Annex I
Schedule of the Association of East Asian Relations
Reservations for Measures referred to in paragraph 1 of Article 8

1.

This Schedule sets out with respect to the Association of East Asian Relations,pursuant to paragraph 1 of Article 8, the existing measures that are not covered by
the following provisions of this Arrangement:(a) Article 3 ;(b) Article 4 ; or(c) Article 7 .

2.

Each Schedule entry sets out the following elements:(a) “Sector” refers to the general sector for which the entry is made;(b) “Sub-Sector” refers to the specific sector for which the entry is made;(c) “Industry Classification” refers, where applicable, and only for transparency
purposes, to the activities covered by the entry according to the relevant
classification codes;(d) “Provisions Concerned” specifies the provisions referred to in paragraph 1 forwhich the entry is made;(e) “Level of Authority” indicates the level of the authorities maintaining themeasure(s) for which the entry is made;(f) “Measures” identifies the existing laws, regulations, or other measures for which
the entry is made. A measure cited in the Measures element:(i) means the measure as amended, continued, or renewed as of the date of entry
into force of this Arrangement, and(ii) includes any subordinate measure adopted or maintained under the authority ofand consistent with the measure; and(g) “Description” illustrates, with regard to the provisions referred to in paragraph1, thenon-conforming aspects of the existing measures for which the entry is made.

3.

In the interpretation of each entry, all elements of the entry shall be considered. Each
entry shall be interpreted in the light of the relevant provisions of this Arrangement forwhich the entry is made. The “Measures” element shall prevail over all the otherelements.

1
Sector:All sectors
Sub-Sector:
Industry Classification:
Provisions Concerned: Article 3
Article 4
Level of Authority:
CentralMeasures:
Article 17, 18, 19 and 20 of the Land Law of June 14, 2006
Description:. Land used for forests reserves, fisheries and aquaculture, hunting
reserves, desalination fields, mineral deposits areas, water
resources, military purposes, and land adjacent to the frontiers
shall not be leased to and transferred to foreigners, or used ascollateral to foreigners.
Japanese nationals (natural and legal persons) shall have the same rights
to acquire land in Taiwan as those accorded to the citizens of Taiwan
acquiring land in Japan in accordance with the applicable laws andregulations in Japan, provided that such acquisition of land in Taiwan by
Japanese nationals is consistent with the purposes and uses specified in
Article 19 of the Land Act and not subject to the restrictions of Article
17 of the same Act.

2
Sector:MiningSub-Sector:
Industry Classification:
Provisions Concerned: Article 3
Level of Authority:
CentralMeasures:
Article 6 of Mining Law of December 31, 2003
Description:
Mining concessions are granted only to natural persons having
citizenship of Taiwan or legal persons incorporated and registeredwith the authorities of Taiwan.

3
Sector:Construction Services
Sub-Sector:
Industry Classification:
Provisions Concerned: Article 3
Article 4
Level of Authority:
Central and regional
Measures:
Article 69 of Construction Industry Act of May 26, 2010
Description:
Unless otherwise prohibited by law or any convention or treaty
signed by the authorities of Taiwan, if the contract amount for a
public construction project provided by the authorities of Taiwan
exceeds 1 billion NT dollars, the foreign construction company
shall perform the contracting project together with a local general
constructor.

4
Sector:Services incidental to energy distribution
Sub-Sector:
Industry Classification:
Provisions Concerned: Article 3
Level of Authority:
Central and regional
Measures:
Article 16 of the Statute for Regulating Privately-owned Utilities
of April 26, 2000
Article 4 of Nature Gas Act of February 1, 2011
Description:
Privately-owned utilities companies shall not have foreign
stockholders or mortgage their property to foreigners for funds
unless having been approved by the Executive Yuan of Taiwan.
Foreign equity in public gas utilities should be less than 50% in
total.
Any person without citizenship of Taiwan is not qualified as apromoter, director or supervisor of the company’s board of
directors.
Electricity transmission and distribution services are franchised
only to an enterprise owned by the authorities of Taiwan.

5
Sector:
Education services
Sub-Sector:
Industry Classification:
Provisions Concerned: Article 3
Article 7
Level of Authority:
Central and regional
Measures:
Article 82 of Private School Law of January 16, 2008
Article 9 of Supplementary and Continuing Education Law ofJune 23, 2004
Description:
Foreigners or foreign legal persons recognized by Japanese law
may not establish primary school and junior high school within
Taiwan, in accordance with Private School Law.
The president of the institution providing adult education (CPC924) and other education and training services (CPC929) is under
the competency of the educational authorities of municipality,
county or city. Some local educational authorities require that thepresident should be a citizen of Taiwan.

6
Sector:Transport services
Sub-Sector:
Internal waterway transport, and cabotage
Industry Classification:
Provisions Concerned: Article 3
Level of Authority:
CentralMeasures:
Article 4 of Shipping Law of January 30, 2002
Articles 8 of the Law of Ships of December 8, 2010
Description:
Foreign vessels may not navigate between ports of Taiwan totransport passengers and cargos unless a franchise is granted.
Foreign vessels shall not stay in any harbor or port other thanthose announced by the authorities of Taiwan as international
ports, unless otherwise specially approved by such authorities orfor seeking shelter.

