RESTRICTED

GENERAL AGREEMENT Spec(94)37/Rev.2*

14 December 1994

ON TARIFFS AND TRADE

(94-2781)

Original: English

 

 

 

ACCESSION OF THE SEPARATE CUSTOMS TERRITORY

OF TAIWAN, PENGHU, KINMEN AND MATSU

Initial Commitments on Trade in Services

Revision

The following revised draft schedule of initial commitments and MFN exemptions list on trade in services dated 7 November 1994 was submitted for circulation to the members of the Working Party.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

_____________________

*English only/anglais seulement/inglés solamente

 

 

 

 

DRAFT SCHEDULE OF THE SEPARATE CUSTOMS TERRITORY

OF TAIWAN, PENGHU, KINMEN AND MATSU CONCERNING

INITIAL COMMITMENTS ON TRADE IN SERVICES

(7 November 1994 draft)

 

 

Notes:

(i) The classification of sectors is based on the 1991 provisional Central Product Classification (CPC) of the United Nations Statistical Office, while the ordering reflects the Services Sectoral Classification List (MTN.GNS/W/120 of 10 July 1991). The appearance of ** against individual CPC listings indicates that the service specified constitutes only a part of the total range of activities covered by the CPC concordance.

(ii) The entry "Unbound*" means unbound due to lack of technical feasibility.

DRAFT SCHEDULE OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU

CONCERNING INITIAL COMMITMENTS ON TRADE IN SERVICES

(7 November 1994 draft)

Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

Sector or subsector

Limitations on market access

Limitations on national treatment

Additional commitments

I. HORIZONTAL COMMITMENTS

All Sectors (except as indicated otherwise in specific sectors)

Investment

(3)

(a) Foreign business and individuals may invest in Chinese Taipei according to the "Statute for Investment by Foreign Nationals".

(b) Director purchase of stocks in Chinese Taipei's security market is restricted to foreign institutional investors, and is subject to the following limitations:

   

 

THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued)

Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

Sector or subsector

Limitations on market access

Limitations on national treatment

Additional commitments

 

i. any foreign institutional investor may hold up to 5% of the total issued stocks of a listed company; and

   
 

ii. the foreign institutional investors together may hold up to 10% of the total issued stocks of that company.

   

 

 

 

 

 

 

 

 

 

Acquiring the Rights and Interests in Lands

(3)

(a) Land in agriculture, forestry, fishing, pasture, hunting, salt production, mines may not be transferred, encumbered or leased to foreigners. However, foreign investors may acquire, transfer, pledge, and lease mining rights under the "Statute for Investment by Foreign Nationals" with a special approval of the Executive Yuan.

 
   

(b) Foreigners may lease or purchase land for offices, residences, shops and factories, churches, schools of the expatriates, chancellery, facilities of non-profit organizations and graveyard.

 

 

 

 

THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued)

Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

Sector or subsector

Limitations on market access

Limitations on national treatment

Additional commitments

 

Entry and Temporary Stay of Natural Persons

(4) Unbound, except for measures concerning the entry and temporary stay of natural persons in the following categories:

(a) Business visitors may enter and stay for an initial period of no more than 60 days.

Business visitor being a natural person who stays in Chinese Taipei without acquiring remuneration from within Chinese Taipei and is not engaged in making direct sale to the general public, for the purpose of participating in business meetings, business negotiations, the preparation for establishing a commercial presence or other similar activities.

 

 

(4) Unbound except for measures concerning the categories of natural persons referred to in the market access column.

 
 

(b) Intra-corporate transferees may enter and stay in Chinese Taipei for a period of no more than 3 years.

Intra-corporate transferee being a natural person of another country who has been employed by a juridical person of another country for a period of not less than 1 year and who seeks temporary entry to provide services as a responsible person or a senior manager or a specialist through a branch, subsidiary or affiliate established in Chinese Taipei according to the "Statute for Investment by Foreign Nationals".

 

 

 

 

 

 

 

A responsible person means a board director, the general manager, a branch manager or a department head appointed by the board with the authority to sign for the employing entity.

A senior manager means a head or a supervisor who has the authority to appoint or remove the personnel or to make such recommendation, and has the power to make decisions over the day-to-day operation.

   

A specialist means a natural person within an organization who possesses knowledge at an advanced level of expertise and who possesses proprietary knowledge of the organization's services, research equipment, techniques, or management. (Specialists may include, but are not limited to, members of licensed professions.)

   
 

(c) A natural person employed by business entities in Chinese Taipei, according to the additional market access commitments and limitations scheduled in specific sectors or subsectors through mode 4 of delivery, may enter and stay for a period of no more than 2 years.

   
 

Foreign Exchange Regulation

Aggregate amount of inward remittance for foreign portfolio investment in securities listed in Chinese Taipei stock market is limited.

   

 

 

II. SECTOR-SPECIFIC COMMITMENTS

1. BUSINESS SERVICES

A. Professional Services

(a) Legal Services (861**)

i. Legal Services (limited to qualified lawyers under the laws of Chinese Taipei)

 

(1) Access is restricted to natural persons.

