Foreign Trade Act

Promulgated on February 5,1993
Amended on May 7,1997
Amended and promulgated on December 15, 1999, adding Article 27-1 and 27-2, repealing Article 34, and revising Article 2, name of Chapter 2, Article 13, 15 through 17, 21, 23, and 27 through 32
Amended and promulgated on June 12, 2002, adding Article 9-1, 15-1, 20-2, 21-1 and 21-2 and revising Article 9, 16, 18, 20 and 28 through 30
Amended and promulgated on January 10, 2007, revising Article 3, 6, 10, 20-2

Chapter 1
General Principles

Article 1
This Act is enacted for the purposes of expanding foreign trade and maintaining a sound trade order so as to enhance the economic benefits of this country in the spirit of liberalization and internationalization and on the principles of fairness and reciprocity. For matters not provided herein, other applicable laws shall govern.¡@

Article 2
The term ¡§foreign trade¡¨ referred to in this Law means the act of exporting/importing goods and related matters.¡@
The term ¡§goods¡¨ referred to in the preceding Paragraph includes the following rights attached thereto: exclusive rights for use of trademarks, patent rights, copyrights, and any other intellectual property rights protected by the laws enacted.¡@

Article 3
The term ¡§exporter/importer ¡¨as used herein shall mean a firm registered in accordance with this Act to engage in export/import trade or a firm though not engaging in export/import trade as its regular but exporting or importing specific goods.

Article 4
The competent authority referred to in this Act shall be the Ministry of Economic Affairs (MOEA).
Any matter provided herein involving the competence of other ministries, commissions or government authorities shall be handled by the competent authority in consultation with the authorities concerned.

Article 5
For the purpose of safeguarding national security, the competent authority may, in conjunction with the appropriate government authority or authorities, propose to the Executive Yuan for an approval to the ban and control of trading activities with specific countries or territories provided that such prohibition or control shall be submitted to the Legislative Yuan within one ¡]1¡^month from the date of publication thereof for its ratification.

Article 6
Under any of the following circumstances, the competent authority may temporarily suspend import from or export to specific countries or territories or import/export of specific goods or take any other necessary measures:

1. when any natural disaster, incident, or war occurs;
2. when national security is endangered or protection of public safety is hindered;
3. when the domestic or international market suffers a serious shortage of a specific material or the price thereof drastically fluctuates;
4. when serious imbalance is caused or threatened in international payments;
5. when any international treaty, agreement, the united Nation Resolution or international cooperation calls for it; and
6. when a foreign country impedes import/export with measures violating international agreements or principles of fairness and reciprocity.

Application of subparagraphs 1 through 4 or subparagraph 6 of the preceding paragraph shall be limited only to circumstances when there is an adverse impact or a threat thereof upon the normal development of the economy and trade of this country.
Before suspending import/export or taking any other necessary measures pursuant to subparagraph 4 or 6 of paragraph 1 above, the competent authority shall try to settle trade disputes through consultation or negotiation.
Suspension of import/export enforced or other necessary measures taken by the competent authority shall be lifted when causes therefor cease to exist.
The ratification requirement provided for in the preceding Article shall also be applicable for the purpose of this Article.

Article 7
The competent authority or another government agency designated by the Executive Yuan may negotiate and enter into pacts and/or agreements with foreign countries in respect of external trade affairs and shall consult and coordinate with other government agencies first if such other government agencies are involved in matters to be negotiated.
A private organization or body authorized by the competent authority may negotiate and enter into agreements with foreign countries on behalf of the government in respect of external trade affairs and shall report the matters contemplated in the agreements to the competent authority for approval.
Pacts of agreements concluded as a result of foreign trade negotiations, unless within the scope of the administrative discretion power of the signing authority or organization, shall be submitted to the Executive Yuan for forwarding to the Legislative Yuan for discussion and decision.
A pact or an agreement with contents involving amendment of any existing law or enactment of a new law shall become effective only after completion of legislative procedures.

