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Food and Drugs Administration
1. New regulations regarding food labeling
The Ministry of Health and Welfare (MOHW) announced on October 14, 2015, the promulgation of the “Regulations Governing the Labeling of Reconstructed Meat Products”, and on October 16, 2015, the draft “Regulations Stipulating the Generic Names of Food Additives.”
The “Regulations Governing the Labeling of Reconstructed Meat Products” requires that a packaged reconstructed meat product be conspicuously labeled with “reconstructed” or the equivalent in its product name and be further labeled with “cook before eating” or the equivalent. Food selling industries having business registration who sell bulk reconstructed meat products and dining enterprises who sell reconstructed meat products must also provide the conspicuous labeling of “reconstructed” or the equivalent in the product name, and the labeling of “cook before eating” or the equivalent. These Regulations will take effect as of January 1, 2015. The “Regulations Stipulating the Generic Names of Food Additives” stipulates the generic or commonly known names of two dozen of food additives to be labeled on a food additive or its raw materials, pursuant to Paragraph 1, Article 24 of the Act Governing Food Safety and Sanitation.
Reported by: Jolene Wang / Crick Liang
2. Regulations Governing Food Enterprises that must Establish Laboratory and Draft Amendments to the Regulations Governing Traceability Systems of Food and Food-Related Products
MOHW announced on October 15, 2015, Regulations Governing Food Enterprises that must Establish Laboratory, which will come into effect on December 31, 2016. Food enterprises obligated to establish laboratories are the following enterprises whose capital amount is above NT$100 million and have factory registration. They include: Enterprises dealing in the manufacture, processing and formulation of edible oils/fats, processed meat foods, processed dairy foods, aquatic foods, flour, starch, salt, and sugar, soy-bean sauce and tea drinks. Among those, enterprises of processed meat foods, processed dairy foods and aquatic foods refer to those who are required to comply with the Regulations on Food Safety Control System.
On May 28, 2015, the MOHW announced the draft amendments to the Regulations Governing Traceability Systems of Food and Food-Related Products. Except for changes of legal authorization provision under the Act Governing Food Safety and Sanitation, the period for enterprises to keep information and records is extended from 6 months to 5 years. The items of enterprise's information to be recorded and information of products and raw materials to be recorded are both amended.
Reported by: Jolene Wang / Chenchi Wang
3. More Class II medical devices are allowed for online sales
On October 15, 2015, the MOHW announced amendments to the “Regulations Governing the Classification and Registration Requirements of Mail-Order Purchase for Medical Devices.” The new Regulations allow pharmacists to sell, online or via mail-order, more items classified as class II medical devices, e.g., surgical masks, alcohol swabs, Vaseline gauze, and cleaning and maintenance products for contact lens.
Reported by: Jolene Wang / Crick Liang
Limited Partnership Act
4. Relevant regulations in relation to limited partnership announced by the MOEA
On October 12, 2015, the Ministry of Economic Affairs ("MOEA") issued a ruling (Ref. No. Jing-Shang-Zi-10402426910) to explain that the ''certain percentage'' under Paragraph 1, Article 14 of the Limited Partnership Act is defined as follows: (1) where the total contribution is less than NT$30,000,000 (around US$1M), the value contributed in the form of credit or other rights shall not exceed 50% of the total amount of such contribution; and (2) where the total contribution is more than NT$30,000,000 (around US$1M), it means that the value contributed in said forms shall not exceed the aggregated number of NT$15,000,000 (around US$0.5M) plus 75% of the partial contribution beyond NT$30,000,000 (around US$1M).
The MOEA also announced the draft "Regulations for Review of Applications for Names and Business Scopes Reservation of Limited Partnership" on October 21, 2015. We summarize below:
(1) Names and business scopes of limited partnerships shall be filed for reservation prior to incorporation or any amendment to existing registration and the applications may be filed through the internet.
(2) Reservation will be valid for six (6) months from the date of the approval unless otherwise specified by the MOEA.
(3) The name of a limited partnership shall indicate that it is a limited partnership.
The MOEA also announced the draft "Regulations Governing Application of Limited Partnership" ("Regulations") on October 28, 2015. We summarize the key points below:
(1) Limited partnerships may use electronic documents to make application for each kind of registration items through internet.
(2) The Regulations set out the required documents for limited partnerships to file for registrations for incorporation, amendment, business suspension, business resumption, extension of the commencement of operation, dissolution, manager and establishing of branches.
(3) Application for registration of branches of a foreign limited partnership shall be made by its responsible person in the R.O.C.
(4) Relevant registration items must be filed for registration within 15 days from the date of occurrence.
