Chapter  One: General Principles

Article 1
The regulations are prescribed in accordance with provisions in Paragraph 3, Article 5 of the Statute for the Establishment and Administration of the Export Processing Zone (hereinafter referred to as the Statute).

Article 2
The specified paragraphs in the Regulations are implemented by the departments established by the Export Processing Zone Administration (hereinafter referred to as “the Administration”) and the branches of the Export Processing Zone (hereinafter referred to as “branches) in accordance with provisions in Article 9 of the Statute.

Chapter  Two: Application for Establishment, Change, and Cancellation of Investment Plan and Registration of Business in the Export Processing Zone

Article 3
The establishment, mergers and acquisition, segmentation, cash injection, capital decrease, divestiture, transfer of investment to tax area, establishment of branch in tax area and change of investment plan of business in the Export Processing Zone shall be applied to the Administration or branches, attaching the application form and relevant documents.
Format and number of copies of application form in the previous paragraph required are determined by the Administration.

Article 4
The branches should draft the preliminary opinions regarding applications of establishment, mergers and acquisition, segmentation, cash injection, capital decrease, divestiture, and change of investment plan of business in the Export Processing Zone to the Administration within one week, except for cases which should be approved by the Administration or the branches. The Administration shall grant the approval within one month and inform the applicant of approved contents and the items that should be attended to.

Article 5
As soon as business establishment is approved, the business entity should apply to the Administration or branches for company registration or commerce registration in accordance with relevant provisions.
If there is any change, dissolution, or shutdown that occurred to the aforementioned registration, the application of change, dissolution, or shutdown should be handled within fifteen days starting from the date of occurrence.
When the Administration or branches handles the company registration or commerce registration, one copy of the documents should be sent to the local Tax Administration. Additionally the Administration or branches should announce the registration items after approval is granted.

Article 6
Once the establishment, mergers and acquisition, segmentation, cash injection of business entity is approved, the plan should be completed within two years starting from the approved date of the investment plan. If the plan is unable to start or complete owing to actual difficulties, the business entity may apply to the Administration or branches for postponement before the deadline.

Article 7
Once the business entity is approved to establish a branch within the Export Processing Zone, its accounting title, ledgers, evidence, and report should be separated. Additionally its sale amount should be reported to the local Tax Administration.

Article 8
If the business intends to move to non-bonded area, re-invest in the non-bonded area, or establish branches in the non-bonded area, it should be handled by relevant provisions of the Statute and Company Law or Commerce Registration Law.

Chapter  Three: Land Use and Building

Article 9
Investors applying to establish business in the Export Processing Zone (hereinafter referred to as “the investors”), who reserve public land or building at the Administration or branches, shall pay the down payment and ink the reservation contract according to the following standards:
1. Land down payment: It is calculated on the basis of six months’ rent for the land area.
2. Building down payment: The purchaser should pay 5% of the selling price for reserved building area, and the lessee should pay six months’ rent for the building area.
For reserved public land in the previous paragraph on which there are private buildings, no land down payment and signing of reservation contract is required.
The investors in Paragraph 1 who reserve, rent, or purchase the land or building from a private owner shall prepare the land or building use certificate or other relevant documents upon submitting investment application.
Representatives of the investors in foregoing three paragraphs who reserve and present investment plan on behalf of a corporate entity before the establishment of the corporation shall remark: “Representative of provisional office of the name of corporation to be established (i.e. the company to be established)” under his/her name. The source of capital shall also come from the name of provisional office of the corporation.
If lease and purchase of additional building or land is needed because of cash injection, mergers and acquisition, or expansion of investment plan, provisions of Paragraph 1, Paragraph 2 or Paragraph 3 are applicable to business entities in the Zone.

Article 10
The preference of building allotment is as follows:
1. The preference allotment is granted in accordance with Paragraph 4, Article 12 of the Statue.
2. Owing to expansion, the business entity submits the expansion plan, obtains the approval, and pays the down payment according to provision of the aforementioned Article.
3. If the approval notice of new investment states as soon as the building is about to transfer, then the preference allotment is granted. Yet the business entity must pay the down payment according to provisions of the aforementioned article.
4. If the building used by the business entity is not able to meet the business requirements, then the business entity needs to purchase another building, enter the registration to the Administration or branches, and pay the down payment according to provisions of the aforementioned Article.