7
Sector:
Sub-Sector:

Transport services
Maritime Transportation Services and the Operation of vessels
carrying the flag Taiwan

Industry Classification:
Provisions Concerned: Article 3
Article 7
Level of Authority:
CentralMeasures:
Article 9 of Shipping Law of January 30, 2002
Article 5 of the Law of Ships of December 8, 2010
Articles 5, 25 and 25-1 of the Seafarer Law of January 30, 2002
The Regulation of Permission and Administration for Employing
Foreign Seafarers of August 12, 2011
Description:
The authorities of Taiwan may adopt or maintain any measure
relating to the provision of maritime transportation services andthe operation of its vessels, including but not limited to thefollowing:
1. Any person desiring to engage in maritime transportation
services as a vessel carrier shall carry the flag of Taiwan andproduce relevant documents to the authorities.
2. The term “vessels carrying the flag of Taiwan” means ships
which are approved by and registered in the shipping
administration authority pursuant to relevant laws of Taiwan. A
ship may apply for such registration if:(a) The ship is owned by the authorities of Taiwan,(b) The ship is owned by the citizens of Taiwan, or(c) The ship is owned by any of the following companies,
which are incorporated under the laws of Taiwan, withprincipal offices situated within Taiwan:(1) An unlimited company, of which all shareholders are
citizens of Taiwan.
(2) A limited company, of which at least half of the capitals
are owned by citizens of Taiwan and the director
authorized to represent such company is a citizen of
Taiwan. However, capitals owned by citizens of Taiwan
shall exceed half of total capitals if the ships of suchcompany are engaged in international voyages.
(3) A joint company, of which all shareholders with

unlimited liabilities are citizens of Taiwan.
(4) A company limited by shares, of which the chairman of
the board and at least half of the directors are the citizensof Taiwan and at least half of the capitals are owned bycitizens of Taiwan. However, in case the ships of suchcompany are engaged in international voyages, its
capitals owned by citizens of Taiwan shall exceed half oftotal capitals, and the number of directors who are
citizens of Taiwan shall exceed half of the total numberof directors.
(5) A legal person, which is organized under the laws of
Taiwan, with main office situated within Taiwan and at
least two-thirds of its members and the statutory
representative of such an entity being the citizens of
Taiwan.
3. Requirements for hiring foreign seafarers are as follows:(1) A Taiwanese ship owner or operator hiring foreignseafarers shall apply to the competent authority for
permission.
(2) For Class A crewman, deck department and engineering
department may each hire one foreign seafarer to takethe position other than captain and chief engineer(3) For Class B crewman, the number of foreigners shallnot exceed two thirds of the total number of Class B
crewman of a ship.
(4) Seafarers shall not be less than 18 years of age.
(5) The employment of foreign seafarers shall be limited to
one year, which may be extended once for another one
year.

8
Sector:Transport services
Sub-Sector:
Road transport services
Industry Classification:
Provisions Concerned: Article 3
Level of Authority:
CentralMeasures:
Article 35 of Highway Law of January 27, 2010
Description:
Foreigners or unincorporated legal entities of Taiwan may notinvest in bus transportation providers, urban bus transportation
providers, tour bus transportation providers and taxicab
transportation providers within Taiwan.

9
Sector:
Sub-Sector:

Transport services
Air transport services
General aviation services (specialty air services): enterprises forcompensation or hire engaging in tourism, survey, photographing,fire-fighting and searching, paramedic, hauling and lifting,spraying and dusting, drone-hauling service, business charter, as
well as those authorized and other than air transport of passengers,
cargo and mail engaged by the civil air transport enterprises
Airport ground handling services
Catering services

Industry Classification:
Provisions Concerned: Article 3
Article 7
Level of Authority:
CentralMeasures:
Article 10, 11, 49, 65 (referring to 49), 74-1, 77 (referring to 74-1)
and 81 of Civil Aviation Act of January 23, 2009
Description:
Only air carriers that are registered as air carriers of Taiwan may
operate aircraft in domestic air service within Taiwan(cabotage)
and may provide international scheduled and non-scheduled airservice as air carriers of Taiwan.
Only aircraft that is registered in Taiwan is allowed to conduct
specialty air services (general aviation) within Taiwan.
Only corporations of Taiwan are allowed to provide airport groundhandling services and catering services in Taiwan. However, if
otherwise provided for under a treaty or other written
arrangement, a foreign air carrier may self-handle its groundservices and catering services in Taiwan.
An air carrier or corporation of Taiwan means:
1. an unlimited company with the entire body of its shareholders
being citizens of Taiwan.
2. a limited company with over 50% of capital owned by citizens
or legal persons of Taiwan and represented by directors who are
citizens of Taiwan.
3. a company formed by shareholders of both limited andunlimited liabilities, whose unlimited liability shareholders are
citizens of Taiwan.
4. a company limited by shares with over 50% of its total shares
owned by citizens or legal persons of Taiwan, whose chairman

and over 50% of the directors are citizens of Taiwan; provided
that no single foreigner may hold more than 25% of its total
shares.
An aircraft that has “the registration of Taiwan” means it is owned
and registered by:
1. citizens of Taiwan.
2. agencies of the authorities of Taiwan.
3. the following legal persons who have a principal office in
Taiwan in accordance with laws of Taiwan:(a) Unlimited company completely owned by citizens of
Taiwan.
(b) Limited company with over 50% of capital owned bycitizens or legal persons of Taiwan and represented bydirectors who are citizens of Taiwan.
(c) Company formed by shareholders of both limited andunlimited liabilities, whose unlimited liability shareholders
are the citizens of Taiwan.
(d) Company limited by shares with over 50% of its total shares
owned by citizens of Taiwan or legal persons of Taiwan,
whose chairman and over 50% of the directors are citizensof Taiwan; provided that no single citizen of a foreigncountry may hold more than 25% of its total shares.
(e) Other legal persons whose representatives are citizens of
Taiwan.
In addition, any foreign aircraft purchased from a foreign country
on conditional terms by citizens and legal persons of Taiwan or
agencies of the authorities of Taiwan pending entitlement ofownership, or any such aircraft leased from a foreign country for aperiod more than six months, may obtain “the registration of
Taiwan ” if its registration in the foreign country has been duly
de-registered, provided the purchaser or lessee is responsible for
operating such aircraft and employing the required personnel andequipment.