Article 8
Before negotiating and concluding any pact or agreement with a foreign country in respect of economic and trading affairs, the competent authority or a government agency designated by the Executive Yuan may, if necessary and in conjunction with the Legislative Yuan and the appropriate ministries, commissions or government agencies, hold public hearings or solicit opinions from experts, scholars, and enterprises concerned.

Chapter 2
Regulation of Trade and Import Relief

Article 9
A corporation or business firm registered with the Bureau of Foreign Trade¡]BOFT¡^as an exporter/importer may engage in export/import business.
A corporation or business firm intended to apply for registration as an exporter/importer shall first apply to the BOFT for approval of its proposed English name. Such proposed English name, upon approval, will be reserved for a period of six (6) months.
An exporter/importer, whose registration being nullified or abolished by the BOFT, shall not reregister within two years starting from the date of nullity or abolishment.
For an exporter/importer closed, dissolved or whose registration being nullified or abolished by the relevant competent authority under relevant law, BOFT may cancel its registration.
Regulation governing registration of exporter/importer shall be prescribed by the MOEA.

Article 9-1
The exporter/importer whose export/import performance in the preceding year has reached a certain prescribed amount may be awarded. Regulation of the award matter shall be prescribed by the competent authority.

Article 10
Any juristic person, organization, or individual not operating export/import as its (his/her) regular business, may export/import specific goods in accordance with the regulations stipulated by the BOFT.

The established objectives of these legal entities and organizations, which are necessary for handling import/export commodities, must comply with the abovementioned Regulation #9 concerning registration management, and said compliance falls under the fixed methods stipulated in Item #5 of Regulation #9.

Article 11
Export/import of goods shall be liberalized provided, however, that restriction thereof may be imposed by reason of the requirements of international treaty, trade agreement, national defense, social security, culture, hygiene, and environmental/ecologic protection, or policy.
Nomenclatures of goods subject to export/import restriction under the preceding paragraph and regulations governing export/import of such goods shall be announced in public by the competent authority after consulting with government agencies concerned.

Article 12
Export/import of goods by military organizations shall be effected in accordance with regulations separately enacted by the Ministry of Economic Affairs in conjunction with the Ministry of National Defense and shall be included in the export/import statistics.

Article 13
To ensure national security, perform international cooperation and agreements, enhance regulation of exportation/importation and flow of strategic hi-tech goods, so as to facilitate the need of introducing hi-tech goods, the exportation/importation of such goods shall comply with the following provisions:¡@

1. No exportation is allowed without authorization;
2. Where import permits are granted, no change of the importer or transfer to any third country or region is allowed without authorization; and
3. Intended use shall be truthfully declared, no change is allowed without authorization.

Specific strategic hi-tech goods transported to the restricted regions may not transit, transfer or become stored in bonded warehouses via any commercial port of this country without permission.
For the types of goods and the regions restricted as referred to in the two preceding Paragraphs, the competent authority shall give a public notice after consulting with other government agencies concerned.
The requirements and procedures for permission application, the regulations governing exportation/importation, transit, transfer or storage in bonded warehouses, the declaration, changes and restriction of the export/import use, and any other matters required for compliance as referred to in Paragraphs 1 and 2 of this Article shall be prescribed by the competent authority after consulting with other government agencies concerned.

Article 14
The BOFT may entrust the following matters to financial institutions, business associations, or juristic persons:

1. Issuance of goods export/import permits;
2. Administration of export/import quotas of goods;
3. Other matters relating to examination and registration of export/import of goods.

Any financial institution, business association, or juristic person administering the matters entrusted to it as set forth in the preceding Paragraph shall subject itself to the supervision of the BOFT and, if necessary, shall be obliged to go to the Legislative Yuan to respond to interpellations. Performance of duties relating to the entrusted matters by its personnel shall be deemed as discharge of official duties, and the personnel concerned shall take responsibilities for their acts respectively.

Article 15
To export/import the goods of which exports/imports are restricted by this Law or to export/import specific goods in accordance with Article 10, if export/import permits could be granted, the exporters/importers shall proceed as prescribed in the export/import permits.
Regulations governing the issuance, amendments and effective period of export/import permits, labeling of origin, trademark declaration and all other export/import related matters required for compliance shall be prescribed by the competent authority.

