Singapore and the Separate Customs Territory of Taiwan, Penghu,
Kinmen and Matsu (hereinafter referred to as “ Chinese Taipei
” ), hereinafter collectively referred to as “ the Parties ”
and individually as “ a Party ”;

Conscious of their bonds of longstanding friendship and strong
trade and investment relationship;

Reaffirming their commitment to securing trade liberalisation
and an outward-looking approach to trade and investment;

Convinced that their economic integration would generate larger
economies of scale, provide greater work opportunities, and
enhance transparency for economic activities for their
businesses as well as for other businesses in the Asia-Pacific
region;

Sharing the belief that an Economic Partnership Agreement
between the Parties would improve their attractiveness to
capital and human resources, and create larger and new markets,
to expand trade and investment not only between them but also in
the region;

Affirming their commitment to fostering the development of open
market economy in the Asia-Pacific region, and to encouraging
economic integration of Asian economies in order to further the
liberalisation of trade and investment in the region;

Reaffirming that this Agreement shall contribute to the
expansion and development of world trade under the multilateral
trading system embodied in the Marrakesh Agreement Establishing
the World Trade Organization (hereinafter referred to as the “
WTO Agreement ” );

Building on their respective rights and obligations under the
WTO Agreement and other multilateral, regional and bilateral
instruments of cooperation; and

Resolved to promote reciprocal trade and investment, and to
avoid circumvention of benefits of regional trade integration,
through the establishment of clear and mutually advantageous
trade rules, and industry as well as regulatory cooperation;

HAVE AGREED as follows:

CHAPTER 1
GENERAL PROVISIONS

ARTICLE 1.1 ESTABLISHMENT OF FREE TRADE AREA
The Parties to this Agreement, consistent with Article XXIV of
GATT 1994 and Article V of GATS, hereby establish a free trade
area in accordance with the provisions of this Agreement.

ARTICLE 1.2 ENFORCEMENT
1. Each Party is fully responsible for the observance of all the
provisions of this Agreement.
2. In fulfilling its obligations and commitments under this
Agreement, each Party shall ensure their observance by all
levels of its government and by non-governmental bodies in
the exercise of governmental powers delegated by the
government or authorities within its territory.

ARTICLE 1.3 OBJECTIVES
The objectives of this Agreement as elaborated more specifically
through its principles and rules are to:
(a) liberalise and facilitate trade in goods and services and
expand investment between the Parties;
(b) establish a cooperative framework for strengthening the
economic relations between the Parties;
(c) establish a framework conducive for a more favourable
environment for their businesses and promote conditions of
fair competition in the free trade area;
(d) establish a framework of transparent rules to govern trade
and investment between the Parties; and
(e) create effective procedures for the implementation and
application of this Agreement.

ARTICLE 1.4 RELATION TO OTHER AGREEMENTS
1. The Parties reaffirm their existing rights and obligations
with respect to each other under existing bilateral and
multilateral agreements to which the Parties are party,
including the WTO Agreement.
2. In the event of any inconsistency between this Agreement and
other agreements to which the Parties are party, the Parties
shall immediately consult with each other with a view to
finding a mutually satisfactory solution, taking into
consideration customary rules of public international law.
3. Notwithstanding paragraph 2, if this Agreement explicitly
contains provisions regarding such inconsistency as indicated
in paragraph 2, those provisions shall apply.

ARTICLE 1.5 REFERENCE TO OTHER AGREEMENTS
1. For the purposes of this Agreement, any reference to articles
in GATT 1994 or GATS includes the interpretative notes, where
applicable.
2. Any reference in this Agreement to any other treaty or
international agreement shall be made in the same terms to
its successor treaty or international agreement to which the
Parties are party.

CHAPTER 2
GENERAL DEFINITIONS
For the purposes of this Agreement, unless otherwise specified:
Agreement means the Agreement between Singapore and the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu on
Economic Partnership;
APEC means the Asia-Pacific Economic Cooperation;
citizen means:
(a) with respect to Singapore, any natural person who is a
citizen of Singapore within the meaning of its Constitution
and its domestic laws; and
(b) with respect to Chinese Taipei, any natural person who has
the citizenship of Chinese Taipei with personal
identification registration with the authorities of Chinese
Taipei in accordance with its domestic laws;
Customs Valuation Agreement means the Agreement on
Implementation of Article VII of the General Agreement on Tariff
and Trade 1994, which is part of the WTO Agreement;
days means calendar days including weekends and holidays;
enterprise means any corporation, company, association,
partnership, trust, joint venture, sole-proprietorship or other
legally recognised entity that is duly incorporated,
constituted, set up, or otherwise duly organised under the law
of a Party, including branches, regardless of whether or not the
entity is organised for pecuniary gain, privately or otherwise
owned, or organised with limited or unlimited liability;
existing means in effect at the time of entry into force of this
Agreement;
GATS means the General Agreement on Trade in Services, which is
a part of the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994,
which is a part of the WTO Agreement;
generally accepted accounting principles means the recognised
consensus or substantial authoritative support in the territory
of a Party with respect to the recording of revenues, expenses,
costs, assets and liabilities, the disclosure of information and
the preparation of financial statements. These standards may
encompass broad guidelines of general application as well as
detailed standards, practices and procedures;
Harmonized System (HS) means the Harmonized Commodity
Description and Coding System, including its General Rules of
Interpretation, Section Notes and Chapter Notes and amendments
thereto;
measure means any law, regulation, procedure or administrative
action, requirement or practice;
natural person of a Party means a citizen or permanent resident
of a Party;
permanent resident means any person who has the right of
permanent residence in the territory of a Party;
person means a natural person or an enterprise;
person of a Party means a citizen, permanent resident or an
enterprise of a Party;
territory means:
(a) with respect to Singapore, its land territory, internal
waters and territorial sea, as well as any maritime area
situated beyond the territorial sea which has been or might
in the future be designated under its national law, in
accordance with international law, as an area within which
Singapore may exercise sovereign rights or jurisdiction with
regards to the sea, the sea-bed, the subsoil and the natural
resources; and
(b) with respect to Chinese Taipei, in the context of this
Agreement and consistent with Article XXIV of GATT 1994 and
Article V of GATS the land and sea constituting the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu as
applied in the WTO;
central level of government means:
(a) for Singapore, the national level of government; and
(b) for Chinese Taipei, the central level of government;
local level of government means:
(a) for Singapore, entities with sub-national legislative or
executive powers under domestic law, including Town Councils
and Community Development Councils; and
(b) for Chinese Taipei, a special municipality, county or city,
and any other local governments in accordance with the
provisions of its Local Government Act; and
WTO Agreement means the Marrakesh Agreement Establishing the
World Trade Organization, done on 15 April 1994.

CHAPTER 3
TRADE IN GOODS

ARTICLE 3.1 DEFINITIONS
For the purposes of this Chapter:
consular transactions means requirements that goods of a Party
intended for export to the territory of the other Party must
first be submitted to the supervision of the consul of the
importing Party in the territory of the exporting Party for the
purpose of obtaining consular invoices or consular visas for
commercial invoices, certificates of origin, manifests, shippers
’ export declarations, or any other customs documentation
required on or in connection with importation;
customs duties includes any customs or import duty and a charge
of any kind imposed in connection with the import of a good,
including any form of surtax or surcharge in connection with
such import, but does not include any:
(a) charge equivalent to an internal tax imposed consistently
with Article III:2 of GATT 1994, including excise duties and
goods and services tax or sales tax;
(b) anti-dumping or countervailing duty applied consistently
with the provisions of GATT 1994, the WTO Agreement on
Implementation of Article VI of the General Agreement on
Tariffs and Trade 1994 (hereinafter referred to as “ the
Anti-Dumping Agreement ” ), and the WTO Agreement on
Subsidies and Countervailing Measures; and
(c) fee or other charge in connection with importing
commensurate with the cost of services rendered and do not
represent a direct or indirect protection for domestic goods
or a taxation of imports for fiscal purposes;
duty-free means free of customs duty; and
goods originating in the territories of the Parties means goods
of the Parties that are treated as originating goods in
accordance with Chapter 4 (Rules of Origin).

ARTICLE 3.2 SCOPE AND COVERAGE
Except as otherwise provided, this Chapter applies to the trade
in goods between the Parties.

ARTICLE 3.3 NATIONAL TREATMENT
1. Each Party shall accord national treatment to the goods of
the other Party in accordance with Article III of GATT 1994.
2. To this end, Article III of GATT 1994 and its interpretative
notes are incorporated into and made part of this Agreement,
mutatis mutandis.

ARTICLE 3.4 ELIMINATION OF CUSTOMS DUTIES
1. The provisions of this Chapter concerning the elimination of
customs duties on imports shall apply to goods originating in
the territories of the Parties.
2. Each Party shall eliminate its customs duties on originating
goods of the other Party in accordance with the tariff
schedules set out in Annexes 3A and 3B.
3. Each Party shall not increase an existing customs duty,
introduce a new customs duty or impose an additional customs
duty to that determined under paragraph 2, on the importation
of originating goods.
4. Each Party shall refrain from applying any measure that
reduces or nullifies the commitment of this Chapter.
5. The classification of goods in trade between the Parties
shall be governed by each Party ’ s respective tariff
nomenclature in conformity with the Harmonized System.

ARTICLE 3.5 EXPORT DUTIES
Each Party shall not adopt or maintain any duty, tax or other
charge on the exportation of goods to the territory of the other
Party.

ARTICLE 3.6 ADMINISTRATIVE FEES AND FORMALITIES
Each Party shall ensure, in accordance with Article VIII:1 of
GATT 1994, that all fees and charges of whatever character
(other than customs duties, charges equivalent to an internal
tax or other internal charge applied consistently with Article
III:2 of GATT 1994, and anti-dumping and countervailing duties)
imposed on or in connection with import or export are limited in
amount to the approximate cost of services rendered and do not
represent an indirect protection to domestic goods or a taxation
on imports or exports for fiscal purposes.

ARTICLE 3.7 CONSULAR FEES
1. No Party shall require consular transactions, including
related fees and charges, in connection with the importation
of any good of the other Party.
2. Each Party shall make available and maintain through the
Internet a current list of the fees and charges it imposes in
connection with importation or exportation.

ARTICLE 3.8 GOODS RE-ENTERED AFTER REPAIR AND ALTERATION
1. A Party may not apply a customs duty to a good, regardless of
its origin, that re-enters its territory after that good has
been temporarily exported from its territory to the territory
of the other Party for repair or alteration, regardless of
whether such repair or alteration could be performed in its
own territory.
2. A Party may not apply a customs duty to a good, regardless of
its origin, admitted temporarily from the territory of the
other Party for repair or alteration.
3. For the purposes of this Article, repair and alteration does
not include an operation or process that:
(a) destroys a good ’ s essential characteristics or creates a
new or commercially different good; or
(b) transforms an unfinished good into a finished good.

ARTICLE 3.9 NON-TARIFF MEASURES
1. Neither Party shall adopt or maintain any non-tariff measures
that prohibit or restrict the importation of any good of the
other Party or on the exportation of any good destined for
the territory of the other Party, except in accordance with
its WTO rights and obligations, or in accordance with other
provisions of this Agreement.
2. Each Party shall ensure the transparency of its non-tariff
measures permitted under paragraph 1 and that such measures
are not prepared, adopted or applied with a view to or with
the effect of creating unnecessary obstacles to trade between
the Parties.

ARTICLE 3.10 PUBLICATION
1. Each Party shall promptly publish the following information
in the English language, in a non-discriminatory and
convenient manner, in order to enable interested persons and
the other Party to become acquainted with them:
(a) importation, exportation or transit procedures (including
port, airport, and other entry-point procedures) and
required forms and documents;
(b) applied rates of duties, taxes or charges of any kind
imposed on or in connection with importation or exportation;
(c) rules for the classification or the valuation of products
for customs purposes;
(d) laws, regulations and administrative rulings of general
application relating to rules of origin;
(e) import, export or transit restrictions or prohibitions;
(f) relevant trade-related legislation;
(g) all fees and charges imposed on or in connection with
importation, exportation or transit formalities;
(h) penalty provisions against breaches of import, export or
transit formalities;
(i) appeal procedures;
(j) agreements or parts thereof with any non-Parties relating to
the importation, exportation or transit of goods; and
(k) administrative procedures relating to the imposition of
tariff quotas including quota size, in and out of quota
rates, opening dates, allocation methods, licensing
procedures and requirements, levels of utilisation, and
additional terms and conditions, including any requirements
imposed by government bodies or importing authorities.

ARTICLE 3.11 IMPORT AND EXPORT RESTRICTIONS
Except as otherwise provided in this Agreement, no Party shall
adopt or maintain any prohibition or restriction on the
importation of any good of the other Party or on the exportation
or sale for export of any good destined for the territory of the
other Party, except in accordance with Article XI of GATT 1994
and its interpretative notes, and to this end Article XI of GATT
1994 and its interpretive notes are incorporated into and made a
part of this Agreement, mutatis mutandis（note 1）.

（note 1）For greater certainty, this paragraph applies, inter
alia, to prohibitions or restrictions on the
importation of remanufactured goods.

ARTICLE 3.12 SUBSIDIES AND COUNTERVAILING MEASURES
1. The Parties reaffirm their commitment to abide by the
provisions of Article VI and XVI of the GATT 1994, the WTO
Agreement on Subsidies and Countervailing Measures, and the
WTO Agreement on Agriculture.
2. Notwithstanding paragraph 1, the Parties agree to prohibit
export subsidies on all goods, including agriculture goods.

ARTICLE 3.13 ANTI-DUMPING
The Parties maintain their rights and obligations under Article
VI of GATT 1994 and the Anti-Dumping Agreement, contained in
Annex 1A to the WTO Agreement.

ARTICLE 3.14 SAFEGUARD MEASURES
Bilateral Safeguard Measures
1. If, as a result of the reduction or elimination of a customs
duty under this Agreement, originating goods of a Party are
being imported into the territory of the other Party in such
increased quantities, in absolute terms or relative to
domestic production, and under such conditions as to cause or
threaten to cause serious injury （note 2）to a domestic
industry producing like or directly competitive goods, the
importing Party may:
(a) suspend further reduction of the rate of customs duty on the
good concerned provided for under this Agreement; or
(b) increase the rate of customs duty on the good to a level
which does not exceed the lesser of the most-favoured nation
(hereinafter referred to as “ MFN ” )applied rate of
customs duty on the good in effect:
(i) at the time the measure is taken; or
(ii) on the day immediately preceding the date of entry into
force of this Agreement.
2. A Party shall notify the other Party in writing of the
initiation of an investigation described in paragraph 3 and
consult with the other Party as far in advance of applying a
bilateral safeguard measure as practicable, with a view to
reviewing the information arising from the investigation and
exchanging views on the measure.
3. A Party shall apply a bilateral safeguard measure only
following an investigation by its competent authorities in
accordance with Articles 3 and 4.2(c) of the Agreement on
Safeguards and to this end, Articles 3 and 4.2(c) of the
Agreement on Safeguards are incorporated into and made part
of this Agreement, mutatis mutandis.
4. In the investigation described in paragraph 3, the Party
shall comply with the requirements of Article 4.2(a) of the
Agreement on Safeguards and to this end, Article 4.2(a) of
the Agreement on Safeguards is incorporated into and made
part of this Agreement, mutatis mutandis.
5. Each Party shall ensure that its competent authorities
complete any such investigation within one year following the
date of initiation.
6. Neither Party may apply a bilateral safeguard measure:
(a) except to the extent, and for such period of time, as may be
necessary to prevent or remedy serious injury and to
facilitate adjustment; or
(b) for a period exceeding three (3) years, except that the
period may be extended by up to two (2) years if the
competent authorities of the importing Party determine, in
conformity with the procedures specified in this Article,
that the measure continues to be necessary to prevent or
remedy serious injury and to facilitate adjustment and that
there is evidence that the industry is adjusting.
7. Upon the termination of the measure, the rate of customs duty
shall be the rate which would have been in effect but for the
measure.
8. Provisional Measure:
(a) In critical circumstances where delay would cause damage
that would be difficult to repair, a Party may apply a
bilateral safeguard measure on a provisional basis pursuant
to a preliminary determination that there is clear evidence
that imports of an originating good from the other Party
have increased as the result of the reduction or elimination
of a customs duty under this Agreement, and such imports
cause serious injury, or threat thereof, to the domestic
industry.
(b) The duration of any provisional measure shall not exceed two
hundred (200) days, during which time the Party shall comply
with the requirements of paragraphs 3 and 4. The Party shall
promptly refund any tariff increased if the investigation
described in paragraph 3 does not result in a finding that
the requirements of paragraph 1 are met. The duration of any
provisional measure shall be counted as part of the period
prescribed by subparagraph 6(b).
9. Compensation:
(a) A Party applying a bilateral safeguard measure shall consult
with the other Party in order to mutually agree on
appropriate trade liberalising compensation in the form of
concessions having substantially equivalent trade effects or
equivalent to the value of the additional duties expected to
result from the safeguard measure. The Party shall provide
an opportunity for such consultations no later than thirty
(30) days after the application of the bilateral safeguard
measure.
(b) If the consultations under subparagraph (a) do not result in
an agreement on trade liberalising compensation within
thirty (30) days after the consultations begin, the Party
whose goods are subject to the safeguard measure may take
action with respect to goods of the other Party that has
trade effects substantially equivalent to the safeguard
measure. The Party taking such action shall apply the action
only for the minimum period necessary to achieve the
substantially equivalent effects, and in any event, only
while the measure under paragraph 1 is being applied.
Global Safeguard Measures
10. The Parties maintain their rights and obligations under
Article XIX of GATT 1994 and the Agreement on Safeguards.
11. At the request of the other Party, the Party intending to
take safeguard measures shall immediately provide written
notification of all pertinent information on the initiation
of a safeguard investigation, the provisional findings, and
the final findings of the investigation.
12. No Party shall apply, with respect to the same good, at the
same time:
(a) a bilateral safeguard measure; and
(b) a measure under Article XIX of GATT 1994 and the Agreement
on Safeguards.