10
Sector:Transport services
Sub-Sector:
Airfield management and operation
Industry Classification:
Provisions Concerned: Article 3
Article 7
Level of Authority:
CentralMeasures:
Article 10 and 29 of Civil Aviation Act of January 23, 2009
Description:
The airfield may be established by legal person who has aprincipal office in Taiwan in accordance with laws of Taiwan andcomply with the following rules:
1. Unlimited company with the entire body of its shareholders
being citizens of Taiwan.
2. Limited company with over 50% of capital owned by citizens orlegal persons of Taiwan and represented by directors who are
citizens of Taiwan.
3. Company formed by shareholders of both limited and unlimited
liabilities, whose unlimited liability shareholders are citizens of
Taiwan.
4. Company limited by shares with over 50% of its total shares
owned by citizens or legal persons of Taiwan, whose chairman
and over 50% of the directors are citizens of Taiwan; provided
that no single foreigner may hold more than 25% of its total
shares.
5. Other legal persons whose representatives are citizens of
Taiwan.
The operators and managers of an airfield shall be citizens of
Taiwan.

11
Sector:Transport services
Sub-Sector:
Airport management and operation
Industry Classification:
Provisions Concerned: Article 3
Article 7
Level of Authority:
CentralMeasures:
Article 28 of Civil Aviation Act of January 23, 2009
Description:
In addition to airports owned by the authorities of Taiwan, privatecompanies limited by shares is also allowed to establish andoperate airports, provided that over 50% of its total shares shall beowned by citizens or legal persons of Taiwan, whose chairman
and over 50% of the directors are citizens of Taiwan; and no single
foreigner may hold more than 25% of its total shares.

12
Sector:Communications
Sub-Sector:
Telecommunications Services
Industry Classification:
Provisions Concerned: Article 3
Article 7
Level of Authority:
CentralMeasures:
Article 12 of Telecommunications Act of July 11, 2007
Article 5 of Regulations for Administration on Satellite
Communications Services of June 4, 2010
Description:
The chairman of the Board of a Type I telecommunications
enterprise shall be a citizen of Taiwan.
The total direct shareholding by foreigners may not exceed 49%,
and the sum of direct and indirect shareholding by foreigners may
not exceed 60%.
The percentage of indirect shareholding by foreigners shall becalculated by multiplying the percentage of shareholding by legal
persons of Taiwan in the Type I telecommunications enterprise by
the percentage of shareholding or capital paid by foreigners in thesaid domestic legal persons.
A Type I telecommunications enterprise shall be a company
limited by shares incorporated pursuant to the Company Law.
The total direct shareholding by foreigners in Chunghwa Telecom
Co., Ltd. may not exceed 49%, and the sum of direct and indirect
shareholding by foreigners in Chunghwa Telecom Co., Ltd. may
not exceed 55%, which is subject to change by announcement
promulgated by the authority in charge.
Foreign Mobile Satellite Service (MSS) operators shall be able toprovide service by entering into a cooperation contract with adomestic satellite communication operator or International
Network Business of Fixed Network Telecommunications
Services. The domestic satellite communication operator orInternational Network Business of Fixed Network
Telecommunications Service agent shall represent to promote
MSS within Taiwan.
In accordance with the provision of Paragraph 1, Article 5 ofRegulations for Administration on Satellite Communications
Services, domestic satellite communication operators orInternational Network Business of Fixed Network
Telecommunications Services who promote MSS in Taiwan, onbehalf of foreign MSS operators, shall provide a service contract
with users, and shoulder contract obligations together with foreign
MSS operators.

13
Sector:Communication services
Sub-Sector:
Radio and Television Services
Industry Classification:
Provisions Concerned: Article 3
Article 7
Level of Authority:
CentralMeasures:
Article 5 and 19 of Broadcasting and Television Act of June 14,
2006
Article 19, 20, 21 and 43 of Cable Radio and Television Act ofJanuary 29, 2007
Article 9, 10 and 15 of Satellite Broadcasting Act of December 24,
2003
Description:
1. Foreign investments are subject to the following restrictions:(a) Foreign investment in radio broadcasting and television
stations is prohibited.
(b) Foreign investment in cable radio and television systems
shall be less than the following thresholds:(1) total shares directly held by foreign shareholders: 20%.
(2) total direct and indirect foreign investment: 60%.
(c) Foreign investment in satellite broadcasting business shallbe less than 50% of total shares issued.
2. Domestically produced programs shall not be less than thefollowing thresholds:(a) Terrestrial radio and television: 70%.
(b) Cable radio and television: 20%.
The above-mentioned percentages shall be calculated on thebasis of the total number of hours of program transmission on
the activated channels of a system operator.
3. The chairman and at least two-thirds of the board of directors ofa company operating a cable radio and television system shallbe citizens of Taiwan.
4. The organization of a satellite broadcasting business shall be acompany limited by shares or a foundation.
5. The organization operating a cable radio and/or televisionsystem shall be a company limited by shares.

6. The authorities of Taiwan and political parties, as well as
foundations established with their endowments, and thosecommissioned by them, shall not directly or indirectly invest in
satellite broadcasting businesses, radio broadcasting andtelevision, and cable radio and television systems.
7. The following shall apply to cable radio and television system
operators, their affiliates, and their directly or indirectly
controlled system operators: the number of subscribers shall not
exceed one-third of the total number of subscribers in Taiwan;
the number of system operators shall not exceed one-half of thetotal number of system operators in an administrative district;however, this limitation shall not apply to an administrative
district where there is only one system operator; and the numberof system operators shall not exceed one-third of the total
number of system operators in Taiwan.
8. A foreign satellite broadcasting business that engages in service
operations in Taiwan shall establish a branch office in Taiwan. A
foreign satellite broadcasting business that engages in programsupply operations in Taiwan shall set up a branch office or agent
in Taiwan.