Article 15-1
To proceed export/import, the exporter/importer may apply or address export/import documents through computers or electronic data transmission among customs, the BOFT or institutions entrusted by the BOFT relating to the visa issuing matter.

Article 16
For the purposes of facilitating trade negotiations or performing pacts and/or agreements, the BOFT may prescribe quotas either free or required premium for the quantities of export/import goods or other related measures.
The measures of quotas as referred to in the preceding Paragraph shall be prescribed pursuant to the requirements, pacts, agreements of international trade/economic organizations, the commitments derived from trade negotiations, or as provided for by laws and regulations, whichever applicable; otherwise, the quotas shall be for public auction.
The quotas required premium mentioned in Paragraph 1 refer to these announced through public notices by the BOFT after consulting authorities concerned, and allocated through tendering procedures or distributed by charging a certain amount of administrative fees.
Upon export/import which is subject to quotas, the exporter/importer may not engage in any of the following conducts:

1. Forging or altering quota-related documents, or using forged or altered documents;
2. Illegal transfer of exports/imports or circumvention from inspection;
3. Improper use of the quotas and therefore causing the disruption of trade order or breach of pacts/agreements with other countries;
4. Evading quota regulations;
5. Failure to comply with offshore processing as certified;
6. Untruthful declaration for the utilization of quotas;
7. Other improper acts obstructing quota regulations. or

Export/import quotas may not be pledged or subject to compulsory execution of judgments. Quotas allocated without charge may not be assigned to others unless otherwise prescribed under the laws and regulations governing specific goods.
The allocation methods, procedures, quantities, effective periods of export/import quotas, obligations of the exporter/importer granted with quotas and the regulations governing quota disposal of such export/importer shall be prescribed by the competent authority in accordance with the regulatory need of each type of goods respectively.

Article 17
An exporter/importer shall not:

1. Infringe any intellectual property rights protected by laws of this country or other countries.
2. Fail to or untruthfully label the source identification or the country of origin as required.
3. Fail to or untruthfully declare trademarks.
4. Use false export/import permits or relevant trade permits/certificates.
5. Fail to perform business contracts honestly or in good faith.
6. Disturb trade order with undue means.
7. Commit any other act damaging the goodwill of this country or creating trade barriers.

Article 18
Where the increase in the import volume of a good causing or threatening to cause serious injury to the domestic industry which produces like or directly competitive products, the authority in charge of the said industry, the said industry, its associations, or related organizations may apply to the competent authority for investigation of the injury and for import relief.
For investigating injuries to domestic industries, the MOEA shall co-ordinate with the International Trade Commission. The organization rules of the Commission shall be separately stipulated by the MOEA.
Regulations governing the process of applications for import relief filed under paragraph 1 of this Article shall be drafted by the MOEA in conjunction with government agencies concerned and submitted to the Executive Yuan for approval and subsequent promulgation. Regulations governing the process of applications for import relief on textiles and clothing products which are specifically designated and published by the competent authority pursuant to WTO Agreement on Textiles and Clothing shall be separately stipulated by the MOEA and submitted to the Executive Yuan for approval and subsequent promulgation.
In cases where relief measures have been implemented, the competent authority shall not impose relief measures for the same products within two years after the expiration of the original period of implementation. However, where the relief measures have been implemented for a period exceeding 2 years, the competent authority may not impose such measures for the same products for an equivalent period.
Under any of the following circumstances, the competent authority may apply again, if necessary, the import relief measure to the import of the same product with a duration of 180 days or less, without being restrained by the preceding paragraph of this Article:

1. The duration of the original relief measure is 180 days or less;
2. At least one year has elapsed since the date of introduction of the original relief measure;
3. Such import relief measure has not been applied on the same product more than twice in the five-year period immediately preceding the date of introduction of the measure.

Within one year from the determination by the competent authority in the import relief cases relating to textiles and clothing or other products, according to paragraph 3 or the preceding paragraph of this Article, that the injury to the industry is not established or that no relief measure is to be applied, the competent authority shall not accept any application for the same case again; provided, however, those with justifiable reasons are not subject to this limitation.

