TAIWAN. PENGHU. KINMEN ET MATSU

Transcription

1 . GENERAL AGREEMENT ON TARIFFS AND TRADE RESTRICTED ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMRCE Spec(94)37/Rev October 1994 ACUERDO GENERAL SOBRE ARANCELES ADUANEROS Y COMERCIO ( ) Original: English/ anglais/ inglés 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' was received on 13 September 1994 with the request that it be circulated to the members of the Working Party. ACCESSION DU TERRITOIRE DOUANIER DISTINCT DE TAIWAN. PENGHU. KINMEN ET MATSU Engagements initiaux concernant le commerce des services Revision Le secrétariat a reçu, le 13 septembre 1994, les projets révisés ci-joints de liste d'engagements initiaux et de liste d'exemptions de l'obligation NPF concernant le commerce des services', qu'il a été chargé de communiquer aux membres du Groupe de travail. ADHESIÓN DEL TERRITORIO ADUANERO DISTINTO DE TAIWAN, PENGHU, KINMEN Y MATSU Compromisos iniciales sobre el comercio de servicios Revision El 13 de septiembre de 1994 se recibió el adjunto proyecto revisado de lista de compromises iniciales y de exenciones del trato n.m.f. en materia de comercio de servicios', con el ruego de que se distribuyese a los miembros del Grupo de Trabajo. English only/anglais seulement/inglés solamente. NDELTERRITORJO ADUANERO DISTINTO DE~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

2 cn la 0 DRAFT SCHEDULE OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU CONCERNING INITIAL COMMITMENTS ON TRADE IN SERVICES (6 September 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 rage of activities covered -by the CPC concordance. ii) The entry "Unbound*" means unbound due to lack of technical feasibility.

3 DRAFT SCHEDULE OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU CONCERNING INITIAL COMMITMENTS ON TRADE IN SERVICES rd o O 1J (6 September 1994 draft) I. HORIZONTAL COMMITMENTS All sectors (except as indicated Investment otherwise in specific sectors) (3) (a) Foreign business and individuals may invest in Chinese Taipei, subject to the approval by a competent authority according to the "Statute for Investment by Foreign Nationals". (b) Purchase of stocks by foreign institutional investors is subject to the following limitations: 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. Acouirine 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 residence, shops and factories, churches, schools of the expatriates, chancellery, facilities of non-profit organizations and graveyard. The areas and geographical location are subject to the limitation by the local city or county government according to the laws. (c) i. foreigners leasing -or purchasing land for the above cited purposes shall file application jointly with the original owner to the local city or county government for approval; ii. foreigners, changing the use or transferring the title after acquiring the land, shall apply to the local or county government for approval.

4 cn " CDo Sector or subsector 1 Limitations on market access Limitations on national treatment Additional commitments [:A~~~~~~~~~~~~~~~~~~ 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 engaged in making direct sale to the general public, for the purpose of participating in business meetings, business negotiations, the preparation for establishing a commnercial 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 2 years and who seeks temporary entry to provide services as a responsible person or a senior manager through a branch, subsidiary or affiliate established in Chinese Taipei according to the Statute for Investment by Foreign Nationals. (4) Unbound except for measures concerning the categories of natural persons referred to in the market access column. In addition, foreigners are excluded from acting as the chairman and the vice chairman of the board of directors in a company limited by shares and as the directors in a company with limited liability, and at least half of shareholders in a company limited by shares must be nationals of Chinese Taipei. However, the limitations will not be applied to the companies invested under the Statute for Investment by Foreign Nationals or the Statute for Investment by Overseas Chinese.

5 cn D n %Z 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 mans 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. (c) Additional Commitments and Limitations 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.._

6 'D cn CD 0 Foreign Exchange Regulation Foreign exchange regulation affecting trade in services covered in this schedule will be consistent with Chinese Taipei's obligations under the Special Exchange Agreement with the Contracting Parties.' The foreign exchange regulations of Chinese Taipei are as follows: a. The payment or receipt of exchanges in the trade of goods and services: fully free. b. The payment or receipt of exchanges for the purposes other than the trade of goods and services: i. If not involving the conversion of New Taiwan dollars: fully free. ii. If involving the conversion of New Taiwan dollars: fully free in the investments approved by the competent authorities. In addition, the individuals who are the nationals or have the Alien Residence Certificates and are over the age of 20 may freely purchase and sell five million US dollars or equivalent amount each year without prior approval. The companies incorporated in Chinese Taipei and the foreign companies registered in Chinese Taipei may freely purchase and sell ten million US dollars or equivalent amount each year without prior approval. iii. Foreign institutional investors may invest in Chinese Taipei's securities market up to a certain amount, but foreign non-institutional investors may not directly invest in Chinese Taipei's securities market. [At present, foreign investors may invest in the Chinese Taipei's securities market in the following four ways: (i) by investing in the corporate bonds issued overseas by the Chinese Taipei's listed companies; (ii) by investing in global depository receipts issued overseas by the Chinese Taipei's listed companies; (iii) by investing in beneficiary certificates issued overseas by the Chinese Taipei's securities investment trust companies; (iv) as institutional investors, by directly investing in the Chinese Taipei's securities market.]

