Fair Trade

 

1.    Amendments to "Regulations on Rewards for Reporting of Illegal Concerted Actions"

 

The Fair Trade Commission announced the amendments to the "Regulations on Rewards for Reporting of Illegal Concerted Actions" on April 19, 2016. Please refer to Section One of Issue No. 246 of the Lexgroup Newsletter for more details.

 

Reported by: Kang-Shen Liu / Judy Tai

 

SICE

 

2.    Draft Amendments on Regulations Governing the SICE

 

On April 20, 2016, the Financial Supervisory Commission (FSC) announced the draft amendments to "Standards Governing the Establishment of Securities Investment Consulting Enterprises" and "Regulations Governing Securities Investment Consulting Enterprises".  We summarize the key points of the amendments below:

 

(1)    A securities broker operating equity crowdfunding business may apply to concurrently engage in securities investment consulting business.  Its business scope is limited to the stocks of the corporates listed on its crowdfunding platform.

 

(2)    A securities investment consulting enterprise (SICE) shall not have a sharing arrangement for profit or operational expenses with others and have others participate in the SICE businesses in the name of the SICE or its employee.

 

(3)    An alternative qualification of a SICE to engage in securities investment consulting business for foreign securities other than offshore funds was added.

 

Reported by: Jeffrey Liu / Judy Tai

 

Fund

 

3.    Fund Receipt and Payment Business

 

On April 26, 2016, the FSC issued a ruling to permit the centralized securities depository enterprises to engage in the business of collection/payment for securities investment trust funds.  The account used for a fund's collection/payment shall be segregated from the enterprise's self-own property.

 

Reported by: Jeffrey Liu / Judy Tai

 

Securities Firms

 

4.    A Securities Brokers related Ruling

 

On April 26, 2016, the FSC issued a ruling to specify that where a securities broker handles receipt/payment through the bank account designated by centralized securities depository enterprise for securities investment trust fund which it acts as sales agent, it may subscribe to funds on behalf of investors in its own name, provided that it obtains investors' prior approvals and enter into an agreement regarding receipt/payment of money with the centralized securities depository enterprise.

 

Reported by: Jeffrey Liu / Caitlyn Kao

 

Finance

 

5.    Draft Amendment to Article 17-1 of the "Regulations Governing Cooperating with or Assisting Foreign Institutions in Engaging in Activities Associated with Electronic Payment Business within the Territory of the Republic of China"

 

The FSC announced the draft amendment to Article 17-1 of the "Regulations Governing Cooperating with or Assisting Foreign Institutions in Engaging in Activities Associated with Electronic Payment Business within the Territory of the Republic of China" on April 19, 2016, which aims to allow approved institutions to advance payment for their clients (e.g. domestic sellers).  We summarize the key points below:

 

(1)    Business scope for approved institutions to advance payment for their clients: to remit the funds collected for online real transactions under the service of collection and payment of funds.

 

(2)    Requirements to be met for this business: approved institutions shall not use the funds collected for clients as the funding for the business; shall have confirmed that their clients have delivered or provided the products or services; and shall not contravene the conditions for transfer of funds collected as agreed with clients .

 

(3)    Relevant requirements to be followed for the advanced payment business: the payment shall be made in NTD; the total payment advanced shall not exceed NTD 10 million; the advance period shall not exceed 15 days; and approved institutions shall control the highest advance amount and ratio for the same client.

 

(4)    If the payment is not returned by clients, or any collected payment is not transferred by the offshore institutions, the approved institution shall stop advancing payment for its clients before the aforementioned payments are made.

 

(5)    If the approved institution is a bank extending credits to its clients according to the Banking Act, relevant operations shall be handled in accordance with the bank's credit extension business.

 

Reported by: Stacy Lo / Angela Lin

 

Taxation

 

6.    Draft amendment to the Customs Act

 

The Executive Yuan approved the draft amendment to the Customs Act presented by the Ministry of Finance (MOF) on April 21, 2016.  We summarize the key points below:

 

(1)    Adding that unless provided in the Customs Act, the taxation category of imported and exported goods shall be decided according to the Customs Import Tariff.

 

(2)    Specifying the sequence for the clearance, interests and value of goods to be repaid, and that Customs may inform the relevant authority to prohibit the payer from transferring the product, creating other rights on the property or registering a capital reduction.

 

(3)    Establishing a preview system for the origin of imported goods.

 

(4)    Relaxing the scope for Customs and enterprises applying for affixing seals.

 

(5)    Excluding frequently-imported goods from applying the Customs duty exemption for goods with a value under the prescribed ceiling, and authorizing the MOF to set the determination criteria.

 

(6)    Stating that any exportation of self-use machinery and equipment imported by a bonded factory to the tax area without paying Customs duty first shall be handled as smuggling.

 

Reported by: Stacy Lo / Angela Lin

 

Food and Drug Administration

 

7.    Regulations Stipulating Usage Restriction on Edible Hydrogenated Oils

 

On April 22, 2016, the Ministry of Health and Welfare (MOHW) announced the “Regulations Stipulating Usage Restriction on Edible Hydrogenated Oils”, which is scheduled to take effect on July 1, 2018. According to the regulations, partially hydrogenated oils will be prohibited from use in food, while fully hydrogenated oils remain allowed. Fully hydrogenated oils are oils that are hydrogenated to complete or near-complete saturation and have an iodine value of no more than four (4); partially hydrogenated oils are oils that have been hydrogenated, but not to complete or near-complete saturation, and with an iodine value greater than four (4).

 

Reported by: Jolene Wang / Crick Liang

 

8.    Regulations Related to Labeling Regulations on Food Utensils, Food Containers or Packaging

 

The Ministry of Health and Welfare (MOHW) announced on April 18, 2016 that the amendment of "Items of Food Utensils, Food Containers or Packaging to Which the Labeling Requirements Apply" (the Items) and the "Labeling Regulations on Food Utensils, Food Containers or Packaging" (the Labeling Regulations) shall become effective as of July 1, 2017.

 

The Items are amended to all food utensils, food containers or packaging using food contact materials containing plastics.

 

The Labeling Regulations provide:

 

(1)    for food utensils, food containers or packaging, the wording of "for food contact use" or that with similar meaning should be labeled;

 

(2)    for food utensils, food containers or packaging using the food contact materials containing plastics, the wording of "for repeated use" or "for single use," or that with similar meaning should be labeled; and

 

(3)    for the food contact materials containing polyvinyl chloride (PVC) or polyvinylidene chloride (PVDC), the warning of "do not put in contact with high-temperature fatty/oily food directly" or that with similar meaning should be labeled.

 

Reported by: Jolene Wang

 

Intellectual Property

 

9.    Amendments to the Table of Classification of Goods and Services in Article 19 of the Enforcement Rules of the Trademark Act

 

On April 18, 2016, the Ministry of Economic Affairs announced amendments to the Table of Classification of Goods and Services provided in Article 19 of the Enforcement Rules of the Trademark Act.  Accordingly, while applying for a trademark registration, the applicant shall designate the class(es) of goods or services in the order listed in the Table of Classification of Goods and Services, and shall specifically list the names of the goods or services.

 

Reported by: Jolene Wang / Linda Cheng

Editors:

Mike Lu (Partner)

Stacy Lo (Partner)

Jeffrey Liu (Partner)

Kang-Shen Liu (Partner)

David Tsai (Partner)

Counselors:

Echo Yeh

Sue Su

Shih-Jung Lee

Jolene Wang (Lexcel Partners IP)