The Ministry of Transportation and Communications establishes the Taiwan International Ports Corporation, Ltd. (herein, TIPC) as the public enterprise responsible to manage and operate the International commercial ports. The provisions of this act govern the establishment of TIPC.
TIPC is a public enterprise wholly owned and operated by the Government of the Republic of China.

TIPC scope of operations includes:
1. All planning, development, and management activities conducted within the jurisdiction of commercial ports.
2. The management and provision of services related to ocean shipping within the jurisdiction of commercial ports.
3. The development and management of port free trade zones (FTZs).
4. The development and management of tourism and recreation businesses.
5. The investment in, reinvestment in, and management of relevant domestic and foreign enterprises.
6. Other relevant transportation, construction, and other tasks designated and approved by the competent authority.

TIPC may establish domestic and foreign subsidiaries and branch offices to support normal business operations.

TIPC shall maintain a Board of Directors with 15 to 23 members and a Board of Supervisors with 3 to 5 members.
The Chairman of the Board of Directors shall be nominated by the industry association and must have the support of at least one-fifth of currently seated Directors.

The scope of authority of the Board of Directors includes:
1. Review and approve all rules and regulations governing TIPC and the Board of Directors.
2. Establish the TIPC organizational charter.
3. Review and approve adjustments to TIPC capitalization.
4. Review and approve TIPC annual business policies, business plans, budgets, and financial statements.
5. Review and approve TIPC investment and reinvestment plans.
6. Review and approve the use of TIPC assets for financial collateral or loan purposes.
7. Appoint and dismiss the TIPC President and Vice President.
8. Review and approve (or establish) TIPC human-resource rules and regulations.
9. Establish the TIPC code of business practices.
10. Establish TIPC internal control systems.
11. Establish, make changes to, and close TIPC domestic and overseas branches.
12. Review and approve tasks assigned by the Ministry of Transportation and Communications.
13. Review and approve (or establish) other matters mandated by law or the TIPC charter.

The scope of authority of the Board of Supervisors includes:
1. Investigations into the status of TIPC business and financial affairs.
2. Review and approve TIPC financial accounts and documents.
3. Other matters mandated by law or the TIPC charter.

TIPC shall request Ministry of Transportation and Communications approval for the following:
1. TIPC annual business plan.
2. TIPC charter and rules and regulations governing the Board of Directors.
3. Adjustments to TIPC capitalization.
4. TIPC annual budget and financial statement.
5. Disposition of land or buildings owned by the TIPC.
6. TIPC investments and reinvestments.
7. The use of TIPC assets for financial collateral or loan purposes.
8. Other matters, as described by law, requiring the approval of the Ministry of Transportation and Communications.

Fixed assets required by the TIPC, may be purchased through government investment or leased, purchased, or otherwise secured by the Maritime and Port Bureau and provided to the TIPC for its benefit to develop, manage, and use. The TIPC shall without payment have access to non-fixed and fixed assets either in the public domain or necessary to support government policies.

Contracts that involve port operations that were entered into by third parties and other agencies with TIPC’s predecessor which were four Harbor Bureaus ,MOTC or their subsidiary organizations shall be transferred to the TIPC.

The TIPC shall assign 10% of its after-tax earnings into a mandatory surplus reserve fund. At TIPC’s discretion, additional percentages of after-tax earnings may be assigned into a separate special surplus reserve fund and the port construction fund. Further, the TIPC shall transfer 18% of after-tax earnings to municipal and county / city governments with local authority over TIPC ports.
Additions to the mandatory surplus reserve are not required when the value of the mandatory surplus reserve fund equals the capitalized value of TIPC.
Percentages specified in paragraph 1 above as well as other earnings allocation issues shall be set by the Ministry of Transportation and Communications and announced by the Executive Yuan.

In addition to Articles 12 and 14, TIPC employees from the level of Vice President and below shall be hired and managed in accordance with TIPC personnel regulations and hiring contracts. TIPC personnel practices are not subject to regulations related to government employees.
TIPC personnel regulations related to salary, retirement, pensions, and severance shall be set by the Board of Directors, approved by the Ministry of Transportation and Communications, and announced by the Executive Yuan.
Prior to promulgation of this Article and apart from those employees transferred to the MOTC’s Maritime and Port Bureau, the Ministry of Transportation and Communications may arrange for the consensual transfer of current employees of the four Harbor Bureaus and their subsidiary organizations (hereafter, predecessor agencies) with government-employee status to other agencies / organizations. Remaining employees shall be formally converted into TIPC employees.