7 cn 0D <) _ Il. SECTOR-SPECIFIC COMMITMENTS 1. BUSINESS SERVICES A. a) Professional Services Legal Services (limited to licensed lawyers) (861**) (1) None, except for the services related to the laws of Chinese Taipei or to the litigations in the forums of Chinese Taipei, which can only be performed by the lawyer who has obtained attorney license and practice permit from Chinese Taipei. (2) None, except for the services related to the laws of Chinese Taipei or to the litigations in the forums of Chinese Taipei, which can only be performed by the lawyer who has obtained attorney license and practice permit from Chinese Taipei. (3) (a) Professional establishment restricted to sole proprietorship or partnership is required. (b) Access is restricted to natural persons who have obtained the license to practice law in Chinese Taipei. (4) Unbound except as indicated in the horizontal section. In addition: (a) A foreigner who has passed Chinese Taipei's bar examination and obtained the license can practice law with the approval from the Department of Justice. (1) None (2) None (3) None (4) Unbound except as indicated in the horizontal section

8 'The employed foreigners are required to meet one of the following qualifications: a. Graduation from related departments of a college in Chinese Taipei or a foreign country and having experience in related works for more than 2 years. b. Passing the bar examination of a foreign country and having experience in related works for more than 2 years. 0 cn - (b) Foreigners may be employed by the attorney of Chinese Taipei as their associates or of counsels.2 (c) Professional establishment is required. (b) Accounting, Auditing (1) None, except for services related to the (1) None and Bookkeeping Chinese Taipei's accountant certification Services practice. (limited to certified (2) None, except for services related to the (2) None public accountants) Chinese Taipei's accountant certification (862**) practice which can be provided only by the local certified public accountant of Chinese Taipei. (3) A foreigner who has obtained license of (3) None certified public accountant in Chinese Taipei is required to practice as a sole practitioner or to jointly practice with others.

9 cn <D o O ~ (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section. In addition: horizontal section (a) A foreigner who has obtained license of certified public accountant in Chinese Taipei may provide services with the approval of the Ministry of Finance.3 (b) Foreigners employed by an accountant establishment of Chinese Taipei shall meet professional qualification requirements and may not exceed 10% of its total employees 3The usual documents will be reviewed.

10 ~ 1, na 0 O P THE SEPARATF CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) Sector or subsector Limitations on market access Limitations on national treatme.nt Additional commitments (c) Taxation Services (863) (c) Professional establishment is required. i. Tax Certification (1) None, except for services related to (1) None Services (863**) Chinese Taipei's tax certification practice. (2) None, except for services related to (2) None Chines- Taipei's tax certification practice, which can only be performed by a natural person who has obtained tax attorney certificate in Chinese Taipei. (3) Access is restricted to a natural person who (3) None has obtained tax-attorney certificate in Chinese Taipei and provides services as a sole practitioner or jointly practice with others. (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section. In addition: horizontal section. (a) A foreigner shall have obtained the tax attorney certificate from Chinese Taipei; (b) Professional establishment is required. ii. Tax Consultancy (1) None (1) None (excluding tax certification services (2) None (2) None supplied by a tax attorney) (863**) (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section

11 4The employed foreigners are required to meet one of the following qualifications: a. Graduation from related departments in a college and having experience in related works for more than 2 years. b. Graduation from related departments in an advanced vocational school and having experience in related works for more than 5 years. c. Having professional training or possessing particular technology and having the proof of experience in related works for more than 5 years. (d) Architectural and Engineering Services i. Architect (8671**, 8672**, 8673**, 8674**) (1) None, except for services related to the architect certification practice, which car only be provided by locally licensed architects of Chinese Taipei (2) None, except for services related to architect certification practice, which can only be provided by locally licensed architects of Chinese Taipei. (3) A services provider is required to obtain the architect license of Chinese Taipei and practice as a sole practitioner or jointly practice with others. Architect certification practice is required to be performed by natural persons. (4) Unbound except as indicated in the horizontal section. In addition: (a) A foreigner who has obtained architect license in Chinese Taipei may provide services with the approval from the Ministry of Interior. (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 (3) None (4) Unbound except as indicated in the horizontal section

12 (c) Professional establishment is required. ii. Professional Engineer (8671 **, 8672**, 8673**, 8674**) (1) None, except for services related to professional engineer certification practice, which can only be performed by the locally licensed professional engineer of Chinese Taipei. (2) None, except for services related to professional engineer certification practice, which can only be performed by the locally licensed professional engineer of Chinese Taipei. (3) A foreigner who has obtained the professional engineer license rnay practice as a sole practitioner or jointly practice with others. Professional engineer certification practice is required to be performed by natural persons. (4) Unbound except as indicated in the horizontal section. In addition: (a) Foreigners who have obtained the professional engineer license may practice with the approval from the competent authority (b) Professional establishment is required. 1 (1) None (2) None (3) None (4) Unbound except as indicated in the horizontal section iii. Engineering Consultancy Services (excluding the architect and professional engineer certification services) (1) (2) (3) (4) None None None Unbound except as indicated in the horizontal section (1) (2) (3) (4) None None None Unbound except as indicated in the horizontal section 5The usual documents will be reviewed.