14
Sector:
Health related and social services
Sub-Sector:
Hospital services
Industry Classification:
Provisions Concerned: Article 3
Article 7
Level of Authority:
CentralMeasures:
Article 41-3 of Physicians Act of May 13, 2009
Article 41-3 of Pharmacists Act of January 26, 2011
Article 58-2 of Physical Therapists Act of January 29, 2007
Article 58-1 of Occupational Therapists Act of January 29, 2007
Article 60-1 of Medical Laboratory Technologists Act of January
29, 2007
Article 60-1 of Medical Radiology Technologists Act of January
29, 2007
Article 55 of Dietitians Act of May 5, 2004
Article 55 of Dental Technicians Act of January 23, 2009
Article 17 and 55-3 of Nurses Act of January 29, 2007
Article 59 of Midwives Act of July 2, 2003
Article 57 of Hearing Specialists Act of January 23, 2009
Article 57 of Speech Therapists Act of July 2, 2008
Article 60 of Psychologists Act of November 21, 2011
Article 3, 4, 5, 43 and 50 of Medical Care Act of May 20, 2009
Description:
1. Medical services
Medical services should be provided by persons with medical
licenses issued by the authorities of Taiwan. Only after obtaining
license to practice, foreigners may only be employed in a hospital,
but are not allowed to set up clinics, pharmacy, physical therapy
clinic, occupational therapy clinic, clinical laboratory, medical
radiation clinic, dental laboratory, nursing institution, midwifery
institution, hearing therapy clinic, speech therapy clinic,
psychological therapy clinic, psychological counseling clinic.
2. Hospital services(a) Medical care corporate:
The directors of medical care corporate shall be limited tonine to fifteen persons, in which no less than one-third
shall be licensed physicians or other medical personnel.
No more than one-third of the total number of directors

shall be foreigners. No more than one-third of the total
number of directors shall be blood relatives or relatives bymarriage of three degrees or closer of other directors.
Directors shall personally attend the board of directors
meeting, and shall not authorize an agent to represent
him/her.
(b) Medical care corporation:
The directors of medical care corporations shall be limited
to three to nine persons, in which no less than two-thirds
shall be physicians or other medical personnel.
No more than one-third of the total number of directors
shall be foreigners. Furthermore, foreigners shall not be thechairperson.
Medical care corporations shall establish supervisors, thenumber of which shall not exceed one-third of the numberof directors.
Supervisors shall not serve concurrently as a director or
employee.
Directors shall personally attend the board of directors
meeting, and shall not authorize an agent to represent
him/her.
3. Nursing services
Foreigners and overseas Chinese who pass the nursing personnel
qualification examination and acquire the nursing personnel
certificate can practice the functions of nursing personnel in
Taiwan.
Foreigners and overseas Chinese who pass the nursing personnel
qualification examination and acquire the nursing personnel
certificate and senior nurse qualification can open a nursing
institution in Taiwan.
Private nursing institution subordinate to hospital should beestablished only by medical care corporate or medical care
corporations, and at least two-thirds of the board of directorsshould be the citizens of Taiwan. Foreigners shall not be thechairperson of medical care corporations.

15
Fisheries and Aquaculture
Sector:
Sub-Sector:
Industry Classification:
Provisions Concerned: Article 3
Level of Authority:
CentralMeasures:
Article 5 of the Fisheries Law of January 9, 2008
Description:
Only the citizens of Taiwan may qualify as fishery operators(including those engaging in aquaculture business), hereunderunless a foreign national may obtain the approval from the centralcompetent authority to operate fisheries in cooperation with any
fishery operator of Taiwan.

16
Agriculture, Animal Husbandry, and Forestry
Sector:
Sub-Sector:
Industry Classification:
Provisions Concerned: Article 3
Level of Authority:
CentralMeasures:
Article 7 of the Statute for Investment by Foreign Nationals ofNovember 19,1997
Negative List for Investment by Overseas Chinese and Foreign
Nationals of May 16, 2008
Description:
Foreign investment is not allowed in forestry, wood logging andhunting industries.
Other industries in which foreign investment is conditionallyrestricted are listed below. Applications will be subject to approvalby the Council of Agriculture (COA) of Taiwan, and determinedon a case-by-case basis:
1. Agriculture: cultivation on rice, dry land food crops, special
crops, vegetables, fruits, mushrooms, sugar-cane, flowers andother agricultural and horticultural products;
2. Animal husbandry: raising of cattle, hogs, chickens, ducks andother animal husbandry.

17
Public Welfare Lottery
Sector:
Sub-Sector:
Industry Classification:
Provisions Concerned: Article 3
Article 4
Level of Authority:
CentralMeasures:
Article 4 of Public Welfare Lottery Issue Act of May 28, 2008
Description:
The public welfare lottery shall be issued by a bank appointed by
the competent authority. The term “Bank” shall mean anorganization formed and registered in accordance with theprovisions of the Banking Act of Taiwan (Not including a bankorganized and incorporated in accordance with the laws of aforeign country, which bank has been recognized by theauthorities of Taiwan and registered for business as a branch officewithin Taiwan, in accordance with the Company Law and the
Banking Act).

18
Sector:Recreational, Cultural and Sporting Services
Sub-Sector:
Library, Archive, Museum and other Cultural Services
Industry Classification:
Provisions Concerned: Article 3
Article 7
Level of Authority:
CentralMeasures:
Article 46 of Cultural Heritage Preservation Act of February 5,
2005
Article 10 of Regulation Governing the Excavation Requirementsof Historic Site of December 30, 2005
Description:
Foreigners may not investigate and excavate historical sites within
Taiwan. Provided that with the prior approval by the authorities of
Taiwan, foreigners may cooperate with domestic scientificresearch organizations or professional institutions to conduct suchinvestigation and excavation.
Upon conducting a joint excavation project carried out by
foreigners and domestic scientific research organizations or
professional institutions, the representative of the domestic
counterpart will invariably be the designated chief coordinator of
the project. All original data thereby accumulated, such as theunearthed artifacts, etc., must be well preserved. Carrying ortransporting such data abroad is strictly forbidden. Provided thatwith the prior approval by the authorities of Taiwan, they can be
carried abroad to conduct necessary scientific analyses.