 

(1) None

 
 

(2) Access is restricted to natural persons.

(2) None

 
 

(3) Access is restricted to natural persons. Establishment of law firm in the form of sole proprietorship or partnership is required.

(3) None

 
 

(4) Unbound except as indicated in the horizontal section. In addition, establishment of law firm in the form of sole proprietorship or partnership is required.

(4) Unbound except as indicated in the horizontal section

 

ii. Consultancy on home country law of, and international law in force in, the jurisdiction where the service provider is qualified as a lawyer.

(1) Access is restricted to natural persons.

(2) Access is restricted to natural persons.

(1) None

(2) None

 

A service provider is required to cooperate with the licensed lawyer in Chinese Taipei or ask his/her opinions in the following matters:

(i)preparation of legal documents or representation as attorney in matters concerning marriage or parental cases in which the national of Chinese Taipei is a party.

 

 

(3) Access is restricted to natural persons. Establishment of law firm in the form of sole proprietorship or partnership is required

(3) Unbound except as indicated in the horizontal section.

(3)

(a) The service provider is not permitted to employ or jointly practise with licensed lawyers of Chinese Taipei.

 

 

(4) Unbound except as indicated in the horizontal section. In addition, establishment of law firm in the form of sole proprietorship or partnership is required.

(4) Unbound except as indicated in the horizontal section. In addition, a service provider is required to stay in Chinese Taipei not less than 183 days during the period of a calendar year.

 

 

(b) The firm name must indicate the title of "attorney of foreign law affairs" and refer to the jurisdiction where the service provider is qualified as a lawyer.

(c) Practice of third country law is not permitted.

(d) Practice of Chinese Taipei's law is not permitted. Practice of law means:

(ii)Preparation of legal documents or representation as attorney in the matters concerning inheritance in which the national of Chinese Taipei is a party or the estates is located in Chinese Taipei.

   

(i) Representation as attorney or pleader in civil or criminal litigation proceedings.

(ii)Representation as attorney in compulsory execution on non-litigious matters, or as trustee or supervisor in bankruptcy in a bankruptcy matter.

     

(iii)Representation as attorney in commercial arbitration matters.

     

(iv)Representation as guardian in juvenile cases.

     

(v) Representation as attorney in administrative remedy procedures.

     

(vi)Expression of legal opinion on application, interpretation, assessment on other matters of law.

     

(vii)Representation as attorney in the notarization of documents as provided in para. 1 of Article 11 of the Notarization Act.

     

(viii)Representation as registration attorney in acquisition, loss or change of rights concerning real estate, patent rights, trademark rights and copyrights in Chinese Taipei, or other rights arising upon registration.

     

(ix)Service of document of foreign courts or administrative authorities.

Note for transparency

   

 

(b) Accounting, Auditing and Bookkeeping Services (862)

i. Certified Public Accountant (862**)

 

     
 

(1) None, except for services related to accountant attestation practice in Chinese Taipei.

(1) None

 
 

(2) None, except for services related to accountant attestation practice in Chinese Taipei, which can be provided only by the certified public accountants of Chinese Taipei.

(2) None

 
 

(3) Access is restricted to natural persons as certified public accountants of Chinese Taipei. Services shall be provided in the form of a sole practitioner or a joint practice with others.

(3) None

 
 

(4) Unbound except as indicated in the horizontal section. In addition:

(a) Foreigner as a certified public accountant of Chinese Taipei may form a professional establishment to provide services.

(4) Unbound except as indicated in the horizontal section.

 
 

(b) Foreigners employed by an accountant establishment of Chinese Taipei shall meet professional qualification requirements.

   

ii.Other (excluding certified public accountant) (862**)

(1) None.

(2) None.

(3) None.

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(c) Taxation Services (863)

i. Income Tax

Certification Services (863**)

(1) None, except for services related to Chinese Taipei's income tax certifications.

(1) None

 

 

 

 

(2) None, except for services related to Chinese Taipei's income tax certifications, which can only be provided by the natural person who has obtained tax attorney licence of Chinese Taipei.

(2) None

 
 

(3) Access is restricted to natural persons as tax attorneys of Chinese Taipei. Services shall be provided in the form of a sole practitioner or a joint practice with others.

(3) None

 

 

 

 

(4) Unbound except as indicated in the horizontal section. In addition, a foreigner as a licensed tax attorney of Chinese Taipei may form a professional establishment to provide services.

(4) Unbound except as indicated in the horizontal section.

 

ii.Taxation Services (excluding income tax certification services supplied by a tax attorney) (863**)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(d), (e), (f), (g)

Architectural Services

(8671),

Engineering Services

(8672),

Integrated Engineering Services (8673),

Urban Planning and Landscape Architectural Services (8674)

     

i. Architect

 

 

 

 

(1) None, except for services related to the architect certification practice in Chinese Taipei, which can only be provided by the licensed architects of Chinese Taipei.

