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APEC RULES OF ORIGIN - CHINESE TAIPEI

2.14 CHINESE TAIPEI: NON-PREFERENTIAL RULES OF ORIGIN

2.14.1 OUTLINE OF REGIME

Chinese Taipei has a single set of rules of origin for imported goods, namely "Rules of Origin on Imported Goods". It is applicable to MFN rates, anti-dumping duties, safeguard measures, countervailing duties, import quotas and tariff quotas, trade statistics, marking of origin and government procurement purposes. As for issuance of certificates of origin of goods to be exported, it should follow the "Rules Governing the Issuance of Certificates of Origin of Taiwan Area".

2.14.2 BASIC PRINCIPLES OF NON-PREFERENTIAL RULES OF ORIGIN

According to the "Rules of Origin on Imported Goods," the country/area of origin is defined as the country/area in which the goods have been wholly produced; and where the processing, manufacturing or raw materials of the goods involved two or more countries/areas, the country/area in which the last substantial transformation of the goods had taken place. The definitions of substantial transformation of goods are:

  1. The first six digits of the Customs Import Tariff of the processed or manufactured goods shall be different from those of their parts or materials;
  2. Though the tariff heading under the Customs Import Tariff has not been changed as referred to in the preceding sub-paragraph as a result of manufacturing or processing operations, an important manufacturing process has been completed, or the ratio of added value has exceeded 35% percent.
2.14.3 LEGISLATION AND OTHER RULES/DOCUMENTS Legislation

The "Rules of Origin on Imported Goods" is co-issued by the Ministry of Finance (MOF) and the Ministry of Economic Affairs (MOEA), and both the MOF and the MOEA are responsible for introducing and revising rules/new rules.

Interested parties and persons can gain access to information on the "Rules of Origin on Imported Goods," from official gazettes, public notice boards, and Compendium on Customs Law and Regulations, or by inquiry to the Directorate General of Customs or regional Customs houses.

2.14.4 RESPONSIBILITY FOR CORRECT DETERMINATION OF ORIGIN

Chinese Taipei employs a duty-assessment system on a declaration basis and hence importers are responsible for correctly declaring imports.

The Customs Authority, at the place of importation, determines the country/area of origin of a good at the stage of clearance of a good.

In principle, the country/area of origin of a good is determined on the basis of an importer's declaration. Customs, as necessary, verifies the declaration through the examination of submitted relevant documents and inspection of marking of goods.

2.14.5 RULES OF ORIGIN

Chinese Taipei's "Rules of Origin on Imported Goods" is namely in terms of "goods wholly obtained" and "goods wholly manufactured in the origin country/area."

The definition of "goods wholly obtained or manufactured" shall be:

  1. Mineral products excavated from a given country or area.
  2. Plant products harvested or gathered within a given country or area.
  3. Live animals born and raised within a given country or area.
  4. Products obtained from live animals within a given country or area.
  5. Products obtained from hunting or fishing conducted within a given country or area.
  6. Fishery catch and other products obtained from the sea by a vessel registered in a given country or area, or products made from such fishery catch or other products.
  7. Products extracted from the marine soil or subsoil outside the territorial waters of a given country or area which such country or area has the sole right to exploit.
  8. Used articles or scrap and waste from manufacturing operations collected within a given country or area and fit only for the recovery of raw materials.
  9. Goods produced from products referred to in Sub-paragraphs to above within a given country or area.

Goods Partly Manufactured in the Origin Country/Area and Partly Outside It

(1) In case where two or more countries/areas are involved in the production of the goods, the origin is defined as the country/area in which the last substantial transformation which confers a new character to the goods has been conducted, and furthermore "the substantial transformation which confers a new character to the goods" is provided as follows:

Notwithstanding the provisions of 1 and 2 above, the following operations are not considered to be "substantial transformation which confers a new character to the goods".

(a) Operations necessary for the preservation of goods during the transportation or storage.

(b) Sorting, grading, repackaging and packing operations of the goods for marketing or transportation.

(c) Combination or mixing operations of goods which have not resulted in any important difference in the characteristics of the goods before such combination or mixing and after.

(d) Simple assembling operations.

(e) Simple diluting operations which have not changed the nature of the goods.

The Ad Valorem Percentage Criterion

The ratio of added value, referred to in the proceeding paragraph 2, shall be computed as follows:

(FOB value of exported goods - CIF value of direct and indirect imported raw materials and parts) ÷ FOB value of imported goods = Ratio of added value


2.14.6 OTHER CONDITIONS OR REQUIREMENTS

No other conditions or requirements are provided.


2.14.7 REVIEW PROCEDURES

Any person may file a protest if he/she is not satisfied with disposition concerning determination of origin taken by the Customs Authorities, at the place of importation, in accordance with the provision of Article 23 of the Customs Law or Article 47 of the Customs Preventive Law.

2.14.8 CONTACTS

Section Chief-in-Charge of SCCP
Department of Customs Administration Ministry of Finance
2 Ai-Kuo West Road
Chinese Taipei

Tel: 886-2-322-8216
Fax: 886-2-394-1479

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