Goto Main Content
:::

Select Folders:

Regulations Governing Applications for the Establishment of Free Trade Zones CH

Announced Date: 2022-08-17
Content:
1. Promulgated on September 19, 2003.
2. Amendment to Article 10 promulgated on February 26, 2009.
3. Amendment to all Articles on January 15, 2010.
4. Amendment to Articles 4, 5, 6, 11, and addition of 7-1 promulgated on October 3, 2011.
5.Amended on July 23, 2013
6. Amendment to Articles 6, 9, 11,12,13 on August 17, 2022
Article 6
The contents of the plans of container control as stipulated in Subsections 4 of the preceding Article shall include the setting up of appropriate inspection points and the following control/regulatory mechanisms and/or facilities:
1.Automatic electronic data correlation, verification and transmission systems: The systems shall be capable of automatically correlating and verifying various electronic data related to the personnel, vehicles, and containers (cargo) entering into and departing from the FTZ, and the relevant transporting vouchers/certificates, and having the foregoing dynamic data transmitted via associated links to the container (cargo) status database.
2.Container (cargo) transport control/regulatory mechanisms: Technological facilities or other controlling/regulatory mechanisms shall be set up for controlling/regulating the movement of containers/cargo between a FTZ and any other FTZs or controlled areas in sea/air ports so as to effectively monitor information on the routing and transportation status of containers/cargo entering into and departing from the FTZ. Otherwise the containers/cargo shall be transported by the means of bonded transportation registered with the Customs ; the means of bounded transportation shall cooperate and comply with the provisions set forth in Article 25 of the Customs Act and the Regulations Governing the Means of Bounded Transportation In the absence of the foregoing transport controlling/regulating mechanisms, the containers/cargo shall not be released from the FTZ until the completion of customs clearance procedures.
3.Abnormal information processing mechanism: This mechanism shall, upon occurrence of abnormal conditions detected by the controlling/regulating systems set forth in the preceding two subsections, be capable of indicating such abnormal information and informing relevant parties for handling
Subject to the provisions set forth in the preceding Paragraph, in the event that a piece of land described in Subsection 5, Paragraph 1, Article 2 hereof is used for establishing an FTZ, the electronic tracking and controlling equipment shall be set up in accordance with Subsection 1, Article 3 of the Act to perform overall cargo status tracing containers/cargo entering or departing from the FTZ.
Examination mechanisms at various levels shall make strict examination of the inspection points and controlling/regulating mechanisms and facilities set up pursuant to the provisions set forth in the preceding two paragraphs by the FTZ to ensure that the controlling/regulating activities performed by them with regard to personnel, vehicles and containers/cargo entering and departing from the FTZ meeting the basic requirements for speed and convenience, maintenance of security, and crime prevention.
The relevant vouchers, certificates or electronic data as set forth in Paragraphs 1 and 2 shall be retained for a period of one year by the applicant, and may be inspected by the management authority of the FTZ.
The appropriate inspection points required can be substituted by the container freight stations in the FTZ or stevedoring warehouses in port areas. The applicant shall coordinate with local Customs Offices and the management authority for planning container (cargo) control/regulatory mechanism.

Article 9
The following examination procedures shall be followed by the management authority of the FTZ of a sea/air port after accepting an application for the establishment of a FTZ:
1.Preliminary examination shall be completed within 30 days from the day following the date on which all application documents and certificates accepted by it are duly received and public hearing is held
2.When the application has passed the preliminary examination, it shall be reported and forwarded to the administrated government authorities in charge of the relevant end enterprises for its further review and examination. If the preliminary examination result reveals that the application does not satisfy the qualification requirements or conditions for demarcation and establishment, or there is managerial difficulty, the application shall be dismissed.
The management difficulties set forth in Paragraph 3, Article 7 of the Act shall refer to any of the following circumstances:
1.Where the transport operation capacity of the said airport or seaport has become saturated and there is no expansion plan;
2.Where an appropriate organizational adaptation plan of the management authority cannot be submitted;
3.Where factors destructive to the execution of the management authority’s duties as set forth in Paragraph 1, Article 9 of the Act are expectable.

Article 11
The management authority of the FTZ approved and designated by the Executive Yuan shall, in accordance with the provisions set forth in Paragraph 2, Article 45 of the Act, draw up the relevant schedule of standard charges, which shall thereafter be submitted to the said administrated government authority in charge of the relevant end enterprises for its approval and shall be promulgated after being issued the operation permit.
If the application for the establishment is disapproved by the Executive Yuan, the administrated government authority in charge of the relevant end enterprises shall inform the applicant in writing of such decision.

Article 12
After approval for the establishment of an FTZ, the applicant shall proceed to carry out development work in accordance with the approved feasibility planning report, the operation plan, and the management plan authorities in charge of the relevant end enterprises concerned.
In case of any change in the development plan, an application for such change shall be filed along with documents specified in Article 4 (only the changed part)with the administrated government authorities in charge of the relevant end enterprises for their approval and filed on record with the Executive Yuan.
Where the change in the development plan under the preceding Paragraph involves a change in its general objectives, or an adjustment of the application for establishment area or the schedule is more than one-third in the planned area or schedule, the administrated government authorities in charge of the relevant end enterprises shall file a report of the case stating therein the causes of such change with the Executive Yuan for its approval.
Where the change in the development plan under Paragraph 2 of this Article involves Subsections 4 to 6, Article 5, or Subsection 3, Article 7, an application for such change shall be filed along with documents with the management authority for their approval and filed on record with the administrated government authority in charge. However, if the management authority acts as an applicant, it shall apply to the administrated government authority in charge for approval.
Where the change in the development plan under Paragraphs 2 and 4 of this Article involves the functional duties of the government authorities in charge of other end enterprises, the administrated government authorities in charge of the relevant end enterprises shall first consult with the foregoing government authorities in charge of such other end enterprises for their respective comments

Article 13
In the event that the applicant fails to complete the development plan in accordance with the approved development and construction schedules, and further fails to obtain an operation permit before the lapse of one(1) year from the expiration date of the whole or any part of the development plan, the administrated government authorities in charge of the relevant end enterprises may order the applicant to make necessary rectification within a given time limit; and if no rectification is made or the rectification made is found ineffective upon expiry of the said time limit, depending on the circumstances, the administrated government authority in charge may request the Executive Yuan to annul the previous approval granted, or the original approval authority may annul the previous approval granted.
For execution of the order to effect improvement within a given time limit under the preceding Paragraph, a notice in writing shall be given to the applicant, containing the following particulars:
1.Specific facts of the defect(s)found;
2.Deadline date for rectification of the defect(s);
3.Standards to be met after rectification of the defect(s); and
4.Action to be taken in the event of further failure to rectify the defect(s).