（note 2）Serious injury and threat of serious injury shall be
understood in accordance with Article 4.1(a) and (b)
of the Agreement on Safeguards contained in Annex 1A
to the WTO Agreement (hereinafter referred to as the
“ Agreement on Safeguards ” ). To this end, Article
4.1(a) and (b) of the Agreement on Safeguards is
incorporated into and made part of this Agreement,
mutatis mutandis.

ARTICLE 3.15 STANDSTILL
1. Between the time of the signing of the Agreement and the time
when the Agreement comes into force, each Party shall not
increase an existing customs duty or introduce a new customs
duty on the importation of originating goods.
2. Paragraph 1 does not apply to automatic restoration of
customs duty to its previous normal level in the context of
the temporary tariff adjustments as provided for in the
domestic customs regulations of the Parties.

ARTICLE 3.16 COMMITTEE ON TRADE IN GOODS
1. Parties hereby establish a Committee on Trade in Goods,
comprising government representatives of the Parties. The
Committee shall meet on the request of a Party to consider
any matter arising under this Chapter and the Chapter on
Rules of Origin.
2. The Committee’s functions shall include:
(a) monitoring the implementation of this Chapter and Chapter 4
(Rules of Origin) and their Annexes;
(b) promoting trade in goods between the Parties, including
through consultations on modifications to the rules of
origin （note 3）, and other issues as appropriate; and
(c) such other activities as the Parties may agree.
3. As a result of the consultations under subparagraph 2(b), the
Committee may, by decision, amend this Chapter, Chapter 4
(Rules of Origin) and the Annexes to the two aforementioned
Chapters, as required. Such amendments shall be deemed to be
made under paragraph 1 of Article 17.4 (Amendments) and shall
enter into force in accordance with paragraph 2 of Article
17.4 (Amendments).

（note 3）For example, to take into account developments in
production processes, lack of supply of originating
materials, or other relevant factors.

CHAPTER 4
RULES OF ORIGIN

SECTION A: GENERAL RULES OF ORIGIN

ARTICLE 4.1 DEFINITIONS
For the purposes of this Chapter:
aquaculture means the farming of aquatic organisms including
fish, molluscs, crustaceans, other aquatic invertebrates and
aquatic plants, from seedstock such as eggs, fry, fingerlings
and larvae, by intervention in the rearing or growth processes
to enhance production, such as regular stocking, feeding, or
protection from predators;
CIF means the value of the good imported and includes the cost
of insurance and freight up to the port or place of entry in the
country or customs territory of importation. The valuation shall
be made in accordance with the Customs Valuation Agreement;
customs value means:
(a) the price actually paid or payable for a good or material
with respect to a transaction of the seller of the good,
pursuant to the principles of Article 1 of the Customs
Valuation Agreement, adjusted in accordance with Article 8
of the Customs Valuation Agreement; or
(b) in the event that there is no such value or such value of
the good is unascertainable, the value determined in
accordance with Articles 2 through 7 of the Customs
Valuation Agreement;
FOB means the value of the good free on board, independent of
the means of transportation, at the port or site of final
shipment abroad. The valuation shall be made in accordance with
the Customs Valuation Agreement;
fungible goods or materials means goods or materials that are
interchangeable for commercial purposes and whose properties are
essentially identical;
goods wholly obtained or produced entirely in a Party means:
(a) mineral goods extracted from the soil or seabed in the
territory of a Party;
(b) agricultural and plant products grown and harvested, picked
or gathered in the territory of a Party;
(c) live animals, born and raised in the territory of a Party;
(d) goods obtained from live animals in the territory of a
Party;
(e) goods obtained from hunting, trapping, fishing, farming,
gathering, capturing or aquaculture in the territory of a
Party;
(f) goods (fish, shellfish, plant and other marine life) taken
from the sea by a vessel registered or recorded with a
Party;
(g) goods obtained or produced on board a factory ship
registered or recorded with that Party, exclusively from
products referred to in subparagraph (f);
(h) waste and scrap derived from production in the territory of
a Party or used articles or goods collected in the territory
of a Party, provided that such goods can no longer perform
their original purposes nor are capable of being restored or
repaired and are fit only for the recovery of raw materials;
(i) goods taken by a Party, or a person of a Party, from the
seabed or beneath the seabed outside its territory, provided
that the Party has rights under international law to exploit
such seabed;
(j) recovered goods derived in the territory of a Party from
used goods and utilised in the territory of the Party in the
production of remanufactured goods; and
(k) goods produced entirely in the territory of a Party
exclusively from goods referred to in subparagraphs (a) to
(j) or from their derivatives, at any stage of production;
heading means the first four digits in the tariff classification
under the Harmonized System;
indirect material means a good used in the production, testing
or inspection of another good but not physically incorporated
into the good, or a good used in the maintenance of buildings,
or the operation of equipment associated with the production of
a good, including:
(a) fuel, energy, catalysts and solvents;
(b) equipment, devices, and supplies used for testing or
inspecting the goods;
(c) gloves, glasses, footwear, clothing, safety equipment and
supplies;
(d) tools, dies and moulds;
(e) spare parts and materials used in the maintenance of
equipment and buildings;
(f) lubricants, greases, compounding materials and other
materials used in production or used to operate equipment
and buildings; and
(g) any other goods that are not incorporated into the good but
whose use in the production of the good can reasonably be
demonstrated to be a part of that production;
material means a good or any matter or substance that is used or
consumed in the production of goods or transformation of another
good;
minimal operations or processes means operations or processes
which contribute minimally to the essential characteristics of
the goods and which by themselves, or in combination, do not
confer origin as provided for in Article 4.4 (Operations that do
not Confer Origin);
packing materials and containers for shipment means goods used
to protect a good during its transportation, other than
containers and packaging materials used for retail sale;
production means methods of obtaining goods including, but not
limited to growing, raising, mining, harvesting, fishing,
farming, trapping, hunting, capturing, aquaculture, gathering,
collecting, breeding, extracting, manufacturing, processing,
assembling or disassembling a good;
recovered goods means materials in the form of individual parts
that result from:
(a) the complete disassembly of used goods into individual
parts; and
(b) the cleaning, inspecting, or testing or other processing of
those parts, and as necessary for improvement to sound
working condition one or more of the following processes:
welding, flame spraying, surface machining, knurling,
plating, sleeving and rewinding in order for such parts to
be assembled with other parts, including other recovered
parts in the production of a remanufactured good, as listed
within Annex 4A;
remanufactured goods means an industrial good, listed within
Annex 4A assembled in the territory of a Party, that:
(a) is entirely or partially composed of recovered goods;
(b) has the same life expectancy and meets the same performance
standards as a new good; and
(c) enjoys the same factory warranty as such a new good;
subheading means the first six digits in the tariff
classification under the Harmonized System;
transaction value means the price paid or payable for a good as
determined by the provisions of the Customs Valuation Agreement;
used means used or consumed in the production of goods; and
value means the value of a good or material, pursuant to the
provisions of the Customs Valuation Agreement.

ARTICLE 4.2 ORIGINATING GOODS
Unless otherwise indicated in this Chapter, a good shall be
considered as originating in a Party when:
(a) the good is wholly obtained or produced entirely in the
territory of one Party, pursuant to the definition in
Article 4.1 (Definitions);
(b) the good is produced entirely in the territory of one or
both Parties, exclusively from materials whose origin
conforms to the provisions of this Chapter;
(c) the good is produced in the territory of one or both
Parties, using non-originating materials that conform to a
change in tariff classification, a regional value content,
or other requirements specified in Annex 4B, and the good
meets the other applicable provisions of this Chapter; or
(d) otherwise provided as an originating good under this
Chapter.

ARTICLE 4.3 REGIONAL VALUE CONTENT
1. Where Annex 4B refers to a regional value content, each Party
shall provide that the regional value content of a good shall
be calculated on the basis of the following method:

TV - VNM
RVC = --------------- x 100
TV
where:
RVC is the regional value content expressed as a percentage;
TV is the transaction value of the good, adjusted on an FOB
basis, except as provided in paragraph 3. If no such value
exists or cannot be determined, pursuant to the principles of
Article 1 of the Customs Valuation Agreement, it shall be
calculated pursuant to the principles of Articles 2 to 7 of that
Agreement; and
VNM is the transaction value of the non-originating materials,
when they were first acquired or supplied to the producer of the
goods, adjusted on a CIF basis, except as provided in paragraph
4. If such value does not exist or cannot be determined,
pursuant to the principles of Article 1 of the Customs Valuation
Agreement, it shall be calculated pursuant to that Agreement.
2. The value of the non-originating materials used by the
producer in the production of a good shall not include, for
purposes of calculating the regional value content, pursuant
to paragraph 1, the value of non-originating materials used
to produce the originating materials subsequently used in the
production of the good.
3. When the producer of a good does not export it directly, the
value shall be adjusted up to the point at which the
purchaser receives the good within the territory of a Party
where the producer is located.
4. When the producer of the good acquires a non-originating
material in the territory of the Party where it is located,
the value of such material shall not include freight,
insurance, packing costs and any other costs incurred in
transporting the material from the supplier ’ s warehouse to
the producer ’ s location.

ARTICLE 4.4 OPERATIONS THAT DO NOT CONFER ORIGIN
1. A good shall not be considered to be originating in the
territory of a Party if the following operations are
undertaken exclusively by itself or in combination in the
territory of that Party:
(a) operations to ensure the preservation of products in good
condition during transport and storage (such as drying,
freezing, ventilation, chilling, keeping in brine and like
operations);
(b) simple operations consisting of sifting, classifying,
washing, cutting, slitting, bending, coiling, or uncoiling,
peeling, grinding, unshelling or unflaking, dehusking,
deboning, crushing or squeezing, macerating（note 4）;
(c) changes of packing and breaking up and assembly of
consignments;
(d) packing, unpacking or repacking operations;
(e) affixing of marks, labels or other like distinguishing signs
on products or their packaging;
(f) simple assembly or disassembly of parts or products to
constitute a complete product unless it is for the
production of a remanufactured good as listed within Annex
4A;
(g) simple mixing;
(h) simple making-up of sets of articles;
(i) slaughtering of animals;
(j) salifying or sweetening（note 5）; and
(k) simple dilution with water or with any other aqueous,
ionised or salted solution.
2. For the purposes of this Article, the word “ simple ”
generally refers to relevant activities which need neither
professional skills nor specialised machines, apparatus or
equipment particularly produced or installed for carrying out
the activity.

（note 4）This is applicable to products in HS Chapters 7 and 8.
（note 5）This is applicable to products in HS Chapters 7 and 8.

ARTICLE 4.5 ACCUMULATION
1. Originating materials from the territory of a Party
incorporated in the production of a good in the territory of
the other Party, shall be considered to originate in the
territory of the other Party.
2. For the purpose of establishing that a good is originating,
the producer of a good may accumulate one ’ s production
with the production, in the territory of one or both of the
Parties by one or more producers, of materials incorporated
in the production of the good, so that the production of
those materials is considered as done by that producer,
provided that the good complies with the criteria set out in
Article 4.2 (Originating Goods).

ARTICLE 4.6 DE MINIMIS
A good that does not conform to a change in tariff
classification, pursuant to the provisions of Annex 4B, shall be
considered to be originating if the value of all non-originating
materials used in its production not meeting the change in
tariff classification requirement does not exceed ten (10)
percent of the transaction value of the given good pursuant to
Article 4.3 (Regional Value Content), and the good meets all the
other applicable criteria of this Chapter.

ARTICLE 4.7 ACCESSORIES, SPARE PARTS, AND TOOLS
1. Accessories, spare parts, or tools provided with the good as
part of the standard accessories, spare parts, or tools shall
be regarded as originating goods and shall be disregarded in
determining whether or not all the non-originating materials
used in the production of the originating goods undergo the
applicable change in tariff classification, provided that:
(a) the accessories, spare parts, or tools are not invoiced
separately from the good; and
(b) the quantities and the value of those accessories, spare
parts, or tools are the customary ones for the good.
2. If the goods are subject to a regional value content
requirement, the value of the accessories, spare parts, or
tools shall be taken into account as originating or
non-originating materials, as the case may be, in calculating
the regional value content of the goods.

ARTICLE 4.8 PACKAGING MATERIALS AND CONTAINERS FOR RETAIL SALE
Packaging materials and containers in which goods are packaged
for retail sale, if classified with the goods, shall be
disregarded in determining whether all the non-originating
materials used in the production of those goods have undergone
the applicable change in tariff classification set out in Annex
4B. However, if the goods are subject to a regional value
content requirement, the value of the packaging used for retail
sale will be counted as originating or non-originating, as the
case may be, in calculating the regional value content of the
goods.

ARTICLE 4.9 PACKING MATERIALS AND CONTAINERS FOR SHIPMENT
Packing materials and containers in which a good is packed
exclusively for transport shall not be taken into account for
the purposes of establishing whether the good is originating.

ARTICLE 4.10 INDIRECT MATERIALS
Indirect materials shall be considered to be originating
materials without regard to where they are produced and its
value shall be the cost registered in the accounting records of
the producer of the good.

ARTICLE 4.11 TRANSIT THROUGH NON-PARTIES
1. Preferential tariff treatment provided for in this Agreement
shall be applied to goods that satisfy the requirements of
this Chapter and which are directly transported among the
Parties.
2. Notwithstanding paragraph 1, goods shall be authorised to
transit through the territory of one or more non-Parties, and
to remain stored for a reasonable period of time, which in no
case shall be more than three (3) months from the date of
entry of the goods into the territory of a non-Party
respectively.
3. Goods shall be eligible for preferential tariff treatment in
accordance with this Agreement if they are transported
through the territory of one or more non-Parties, provided
that the goods:
(a) did not undergo operations other than unloading, reloading,
or any other operation necessary to preserve them in good
condition; and
(b) did not enter the commerce of such non-Parties after the
shipment from the Party and before the importation into the
other Party.
4. Compliance with the provisions set out in paragraphs 2 and 3
shall be proved by means of supplying to the customs
administration of the importing Party either customs
documents of the non-Party or documents of the competent
authorities, including commercial shipping or freight
documents.