13 cn CD 41 D Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) -Presence of natural persons (i) Veterinary Services (932) (1) None, except for services related to the prescription and diagnosis which shall be performed by the veterinarian who has obtained the veterinarian license and practice permit from Chinese Taipei. (2) None (3) (a) Establishment of an office is required. (b) Access is restricted to natural persons who have obtained the license of veterinary in Chinese Taipei, or obtained the license of veterinary assistant and have one of the following verification documents: i. Practising as a veterinary assistant for at least 4 years; or ii. undertaking veterinary-related works for at least 5 years. (c) being a member of the professional association is required. (4) Unbound except as indicated in the horizontal section. In addition: (a) Foreigners practising veterinary works are required to obtain veterinary license or veterinary assistant license in Chinese Taipei. (b) Establishment of an office is required. (1) None (2) (3) None None (4) Unbound except as indicated in the horizontal section

14 CD C B. Computer and Related (1) None (1) None Services (excluding the (2) None (2) None computer airline (3) None (3) None reservation system (4) Unbound except as indicated in the (4) Unbound except as indicated in the services) horizontal section horizontal section (841, 842, 843, 844, 845, 849) C. Research and (1) None (1) None Development Services (2) None (2) None (851, 852, 853) (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section E. Rental leasing Services without Operators (b) Concerning Aircraft (1) None (1) None (excluding cabotage) (2) None (2) None (83104**) (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (d) Concerning Other (1) None (1) None Machinery and (2) None (2) None Equipment ( (3) None (3) None 83109) (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (e) Other (832) (1) None (1) None (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section S

15 cn In 0 U Sector or subsector Limitations on market access Limitations on national treatment fadditionai commitments F. OTHER BUSINESS SERVICES (a) Advertising Services-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 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 above business may undertake the following works: i. writing. editing. translating. ii. iii. iv. compiling, broadcasting, directing, producing and hosting programs in foreign language; introducing new technology; art performance; and acting as the chairman of a board of directors, the general manager, or the responsible personnel of an operation department. (1) (2) (3) (4) None None None Unbound except as indicated in the horizontal section

16 o (c) Foreigners employed by the business my not exceed 10% of its total employees, subject to the maximum of 9 persons. - Other Advertising (1) None (1) None Services (871**) (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (b) Market Research and (1) None (1) None Public Opinion Polling (2) None (2) None Services (864) (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (c) Management Consulting (1) None (1) None Services (865) (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (d) Services Related to (1) None (1) None Management Consulting (2) None (2) None (866) (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (e) Technical Testing and (1) None (1) None Analysis Services (8676) (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section

17 6The requirements are as follows: a. Having experience in the placement of personnel for more than 5 years; and b. Having no record of being punished by authorities of its home country or other countries for causes related to employment services in the most recent 3 years. 0 o Sector or subsector Limitations on market access Limitations on national treatment Addifional commitments (h) Services Incidental to (1) None (1) None Mining (883,5115) (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (i) Services Incidental to (1) None (1) None Manufacturing (excluding (2) None (2) None CPC publications (3) None (3) None and printings) (4) Unbound except as indicated in the (4) Unbound except as indicated in the (884**, 885) horizontal section horizontal section (k) Placement and Supply (1) Unbound (1) Unbound Services of Personnel (2) Unbound (2) Unbound (limited to CPC 87201, (3) (3) None 87202, 87203, 87204, (a) A foreign supplier may only establish the 87205, 87206, 87209) branch in Chinese Taipei. (b) Investors are required to meet certain qualifications.6 (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (m) Engineering Related (1) None (1) None Scientific and Technical (2) None (2) None Consulting Services (3) None (3) None (8675) (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section

18 cd DO \ > D Sector or subsector Limitations on market access Limitations on national treatment _Additional commitments (n) Maintenance and Repair (1) None (1) None of Equipment (633, (2) None (2) None ) (excluding (3) None (3) None maritime vessels, aircraft (4) Unbound except as indicated in the (4) Unbound except as indicated in the and other transport horizontal section horizontal section equipment) (o) Buildings Cleaning (1) Unbound* (1) Unbound* Services (874) (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (p) Photographic Services (1) None (1) None (875) (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (q) Packaging Services (876) (1) None (1) None (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (r) Publishing (excluding (1) None (1) None printing services) (2) None (2) None (88442) (3) None (3) Import and export of publications will be reviewed by the government Information Office (GIO) of the Executive Yuan. (4) Unbound except as indicated in the horizontal section. In addition: (4) Unbound except as indicated in the horizontal section. In addition, residence in Chinese Taipei is required for a publisher and an editor.

19 P lu o s Z ~ (a) The publishing business may employ the foreigners in one of the following situations: 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 above businesses may undertake the following works: i. writing, editing, translating and compiling in foreign language for newspapers and magazines; ii. editing and translating foreign language texts for books publishers; iii. producing, composing and introducing technical works of new equipment for audio publications; and iv. acting as a publisher or an editor. (c) The business may employ foreigners up to 10% of its total employees, subject to the maximum of 9 persons. (s) Convention Services (1) None (1) None (87909**) (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section

20 CD 2. COMMUNICATION SERVICES B. Land-based Courier (1) None (1) None Services (7512**) (2) None (2) None (excluding courier (3) None, except for the in-land transport (3) None services involving any services prior or subsequent (4) Unbound except as indicated in the (4) Unbound except as indicated in the movement by air, and horizontal section horizontal section excluding letters, postal cards or other papers having the nature of correspondence)

21 Page 21 Spec(94)37/Rev.1 C. Telecommunication (1) None (1) None Services (limited to (2) None (2) None value-added services) (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the (h) Electronic Mail horizontal section horizontal section (7523**) (i) Voice Mail (7523**) (j) On-line Information & Data Base Retrieval (7523**) (k) Electronic Data Information (EDI) (7523**) (n) On-line Information and/or Data Processing (843**) (o) Others - Remote Transactions - Electronic Bulletin Board - Word Processing and Editing

22 Page22 Spec(94)37/Rev.1 D. (a) Audiovisual Services 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 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 in the above business may undertake the following works: (1) (2) (3) (4) None None None Unbound except as indicated in the horizontal section