Reported by: Mike Lu / Angela Lin / Caitlyn Kao
Company Act
5. A New Ruling related to employees' remuneration of Company Act
The MOEA announced a ruling on October 15, 2015, to explain Article 235-1 of the Company Act (CA) in respect to employees' remuneration.
(1) Where the ratio for the employees' remuneration in the Articles of Incorporation (AOI) is in a range or a minimum percentage, the ratio of each year shall be approved by majority votes of the board attended by two-thirds (2/3) or more of all directors.
(2) The authority to decide on the employees' remuneration belongs to the board, which cannot be limited to cash by AOI.
(3) The employees' remuneration shall be approved by the board and the quorum cannot be raised by AOI.
(4) For the payment of the employees' remuneration of 2016:
(a) It is allowed to set a condition that "Where the proposal with respect to the amendments to the AOI to increase the capital is resolved by the shareholders' meeting, the employees' remuneration will be paid by issuing new shares; Otherwise, it should be paid in cash."
(b) Employees' remuneration of 2015 shall be made according to the new AOI.
(5) Regarding directors'/supervisors' remuneration:
(a) The company shall set out a fixed amount or percentage of the directors'/supervisors' remuneration in the AOI. Where it is not stipulated in the AOI, the company shall not pay the directors'/supervisors' remuneration.
(b) The directors'/supervisors' remuneration in the AOI can only be set in the form of a maximum amount/percentage.
(c) The actual ratio for the directors'/supervisors' remuneration of each year shall be approved by majority votes of the board attended by two-thirds (2/3) or more of all directors.
Reported by: Mike Lu / Judy Dai
Taxation
6. Draft amendment to the Value-added and Non-value-added Business Tax Act
The Executive Yuan announced a draft amendment to the Value-added and Non-value-added Business Tax Act on October 29, 2015. The major amendments include that (1) the uniform invoice may be issued, transmitted or received by internet or electric method, and (2) the scope, multiple and amount of penalty imposed on business entities failing to issue uniform invoices or understating sales amount on uniform invoicesare amended.
Reported by: Stacy Lo / Mark Chen
Communication
7. Press Release for Five Acts
On October 21, 2015, the National Communications Commission ("NCC") issued a press release to illustrate the three Acts related to the radio and television ("Three Acts") and five Acts related to the digital convergence ("Five Acts"). The NCC will issue the draft version of the Five Acts shortly, including the "Regulations Governing Radio and Television Broadcast Enterprises and Channel Enterprises", "Regulations Governing Cable Television Broadcast Enterprises and Platform Providers for Multi-Channels", "Telecommunications Enterprises Act", "Telecommunications Infrastructure and Resource Management Act" and "Electronic Communications Act". The Five Acts will coexist with the existing Three Acts to protect consumers' interests and the industries' development.
Reported by: Kang-Shen Liu / Judy Tai
8. Draft "Electronic Communications Act"
On October 21, 2015, the NCC announced the draft "Electronic Communications Act" to invite public opinion or comments. We summarize the major points below:
(1) To request service providers of electronic communications to disclose its public operational information and terms of use;
(2) To stipulate management principles related to communications protocol or flow control;
(3) To stipulate responsibility and exemption of relevant service providers; and
(4) To stipulate rights to apply for a provisional injunction to maintain status quo.
Reported by: Kang-Shen Liu / Judy Tai
9. Hearings for Investment in Cable Television Industry by Foreign Nationals
On October 28, 2015, the NCC issued a press release that it will hold public hearings for investments in relation to cable television industry by foreign nationals, including "NHPEA Chrome Holding B.V. (a Dutch company)", "ABSOLUTE PERFECT CO., LTD. (a Mauritius company)" and "PX CAPITAL PARTNERS B.V. (a Dutch company)" to invite public opinion or comments.
Reported by: Kang-Shen Liu / Judy Tai
10. Draft Amendments to the Labor Pension Act
The Executive Yuan passed the draft amendment to the Labor Pension Act ("Amendment") on October 29, 2015, which will be forwarded to the Legislative Yuan for review recently. The main purpose of the Amendment is to shorten the statutory normal working hour and initiate two days off a week. We summarize the Amendment below:
1. An employee who is sixty years or older and whose seniority exceeds fifteen years may claim for lump-sum payment of retirement.
2. To delete mandatory annuity insurance for the retired employee.
3. If the heir or designated claimant of a deceased employee has not claim the pension within the statute of limitations, the principal and the return accrued in his/her individual account of labor pension shall contribute to the Labor Pension Fund.
4. To increase the statute of limitations of the right to claim for the pension of the heir or designated claimant of a deceased employee from five to ten years.
5. To increase the punishment for violating the Act and provide that the name of such employer, name of its representative shall be promulgated publicly.