ARTICLE 4.12 OUTWARD PROCESSING
1. Notwithstanding the relevant provisions of Article 4.2
(Originating Goods) and the product specific requirements set
out in Annex 4B, a good listed in Annex 4C shall be
considered as originating even if it has undergone processes
of production or operation outside the territory of a Party
on a material exported from the Party and subsequently
re-imported to the Party, provided that:
(a) the total value of non-originating inputs as set out in
paragraph 2 does not exceed fifty-five (55) percent of the
customs value of the final good for which originating status
is claimed;
(b) the value of originating materials is not less than
forty-five (45) percent of the customs value of the final
good for which originating status is claimed;
(c) the materials exported from a Party shall have been wholly
obtained or produced in the Party or have undergone therein,
processes of production or operation going beyond the
minimal operations or processes in Article 4.4 (Operations
that do not Confer Origin), prior to being exported outside
the territory of the Party;
(d) the producer of the exported material is the same producer
of the final good for which originating status is claimed;
(e) the re-imported good has been obtained through processes of
production or operation of the exported material; and
(f) the last process of production or operation （note 6） takes
place in the territory of the Party.
2. For the purposes of subparagraph 1(a), the total value of
non-originating inputs shall be the value of any
non-originating materials added in a Party as well as the
value of any materials added and all other costs accumulated
outside the territory of the Party, including transportation
costs.
3. For greater certainty, the verification procedures referred
to in Article 4.18 (Verification of Origin) shall apply in
order to ensure the proper application of this Article. Such
procedures include the provision of information and
supporting documentation, including that relating to the
export of originating materials and the subsequent re-import
of the goods subsequently exported as originating goods, by
the exporting customs administration or exporter upon receipt
of a written request from the customs administration of the
importing Party through the customs administration of the
exporting Party.
4. Upon the request of a Party, the list of products in Annex 4C
may be modified by the Committee on Trade in Goods.

（note 6）The last process of production or operation does not
exclude the minimal operations that do not confer
origin stipulated in Article 4.4 (Operations that do
not Confer Origin).

ARTICLE 4.13 FUNGIBLE GOODS AND MATERIALS
1. Each Party shall provide that the determination of whether
fungible goods or materials are originating goods shall be
made either by physical segregation of each good or material,
or through the use of any inventory management method, such
as averaging, last-in, first-out, or first-in, first-out,
recognised in the generally accepted accounting principles of
the Party in which the production is performed or otherwise
accepted by the Party in which the production is performed.
2. Once a particular inventory management method is selected
under paragraph 1, that method shall continue to be used for
those fungible goods or materials throughout the fiscal year
of the person that selected the inventory management method.

SECTION B: CUSTOMS PROCEDURES RELATING TO ORIGIN

ARTICLE 4.14 DEFINITIONS
For the purposes of this Chapter:
competent government authority means the government authority in
each Party that is responsible for the verification of origin,
as specified in Annex 4D.
day means calendar days, including weekends and holidays, but
for the calculation of time periods, where the last day falls on
a non-working day, the last day will be extended to the next
working day.

ARTICLE 4.15 CLAIMS FOR PREFERENTIAL TREATMENT
1. For the purpose of obtaining preferential tariff treatment in
the other Party, a proof of origin in the form of a
Declaration of Origin shall be completed in English and
signed by an exporter or producer of a Party, certifying that
a good qualifies as an originating good for which an importer
may claim preferential treatment upon the importation of the
good into the territory of the other Party.
2. The Declaration of Origin shall be in the template set out in
Annex 4E, which may thereafter be revised by mutual consent
of the Parties.
3. Each Party shall:
(a) require an exporter in its territory to complete and sign a
Declaration of Origin for any exportation of good for which
an importer may claim preferential tariff treatment upon
importation of the good into the territory of the other
Party; and
(b) provide that where an exporter in its territory is not the
producer of the good, the exporter may complete and sign a
Declaration of Origin on the basis of:
(i) his knowledge of whether the good qualifies as an
originating good;
(ii) his reasonable reliance on the producer ’ s written
representation that the good qualifies as an originating
good; or
(iii) a completed and signed certification for the good
voluntarily provided to the exporter by the producer.
4. Nothing in paragraph 3 shall be construed to require a
producer to provide a Declaration of Origin to an exporter.
5. Each Party shall provide that a Declaration of Origin that
has been completed and signed by an exporter or producer in
the territory of the other Party that is applicable to a
single importation of one or more goods into the Party ’ s
territory shall be accepted by its customs administration for
one (1) year from the date on which the Declaration of Origin
was signed.

ARTICLE 4.16 WAIVER OF DECLARATION OF ORIGIN
Each Party shall provide that a Declaration of Origin shall not
be required for the importation of any good whose custom value
does not exceed US$1,000 or its equivalent amount in the Party
’ s currency; or such higher amount as may be established by a
Party which is importing, provided that the importation does not
form part of a series of importations that may reasonably be
considered to have been undertaken or arranged for the purpose
of avoiding the declaration requirements.

ARTICLE 4.17 RECORD KEEPING REQUIREMENT
1. Each Party shall provide that an exporter or a producer in
its territory that completes and signs a Declaration of
Origin shall maintain in its territory, for a period at least
three (3) years after the date on which the Declaration of
Origin was issued or signed, all records relating to the
origin of a good for which preferential tariff treatment was
claimed in the territory of the other Party, including
records associated with:
(a) the purchase of, cost of, value of, shipping of, and payment
for, the good that is exported from its territory;
(b) the sourcing of, purchase of, cost of, value of, and payment
for, all materials, including indirect materials, used in
the production of the good that is exported from its
territory; and
(c) the production of the good in the form in which the good is
exported from its territory.
2. Each Party shall provide that an importer claiming
preferential tariff treatment for a good imported into the
Party ’ s territory shall maintain in that territory, for a
period of at least three (3) years after the date of
importation of the good, such documentation, including a copy
of the Declaration of Origin, as the Party may require
relating to the importation of the good.
3. The records to be maintained may include electronic records
and shall be maintained in accordance with the domestic laws
and practices of each Party.

ARTICLE 4.18 VERIFICATION OF ORIGIN
1. For the purposes of determining whether a good imported into
its territory from the territory of the other Party qualifies
as an originating good, the importing Party may conduct
verification by means of:
(a) request for information from the importer;
(b) written questionnaires or request for information to the
exporter or producer of the good(s) in the territory of the
other Party through the competent government authority of
the exporting Party;
(c) request for assistance from the competent government
authority of the exporting Party as provided for in
paragraph 3 below; or
(d) verification visits to the premises of an exporter or a
producer in the territory of the other Party, to observe the
facilities and the production processes of the good and to
review the records referring to origin including accounting
files.
2. For the purpose of subparagraphs 1(a) and 1(b), the importer,
exporter or producer:
(a) shall answer and return the request within a period of
thirty (30) days from the date on which it was received;
(b) may have one opportunity, during the period established in
subparagraph (a), to make a written request to the competent
government authority of the importing Party for an extension
of the answering period, for a period not exceeding thirty
(30) days. For the exporter or producer, this written
request will be made through the competent government
authority of the exporting Party.
In the case where the importer, exporter, or producer does not
return the written request for the information made by the
competent government authority of the importing Party within the
given period or its extension, the importing Party may deny the
preferential tariff treatment.
3. For the purpose of subparagraph 1(c), the customs
administration of the importing Party:
(a) may request the competent government authority of the
exporting Party to assist it in verifying:
(i) whether the goods declared in the Declaration of Origin
qualify as originating goods; and/or
(ii) the accuracy of any information contained in the
Declaration of Origin;
(b) shall provide the competent government authority of the
other Party with:
(i) the reasons why such assistance is sought;
(ii) the Declaration of Origin, or a copy thereof; and
(iii) any information and documents as may be necessary for
the purpose of providing such assistance.
4. To the extent allowed by its domestic law and practices, the
competent government authority of the exporting Party shall
fully cooperate in any action to verify the origin as
established under subparagraph 1(b) and paragraph 3 above. In
the absence of such cooperation, the importing Party shall
determine the accuracy of the information contained in the
Declaration of Origin with the best information available at
that moment.
5. For the purpose of subparagraph 1(d), the competent
government authority of the importing Party shall:
(a) deliver, at least thirty (30) days prior to conducting a
verification visit, a written notification of its intention
to conduct the visit to the exporter or producer and to the
competent government authority of the exporting Party; and
(b) obtain the written consent of the exporter or producer.
6. Pursuant to paragraph 5, the exporter or producer may within
fifteen (15) days of receiving the notification, request to
the competent government authority of the importing Party for
a postponement of the proposed verification visit, for a
period not exceeding sixty (60) days. This extension shall be
notified to the competent government authorities of the
importing and exporting Parties.
7. A Party shall not deny preferential tariff treatment to a
good solely because a verification visit was postponed
pursuant to paragraph 6.
8. In the case, where an exporter or producer does not give its
written consent to a proposed verification visit within
thirty (30) days from the receipt of notification, the
importing Party may deny preferential treatment to the good
that is subject to verification.
9. After concluding the actions related to subparagraphs 1(a),
1(b), 1(c) or 1(d), and no later than fifteen (15) days after
the outcome of the actions taken, the competent government
authority of the importing Party shall provide a written
determination of whether the good is originating and
therefore eligible for preferential tariff treatment based on
the relevant law and findings of fact. In respect of
subparagraphs 1(a) or 1(b), the maximum time to be taken from
the start of the verification to its conclusion should not
exceed one hundred and twenty (120) days. In respect of
subparagraphs 1(c) or 1(d), the maximum time to be taken from
the start of the verification to its conclusion should not
exceed one hundred and fifty (150) days.
10. When the customs administration has a reasonable doubt on
the origin of the goods at the time of importation, the
goods may be released by the customs administration of the
importing Party on a security or upon payment of duties,
pending the outcome of the origin verification, provided
that they are not held to be subject to import prohibition
or restriction and there is no suspicion of fraud. The
relevant duties paid shall be refunded once the outcome of
the origin verification confirmed that the good qualifies as
an originating good.
11. The importing Party may deny preferential treatment to an
importer on any subsequent import of a good when its
competent government authority had already determined that
an identical good was not eligible for that treatment,
provided that such good is exported by the same exporter or
produced by the same producer subject to verification, until
the importing Party determines that the importer, exporter,
or producer is in compliance with this Chapter.

ARTICLE 4.19 OBLIGATIONS RELATING TO IMPORTATIONS
1. Any good that meets all the applicable requirements in this
Chapter is eligible for preferential tariff treatment.
2. A Party may deny preferential tariff treatment under this
Agreement to imported good(s) if the importer fails to comply
with any requirement of this Chapter. Slight discrepancies as
between the wording and details stated in the Declaration of
Origin produced to the customs administration of the
importing Party shall not, of itself, cause any claim for
preferential tariff treatment to be denied.
3. Except as otherwise provided in this Chapter, each Party
shall require an importer in its territory that claims
preferential tariff treatment for a good imported into its
territory from the territory of the other Party to:
(a) declare in the importation document that the good qualifies
as an originating good, based on a Declaration of Origin;
(b) have the Declaration of Origin in its possession at the time
the declaration is made;
(c) provide, on the request of that Party ’ s customs
administration, a copy of the Declaration of Origin; and
(d) promptly submit a corrected declaration in a manner required
by the customs administration of the importing Party and pay
any owed duties where the importer has reason to believe
that a Declaration of Origin on which a declaration was
based contains information that is not correct.
4. Each Party shall provide that, where a good qualified as
originating when it was imported into the territory of that
Party but no claim for preferential tariff treatment was made
at that time, the importer of the good may, no later than one
(1) year after the date on which the good was imported, apply
for a refund of any excess duties paid as the result of the
good not having been granted preferential tariff treatment,
on presentation of:
(a) a written declaration that the good qualified as
originating;
(b) a copy of the Declaration of Origin; and
(c) such other documentation relating to the importation of the
good as the importing Party may require.

ARTICLE 4.20 OBLIGATIONS RELATING TO EXPORTATIONS
1. Each Party shall provide that an exporter or a producer in
its territory shall submit a copy of the Declaration of
Origin to its competent government authority upon request.
2. When an exporter or a producer in its territory has provided
a Declaration of Origin and has reason to believe that such
declaration contains or is based on incorrect information,
the exporter or producer shall promptly notify in writing
every person to whom the exporter or producer provided the
declaration of any change that could affect the accuracy or
validity of the declaration, provided that such notification
is made before the initiation of audit procedures. Any
penalty, if applicable, for providing an incorrect
Declaration of Origin for preferential tariff treatment shall
be subject to the domestic law of each Party that is dealing
with the offence under its jurisdiction.

ARTICLE 4.21 CUSTOMS FOCAL POINT
1. Each Party shall designate a customs focal point for all
matters relating to this Chapter, one (1) month prior to the
entry into force of this Agreement.
2. When the customs focal point of a Party raises any matter
arising from this Chapter to the focal point of the other
Party, the customs administration of the latter Party shall
assign its own experts to look into the matter and to respond
with its findings and proposed solution for resolving the
matter within a reasonable period of time.
3. The customs focal point shall endeavour to resolve any matter
raised under this Chapter through consultations.

CHAPTER 5
CUSTOMS PROCEDURES

ARTICLE 5.1 SCOPE
This Chapter shall apply in accordance with the Parties ’
respective domestic laws and regulations, to customs procedures
required for clearance of goods traded between the Parties.

ARTICLE 5.2 GENERAL PROVISIONS
1. The Parties recognise that the objectives of this Agreement
may be promoted by the simplification of customs procedures
for their bilateral trade.
2. Customs procedures of the Parties shall conform, where
possible, with the standards and recommended practices of the
World Customs Organisation.
3. The customs administrations of the Parties shall periodically
review their customs procedures with a view to their further
simplification and the development of further mutually
beneficial arrangements to facilitate bilateral trade.

ARTICLE 5.3 PUBLICATION AND AVAILABILITY OF INFORMATION
1. Each Party shall ensure that its laws, regulations,
procedures, and administrative rulings of general application
governing customs matters are promptly published on the
Internet.
2. To the extent possible, each Party shall publish in advance
any regulations of general application governing customs
matters that it proposes to adopt and provide interested
persons within its territory with the opportunity to comment
before adopting them.
3. Each Party shall establish, and maintain one or more inquiry
points to address inquiries from interested persons
pertaining to customs matters, and shall make available on
the Internet information on such inquiry points.
4. For greater certainty, nothing in this Article or in any part
of this Agreement shall require any Party to publish law
enforcement procedures and internal operational guidelines
including those related to conducting risk analysis and
targeting methodologies.

ARTICLE 5.4 PAPERLESS TRADING
1. The Parties shall endeavour to provide an electronic
environment that supports business transactions between their
respective customs administrations and their trading
communities.
2. The Parties shall exchange views and information on realising
and promoting paperless trading between their respective
customs administrations and their trading communities.

ARTICLE 5.5 RISK MANAGEMENT
1. Each Party shall adopt a risk management approach in its
customs activities based on its identified risk of goods in
order to facilitate the clearance of low-risk consignments,
while focusing its inspection activities on high-risk goods.
2. The Parties shall exchange information on risk management
techniques adopted by their customs administrations.

ARTICLE 5.6 SHARING OF BEST PRACTICES
The Parties shall facilitate initiatives for the exchange of
information on best practices in relation to customs procedures.

ARTICLE 5.7 REVIEW AND APPEAL
1. Each Party shall ensure that the importers and exporters in
its territory have access to:
(a) administrative review by an authority supervising the
customs administration; and
(b) judicial review of the determination taken at the final
level of administrative review, in accordance with the Party
’ s domestic laws.
2. Notice of the decision on appeal, together with the reasons
for such decision, shall be given to the appellant in
writing.

ARTICLE 5.8 SINGLE WINDOW
1. To avoid repeated submissions of documentation and/or data
requirements for exportation, importation and transit to
different authorities or agencies, each Party shall maintain
or establish a single window（note 7） through which the
aforementioned documentation and/or data requirements only
have to be submitted online once in electronic form. The
single window shall undertake onward distribution of the
aforementioned documentation and/or data requirements to the
relevant authorities or agencies which require them. After
the examination by the relevant authorities or agencies of
the documentation and/or data, the single window shall notify
the results to the applicants in a timely manner.
2. In cases where documentation and/or data requirements have
already been received by the single window, the same
documentation and/or data requirements shall not be requested
by other authorities or agencies except in urgent
circumstances and other limited exceptions which are made
public.
3. The Parties shall use information and communication
technology to support the single window.