19
Business Services
Sector:
Sub-Sector:
Professional Services
Industry Classification:
Provisions Concerned: Article 3
Level of Authority:
Central and regional
Measures:
Articles 24 and 25 of Notary Law of December 30, 2009
Articles 4 of the Land Administration Agent Act of June 15, 2011
Description:
1. A notary public shall be a citizen of Taiwan.
2. Only citizens of Taiwan, who has obtained the certificate of“Land Administration Agent” can act as a Land Administration
Agent.

20
Recreational, Cultural and Sporting Services
Sector:
Sub-Sector:
Recreational Services
Industry Classification:
Provisions Concerned: Article 3
Level of Authority:
CentralMeasures:
Article 7 of The Statute for Investment by Foreign Nationals ofNovember 19, 1997
Negative List for Investment by Overseas Chinese and Foreign
Nationals of May 16, 2008
Description:
Foreigners are not allowed to invest in entertainment
establishments which offer personalized attention by a host or
hostess of a sexually arousing or seductive nature. Host/hostessservices in Taiwan are offered in certain types of coffee/tea shops,
ballrooms, dance halls wine shops, bars, karaoke rooms, etc.

21
Sector:Financial services
Sub-Sector:
Banking and other financial services
Industry Classification:
Provisions Concerned: Article 3
Article 4
Level of Authority:
CentralMeasures:
Article 2, 3, 5, 14, 19-1, 19-2 and 19-3 of the Regulations
Governing Foreign Bank Branches and Representative Offices ofDecember 11, 2009
Article 4 of Standards Governing the Establishment ofCommercial Banks of February 4, 2010
Article 3 of Offshore Banking Act of June 9, 2010
Article 4 and 7 of the Regulation for the Implementation of
Offshore Banking Act of December 2, 2003
Description:
Foreign bank branches and offshore banking branches:
1. Establishment:
A foreign bank that meets the following criteria may apply forthe approval for the establishment of a branch within Taiwan:
1. The bank is free of any major regulatory violation within thelast five years;
2. The bank is ranked, by capital or assets, among the top five
hundred banks in the world within one year prior toapplication, or has business dealings with the banks and/or
enterprises in Taiwan in an aggregate amount of more than
US$1,000,000,000 in three calendar years prior toapplication, of which no less than US$180,000,000 havebeen in the form of medium or long term credits. Where
there are special provisions in an economic and trade
agreement, or other written arrangement between Taiwan
and the home country of the foreign bank, such special
provisions shall prevail.
2. Working Capital:
A foreign bank that has been approved to establish a branch in
Taiwan shall allocate a minimum operating capital of
NT$250,000,000 if the bank plans to accept deposit of less than
NT$1,500,000 from individuals and will have more than five
hundred such accounts, and the total amount of deposits of lessthan NT$1,500,000 from individuals exceeds 1% of total
amount of New Taiwan Dollar (NTD) deposits accepted by thebank. A foreign bank shall allocate a minimum operating capitalof NT$200,000,000 for its branch if the bank does not plan tooffer retail deposit business or if its retail deposit business will
not reach the thresholds set forth above.
A foreign bank stipulated in Article 3, Items 2 and 3 of the
Offshore Banking Act, after having been allowed to establish an
offshore banking branch, shall allocate working capital for its
operation in Taiwan at a minimum amount of US$2,000,000.
Article 3 of the Offshore Banking Act
The following types of banks may, through their head offices,
apply to the competent authorities for obtaining the approval of
the establishment of an offshore banking branch with a separate
set of accounts to conduct international banking activities:
1. Foreign banks authorized by the CBC to engage in
foreign exchange businesses within Taiwan.
2. Foreign banks authorized to have a representative office in
Taiwan.
3. Reputable foreign banks approved by the competentauthorities.
4. Domestic banks authorized by the CBC to engage in foreignexchange businesses.
3. NTD Credit Extension:
The NTD credit that a foreign bank branch may extend to asame legal person, same concerned party or same affiliatedentity shall be limited to NT$7,000,000,000 respectively or theamount calculated according to the restrictions set forth by thecompetent authority pursuant to Paragraph 1, Article 33-3 of the
Banking Act, whichever is higher. The NTD credit that a foreignbank branch may extend to a same natural person shall belimited to NT$1,500,000,000 respectively or the amountcalculated according to the restrictions set forth by thecompetent authority pursuant to Paragraph 1, Article 33-3 of the
Banking Act, whichever is higher.
The term “net worth” calculated according to the authorization
provisions that apply mutatis mutandis to the branches offoreign banks shall mean the net worth of a foreign bank branchin the previous fiscal year following final settlement ofaccounts.