(1) None

 

 

 

 

(2) None, except for services related to architect certification practice in Chinese Taipei which can only be provided by the licensed architects of Chinese Taipei.

(2) None

 
 

(3) Access is restricted to natural persons as licensed architects of Chinese Taipei. Services shall be provided in the form of a sole practitioner or a joint practice with others.

Architect certification services can be provided only in the name of the individual licensed architect.

(3) None

 
 

(4) Unbound except as indicated in the horizontal section. In addition:

(4) Unbound except as indicated in the horizontal section.

 
 

(a) A foreigner as a licensed architect of Chinese Taipei may form a professional establishment to provide services.

   
 

(b) A local architect establishment in Chinese Taipei may employ foreign technicians specialized in architecture, construction and related engineering technology.

The total number of foreign technicians may not exceed 20 persons and may not exceed one third of its total employees.

   

ii. Professional Engineer

(1) None, except for services related to professional engineer certification practice in Chinese Taipei, which can only be provided by the licensed professional engineers of Chinese Taipei.

(1) None

 

 

 

 

 

 

 

 

 

(2) None, except for services related to professional engineer certification practice in Chinese Taipei, which can only be provided by the licensed professional engineers of Chinese Taipei.

(3) Access is restricted to natural persons as licensed professional engineers of Chinese Taipei. Services shall be provided in the form of a sole practitioner or a joint practice with others. Professional engineer certification practice is required to be performed by natural persons.

(2) None

 

 

 

 

(3) None

 

 

 

(4) Unbound except as indicated in the horizontal section. In addition, foreigners as the licensed professional engineers may form a professional establishment to provide services.

(4) Unbound except as indicated in the horizontal section.

 

iii.Other (excluding the architect and professional engineer certification services)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(i) Veterinary Services

(932)

 

 

 

(1) None, except for services related to the prescription, diagnosis and examination which shall be provided by the licensed veterinarian of Chinese Taipei with practice permit from Chinese Taipei.

(1) None

 

 

 

 

(2) None

(3)

(a) Access is restricted to natural persons as licensed veterinarians or licensed veterinary assistants of Chinese Taipei forming an office and being a member of the professional association.

(2) None

(3) None

 
 

(b) Veterinary assistant shall also meet one of the following requirements with verification documents:

i. practising as a veterinarian assistant for at least 4 years; or

ii. undertaking veterinary-related works for at least 5 years.

   

 

 

 

 

 

 

(4) Unbound except as indicated in the horizontal section. In addition, foreigners as licensed veterinarian or licensed veterinarian assistant of Chinese Taipei may form a professional establishment to provide services.

(4) Unbound except as indicated in the horizontal section.

 

B. Computer and Related Services (excluding the computer airline reservation system services)

(841, 842, 843, 844, 845, 849)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

 

C. Research and Development Services (851, 852, 853)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

 

E. Rental/Leasing Services without Operators

     

(b) Concerning Aircraft (excluding cabotage) (83104**)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(d) Concerning Other Machinery and Equipment (83106-83109)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(e) Other (832)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

F. Other Business Services

(a) Advertising Services,

i. TV and Radio Advertising Services (the businesses producing or broadcasting/

screening advertisements for TV or radio). (871**)

 

 

 

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

In addition:

 

 

 

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 
 

(a) The TV and radio advertising services businesses may employ foreigners in one of the following situations:

i. the business has been established for more than one year with the paid-in capital more than twenty million New Taiwan dollars; or

ii. the paid-in capital of the business is more than thirty million New Taiwan dollars, albeit it has been established for less than one year.

 

 

 

 

 
 

(b) Foreigners employed by the business may not exceed 10% of its total employees.

   

ii. Other Advertising Services (871**)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(b) Market Research and Public Opinion Polling Services (864)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(c) Management Consulting Services (865)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(d) Services Related to Management Consulting (866)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(e) Technical Testing and Analysis Services (8676)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(h) Services Incidental to Mining (883,5115)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(i) Services Incidental to Manufacturing (excluding CPC 88442 publications and printings)

(884**, 885)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(k) Placement and Supply Services of Personnel

(872)

(1) Unbound

(2) None

(3) A foreign supplier may only establish the branch in Chinese Taipei.

(4) Unbound except as indicated in the horizontal section.

(1) Unbound

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(m) Engineering Related Scientific and Technical Consulting Services (8675)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(n) Maintenance and Repair of Equipment (633, 8861-8866) (excluding maritime vessels, aircraft and other transport equipment)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(o) Buildings Cleaning Services (874)

(1) Unbound*

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) Unbound*

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(p) Photographic Services (875)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(q) Packaging Services (876)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

 

(r) Publishing (88442**)

 

 

 

 

 

 

 

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section. In addition:

 

(a) The publishing business may employ the foreigners in one of the following situations:

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section. In addition, residence in Chinese Taipei is required for a publisher and an editor.

 

 

 

 
 

i. the business has been established for no less than one year; or

ii. the paid-in capital of the business is more than twenty million New Taiwan dollars, albeit it has been established for less than one year.

