TAIWÁN, PENGHU, KINMEN Y MATSU. Original: TAIWAN, PENGHU, KINMEN ET MATSU- Spec(94)37. Compromisos iniciales sobre el comercio de servicios

Transcription

1 GENERAL AGREEMENT ON TARIFFS AND TRADE ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMERCE ACUERDO GENERAL SOBRE ARANCELES ADUANEROS Y COMERCIO RESTRICTED Spec(94)37 28 September 1994 ( ) Original: Englïsh/anglais/inglés ACCESSION OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN. PENGHU. KINMEN AND MATSU Initial Commitments on Trade in Services 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 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. ADHESION DEL TERRITORIO ADUANERO DISTINTO DE TAIWÁN, PENGHU, KINMEN Y MATSU Compromisos iniciales sobre el comercio de servicios 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.

2 ) cn no rd O DRAFT SCHEDULE OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU CONCERNING INITIAL COMMITMENTS ON TRADE IN SERVICES (September 6, 1994 draft) - Notes: i) The classification of sectors is bases on the 1991 provisional Central Product Classification(CPC) of the Unites 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 indlicates 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.

3 DRAFT SCHEDULE OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU CONCERNING INITIAL COMMITMENTS ON TRADE IN SERVICES 0o (September 6,1994 draft) 1. HORIZONTAL COMMITMENTS Ail Sectors (except as Investment indicated otherwise in specific sectors) (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.

4 (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 Iand for residence, shops and factories, churches, schools of the expatriates, chancellery, facilities of nonprofit organizations and graveyard. The areas and geographical location are subject to the limitation by the, local city or county government THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU continued) -.1 i - Sector or subsector LimIitations on market access Limitations on national treatment Additional commitments Acquiring the Rights and Interests in Lands

5 Sector or subsector Limitatioins on market access Limitations on national treatment. Additional commitments according to the laws. Q ' S THE SEPARATE, CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN ANI) MATSU (continued) (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.

6 n THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN ANI) MATSU continued) ~ ilit1-diinlcmntet Entry and Temporary Stay of Natural Persons (4) Unibound, 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 tlhan 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 commercial presence or other similar activities. (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 chairiman 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 bc 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.

7 % THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) (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 eployed 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. 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.

8 THE, SEPARATE, CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU continued) i I il~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- Sector or subsector 1 Limitations on market access Limitations on national treatment Additional commitments 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. (c) Additional Commitments and Limitations A natural person employed by business entities in Chincse 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.

9 Sector or subsector Limitations on market access Limitations on national treatmen Additional commitments Foreign Exchange Regulation 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 U.S. 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 U.S. 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 Chinése Taipei's listed companies; (iii) by investing in beneficiary certificates issued overseas by the Chinesc Taipei's securities investment trust companies: (iv) as institutional investors, by directly investing in the Chinese Taipei's securities market.] THE SEPARATE CUSTOMS TERRITORY OF TAIWAN,AND 'PENGHU,KINMEN AND MATSU (continued) Foreign exchange regulation affection trade in services covered in this schedule will be consistent with Chinese Taipei's obligations under the Special Exchange Agreement with the Contracting Parties.'

10 C 1 D 0 j THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) 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 Iaws 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 ihe 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. (a) Professional establishment restricted to sole proprietorship or partnership is required. (4)

11 '. The employed foreigners are required to meet one of the following qualifications: a. graduation from related departments oif 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. u lu o M 0 J THE SEPARATE CUSTOMS TERROTORY OF TAIWAN, PENGHU, KINMEN AND MATSU continued) rsector or subsector Limitations on market access Limitations on national treatment Additional committments (b) Access is restricted to natural persons who have obtained the license to practice law in Chinese Taipei. 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 Departmnent of Justice. (b) Foreigners may be employed by the attorneys of Chinese Taipei as tleir associates or of-counsels.' (c) Professional establishment is required. b) Accounting, Auditing (1) None, except for services related and Bookkeeping to the Chinese Taipei's accountant- Services certification practice.

12 (D O0 4 J% THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU continued) Sector or subsector _Limitations on market access Limitations on national treatment Additional comnmitments (limited to certified public accountants) (862**) (2) None, except for services related to the Chinese Taipei's accountant certification practice, which can bc provided only by the local certified public accountant of Chinese Taipei. A foreigner wlho has obtained license of certified public accountant in Chinese Taipei is required to practice as a sole practitioner or to jointly practice with others. the horizontal section. In addition: (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.' '. The usual documents will be reviewed.

