Threshold Lowered for Free Port Enterprises

The Task Force of the Free Port/Free Trade Zone Coordinating Committee, Executive Yuan, decided on March 18 that free-port shippers engaging in pure transshipment activities may handle their finances and cargo control in accordance with the stipulations of the Customs Law, and are not subject to the restrictions of Chapter 3 (free circulation of goods), Chapter 4 (autonomous management of free port enterprises), and Chapter 7 (penal provisions) of the Act for Establishment and Management of Free Ports. These chapters stipulate autonomous goods controls that must be carried out by free port enterprises as well as requirements for CPA annual inventories and certification. Under the new relaxation, cargo and accounting controls can be handled in accordance with the stipulations of the Customs Law; operators involved in simple or in-depth reprocessing, however, must still conform to the requirements of the Act. In the future, the exemptions for pure transshipment operations will be added to the Act.

　　This relaxation of the rules is expected to encourage many companies that meet the requirements to apply for entry into the Keelung and Kaohsiung free ports, which are already in operation. The Executive Yuan approved the establishment of the Taichung Free Port on Feb. 2, and the new free port is scheduled to begin operating in December this year. Other free ports under application are the Port of Taipei and Chiang Kai-shek International Airport. Other government agencies expressing a strong desire to set up free trade zones include the Tainan County Government (the Southern Free Port), Tainan City Government (Anping Free Port), Kaohsiung City Government (Nan-Shin Free Port), and Industrial Development Bureau (Zhangbing Industrial District).

Table 3 Free Ports in Taiwan

　

Name

Status

Intention of Entry Survey

Features

Keelung Free Port

Approved on Mar. 18, 2004；

start of operation on Sep. 30, 2004

5 companies had expressed intention to enter and 2 had signed LOIs by end of Jan. 2005.

Keelung is the major port for regional shipping and a transshipment port for ocean lanes. Convenient outward transportation with direct access to two north-south freeways, Keelung-Taipei highway, and rail line to Taipei , plus Coastal Highway eastward to Lanyang Plain and Suao Harbor . Keelung Harbor is adjacent to 3 large industrial zones, the Northern Taiwan Technology Park , and other supporting service providers such as container terminals, etc.

Kaohsiung Free Port

Approved on Mar. 18, 2004；

start of operation on Jan. 1, 2005

By end of Jan. 2005, 2 companies had received operating permission and 13 had signed LOIs.

Taiwan ’s largest harbor, with 372 shipping routes to 367 ports in 102 countries. Can generate multiplier effect by integrating operations with nearby zones including Kaohsiung multifunctional economic park, export processing zones, Siaogang International Airport , and inland container terminals.

Taichung Free Port

Approved on Feb. 2, 2005；

start of operation in Dec. 2005 (projected)

By end of Jan. 2005, 10 companies had expressed intention to enter.

Close to Zhangbin Industrial District, Tanzih and Taichung Harbor Processing Zones, Central Taiwan Science Park, and Cingcyuangang International Airport; convenient transportation; major shipping hub for central Taiwan.

Taipei Free Port

Under review by Executive Yuan；start of operation in June 2005 (projected)

By end of Jan. 2005, 1 company had expressed intention to enter.

Located between Taipei metropolitan area and Chiang Kai-shek International Airport ; future base for sea/air intermodal transportation.

Taoyuan Air Park Free Port

Under review by Executive Yuan；start of operation in Dec. 2005 (projected)

By end of Jan. 2005, negotiations under way with almost 50 companies.

World’s first facility with air cargo park and free port functions; goods delivered to the free port in the morning can be processed and air-shipped out in the afternoon.

Source: Center for Economic Deregulation and Innovation, Council for Economic Planning and Development; March 2005

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Name	Status	Intention of Entry Survey	Features
Keelung Free Port	Approved on Mar. 18, 2004； start of operation on Sep. 30, 2004	5 companies had expressed intention to enter and 2 had signed LOIs by end of Jan. 2005.	Keelung is the major port for regional shipping and a transshipment port for ocean lanes. Convenient outward transportation with direct access to two north-south freeways, Keelung-Taipei highway, and rail line to Taipei , plus Coastal Highway eastward to Lanyang Plain and Suao Harbor . Keelung Harbor is adjacent to 3 large industrial zones, the Northern Taiwan Technology Park , and other supporting service providers such as container terminals, etc.
Kaohsiung Free Port	Approved on Mar. 18, 2004； start of operation on Jan. 1, 2005	By end of Jan. 2005, 2 companies had received operating permission and 13 had signed LOIs.	Taiwan ’s largest harbor, with 372 shipping routes to 367 ports in 102 countries. Can generate multiplier effect by integrating operations with nearby zones including Kaohsiung multifunctional economic park, export processing zones, Siaogang International Airport , and inland container terminals.
Taichung Free Port	Approved on Feb. 2, 2005； start of operation in Dec. 2005 (projected)	By end of Jan. 2005, 10 companies had expressed intention to enter.	Close to Zhangbin Industrial District, Tanzih and Taichung Harbor Processing Zones, Central Taiwan Science Park, and Cingcyuangang International Airport; convenient transportation; major shipping hub for central Taiwan.
Taipei Free Port	Under review by Executive Yuan；start of operation in June 2005 (projected)	By end of Jan. 2005, 1 company had expressed intention to enter.	Located between Taipei metropolitan area and Chiang Kai-shek International Airport ; future base for sea/air intermodal transportation.
Taoyuan Air Park Free Port	Under review by Executive Yuan；start of operation in Dec. 2005 (projected)	By end of Jan. 2005, negotiations under way with almost 50 companies.	World’s first facility with air cargo park and free port functions; goods delivered to the free port in the morning can be processed and air-shipped out in the afternoon.