Administrative Guidelines on Export of High-Tech Commodities

Laws and Regulations

1. Principal Laws and Regulations

   (1)Foreign Trade Act (Articles 13 and 27)
   (2)Regulations Governing Export and Import of High-Tech Commodities
   (hereinafter referred to as the Regulations)

2. Related Laws and Regulations

   (1)Enforcement Rules of the Foreign Trade Act
   (2)Regulations Governing Export of Commodities
   (3)Regulations Governing Registration and Administration of Exporters and
   Importers
   (4)Regulations Governing Export and Import of Commodities by Military
   Authorities
   (5)Regulations Governing Permission of Trade Between Taiwan Area and
   Mainland Area
   (6)Regulations Governing Trading Business in Science-based Industrial Park
   (7)Regulations Governing the Operational Management of Export Processing
   Zones Administration and Branch Administration

Effective Date

1. Initial version - July 1, 1995
2. First revised version - November 1, 1998

Categories of High-tech Commodities

1. Export controlled commodities listed below specifically designated in a public notice by the Ministry of Economic Affairs after having consulted with relevant competent government authorities
   (for more details, refer to Appendices: Table-1):

   (1)Control List of the Wassenaar Arrangement on Export Controls for
   Conventional Arms and Dual-Use Goods and Technologies

   1. List of Dual-Use Goods and Technologies
      (compiled by the Industrial Development Bureau, Ministry of Economic Affairs)
   2. Munitions List
      (compiled by the Ministry of Defense)

   (2)Control List of Non-Proliferation

   1. Control List of Missile Technology Control Regime
      (compiled by the Ministry of Defense)
   2. Control List of Australia Group
      (compiled by the Industrial Development Bureau, MOEA)
   3. Control List of Nuclear Suppliers Group
      (compiled by the Atomic Energy Council, Executive Yuan)

2. Besides those high-tech commodities described in the preceding category,
   those commodities of which the end-users or end-uses may be connected
   with producing or developing nuclear weapons, chemical and biological
   weapons, missiles, or any other weapons of mass destruction.
3. Re-export of import commodities to be re-exported in the form as received for
   which an International Import Certificate or any other relevant Written
   Assurance Certificate to be certified by the Republic of China (ROC)
   is required in accordance with the regulations of the government of the
   exporting country.

Category 1 - restricted areas:

Iraq, Iran, Libya, and North Korea

Prior approval on a case-by-case basis by the certifying authority (agency) is required before issuing export permit of high-tech commodities.

Category 2 - members of the following export controls regimes (for a
detailed list, see Appendices: Table-2):

1. Wassenaar Arrangement
2. Missile Technology Control Regime
3. Australia Group
4. Nuclear Suppliers Group

An export permit of high-tech commodities is required. Applications shall be made in accordance with the Regulations.

Category 3 - countries (areas) not falling into the preceding two
categories

An export permit of high-tech commodities is required. Applications shall be made in accordance with the Regulations.

Requirements for Export Permit for High-Tech Commodities

1. Export Permit for high-tech commodities

(1)Pursuant to the Regulations, an export permit of high-tech commodities
is required for exporting high-tech commodities (for reference formats
of Application, refer to Appendices: Table-3). For those high-tech
commodities that are also designed in the List of Commodities Subject
to Export Restriction, only an export permit of high-tech commodities
is necessary.

(2)A complete quadruplicate set of application for Export Permit of
High-Tech Commodities is made in:

Copy 1 for Certifying Authority's (Agency's) archives

Copy 2 for BOFT's statistical archives

Copy 3 for Applicant to submit for Customs clearance

Copy 3A for Applicant to submit to the certifying authority (agency) to close the case.

2. Individual and partial shipment of high-tech commodities

(1) Individual shipment

1. Export Permit is effective for single shipment only. Partial shipment is not allowed.
2. Permit validity: one month.
3. Destination categories: Categories 1, 2 and 3.
4. High-Tech Commodities Scope: commodities described in the preceding paragraph ?.

(2) Partial shipment

1. The Export Permit is valid for the total specified quantity and value of high-tech commodities regardless of the number of shipments. Both quantity and value of high-tech commodities for each individual shipment is within the discretion of the Exporter.
2. Permit validity: two years
3. Destination categories: Categories 2 and 3.
4. High-Tech Commodities Scope: commodities designated in the List of Dual-Use Goods and Technologies of Wassenaar Arrangement. However, those commodities that also designated in the Control List of Non-Proliferation are excluded.
5. Eligible Applicants: Exporters who have implemented an Internal Control Program (ICP); In the case of re-exporting high-tech commodities, the exporter can be regarded as having set up an ICP if a related ICP document issued by the government of the original exporting country has been obtained. Also, an exporter who exports in a steady trade pattern (has made five or more export sales during the last six months) to the same destination and the same importer.

3. Documents Required

(1) In addition to the product catalogues (containing pictures), different
documents are required as follows, in accordance with each category,
when applying for high-tech commodities export permits:

1. Wassenaar Arrangement (Munitions List and List of Dual-Use Goods and Technologies)

(A)The exporter shall submit along with the application an
International Import Certificate issued by the government
of the importing country. In the case that such a document
is not available from the government of the importing
country, a factual Written Assurance of end uses issued by
the foreign importer shall be submitted (for a suggested
sample form, refer to Appendices: Table-4).

(B)A prior written approval from the Ministry of Defense or
its authorized agency is required for those high-tech
commodities designated in the Munitions List.

2. Missile Technology Control Regime

(A)The exporter shall submit along with the application a
Written Assurance Certificate issued by the government of
the importing country. In the case that such a document is
not available from the government of the importing
country, a factual Written Assurance of end uses issued by
the foreign importer shall be submitted. The importer/end
user shall undertake:

1. The subject commodities will not be used for producing or developing missiles or related systems.
2. Unless with a prior consent of the original exporting government, there shall be no modification of the subject commodities' original end-use or end-user.