Article 19
In the event that a foreign country exports any goods to this country by way of subsidizing or dumping thereby causing or threatening to cause substantial injury to domestically produced products competing with the said goods or creating substantial hindrance to the establishment of the domestic industry concerned, and the injury has been verified after investigation by the MOEA, the Ministry of Finance may impose, by law, countervailing or anti-dumping duties.

Article 20
The competent authority shall be responsible for supervision over and assistance to the operation activities of export/import trade related associations. Regulation governing such supervision and assistance shall be prescribed by the MOEA in conjunction with the Ministry of the Interior.
For the purpose of expanding trade, the competent authority may subsidize a juristic person other than a corporation or business firm and organization to promote the trade. Regulation governing the qualification, application procedure, subsidy standard, methods of evaluation and other matters required for compliance shall be prescribed by the competent authority.

Article 20-1
Companies that are mandated by foreign governments to carry out preshipment inspection in the ROC shall have their inspection activities supervised by the competent authority.
Decisions of the WTO Preshipment Inspection Agreement dispute settlement panel shall be binding on the preshipment inspection company and the exporter concerned.
Regulations governing preshipment supervision shall be made by the Ministry of Economic Affairs.

Article 20-2
The BOFT may issue the certificate of origin and collect fees as needed for the goods of the exporter. The BOFT may entrust other institutions, foundations, industrial organizations, business organizations or farmers¡¦ associations, fishermen¡¦ associations, provincial agricultural cooperatives, agricultural products marketing associations with the preceding matter. But in order to perform the international treaty, agreement, and other international organization regulations, or base on specific certificate of origin required by foreign governments and announced through public notices by the BOFT, the certificate herein shall not be issued unless being entrusted by the BOFT.

The following acts are not allowed while issuing the certificate of origin:

1. Issuing the certificate of origin not according to the form, procedure or the amount of fee.
2. Issuing the specific certificate of origin of the Proviso in Paragraph 2 without being entrusted.
3. Not keeping the documents according to the regulations.
4. Divulging the business secrets of an exporter.
5. Other conduct damaging the goodwill of this country or disturbing the trade order.

The form of the certificate of origin, the approval standard of the origin, terms to entrust or to terminate entrusting, documents to be attached to be application, issuing procedure, amount of fee, period of limitation in document keeping and other matters required for compliance shall be prescribed by the competent authority.

Chapter 3
Trade Promotion and Assistance

Article 21
In order to expand foreign trade, cope with the situations of foreign trade, and support trade activities, the competent authority may establish a trade promotion fund by collecting uniformly, through customs, a trade promotion service fee against the goods exported/imported by exporters/importers at a rate not more than 0.0425% of the price of the goods exported/imported, provided that the collection may be exempt for international treaties, pacts/agreements, practices or any other specific reasons.
The actual rates of the trade promotion fee to be collected and the coverage of items to be exempt shall be proposed by the competent authority and submitted to the Executive Yuan for approval.
For utilization of the fund set forth in Paragraph 1 of this Article, a trade promotion fund management committee shall be established, and no less than one fourth (1/4) of the members of the said committee shall be representatives of exporters and importers.
The regulations governing the revenue/expenditure, custody, and utilization of the trade promotion fund shall be prescribed by the Executive Yuan.

Article 21-1
Collection of trade promotion service fees under Paragraph 1 of the preceding Article shall be made under the following basis:

1. Fees for exported goods shall be based on the FOB prices thereof.
2. Fees for imported goods shall be based on the dutiable value thereof.

In case the dutiable value of imported goods is estimated on the basis of costs for repair, assembly, process, lease, or use, the estimated value shall be the dutiable value, which shall in turn be the basis for the fee.

Article 21-2
In the following situations concerning exported/imported goods, an application may be filed with customs for refund of paid or overpaid trade promotion service fee:
1. The export/import goods are rejected for export or import during customs clearance procedures.
2. The fee was overpaid due to misprinting, miscalculation, or false chargs.
3. The exporter having its goods being released by customs is allowed to modify export prices in accordance with laws.
If the refundable amount is less than NT$100, no refund shall be made.

Article 22
The competent authority shall assist exporters/importers in eliminating unfair trade barriers they may face in foreign markets through initiative consultations or negotiations with foreign countries.

Article 23
In response to the needs of trade promotion, the Executive Yuan may designate government agencies concerned to carry out special programs for export insurance, export/import financing, development of shipping business and other facilitating measures.

Article 24
To meet administrative needs, the BOFT may request exporters/importers to provide documents or information relating to their business operations and, if necessary, may conduct inspections thereof; no exporter/importer shall refuse such a request for inspection. However, when making any such inspection, the inspector shall produce the papers certifying his authority for performing official duties, otherwise the person to be inspected may refuse such inspection.

Article 25
A person who, in the course of performing duties, becomes aware or has possession of any trade documents or information of others, of which divulgence is sufficient to prejudice the business interests of others, shall keep the same as confidential information, unless using them for official purposes.

Article 26
An exporter/importer shall, in compliance with the principles of honesty and good-faith, actively resolve foreign trade disputes through arbitration, conciliation, or settlement procedures.
The competent authority shall actively promote the establishment of an arbitration system for settling international trade disputes.

Chapter 4
Penal Provisions

Article 27
For exportation/importation of strategic hi-tech goods under any of the following circumstances, it shall be punishable with imprisonment for not more than two (2) years, detention or in lieu thereof or in addition thereto a fine of not more than NT$300,000:

1. Where such goods are transported to restricted regions without permission;
2. Where after import permits are granted, such goods are transferred to restricted regions without permission prior to being imported;
3. Where after being imported, the use of such goods imports are changed without permission from the originally declared to the production or development of military weapons, such as nuclear or biochemical arms, or ballistic missiles.

Where the responsible person of a juristic person, the agent, employee or any other staff member of a juristic person or natural person, commits any of the crimes provided for in the preceding Paragraph in its course of business, not only the actor shall be punished as prescribed, the juristic person or natural person shall also be punished with the fine prescribed in the preceding Paragraph.

Article 27-1
For any of the circumstances prescribed in each subparagraph of Paragraph 1 of the preceding article, the BOFT shall suspend the liable party from exporting, importing or exporting/importing goods for not less than one (1) month but not more than one (1) year, or revoke the liable party's exporter/importer registration.

Article 27-2
For exportation/importation of strategic hi-tech goods under any of the following circumstances, the BOFT may impose an administrative fine of not less than NT$30,000 but not more than NT$300,000, or suspend the liable party from exporting, importing, or exporting/importing goods for not less than one (1) month but not more than one (1) year, or revoke the liable party's exporter/importer registration:

1. Where such goods are transported to any region other than the restricted regions without permission;
2. Where after import permits are granted, the importers are changed without permission, or the said goods are transferred to any third country or region other than the restricted regions without permission;
3. Where after being imported, the use of such goods imports are changed without permission from the originally declared to the use other than production or development of military weapons, such as nuclear or biochemical arms, or ballistic missiles.

For specific strategic hi-tech goods in breach of the provision of Paragraph 2 of Article 13, the Customs may attach such goods for return shipment or confiscation where appropriate as determined by the competent authority after consulting with other government agencies concerned.

Article 28
Shall an exporter/importer have any of the following violations, the BOFT may issue a warning or impose an administrative fine of not less than NT$30,000 but not more than NT$300,000 against such exporter/importer, or suspend it from exporting, importing or exporting/importing goods for not less than one month but not more than one year:

1. Violating the provisions of Article 5 by trading with the country or territory to which the trade is prohibited or under control;
2. Violating the temporary suspension of export/import goods or any other necessary measures as prescribed in Paragraph 1 of Article 6;
3. Violating the regulations governing the goods subject to export/import restriction as referred to in Paragraph 2 of Article 11;
4. Violating the provisions of Paragraph 1 of Article 15 for failure to proceed with export/import as prescribed in the export/import permits;
5. Committing any of the prohibited acts as itemized in Article 17;
6. Violating the provisions of Article 24 for refusing to provide documents or information, or to accept inspection;
7. Violating the provisions of Article 25 by prejudicing the business interests of others.

For any of the violations as prescribed in subparagraphs 1 through 5 of the preceding Paragraph, in addition to the punishment provided for in the preceding Paragraph, the BOFT may revoke the exporter/importer registration of the liable exporter/importer.
If the industrial organization or the business organization as referied to in Paragraph 2 of Article 20-2 violates the regulation in Paragraph 3 of the same Article, the BOFT may either issue a warning or impose an administrative fine of not less than NT$30,000 but not more than NT$300,000 to the organization herein. Under serious violation, the BOFT may suspend the organization from issuing certificates of origin for not less than one (1) month but more than one year.

Article 29
Should an exporter/importer have any of the violations as prescribed in subparagraphs 1 through 4 of Paragraph 4 of Article 16, the BOFT may impose an administrative fine of not less than NT$60,000 but not more than NT$300,000, retrieve the allocated quota, or suspend export, import or export/import of such goods for not less than three (3) months but not more than six (6) months, and in addition, may cancel the record of achievement, suspend the eligibility for quota application, or revoke the exporter/importer registration of such exporter/importer, wherever appropriate taking into account the seriousness of the violation.
Should an exporter/importer have any of the violations as prescribed in subparagraphs 5 through 7 of Paragraph 4 of Article 16, the BOFT may issue a warning or impose an administrative fine of not less than NT$30,000 and not more than NT$150,000, retrieve the quota allocated, or suspend exports, imports or exports/imports of such goods for not less than one (1) month but not more than three (3) months, and in addition, may cancel the record of achievement, and suspend the eligibility for quota application of such exporter/importer.
To prevent an exporter/importer suspected of violation circumventing punishment, during the investigation of violation, the BOFT may provisionally suspend the assignment or freeze the utilization of quota allocated either in whole or in part to such exporter/importer.

Article 30
Should an exporter/importer have any of the following violations, the BOFT may suspend the exporter/importer concerned from exporting/importing goods; provided that the suspension shall cease as soon as the cause is extinguished:

1. The goods exported/imported are counterfeits or infringe upon the intellectual property rights protected by this country or any other country, the fact of which is supported by concrete evidence;
2. Failure to pay trade promotion fees as required in Paragraph 1 of Article 21.
3. Cease of business or movement to unknown location.

The period of suspension from exporting/importing goods due to the situation prescribed in subparagraph 1 of the preceding Paragraph may not exceed one (1) year.

Article 31
For an exporter/importer who is suspended from exporting/importing goods pursuant to the provisions of Article 27-1, Paragraph 1 of Article 27-2, or Articles 28 through 30, if such exporter/importer has any transaction established before the punishment, and the transaction is confirmed true by the BOFT, the exportation/importation of goods contemplated in the said transaction may still be effected.

Article 32
A person punished with the provisions of Article 27-1, Paragraph 1 of Article 27-2, or Articles 28 through 30 may file with the BOFT an objection and request for re-examination. The BOFT shall make its decision within twenty (20) days from the day following the date of receipt of such written objection. The regulations governing the objection procedures shall be prescribed by the MOEA.
In case of disagreement with the results of re-examination in respect of any objection referred to in the preceding Paragraph, the objector may file an administrative appeal and bring the case to an administrative court in accordance with the law.

Article 33
A fine imposed hereunder shall be paid within the timelimit set in a notice, otherwise the case shall be referred to a court for compulsory execution.

Chapter 5
Supplementary Provisions

Article 34¡]repealed¡^

Article 35
Where more than half of the annual operating expense of a business association or a juristic person is subsidized by the trade promotion fund, matters relating to its personnel management and expenditures shall be subject to the guidance and supervision of the MOEA. In addition, the said association or juristic person shall be obligated to be present at the Legislative Yuan to respond to interpellation, when necessary.

Article 36
Enforcement rules of this Act shall be drafted by the MOEA and submitted to the Executive Yuan for approval and subsequent promulgation.

Article 37
This Act shall be implemented from the date of its promulgation. However, collection of the trade promotion service free as provided in Article 21 shall begin from July 1, 1993.