4. Eligible Assets:
For a foreign bank branch that accepts deposit of less than
NT$1,500,000 from individuals and has more than five hundred
such accounts, and the total amount of deposits of less than
NT$1,500,000 from individuals exceeds 1% of total amount of
NTD deposits accepted by the branch, such branch’s total
holding of eligible assets shall not be less than 40% of the total
amount of NTD deposits accepted by the branch. For a foreignbank branch that does not offer retail deposit business or if its
retail deposit business does not reach the thresholds set forth
above, such bank’s total holding of eligible assets shall not beless than 15% of the total amount of NTD deposits accepted by
the branch.
5. Financial Ratios:
For a foreign bank branch that accepts deposit of less than
NT$1,500,000 from individuals and has more than five hundred
such accounts, and the total amount of deposits of less than
NT$1,500,000 from individuals exceeds 1% of total amount of
NTD deposits accepted by the bank, such branch’s ratio of NTD
deposits to outstanding NTD loans shall not be less than 50%.
For a foreign bank branch that accepts deposit of less than
NT$1,500,000 from individuals and has more than five hundred
such accounts, and the total amount of deposits of less than
NT$1,500,000 from individuals exceeds 1% of total amount of
NTD deposits accepted by the branch, such branch’s
outstanding NTD loans shall not be more than twenty times thebranch’s net worth in the previous fiscal year following final
settlement of accounts. For a foreign bank branch that does notoffer retail deposit business or if its retail deposit business does
not reach the thresholds set forth above, such branch’s
outstanding NTD loans shall not be more than thirty times thebranch’s net worth in the previous fiscal year following final
settlement of accounts.
For a foreign bank branch that accepts deposit of less than
NT$1,500,000 from individuals and has more than five hundred
such accounts, and the total amount of deposits of less than
NT$1,500,000 from individuals exceeds 1% of total amount of
NTD deposits accepted by the branch, such branch’s
outstanding balance of credit extensions other than loans shallnot be more than fifteen times the branch’s net worth in theprevious fiscal year following final settlement of accounts. For aforeign bank branch that does not offer retail deposit business or
if its retail deposit business does not reach the thresholds set
forth above, such branch’s outstanding balance of credit
extensions other than loans shall not be more than twenty times
the branch’s net worth in the previous fiscal year following final
settlement of accounts.
Foreign bank representative offices:
A foreign bank that meets the following criteria may apply toestablish a representative office in Taiwan:
1. The foreign bank is free of any major regulatory violation
within the last three years;
2. The foreign bank is ranked, by capital or assets, among the
top one thousand banks in the world within one year prior toapplication, or has business dealings with the banks andenterprises of Taiwan in an aggregate amount of more than
US$300,000,000 in three calendar years prior to application.
Where there are special provisions in an economic and trade
agreement, or other written arrangement between Taiwan andthe home country of the foreign bank, such special provisions
shall prevail.
Foreign bank subsidiaries:
A foreign financial institution that fulfills the following events,and merges or takes over generally the entire business, andassets and liabilities of a local bank may apply to establish acommercial bank:
1. The foreign financial institution is permitted by the competentauthority for the establishment of a commercial bankaccording to Article 23 of the Financial Holding Company
Act of Taiwan.
2. After the foreign financial institution merges or takes overgenerally the entire business, and assets and liabilities of atroubled financial institution, it shall, pursuant to laws andorders, an agreement(s), or a written arrangement(s) establish
a commercial bank within a certain period of time.
The conditions provided to other WTO members as set out
below are not applicable to this Arrangement:1. Section C, List of the authorities of Taiwan, Annex VI of the
FTA between the Republic of Panama and the authorities of
Taiwan; and2. Section B (the authorities of Taiwan), Specific Commitments,
Annex 12.09.2 of the FTA between the Republic of Nicaragua
and the authorities of Taiwan.

22
Sector:Financial Services
Sub-Sector:
Securities
Industry Classification:
Provisions Concerned: Article 3
Level of Authority:
CentralMeasures:
Article 2, 4, 10,16,17,18, 21,23 of Regulations Governing
Investment in Securities by Overseas Chinese and Foreign
Nationals of March 23, 2006
Article35-1 of GreTai Securities Market Rules Governing
Securities Trading on the GTSM of August 1, 2011
Description:
1. Overseas Chinese and foreign nationals are only allowed toinvest in offshore beneficial interest certificates, domestic
securities, overseas corporate bonds, overseas depositary
receipts, or overseas stocks, and are not allowed to designate(trust relationship is not included) domestic securities
investment consulting enterprises or securities investment
trust enterprises to conduct discretionary investment services.
2.

The investment scope of overseas Chinese and foreign
nationals outside Taiwan shall be limited to those set forth in
Article 4 of the above-mentioned Regulations. Certain
industries limit the percentage of equity holdings by overseas
Chinese or foreign nationals according to other applicableacts or regulations.

3.

Where funds have been transferred to Taiwan for thepurchase of any of the securities listed in Article 4 of theabove-mentioned regulations but the funds have not yet been
invested, the Financial Supervisory Commission (FSC) of theauthorities of Taiwan can limit the use of such funds after
consultation with the competent authority for foreignexchange business. The current limitation is 30% of total
amount of the funds transferred into Taiwan.

4.

An overseas Chinese or foreign national outside Taiwan
invests in securities of Taiwan shall designate a custodianbank, which is approved by the FSC to offer custodialservices, to act as its custodian institution and designate alocal agent to apply for the opening of a New Taiwan Dollar
account. The agent designated to open such account must bea securities firm or financial institution of Taiwan.
5.

Besides, overseas Chinese and foreign nationals invest in
securities of Taiwan shall apply to the Taiwan Stock
Exchange Company (TWSE) for registration.

6.

Overseas Chinese or foreign nationals outside Taiwan
holding shares in a public company shall appoint an local
agent or representative to exercise the voting rights and shallnot deliver proxies to any solicitors of proxies or proxyagents.

7.

An overseas Chinese or foreign national outside Taiwan shallnot engage in securities margin trading, sell securities which
it does not hold, extend loans or provide collateral, or entrust
custody of securities to any legal person or individual otherthan a custodian institution or centralized securities
depository.

8.

The FSC may, when necessary, require an overseas Chineseor foreign national outside Taiwan to submit a list of
beneficiary of the investment capital, the amount of thecapital, its source, and related information.

9.

Overseas Chinese or foreign nationals invest in the OTC
market, if any such securities are subject to investment
holding ratio set by the respective competent authorities forthe relevant industries, they shall be traded through the OTC
central trading systems, instead of negotiating price privately.

23
Sector:Financial Services
Sub-Sector:
Securities firms and securities services enterprises
Industry Classification:
Provisions Concerned: Article 3
Level of Authority:
CentralMeasures:
Article 28, 29 and 33-1 of Standards Governing the Establishment
of Securities Firms of June 16, 2009
Description:
A foreign securities firms establishing a branch office in Taiwan
shall meet the following requirements:
1. The applicant possesses sufficient international securities
business experience and financial health in the business typebeing applied for;2. The applicant has not been sanctioned administratively by its
home country's securities regulatory authorities within the mostrecent two years.
A foreign securities firm applying for the establishment of abranch office within Taiwan should deposit operating capitalwhich shall not be less than specific amount of related regulations.
A foreign securities firm intending to establish a representative
office in Taiwan shall meet the following qualifications:
1. The applicant possesses sufficient experience in international
securities business;
2. The applicant has not been sanctioned suspension of business ormore severe penalty administratively by its home country's
securities regulatory authorities within the most recent year.

