Force of Global Trade Policy 
Strategy Alliance and Arrangement to m onitor the notification of TBT technical 
regulations/conformity assessment procedures. Th e TBT Interagency Working Group meets three 
times a year and reviews of TBT notifications made  by regulatory authorities under the agenda of the 
meeting. WT/TPR/M/232/Add.1 
Page 34  
 
   When a determination is made, what is the mechanism (e.g. in terdepartmental/inter-
ministerial collaboration) for the preparation of notifications? 
 
Answer:  
The BSMI maintains the operation of the E nquiry Point under the TBT Agreement and provides 
regulatory authorities with  suggestions on the drafting of notifications. 
 
IV. TRADE POLICIES BY SECTOR 
 
Page 90 and 91, para 63 and 64  
 
63. Over the past five years, Chinese Taipei ha s continued to liberalize its services market; for 
example, commercial presence has been liberalized in  some sectors (e.g. financial, environmental, 
health, tourism, and express delivery services), an d regulatory improvements have been made in 
others (professional services, telecommunications, en ergy, insurance, and secur ities).  However, limits 
on non-Chinese-Taipei investment and other restrictions remain in various areas, including basic telecommunications, audiovisual services, and air, road, and maritime transport; while postal services 
have remained entirely closed to  non-Chinese-Taipei participation. 
64. Chinese Taipei aims to increase the productiv ity and international competitiveness of its 
services sector.  Until end 2009, a number of ser vices sectors were thus promoted as "emerging 
industries" and received incentives under the SUI.  In the first half of 2009, new development 
strategies were approved for tourism, medicine a nd healthcare, and cultural and creative industries, 
with the aim of building the services sector into an engine for upgr ading value added, creating jobs, 
and stimulating economic growth.  In light of these objectives, the Government might usefully review 
the formal and informal entry barriers that  are still in place in some services sectors. 
Questions:
 
  In view of the importance of the services se ctor to Chinese Taipei’s economy, is Chinese 
Taipei considering further liberalisation of its services sectors? 
 
Answer:  
The liberalization and opening of all relevant sect ors for foreign investment have been conducted in 
full compliance with our WTO commitments. Furth ermore, we continue to welcome all foreign 
investments which bring know-how and innovative t echnologies to help stimulate the growth of our 
economy and to improve the living standard of our society.  The Investment Commission of the 
Ministry of Economic Affairs (MOEA) is currently  coordinating a general review of the existing 
restrictions on some industrial sectors.  Necessary modification and deregulation will then be made 
public, as soon as this review process is concluded.  In addition, regarding further liberalization of the 
maritime transport service, we are planning to  amend the proportion of foreign investment on 
domestic shipping companies from 33% to less than 50%.  
 
On the other hand, in view of the importance of  the services sector, we give primacy to the DDA 
negotiations to boost the global econom ic growth, and are committed to  cooperate constructively with 
WTO Members to secure a balanced and ambitio us conclusion of the DDA negotiations. 
 
  
   WT/TPR/M/232/Add.1
 Page 35Countries 
Industries Total China Japan South 
Korea Hong 
Kong Singapore Malaysia Vietnam United 
States Netherlands Caribbean 
Sea Other 
countries 
Total 25,305 17,834  155  245  579 734  111  882  1,513  120  2,230  902 
Manufacturing 17,445  14,653  52,055  236  101  401 15  712  647  29  343  256 
Food Manufacturing 545  526  0  0  0  0  5  11  0  0  0  3 
Textile Mills 277  164  0  0  0  0  0  96  0  0  12  5 
Wearing Apparel and Clothing 
Accessories Manufacturing 132  84  0  0  0  0  0  22  0  0  20  6 
Pulp, Paper and Paper Products 
Manufacturing 323  316  0  0  0  0  0  3  0  0  0  4 
Petroleum and Coal Products 
Manufacturing 165  156  0  0  0  0  0  0  9  0  0  0 
Chemical Material 
Manufacturing 827  656  0  0  0  0  0  170  0  0  0  1 
Chemical Products 
Manufacturing 120  110 0.02  0  0  0  3  0.4  0.7  0  0  6 
Medical Goods Manufacturing 312  220  0.5  0  0  0  0  0  91  0  0  1 
Plastic Products Manufacturing 869  857  0  0  0  2  0  2  0  0  2  6 
Non-metallic Mineral Products 
Manufacturing 433  418  9  0  0.001  2  0  0  0  0  3  1 
Basic Metal Manufacturing 1,273  822  0  0  0  0  0  298  0  0  149  4 
Fabricated Metal Products 
Manufacturing 730  514  0.5  0.4  0  0.07  0  19  143  0  3  50 
Electronic Parts and 
Components Manufacturing 5,106  3,853  28  231  78  390  6  2  318  2  90  108 
Computers, Electronic and 
Optical Products Manufacturing 2,934  2,803  2  3  10  6  0  0.5  54  26  10  20 
Electrical Equipment 
Manufacturing 1,586  1,529  7  2  8  1  0.8  13  4  0  11  10 
Machinery and Equipment 
Manufacturing 958  868  4  0  0.2  0.07  0.06  22  25  0  25  14 
Motor Vehicles and Parts 
Manufacturing 229  201  0.2  0  0.2  0  0  25  0  0.3  0  2 
Other Transport Equipment 
Manufacturing 144  128  0  0  0.3  0  0  6  1  0  0  9 
Manufacturing Not Elsewhere 
Classified 181  168  0.2  0  4  0  0.9  6  0.7  0  0.3  1 
Other Manufacturing 301  260  0.6  0  0.4  0  0  17  0.1  0  18  5 
Table (cont'd)   
  WT/TPR/M/232/Add.1 
Page 36 Countries 
Industries Total China Japan South 
Korea Hong 
Kong Singapore Malaysia Vietnam United 
States Netherlands Caribbean 
Sea Other 
countries 
Services 7,696  3,042  103  9  474  330  96  165  864  91  1,886  636 
Accommodation and Eating-
Drinking places Wholesale and 
Retail Trade 1,856  1,242  22  4  87  102  0.04  37  97  76  105  84 
Transportation and Storage 276  89  9  0  19  120  0  0  4  0  2  33 
Accommodation and Food 
Services 149  149  0  0  0.001  0  0  0  0  0  0  0 
Information and 
Communication 670  431  4  0  25  44  0  9  145  0  6  6 
Financial and Insurance 3,499  304  65  4  249  61  67  117  471  2  1,680  479 
Real Estate 86  46  0  0  0  0  0  2  5  8  15  10 
Professional, Scientific and 
Technical Services 294  241  0  0  2  0  0.03  0  10  0.07  34  7 
Support Services 107  65  0  0  24  0.5  0  0  0  0  10  8 
Human Health and Social Work 
Services 59  42  0  0  8  0  0  0  8  0.1  0  1 
Arts, Entertainment and 
Recreation 54  50  0  0  0  0  0  0  0.4  0  4  0 
Other Services 646  383  3  0  60  2  29  0.5  124  6  32  7 
 
  WT/TPR/M/232/Add.1 
 Page 37 
 
 
  THE UNITED STATES  
 
GOVERNMENT ’S REPORT :  WT/TPR/G/232 
 
Page 16, paragraph 52 :  In the last sentence of the paragr aph, Chinese Taipei states that "no 
safeguard or countervailing measures have been  taken since its accession to the WTO."  The 
Secretariat Report, however, states that "The Ministry of Finance implements safeguard measures by imposing additional tariff on 15 agriculture products, including peanuts, sugar, and garlic."  Please 
provide further explanation of these tw o seemingly contradictory statements.  
 
Answer:  
The meaning of the statement in the last sente nce of the paragraph “no safeguard or countervailing 
measure has been taken since its accession to the WTO” is that we have not taken any measure in 
accordance with the rules of th e Agreement on Safeguards.  The meaning of the statement in the 
Secretariat Report “[t]he Ministry of Finan ce implemented safeguard measures by imposing 
additional tariffs on 15 agriculture pr oducts...” is that we imposed additional tariffs on 15 agriculture 
products according to the Special Safeguard Provisio ns of Article 5 of the Agreement on Agriculture.  
Such distinction has also been used by the Secret ariat in its Report in paragraphs 49 and 50 .   
 
SECRETARIAT ’S REPORT :  WT/TPR/S/232 
 
Summary 
(2) T RADE POLICY FRAMEWORK  
 
Page x, paragraph 9 : We appreciate the effort Chinese Taipei has made to meet “…virtually all its 
notification requirements under the WTO Agreements on time...” However, we would like to know if 
Chinese Taipei intends to notify: Department of  Health, Executive Yuan Order January 22, 2009 
Wei-Shu-Yao No. 0980305527, which c overs advertising claims for co smetics.  If so, when does the 
government plan to notify it?  Also, does Chinese Taipei plan to notify its Chemical Registration 
programs including the Existing Chemical Nomination (ECN), the New Chemical Nomination (NCN), and the requirements/documents for nomina ting chemical substances during the interval 
period between the ECN and NCN, as well as to in clude a list detailing the sc ope of products required 
to be registered outside of pure chemical substa nces?  When does the government plan to notify these 
programs?  
 
Answer:  
Concerning Wei-Shu-Yao No.0980305527 issued by Department of Health, it is the direction for 
adequate/inappropriate usage  of the cosmetics advertising claims. The direction is applied as pre-
audit cancellation to cosmetics advertisement, wh ich provides reference to the domestic cosmetics 
sellers while doing their advertising campaigns . Therefore, there's no impact on import/export 
activities among members (parties).  In many members’ management schemes, the developm ent of a national existing chemical substance 
inventory is the essential preparato ry task prior to the implementation of a new chemical substance 
notification (NCN). Like those members, our existin g chemical substance nomination (ECN) program 
is the procedure to prepare the inventory and the deadline of nomination is by December 31st, 2010. 
Currently, the ECN regulation is in the process of amendment.  Should there be a gap of interval 
period between the ECN program and NCN implem entation, detailed requirement/documents for 
nomination beyond the current deadlin e will be announced by the int eragency coordination taskforce.  
There is no firm timetable, yet, for notifying such program.  Within the development of national 
chemical management scheme, there is no plan fo r registering chemical products other than the 
substances.  However, there are existing regulati ons for chemical product registrations to be 
complied with, such as cosmetics, plant pr otection agent, food addictives, etc.  WT/TPR/M/232/Add.1 
Page 38  
 
  II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES  
(3) S
TRUCTURE OF TRADE POLICY FORMULATION , IMPLEMENTATION AND 
EVALUATION  
(i) Executive Branches of Government 
 Page 18, paragraph 12
 explains how various government mini stries coordinate the development and 
implementation of trade policy.  Do these ministries include those with responsibility for labor issues?  
 
Answer:  
The Secretariat report has described our mechani sms of trade policy formulation in Chapter II 
paragraph 4 to 14. Regarding the trade policy form ulation mechanism described in paragraph 12 on 
page 18, the Committee of Global Trade Policy Stra tegy Alliance and Arrangement, the high-level 
platform for inter-agency policy coordination, was est ablished with a view to improving the efficiency 
of trade policy decision-making. The vice premier is the convener of this committee which consist of 
10 ministers including minister of the Council of Labor Affairs.  The Council is in charge of labor 
administration and responsible for labor policies,  laws and regulations, and related plans and 
programs. The Ministry of Economic Affairs (MOEA) serves as the operational arm of this committee.  
The Task Force under this committee is convened by the vice minister of the MOEA, and the Bureau 
of Foreign Trade serves as the operational arm of this Task Force.  The working groups under the 
Task Force  are generally convened by senio r officials from various bureaux of ministries in charge of 
issues covered by each group. The Committee, its Task Force and the working groups coordinate 
views from different sectors and make decisions th rough inter-agency meetings held as necessary.  
 
(8) I NVESTMENT REGIME  
(ii) Cross-strait investment    
Page 32, paragraph 47:
  The Secretariat’s report states th at "At end-July 2008, the executive 
approved a proposal to relax non-Chinese-Taipei company listing requirements and to allow China's qualified domestic institutional investors (QDIIs) to i nvest in the local stock market, with a view to 
strengthening the competitiveness of Chinese Taipei  capital markets and to develop Chinese Taipei 
into an Asia-Pacific asset management and fund-ra ising center."  How is this proposal different 
from the amended Financial Supervisory Commissi on regulations that took effect in 2010, which 
allows China's QDIIs to invest in Chinese Taipei's securities and fu tures market, with a combined 
ceiling of US$500 million for all PRC QDIIs? 
 
Answer:  
6. On 30 April 2009, the FSC issued the regulations  governing securities investment and futures 
trading in our area by investors from China and ope ned the securities market to qualified institutional 
investors approved by the competent authority in China (QDII). In addition, the FSC announced an 
investment ceiling of US$500 million on 15 Jan. 2010  for QDIIs based on the cross-strait policy. 
Therefore, the aforementioned regulation promulgate d by the FSC is in accordance with the proposal 
approved at end-July 2008. 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(iii) Tariffs 
(b) Tariff Rate Quotas 
 
Page 40, Paragraph 28 (Footnote 21) :  The referenced footnote suggests there was only a “delay” in 
filling the 2008 TRQ for rice, whereas it is our unde rstanding that the 2008 quota remains partially 
unfilled.  Please clarify whether Chinese Taipei intends to fill its “delayed” quota.  Similarly, what is 
the status of the 2007 quota? 
  WT/TPR/M/232/Add.1 
 Page 39 
 
 
  Answer:  
As a member of the WTO, we are committed to implementing our rice TRQ in accordance with WTO 
rules.  The tender for 11,500 metric tons of 200 8 USA quota was awarded in 2010.  We have already 
completed the tendering procedures for the quota of 2007 and 2008 respectively in compliance with 
our WTO commitment fully providing market access opportunities.  
(v)  Import prohibitions, restrictions, and licensing 
 
Page 45, paragraph 41
:  The Secretariat Report states that import prohibitions, restrictions, and 
licensing measures “are stipulated in the Regulations Governing Import Commodities and the 
Regulations Governing Export and Im port of Strategic High-Tech Commodities.”  It also states in the 
same paragraph that there is a “Consolidated List  of Commodities Subject to Import Restriction (or 
the Negative List)” and a “List of Commodities Assi sted by Customs for Import Examination,” and 
that these lists have been in place “since 1 July 1994.”   On page 46, paragraph 45, the Report states 
that, “[s]ince 2004, Chinese Taip ei has submitted only one WTO no tification on import licensing 
procedures (in 2009)…”  Footnote 39 to that para graph further clarifies that the notification, 
G/LIC/N/3/TPKM/2/Rev.1, was made on 31 August 2009.    Please describe in more detail the licensing proc edures contained in the Regulations Governing 
Import Commodities and the Regulations Governi ng Export and Import of Strategic High-Tech 
Commodities.  Are they the same procedures as t hose notified by Chinese Taipei in August 2009?   
 
In November 2009, Chinese Taipei informed the Unite d States that certain U.S. beef products would 
be subject to import licensing procedures.  These pr ocedures have been further modified since the 
beginning of 2010.  Given that Chinese Taipei’s most recent import licensing notification was in 
August 2009, the United States does not believe th at any of these beef-related import licensing 
procedures were notified to the WTO.  Please confir m.  Does Chinese Taipei intend to notify these 
import licensing procedures?  If so, when?  Does th e import licensing for certain U.S. beef products 
fall within any of the regulations discussed in th e Secretariat’s Report at pages 45-46, paragraphs 
41-43? For example, are there other agencies aside from BOFT that must approve an application for a license to import beef?  If so, please explain.  
Answer:  
The licensing procedures notified by us in Augus t 2009 are those contained in the Regulations 
Governing Import of Commodities, which is different from the licensing procedures contained in the 
Regulations Governing Export and Import of High-T ech Commodities. Currently we do not have a 
plan to notify licensing procedures of High-Tech Commodities to the WTO.  U.S. beef or beef products currently subject  to import licensing procedures pursuant to the 
Regulations Governing Import of Commodities are offal of bovine animals other than internal organ, 
skull, brain, eyes and spinal cords.   In view  of the import licensing measures is a special 
arrangement  by the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  for the  
countries or areas where cases of Bovine Spongifo rm Encephalopathy (BSE) have ever occurred, we 
have no plan to notify these import li censing procedures to the WTO.  
 
As the offal of bovine animals raise certain food safety concerns, Bureau of Foreign Trade (BOFT) of 
the Ministry of Economic Affairs (MOEA) will invite  comments from the Department of Health before 
the issuance of import permit. 
 
(viii) State-trading activities 
 
Page 50, paragraph 61
: The Secretariat’s report states: “accord ing to the Chinese Taipei legislation 
and authorities, a government-owned enterprise is a company that retains de jure monopoly rights and WT/TPR/M/232/Add.1 
Page 40  
 
  at least 50% of its share are owned by the government .”  The same paragraph of the report also states: 
“upon the loss of its statutory monopoly rights or ot her special rights, and/or reduction of the number 
of shares held by the public sector, a government -owned enterprise is considered privatized, and 
therefore not subject to WTO notification.”   
Please explain what constitutes de jure monopoly rights by an enterprise?  
 
Answer:  
According to Article 5 of Fair Trade Act, the t erm "monopolistic enterprise" as used in this Law 
means any enterprise that faces no competition or  has a dominant position to enable it to exclude 
competition in a relevant market. Two or more enterp rises shall be deemed monopolistic enterprises if 
they do not in fact engage in price competition w ith each other and they as a whole have the same 
status as the enterprise defined in th e provisions of the preceding paragraph. 
 Article 5-1 of the Act further define an enterprise s hall not be deemed as a monopolistic  enterprise if 
none of the following circumstances exists:  
1. the market share of the ent erprise in a relevant market rea ches one-half of  the market;  
2. the combined market share of two enterprises in  a relevant market reaches two-thirds of the 
market; and  
3. the combined market share of  three enterprises in a relevant market reaches three-fourths of 
the market.  
 Under any of the circumstances set forth in th e preceding paragraph, where the market share of any 
individual enterprise does not reach one-tenth of th e relevant market or where its total sales in the 
preceding fiscal year are less than one billion New Taiwan Dollars, such enterprise shall not be 
deemed as a monopolistic enterprise. 
 An enterprise exempted from being deemed as a monopolistic enterprise by any of the preceding two 
paragraphs may still be deemed a monopolistic enterp rise by the Central Competent Authority if the 
establishment of such enterprise or any of the go ods or services supplied by such enterprise to a 
relevant market is subject to legal or technical restraints, or there exists any other circumstance 
under which the supply and demand of the market are affected and the ability of others to compete is 
impeded.  
Please explain whether there were any majority or wholly government-owned enterprises which were 
not notified to WTO in accordance with Chinese Ta ipei’s obligations, on the basis that such 
enterprises do not enjoy de jure monopoly rights. 
 
Answer:  
Our trade in sugar has been totally liberalized since 2005.  The sugar corporation, a government-
owned firm, does not have any monopoly rights to deal  with sugar trade since then.  Alcohol and 
tobacco production were also opened to private investment from 1 January 2002 and 1 January 2004, 
respectively.  The tobacco and liquor corporation was constituted as an ordinary company that 
engages in the manufacturing and sales of toba cco and liquor commencing from 1 January 2002 and 
holds no exclusive rights.  These government-owned  enterprises were not notified to WTO because 
they do not enjoy de jure monopoly rights. 
 
Page 51, paragraph 62 :  The Report states that Chinese Taipei ’s Agriculture & Food Agency (AFA) 
undertook about 84% of total rice imports in 2006.   Why was this year selected for presentation 
versus using more recent years? 
  WT/TPR/M/232/Add.1 
 Page 41 
 
 
  Answer:  
Our fill rate of rice TRQ was 100% in 2006. We  have requested the WT O Secretariat to amend 
relevant information.  
(4)
  M EASURES DIRECTLY AFFECTING PRODUCTION AND TRADE  
(i) Taxation and tax-related assistance  
Page 56, paragraph 83
:  In light of the statements in para graph 83 of document WT/TPR/S/232-04 
that Taiwan Mijui rice wine is both a cooking ingred ient/medicinal tonic as well as a major alcoholic 
beverage (distilled spirit )consumed by “many low income people”, what steps have the Chinese 
Taipei authorities taken to ensure:  That the domestic rice wine is used solely as a c ooking  ingredient and that Mijui rice wine does not 
compete with or substitute for like imported alcoholic beverages; and,  
 
Answer:  
The rice wine is predominantly used for cooking and production of medicinal tonics in the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu. Furthermore, as rice wine and other 
distilled spirits have distinct differences including , but not limited to, end-use, consumers’ tastes and 
habits, pricing and marketing policies, distribution channels, rice wine and other distilled spirits are 
not competitive or substitutive in relation.  
That the domestically produced alcoholic beverag es are taxed at the same rate as like imported 
alcoholic beverages so as to avoid less favorable  internal taxation and assure equality of competitive 
conditions between like domestic and foreign  products? 
 
Answer:  
The Tobacco and Alcohol Tax Act entered into force at  the same time as our accession to the WTO in 
2002. Alcohol products both domes tically produced and imported, including distilled spirits, were 
taxed at the same rate of NT $185 per litre since 2 003.  Later, the tax rate for distilled spirits was 
changed to NT $2.5 per litre per degree of alcohol co ntent since 1 June 2009.  The same tax rate has 
been applied to both domestic and impo rted distilled spirits since 2003. 
 
Page 57, paragraph 85:  The Secretariat report states that certain businesses are eligible for tax 
incentives, including “‘newly-emerging, important and strategic’ industries.” Further, paragraph 89 
states that “… the authorities have provided tax incentives (section (4)(i)(c) and Chapters II and IV) and funds for development of ‘newly-emerging, im portant and strategic’ industries, for regional 
development, and R&D in numerous areas including new leading-industries, and oil and natural gas 
exploration.” Paragraph 86 
of the Secretariat’s report states that “(a)nnual estimates of tax revenues 
forgone as a result of these and other tax measures aimed at promoting the upgrading of the industry 
and encouraging exports are publicly available….How ever, no data are available on the estimated tax 
revenue forgone as a result of individual tax incenti ves, or on the cost effectiveness of various tax 
incentives.”  
Please provide further information about tax measure s administered by Chinese Taipei that are aimed 
at encouraging exports.  Please also explain these measures in light of Chinese Taipei’s obligations 
under Article 3 of the Subsidies Agreement.   
 
Answer:  
All our tax measures administered are levied in comp liance with the guidance provided in the ASCM.  
 WT/TPR/M/232/Add.1 
Page 42  
 
  (iv) Standards and other technical requirements 
(b) Standards, technical requirements, and inspection 
Page 61, paragraph 97
: We understand that through the Commodity Inspection Act, Chinese 
Taipei’s inspectors have interprete d article 4.1 of the Commodity Labelling Act to require individual 
clothing items, such as socks sold in a multipack , to be individually labelled with a hang-tag 
identifying the country of origin.  Please explain why the government believes that the labelling of 
each individual item of clothing within a multi- pack is necessary when those items are already 
enclosed in a package with a country of origin la bel?  Also, the Secretariat states, “The commodity 
inspection standards are determined and identified in  accordance with the obligations in international 
conventions and in reference to domestic st andards.” Please identify the international 
conventions/standards/practices that recommend labelli ng individual items sold within a multipack.  
 We understand that Chinese Taipei’s inspectors ha ve interpreted article 9.4 of the Commodity 
Labelling Act, which requires expiratio n date labelling, to be applied to products such as furniture and 
electronics. Please explain the safety objective, or other objective for requiring furniture and 
electronics to have an expiration date label. 
 
Answer:  
The “Commodity Labeling” set forth in Section 1, Article 4 of the Commodity Labeling Act refers to 
the labeling affixed to the commodities, inside and outside the packing, or in the instructions. 
 A large number of hosiery products imported to ou r market via a third country or place are only 
affixed with simple labeling and the place of origin  is often missing.  Many of these products labeled 
as “made by our industry” are actually manufactu red in another country or place and this is an 
infringement on the interests of the consumers and th e interests including reputations of local hosiery 
makers.  To prevent false labeling on imported hos iery products, considering the infeasibility of 
sewing such labeling on each item, it is imperative that all hosiery products, manufactured locally or 
imported, be affixed with labeling via hangtags, cards, and box-packaging, which are not easy to be replaced, and the place of origin be specified as  prescribed in the “Clothes Labeling Standards”. 
 
The “expiration date” or “term of validity” spec ified in Section 4, Artic le 9 of the Commodities 
Labeling Act is intended for products  such as toothpaste, exsiccators, deodorants and glue that may 
deteriorate or lose their function due to factors su ch as humidity or passage of time. For products 
such as furniture and electronic equipment to whic h expiration dates normally do not apply, labeling 
of expiration date or term of validity is not necessary.  
 
Page 61, Paragraph 98 :
 The second sentence of paragraph 98 indicates that the CNS mark is 
voluntary.  Please confirm whether applying for the CNS mark is voluntary, or if compliance with 
domestic standards is voluntary.   Furthermore, if  a company has not applied for the CNS mark, are 
there other methods that companies can use to pr ove that their products comply with mandatory 
domestic standards?  If so, what are these methods?  If not, will the government allow the products of 
a particular company to be imported and sold in  Chinese Taipei?  Furthermore, we understand that 
Chinese Taipei’s Existing Chemical Nomination program is voluntary.  Please clarify whether or not a company can import and sell a chemical substance if  it is not registered under the Existing Chemical 
Nomination.  If registration is required, what is the deadline? 
 
Answer:  
The CNS Mark is voluntary and applying for the CN S Mark is therefore volunt ary. Where a CNS is 
referenced by technical regulations, it becomes mandatory.  Currently, 221 CNS are now referenced 
by technical regulations, and all of them are ali gned with international standards.  In order to 
demonstrate compliance with technical regulations , for products governed by the BSMI, there are 
four conformity assessment procedures, i.e. bat ch-by-batch inspection, registration of product  WT/TPR/M/232/Add.1 
 Page 43 
 
 
  certification, monitoring inspection and declaration of conformity, which will be designated to each 
product depending on its risk. Information on pro ducts announced to be subject to mandatory 
inspection, the applicable conformity assessment procedures and the inspection standards can be 
found at the BSMI’s website at:  http://c ivil.bsmi.gov.tw/bsmi_pqn/index.jsp?lang=en.  
 
The ECN program is the preparatory task for fu ture new chemical substance notification (NCN) 
scheme.  The activity of import and sell of a chemic al substance is NOT affected by the nomination 
program until the NCN enters into force.  Chemical  substances that have not been accepted in the 
national inventory may be subject  to the ECN requirements.  We encourage eligible foreign 
nominators to participate in the ECN program. 
 
(b) Sanitary and phytosanitary arrangements 
 
Pages 63-64, paragraph 107 :  The Report states that Chinese Taipei has delayed implementation of 
its proposed maximum residue limit (MRL) for ractopa mine, which had been notified to the WTO.  
Please provide an update on the status of the pr oposed ractopamine MRL.  Among other things, 
please explain whether the proposed MRL remains delaye d or whether, in fact, it has been rescinded. 
 
Answer:  
The Codex Alimentairus Commission has not yet final ised the MRL for Ractopamine.  We are closely 
following the Codex Commission’s deliberations an d are collecting relevant information, including 
risk assessments from the EU, China and other countries. 
 
Pages 62-64 (omission):   The Secretariat Report does not provide any information on the steps 
Chinese Taipei is taking to revise its quarantine re gulation for imported poultry meat as previously 
notified to the WTO.  Of specific U.S. interest is the status of Chinese Taipei’s plans for lifting 
several state-wide suspensions imposed on imports of U.S. poultry meat following detections of low-
path Avian Influenza, and its efforts toward adop ting OIE-consistent regulation.  Please clarify the 
status of Chinese Taipei’s plans to lift several state-wide suspensions imposed on imports of U.S. poultry meat following detections of  low-path Avian Influenza.  Pl ease also explain Chinese Taipei’s 
efforts to adopt OIE-consistent regulation.  
 
Answer:  
The recommendations of OIE and the concerns raised by the U.S. regarding measures related to the 
Low Pathogenic Notifiable Avian Influenza (LPNA I) have been taken into consideration in the 
process of amending our Quarantine Requirements for the Importation of Poultry Meat.  The 
administrative process is currently underway.   
(v) Intellectual property rights (a) Patents 
 According to page 67, paragraph 120
, Chinese Taipei authorities were working to amend the Patent 
Act. What is the expected timeline for completion?  
Answer:  
As with most democratic system, amendments to  any law in the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu have to be approved  by the legislative branch. This is a difficult 
procedure and strictly adhering to any timeline is al most impossible. The Patent Act amendment is on 
the priority list at the legislature; our executi ve branch has worked closely with the legislature and 
will continue endeavoring to enc ourage the progress of the amendment in the hope that the whole 
legislation will be concluded before the end of this year.   
  WT/TPR/M/232/Add.1 
Page 44  
 
  (d) Trademarks and geographical locations 
 
Page 68, paragraph 125:  
 Chinese Taipei indicates that amendments to 109 articles of the Trademark 
Act are being drafted.   Will these amendments  be available for comments?   If so, when?  
 
Answer:  
The amendments to the Trademark Act were published on TIPO’s website to co llect feedback from all 
sectors in November 2007. Since 2008, TIPO has held 6 public hearings and 6 seminars to review the 
draft with judges from the IP Court, IP experts,  scholars and trademark agents.  Some representatives 
from foreign government agencies and chambers of comm erce were also invited to participate in each 
of these hearings and seminars to give their comments. 
 After compiling all concrete comments from the public on the amendments, a final version of the draft 
was completed and submitted to the Ministry of Economic Affairs for review on November 30, 2009. 
After that, the draft was submitted to the Executiv e Yuan on March 4, 2 010, which is still under 
review currently. 
 Page 72, Table III.11:
  It appears that the number of cases being adjudicated has decreased in 2008 
and 2009.  Also, the percentage of cases that have resulted in imprisonment has decreased in 2008 and 
2009.  What is the reason for these decreases?  
 
Answer:  
In 2008, the total number of cases adjudicated was 8,003 with a total number of 3,066 defendants, of 
which 1,472 defendants were convicte d and sentenced to prison terms.  In 2009, the total number of 
cases adjudicated was 7,414 with a total number of  2,250 defendants, of which 985 defendants were 
convicted and sentenced to prison t erms.  This decrease is partly due  to the decrease of crime rate 
across the nation.  Moreo ver, the effort by the government in  promoting educational awareness in 
IPR protection has effectively changed the public’s  understanding of and behavior in correct usage of 
IPR. 
 
(vi) Government-owned enterprises 
 
Page 72, paragraph 138 : The Secretariat’s report states: “(f)ollowing approval by the Government, 
privatization is negotiated with a counterpart selected though public invitation.  The authority in 
charge of the government-owned enterprise is responsib le for its privatization. Further, paragraph 139 
of Part III of the Secretariat report states that th e privatization of government-owned enterprises has 
been at a “virtual standstill” in recent years.   
 Please explain the current status of, and future pl ans for, the privatization of government-owned 
enterprises. 
 
Answer:  
Please refer to the answer to Question 5 raised by India.  
 
Please describe the process and criteria used by th e Government for approving privatizations.  
 
Answer:  
Please refer to the answer to Qu estion 5 raised by India.  WT/TPR/M/232/Add.1 
 Page 45 
 
 
  IV. TRADE POLICIES BY SECTOR 
(2) A GRICULTURE , LIVESTOCK , AND FISHERIES  
(i) Border measures 
 
Page 78, paragraph 15:  The Report provides a partial CY 2009 fill rate for Chinese Taipei’s annual 
rice TRQ.  What were the fill rates and reasons for any shortfalls during the period of 2006-2008? 
 
Answer:  
Actually, the TRQ fill-rate of rice reached 100% in 2006. The TRQ fill-rate of rice was 77.9% in 2007 
and 64.9% in 2008. Regarding the shortfalls in fill-rates of 2007 and 2008, we had provided full opportunities for the rice suppliers to enter into the market by re-opening the tenders and allowing 
the bidders to re-submit eligible bids. These steps fu lfilled our commitments to the WTO. In each case, 
the tenders were rejected because their bidding pr ices were higher than our domestic price and were 
also higher than international prices. 
 
 COSTA RICA
 
 
Government procurement 
 
52. During the period under review, the total value of government procurement in Chinese Taipei 
was NT$1.284 trillion, or 10.4 per cent of GDP (Table III.4).  Procuring entities may accord 
domestic suppliers preference over non-Chinese-Ta ipei suppliers in the award of contracts, 
except where prohibited by agreements to which Chinese Taipei is a party.   Chinese Taipei 
became a member of the plurilateral WTO Ag reement on Government Procurement (GPA) on 
15 July 2009.  Upon implementation of the WTO GPA,  a more competitive procurement climate is to 
be installed to:  enhance project quality and innovati on;  provide higher value for taxpayers' money;  
and encourage more transfer of know-how and technology.2  This change coincides with the launch of 
a NT$500 billion stimulus plan, as part of its 12 major infrastructure projects relating to the 
transportation network, industria l development, urban and rural development, and environmental 
protection.  The GPA accession is also viewed as an opportunity for local firms to explore government procurement markets around the world.
3  The authorities indicated that as a result of 
long-term preparatory work involving, inter alia , an e procurement system and training courses, no 
difficulties have been encountered so far in implementing the GPA. 
 
- In what specific type of procurement are domestic suppliers accorded preference? 
 
Answer:  
Pursuant to Articles 17, 43 and 44 of our Government  Procurement Act, domestic suppliers may be 
accorded preferential treatments except otherwise prohibited by treaties or agreements (e.g. 
Government Procurement Agreement of WTO) to whic h we have acceded. For example, offset may be 
applied to a non-GPA covered procurement project. 
 56. Procurement notices, invitations to tender and contract awards are published in the daily 
Government Procurement Gazette (GPG).  The gove rnment procurement information system (GPIS) 
database provides information on legal framework, tendering information for all levels of the 
Government, awarding of bids, and procedures for handling disputes.  An electronic procurement 
system through the Internet is used.
4 
                                                      
2 European Chamber of Commerce, Chinese Taipei, Press Release, 28 November 2008.  Viewed at:  
http://www.ecct.com.tw/inde x.php?option=com_content&task=view&id =298&Itemid=162 [28 April 2009]. 
3 Central News Agency , 8 June 2009. 
4 In November 2009, 8,327 procurement contracts were open for e-bidding through the Internet. WT/TPR/M/232/Add.1 
Page 46  
 
  - Is the electronic procurement system available free of charge to any supplier?  Through what 
website can the system be accessed? 
 
Answer:  
It is free of charge to access our e-procuremen t system for tender notices and awards. The website 
address is http://web.pcc.gov.tw .  Intellectual property 
 115. In accordance with relevant laws and re gulations, both domestic and non-Chinese-Taipei 
applicants for IPR protection receive the same level of protection.
5 
 129. Chinese Taipei protects trade secrets under the Trade Secrets Act of 17 January 1996.  
Undisclosed test data have been protected by the Pharma ceutical Affairs Act since 5 February 2005.  
Agri-pesticides are considered a trade secret in accordance with the Ru les of Agro-pesticide 
Toxicological Tests.  Trade secrets are apparently not protected if their owner's home country 
has not signed a bilateral agreement on trade secrets with Chinese Taipei, or does not provide 
legal protection for trade secrets owned by Chinese Taipei persons.   Nonetheless, according to the 
authorities, trade secrets are prot ected in Chinese Taipei in conformity with Article 3 of the 
TRIPS Agreement. 
 - According to the Secretariat's report, trade secrets are not protected if their owner's home 
country has not signed a bilateral agreement on trade secrets with Chinese Taipei.  Please 
provide further information on this measure. 
 
Answer:  
According to Article 15 of our Trade Secret Act (The  Reciprocity Principle), a foreign national's trade 
secret(s) will not be protected by us  if the fo reign national's home country has not signed a trade 
secret protection treaty or agreement with us, or doe s not provide protection for trade secrets of our 
nationals. Therefore, WTO members may, according with the aforementioned provision, enjoy any 
rights under TRIPS, including the national treatment of TRIPS Article 3 and MFN of TRIPS Article 4.  
- What is the pursued public policy objective?  What is its background history and how has it 
been implemented? 
 
Answer:  
Our Trade Secret Act was promulgated in 1996 befo re our accession to the WTO. At the time the Act 
was formulated, multilateral protection was taken in to account due to our anticipation for accession 
to the WTO.  Where the owner's home country has not signed a bilateral agreement, how are trade 
secrets protected?  
Answer:  
For non-WTO members that do not have any bilatera l protection agreement with us or provide 
protection for trade secret(s) owned by our nationals, we may decline to protect the trade secret(s) of 
their nationals. 
                                                      
5 According to the authorities, the granting of IPR pr otection is in conformity with Article 3 of the 
TRIPS Agreement.  Nonetheless, it is apparently subject to reciprocity if:  the country of a non-Chinese-Taipei 
applicant is not from a country signatory to a regional/mul tilateral agreement to which Chinese Taipei is also a 
signatory;  or that this country has not concluded an agreement with Chinese Taipei on reciprocal protection of IPRs (patents and trade marks);  or if the Acts of  the country do not accept pa tent applications filed by 
Chinese Taipei persons (Article 4, Patent Act;  Artic le 3, Trademark Act;  Article 4, Copyright Act;  and 
Article 5, Integrated Circuit Layout Protection Act).  WT/TPR/M/232/Add.1 
 Page 47 
 
 
  Technical barriers to trade 
 
95. Domestic standards are voluntary, except for those designated as technical regulations.  At 
end-March 2009, there were 14,329 domestic standa rds in Chinese Taipei (13,981 in October 2005), 
of which 221 (1.5 per cent) were designated as tec hnical regulations.  At the same time, 18 per cent 
(25 per cent in 2005) of domestic standards we re harmonized with international ones in 2009 
(Table III.7).6  The BSMI adopts relevant international standards when the scope, grade, condition, 
and level of application are appr opriate for domestic circumstances.  All standards newly introduced 
between 2005 and 2009 were harmonize d with existing international on es;  these standards pertain to 
engineering (railway, nuclear), environmental ma nagement, domestic wares, and information and 
communication. 
 - How does a voluntary standard come to be designated a mandatory technical regulation? 
 
Answer:  
Voluntary standards in the Separate Customs Te rritory of Taiwan, Penghu, Kinmen and Matsu will 
become mandatory when they are refer enced with technical regulations. 
 - What is the normal procedure fo r developing technical regulations? 
 