Article 11
After an investor makes the down payment, he should submit the investment application within 30 days. If the investor has any legitimate reason, he or she may apply for a postponement at the Administration or branches within the time limit. The time limit may be extended by 30 days, but the extension is limited to once only.
The Administration or branches shall notify the investor in writing 10 days prior to expiration of the said time limit.
An investor may apply for a refund of the down payment without interest prior to the expiration of the time limit, as stated in the first paragraph. The land or building will not be reserved.

Article 12
If the investment application of a business entity in the Zone is not approved, the land or building down payment submitted shall be refunded by the Administration or branches in total and without interest. For those approved for incorporation, the Administration or branches shall inform the applicant of the allotted land or building as reserved, and sign a contract with the applicant pursuant to Article 13. The land or building down payment will then be refunded in total and without interest. If the contract is not signed within the specified period, the paid down payment will be transferred to the national treasury, and any request for refund will not be entertained. Applications for extended deadlines with legitimate reasons may be approved by the Administration or branches. There is no limitation to the number of applications approved; however, the total extended period shall be no longer than one year.
The Administration or branches shall notify the investor in writing 10 days prior to expiration of the said period for contract signing.
If the lease and purchase of additional building or land is needed because of cash injection, mergers and acquisition, or expansion of investment plan, the provisions of the preceding two paragraphs are applicable to the refund or non-refund of the down payment.

Article 13
When the business entity within the Zone leases the land, or when it leases or purchases the building, it should sign the rent and purchase contract according to allotted area within 60 days starting from the notice date by the Administration or branches. Its renting duration should be 20 years maximum, and the contract can be renewed as soon as it expires.
Starting from the contract signing date, the business entity within the Zone should pay the rental or the cost to share the public facility construction expense. After the Administration or branch approves the investment case and before the contract is signed, the expense of land or building use should be traced back to the usage date.
If the business entity within the Zone in the aforementioned paragraph pre-purchases the newly-built building, then the expense is calculated starting from the notice of construction completion.

Article 14
If the business entity within the Zone leases the land to build the building by itself, it should apply to the Administration or branches for building permit within six months according to provisions of Construction Law after the renting contract is inked. After construction license is obtained, the construction should be proceeded in accordance with relevant provisions of Construction Law.

Article 15
If a business entity within the Zone fails to begin building construction and complete the construction as scheduled, or fails to complete construction within the approved investment period, the Administration or branches may terminate the lease of land, and the Administration may cancel its investment application. The paid rent will not be refunded, and the land will be taken back by the Administration or branches for other uses. If construction work or change of the land’s appearance has been made, the foresaid business entity shall restore the original appearance of the land within the specified period. If the business entity fails to restore the original appearance of the land, the Administration or branches may work on its behalf, with the costs attributable to the business entity. However if the construction work or change of the land’s appearance does not hinder other users, the business entity may be free from the restoration responsibility, provided that approval of the Administration or branches has been obtained.

Article 16
If the business entity leases the land or building, it should be restricted to actual business demand. In the lease duration, if part of or all of the leased area are not needed, the business entity should apply to the Administration or branches for refund. The business can not sublease or re-lend to others. If the building’s sublease or re-lending is approved by the Administration or branches, it is beyond this restriction.
The paid rental and public facility construction expense in the aforementioned Paragraph shall not be refunded in the case of return, sub-lease or re-lending.
All buildings of the business entity should be leased or lent to business of approved establishment within the Export Processing Zone. Additionally, the business entity should report to the Administration or branches for its lease or lending. However, in the case of the building’s sub-lease or re-lending by the business entity of incubator services, it will be allowed not to report to the Administration or branches.

Article 17
The business entity within the Zone should apply to the Administration or branches for registration in the transference of business building. When both transaction parties settle the price, the business entity should report to the Administration or branches for future references.

Article 18
The buildings in the Export Processing Zone should adopt inflammable materials which are permanently constructed.

Article 19
The construction line in the Export Processing Zone should be appointed by the Administration or branches.

Article 20
If owing to construction demand, the business entity has to pile up material that may use or ruin public facilities; the business entity should apply to the Administration or branches for approval in advance, and restore the public facilities to its original form before deadline.

