Dear Friends:

On 29 April 2021, the Executive Yuan passed the draft amendment to the Administrative Execution Act, which is subject to further three (3) readings by the Taiwan Legislative Yuan before the President can announce for promulgation.  The amendment is substantial and extensive.  We summarize below:

1. The branch of the Administrative Enforcement Agency ("Agency") shall not during night or holidays enter into the resident building with people living for the administrative execution, unless the execution purpose is obviously unachievable without the execution during night or holidays. (Article 5)

2. The administrative execution shall be suspended during the execution period if the court rules for or other laws/regulations requires suspension.  If the administrative execution of monetary claim under the administrative law has been initiated but cannot be fully satisfied when the execution period expires, the unsatisfied claim cannot be executed again, but the initiating administrative agency may claim offset if it has any debt owed to the obligor. (Article 9)

3. The obligor, person subject to execution or interested person may apply for motion of objection with the Agency, in case of any circumstance where the right or legal interest is infringed. (Article 11) 

4. No appeal by the obligor, person subject to execution or interested person shall be made against the decision made by the Agency in connection with the motion of objection, provided that a litigation can be filed with the administrative court if such decision orders the obligor to pay the costs/expenses of substituted fulfillment, other execution fees or expenses, default surcharges, or to restrict from residence, or exit for traveling overseas. (Article 12)

5. In case of any event extinguishing or impeding the obligor’s obligation arising after the administrative execution entitlement is granted, the obligor may file litigation of objection with the administrative court. (Article 13)

6. The Agency may suspend the execution if the monetary claim of the same obligor has not reached the threshold so set forth, and resume and consolidate the execution if the aggregated amount reaches the threshold. (Article 14)

7. The government administrative agency may apply with the administrative court for the provisional attachment against the debtor’s property if it will unlike be able or have difficulty to enforce the execution in the future, unless the obligor has provided sufficient security bond.  After the provisional attachment is executed, the government administrative agency shall forward the case to the Agency for execution within ten (10) days after the expiration of the performance period of the obligor.  In order to secure the execution of monetary claim, the government administrative agency may before or during the execution, apply for the revocation of the act prejudicial to its monetary claim. (Article 15)

8. If the obligor has no property available for execution or the property is insufficient to repay the debt, the Agency may notify the government administrative agency to search and report the obligor’s property.  If the government administrative agency fails to report or reports no property found, the Agency shall issue a certificate to the government administrative agency, stating that such administrative agency may inform the Agency to continue the execution if the execution obviously becomes possible.  The Agency may reinstate the execution when it finds that the execution is possible and under urgency. (Article 17)

9. The Agency may conduct investigation toward the relevant entities or people aware of the property status of the obligor, and impose penalty on those who refuse to answer without justifiable reasons or make the misrepresentation.  In addition, the obligor shall provide true and complete statements in response to the investigation of the Agency. (Articles 23 and 24)

10. For the investigation with no result, no other investigation methods available, or investigation with expensive costs, the Agency may by a prior written notice notify the obligor to make a statement in presence after an affidavit is given by the obligor.  The obligor shall provide the property list after the affidavit.  If the obligor fails to provide the affidavit or property list, the Agency may apply with the court to rule for custody of the obligor. (Articles 25, 26 and 44)

11. The Agency may announce to public the name, age and other information of the obligor when the obligor absconds or conceals assets reaching a certain amount.  The publicly announced information mentioned above shall be removed when the obligor has performed the duty or the execution proceedings have been finished. (Articles 27 and 28)

12. For any failure of auction against real property after reduction of auction price twice, if no one will assume or can according to law assume the real property, the Agency may further reduce the price until auction is successful. (Article 31)

13. If any third party has right over the executed object which may sufficiently prevent from the administrative execution, the third party may, before the expiry of the administrative execution proceedings, file a litigation of objection with the civil court. (Article 32)

14. The amendment supplements the compulsory dispersion, evacuation or other temporary measures as the execution methods for the performance or non-performance obligation by the obligor. (Article 67)

15. If the Agency has found any fact which may cause threat to life, body or health of people, or will likely cause material damage on property, and the circumstance is urgent, the Agency may adopt immediate measures such as restraint, compulsory refuge, dispersion, evacuation or restriction on entry/leave or other necessary immediate measures. (Article 80)

16. In case of any urgency where the Agency cannot prevent from any damage on life, body, health or material damage on property unless using or limiting the use of land, residence building, building or objects of people, the Agency may act accordingly. (Article 81)

17. The amendment supplements the provisions to retain, dispose, return or reimburse financially a dangerous weapon, explosive or other dangerous articles which might cause damage to life, body, health or property. (Articles 82 to 85)

18. The person subject to execution or the interested person may raise his/her objection with reasons on-site when he/she believes that his/her right is infringed by the execution measures. (Article 88)

David Tsai / Lia Wang