Answer:  
Technical regulations developed by government bodies in the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu have to comply with the requirements stipulated in the Administrative 
Procedure Act, including transparency, public he arings, etc. Regulatory authorities also follow 
additional procedures when adopting technical regul ations under their jurisdiction. Taking the 
operation at the BSMI, the regulatory authority fo r a wide range of consumer products, as an 
example, the typical reasons for mandatory inspectio n of a product are (1) public concerns about the 
safety of a certain product (occurrence of serious in cidents, awareness of hazards, actions taken in 
other countries, etc.); (2) evaluation of produc t risks; (3) assessment of alternatives and the 
appropriate conformity assessment procedures; (4) public  hearings; (5) preparation of proposals; (6) 
review of proposals by the Review Committee; (7) announcement of draft proposals in the government 
gazette and notifications made to the WTO if the propo sed measure meets the conditions of Article 2.9 
of the TBT Agreement for comments; (8) review of comments received; (9) promulgation of the 
regulations; and (10) entry into force of regulations.  
 
- Is there a body which centralizes the development of technical regulations at national level? 
 
Answer:  
There is no such an organization. However, all techni cal regulations are deposited at the website at 
http://law.moj.gov.tw/. 
 
- Which body is responsible for fulfilling transp arency (notification) obligations under the 
WTO Agreement on Technical Barriers to Trade? 
 
Answer:  
The Bureau of Standards, Metrology and Inspection (BSMI) under the Ministry of Economic Affairs 
(MOEA) is responsible for the operation of the Enquiry Point under the TBT Agreement. 
 
                                                      
6 At the end of March 2009, 3,499 (4,983 in 2005) domestic standards had corresponding international 
standards (Table III.7);  74.16 per cent (71 per cent in 2005) of these domestic standards were aligned to 
international standards. WT/TPR/M/232/Add.1 
Page 48  
 
  - How can economic operators identify technical re gulations and on what website can they be 
viewed? 
 
Answer:  
Industries can access technical regulations in the Laws & Regulations Database at 
http://law.moj.gov.tw/ or they can also contact the BSMI, the TBT Enquiry Point of the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu, for information or texts of the technical regulations. 
 
97. Products subject to mandatory technical regulations are subject to commodity inspection in 
accordance with the Comm odity Inspection Act.
7  Inspection is carried out by the BSMI for industrial 
and mining commodities, imported products (incl uding food products), and those destined for 
exportation.  Import inspections increased fro m 335,780 cases in 2004 to  386,457 in 2009 
(Table III.8) as a result of a rise in food inspections8;  there has been no inspection of exports since 
2004.  Commodity inspection is conducted under f our schemes:  batch-by-batch, monitoring, 
registration of product certification, and declaration of conformity.  The authorities are of the view 
that Chinese Taipei applies the same type of commodity inspection procedures to domestically 
produced goods and imports.9  The commodity inspection standards are determined and identified in 
accordance with the obligati ons in international conve ntions and in reference to domestic standards. 
 
- At what point in time are products that are subject to mandatory technical regulations 
inspected? 
 
Answer:  
Inspection of imported products is performed at borders or before shipment depending on the 
conformity assessment procedures that manu facturers select. For most consumer products, 
manufacturers may choose either Type-Approved Ba tch Inspection or Registration of Product 
Certification as the conformity assessment to demo nstrate compliance of their products with related 
technical regulations. More informa tion about the two procedures, as  well as other procedures, is 
available at the BSMI website at http://www. bsmi.gov.tw/wSite/ct?xIte m=8673&ctNode=811. Brief 
description of applicable conformity assessment procedures for each notified measure is also 
provided in the document a ttached to the notification. 
 
- What is the procedure fo llowed for this inspection? 
 
Answer:  
Please refer to the answer for the preceding question. 
 - Is this inspection necessary for products c overed by accredited conformity assessment under 
the International Laboratory Accreditati on Cooperation (ILAC) Mutual Recognition 
Arrangement and certified products covered by the International Accreditation Forum (IAF) 
Multilateral Recognition Arrangement? 
 
                                                     
 
7 According to the Act, the purpose of commodity inspection is to ensure compliance of commodities 
with safety, health, and environmental protection requir ements, as well as to protect consumers' rights and 
interests, and to promote sound development of economic activities. 
8 As the inspection of domestically manufactured food products is carried out by the Department of 
Health (DOH), data on these inspections are not contained in Table III.8. 
9 Chinese Taipei has applied a Supplier's Declar ation of Conformity (SDoC) since 2001 and 
self-verification for measuring instruments since 2003;  a total of 65 products have been covered by the SDoC 
since 2002, including chemical products, electric and electronic products, and personal protective equipment.  WT/TPR/M/232/Add.1 
 Page 49 
 
 
  Answer:  
Quality management system certificates issued by  certification bodies under the framework of IAF 
MLA are accepted if they are registered with  the BSMI for recognition. Currently, there are 
22 certification bodies of which the ISO 9001 cer tificates are accepted under the Registration of 
Product Certification Scheme. A list of such re cognized certification bodies is available at 
http://www.bsmi.gov.tw/wSite/public/Attachment/f12 74406663211.doc. Test reports issued by foreign 
testing laboratories will be accepted under bila teral mutual recognition agreements/arrangements 
concluded between the Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu and WTO 
Members where the testing laboratories are located. 
 
98. Manufacturers may apply to the BSMI for the CNS Mark to demonstrate that their products 
comply with related domestic standards.  The CN S Mark is voluntary and is granted when:  the 
quality management system (QMS) of the factory complies with the criteria specified by the BSMI;  and the products are tested in accordance with rele vant domestic standards.  The BSMI accepts QMS 
certificates issued by recognized QMS certificati on bodies.  Any QMS certification body may apply 
to the BSMI for recognition if it is accredited by the domestic accreditation foundation or by an 
accreditation body that is located in the same count ry as the QMS certification body and that is a 
member of the Multilateral Recognition Arrangeme nts (MLA) of the International Accreditation 
Forum, Inc. (IAF) or the Pacific Accreditation C ooperation (PAC).  The authorities indicated that 
Chinese Taipei's conformity assessment requirement s do not create unnecessary obstacles to trade.  At 
end 2008, 616 factories and 1,897 produc ts were registered under the CNS Mark. 
 - What products are covered by the CNS mark?  
Answer:   
The CNS Mark is awarded to products that are proven through appropriate procedures, usually 
product testing and quality management system audits, to be in compliance with related national 
standards (CNS). There are currently 873 product ite ms allowed to use the CNS Mark. The product 
categories mainly encompass chemical products, electrical & electronic products, mechanic products, 
etc. 
 - Is an imported product covered by the CNS mark presumed safe for the purposes of the 
relevant regulations or must it under go other conformity assessment procedures? 
 
Answer:  
The CNS Mark is voluntary so products that are announced to be subject to mandantory inspection 
are still required to obtain the Commodity Inspection Mark.   
- What is the procedure for obtaining the CNS ma rk?  Is a plant inspection required in order to 
obtain the CNS mark? 
 
Answer:  
Related information about the CNS Mark and applicati on procedures is available at the BSMI website 
at http://www.bsmi.gov.tw/wSite/ct?xItem=20609& ctNode=3563&mp=2. A product may be granted 
the CNS Mark if it is tested and proven to m eet related national standards (CNS) and the quality 
management of the factory complies with ISO 9001. 
 
111. Under the new Imported Organic Agricultural Product and Organic Agricultural Processed 
Products regulations, which were  promulgated in 2007 and implem ented as from 29 January 200910, 
the product packaging must be labelled with a non-duplicative "serial" number approved by the 
Council of Agriculture (COA) on a batch basis for ev ery organic product shipment to Chinese Taipei.  
                                                      
10 USTR (2009). WT/TPR/M/232/Add.1 
Page 50  
 
  With a view to avoiding repetitive certification a nd reducing certification costs for imported organic 
agricultural products and organic agricultura l processed products, the COA recognizes the 
accreditation and certification results of countries in which the management systems of organic agricultural products are equivalent to those of Chin ese Taipei.  However, to ensure the protection of 
consumers' rights, the COA verifies that each batc h of imported organic agricultural products or 
organic agricultural processed products is certif ied by accredited certification bodies of countries 
recognized by the COA.  A certification document demonstrating that the products have obtained 
organic certification must be provided by the impor ter along with the application.  Importers must 
apply to the COA for the organic labelling approval doc uments according to the re levant provisions of 
the Organic Import Regulations.  To ensure the timely delivery of products that have a short shelf-life, 
the COA gives priority to applications relating to  imported fresh organic agricultural products, and 
shortens the review time so as to pr eserve the quality of perishable products. 
 - Where a label does not meet the requirements, is it possible to supplement the information 
with additional or adhesive product labels? 
 
Answer:  
According to the “Agricultural Production and Cert ification Act”, the importers will be fined if the 
labelling of the imported agricultu ral products do not meet our regulations when inspected in the 
market. 
 
- At what point is product labelling checked?  At the border or in the market? 
 
Answer:  
Imported agricultural products s hould be certified by proclaimed organic equivalence accreditation 
body. Once they have been approved as qualified, th e products can be sold under the term of 
“organic”, whose labelling should meet our regula tions when placed onto the market. Currently, 
sanitary inspection has to be implemented before the importation. However, the labelling of organic 
products is only inspected in the market. 
 - With regard to organic products, the text st ates that the accreditation and certification results 
of exporting countries are recognized when the management systems concerned are equivalent to those of Chinese Taipei.  For this  to be possible, must a recognition agreement 
be negotiated?  In Chinese Taipei, what is th e procedure for determining such equivalence? 
 
Answer:  
WTO Members which request to be on our organic equivalence list may provide relevant documents 
for review and assessment. We will conduct on-site inspections if necessary. We hope the applicant 
country also accepts our application for the organic equi valence status as well, in line with the spirit 
of mutually beneficial trade. 
 
  WT/TPR/M/232/Add.1 
 Page 51 
 
 
  JAPAN  
 
The Secretariat Report (WT/TPR/S/232) 
 
II. TRADE POLICY REGIME  
(6) T RADE AGREEMENTS AND ARRANGEMENTS  
(ii) Preferential trade agreement 
 (Question 1: page 25-26, paragraph 31-35) 
What are the items or sectors for which Chinese Ta ipei does not grant duty free treatment in FTAs. 
Please also describe the form of the maintained tariffs under these FT As. (ex. exclusion, usage of 
tariff quota or reduction of tariffs)   
Answer:   
We have signed FTAs with 5 Centra l American countries. According to the tariff reduction schedules 
in these FTAs, the main items excluded from tar iff reduction are Chapter 87 small passenger vehicles 
and parts, Chapter 24 tobacco and manufactured toba cco substitutes, and some sensitive agricultural 
products, e.g. tea, garlic , bananas, . while certain products includ ing sugar are subject to different 
tariff quotas according to different FTAs.  For details please refer to http://eweb.trade.gov.tw/ 
kmi.asp?xdurl=kmif.asp&cat=CAT4032.  
III. TRADE POLICIES AND PRACTICIES BY MEASURE 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(i) Taxation and tax-related assistance 
 
(Question 2: Page 35, paragra ph 9 and page 56, paragraph 83) 
According to the Secretariat’s report, TTLC, a stat e owned company, produ ces “Rice Wine” and sells 
it since June 2009 within Chinese Taipei at a price not higher than NT$50 per 0.6 little bottle. What is 
the objective of this policy? Please also provide the definition of ‘Rice Wine’ as an alcoholic drink. 
The price of Rice Wine sold by TTLC seems substan tially cheaper than the price for other alcoholic 
drinks, including those imported. Please provide your  view on rational for the difference of prices 
between the price of ”Rice Wine” and the price of other alcoholic drinks, taking into account the tax 
rates, or price per percentage of alcohol.  
Answer :  
“Rice Wine” refers to alcoholic produces made from  rice through saccharification, fermentation or 
distillation with or without blending with ethy l alcohol, according to Item 4, Subparagraph 5, 
Article 3 of the “Enforcement Rules of the Tobacco and Alcohol Administration Act”. 
 
Article 8 of the Tobacco and Alcohol Tax Act wa s amended on 28 April 2009 with an attached non-
mandatory resolution that the price of rice wine (‘r ed-label mijiu’) produced by the TTLC shall be 
priced at no more than NT$50 per bottle. As rice wine is a staple ingredient in local cuisine and in 
production of medicinal tonics, after reduction of tax on distilled alcohol products, the TTLC was 
expecting a decrease in its manufacturing cost. Theref ore, there will still be a reasonable profit at the 
price of NT$50 per bottle of rice wine. 
 The prices of each type of alcohol products a re determined through the market mechanism in line 
with various factors such as the nature of th e raw material, the wat er, the production process, 
whether the product is for cooking or for drinki ng directly, and so on. Take whisky or brandy for 
instance. The prices are differentiate d based on many factors including  the brands, ingredients, and 
countries of origin. That is also the case for the price differences between different brands of rice 
wine.  WT/TPR/M/232/Add.1 
Page 52  
 
   
(Question 3: Page 37, paragra ph21 and page 56, paragraph 83) 
Japan understands that the tariffs for rice alcoholic  drinks are higher than the ones for the other 
alcoholic drinks. What is the objective for such policy?  
We understand that the tax on distilled liquor, such  as ‘Rice Wine’ was reduced in 2009, and that 
Chinese Taipei is now considering further tax cuts  on ‘Rice Wine.’ Given these tax reforms, there 
seems to be room for tariff reduction on other ri ce alcoholic drinks. Please provide the view of 
Chinese Taipei on the possibility of tariff cuts on rice alcoholic drinks, especially for non-distilled 
liquor such as “Sake.”  
 
Answer:  
‘Rice wine,’ according to the definition adopted in the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu, is distilled liquor mainly used for cooking, not for drinking. In addition, 
decision on the rates of tariff rates on alcohol produ cts is often complex and involves many interests. 
We currently have no schedule for th e tariff cuts on alcoholic drinks made from rice, including non-
distilled liquor such as “sake.”  
 
(v) Intellectual property rights  
(Question 4: Page 66, paragraph117) 
a. Please provide us with the information on th e Copyright Act amendments of July 2007; 
 (i) We would like to know whether or not th ere are cases wh ere people were subject to 
civil or criminal liability for providing f ile sharing services with the intent of 
facilitating online piracy and making profits . . If so, we would like to have the 
number of such cases and the details of the main cases. 
 (ii) How many infringing “peer-to-peer” servi ces have been closed since the amendments 
came into force?  
 
Answer:  
We have had two cases involving file sharing that were sanctioned according to the legislation 
promulgated in July 2007: 
 
On May 27, 2008, a second instance court convic ted and sentenced two suspects to 6 months 
imprisonment for providing BT, P2P and DSL on an online forum, and the decision is not appealable. 
 
On March 19, 2010, a first instance court sentenced a legal person to a NT$700,000 fine and convicted and sentenced its legal representative to  1.5-year imprisonment for providing FOXY, a 
Chinese interface P2P software, online.  
b. With regards to the amendment of the C opyright Intermediary Organization Act of 2010, 
please provide the following information:  
 (i) the background information and reasons for renaming the ‘Copyright Intermediary 
Organization’ to ‘Copyright Collective Organization’, and for changing 
‘intermediate’ to ‘management’. What are the major differences between the previous 
and the new wordings?  
 (ii) the scope of the government inte rvention with the manner to authorize the 
exploitation of work and the applied rate.  
 (iii) the procedure for deciding or changing the rate 
 (iv) the method for deciding the amount of money for exploitation given to the rights 
holders by a copyright collective organi zation (without the reporting obligation for 
the music exploited by users). 
  WT/TPR/M/232/Add.1 
 Page 53 
 
 
  Answer:  
(i) The function of a copyright collective management organization is not of any “intermediary” nature as the title of the original Act suggested. Rather, it aims at obtaining authorization from 
copyright holders and then licensing the copy-righted work to the private sector under the name of its 
own organization.  Since the term, “copyright intermediary organization,” caused confusion and misinterpretation, we have changed the name to cop yright collective management organization, as is 
called by WIPO. The title of the Act has therefore been changed as well.     
 
(ii) TIPO only intervenes with licensing matters wh en CMOs violate regulations or operate in 
inappropriate manners.  When that happens, TIPO would order the CMO to correct its actions or 
hand down appropriate penalties.  With respect to tariff rates, TI PO will intervene only when users 
disagree with the tariff and apply to TIPO for a review of the tariff in dispute. 
 (iii) Procedures for tariff determination: Tariffs  are set up by the CMOs and take effect 30 days 
after the rates are published.  When  users disagree with a tariff, th ey may present related information 
and grounds for the disagreement and apply to TIPO for a review of the rate. Once the application is 
accepted, TIPO will publicly announce the dispute to a llow other users of the same type of work to 
participate in the review.  TIPO will also request th e CMOs to explain why the tariff has been so set 
up.  TIPO will also seek the opinion of the C opyright Examination and Mediation Committee during 
the review process before making the final decision. ( ref: Articles 24 to 26 of the Copyright Collective 
Management Organization Act) 
 (iv) With respect to how a CMO determine its  tariffs, the new Act for CMOs provides the 
information on some factors to be taken into a ccount (Art.24 para.1 of the Copyright Collective 
Management Organization Act): 1. R esult of consultations with users and users' suggestions. 2. The 
economic benefit users expect to obtain through explo itation of the work. 3. The numbers of economic 
rights under its management. 4. The type and quantity of the exploitation. 
 
IV. TRADE POLICIES BY SECTOR (5)
  S ERVICES  
(ii) Financial services 
 
(Question 5: Page 91, paragraph 70) 
We understand that in December 2009, Chinese Taip ei amended the Regulations Governing Foreign 
Bank Branches and Representative Offices to tighten the regulations for branches of foreign banks. 
We also understand that the Article 19.1 of the law, which stipulates the regulation on NT dollar 
operations, is only applied to fore ign banks and representative offices, and is not applied to Chinese 
Taipei banks. Please explain the rational for this difference in treatment and how this treatment 
conforms to the National Treatment.  
 
Answer:  
1. To enhance protection for our depositors, the FSC has introduced an asset maintenance 
regime that requires foreign bank branches and subsidiari es to maintain a minimum level of eligible 
assets in our territory  as the pledge for thei r liabilities.  An asset maintenance requirement is 
necessary as resolutions for cross- border bank insolvencies are often complex and drawn-out, plus 
the amount and speed of recovery can be uncertain.   Domestic banks generally allocate deposits 
received to domestic loans and investments.  On th e other hand, foreign banks in practice transfer 
most of their funds to their head office or regional  centers.  Such different types of allocation result in 
balance sheet differences. Therefore, not requiring dom estic banks to maintain a minimum level of 
eligible assets  is by no means an issue of treating any member differently.  
2. According to Article 2(a) of the GATS Ann ex on Financial Services, “a Member shall not be 
prevented from taking measures for prudential reas ons, including for the protection of investors, WT/TPR/M/232/Add.1 
Page 54  
 
  depositors, policy holders or persons to whom a fi duciary duty is owed by a financial service supplier, 
or to ensure the integrity and stability of the fin ancial system.” The requirement to maintain a 
minimum level of eligible assets  aims at pr otecting depositors’ interests and has been taken for 
prudential reasons.  
(Question 6: Page 92, paragraph 71 and Page 96, paragraph 87) 
According to the Secretariat’s report, a bank (or an insurance company) may seek approval from the 
competent authority to establish a cooperative or co -marketing agreement with an insurance company 
in order to sell insurance products through its own banking network.  
When a bank sells insurance products through its own banking network, there are some risks for 
conflict of interests. Please tell us how you address potential conflict of interests.  
 
Answer:  
1. To ensure that banking customers are not c onfused between insurance products and banking 
deposits, we amended the regulati on on November 25, 2009. The ame ndment requires all banks to set 
up a specific insurance counter to engage in insu rance sales. Banking employees are required to 
present their insurance lic ensescertificates and ensure the customers fully understand that the product 
to be purchased is insurance rather than a bank deposit. 
  2. In addition, the “Regulations Governi ng Cross-selling Among a Financial Holding 
Company's Subsidiaries” requires that financial ho lding company employee who currently engages in 
cross-selling for a subsidiary should avoid conflict of  interest and comply with the internal control 
mechanism established between the financial holding company and its subsidiary in order to 
strengthen the function of internal control and avoid any improprieties. 
 
(Question 7: Page 92, paragraph 73) 
Please provide information on the plan to sell the government owned banks’ stocks.  
 
Answer:  
There are three state-ownedfinancial institutions , including the Taiwan Financial Holdings Co. Ltd, 
the Land Bank of Taiwan, and the Export-Import Bank. Ourfinancial market is very competitive and 
these three  banks do not enjoy any exclusive rights.  At present, we have not made any plan or 
timetable for privatization of these banks. 
 
(Question 8: Page 92, paragraph 74) 
According to the Secretariat’s report, the inter est earned from a postal passbook saving account is tax 
exempt. Please explain how this tax exemption conf orms to the National Treatment for other financial 
institutions.  
 
Answer:   
The tax exemption of Postal Passbook Savings is  also available for foreigners who have a valid 
residency permit and passport. 
 
(Question 9: Page 95, paragraph 85) 
According to the Secretariat’s report, the coverage  of deposit insurance system has been extended till 
the end of 2010. Does the deposit insurance cover (1 ) the deposit in the NT dollar in accounts of 
foreign banks branches and (2) the deposit in the foreign currencies? 
 
Answer:  
The coverage of deposit insurance system app lies equally to domestic banks and foreign bank 
branches. The blanket deposit guarantee, which is sc heduled to expire at the end of 2010, covers NT 
dollar and foreign currency deposit accounts at ba nks.  However, foreign currency deposit accounts  WT/TPR/M/232/Add.1 
 Page 55 
 
 
  at banks will not be covered by the deposit insura nce system after the blanket deposit guarantee is 
lifted.  
In response to the expiration of the blanket depos it guarantee, we will refer  to similar measures 
adopted by neighboring Members and take into c onsideration the global economic and our economic 
and financial situations to develop appropriate me asures.  One of the primary measures under 
considerationis incorporating foreign currency depos it accounts at banks into the deposit insurance 
system. 
 
(Question 10: Page 96, paragraph 90) 
According to the Secretariat’s report, foreign in surance companies are subject to more stringent 
accounting standards and solvency margin ratio than  the domestic companies. Does this mean that 
only foreign insurance companies are subject to these high requirements regardless of the form of 
operation (branches or local subsidiaries)? Please expl ain the rationale for this regulation and how this 
measure conforms to the National Treatment. 
 
Answer:  
Financial supervisory requirements are applicable c onsistently to foreign insurance companies and 
domestic insurers in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu. Insurers 
are required to prepare financial reports based on  the Regulations Governing the Preparation of 
Financial Reports by Insurers and the Generally Accep ted Accounting Principles.  Insurance reserves 
and solvency standards are set up in accordance w ith Regulations Governing the Setting Aside of 
Various Reserves by Insurance En terprises and Regulations Governing the Capital Adequacy Ratio of 
Insurance Companies. The relevant laws, regulati ons, rules and other provisions apply to all 
insurance enterprises consistently. 
 
(iii) Telecommunications and postal services 
 
(Question 11: Page 98, paragraph 96) We have learned that the optical fiber network h as been rapidly developed in Chinese Taipei. Please 
provide the details of measures introduced or consid ered to ensure the openness of the optical fiber 
network, including unbundling obligations.  
 
Answer:  
In light of the importance of broadband network deployment, especially fiber optic network, for 
development of a information society, we encourage  operators to establish their own infrastructure to 
satisfy public demands rather t han adopt regulatory intervention which we think may undermine 
operators’ interests in ma king further investment. 
 However, we will constantly review the market to ensure a fairplaying field for competition. 
 
(Question 12: Page 98, paragraph 97) 
As the broadband market is expandi ng, the traffic volume of the Internet is expected to increase very 
rapidly. In view of this increase, the traffi c volumes sent from/to overseas are also expected to 
increase, which could cause a delay in accessing overseas contents. Please describe the measures, if 
any, introduced or examined to improve the transmission capacity of the global transit. 
 
Answer:  
Network operators required to provide services at  adequate QoS levels will improve their network 
capacity based on demand and supply situation in the market.  
 WT/TPR/M/232/Add.1 
Page 56  
 
  (Question 13: Page 99 paragraph 99) 
a. According to the Secretariat’s report, Non-Chin ese-Taipei investment in a Type I enterprise is 
limited to a maximum of 49% (combined with indi rect share holding, to a maximum of 60%) of the 
total shares. As for Chunghwa Telecom, are there an y other foreign investment restrictions? If any, 
please elaborate on these restrictions, such as the limitation in foreign investment.   
Answer:  
Foreign investment in Chunghwa Telecom Co., Ltd. is limited to a maximum of 49%, and the total 
shares of direct and indirect foreign investment are limited to 60%. 
 
b. According to the Secretariat’s report, Type II operators are required to obtain a license from 
the NCC and must follow ‘the relevant administrativ e regulations’. Please provide the details of ‘the 
relevant administrative regulations.’ 
 
Answer:  
The relevant administrative regulations are th e Telecommunications Act and Administrative 
Regulations on Type II Telecommunications Businesses.  
 
(Question 14: Page 100 paragraph 104) 
We understand that Chunghwa Telecom, a dominant supplier, provides various services such as fixed 
line telephone, mobile telephone and Internet access services. Please explain the overview and outline 
of the regulations to ensure fair competition,  such as separating the accounting among divisions 
providing such services and restriction of personnel exchange. If such regulations are not introduced, 
please provide information on the future plan, if any. 
 
Answer:  
We have adopted specific measures to ensure fair co mpetition in the market, such as wholesale tariffs, 
accounting separation mechanism, network interconn ection arrangement, number portability, as well 
as equal access arrangement and local loop unbundling, etc.   
(Question 15: Page 100 paragraph 104) 
Please elaborate on why the current number portability scheme is not introduced among PHS 
operators. Please tell us what Chinese Taipei thi nks of the introduction of Number portability between 
PHS operators and mobile phone operators?  
Answer:  
Considering there is only one PHS operator in our market, and both its service area and radio wave 
coverage are limited and different from other mobile  phone operators, the cu rrent number portability 
scheme is neither introduced among PHS operators nor between PHS and mobile phone operators. 
 
The Government Report (WT/TPR/G/232) 
 
III. POLICY ENVIRONMENT AND REFORMS 
(iv) Domestic reforms 
 
(Question 16: Page 12, paragraph 29) With regards to the specialized IP court estab lished in July 2008, please provide its background 
information for establishment, explanation on its func tions and if any, the challenges it has faced so 
far. 
 
Answer:  
The IP Court officially began its operation in July  2008 to further enhance the quality of our court 
proceedings and to also effectively handle the complexity of IPR cases.  WT/TPR/M/232/Add.1 
 Page 57 
 
 
  The IP Court hears cases relating to patents, tr ademarks, copyrights, optical disk management, trade 
secrets, and integrated circuits. As each case heard by  the IP Court involves technical matters, the IP 
authority (i.e. TIPO) has assigned 10 patent examiners to the IP Court to assist judges in solving 
cases concerning technical matters. 
 The challenge for IP Court is the heavy workload of the judges. The IP Court currently has only 9 
judges and a president. Since its establishment in July 2008 till the end of May 2010,  2,277 cases 
were filed with the Court (of which 488 involved  foreign nationals). These statistics mean that each 
Judge had to deal with approximately 140 cases a year. 
 Answers to follow-up questions from Japan 
 
(Question 1: Answers to Question 4) 
As for the ECFA, will Chinese Taipei make a notifica tion to the WTO consistent with the Article 24 
of the GATT and the Article 5 of the GATS? 
 
Answer:  
The ECFA was delivered to the legislature for its approval in early July 2010, and it will enter into 
force only after the legislature approves it. We will make the notification of the ECFA to the WTO in 
due course. We will certainly indicate which artic les of the WTO the ECFA is pursuant to in our 
notification at that time.  
(Question 2: Answers to Question 4) 
Based on the current statistics of Chinese Taipei, wh at percentage of the total two-way trade between 
Chinese Taipei and China is duty free on a trade volum e basis? In addition, what percentage of the 
total two way trade is duty free per tariff line basis? 
 
Answer:  
According to our statistics for 2009, we had 2,722 tariff lines in 8-digits that were duty-free for 
imports from China. These amounted to 59% (o r US$16.01 billion) in terms of our total 
US$27.14 billion trade volume and 31.2% in terms of  our 8,730 total tariff trade  lines of imports from 
China. 
 (Question 3: Answers to Question 4) 
As the agreement between Chinese Taipei and China includes at this time an “early harvest”, how will 
it be treated in the long-term? 
 
Answer:  
The Contents of Early Harvest for Trade in Goods of the ECFA are as follows:  
(1) Manufacturing:  
China agrees to a list of 539 goods from us for early harvest tariff reduction. The goods on the list 
imported by China from us in 2 009 amounted to a total value of US$13.84 billion, with 16.1% of 
China’s imports from us subject to an average tar iff of 9.5%. We agree to a list of 267 goods from 
China for early harvest reduction. The goods on the li st imported by us from China in 2009 amounted 
to a total value of US$2.86 billion, with 10.5% of our imports from China subject to an average tariff 
of 4.2%.   
(2) Agriculture: 
Currently, 830 agricultural products from China a re not permitted for import with the original 
restrictions in effect and no furt her opening. The original 1,415 ag ricultural goods that were open for 
import from China are also not granted tariff reduc tion at this stage of the ECFA. However, China WT/TPR/M/232/Add.1 
Page 58  
 
  offers preferential tariffs for 18 of our agricultu ral products, including live fish, enoki mushrooms, 
tea, oranges, etc.  
(3) Tariff reduction stages: 
Both sides have agreed to adopt the same tariff scheme. Within 2 years of implementing the early 
harvest, tariffs will be reduced periodically 3 times to  reach the zero rates. Ho wever, both sides will 
apply different standards, with us appl ying tariff reductions half that of China’s as explained below: 
 
a. China’s tariff reduction approach:  
The 2009 MFN tariff rate of less than (or equal to) 5%  will be immediately reduced to zero in the first 
year (01 Jan. 2011) of implementing the Early Harves t Program. The MFN tariff rate of greater than 
5% but less than (or equal to) 15% will be imme diately reduced to 5% in the first year of 
implementation and further reduced to zero in th e second year of implementa tion (01 Jan. 2012). The 
MFN tariff rate of greater than 15% will be imme diately reduced to 10% in the first year of 
implementation, to 5% in the second year, and fi nally to zero in the third year (01 Jan. 2013). 
 b. Our tariff reduction approach: 
The 2009 MFN tariff rate of less than (or equal to) 2. 5% will be immediately reduced to zero in the 
first year (01 Jan. 2011) of implementing the Earl y Harvest Program. The MFN tariff rate of greater 
than 2.5% but less than (or equal to) 7.5% will be i mmediately reduced to 2.5% in the first year of 
implementation and further reduced to zero in th e second year of implementa tion (01 Jan. 2012). The 
MFN tariff rate of greater than 7.5% will be i mmediately reduced to 5% in the first year of 
implementation, to 2.5% in the second year, and fi nally to zero in the third year (01 Jan. 2013). 
 
As for the question of how the Early Harvest Program will be treated in the long-term, it will start to 
be implemented within six months after the date the ECFA enters into force.  Once the agreement on 
trade in goods is concluded and enters into force,  the Early Harvest Program will be incorporated 
into the agreement on trade in goods. 
 
(Question 4: Answers to Question 4) 
When the Early Harvest Program of the ECFA is im plemented, how much increase in the percentage 
point mentioned above question 2 is envisaged? 
 
Answer:  
We have agreed to a list of 267 goods from Chin a for early harvest reduction. These goods accounted 
for 3.1% in terms of our 8,730 tariff lines in 2009. Therefore, at the end of the implementation period, 
the duty free trade for imports from China will increase from 31.2% to 34.2% in terms of tariff line.  
 
The goods on the list imported by us  from China in 2009 amounted to a total value of US$2.86 billion, 
which comprised 10.5% of our total US$ 27.14 billion of imports from China. We expect the tariff 
elimination will significantly increase bilateral tr ade for related products; however, we do not have a 
specific quantitative forecast at hand in this regard.   
The Early Harvest Program is very likely to be impl emented starting from Ja nuary 1, 2011, once the 
ECFA comes into force after both parties complete the relevant procedures and notify each other. 
 
(Question 5: Answers to Question 4) 
In regard to our question 4 a. (ii) (How many  infringing "peer-to-peer" services have been closed 
since the amendments came into force?), it app ears that there is no d escription in the answer 
document. We again would like to require a reply to this question. 
  WT/TPR/M/232/Add.1 
 Page 59 
 
 
  Answer:  
(1) The online forum involved in  the case of May 27, 2008 has ceased its P2P software providing 
service.  
 
(2) The legal person sentenced in  the Foxy case of March 19, 2010 has suspended business on his 
own. However, the Foxy software providing website  is still under operation. Our prosecutor is now 
investigating if there are any other infringers running the website.  
 
(Question 6: Answers to Question 2 and 3) 
Is the definition of “Rice wine” according to th e “Enforcement Rules of the Tobacco and Alcohol 
Administration Act” (that is, fermented liquor or di stilled liquor) different from the one found in the 
tariff classification (“the definition adopted in  Chinese Taipei”; that is, distilled liquors) ? 
 
Answer:  
(1) According to the “Enforcemen t Rules of the Tobacco and Alcohol Administration Act”, rice 
wine is defined as an alcohol pr oduct made from rice as the raw material through saccharification, 
fermentation, followed by distillation, and blended with or without ethyl alcohol. 
 
(2) Rice wine is a product with two 8-digit tar iff classifications: one for rice wine with an 
alcoholic concentration of 20% or less, and the oth er for rice wine with an alcoholic concentration of 
more than 20%.  
 (3) Rice wine is predominantly used for cook ing and production of medicinal tonics in our 
market. At present, as there is no classification of ri ce wine stipulated in the Tobacco and Alcohol Tax 
Act; however, the Enforcement Rules of the Tobacco  and Alcohol Administration Act will be amended 
to be consistent with the aforementioned Tax Act. 
 
(Question 7: Answers to Question 3) 
Please provide the reason why the tariff rates of the rice alcoholic beverages (40%) is higher than 
those of other liquors (such as whisky and brandy). 
 
Answer:  
This is due to our WTO accession negotiations.  
(Question 8: Answers to Question 3) 
If “Rice wine” produced in Chinese Taipei is main ly used for cooking purposes and doesn’t compete 
with the other  rice alcoholic beverages imported from vari ous countries, it would appear that increase 
in imports of the latter incurred by the tariff reduc tion on the rice alcoholic beverages would not affect 
the former. Thus, isn’t it possible to reduce th e tariff rates on the rice alcoholic beverages? 
 
Answer:  
As we produce other liquors made from cereals, th ey directly compete against similar imported rice 
liquors. Lowering the tariffs for imported rice liquors would impact our producers of cereal liquors.  
 
(Question 9: Answers to Question 3) 
If the other  rice alcoholic beverages compete with the “R ice wine” and it is not possible to reduce the 
tariff rates for such products, please provide your  view on how Chinese Taipei would ensure that 
domestic tax reduction only on “Rice wine” can be consistent with the National Treatment principle 
of the GATT or the WTO.  
Answer:  
Since our rice wine is predominantly used for cook ing purposes, it is not a like product in comparison 
to alcoholic beverages for consumption. The e nd use, distribution channels, market price, and WT/TPR/M/232/Add.1 
Page 60  
 
  consumer habits of our rice wine are manifestly d ifferent from other alcoholic beverages. Empirical 
studies prove that our rice wine does not directly  compete with imported alcoholic beverages. 
Furthermore, the lowering of the tax rate will not  provide protection for domestic rice wine since 
imported rice wine, as long as it is for cooking purpo ses, will be subject to the same tax burden. Thus, 
the lowering of the tax rate for cooking rice wine is fully consistent with the National Treatment 
principle of the WTO.  
 
 
EL SALVADOR  
 
According to the Secretariat Report, "[i]mprovi ng the international competitiveness of the services 
industries is now one of the Government's priorities".  
- El Salvador would like to know specifica lly what measures have been, or will be, 
implemented by the Government of Chinese Ta ipei in order to achieve this objective. 
 
Answer:  
We approved in July 2009 the Service Industry Deve lopment Plan with the aim of building the service 
industry into an engine for increasing added valu e, creating jobs, enhancing the quality of life and 
stimulating economic growth.  The key areas in th e first stage of the plan encompass tourism, the 
creative and cultural industries, hea lth care, recreational agriculture,  logistics, telecommunications 
and technical services.  In terms of strategy, the effo rt will start out by enhancing the competitiveness 
of the service industries, strengthening R&D and innovation, creating differentiated services, reinforcing manpower training and overseas recruitmen t, and improving service industry statistics. 
 
Among the key areas included in the first stage, a number of service sectors such as tourism, the 
creative and cultural industries and health care have b een promoted as “emerging industries”.  We 
are reviewing and will revise pertinent laws and re gulations to build a more favourable regulatory 
environment for development of  these emerging industries. 
 - The Secretariat Report goes on to state that "[ f]urther liberalization and deregulation of the 
services sector could contribute significantly to these efforts".  El Salvador wishes to know 
whether Chinese Taipei intends to extend its mu ltilateral commitments in order to further the 
efforts it is making to improve the internati onal competitiveness of the services industries and 
which sectors would be specifically targeted. 
 
Answer:  
When we joined the WTO in January of 2002,  the scope of our service sector liberalization 
commitments was broader than that of many oth er members.  Having learned the importance of 
service sector liberalization fo r economic development in crea ting business opportunities and 
spurring job growth, on March 31, 2003, we put forth our initial offer and further committed to 
liberalizing computer services, telecommunica tions services, audio visual services and maritime 
transport services in accordance with the timeframe  established at the fourth Doha Ministerial 
Meeting. 
 
Having carefully considered market access request s made during bilateral consultations by 
developing members and other important trading partn ers, we further put forth a revised offer to 
liberalize computer services, environment services , banking services, courier services, maritime 
transport services and customs clearance services.  
Our offer concretely demonstrates our determination to push for a higher degree of liberalization in 
the service industries, as well as our current effort s to deregulate the service industries in order to 
enhance their development and competitiveness.  WT/TPR/M/232/Add.1 
 Page 61 
 
 
  - Likewise, El Salvador wishes to know whether,  as a result of the Doha Round, Chinese Taipei 
intends to remove the limits on foreign investment  and other restrictions applied in particular 
in basic telecommunications, audiovisual service s, and air, road, and maritime transport. 
 