TIPC employees that take voluntary retirement, severance, or resignation within the first 6 months after TIPC incorporation shall be entitled to a maximum additional compensation of 7 months’ salary (inclusive, if applicable, of the 1 months’ salary guaranteed under the Labor Standards Act). Specific measures shall be set by the Ministry of Transportation and Communications and announced by the Executive Yuan.
With regard to the aforementioned additional compensation, employees that had applied for early retirement who reach compulsory retirement age shall be eligible to receive an additional compensation amount calculated to the month at which they submitted their early retirement request in accordance with Article 16, Paragraph 2 of the Civil Servant Retirement Act. Compensation equal to one additional month shall be provided for each month of early retirement taken. Contract employees that take early leave shall be compensated based on the number of months already worked. Employees not eligible to receive national government employee and school staff insurance (GESSI) pension payments shall receive a GESSI salary loss offset.
Employees described in paragraph 2 that are employed by a public agency within six months of retirement, severance, or resignation shall have their additional compensations (exclusive of the one months’ salary guaranteed by the Labor Standards Act) deducted by an appropriate ratio that shall be returned to the TIPC. Further, GESSI salary loss offset payments received should be deducted by that public agency from any future GESSI payments received as a result of GESSI enrollment and returned to the TIPC. This deduction shall not be subject to GESSI Act Article 18 restrictions with regard to the transfer, offset, seizure, or use as security of such payments. However, in cases where the currently requested pension value is less than the originally requested compensation, only compensation pension value received shall be returned.
The GESSI salary loss offset in paragraph 2 may be provided in a lump-sum pension in accordance with the GESSI.
The additional compensation in paragraph 2 may be issued as a single salary for employees (excluding contract employees). This single salary paid on a monthly basis shall be exclusive of allowances, additional payments, and awards. Contract employees shall be compensated on a monthly basis as stipulated by contract.
Positions dealing with partnerships with outside agencies / organizations or schools that are reduced, merged, changed, or eliminated shall be eligible for retirement, severance or resignation benefits in accordance with relevant regulations. Those who receive additional compensation are not subject to rules regarding additional compensation in paragraph 2.
Measures and responsibilities during implementation of the terms of paragraphs 2 through 4 shall be set by the Ministry of Transportation and Communications.
Apart from those who voluntarily resign their positions, employees noted in paragraph 1 that transfer to the TIPC shall be guaranteed a position within TIPC and shall retain their accumulated years-in-service, current salary level, and retirement, severance, pension and other labor benefits.

Current public employees of TIPC’s predecessor organizations who have passed government examinations shall not be limited by regulations governing transference stated in the Civil Service Examination Act, Civil Service Employment Act or other regulations related to official civil servant examinations upon assisted transference into the original appointing agency or a sub-agency, school, original examination organization or a sub-organization, non-school organization, or school service.
With regard to later position transfers made during the allowed position transfer time period, employees shall be limited to: agencies / organizations specified in their original examination qualifications, schools, original examination organization or organization assisting with transfer, school administrative organizations or sub-organizations, and school-related responsibilities.
Employees in paragraph 1 with professional or technical civil servant qualifications are not subject to limitations set forth in transference regulations during the permitted transfer period. However, these employees must serve in the transferring organization or the organization (or its sub-organizations) assisting with the transfer for a period of at least 3 years before transferring to another organization.