   
 

(b) The business may employ foreigners up to 10% of its total employees.

   

(s) Convention Services (87909*)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

* Activities of establishments engaged in provision of planning, organizing, managing and marketing services for conventions and similar events (including catering and beverage service)

     

(t) Other

i. Telephone Answering Services (87903)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

ii. Duplicating Services (87904)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

iii.Translation and Interpretation Services (87905)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

iv. Mailing List Compilation and Mailing Services (87906)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

v. Specialty Design Services (87907)

 

 

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

 

2. COMMUNICATION SERVICES

B. Land-based International Courier Services (7512**) (excluding courier services involving any prior or subsequent movement by air, and excluding letters, postal cards or other papers having the nature of correspondence).

(1) None

(2) None

(3) None, except for the in-land transportation services. However, a branch office of foreign freight forwarder can use self-owned trucks to provide necessary services.

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

 

 

 

(4) Unbound except as indicated in the horizontal section.

 

C. Telecommunication Services (limited to value-added services)

- (h)Electronic Mail (7523**)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

- (i)Voice Mail (7523**)

- (j)On-line Information & Database Retrieval (7523**)

     

- (k)Electronic Data Interchange (EDI) (7523**)

     

- (l)Enhanced/

value-added facsimile services, including store and forward, store and retrieve

(7523**)

 

 

 

 

 

 

 

- (n)On-line Information and/or Data Processing (843**)

- (o)Others

- Remote Transactions

- Electronic Bulletin Board

- Word Processing and Editing

     

D. Audiovisual Services

(a)

i. Video Tape Production and Distribution Services (excluding motion picture production and distribution services) (9611**)

 

 

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section. In addition:

 

 

 

 

 

 

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

 

 

(a) The business may employ foreigners in one of the following situations:

i. the business has been established for more than one year with the paid-in capital more than twenty million New Taiwan dollars; or

ii. the paid-in capital of the business is more than thirty million New Taiwan dollars, albeit it has been established for less than one year.

   

 

 

 

(b) The foreigners employed by the business may not exceed 10% of its total employees.

   

ii. Motion Picture Production and Distribution Services (excluding video tape production and distribution services) (9611**)

 

 

 

 

 

(1) None

(2) None

(3) None, except that each foreign motion picture imported is restricted to a maximum of 24 duplicates (copies).

(4) Unbound except as indicated in the horizontal section. In addition:

(a) The businesses of motion picture production and distribution may employ foreigners in one of the following situations:

(1) None

(2) None

(3) None

 

(4) Unbound except as indicated in the horizontal section.

 

 

i. the business has been established for more than one year, and

 

 

 

 

 

 

(i) producing at least one fictional movie every year after the second year of establishment except for the business producing all non-fictional movies; or

   
 

(ii) distributing at least one movie every year after the date of establishment registration; or

 

 

 

 

 

 

 

 

ii. the paid-in capital of the business is more than twenty million New Taiwan dollars, albeit it has been established for less than one year.

   

 

 

 

 

 

(b) Foreigners employed by the business may not exceed 10% of its total employees.

   

(b) Motion Picture Projection (9612**)

(1) None

(2) None

(3) None

(1) None

(2) None

(3) The total numbers of location for screening a singular motion picture may not exceed 9 in one municipality and not exceed 6 in one county (city).

 

 

 

 

 

 

 

(4) Unbound except as indicated in the horizontal section. In addition:

(a) The businesses of motion picture projection service may employ foreigners in one of the following situations:

i. the business has been established for more than one year, or

(4) Unbound except as indicated in the horizontal section

 

 

 

ii. the paid-in capital is more than twenty million New Taiwan dollars, albeit the business has been established for less than one year.

   

 

 

(b) Foreigners employed by the business may not exceed 10% of its total employees.

   

(c) Radio and Television Services (9613)

(1) None

 

(2) None

(1) At least 70% of the radio and television programmes shall be produced by the programme suppliers of Chinese Taipei.

(2) None

 
 

(3) Unbound

(3)

(a) At least 70% of the radio and television programmes shall be produced by the programme suppliers of Chinese Taipei.

(b) Transferees in the stock transactions of the radio and television business shall exclude:

i. the business established without registration under the laws of Chinese Taipei; and

ii. the business without operation office in Chinese Taipei.

 
 

(4) Unbound except as indicated in the horizontal section. In addition:

(a) The radio and television broadcasting businesses may employ foreigners in one of the following situations:

i. the radio broadcasting station with frequency modulation or the television broadcasting business has been established for more than one year;

(4) Unbound except as indicated in the horizontal section. In addition, a transferee in the stock transaction of radio and television business is required to be the national with a domicile residing in Chinese Taipei.

 

 
 

ii. the radio broadcasting station with amplitude modulation has been established for more than one year with the paid-in capital of twenty million New Taiwan dollars or more; or

 

 

 
 

iii. the paid-in capital of the radio broadcasting station is more than fifty million New Taiwan dollars, the paid-in capital of the television broadcasting station is more than four hundred million New Taiwan dollars, albeit it has been established for less than one year.