Answer:  
Please also refer to the anser to question 1. 
 
As for the limits and restrictions described by th e Secretariat Report in paragraph 63 on page 90 and 
paragraph 23 on page xiii, the liberalization an d opening of all relevant sectors for foreign 
investment have been conducted in full complia nce with our WTO comm itments. However, we 
continue to welcome all foreign investments whic h bring know-how and innovative technologies to 
help stimulate the growth of our economy and to im prove the living standard of our society.  The 
Investment Commission of the Ministry of Economic  Affairs (MOEA) is currently coordinating a 
general review of the existing restrictions on some industrial sectors.  Necessary modification and 
deregulation will then be made public, as soon as this review process is concluded. In addition, 
regarding further liberalization of the maritime transport service, we are planning to amend the 
proportion of foreign investment on domestic shipping  companies from 33% to 50% (not included).  
 
In view of the importance of the services sector, we give primacy to the DDA negotiations to boost the 
global economic growth, and are committed to c ooperate constructively with WTO Members to 
secure a balanced and ambitious outcome  of the DDA negotiations. 
 
- Would Chinese Taipei please specify what types of incentive are provided for under the 
Statute for Upgrading Industries in the services sector. 
 
Answer:  
The Statute for Upgrading Industries (SUI) was an important tool for us to promote industrial 
development. However, according to the Art.72 of SU I, all of tax incentives expired at the end of 
2009.   
According to the Secretariat Report, "[n]on- ad valorem  duties, particularly in agriculture, tend to 
conceal relatively high ad valorem equivalents (AVE s);  75 of the top 100 applied MFN rates involve 
non-ad valorem  rates"… 
 
Chinese Taipei's tariff structure gives El Salvador cause for concern, primarily in agriculture, given 
the application of non- ad valorem  duties that tend to conceal relatively high ad valorem equivalents. 
 
The Report also indicates that Chinese Taipei's tariff schedule involves ad valorem  duties, specific 
duties, and alternate duties.  
- El Salvador would like to know whether the af orementioned Statute has been phased out and, 
if not, what measures Chinese Taipei is taking to apply a simpler and more transparent tariff. 
 
Answer:  
All the tariff systems are based on the results of  our WTO accession negotiations. Currently only a 
few tariff lines adopt non-ad valorem tariffs, including  specific tariffs and mixed tariffs. We are of the 
views that these two types of non-ad valorem ta riffs are easy to calculate, transparent and 
predictable.  In the future, we will follow the outcomes of DDA negotiations. 
 WT/TPR/M/232/Add.1 
Page 62  
 
  Trade policies and practices by measure.  Measures directly affecting imports:  (i) Registration, 
documentation, and procedures  
The Secretariat Report states that as of 2007, an  exporter or importer (including publicly-owned 
firms) whose trade performance in the preceding y ear has reached a prescribed amount qualifies as an 
"excellent" importing/exporting business. 
 
Benefits include being listed in a BOFT directory; awards; reduced (or eliminated) service fees, and 
preferential treatment for "special case" services available from TAITRA (section (3)(vii)); a higher 
line of credit in conformance with relevant Minist ry of Economic Affairs (MOEA) regulations on the 
extension of credit; and specific certification marks. 
 
- Would Chinese Taipei please explain in further detail what are the criteria for qualifying as an 
"excellent" importing/exporting business and wh ether micro and small enterprises qualify. 
 
Answer:  
Only corporations or business firms registered with  the BOFT in accordance with the Regulations 
Governing Registration and Administration of Exporters and Importers can be qualified as an 
“excellent importing/exporting business”.  
An exporter/importer whose export/import perform ance in the preceding year has reached a certain 
prescribed amount and whose registration has not been cancelled, nullified or abolished may be 
awarded by the competent authority as an excelle nt exporting/importing business and be included in a 
directory of excellent businesses compiled and prin ted by the competent authority. The “prescribed 
amount” referred to in the preceding paragraph will be publicly announced by the competent 
authority.   
Measures affecting production and trade:  (i) T axation and tax-related assistance:  (a) Indirect 
taxes  
According to paragraph 81 of the Secretariat Repor t, business tax is applied to sales of goods and 
services in two forms:  non-value-added and value-added. 
 The non-value-added component is applied to gross receipts of enterprises engaging in banking, 
insurance, investment trust, secur ities, futures, commercial paper, and pawnshops, at a rate of 2 per 
cent (except for reinsurance premiums of insuran ce business at 1 per cent);  enterprises engaging in 
special beverage and food services, at 15 per cent (n ight clubs or restaurants providing entertainment) 
or 25 per cent (saloons or tearooms, coffee shops or  bars offering female companionship);  small 
businesses supplying agricultural products and trader s (consignees) in the wholesale agricultural 
market, at 0.1 per cent;  and small business and other business entities excluded by the MOF from 
reporting their transactions, at a rate of 1 per cent. 
 The value-added tax component is  applied to all other businesses at the rate of 5 per cent on a 
value-added basis (with tax credits for inputs). 
 
- Would Chinese Taipei please specify what are th e criteria used to determine which products 
are exempt from business tax. 
 
Answer:  
For the scope of goods and services that are exempted  from business tax please refer to Articles 8, 9 
and 9-1 of “The Value-added and Non-value-adde d Business Tax Act”, http://law.moj.gov.tw/ 
Eng/LawClass/LawAll.aspx?PCode=G0340080.   WT/TPR/M/232/Add.1 
 Page 63 
 
 
  - Would the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu please provide 
a breakdown by sector of economic activity of enterprises having benefited under this 
scheme. 
 
Answer:  
We do not compile statistics on businesses elig ible for business tax relief by sectors. 
 
Standards and other technical requirements:  (b ) Sanitary and phytosanitary arrangements 
 
According to the Secretariat Report, foodstuffs desi gnated by the authorities, such as special dietary 
food, imported food in tablet or capsule forms, food additives, and food containing GMOs are subject 
to licences;  these are valid for up to five years, with the possibility of extension for another five 
years.  
Chinese Taipei only regulates corn and soybeans and their products derived from recombinant-DNA. 
 Prior registration and approval is required from th e DOH Food Safety Bureau for biotech soybean and 
corn imports for food, feed, or processing use as well as for exports.  In May 2008, Chinese Taipei 
implemented registration for "stacked events".  
Chinese Taipei has approved 29 of the most widely commercialized bioengineered corn and soybean 
events.  Newly registered "stacked events" are required to meet regulatory food safety assessment 
requirements in order to verify food safety and protect human health; the authorities indicated that the 
relevant approval procedure would not disrupt trade. 
 
- Would the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu please provide 
the technical/scientific reasons why only corn and soybeans and their products derived from recombinant-DNA are regulated and not other products. 
 
Answer:  
Genetically modified foods or products must be registered and approved befo re entering the market. 
Currently, soybeans and corn are listed as priority it ems to protect the health of the domestic public 
and regulate the international flow of bulk food items .  Genetically modified so ybeans and corn must 
be reviewed according to the “Guideline for Food Safety Assessment of Gene tically Modified Foods 
Derived from Recombinant-DNA Organisms” to get approval for manufacturing, processing, 
deployment, or importation.  
 
IV. Trade policies by sector.  (2) Agriculture, livestock, and fisheries:  (iii) Border measures  
 
Paragraph 15 of the Secretariat Report states that rice remains the most protected crop, with imports 
subject to TRQs and some of the highest applied tari ffs.  In 2009, the in-quota tariffs for rice and rice 
products were 0 per cent and 0 per cent-25 per cent,  respectively, while the out-of-quota rates were 
NT$45/kg. for rice and NT$45/kg. or NT$49/kg. for rice products.  The AVE for the out-of-quota rate 
for rolled or flaked rice was 1,069.9 per cent (the sa me as in 2005).  The TRQ for rice is divided into 
two parts:  the government quota (65 per cent) a nd the private sector quota (35 per cent).  In 2007, 
after consultations with some WTO Members, Ch inese Taipei agreed to allocate the government 
import quota on a country-specific basis.  The private-sector quota is allocated through a bidding process.  By mid-December 2009, some 97.4 per cent of the annual TRQ for rice had been awarded 
(Table AIII.1). 
 - Would the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu please explain 
the technical criteria for determining ri ce quota amounts and the allocation mechanism 
applied to rice imports, especially on a country-specific basis. WT/TPR/M/232/Add.1 
Page 64  
 
   
Answer:  
Our rice annual quota is 144,720 metric tons calc ulated on a brown rice basis. 35% of the rice 
quotais imported on a global basis by the private sector and allocated thr ough a competitive process. 
65% of the rice quota is imported by the government. The quota was allotted to specific countries in accordance with the provisions of Article 13 of  the GATT 1994 and allocate d through a competitive 
process as well. 
 
The specification of governmental procurement depe nds on the actual needs. For the 35% of rice 
quota imported by private sector, th ere are no limits on specifications. 
 
(iv)  Domestic support measures:  (a) Pric e support and other product-specific measures   
 
The Secretariat Report states that during the re view period, the COA applies price stabilization 
measures for a number of agricultural products (Tab le IV.1).  The AFA and/or government-owned 
enterprises buy these products at guaranteed prices (determined on the basis of production costs); the 
difference between the guaranteed prices and th e actual market prices represents a government 
subsidy.  According to the latest WTO notificati ons submitted by Chinese Taipei, total market price 
support amounted to NT$3.23 billion in fiscal year 2006/07 (NT$2.91 billion in 2005/06), of which 
rice received almost 90 per cent, tobacco leaves 6.4 per cent and sugar 4.5 per cent.  The authorities 
have indicated that they will submit domestic s upport notifications for 2007 and 2008 as soon as all 
data have been collected.  
- Would Chinese Taipei please indicate whether it already has information for notifying 
agriculture domestic support for 2007 and 2008 a nd, if not, what information is still 
outstanding. 
 
Answer:   
We have almost completed our domestic support no tification document for 2007 and will submit it in 
the near future. As for the notification of 2008, we are currently collecting  its relevant data. We will 
submit these two DS notifications once they are completed. 
 
Manufacturing:  (i) Overview 
 The Secretariat Report states that the Statute for U pgrading Industries (SUI) was phased out at the end 
of 2009 in accordance with its own sunset clause.  The special tax incentives under the SUI have 
seemingly been removed while the general business in come tax rate has been reduced as part of a 
broader tax reform (Chapter I).  It was not clear to the WTO Secretariat whether the SUI was 
generally considered to have reached its objectives in a cost-effective manner. 
 
- Would Chinese Taipei please confirm whethe r the tax incentives under the SUI have already 
been removed and, if so, what types of schem e have replaced them.  Would it kindly also 
explain the consistency of these new in centives the Agreement on Subsidies and 
Countervailing Measures. 
 
Answer:   
According to the Art.72 of SUI, all of tax incenti ves were expired at the end of 2009. To help our 
industries continue to innovate in today’s highly competitive international environment and 
throughout this new, innovati ve and knowledge-intensive era, the government has formulated the 
Statute for Industrial Innovation (SII), as a replacem ent for the Statute for Upgrading Industries.  
 
Due to all tax incentives of the SUI were expired at end of 2009, th e SII only maintain a tax incentive 
for R&D activities. Both domestic and foreign com panies who incorporate in accordance with our  WT/TPR/M/232/Add.1 
 Page 65 
 
 
  Company Law are eligible for the tax incentive on an equal basis. The tax incentive provided under 
the SII scheme complies with the ASCM. 
 
(d) Textiles and clothing 
 
According to the Secretariat Report, Chinese Taipei 's textile and clothing industry has undergone 
major structural adjustment over the last d ecade as increased labour costs have made it less 
competitive, particularly in the apparel sector.  At the same time, the liberalization of global textile 
trade resulting from the expiry of the WTO Agreement on Textiles and Clothing in 2005, has led to 
stronger competition in export markets.  In orde r to develop new competitive advantages, Chinese 
Taipei's textile industry is gradually shifting to hi gher value-added and dive rsified products, focusing 
on R&D, innovation, and design. 
 - Would Chinese Taipei please explain the various measures aimed at promoting product 
differentiation in functional and industrial textiles. 
 
Answer:   
For functional textiles, the promotion strategy for product difference has been executed to vertically 
integrate all the industrial segments to mutua lly develop new product ideas. Other than the 
integration, the government establis hed a promotion platform for textiles industry to work out with 
other industries such as medical applications using t extile materials.  This cooperation model is then 
reinforced to become a supply-chain alliance bearing more solid operations. 
 
Intellectual Property:  Geographical indications 
 - Is any distinction made between an appellation of origin and a geographical indication?  Do 
the two co-exist in Chinese Taipei's legislation? 
 
Answer:  
Since we are not a member of the Lisbon Agreement for the protection of Appellations of Origin and 
Their International Registration, we are not obligated  to protect the Appellation of Origin.  Therefore, 
our legislation does not provide any protection for the Appellation of Origin.  However, we provide 
protection for GI in accordance with TRIPS regulations.  If the Appellation of Origin meets the definition of GI, then protection in line with  our related regulations will be provided. 
 
- Are geographical indications subject to any review procedure and, if so, what form does the 
review take and which is  the implementing authority?  What types of remedy are available for 
challenging administrative decisions in this sphere? 
 
Answer:  
According to our Trademark Act, GI may be registered as a geographical certification mark or 
geographical collective trademark for protection.  We do not have sui generis systems for GI. 
 
Applications for a geographical certification mark or geographical collective trademark are to be 
filed with TIPO.  When TIPO receives the applicat ion, a formal, substantive examination is carried 
out.  Requirements for the examination procedure are listed in the Examination Guidelines on 
Certification Marks, Collective Trademarks and Coll ective Membership Marks .  TIPO may seek the 
opinions of other competent authorities with regard to  the qualification or capa bility of the applicant 
or the articles governing use; other examination pr ocedures and protection are the same as those for 
trademarks.   
When a third party deems that the approval for registration of a geographical certification mark or 
geographical collective trademark is in violation of legislation, the third party may file for opposition WT/TPR/M/232/Add.1 
Page 66  
 
  or invalidation to cancel the registration.  TIPO will examine the case accord ingly.  If there is a 
disagreement with TIPO’s decision, the case can be  appealed or a request for administrative remedy 
can be filed. 
 
 
BRAZIL
 
 
TRADE POLICY REGIME 
 
Document WT/TPR/S/232 Page 27, Paragraph 36 
 
Duty-free, quota-free for LDCs 
 
36. Chinese Taipei grants duty-free access to items of least developed country (LDC) origin 
(Chapter III); the product coverage is particularly limited compared with that of its FTAs.  Chinese 
Taipei does not receive GSP (Generalized System of Preferences) treatment from any of its trading 
partners; nor does it provide GSP treatment  to imports from developing countries.  
 
Questions
: Brazil is taking steps to implement its DFQF fo r LDCs. In that light, it would be helpful if 
Chinese Taipei could answer to a few questions rela ted to its own scheme, already in place. Within 
Chinese Taipei’s duty-free, quota-free program granted to LDC countries could you clarify: (i) what is 
the percentage of tariff lines covered by the scheme?   (ii) what is the percentage of value of 
Chinese Taipei’s imports from LDCs covered by it ?  (iii) which products are excluded from the 
scheme, if any?  (iv) what are the key criteria of rule of origin being applied (percentage of value 
addition, among others)?  (iv) is there any safeguard  mechanism in place to cope with a possible surge 
in imports under the scheme?  If so, how does it work?  (v) what is the procedure for a LDC to apply 
for preferences under the scheme? 
 
Answer:  
(i) Product coverage: 1.7% of all our tariff lines (8730 items). 
(ii)  Trade coverage: In terms of the 2009 impor t value, the duty-free trade coverage is 96.45%. 
(iii) In the scheme, there are a total of 149 8- digit tariff lines which are duty free for LDCs.  
(iv) Goods imported from an LDC s hall be regarded as originated in that country, or, where there 
are two or more countries involved in the produc tion of the goods, the production process conducted 
by that LDC has added value to the goods by a ra tio of no less than 50%. The origin criteria for 
products imported from LDCs a re governed by Article 8-11, Chapt er III of the Regulations Governing 
the Determination of Country of Origin of an Import Good.  (v) We do not have any safeguard mechanism in pla ce to cope with a possible surge in imports 
under the scheme. (vi) Concerning country coverage of the LDCs, we follow the criteria published by the UN.  
  
ARGENTINA
 
 
WT/TPR/S/232, Report by the WTO Secretariat 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES (5) T
RADE LAWS, REGULATIONS , AND TRANSPARENCY  
 Paragraph 20:  "Between 2006 an d 2010 (1 March), Chinese Taipei  met notification requirements 
under various WTO Agreements (Table AII.1), ex cept for those relating to domestic support in  WT/TPR/M/232/Add.1 
 Page 67 
 
 
  agriculture (2007, 2008); according to the author ities, these will be submitted when required data 
become available (Chapters III and IV)."  
- When does Chinese Taipei consider that the information on domestic support in agriculture 
(2007, 2008) will be available for notification to the WTO? 
 
Answer:  
We have almost completed our domestic support no tification document for 2007 and will submit it in 
the near future. As for the notification of 2008, we a re currently collecting its relevant data. We will 
submit these two DS notifications once they are completed.  
(8) I
NVESTMENT REGIME  
(i) Direct investment 
 Table II.1 lists the sectors in which direct investment is prohibited. 
 - Would Chinese Taipei kindly provide further information on the reasons why investment is 
prohibited in sectors such as "Tour bus services", "Radio broadcasting industry", "Radio 
television industry" and "Special recreational servi ces", and why it is restricted in sectors such 
as "Civil air transport" and "Banks", inter alia . 
 
Answer:  
For Radio broadcasting and television industry, as th ere have been general con cerns, such as culture 
issues, about the liberalization of audiovisual servi ces, we have hence retained some limitations. 
For civil air transport, limiting foreign investment in civil air transport is a quite common practice in 
the world. Civil air transport not only has strong influence on our finance, tourism and foreign 
exchange income, it also has multiple functions such  as providing domestic transport, military or 
emergency transport and promoting the developm ent of aeronautical science and technology. 
 
For tour bus services, we are open for investment in passenger transportation in the area of car 
rental services for foreigners. In our Highway Law,  foreign investment in bus services, tour bus 
services, and taxi services are prohibited, due to  consideration of our very small and heavily 
populated land space.  
For special recreational services, in  accordance with the “Statute  For Investment By Foreign 
Nationals”, service for amusement purpose with servi ce personnel, such as  ballroom, singing club, 
liquor bar, special coffee/tea shop, bar, dance hall, and night club etc. are not open for foreign 
investment. 
 For banking services, some prudential measures ma y be imposed to ensure stability, safety and 
efficiency of our financial market.  
Footnote 63 (Paragraph 42):  "Enterprises with less than 45 per cent non-Chinese-Taipei investment 
may be requisitioned or e xpropriated by the Government based on essential security considerations, 
but with payment of proper compensation." 
 
- Would Chinese Taipei kindly specify these pot ential "essential security considerations".  
Have there been any cases of expropriation on th e basis of such considerations since 1995? 
 
Answer:  
The term “essential security consid eration” used in the WTO secretari at’s report refers to Article 13 
of the “Statute for Investment by Foreign Nationals”. For further details, please see: 
http://www.moeaic.gov.tw/system_exter nal/ctlr?PRO=LawsLoad&lang=1&id=27. WT/TPR/M/232/Add.1 
Page 68  
 
   
As a free and democratic society, since the intr oduction of this law in 1954 until now, there has no 
case of such expropriation in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu. 
 Paragraph 49:  "Under the Statute for Upgrading Industries (SUI), until end 2009 tax incentives for 
investment in Chinese Taipei included:  (a) accel erated depreciation for certain equipment and 
facilities, such as those used for R&D, experimentat ion, and quality control purposes, as well as those 
used for energy conservation or for environmenta l protection;  (b) deduction from income tax of a 
certain amount of investment from profit-seeking enterprises for certain equipment or technology 
(e.g. related to protection of the environment and facilitation of information technology), for 
investment in R&D and personnel training, and for investment in resource-poor or lesser developed 
rural areas;  (c) investment tax credits for share holders in companies investing in "newly emerging, 
important and strategic" industri es (Chapter IV), and five-year ta x holiday for such companies;  
(d) tax exemption for 50 per cent of royalties for pe rsonal creation or innovation;  (e) income tax 
exemption on technical royalty payments;  and (f) exemption from import duties and business taxes 
for certain industries.  Other relevant incentives included those aimed at encouraging mergers and 
consolidation of companies." 
 
- Would Chinese Taipei kindly specify which production sectors benefited from these measures 
while the "Statute for Upgradi ng Industries" was in force. 
 
Answer:  
Companies of the manufacturing industry and technological services industry have enjoyed tax 
credits during SUI’s promul gation period of from 19 91 to the end of 2009. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE (1) I
NTRODUCTION  
 Paragraph 5:  "(…) Similarly, rebates of internal  sales taxes are used to facilitate trade by ensuring 
that exported goods are not subject to doubl e taxation (in both Chinese Taipei and importing 
countries)." 
 
- Would Chinese Taipei kindly indicate which in ternal taxes are eligible for rebates and 
describe their characteristics (for example, whether they are single-stage taxes, multi-stage 
taxes, cascade taxes, etc.). 
 
Answer:  
The business tax of export of goods may be refunded. In addition, the tobacco and alcohol tax paid on 
tobacco products and alcohol products may be ref unded; and the commodity tax paid on specific 
goods (including rubber tires, cement, cool drinks, Flat-glass, oils, electric appliances and vehicles) 
may be refunded.  
Paragraph 6:  "A global market expansion plan in place since e nd 2008 includes discounted interest 
rates for loans; it was intended to aid exporters f acing declining orders from overseas.  Various forms 
of assistance, including subsidies for production and c onsequently trade, continue to be provided for 
agricultural, fisheries, and industrial products a nd activities.  Chinese Taipei has not notified any 
export subsidies to the WTO."  
- Would Chinese Taipei kindly provide details of the loan programmes and their characteristics 
and state which production sectors have benefited. 
  WT/TPR/M/232/Add.1 
 Page 69 
 
 
  Answer:  
To address the global crisis, we drew up a global market expansion plan named the “New Cheng Ho Plan”. This plan aims to assist businesses in fi nding export opportunities It provides, among others, 
export credit insurance and export loans to exporters .  Those measures are short-term, temporary (to 
be ended at the end of 2010) and suitable for any industry. Interest ed exporters can file applications 
to the Export-Import Bank.  
 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration, documentation, and procedures  
Paragraph 13:  "As from 2007, an exporter or impor ter (including publicly-owned firms) whose trade 
performance in the preceding year has reached a prescribed amount qualifies as an "excellent" 
importing/exporting business.  Benefits include:  bei ng listed in a BOFT directory;  awards;  reduced 
(or eliminated) service fees, and preferential treat ment for "special-case" services available from 
TAITRA (section (3)(vii));  a higher line of credit,  in conformance with relevant Ministry of 
Economic Affairs (MOEA) regulati ons on extension of credit;  and specific certification marks." 
 
- Would Chinese Taipei kindly specify the ch aracteristics required of a business for it to be 
considered an "excellent" importing/expor ting business.  Please also describe the 
characteristics of the credit lines granted to such businesses and state which businesses have 
benefited. 
 
Answer:  
Only corporations or business firms registered with  the BOFT in accordance with the Regulations 
Governing Registration and Administration of Exporters and Importers can be qualified as an 
“excellent importing/exporting business”. 
 An exporter/importer whose export/import perform ance in the preceding year has reached a certain 
prescribed amount and whose registration has not been cancelled, nullified or abolished may be 
awarded by the competent authority as an excelle nt exporting/importing business and be included in a 
directory of excellent businesses compiled and prin ted by the competent authority. The “prescribed 
amount” referred to in the preceding paragraph sha ll be publicly announced by the competent 
authority.   
According to BOFT regulation of “Guidelines on l oan for enterprises to promote their brands in 
overseas markets”, the line of cred it for every plan can’t reach over 70% of requirement of fund; but 
for the excellent exporters/importers in recent five years, the line of credit can increase to 80% of 
requirement of fund.   
(iii) Tariffs 
(g) Tariff exemptions and other concessions 
 Paragraph 35:  "The Ministry of Finance has authority to adjust customs duties in order to deal with 
an "extraordinary" economic situation, domestic or overseas, or a situation to accommodate the 
supply of goods, or to provide a "reasonable opera tional environment" without seeking the approval 
of the legislature.  Adjustments are allowed within  50 per cent of the statutory duty rate or quantity 
and may be applied for up to one year.  By this means, since the previous TPR, the MOF decreased 
customs duties on 30 items (19 items more than in 2004) to cover fuels and certain basic foodstuff, 
e.g. cereals, tomato products and dairy products (T able III.3).  Reportedly, since 2007 the additional 
food-related adjustments have been aimed at stab ilizing commodity prices and to help ease inflation." 
 
- Would Chinese Taipei kindly furnish statistics for imports of the products mentioned in the 
Report during a recent period (for example 2008 and 2009). WT/TPR/M/232/Add.1 
Page 70  
 
  Answer:  
 
Tariff number Description Temporarily 
adjusted rate Applied rate 2008 imports 
(Unit: NT$1000) 2009 imports
(Unit: NT$1000)
31021010 Urea, for fertilizers us e 1 2 1,947,866  1,066,065  
31021020 Urea, coated 1 2 — 1,127  
31051000 Goods in this chapter in tablets or similar 
forms, or in packages of a gross weight not 
exceeding 10 kg 1 2 711,413  456,268  
31052000 Mineral or chemical fertilizers containing the 
three fertilizing elements: nitrogen, 
phosphorus and potassium 1 2 201,594  125,858  
31053000 Diammonium hydrogenorthophosphate 
(diammonium phosphate) 1 2 25,272  78,007  
31054000 Ammonium dihydrogenorthophosphate 
(monoammonium phosphate) and mixtures 
thereof with diammonium 
hydrogenorthophosphate (diammonium phosphate) 1 2 306,623  342,786  
31055100 Other mineral or chemical fertilizers 
containing nitrates and phosphates 1 2 — — 
31055900 Other mineral or chemical fertilizers 
containing the two fertilizing elements, 
nitrogen and phosphorus 1 2 12,894  6,338  
31056000 Mineral or chemical fertilizers containing the 
two fertilizing elements, phosphorus and 
potassium 1 2 28,703  47,080  
31059000 Other fertilizer s 1 2 91,029  128,995  
38249052 Chemical fertilizers, other than those in 
Chapter 31 1 2 44,289  27,017  
27101110 Gasoline 5 10 178,903  885,917  
27101939 Other diesel fuel 2.5 5 3,981,093  2,546,946  
10011000 Durum wheat, unmilled, for feeding 3.25 6.5 14,574,562  11,235,900  
11010010 Wheat flour 8.75 17.5 520,488  297,462  
11022000 Maize (corn) flour 3 6 75,767 78,182 
11031100 Groats and meal of wheat 10 20 1,532  960  
11031300 Groats and meal of corn 5 10 17,165  25,094  
12081000 Flours and meals of soya beans 1.5 3 106,432  73,112  
23033000 Brewing or distilling dregs and waste 1.5 3 411,784  506,191  
10019000 Other wheat and meslin 3.25 6.5 1,322,199 923,060 
4021090 Other milk and cream, in powder, granule or 
other solid form, of a fat content, by weight, 
not exceeding 1.5% 5 10 1,951,665 1,491,920 
4022190 Other milk and cream, in powder, granule or 
other solid form, of a fat content, by weight, 
exceeding 1.5%, not containing added sugar or 
other sweetening matter 5 10 2,136,490  2,221,321  
19011000 Other preparations for infant use, put up for 
retail sale 2.5 5 1,845,825  1,745,418  
19019021 Prepared milk powder, milk food canned or 
packaged, 5 lbs and under for retail 6 12 3,333,796  2,807,977  
19019022 Other milk powder, prepared 6 12 1,201,364  1,355,167  
12074000 Sesamum seeds 6 12 930,357  1,424,391  
Ex20029000 Other tomatoes prepared or preserved 
otherwise than by vinegar or acetic acid 5 10 284,961  162,943  
04059010 Milk fat, anhydrous 4 8 398,825  403,522  
04051000 Butter 2.5 5 1,067,405  745,969  
Table (cont'd) WT/TPR/M/232/Add.1 
 Page 71 
 
 
  Tariff number Description Temporarily 
adjusted rate Applied rate 2008 imports 
(Unit: NT$1000) 2009 imports
(Unit: NT$1000)
84082091 Compression—ignition internal combustion 
pistion engines, of a cylinder capacity 
exceeding 3,000 cc, for diesel vehicles 1.25 2.5 2,122,078  2,272,660  
Ex84099110 Connecting-rods 6.25 12.5 133,767  189,539  
Ex84099120 Cylinder body, valve conduit, valve blocks for 
motor vehicles 5.75 11.5 1,802,174  1,874,168  
Ex84099190 Other parts suitable for use solely or 
principally with spark-ignition internal 
combustion piston engines 7.5 15 1,955,556  1,955,561  
84831010 Transmission shafts and cranks for motor 
vehicle engines 7.5 15 490,451  624,951  
85365040 Switches for motor ve hicles, for a voltage not 
exceeding 1,000 V 6.25 12.5 464,415  496,209  
87082919 Other pressed elements of ve hicles 6.25 12.5 1,282,841  1,354,312  
87082990 Other parts and accessories of bodies 
(including cabs), of the motor vehicles of 
headings 87.01 to 87.05 7.5 15 2,255,327  1,934,562  
87083020 Other brakes or servo-brakes 2.5 5 — 796,766  
87083099 Parts of other brakes and servo-brakes 2.5 5 —  1,762,195  
87085019 Other drive axles with differential, whether or 
not provided with other transmission 
components 6.25 12.5 — 307,604  
87085029 Other non-driving axles and parts thereof 7.5 15 — 143,166  
87088010 Suspension shock-absorbers 7.5 15 — 308,371  
87089210 Silencers and exhaust pipes 7.5 15 — 156,195  
87088020 Other suspension systems 7.5 15 — 149,300  
87088090 Parts and accessories for suspension systems 7.5 15 — 64,145  
87089190 Parts of radiators 6.25 12.5 — 187,674  
87089290 Parts of silencers and exhaust pipes 7.5 15 — 16,205  
87089499 Parts of other steering wheels, steering 
columns and steering boxes 3.75 7.5 — 644,540  
87089510 Safety airbags with inflater system 7.5 15 — 119,069  
87089590 Parts of safety airbags with inflater system 7.5 15 — 90,111  
87089990 Parts and accessories for other mo tor vehicles 7.5 15 7,464,883  7,498,804  
90292010 Speed indicators and combined meters, for 
motor vehicles 5 10 334,772  328,058  
 
(iv) Other charges affecting imports 
 
Paragraph 36:  "Indirect taxes, including the busi ness tax, the commodity tax, and the tobacco and 
alcohol tax are levied at the same rates on impor ts as on domestically produced goods (and services)." 
 - Would Chinese Taipei kindly explain the nature of these taxes (for example, whether they are 
single-stage taxes, multi-stage ta xes, cascade taxes, etc.). 
 
Answer:  
Business tax is levied on the sale of goods or servi ces within the territory of the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu and the import of goods. It is a multiple-stage 
general sales tax. Business tax is levied in two forms: value-added and non value-added. Value-added 
business tax is levied under a value-added base (input tax credit). Non-value-added tax is levied 
under a gross receipt base.  
 WT/TPR/M/232/Add.1 
Page 72  
 
  Commodity tax and tobacco and al cohol tax are levied on specific goods when sold on ex- factory 
basis or upon importation in order to realise the goals of specific policies. They are the single-stage 
excise taxes. 
 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(i) Taxation and tax-related assistance 
(c) Tax incentives 
 
Paragraph 85:  "Until end 2009, the main ve hicle for the government to promote industrial 
development remained the Statute for Upgrading Indu stries (SUI) (Chapters II and IV).  Domestic and 
non-Chinese-Taipei businesses are eligible for tax in centives directed at facilitating automation and 
"newly-emerging, important and strategic"  industries, new knowle dge-economy industries 
(e.g. biotechnology and new pharmaceutical industry as from 2007), R&D, pollution control, energy conservation, and personnel training.  Recently, Chinese Taipei has designated industries such as 
semiconductors, image displays, digital content,  and biotechnology as new profit bases for its 
industrial development.  Chinese Taipei seeks to build a stronghold of R&D based on high quality 
manpower and a knowledge-based economy.  Income tax incentives include:  accelerated depreciation 
on certain equipment and facilities;  a tax credit fo r investment in certain equipment, R&D, and 
personnel training, and for investment in resource- poor or lesser developed rural areas;  tax holidays 
for investment in "newly-emerging, important and strategic" industries." 
 
- Would Chinese Taipei kindly provide a list of  the programmes mentioned in the Secretariat 
Report. 
 
Answer:  
Paragraph 85 of the Secretariat’s Report cites tax incentives of the Statute for Upgrading Industries 
(SUI) were expired at the end of 2009. For further information, please see the document of 
G/SCM/N/186/TPKM. 
 
IV. TRADE POLICIES BY SECTOR 
(2) A GRICULTURE , LIVESTOCK , AND FISHERIES  
(iii) Border measures  
Paragraph 16:  "During 2005-2008, special safegua rd measures (SSGs) were adopted to reduce 
imports of rice, peanuts, chicken products, milk, poultry offal, red beans, pears, garlic bulbs, 
shaddock, pork belly, betel nuts, dr ied shiitake, persimmons, and dried day lilies.  On certain products 
SSGs have been triggered several times; imports  of affected products have usually continued 
notwithstanding the application of SSGs tariffs." 
 - Would Chinese Taipei kindly indicate what percentage of the tariff quota for each product 
mentioned in the Secretariat Report was used during the period 2005-2008. 
 
Answer:  
With regard to the imposition of additional duty on 15 agricultural products, each product is levied 
one third of the MFN duty for the item when imports  exceed a trigger volume in accordance with the 
provision of paragraph 4 of Article 5 of the Agreement on Agri culture.  The additional duty will not 
be imposed on the in-quota impor ts. Therefore, the SSG will not affect the in-quota imports.  
 
(iv) Domestic support measures (b) Loans 
 
Paragraph 25:  "The Agricultural Product Import Da mage Relief Fund provides financing to facilitate 
adjustment in agricultural industries affected by in creased imports.  Eligible products are rice, fruit,  WT/TPR/M/232/Add.1 
 Page 73 
 
 
  peanuts, tea, poultry, pig raising, dairy cattle, and aquaculture.  Projects financed under the Fund 
include support for structural adjustment, training of agricultural labour, plant disease control, animal 
health inspection and sanitation, marketing, and management.  Total disbursements from this fund 
amounted to NT$4.18 billion between 2005 and 2008." 
 The programme mentioned would appear to cons titute a subsidy on agricultural products under the 
Agreement on Agriculture (AoA). 
 
- Although the measures identified are credits, they  could come under the concept of "domestic 
support" under the AoA (the amounts of the dis bursements are set out in Footnote 22 to the 
Secretariat Report).  Does Chinese Taipei in tend to notify these measures to the WTO? 
 
Answer:  
We reconfirm that this program is not relevant to loan. , In addition,  the measures of this program 
have  already been revealed in our domestic support notifications.   
 TURKEY
 
 
Report by the Secretariat  
 
II. TRADE POLICY REGIME   p. 28, para. 41  
The Secretariat’s report mentions that “inbound direct  investment is prohibited in industries” where it 
may affect “good customs and practices” among other things like security.  
 
- Could Chinese Taipei further explain the “good customs and practices”? 
 
Answer:  
According to Article 7 of the “Statute for Investme nt by Foreign Nationals,”  foreign investment is not 
permitted in industrial sectors which “may negati vely affect national security, public order, good 
customs and practices, or national health”.  The term “good customs and practices” is a direct 
translate from Chinese.  It means roughly the well accepted conducts or manner by the society.  In the 
context of this Statute, it means businesses such  as gambling or prostitution are not allowed for 
foreign investment. Actually they are not allowed even for our nationals. 
 p. 33, para. 48 
 The Secretariat’s Report cites “government partic ipation in investment” as a possible incentive for 
direct investment.   - Could the Chinese Taipei further explain the forms of such government participation in 
investments and confirm whether such a method is used for foreign investments as well? 
 
Answer:  
1. To participate in investment, we set up a D evelopment Fund. The forms of its investment can 
be public share holding or participation in major enterprise or project on new starup or capital 
expansion basis.  
2. The government participation in above-menti oned investment is applicable to foreign direct 
investment in our territory.  WT/TPR/M/232/Add.1 
Page 74  
 
   
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 p. 35, para. 7 
 The Secretariat’s report points out that “in 2009, 18% of the applied standards were aligned to 
international standards, down from 25% in 2005.”  - Given that all standards introduced between  2005 and 2008 were harmonized with existing 
international ones (as explained in para. 95), Could the Chinese Taipei explain the reasons 
behind the decrease in the rate of alignm ent with the international standards?  
 
Answer:  
The alignment rate dropping from 25% in 2005 to 18% in 2009 was mainly due to two reasons. One 
reason was the re-evaluation of the definition of international standardizing bodies. In 2006, the Guide for Alignment of APEC Member Economies’ Standards with Internati onal Standards, endorsed 
by the APEC/CTI in 1996, was used as the criteria to calculate the alignment rate. In the Guide, 
references were made to 27 international organiza tions listed in the ISO/IEC KWIC Index of 
International Standards, which was less than the numb er of international stan dardizing organizations 
that was used for calculation in 2005. Another reason was the integration of standards of a similar nature.  Nevertheless, in Table III.7, we provided a rate  of 74.16%, which we believe is a better way of 
representing the harmonization status of our stand ards, as harmonization is only possible when 
related international standards exist. This calcul ation would show an increase of the alignment rate 
from 71% in 2005 to 74.16% in 2009.  In addition, 221 standards are now referenced by te chnical regulations, and all of them are aligned 
with international standards.  
p. 36, para. 13  
 
The Secretariat’s report that status of “excellent” importing and exporting business provides certain 
benefits including “higher line of credit”.  
 