（note 7）A single window is defined as an electronic online
facility that allows parties involved in trade and
transport to lodge standardised documentation and/or
data with a single entry point to fulfil all import,
export, and transit-related regulatory requirements.

ARTICLE 5.9 ADVANCE RULINGS
1. Each Party shall provide, through its customs administration
and in accordance with provisions laid down by its domestic
laws and regulations, for the issuance of written advance
rulings to an importer in its territory or to an exporter or
producer in the other Party ’ s territory concerning tariff
classification, questions arising from the application of the
Customs Valuation Agreement, and the qualification of a good
as an originating good under this Agreement.
2. Each Party shall adopt or maintain procedures for advance
rulings, which shall:
(a) provide that an importer in its territory or an exporter or
producer in the territory of the other Party may apply for
an advance ruling before the importation of goods in
question?
(b) require that an applicant for an advance ruling provide a
detailed description of the goods and all relevant
information needed to issue an advance ruling?
(c) provide that its customs administration or the relevant
governmental authority may, within a specified period,
request for the additional information required in order to
have all the relevant information needed?
(d) provide that any advance ruling be based on the facts and
circumstances presented by the applicant, and any other
relevant information in the possession of the
decision-maker? and
(e) provide that its customs administration shall issue the
advance ruling expeditiously, and in any case within ninety
(90) days of the receipt of all necessary information.
3. A Party may reject requests for an advance ruling where the:
(a) additional information requested by it in accordance with
subparagraph 2(c) is not provided within a specified time;
or
(b) facts and circumstances forming the basis of the advance
ruling are the subject of administrative or judicial review.
4. Each Party shall provide that advance rulings shall be in
force from their date of issuance, or another date specified
in the ruling, provided that the facts or circumstances on
which the ruling is based remain unchanged.
5. A Party may modify or revoke an advance ruling upon a
decision or administrative act that the ruling was based on
an error of fact or law, the information provided is false or
inaccurate, if there is a change in domestic law consistent
with this Agreement, or there is a change in a material fact,
or circumstances on which the ruling is based.
6. Where an importer claims that the treatment accorded to an
imported good should be governed by an advance ruling, the
customs administration or the relevant governmental authority
may evaluate whether the facts and circumstances of the
importation are consistent with the facts and circumstances
upon which an advance ruling was based.
7. If a requester provides false information or omits relevant
facts or circumstances relating to the advance ruling, or
does not act in accordance with the ruling ’ s terms and
conditions, the importing Party may apply the appropriate
measures.

ARTICLE 5.10 CUSTOMS VALUATION
The Parties shall determine the customs value of goods traded
between them in accordance with Article VII of GATT 1994 and the
Customs Valuation Agreement.

ARTICLE 5.11 TEMPORARY ADMISSION OF GOODS
1. Each Party shall allow goods, as specified in its domestic
laws and regulations, to be brought into its customs
territory conditionally relieved from the payment of customs
duties. Such goods shall be imported for a specific purpose,
and shall be intended for re-exportation within a specified
period and without having undergone any change except normal
depreciation due to the use made of them.
2. Each Party shall, at the request of the person concerned and
for reasons deemed valid by its customs administration,
extend the time limit for temporary admission beyond the
period initially fixed.
3. Each Party shall permit temporarily admitted goods to be
exported through a customs office other than the one through
which they were imported.

ARTICLE 5.12 COOPERATION
1. To the extent permitted by their domestic law, the customs
administrations of the Parties should assist each other to
ensure the smooth implementation and operation of this
Chapter.
2. Subject to available resources, the customs administrations
of the Parties may, as deemed appropriate, explore
cooperation projects to:
(a) further simplify and expedite customs procedures; and
(b) share advance technical skills and experiences in usage of
technology.
3. The Parties shall endeavour to establish mutual recognition
of their Authorised Economic Operator programmes based on the
World Customs Organization Framework of Standards to Secure
and Facilitate Global Trade.
4. The Parties shall designate a contact point to carry out the
above activities.

ARTICLE 5.13 CONFIDENTIALITY
Nothing in this Chapter shall be construed to require any Party
to furnish or allow access to confidential information pursuant
to this Chapter the disclosure of which it considers would:
(a) be contrary to the public interest as determined by its
legislation;
(b) be contrary to any of its legislation including but not
limited to those protecting personal privacy or the
financial affairs and accounts of individual customers of
financial institutions;
(c) impede law enforcement; or
(d) prejudice the competitive position of the person providing
the information.

CHAPTER 6
SANITARY AND PHYTOSANITARY MEASURES

ARTICLE 6.1 OBJECTIVES
The objectives of this Chapter are to protect human, animal, or
plant life or health in the territories of the Parties, and to
provide a framework to address any bilateral sanitary and
phytosanitary (hereinafter referred to as “ SPS ” )matters so
as to facilitate trade between the Parties.

ARTICLE 6.2 GENERAL PRINCIPLES
1. When implementing this Chapter, the Parties shall:
(a) not apply their SPS measures in a manner which would
constitute a means of arbitrary or unjustifiable
discrimination or a disguised restriction on international
trade; and
(b) ensure that any SPS measure is applied only to the extent
necessary to protect human, animal or plant life or health,
is based on scientific principles and is not maintained
without sufficient scientific evidence.
2. The principles set out in paragraph 1 shall be applied in
accordance with the WTO Agreement on the Application of
Sanitary and Phytosanitary Measures which is hereby
incorporated into and made part of this Agreement, mutatis
mutandis.

ARTICLE 6.3 CONSULTATION AND COOPERATION
1. Each Party shall give favourable consideration to any
reasonable request by the other Party about the SPS measures
and shall provide relevant documentation within a reasonable
time.
2. The Parties shall explore opportunities for further
cooperation and collaboration on SPS matters of mutual
interest consistent with the provisions of this Chapter.
3. The Parties shall give favourable consideration to accepting
the equivalence of each other ’ s SPS measures consistent
with the purpose of this Chapter.

ARTICLE 6.4 COORDINATORS
1. To facilitate the implementation of this Chapter and
cooperation between the Parties, each Party shall designate a
Coordinator, who shall be responsible for coordinating with
competent SPS authorities in the Party ’ s territory and
communicating with the other Party ’ s Coordinator in all
matters pertaining to this Chapter. The Coordinator may also
facilitate the establishment of Technical Working Groups, as
mutually agreed by the Parties.
2. Upon entry into force of this Agreement, the Parties shall
exchange information on the Coordinators and the competent
SPS authorities. The Parties shall notify each other of any
significant change on the structures, organisations and
divisions of the competent SPS authorities and Coordinators.

CHAPTER 7
TECHNICAL BARRIERS TO TRADE

ARTICLE 7.1 OBJECTIVES
The objectives of this Chapter are to increase and facilitate
trade between the Parties through collaborative efforts and
ensuring that standards, technical regulations and conformity
assessment procedures do not create unnecessary obstacles to
trade.

ARTICLE 7.2 DEFINITIONS
Standards, technical regulations and conformity assessment
procedures shall have the meanings assigned to those terms in
Annex 1 of the WTO Agreement on Technical Barriers to Trade
(hereinafter referred to as “ TBT Agreement ” ).

ARTICLE 7.3 SCOPE AND COVERAGE
1. The Parties affirm their existing rights and obligations
under the TBT Agreement.
2. This Chapter does not apply to sanitary and phytosanitary
measures as defined in the WTO Agreement on the Application
of Sanitary and Phytosanitary Measures which are covered by
Chapter 6 (Sanitary and Phytosanitary Measures) and
purchasing specifications prepared by governmental bodies for
production or consumption requirements of governmental bodies
which are covered by Chapter 12 (Government Procurement).
3. This Chapter applies to all goods and/or assessments of
manufacturers or manufacturing processes of goods traded
between the Parties, regardless of the origin of those goods.

ARTICLE 7.4 INTERNATIONAL STANDARDS
1. The Parties shall use international standards, or the
relevant parts of international standards, as a basis for
their technical regulations and related conformity assessment
procedures where relevant international standards exist or
their completion is imminent, except when such international
standards or their relevant parts are ineffective or
inappropriate to fulfil legitimate objectives.
2. In determining whether an international standard, guide, or
recommendation within the meaning of Articles 2, 5 and Annex
3 of the TBT Agreement exists, each Party shall apply the
principles set out in the Decision of the Committee on
Principles for the Development of International Standards,
Guides and Recommendations with relation to Articles 2, 5 and
Annex 3 of the TBT Agreement (G/TBT/1/Rev.10), as revised
from time to time, issued by the WTO Committee on Technical
Barriers to Trade.
3. The Parties shall cooperate with each other, where
appropriate, in the context of their participation in
international standardising bodies to ensure that
international standards developed within such bodies that are
likely to become a basis for technical regulations are trade
facilitating and do not create unnecessary obstacles to
international trade.

ARTICLE 7.5 TRADE FACILITATION
1. The Parties shall cooperate and jointly identify work in the
field of standards, technical regulations, and conformity
assessment procedures, with a view to facilitating market
access. In particular, the Parties shall seek to identify
initiatives that are appropriate for the particular issues or
sectors. Such initiatives may include cooperation on
regulatory issues, such as the harmonisation of technical
regulations and standards, alignment to international
standards, reliance on a supplier ’ s declaration of
conformity, and use of accreditations to qualify conformity
assessment bodies.
2. At the request of the other Party, each Party shall encourage
non-governmental bodies in its territory to cooperate with
the non-governmental bodies in the territory of the other
Party with respect to particular standards or conformity
assessment procedures.

ARTICLE 7.6 CONFORMITY ASSESSMENT PROCEDURES
1. The Parties recognise that a broad range of mechanisms exist
to facilitate the acceptance of conformity assessment
results, including:
(a) the importing Party ’ s reliance on a supplier ’ s
declaration of conformity;
(b) voluntary arrangements between conformity assessment bodies
from each Party ’ s territory;
(c) agreements on mutual acceptance of the results or
certification of conformity assessment procedures with
respect to specified regulations conducted by bodies located
in the territory of the other Party;
(d) accreditation procedures for qualifying conformity
assessment bodies;
(e) government designation of conformity assessment bodies; and
(f) recognition by one Party of the results of conformity
assessment procedures performed in the other Party ’ s
territory on a unilateral basis for a sector nominated by
that Party.
2. To this end, the Parties shall intensify their exchange of
information on the variety of mechanisms to facilitate the
acceptance of conformity assessment results or certification.
3. The Parties shall seek to ensure that conformity assessment
procedures applied between the Parties facilitate trade by
ensuring that they are no more restrictive than necessary to
provide an importing Party with confidence that products
conform with the applicable technical regulations, taking
into account the risk that non-conformity would create.
4. Before accepting the results of a conformity assessment
procedure, and to enhance confidence in the continued
reliability of each other ’ s conformity assessment results,
the Parties may consult on such matters as the technical
competence of the conformity assessment bodies involved, as
appropriate.
5. A Party shall, on the request of the other Party, explain its
reasons for not accepting the results of a conformity
assessment procedure performed in the territory of that other
Party.
6. Each Party shall accredit, approve, license, or otherwise
recognise conformity assessment bodies in the territory of
the other Party on terms no less favourable than those it
accords to conformity assessment bodies in its territory. If
a Party accredits, approves, licenses, or otherwise
recognises a body assessing conformity with a particular
technical regulation or standard in its territory and it
refuses to accredit, approve, license, or otherwise recognise
a body assessing conformity with that technical regulation or
standard in the territory of the other Party, it shall, on
request, explain the reasons for its refusal.

ARTICLE 7.7 INFORMATION EXCHANGE
1. Each Party shall respond expeditiously to any enquiry from
the other Party on standards, technical regulations or
conformity assessment procedures relating to any goods and/or
assessments of manufacturers or manufacturing processes of
goods traded between the Parties. The explanation provided
shall be given in print or electronically in English.
2. Each Party affirms its commitment to ensuring that
information regarding proposed new or amended standards,
technical regulations and conformity assessment procedures is
made available in accordance with the relevant requirements
of the TBT Agreement.

ARTICLE 7.8 CONFIDENTIALITY
1. Nothing in this Chapter shall be construed to require either
Party to furnish or allow access to information the
disclosure of which it considers would:
(a) be contrary to its essential security interests;
(b) be contrary to the public interest as determined by its
domestic laws, regulations and administrative provisions;
(c) be contrary to any of its domestic laws, regulations and
administrative provisions including but not limited to those
protecting personal privacy or the financial affairs and
accounts of individual customers of financial institutions;
(d) impede law enforcement; or
(e) prejudice legitimate commercial interests of particular
public or private enterprises.
2. In pursuance to Articles 7.6 (Conformity Assessment
Procedures), Article 7.7 (Information Exchange), and Article
7.9 (Coordinators), a Party shall, in accordance with its
applicable laws, protect the confidentiality of any
proprietary information disclosed to it.

ARTICLE 7.9 COORDINATORS
1. To facilitate the implementation of this Chapter and
cooperation between the Parties, each Party shall designate a
Coordinator as specified in Annex 7, who shall be responsible
for coordinating with interested persons in the Party ’ s
territory and communicating with the other Party ’ s
Coordinator in all matters pertaining to this Chapter. The
Coordinators ’ functions shall include:
(a) monitoring the implementation and administration of this
Chapter;
(b) promptly addressing any issue that a Party raises related to
the development, adoption, application, or enforcement of
standards, technical regulations or conformity assessment
procedures;
(c) enhancing cooperation in the development and improvement of
standards, technical regulations, and conformity assessment
procedures;
(d) exchanging information on standards, technical regulations,
and conformity assessment procedures, in response to all
reasonable requests for such information from a Party;
(e) considering and facilitating any sector-specific proposal a
Party makes for further cooperation among governmental and
non-governmental conformity assessment bodies;
(f) facilitating the consideration of a request by a Party for
the recognition of the results of conformity assessment
procedures, including a request for the negotiation of an
agreement, in a sector nominated by that Party;
(g) facilitating cooperation in the areas of specific technical
regulations by referring enquiries from a Party to the
appropriate regulatory authorities;
(h) promptly consulting on any matter arising under this Chapter
upon request by a Party; and
(i) reviewing this Chapter in light of any developments under
the TBT Agreement, and developing recommendations for
amendments to this Chapter in light of those developments.
2. The Coordinators shall normally carry out their functions
through agreed communication channels such as telephone,
facsimile, emails, whichever is most expedient in the
discharge of their functions.

ARTICLE 7.10 SECTORAL ANNEXES
The provisions of the Mutual Recognition Arrangement on
Conformity Assessment between the Bureau of Standards, Metrology
and Inspection and the Standards, Productivity and Innovation
Board （note 8）, done on 28 November 2005, the Agreement
between the Taipei Representative Office in Singapore and the
Singapore Trade Office in Taipei on Information Relating to
Consumer Product Safety, done on 19 October 2010, and the APEC
Mutual Recognition Arrangement for Conformity Assessment of
Telecommunications Equipment, as amended from time to time
shall, mutatis mutandis, be incorporated into and form an
integral part of this Agreement.

（note 8）For the avoidance of doubt, the relevant decisions of
the Joint Committee established under Article 6 of the
Mutual Recognition Arrangement on Conformity
Assessment between the Bureau of Standards, Metrology
and Inspection and the Standards, Productivity and
Innovation Board made before such incorporation into
the Agreement shall continue to have effect.

ARTICLE 7.11 FINAL PROVISIONS
Nothing in this Chapter shall limit the authority of a Party to
determine the level of protection it considers necessary for the
protection of, inter alia, human health or safety, animal or
plant life or health or the environment. In pursuance of this,
each Party retains all authority to interpret its laws,
regulations and administrative provisions.

CHAPTER 8
CROSS-BORDER TRADE IN SERVICES

ARTICLE 8.1 DEFINITIONS
For the purposes of this Chapter:
cross-border trade in services or cross-border supply of
services means the supply of a service:
(a) from the territory of one Party into the territory of the
other Party;
(b) in the territory of one Party by a person of that Party to a
person of the other Party; or
(c) by a service supplier of a Party, through presence of
natural persons of a Party in the territory of the other
Party;
but does not include the supply of a service in the territory of
a Party by an investor of the other Party or a covered
investment as defined in Article 9.1 (Definition).
enterprise of a Party means an enterprise organised or
constituted under the laws of a Party, and a branch located in
the territory of a Party and carrying out business activities
there; and
service supplier means a person of a Party that seeks to supply
or supplies a service（note 9）.

