Spec(95)5 [WP for Windows Docs]

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GENERAL AGREEMENT Spec(95)5

11 April 1995

ON TARIFFS AND TRADE

(95-0880)

Original: English

ACCESSION OF CHINESE TAIPEI

Communication from Chinese Taipei

The following communication has been received from the Representation of Chinese Taipei in Geneva.

_______________

I have the honour to transmit to you as attached a copy of our newly revised draft schedule of initial commitments and MFN exemptions list on trade in services (dated 1 March 1995) which reflects the result of our bilateral services consultations with several members of the Working Party in December 1994.

The following two supplementary documents are also enclosed for the reference of the members:

- an explanatory note describing certain features of the changes or modifications contained in the 1 March 1995 draft schedule;

- a list highlighting the changes or modifications contained in the 1 March 1995 draft schedule as compared with the previous version.

My government reserves the right to make necessary revisions and modifications in the light of our future consultations with the members.

I would appreciate it if you could circulate the same to the members of the Working Party.

________________

Major Features of the Changes or Modifications in the Draft Schedule

1 March 1995

1. In horizontal section, the ceilings on equity investment in listed companies have been raised;

2. For business services, commitments on access to the services of real estate sales agents and on access to the consulting services for agriculture and forestry have been incorporated into the draft schedule;

3. For telecommunication services, commitment on access to the code and protocol conversion service has been incorporated into the draft schedule;

4. For environmental services, commitment on access to nature and landscape protection consulting service has been incorporated into the draft schedule;

5. For education services, commitment on access to overseas studies services has been incorporated into the draft schedule;

6. For financial services:

(a) In banking and other financial services: The scope of the forward exchange business has been extended to cover the payment for all commodity and service transactions; additional commitments have also been made on market access to the approved derivative products and to the guarantees on commercial papers.

(b) In insurance services: The restrictions on the establishment of an insurance company and on the establishment of additional branches have been lifted; the requirement on setting up liaison office before the establishment of branch office has also been removed.

(c) In securities services: Certain limitations have been relaxed in securities investment trust enterprises for asset management.

REVISION LIST

FOR THE DRAFT SCHEDULE ON TRADE IN SERVICES

DATED 1 MARCH 1995

* The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu hereby encloses the revisions list for the latest draft schedule of 1 March 1995. This draft has made the following changes or modifications from the previous schedule of 7 November 1994.

** In the list, the abbreviation of MA indicates the column on Limitations on Market Access, NT indicates the column of Limitations on National Treatment, AC indicates the column of Additional Commitments, and SS indicates the column of Sector/subsector.

Sector or subsector	7 Nov. 94 draft	1 Mar. 95 draft	Commitments changed
Horizontal Section	pp. 3-4	p.11	In (3)(b)(i) of MA, the ceiling on equity investment by foreign institutional investor has been raised from 5% up to 6%. In (3)(b)(ii) of MA, the ceiling has been raised from 10% up to 12%.
Legal Services	p.10	p.17	In (3)(a) of AC, commitment on access to joint practice, except partnership, with the lawyers of Chinese Taipei has been added.
Accounting Services	p. 15	p. 20	In (4)(b) of MA, spare the professional qualification on employment of foreigners for prudential reasons.
Services Incidental to Residential and Non-Residential Buildings and Land Sales Agents		p. 28	Commitment on access to the services has been added.
Advertising Services	p. 24	p. 29	In (4)(a) of MA, paid-in capital requirement on an advertising services business established for less than one year in employment of foreigners has been reduced from NT$ 30 mil. to 5 mil. Delete the paid-in capital requirement on an advertising services business established for one year or more in employment of foreigners.
Publishing	p. 28	p. 34	In (4)(a) of MA, the same as in above advertising services.
Video Tape Production and Distribution Services	p. 33	p. 39	In (4)(a) of MA, the same change as in above advertising services.
Motion Picture Production and Distribution Services	p. 34	p. 40	In (4)(a) of MA, the same change as in above advertising services.
Motion Picture Projection	p. 36	p. 41	In (4)(a) of MA, the same change as in above advertising services.
Radio and Television Services	pp. 37-38	pp. 43	In (4)(a)ii of MA, the paid-in capital requirement for TV broadcasting station has been reduced from NT$ 400 mil. to NT$ 300 mil.
News Agency Services	p. 68	p. 70	In (4)(a) of MA, the same change as in above advertising services.
Consulting Services Incidental to Agriculture and Forestry		p. 31	Commitment on access to the services has been added.
Value-added Telecommunication Services		p. 38	Commitment on access to Code and Protocol Conversion Services has been added.
Education Services		p. 46	Commitment on access to overseas studies services has been added.
Environmental Services	p. 42	p. 47	Commitment on access to Nature and Landscape Protection Consulting Services has been added.
Banking and Other Financial Services
- All services listed in this sector	p. 54	p. 57	In (4) of MA, spare the sentence regarding the qualification requirements on employment of foreigners for prudential reasons.
- Trading for own account or for account of customers	p. 57	p. 60	The scope of forward exchange business has been committed to extend to include the payment of commodity and service transactions.
	p. 59	p. 60	In (3) of MA, delete any restriction on the form of establishment by a foreign futures brokerage firm, and make full commitment
Direct Insurance	pp. 43-44	pp. 48-49	Delete (3)(a) of NT of restriction on establishment of an insurance company by foreign insurers. Delete (3)(c) of NT of restriction on establishment of additional branches by foreign insurers. Delete (3)(b)v of NT of requirement on setting up liaison office.
Insurance Intermediary Services	p. 47	p. 50	Spare the prior approval of (3)(c) of MA for prudential reasons.
	pp. 47-48	p. 51	In (4) of MA, spare the para.(b) for prudential reasons.
Reinsurance and Retrocession Services	p. 46	p. 49	Replace "Unbound" with "None" in both (3) of MA and of NT.
Securities and Futures Asset management	p. 59	p. 62	In (3) of MA, spare the prior approval for establishment of securities depositories for prudential reasons.
Securities and Futures Asset management	p. 61	p. 64	For securities investment trust enterprises in (3) of MA, delete ceiling limitation on equity holdings by foreigners, expand the scope of acting as promoters by foreigners from listed in the world top 200 to 500, and specify the experience to 5 year period. For securities investment trust enterprises in (3) of NT, delete qualification requirement for application.