23 UQ (I o 1 -~~~~~~~~~~~~ i. writing, editing, translating, compiling, broadcasting, directing, producing and hosting programs in foreign language; ii. introducing new technology; iii. art performance; and iv. acting as the chairman of a board of directors, the general manager, or the responsible personnel of an operation department. (c) Foreigners employed by the business may not exceed 10% of its total employees, subject to the maximum of 9 persons. ii. Motion Picture Production and Distribution Services (excluding video tape production and distribution services) (961 1**) (1) None (2) None (3) None, except that (a) Each foreign motion picture imported is restricted to a maximum of 16 duplicates (copies). (b) The Japanese motion pictures imported are subject to a quota of 35 pictures a year. (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) (2) (3) None None None (4) Unbound except as indicated in the horizontal section.

24 Page24 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 above businesses may undertake the following works: i. editing, directing and conducting technical works of motion picture production; ii. distributing the movies issued by such motion picture business; iii. art performance; and iv. acting as the chairman of a board of directors, the general manager, or the responsible personnel of an operation department. (c) Foreigners employed by the business may not exceed 10% of its total employees, subject to the maximum of 9 persons. Spec(94)37/Rev.1

25 Page25 Spec(94)37/Rev.1 Sector or subsector (b) Motion Picture Projection (9612**) (1) (2) (3) None None None Limitations on market access (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 twenty million New Taiwan dollars, albeit the business has been established for less than one year. (b) Foreigners employed by the above businesses may undertake the following works: i. conducting technical works related to the introduction of new equipments; and ii. acting as the chairman of a board of directors, the general manager, or the responsible personnel of an operation department. iii. Foreigners employed by the business may not exceed 10% of its total employees, subject to the maximum of 9 persons. Limitations on national treatment (1) None (2) None (3) The total number of location for screening a singular motion picture may not exceed 6 in one municipality and not exceed 4 in one county (city). (4) Unbound except as indicated in the horizontal section Additional commitments

26 CD C 2 ec (c) Radio and Television Services (9613) (1) None (2) None (1) At least 70% of the radio and television programs shall be produced by the program suppliers of Chinese Taipei. (2) None (3) Unbound (3) (a) At least 70% of the radio and television programs shall be produced by the program 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.

27 Re ~~~~~~~~~~~~~~~~. (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; 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 paidin 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. (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 and residence in Chinese Taipei.

28 CD c3 ao Ii (b) Foreigners employed by the above businesses may undertake the following works: i. writing, editing, translating, broadcasting and directing in foreign languages, and producing and hosting foreign language programs; ii. introducing new technology; iii. art performance; and iv. acting as the responsible personnel of an operation department in the radio or television broadcasting business. (c) Foreigners employed by the business may not exceed 10% of its total employees, subject to the maximum of 9 persons. 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. i~~~~~~~~~~~~~~~~~~~~~~~~~~~

29 7The employed foreigners are required to meet one of the following qualifications: (1) graduation from related departments in a college and having experience in related technical works for more than 2 years; (2) graduation from related departments in an advanced vocational school and having experience in related technical works for more than 5 years; or (3) having taking vocational training courses or having special skill, and having the proof of experience in related technical works for more than 5 years. Page29 Spec(94)37/Rev.1 3. CONSTRUCTION AND RELATED ENGINEERING SERVICES ( ) (1) Unbound* (1) Unbound* (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section. In addition, a horizontal section construction business may employ foreign architects and construction technicians who meet certain qualification requirements. Foreign technicians employed in each construction shall not exceed 5 persons, and the total foreign employees shall not exceed one-third of the business' total employees.

30 P3 d QQ CD 4. DISTRIBUTION SERVICES A. Commission Agents' (1) None (1) None Services (621) (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section B. Wholesale Trade (1) None (1) None Services (excluding (2) None (2) None agricultural product, (3) None (3) None tobacco and alcoholic (4) Unbound except as indicated in the (4) Unbound except as indicated in the products, medicine, horizontal section horizontal section firearms and military equipment, chemicals, and cosmetics) (622) C. Retailing Services (631, (1) None (1) None 632, 6111, 6113, 6121) (2) None (2) None (excluding agricultural (3) None (3) None product, tobacco and (4) Unbound except as indicated in the (4) Unbound except as indicated in the alcoholic products, horizontal section horizontal section medicine, firearms and military equipment, chemicals, and cosmetics) D. Franchising (8929) (1) None (1) None (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section

31 Page 31 Spec(94)37/Rev.1 Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons E. Other (1) None (1) None (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section

32 Page32 Spec(94)37/Rev.1 6. ENVIRONMENTAL SERVICES (940) A. Sewage Services (9401) (1) Unbound* (1) None (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section B. Refuse Disposal Services (1) Unbound* (1) None (9402) (2) None (2) None (3) None (3) None (4) Unbound, except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section C. Sanitation and Similar (1) Unbound* (1) None Services (9403) (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section D. Other (9404,9405,9409) (1) Unbound* (1) None (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section

33 Page33 Spec(94)37/Rev.1 7. FINANCIAL SERVICES A. Insurance and Insurance Related Services (a) Direct Insurance: i. Life Insurance Services and ii. Non-life Insurance Services: (1) (2) (3) (a) Unbound Unbound 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. (c) Prior approval from the authority is required for providing insurance services. In particular, approvals are required in the following instances: the establishment of an insurance institution, its branches, and the provision of new insurance services. (1) (2) (3) (a) Unbound Unbound 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: i. They have operated the same type of insurance business for more than ten years, and have not yet established a branch within the territory of Chinese Taipei ii. Their non-life insurance's net policy premium income for the previous year was above an amount equivalent to NT$ ten billion, or their life insurance's total assets are above an amount equivalent to NT$ fifty billion.