（note 9）The Parties understand that seeks to supply or
supplies a service has the same meaning as supplies a
service as used in Article XXVIII(g) of GATS. The
Parties understand that for the purposes of Articles
8.3 (National Treatment) and 8.4 (Market Access) of
this Agreement, service suppliers has the same meaning
as services and service suppliers as used in Articles
XVII and XVI of GATS.

ARTICLE 8.2 SCOPE AND COVERAGE
1.
(a) This Chapter applies to measures by a Party affecting
cross-border trade in services by service suppliers of the
other Party.
(b) Measures covered by subparagraph (a) include measures
affecting:
(i) the production, distribution, marketing, sale and delivery
of a service;
(ii) the purchase or use of, or payment for, a service;
(iii) the access to and use of distribution, transport, or
telecommunications networks and services in connection
with the supply of a service;
(iv) the presence in its territory of a service supplier of
the other Party; and
(v) the provision of a bond or other form of financial
security as a condition for the supply of a service.
(c) For the purposes of this Chapter, measures by a Party mean
measures taken by:
(i) central or local governments and authorities; and
(ii) non-governmental bodies in the exercise of powers
delegated by central or local governments and
authorities.
2. Articles 8.4 (Market Access) and 8.7 (Domestic Regulation)
also apply to measures by a Party affecting the supply of a
service in its territory by an investor of the other Party or
a covered investment as defined in Article 9.1
(Definition)（note 10）.
3. This Chapter does not apply to:
(a) measures affecting the supply of financial services （note
11）as defined in paragraph 5(a) of the GATS Annex on
Financial Services. The obligations of each Party with
respect to measures affecting the supply of financial
services shall be in accordance with its obligations under
GATS, the GATS Annex on Financial Services and the GATS
Second Annex on Financial Services, and subject to any
reservations thereto. The said obligations are hereby
incorporated into this Agreement;
(b) government procurement;
(c) air services （note 12）, including domestic and
international air transportation services, whether scheduled
or non-scheduled, and related services in support of air
services, other than:
(i) aircraft repair and maintenance services;
(ii) the selling and marketing of air transport services; and
(iii) computer reservation system services; and
(d) subsidies or grants provided by a Party, including
government-supported loans, guarantees and insurance, or any
conditions attached to the receipt or continued receipt of
such subsidies or grants, whether or not such subsidies or
grants are offered exclusively to domestic services, service
consumers or service suppliers.
4. This Chapter does not impose any obligation on a Party with
respect to a natural person of the other Party seeking access
to its employment market, or employed on a permanent basis in
its territory, and does not confer any right on that natural
person with respect to that access or employment nor shall it
apply to measures regarding citizenship or residence on a
permanent basis.
5.
(a) This Chapter does not apply to services supplied in the
exercise of governmental authority within the territory of
each respective Party.
(b) For the purposes of this Chapter, a service supplied in the
exercise of governmental authority means any service which
is supplied neither on a commercial basis nor in competition
with one or more service suppliers.
6. Nothing in this Chapter shall prevent a Party from applying
measures to regulate the entry of natural persons of the
other Party into, or their temporary stay in, its territory,
including those measures necessary to protect the integrity
of, and to ensure the orderly movement of natural persons
across, its borders, provided that such measures are not
applied in such a manner as to nullify or impair the benefits
accruing to the other Party under the terms of this
Chapter（note 13）.

（note 10) The Parties understand that nothing in this Chapter,
including this paragraph, is subject to Article 9.16
(Settlement of Disputes between a Party and an
Investor of the other Party).
（note 11) For greater certainty, “ the supply of services ”
shall mean the supply of services as defined in
Article I:2 of GATS.
（note 12) For greater certainty, the term “ air services ”
includes traffic rights.
（note 13) The sole fact of requiring a visa for natural person
of the other Party shall not be regarded as
nullifying or impairing benefits under a specific
commitment.

ARTICLE 8.3 NATIONAL TREATMENT
Each Party shall accord to service suppliers of the other Party
treatment no less favourable than that it accords, in like
circumstances, to its own service suppliers.

ARTICLE 8.4 MARKET ACCESS
A Party shall not adopt or maintain, either on the basis of a
regional subdivision or on the basis of its entire territory,
measures that:
(a) limit the number of service suppliers whether in the form of
numerical quotas, monopolies, exclusive service suppliers or
the requirement of an economic needs test;
(b) limit the total value of service transactions or assets in
the form of numerical quotas or the requirement of an
economic needs test;
(c) limit the total number of service operations or the total
quantity of services output expressed in terms of designated
numerical units in the form of quotas or the requirement of
an economic needs test（note 14）;
(d) limit the total number of natural persons that may be
employed in a particular service sector or that a service
supplier may employ and who are necessary for, and directly
related to, the supply of a specific service in the form of
numerical quotas or the requirement of an economic needs
test; and
(e) restrict or require specific types of legal entity or joint
venture through which a service supplier may supply a
service.

（note 14) This paragraph does not cover measures of a Party
which limit inputs for the supply of services.

ARTICLE 8.5 LOCAL PRESENCE
A Party shall not require a service supplier of the other Party
to establish or maintain a representative office or any form of
enterprise, or to be resident, in its territory as a condition
for the cross-border supply of a service.

ARTICLE 8.6 NON-CONFORMING MEASURES
1. Articles 8.3 (National Treatment), 8.4 (Market Access) and
8.5 (Local Presence) do not apply to:
(a) any existing non-conforming measure that is maintained by
Singapore as set out in its Schedule to Annex 8B:I;
(b) any existing non-conforming measure that is maintained by
Chinese Taipei at:
(i) the central level of government as set out in its Schedule
to Annex 8B:I; or
(ii) a local level of government on the administration of
self-governing matters under its Local Government Act;
(c) the continuation or prompt renewal of any non-conforming
measure referred to in subparagraphs (a) and (b); or
(d) an amendment to any non-conforming measure referred to in
subparagraphs (a) and (b) to the extent that the amendment
does not decrease the conformity of the measure, as it
existed immediately before the amendment, with Articles 8.3
(National Treatment), 8.4 (Market Access) and 8.5 (Local
Presence).
2. Articles 8.3 (National Treatment), 8.4 (Market Access), and
8.5 (Local Presence) do not apply to any measure that a Party
adopts or maintains with respect to sectors, sub-sectors or
activities as set out in its Schedule to Annex 8B:II.

ARTICLE 8.7 DOMESTIC REGULATION
1. Where a Party requires authorisation for the supply of a
service, the Party ’ s competent authorities shall, within a
reasonable period of time after the submission of an
application is considered complete under domestic laws and
regulations, inform the applicant of the decision concerning
the application. At the request of the applicant, the
competent authorities of the Party shall provide, without
undue delay, information concerning the status of the
application. This obligation shall not apply to authorisation
requirements that are within the scope of paragraph 2 of
Article 8.6 (Non-Conforming Measures).
2. With a view to ensuring that domestic regulation, including
measures relating to qualification requirements and
procedures, technical standards and licensing requirements,
do not constitute unnecessary barriers to trade in services,
the Parties shall endeavour to ensure, as appropriate, for
individual sectors, that such measures are:
(a) based on objective and transparent criteria, such as
competence and the ability to supply the service;
(b) not more burdensome than necessary to ensure the quality of
the service; and
(c) in the case of licensing procedures, not in themselves a
restriction on the supply of the service.
3. If the results of the negotiations related to Article VI:4 of
the GATS (or the results of any similar negotiations
undertaken in other multilateral fora in which the Parties
participate) enter into effect for the Parties, this Article
shall be amended, as appropriate, after consultations between
the Parties, to bring those results into effect under this
Agreement. The Parties agree to coordinate on such
negotiations, as appropriate.

ARTICLE 8.8 RECOGNITION
1. For the purposes of the fulfilment, in whole or in part, of
its standards or criteria for the authorisation, licensing or
certification of services suppliers, and subject to the
requirements of paragraph 4, a Party may recognise the
education or experience obtained, requirements met, or
licences or certifications granted in a particular country or
customs territory, including the other Party and non-Parties.
Such recognition, which may be achieved through harmonisation
or otherwise, may be based upon an agreement or arrangement
with the country or customs territory concerned or may be
accorded autonomously.
2. Where a Party recognises, autonomously or by agreement or
arrangement, the education or experience obtained,
requirements met or licences or certifications granted in the
territory of a non-Party, nothing shall be construed to
require the Party to accord such recognition to the education
or experience obtained, requirements met or licences or
certifications granted in the territory of the other Party.
3. A Party that is a party to an agreement or arrangement of the
type referred to in paragraph 1, whether existing or future,
shall afford adequate opportunity for the other Party, if the
other Party is interested, to negotiate its accession to such
an agreement or arrangement or to negotiate comparable ones
with it. Where a Party accords recognition autonomously, it
shall afford adequate opportunity for the other Party to
demonstrate that education, experience, licences, or
certifications obtained or requirements met in that other
Party ’ s territory should be recognised.
4. A Party shall not accord recognition in a manner which would
constitute a means of discrimination between countries or
customs territories in the application of its standards or
criteria for the authorisation, licensing or certification of
services suppliers, or a disguised restriction on trade in
services.

ARTICLE 8.9 TRANSFERS AND PAYMENTS
1. Each Party shall permit all transfers and payments relating
to the cross-border supply of services to be made freely and
without delay into and out of its territory.
2. Each Party shall permit such transfers and payments relating
to the cross-border supply of services to be made in a freely
usable currency at the market rate of exchange prevailing on
the date of transfer.
3. Notwithstanding paragraphs 1 and 2, a Party may prevent or
delay a transfer or payment through the equitable,
non-discriminatory and good faith application of its laws
relating to:
(a) bankruptcy, insolvency or the protection of the rights of
creditors;
(b) issuing, trading or dealing in securities, futures, options,
or derivatives;
(c) financial reporting or record keeping of transfers when
necessary to assist law enforcement or financial regulatory
authorities;
(d) criminal or penal offences;
(e) ensuring compliance with orders or judgments in judicial or
administrative proceedings; or
(f) social security （note 15）, public retirement or compulsory
savings schemes.
4. Nothing in this Chapter shall affect the rights and
obligations of the members of the International Monetary Fund
under the Articles of Agreement of the International Monetary
Fund, including the use of exchange actions which are
consistent with such Articles of Agreement, provided that a
Party shall not impose restrictions on any capital
transactions inconsistently with its obligations under this
Chapter regarding such transactions, except under Article
16.5 (Restrictions to Safeguard the Balance of Payments) or
at the request of the International Monetary Fund.

（note 15) For greater certainty, social security schemes
include compulsory health insurance schemes.

ARTICLE 8.10 DENIAL OF BENEFITS
Subject to prior notification and consultation, a Party may deny
the benefits of this Chapter to a service supplier of the other
Party if the service is being supplied by an enterprise that has
no substantive business operations in the territory of the other
Party and that is owned or controlled by persons of a non-Party
or the denying Party.

CHAPTER 9
INVESTMENT

ARTICLE 9.1 DEFINITION
For the purposes of this Chapter:
claimant means an investor of a Party that is a party to an
investment dispute with the other Party;
covered investment means, with respect to a Party, an investment
in its territory of an investor of the other Party in existence
as of the date of entry into force of this Agreement or
established, acquired, or expanded thereafter;
disputing parties means the claimant and the respondent;
disputing party means either the claimant or the respondent;
enterprise of a Party means an enterprise constituted or
organised under the law of a Party, and a branch located in the
territory of a Party and carrying out business activities there;
enterprise means any entity constituted or organised under
applicable law, whether or not for profit, and whether privately
or governmentally owned or controlled, including a corporation,
trust, partnership, sole proprietorship, joint venture,
association, or similar organization; and a branch of an
enterprise;
freely usable currency means “ freely usable currency ” as
determined by the International Monetary Fund under its Articles
of Agreement of the International Monetary Fund and any
amendments thereto;
ICC Arbitration Rules means the Rules of Arbitration of the
International Chamber of Commerce, in force as from 1 January
2012;
investment means every kind of asset, owned or controlled,
directly or indirectly, by an investor, that has the
characteristics of an investment （note 16）. Forms that an
investment may take include but are not limited to:
(a) an enterprise;
(b) shares, stock, and other forms of equity participation in an
enterprise, including rights derived therefrom;
(c) bonds, debentures, and loans and other debt instruments （
note 17）, including rights derived therefrom;
(d) futures, options, and other derivatives;
(e) turnkey, construction, management, production, concession,
revenue-sharing, and other similar contracts;
(f) claims to money or to any contractual performance related to
a business and having an economic value;
(g) intellectual property rights and goodwill;
(h) licences, authorisations, permits, and similar rights
conferred pursuant to applicable domestic laws, including
any concession to search for, cultivate, extract or exploit
natural resources（note 18）; and
(i) other tangible or intangible, movable or immovable property,
and related property rights, such as leases, mortgages,
liens, and pledges;
investor of a Party means:
(a) a Party;
(b) an enterprise of a Party; or
(c) a natural person who resides in the territory of a Party or
elsewhere and who under the law of that Party:
(i) is a citizen of that Party; or
(ii) has the right of permanent residence in that Party,
that attempts to make, is making, or has made an investment in
the territory of the other Party;
Local Government Act means the Local Government Act, amended and
promulgated by the authorities of Chinese Taipei on 3 February
2010;
New York Convention means the Convention on the Recognition and
Enforcement of Foreign Arbitral Awards, adopted at the United
Nations in New York on 10 June 1958;
respondent means the Party that is a party to an investment
dispute;
return means an amount yielded by or derived from an investment,
including profits, dividends, interest, capital gains, royalty
payments, payments in connection with intellectual property
rights, and all other lawful income. For the purposes of the
definition of “ investment ”, returns that are invested shall
be treated as investments and any alteration of the form in
which assets are invested or reinvested shall not affect their
character as investments; and
UNCITRAL Arbitration Rules means the arbitration rules of the
United Nations Commission on International Trade Law, approved
by the United Nations General Assembly on 15 December 1976.

（note 16) Where an asset lacks the characteristics of an
investment, that asset is not an investment
regardless of the form it may take. The
characteristics of an investment include the
commitment of capital, the expectation of gain or
profit, or the assumption of risk.
（note 17) For the purpose of this Chapter, loans and other debt
instruments described in (c) and claims to money or
to any contractual performance described in (f) of
this Article refer to assets which relate to a
business activity and do not refer to assets which
are of a personal nature, unrelated to any business
activity.
（note 18) The term investment does not include an order or
judgment entered in a judicial or administrative
action.

ARTICLE 9.2 SCOPE AND COVERAGE
1. This Chapter applies to measures adopted or maintained by a
Party relating to:
(a) investors of the other Party;
(b) covered investments; and
(c) with respect to Article 9.9 (Performance Requirements), all
investments in the territory of the Party.
2. This Chapter shall not apply to services supplied in the
exercise of governmental authority within the territory of a
Party. For the purposes of this Chapter, a service supplied
in the exercise of governmental authority means any service
which is supplied neither on a commercial basis nor in
competition with one or more service suppliers.
3. In the event of any inconsistency between this Chapter and
another Chapter, the other Chapter shall prevail over this
Chapter to the extent of the inconsistency.
4. The requirement by a Party that a service provider of the
other Party post a bond or other form of financial security
as a condition of providing a service into its territory does
not of itself make this Chapter applicable to the provision
of that cross-border service. This Chapter applies to that
Party ’ s treatment of the posted bond or financial
security, to the extent that such bond or financial security
is a covered investment.
5. For greater certainty, the provisions of this Chapter do not
impose any obligation on either Party in relation to any act
or fact that took place or any situation that ceased to exist
before the date of entry into force of this Agreement.