DRAFT SCHEDULE OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU CONCERNING INITIAL COMMITMENTS ON TRADE IN SERVICES

(1 March 1995)

Notes:

- 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 double asterisks (**) against individual CPC listings indicates that the services specified constitutes only a part of the total range of activities covered by the CPC concordance.

- 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

(1 March 1995 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 directly invest in Chinese Taipei according to the "Statute for Investment by Foreign Nationals", unless otherwise falling into the measures of limitations specified in the specific sectors. (b) Direct purchase of stocks in Chinese Taipei's securities market is restricted to foreign institutional investors, and is subject to the following limitations:
	i. any foreign institutional investor may hold up to 6% of the total issued stocks of a listed company; and ii. the foreign institutional investors together may hold up to 12% of the total issue stocks of that company.

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
		Acquiring the Rights and Interests in the Land (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 graveyards.
	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. (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, a senior manager or a specialist through a branch, subsidiary or affiliate established in Chinese Taipei according to the "Statute of Investment by Foreign Nationals".	(4) Unbound except for measures concerning the categories of natural persons referred to in the market access column.
	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 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 four of delivery, may enter and stay for a period of no more than 2 years.

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. (2) Access is restricted to natural persons (3) Access is restricted to natural persons. 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, establishment of law firm in the form of sole proprietorship or partnership is required.	(1) None (2) None (3) None (4) Unbound except as indicated in the horizontal section.
ii. Consultancy on home country law and international law in force in the jurisdiction where the service provider is qualified as a lawyer. A service provider is required to cooperate with the licensed lawyer in Chinese Taipei or ask for his/her opinions in the following matters:	(1) Access is restricted to natural persons. (2) Access is restricted to natural persons. (3) Access is restricted to natural persons. Establishment of law firm in the form of sole proprietorship or partnership is required.	(1) None (2) None (3) Unbound except as indicated in the horizontal section.	(3) (a) The service provider is not permitted to employ licensed lawyers of Chinese Taipei. The "attorney of foreign law affairs" may jointly practice with the licensed lawyers of Chinese Taipei except in the form of a partnership.
- Preparation of legal documents or representation as attorney in the matters concerning marriage or parental cases in which the national of Chinese Taipei is a party. - 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. Note for transparency (b) Accounting, Auditing and Bookkeeping services (862) i. Certified Public Accountant (862**)	(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. (1) None, except for services related to accountant attestation practice in Chinese Taipei.	(4) Unbound except as indicated in the horizontal section. (1) None	(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) The "attorney of foreign law affairs" is not permitted to practice the law of Chinese Taipei.
	(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. (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. (4) Unbound except as indicated in the horizontal section. In addition, a foreigner as a certified public accountant of Chinese Taipei shall form a professional establishment to provide services.	(2) None (3) None (4) Unbound except as indicated in the horizontal section.
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. (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. (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. (4) Unbound except as indicated in the horizontal section. In addition, a foreigner as a licensed tax attorney of Chinese Taipei shall form a professional establishment to provide services.	(1) None (2) None (3) None (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. (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. (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. (4) Unbound except as indicated in the horizontal section. In addition: (a) A foreigner as a licensed architect of Chinese Taipei shall 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 numbers of foreign technicians may not exceed 20 persons and may not exceed one-third of its total employees.	(1) None (2) None (4) Unbound except as indicated in the horizontal section.