34 Sector or subsector Limitations on market access 1~~~~~~~~~~~~~ Limitations on national treatment Additional commitments iii. They are with good record of underwriting, management, and investment results in the last three years. iv. They do not have any serious violation record for which they have been penalized by the insurance supervision agency of said country in the last five years. > an OQ c (b) Foreign insurance can apply for setting up branch offices to operate insurance business in Chinese Taipei with the following qualifications: i. The paid-up 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 lat 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. In the last five years, the foreign company has not any penalty record and certified by its insurance authority.

35 vi. In the last three years they did not operate or involve in severely dishonest or improper activities, that demonstrate their being unsuitable to operate insurance business in Chinese Taipei. vii. 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 NT$ fifty million. Page 35 Spec(94)37/Rev.1 Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section. In addition, the horizontal section. foreigners employed by an insurance institution may not exceed 10% of its total employees and the foreign employees shall meet certain qualification requirements. With the prior approval of the MOF, an insurance institution may employ foreigners without subject to the 10% ceiling. (b) Reinsurance and (1) None (1) Ceding insurers are required to reinsure Retrocession Services: with a priority given to the Central Reinsurance Corporation. (2) None (2) None (3) Unbound (3) Unbound

36 Page36 Spec(94)37/Rev.1 (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section. In addition, the horizontal section foreigners employed by an insurance institution may not exceed 10% of its total employees and the foreign employees shall meet certain qualification requirements. With the prior approval of the MOF, an insurance institution may employ foreigners without subject to the 10% ceiling. (c) Insurance Intermediary (1) Unbound (1) Unbound Services: (including (2) Unbound (2) Unbound agent, broker, adjuster (3) (3) None and insurance solicitor (a) The MOF may approve foreign insurance services) agent, broker, and adjuster companies to set up branch offices to operate the same kind of business that they have operated in their home countries. (b) The foreign insurance agent, broker, and adjuster companies should operate the same business over 5 years outside the territory of Chinese Taipei. (c) 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.

37 Page37 Spec(94)37/Rev.1 (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section. In addition: horizontal section (a) One who has obtained an agent, broker, and adjuster qualification certificate may not practice business in the name of individual. (b) The foreigners employed by an insurance institution may not exceed 10% of its total employees and the foreign employees shall meet certain qualification requirements. With prior approval of the MOF, an insurance institution may employ foreigners without being subject to the 10% ceiling. (d) Insurance Auxiliary (1) Unbound (1) None Services: (including (2) Unbound (2) None claim settlement, (3) Unbound (3) Unbound actuarial services) (4) Unbound except as indicated in the (4) Unbound excep as indicated in the horizontal section. In addition, the horizontal section foreigners employed by an insurance institution may not exceed 10% of its total employees and the foreign employees shall meet certain qualification requirements. With prior approval of the MOF, an insurance institution may employ foreigners without being subject to the 10% ceiling.

38 Page38 Spec(94)37/Rev.1 (7 B. Banking and Other (1) Unbound (1) Unbound Financial Services (2) Unbound (2) Unbound Excluding Insurance (3) Provision of financial services requires (3) Unbound with respect to subsidies prior approval from the authority; in particular, approvals are required in the following instances: the establishment of a financial institution, its branches, representative offices or ATMs, definition of a financial institution's business scope and the provision of new financial services. Such approvals are unbound except as indicated below. (a) Minimum capital or remitted-in working capital is required for different types of financial institutions. (b) The following financial institutions shall be incorporated as companies limited by shares: banks, bills finance companies and foreign exchange brokers. \ :

39 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 intending to engage in foreign exchange business shall obtain the approval of the Central Bank. A bank engaging in foreign exchange business is subject to foreign liability limits and foreign exchange over-sold and overbought 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 deposit taking, managing property entrusted by a member of the public or providing foreign exchange services for domestic and foreign customers. CD C D -J (c) Commercial Banks:

40 Page40 Spec(94)37/Rev.1 (d) 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 in sound operation may apply to establish an additional branch 2 years after the establishment of its first branch. (e) 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.

41 Spec(94)37/Rev.1 Page 41 (f) Trust Investment Companies: New entry is prohibited; foreign investment ceiling is 40% in a company. (g) Foreign exchange brokers: Investment in foreign exchange brokers is subject to the following restrictions: i. Foreign investment is limited to money brokers only and either 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 financial institution is limited to 10% of the ownership share. iii. investment by each domestic party other than domestic financial institutions is limited to 20% of the ownership share.