- Could the Chinese Taipei explain ;  - which government agency is responsible to provide such credits?  
 - which purposes (like export financing) such a credit is provided for? 
 - Whether such credit is provided to excellent importing companies as well?  
Answer:  
1. Bureau of Foreign Trade, Ministry of Economic Affairs (BOFT) is responsible for providing 
such credits. 2. According to BOFT regulation“Guidelines on loans for enterprises to promote their brands 
in overseas markets”, the line of cred it for each individual project can not be more than 70% of its 
required fund. However, for the excellent exporters/i mporters in the past five years, the line of credit 
of each individual project can increase to 80% of its required fund.  
3. An exporter/importer whose export/import p erformance in the preced ing year reached a 
certain prescribed amount and whose registration has  not been cancelled, nullified or abolished may 
be awarded by the Ministry of Economic Affairs by being cited as an excellent exporting/importing 
business. The “prescribed amount” referred to in the p receding paragraph is p ublicly announced by 
the Ministry of Economic Affairs. The awarded exc ellent exporters/importers  can apply for the loan 
as mentioned above.  WT/TPR/M/232/Add.1 
 Page 75 
 
 
  p. 37, para. 19 
 
- Could the Chinese Taipei explain the amendmen ts the redefinition of the “model year of 
imported cars” and change from “average trade in  price” to “trade in price” have brought in 
the customs valuation of the used cars? 
 
Answer:  
In accordance with both the provisions of the “I mplementation Agreement on Article VII of the GATT 
1994”, also known as the “WTO Va luation Agreement” and Article 29 - 35 of the “Customs Act,” the 
methods of valuation of imported goods a reto be applied  in a sequential order. 
 If the Customs value cannot be determined accord ing to Articles 29 - 34 of the “Customs Act,” the 
Customs value shall be determined using reasonable means on the basis of data available to Customs, 
which is consistent with Article 35 of the “Customs Act.” As for valuation of the imported used car, 
both “Model Year” and “TRADE-IN PRICE” of N.A.D.A. (a used car magazine issued in the U.S.A.) are merely used as one of the reasonable means  as references for Customs valuation purpose. 
 
Using “Model Year” instead of “Registration Year ” of the used car as the basis for customs 
valuation is more reasonable.  The reason why the customs valuation of the used cars that is based on “trade-in price” altered from 
“average trade-in price” in the N.A.D.A. is that “trade-in price” can better reflect the condition than 
“average trade-in price.” 
 
p. 44, para. 37  
 
- The Secretariat’s Report mentions the trade pr omotion fund. Could the Chinese Taipei specify 
the kind of activities the Fund is used for?  
 
Answer:  
The Fee is used for: 
Expenditures regarding business affairs of foreign institution;  
Expenditures regarding foreign trading busin ess entrusted to the External Trade 
Development Council, other relevant institutions, juristic persons or business associations; 
Expenditures for participating in activities and p ublic relations of international economy and 
trade organizations; 
Expenditures for international trade meeting negotiations and investi gations and visits; 
Expenditures for the training of international trade talent; Expenditures for protection measu res of international trade;  
Expenditures for expanding business markets and bal ancing business development projects; 
Expenditures to guide an exporter/importer in  expanding trades or cooperating with foreign 
business; 
Expenditures for propagation and exh ibition of expanding business; 
Expenditures for collecting, investigating, researching and publishing the domestic and 
foreign business data; Expenditures for other things benefiti ng for an exporting /importing business;  
Expenditures for management and general affairs; 
Other relevant expenditures.  
 
- Could the Chinese Taipei explain the relationshi p if any between this Fund and the activities 
of the TAITRA? 
 WT/TPR/M/232/Add.1 
Page 76  
 
  Answer:  
TAITRA is one of our major trade promotion organiza tions.  A portion of the Fund is allocated to 
TAITRA for its trade promotion activities, such as coordinating trade missions and participa ting in major overseas trade shows; 
promoting international branding and image enhanc ement through international design exhibitions, 
workshops, and competitions; holding trade-related training cou rses for the local bu siness community. 
 
p. 58, para. 89 
 
The Secretariat’s report mentions that “the Cent ral Bank offers special loans via the commercial 
banking system at preferential rates to finance imports of machinery and equipment for major 
industries”.   - Could the Chinese Taipei explain how the preferential rates are determined?   
Answer:   
During 2005-2009, we did not extend any such loans. We have provided clarification to the 
Secretariat for the revision of its report.  
IV. TRADE POLICIES BY SECTORS 
 
p. 90, para. 64 
 
The Secretariat’s Report mentions that “new de velopment strategies were  approved” for various 
sectors.   
- Could the Chinese Taipei provide information on these strategies? 
 
Answer:  
In order to enable our service industry to beco me an engine for increasing added value, creating 
employment, raising the quality of life and promoting economic grow th, we approved in July 2009 a 
service development plan encom passing major strategies such as enhancing competitiveness, 
bolstering R&D and innovation, creating differentiated services, and improving service industry 
statistics.  We also designate a number of service se ctors such as tourism, medicine and healthcare, 
cultural and creative industries as a priority. 
 
REPLIES TO ADDITIONAL QUESTIONS FROM TURKEY 
 Report by the Secretariat   
I. ECONOMIC ENVIRONMENT, (4) STRUCTURAL POLICIES 
 (iii) Privatization, page 9, para. 26  
The Secretariat Report mentions that the privati zation processes in Chinese Taipei have stalled in 
recent years and the government invol vement persists in many areas. 
 It is understood that the standstill in the process of privatization stems both from legislative and 
political constraints.  - Could the Delegation of Chinese Taipei explain if there are any measures considered to deal 
with the virtual standstill in the privatization process?  WT/TPR/M/232/Add.1 
 Page 77 
 
 
  Answer:   
Privatization of state-owned enterprises(SOEs ) remains on top of our policy priorities. 
 
The following table shows the SOEs privatiza tion process and the time lines envisaged. Due to 
various reasons, the privatization schedules of m any of these SOEs have had to be re-reviewed and 
adjusted. 
 
Privatization progress of enterprises listed in Secretariat Report Table AIII.4  
Company name Government 
ownership in 
2009 (%) Privatization Methods Date Set for 
Privatization. 
China Shipbuilding Corp. (CSC) 38.83 Share offering Privatized at 2008 
Taiwan Power Co. (TPC)a 94.04 Currently being planned : public offering, listing DR 
(Depositary Receipt), strategic investor are all viable 
options Re-evaluation 
Tang Zong Iron Works Co. 12.35 Share offering Privatized at 2006 
Aerospace Industrial Development 
Corp. 99.71 Convert division assets to shares in a new private 
company, then process IPO (initial public offering) Re-evaluation 
Chinese Petroleum Corp. (CPC) 100 Privatize vi a strategic sale of shares Re-evaluation 
Taiwan Sugar Corp. (TSC) 83.42 Privatization via sale of strategic business units 
(SBUs) Plan being 
processed; time undecided 
Taiwan Water Supply Corp. 
(TWSC)a 82.40 Contracting out Suspended 
Taiwan Tobacco and Liquor Co. Ltd. 100 The MOF has set a requirement for the privatization 
that there be a consensus between the labor union and 
the corporation on the matter of the release of the 
shares as a prerequis ite to such release To be rescheduled  
Taiwan Financial Holdings (TFH) 100 None. (The financial market  of Taiwan is a very 
competitive market and the three state-owned banks 
do not hold any  exclusive rights.) None 
Bank of Taiwan 100 On 1 January 2008 Bank of Taiwan was merged into 
Taiwan Financial Holdings as a subsidiary  
Land Bank of Taiwan 100 None. (The financial market  of Taiwan is a very 
competitive market and the three stated-owned banks 
do not hold any  exclusive rights.) None 
Central Trust of China n.a. The merger between The Bank of Taiwan and Central 
Trust of China was completed on 1 July 2007  
Central Deposit Insurance 
Corporation 99.9995 According to the resolution of the meeting on 
relevant matters of the "Acceleration on setting up 
the timetable for privatization of government-owned institutions and enhancemen t of the functions of 
Privatization Task Force" chaired by the Directive 
Team of Privatization of the Ministry of Finance on 
17 October 1995, the business nature of the CDIC is 
not suitable for privatization None 
The Export- Import Bank  100 None. (The financial market  of Taiwan is a very 
competitive market and the three stated-owned banks 
do not hold any  exclusive rights.) None 
Printing Plant, Ministry of Finance 100 None. None 
Taiwan Railway Administration 
(TRA) Official 
Bureaucratic 
Agency First to be corporatized, followed by re-review of 
privatization process Suspended 
Chunghwa Post (CHP)a 100 The Committee of Public En terprise Privatization is 
examining some key issues involved in the postal 
privatization (such as “universal postal service.”)     No definite 
timetable  
RSEA Engineering Corporation 19 In 2009 the government completed the privatization 
of RSEA Engineering Corporation by formation of a 
private-owned enterprise thorough joint venture with 
private shares Privatized at 2009 
Long Ci Commercial Dynamite Plant 40  Privatized at 2006 
a Market monopolized. WT/TPR/M/232/Add.1 
Page 78  
 
  III. TRADE POLICIES AND PRACTICES BY MEASURE, INTRODUCTION 
 (vii) Government Procurement, page 49, para. 55   
Para 55 of the Secretariat Report reads that th ere are selective tendering practices in government 
procurement in certain circumstances. 
 - Could the Delegation of Chinese Taipei inform  the members on the criteria used for selection 
of tender method and if a similar selective tendering is also applicable for electronic 
procurement practices? 
Answer:   
Pursuant to Article 7 of the GPA, our tenderi ng procedures include open tendering procedures, 
selective tendering procedures and limited tendering procedures. Pursuant to Article 20 of our 
Government Procurement Act, the selective tendering procedures apply to the following 
circumstances: 1. where there is a recurring demand; 2. where the review of tenders takes a long time; 
3. where the supplier’s cost for pre paration of a tender is high; or 
4. where the qualification requirements for suppliers are complicated; or 
5. where it is a procurement concerning research and development.   The aforementioned selective tendering procedures  are also applicable for electronic procurement 
practices.  
 
 
CHINA
 
 
TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
 
QUESTION 1: (Page 32, Para. 47) 
 
According to the Secretariat Report, “Inbound cross-st rait direct investment requires approval by the 
Investment Commission, in accordance with relevant regulations. Restrictions are implemented through a positive list of industries open to inv estment originating in China; on 30 June 2009, the 
MOEA announced 192 items open to investment from Ch ina, including 64 items in the manufacturing 
industry, 117 in the services industry,  and 11 in public construction.”  
 
According to the Secretariat Report, “Chinese Taip ei's inbound FDI to GDP ratio (2.1%) is low by 
regional standards, which suggests that there is room for improving the investment climate 
(Chapter II). For example, restrictions on cross-stra it trade and investment may have been a deterrent 
for potential investors wishing to use Chinese Taip ei as an export hub to China and other countries; 
therefore, further improving cross-strait economi c relations could help increase FDI flows to 
Chinese Taipei.” (Page 14, Para. 37)  According to the Secretariat Report, “inbound direct i nvestment is prohibited or  restricted in several 
major sectors on grounds of essential security and public health; these prohibitions are implemented 
through a negative list or, in the case of investme nt from China, a positive list.” (Page10, Para6) 
 - Despite gradual reduction of restrictions on in vestment from China, only 192 items have been 
open so far. Does Chinese Taipei have any plan  for further liberalization on investment from 
China? If so, please specify the detailed plan as well as the approval procedures and criteria 
for further lifting the restrictions.  WT/TPR/M/232/Add.1 
 Page 79 
 
 
   
Answer:  
The 192 items open for the investment from China si nce June 30, 2009 are only for the first phase. 
Also, effective May, 20, 2010, we have opened a nother 12 sub-divisions of services in financial 
sectors including: financial intermediation, insu rance, as well as securities, futures and other 
financing for investment from China.  We are currently reviewing and planning for the second phase.  
 
TRADE POLICIES AND PRACTICES BY MEASURE 
 QUESTION 2: (Page 45, Para.40) 
 According to the Secretariat Report, “Since its pr evious TPR, Chinese Taipei has expanded slightly 
the scope of its import bans, which rose from 56 ten- digit HS items(2006) to 63(as of October 2008), 
involving mainly narcotics, toxic chemicals, hazardous wastes, and HCFC (hydrochlorofluoro 
carbon)compounds that are subject to trade restrict ions under internationa l agreements. Additional 
prohibitions apply to direct cross-strait imports  of some 2243 tariff lines (as of 20 November 2009), 
an increase of 45 lines since the previous TPR.”  According to the Secretariat Report, “Chinese Ta ipei prohibits inbound cross-strait trade involving 
some 2,243 tariff lines (HS 10-digit level), mostly ag ricultural products but also pharmaceuticals, iron 
and steel, electrical and electronic items, and te xtile-related products (Chapter III).” (Page 22, 
Para.47)  - Could the Delegation of Chinese Taipei provide a list of the 45 lines subject to additional 
prohibition applied to direct cross-strait impor ts since the previous TPR? Please also indicate 
on what ground the additional prohibition has been applied. 
Answer:  
The difference actually is 43 items.  It derives mainly  from the conversion to HS 2007 that results in 
the addition of 60 new tariff lines (including 29 lin es on beef products), the deletion of 7 old tariff 
lines and the amendment of 10 tariff lines from impo rt ban to liberalization (excluded from the above 
60 new tariff lines). 
 
Report by Chinese Taipei  IV. Trade Policy by Sector  
QUESTION 3: (Page 10, Para. 19)  
It is stated that in line with policy objectives, the Government is promoting development of emerging industries such as biotechnology, green energy , and intelligent industries (including patent 
commercialization, electric vehicles, green building,  and cloud computing). The Government will also 
enhance integration of traditional industries with hi gh-tech industries by raising their R&D capacity in 
order to upgrade these industries and expand their scale. 
 
- Please provide detailed information on the measures that Chinese Taipei has taken to promote 
development of emerging industries and to enha nce integration of traditional industries with 
high-tech industries. 
Answer:  
We introduced or continued with a slew of pr ograms designed to transform the economy in 2009.  
These programs include plans to develop Six Key Emerging Industries and Four Intelligent 
Industries.  WT/TPR/M/232/Add.1 
Page 80  
 
  The Six Key Emerging Industries are namely biotec hnology, tourism, green energy, medical care, 
high-end agriculture and the cultural and creative industries. In biotechnology, we will set up a venture capital fund as well as a business inc ubation center and bring the local regulatory 
environment in line with international standards. To  promote tourism, the government will capitalize 
on opportunities created by greater cross-strait interaction. For the “green” energy sector, 
photovoltaics, fuel cells, wind power generation, biofuels, electric vehicles and energy-efficient 
high-tech products are the focuses. In medicine, paper medical files will all be made electronic, long-
term care centers will be established and the qualit y of care available in rural communities will be 
improved. Additionally, medical tour ism from abroad will be promoted. 
 
In agriculture, the focus will be on organic agr iculture, agricultural technology, and expanding 
exports while supporting farming communities th rough expanded agritourism and the rebuilding of 
farming villages. With the cultural and creative i ndustries being a special focus of government 
attention, television, movies, popular music, crafts, design, and digital content will be promoted.   
Other promising areas have been in formally labeled the “Intelligent Industries”. These include cloud 
computing, intelligent electric vehicles, intellig ent green buildings and patent commercialization. 
Cloud computing aims to accelerate and upgrade ou r IT industries through strategies of autonomous 
supply, demand creation and integrated governance. Intelligent electric vehicles industry will be 
developed with strategies such as organizing electric vehicle demonstrations, creating a friendly 
environment, providing purchase incentives etc.  The government also endeavors to promote 
integrations and applications of  intelligent green buildings by raising the quality of life and 
advancing industrial development. For patent comm ercialization, the government has decided to 
speed up patent examination by recru iting additional staff and using external assistance in order to 
ease restrictions on the patent industrialization. 
  As for integrating the traditional industries with high-tech industries, the government will promote 
ICT value-added application in order to assist them  to design and to develop innovative products and 
services. 
 Additional Questions from China  
SECRETARIAT REPORT 
 
QUESTION 1: (Page 33, Para. 50) 
 “Following the phase-out of the Statute for Upgradin g Industries (SUI), the passing of the Statute for 
Industrial Innovation (SII) will cancel most tax incen tives and provide only four types of functional 
and non-discriminatory tax incentives: for research a nd development, manpower training, operations 
headquarters, and international logistics and distri bution centers. By the time of completion of this 
report in mid-April 2010, the draft text of the SII had not passed by the legislature.” 
 
- Could the delegation of Chinese Taipei please describe what outcome was brought about 
through the implementation of the Statute for U pgrading Industries (SUI)? Please also explain 
why the Statute for Upgrading Indus tries (SUI) has been phased out. 
- Please indicate the projected time for SII to enter into force and further elaborate on the 
contents and implementation scheme of the SII. 
Answer:   
The Statute for Upgrading Industries (SUI) was promulgated in 1990 with the goals of promoting economy liberalization and internationalization. SU I was estimated to generate a US$ 1.6 billion  WT/TPR/M/232/Add.1 
 Page 81 
 
 
  GDP and created 140,000 employment opportunities and it was expired at the end of 2009 according 
to its built-in sun-set clause.  
The Statute for Industrial Innovation (SII), as a rep lacement for the SUI, has been promulgated and 
implemented on May 12, 2010. We are drafti ng relevant guidelines and regulations now. 
 QUESTION 2: (Page 31, Para. 46) 
 “Chinese Taipei reviews and regulates all outbound cross-strait investments; as of September 2009, there were 37,488 cases of outbound cross-strait direct investment, mostly in manufacturing, 
representing a total of US$79.67 billion. Outbound cr oss-strait direct investment requires approval 
from the MOEA Investment Commission. A set of me asures has been passed aimed at broadening the 
range of investment opportunities available to Chines e Taipei companies seeking to invest in China.” 
 According to “Reviews on the industrial sector restrictions on outbound cross- strait direct 
investment” issued by Chinese Taipei on 10 February  2010, the prohibition list affecting  products or 
business projects of making direct investment in Mainland China covers 436 agriculture items, 
101 manufacture items, 4 types for services, and 13 items  for basic infrastructure. Please explain the 
rationale behind these restrictions and the approva l criteria and procedures for making cross-strait 
direct investment. Could Chinese Taipei explain if it has any plan to lift its restrictions imposed on 
cross-strait direct investment? 
 
Answer:   
According to the statistics of Investment Commissi on, Ministry of Economic Affairs (MOEA), China 
remains by far the biggest receiver of our outb ound direct investment.  In both years 2008 and 2009, 
over 70% of our FDI went to China. Until the end of 2009, our enterprises invested accumulatively 
82.7 billion USD in China, and in the first 5 mont hs of 2010, this figure increased to 87.3 billion 
USD.  In addition, according to China’s ow n official publication on January 15, 2010 
(http://www.fdi.gov.cn/pub/FDI/wz tj/wstztj/lywzkx/t2 0100115_117047.htm ), our FDI ranked 2nd 
among all other countries in 2009.  These trends cl early indicate that although there are still some 
minor restrictions, China continues to benefit from our FDI contribution in its economic development. 
 
As to the restricted industries mentioned, the rea sons for the restriction are mostly based on the 
consideration of sensitivity, vulnerability and strategi c policy planning.  Nevertheless, we recognize 
China’s concern in balancing and strengthening the overall cross-stra it relationship. The Investment 
Commission has not only simplified the application pro cedures, increased the capital ceiling, but also 
shortened the reviewing time for the investment pr ojects targeting the Chin ese market. Furthermore, 
it will work on to gradually lifting the restrictions fo r China-bound investment, so that our enterprises 
can fully utilize the advantage of global deployment.  
QUESTION 3: (Page 65, Para. 113) 
“In accordance with relevant laws and regulations, both domestic and non-Chinese-Taipei applicants 
for IPR protection receive the same level of protect ion; application procedures in terms of time and 
fees are also the same.” 
 - Could the delegation of Chinese Taipei please explain the procedures that non-Chinese-Taipei 
enterprises are required to go through in order to obtain intellectual property protection in 
Chinese Taipei? 
Answer:   
According to our Patent Act and Trademark Act,  a foreign enterprise which needs patent or 
trademark protection must apply with our compet ent authority; protection will begin after the 
patent/trademark is approved. WT/TPR/M/232/Add.1 
Page 82  
 
   
Copyright does not require any registration procedur e. Copyrights subsist upon completion of a work. 
Works by nationals of WTO economies are protected by  our Copyright Act starting January 1, 2001. 
Works by nationals of non-WTO economies are also pr otected by our Copyright Act if the work is a) 
published for the first time in Separate Customs T erritory of Taiwan, Penghu, Kinmen and Matsu, or 
b) published in Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu  
within 30 days 
after its first publication, and the original econom y gives our people the same protection for their 
works.  
 
For related protection procedure, please vis it http://www.tipo.gov.tw/en/AllInOne_Show.aspx?path= 
2527&guid=961447da-fef4-4e00-99f9 -f52352dd2c6a&lang=en-us About Intellectual Property Office 
PDF pp13-15.   
QUESTION 4: (Page 83, Para. 31)  
“At the same time, energy policy aims to establish a more liberal, efficient, and clean energy supply 
and demand system. In July 2009, the Energy Management Act was ame nded with the aim of 
improving energy efficiency and management. Th e main changes included guiding principles on 
energy development, an evaluation system for ener gy utilization, regulations on energy conservation, 
and mandatory labelling on energy efficiency.” 
 
- Please elaborate on the contents of the Energy Management Act with regard to the actual 
application of the evaluation system for energy utilization and energy efficiency management.  
What specific measures have been designed and adopted in the energy trading area? 
Answer:   
Our legislature has passed a revision of the En ergy Management Act, requiring energy products and 
vehicles to conform to energy efficiency standar ds and to have labels giving energy-efficiency 
information. The revised law also stipulates t hat energy users must observe energy-conservation 
rules, and that large users must undergo advance management. In the future, energy products and 
vehicles that are imported into or sold in our ma rket will have to be labeled with energy consumption 
and efficiency data, giving consumers better deci sion-making information and promoting energy 
conservation and emissions reduction; and this will  prompt businesses to import or manufacture 
products that are more efficient. 
 The revision establishes three vital factors for energy efficiency: market character, general 
application, and preventive nature. In the establishm ent of market character, in the past energy 
equipment and implements only had to comply w ith permitted consumption standards, and consumers 
did not have enough information to determine wh ether a product had high or low efficiency. The 
revised Energy Management Act stipulates that  importers, manufacturers, and dealers must post 
energy consumption and efficiency rating informa tion on the energy products and vehicles that they 
display and sell. Products without such labels w ill not be allowed to be displayed or sold.  
In regard to the general application of the progr am, in the past no regulations had been established 
that addressed category of energy user, type of en ergy consumption, energy conservation, or rational 
and efficient energy use. The revision provides a legal  basis for the authorities to use in establishing 
rules for the use of energy equipm ent and for energy efficiency by d esignated users so as to promote 
rational and efficient usage th rough a general expansion and reinf orcement of the management of 
energy conservation. It also requires users who rea ch a certain amount of energy consumption to 
designate energy management personnel responsible  for carrying out energy conservation and 
reporting energy use. This will establish an auto nomous energy efficiency capability among users. 
 
To assure a balance and the stability in short-, medium-, and long-term energy supply and demand, 
criteria will be established for energy developm ent guidelines and for the evaluation of energy  WT/TPR/M/232/Add.1 
 Page 83 
 
 
  development and utilization. The “prec autionary principle” will be adopt ed for large investments in 
production by energy users. The government authority will evaluate the total amount, type, efficiency, 
and positioning of the use of energy by facilities that are newly installed by such users, and will carry 
out follow-up and inspection to guide companies and development organizations in mapping out 
comprehensive energy-use plans that take overa ll national energy security into consideration. 
  
PERU
 
 
WT/TPR/S/232 
 
III. POLÍTICAS Y PRÁCTICAS COMERCIALES POR MEDIDAS 
 
2. M EDIDAS QUE AFECTAN DIRECTAMENTE A LAS IMPORTACIONES  
 
vii. Contratación pública 
 
¿Existe algún portal único electrónico para la publicación de la información sobre contratación pública, como leyes, reglamentos, convocatorias,  bases o pliegos de condiciones y adjudicaciones de 
contratos? ¿Dicha información se encuentra disponible en inglés?   
Answer:  
Our government procurement laws and regul ations are published on this website 
http://www.pcc.gov.tw. Notices of tendering and awards are publishe d on this website 
http://web.pcc.gov.tw. The above information in En glish is also available on the same websites. 
Tenders covered by the GPA will have a summary tender notice in English,  as required by Article 9 of 
the GPA. 
 
¿Las empresas de países no miembros del GPA pueden participar en las licitaciones o no? En caso la respuesta sea positiva, ¿se emplea alguna preferenci a, “offset” o “set aside” a favor de su industria 
local o sus PYMEs? 
 
Answer:  
For a non GPA-covered procurement, it is at the proc uring entity’s discretion as to whether it will be 
open for foreign competition. 
 
Pursuant to Articles 17, 43 and 44 of our Governme nt Procurement Act (GP Act), local suppliers may 
be accorded preferential treatments  except when otherwise prohibite d by treaties or agreementse.g. 
Government Procurement Agreement of WTOto which we have acceded. For example, offset may be 
applied to a non-GPA covered procurement.   
 ¿A partir de qué montos se convoca a procesos de licitación abierta pública? 
 
Answer:  
The threshold for open tendering procedures is NT$ 1 million. 
 
¿Existe un registro nacional de proveedores o registros por entidades? 
 
Answer:  
We do not have a registration system for suppliers in government procurement. 
 WT/TPR/M/232/Add.1 
Page 84  
 
  ¿Se pueden llevar a cabo transacciones en línea?  
 
Answer:   
Online electronic transactions are avai lable via our e-Procurement System. 
 
¿Las empresas extranjeras de países no miembros del GPA pueden presentar una reclamación 
(impugnar) ante un ente autónomo e independiente dis tinto de la entidad que lleva a cabo el proceso 
de licitación en concreto?  
 
Answer:  
Our Complaint Review Board for Government Pr ocurement (CRBGP) is available for foreign 
suppliers from non-GPA members. 
 
IV. POLÍTICAS COMERCIALES, POR SECTORES  
 
5) S ERVICIOS  
 ii) Servicios Financieros / c) Seguros 
 
En el párrafo 87 se señala que “[…] Los asegur adores que reúnen las condiciones prescritas están 
autorizados a negociar fondos de pensiones desd e 2005.” El Perú desea conocer cuáles son los 
requisitos específicos para que los asegura dores puedan negociar fondos de pensiones. 
 
Answer:  
According to the Implementation Rules for Annuity Insurance und er the Labor Pension Act, the 
qualification requirements for an insurer that wishes to engage in annuity business under the Labor 
Pension Act are as follows: (1) it must be a life insurance company or the branch of a foreign life 
insurance company registered in our territory pursuant to the Insurance Act;  (2) its ratio of total 
adjusted net capital to risk-based capital must not be  lower than 200% pursuant to the Insurance Act;  
(3) it must have been assigned a credit rating not lo wer than “A” from a rating agency that has been 
approved by the competent authority ;  (4) The competent authority has not ordered the dismissal of 
the company's general manager or any of its director s or responsible persons in the past three years 
for violation of insurance laws or regulations.  
iii) Telecomunicaciones y Servicios Postales / a) Telecomunicaciones 
 
En el párrafo 99 se señala: “[…] La Ley de Telecomunicaciones establece dos tipos de operadores de telecomunicaciones: las empresas de tipo I, propietarias y operadoras de instalaciones de red, que necesitan una licencia de la NCC y están sujetas a un reglamento que establece precios máximos (véase infra) y otras restricciones”. El Perú desea conocer a qué otras restricciones se encuentran 
sujetas las empresas de tipo  
 
Answer:  
The chairman of the Board, of a Type I telecomm unications enterprise shall not be foreign national. 
The total direct shareholding by foreign national s may not exceed 49%, and the sum of direct and 
indirect shareholding by foreign nationals ma y not exceed 60% (Chunghwa Telecom excluded).  
 For more details. Please check "Telecommunications  Act" and "Regulations Governing Fixed 
Network Telecommunications Businesses " at: 
http://www.ncc.gov.tw/english/news_detail.aspx ?site_content_sn=17&is_history=0&pages=0&sn_f=
364 http://www.ncc.gov.tw/english/news_detail.aspx ?site_content_sn=66&is_history=0&pages=0&sn_f=
392  WT/TPR/M/232/Add.1 
 Page 85 
 
 
  En el párrafo 99 también se señala lo siguiente: “[…] Las empresas de tipo II no tienen instalaciones 
de red;  necesitan una licencia de la Comisión y deben cumplir los reglamentos administrativos 
pertinentes, pero pueden fijar sus precios librement e y no están sujetas a limitaciones a las inversiones 
o de otro tipo.”. El Perú desea conocer qué requis itos se deben cumplir para obtener la licencia de 
empresa de tipo  
Answer:  
The relevant administrative regulations are Teleco mmunications Act and Article 4 of Administrative 
Regulations on Type II Telecommunications  Business. For more details, please check: 
http://www.ncc.gov.tw/english/news_detail.aspx ?site_content_sn=17&is_history=0&pages=0&sn_f=
364 http://www.ncc.gov.tw/english/news_detail.aspx ?site_content_sn=66&is_history=0&pages=0&sn_f=
133 
 
iv) Transporte / a) Transporte marítimo 
 
En el párrafo 111 se señala: “No se permite a los buqu es registrados en el extr anjero prestar servicios 
de cabotaje, a menos que se les otorgue una licencia. Para suministrar servicios de transporte internacional de pasajeros y carga en el territorio,  las empresas navieras extranjeras deben establecer 
una sucursal y mantener un fondo mínimo de operaciones de 12 millones de dólares NT. […]”. Sin 
embargo, el Perú desea conocer si además exis te un límite o restricción para incluir tripulación 
extranjera en el total de la tripulación.   
Answer:  
There are no requirements for the nationality of crews if foreign vessel carriers are going to establish 
a branch in order to provide internatio nal transport services to passengers and cargo. 
 
En el párrafo 113 se señala: “En noviembre de 2004, el Taipei Chino y China firmaron un acuerdo sobre transporte marítimo que puso fin a la prohibi ción del tráfico directo a través del estrecho.  Se 
han abierto rutas de transporte directas que perm iten a los buques chinos y del Taipei Chino navegar 
directamente a través del estrecho, sin tener que pasar por Hong Kong o la isla japonesa de Ishigaki. 
[…] Además de acortar los tiem pos de navegación, se espera que  reduzca las necesidades de 
almacenamiento y los costos globales de transporte, mejorando así la eficiencia y la competitividad de 
los puertos del Taipei Chino en la región.” Al respecto,  el Perú desea conocer si es que el tráfico entre 
China y el Taipei Chino es sólo de carga o también de pasajeros.   
Answer:  
Direct shipping routes between both sides of the Taiwan Strait have been permitted. The direct 
shipping includes both cargo and passenger transport.  
 
vi) Servicios Profesionales / c) Servicios de Arquitectura e Ingeniería  
 
En el párrafo 129 se menciona que “[…] Al final de 2009 había cuatro ingenieros profesionales y 11 
empresas de ingeniería extranjeros en el Taipei Ch ino.” Con relación a ello, el Perú desearía conocer 
de qué nacionalidades son estos profesionales y empresas de ingeniería.  
 
Answer:  
There are 2 Professional Engineers from the US, and 2 Professional Engineers from Malaysia. As to 
the 11 overseas engineering consulting firms, 6 are from Japan, 3 from the US, 1 from the UK and 1 
from Hong Kong, China. 
 WT/TPR/M/232/Add.1 
Page 86  
 
  Signos Distintivos
  
 En cuanto a los aspectos generales,  compartimos la inquietud formulada en el sentido de indagar las 
razones por las qué no se hacen miembros de OMPI para ser pos teriormente signatarios de los 
convenios o tratados que OMPI administra. Ello no obstante, se menciona en el texto que tienen 
instrumentos bilaterales (18) incluso antes de su adhesión a la OMC y de los nuevos acuerdos o 
memorandos de entendimiento que han firma do con Filipinas, España y Australia.  
 
Answer:  
Nationals of WTO members may, in accordance with  Article 4 of the Patent Act, Article 3 of the 
Trademark Act, Article 4 of the Copyright Act, and Article 5 of the Integrated Circuit Layout Protection Act, enjoy any rights under TRIPS, including the national treatment of TRIPS Article 3 and 
MFN of TRIPS Article 4. 
 
Otro punto importante es lo relacionado al trato naci onal que en realidad se está aplicando únicamente 
a los ciudadanos de países con los cuales tienen algún acuerdo o convenio bilateral y no de acuerdo a 
lo establecido por ADPIC.   Respecto a la parte de Marcas,  se menciona que están redactando modificaciones de 109 artículos de 
su Ley desde diciembre de 2009, entre ellas las re lacionadas con “ampliar el alcance de protección de 
las marcas a todos los signos que puedan represent arse gráficamente”. El Perú quisiera conocer 
mayores alcances al respecto, es decir, cuál es la regulación actual y qué se tiene previsto modificar. 
Asimismo, quisiera conocer respecto de cuál es el alcance del requisito de “representación gráfica”. 
En particular, el Perú quisiera  saber si cuando mencionan representación gráfica están incluyendo 
también marcas sonoras y olfativas a las que el Perú le asigna una representación gráfica (pentagrama, 
espectrograma o huella acústica en el caso de las sonoras y la descripción de un olor para las 
olfativas). 
 
Answer:  
According to Trademark Act 2003, a trademark may be  composed of a word, figure, symbol, color, 
sound, three-dimensional shape or a combination th ereof. Therefore, we already provide sound mark 
protection. A sound mark should be represented by a musical score, numerica l musical score or a 
written description in the application. In addition, a CD recording of the sound should be submitted 
along with the application. 
 According to the amendment to Article 18, Par agraph 1 of the Trademark Act currently under review 
at the government, any sign that can be used to  identify the source of th e goods or services may be 
registered as a trademark, including, but not  limited to, a word, figure, symbol, color, 
three-dimensional shape, motion, hologram, sound or a combination thereof. This purpose is to 
include any sign that can be used to identify the source of the goods or services and that it will be able 
to apply for registration and protection, including a scent. However, accordin g to the amendment to 
Article 19, Paragraph 3 of the Trademark Act currently being reviewed by the government, a 
trademark representation in an applic ation should be clear, precise, self-contained, easily accessible, 
intelligible, durable and objective, rather than represented graphically. TIPO will provide the 
examination guidelines on the criteria of judging whether a scent mark fulfills the aforementioned 
requirement in the future. 
 Otro tema incluido en sus modificaciones es que es tarían pasando del debilitamiento de la fuerza 
distintiva de una marca notoria a la probabilidad de  debilitamiento de la misma. Sería interesante 
poder conocer qué criterios están manejando al resp ecto, en base a qué tipo de pruebas objetivas 
estarían determinando que existe la  probabilidad de debilitamiento de la fuerza distintiva de una 
marca? Y por qué aparentemente aplicarían esto sólo  en caso de infracciones y no también en caso de 
una solicitud de registro.   WT/TPR/M/232/Add.1 
 Page 87 
 
 
  Answer:  
According to Article 70, Par agraph 1, Subparagraph 1 & 2 of the Amendments currently under 
review, a trademark right infringement shall be d eemed to have occurred wh en the consent of the 
trademark right holder is absent, knowingly using a trademark identical or similar to a well-known 
registered trademark of another person, or using the word(s) contained in the said well-known 
trademark as the name of a company or organization,  trade name or domain name or any other name 
identifying the body of whose business, and being likely to dilute the distinctiveness or reputation of 
the said well-known trademark. The purpose of the amendment is to lower the threshold of applying 
the provision, in order to prevent the distincti veness of the well-known trademark from being diluted 
in an early stage. After being amended, the pr ovision will be similar to the current ground for 
rejection of a trademark which is likely to dilute th e distinctiveness or reputation of the well-known 
trademark. Please refer to the Examination Guide lines for the Protection of Well-known Trademarks 
under Article 23, Paragraph 1, Sub paragraph 12 of the Trademark Act 
(http://www.tipo.gov.tw/en/MultiMedia_File Download.ashx?guid= 56635c5d-4955-4cab-b182-
67f7a5ea34d4). As the Article 23, Paragraph 1, Subparagraph 12 of the Trademark Act 2003 already 
provides the protection against the “likelihood of dilution” when examining the applications for 
registration, the criteria are not ju st applied for infringement cases. 
 
Respecto a las indicaciones geográficas, se señala que  están protegidas por la Ley de Marcas de 
Fabrica y que en el 2004 se estableció los puntos  operativas para su registro como marcas de 
certificación y que en el 2007 se reemplazaron estos puntos operativos por las directrices para el 
examen de marcas de certificación, las marcas de fabrica o de comercio colectivas y las marcas 
colectivas de una asociación. Sobre este quisiera acl aración sobre si: ¿Ello implica que actualmente 
una indicación geográfica puede ser registrada tant o como marca de certificación como marca de 
fábrica o comercio colectiva o como marca colectiva de una asociación?.   
Answer:  
GIs can be registered for protection as geogr aphical certification marks or geographical collective 
trademarks rather than collective marks. 
 Finalmente, respecto a observancia se menciona que  se puede iniciar acciones legales de acuerdo a los 
códigos civil, administrativo y penal (y sus respec tivos códigos de procedim iento). Se señala que las 
infracciones dan lugar a la destrucción, eliminación , suspensión por las aduanas de la puesta en 
circulación y el decomiso de las mercancías. Sin embargo, no queda claramente establecido si estás 
facultades corresponden exclusivamente a la autori dad de aduanas o si la Oficina de Propiedad 
Intelectual (TIPO) del Ministerio de Asuntos Económ icos también cuenta con las mismas facultades.  
 