Chapter  Four: Labor Safety and Health and Labor Administration

Article 21
The business entity within the Zone should apply to the Administration or branches for check before operation is proceeded regarding its installation of machinery and equipment within building, safety and sanitation facilities, labor conditions, pollution prevention, fire-fighting equipment and other related affairs. The Administration or branches should complete the check within five days after accepting the application. If the check conforms to provisions and implementations are according to investment plan, then the business operation is permitted.
When the business within the Zone is allowed to start operation according to aforementioned provisions, the Administration or branches should conduct the check on a regular or non-scheduled basis. If the check finds out items to be improved, it will be handled according to relevant laws and decrees about labor, fire-hazard, and environmental protection.

Article 22
The business entity should prepare the names, positions and other information of employees on duty, and send this information to police brigade for spot check at any time.

Article 23
The health care of business entity employees is handled by an established health care unit within the business entity. However the business should entrust the health care unit within the Export Processing Zone in dealing with this aspect. Provided that a health care unit is not established within the Zone, the business entity may entrust any health care institutes as desired.
The aforementioned business entity entrusting the health care unit of the Zone should pay health care fee according to the number of its employees. The health care fee should be decided by the Administration.

Chapter  Five: Trade Management

Article 24
The business entity requires the application of certificate of origin in the commodities exportation. It should be handled in accordance with relevant provisions for certificate of origin, as prescribed by the Ministry of Economic Affairs.

Article 25
When the business entity exports commodities; the commodities should be labeled their certificate of origin in accordance with labeling provisions for certificate of origin in the commodity export management measures.
In accordance with aforementioned measures, the application may apply to the Administration or branches for approval in special cases.

Article 26
When business entity exports and imports commodity, it should comply with the commodity export management measures as well as export and import provisions of commodity import management measures. If it’s exported and imported commodities are restricted by promulgation of competent authorities in charge of trading, the business entity should fill out the application of export and import permit, prepare other documents prescribed in the relevant provisions, and apply to the Administration or the branches for approval in accordance with.

Article 27
If the exported commodities are classified by promulgation of relevant authorities in charge of trading as strategic high-tech ones, the business entity should fill out the application of export permit for strategic high-tech commodity, prepare the relevant documents prescribed in the relevant provisions, and apply to the Administration or branches for approval in accordance with provisions for export and import management measures of high-tech commodities.
According to the regulations of exporting country, when the business entity imports commodities, it is necessary to obtain international import certificate, delivery verification certificate and written assurance certificate for strategic hi-tech commodities issued by the R.O.C. government in advance; it should first apply to the Administration or branches for such certificate.

Article 28
In accordance with provisions of foregoing two articles, the business entity could apply for export and import certificates using the online service or information transmitted through e-mail that has record in the computer. This application will be regarded as being handled according to provisions.

Article 29
If the business entity imports commodities from bonded factories, free trade ports, science-based industrial park, agricultural biotechnology park or other bonded areas, it is exempted from applying to the Administration or branches for the import permit except provisions in other laws and decrees. The commodities imported from bonded warehouse should be handled in accordance with provisions of Article 26.
If the commodities of business entity are exported to bonded factories, bonded warehouses, free tread ports, science-based industrial park, agricultural biotechnology park or other bonded areas, they are exempted from applying to the Administration or branches for the export permit except provisions in other laws and decrees.

Chapter  Six: Entry and Exit Management of Personnel and Vehicles

Article 30
If the personnel and vehicles are in and out of the Export Processing Zone, the pass of personnel or the pass of vehicle should be applied to the Administration or branches. If failed to obtain, the pass of personnel or vehicle the guard may refuse its entry and exit. However children under six years-old, class B vehicle, bicycle, visiting personnel approved by the Administration or branches and their vehicles are exempted from applying for the pass.
The employee’s pass of business entity may be entrusted by the Administration or branches to the business entity in issuing by itself.

Article 31
The personnel at the entry and exit should exhibit the pass, while the drivers of all vehicles should hang the vehicle pass at a significant front place of the vehicle. At the exit, the Customs and guard may conduct necessary check.

Article 32
The personnel pass is divided into the following three classifications:
1. Employee pass: It is for the use of employees in the Administration, branches, various destination business entity, business entity, civil organization, and operational or liaison office of manufacturers only.
2. Short-term pass: It is for the use of personnel that is in and out of the Export Processing Zone for the short term.
3. Temporary pass: It is for the use of personnel that is and out of the Export Processing Zone for one day.

Article 33
The vehicle pass is limited to vehicle that is often in and out of the Export Processing Zone and class A vehicle of holding personnel pass in accordance with Paragraph 1 or Paragraph 2 in the aforementioned Article or their family members. Additionally each person can have only one vehicle pass. If the vehicle is temporarily in and out of the Export Processing Zone, the temporary vehicle pass is issued.

