Dear Friends,

On January 28, 2014, the Legislative Yuan passed the three reading of draft amendments to the Act Governing Food Sanitation ("Amendment") again, title of which is thus changed from the "Act Governing Food Sanitation" to the "Act Governing Food Safety and Sanitation".  This has been the 3rd amendment since 2012, which proves the importance of the Act.  We summarize the key features of the Amendment below:

1.Regulation on compound food additive: The Amendment newly defines the "compound food additive", whose ingredients are limited to those individual food additives approved by the regulator.  Note that all individual food additives need be approved by the government, while compound food additives need not.  Though the Amendment does not require registration of compound food additive, the competent authority expresses that before the end of 2014, the producers, importers and sellers of food additive will be forced to register their enterprise information and their food additives' items and constituents.  In the future, a trace system will be established to track the flowing of food additives.  The containers or external food pack must label manufacturer of food additives. (Articles 3 and 25)

2.Regulation on genetically modified food (GMF): The Amendment adds definition of "genetically modified"; in addition, any GMF materials shall not be used as materials of any food unless otherwise approved by the regulator.  The importers shall establish a system to trace the source and flow of the GMF materials, and the containers or external pack of food (or food additives) must label relevant information. (Articles 3, 21, 22, 24 and 25)

3.Examination required: Any enterprise dealing in food shall be responsible for examination of raw materials, semi-finished goods and/or finished products by itself or a third-party lab.  Any failure to correct after notification of violation is subject to an administrative fine between NT$30,000 to NT$3 million (Articles 7 and 48).

4.Heavier penalty:  The administrative fine for breach of labeling requirements for food and its additives, containers or pack or false, exaggeration or misleading of advertisement or promotion is increased from NT$200,000 to NT$4,000,000 (Article 45).  The maximum imprisonment years for criminal penalty in connection with adulteration or counterfeiting of food, or addition of any food additives not approved by the central competent authority is increased from 3 to 5 years.  The maximum criminal fine (on individual and legal person) is increased to up to 10 times, and the maximum administrative fine from NT$15 million to NT$50 million (Articles 44 and 49).  The Amendment further authorizes the regulator to promulgate the standards for the counts of the breach for administrative penalty. (Article 55-1).

5.Confiscation:  If a person's property or benefits generated from a willful crime cannot be confiscated, the court or district attorney shall pursue to claim or set off the property or benefits and shall freeze such property or benefits by attachment order. (Article 49-1).

6.Penalty waiver for whistleblowers: Except the employer, any person involved in any conduct violating this act with criminal liabilities but whistle blowing to the judicial organization may be subject to less or exempt from criminal liabilities. (Article 50)

7.Food safety protection fund:   The regulator is authorized to set up a food safety protection fund to safeguard food safety and protect consumers' interest. (Article 56-1).

Chen-Chi Wang