Answer:  
Customs refers all IPR infringing cases to the judici al authority, which is the competent authority to 
determine whether the goods are infringing products or not. If the goods are confirmed to be 
infringing products, Customs authorities will hav e the responsibility to destroy the goods under 
customs regulations.  If a criminal case is judged as guilty  by the court, the c onviction is confirmed, and the tortious objects 
are declared confiscated,  the verdict shall be executed by the dist rict prosecutors’ office that brought 
up the charge and the same district office shall also proceed to destroy the object. 
 Regarding the enforcement of trademark protectio n on the border, Customs’ authorities are to 
suspend the release of goods by re quest or ex officio. Provisions regarding destruction, confiscation 
and fines are the under jurisdiction of the courts or prosecutors’ office, and are not under TIPO 
authority. 
 WT/TPR/M/232/Add.1 
Page 88  
 
  Derecho de autor
  
 Es de interés para el Perú conocer los avances que han obtenido especialmente en la disminución de la 
piratería en materia de discos ópticos y software, así como las modificaciones normativas en materia de limitaciones a la responsabilidad de los proveedores de servicios en Internet y las disposiciones que 
declaran como infracción la implementación de sist emas de intercambio de files “peer to peer” que 
promuevan la infracción al Derecho de autor por lo  que solicita información más detallada sobre estos 
aspectos. Sin embargo, se desprende del repor te que información sobre dichas reformas está 
disponible en la web.   
Sin perjuicio de ello, hay una pregunta específic a que está relacionada con el cumplimiento del 
artículo Tercero de los ADPIC (TRIPS Agreement), sobre Trato Nacional. Sucede que en el reporte se señala que cuando las obras pertenezcan a autores na cionales de países con los cuales se haya firmado 
convenio de reciprocidad, habrá protección a las mi smas. Y que cuando el autor pertenezca a países 
que no hayan firmado esos convenios de reciproc idad, será posible la protección sólo si se ha 
publicado la obra en el país en el lapso de trei nta días posteriores a su publicación original o cuando 
se hayan publicado por primera vez en Taipei. El  Perú quisiera conocer cómo se explica esta 
disposición en relación a la di sposición de Trato Nacional es tablecida en los ADPIC (TRIPS 
Agreement).   
Answer:  
Nationals of WTO members may, in accordance with  Article 4, Subparagraph 2 of our Copyright Act, 
enjoy any rights under TRIPS, including the national treatment of TRIPS Article 3. 
 
Nationals of non-WTO members may enjoy the same prot ection as our nationals,  in accordance with 
Article 4, Subparagraph 1 of our C opyright Act, provided their works are first published in the 
Separate Customs Territory of Taiwan, Penghu, Kinm en and Matsu or are published in the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Ma tsu within 30 days after their first publication, 
if the country of that national provides the same protection to our nationals.  
 
Invenciones y Nuevas Tecnologías   
 Si bien el Taipei Chino señala su compromiso  de cumplir las obligaciones asumidas con la 
suscripción del ADPIC al haberse adherido a la OMC y además manifiesta expresamente que la 
protección de los derechos de PI es de importancia  decisiva para que se convierta en una economía 
basada en el conocimiento, la innovación y la inv estigación y desarrollo y por consiguiente atraer 
inversiones extranjeras; NO es miembro de la OMPI y por lo tanto no ha suscrito ninguno de los 
Convenios que esta organización admi nistra, siendo algunos de ellos de relevancia para el Perú, tales 
como el PCT, el Convenio de París, el Arreglo de Lisboa, el Tratado de Budapest, entre otros. Sería 
importante conocer los motivos por los cuales no forman parte de la OMPI y la aparente contradicción 
entre su voluntad de globalizarse a partir de la PI  pero sin participar de los Tratados que la OMPI 
administra.   
Answer:  
Since we are not a member of United Nations, we a re unable to join WIPO or be a signatory to any 
WIPO conventions. We welcome your support of our accession to WIPO.  
 Respecto al principio del Trato Nacional (artíc ulo 3 de ADPIC) aparentemente se generaría una 
distorsión ya que el Taipei Chino estaría exigie ndo que para tener los mi smos derechos que un 
nacional, los solicitantes extranjeros deben proveni r de un país que haya firmado algún acuerdo 
multilateral sobre PI o de reciprocidad con el Taip ei Chino. La posibilidad de imponer esta condición 
no está contemplada en el artículo 3 de ADPIC.  
  WT/TPR/M/232/Add.1 
 Page 89 
 
 
  Answer:  
Nationals of WTO economies may, in accordance with Article 4 of the Patent Act, enjoy any rights 
under TRIPS, including the national treatment of TRIPS Article 3 and MFN of TRIPS Article 4. 
 
En cuanto a la modificación de la legislación para au torizar las patentes de plantas y animales, si bien 
se trata de una opción legislativa que tiene base en la disposición del artículo 27.3.b) de ADPIC, sería 
importante consultar cómo se van a relacionar los sistemas de protección para las plantas 
considerando que cuentan también con un sistema su i generis para las obtenciones vegetales a través 
de una Ley especial. Si bien ambos sistemas puede n coexistir (se pueden “combinar” en términos de 
ADPIC), en ningún caso deben generar duplicidad de protección y debe quedar claro el ámbito en el 
que se desenvuelven y en el que determinada planta merecerá protección (los Estados Unidos de América concede protección para las plantas a través de patentes y de certificados de obtentor, pero 
delimitó claramente cuándo se protege de una u ot ra manera dependiendo de l tipo de generación o 
procreación de la especie: sexual o asexual, con esto se evitan duplicidades de protección).  
 
Answer:  
Once we allow the animal and plant patent, it is indeed possible to have duplicated protection on the 
patent right and plant variety right. However, the dup licated protection of right is normal in our legal 
system. Given the differences in the requirements, sc ope and limitation of rights on a patent and plant 
variety, it is necessary to allow a patent right  along with the existing plant variety right. 
 
Si bien el sistema de licencias obligatorias se ajusta , en términos generales, a las disposiciones de 
ADPIC sobre la materia, el Perú tiene un coment ario: según el sistema del Taipei Chino se conceden 
patentes para las invenciones y para los modelos de utilidad (al igual que en nuestro sistema) además 
de los diseños industriales (en el sistema peruano no se patentan). ADPIC establece expresamente en 
su artículo 31 que las licencias obligatorias se apli can a “patentes” pero no precisa si se trata de 
patentes de invención o patentes de modelo de u tilidad (en realidad ADPIC no establece disposiciones 
sobre modelos de utilidad), excluyendo sí la pos ibilidad de licencias obligatorias a los diseños 
industriales (dibujos y modelos industriales en  su terminología). El Taipei Chino excluye 
expresamente de la posibilidad de ser materia de una  licencia obligatoria a las patentes de modelo de 
utilidad, por lo que sería importante analizar si -considerando lo expuesto- esta limitación encuentra 
sustento en el carácter de ADPIC como norma pi so o implica algún tipo de desconocimiento de sus 
estándares. Sólo a manera de complemento, en el Perúsí sería posible impone r una licencia obligatoria 
para una patente de modelo de utilidad.  
 
Answer:  
Our compulsory license can be used in the utility model. With regard to design patent, since it does 
not cause an anti-competitive effect, it is hard to imag ine what kind of effects it could have on social 
benefit, therefore, compulsory licensi ng does not apply to design patent.  
 
 CHILE
 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES (6) T
RADE AGREEMENTS AND ARRANGEMENTS  
(i) The WTO 
 
 Paragraph 24, page 22.  As regards the ne gotiations on rules and anti-dumping measures in 
particular, the Report highlights Chinese Taipei's convi ction that free trade benefits development.  In 
this connection, it emphasizes the need to re duce discretion and abuse in the application of 
anti-dumping measures.  Since there has been almost no  progress in this sphere in the first stage of the 
Doha Round negotiations, what does Chinese Taipei pr opose in order to make better headway towards 
achieving the objectives of the Friends of Anti-Du mping Negotiations, a group to which it belongs? WT/TPR/M/232/Add.1 
Page 90  
 
  Answer:  
We will continue to work collectively with FANs to coordinate positions on anti-dumping issues, with 
an aim to harvest the results on transparency issu es achieved by the Negotiating Group on Rules and 
at the same time, to continue working on more cont roversial issues, such as zeroing, sunset reviews, 
and lesser duty rule.  We hope that through the joint efforts of this informal group, the hard-won 
achievements on market access negotiations can be  preserved, and that they will not be eroded by 
abusive anti-dumping measures. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) M EASURES DIRECTLY AFFECTING IMPORTS  
(vi) Contingency measures 
 
 Paragraph 47, page 46, states that "[a]nti dum ping and countervailing duties may be in force 
for five years.  The MOF may initiate ex officio a review process regarding the continuation of these 
duties;  such a review may also be introduced upon the request of the applicant or any other interested 
party".  How long may the measures be extended on ce the review process has been conducted?  Is 
there a maximum period of extension or continuation of anti-dumping duties?  
Answer:  
We have not imposed any countervailing measure si nce our accession to the WTO in 2002. In our 
practice, if the authorities concerned determine that the expiry of the duty would be likely to lead the continuation or recurrence of dumping and of injury,  we will continue to impose the anti-dumping 
duty for another 5 years. These measures subject to be  reviewed and may conti nue to impose for every 
5 years. 
 
(vi) Standards and other technical requirements 
(a) Standards, technical requirements, and inspection 
  Paragraph 93, page 59.  How has the Mutu al Recognition Agreement on Electro-Magnetic 
Compatibility been operating?  Are major results an ticipated in terms of facilitating trade in the 
products involved?  
Answer:  
In the area of electro-magnetic compatibility (EMC) for electrical and electronic products, the BSMI 
signed MRAs with the United States (only in formation technology equipment), Canada (only 
information technology equipment) and Australia. Under the MRAs, EMC test reports issued by 
testing laboratories, designated by the designating authority of the exporting country, are accepted by 
the importing countries. The MRAs with New Zealand and Singapore covers mutual recognition on test reports and certificates. They help to avoid repetitive testing of the products. 
 
 Paragraph 96, page 60.  Is there an internal  mechanism of coordination with the authorities 
responsible for preparing technical regulations a nd/or conducting conformity assessment procedures?  
Is there a mechanism of coordinatio n with industry on these matters? 
 
Answer:  
We establish an Interagency Working Group on TBT und er the Task Force of Global Trade Strategy 
Alliance and Arrangement, which serves as a pla tform for regulatory authorities to exchange views 
and experiences on issues concerning technical regula tions/conformity assessment procedures. In 
addition to the operation of the TBT Interagency Wo rking Group, regulatory authorities also have to 
follow the requirements stipulated in the Admini strative Procedure Act when adopting technical 
regulations. The requirements include, among ot her things, transparency and consultation with 
interested parties. 
  WT/TPR/M/232/Add.1 
 Page 91 
 
 
   Paragraph 97, page 61.  What has been the experience in implementing the Supplier's 
Declaration of Conformity system?  Does the third-party conformity mechanism still exist? 
 
Answer:  
We have been implementing Declaration of Conf ormity (DoC) on low-risk products since 2002. We 
submitted two working papers (G/TBT/W/195 and G/TBT/W/195/Add.1) to the TBT Committee to share our experience. Items subject to SDoC have been expanded from 19 in 2002 to 67 in 2010. For other products that have safety concerns,  we still require third-party certification. 
  Paragraph 98, page 61.  May foreign producer s apply to the BSMI for the CNS Mark to 
demonstrate that their products comply with domestic standards, as domestic manufacturers are 
entitled to do?  
Answer:  
Applications for the CNS Mark are open to both domestic industries and foreign industries. Related 
information about the CNS Mark and application proce dures is available at the BSMI’s website at 
http://www.bsmi.gov.tw/wSite/c t?xItem=20609&ctNode=3563&mp=2. 
 
(vii) Competition and consumer protection policy 
 
 Paragraph 142, page 74.  The competiti on policy section states that the Fair Trade 
Commission (FTC), which is the principal authority in  this field, in some cases may approve export or 
import cartels.  What are the criteria for deciding whether or not to approve such cartels?  Who may be adversely affected?  Is there any justifica tion in the event of potential discrimination? 
 
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 following requirements is beneficial to the ec onomy as a whole and in the public interest, and the 
application with the central competent authority fo r such concerted action has been approved:… 4. 
entering into agreements concerning solely the competition in foreign markets for the purpose of 
securing or promoting exports; 5. joint acts in re gards to the importation of foreign goods for the 
purpose of strengthening trade;…”  
 
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 import cartels are food manufacturers applied for joint purchasing and shi pping of the imported bulk cargos such as 
soybeans, wheat, and corns.   
 
Possible injured parties of these approved actions are those undertaking do not participate in the 
joint actions or domestic/foreign competitors and trad e counterparts. However, according to Article 
15 of the FTA, the FTC may attach conditions or require undertakings and must always specify a time 
limit in these granted approvals.  Article 16 furt her states that should the cause for approval no 
longer exist, should the economic condition changes, or  should the enterprises involved engage in any 
conduct beyond the scope of the approval, the FTC ma y revoke the approval, alter the contents of the 
approval or order the enterprises in volved to cease from continuing the conduct, rectify its conduct or 
to take necessary corrective actions. This may count eract possible anti-compe titive effect arise from 
these actions.  WT/TPR/M/232/Add.1 
Page 92  
 
  The conditions imposed by the FTC may include al lowing any one participant to import grains by 
itself and not excluding any one participant without ju stifications to prevent from any discrimination. 
So far, the FTC has not received any compla in for discrimination from undertakings.  
  
COLOMBIA
 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(1) I NTRODUCTION  
 
 In paragraph 1, the Secretariat mentions that  since Chinese Taipei's previous TPR in 2006, 
trade-policy-related institutional changes incl ude the establishment of the Office of Trade 
Negotiations in 2007, as its primary trade negotiati ons body, and the Intellectual Property Court in 
2008.  Chinese Taipei has made good progress in its regul atory reform and seems to have most of the 
necessary legal and administrative mechanisms in place for regulatory transparency and reviews.  
Many laws and regulations are made available through publications and government websites.  
Chinese Taipei met virtually all its notification requirements under various WTO Agreements during 
the review period.  Anti-corruption efforts were  pursued with the amendment of the Corruption 
Penalty Act and the preparation of a draft "integrity action plan".  1. What does the "integrity action plan" consist of? 
 
Answer:  
The Plan of English version is available on the website. Please see: http://www.moj.gov.tw/pub lic/Data/051991059197.doc  
 
 According to paragraph 2, "Chinese Taipei increased its involvement in the multilateral 
trading system, becoming a signatory to the plur ilateral Agreement on Government Procurement from 
15 July 2009, and continued to participate actively in efforts for the successful conclusion of the 
Doha Round of negotiations.  Chinese Taipei pursu ed free trade agreements (FTAs) with trading 
partners in Central America, a nd is continuing or planning nego tiations with others.  FTAs are 
becoming motivated primarily by economic considerations.  In addition to its contribution to aid for trade and trade-related technical assistance activiti es, Chinese Taipei has provided duty-free treatment 
for selected imports from least developed countries (LDCs).  Despite some opening to cross-strait investment recently, Chinese Taipei continues to pr ohibit inbound cross-strait trade involving some 
2,243 tariff lines". 
 2. What are the criteria for prohibiting inbound cross-strait trade in products under these 2,243 tariff lines? 
 
Answer:  
In light of the unique circumstances across the Taiw an Strait, related trade issues will be addressed 
bilaterally. 
 
 In paragraph 3, the Secretariat reports that "[a]s regards cross-strait outbound direct 
investment, a set of measures were taken in 2008  aimed at broadening the range of investment 
opportunities available to Chinese Taipei companies seeking to invest in China and vice versa.  
Various incentives, including tax incentives, continue to encourage investment, including inbound direct investment".  3. What incentives has Chinese Taipei establishe d in order to promote direct investment? 
  WT/TPR/M/232/Add.1 
 Page 93 
 
 
  Answer:  
In order to foster investment and remove invest ment barriers, the government actively encourages 
investments from selected target  investors.  Task forces and industrial promotion offices are 
responsible for identifying these investors.  In addition, the "Coordination Office for Investment 
Promotion" was set up to provide one-stop service  to handle major investment projects of over 
NT$200 million in the manufacturing sector as well as to deal with the development projects of 
industrial parks, multi-purpose industrial and commerci al districts, independent power plants, etc. 
 
On May 12, 2010, the Statute for Industrial Innovatio n (SII) came into effect, providing tax offsets for 
R&D expenditures. All corporations incorporat ed under the Company Act can enjoy tax credits 
provided under SII.   
 (2) G
ENERAL INSTITUTIONAL FRAMEWORK  
  According to paragraph 7, "[a]s from February 2008, the 113 members of the legislative serve 
a term of four years, which is renewable after re -election.  The functions of the legislature are, 
inter alia :  to decide by resolution statutory or budgetary bills". 
 4. What are the powers of the legislature regarding the adoption of rules concerning 
Chinese Taipei's trade policy? 
 
Answer:  
International agreements, including those under the WT O, whose content involves important issues or 
rights and duties of the people should be sent to the legislature for deliberation, unless it is authorized 
by laws or pre-determined by the legislature.  
 Paragraph 8 reports that "[t]he  judiciary consists of courts at all levels (Supreme, high and 
district courts);  according to the authorities, it is an independent judiciary.  It is responsible for the 
adjudication of civil, criminal, and administrative litig ation, as well as the discipline of civil servants.  
As from 2003, its 15 grand justices have been nomina ted and, with the consent of the legislative, 
appointed by the highest government authority for a term of eight years;  they cannot serve 
consecutive terms.  However, eight of the gr and justices (including the president and the 
vice-president of the judiciary) who were nomi nated by the highest government authority in 2003 
served a four-year term.  Through group consultations, the grand justices interpret the basic law of 
Chinese Taipei and unify the interpretation of all ot her laws and ordinances.  A notable development 
since the previous TPR is the establishment of  the Intellectual Property Court on 1 July 2008 
(Chapter III)".  5. What were the reasons that prompted Chin ese Taipei to establish the Intellectual Property 
Court?  Does the Court have its own substantive a nd procedural rules?  How does it operate?  What 
has been the experience in this regard and what r esults have been achieved?  May foreigners bring 
matters before the Intellectual Property Court? 
 
Answer:  
The IP Court officially began its operation in July 2008 is to further enhance the quality of our court 
proceedings and to also effectively handle the complexity of IPR cases.  The IP Court operates at the same level as th e High Court and hears cases relating to patents, 
trademarks, copyrights, optical disk management, tr ade secrets, and integrated circuits. Since each 
case contains technical matters, the IP authority (i .e. TIPO) assigned 10 patent examiners to the IP 
Court to assist judges in solvi ng cases concerning technical matters. 
 WT/TPR/M/232/Add.1 
Page 94  
 
  The IP Court has functioned well since its establis hment. The IP Court currently has only 9 judges 
and a president.  Since the establishment in July 2008 to the end of May 2010, 2,277 cases had been 
filed with the Court (of which 488 involved foreign na tionals), therefore, each Judge has to deal with 
approximately 140 cases a year.  
Foreigners can also file a lawsuit in IP court.  
(3) S
TRUCTURE OF TRADE POLICY FORMULATION , IMPLEMENTATION AND EVALUATION  
 
 Paragraph 14 states that "[s]ince Sept ember 2003, the WTO Center of the Chung-Hua 
Institution for Economic Research (CIER) has unde rtaken:  strategic and significant cross-field 
research in order to support government policie s related to the WTO;  the setting up of a 
WTO database and website to enha nce information flow and provide learning support;  training of 
talented individuals in trade and economics;  and promotion of international exchange activities in 
order to increase Chinese Taip ei's role in WTO work". 
 
6. How is the CIER staffed, how does it operate, and how is it financed? 
 
Answer:  
After our accession to the WTO in 2002, the governme nt immediately convened relevant authorities to 
set up the Program of International Economic and Trade Research and Training Center (WTO Center 
Program), which is responsible for WTO- and FTA-related research, training, and database 
collection. The Program, funded by the government  has been assigned to the competent agencies 
according to the government procu rement procedure. Currently, the cont ract has been awarded to the 
WTO Center of the Chung-Hua Institution for Ec onomic Research (CIER) as the publicly and 
objectively selected winner. 
 The CIER was established in 1981 as an independent  research institution. Regarding the operation of 
WTO Center Program, major WTO and FTA issues a re undertaken by research units led by research 
fellows. These core research units  are further supported by research fellows from CIER and invited 
professionals from other institutions to crea te multidisciplinary research capabilities.  
 
(4) T
RADE LAWS, REGULATIONS AND TRANSPARENCY  
 
 According to paragraph 16 of the Secretariat Report, "Chinese Taipei's obligations under the 
WTO Agreements supersede those under domestic laws  or regulations.  Trade, including all matters 
covered by WTO Agreements, falls within the powe r of the Government of Chinese Taipei.  In the 
event that the measures taken by local levels of government have an impact upon trade, those 
measures are subject to regulation by the Governme nt of the Separate Customs Territory, which may 
overrule or invalidate measures of local levels of  government.  A natural or juridical person whose 
rights and interests in a matter relating to issues c overed by the WTO Agreements are impaired by an 
administrative action in Chinese Taipei is permitted to appeal such action".  
7. Do the obligations under the WTO Agreements supersede all types of domestic legislation?  
Please specify whether there have been cases where the WTO Agreements superseded trade measures 
adopted at local level. 
 
Answer:  
International treaties entered in to force after being duly ratified and promulgated would have the 
same force and effect as our domestic laws.  Ou r Government would eliminate or nullify measures 
taken by our local levels of government should they are inconsistent with WTO provisions from the 
date of our accession on.   WT/TPR/M/232/Add.1 
 Page 95 
 
 
   According to paragraph 17, "[b]y 2007, Chin ese Taipei had reportedly made good progress in 
its regulatory reform programme in line with the AP EC's Bogor Goal;  it seems to have most of the 
necessary legal and administrative mechanisms in place for regulatory transparency and reviews". 
 8. What does the Regulatory Impact Analysis (RIA) mechanism entail and how does it operate? 
 
Answer:  
Our Government has integrated the spirit of RIA into the legislative and regulatory process, laying 
down clear requirements for administrative agencies to  incorporate public consultation, justifiability 
and consistency check, the principles of proportiona lity, cost-benefit analysis, and consideration of 
impact on small and medium enterprises, gender equa lity, and human rights, into the drafting of laws 
and regulations.  Regulators or competent authorities are required to  provide impact analysis with each major legal 
bill. Although RIA methodology has been intr oduced, individual agencies may choose their own 
assessment approach depending on needs.  
 
 Paragraph 18 of the Secretariat Report indicates that "[a]s a result of these efforts there has 
been substantial deregulation in services, investme nt, and customs, especially relating to free trade 
zones.  Deregulation efforts are now aimed at improving competitiveness and effectively promoting 
economic development.  Since May 2008, the Cabine t has undertaken the deregulation of 32 policies 
involving 40 laws and regulations, a nd another 67 policies to be relaxe d by the end of 2008 covered, 
inter alia , cross-strait economic and trade relations;  the financial market;  tax administration;  land 
utilization;  human resources, education and trai ning;  industries requiring special permission;  
logistics;  and enterprise operations". 
 
9. With a view to revision of the pertinent lega l framework, what criteria did the Government of 
Chinese Taipei use for selecting the biotechnology, travel and tourism, green energy, medical care, 
high-end agriculture, and cultural and creative industries? 
 
Answer:  
We have taken an active approach as well to review regulations of six emerging industries, with the 
aim of removing impediments to market compe tition and economic development caused by overly-
restrictive and ill-designed regulation, ensuring fa ir competition, and encouraging innovation. 
 
At the present stage, the most important tasks ar e to remove barriers to market access, to ease 
restrictions on inter-industry operation, to free up the movement of capital and human resources, and 
to reduce unnecessary business regulation. 
 
(5) I NVESTMENT REGIME  
  According to paragraph 42 of the Secretariat Report, "[n]on-Chinese Taipei investors must 
obtain approval for their company name in Ch inese Taipei from the MOEA's Department of 
Commerce or Investment Commissi on (investments in ordinary i ndustrial zones).  The approved 
investment must be undertaken in full within the set time limit, or the approval may be revoked.  
Inward direct investment (other than from China) in enterprises that are expropriated for reasons of 
essential security is subject to comp ensation, under certain conditions". 
 10. Inward direct investment (other than from China) in enterprises that are expropriated for 
reasons of essential security is subject to compen sation, under certain conditions.  Please explain in 
detail the conditions under which an expropria ted enterprise is subject to compensation. 
 WT/TPR/M/232/Add.1 
Page 96  
 
  Answer:  
According to Article 13 of the “Statute for Invest ment by Foreign Nationals” (an English translation 
of this law can be viewed on-line at: http ://www.moeaic.gov.tw/system_external/ctlr?PRO= 
LawsLoad&lang=1&id=27), the Government may only expropriate or acquire an invested enterprise, 
against reasonable compensation, for the need of national defense.  However, as a free and 
democratic society, since the introduction of this  law in 1954 until now, there has not been any one 
case of such expropriation. 
 
 According to paragraph 45 of the Secretaria t Report, "Chinese Taipei maintains bilateral 
agreements on investment protection with 27 countries;  all agreements contain an MFN clause, 
applied on a reciprocal basis, except for one agreement where Chinese Taipei's commitment is 
unilateral.  By end 2009, it ha d concluded agreements for the avoidance of double taxation with 
respect to income taxes with 16 countries and is willi ng to negotiate with other interested economies;  
among these agreements only the agreement with Singa pore contains "tax sparing" provisions, as the 
"tax sparing" provisions contained in the agreemen ts with Malaysia and Viet Nam have expired.  
Chinese Taipei also maintains b ilateral agreements with 13 econo mies providing for the exemption 
from income tax of shipping and/or air transpor t enterprises.  Chinese Taipei has also signed 
ATA (admission temporaire/temporary admission) Carnet agreements or related administrative protocols with 16 economies".  
11. Chinese Taipei has signed 27 bilateral agreem ents on investment protection.  Has it been 
party to any investment-related dispute and, if so, was this under such agreem ents?  What institutional 
and budgetary arrangements has Chinese Taipei made  with a view to addressing a claim of this 
nature? 
 
Answer:  
We have, to date, encountered no dispute under any investment protection agreement.  We will fulfil our international obligations in respect to preparations for disputes under investment protection agreements. To address the possibility of  future incidents, we have acted to cultivate 
professionals by sending personnel to participate in international investment dispute resolution, 
prevention, and preparation seminars, allowing them to  learn about the practice of other countries in 
this regard and facilitating the establishment of a comprehensive mechanism for the resolution of 
disputes under international investment protection agreements. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration, documentation, and procedures 
 
 Paragraph 15 states that "[a]ccording to th e Directorate General of Customs, 99 per cent 
(same as in 2006) of customs declarations in Ch inese Taipei are processed electronically, using the 
UN/EDIFACT model.  A web-based system for fili ng declarations through the Internet has been 
available since 2004.  Since 2001, Chinese Taipei h as also been implementing various systems to 
simplify customs clearance including for express cons ignments and post-clearance audit.  Since 2005, 
consolidated payment of duties a nd charges has been in place, under which authorized importers may 
pay duties on a monthly basis and benefit from a lower rate of cargo examination". 
 
12. According to the Directorate General of Cu stoms, various systems are used to simplify 
customs clearance, including for express consignm ents and post-clearance audit.  How do these 
systems operate?  Would Chinese Taipei please share its experience in this regard with the rest of the 
Membership? 
  WT/TPR/M/232/Add.1 
 Page 97 
 
 
  Answer:  
Mechanism for express consignments: 1. According to the provisi ons of “Regulations Governing Customs Clearance Procedures for 
Express Consignments,” our Customs offices at  the Express Handling Unit and Air Cargo 
Transshipment Centers are open for business 24 hours a day. 
2. Import and export documen ts and low-value express consignments (import low-value 
duty-free consignment: with a customs value not  more than 3,000 NT; import low-value dutiable 
consignment: with a customs value of 3,001~50,000  NT; export low-value consignment: with a free 
on board (FOB) value not more than 50,000 NT) may be  cleared with a simplified declaration form, 
which serves as a combination of manifest and declaration forms. 
3. Declarations for express consignments may be lodged to Customs prior to their importations.  
 Mechanism for Post-Clearance Audit: According to Article 13 of the Customs Act, where a notice of post-clearance audit is given within six 
months commencing from the date following the rele ase of the imports and/or exports, Customs may 
proceed with post-clearance audit against the duty- payer, exporters, and related persons within two 
years from the date following the af oresaid release. According to th e post-clearance audit result, any 
case in which duty is refundable or receivable sha ll be notified within three years from the date 
following the release date.  Upon proceeding with the post-clearance audit as re ferred to in the preceding paragraph, Customs 
may, for the necessity of investiga ting evidences, request the duty-payer, exporters or related persons 
to provide records, documents, accounting books and/or relevant files or data bases regarding the 
imports or exports, notify such re levant persons to go to the office of Customs for inquiry, or 
designate officers to proceed with an investigation at  the premises of such relevant. The investigated 
person shall not evade, interrupt or refuse such an investigation.  
The related person referred to in previous paragr aph means the enterprise operating the business of 
customs brokerage, transportation,  storage, express delivery and any other business, groups or 
persons.  Upon proceeding with the post-clearance audit, Cu stoms may request the relevant authorities and/or 
organizations to provide related information or  other documents regarding the imports and/or 
exports. 
 
(ii) Customs valuation 
 
 According to paragraph 18, "[c] ustoms valuation is based on th e c.i.f. value denominated in 
NT dollars.  The customs value of imports is de termined primarily on the basis of the transaction 
value (i.e. the actual price payable or paid for the goods when sold for export)". 
 
The same paragraph mentions that Customs has used  a valuation database to assess the accuracy of 
the value declared by importers, with a view to detecting under-invoicing.  Would Chinese Taipei 
please share its experience in this regard and exp lain some of the variables considered for the 
purposes of risk assessment in determining customs va lue.  What is the legislated procedure for 
requesting value adjustment to cover amounts outstanding? 
 
Answer:  
1. In order to develop a valuation database, we collect the price information of imported goods 
within one year as references for clearance purpo se. Importers will be required to provide further 
information or assistance for further investiga tion if there is any doubts regarding the truth or 
accuracy of the declared Cust oms value for imported goods. 
2. We also have developed a thorough valua tion database specifically for goods with high 
potential risk. WT/TPR/M/232/Add.1 
Page 98  
 
  3. Where Customs is not satisfied itself as to the truth or accuracy of th e declared customs value 
for imported goods, the provisions of the Articles 29 – 35 of the Customs Act shall be used to 
determine the customs value in a sequential order of application. 
 
(iv) Other charges affecting imports 
 
 Paragraph 39 reports that "Customs continues to collect fees for certain services, including a 
special supervision fee, cargo examination fee, cust oms sealing fee, escorting fee, certificate issuance 
fee and bonded warehouse stocktaking charge;  no du ty drawback service charge (section (3)(v)) has 
been levied since 25 July 2006.  Fees have remained unchanged".  14. Customs continues to collect fees for certain  services, including a special supervision fee, 
cargo examination fee, customs sealing fee, escorting fee, certificate issuance fee and bonded 
warehouse stocktaking charge.  Please explain for what purpose each one of these fees is collected 
and at what stage in the customs process it is due. 
 
Answer:  
According to Article 101 of the Customs Act, Customs may collect servi ce charges for special  services 
rendered to transport and importe d or exported goods as well as for the issuance of various 
certificates. The items, objects, conditions, amoun t, standards, methods and procedures of such 
charges are prescribed in the “Regulations Go verning Collection of Customs Service Fees.” 
 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(iii) Export prohibitions, restrictions, and licensing 
 
 Paragraph 70 states that "[e]xports bearing a tr ade mark, patent or copyright are subject to 
special monitoring by Customs under, inter alia , the Trademark Export Monitoring System (TEMS), 
to prevent infringement of intellectual property rights.  Customs can take ex officio action". 
 15. How does this system operate?  What additional measures are implemented by Customs in 
order to monitor exports bearing a trade mark, patent or copyright? 
 
Answer:  
1. TEMS follows the principle of establishing protection through recordation and payment of 
fees. Under this principle, Bureau of Foreign Trade  (BOFT) accepts an application from a trademark 
right owner. The application includes informatio n such as trademark designs, a list of licensed 
manufacturers, terms of exclusive use, and other relev ant data. This information has been placed on 
the website of BOFT for Customs frontline officers to check the trademark of the exports against the 
registered one at BOFT. But TEMS right now is gradually replaced by the “Operational Directions” 
mentioned below.  
 
2. In addition to TEMS, our Customs also enfo rces the provisions of the Trademark Act, the 
Copyright Act as well as the “Operational Direc tions for Customs Authorities in Implementing 
Measures for Protecting the Rights and Interests of  Patent, Trademark, and Copyright” effective on 
June 12, 2003. The laws and regulation have given  Customs the powers of ex officio enforcement and 
temporary detention of goods.  
 
IV. TRADE POLICIES BY SECTOR 
(2) A GRICULTURE , LIVESTOCK , AND FISHERIES  
  According to paragraph 8, "Chinese Taipei's agriculture is still characterized by small and 
fragmented land holdings.  The small average size of  farms prevents the achievement of economies of 
scale and mechanization, therefore resulting in high production costs.  Income per capita in  WT/TPR/M/232/Add.1 
 Page 99 
 
 
  agriculture is roughly 68 per cent to 80 per cent of the per capita income in other economic sectors.  
The cultivated land area has declined progressi vely during the review period due to the 
implementation of a set-aside programme.  Crops accounted for 43 per cent of total output value in 
2007, followed by livestock production and fisheries.  The main crops were fruit (39 per cent), vegetables (28 per cent), and rice (15.5 per cent).  Ri ce is Chinese Taipei's staple food and also the 
most important crop in terms of cultivated area and the number of farmers". 
 16. Would Chinese Taipei please explain in fu rther detail what the Agricultural Biotechnology 
Parks involve.  What kind of research do they condu ct?  Where do the funds come from to develop 
this type of project?  Is there a park of this nature for rice production?  
Answer:  
We have established several Agricultural Biotec hnology Parks, with the aim at  developing the 
agricultural biotechnology, and increasing the produc tion of orchids, ornamental plants and plant 
seedlings. The government supports the fundamental infrastructures of these parks and their some 
R&D projects.   No agricultural technology park was set up  for rice production.  
 According to paragraphs 9 and 10 of the Secr etariat Report, "[i]n 2008, exports of agricultural 
and fish products accounted for 2 per cent of to tal merchandise exports, down from 2.3 per cent in 
2005, while imports of agricultural products represen ted 5.1 per cent of total imports, the same share 
as in 2005.  The main export products were frozen  and chilled fish, food preparations, molluscs and 
non-alcoholic beverages.  Corn, soybeans, food preparations, and wheat were among the major 
agricultural imports".  
 "Chinese Taipei relies heavily on imported cer eals and other foodstuffs to meet domestic 
needs.  Imports of cereals amounted to about 81 per cent of domestic consumption in 2008.  In the 
same year, the self-sufficiency index (weighted by prices) was 95.9 per cent for rice, 1.7 per cent for 
corn, and zero for wheat.  Since 2006, the agriculture  authority has set the annual rice self-sufficiency 
target at 85 per cent, on a quantity basis."  
 Chinese Taipei applies non- ad valorem  tariffs, with AVEs of 131.1 per cent in some cases 
and products additionally subject to  TRQs.  Measures of this kind a pply to products such as rice and 
rice products, since rice is a major crop in Chinese Taipei's agricultural sector. 
 17. Although several paragraphs mention the fact  that quotas have been allocated to certain 
countries, please explain the quota administration/allocation method.  Are other Members capable of 
meeting Chinese Taipei's requirements for certain products allowed to participate in preferential 
quotas? 
 
Answer:  
Our rice annual quota is 144,720 metric tons calcul ated on a brown rice basis. 35% of the rice quota, 
i.e. a global quota, is imported by the privat e sector and allocated through a competitive process. 
65% of the rice quota is imported by the government. The quota was allotted to specific countries in 
accordance with the provisions of Article 13 of  the GATT 1994 and allocate d through a competitive 
process as well. Moreover, the out-quota imports have no restrictions.  
 
18. There is heavy State intervention especially in the case of rice.  Please explain in further detail 
how the Government regulates production and pr ocurement.  Does it provide any warehousing 
incentive?  How does it guarant ee income for farmers?  Do imports to supplement domestic 
production enter solely under quotas? 
 WT/TPR/M/232/Add.1 
Page 100  
 
  Answer:  
For ensuring the rice farmers’ basic income and considering the food security, we have set up a 
guaranteed price to purchase paddy from farmers. Ri ce producers can sell their rice either to the 
government with the guaranteed price or to  the market with the market price.  
 Furthermore, the government did not provide any incentive for the warehousing. We do not guarantee 
the farmers’ income, either.  As for the TRQ pr oducts, the administration and allocation is in 
accordance with the WTO disciplin es. There are also out-quota imports for some TRQ products.  
 19. The Report states that Chinese Taipei conti nues to use the Agricultural Import Monitoring 
and Warning System and also mentions the exis tence of an Agricultural Product Import Damage 
Relief Fund.  How does this system operate?  Have reference prices been es tablished?  How is the 
Fund financed?  How are the resources allocated  among those affected by import damage? 
 
Answer:  
Through the Agricultural Import Monitoring and Warning System, the designated authority and 
farmers can easily trace the impor t volume and prices of major agricultural produce. The designated 
authority will undertake relief meas ures utilizing the Agricultura l Product Import Damage Relief 
Fund to assist farmers once the Redress Review Committee determines that serious damage has been 
or is likely to be caused by the surge of agricultural imports. 
 
The Product Import Damage Relief Fund is set up by  the government. As above-mentioned, after 
receiving the decision of Redress Review Committee,  the designated authority will undertake the relief 
measures, including improving the management  on farming, enhanc ing domestic products’ 
competitiveness and reducing the impacts of  agricultural imports on farmers.  
 
20. Please explain the various forms of support for corn.  What requirements have to be met by 
the beneficiaries in order to receive such suppor t?  Please explain the difference between the 
guaranteed price system for rice growers and the direct payment system.  
Answer:  
We grant a subsidy of NT$45,000 per hectare to farm ers who produce feed corn in the fallowed rice 
land. As for the possible direct payment program for rice, it is still under assessment.  
 
 
CANADA  
 
Report by the Separate Customs Territory of  Taiwan, Penghu, Kinmen and Matsu (Chinese 
Taipei) (WT/TPR/G/232)   
  
III. Policy Environment and Reforms: (i) Ma croeconomic policy: paragraph 17, page 9: 
 1. Could Chinese Taipei please provide inform ation on how the services sector benefited from 
the Second-Term Plan for National Deve lopment in the New Century 2005-2008?    
 
Answer:  
Under the Second Term Plan for National Developme nt in the New Century, we moved vigorously 
ahead with key projects related to Challenge 2008, and carried out the Guidelines and Action Plans 
for Service Industry Development, giving priority  to 13 flagship projects and 11 main measures in 
order to expand high-quality investment and formulat e core advantages of the service industry.  
Thanks to these efforts, we enjoyed an 8% growth of the nominal GDP in the service sector which 
increased to NT$12.7 trillion in 2008 from NT$11.74 trillion in 2005.     WT/TPR/M/232/Add.1 
 Page 101 
 
 
  III. Policy Environment and Reforms: (ii) Sectoral Policy - Services sector: paragraph 20, 
page 10 
  2. Chinese Taipei mentions that it endeavours to enable the services sector to "become an engine 
for increasing added value, creating employment , improving the quality of life, and promoting 
economic growth" by "enhancing the internationa l competitiveness of its services sector". Could 
Chinese Taipei please explain its plans for achieving this enhancement (beyo nd the suggested further 
liberalization and deregulation suggested by the Secret ariat in its report on page  ix, paragraph 4 in the 
summary), and specify the sectors? 
 
