The ECCT's 2024 Position Papers, launched today list progress on a number of issues, following the government's adoption of ECCT recommendations (arranged below by committee in alphabetical order).

Issues resolved since the publication of the 2023 Position Papers

Banking

• Relaxation of guidelines on outsourcing IT systems - Clarifying the concept of “same outsourcing reason” in the FSC's Outsourcing Q&A: The Financial Supervisory Commission (FSC) has provided clarity on "the same outsourcing reason" for outsourcing IT systems.
• Relaxation of guidelines on outsourcing IT systems - Relaxing documentation applicability for cloud outsourcing applications: The FSC has relaxed regulations to allow banks more flexibility to outsource IT systems.
• Two-way firm quote requirements for Formosa Bond liquidity providers: The Taipei Exchange (TPEx) has promulgated a new amendment that allows issuers of certain international bonds to provide a "reference quotation" instead of two-way firm quotes, the same requirements as for liquidity providers of international bonds.

 

Human Resources

• Modern workforce and impacts from Covid-19 - Integrated occupational accident insurance coverage for digital economy workers: Digital economy workers are now covered by the Labor Occupational Accident Insurance Protection Act.

 

Mobility

• Individual mobility - Exclusive use of charging spaces: The Ministry of Transportation and Communications (MOTC) announced an amendment of the "Parking Facility Act" to reserve parking spaces exclusively for electric vehicle (EV) charging while "EV Exclusive Parking Space and Charging Infrastructure Installation Management Regulations" are in effect which mandate specific ratios of charging spaces in public and private car parks.
• New energy vehicle charging infrastructure and interface - Incentives for public charging infrastructure: Both the MOTC and Ministry of Environment (MOENV) have announced substantial subsidy schemes to support local governments to develop infrastructure islandwide.
• Public transport and commercial mobility - Charging interface for commercial vehicles: The MOTC has included CCS2 as one of the charging interface standards in its EV bus project plan.
• Individual mobility - New energy vehicle charging infrastructure and interfaces - EV charger VPC requirements: Taiwan Power Company (Taipower) has agreed to grant an additional six-month grace period for commercial-use EV chargers and an official announcement to this effect was made in November 2022.
• Regulatory issues and the business environment - TNCAP testing procedure: The MOTC has reaffirmed that Taiwan's New Car Assessment Programme (TNCAP) is not and will not be made compulsory.

 

Retail & Distribution

• Regulatory framework issues for food products - Regulation of food for infants - Allowing internet sales of infant/follow-on formula: The Ministry of Health and Welfare (MOHW) announced the "Principles for Advertising of Infant and follow-on Formula", which provides a definition of online sales and advertising of infant formula that allows online sales of these products.
• Integrated sustainability policies - Food waste management: The MOHW announced draft "Guidance on food safety for food donations" in October 2022, referencing the EU's relevant guidelines.

 

Issues where sufficient progress has been made since the publication of the 2023 Position Papers

Agro-Chemical

• Shortening the registration timeline for new active ingredients: Authorities have adopted a digital pesticide review process that is transparent and efficient, which partially resolves the issue.

 

Cosmetics

• Regulatory clarity and implementation - Advertising regulatory clarity and implementation: The Food and Drug Administration (FDA) has agreed to inform the industry of the conclusions reached at annual local health authority advertising monitoring seminars and collect and share advertising inquiry cases from local health authorities. In addition, new guidelines remove the requirement for specific-purpose cosmetics to provide "ingredient test report certificates" as proof of efficacy.

 

Medical Device

• Reimbursement issues - Discussions ahead of price adjustments: The National Health Insurance Administration (NHIA) has made some price adjustments in cases where prices were incompatible with costs. Firms are now allowed to submit relevant materials to apply for price adjustments in cases of cost incompatibility and the NHIA will prioritise these applications in Pharmaceutical Benefits and Reimbursement Scheme (PBRS) committee discussions.
• E-labelling and diversified labelling for more products: The FDA has amended the “Regulations Governing Issuance of Medical Device License, Listing and Annual Declaration” to exempt licence holders from having to undergo the change submission process when choosing to replace paper Chinese instructions for use with electronic formats.

Retail & Distribution

• Technical barriers to trade for European food products - Organic Agriculture Promotion Act: The Ministry of Agriculture (MOA) has voiced support for the committee's recommendation to allow Taiwan's certifying bodies (CBs) to act as accreditation agents for the accreditation of foreign CBs.
• Regulatory framework issues for food products - Regulation of Foods for Special Medicinal Purposes (FSMP) - Clinical study report requirements for FSMPs with the same disease portfolio: The FDA has released a draft regulation to allow the use of clinical study reports in other markets. In addition, the FDA also expressed willingness to explore alternative approaches regarding clinical study report requirements for FSMPs with the same disease portfolio (same indications) but different flavours.

 

Tax

• Allowing revenue obtained from the same contract to pay a lower withholding tax based on the approved Standard Profit Margin: Foreign companies receiving revenue under the same approved contract can apply to the tax authority to assess taxable income based on the actual costs and expenses related to the relevant transactions or seek a tax refund in accordance with the approved Standard Profit Margin of the Same Trade.

 

Travel & Tourism

• Tourism Administration: While the chamber has for many years advocated the creation of a dedicated Ministry of Tourism, the upgrading of the Tourism Bureau to the Tourism Administration, should help to elevate the industry's profile and development prospects.

 

Partially resolved issues raised again in 2024

Better Living

• Attracting talent – Employment Gold Cards: Processing times for the approval of Gold Cards have been improved while the Gold Card Office has made progress in providing support to help Gold Card holders settle down in Taiwan. However, it remains difficult for Gold Card holders to use banking services and open businesses.

 

Medical Device

Regulatory approval issues – Documentary simplification and predictability of the registration review timeline: The FDA has increased from 34 to 139 the number of items applicable for documentary simplification but this only accounts for about 15% of the 943 Class 2 categories.

 

Mobility

• Individual mobility - New energy vehicle charging infrastructure and interfaces - Existing apartment building code regulations: The Ministry of the Interior (MOI) has drafted an amendment to address this but until it receives legislative approval individuals will continue to need approval from either their management committee or a large proportion of apartment owners to install electric vehicle chargers in their private parking spaces.
• Regulatory issues and business environment - Regulatory inspections for after-service vehicle components: The Bureau of Standards Metrology and Inspections (BSMI) has expressed support for relaxing testing requirements but additional tests are required for both original and aftermarket parts and components.

 

Retail & Distribution

• Transparency and consistency of government policies - Translations of Taiwan standards and testing methods: The BSMI provided an "Analysis Table of Difference of Key Technical Content" (重點技術內容差異分析表) but many standards and testing methods do not yet have English translations.
• Integrated sustainability policies – Incentives to use recycled plastics: The MOENV has said it has plans to revise recycling and processing fees to provide a preferential rate for industry to use recycled polyethylene terephthalate (rPET) in non-food plastic containers. However, rPET raw material costs and processing fees remain high.