Article 34
The issuance and cancellation procedures of personnel pass and vehicle pass are in accordance with the following provisions:
1. Employee pass: The authorities, organizations, or business entities in the Export Processing Zone fill out the application along with two of the employee’s recent passport photos for issuing. The business entity entrusted to issue the employee pass should prepare the name list to the Administration or branches for checking. When the employee resigns, the authorities, organizations, or the business entities should return the pass to the pass issuing Administration or branches or entrusted business entity for cancellation.
2. Short-term pass: The manufacture or civil organization should fill out the name list and application indicating name, gender, position, birth date, address and ID number along with two of the employee’s recent passport photos for issuing for the personnel that is often in and out of the Export Processing Zone within short term. The effective duration cannot exceed half a year. If necessary, the application can be made to pass replacement. When pass effective duration expires or pass receiver does not have to be often in and out of the Export Processing Zone, the pass should be returned to the Administration or branches for cancellation.
3. Temporary pass: If personnel needs to be in and out of the Export Processing Zone for one day, he/she can leave his/her ID document in replacing the temporary pass at the entrance guard office. Upon leaving, his/her ID document is replaced by the temporary pass.
4. Vehicle pass: The vehicle used department should fill out the application along with vehicle license and driver license to the stationed police brigade for examination, then apply to the Administration or branches for issuing and the enclosed documents are returned. If class A vehicle is often in and out of the Export Processing Zone for short term, then short-term vehicle pass is issued. When vehicle is no longer used, the vehicle pass receiving department should return the vehicle pass to the pass issuing Administration or branches for cancellation. When the driver is changed, the application of pass replacement should be made along with original pass. If a vehicle needs to be in and out of the Export Processing Zone for one day, the driver can leave his/her driver license or ID card in replacing the temporary vehicle pass. Upon leaving, his/her driver license or ID document is replaced by the temporary vehicle pass.
The pass receiving department and entrusted department to issue the pass cannot apply the pass for non-employee.

Article 35
The employee pass and vehicle pass are replaced once every two years. The pass receiving department should handle the pass replacement by the end of every two years according to notice of Administration or branches. The replacement is stamped with checking chop, and the new pass will be used in January of next year. The old pass will be returned to pass issuing Administration or branches for cancellation before January 10.

Article 36
When the pass receiver loses the pass, the employer should prove the loss and apply for a new pass. If temporary pass is lost, the original applicant should sign an undertaking and leaves out of the Export Processing Zone.

Article 37
When container truck, dray and other delivery vehicles of entry and exit (hereinafter referred to as “transportation vehicles”), loading and unloading machinery, or shipped commodities enter and leave the Export Processing Zone, they should accept the necessary check by stationed personnel.

Article 38
When transportation vehicles, loading and unloading machinery enter and leave the Export Processing Zone, the driver should fill out “entry registration” at guard post and gets the “exit document” to have signature by receiver and sender. At the exit, the driver should hand over both “exit document” and “entry registration” to guard post and is released from the Export Processing Zone.

Article 39
Except transportation vehicles of entry and entrance, loading and unloading machinery belonging to the business entity of the Zone, they are ordered to leave the Export Processing Zone before 9:00 pm on the evening. If there is justified reason to remain in the Export Processing Zone for overdue operation, the business entity must take the “exit document” to have the chop “it is allowed to leave the Export Processing Zone at time, date and month” by the police brigade before 9:00 pm on that evening.
If transportation vehicles, loading and unloading machinery enter the Export Processing Zone after 9:00 pm to load and unload machinery and is released from guard station, it is regarded as overdue operation. It should handle the application of overdue operation in accordance with provisions in the aforementioned Paragraph.
The police brigade should prepare the registration of vehicle that leaves the Export Processing Zone after designated time for the check of Administration or branches.

Article 40
To maintain smooth traffic flow and traffic safety, transportation vehicles, loading and unloading machinery cannot take up the roads.

Article 41
The business entity should constrain its employees not to carry bonded goods out of the Export Processing Zone without authorization. The business entity should conduct necessary check when the employees leave the factory.

Chapter  Seven: Supplementary Provisions

Article 42
The regulations shall become effective as of the date of its promulgation.
The regulations came into effect upon promulgation, with the exception of the amendment to Article 12, which was amended and promulgated on June 8, 2009 and have been effective since January 1, 2009.