13 Sector or subsector Limitatioins on market access Limitationis on national treatment Additional commitments cn CD n v 4Si THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU continued) (b) Foreigners employed by an accountant establishment of Chinese Taipei shall meet professional qualification requirements and may not exceed 10% of its total employees. (c) Professional establishment is required. c) Taxation Services (863) i. Tax Certification Services (863**) (1) None, except for services related to Chinese Taipei's tax certification practice. (2) None, except for services related to Chinese Taipei's tax certification practice, which can only be performed by a natural person who has obtained taxattorney certificate in Chinese Taipei.

14 _ THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN ANDMATSU(continued) ( (- Sector or subsector Limitations onmarket access Limitations on national treatment Additional commitments ~~~~~~~E Access is restricted to a natural person who has obtained taxattorney certificate in Chinese Taipei and provides services as a sole practitioner or jointly practice with others. the horizontal section. In addition: (a) A foreigner shall have obtained the tax attorney certificate from Chinese Taipei; (b) Professional establishment is required. Noue. ii. Tax Consultancy (excluding tax certification services supplied by a tax attorney) (863**) the horizontal section.

15 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) 1 -~~~~~~~~~~~~~~~~~~~ d) Architectural and Engineering Services i. Architect (8671**, 8672**, 8673**, 8674**) (1) None, except for services related to the architect certification practice, which can 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. 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. the horizontal section. In addition: cn e (D o

16 '. The 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. 0D DO THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND) MATSU (continued) (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 onethird of its total employees. (c) Professional establishment is required.

17 (D O i THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) 1 1~~~~~~~ Sector or subsector Limitations on market access Liimitations on national treatment Additional commitments 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. A foreigner who has obtained the professional engineer license may practice as a sole practitioner or jointly practice with others. Professional engineer certification practice is required to be performed by natural persons. the horizontal section. In addition:

18 (D M O 4- D THE SEPARATE CUSTOMS TERRTORY 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 iiain onnntoa national treatment raiet Additional commitments -. (a) Foreigners who have obtained the professional engineer license may practice with the approval from the competent authority.' (b) Professional establishment is required. iii. Engineering Consulting Services (excluding the architect and professional engineer certification services) i) Veterinary Services (932) (1) (2) (4) Unbound except as horizontal section. indicated in the (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. (1) (2) (4) Unbound except as indicated in '. The usual documents will be reviewed.

19 ci (D 0,' 'o THE SEPARATE, CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMN AND MATSU (continued) Modes of supply: 1) Cross-border supply 2) Consmption abroad 3) Commercial presence 4) Presence of natural persons (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. practicing 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. the horizontal section. In addition: (a) Foreigners practicing veterinary works are required to obtain veterinary license or veterinary assistant license in Chinese Taipei (b) Establishment of an office is required.

20 wi THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence on 4) Presence of natural persons B. Computer and Related Services (excluding the computer airline reservation system services) (841, 842, 843, 844, 845, 849) c. Research and Development Services (851, 852, 853) the horizontal section. the horizontal section. (D 0 E. Rental/leasing Services without Operators b) Concerning Aircraft (excluding cabotage)(83 104**) the horizontal section.

21 Page21 Spec (94) THE SEPARATE CUSTOMS TERRI TORY OF TAINWAN, PENGHU, KINMEN AND MATSU (continued) d) Concerning Other Machinery and Equipment ( ) the horizontal section. e) Other (832) F. OTHER BUSINESS SERVICES a) Advertising Services -TV and Radio Advertising Services ( the businesses producing or broadcasting/ screening advertisements for TV or radio.) (871**) the horizontal section. the horizontal section. In addition: (a) The TV and radio advertising services businesses may employ foreigners in one of the following situations:

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

23 Space(94) 37 Page23 THE SEPARATE CUSTOMS TERRITORY OFTAIWAN, PENGHU, KINMEN AND MATSU (continued) - Other Advertising Services (871**) (c) Foreigners employed by the business may not exceed 10% of its total employees, subject to the maximum of 9 persons. the horizontal section. b) Market Research and Public Opinion Polling Services (864)- c) Management Consulting Services (865) the horizontal section. the horizontal section. (4) Unbound except as indicated in (4) Unbound except as indicated in

24 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continuede) d) Services Related to Management Consulting (866) e) Technical Testing and Analysis Services (8676) h) Services Incidental to Mining (883,5.115) (1) (2) (4) (1) (2) (4) (1) (2) (4) Unbound except as indicated in the horizontal section. Unbound except as indicated in the horizontal section. Unbound except as indicated in the horizontal section. i) Services Incidental to Manufacturing (excluding CPC publications and printings) (884**, 885) the horizontal section.