3. CONSTRUCTION AND RELATED ENGINEERING SERVICES (511-518)
	(1) Unbound* (2) None (3) None	(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.	(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 product, tobacco and alcoholic products, firearms and military equipment, and chemicals) (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 firearms and military equipment, and chemicals)	(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.

5. EDUCATION SERVICES
E. Other Education Services (9290**) - Overseas studies services	(1) None (2) None (3) None; however, the following activities are not allowed to be taken in Chinese Taipei: i. advertising for recruiting students; ii. conducting interviewing, screening or other activities for student admission; iii. charging tuition and fees; iv. offering courses. (4) Unbound except as indicated in the horizontal section.	(1) None (2) None (3) None (4) Unbound except as indicated in the horizontal section.
6. ENVIRONMENTAL SERVICES
A. Sewage Services (9401); Refuse Disposal Services (9402); Sanitation and Similar Services (9403); Others (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.
B. Consulting Services Incidental to Nature and Landscape Protection (9406**)	(1) Unbound* (2) None (3) Unbound (4) Unbound except as indicated in the horizontal section.	(1) None (2) None (3) Unbound (4) Unbound except as indicated in the horizontal section.
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	(1) None (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. (b) The organization form of an insurance enterprise is restricted to that of a company limited by shares.	(3) 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 NT$ one billion or more; ii. net worth is equivalent to NT$ 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.
	(4) Unbound except as indicated in the horizontal section.	(4) Unbound except as indicated in the horizontal section.
(b) Reinsurance and Retrocession Service	(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) Insurance Intermediary Services (including agent, broker, adjuster and insurance canvasser services)	(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 the approval of the MOF. (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, one who has obtained an agent, broker, and adjuster qualification certificate may not practice business in the name of individual.	(1) Unbound (2) Unbound (3) None (4) Unbound except as indicated in the horizontal section.
(d) Insurance Auxiliary Services (including claim settlement, actuarial services)	(1) Unbound (2) Unbound (3) Unbound (4) Unbound except as indicated in the horizontal section.	(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	(1) Unbound
	(2) Unbound	(2) Unbound
	(3)	(3) Unbound with respect to subsidies.
	(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.
	(b) A financial institution or the branch office of a foreign financial institution shall be in accordance with the minimum capital requirement or the minimum inward-remittance operating capital requirement.
	(c) The following financial institutions incorporated in Chinese Taipei shall be companies limited by shares: banks, bills finance companies and foreign exchange brokerage firms.
	(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 MOF 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 brokerage firms: Investment in a foreign exchange brokerage firm is subject to the following restrictions: i. individual or aggregate investment by foreign money brokerage firms is limited to 50% of the ownership share. 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.	(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 deposits 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) (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.	(3) None
	(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	(3) None	(3) None
(d) Payment and money transmission services	(3) (a) Provision of credit card services requires the prior approval of the MOF.
	(b) The collection of foreign credit card bills for goods and services 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. Guarantees of foreign currency guarantee business are limited to domestic enterprises and individuals.	(3) None
(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 - Derivative products not traded on the exchange markets and limited to those approved, such as currency options, interest rate options, FX swaps, cross currency swaps, interest rate swaps, forward rate agreements and margin trading	(a) limit their foreign exchange transactions to those that are related to payments for commodity and service transactions; (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 brokerage firms 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	(1) Unbound (2) None
	(3) None	(3) None
	(4) Unbound except as indicated in the horizontal section.	(4) Unbound except as indicated in the horizontal section.
- transferable securities	(1) Unbound	(1) Unbound
	(2) None	(2) None
	(3) None	(3) None
	(4) Unbound except as indicated in the horizontal section.	(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	(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) Securities business only include brokerage, underwriting, and dealership	(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.	(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: 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 with 5 years experience in international finance, securities or trust business, and ranked among top 500 in the world in terms of its capital or assets. Securities depository enterprises: Only one securities depository can be established for one stock market (exchange).	(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 or life insurance companies with 5 years experience in fund-management, and the application shall be filed by a qualified fund-management institution.
	(4) Unbound except as indicated in the horizontal sections.	(4) Unbound except as indicated in the horizontal sections.
(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)	(1) Unbound
	(2) None	(2) None
	(3) Only securities exchanges and the securities depository enterprises entrusted by the securities exchanges can provide securities settlement and clearing services.	(3) None