42 Spec(94)37/Rev.1 Page 42 (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section. In addition: horizontal section (a) the foreign personnel employed by a financial service supplier may not exceed 10% of its total personnel, but at least one foreign personnel may be employed. And they shall meet one of the following qualification requirements: i. a graduate of related departments of a local or foreign college or a graduate school and having at least 2-year related work experience with satisfactory performance ii. a graduate of senior high school or a person having professional training or passing professional examination with satisfactory grade iii. Specific qualification requirements set for management personnel I

43 Spec(94)37/Rev.1 Page 43 (b) With the approval of the MOF, a financial service supplier may employ the following foreign personnel without being subject to the percentage limit listed above: i. specialists in the operation or legal affairs of international banking; ii. those who are needed for merger, acquisition, or settlement of foreign banks; iii. specialists who are needed for introducing new financial products or projects; iv. financial specialists or scholars who are invited for training persons to become international financial specialists; and v. high ranking officials retired from foreign governments or international financial organizations. (a) Acceptance of deposits and other repayable fund Foreign exchange brokers intending to change their dealers shall obtain the prior approval of the Central Bank. (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: (a) accept foreign currency cash deposits. (3) New Taiwan dollar deposits taken by branches of a foreign bank may not exceed 15 times of its remitted-in working capital, unless its remitted-in working capital is over the requested level (the first branch is 150 million New Taiwan dollars, and an additional branch is 120 million New Taiwan dollars each).

44 Spec(94)37/Rev.1 Page 44 (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 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. Foreign currency loans are not allowed to be converted into New Taiwan dollars. (c) Financial leasing (3) None (3) None (d) Payment and money (3) (3) None transmission services (a) Provision of credit card services requires the prior approval of the Ministry of Finance. (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.

45 Spec(94)37/Rev.1 Page45 Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ (e) Guarantees and commitments (f) Trading for own account or for account of customers in the following instruments: - Money market instruments - Foreign Exchange - Bullion (g) Participation in the issue of short-term bills (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 credit extension or one billion New Taiwan dollars, whichever is higher. Guarantees of foreign currency guarantee business are limited to domestic enterprises. (3) The authorized foreign exchange banks when engaging in forward exchange business shall: (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. (3) Banks are not allowed to engage in shortterm bills underwriting and certification business. (3) The balance of commercial paper guaranteed by branches of a foreign bank may not exceed 10 times of their net worth. (3) None (3) None I _ I 4) Presence of natural persons

46 Spec(94)37/Rev.1 Page46 (h) Money broking (3) Foreign exchange brokers are not allowed (3) None to engage in broking business of New Taiwan dollar money market. (i) Trust service (3) Banks are not allowed to receive trust funds of which the principal or interest is guaranteed. (3) None C. All securities and futures sectors (3) The following financial institutions shall be incorporated in the form of a company limited by shares: (a) Futures brokerage firms ( 7 (1) of Foreign Futures Trading Law); (b) (c) Securities investment trust enterprises ( 4 of Rules Governing Securities Investment Trust Fund Enterprises); Securities investment consulting enterprises ( 4 of Rules Governing Securities Investment Consulting Enterprises); (d) Securities depository ( 4 of Rules Governing Securities Depository Enterprises); (e) Securities financing enterprises ( 4 of Rules Governing Securities Financing Enterprises); (f) (g) Securities firms ( 3 of Rules Governing the Incorporation Criteria of Securities Firms); Securities exchange ( 124 of Securities & Exchange Law).

47 Spec(94)37/Rev.1 Page47 (4) The associated persons employed by the following securities related industries must possess legal capacity and the nationality of Chinese Taipei:

48 Spec(94)37/Rev.1 Page48 Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence (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: (a) Securities investment trust enterprises; (b) Securities investment consulting enterprises; (c) Securities depositories; (d) Securities financing enterprises (The provision of 54 of Securities and Exchange Law shall apply mutatis mutandis to any enterprise referred to in 18, 18-1). (e) Securities firms ( 54 of Securities and Exchange Law). - derivative products (1) Unbound (1) Unbound including, but not (2) None (2) None limited to, futures (3) Unbound except that a foreign futures (3) None and options brokerage firms may operate its brokerage business only by establishment of a branch in Chinese Taipei in accordance with the Foreign Futures Trading Law. (4) Unbound except as indicated in the (4) unbound except as indicated in the horizontal section horizontal section 4) Presence of natural persons

49 Spec(94)37/Rev.1 Page49 Sector or subsector Limitations on market access Limitations on national treatment Additional commitinents - transferable (1) Unbound (1) Unbound securities (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (g) Participation in issues of (1) Unbound (1) Unbound all kinds of securities, (2) None (2) Overseas underwriters handling offshore including underwriting securities offering of domestic enterprises and placements agent must be assisted by domestic underwriting (whether publicly or firms in the preparation of the due privately) and provision diligence report. of services related to such issues (3) In accordance with Securities and (3) Unless establishing a representative office Exchange Law, securities business only in Chinese Taipei for a period not less than include brokerage, underwriting, and one year, a foreign securities firm is not dealership. ( 15 of Securities and allowed to set up branch operation in Exchange Law). Chinese Taipei. (SEC's circular 83 Tai-Tsai-Cheng-(2) Feb. 8, 1994). (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section

50 8Banks permitted by the Bureau of Monetary Affairs to engage in the custodial business are allowed to provide such service for collective investment funds. Spec(94)37/Rev.1 Page 50 (i) Asset management, such (1) Unbound (1) Unbound as cash or portfolio (2) None (2) None management, all forms (3) Securities investment trust enterprises: (3) Securities investment trust enterprises: At of collective investment Aggregate foreign equity holding in a least 20% persons of the promoters are management, pension company is subject to the ceiling limitation fund-management institutions or banks fund management, of 49% of the company's total shares; which meet specific qualifications, and the custodial, depository and equity interest in a company held by a application shall be filed by a qualified trust services: single party or related parties is subject to fund-management institution along with a the ceiling limitation of 25%. ( 8(1) of cooperation plan setting out the terms and Rules Governing Securities Investment conditions for the transfer of management Trust Fund Enterprises). technology. ( 5 and 10.I.(8) of Rules Banks allowed to be promoters of securities Governing Securities Investment Trust investment trust enterprises are limited to Fund Enterprises). those experienced in international finance, securities or trust business, and ranked among top 200 in the world in terms of its capital or assets ( 5 of Rules Governing Securities Investment Trust Fund Enterprises). Securities depository: The establishment of securities depositories are subject to SEC's prior approval, and only one securities depository can be established for one stock market (exchange).8

