Agricultural Products subject to TRQs
- Document symbol
- G/LIC/N/3/TPKM/14
- Original language
- English
- Published on
- 11/12/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
"Tariff Quota" are regulated by the "The Regulations of Tariff Quota. "Tariff Quota" referred to in the said Regulations means to assess a certain quantity for specified imported goods. The lower tariff rate applies on imported goods within the quota, and the normal tariff rate applies on imported goods in excess of the quota volume. The tariff quota is allocated by the Ministry of Finance or the delegated organizations or other entrusted authorities. Moreover, the Ministry of Finance delegates the Bank of Taiwan (BOT) to allocate the Tariff Quota of the agricultural products.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Agricultural Products Subject to a Tariff Rate Quota Regime:
| Description of products | Tariff item number(s)（HS2017） |
|---|---|
| Deer velvet | 05079020 |
| Liquid milk | 04011010, 04012010, 04014010, 04015010, 04011020, 04012020, 04014020, 04015020, 04029910, 04029920, 04029992, 04039059, 04039029, 04039090, 04039040, 18069053, 19019025, 18069055, 19019027 |
| Peanuts | 12023010, 20081111, 20081191, 12024100, 12023020, 12024200, 20081112, 20081192, 20081942, 12089011, 12089021, 15081000, 15089000 |
| Red beans | 07102910, 07133200, 11061010, 20049010, 20060011, 20055110, 20060025, 20055910 |
| Garlic bulbs | 07032010, 07032090, 07129040 |
| Dried Shiitake | 07123920 |
| Dried Day Lily | 07129050 |
| Young coconut | 08011900, 08011200 |
| Betel nuts | 08028000 |
| Bananas | 08031010, 08031020, 08039010, 08039020 |
| Pineapples | 08043010, 08043020 |
| Mangoes | 08045021, 08045022 |
| Shaddocks | 08054020 |
| Fresh pears (excluding European pears) | 08083090 |
| Dried longans and longan pulp | 08134010 |
| Rice | 10061000, 10062000, 10063000, 10064000, 11029011, 11029019, 11031930, 11032010, 11041910, 11042920, 11081910, 18069071, 19023020, 19041020, 19042011, 19042021, 19021110, 19021910, 19022010, 18069061, 19049010, 18069092, 19019091, 21069098 |
Q3. The system applies to goods originating in and coming from which countries?
The tariff quota regime only applies to goods originating in WTO members.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
Certificates of tariff quota are issued to control the quantities of importation of the products listed in 2 above within the quota.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The issuance of certificates of tariff quota is implemented according to the provisions of the said Rules and is an administrative action pursuant to the said Rules authorized by the Customs Law. Therefore, the abolition of the certificates of tariff quota does not need approval from the legislative branch of the government.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
The products subject to restrictions on quantity or value: The decision of allocations is on a yearly basis in principle. The quota volume is decided in accordance with the concessions made under the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu’s accession to the WTO.
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Specific conditions for applying for a TRQ allocation would be published in the official journal 60 days in advance of the start of the application period.
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
The decision of allocations is on a yearly basis in principle. The quota volume is decided in accordance with the concessions made under the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu’s accession to the WTO.
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Companies registered at the International Trade Administration (under Ministry of Economic Affairs) as an import/export business (rice importers also have registered at the Council of Agricultural as a food dealer) would be eligible to submit to the BOT to apply for certificates under the quota allocation rules. The importers are requested to submit declarations and tariff quota certificates to the customs. In principle, the decision of allocations is on a yearly basis and unused quota is not added to the quota in the following year. The names of importers are posted on the bulletin board of BOT after allocated.
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
The announcement of the allocation procedures would be made at least 21 days prior to the first day of accepting applications.
Q6.V. What are the minimum and maximum lengths of time for processing applications?
The period for submission of application for tariff quota certificates is 14 days.
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Certificates of tariff quota can be issued within a shorter period of time within one day. According to Article 16 of the Regulations of Tariff Quota, under the situation that imported goods are applying the in-quota tariff rate of the method of distribution in advance, whilst the importers cannot submit certificates on time but can rectify the procedure, the importers can apply for goods examined and released accompanied with the payment of guaranty deposit equivalent to the amount of customs calculated by the out-quota rate and rectify the procedure within the valid period of the certificates.
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Has to approach only one administrative body.
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Under the method of distribution in advance, the quantities of quota application shall not exceed 20% of the total quota and less than the quantities of the commercially viable shipments.
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Q7.b. Can a licence be granted immediately on request?
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Any reason of objection will be specified on the announced notices. The process of applying for allocation is transparent and open.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
The qualification of applicants is as follows:
- Agricultural products: Rice, companies engaging in import and export business that have completed registration at the International Trade Administration (under the Ministry of Economic Affairs), and also have registered as a food dealer at the Council of Agricultural; and
- Other agricultural products, companies engaging in import and export business that have completed registration at the International Trade Administration (under Ministry of Economic Affairs).
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
A sample application form is attached (See Annex II-(1)(2).
Q11. What documents are required upon actual importation?
Upon actual importation, an Importer is required to submit certificates of tariff quota.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
For the agricultural products under the method of Tariff Quota allocation conducted in the order applications are received. The applicants are required to pay NT$1,000 when they apply for quota allocation or in case of transference of quota.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
For the agricultural products under the method of distribution in advance, the authorities will collect a performance bond or premium whilst issuing the certification of tariff quota. The performance bond would be required to ensure complete utilisation of the allocations and would be returned to the holder after the holder imports its total allocation before its certificates expire. The performance bond would not be set at a level which would deter full utilisation of the quota or otherwise restrict trade. The premium was the amount that a bidder was willing to pay for obtaining the right to import goods and is non-refundable.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The valid period of certificate of tariff quota:
- Agriculture products under the method of distribution in advance, provided that the quota is allocated once a year, the certificate of tariff quota is valid for products arriving on or before 1 September of that year and can be extended to cover products arriving on or before 31 December, if necessary.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilization of an approval or a portion of it.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
For agricultural products under the method of distribution in advance, the quota distributed can be transferred partial or wholly within the valid period of the certificates. To transfer quota, both obligee and transferee shall fill the application form of tariff quota and apply to the original authority which allocated the quota for transference of quota and the performance bond accompanied by the following documents:
(a) The original certificates of tariff quota;
(b) The agreement of transference of tariff quota with mutual subscription; and
(c) The agreement of transference of the performance bond with mutual subscription.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
There are no other conditions attached to the issuance of an approval.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures, apart from obtaining an approval document prior to importation.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
Foreign exchange is automatically provided by the banking authorities for goods to be imported.