(B)A prior written approval from the Ministry of Defense or
its authorized agency is required.

(C)Contract.

3. Australia Group

(A)The exporter shall submit along with the application a
Certificate of End Uses issued by the government of the
importing country. In the case that such a document is not
available from the government of the importing country, a
factual Written Assurance of end uses issued by the
foreign importer shall be submitted. The importer/end user
shall undertake:

1. The subject commodities will not be used for producing or developing chemical and biological weapons or related systems.
2. Unless with a prior consent of the original exporting government, there shall be no modification of the subject commodities' original end-use or end-user.

(B)Contract.

4. Nuclear Suppliers Group

(A)The exporter shall submit along with the application a
Written Assurance Certificate issued by the government of
the importing country. In the case that such a document is
not available from the government of the importing
country, a factual Written Assurance of end uses issued by
the foreign importer shall be submitted. The importer/end
user shall undertake:

1. Both the end user and the importer will agree to any safeguards by IAEA (International Atomic Energy Agency), if any of the subject commodities is on the Control List of Nuclear Suppliers Group.
2. The subject commodities will not be used for producing or developing nuclear weapons or its related systems.
3. Unless with a prior consent of the original exporting government, there shall be no modification of the subject commodities' original end-use or end-user.

(B)A prior written approval from the Atomic Energy Council,
Executive Yuan is required for those high-tech
commodities of nuclear material and equipment
designated in Section 1 of Part A of ANNEX A and
Sections 1, 2 and 4 of ANNEX B to the Control List of
Nuclear Suppliers Group.

(C)Contract.

(2) Additional requirements:

1. For exporting high-tech commodities that are designated in both the Control List of the Wassenaar Arrangement and the Control List of Non-Proliferation, the exporter shall comply with the above requirements set out for commodities designated in the Control List of Non-Proliferation to apply for export permit.
2. For partial shipment, either transaction records or a related ICP implementation document is required.
3. A High-Tech Commodities Verification Report issued by the High-Tech Commodities Verification and Investigation Task Force, Ministry of Economic Affairs can be an alternative to catalogues.
4. In the case of high-tech commodities re-export for which a prior approval must be obtained from the government of the original exporting country in accordance with the regulations of that exporting country, the re-exporter shall also submit the document issued by the government of the original exporting country approving the intended re-export.
5. If the high-tech commodities are exported to a non-restricted area under any of the following circumstances, the exporter may submit sufficient supporting documents instead of other required documents when applying for an export permit:

   (A)Where the total value of the same commodity subject to export
   control is less than US$5,000;

   (B)Where the commodities are exported for exhibition, maintenance
   services, testing and/or replacement;

   (C)Where the importer as well as the end user of the export
   commodities is a government agency, university or academic
   institution; or

   (D)Where a prior approval of the export has been obtained from the
   authority concerned.

4. Certifying Authorities (Agencies)

(1)Second Department and Kaohsiung Branch Office, Board of Foreign
Trade (BOFT), MOEA: issuing High-Tech Commodities Export Permit
for exporters in the taxation area of the nation.

(2)The Export Processing Zones Administration and Branch
Administration: issuing High-Tech Commodities Export Permit for the
enterprises in the zones.

(3)Hsin-Chu Science-based Industrial Park Administration, National
Science Council: issuing High-Tech Commodities Export Permit for the
enterprises in the Park.

(4)Ministry of Defense or its authorized agency: issuing High-Tech
Commodities Export Permit for Military authorities (agencies).

Special Notes on Customs Clearance

1. On the Export Customs Declaration sheet, the exporter shall fill in the serial number of the High-Tech Commodities Export Permit in the column of "Export Permit Number" and in the column of "Methods of Inspection", the exporter shall fill in an "8" (applying for documentary examination).
2. In the case that the high-tech commodities exporter fails to apply for customs clearance in accordance with related regulations to and is discovered by the Customs, the exporter will be dealt with according to relevant provisions of the Customs Preventive Statute and the case will be forwarded to BOFT by the Customs for applicable penalty.
3. Procedures for customs clearance for partial and individual export shipments of high-tech commodities.

(1)When exporting with an export permit for single shipment of high-tech
commodities, the exporter shall submit Copy 3 of the original export
permit for customs clearance. Upon release, the Customs will return
Copy 3A to the exporter after affixing a verification stamp on it. The
exporter shall then bring the Copy 3A back to the certifying authority
(agency) within the same month or before the fifteenth day of the next
month after the commodities are exported. To apply for cancellation of
customs clearance, Copy 3A shall be submitted to the Customs. After
cancellation of the verification stamp, the exporter shall return the
Copy 3A to the original certifying authority (agency).

(2)When exporting with an export permit for partial shipment of high-tech
commodities, a photocopy of Copy 3 of the original export permit
affixed with stamps of the company and the manager is required for
each shipment for customs declaration. The shipment will be released
provided that the quantity and the value of the shipment are within the
scope allowed by the export permit. The exporter shall not export more
than allowed by the export permit and shall fill in the actual amount of
each shipment in the back of Copy 3A and report to the certifying
authority (agency) every January and July by using a photocopy of
Copy 3A of the export permit. The exporter shall submit Copy 3A of
the export permit to the certifying authority (agency) for its file within
the same month or before the fifteenth day of the next month after the
approved quantity and value are used out or the permit expires.

Appendices

Table 1: Categories of Control List of High-Tech Commodities

Table 2: Country Chart of Export Control Regimes Members

Table 3: Formats of Export Permit of High-Tech Commodities

Table 4: Sample Form of Written Assurance of End Users

Table 5: Instruction on ECCN Coding