24
Sector:Financial Services
Sub-Sector:
FuturesIndustry Classification:
Provisions Concerned: Article 3
Level of Authority:
CentralMeasures:Directions for Futures Trading by Overseas Chinese and Foreign
Nationals of September 21, 2010
Description:
An overseas Chinese or foreign national when engaging in futures
trading shall:
1. Apply to the Taiwan Futures Exchange (TAIFEX) or the Taiwan
Stock Exchange Corporation (TWSE) of Taiwan and submit
relevant documents for registration;
2. Mandate an agent or representative within Taiwan to open an
account, exercise rights, apply for foreign exchange settlement,
file and pay taxes on his or her behalf;
3. Appoint a bank approved by the FSC to provide custodialservices, to act as its custodian institution, to handle mattersrelated to futures trading, such as clearing, settlement andreporting of relevant information;
4. An overseas Chinese or foreign national outside Taiwan thatmakes domestic futures trades shall do so in foreign currencies
approved by TAIFEX of Taiwan, and may not convert the funds
into New Taiwan Dollars; the balance in New Taiwan Dollars
resulting from the cumulative realized New Taiwan Dollar
profits gained from futures trading may not exceed NT$300
million for any individual trader or any individual omnibus
account. If the limit set forth is exceeded, the agent of theoverseas Chinese or foreign national shall appoint a futurescommission merchant within five business days to make aconversion into US dollars. An overseas Chinese or foreign
national outside Taiwan that engages in foreign futures trades
shall do so in a foreign currency and may not convert the funds
into New Taiwan Dollars.

25
Sector:Financial Services
Sub-Sector:
Futures commission merchants and futures services enterprises
Industry Classification:
Provisions Concerned: Article 3
Level of Authority:
CentralMeasures:
Article 19, 20 and 40 of Standards Governing the Establishment of
Futures Commission Merchants of October 2, 2007
Description:
A foreign futures commission merchant establishing a branch
office in Taiwan shall meet the following requirements:
1. Qualified to be a clearing member of a foreign futures exchangethat has been publicly announced by the FSC of Taiwan.
2. The applicant possesses international futures businessexperience in the type of business for which approval is being
requested, and is of sound financial standing.
3. Within the previous year, it has not been punished in its homejurisdiction by the relevant futures regulatory authority, or by aself-regulatory organization.
A foreign futures commission merchant, a foreign securities firm
or a foreign banking institution shall, in accordance with the typeof business approval it is seeking, allocate the specified amountfor operational use by its business office in Taiwan.
The FSC has not allowed foreign futures advisory enterprises,
foreign managed futures enterprises (e.g. CTA in Japan) andforeign futures trust enterprises (e.g., CPO in Japan) or foreign
futures fund management companies to establish a branch in
Taiwan.
The FSC has not allowed foreign futures fund managementcompanies to raise a futures (trust) fund in Taiwan.

26
Financial Srevices
Sector:
Sub-Sector:
Insurance and insurance related services
Industry Classification:
Provisions Concerned: Article 3
Level of Authority:
CentralMeasures:
Article 6, 7 and 27-1 of the Regulations for Establishment andAdministration of Foreign Insurance Enterprises of February 23,
2009
Description: branch
A foreign insurance institution applying for permission toestablish a branch within Taiwan to conduct insurance businessshall at least meet the following criteria:
1. Having had sound business performance and shown financial
soundness in the most recent three years; and2. Free of any record of penalty against it for material regulatory
violation in the last three years as proven by a certificate issued by
the competent authorities in the applicant’s home country. Where
the applicant has been established for less than three years, theapplicant must be free of any record of penalty against it formaterial regulatory violation since its establishment.
Where a foreign insurance institution referred to in subparagraph 1of the preceding paragraph has been established for less than three
years, the institution must have a representative office set up
within Taiwan for at least one year and meet one of the following
criteria:
1. Having a paid-in capital of more than NT$2 billion.
2. Having a credit rating of at least A- from Standard & Poor’s
Corp., at least A3 from Moody’s Investor Service, at least A from
Fitch Ratings Ltd., at least twA+ from Taiwan Ratings
Corporation, or an equivalent rating or better from any other credit
rating agency recognized by the competent authorities.
The head office of a foreign insurance enterprise shall set aside
minimum working capital for each branch in accordance with its
business plan, amounting to not less than NT$50 million, and postbond with the treasury authority in an amount equal to 15 percent
of its working capital.


representative office

A foreign insurance institution applying for permission to set up a
representative office within Taiwan shall at least meet thefollowing criteria:
1. Having a credit rating of at least A- from Standard & Poor’s
Corp., at least A3 from Moody’s Investor Service, at least A from
Fitch Ratings Ltd., at least twA+ from Taiwan Ratings
Corporation, or an equivalent rating or better from any other credit
rating agency recognized by the competent authorities; and2. Free of any record of penalty against it for material regulatory
violation in the most recent three years as proven by a certificate
issued by the competent authorities in the applicant’s homecountry. Where the applicant has been established for less than
three years, the applicant must be free of any record of penalty
against it for material regulatory violation since its establishment.
A foreign insurance institution may set up only one representative
office in Taiwan.