   
 

(b) Foreigners employed by the business may not exceed 10% of its total employees, However, radio broadcasting business using foreign language(s) may apply to the Government Information Office for a higher percentage of foreign employees based on their needs.

   

3. CONSTRUCTION AND RELATED ENGINEERING SERVICES (511-518)

(1) Unbound*

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section. In addition, a construction business may employ foreign architects and construction technicians who meet certain qualification requirements. Foreign technicians employed in each construction site shall not exceed 5 persons, and the total foreign employees shall not exceed one-third of the business' total employees.

(1) Unbound*

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

 

 

4. DISTRIBUTION SERVICES

A. Commission Agents' Services (621)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

B. Wholesale Trade Services (excluding agricultural products, tobacco and alcoholic products, medicine, firearms and military equipment, chemicals, and cosmetics) (622).

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

C. Retailing Services. (631, 632, 6111, 6113, 6121) (excluding tobacco and alcoholic products, medicine, firearms and military equipment, chemicals, and cosmetics).

 

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

D. Franchising (8929)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued)

Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

Sector or subsector

Limitations on market access

Limitations on national treatment

Additional commitments

6. ENVIRONMENTAL SERVICES (940)

A. Sewage Services (9401)

(1) Unbound*

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section .

 

B. Refuse Disposal Services (9402)

(1) Unbound*

(2) None

(3) None

(4) Unbound, except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

C. Sanitation and Similar Services (9403)

(1) Unbound*

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

D. Other (9404, 9405, 9409)

(1) Unbound*

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

 

 

THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued)

Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

Sector or subsector

Limitations on market access

Limitations on national treatment

Additional commitments

7. FINANCIAL SERVICES

A. Insurance and Insurance Related Services

     

(a) Direct Insurance:

i. Life Insurance

Services and

ii. Non-life Insurance

Services:

(1) Unbound, except for maritime shipping and commercial aviation insurance.

(2) Unbound

(3)

(a) All rate formulas, policy clauses, insurance application forms and relevant materials prescribed by the Ministry of Finance (MOF) and amendment thereof are subject to the approval of the MOF. But for an insurance contract which is international in nature and special circumstances, all the above-mentioned information shall be submitted to the MOF for recordation beforehand.

(1) Unbound

(2) Unbound

(3)

(a) In regard to the establishment of an insurance company, those with foreign insurance companies serving as incorporators shall apply to the MOF for review and consent prior to the filing of application for permission for establishment.

The foreign insurance companies referred to in the preceding paragraph shall comply with the following criteria:

 
 

(b) The organization form of an insurance enterprise is restricted to that of a company limited by shares.

(c) Prior approval from the authority is required for providing new insurance services.

i. They have operated the same type of insurance business for more than ten years, and have not yet established a branch in Chinese Taipei.

ii. Their non-life insurance's net policy premium income for the previous year was above an amount equivalent to New Taiwan dollars ten billion, or their life insurance's total assets are above an amount equivalent to New Taiwan dollars fifty billion.

(b) Foreign insurer can apply for setting up branch offices to operate insurance business in Chinese Taipei with the following qualifications:

i. The paid-in capital is equivalent to New Taiwan dollars one billion or more.

ii. Net worth is equivalent to New Taiwan dollars two billion or more.

 
       
       
   

iii. Operation of the applied insurance business has been over five years.

 
 

iv. In the last three years before application, the business results have been graded as first rank by the reputable insurance

commentary organization which is recognized by the MOF.

v. Setting up liaison office in Chinese Taipei over one year.

 
       
   

(c) Foreign insurers can apply for additional branches with the following qualifications:

i. The branch in Chinese Taipei has been over two years.

ii. The net worth of the branch which has been established exceeds New Taiwan dollars fifty million.

 
       
       
       
 

(4) Unbound except as indicated in the horizontal section. In addition, the foreigners employed by an insurance institution shall meet certain qualification requirements.

(4) Unbound except as indicated in the horizontal section.

 

(b) Reinsurance and Retrocession Services

(1) None

(2) None

(3) Unbound

(4) Unbound except as indicated in the horizontal section. In addition, the foreigners employed by an insurance institution shall meet professional qualification requirements.

(1) None

(2) None

(3) Unbound

(4) Unbound except as indicated in the horizontal section

 

(c) Insurance Intermediary Services: (including agent, broker, adjuster and insurance solicitor services).

(1) Unbound

(2) Unbound

(1) Unbound

(2) Unbound

 
 

(3)

(a) The foreign insurance agent, broker, and adjuster companies may set up branch offices to operate the same kind of business that they have operated in their home countries over five years, subject to approval of the MOF.

(3) None

 
 

(b) Except marine adjusters, all foreign agents, brokers, and adjusters who have set up branch offices in Chinese Taipei must employ at least one individual who has secured a Chinese Taipei's agent, broker, or adjuster licence.