51 Spec(94)37/Rev.1 Page51 (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (j) Settlement and clearing (1) Unbound except that domestic securities (1) Unbound services for financial issuers may make settlement and clearance assets, including for their securities in Euroclear, Cedal or securities, derivative DTC. products, and other (2) None (2) None negotiable instruments: (3) Only the securities exchange and the (3) The stock of a company type stock securities depository entrusted by the exchange may only be transferred or securities exchange can provide securities pledged to natural persons who have the settlement and clearing services. nationality of Chinese Taipei or juridical persons whose constituents all have the Securities exchange: Only one securities nationality of Chinese Taipei. ( 128 of the exchange can be established in each Securities and Exchange Law). geographical area. ( 95 of the Securities and Exchange Law) Securities depository: Only one securities depository can be established in one exchange. ( 3 of Rules Governing Securities Depository Enterprises). (4) Unbound except as indicated in the horizontal section (4) Unbound except as indicated in the horizontal section

52 1. The new financial services that can be provided by domestic securities and futures brokerage firms are limited to those approved by the competent authority. All those services provided by local securities/futures firms can also be delivered by foreign securities/futures brokerage firms in the jurisdiction of Chinese Taipei. 2. There is no restriction for a foreign service provider to acquire membership of local self-regulatory institution while the stock of a company type stock exchange may only be transferred or pledged to natural persons who have the citizenship of Chinese Taipei or juridical persons whose constituents all have the citizenship of Chinese Taipei. ( 128 of the Securities and Exchange Law) 3. Banks allowed to do securities or futures business are subject to relevant securities or futures laws and regulations in addition to the aforementioned non-discriminatory limitation imposed for prudential reasons. 4. For the purpose of the schedule in securities business, the terra "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. Spec(94)37/Rev.1 5M Page ED (k) Provision and transfer of (1) None (1) None financial information, (2) None (2) None and financial data (3) None (3) None processing and related (4) Unbound except as indicated in the (4) Unbound except as indicated in the software by providers of horizontal section horizontal section other financial services: (1) Advisory, (1) Unbound (1) Unbound intermediation and other (2) None (2) None auxiliary financial (3) None (3) None services (limited to the (4) Unbound except as indicated in the (4) Unbounded except as indicated in the activities listed in the horizontal section horizontal section Securities and Exchange Law): Footnote

53 Spec(94)37/Rev.1 Page53 9. TOURISM AND TRAVEL RELATED SERVICES - A. (a) Hotel (limited to tourist (1) None (1) None hotel) (excluding food (2) None (2) None and beverage serving (3) Construction of tourist hotels shall be (3) None services) (64110) approved by the tourism authority (4) Unbound, except as indicated in the (4) Unbound except as indicated in the horizontal section. In addition, foreigners horizontal section. In addition, foreigners employed by a tourist hotel shall be employed by a tourist hotel shall be approved by the tourism authority. approved by the tourism authority. (b) Hotels (limited to regular (1) None (1) None hotels) (641) (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section. In addition, foreigners horizontal section. In addition, foreigners employed by hotels shall be approved on a - employed by hotels shall be approved on a case-by-case basis. case-by-case basis. (c) Food Serving Services (1) None (1) None (642) (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section

54 Space(94)37/Rev.1 Page 54 B. Travel Agencies and (1) None (1) None Tour Operators Services (2) None (2) None (7471) (3) (3) None (a) Establishment of a branch by foreign travel business is subject to the approval of the Tourism Bureau.9 (b) The facility that foreign travel business establishes in Chinese Taipei is allowed only in the form of a branch. (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section. In addition, the travel horizontal section. In addition, the travel business may employ foreigners, subject to business may employ foreigners, subject to approval. approval. C. Tourist Guides Services (1) Unbound (1) Unbound (7472) (2) None (2) None (3) Unbound (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section. In addition, a foreigner horizontal section. In addition, a foreigner who intends to be a travel guide shall pass can apply for the travel-guide examination the examination and the training held by only if he has obtained the alien resident the competent authority entrusted by the certificate and has resided for more than Tourism Bureau. six months. 9Tourism Bureau may grant the approval based on local needs.

55 I Spec(94)37/Rev.1 Page 10. RECREATIONAL, CULTURAL AND SPORTING SERVICES (OTHER THAN AUDIOVISUAL SERVICES) I B. News Agency Services (1) None (962) (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: (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 above businesses may undertake the following works: (i) writing, editing and translating foreign language texts; or (ii) acting as a publisher or an editor. (c) Foreigners employed by the business may not exceed 10% of its total employees of the business, subject to the maximum of 9 persons. (1) None (2) None (3) Imports or exports of publications will be reviewed by the Govenment Information Office. (4) Unbound except as indicated in the horizontal section. In addition, residence in Chinese Taipei is required for a publisher and an editor.