25 1. The 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. Page25 Space(94) 37 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) k) Placement and Supply (1) Unbound. (1) Unbound. Services of Personnel (2) Unbound. (2) Unbound. (limited to CPC 87201, 87202, 87203, 87204, (a) A foreign supplier may only 87205, 87206,87209) establish the branch in Chinese Taipei. (b) investors are required to meet certain qualifications.' the horizontal section. m) Engineering Related Scientific and Technical Ccnsulting Services (8675) the i horizontal section.

26 Space (94) 37 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) Page 26 O ~~~~~~ n) Maintenance and Repair of Equipment (633, )(excluding maritime vessels, aircraft and other transport equipment) o) Buildings Cleaning Services (874) the horizontal section. (1) Unbound*. the horizontal section. (1) (2) (4) (1) (2) (4) Unbound except as indicated in Unbound*. Unbound except as indicated in the horizontal sec.:on. Â p) Photographic Services (875) q) Packaging Services(876) the horizontal section. the horizontal section. (1) (2) (4) (1) (2) (4) Unbound except as indicated in Unbound except as indicated in

27 Page27 Spec CD~ (94) 37 t fd - >.ç THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) r) Publishing (excluding printing services) (88442) (1) (2) Import and export of publications will be reviewed by the Government Information Office (GIO) of the Executive 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 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: In addition, residence in Chinese Taipei is required for a publisher and an editor.

28 Spec(94) 37 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN,PENGHU, KINMEN AND MATSU (continued) <D O I Page28 s) Convention Services (87909**) 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 equipments 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. (1) (2) (4) 1 1~~~~~~~~~~~~~~~~~~~~~~ Unbound except as indicated in the horizontal section. (1) (2) (4) Unbound except as indicated in

29 Page 29 Spec (94) 37 THE SEPARATE CUSTOMS TERRITORY OFTAIWAN, PENGHU, KINMEN AND MATSU (continued) Sector or subsector Limitations on market access Limitations on national treatment Additional commitments 2. COMMUNICATION SERVICES B. Land-based Courier Services (7512**) ( excluding courier None, except for the in-land services involving any transport services. prior or subsequent the movement by air, and horizontal section. excluding letters, postal cards or other papers having the nature of correspondence) C. Telecommunication Services (limited to value-added services) the - h) Electronic Mail horizontal section. (7523**) - i) Voice Mail (7523**)

30 Page30 THE SEPARATE CUSTOMS TERRITORYOF TAI WAN, PENGHU, KINMEN AND MATSU (continued) Spec (94) 37 - 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

31 Page31 Spec (94) 37 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) Sector, or subsector Limitations on market access Limitations on national treatment Additional conmmitments D. a. Audiovisual Services i. Video Tape Production and Distribution Services (excluding motion picture production and distribution services) (961 1 **) 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) (4) Unbound except as indicated in

32 P THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) Page 32 O Spec CX (94) 37 D 1~~~~~~~ ii. Motion Picture Production and Distribution Services (excluding video tape production and distribution services) (961 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. (1) (2) (a) None, except that Each foreign motion picture imported is restricted to a maximum of 16 duplicates (copies). ~~~~~~~~~~

33 Page33 Spec (94) 37 THE SEPARATE, CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) (b) The Japanese motion pictures imported are subject to a quota of 35 pictures a year. the horizontal section. In addition: (a) The businesses 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, 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

34 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 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. b. Motion Picture Projection (9612**)

35 Page Spec (94) THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) 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: The total numbers of location for screening a singular motion picture may not exceed 6 in one municipality and not exceed 4 in one county (city).

36 (94) 37 Page36 0,. THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) 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. c) Radio and Television Services (9613) (2) Unbound. (1) At [cast 70% of the radio and television programs shall be produced by the program suppliers of Chinese Taipei. (a) At least 70% of the radio and television programs shall be produced by the program suppliers of Chinese Taipei.

37 Page 37 Spec (94) 37 %,7 j THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN ANID MATSU (continued) the horizontal sectors. 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; (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. 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.

