Ministry of Commerce, Circular on Issues Relevant to Strengthening the Administration of Processing Trade

Issued: April 12 2007

Main Contents: The Circular states that departments in charge of commerce shall make sure that an enterprise passes the examination of the business condition and productivity of processing trade enterprises, otherwise they shall not approve it to engage in processing trade. Enterprises that fail to reach the standards for environmental protection and energy consumption or that have environmental liability accidents shall be prohibited from engaging in processing trade. Where an enterprise fails to complete the procedures for employing personnel, where the wages of the employees do not reach the minimum wage standards at the place where the enterprise is located, or where the enterprise fails to comply with the relevant provisions on social insurance at the place in which it is located, approval for engaging in processing trade shall not be granted. Enterprises that use obsolete production processes and equipment shall be prohibited from engaging in processing trade. Approval shall no longer be granted to new enterprises that use process technology and equipment in the restricted category for engaging in processing trade (Article 2).

Related Legislation: Tentative Measures for the Administration of the Examination and Approval of Processing Trade, May 27 1999, CLP 1999 No.10 p.38; Decision on the Issue and Implementation of the , 2005; and Tentative Measures for the Administration of the Examination and Approval of Domestic Sale of Bonded Materials and Parts Imported for Processing Trade, May 27 1999, CLP 1999 No.10 p.49