Answer:  
We approved in July 2009 the Service Industry Deve lopment Plan with the aim of building the service 
industry into an engine for increasing added value,  creating jobs, enhancing the quality of life, and 
stimulating economic growth. The key areas in the fi rst stage of the plan encompass tourism, creative 
and cultural industry, health care, recreational agriculture, logistics, telecommunications, and 
technical services. In terms of strategy, the effo rt will start out with enhancing the international 
competitiveness of the service industry, strengt hening R&D and innovation, creating differentiated 
services, reinforcing manpower training and recruitm ent from abroad, a nd improving service 
industry statistics.  
Among the key areas encompassed in the first stage, a number of services sectors such as tourism, 
creative and cultural industry and health care were pr omoted as “emerging industries”. We are 
reviewing and will revise pertinent laws and regula tions with the intention of creating a more 
favorable regulatory environment for the d evelopment of these emerging industries.   
 
Report by the Secretariat (WT/TPR/S/232) 
 
Summary (4) Sectoral policy Develo pments: paragraph 23, page xiii 
  
The Secretariat report mentions that some inform al barriers remain in certain services sub-sectors, 
including in basic telecommunication, air and maritime transport. 
 
3. Does Chinese Taipei intend to re-visit these restrictions with the aim of further liberalization? 
 
Answer:  
As for the limits and restrictions described by th e Secretariat Report in paragraph 63 on page 90 and 
paragraph 23 on page xiii, the liberalization an d opening of all relevant sectors for foreign 
investment have been conducted in full complia nce with our WTO comm itments. However, we 
continue to welcome all foreign investments whic h bring know-how and innovative technologies to 
help stimulate the growth of our economy and to im prove the living standard of our society.  The 
Investment Commission of the Ministry of Economic  Affairs (MOEA) is currently coordinating a 
general review of the existing restrictions on some industrial sectors.  Necessary modification and 
deregulation will then be made pub lic as soon as this review process  is concluded. In addition, 
regarding further liberalization of the maritime transport service, we are planning to amend the 
proportion of foreign investment on domestic shi pping companies from 33% to less than 50%.  
 
On the other hand, in view of the importance of  the services sector, we give primacy to the DDA 
negotiations to boost the global econom ic growth, and are committed to  cooperate constructively with 
WTO Members to secure the earliest conclusion of the DDA negotiations. 
 WT/TPR/M/232/Add.1 
Page 102  
 
  Part II. Trade Policy Regime: Framework a nd Objectives: (6) Trade Agreements and 
Arrangements; (ii) Preferential trade agreement s; (a) Regional and plurilateral agreements; 
Chinese Taipei-El Salvador-Honduras FTA ; paragraph 31, page 25: 
 The report states that the “Chinese Taipei-El Salvador-Honduras FTA was signed on 7 May 2007 
after four rounds of negotiations, and took effect on 15 July 2008. By end 2009, the parties were in 
the process of preparing its notification to the WTO.” 
 
4. Could Chinese Taipei please provide an upda te on the status of the implementation of the 
Chinese Taipei-El Salvador-Honduras FTA, including ta riff reductions phased-in to date, and indicate 
when the Agreement will be notified to the WTO?  
Answer:  
Our FTA with El Salvador and Honduras was notified to the WTO on 6 April 2010.  
 
The FTA signed with El Salvador and Honduras came  into effect in March and July of 2008, 
respectively. According to the FTA signed with Ho nduras, we are committed to the elimination of 
tariffs on 6,135 items immediately,  1,312 items in 5 years, 778 items in 10 years, and 387 items in 
15 years beginning from the date the agreement enters into force. According to the FTA signed with 
El Salvador, we are committed to the elimination of  5,688 items immediately, 1,313 items in 5 years, 
1,217 items in 10 years, and 394 items in 15 years beginning from the date the agreement enters into 
force.  
Part II. Trade Policy Regime: Framework a nd Objectives: (6) Trade Agreements and 
Arrangements; (ii) Preferential trad e agreements; (b) Bilateral agreements; Chinese Taipei-
Guatemala FTA ; paragraph 33, page 25: 
 
The report states that the “FTA between Chinese Taipei and Guatemala was signed on 22 September 2005 and entered into force on 1 July 2006.  It has not yet been notified to the WTO. At 
end 2009, the parties were in the process of preparing its notification to the WTO.”  
5. Could Chinese Taipei please provide an upda te on the status of the implementation of the 
Chinese Taipei-Guatemala FTA, including tariff reduc tions phased-in to date, and indicate when the 
Agreement will be notified to the WTO?  
Answer:   
The FTA signed with Guatemala came into effect on 1 July, 2006. According to the FTA, we are 
committed to the elimination of tariffs on 5,649 items  immediately, 1,332 items in 5 years, 1,218 items 
in 10 years, and 413 items in 15 years beginning fr om the date that the ag reement enters into force. 
 
We are preparing a joint notification of this FTA in collaboration with Guatemala.  We will notify it 
to the WTO as soon as all the preparation work is done. 
 
Part II. Trade Policy Regime: Framework a nd Objectives: (6) Trade Agreements and 
Arrangements; (ii) Preferential trade agreements; (b) Bilateral agreements; Agreements under 
consideration or negotiation ; paragraph 35, page 26: 
 
The report states that “Chinese Taipei is negotiati ng an FTA with the Dominican Republic, as well as 
an Economic Cooperation Framework Agreement (ECFA) with China.” 
 6. Could Chinese Taipei please provide an update on the status of the FTA negotiations with the 
Dominican Republic? 
  WT/TPR/M/232/Add.1 
 Page 103 
 
 
  Answer:  
The first round of our FTA negotiations with the Dominican Republic was held in October 2006. The second round of negotiations was postponed since th e Dominican government has been reviewing its 
FTA policy.  
7. Could Chinese Taipei please provide an upda te on the status of the Economic Cooperation 
Framework Agreement (ECFA) negotiations with China? 
 
Answer:  
The ECFA was signed on June 29, 2010. We will deli ver the ECFA to the legislature for its approval. 
The ECFA will formally go into effect only after the legislature approves it. 
 
Part III. Trade Policies and Practices By Measu re; (1) Introduction; Paragraph 6, Page 35 : 
 
The Secretariat report states that Chinese Taipei has not notified any export subsidies to the WTO. 
 
8. Do authorities in Chinese Taipei provide e xport subsidies, as defined in the ASCM? If so, 
why is Chinese Taipei not notifying these subsidies to the WTO? Could some of the export assistance 
measures identified at paragraph 76 on pages 53-54 not be considered to c onstitute export subsidies 
(e.g. discounted loans for exporters)?  
Answer:  
We do not provide export subsidies as defined in the ASCM. 
 
To cope with the global economic crisis, we drew  up a global market expansion plan called the “New 
Cheng Ho Plan”. This plan aims to assist busin esses in finding export oppor tunities. The measures 
under this plan, including improving the trade fi nance environment, were short-term, temporary and 
suitable for any industry. In 2009, measures such as providing funds for export finance and 
insurance, organizing trade missions, participa ting in exhibitions, building marketing channels, 
inviting foreign buyers to purchase , enhancing intern et promotion, and providing market surveys 
were adopted under this plan. All these methods are common trade promotion measures. Export 
credit insurance and export loans provided under the Pl an are fully in compliance with the provisions 
of Article 3 and Annex I of the Agreem ent on Subsidies and Countervailing Measures. 
 
Part III. Trade Policies and Practices By Measure;  (2) Measures Directly Affecting Imports; (v) 
Import Prohibitions, Restrictions and Licensing; Paragraph 42, Page 46 : 
 
As per the Secretariat report, the Bureau of Fo reign Trade (BOFT) of the Ministry of Economic 
Affairs administers the List of Commodities Subject to Conditional Import .   
 
9. Please describe the purpose of this list, th e criteria under which goods are placed on the list 
and the goods that are currently subject to the list.   
 
Answer:  
The list is established to uphold, inter alia, public morals and protect human life and health. 
Therefore, the import restriction falls in line with our accession commitment and GATT Article XX. 
 Goods subject to the List are hereby attached. 
 
10. Please describe the administrative arrangements for applying for and being issued an import 
permit for products on the list.   
 WT/TPR/M/232/Add.1 
Page 104  
 
  Answer:  
The agencies competent to issue import/expor t licenses at present include the BOFT and the 
administrative offices of the Export Pr ocessing Zones and Science-based Parks. 
 
Import permit is issued upon presentation of appr oval document from the Environment Protection 
Administration for import of chemicals such as methyl bromide, CFCs, HCFs; and after presentation 
of a Kimberley Process Certificate for import of diamonds.   
Part III. Trade Policies and Practices By Measure; (2) Measures Directly Affecting Imports; (vi) 
Contingency Measures; (a) Anti-dumping and Countervailing Actions; Paragraph 47, Page 46 : 
 
11. Can the Ministry of Finance initiate anti-dum ping or countervailing inv estigations on its own 
initiative?  If so, please indicate how often and for what products it has done so? 
 
Answer:  
Yes, the MOF is authorized by Article 2 of “The Regulations Governing the Implementation of the Imposition of Countervailing and Anti-Dumping Duties” to initiate relevant investigation on its own 
initiative. Until now, we have initiated only one an ti-dumping case involving imports of towel 
products from China. 
 12. Can Chinese Taipei explain/provide examples of other legal organizations that can file written 
applications to have anti-dumping or countervailing investigations initiated? 
 
Answer:  
According to Article 6 of “Th e Regulations Governing the Implementation of the Imposition of 
Countervailing and Anti-Dumping Duties”, the related commercial, industrial, labor, agricultural 
associations or other legal organizations may apply for the imposition of a countervailing duty or 
anti-dumping against the imported pr oduct on behalf of the industry of the like product in so far as 
they are legally established and can identify their representative of the industry. For example, the 
investigation of an anti-dumping case involving impor ts of certain footwear from China were applied 
by the Taipei County Shoes Chamber of Commer ce and two other related commercial associations. 
 
13. Under what conditions does the Ministry of Finance decide to initiate a review process 
regarding the continuation of anti-dumping or countervailing duties?    
Answer:  
According to Article 44 of “The Regulations Go verning the Implementation of the Imposition of 
Countervailing and Anti-Dumping Duties”, prior to the time that the imposition of a countervailing 
duty or anti-dumping duty has exceeded 4 years and 6 months, the MOF shall make a public notice. If 
the interested parties make an application within 1 month following the public notice thereof, the 
MOF shall submit the application to the Tariff Commission for a decision as to whether to initiate the 
review regarding the continuation of anti-dumping or countervailing duties. 
 
14. Are reviews conducted during the course of a me asure for any other reason (e.g. to modify or 
amend the level of applicable duties)?  
Answer:  
According to “The Regulations Governing the Implementation of the Imposition of Countervailing 
and Anti-Dumping Duties”, there are two kinds of reviews that may be conducted during the course of 
a measure: 1) Following the public notice of the imposition of a countervailing duty or anti-dumping duty, 
the MOF shall submit the case for a review as to whether to conduct an investigation on the lapse or 
change of the findings, ex officio, or provided that  1 year has elapsed since the imposition of the duty,  WT/TPR/M/232/Add.1 
 Page 105 
 
 
  upon request by the applicant or any interest ed party which submits positive information 
substantiating the need for a review. 2) The other kind of review is the so-calle d “New shippers’ review”. After the final 
determination is made and upon request, the MOF shall promptly carry out a review to determine 
individual margins of dumping for any producers or exporters of the exporting country who have not 
exported the subject product to the domestic market during the period of investigation, provided that 
these producers or exporters can show that they are not related to any of the producers or exporters 
in the exporting country who are subject to the anti-dumping duties on the product. 
 
Part III. Trade Policies and Practices By Measure; (2) Measures Directly Affecting Imports; (vi) 
Contingency Measures; (b) Safegu ards, Paragraph 51, Page 47: 
 15. Please describe the process, if prescribed by le gislation, regulation or practice, under which 
authorities may decide to take retaliatory action against discriminatory treatment of goods exported 
from Chinese Taipei or carried by Chinese Taipei transport. 
 
Answer:  
According to the article 70 of the Customs Act,  in making the decision on taking retaliatory action, 
the MOF shall consult with the relevant authorities and submit the case to the Cabinet for approval. 
 
16. Is there a requirement to initiate and obtain authority further to a dispute settlement process 
under any international trade agreement to which Chin ese Taipei is a Party before taking such action? 
 
Answer:  
As described in our response to the previous question (Canadian question 15), while making a 
decision on taking retaliatory measures, it is required to hold inter-agency consultations to consider 
all aspects of such measures to be taken. If there’s any requirement under international trade 
agreements, including WTO agreements, for obtaining authorization via dispute settlement process to 
launch retaliatory measures, such matters would be  considered at the stage of the inter-agency 
consultations. Should there be a need to forma lly launch a WTO dispute settlement process, the 
Ministry of Economic Affairs will also consult w ith relevant agencies and obtain authorization from 
the Vice Minister of the Economic Affairs to initiate that process.  
 
Part III. Trade Policies and Practices By Measure;  (3) Measures Directly Affecting Exports; (v) 
Duty and Tax Concessions, Paragraph 72, Page 53: 
 The Secretariat report states that customs duty and taxes paid on imported raw materials used in 
exports are refundable. Duty refunds (or offsetti ng or drawbacks) are governed by the Customs Act 
and the Regulations Governing the Offsetting or Refund of Duties and Taxes on Raw Materials for 
Export Products.   
 
17. In a previous investigation, the Canada Bo rder Services Agency found that authorities in 
Chinese Taipei were using the duty drawback system  to confer actionable subsidy by remitting an 
amount of duty in excess of the amount levied on th e inputs that were consumed in the production 
process.  Is Chinese Taipei continuing to remit ex cess amounts of duty through its drawback system, 
thereby conferring a subsidy? If so, why is th is practice not being notified as a subsidy? 
 
Answer:  
The amount of duty drawback is limited to the amount of import duties levied on raw materials used for production of the goods to be  exported, and should not be remitted in excess of the amount of 
import duties paid.  That is to say our dr awback system is consistent with the ASCM. 
 WT/TPR/M/232/Add.1 
Page 106  
 
  III. Trade policies and practices by measure, (4) Measures Affecting Production and Trade (iv) 
Standards and other technical requirements, (b ) Sanitary and phytosa nitary arrangements, 
Paragraphs 100  and 103,  p 62 
 
In May 2007, the World Organization for Animal  Health (OIE) recognised Canada as having 
controlled risk status for BSE and re-affirmed this status in 2008, 2009, and 2010.  Chinese Taipei 
also has controlled risk status. This status a llows for the safe trade in all beef products under 
conditions which Canada can meet. Canada has pr ovided considerable technical information to 
support its request for full beef access based upon OIE guidelines.  
 18. Why has Chinese Taipei not provided full acce ss for Canadian beef based on Canada’s BSE 
controlled risk status? 
 
Answer:  
1. According to the relevant Codes of CODEX and the World Organisation for Animal Health 
(OIE), risk analysis includes not only risk assessment  but also risk communication. In dealing with 
countries with reported BSE cases, both risk assessme nt and communication are vital. We need to 
communicate with the public, including consumers, scholars, experts, legislators, and other interest 
groups in order to alleviate their concerns. 2. We acknowledge Canada’s OIE status as a BSE controlled risk count ry. The risk assessment 
of the 16th Canadian BSE case is now under review. However, because of the recent 17th BSE case 
confirmed within Canada, an updated  risk assessment of Canadian beef  by an objective third party is 
required. We also need to continue our risk communication with the general public. 
 
19. Given that OIE allows for the safe trade in all beef, including offals and ground beef, from 
BSE controlled risk countries, how does Chinese Taip ei justify the banning the importation of offals 
and all ground beef from any country that has had a BSE case for a period of ten years from the country’s most recent case?  
Answer:  
Our domestic measures, including the banning of th e importation of offal and  all ground beef from 
any country where a BSE case has been reported within  the last 10 years, are consistent with SPS 
Agreement.  
 
Part III. Trade Policies and Practices by Meas ure: (4) Measures Affecting Production and 
Trade; (iv) Standards and other technical re quirements, (b) Sanitary and phytosanitary 
arrangements: paragraph 103, page 63:  
 
The Secretariat report states that “Chinese Taipei  recognizes non-Chinese-Taipei quarantine standards 
and SPS measures as equivalent as long as these ach ieve the appropriate le vel of sanitary and 
phytosanitary protection”. 
 20. Could Chinese Taipei identify which non- Chinese Taipei Quarantine standards and SPS 
measures they have identified as being equivalent to theirs?  
 
Answer:  
Our annual imports of agricultu ral products total approximat ely 16.6 million tons. Imported 
agricultural products are in compliance with measu res that are deemed equivalent in terms of the 
level of protection to our relevant SPS measures. 
  WT/TPR/M/232/Add.1 
 Page 107 
 
 
  Part III. Trade Policies and Practices By Meas ure; (4) Measures Affecting Production and 
Trade; (vi) Government-Owned Ent erprises, Paragraph 139, Page 73: 
 The Secretariat report states that the virtual stands till in the privatization process over recent years is, 
inter alia, due to: opposition from government-owned enterprises employees; the legislators' demands 
for privatization plans to be reported to the legislatur e;  and the requirement to  amend or adjust certain 
laws (e.g. the Electricity Act) in or der to proceed with privatization. 
 
21. Can Chinese Taipei provide any information on how it intends to overcome these obstacles so 
that it may resume its privatization process? 
 
Answer:  
First of all, we would endeavor to let both government-owned enterpri ses and their employees 
acknowledge that the privatization is favorable to the development of th eir enterprises and future 
employment. In the mean time, we are working hard to remove the worry, and clarify that 
privatization is not equivalent to the acquisiti on by disreputable conglomerates. With such effort, 
hopefully the general public will support the privatiz ation plan, and public offering and privatization 
will follow. 
 The state-owned enterprises (SOEs) under the Mini stry of Economic Affairs (MOEA , such as the 
China Petroleum Corp., Taiwan Power Co., and A erospace Industrial Development Corp., are 
communicating with the employees and the labor union. The MOEA will follow the privatization 
policy continually to keep the SOEs’ privatization mo ving . As for the privatization plan of the TTLC, 
the MOF has set a requirement for the privatizati on that there be a consensus between the labor 
union and the corporation on the matter of the release  of the shares as a prerequisite to such release. 
 
Part IV. Trade Policy by Sector: (2) Agriculture,  Livestock and Fisheries; (iv) Domestic support 
measures, paragraph 19 and (a) Price supp ort and other product-specific measures 
paragraph 20, page 79:  
The Secretariat report indicates that the Agricu ltural and Food Agency (AFA) and /or government-
owned enterprises purchase the products listed in Ta ble IV.1, such as tobacco, sugar and rice at 
guaranteed prices.   
22. Could Chinese Taipei please elaborate on how the purchases of the above products are used, 
specifically, whether these products will be sold back onto the market? 
 
Answer:  
The rice purchased by the government is used as  a public food stock buffer.In the case of abnormal 
fluctuations in prices or emergency situations, government could release the stock-piled rice at a 
price close to market price at that time, with an aim  to balanc the market supply and demand. In 
addition, sugar and tobacco bought by the Government is for processing. 
 23. If these products purchased by government-own er agencies are sold back onto the market, 
what are the criteria for determining wh en this occurs and at what price? 
 
Answer:  
Please find the above replies  
 WT/TPR/M/232/Add.1 
Page 108  
 
  Part IV. Trade Policies by Sector: (5) Services,  (iv) Professional Services: paragraph 125, 
page 104:  
The Secretariat reports notes that, with respect to  standard service fees, "some associations have 
deleted such provisions from their regulations (acc ountants) or plan to delete them soon (engineers 
and lawyers)". 
 
24. Can Chinese Taipei provide further informa tion on the timeline for the removal of standard 
services fees by professional associations for engineers and lawyers? 
 
Answer:  
For Professional Engineers, the Fair Trade Commissi on has consulted with the competent authority, 
Public Construction Commission (PCP), for removing the fee standard clause from the Professional Engineers Act (Item 8 of Article 32) in the amendmen t draft.  The draft was approved by the cabinet 
on October 30, 2008 and sent to the legislature for review on November 5, 2008. 
 For Architects, the Fair Trade Commission attende d the meetings for reviewing the Architects Act 
Amendment Draft in 2007 and 2008, respectivel y, to express the Commission’s view against the 
clause of “service fee standard will be set by th e Architect Association”.  The darft is still under 
review by the Competent Authority, Ministry of Interior.  
 
For Lawyers, the Fair Trade Commission has consulte d with the Competent authority, the Ministry of 
Justice (MOJ), and recommended removing the clause of setting a service fee standard by the Bar 
Associations (Item 6, Article 16) in the Attorn ey Regulation Act in 2007 and 2008, respectively. The 
MOJ has committed to take the FTC’s proposal into consideration. 
 
The FTC has no legal authorization to set the ti meline for other agencies.  Each agency has its 
timetable for amending laws.  
  WT/TPR/M/232/Add.1 
 Page 109 
 
 
  ATTACHMENT—Import Licensing 2010 
 
HS Code  Description 
 
2903.39.90.21-5  Bromomethane (methyl bromide)  
2903.49.00.11-4  Chlorodifluoromethane (HCFC-22) 
2903.49.00.21-2  1,1-Dichloro-1-Fluoroethane (HCFC-141b)  
2903.49.00.22-1  1-Chloro-1,1-Difluoroethane (HCFC-142b) 2903.49.00.23-0  2,2-Dichloro-1,1,1-Trifluoroethane (HCFC-123)  
2903.49.00.24-9  2-Chloro-1,1,1,2-Tetrafluoroethane (HCFC-124)  
2903.49.00.32-9  Pentafluorodichloropropane (HCFC-225)  2903.49.00.90-8 Other halongenated derivatives of acyclic hydrocarbons containing two or more 
different halogens 
3808.99.92.10-7  Methyl bromide  3824.71.00.00-2 Mixtures containing chlorofluorocarbons (CFCs), whether or not containing 
hydrochlorofluorocarbons (HCFCs), perfluorocarbons (PFCs) or hydrofluorocarbons 
(HFCs) 
3824.79.00.00-4 Other mixtures containing halogenated derivatives of methane, ethane or propane 
3824.90.99.31-4  Mixtures containing halogenated derivatives of acyclic hydrocarbons containing two 
or more different halogens, other than those of subheading no. 3824.71 or 3824.79 
7102.10.00.00-1  Diamond, unsorted  
7102.21.00.00-8  Industrial diamonds, unworked or simply sawn, cleaved or bruted  
7102.31.00.00-6  Non-industrial diamonds, unworked or simply sawn, cleaved or bruted  7213.10.00.00-7  Bars and rods, hot-rolled, of iron or non-alloy steel, containing indentations, ribs, 
grooves or other deformations produced during the rolling process  
7214.20.00.00-4  Other bars and rods, of iron or non-alloy steel, containing indentations, ribs, grooves 
or other deformations produced during the rolling process or twisted after rolling  
7216.10.00.30-8  H section of iron or non-alloy steel, not further worked than hot-rolled, hot-drawn or 
extruded, of a height of less than 80 mm 
7216.33.00.10-5  H section of iron or non-alloy steel, not further worked than hot-rolled, hot-drawn or 
extruded, of a height of 80 mm or more but not exceeding 200 mm 
7216.33.00.20-3   section of iron or non-alloy steel, not further worked than hot-rolled, hot-drawn or 
extruded, of a height of more than 200 mm but not exceeding 800 mm  
7216.33.00.30-1  H section of iron or non-alloy steel, not further worked than hot-rolled, hot-drawn or 
extruded, of a height of more than 800 mm  
 
Total:  21 
 WT/TPR/M/232/Add.1 
Page 110  
 
  THAILAND
 
 
Question 1 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(iii) Tariffs (b) Tariff rate quotas (TRQs) 
 
Para 28, Page 40 
 
28. In 2008, the fill ratio of in-quota imports rema ined at zero or less than 20% for virtually the 
same items as in 2004, i.e. bananas, liquid milk, dried shitake, betel nuts, pineapples, mangoes, and 
shaddocks (Table AIII.1).  The authorities indicated  that the in-quota imports of certain products 
remained low because of Chinese Ta ipei's SPS measures against fruit flies as well as over-supply, low 
market prices, or persisting low co nsumption levels.  During the review period, the fill ratio for 
in-quota imports of rice, dried velvet, fresh pears, red beans, peanuts and dried longans was 100% or 
close to it. 
- Given that actual in-quota imports were either zero or less than 20% for the same items as in 
2004, i.e. bananas, liquid milk, dried shitake, betel nuts, pineapples, mangoes, and shaddocks, 
what is the purpose for retaining these quota restrictions? Has Chinese Taipei considered 
eliminating the quantitative restriction on these products?  
 
Answer:  
We impose TRQ on specific agricultu ral products in accordance with the commitments made upon its 
WTO accession in 2002.  All the TRQ s are administered in a transparent, fair and predictable manner 
based on the market mechanism.  The process prov ides full market access opportunities for these TRQ 
products.  Question 2 
 
IV. TRADE POLICIES BY SECTOR (2) A
GRICULTURE , LIVESTOCK , AND FISHERIES  
(iii) Boarder measures 
 
Para 15, Page 78 
 
15. Rice remains the most protected crop, with imports subject to TRQs and some of the highest applied tariffs.  In 2009, the in-quota tariffs for rice and rice products were 0% and 0%-25%, 
respectively, while the out-of-quota rates were NT$45/kg for rice and NT$45/kg or NT$49/kg for rice 
products.  The AVE for the out-of-quota rate for rolled  or flaked rice was 1,069.9% (the same as in 
2005).  The TRQ for rice is divided into two parts:  the government quota (65%) and the private-sector quota (35%).  In 2007, after consulta tions with some WTO Members, Chinese Taipei 
agreed to allocate the government import quota on a country-specific basis. The private-sector quota 
is allocated through a bidding process.  By mid-December 2009, some 97.4% of the annual TRQ for 
rice had been awarded (Table AIII.1). 
- Could Chinese Taipei explain more details and give example on the quotas- allocation 
method?   
  WT/TPR/M/232/Add.1 
 Page 111 
 
 
  Answer:  
Our rice annual quota is 144,720 metric  tons calculated on a brown rice basis. Thirty-five percent of 
the rice quota, which is a global quota, is im ported by the private sector and allocated through a 
competitive process. Sixty-five percent of the rice quo ta is imported by the government. The quota was 
allotted to specific countries in accordance with the provisions of Article 13 of the GATT 1994 and 
allocated through a competitive process as well.  The specification of governmental procurement depends  on the actual needs. For the 35% of rice 
quota imported by the private sector, there are no limits on specifications. 
 
Question 2 
 IV. TRADE POLICIES BY SECTOR (2) A
GRICULTURE , LIVESTOCK , AND FISHERIES  
(iii) Boarder measures  
Para 15, Page 78 
 
1. Aggregate Measurement of Support (AMS)  2005   2006 (NT$ mil.) 
(b)  Non-product specific AMS:     1,219.88 2,511.64   Interest subsidy     578.45  1,624.78   Insurance subsidy: livestock insurance program  18.87  68.74  - From year 2005 to 2006, the support notified under the category of Interest subsidy and 
Insurance subsidy: livestock insurance progra mme increased over 3 folds.  Thus, this was 
accounted for the double rise in the overall (b) Non-product-specific AMS in 2006. Could Chinese Taipei explain the rationale or any change  of policies behind the dramatic jump in the 
aforementioned figures? 
 
Answer:  
Under  the program of “New Agriculture Moveme nt”, the government  relaxed the applied loan 
conditions of  relevant projects in 2006 which resulte d in an increase of the amount of loan subsidy. 
In addition, the livestock insurance pilot proj ect, which has been implemented since 2005, is 
expanded from 2 to 10 counties in 2006. These meas ures have consequently caused the rise in the 
overall non-product-specific AMS in 2006.  Question 4  
IV TRADE POLICIES BY SECTOR 
(2)
  A GRICULTURE , LIVESTOCK , AND FISHERIES  
(iv) Domestic support measures 
(c) Income support and other types of assistance 
 Para 26, Page 82  
26. Under the Provisional Statute for Senior Fa rmers’ Welfare, enacted on 31 May 1995, the 
Government grants a monthly allowance to farmers and fishermen aged 65 years or older in order to 
protect their basic living.  Since July 2007, th e allowance has been in creased from NT$5,000 to 
NT$6,000.  The total amount allocated to elderly farmers and fishermen under this Statute amounted to NT$217.6 billion between 2005 and 2009.  The authorities envisage transforming the guarantee price system for rice growers to a direct paymen t system, but this is still under assessment and no 
legislation to this effect has been submitted. 
 WT/TPR/M/232/Add.1 
Page 112  
 
  - Could Chinese Taipei clarify, whether this support was notified?  If yes, which categories 
listed in Table IV.1 has the Senior Fa rmers’ Welfare been calculated into?  
 
Answer:  
The monthly allowance to elderl y farmers and fisherman above the age of 65 is similar to the direct 
payment for the elderly in many Member countries. It  is part of the social welfare system, rather than  
an agricultural subsidy. Therefore, we  are of th e view that it is not required  being  notified.  
 
Question 5  IV. TRADE POLICIES BY SECTOR  
(1) S
ERVICES  
(i) Tourism  Para 121, Page 104 
 
121. The Tourism Bureau of the MOTC is respons ible for policy formulation and implementation 
in the sector.  The regulatory framework includes th e Statute for the Development of Tourism (last 
amended in 2007) and regula tions governing the activities of travel agents, hotels, and tour guides.  
There are no market access restrictions or "na tional treatment" limitations on non-Chinese-Taipei 
providers to engage in t ourism businesses, except that tour guide services must be provided only by a 
travel agency or a tour operator.  The six- month residence requirement for non-Chinese-Taipei 
persons applying for the tour-guide  examination was removed in 2007.
11   
 - In Chinese Taipei’s revised offer dated 8 June  2005 in mode 4 National Treatment for tourist 
guides services, there still remains the require ment that foreign nationals reside in 
Chinese Taipei’s territories for at least 6 months before applying for the tour guide 
examinations. However, at present this requirement has been removed, therefore, could it be assumed that Chinese Taipei’s second revised offer would no longer contain this requirement? Additionally, what languag es are used in the said examinations? 
 
Answer:  
According to the ”Regulations for the Junior Professional and Technical Examination for Tour 
Guides,” the residency requirement has been removed.  As our overall services commitments are 
relatively high as compared to other Members, wh ether or not our second revised offer would contain 
this requirement is subject to negotiations.  
 The first-stage written portion of the examination is  conducted in Chinese except for the subject of 
foreign language. The second-stage oral examination por tion is conducted in language that applies to 
individual applicant.  
                                                     
 
11 Regulation for the Junior Professional and Technical Examination for Tour Guide, amended and 
promulgated on 17 October 2007.  WT/TPR/M/232/Add.1 
 Page 113 
 
 
  FOLLOW-UP QUESTIONS POSED BY THAILAND  
 On the Report by the Secretariat (WT/TPR/S/232 dated 31 May 2010)  
 
Previous question 3  IV. TRADE POLICIES BY SECTOR 
(2)
  A GRICULTURE , LIVESTOCK , AND FISHERIES  
(iv) Domestic support measures  Table IV.1, Page 80  
1. Aggregate Measurement of Suppor t (AMS)  2005   2006 (NT$ mil.) 
(b)  Non-product specific AMS:     1,219.88 2,511.64   Interest subsidy     578.45  1,624.78   Insurance subsidy: livestock insurance program  18.87  68.74  
- From year 2005 to 2006, the support notified under the category of Interest subsidy and 
Insurance subsidy: livestock insurance progra mme increased over 3 folds.  Thus, this was 
accounted for the double rise in the overall (b) Non-product-specific AMS in 2006. Could Chinese Taipei explain the rationale or any change  of policies behind the dramatic jump in the 
aforementioned figures? 
 Answer: Under the program of “new Agriculture Movement”, the governme nt relaxed the applied 
loan conditions of relevant projects in 2006 whic h resulted in an increase of the amount of loan 
subsidy.  In addition, the livestock insurance pilot project, which has been implemented since 2005, is 
expanded from 2 to 10 counties in 2006.  These meas ures have consequently caused the rise in the 
overall non-product-specific AMS in 2006. 
 
Follow-up Question 1  
Thailand is interested to know details of the livest ock insurance programme of Chinese Taipei.  Please 
explain what it is and how it works, or please refer us  to the related links or publication where we can 
study further. 
 
Answer:  
The livestock insurance program of the Separate Cu stoms Territory of Taiwan, Penghu, Kinmen and 
Matsu is applied according to the “Livestock Insu rance Regulation”. The said livestock includes 
dairy cattle, hogs, dairy goats, sheep, and other kinds of livestock as announced by the central 
competent authorities. In addition, the program is divided into th ree categories, i.e. livestock life 
insurance, livestock transportation insurance and ot her insurance items as announced by the central 
competent authorities. For further informatio n, please refer to the following website: 
http://law.moj.gov.tw/Eng/LawCl ass/LawAll.aspx?PCode=M0060070. 
 WT/TPR/M/232/Add.1 
Page 114  
 
  Previous question 4 
 IV TRADE POLICIES BY SECTOR 
(2)  Agriculture, Livestock, and Fisheries 
(iv) Domestic support measures 
(c) Income support and other types of assistance 
 
Para 26 Page 82 
 26. Under the Provisional Statute for Senior Fa rmers’ Welfare, enacted on 31 May 1995, the 
Government grants a monthly allowance to farmers and fishermen aged 65 years or older in order to 
protect their basic living.  Since July 2007, th e allowance has been in creased from NT$5,000 to 
NT$6,000.  The total amount allocated to elderly farmers and fishermen under this Statute amounted to NT$217.6 billion between 2005 and 2009.  The authorities envisage transforming the guarantee 
price system for rice growers to a direct paymen t system, but this is still under assessment and no 
legislation to this effect has been submitted.  - Could Chinese Taipei clarify, whether this support was notified? If yes, which categories 
listed in Table IV.1 has the Senior Fa rmers’ Welfare been calculated into?  
 Answer: The monthly allowance to elderly farmers and fisherman above the age of 65 is similar to the 
direct payment for the elderly in many Member c ountries.  It is part of the social welfare system, 
rather than an agricultural subsidy.  Therefore, we are of the view that it is not required being 
notified. 
 
Follow-up Question 2 
 
According to the answer above, Thailand assumes that  the monthly allowance to elderly above the age 
of 65 is a general direct payment, not only to th e farmers and fishermen but to all the seniors of 
Chinese Taipei and that is not required a notification.   If that is the case, why this piece of information 
and support figures appear in section “Trade Policies by Sector; Agriculture, Livestock and Fisheries; 
Domestic Support Measures, Income Support and Other Types of Assistance.”?  
Answer:  
We allocate monthly allowances to all seniors in accordance with  qualifications and regulations, not 
only to farmers and fishermen. Putting this inform ation about allowances for senior farmers and 
fishermen in the section “Trade Policies by Sect or; Agriculture, Livestock and Fisheries; Domestic 
Support Measures, Income Support and Other Types of  Assistance” is to emphasize that we have 
welfare measures which care for farmers and fishermen. 
 
 
THE EUROPEAN UNION  
  
II.  TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(6) T
RADE AGREEMENTS AND ARRANGEMENTS  
WTO Secretariat’s Report, page 26, para 35  The report observes that Chinese Taipei is negotiating an Economic Cooperation Framework 
Agreement (ECFA) with China. Reportedly, an early ha rvest (list) to this agreement will be signed by 
the end of June.   WT/TPR/M/232/Add.1 
 Page 115 
 
 
  1. Could Chinese Taipei elaborate on the obj ectives and coverage of this agreement? 
Answer:  
1. China is now our largest trading partner, our  leading foreign investment destination, and our 
largest source of trade surplus. Theref ore, the objectives of the ECFA are to: 
 (1) strengthen and enhance economic, trad e and investment co-operation between the 
Parties; 
 (2) progressively liberalise and promote trade in goods and services, as well as create 
a fair, transparent and fac ilitative investment regime; 
 (3) explore economic co-operation and est ablish cooperative mechanism between the 
Parties. 
2. The ECFA includes trade in goods, trade in services, investment protection, intellectual 
property rights, safeguard measures, economic c ooperation, dispute settlement and early harvest 
programs for trade in goods and trade in services.  
2. Could Chinese Taipei confirm the expected time frames for completing the negotiations of the 
goods, services and investment aspects of this agreement?  
Answer:  
Both parties would start to negotiate four ag reements covering goods, services, investment protection 
and dispute settlement within six months after the ECFA taking effect and would conclude these 
negotiations as soon as possible.  
3. When does Chinese Taipei intend to notify this agreement to WTO?  
Answer:  
After signing the ECFA, the signed agreement will be delivered to the legislat ure for its approval, and 
it will formally go into effect only after the legisl ature approves it. We will make the notification of the 
ECFA to the WTO in due course.  
4. Could Chinese Taipei confirm whether this agreement will apply to all companies and 
business established in the country? Is there any limitation of companies established with or 
without foreign participation in Chinese Taipei  or in China to utilise the lower tariffs and 
other benefits under ECFA? 
Answer:  
The ECFA will apply to all companies and businesses le gally established in our territory, in order to 
enjoy preferential treatments off ered by the Early Harvest Program for trade in goods, regulations on 
special rules of origins have to be met, including  product specific requirements (PSR). Likewise, the 
Early Harvest Program for trade in services req uires service providers to comply with certain 
regulations, including, but not limited to, same-sector  requirement, substantive business operations in 
our territory and payment of income taxes.  
  
Report by Chinese Taipei, page 18, para 61 
 The report by Chinese Taipei states that the Gove rnment believes that bilateral and regional trade 
agreements can complement and reinforce the multi lateral trading system, in turn facilitating the 
improvement of the domestic industrial structure and promoting competitiveness.  
5. Concerning the outlook on Chinese Taipei's future  trade policies on its economic integration, 
what plans does Chinese Taipei have with regard  to bilateral and regional trade agreements 
and what would be the next concrete steps after the  ECFA negotiations?   WT/TPR/M/232/Add.1 
Page 116  
 
  Answer:  
We will continue to expand economic  and trade relations with interested trading partners in order to 
facilitate higher economic and trade integration.  
 