38 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~' =-, Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of matiral persons Sector or subsector Limitations on market access Limitatiolns on national treatment Additional commitments THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) Spec (94) 37D Page 38 ii. the -radio broadcasting station with amplitude modulation has been established for more than one year with the paid-in capital of twenty million New Taiwan dollars or more; or iii. the paid-in capital of the radio broadcasting station is more than fifty million New Taiwan dollars, the paid-in capital of the television broadcasting station is more than four hundred million New Taiwan dollars, albeit it has been established for less than one year. (b) Foreigners employed by the above businesses may undertake the following works: i. writing, editing, translating, broadcasting and directing in foreign languages, and producing and hosting foreign language programs;

39 Page39 Spec (94) 37 THE SEPARATE CUSTOMS TERRITORY OF TAI WAN, PENGHU, KINMEN AND MATSU (continued) 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.

40 Page 40 Spec (94) 37 D n _ THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) 3. CONSTRUCTION AND (1) Unbound*. (1) Unbound*. RELATED ENGINEERING SERVICES ( ) the horizontal section. In addition, a construction business may employ foreign architects and construction technicians who meet certain qualification requirements.1 Foreign technicians employed in each construction shall not exceed 5 persons, and the total foreign employees shall not excecd onethird of the business' total employees. The 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 having taking vocational training courses or having special skill, and having the proof of experience in re!ated technical *vorks for more than 5 years.

41 Page41 Spec(94)37(D i THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) 4. DISTRIBUTION SERVICES A. Commission Agents' Services (621) B. Wholesale Trade Services (excluding agricultural product, tobacco and alcoholic products, medicine, firearms and military equipment, chemicals, and cosmetics) (622) the horizontal section. the horizontal section. (1) (2) (4) (1) (2) (4) Unbound except as indicated in the horizontal section Unbound except as indicated in C. Retailing Services (631, 632, 6111, ) (excluding agricultural product, tobacco and alcoholic products, medicine, firearms and military equipment, chemicals, None the horizontal section. (1) (2) (4) Unbound except as indicated in

42 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 Limitationis on national treatment Additional commitments Page42 Spec(94)37 a THE SEPARATE CUSTOMS TERRITORY OF T'AIWAN, PENGHU, KINMEN AND MATSU (continued) and cosmetics) D. Franchising (8929) 1) the horizontal section. E. Other the horizontal section.

43 Page 43 THE SEPARATE CUSTOMS TERRITORY 0F TAIWAN, PENGHU, KINMEN AND MATSU(continued) 6. ENVIRONMENTAL SERVICES (940) A. Sewage Services (9401) B. Refuse Disposal Services (9402) C. Sanitation and Similar Services (9403) D. Other (9404,9405,9409) (1) (2) (4) (1) (2) (4) (1) (2) (4) (1) (2) (4) Unbound*. Unbound except as indicated in the horizontal section. Unbound*. Unbound except as indicated in the horizontal section. Unbound*. Unbound except as indicated in the horizontal section. Unbound*. Unbound except as indicated in the horizontal section. (1) (2) (4) (1) (2) (4) (1) (2) (4) (1) (2) (4) Unbound except as indicated in Unbound except as indicated in Unbound except as indicated in Unbound except as indicated in

44 DRAFT MFN EXEMPTIONS LIST OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU Spec(94)37 Page44 D O (September 6, 1994 draft)

45 DRAFT MFN EXEMPTIONS LIST OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU Sector or subsector Description of measure indicating its Countries to which the Intended dura- Conditions creating the inconsistency with Article Il measure applies tion need for the exemption ALL SECTORS Real Estate Foreign nationals or entities arc not All countries. Indefinite. Reciprocity. permitted to acquire interest in land, if their home countries do not grant reciprocal treatment to nationals or legal entities of Chinese Taipei. Spec(94)37 Page45 j (September 6, 1994 draft)

46 Page46 Spec (94)37 Qo O THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU(continued) 7. FINANCIAL SERVICES A. Insurance and Insurance Related Services a) Direct Insurance: i. Life Insurance Services and ii. Non-life Insurance Services: (1) Unbound. (2) Unbound. (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 abovementioned information shall be submitted to the MOF for recordation beforehand. (1) Unbound. (2) Unbound. (a) In regard to the establishment of an insurance company, those with foreign insurance companies serving as incorporators shall apply to the MOF for review and consent prior to the filing of application for permission for establishment. The foreign insurance companies referred to in the preceding paragraph shall comply with the following criteria:

47 4 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) ~~~~~~~~ (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. 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. iii. They are with good record of underwriting, management, and investment results in the last three years. Page47 Spec (94)37

48 Page 48 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, Spec (94)37 m KINMEN ~~~~~~~~~~~ ANDMATSU (continued) 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. (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 last three years before application, the business results have been graded as first rank by the

49 Page49 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) ~~~~~~~~. 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. 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. Spec (94)37~~> '.0 4

50 Page (94) Spec <D n THE SEPARATE, CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) ~~ ~~. (c) Foreign insurers can apply for additional branches with the following qualifications: i Ṫhe branch in Chinese Taipei has been over two years. ii. The net worth of the branch which has been established exceeds NT$ fifty million. the horizontal section. In addition, 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 the prior approval of the MOF, an insurance institution may employ foreigners without subject to the 10% ceiling.