ARTICLE 9.3 FINANCIAL SERVICES（note 19）
1. This Chapter shall not apply to measures adopted or
maintained by a Party in respect of investors of the other
Party, and investments of such investors in financial
institutions （note 20） in the former Party ’ s territory,
except for the following provisions:
(a) Article 9.6 (Special Formalities and Information
Requirements);
(b) Article 9.7 (Minimum Standard of Treatment);
(c) Article 9.8 (Compensation for Losses);
(d) Article 9.12 (Expropriation);
(e) Article 9.13 (Transfers);
(f) Article 16.5 (Restrictions to Safeguard the Balance of
Payments);
(g) Article 9.14 (Denial of Benefits);
(h) Article 9.16 (Settlement of Disputes between a Party and an
Investor of the Other Party);
(i) Article 9.17 (Savings Clause); and
(j) Annex 9.
The Parties reaffirm their commitments under the GATS with
respect to financial services, which shall be incorporated into
this Chapter.
2. For the purposes of paragraph 1, Article 9.16 (Settlement of
Disputes between a Party and an Investor of the Other Party)
shall apply solely for claims that a Party has breached
Articles 9.12 (Expropriation), 9.13 (Transfers), and 9.14
(Denial of Benefits).
3. This Chapter shall not apply to measures adopted or
maintained by a Party relating to:
(a) activities or services forming part of a public retirement
plan or statutory system of social security;
(b) activities or services conducted for the account or with the
guarantee or using the financial resources of the Party,
including its public entities; or
(c) activities conducted by a central bank or monetary authority
or by any other public entity in pursuit of monetary or
exchange rate policies;
except that the provisions referred to in paragraph 1 shall
apply if a Party allows any of the activities or services
referred to in subparagraphs (a) or (b) to be conducted by its
financial institutions in competition with a public entity or a
financial institution.
4. Notwithstanding Article 9.13 (Transfers), a Party may prevent
or limit transfers by a financial institution or financial
services supplier to, or for the benefit of, an affiliate of
or person related to such institution or supplier, through
the equitable, non-discriminatory, and good faith application
of measures relating to maintenance of the safety, soundness,
integrity, or financial responsibility of financial
institutions or financial services suppliers. This paragraph
does not prejudice any other provision of this Agreement that
permits a Party to restrict transfers.
5. Nothing in this Chapter shall be construed to prevent the
adoption or enforcement by any Party of measures necessary to
secure compliance with laws or regulations that are not
inconsistent with this Chapter, including those relating to
the prevention of deceptive and fraudulent practices or to
deal with the effects of a default on financial services
contracts, subject to the requirement that such measures are
not applied in a manner which would constitute a means of
arbitrary or unjustifiable discrimination between countries
where like conditions prevail, or a disguised restriction on
investment in financial institutions.
6. Nothing in this Chapter shall be construed to require a Party
to disclose information relating to the affairs and accounts
of individual consumers or any confidential or proprietary
information in the possession of public entities.

（note 19) For the purposes of this Article, financial services
is as defined in subparagraph 5(a) of the Annex on
Financial Services in the GATS.
（note 20) Financial institution means any financial
intermediary or other enterprise that is authorised
to do business and regulated or supervised as a
financial institution under the law of the Party in
whose territory it is located.

ARTICLE 9.4 PRUDENTIAL MEASURES
Notwithstanding any other provisions of this Chapter, each Party
may adopt or maintain measures for prudential reasons, such as:
the protection of investors, depositors, policy-holders or
persons to whom a fiduciary duty is owed by a financial
institution or financial services supplier; the maintenance of
the safety, soundness, integrity or financial responsibility of
financial services suppliers; and ensuring the integrity and
stability of a Party ’ s financial system. Such measures shall
not be used as a means of avoiding a Party ’ s obligations
under the provisions referred to in Article 9.3 (Financial
Services).

ARTICLE 9.5 NATIONAL TREATMENT
1. Each Party shall accord to investors of the other Party
treatment no less favourable than that it accords, in like
circumstances, to its own investors with respect to the
establishment, acquisition, expansion, management, conduct,
operation, and sale or other disposition of investments in
its territory.
2. Each Party shall accord to covered investments treatment no
less favourable than that it accords, in like circumstances,
to investments in its territory of its own investors with
respect to the establishment, acquisition, expansion,
management, conduct, operation, and sale or other disposition
of investments.

ARTICLE 9.6 SPECIAL FORMALITIES AND INFORMATION REQUIREMENTS
1. Nothing in Article 9.5 (National Treatment) shall be
construed to prevent a Party from adopting or maintaining a
measure that prescribes special formalities in connection
with covered investments, such as residency requirements or
requirements for covered investments to be legally
constituted under the laws or regulations of the Party,
provided that such formalities do not materially impair the
protections afforded by a Party to investors of the other
Party and covered investments pursuant to this Chapter.
2. Notwithstanding Article 9.5 (National Treatment), a Party may
require an investor of the other Party, or a covered
investment, to provide information concerning that investment
solely for informational or statistical purposes. The Party
shall protect any confidential business information from any
disclosure that would prejudice the competitive position of
the investor or the covered investment. Nothing in this
paragraph shall be construed to prevent a Party from
otherwise obtaining or disclosing information in connection
with the equitable and good faith application of its law
within its territory.

ARTICLE 9.7 MINIMUM STANDARD OF TREATMENT
1. Each Party shall accord to covered investments treatment in
accordance with customary international law minimum standard
of treatment of aliens （note 21）, including fair and
equitable treatment and full protection and security.
2. The concepts of “ fair and equitable treatment ” and “
full protection and security ” in paragraph 1 do not require
treatment in addition to or beyond what is required by the
customary international law minimum standard of treatment of
aliens and do not create additional substantive rights.
(a) The obligation to provide “ fair and equitable treatment ”
includes the obligation not to deny justice in criminal,
civil or administrative adjudicatory proceedings in
accordance with the principle of due process embodied in the
principal legal systems of the world.
(b) The obligation to provide “ full protection and security ”
requires each Party to provide the level of police
protection required under customary international law.
3. A determination that there has been a breach of another
provision of this Agreement, or of a separate international
agreement, does not establish that there has been a breach of
this Article.

（note 21) Customary international law results from a general
and consistent practice of States that they follow
from a sense of legal obligation. With regard to this
article, the customary international law minimum
standard of treatment of aliens refers to all
customary international law principles that protect
the economic rights and interests of aliens.

ARTICLE 9.8 COMPENSATION FOR LOSSES
1. Notwithstanding subparagraph 4(b) of Article 9.11
(Non-Conforming Measures), investors of one Party whose
investments in the territory of the other Party suffer losses
owing to war or other armed conflict, revolt, insurrection,
riot, or other similar situations in the territory of the
latter Party, shall be accorded by the latter Party
treatment, as regards restitution, indemnification,
compensation or other settlement, if any, no less favourable
than that which the latter Party accords to investors of any
non-Party or to its own investors, whichever is more
favourable. Any resulting compensation shall be made in
freely usable currency and be freely transferable in
accordance with Article 9.13 (Transfers).
2. Paragraph 1 does not apply to existing measures relating to
subsidies or grants provided by a Party, including
government-supported loans, guarantees and insurance, or to
any conditions attached to the receipt or continued receipt
of such subsidies or grants, whether or not such subsidies or
grants are offered exclusively to investors of the Party or
investments of investors of the Party, that would be
inconsistent with Article 9.5 (National Treatment) but for
Article 9.11 (Non-Conforming Measures).

ARTICLE 9.9 PERFORMANCE REQUIREMENTS
1. Neither Party may, in connection with the establishment,
acquisition, expansion, management, conduct, operation, or
sale or other disposition of an investment of an investor of
a Party or of a non-Party in its territory, impose or enforce
any requirement or enforce any commitment or undertaking （
note 22）:
(a) to export a given level or percentage of goods or services;
(b) to achieve a given level or percentage of domestic content;
(c) to purchase, use, or accord a preference to goods produced
in its territory, or to purchase goods from persons in its
territory;
(d) to relate in any way the volume or value of imports to the
volume or value of exports or to the amount of foreign
exchange inflows associated with such investment;
(e) to restrict sales of goods or services in its territory that
such investment produces or supplies by relating such sales
in any way to the volume or value of its exports or foreign
exchange earnings;
(f) to transfer a particular technology, a production process,
or other proprietary knowledge to a person in its territory;
or
(g) to supply exclusively from the territory of the Party the
goods that such investment produces or the services that it
supplies to a specific regional market or to the world
market.
2. Neither Party may condition the receipt or continued receipt
of an advantage, in connection with the establishment,
acquisition, expansion, management, conduct, operation, or
sale or other disposition of an investment in its territory
of an investor of a Party or of a non-Party, on compliance
with any requirement:

(a) to achieve a given level or percentage of domestic content;
(b) to purchase, use, or accord a preference to goods produced
in its territory, or to purchase goods from persons in its
territory;
(c) to relate in any way the volume or value of imports to the
volume or value of exports or to the amount of foreign
exchange inflows associated with such investment; or
(d) to restrict sales of goods or services in its territory that
such investment produces or supplies by relating such sales
in any way to the volume or value of its exports or foreign
exchange earnings.
3.
(a) For greater certainty, nothing in paragraph 1 shall be
construed to prevent a Party from, in connection with the
establishment, acquisition, expansion, management, conduct,
operation or sale or other disposition of an investment of
an investor of a Party or of a non-Party in its territory,
imposing or enforcing a requirement or enforcing a
commitment or undertaking to employ or train workers in its
territory, provided that such employment or training does
not require the transfer of a particular technology,
production process, or other proprietary knowledge to a
person in its territory.
(b) For greater certainty, nothing in paragraph 2 shall be
construed to prevent a Party from conditioning the receipt
or continued receipt of an advantage, in connection with an
investment in its territory of an investor of a Party or of
a non-Party, on compliance with a requirement to locate
production, supply a service, employ or train workers,
construct or expand particular facilities, or carry out
research and development, in its territory.
(c) Subparagraph 1(f) does not apply:
(i) when a Party authorizes use of an intellectual property
right in accordance with Article 31 （note 23） of the
Agreement on Trade-Related Aspects of Intellectual
Property Rights in Annex 1C to the WTO Agreement
(hereinafter referred to as “ TRIPS Agreement ” ), or to
measures requiring the disclosure of proprietary
information that fall within the scope of, and are
consistent with, Article 39 of the TRIPS Agreement; or
(ii) when the requirement is imposed or the commitment or
undertaking is enforced by a court, administrative
tribunal, or competition authority to remedy a practice
determined after judicial or administrative process to be
anti-competitive under the Party ’ s competition laws （
note 24）.
(d) Subparagraphs 1(a), 1(b), and 1(c), and 2(a) and 2(b), do
not apply to qualification requirements for goods or
services with respect to export promotion and foreign aid
programs.
(e) Subparagraphs 1(b), 1(c), 1(f), and 1(g), and 2(a) and 2(b),
do not apply to government procurement.
(f) Subparagraphs 2(a) and 2(b) do not apply to requirements
imposed by an importing Party relating to the content of
goods necessary to qualify for preferential tariffs or
preferential quotas.
4. For greater certainty, paragraphs 1 and 2 do not apply to any
commitment, undertaking, or requirement other than those set
out in those paragraphs.
5. This Article does not preclude enforcement of any commitment,
undertaking, or requirement between private parties, where a
Party did not impose or require the commitment, undertaking,
or requirement.

（note 22) For greater certainty, a condition for the receipt or
continued receipt of an advantage referred to in
paragraph 2 does not constitute a “ requirement ”
or a “ commitment or undertaking ” for the purposes
of paragraph 1.
（note 23) The reference to “ Article 31 ” includes footnote 7
to Article 31.
（note 24) The Parties note that a patent does not necessarily
confer market power.

ARTICLE 9.10 SENIOR MANAGEMENT AND BOARDS OF DIRECTORS
1. Neither Party may require that an enterprise of that Party
that is a covered investment appoint to senior management
positions natural persons of any particular
nationality/citizenship.
2. A Party may require that a majority of the board of
directors, or any committee thereof, of an enterprise of that
Party that is a covered investment, be of a particular
nationality/citizenship, or resident in the territory of the
Party, provided that the requirement does not materially
impair the ability of the investor of the other Party to
exercise control over its investment.

ARTICLE 9.11 NON-CONFORMING MEASURES
1. Articles 9.5 (National Treatment), 9.9 (Performance
Requirements) and 9.10 (Senior Management and Board of
Directors) do not apply to:
(a) any existing non-conforming measure that is maintained by
Singapore as set out in its Schedule to Annex 8B:I;
(b) any existing non-conforming measure that is maintained by
Chinese Taipei at:
(i) the central level of government as set out in its Schedule
to Annex 8B:I; or
(ii) a local level of government on the administration of
self-governing matters under its Local Government Act;
(c) the continuation or prompt renewal of any non-conforming
measure referred to in subparagraphs (a) and (b); or
(d) an amendment to any non-conforming measure referred to in
subparagraphs (a) and (b) to the extent that the amendment
does not decrease the conformity of the measure, as it
existed immediately before the amendment, with Articles 9.5
(National Treatment), 9.9 (Performance Requirements) and
9.10 (Senior Management and Board of Directors).
2. Articles 9.5 (National Treatment), 9.9 (Performance
Requirements) and 9.10 (Senior Management and Board of
Directors) do not apply to any measure that a Party adopts or
maintains with respect to sectors, sub-sectors, or
activities, as set out in its Schedule to Annex 8B:II.
3. Neither Party may, under any measure adopted after the date
of entry into force of this Agreement and covered by its
Schedule to Annex 8B:II, require an investor of the other
Party, by reason of its nationality/citizenship, to sell or
otherwise dispose of an investment existing at the time the
measure becomes effective.
4. Articles 9.5 (National Treatment) and 9.10 (Senior Management
and Boards of Directors) do not apply to:
(a) government procurement; or
(b) subsidies or grants provided by a Party, including
government-supported loans, guarantees and insurance, or to
any conditions attached to the receipt or continued receipt
of such subsidies or grants, whether or not such subsidies
or grants are offered exclusively to investors of the Party
or investments of investors of the Party.
5. Articles 9.5 (National Treatment) do not apply to any measure
that is an exception to, or derogation from, a Party ’ s
obligations under the TRIPS Agreement, as specifically
provided for in that agreement.

ARTICLE 9.12 EXPROPRIATION（note 25）
1. Neither Party shall nationalise, expropriate or subject to
measures having effect equivalent to nationalisation or
expropriation (hereinafter referred to as “ expropriation ”
)a covered investment unless such a measure is taken on a
non-discriminatory basis, for a public purpose, in accordance
with due process of law, and upon payment of compensation in
accordance with this Article.
2. The expropriation shall be accompanied by the payment of
prompt, adequate and effective compensation. Compensation
shall be equivalent to the fair market value of the
expropriated investment immediately before the expropriation
or impending expropriation became public knowledge.
Compensation shall carry an appropriate interest, taking into
account the length of time from the time of expropriation
until the time of payment. Such compensation shall be
effectively realisable, freely transferable in accordance
with Article 9.13 (Transfers) and made without delay.
3. Notwithstanding paragraphs 1 and 2, any measure of
expropriation relating to land shall be for a purpose and
upon payment of compensation in accordance with the
applicable domestic legislation of the expropriating Party （
note 26）.
4. This Article does not apply to the issuance of compulsory
licences granted in relation to intellectual property rights,
or to the revocation, limitation or creation of intellectual
property rights, to the extent that such issuance,
revocation, limitation or creation is consistent with the
TRIPS Agreement.

（note 25) Article 9.12 (Expropriation) is to be interpreted in
accordance with Annex 9.
（note 26) In the case of Singapore, the applicable legislation
is the Land Acquisition Act (Cap. 152), and any
amendments thereto.