III.  TRADE POLICIES AND PRACTICES BY MEASURES 
 
(2)  M EASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration, documentation, and procedures 
 
6. Could Chinese Taipei explain why it does not a llow 24 hour customs services for other types 
of shipments than express? 
Answer:  
After the Customs started to implement the sea ca rgo and air cargo fully automated clearance system 
in 1995, the clients with linkage of computer syst ems with Customs could transmit their declaration 
forms 24 hours a day. Besides, if clients apply for an extra clearance for their import/export goods in 
advance, our Customs will dispatch officers to deal wi th it, even on holidays. As above-mentioned, we 
have provided quite expedited and fa cilitated clearance services for our clients, and currently do not 
foresee the necessity of 24 hour customs services for other types of shipments than express.    
 
(vii) Government procurement 
WTO Secretariat's report, page 47, para.52 
 
Chinese Taipei brought its internal legislation in line with the GPA rules of  transparency and its 
market access commitments under the GPA. Howeve r, foreign suppliers reported that current 
regulations and/or practices still maintain barriers to tr ade, such as the systemic use of the lowest price 
criterion for the award of contracts, burdensome  liability regime, as well as limited use of WTO 
official languages for contract specification, a nd the provision of a short time period for submitting 
tenders.   
7. Does Chinese Taipei intend to modify those practices? 
Answer:  
Our government procurement regulations are in conform ity with the GPA. As for the issues of liability 
regime and use of WTO official languages for c ontract specification, there are no related 
requirements in the GPA. The use of the lowest price criterion for the award of contracts is in 
conformity with paragraph 4 of Article 13 of the GPA. The time period for submitting tenders is in 
conformity with Article 11 of the GPA.  
 
Article IX (8) of the GPA requires for each case of  intended procurement a publication of a summary 
notice in one of the official languages of the WTO and it stipulates what information this notice shall 
contain at least.   
8. Does Chinese Taipei intend to broaden the scope of the information currently provided in the 
said summary notices in Chinese Taipei, to the leve l customary in other GPA parties, in order 
to facilitate access to the GPA covered procurement? 
Answer:  
Our summary notices in English are in conformity with the requirements of paragraph 8 of Article 9 
of the GPA. 
  WT/TPR/M/232/Add.1 
 Page 117 
 
 
  9. Could Chinese Taipei give more details of th e specification in the recent regulation, which 
requires foreign companies to team up with  a partner from Chinese Taipei for certain 
construction projects?  
Answer:  
According to Construction Industry Act, it is requi red for foreign companies to team up with a partner 
from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu for construction projects 
if the contract amount exceeds NT$ 1 billion dollars. However, the requirements  are waived for the 
foreign suppliers of GPA parties.   
 
A foreign construction company shall first be subject to approval by the central governing authority 
and then application for recognition shall be fil ed in accordance with the Company Law or 
registration shall be carried out in accordance w ith the Commercial Registration Act. The company 
shall also receive a construction registration licen se and contracting project brochure in accordance 
with this law before it may commence business in the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu. In addition, where two or more construction enterprises jointly undertake works, 
they shall sign the contract together and estab lish a joint contracting agreement to take the 
responsibilities prescribed in the contract of the works. Foreigner construction companies and local 
companies of the Separate Customs Territory of Ta iwan, Penghu, Kinmen and Matsu are required to 
follow the same regulations.  
10. Could Chinese Taipei also explain the part of the regulation, which targets the global business 
activity of the companies?  In particular, could Chinese Taipei explain the scope and 
application of the clause of this regulation which refers to "special treaties or arrangements"?  
Answer:  
The regulations of company undertaking constr uction and repair works in the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu s hould follow Construction Industry Act. The term 
"special treaties or arrangements" of this regulati on refers the treaties or agreements, such as GPA, 
that we have signed with. 
 
11. Does Chinese Taipei intend to provide any guida nce to contracting authorities to ensure a 
correct application of its GPA commitments? If so, in which form? 
Answer:  
We have provided written Q&A, written instructi ons, workshops and training programs to procuring 
entities. It is because of long-term preparations, such as e-procurement system, training courses, and 
domestic procurement act, our pr ocuring entities have no difficulties in following the GPA rules. 
 12. Could Chinese Taipei explain the legal requireme nts for the eligibility of foreign bidders for 
construction contracts? In par ticular, as regards the applica tions for construction licenses. 
How do these requirements apply to bidders originating from countries, which are parties to 
the GPA? 
Answer:  
The incorporation of a foreign construction company shall first be subject to approval by the central 
governing authority and then application for rec ognition shall be filed in accordance with the 
Company Law or registration shall be carried out  in accordance with th e Commercial Registration 
Act. The company shall also receive a construc tion registration license and contracting project 
brochure in accordance with Construction Indust ry Act before it may commence business. However, 
the performance, seniority and accumulated amount  of completed construction projects shall be 
calculated based on actual performance carried out  within the home country the company registered,  
and the other performance shall be excluded. WT/TPR/M/232/Add.1 
Page 118  
 
  Article XIX (5) of the GPA requires a submission of a statistical reports on an annual basis.  
 13. Does Chinese Taipei intend to submit such a statistical report to the GPA Committee? 
Answer:  
We are in the process of preparing the statistic s report, covering the period from July 15 through 
Dec.31, 2009. 
 
A well functioning mediation, arbitration and litigation system  is essential for a well functioning 
procurement system. Currently the mediation fo r procurement contracts is under the Public 
Construction Commission (PCC) and consists of memb ers selected by the PCC. At local level, the 
mediation boards are under the local administ rations that also publish the tenders.   
 14. Could Chinese Taipei explain how the impartiality of the mediation boards is upheld? 
Answer:  
There is no requirement in the GPA as to the issue of  contract dispute resolution between a contractor 
and a procuring entity. Pursuant to  Article 85-1 of our Government Procurement Act (GP Act), 
contract dispute may be referred to the Compla int Review Board for Government Procurement 
(CRBGP) for mediation, a procedure which the result of mediation shall either come into force upon 
consensus of both contracting parties, or fail to co me into force if there is no consensus. In order to 
uphold the impartiality of the mediation boards, Article  86 of our GP Act prescribes that the CRBGP 
shall consist seven to twenty-five members sel ected from persons impartial and of professional 
knowledge in legal or  procurement affairs and appointed by the responsible entity or the municipal or 
county (city) governments. Three of such members ma y be high-ranking officials of the responsible 
entity or the municipal or county (city) governments provided that the number of such officials may 
not exceed one-fifth of the total number of membe rs. The CRBGP shall perform its official duties 
impartially.  
 15. How does the mediation board take into account the interest of all parties?  
Answer:  
There is no requirement in the GPA as to the issue of  contract dispute resolution between a contractor 
and a procuring entity.  
 
Pursuant to Article 85-1 of our GP Act, the provisi ons of mediation of the Code of Civil Procedures 
shall apply mutatis mutandis to the procedure and effect of the mediation by CRBGP, unless 
otherwise provided in this Act. In addition to revi ewing written documentations from both parties, the 
CRBGP has procedures which provide that: 
1. Participants can be hear d before an opinion is given.  
2. Participants can be represented and accompanied.  3. Opinions are given in writing with a st atement describing the basis for the opinion. 
 
16. Could Chinese Taipei provide statistics of su ccessfully mediated disputes, especially when 
involving foreign parties? 
Answer:  
Since the establishment of PCC’s CRBGP on May, 1999 till the end of May 2010, there were 
3,936 successfully mediated disputes, which account  for 67% of total cases. There are no statistics 
particularly for foreign parties. 
 
17. Could Chinese Taipei describe how arbitrators are selected for cases of procurement?  WT/TPR/M/232/Add.1 
 Page 119 
 
 
  Answer:  
There is no requirement in the GPA as to the issue of  contract dispute resolution between a contractor 
and a procuring entity. In the event that a contract di spute is referred to arbitration, arbitrators will 
be selected pursuant to our Arbitration Law, which can be found in 
http://mojlaw.moj.gov.tw/EngLawContent.aspx?id=12.  
18. Could Chinese Taipei inform whether it plans any legislative review of the current system of 
challenge procedures?  
Answer:  
Our bid challenge procedure prescribed in GP Act is in conformity with the requirement of Article 20 
of the GPA. There is no requirement in the GPA as to  the issue of contract dispute resolution between 
a contractor and a procuring entity. 
 
WTO Secretariat’s Report, page 49, para 57   
 19. Could Chinese Taipei explain the actual dr op of non-oil, non-gas procurement contracts 
awarded to foreign suppliers? 
Answer:  
We do not have statistics for such classification. 
 
Chinese Taipei's report, page 9 , para 18  
 
20. Could Chinese Taipei provide more information on i-Taiwan 12 Projects   -  t h e  
implementation, timetable, and whether these fall under GPA, and how foreign companies 
can participate in these projects? 
Answer:  
Please visit the website of the Council for Economic Planning and Development  for details 
(http://www.cepd.gov.tw/encontent/). 
 
In the event that there is any proc urement of these projects that falls  under GPA, we will follow the 
requirement of GPA. 
 
(3)  MEASURES DIRECTLY AFFECTING EXPORTS 
 
(vii) Export promotion and assistance  WTO Secretariat’s Report, page 53, para76  
21. Could Chinese Taipei provide information about how the funds allocated  for the 'New Cheng 
Ho Plan' were actually used? 
Answer:  
To cope with the global economic crisis, we drew  up a global market expansion plan called the “New 
Cheng Ho Plan”. In 2009 measures such as pr oviding funds for export finance and insurance, 
organizing trade missions, participating exhibitions , building marketing channels, inviting foreign 
buyers to purchase in the Separate Customs Terr itory of Taiwan, Penghu, Kinmen and Matsu, 
enhancing internet promotion, and providing ma rket surveys had been adopted under this plan. All 
these methods are common trade promotion measures. 
 WT/TPR/M/232/Add.1 
Page 120  
 
  (4)
  M EASURES AFFECTING PRODUCTION AND TRADE  
(iv) Standards and other technical requirements 
(a) Standards, technical requirements and inspection 
WTO Secretariat’s Report, page 59, para 95  
The share of applied standards in Chinese Taipei that are aligned to international standards has 
dropped from 25% in 2005 to 18% in 2009. This drop in  the share of internationally aligned standards 
in Chinese Taipei suggests that domestic standards ar e developed instead of relying on internationally 
applied standards to the maximum extent possible.  This appears to be an increasing obstacle for 
international trade.  
22. Could Chinese Taipei explain this negative trend?  
Answer:  
The alignment rate of our national standards with  international standards dropped from 25% in 2005 
to 18% in 2009 was mainly due to two reasons. One of the reasons was re-evaluation of the definition 
of international standardizing bodies. In 2006, th e Guide for Alignment of APEC Member Economies’ 
Standards with International Stan dards, endorsed by the APEC/CTI in 1996, was used as the criteria 
to calculate the alignment rate. In the Guide, ref erences were made to 27 international organizations 
listed in the ISO/IEC KWIC Index of Internatio nal Standards, which was less than the number of 
international standardizing organization that was used  for calculation in 2005. The other reason was 
integration of standards of similar nature. 
 
Nevertheless, in Table III.7, we provided a rate  of 74.16%, which we believe is a better way of 
representing the harmonization status of our nati onal standards, as harmonization is only possible 
when related international standards exist. This ca lculation would show an increase of the alignment 
rate from 71% in 2005 to 74.16% in 2009. 
 
In addition, 221 national standards are now reference d by technical regulations, and all of them are 
aligned with international standards. 
 
In some cases, there is an overl ap in competences of regulatory au thorities, such as can be illustrated 
in the case of automotive seat belts double-testing (BSMI and MOTC ). There are also different 
practices among regulatory authorities in Chinese Ta ipei, which often results in confusion and 
unnecessary burdens for economic operators. The EU encourages Chinese Taipei to simplify procedures, unify administration along best practi ces and in general to avoid introducing Chinese 
Taipei-specific domestic standards, and relying on  international standards to the maximum extent 
possible instead. 
 
23. Could Chinese Taipei explain how it plans to streamline its st andardisation activities and to 
introduce more internationally aligned standard s? What specific measures will it undertake to 
this endeavour? 
Answer:   
We are not able to become a member of the ISO or IEC and therefore are not able to participate in 
related meetings for the development of internatio nal standards. Lack of channels to engage in direct 
communication and consultation during the abo ve standards development processes had made the 
task of harmonization with international standards  rather difficult. Nevert heless, we have taken 
measures to encourage the partici pation of industry in standardiza tion activities.  We published the 
“Guidelines for Supporting Activities Related to St andardization” to provide the industry with  WT/TPR/M/232/Add.1 
 Page 121 
 
 
  incentives to development and promotion of industry standards. Other efforts include: to publish the 
“Regulations Governing Awards for Standardizati on”, to implement education and training 
programs, as well as to support experts to partic ipate in activities organized by international 
standard setting organizations. 
 The EU has received indications from market operators that olive oil may be sold in the local markets 
in mixtures which are not properly labeled. A mixt ure of olive oil with a high proportion of other 
vegetable oils can be labeled as 'mixed olive oil'. It  seems there have also been instances of a mixture 
of olive oil and vegetable oil sold as 100 % virgin oliv e oil, which is the high end quality. It has also 
been notified to us that these products use names, brands, icons, colours, flags and maps of producer 
countries which may be confusing to the consumers.  
 
24. Could Chinese Taipei comment on this and clarif y how olive oil is marketed and labeled in 
the country?  
Answer:  
The marketing and labeling of olive oil are mon itored and supervised in accordance with relevant 
regulations. Our Food and Drugs Administration is currently consulting relevant stakeholders 
concerning this issue.   
(b) Sanitary and phytosa nitary arrangements 
WTO Secretariat's report, page 62, para 100 
The report indicates that Chinese Taipei has amen ded its Food Sanitation Act on 5 January 2010 in 
relation to Bovine Spongiform Encephalopathy (BSE) to ban, inter alia , ground beef from any 
country that has had a BSE case, for a period of te n years from the country's most recent case. This 
specific condition is an example where Chinese Taipei does not recognise the list of safely traded products as laid down by the OIE and does not respect  the BSE- risk categorisation for countries as 
carried out by the OIE.  
The EU is generally concerned about Chinese Taipei 's interpretation of OIE guidelines on BSE.  The 
World Organisation for Animal Health Code prov ides for conditions under which beef and other 
bovine products can be safely traded from all count ries. Most EU countries have now been classified 
by the OIE as countries with "negligible risk" or "controlled risk".    25. Could Chinese Taipei confirm when it will allo w the imports of beef and other products from 
EU Member States and thus apply the same treatment as for other WTO members? 
Answer:  
Countries applying for beef importation into our market include both the EU Member States and other countries. According to our domestic laws and  regulations, risk analysis shall be conducted so 
as to decide whether to open the market for be ef importation for applicant countries. This same 
requirement of risk analysis applies to all regions and countries. 
 
26. Could Chinese Taipei explain the timetable and length of risk assessment related to BSE, 
especially in case of bovine meat from young calf? 
Answer:  
Risk assessment is a very specific process, conduc ted on a case-by-case basis. Therefore, we cannot 
predict or prejudge the timetable and le ngth of each risk assessment case. 
 WT/TPR/M/232/Add.1 
Page 122  
 
  WTO Secretariat's report, page 62, para. 101, 103 
 
The report notes that BAPHIQ, under the Council of Ag riculture, is responsible for establishing and 
executing SPS-related policies as well as for animal disease control. In paragraph 103, it is also 
mentioned that BAPHIQ is responsible for tec hnical consultations and negotiations as well as 
participation in international multilateral organisations, like WTO SPS Committee and OIE. The EU 
welcomes that Chinese Taipei is involved in techni cal negotiations in animal diseases in multilateral 
organisations.   However, the EU is aware of some examples wher e Chinese Taipei does not follow the international 
standards and recommendations set by these organisations.  
 In particular, and with reference to Chinese Taipei's  animal health policy, the EU is concerned about 
the Chinese Taipei's interpretation of defining a disease free status, especially while reviewing the 
applications, and not fully taking into account the possibilities for regionalisation.  
 
27. Does Chinese Taipei plan to contemplate a process towards the animal health import 
conditions generally accepted by the inte rnational standard setting bodies?  
Answer:  
Our process of recognizing a country or region as being animal disease-free is carried out on a 
national and/or regional basis.  
The EU also wishes to express concerns on princi ples and approaches to facilitate trade which we 
have raised bilaterally with Chinese Taipei. The slow progress of negotiations of SPS protocols in 
some cases limit market access of EU products to  Chinese Taipei, particularly concerning meat and 
fruits and vegetables.  
 28. Could Chinese Taipei elaborate on how it intends to accelerate these bilateral SPS 
negotiations with individual EU Member States in order to avoid undue procedural delays, as 
mentioned in Annex C in the SPS Agreement? 
Answer:  
The bilateral negotiations on SPS issues between the EU and us are making good progress. The Mid-
Term Review Bilateral Meeting in  May was very constructive and fruitful. We will be pleased to 
further enhance our discussion on SP S issues under this structure. 
 
(v) Intellectual property rights  
WTO Secretariat's report, page 65, para. 115 and footnote 102.   
 
The report states that the granting of IPR protection is apparently subject to reciprocity:   - if the country of a non-Chinese-Taipei applicant is not from a country signatory to a 
 regional/multilateral agreement to which Chinese Taipei is also a signatory; or  
- that this country has not concluded an agreement with Chinese Taipei on reciprocal 
 protection of IPRs (patents and trademarks);  or  - if the Acts of the country do not accept patent applications filed by Chinese Taipei  persons. 
 
29. Could Chinese Taipei assess and explain the co mpatibility of these provisions with Article 3 
of the TRIPS Agreement?  WT/TPR/M/232/Add.1 
 Page 123 
 
 
  Answer:  
Nationals of WTO members may, in accordance with Article 4 of the Patent Act, Article 3 of the 
Trademark Act, Article 4 of the Copyright Act, and Article 5 of the Integrated Circuit Layout 
Protection Act, enjoy any rights under TRIPS, including the national treatment of TRIPS Article 3 and 
MFN of TRIPS Article 4.  
WTO Secretariat's report, page 66, para. 116   
The Table III.9 on IPR applications and approvals shows a clear decrease in patent and trademark 
applications, as compared to previous years, even  though the figures do not cover the whole year of 
2009. 
 
30. How does Chinese Taipei explain this decrease? 
Answer:  
1. Patent application dropped slightly to 78,425 in 2009 due to the global financial crisis. It is a 
6% decrease compared to 83,613 applications in 2008.  
 2. Likewise, trademark application also dropped s lightly to 56,669 in 2009 also due to the 
global financial crisis. It is a 6% decrease compared to 60,120 applications in 2008. 
 (a) Copyright and neighbouring rights 
 
WTO Secretariat's report, page 66, para. 117 
 
The report states that the revision of the Copyright  Law of May 2009 was to clarify the legal liability 
of an ISP when its client uses the provided service to engage in copyright infringement activities over 
the internet.  
 31. Could Chinese Taipei describe the new liability ru les applicable to an ISP and the sanctions 
applicable in case the ISP, after being notif ied by the rights holders, does not remove nor 
disable access to the alleged infringing materials? 
Answer:  
The revision of the Copyright Act of May 2009 does not impose new sanction or obligation on ISPs. It 
provides ISPs a safe harbor to be exempt from civil liability (joint tortfeasance) caused by their users 
if they fulfill related requirements. Thus our Civ il Code and Copyright Act will be applied to 
determine the liability of an ISP who does not rem ove nor disable access to the alleged infringing 
materials after being notified by rights holders. 
 32. Could Chinese Taipei describe whether and unde r which conditions copyright holders have 
the right to pursue criminal liability against una uthorized users in case the right holder is not a 
member of any collecting society? 
Answer:  
Except for the limited exceptions (ref: Article 37,  paragraph 6), our Copyri ght Act does not require 
copyright holders to take up membership with a co llective society in order to activate criminal 
procedures against unauthorized users. In other word s, a copyright holder has the right to pursue 
criminal liability against unauthorized users regardl ess of whether he or she is a member of a 
collective society. 
 WT/TPR/M/232/Add.1 
Page 124  
 
  WTO Secretariat's report, page 67, para. 117 
 
The report states that the amendment to the Copyri ght Intermediary Organization Act was adopted in 
January 2010. As a result, the copyright collective management system should be operated in a more 
orderly manner, the rights of copyright owners s hould be protected, and copyright users should be 
facilitated in obtaining a licence. 
 
33. Can Chinese Taipei describe the respective rol es of the Intellectual Property Office (TIPO) 
and the collecting societies in the determinati on of the tariff for the exploitation of works? 
Answer:  
1. TIPO only intervenes with licensing matters when CMOs violate regulations or operate    in 
inappropriate manners. When that happens, TIPO would order the CMO to correct its actions or 
hand down appropriate penalties. With respect to ta riff rate, TIPO would only intervene with such 
matter when users disagree with the tariff and apply w ith TIPO for a review of the tariff in dispute. 
 
2. Procedures for determining a tariff: Tariffs are set up by the CMOs and take effect 30 days 
after the rates are published. When  the users disagree with a tariff, they may apply with TIPO for a 
review of the rate with related information and gr ounds for the disagreement. After the application is 
accepted by TIPO, TIPO will then announce the dispute to allow other users of the same type of work 
to participate in the review. TIPO would also request  the CMOs to explain why the tariff was set up 
the way it was. TIPO would also need to ask for the opinion of the Copyright Examination and 
Mediation Committee during the review process before a final decision is to be made. (ref: Articles 24 
to 26 of the Copyright Collective Management Organization Act) 
 
WTO Secretariat's report, page 67, para. 118 
 
It is stated that no legislation exists fo r the protection of broadcasting organizations. 
 34. Does Chinese Taipei plan to in troduce legislative measures for the protection of broadcasting 
organizations? 
Answer:  
We do not have the plan to introduce the protec tion measures of broadcastin g organizations at the 
present stage. 
 35. Does Chinese Taipei's legislation provide for broadcasting and public performances rights for 
sound recordings' producers and performers? If not, does Chinese Taipei  plan to introduce 
such rights in its Copyright Law? 
Answer:  
We do not have a neighbouring right system. Sound recording and performance are copyrighted by 
our Copyright Act. Subject to certain limitations, perf ormers enjoy the exclusiv e right of broadcasting 
and public performance of their performances; in  the case of sound recording, right holders enjoy 
exclusive right for broadcasting and right of remunera tion for public performance. (ref: Articles 5, 
Article 7bis, Paragraph 2 of Article  22, Paragraph 2 of Article 24, Paragraph 2 and 3 of Article 26, 
Paragraph 2 of Article 26bis, Artic le 28, Paragraph 2 of Article 28 bis and Paragraph 2 of Article 29) 
  WT/TPR/M/232/Add.1 
 Page 125 
 
 
  (b) Patents 
 
WTO Secretariat's report, page 67, para. 120 
 
The report indicates that the main areas of the Patent Law amendment include inter alia  allowing for 
animal and plant patents and clarifying the re quirements of the patent term extension on 
pharmaceutical patents.  36. Could Chinese Taipei describe the ne w rules applicable in these two areas? 
Answer:  
1. Allowing animal and plant patents: 
To encourage the development of bio-industry and ensure the protection of research results, we will 
allow animal and plant patents in the new Patent Act. Therefore, animal and plant related inventions 
only have to meet the normal patent requirements shall be granted patent rights.    
 
In view of the balance between inventors and u sers, the Patent Act Amendment introduced the 
exemption of farmer’s privilege. Article 63 of the Amendment exempts the acts of farmers for their 
own use from patent right. 
 
If the breeder’s breeding activities fa ll into the scope of research exem ption regulated in Article 59 of 
the Amendment, such activities will be also exempted from patent right. 
 
2. Patent term extension mechanism:  
The legislative objective of the pat ent term extension mechanism is to  compensate the time spent on 
the government approval procedure of pharmaceutic al and agrichemical products. Therefore, such 
extensions should be allowed once only. So if the government approval is obtained after the granting 
of the concerned invention patent application, th e patentee may apply for one, and only one, extension 
of the patent term of said invention patent based  on the first government approval; said government 
approval can be used for seeking patent extension only once. 
In addition, the amended Patent Act deletes the two- year threshold in order to  fairly compensate the 
loss of patent right practice due to the government approval procedure.   
Furthermore, it may happen that an application fo r patent term extension is still under examination 
while the patent term expires. To avoid such a va cancy and along with any uncertainty of rights, the 
amendment regulates that if the competent authority cannot conclude the examination for patent term 
extension before the term’s expiration, the patent term  is deemed as already extended. If the final 
examination conclusion is to reject the patent term extension application, such legal effect should not 
exist ab initio. 
 (c)  Compulsory licensing  
WTO Secretariat's report, page 67, para. 123  
In May 2008, the legislature accepted the Protocol amending the TRIPS Agreement. 
 
37. Could Chinese Taipei explain why it has not yet notified its acceptance of the Protocol to the 
WTO as required by paragraph 5 of this Protocol? 
Answer:  
We will notify as soon as possible when  we complete our domestic process. 
 WT/TPR/M/232/Add.1 
Page 126  
 
  (d) Trademarks and geographical indications 
 
WTO Secretariat's report, page 68, para.125 
 
It is reported that at the end of 2009 the author ities were drafting amendments to 109 articles of the 
Trademark Act. It is understood that amendmen ts are planned regarding the definition for 
geographical certification marks and geographical collective trademark, as well as provisions on 
application.  38. Could Chinese Taipei provide more  information on those amendments? 
Answer:  
1. Article 79, Paragraph 2 of the Amendments: If a mark is used to certify the place of origin in 
Paragraph 1, and the goods or services as orig inating in a given geographical region have a 
particular quality, reputation or other characteristics, the app licant may file an application for 
registration of a geographical certification mark cont aining a geographical name or a sign which is 
sufficient to indicate the geographical region. 
 
2. Article 81, Paragraph 2 & 3 of the Am endments: If any doubt arises from the 
representativeness of the applicant for registration of a geographical certification mark, the Registrar 
Office may request the opinions of other co mpetent authorities of the goods or services. 
 Where a foreign enterprise, group or organization applies to register a geographical certification 
mark, the applicant shall submit documentation pr oving that the geographical certification mark is 
protected under the law in the name of the applicant  in the country where the applicant is located. 
 
3. Article 87, Paragraph 2 of the Amendments: If a mark is used to indicate that the goods or 
services provided by its members come from a specific  place of origin in Paragraph 1, and the goods 
or services as originating in a given geographica l region have a particular quality, reputation or 
other characteristics, the applicant may file an application for registration of a geographical 
collective trademark containing a geographical name or a sign that is sufficient to indicate the 
geographical region. 
 4. Article 90 of the Amendments: Paragraph 2 & 3 of Article 81 and Article 83 shall apply 
mutatis mutandis to geographical collective trademarks. 
  
The report further states that the amendmen ts to the Trademark Act planned include inter alia  
extending the condition on applying the provision of "well-known trade mark being deemed as 
infringement" from actual dilution of the distinc tiveness or reputation to likelihood of dilution. 
 39. Could Chinese Taipei describe how the new ru les on proofing the likelihood of dilution will 
work in practice? 
Answer:  
If the possibility that the distinctiveness or re putation of a well-known trademark is blurred or 
tarnished, then there is a likelihood of dilution. In practice, the degree of similarity between the 
mark/name and the well-known trademark, the degree of  inherent or acquired distinctiveness of the 
well-known trademark, the extent to which the well-known trademark is used on other goods or 
services by the third parties, and other factors will be  taken into account in determining whether the 
possibility exists. So a well-known trademark owner may submit related evidence to show there is a 
possibility of dilution. In additio n, any concrete evidence of actual  association between the mark and 
the well-known trademark is also helpful in judgin g if the distinctiveness or reputation of that well-
known trademark is likely to be diluted.  WT/TPR/M/232/Add.1 
 Page 127 
 
 
  WTO Secretariat's report, page 69, para. 127 
 
The report underlines that Chinese Taipei protects ge ographical indications under the Trademark Act. 
 40. Could Chinese Taipei give information about th e number of geographical indications already 
protected under this Act and the number of applications? 
Answer:  
GIs can be registered for protection as certific ation marks or collective trademarks. There are 
currently 17 geographical certification marks and 14 geographical collective trademarks registered. 
Six geographical certification mark and 20 geogr aphical collective trademark applications are 
pending. However, TIPO only do formality examinati on to the applications. The identification of GIs 
from the said registered marks will be done und er the help of competent authorities and experts with 
professional knowledge. 
 
In footnote 110, it is understood that provisions re lated to the protection of geographical indications 
for wines and spirits are included in the Tr ademark Act and in the Tobacco and Alcohol 
Administration Act.  41. Could Chinese Taipei explain more specifically by which provisions they implement:  
 (a) Article 23.1 of TRIPS as regards wines and spirits; 
 (b) Article 23.2 of TRIPS as regards wines and spirits? 
 
Answer:  
a) 
1. Article 33, Paragraph 4 of the Tobacco and Alcohol Administration Act: No false or 
misleading statements may be made in labeling on the container or external packaging and or 
brochure introduction of alcohol products. The geog raphical indication of the alcohol product shall 
not be used in translation or accompanied by expressions such as “kind”, “type”, “style”, 
“imitation” or the like, to convey erroneous impressi on or inference as to the origin of the alcohol 
product, even where the true origin of the product is indicated. 
 
2. Article 13, Paragraph 2 & 3 of the Regulations Governing the Labeling of the Alcohol 
Products: The labeling of alcohol products shall not be used in  translation or accompanied by 
expressions such as “kind”, “type”, “style”, “im itation” or the like, to convey erroneous impression 
or inference as to the origin of the alcohol pr oduct, even where the true origin of the product is 
indicated. 
 Where an alcohol product is labeled with geographical indication, a certificate of the geographical 
indication issued by the government or chamber of commerce authorized by the government of the 
place (country) of production shall be submitted to the central competent authority for examination 
before the alcohol product is declared to th e Customs or released from the factory. 
 
b)  According to Article 23, Paragraph 1, Subparagr aph 11 & 18 of the Trademark Act, a trademark 
application shall be rejected if the proposed trademark is likely to mislead the public with respect to 
the place of origin of the designated goods or servi ces, or if the proposed trademark is identical or 
similar to a geographical indication of wines and spirits  of a country or region that mutually protects 
trademark with us, and is designated for use on wines and spirits. 
 WT/TPR/M/232/Add.1 
Page 128  
 
  According to Article 50, Paragraph 1 of the Trademark Act, if the regis tration of a trademark violates 
the aforementioned provisions, a concerned party or a trademark examiner may request or apply to 
the Registrar Office to invalidate said registration. 
 
(f) Trade secrets 
 
WTO Secretariat's report, page 69, para. 129 
 
The report indicates that undisclosed test data have been protected by the Pharmaceutical Affairs Act 
since 5 February 2005. 
 
42. The current data exclusivity protection only covers new chemical compounds, but not new 
indications. Does Chinese Taipei contemplate amending the Pharmaceutical Affairs Act to 
provide data exclusivity pr otection to new indications? 
Answer:  
We are aware of the importance of the data excl usivity to the products with new indications. 
However, this regulation is legally bound and must  to go through the co ngressmen’s support. Our 
pharmaceutical industry associations have diverted opinions  to this issue. This could lead to the pro 
and con opinions in the congress. The FDA will work with DOH and industry, try to find out a win-
win strategy and setup the data exclusivity to the new indication products in the future. 
 43. Could Chinese Taipei describe the rules in place to prevent patent disputes in case a 
marketing authorization for pharmaceutical products is granted before the expiry of the patent 
over such products? If such rules do not exis t, how does Chinese Taipei prevent patent 
disputes?  
Answer:  
The review of generic pharmaceutical products and patent information are normally linked. The 
Department of Health (DOH) has required applicants  to submit declaration of conformity not to 
infringe of copyright and patents.  
 
Depend on the patent law, within valid patent pr otection period, the generic pharmaceutical products 
can not enter market sales or invite for what has been trafficked.  
 
To judge the case of patent infringement takes pl ace by the intellectual property court which was 
established in July 2008. 
 PS: 
 
DOH has formally notice applicants who are applying or have been granted marketing authorization 
for pharmaceutical products after Feb. 2005, should submit registered patent number/ declaration of 
conformity of patent information. This info rmation is available on the FDA’s website. 
http://www.fda.gov.tw/Bgradatio n_index.aspx?site_content_sn=38 
 
(h) Enforcement 
 
WTO Secretariat's report, page 70, para. 133 
 
It is stated that infringements of IPRs result in, inter alia , destruction, disposition, suspension by 
Customs of the release of goods, or confiscation (if so requested by the injured party), and fines. 
  WT/TPR/M/232/Add.1 
 Page 129 
 
 
  44. Could Chinese Taipei explain in which cases a nd under which conditions the destruction of 
the infringing products may be decided? 
Answer:  
Customs refers all IPR infringing cases to the judici al authority, which is the competent authority to 
determine whether the goods are infringing products or not. If the goods are confirmed to be 
infringing products, our Customs authorities will have the responsibility to destroy the goods in 
accordance with related customs regulations.   If a criminal case is judged as guilty by the cour t, the conviction is confirmed, and the tortuous 
objects are declared confiscated, th e verdict shall be executed by the district prosecutors’ office that 
brought up the charge and the same district office shall also go ahead to destroy the objects.  According to Article 61, Paragraph 3 of the Tradema rk Act, a trademark right holder may request for 
destruction or other necessary disposal of the goods infringing trademark rights, or raw materials or 
equipments utilized for infringement in civil pro ceedings. According to Article 88bis of the Copyright 
Act, the injured party in civil proceedings may re quest the destruction or other necessary disposition 
of goods produced as a result of the infringing act,  or of articles used predominantly for the 
commission of infringing acts.  According to Article 31bis of the Customs Anti-smug gling Act, where import or export cargoes, other 
than genuine goods parallel imported, that have been  declared to Customs infringes the trademark 
right or copyright, the importer or exporter in questi on shall be imposed with a fine equivalent to one 
to three times the value of the cargoes, and the cargoes shall be c onfiscated. In practice, the cargoes 
confiscated by the Customs which have been decla red infringing the trademark right or copyright 
must be destructed eventually. 
 
WTO Secretariat's report, page 71, para. 135 
 
The report points to some challenges that seem to  remain in place in some areas, including the 
availability of counterfeit pharmaceuticals
 in Chinese Taipei, infringement of copyrighted material on 
the internet, illegal textbook copying on and around university campuses, trade mark counterfeiting, 
sale of counterfeit goods over the internet and inadeq uate protection for the packaging, configuration, 
and outward appearance of products (trade dress). 
 
45. Could Chinese Taipei indicate which measures are or will be taken to address these 
challenges? 
Answer:  
On counterfeit pharmaceuticals:  
With our effort to ensure the public’s health and safety concerning the use of medicine and drugs, the 
Department of Health (DOH) has already set up hi gh standards in the current Good Manufacturing 
Practice (cGMP) and Good Clinical Practice (GCP) pr ocedures. Realizing that extra efforts could be 
made, in late March of 2010, a task force of inv estigating illegal pharmaceuticals has been put 
together by the DOH, the Ministry of Justice, the Po lice Agency, the Directorate General of Customs, 
the Communications Commission, the Informati on Office and the Coast Guard Administration. 
Statistically speaking, cases charged of involvi ng illegal drugs amount to 48 cases on a weekly basis 
prior to the establishment of such a task force and among these 48 cases only 11 of them are indicted 
from January to March of 2010. With the establishmen t of this special task force, cases charged of 
involving illegal drugs have increased to 204, on weekly basis, and 96 of them are indicted in the 
May. With the apparent growth in statistic figures it is fitting to say that such task force has indeed 
been fruitful in its efforts to crack down illegal dr ugs. What’s more, in the year 2007, we have also 
established an Anti-Counterfeiting Taskforce (TMPAC T) which cooperates with the International WT/TPR/M/232/Add.1 
Page 130  
 
  Medical Products Anti-Counterfeiting Taskforce (IMPACT). Such efforts can be seen as our 
willingness to participate and le arn in the fight with ille gal drugs internationally. 
 On others:
 
 
In order to meet the needs of national devel opment, the Executive Yuan approved a three-year IPR 
Action Plan to carry out IPR protection policies. Si nce the IPR Action Plan has yielded satisfactory 
results, it is now in its third time of implem entation. The IPR Action Plan 2009-2011 began in 
January 1, 2009. Under the Action Plan, an Inter- agency Coordination Taskforce for IP Enforcement 
is set up to coordinate all IPR protection work, wh ich would include infringement of copyrighted 
material on the internet, illegal textbook copy ing on and around university campuses, trade mark 
counterfeiting, sale of counterfeit goods over the internet and inadequate protection for the 
packaging, configuration, and outward appearance of products. For details of the Action Plan and its 
achievements,  
 The report also states that a number of college a nd university students have sought to bypass the 
MOE's TANet rules and avoid MOE monitoring by  using the ADSL broadband service from private 
ISPs other than TANet to access the Internet.  46. Could Chinese Taipei indicate which measures ar e or will be taken to address this issue? 
Answer:  
In order to ensure that school authorities can eff ectively manage possible Inte rnet infringement acts 
on campus, MOE issued a request in April 200 9 that every university institutes rules against 
infringement using ISPs other than TANet.  Furthermore, according to an amendment to the Campus 
IPR Action Plan announced in April 2010, internet  networks include schools and academic networks 
who have signed contracts with private internet  service providers. Therefore, if there are IPR 
infringement using private ISP service, schools must set up clear regulation and implement 
accordingly.  For those who commit infringement by using Int ernet networks other than TANet on campus or in 
school dormitory, they will still be punished according to school Internet rules or regulations as long 
as their acts of infringement are confirmed. 
 