   
       
 

(4) Unbound except as indicated in the horizontal section. In addition:

(4) Unbound except as indicated in the horizontal section

 
 

(a) One who has obtained an agent, broker, and adjuster qualification certificate may not practise business in the name of individual.

   
 

(b) The foreigners employed by an insurance institution shall meet professional qualification requirements.

   

(d) Insurance Auxiliary Services: (including claim settlement, actuarial services).

(1) Unbound

(2) Unbound

(3) Unbound

(4) Unbound except as indicated in the horizontal section. In addition, foreigners employed by an insurance institution shall meet professional qualification requirements.

(1) None

(2) None

(3) Unbound

(4) Unbound except as indicated in the horizontal section

 

B. Banking and Other Financial Services (excluding insurance, securities and futures).

 

 

 

 

 

 

All services listed in this subsector.

(1) Unbound

(2) Unbound

(1) Unbound

(2) Unbound

 
 

(3)

(a) Provision of banking services, listed in this subsector, through the commercial presence in Chinese Taipei shall be limited to the establishment of the following institutions: commercial banks, branches of foreign banks, offshore banking branches of banks, foreign exchange brokerage firms, credit card institutions and bills finance companies.

(3) Unbound with respect to subsidies

 
 

(b) Minimum capital or remitted-in working capital is required for different types of financial institutions or branches of foreign financial institutions.

   
 

(c) The following financial institutions incorporated in Chinese Taipei shall be companies limited by shares: banks, bills finance companies and foreign exchange brokers.

   
 

(d) Commercial Banks:

i. Any single person shall not hold shares in a bank in excess of 5% of the total issued shares of the bank, nor shall persons related to the shareholder hold shares in excess of 15% in the aggregate, unless the approval of the Ministry of Finance has been obtained

   
       
       
 

ii. A bank licensed to engage in foreign exchange business is subject to foreign liability limits and foreign exchange over-sold and over-bought limits based on its related business volume.

iii. Unless otherwise provided by law, no entity other than a bank shall carry on the business of acceptance of deposits, management of trust fund and customers' property, and the remittance services for domestic and foreign currencies.

   
 

(e) Branches of Foreign Banks:

i. A foreign bank may apply to establish its first branch in Chinese Taipei when it meets the prior-business-activity test, or rank among the top five hundred banks in the world by assets or capital. The prior-business-activity test requires that a foreign bank should have a total business volume of at least US$1 billion with the banks and major enterprises of Chinese Taipei in the previous three calendar years, of which there shall have been a total amount of not less than US$180 million granted as medium- or long-term credits.

ii. A foreign bank may apply to establish additional branches 2 years after the establishment of its first branch.

   
       
 

(f) Offshore Banking Branches of Banks:

i. An offshore banking branch may not conduct transaction or exchange business between foreign currencies and New Taiwan dollars, and also may not engage in direct investment in company stocks or real estate.

ii. Customers of offshore banking branches are limited to non-residents and authorized foreign exchange banks.

   
       
 

(g) Trust Investment Companies: New entry is prohibited; foreign investment ceiling is 40% in a company.

   
 

(h) Foreign Exchange Brokers:

Investment in foreign exchange brokers is subject to the following restrictions:

   
 

i. Individual or aggregate investment by foreign money brokers is limited to 50% of the ownership share in each brokerage house.

   
 

ii. Investment by each domestic or foreign financial institution is limited to 10% of the ownership share.

   
 

iii. Investment by each domestic or foreign party other than financial institutions is limited to 20% of the ownership share.

   
 

(4) Unbound except as indicated in the horizontal section. In addition, foreigners employed by a financial service supplier shall meet professional qualification requirements:

(4) Unbound except as indicated in the horizontal section

 
       
       

(a) Acceptance of deposits and other repayable fund

(3) Acceptance of foreign exchange checking account deposits and issuance of foreign exchange negotiable certificates of time deposit are not allowed. Foreign exchange deposits shall not be pledged against New Taiwan dollar finance.

Offshore banking branches accepting foreign exchange deposits may not:

(3) New Taiwan dollar deposits taken by branches of a foreign bank may not exceed 15 times of its remitted-in working capital, unless the remitted-in working capital of its first branch reaches 150 million New Taiwan dollars and 120 million New Taiwan dollars for each subsequent branch.

 
 

(a) accept foreign currency cash deposits;

(b) permit the withdrawal of foreign exchange deposits in New Taiwan dollars.

   

 

(b) Lending of all types

(3)

(3) None

 
 

(a) Foreign banks are subject to per client foreign currency credit extension limit of 25% of the net worth of their head office; and per client New Taiwan dollar credit extension limit of 10% of the total balance of New Taiwan dollars credit extension or one billion New Taiwan dollars, whichever is higher.

   
 

(b) Short-term foreign currency financing is available for export- and import-related transactions only.

(c) The borrowers of foreign currency loans are limited to domestic enterprises and individuals. Foreign currency loans are not allowed to be converted into New Taiwan dollars.