56 Spec(94)37/Rev.1 Page TRANSPORT SERVICES C. Air Transport Services (a) Maintenance and Repair (1) Unbound* (1) Unbound* of Aircraft' (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (b) Selling and Marketing of (1) None (1) None Air Transport Services*** (2) None (2) None (3) None (3) The branch office or the representative office of the foreign air carrier is not allowed to apply for being an agent of other foreign air carriers. (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (c) Computer Reservation (1) None (1) None System (2) None (2) None (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section.as defined in the Annex on Air Transport Services. As defined in the Annex on Air Transport Services.

57 Spec(94)37/Rev.1 Page 57 E. Rail Transport Services (a) Passenger Transportation (1) Unbound* (1) Unbound* (7111) (2) None (2) None (3) Unbound (3) Unbound (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (b) Freight Transportation (1) Unbound* (1) Unbound* (7112) (2) None (2) None (3) Unbound (3) Unbound (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (d) Maintenance and Repair (1) None (1) None of Rail Transport (2) None (2) None Equipment (8868**) (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section

58 Spec(94)37/Rev.1 Page 58 F. Road Transport Services (a) Passenger Transportation (1) Unbound* (1) Unbound* (7121, 7122) (2) None (2) None (3) Unbound (3) Unbound (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (b) Import and Export of (1) Unbound* (1) Unbound* Containerized Freight (2) None (2) None that has an origin or (3) Unbound; planning to allow the branch (3) The scope of the service is restricted to the destination outside of office of a foreign shipping carrier to import/export of containerized cargoes Chinese Taipei operate with motor vehicles in the inland (71233**) freight transportation of containerized cargoes for imports or exports. (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section (d) Maintenance and Repair (1) None (1) None of Road Transport (2) None (2) None Equipment (6112, 8867) (3) None (3) None (4) Unbound except as indicated in the (4) Unbound except as indicated in the horizontal section horizontal section

59 Spec(94)37/Rev.1 Page 59 DRAFT MFN EXEMPTIONS LIST OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (6 September, 1994 draft)

60 Spec(94)37/Rev.1 Page60 DRAFT MFN EXEMPTIONS LIST OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (6 September, 1994 draft) Sector or subsector Description of measure indicating its Countries to which the Intended Conditions creating the need for the exemption inconsistency with Article Il measure applies duration ALL SECTORS Real Estate All countries Indefinite Reciprocity Foreign nationals or entities are not permitted to acquire interest in land, if their home countries do not grant reciprocal treatment to nationals or legal entities of Chinese Taipei. I

61 GENERAL AGREEMENT ON TARIFFS AND TRADE RESTRICTED Spec(94)37/Rev.2* 14 December 1994 ( ) 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

62 Spec(94)37/Rev.1 Page 2 DRAFT SCHEDULE OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU CONCERNING INITIAL COMMITMENTS ON TRADE IN SERVICES (November 7, 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.

63 DRAFT SCHEDULE OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU CONCERNING INITIAL COMMITMENTS ON TRADE IN SERVICES (b) Direct purchase of stocks in Chinese Taipei's security market is restricted to foreign institutional investors',and is subject to the following limitations: i. any foreign institutional investor may hold up to 5% of the total issued stocks of a listed company; and Spec(94)37/Rev.1 Page 3 (November 7, 1994 draft) 1. HORIZONTAL COMMITMENTS All Sectors (except as Investment indicated otherwise in specific sectors) (3) (a) Foreign business and individuals may invest in Chinese Taipei according to the "Stahute for Investment by Foreign Nationals". 1. 'Foreign institutional investors' means the following institutional investors: a) foreign banks; b) insurance companies; c) asset management institutes, and d) other institutional investors.

64 Page Spec(94)37/Rev.1 4 Sector or subsector Limitations on market access Limitations on treatment national Additional commitments ii. the foreign institutional investors together may hold up to 10% of the total issued stocks of that company. Limitation on treatment 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.

65 Spec(94)37/Rev.1 Page5 1 (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. Entry and Temporarv Stav 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 (4) Unbound except for measures concerning the categories of natural persons referred to in the market access column.

66 Spec(94)37/Rev.1 Page6 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 for Investment by Foreign Nationals".

67 Sector or subsector Limitations on market acccss Limitations on national treatment Additional commitments 9~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C 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 licenced professions.)

68 ¹The aggregate ceiling for such remittance is currently set at US$13 billion. However, the ceiling will be from time to time reviewed and revised, taking into account the actual amount of foreign capital investing in the securities market, money supply, inflation rate and other related factors. Spec(94)37/Rev.1 Page 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. Foreign Exchange Regulation Aggregate amount of inward remittance for foreign portfolio investment in securities listed in Chinese Taipei stock market is limited.'

69 Spec(94)37/Rev.1 Page9 Il. SECTOR-SPECIFIC COMMITMENTS 1. BUSINESS SERVICES A. Professional Services a) Legal Services(861**) i. Legal Services (1) Access is restricted to natural (1) (limited to qualified persons. lawyers under the laws of Chinese (2) Access is restricted to natural Taipei) persons. (3) Access is restricted-to natural (3) persons. Establishment of law firm in the form of sole proprietorship or partnership is required. (4) Unbound except as indicated in the (4) Unbound except as indicated in horizontal section. In addition, the horizontal section. establishment of law firm in the form of sole proprietorship or partnership is required.

70 Page 10 Spec(94)37/Rev.1 ii. Consultancy on home country law of, 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: 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. (1) Access is restricted to natural persons. (2) Access is persons. (3) Access is restricted to natural persons. restricted to natural 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) (3) Unbound except as indicated in the horizontal section. (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. (3) (a) The service provider is not permitted to employ or jointly practice with licensed lawyers of Chinese Taipei. (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: