Application to the Fair Trade Commission for a special approval for joint purchasing and shipping of wheat by two groups, Lien He and 41other flour milling companies, and Chia Hsin and four other companies

Chinese Taipei

Case:

Application to the Fair Trade Commission for a special approval for joint purchasing and shipping of wheat by two groups, Lien He and 41other flour milling companies, and Chia Hsin and four other companies

Key Words:

Wheat; joint purchasing; joint shipping

Reference:

Fair Trade Commission Decision of Sept ember 28, 2000 (the 464th Commissioners' Meeting); Decisions (89) Kung Chieh Tzu No. 004, 005

Industry:

Flour milling (1152)

Relevant Laws:

Article 14 of the Fair Trade Law

Summary:

1. In this case, Lien He and 28 other flour producers along with the Wei Ch'uan Foods Corporation and 13 other sauce producers, totaling 41 companies, and the Chia Hsin Company along with four other flour producers, filed two separate applications for a special approval for concerted action in joint purchase and joint shipping of wheat. The above firms applied for the approval on the basis of the exceptional condition in Article 14(5) of the Fair Trade Law regarding "joint action in regards to the import of foreign goods." In reviewing such an approval, the factors that the Commissi on considers include its impact on the overall economy and public interest : (1) the degree to which import costs will be reduced; (2) the degree to which the development of the domestic industry will be influenced; (3) the degree to which production costs will be reduced; and (4) whether there is any threat of injury to the interests of ordinary consumers or other related enterprises.

2. A comparison conducted by the Fair Trade Commission of an individual purchase for imports and a joint purchasing for imports has shown that joint purchasing and shipping would lower foreign exchange losses, reduce shipping costs, and help avoid container capacity shortages, capital tie-up and interest burdens. At the same time, it was consistent with agricultural and trade policies. As a result, the approval was considered necessary since the applications met the conditions of Article 14(5) regarding "joint action in regards to the import of foreign goods" and was beneficial to the overall economy and publi c interest.

Appendix:

Lien Hua Industries Company, Ltd.'sUniform Invoice Number: 11996904

Taiwan Sheng Agricultural Industries Company, Ltd.'s Uniform Invoice Number: 36507170

Ch'iao Tai Hsing Industries Company, Ltd.'s Uniform Invoice Number: 24085909

Kuo Feng Industries Company, Ltd.'s Uniform Invoice Number: 33280208

Hsing Sheng Ch'an Ye Company, Ltd.'s Uniform Invoice Number: 43350006

T'ai Yi Flour Company, Ltd.'s Uniform Invoice Number: 43252602

T'i Yi Flour Company, Ltd.'s Uniform Invoice Number: 43276636

Hsieh Fa Ch'an Ye Company, Ltd.'s Uniform Invoice Number: 44654007

Hsin Chu Flour Company, Ltd.'s Uniform Invoice Number: 47040572

Hsin Chen Hsing Flour Company, Ltd.'s Uniform Invoice Number: 47111386

Ta Fung Flour Company, Ltd.'s Uniform Invoice Number: 51073906

T'an Yang Ch'an Ye Company, Ltd.'s Uniform Invoice Number: 55370408

Tung Yang Business Company, Ltd.'s Uniform Invoice Number : 51401008

Fu Mao Yu Chih Company, Ltd.'s Uniform Invoice Number: 22102298

Kuo Hsing Flour Company, Ltd.'s Uniform Invoice Number: 57145006

Hung Hsing Flour Company, Ltd.'s Uniform Invoice Number: 22822640

T'ai He Milling Company, Ltd.'s Uniform Invoice Number: 56210400

Ta Chia Milling Company, Ltd.'s Uniform Invoice Number: 56009003

Ch'ia Fa Enterprise Company, Ltd.'s Uniform Invoice Number: 56186014

Chin T'ai Milling Company, Ltd.'s Uniform Invoice Number: 56144401

Tung Ya Flour Company, Ltd.'s Uniform Invoice Number: 58229209

Tseng Ch'uan Fung Ch'an Ye Company, Ltd.'s Uniform Invoice Number: 59042499

Shun Fa Milling Company, Ltd.'s Uniform Invoice Number: 58497909

Tung Jung Flour Company, Ltd.'s Uniform Invoice Number: 59607524

Tung Sheng Agricultural Industries Company, Ltd.'s Uniform Invoice Number: 66290655

Hsin Fung Flour Company, Ltd.'s Uniform Invoice Number: 72179790

Uni-President Enterprises Corp.'s Uniform Invoice Number: 73251209

Yung Kuang Milling Company, Ltd.'s Uniform Invoice Number: 79085609

Wei Ch'uan Foods Coporation's Uniform Invoice Number: 11347802

Ve Wong Corporation's Uniform Invoice Number: 07067309

T'ung Wan Company, Ltd.'s Uniform Invoice Number: 23527408

Chin Lan Foods Company, Ltd.'s Uniform Invoice Number: 43008609

Wan Chia Hsiang Jiang Yuan Company, Ltd.'s Uniform Invoice Number:35426782

Wei T'ai Foods Company, Ltd.'s Uniform Invoice Number: 35187282

Chiu Chuang Foods Company, Ltd.'s Uniform Invoice Number: 64860217

Yuan Chen Food Processing's Uniform Invoice Number: 46505405

Chuang Yuan Soy Sauce Company, Ltd.'s Uniform Invoice Number: 22238160

Hsin Fu Ch'eng Foods Company, Ltd.'s Uniform Invoice Number: 23868622

Kao Ch'ing Ch'uan Company, Ltd.'s Uniform Invoice Number: 23004247

Yi Hsiang Foods Company, Ltd.'s Uniform Invoice Number: 86632928

Ta Ch'uan Soy Sauce Company, Ltd.'s Uniform Invoice Number: 43004168

Chia Hsin Shih P'in Hua Ch'ian Company, Ltd.'s Uniform Invoice Number: 11892605

Chia He Flour Company, Ltd.'s Uniform Invoice Number: 44861408

Fung Sheng Enterprise Company, Ltd.'s Uniform Invoice Number: 69261633

Huan Ch'iu Flour Company, Ltd.'s Uniform Invoice Number: 16335381

Summarized by Hou Vn-hsien;

Supervised by We Te-sheng

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