51 Page 51 Spec (94) 37 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU(continued) b) Reinsurance and Retrocession Services: (1) Ceding insurers are required to reinsure with a priority given to the Central Reinsurance Corporation. Unbound. Unbound. the horizontal section. In addition, the foreigners employed by an insurance institution may not exceed 10% of its total employees and the foreign employees shall met certain qualification requirements. With the prior approval of the MOF, an insurance institution may employ foreigners without subject to the 10% ceiling.

52 Page52 Spec (94) 37 -l j THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) Sector or subsector Limitations on market access Limitations on national treatment Additional commitments c) Insurance Intermediary Services: (including agent, broker, adjuster and insurance solicitor services) (1) (2) (a) Unbound. Unbound. The MOF may approve foreign insurance agent, broker, and adjuster companies to set up branch offices to operate the (1) Unbound. (2) Unbound. 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 Chinesé Taipei's agent, broker, or adjuster license.

53 D Page 53 Spec (94) 37 i 0 ' THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) Sector or subsector Limitations of market access Limitations on national treatment Additional commitments the horizontal section. In addition: (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.

54 Page54 Spec (94) 37 0 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) d) Insurance Auxiliary Services: (including claim settlement, actuarial services) (1) (2) (4) Unbound. Unbound: Unbound. Unbound except as indicated in the horizontal section. In addition, 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. (1) (2) (4) Unbound. Unbound except as indicated in B. Banking and Other Financial Services Excluding Insurance (1) (2) Unbound Unbound Provision of financial services requires prior approval from the authority; in particular, approvals are required in the following instances: (1) (2) Unbound Unbound Unbound with respect to subsidies.

55 Page55 Spec(94) 37 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) ~ ~~~.L 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 or branches of foreign financial institutions. (b) The following financial institutions shall be incorporated as companies limited by shares: banks, bills finance companies and foreign exchange brokers.

56 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) n (c) Commercial Banks: i. any single person shall not hold shares in a bank in excess of 5 % of the total issued shares of the bank, nor shall persons related to the shareholder hold shares in excess of 15% in the aggregate, unless the approval of the Ministry of Finance has been obtained. ii. A bank 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.

57 - 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. W~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- THE SEPARATE CUSTOMS TERRITORIY OFTAIWAN, PENGHU, KINMEN AND MATSU (continued) (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 priorbusiness-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

58 Page5 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continuedd) Modes of supply: 1) Cross-border supply 2) Consumption. abroad 3) Commercial presence 4) Presence of natural persons Sector or subsector Limitations of market access Limitations on national treatment Additional commitments 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 it company stocks or real estate.

59 THE SEPARTE CUSTOMSTERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) ii. Customers of offshore banking branches are limited to nonresidents and authorized foreign exchange banks. (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 Iimited to 10% of the ownership share.

60 Page60 Spec(94) 37 O [- _w THE SEPARATE CUSTOM TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) iii. investment by each domestic party other than domestic financial institutions is limited to 20% of the ownership share. the horizontal section. In addition: (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.

61 (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 cr products or projects; iv. financial specialists or scholars who are invited for THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) Sector or subsector Limiitations on market access Limitations on national treatment Additional commitments 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.

62 Page62 Spec(94) 37 n _, -- THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINNMEN AND MATSU (continued) training persons to become international financial specialists; and v. high ranking officials retired from foreign governments or international financial organizations. Foreign exchange brokers intending to change their dealers shall obtain the prior approval of the Central Bank. ilf...- a) Acceptance of deposits and other repayable fund 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: 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).

63 (b) Short-term foreign currency financing is available for exportand import-related transactions Only. Ollly,.~~~~~~~~~~~~~~~~~~~~~~~~~~ W >~~~~~~~~~~~~~~~~~~~~~~~~D THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU (continued) (a) accept foreign currency cash deposits, (b) permit the withdrawal of foreign exchange deposits in New Taiwan dollars. b) Lending of all types 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.

64 THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU KINMEN AND MATSU (continued) Sector or subsector Limitations on market access Limitations on national treatment 1 Additional commitments 1~~~~~~ (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. Page 64 Spec(94) 37 C)n _ c) Financial leasing d) Payment and money 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.