IV. TRADE POLICIES BY SECTOR  (4)
  MANUFACTURING  
Chinese Taipei's report, page 10 , para 19  
The former Administration indicated that a suppor t scheme and subsidies would be provided for the 
DRAM industry consolidation.   47. Could Chinese Taipei provide information on the proposed government support for the 
DRAM industry? 
Answer:  
In 2009, the financial crisis attacked global DRAM  industry seriously. In order to assist DRAM 
industry through the crisis and enhance their comp etitiveness, we had tried to initiate proper 
promotional measures. However, with the boomin g of global economy, the government has not 
implemented any measures which could have interfered market mechanism yet.  
  WT/TPR/M/232/Add.1 
 Page 131 
 
 
  According to recent press reports, there are plans for granting government subsidies to the cloud 
computing sector.  48. Could Chinese Taipei provide more information on the nature of subsidies foreseen for the 
cloud industry and how they will be granted to  companies? How would foreign companies be 
involved? 
Answer:  
In order to promote the development of Cloud comp uting industry, we encourage domestic enterprises 
to develop the essential cloud computing technology and multi-application services.  As for foreign 
companies, we welcome communication and coopera tion among the foreign companies, the domestic 
enterprises, and the R&D institutions for developing cloud computing services.  
 
(5)  S ERVICES  
(ii)  Financial services  
 
WTO Secretariat's report, page 92, para. 73 
 
The report notes that several major financial in stitutions continue to be government-owned.  
 49. Could Chinese Taipei please inform if there are any plans to privatize such institutions? 
Answer:  
There are three state-owned financial institutions, the Taiwan Financial Holdings Co. Ltd, the Land 
Bank of Taiwan, and the Export-Import Bank. Sin ce our financial market is very competitive and 
these three state-owned banks do not hold any exclus ive rights. At present, we have no plan for the 
privatization of these three state-owned banks . 
 
WTO Secretariat's report, page 96, para. 90  
The report describes the limited participation of non -Chinese-Taipei companies in the local insurance 
market.  
 
50. In this regard, could Chinese Taipei explain the current state of play regarding the adoption of 
international standards, and in partic ular IFSR 4, in the insurance sector? 
Answer:  
“Statement of Financial Accounting Standards No.40:  Insurance Contracts (SFAS No. 40),” which is 
based on IFRS 4, will take effect on 1 January 20 11. Also, the FSC announced on 14 May 2009 that 
all financial services companies regulated by the FSC, except for credit coop eratives, credit card 
companies and insurance intermediaries, will be required to prepare IFRS-compliant financial 
reports beginning in 2013. 
 
WTO Secretariat's report, page 97, para. 93 
 
51. Could Chinese Taipei inform about the state of pl ay on the adoption of international standards 
regarding investment under mutual funds structur es? Are there plans to streamline regulatory 
approval procedures to ensure a more timely cons ideration of applications? If so, with which 
timeline? WT/TPR/M/232/Add.1 
Page 132  
 
  Answer:  
On September 30, 2003, the "Qualified Foreign Ins titutional Investors (QFII)" permission system was 
replaced by registration system to facilitate fo reign investment in our securities market. The period 
from register online to start trading has been reduced to T+3 days. 
 
(iii) Telecommunications and postal services 
 
(a) Telecommunications 
 WTO Secretariat's report, page 98, para. 96 
 
The report identifies Chinese Taipei's telecommunicati on sector as modern, totally digitalized, and as 
one offering a wide range of services.   52. As Chinese Taipei still imposes foreign equity limitations in this sector, could it share its 
views on the rationale for such limitations a nd indicate whether and when it will aim at 
eliminating them? 
Answer:  
Our telecommunications business is divided into Type I telecom enterprises and Type II telecom 
enterprises. As for Type I te lecom enterprises, they are entitled  to apply for the use of scarce 
resources, including frequencies, numbers and right s of way, etc. Therefore, we retain some 
limitations on foreign ownership in Type I telecom enterprises. 
 We will continue to review relative laws and regulations in regards to market access in 
telecommunications. 
 (b) Postal Services  
 
WTO Secretariat's report, page xiii, para. 23 
 The report notes that postal services rema in closed to private investment.  
 53. Could Chinese Taipei inform whether it intends to  gradually open up this sector to foreign 
investment? If so, with which timeline? 
Answer:  
According to the first Paragraph of Article 6 of  the Postal Acts, apart from Chunghwa Post and 
others so entrusted, no others may engage in the business of delivering letters, postcards or other 
correspondence. However, the busin ess of delivering newspapers, magazines, printed matter and 
parcels is open for free competition.  
 
WTO Secretariat's report, page 100 , para.106-107 
 
In its 2006 Trade Policy Review, Chinese Taipei stated  that the delivery of newspapers, magazines, 
printed matters and parcels had been opened to comp etition. However, it remains unclear whether this 
includes actual direct foreign commercial presence.  The present Secretariat's report states that 
commercial presence has been liberalised for e xpress delivery services recently, but that postal 
services remain entirely closed to non-Chinese Taipei participation.  
 
54. Could Chinese Taipei clearly describe and explain the current postal monopoly, i.e. which 
services precisely fall under the monopoly?  WT/TPR/M/232/Add.1 
 Page 133 
 
 
  Answer:  
Please refer to our answer to question no. 53. 
 
55. As Chinese Taipei has taken commitments under Mode 3 for those courier services not 
reserved to Chinese Taipei post, could it please specify in how far (into which subsectors) 
foreign services providers can now invest in the postal and courier sector? 
Answer:  
Please refer to our answer to question no. 53.  
 
The report also states that in 2004, the MOTC subm itted a plan to Chinese Taip ei's Executive for the 
privatization of the Post and that the authorities ar e still assessing the potential impact of privatization, 
in particular as regards the provision of universal  postal services.  The report adds that no time 
schedule for privatization has been set.  
56. Could Chinese Taipei please elaborate on the schedule it might envisage for privatisation? 
Answer:  
We approved in July 2009 the Service Industry Deve lopment Plan with the aim of building the service 
industry into an engine for increasing added value,  creating jobs, enhancing the quality of life, and 
stimulating economic growth. Teleco mmunications is one of the key areas in the first stage. In terms 
of strategy, the effort will start out with enhanc ing the international comp etitiveness of the service 
industry, strengthening R&D and innovation, crea ting differentiated services, reinforcing manpower 
training and recruitment from abroad, and improving service industry statistics. 
 Regarding privatisation of postal services, the Comm ittee of Public Enterprise Privatization is 
examining some key issues involved  in the postal privatization (such as “universal postal service.”) At 
present stage, there is no definite time schedule for postal privatization. 
 
(iv) Transport 
 
(a) Maritime transport 
 
WTO Secretariat's report, page 102, para. 113 
 
The report briefly describes the 2004 maritime tr ansport agreement between Chinese Taipei and 
China. According to this agreement, direct navi gation between China and Chinese Taipei is reserved 
for Chinese or Chinese Taipei flagged vessels. Howeve r, according to the Secretariat's report, the 
agreement also enables direct navigation of ships registered in third countries across the Strait under 
certain conditions. 
 57. Could Chinese Taipei please provide more in formation on the conditions for third country 
flagged vessels to be allowed in direct trade between China and Chinese Taipei? Are 
international carriers allowed to carry out tr ans-shipments of China cargo using ports in 
Chinese Taipei and, if yes, under what conditions? 
Answer:  
We have signed with China the “Cross-Strait Sea Transport Agreement” on 4 November 2008. Any 
ships navigating between the two sides are govern ed by "Regulations Governing the Approval and 
Administration of Direct Cross-Strait Sea Transpor t”. Nowadays, ships of foreign flag applying to 
navigate to offshore center in our area could offer the directly navigating liner services between both sides. However, it is not allowed to load or unload the cargoes from our area to China or vice versa. WT/TPR/M/232/Add.1 
Page 134  
 
  Follow-up questions by the European Union
 
 
1. On Question 1 - Could Chinese Taipei explain the details of the coverage of the ECFA, in 
particular, as regards trade in goods?  Could Chin ese Taipei indicate the commitments made by each 
Party of the Agreement in terms of tariff lines and trade in value? 
 
Answer:  
(1) The ECFA includes trade in goods, trade in serv ices, investment protection, intellectual 
property rights, safeguard measures, economic  cooperation, dispute settlement and early 
harvest programs for trade in goods and trade in services. Both parties will start to negotiate 
four agreements covering goods, services, investment  protection and dispute settlement within 
six months after the ECFA enters into force and will conclude these ne gotiations as soon as 
possible. 
 
(2) Contents of Early Harvest for Trade in Goods 
a. Manufacturing:  
 China agrees to a list of 539 goods from us for early harvest tariff reduction. The goods on the list 
imported by China from us in 2 009 amounted to a total value of US$13.84 billion, with 16.1% of 
China’s imports from us subject to an average ta riff of 9.5%. We agree to a list of 267 goods from 
China for early harvest reduction. The goods on the li st imported by us from China in 2009 amounted 
to a total value of US$2.86 billion, with 10.5% of our imports from China subject to an average tariff 
of 4.2%.   b. Agriculture: 
 
Currently, 830 agricultural products from China a re not permitted for import with the original 
restrictions in effect and no furt her opening. The original 1,415 ag ricultural goods that were open for 
import from China are also not granted tariff reduc tion at this stage of the ECFA. However, China 
offers preferential tariffs for 18 of our agricultu ral products, including live fish, enoki mushrooms, 
tea, oranges, etc. 
 
c. Tariff reduction stages: 
 Both sides have agreed to adopt the same tariff scheme. Within 2 years of implementing the early 
harvest, tariffs will be reduced periodically 3 times to  reach the zero rates. Ho wever, both sides will 
apply different standards, with us appl ying tariff reductions half that of China’s as explained below: 
  (i) China’s tariff reduction approach:    The 2009 MFN tariff rate of less than (or equal to) 5% will be immediately reduced to zero in 
the first year (01 Jan. 2011) of implementing th e Early Harvest Program.  The MFN tariff rate 
of greater than 5% but less than (or equal to) 15 % will be immediately reduced to 5% in the 
first year of implementation and further reduced  to zero in the second year of implementation 
(01 Jan. 2012). The MFN tariff rate of great er than 15% will be immediately reduced to 10% 
in the first year of implementation, to 5% in  the second year, and finally to zero in the third 
year (01 Jan. 2013). 
 
 (ii) Our tariff reduction approach:   The 2009 MFN tariff rate of less than (or equal to) 2.5% will be immediately reduced to zero 
in the first year (01 Jan. 2011) of implem enting the Early Harvest Program. The MFN tariff 
rate of greater than 2.5% but less than (or equal to) 7.5% will be immediately reduced to  WT/TPR/M/232/Add.1 
 Page 135 
 
 
  2.5% in the first year of implementation and fu rther reduced to zero in the second year of 
implementation (01 Jan. 2012). The MFN tariff rate  of greater than 7.5% will be immediately 
reduced to 5% in the first yea r of implementation, to 2.5% in the second year, and finally to 
zero in the third year (01 Jan. 2013). 
 2. On Question 24: Could Chinese Taipei indicate where we can consult the relevant regulations 
concerning  marketing and labelling of olive oil?  
Answer:  
The central competent health author ity in the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu is the Food and Drug Administration, De partment of Health. In addition, the applicable 
relevant regulations concerning olive oil can be found on the following web sites: 
 http://www.fda.gov.tw/eng/  
 http://law.moj.gov.tw/Eng/  
 
Energy: 
 Renewable energies - WTO Secretariat's report, page page 85, para 41 
 
In 2009 Chinese Taipei published a Renewable Ener gy Act that aims to promote renewables from 
different sources. At the beginning of 2010 concre te feed in- tariffs for the different sources of 
renewables were determined. The feed in- tariff fo r wind energy is far too low to attract foreign 
investment in wind energy projects. The Germ an company Infravest that has long established 
investments (backed by KfW- funding) in wind energy generation in Chinese Taipei states that it can not invest further under these conditions. 
 
3. EU would like to know if there are any discr iminating elements regarding the possibility to 
benefit from feed-in tariffs: are they different fo r domestic/foreign utilities? Are they conditioned on 
local content in the wind turbines used? What are the criteria for attributing public markets in this 
sector: is non-discriminating treatment ensured?  
Answer:  
(1) The feed-in tariffs for renewable electricity  in the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu are decided by an exper t Committee according to the Renewable Energy 
Development Act. All the parameters used while deciding these tariffs are based on up-to-date figures 
of real investment projects or research reports, as well as domestic interest rate levels.  
(2) Regarding the applicability of feed-in tariffs for renewable electricity for foreign utilities, as 
long as these utilities are registered under our related laws, they will be treated as domestic utilities. 
There will be no problem for these utilities to benefit from these tariffs.  (3) There are non-discriminating trea tments for the public markets. 
 
Organic labelling - WTO Secretariat's Report, page 64, para 111  
The EU reiterates its concerns with regard to Chinese Taipei's new organic system, under which the 
organic regimes of some EU Member States had b een recognized, while for so me new Member States 
not. It should be noted that  the EU is a single, unified market where the same organic regime applies 
to all 27 EU member States 
 4. Could Chinese Taipei indicate the state of pl ay and timetable for recognising all EU Member 
States for organic labelling equivalence for products of plant origin?  WT/TPR/M/232/Add.1 
Page 136  
 
  Answer:  
(1) Regarding the EU’s concern about  the recognition of 12 new EU member states on our 
organic equivalence list, we have recognized Hunga ry’s organic regime as equivalent to ours and 
issued a notice on May 21st, 2010. 
(2) As for the other 11 new EU member stat es, we would strongly recommend they follow the 
case of Hungary by providing detailed rules, pro cedures and related documents for the application of 
organic equivalence. This will facilitate our prom pt assessment of their equivalency recognition 
processes.  
Intellectual property, including geographical indications 
 
In reply to EU question 15 under trad e secrets, Chinese Taipei states that: " The Department of Health 
(DOH) has required applicants to submit declaration of  conformity not to infr inge of copyright and 
patents". 
 5. Can Chinese Taipei indicate whether this require ment is a legally binding obligation, where it 
can be found (e.g. law, regulation, guidelines, etc.) and what kind of sanctions are applied in case of 
the applicant provides a false information?  
Answer:  
The requirement for submitting declaration of confor mity is a legally binding obligation. It can be 
found in “Article 40: generic drug application dossiers and its annex (annex four) of the Guideline for Drug Registration Review (tentative translati on)”, which, according to The Pharmaceutical 
Affairs Act, amended on 5 February 2005, Chapter IV - Registration and market approval of Drugs, 
Article 39 Paragraph three states: The application crit eria, review procedure, approval criteria, and 
other matters to be complied with shall be estab lished in the Criteria Governing the Review for 
Registration and Market Approval of Drugs by th e central competent health authority (i.e. the 
Guideline for Drug Registration Review promulgated  by  the Department of Health as mentioned 
above). The format for declaration of conformity can be found at the Departm ent of Health’s (DOH) 
website as follows (available in Chinese version only): http://www.fda.gov.tw/cgi-
bin/search/getfile.cgi?act=redirect&db=FDA& id=17203&t=WEB&uilang= &title=%e5%88%87%e7
%b5%90%e6%9b%b8(%e 7%94%b2,%e4%b9%99)&url=http:// www.fda.gov.tw/files/list/200501_%
25e5%2588%2587%2520%2520%2520%25e7%25b5%2590%2520%2520%2520%25e6%259b%25b8%25e7%2594%25b2--%25e8%2597%25a5%25e5%2593%2581.doc   
 
Sanctions will be applied on the applicant if the applic ant provides false information according to our 
Criminal Code (Article 214): A person who damages in a manner likely to cause injury to the public 
or to another, causes a public official to make in a public document an entry which such a person 
knows to be false and causes injury to the public or  another, shall be punished by imprisonment for 
not more than three years, short-term detention,  or a fine of not more than NT$500. (tentative 
translation) 
 In reply to EU question 38 on trademarks and geog raphical indications, Chinese Taipei explains that, 
as part of the amendments planned in relation to  the Trademark Act, it may be provided that " Where a 
foreign enterprise, group or organization applies to register a geographical certification mark, the 
applicant shall submit documentati on proving that the geographical certification mark is protected 
under the law in the name of the applicant in the country where the applicant is located". The same 
would apply for geographical collective trademarks.  
6. Can Chinese Taipei please clarify what ty pe of documentation would be accepted as proof 
that the "geographical certification mark" is protect ed under the law in the name of the applicant in 
the country where the applicant is located? In particular,  would it be required that protection in the 
country of origin has been granted under trademark law?  WT/TPR/M/232/Add.1 
 Page 137 
 
 
  Answer:  
TIPO accepts any certification mark (or collective trademark) that has geographical meaning, as 
long as the qualifications of the applicant can be established through official documentation (or 
copies) of such mark, when it is in the name of the applicant and is protected under the law, and not 
restricted to trademark law, on specific goods or ser vices with particular quality, reputation or other 
characteristics in the country of origin.    
In reply to EU question 41 on trad emarks and geographical indicati ons, in particular Article 23.2 
TRIPS, Chinese Taipei specifies that " According to Article 23, Pa ragraph 1, Subparagraph 11 & 18 
of the Trademark Act, a trademark application shall be  rejected if the proposed trademark is likely to 
mislead the public with respect to the place of or igin of the designated goods or services, or if the 
proposed trademark is identical or similar to a geographical indication of wines and spirits of a 
country or region that mutually protects trademark with us, and is designated for use on wines and 
spirits."  
7. As regards " a geographical indication of wines and spirits of a country or region that 
mutually protects trademark with us, and is designated for use on wines and spirits ", can Chinese 
Taipei clarify the condition linked to the mutual protection of trademarks with Chinese Taipei and 
assess how this combine with Article 3 and 4 of the TRIPS Agreement?  
Answer:  
For practical purposes, “a country or region that  mutually protects trademark with us” can be 
interpreted as a country or region that is a signatory of a bilateral or multilateral agreement for protection of trademark rights to which we are also a signatory. Therefore, in line with Article 3 of 
the TRIPS Agreement, nationals of WTO members may enjo y the same rights as our nationals. And 
Article 23, Paragraph 1, Subpar agraphs 11 & 18 of the Trademark Act do not preclude the 
application of Article 4 of the TRIPS Agreement.   To prevent misunderstanding, Article 30, Paragr aph 1, Subparagraph 9 of the Trademark Act 
Amendment provides that a trademark application s hall be rejected if the proposed trademark is 
identical or similar to a geographical indicatio n of wines and spirits of the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu or  a foreign country which concludes with the 
Separate Customs Territory of Taiwan, Penghu, Kinm en and Matsu an agreement, or is a signatory to 
an international treaty to which we are also a si gnatory, or gives mutual recognition for protection of 
geographical indication, and is designated for use on goods or services that are identical or similar to 
wines and spirits.  
 
 
REPUBLIC OF KOREA  
 
Question 1  : Secretariat Report, page 1, paragraph 5~6 
 
The Secretariat report states that in order to en sure sustained growth, Chinese Taipei may require 
further structural reform in the form of 1) dive rsification of economy’s structure and search for new 
engines of growth, such as the services sector, a nd 2) gradual rebalanci ng of the composition of 
growth, putting greater emphasis on domestic demand. In this context,  - Does Chinese Taipei concur with the assessment of the Secretariat?  
Answer:  
Yes. 
 WT/TPR/M/232/Add.1 
Page 138  
 
  Question 2
 : Secretariat Report, page 8, paragraph 25 
 
The Secretariat report st ates that during the period under revi ew, Chinese Taipei embarked on a 
second round of financial reforms. In this context,   
- Could Chinese Taipei provide an assessment of the “second round of financial reforms”? Is it 
considered to have been a success? If so, wh at is the criteria used in making such an 
assessment? 
 
Answer:  
1. We have succeeded in cr eating an environment conducive to market consolidation and 
healthy competition. In the banking industry, th ere have been 39 M&A deals since September 2004. 
During this process, the number of domestic banks has  been reduced from 50 to 37 since 2001 and 
20 foreign entities have invested in 13 domestic financial holding companies or domestic banks. It is 
expected that consolidation will make our financial ma rkets more attractive. In such an environment, 
it will also be easier for domestic financial ins titutions to benefit from the experience and knowledge 
of foreign financial institutions.  
2. The aim of financial reform is to help financ ial institutions adjust rapidly to a changing 
environment and to improve their competitiveness.  Therefore, we will continuously implement and 
promote financial reform and adapt related plans to circumstances. We currently focus on the 
enhancement of financial strength of financial institu tions so that they can play their proper function, 
i.e. sustaining economic growth and in dustrial development by providing credit. 
 
3. After the recent financial tsunami, the focu s of global financial supervisory guidelines has 
shifted toward tighter supervision of  large financial institutions.  We will respect the market 
mechanism in terms of financial consolidation. Fu rthermore, we will pruden tially review M&A cases, 
emphasize due process, fairness, transparency and comp liance and take the interests of stakeholders 
into consideration. 
 - Could Chinese Taipei provide details of futu re financial reform measures that will be 
implemented in the future? 
 
Answer:  
With respect to M&A activity undertaken by financia l institutions in pursuit of business strategy, we 
will continue to promote financial reform by observing the principle of respect for the market 
mechanism. And we will ensure that bank takeover s are carried out under impartial, fair, and open 
circumstances that are in keeping with established business practices. At the same time, every effort 
will be made to safeguard the interests of  shareholders, employees, and customers. 
 
Question 3  : Secretariat Report, page 23~26, paragraph 27~35 
 
Korea notes that apart from the Economic Coopera tion Framework Agreement (ECFA) negotiations 
with China, the preferential agreements conclude d by Chinese Taipei are entirely with countries 
located in Central America. In para 27 (p. 23), it is  stated that this is a result of Chinese Taipei’s 
strategy to “gain access to the US market unde r NAFTA and CAFTA through investment in these 
countries”. In this context,   - Could Chinese Taipei provide its assessment of  the economic benefits of the FTAs concluded 
with Central American countries? 
  WT/TPR/M/232/Add.1 
 Page 139 
 
 
  Answer:  
The economic benefits of the FTAs c an be illustrated by the growth of bilateral trade. Take our FTA 
with Panama for example: since it went into effect on January 1 of 2004, bilateral trade between both sides increased respectively by 112%, 96%, 71%, 103%, 136.6%, and 39% from 2004. In 2009, the 
bilateral trade figure dropped 29.8% due to th e global economic downturn. But the principal 
products we imported, such as sugar, frozen shrimp, coffee and frozen beef, are still increased. 
Generally speaking, from 2004 to 2008, our bila teral trade with the Central American countries, 
including Panama, Nicaragua, Guatemala, El Salvador, and Honduras, grew steadily.   
 - How have these FTAs benefited the privat e sector’s access into the US market? Could 
Chinese Taipei provide examples of some success stories? 
 
Answer:  
Signing FTAs with Central American countries not onl y strengthens our trade relations with those 
countries but also serves to increase the willingness of our companies to invest in the region. With the 
harmonization of trade policy regimes and the elimina tion of trade barriers, industries such as textile 
and clothing are expanding their investment in the region with a view to utilizing preferential 
treatment and facilitation measures to ex port their products to the U.S. market. 
 
Question 4  : Secretariat Report, page 26, paragraph 35 
 
Korea notes that Chinese Taipei has initiated ECFA negotiations with China. In this context,  
 - Could Chinese Taipei provide a detailed update on the current status of the ECFA 
negotiations? 
 
Answer:  
The ECFA was signed on June 29, 2010. It will go in to effect after the approval of the legislature.   
 
- Could Chinese Taipei explain the structure of the ECFA? Will the ECFA be a ‘framework 
agreement’ which later encomp asses a more detailed agreem ent on trade in goods, trade in 
services, investment, IP, and dispute settleme nt, among others, between Chinese Taipei and 
China? Or will it be a stand-alone agreement which will detail the preference exchanged by 
both sides? 
 
Answer:  
The Economic Cooperation Framework Agreement (ECFA)  is, in its nature, a framework agreement. 
Both parties would start to negotiate four ag reements covering goods, services, investment protection 
and dispute settlement within six months after its taking effect and would conclude these negotiations 
as soon as possible. 
 
- Could Chinese Taipei elaborate on the coverage of the ECFA?  
Answer:  
The ECFA includes trade in goods, trade in services, investment protection, intellectual property 
rights, safeguard measures, economic cooperation,  dispute settlement and early harvest programs for 
trade in goods and trade in services.  
 
- Is an “early harvest” being contemplated with in the ECFA framework? If so, what is the 
expected coverage and treatment? 
 WT/TPR/M/232/Add.1 
Page 140  
 
  Answer:  
The ECFA includes early harvest programs for trade  in goods and trade in services. We agree to 
render zero tariff rates on 267 items (by 8 digits  of the HS code) of goods and commit certain 
measures of further liberalization for 9 service secto rs; while China will render zero tariff rates on 
539 items of goods for us and commit 11 servic es sectors in the Early Harvest Program. 
 
- Upon conclusion, how will it be notified to the WTO? Under GATT Ar ticle XXIV and GATS 
Article V, or the enabling clause? 
 
Answer:  
The ECFA was signed on June 29, 2010. We will deli ver the ECFA to the legislature for its approval 
as soon as possible. The ECFA will formally go into  effect only after the legislature approves it. We 
will make the notification of the ECFA to the WTO in due course .  
 
Question 5  : Secretariat Report, page 29, Table II.1 
 
In regards to Table II.1 which details the “Inbound di rect investment prohibitions and restrictions”,  
 - Could Chinese Taipei provide the definition of “Special recreational services” and an 
explanation of why investment in such services is prohibited? 
 
Answer:  
“Special recreational services”, code No. 9003, accord ing to the “Standard Industrial Classification 
System” (Rev.7, 2001) by the Dire ctorate-General of Budget, Accoun ting and Statistics in this regard 
means: those service facilities for amusement pur pose with service personnel, including: ballroom, 
singing club, liquor bar, special co ffee/tea shop, bar, dance hall, and night club etc.  This sub-sector 
is not open for foreign investment in accordance with the “Statute For Investment By Foreign 
Nationals”.  
 
- Could Chinese Taipei explain why investment  in surface transport areas such as “passenger 
bus services”, “taxi services”, and “tour bus services” are prohibited? 
 
Answer:  
For tour bus services , foreigners are allowed to invest in pa ssenger transportation in the area of car 
rental services. According to our Highway Law, forei gn investment in bus services, tour bus services, 
and taxi services are prohibited, due to considera tion of our very small and heavily populated land 
space.  
 
Question 6  : Secretariat Report, page 63, paragraph 106 
 With regards to Chinese Taipei’s SPS regime, the Secr etariat report states that there is a “backlog for 
establishing pesticide tolerances”. In this context,  - Could Chinese Taipei clarify under which law/re gulation the priority list for reviewing MRLs 
is being conducted? 
 
Answer:  
The priority list is derived from polic ies related to domestic considerations.  
 - What specific measures are being implemented to alleviate the “backlog”? 
 
Answer:  
We are doing our best to alleviate the backlog at the moment.  WT/TPR/M/232/Add.1 
 Page 141 
 
 
  Question 7  : Secretariat Report, pa ge 71~72, paragraph 136 
 The Secretariat Report states that the Ministry of Education (MOE) has issued an order prohibiting the 
use of P2P file sharing S/W on TANet to prevent inte rnet piracy. As stated in the Secretariat report, 
however, it seems that many students have fou nd ways to bypass such rules, substantially 
undermining its effectiveness.  
 - Could Chinese Taipei further elaborate the order issued by MOE to prevent internet piracy via 
TANet?  
 
Answer:  
With respect to using specific P2 P software on campus, MOE has reque sted all levels of schools to 
adopt the measure of “restrained u se in principle, access by individual request” to achieve the goal of 
“effective management and legitimate use.” Only when there is a specific need for research purpose 
could users apply for permission to  use specific P2P software.  
 - What additional action is being taken (or is being contemplated) to better cope with the 
situation?   
 
Answer:  
1. The Ministry of Education, starting in J une 2008, puts together a bi-monthly progress report 
on campus infringement incidents for rights holder groups.  
2. The Ministry of Education also requested all levels of schools to promote IPR protection 
awareness among their staffs, faculty, and students. The Ministry also emphasizes that disciplinary 
measures for infringement acts should be incorporated in school regulations. Data flow should also 
be restricted on campus Internet so as to eradicate improper use.  
 3. In order to ensure that school authoriti es can effectively manage  possible Internet 
infringement acts on campus, MOE issued a request  in April 2009 that every university in its institute 
rules against infringement using ISPs other than TANet.  Furthermore, according to an amendment to 
the Campus IPR Action Plan announced in April 2010,  internet networks include TANet and private 
networks who have signed contracts with school. Th erefore, if there are IPR infringement using 
private ISP service, schools must set up clear regulation and implement accordingly. 
 
4. For those who commit infringement by using TANet and networks other than TANet on 
campus or in school dormitory, they will still be di sciplined according to sch ool Internet rules or 
regulations as long as their acts of infringement are confirmed. 
 
Question 8
 : Secretariat Report, page 85, paragraph 40 
 
The Secretariat Report states that despite original plans to liberalize and privatize the electric power 
sector, the “plans have been stalled for several years”.  
 - Could Chinese Taipei elaborate on the reason wh y the original plans for liberalization and 
privatization have stalled?  
 
Answer:  
Privatization of state-owned enterprises (SOE s) remains on top of our policy priorities. 
 
The following table shows the SOEs privatiza tion process and the time lines envisaged. Due to 
various reasons, the privatization schedules of m any of these SOEs have had to be re-reviewed and 
adjusted. WT/TPR/M/232/Add.1 
Page 142  
 
  Privatization progress of enterprises listed in Secretariat Report Table AIII.4 
Company name Government 
ownership in 
2009 (%) Privatization methods Date set for 
privatization 
China Shipbuilding Corp. (CSC) 38.83 Share offering Privatized at 2008 
Taiwan Power Co. (TPC)a 94.04 Currently being planned : public offering, listing DR 
(Depositary Receipt), strategic investor are all viable options Re-evaluation 
Tang Zong Iron Works Co. 12.35 Share offering Privatized at 2006 
Aerospace Industrial 
Development Corp. 99.71 Convert division assets to shares in a new private 
company, then process IPO (initial public offering) Re-evaluation 
Chinese Petroleum Corp. (CPC) 100 Privatize vi a strategic sale of shares Re-evaluation 
Taiwan Sugar Corp. (TSC) 83.42 Privatization via sale of strategic business units 
(SBUs) Plan being 
processed; time undecided 
Taiwan Water Supply Corp. 
(TWSC)a 82.40 Contracting out Suspended 
Taiwan Tobacco and Liquor Co. 
Ltd. 100 The MOF has set a requirement for the privatization 
that there be a consensus between the labor union 
and the corporation on the matter of the release of 
the shares as a prerequi site to such release To be rescheduled  
Taiwan Financial Holdings (TFH) 100 None. (The financial market  of Taiwan is a very 
competitive market and the three stated-owned 
banks do not hold any  exclusive rights.) None 
Bank of Taiwan 100 On 1 January 2008 Bank of Taiwan was merged into 
Taiwan Financial Holdings as a subsidiary  
Land Bank of Taiwan 100 None. (The financial market  of Taiwan is a very 
competitive market and the three stated-owned 
banks do not hold any  exclusive rights.) None 
Central Trust of China n.a. The merger between The Bank of Taiwan and 
Central Trust of China was completed on 1 July 
2007  
Central Deposit Insurance 
Corporation 99.9995 According to the resolution of the meeting on 
relevant matters of the "Acceleration on setting up 
the timetable for privatization of government-owned institutions and enhancemen t of the functions of 
Privatization Task Force" chaired by the Directive 
Team of Privatization of the Ministry of Finance on 
17 October 1995, the business nature of the CDIC is not suitable for privatization None 
The Export- Import Bank  100 None. (The financial market  of Taiwan is a very 
competitive market and the three stated-owned 
banks do not hold any  exclusive rights.) None 
Printing Plant, Ministry of 
Finance 100 None None 
Taiwan Railway Administration 
(TRA) Official 
Bureaucratic 
Agency First to be corporatized, followed by re-review of 
privatization process Suspended 
Chunghwa Post (CHP)a 100 The Committee of Public En terprise Privatization is 
examining some key issues involved in the postal privatization (such as “universal postal service.”)     No definite 
timetable 
RSEA Engineering Corporation 19 In 2009 the government completed the privatization 
of RSEA Engineering Corporation by formation of a private-owned enterprise thorough joint venture with private shares Privatized at 2009 
Long Ci Commercial Dynamite 
Plant 40  Privatized at 2006 
a Market monopolized. 
 
- Assuming that there is renewed momentum for liberalization and privatization, what is the 
anticipated schedule for privatization of Taipower (TPC) ? 
  WT/TPR/M/232/Add.1 
 Page 143 
 
 
  Answer:  
The Privatization of TPC is planned by public o ffering, listing DR (Depositary Receipt) and strategic 
investor . 
 
 
SINGAPORE  
 
Investment 
 
Question 1 
 We note that Chinese Taipei continues to regard th e improvement of investment environment as a key 
policy area.  We welcome the efforts made by Ch inese Taipei in the liberalisation of commercial 
presence in the financial, environmental,  health, and tourism services sectors. 
 - Is Chinese Taipei considering furt her liberalisation of other sectors. 
 
Answer:  
The liberalization of commercial presence of rel evant service sectors has been conducted in full 
compliance with our WTO commitments.  We will c ontinue to welcome all foreign investments which 
bring know-how and innovative technologies to help  stimulate the growth of our economy and to 
improve the living standard of our society.  The Investment Commission of the Ministry of Economic 
Affairs (MOEA) is also currently coordinating a general review of the existing restrictions on certain industrial sectors.  Further deregulation will be made public as soon as this review process is 
concluded. 
 
Question 2 
 
Both the WTO Secretariat’s report (WT/TPR/S/232, page 21, para 18) and Chinese Taipei’s report 
(WT/TPR/G/232, page 10, para 19) note that Ch inese Taipei is promoting the development of 
emerging industries such as biotechnology, green ener gy, travel and tourism, medical care, high-end 
agriculture, and cultural and creative industries. 
 
- Can Chinese Taipei provide more informati on on Chinese Taipei’s initiatives for encouraging 
the development of these industries. We look forward to the new opportunities that these 
initiatives would present to both domestic and foreign investors.   
 
Answer:  
The Statute for Industrial Innovation that was pr omulgated on May 12, 2010 provides tax credits for 
R&D spending, lowers the tax burden, and helps create a more favorable operating environment for 
both domestic and foreign invested businesses.  
The investment incentives mentioned above apply to  six major emerging industries: biotechnology, 
green energy, tourism, health care, high-end agriculture, and culture and creativity. Investment 
opportunities in the tourism industry, for example, in clude cable-car BOT projec ts, tourist resort BOT 
projects, and hotel BOT projects.  
 
Question 3 
 
The WTO Secretariat’s report (WT/TPR/S/232, page  90, para 63) notes that limits on non-Chinese 
Taipei investment and other restrictions apply in  basic telecommunications and transport services.   
 WT/TPR/M/232/Add.1 
Page 144  
 
  - Does Chinese Taipei have any plans to relax r estrictions on Foreign Direct Investments (FDI) 
in the above-mentioned sectors. 
 
Answer:   
As for the limits and restrictions described by the Secretariat Report in paragraph 63 on page 90, the 
liberalization of commercial presence of relevant  service sectors has been conducted in full 
compliance with our WTO commitments.  We will c ontinue to welcome all foreign investments which 
bring know-how and innovative technologies to help  stimulate the growth of our economy and to 
improve the living standard of our society.  The Investment Commission of the Ministry of Economic 
Affairs (MOEA) is also currently coordinating a ge neral review of the existing restrictions on certain 
industrial sectors Necessary modifica tion and deregulation will then be made public, as soon as this 
reviewing process is concluded. In addition, regarding maritime transport service, for further 
liberalization, we are planning to amend the prop ortion of foreign investment on domestic shipping 
companies from 33% to 50% （not included ）.  
 
On the other hand, in view of the importance of  the services sector, we give primacy to the DDA 
negotiations to boost the global econom ic growth, and are committed to  cooperate constructively with 
WTO Members to secure a balanced and ambitio us outcome  of the DDA negotiations. 
 
Goods 
 
Question 4 
 
The WTO Secretariat’s report (WT/TPR/S/232, page 42, para 33) notes that for Chinese Taipei’s 
preferential rules of origin as applied to imports  under its Free Trade Agreements (FTAs), Chinese 
Taipei considers “substantial transformation” to ha ve taken place when the first six digits of the 
Customs Import Tariff of the processed or manufactured  goods is different from those of their parts or 
materials, or the ratio of value added is at least 35% of the transaction value of the non-originating 
parts or materials.   - Will these rules of origin apply to all Chinese Taipei’s FTAs and if yes, is there any 
exception. 
 
Answer:  
The rules of substantial transformation for FTAs are in accordance with the rules of origin 
established in these agreements.  
 
Question 5 
 
The WTO Secretariat’s report (WT/TPR/S/232, page 42, para 35) notes that “The Ministry of Finance has authority to adjust customs duties in order to deal with an "extraordinary" economic situation, 
domestic or overseas, or a situation to accommodate  the supply of goods, or to provide a "reasonable 
operational environment" without seeking the approval of the legislature.”   - While examples have been provided in the same  paragraph on unilateral decreases in customs 
duties since the last TPR, what are the circumstances under which Chinese Taipei may 
impose unilateral increases in customs duties, and if there have been recent examples or 
deliberations around such moves.    
 
Answer:  
We have bound all our tariff lines when we acce ded to the WTO in 2002.  Therefore, under no 
circumstances will we unilaterally increase cu stoms duties above the bound rates.  We have  WT/TPR/M/232/Add.1 
 Page 145 
 
 
  temporarily reduced customs duties on some goods in the past in order to deal with an extraordinary 
economic situation, such as the drastic increased of world prices on certain commodities.  But in no 
case have customs duti es ever been increased.  
  
GUATEMALA
 
 1. The report of the Secretariat indicates that th e growth of Chinese Taipei depends heavily on 
exports.  Accordingly, we would appreciate comment s of the Chinese Taipei authorities with respect 
to the initiatives that were undertaken to diversify its economy. 
 
Answer :  
In the past, our economic growth derived mainly from foreign trad e. However, because of the over-
concentration of export markets and high concentra tion of export products in ICT sector, our export 
trade was hit very hard by the repercussions of th e 2008 financial crisis. There fore, in the post-crisis 
era, we will strive to speed up the improvement of  our economic structure and bolster its fundamental 
soundness. Main emphasis will be placed on adj usting the structures of economic growth and on 
pursuing sustainable development. 
 In this context, we have taken needed measures with a view to expanding trade with emerging 
markets, creating favarable environment for new i ndustries to develop, encouraging innovation, and 
facilitating the growth of specific service sectors. 
 
 
__________