   

(c) Financial leasing

(d) Payment and money transmission services

(3) None

(3)

(a) Provision of credit card services requires the prior approval of the Ministry of Finance.

(3) None

(3) None

 
 

(b) The collection of foreign credit card bills of which they are consumed in Chinese Taipei shall be undertaken only by authorized foreign exchange banks of Chinese Taipei.

   

(e) Guarantees and commitments

(3) Foreign banks are subject to per client foreign currency credit extension limit of 25% of the net worth of their head office; and per client New Taiwan dollar credit extension limit of 10% of the total balance of New Taiwan dollars credit extension or one billion New Taiwan dollars, whichever is higher.

(3) The balance of commercial paper guaranteed by branches of a foreign bank may not exceed 10 times of their net worth.

 
 

Guarantees of foreign currency guarantee business are limited to domestic enterprises and individuals.

   

(f) Trading for own account or for account of customers in the following instruments:

(3) The authorized foreign exchange banks when engaging in forward exchange business shall:

(3) None

 

- Money market instruments

- Foreign exchange

- Bullion

(a) limit their foreign exchange transactions to those that are related to payments for import/export transactions, freight payments and property insurance payments;

   
 

(b) require margin deposits in proportion to forward exchange contract value, and

   
 

(c) limit their forward exchange contract to those with terms not to exceed 180 days.

   
 

Branches of foreign banks are not allowed to invest in corporate stocks.

   

(g) Participation in the issue of short-term bills

(3) Banks are not allowed to engage in short-term bills underwriting and certification business.

(3) None

 

(h) Money broking

(3) Foreign exchange brokers are not allowed to engage in broking business of New Taiwan dollar money market.

(3) None

 

(i) Trust service

(3) Banks are not allowed to receive trust fund of which the principal or interest is guaranteed.

(3) None

 

(k) Provision and transfer of financial information, and financial data processing and related software by suppliers of other financial services.

(3) None, except as indicated in telecommunication services sector.

(3) None, except as indicated in telecommunication services sector.

 

 

C. Securities and futures

     

(f) Trading for own account or for account of customers, whether on an exchange, in an

over-the-counter market or otherwise, in the following instruments:

     

- derivative products including, but not limited to, futures and options

(1) Unbound

(2) None

(3) Unbound except that a foreign futures brokerage firm may operate its brokerage business only by establishment of a branch in Chinese Taipei.

(4) Unbound except as indicated in the horizontal section

(1) Unbound

(2) None

(3) None

 

 

 

(4) Unbound except as indicated in the horizontal section

 
       

- transferable securities

(1) Unbound

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

(1) Unbound

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

 

(g) Participation in issues of all kinds of securities, including underwriting and placements agent (whether publicly or privately) and provision of services related to such issues

(1) Unbound

(2) None

 

 

 

 

(3) Securities business only include brokerage, underwriting, and dealership.

 

(4) Unbound except as indicated in the horizontal section

(1) Unbound

(2) Foreign underwriters undertaking offshore securities offering of a company incorporated in Chinese Taipei shall provide the due diligence report assisted by the Chinese Taipei's underwriters.

(3) Unless establishing a representative office in Chinese Taipei for a period not less than one year, a foreign securities firm is not allowed to set up branch operation in Chinese Taipei.

(4) Unbound except as indicated in the horizontal section

 

(i) Asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository

and trust services.

(1) Unbound

(2) None

(3) Securities investment trust enterprises: Aggregate foreign equity holding in a company is subject to the ceiling limitation of 49% of the company's total shares; equity interest in a company held by a single party or related parties is subject to the ceiling limitation of 25%.

Banks allowed to be promoters of securities investment trust enterprises are limited to those experienced in international finance, securities or trust business, and ranked among top 200 in the world in terms of its capital or assets.

(1) Unbound

(2) None

(3) Securities investment trust enterprises: At least 20% persons of the promoters are fund-management institutions or banks which meet specific qualifications, and the application shall be filed by a qualified fund-management institution along with a cooperation plan setting out the terms and conditions for the transfer of management technology.

 
 

Securities depository enterprises: The establishment of securities depositories is subject to SEC's prior approval, and only one securities depository can be established for one stock market (exchange).

   
 

(4) Unbound except as indicated in the horizontal section

(4) Unbound except as indicated in the horizontal section

 

(j) Settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments:

(1) Unbound except that domestic securities issuers may make settlement and clearance through Euroclear, Cedal or DTC (Depository Trust Company).

(2) None

(3) Only the securities exchange and the securities depository entrusted by the securities exchange can provide securities settlement and clearing services.

Securities depository enterprises: Only one securities depository can be established in one exchange.

(4) Unbound except as indicated in the horizontal section.

(1) Unbound

 

 

 

(2) None

(3) None.

 

 

 

 

 

 

(4) Unbound except as indicated in the horizontal section

 
       
       

(k) Provision and transfer of financial information, and financial data processing and related software by providers of other financial services:

(1) None

(2) None

(3) None, except as indicated in telecommunication services sector.