27
Financial Services
Sector:
Sub-Sector:
Insurance Intermediation
Industry Classification:
Provisions Concerned: Article 3
Level of Authority:
CentralMeasures:1. Article 40, 43 and 45 of the Regulations Governing Insurance
Agents of February 25, 2011
2. Article 41, 44 and 46 of the Regulations Governing Insurance
Brokers of February 25, 2011
3.Article 38, 41 and 43 of the Regulations Governing Insurance
Surveyors of February 25, 2011
Description:
1. Where necessary, the competent authorities may approve theestablishment of branch offices within Taiwan by a foreign
insurance agent, broker and surveyor company to operate thesame kind of business operated in its home country.
2. The minimum working capital of a branch office establishedby a foreign insurance agent, broker and surveyor company
within Taiwan shall be NT$3 million and a bond shall be
posted at 15 percent of the working capital, provided, theamount posted may not be less than NT$600,000.
3. A foreign insurance agent, broker and surveyor company
establishing a branch office to operate business within Taiwan
shall employ at least one person holding an agent's practicelicense of the same type to practice the business.
4. A marine insurance surveyor may employ at least one person
who holds a foreign practice license of the same type or acertification document that is recognized by the competentauthority to practice the business.

Annex II
Schedule of the Association of East Asian Relations
Reservations for Measures referred to in paragraph 2 of Article 8

4.

This Schedule sets out with respect to the Association of East Asian Relations,pursuant to paragraph 2 of Article 8, the reservations made by the Association of
East Asian Relations with respect to specific sectors, sub-sectors, or activities forwhich the existing measures may be maintained, or new or more restrictive
measures may be adopted that do not conform with the following provisions of
this Arrangement:(d) Article 3;(e) Article 4; or(f)Article 7.

5.

Each Schedule entry sets out the following elements:(a) “Sector” refers to the general sector for which the entry is made;(b) “Sub-Sector” refers to the specific sector for which the entry is made;(c) “Industry classification” refers, where applicable, and only for transparency
purposes, to the activities covered by the entry according to the relevant industry
classification codes;(d) “Provisions Concerned” specifies the provisions referred to in paragraph 1 forwhich the entry is made;(e) “Description” illustrates the scope of the sector, sub-sector, or activities covered by
the entry; and(f) “Existing Measures” identifies, for transparency purposes, existing measures that
apply to the sector, sub-sector, or activities covered by the entry.

6.

In the interpretation of each entry, all elements of the entry shall be considered. The“Description” element shall prevail over all the other elements.

1

1Social Services
Sector:
Sub-Sector:
Industry Classification:
Provisions Concerned: Article 3
Article 7
Description:
The authorities of Taiwan may adopt or maintain any measurewith respect to the provision of law enforcement and correctional
services, and the following services to the extent they are social
services established or maintained for a public purpose: social
welfare (including but not limited to social relief and assistance,
welfare services, employment for citizens, social securities orinsurances, medical and health care), primary education and lower
secondary education.

22
Sectors related to native populations
Sector:
Sub-Sector:
Industry Classification:
Provisions Concerned: Article 3
Article 7
Description:
The authorities of Taiwan may adopt or maintain any measureaccording rights or preferences to native populations.

33Games of Luck and Chance
Sector:
Sub-Sector:
Industry Classification:
Provisions Concerned: Articles 3
Articles 4
Article 7
Description:
The authorities of Taiwan may adopt or maintain any measure
relating to the operation of games of luck and chance, and ofactivities involving bets.

44
All sectors
Sector:
Sub-Sector:
Industry Classification:
Provisions Concerned: Article 3
Article 7
Description:
The authorities of Taiwan may adopt or maintain any measurewith respect to the rights or preferences granted to minorities withsocial or economical disadvantages.

55
All Sectors
Sector:
Sub-Sector:
Industry Classification:
Provisions Concerned: Article 4
Description:
The authorities of Taiwan may adopt or maintain measure that
accords differential treatment to countries under a treaty or otherwritten arrangement in force prior to the date of entry into force of
this Arrangement.
The authorities of Taiwan may adopt or maintain any measure that
accords differential treatment to countries under a treaty or otherwritten arrangement in force after the date of entry into effect of
this Arrangement, involving:
1. Aviation;
2. Fisheries;
3. Maritime matters, including salvage; or
4. Financial services.

6

6
Postal Services
Sector:
Sub-Sector:
Industry Classification:
Provisions Concerned: Article 3
Measures:
Article 6 of the Postal Act of July 10, 2002
Description:
Business of delivering letters, postcards or other correspondence isreserved to the Chunghwa Post Co., Ltd., which is a company
owned by the authorities of Taiwan. According to the Article 6 of
the Postal Act of Taiwan, apart from Chunghwa Post and others so
entrusted, no others may engage in the business of delivering
letters, postcards or other correspondence.
With the exception of delivery notices connected with shipments,
no forwarding agency may deliver mail as described in thepreceding paragraph.

77
Sector:

The following Private Participation in Infrastructure Projects:
1. transportation facilities and common conduit; 2.environmental
pollution prevention facilities; 3. sewerage, water supply and water
conservancy facilities; 4. sanitation and medical facilities; 5. social
and labor welfare facilities; 6. cultural and education facilities; 7. major
facilities for tour-site; 8. power facilities and public gas and fuel supply
facilities; 9. sport facilities; 10. parks facilities; 11. major industrial,commercial and hi-tech facilities; 12. development of new town; 13.
agricultural facilities.

Sub-Sector:
Industry Classification:
Provisions Concerned: Article 3
Article 4
Article 7

Level of Authority

Central and Regional

Measures

Article 3 of the Act for Promotion of Private Participation in
Infrastructure Projects of October 31, 2001;
Articles 2 to 19-1 of the Enforcement Rules of the Act for Promotion ofPrivate Participation in Infrastructure Projects of June 7, 2010 .

Description:

The authorities of Taiwan may adopt or maintain any measure withrespect to concessions relating to Article 3 of the Act for Promotion ofPrivate Participation in Infrastructure Projects and Articles 2 to 19-1 of
the Enforcement Rules of the Act for Promotion of Private Participationin Infrastructure Projects, as well as any renewals of re-negotiations orexisting concessions relating thereto.

8