	Securities depository enterprises: Only one securities depository can be established in one exchange.
	(4) Unbound except as indicated in the horizontal section.	(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.	(1) None (2) None (3) None, except as indicated in telecommunication services sector.
	(4) Unbound except as indicated in the horizontal section	(4) Unbound except as indicated in the horizontal section
(1) Advisory¹, 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.

9. TOURISM AND TRAVEL RELATED SERVICES

A. Hotels and Restaurants (including 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	(1) None (2) None
	(3) None	(3) None
	(4) Unbound except as indicated in the horizontal section.	(4) Unbound except as indicated in the horizontal section.

C. Tourist Guides Services (7472)	(1) Unbound	(1) Unbound
	(2) None	(2) None
	(3) Unbound except for the provision of such services by a travel agency or a tour operator.	(3) None
	(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.	(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.
B. News Agency services (962)	(1) None	(1) None
	(2) None	(2) None
	(3) 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:	(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 more than one year;
	ii. the paid-in capital of the business is more than five 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*	(1) Unbound*
	(2) None	(2) None
	(3) None	(3) None
	(4) Unbound except as indicated in the horizontal section.	(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) 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) Freight Transportation (7112)	(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
(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 EXEMPTION LIST OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU,

KINMEN AND MATSU

(1 March 1995)

DRAFT MFN EXEMPTIONS LIST OF

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

(1 March 1995 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 the Land 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

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. (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	(1) None (2) None (3) None
	(4) Unbound except as indicated in the horizontal section. In addition, a foreigner as a licensed professional engineer shall 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	(1) None (2) None
	(3) None	(3) None
	(4) Unbound except as indicated in the horizontal section	(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. (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. (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.	(1) None (2) None (3) None
	(4) Unbound except as indicated in the horizontal section. In addition, a foreigner as a licensed veterinarian or a licensed veterinarian assistant of Chinese Taipei shall 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.
D. Real Estate Services Services Incidental to Residential and Non-residential Buildings and Land Sales Agent (82203, 82205)	(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: (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; ii. the paid-in capital of the business in more than five 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.	(1) None (2) None (3) None (4) Unbound except as indicated in the horizontal section.
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 (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.
(f) Consulting Services Incidental to Agriculture and Forestry (88110, 88140)	(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 publishing and printing) (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) Building-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 Services (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: (i) the business has been established for more than one year; (ii) The paid-in capital of the business is more than five million New Taiwan dollars, albeit it has been established for less than one year.	(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.
	(b) The business may employ foreigners up to 10% of its total employees.
(s) Convention Services (87909) Activities of establishments engaged in provision of planning, organizing, managing and marking services for conventions and similar events (including catering and beverage service)	(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.
(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. Speciality 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 inland 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) (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) (m) Code and Protocol Conversion Services (n) On-line Information and/or Data Processing (843) (o) Others - Remote Transactions - Electronic Bulletin Board - Word Processing And Editing	(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. 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: (a) The business may employ foreigners in one of the following situations: i. the business has been established for more than one year; ii. the paid-in capital of business is more than five 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.	(1) None (2) None (3) None (4) Unbound except as indicated in the horizontal section.
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 duplicate (copies). (4) Unbound except as indicated in the horizontal section. In addition: (a) The business of motion picture production and distribution may employ foreigners in one of the following situations: i. the business has been established for more than one year; ii. the paid-in capital of the business is more than five 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.	(1) None (2) None (3) None (4) Unbound except as indicated in the horizontal section.
(b) Motion Picture Projection Services (96121)	(1) None (2) None (3) None (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 ii. the paid-in capital is more than five 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.	(1) None (2) None (3) The total number of locations 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.
(c) Radio and Television Services (9613)	(1) None (2) None (3) Unbound (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 business has been established for more than one year; ii. 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 three hundred million New Taiwan dollars, albeit it	(1) At least 70% of the radio and television programmes shall be produced by the programme suppliers of Chinese Taipei. (2) None (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 transferee in the stock transaction of radio and television business is required to be the national with a domicile residing in Chinese Taipei.
	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.