ARTICLE 9.13 TRANSFERS
1. Each Party shall permit all transfers relating to a covered
investment to be made freely and without delay into and out
of its territory. Such transfers include:
(a) contributions to capital, including the initial
contribution;
(b) profits, dividends, capital gains, and proceeds from the
sale of all or any part of the investment or from the
partial or complete liquidation of the investment;
(c) interest, royalty payments, management fees, and technical
assistance and other fees;
(d) payments made under a contract entered into by the investor,
or its investment, including payments made pursuant to a
loan agreement;
(e) payments made pursuant to Article 9.12 (Expropriation) and
Article 9.8 (Compensation for Losses); and
(f) payments arising under Article 9.16 (Settlement of Disputes
between a Party and an Investor of the Other Party).
2. Each Party shall permit such transfers to be made in a freely
usable currency at the market rate of exchange prevailing at
the time of transfer.
3. Each Party shall permit returns in kind relating to a covered
investment to be made as authorised or specified in an
investment authorisation or other written agreement between
the Party and a covered investment or an investor of the
other Party.
4. Notwithstanding paragraphs 1, 2, and 3, a Party may delay or
prevent a transfer through the equitable, non-discriminatory,
and good faith application of its laws relating to:
(a) bankruptcy, insolvency, or the protection of the rights of
creditors;
(b) issuing, trading, or dealing in securities, futures,
options, or derivatives;
(c) financial reporting or record keeping of transfers when
necessary to assist law enforcement or financial regulatory
authorities;
(d) criminal or penal offences;
(e) ensuring compliance with orders or judgments in judicial or
administrative proceedings; or
(f) social security （note 27）, public retirement or compulsory
savings schemes.
5. Nothing in this Chapter shall affect the rights and
obligations of the members of the International Monetary Fund
under the Articles of Agreement of the International Monetary
Fund, including the use of exchange actions which are
consistent with such Articles of Agreement, provided that a
Party shall not impose restrictions on any capital
transactions inconsistently with its obligations under this
Chapter regarding such transactions, except under Article
16.5 (Restrictions to Safeguard the Balance of Payments) or
at the request of the International Monetary Fund.

（note 27) For greater certainty, social security schemes
include compulsory health insurance schemes.

ARTICLE 9.14 DENIAL OF BENEFITS
Subject to prior notification and consultation, a Party may deny
the benefits of this Chapter to an investor of the other Party
that is an enterprise of such Party and to investments of such
an investor where the Party establishes that the enterprise is
owned or controlled by persons of a non-Party, or of the denying
Party, and has no substantive business operations in the
territory of the other Party.

ARTICLE 9.15 SUBROGATION
1. If a Party (or any agency, institution, statutory body or
corporation designated by it) makes a payment to any of its
investors under a guarantee, a contract of insurance or other
form of indemnity it has granted in respect of a covered
investment, the other Party shall recognise the subrogation
or transfer of any right or title in respect of such
investment. The subrogated or transferred right or claim
shall not be greater than the original right or claim of the
investor.
2. Where a Party (or any agency, institution, statutory body or
corporation designated by it) has made a payment to an
investor of that Party and has taken over rights and claims
of the investor, that investor shall not, unless authorised
to act on behalf of the Party or the designated agency of the
Party making the payment, pursue those rights and claims
against the other Party.

ARTICLE 9.16 SETTLEMENT OF DISPUTES BETWEEN A PARTY AND AN
INVESTOR OF THE OTHER PARTY
1. This Article shall apply to disputes between a Party and an
investor of the other Party concerning an alleged breach of
an obligation of the former under this Chapter which causes
loss or damage to the investor or its investment.
2. The disputing parties shall initially seek to resolve the
dispute by consultations and negotiations. Such consultations
and negotiations shall be initiated by a written request for
consultations and negotiations delivered by the claimant to
the respondent.
3. Where the dispute cannot be resolved as provided for under
paragraph 2 within six (6) months from the date of a written
request for consultations and negotiations, unless the
disputing parties agree otherwise, the claimant may submit
the dispute:
(a) under the ICC Arbitration Rules;
(b) under the UNCITRAL Arbitration Rules; or
(c) to any other arbitral institutions or under any other
arbitration rules, if the disputing parties so agree.
For the avoidance of doubt, the claimant may submit the claim on
its own behalf, or on behalf of an enterprise of the respondent
that is a juridical person that the claimant owns or controls
directly or indirectly.
4. Each Party hereby consents to the submission of a dispute to
arbitration under paragraph 3 in accordance with the
provisions of this Article, conditional upon:
(a) the submission of the dispute to such arbitration taking
place within three years of the time at which the claimant
became aware, or should reasonably have become aware, of a
breach of an obligation under this Chapter causing loss or
damage to the claimant or its investment;
(b) the claimant not being an enterprise of the respondent until
the claimant refers the dispute for arbitration pursuant to
paragraph 3;
(c) the claimant providing written notice, which shall be
submitted at least thirty (30) days before the claim is
submitted, to the respondent of its intent to submit the
dispute to such arbitration and which:
(i) states the name and address of the claimant and, where a
dispute is submitted on behalf of an enterprise, the name,
address, and place of constitution of the enterprise;
(ii) nominates either subparagraph 3(a), 3(b) or 3(c) as the
forum for dispute settlement;
(iii) waives its right to initiate or continue any proceedings
(excluding proceedings for interim measures of
protection referred to in paragraph 9) before any of the
other dispute settlement fora referred to in paragraph
3, or before any administrative tribunal or court under
the law of either Party, in relation to the matter under
dispute; and
(iv) briefly summarises the alleged breach of the respondent
under this Chapter (including the provisions alleged to
have been breached), the legal and factual basis for the
dispute, and the loss or damage allegedly caused to the
claimant or its investment by reason of that breach; and
(d) the claimant consenting to the submission of the dispute in
accordance with the provisions of this Article.
5. The consent under paragraph 4 and the submission of a claim
to arbitration under this Article shall satisfy the
requirements of Article II of the New York Convention for an
“ agreement in writing ”.
6. Unless the disputing parties otherwise agree, the arbitral
tribunal shall be composed of three arbitrators. Each
disputing party shall appoint one arbitrator and the
disputing parties shall agree upon a third arbitrator, who
shall be the chairman of the arbitral tribunal. If an
arbitral tribunal has not been established within ninety (90)
days from the date on which the claim was submitted to
arbitration, either because a disputing party failed to
appoint an arbitrator or because the disputing parties failed
to agree upon the chairman, the Secretary-General of the
Permanent Court of Arbitration, upon request of either
disputing party, shall appoint, at his own discretion, the
arbitrator or arbitrators not yet appointed. Nevertheless,
the Secretary-General of the Permanent Court of Arbitration,
when appointing the chairman, shall ensure that he or she is
a citizen or permanent resident of neither of the Parties.
7. Unless the disputing parties otherwise agree, the tribunal
shall determine the place of arbitration in accordance with
the applicable arbitration rules, provided that the place
shall be in the territory of either Party or a State that is
a party to the New York Convention.
8. The tribunal shall decide the issues in dispute in accordance
with this Agreement and applicable rules of customary
international law.
9. Neither Party shall prevent the claimant from seeking interim
measures of protection, not involving the payment of damages
or resolution of the substance of the matter in dispute
before the courts or administrative tribunals of the
respondent, prior to the institution of proceedings before
any of the dispute settlement fora referred to in paragraph
3, for the preservation of its rights and interests.
10. Neither Party shall espouse a claim or bring an
international claim, in respect of a dispute which one of
its investors and the other Party shall have consented to
submit or have submitted to arbitration under this Article,
unless such other Party has failed to abide by and comply
with the award rendered in such dispute. The espousal of a
claim, for the purposes of this paragraph, shall not include
informal exchanges between the Parties for the sole purpose
of facilitating a settlement of the dispute.
11. A claim that is submitted for arbitration under this Article
shall be considered to arise out of a commercial
relationship or transaction for purposes of Article I of the
New York Convention.
12. The award rendered by the arbitral tribunal shall include:
(a) a judgment whether or not there has been a breach by the
disputing Party of any obligation under this Chapter with
respect to the disputing investor and its investments; and
(b) a remedy if there has been such breach. The remedy shall be
limited to one or both of the following:
(i) payment of monetary damages and applicable interest; and
(ii) restitution of property, in which case the award shall
provide that the disputing Party may pay monetary damages
and any applicable interest in lieu of restitution.
Costs may also be awarded in accordance with the applicable
arbitration rules.
13. Any arbitral award shall be final and binding upon the
disputing parties. Each Party shall ensure the recognition
and enforcement of the award in accordance with its relevant
laws and regulations.

ARTICLE 9.17 SAVINGS CLAUSE
1. For fifteen (15) years from the date of termination of this
Agreement, the following provisions (including the relevant
Annexes and Appendices) shall continue to apply to covered
investments in existence at the date of termination, and
without prejudice to the application thereafter of the rules
of general international law:
(a) the provisions of this Chapter;
(b) the provisions of Chapter 15 (Dispute Settlement);
(c) the provisions of Chapter 16 (General Exceptions); and
(d) such other provisions in the Agreement as may be necessary
for or consequential to the application or interpretation of
this Chapter.
2. For the avoidance of doubt, paragraph 1 shall not apply to
the establishment, acquisition or expansion of investments
after the date of termination.

CHAPTER 10
COMPETITION

ARTICLE 10.1 PURPOSE AND DEFINITIONS
1. The purpose of this Chapter is to contribute to the
fulfilment of the objectives of this Agreement through the
promotion of fair competition and the curtailment of
anti-competitive practices.
2. For the purposes of this Chapter, anti-competitive practices
means business conduct or transactions that adversely affect
competition, such as:
(a) abuse of market power;
(b) anti-competitive mergers and acquisitions; and
(c) anti-competitive horizontal arrangements between
competitors.

ARTICLE 10.2 COOPERATION
1. The Parties recognise the importance of cooperation and
coordination to further effective competition law and policy
development and agree to cooperate on these matters in
accordance with the provisions of this Chapter.
2. The Parties will seek to enhance a better understanding,
communication and cooperation between their competition
authorities responsible for the enforcement of their generic
competition laws in relation to the issues to which this
Chapter refers.

ARTICLE 10.3 NOTIFICATIONS
1. Each Party shall notify the other Party of an enforcement
activity regarding an anti-competitive practice if it:
(a) considers that the enforcement activity is liable to
substantially affect the other Party ’ s trade interests;
(b) relates to restrictions on competition which are liable to
have a direct and substantial effect in the territory of the
other Party; or
(c) concerns anti-competitive acts taking place principally in
the territory of the other Party.
2. Notification shall take place at an early stage of the
procedure, provided that this is not contrary to the Parties
’ competition laws and does not affect any investigation
being carried out.

ARTICLE 10.4 TRANSPARENCY AND INFORMATION REQUESTS
1. The Parties recognise the value of transparency of their
competition policies.
2. Each Party, at the request of the other Party, shall make
available public information concerning the enforcement of
its measures proscribing anti-competitive business conduct.
3. On request, each Party shall make available to the other
Party public information concerning exemptions provided under
its competition laws. Such a request shall specify the
particular goods and markets of interest, and indicate
whether the exemption restricts trade or investment between
the Parties.
4. Information or documents exchanged between the Parties in
relation to any consultation conducted pursuant to the
provisions of this Chapter shall be kept confidential. No
Party shall, except to comply with its domestic legal
requirements, release or disclose such information or
documents to any person without the written consent of the
Party that provided such information or documents. Where the
disclosure of such information or documents is necessary to
comply with the domestic legal requirements of a Party, that
Party shall notify the other Party before such disclosure is
made. The Parties may agree to the public release of
information that they do not consider confidential.

ARTICLE 10.5 CONSULTATIONS
To foster understanding between the Parties, or to address
specific matters that arise under this Chapter, each Party
shall, at the request of the other Party, enter into
consultations regarding representations made by the other Party.
In its request, the Party shall indicate, if relevant, how the
matter affects trade or investment between the Parties. The
Party addressed shall accord full and sympathetic consideration
to the concerns of the other Party.

ARTICLE 10.6 PUBLIC ENTERPRISES AND DESIGNATED MONOPOLIES
1. Nothing in this Chapter prevents a Party from designating or
maintaining public or private monopolies according to its
respective laws.
2. With regard to public enterprises and enterprises to which
special or exclusive rights have been granted, the Parties
shall ensure that, following the date of entry into force of
this Agreement, no measure is adopted or maintained that
distorts trade in goods or services among the Parties, which
is contrary to this Agreement and contrary to the Parties ’
interests, and that such enterprises shall be subject to the
rules of competition insofar as the application of such rules
does not obstruct the performance, in law or in fact, of the
particular tasks assigned to them.

ARTICLE 10.7 DISPUTE SETTLEMENT
1. Nothing in this Chapter permits a Party to challenge any
decision made by a competition authority of the other Party
in enforcing the applicable competition laws and regulations.
2. No Party shall have recourse to any dispute settlement
procedures under this Agreement for any issue arising from or
relating to this Chapter.

CHAPTER 11
ELECTRONIC COMMERCE

ARTICLE 11.1 GENERAL
The Parties recognise the economic growth and opportunity that
electronic commerce provides, and the importance of avoiding
barriers to its use and development.

ARTICLE 11.2 ELECTRONIC SUPPLY OF SERVICES
For greater certainty, the Parties affirm that measures
affecting the supply of a service using electronic means fall
within the scope of the obligations contained in the relevant
provisions of Chapters 8 (Cross-Border Trade in Services) and 9
(Investment) subject to any exceptions or non-conforming
measures set out in this Agreement, which are applicable to such
obligations.

ARTICLE 11.3 CUSTOMS DUTIES AND INTERNAL TAXES
1. Neither Party may impose customs duties on electronic
transmission between the Parties.
2. For the purposes of determining applicable customs duties,
each Party shall determine the customs value of an imported
carrier medium bearing a digital product based on the cost or
value of the carrier medium alone, without regard to the cost
or value of the digital product stored on the carrier medium.
3. For greater certainty, nothing in this Chapter shall be
construed to prevent a Party from imposing internal taxes,
directly or indirectly, on digital products, provided they
are imposed in a manner consistent with this Agreement.

ARTICLE 11.4 NON-DISCRIMINATORY TREATMENT
1. Neither Party may accord less favourable treatment to some
digital products transmitted electronically than it accords
to other like digital products transmitted electronically:
(a) on the basis that:
(i) the digital products receiving less favourable treatment
are created, produced, published, stored, transmitted,
contracted for, commissioned, or first made available on
commercial terms outside its territory; or
(ii) the author, performer, producer, developer, or
distributor of such digital products is a person of the
other Party or non-Party;
or
(b) so as otherwise to afford protection to the other like
digital products that are created, produced, published,
stored, transmitted, contracted for, commissioned, or first
made available on commercial terms in its territory.
2. Neither Party may accord less favourable treatment to digital
products transmitted electronically:
(a) that are created, produced, published, stored, transmitted,
contracted for, commissioned, or first made available on
commercial terms in the territory of the other Party than it
accords to like digital products transmitted electronically
that are created, produced, published, stored, transmitted,
contracted for, commissioned, or first made available on
commercial terms in the territory of a non-Party; or
(b) whose author, performer, producer, developer, or distributor
is a person of the other Party than it accords to like
digital products transmitted electronically whose author,
performer, producer, developer, or distributor is a person
of a non-Party.
3. Paragraphs 1 and 2 do not apply to any non-conforming measure
adopted or maintained in accordance with Articles 8.6
(Non-Conforming Measures) and 9.11 (Non-Conforming Measures).

ARTICLE 11.5 AUTHENTICATION AND ELECTRONIC SIGNATURES
1. Neither Party may:
(a) prohibit parties to an electronic transaction from mutually
determining the appropriate authentication methods for that
transaction;
(b) prevent parties from having the opportunity to establish
before judicial or administrative authorities that their
electronic transaction complies with any legal requirements
with respect to authentication; or
(c) deny a signature legal validity solely on the basis that it
is an electronic signature.
2. Notwithstanding paragraph 1, the authorities represented by a
Party may require that, for a particular category of
transactions, the method of authentication meet certain
performance standards or be certified by an authority
accredited in accordance with the Party ’ s laws and
regulations, provided the requirement:
(a) serves a legitimate governmental objective; and
(b) is substantially related to achieving that objective.

ARTICLE 11.6 PAPERLESS TRADE ADMINISTRATION
1. Each Party shall endeavour to make all trade administration
documents available to the public in electronic form.
2. Each Party shall endeavour to accept trade administration
documents submitted electronically as the legal equivalent of
the paper version of such documents.