6. To provide that whenever the employer owe pension contribution or the overdue charge, but have no property for execution or do not have property to pay off their debts, its representative should be responsible for clearing the debts. Such owed pension contribution and overdue charges take precedence over general claims. The debt relief under relevant laws shall not applicable to labor pension.
Reported by: David Tsai / Robin Huang
11. Amendments to Enforcement Rules of the Labor Standards Act
The Ministry of Labor announced the amendments to the “Enforcement Rules of the Labor Standards Act” on October 23, 2015, this amendment is to reflect the amendment to the Labor Standards Act (“LSA”) early this year, to delete the provisions which have been included in the LSA. In addition, to provide the standards such as employee headcount, seniority, and average wage for employer to calculating the balance of special account under old pension scheme.
Reported by: David Tsai / Robin Huang
Securities Firms
12. The FSC Relaxed the Limitation on the Percentage that Offshore Funds May invest in the Taiwan Stock Market for OSU Products
The Financial Supervisory Commission ("FSC") issued a ruling on October 22, 2015, stating that for offshore securities units ("OSU") products under Paragraph 1, Article 22-4 of the Offshore Banking Act ("Act"), the percentage that the offshore funds involving in the domestic stock market may invest in Taiwan stock market is raised from 30% to 50% of the fund's net asset value.
Reported by: Stacy Lo / Angela Lin
Foreign Investment
13. MOEA's Response to AmCham's Question Related to Foreign Investment by Private Fund
On October 16, 2015, the MOEA issued a press release to respond to AmCham's questions about non-transparent review procedure and unclear review standard on foreign investment by offshore private fund in Taiwan. The MOEA clarified that it handles the cases of foreign investment by offshore private fund in accordance with the Statute for Investment by Foreign Nationals. With respect to the review standards of the competent authorities for each business, the Investment Commission ("IC") of the MOEA has announced a FAQ on its website, in which, the review standards of "thin-capitalization" and "impact on capital market" have been removed on April 30, 2015. The MOEA is now in the process of amending the Statute for Investment by Foreign Nationals and the related regulations. The review standards listed in the FAQ will be reflected in the new regulations.
Reported by: Mike Lu/ Susan Chen
SITE&SICE
14. Expansion of Investment Scope of Discretionary Investment Mandate
On October 26, 2015, the FSC issued a ruling to expand the investment scope of discretionary investment mandate businesses. Gold, minerals, bulk materials and other related products may now be invested in by the discretionary investment mandate account managed by securities investment trust enterprises (''SITE'') or securities investment consulting enterprises (''SICE'') which operates the discretionary investment mandate businesses, provided that the investment does not exceed 40% of net asset value of the discretionary investment account. When engaging in the above-mentioned investments, the SICE/SITE is required to disclose major items and risks to clients, and to state the risk management process in the discretionary investment mandate brochures.
Reported by: Jeffrey Liu / Caitlyn Kao
Offshore Fund
15. Rulings Related to the Regulations Governing Offshore Funds
On October 28, 2015, the Securities Investment Trust and Consulting Association ("SITCA") issued a ruling in relation to the updated "Q&A of Regulations Governing Offshore Funds" issued by the FSC. The major amendments are in relation to the reporting deadlines and format of the monthly report, and the requirement of concrete contributions stipulated in Item 4, Paragraph 1, Article 24 of Regulations Governing Offshore Funds.
In addition, on October 26, 2015, the FSC issued a ruling (Ref. No. Jin-Guan-Zheng-To-Zi-1040042824) to announce that according to Paragraph 1, Article 24 of the Regulation Governing Offshore Funds, the Securities and Features Institute is selected as the institution for handling talent cultivation and industry development funds.
Reported by: Jeffrey Liu / Judy Tai / Caitlyn Kao
16. Amendments to Application approach for Advisory services of offshore funds
On October 29, 2015, the SITCA issued a ruling (Ref. No. Zhong-Xin-Gu-Zi-1040800576) to add a new application approach for advisory services of offshore funds. In addition to the existing approach "approval by sub-fund"("Existing Approach"), the enterprises can also apply using the new approach "approval by master agent" ("New Approach"). The New Approach shall apply to (1) the applicant whose information cooperation agreement with the master agent can cover all offshore funds represented by such master agent who are approved by or reported for effectiveness with the FSC, and (2) the master agent who intends to provide consulting service on offshore funds represented by itself. The Ruling also provides handling procedures once the following event occurs: (a) any amendment to the information cooperation agreement with the master agent such that the scope cannot cover all offshore funds represented by the master agent; or (b) transfer of master agent.
Reported by: Jeffrey Liu / Judy Tai
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2015-11-09