(4) Unbound except as indicated in the horizontal section

(1) None

(2) None

(3) None, except as indicated in telecommunication services sector.

(4) Unbound except as indicated in the horizontal section.

 

(l) Advisory,

intermediation and other auxiliary financial services (limited to the activities listed in the Securities and Exchange Law):

(1) Unbound

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

(1) Unbound

(2) None.

(3) None.

(4) Unbound except as indicated in the horizontal section.

 

 

Remarks:

1. Banks allowed to do securities or futures business are subject to relevant securities or futures laws and regulations in addition to the afore-mentioned non-discriminatory limitation imposed for prudential reasons.

2. For the purpose of schedule in securities business, the term "consumption abroad" as referred to in the context of Article I.2(b) of the GATS is interpreted as the supply of services by a services provider in the territory of a Member other than Chinese Taipei who does not actively promote its business in Chinese Taipei.

 

THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued)

Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

Sector or subsector

Limitations on market access

Limitations on national treatment

Additional commitments

9. TOURISM AND TRAVEL RELATED SERVICES

A. Hotels and Restaurants (incl. catering)

     

(a) Hotel (Limited to Tourist Hotel) (excluding food and beverage serving services) (64110**)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound, except as indicated in the horizontal section.

 

(b) Hotels (Limited to Regular Hotel) (64110**)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

(c) Food Serving Services (642)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

B. Travel Agencies and Tour Operators Services (7471)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section.

 

C. Tourist Guides Services (7472)

(1) Unbound

(2) None

(3) Unbound

(4) Unbound except as indicated in the horizontal section. In addition, a foreigner who intends to be a travel guide shall pass the examination and the training held by the competent authority entrusted by the Tourism Bureau.

(1) Unbound

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section. In addition, a foreigner can apply for the travel-guide examination only if he has obtained the alien resident certificate and has resided for more than six months.

 

 

10. RECREATIONAL, CULTURAL AND SPORTING SERVICES (OTHER THAN AUDIOVISUAL SERVICES)

B. News Agency Services (962)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section. In addition:

(a) The news agency business may employ foreigners in one of the following situations:

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section. In addition, residence in Chinese Taipei is required for a publisher and an editor.

 
 

(i) the business has been established for no less than one year; or

(ii) the paid-in capital of the business is more than twenty million New Taiwan dollars, albeit it has been established for less than one year.

(b) Foreigners employed by the business may not exceed 10% of its total employees of the business.

   

 

11. TRANSPORT SERVICES

C. Air Transport Services

(a) Maintenance and Repair of Aircraft

 

 

 

(1) Unbound*

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

 

 

(1) Unbound*

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

 

(b) Selling and Marketing of Air Transport Services

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

 

(c) Computer Reservation System

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

 

E. Rail Transport Services

(a) Passenger Transportation (7111)

 

 

 

 

(1) Unbound*

(2) None

(3) Unbound

(4) Unbound except as indicated in the horizontal section

 

 

(1) Unbound*

(2) None

(3) Unbound

(4) Unbound except as indicated in the horizontal section

 

(b) Freight Transportation (7112)

(1) Unbound*

(2) None

(3) Unbound

(4) Unbound except as indicated in the horizontal section

(1) Unbound*

(2) None

(3) Unbound

(4) Unbound except as indicated in the horizontal section

 

(d) Maintenance and Repair of Rail Transport Equipment (8868**)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

 

F. Road Transport Services

(a) Passenger Transportation (7121, 7122)

 

 

(1) Unbound*

(2) None

(3) Unbound

(4) Unbound except as indicated in the horizontal section

 

 

(1) Unbound*

(2) None

(3) Unbound

(4) Unbound except as indicated in the horizontal section

 

(b) Import and Export of Containerized Freight (that has an origin or destination outside of Chinese Taipei) (71233**)

(1) Unbound*

(2) None

(3) Unbound, except for the branch of a transport operator to operate with motor vehicles in the inland freight transportation of containerized cargoes for imports or exports.

(4) Unbound except as indicated in the horizontal section

(1) Unbound*

(2) None

(3) None

 

 

 

(4) Unbound except as indicated in the horizontal section

 

(d) Maintenance and Repair of Road Transport Equipment (6112, 8867)

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

(1) None

(2) None

(3) None

(4) Unbound except as indicated in the horizontal section

 

 

 

DRAFT MFN EXEMPTIONS LIST OF

THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU

 

 

 

(7 November 1994 draft)

 

 

 

DRAFT MFN EXEMPTIONS LIST OF

THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU

 

 

(7 November 1994 draft)

 

 

Sector or subsector

Description of measure indicating its inconsistency with Article II

Countries to which the measure applies

Intended

duration

Conditions creating the need for the exemption

ALL SECTORS

 

Acquiring the Rights and Interests in Lands

Foreign nationals or entities are not permitted to acquire the rights and interest in lands, if their home countries do not grant reciprocal treatment to nationals or legal entities of Chinese Taipei.

All countries

Indefinite

Reciprocity