Employees that transfer into TIPC shall from the date of TIPC incorporation abide by their original terms of transportation / public servant employment. Those that remain government employees (continuing employees) shall have matters related to certifications, employment conditions, salary, promotion, guarantees, official level, service, awards / recognitions, training qualifications, insurance, retirement, pension, welfare rights, rights of assembly, labor rights, and other rights handled according to applicable laws unless otherwise specified. With the exception of the TIPC President, promotions and qualifications considerations for all TIPC staff shall be handled in accordance with the rules and methods practiced by the predecessor agencies. However, the Executive Yuan in cooperation with the Examination Yuan shall handle issues not addressed by prior public servant-related regulations.
TIPC employees that continue under transportation staff regulations shall be compensated in accordance with the TIPC transportation staff salary schedule. The Board of Directors shall set appropriate new position names and hierarchy designations for these employees in the new transportation staff title and salary schedule. Revisions to this schedule shall be handled in the same manner.
With regard to paragraph 2, TIPC shall establish review and evaluation criteria in accordance with relevant regulations for senior officials and executive staff that transfer over from predecessor agencies.
Contract staff hired under normal predecessor agency contract hiring rules shall be dismissed upon TIPC incorporation. Contribution benefits originally due based on relevant agency / school contract staff policies shall be replaced with the terms stated in Article 11, paragraph 1.
Limited-term employees retained by predecessor agencies shall be transferred to parallel responsibilities in TIPC upon TIPC incorporation and shall remain subject to original rules and regulations.
Upon TIPC incorporation, predecessor agency employees not covered under either transportation staff or public servant rules and regulations, including officials / employees hired under limited-term agreements or contractual agreements, unlicensed seamen, uncertified technical assistants, unlicensed associate clerks as well as odd-jobbers, maintenance workers, temporary hires, temporary contract hires, contract workers, and irregular contract workers shall be transferred to parallel responsibilities in TIPC and remain subject to original rules and regulations until their departure or retirement.
Continuing employees from paragraph 1 and contract employees and unlicensed seamen from paragraph 6 may within 5 years of TIPC incorporation opt to come under TIPC regulations stipulated in Article 11, paragraph 1, at which time they will no longer be subject to relevant public servant or transferred staff regulations. Status change decisions are final.
Retirement and severance terms for continuing employees shall continue to follow regulations for public servants. TIPC shall continue to allocate an adequate budget in order to cover obligations under relevant regulations.

Those employees that under the terms of paragraph 7 in the previous Article opt out of coverage under public servant-related regulations shall be entitled to use the method in Article 14 of the GESSI Act to calculate their lump sum payment due as compensation for loss of GESSI coverage and shift to national labor insurance coverage.
Those employees in the previous paragraph who afterward again join GESSI shall, upon beginning to receive their pension, have their previous lump sum payment deducted from pension payments by their insurance provider, with said deduction transferred to TIPC. This deduction shall not be subject to GESSI Act Article 18 restrictions with regard to the transfer, offset, seizure, or use as security of such payments. However, in cases where the currently requested pension value is less than the originally requested compensation, only compensation pension value received shall be returned.

TIPC shall be responsible to cover the additional compensation amounts and GESSI loss compensation for public-servant-status employees addressed in Article 12, paragraphs 2 and 3 (i.e., those who choose voluntary retirement, are laid off or resign) and the additional compensation amounts for non-public-servant-status employees.

Continuing employees and predecessor agency employees that have arranged for retirement / pension shall, prior to joining the new retirement / pension scheme, be compensated by the TIPC through relevant annual budgetary allocations.

Predecessor agency employees that transfer to TIPC upon incorporation who are on approved leave, suspension (including those whose reinstatement has yet to be determined), and leave without salary shall come under the jurisdiction of TIPC. Employees approved for legally sanctioned leave without salary shall be permitted to return to their position. Those employees able but unwilling to transfer to a position at TIPC may request the Ministry of Transportation and Communications to arrange a transfer to another agency or may arrange their retirement, severance, or resignation.

Predecessor agency employees who have been retired or receive pensions shall continue to receive full benefits due under the Civil Servant Retirement Act / Civil Servant Survivor Relief Act.
Retirement payments, pension payments, and relief payments as well as retirement care matters shall be handled by TIPC. Necessary funding shall be arranged in accordance with Article 17 and funds related to retirement and care shall be provided by the TIPC.

TIPC shall fund an employees’ welfare fund in accordance with employee welfare fund and other relevant regulations.

Apart from TIPC and its authorized agents, no one shall be permitted to display the TIPC trade name, services or products (in Chinese or any other language) in any typographic, image, symbolic or composite format related to port / harbor / shipping matters.

The date of enforcement of this Statute shall be determined by the Executive Yuan.