萬國法律事務所

The Taiwanese Bureau of Foreign Trade (BOFT), under the Ministry of Economic Affairs, recently removed China from the Strategic High-tech Commodities (SHTC) Export Ban List.

The main purpose in restricting exports of strategic high-tech commodities is to carry out the international strategy on controlling nuclear weapons, missiles, biotechnology weapons, and other weapons of mass destruction (WMD). The import and export restrictions on SHTC are widely adopted by advanced countries.

According to Taiwan’s past regulations, exports of SHTC were strictly banned to countries including Iran, Iraq, North Korea, Cuba, Sudan, Syria, and China were strictly banned. Exporting SHTC to China could result in the imposition of severe criminal penalties. However, China has been removed from the ban list in most advanced countries, including the US, EU, Japan, and South Korea. To improve Taiwan’s trade relationship with China and to implement the Taiwan Government’s policy of further opening the large Chinese market, the BOFT has now removed China from the export ban list.

Nevertheless, all exports of SHTC, whether to banned areas or unrestricted areas, require prior permission. Exporters must apply for permission in advance, and the authorities will verify whether the ultimate use matches the buyer’s scope of business. Exporters who ship SHTC without permission may face a fine of between NT$ 30,000 and NT$ 300,000, in addition to administrative penalties.

Despite the amendments, the restriction on 12 types of items related to semiconductor manufacturing equipment remains in place. According to Taiwan’s Foreign Trade Act, the commodities list, and restricted areas of SHTC (戰略性高科技貨品種類、特定戰略性高科技貨品種類及輸出管制地區), export of the 12 types of semiconductor manufacturing equipments are still strictly controlled. Export of these goods without permit may still subject the exporter to imprisonment.

Exporters with a solid export history, such as TSMC, may receive permission for a longer period of up to three years.