ARTICLE 11.7 COOPERATION
Recognising the global nature of electronic commerce, the
Parties affirm the importance of:
(a) working together to promote the use of electronic commerce
by small and medium enterprises;
(b) sharing information and experiences on laws, regulations,
and programs in the sphere of electronic commerce, including
those related to data privacy, consumer protection and
promoting confidence in electronic commerce and electronic
signatures;
(c) encouraging the private sector to adopt self-regulation,
including through codes of conduct, model contracts,
guidelines, and enforcement mechanisms that foster
electronic commerce; and
(d) actively participating in bilateral and multilateral fora to
promote the development of electronic commerce.

ARTICLE 11.8 DEFINITIONS
For the purposes of this Chapter:
carrier medium means any physical object capable of storing the
digital codes that form a digital product by any method now
known or later developed, and from which a digital product can
be perceived, reproduced, or communicated, directly or
indirectly, and includes, but not limited to, an optical medium,
a floppy disk, and a magnetic tape;
digital products means computer programs, text, video, images,
sound recordings, and other products that are digitally encoded
and produced for commercial sale or distribution, regardless of
whether they are fixed on a carrier medium or transmitted
electronically（note 28）;
electronic authentication means the process of testing an
electronic statement or claim, in order to establish a level of
confidence in the statement ’ s or claim ’ s reliability;
electronic signature means the meaning set out in its domestic
laws and regulations by each Party;
electronic means means employing computer processing; and
electronic transmission or transmitted electronically means the
transfer of digital products using any electromagnetic or
photonic means.

（note 28) For greater certainty, digital products do not
include digitised representation of financial
instruments, including money.

CHAPTER 12
GOVERNMENT PROCUREMENT

ARTICLE 12.1 GENERAL
1. The Parties reaffirm their rights and obligations under the
WTO Agreement on Government Procurement, as amended by the
Decision on the Outcomes of the Negotiations Under Article
XXIV:7 of the Agreement on Government Procurement, made on 30
March 2012 (hereinafter referred to as “ GPA ” ), and their
interest in further expanding bilateral trading opportunities
in each Party ’ s government procurement market.
2. The Parties recognise their shared interest in promoting
international liberalisation of government procurement
markets in the context of the rules-based international
trading system. The Parties shall continue to cooperate in
the review under Article XXII:6-10 of the GPA and on
procurement matters in the APEC and other appropriate
international fora.
3. Nothing in this Chapter shall be construed to derogate from
either Party ’ s rights or obligations under the GPA.
4. In accordance with Article IV:7 of the GPA, the provisions of
this Chapter do not affect the rights and obligations
provided for in Chapter 3 (Trade in Goods), Chapter 8
(Cross-Border Trade in Services), and Chapter 9 (Investment).

ARTICLE 12.2 INCORPORATION OF GPA PROVISIONS
1. The Parties shall apply the provisions of Articles I:(a),
(c), (e)-(u), II-III, IV:1(a), 2-7, VI:1-2(b), 3, VII-XV,
XVI:1-3, XVII-XVIII, the Agreement Notes, and Appendices
II-IV of the GPA to all covered procurement. To that end,
these GPA Articles, Notes and Appendices are incorporated
into and made part of this Chapter, mutatis mutandis.
2. For the purposes of the incorporation of the GPA under
paragraph 1, the term:
(a) Agreement in the GPA means Chapter;
(b) Appendix I in the GPA means Annex 12A;
(c) Appendix II, III or IV in GPA means Annex 12B;
(d) Annex 1 in the GPA means Schedule A of Annex 12A;
(e) Annex 2 in the GPA means Schedule B of Annex 12A;
(f) Annex 3 in the GPA means Schedule C of Annex 12A;
(g) Annex 4 in the GPA means Schedule D of Annex 12A;
(h) Annex 5 in the GPA means Schedule E of Annex 12A;
(i) Annex 6 in the GPA means Schedule F of Annex 12A;
(j) Annex 7 in the GPA means Schedule G of Annex 12A;
(k) any other Party, any Party, Committee or another Party means
the other Party; and
(l) one of the WTO languages in Article VII:3 means the English
language.
3. If the GPA is amended or is superseded by another agreement,
the Parties shall amend this Chapter, as appropriate, after
consultations.

ARTICLE 12.3 MODIFICATIONS AND RECTIFICATIONS TO COVERAGE
1. Where a Party proposes to make minor amendments,
rectifications or other modifications of a purely formal or
minor nature to its Schedules to Annex 12A, it shall notify
the other Party. Such amendments, rectifications or
modifications shall become effective thirty (30) days from
the date of notification. The other Party shall not be
entitled to compensatory adjustments.
2. Where a Party proposes to make a modification to its
Schedules to Annex 12A when the business or commercial
operations or functions of any of its entities or part
thereof is constituted or established as an enterprise with a
legal entity separate and distinct from the government of a
Party, regardless of whether or not the government holds any
shares or interest in such a legal entity, it shall notify
the other Party. The proposed removal of such entity or
modification shall become effective thirty (30) days from the
date of notification. The other Party shall not be entitled
to compensatory adjustments.
3. Where a Party proposes to make a modification for reasons
other than those stated in paragraphs 1 and 2, it shall
notify the other Party and provide appropriate compensatory
adjustments in order to maintain a level of coverage
comparable to that existing prior to the modification. The
proposed modification shall become effective thirty (30) days
from the date of notification.

ARTICLE 12.4 CONTACT POINTS
Each Party shall designate a contact point as specified in Annex
12C to facilitate communications between the Parties on any
matter covered by this Chapter.

CHAPTER 13
INTELLECTUAL PROPERTY COOPERATION

ARTICLE 13.1 GENERAL OBJECTIVES AND PRINCIPLES
1. The Parties, recognising the importance of intellectual
property as a factor of each Party ’ s economic
competitiveness in the global economy, undertake to develop
and promote mutually beneficial cooperation between the
Parties in this area.
2. Recalling the contributions achieved in the WTO Agreement on
Trade-Related Aspects of Intellectual Property Rights, the
areas of the cooperation may include:
(a) copyright and related rights, trademarks, geographical
indications, industrial designs, patents, layout-designs
(topographies) of integrated circuits, protection of
undisclosed information, and control of anti-competitive
practices in contractual licences;
(b) endeavouring to facilitate industrial property exploitation
with each Party ’ s private sector industries, in
particular small and medium enterprises; and
(c) the development of professional skills of the intellectual
property industry in each Party through information sharing
and exchange.

ARTICLE 13.2 FORMS OF COOPERATION
The forms of the cooperation pursuant to Article 13.1 (General
Objectives and Principles) may include:
(a) exchanging publicly available published documents and
information by each Party ’ s respective intellectual
property office;
(b) exchanging experience and information on areas such as
intellectual property education and awareness, collective
management organisations and e-filing systems;
(c) jointly collaborating in the organisation of seminars,
symposia or meetings related to intellectual property
subjects under the framework of the WTO or APEC;
(d) exchanging information on intellectual property conferences,
seminars and workshops organised by each respective Party.
Each Party may, as appropriate, invite the other Party to
participate;
(e) endeavouring to facilitate linkages and dialogue between IP
Academy (Singapore) and Taiwan Intellectual Property
Training Academy to carry out cooperation activities as
appropriate; and
(f) such other activities and initiatives as may be mutually
determined by the Parties from time to time.

ARTICLE 13.3 TERMS OF COOPERATION
All cooperation referred to in Article 13.1 (General Objectives
and Principles) shall be carried out on terms to be agreed by
the Parties.

ARTICLE 13.4 RESOURCES AND FINANCING
1. Cooperation activities and initiatives undertaken under this
Chapter shall be subject to the availability of resources.
2. Expenses incurred as a result by any Party to undertake
cooperation activities in this Chapter shall be borne by the
Party concerned, unless otherwise agreed.

CHAPTER 14
TRANSPARENCY

ARTICLE 14.1 DEFINITIONS
For the purposes of this Chapter:
administrative ruling of general application means an
administrative ruling or interpretation that applies to all
persons and fact situations that fall generally within its ambit
and that establishes a norm of conduct but does not include:
(a) a determination or ruling made in an administrative or
quasi-judicial proceeding that applies to a particular
person, good or service of the other Party in a specific
case; or
(b) a ruling that adjudicates with respect to a particular act
or practice.

ARTICLE 14.2 PUBLICATION
1. Each Party shall ensure that its laws, regulations,
procedures and administrative rulings of general application
relating to any matter covered by this Agreement are promptly
published or otherwise made available in such a manner as to
enable interested persons and the other Party to become
acquainted with them.
2. To the extent possible, each Party shall in accordance with
its domestic laws, regulations and procedures:
(a) publish in advance any such laws, regulations, procedures,
and administrative rulings that it proposes to adopt; and
(b) provide interested persons and the other Party a reasonable
opportunity to comment on such measures.

ARTICLE 14.3 NOTIFICATION AND PROVISION OF INFORMATION
1. To the maximum extent possible, each Party shall notify the
other Party of any measure that, the Party considers, may
materially affect the operation of this Agreement or
otherwise substantially affect the other Party ’ s interests
under this Agreement.
2. Upon request of the other Party, a Party shall promptly
provide information and respond to questions pertaining to
any measure, whether or not the other Party has been
previously notified of that measure.
3. Any notification, or information provided under this Article
shall be without prejudice as to whether the measure is
consistent with this Agreement.
4. Any notification, request, or information under this Article
shall be provided to the other Party through the relevant
contact points.

ARTICLE 14.4 ADMINISTRATIVE PROCEEDINGS
With a view to administering in a consistent, impartial and
reasonable manner all measures referred to in Article 14.2
(Publication), each Party shall ensure that in its
administrative proceedings applying such measures to particular
persons, goods or services of the other Party in specific cases
that:
(a) wherever possible, persons of the other Party that are
directly affected by a proceeding are provided with a
reasonable notice, in accordance with domestic procedures,
when a proceeding is initiated, including a description of
the nature of the proceeding, a statement of the legal
authority under which the proceeding is initiated and a
general description of any issues in controversy;
(b) such persons are afforded with a reasonable opportunity to
present facts and arguments in support of their positions
prior to any final administrative action, when time, the
nature of the proceeding and the public interest permit; and
(c) its procedures are in accordance with its domestic law.

ARTICLE 14.5 REVIEW AND APPEAL
1. Each Party shall establish or maintain judicial,
quasi-judicial, or administrative tribunals or procedures for
the purpose of the prompt review and, where warranted,
correction of final administrative actions regarding matters
covered by this Agreement. Such tribunals shall be impartial
and independent of the office or authority entrusted with
administrative enforcement and shall not have any substantial
interest in the outcome of the matter.
2. Each Party shall ensure that, in any such tribunals or
procedures, the parties to the proceeding are provided with
the right to:
(a) a reasonable opportunity to support or defend their
respective positions; and
(b) a decision based on the evidence and submissions of record
and, where required by domestic law, the record compiled by
the administrative authority.
3. Each Party shall ensure, subject to appeal or further review
as provided in its domestic law, that such decisions shall be
implemented by, and shall govern the practice of, the offices
or authorities with respect to the administrative action at
issue.

CHAPTER 15
DISPUTE SETTLEMENT

ARTICLE 15.1 COOPERATION
The Parties shall at all times endeavour to agree on the
implementation, interpretation and application of this
Agreement, and shall make every attempt through cooperation and
consultations to arrive at a mutually satisfactory resolution of
any matter that might affect its operation.

ARTICLE 15.2 SCOPE AND COVERAGE
1. Except as otherwise provided in this Agreement or as the
Parties otherwise agree in writing, the provisions of this
Chapter shall apply with respect to the avoidance and
settlement of all disputes between the Parties regarding the
implementation, interpretation or application of this
Agreement or wherever a Party considers that:
(a) a measure of the other Party is inconsistent with the
obligations of this Agreement;
(b) the other Party has otherwise failed to carry out its
obligations under this Agreement; or
(c) a measure of the other Party causes nullification or
impairment of any benefit accruing to it directly or
indirectly under Chapters 3 (Trade in Goods), 4 (Rules of
Origin), 6 (Sanitary and Phytosanitary Measures), 7
(Technical Barriers to Trade), and 8 (Cross-Border Trade in
Services).
2. Unless otherwise agreed by the Parties, the time frames and
procedural rules set out in this Chapter and its Annex shall
apply to all disputes governed by this Chapter.
3. Findings, determinations and recommendations of an arbitral
panel cannot add to or diminish the rights and obligations of
the Parties under this Agreement.
4. The provisions of this Chapter may be invoked in respect of
measures affecting the observance of this Agreement taken by
the relevant authorities within the territory of a Party.
When an arbitral panel has ruled that a provision of this
Agreement has not been observed, the responsible Party shall
take such reasonable measures as may be available to it to
ensure its observance within its territory.
5. The Parties and the arbitral panel appointed under this
Chapter shall interpret and apply the provisions of this
Agreement in the light of the objectives of this Agreement
and in accordance with customary rules of public
international law.
6. Notwithstanding paragraph 1, any disputes arising from
Chapters 10 (Competition) and 13 (Intellectual Property
Cooperation) shall not be subject to the provisions of this
Chapter save that where there are provisions on consultations
elsewhere in this Agreement, Articles 15.4 (Consultations)
and 15.5 (Good Offices, Conciliation or Mediation) shall
apply, mutatis mutandis.

ARTICLE 15.3 CHOICE OF FORUM
1. Disputes regarding any matter arising under both this
Agreement and the WTO Agreement, any agreement negotiated
thereunder, or any successor agreement, may be settled in the
forum selected by the complaining Party.
2. Once dispute settlement procedures have been initiated under
Article 15.6 (Request for an Arbitral Panel) or dispute
settlement proceedings have been initiated under the WTO
Agreement, the forum selected shall be used to the exclusion
of the other, unless substantially separate and distinct
rights or obligations under different international
agreements are in dispute.
3. For the purposes of this Article, dispute settlement
proceedings under the WTO Agreement are deemed to be
initiated upon a request for a panel by a Party.

ARTICLE 15.4 CONSULTATIONS
1. A Party may request in writing consultations with the other
Party on any matter falling under Article 15.2 (Scope and
Coverage) of this Chapter.
2. If a request for consultation is made, the Party to which the
request is made shall reply to the request within ten (10)
days after the date of its receipt and shall enter into
consultations within a period of no more than twenty (20)
days after the date of receipt of the request, with a view to
reaching a mutually satisfactory solution.
3. The Parties shall make every effort to reach a mutually
satisfactory resolution of any matter through consultations.
To this end, the Parties shall:
(a) unless otherwise agreed by the Parties, keep consultations
confidential;
(b) provide sufficient information to enable a full examination
of how the measure might affect the operation of the
Agreement; and
(c) treat as confidential any information exchanged in the
consultations which the other Party has designated as
confidential.

ARTICLE 15.5 GOOD OFFICES, CONCILIATION OR MEDIATION
1. The Parties may at any time agree to good offices,
conciliation or mediation. They may begin at any time and be
terminated by either Party at any time.
2. Proceedings involving good offices, conciliation and
mediation, and in particular positions taken by the Parties
during these proceedings, shall be confidential, and without
prejudice to the rights of either Party in any further
proceedings under the provisions of this Chapter or any other
proceedings before a forum selected by the Parties.
3. If the Parties agree, procedures for good offices,
conciliation or mediation may continue while the dispute
proceeds for resolution before an arbitral panel established
under Article 15.6 (Request for an Arbitral Panel).

ARTICLE 15.6 REQUEST FOR AN ARBITRAL PANEL
1. A Party may request in writing for the establishment of an
arbitral panel if the matter has not been resolved pursuant
to Article 15.4 (Consultations), within sixty (60) days after
the date of receipt of the request for consultations.
2. A request for arbitration shall give the reason for the
complaint including the identification of the measure at
issue and an indication of the legal basis of the complaint.
3. Upon delivery of the request, an arbitral panel shall be
established.
4. Unless otherwise agreed by the Parties, an arbitral panel
shall be established and perform its functions in accordance
with the provisions of this Chapter.

ARTICLE 15.7 COMPOSITION OF ARBITRAL PANELS
1. The arbitral panel referred to in Article 15.6 (Request for
an Arbitral Panel) shall consist of three (3) members.
2. Each Party shall appoint a member within thirty (30) days of
the receipt of the request under Article 15.6 (Request for an
Arbitral Panel).
3. If a Party fails to make such an appointment (hereinafter
referred to as “ the defaulting Party ” )within such
period:
(a) the defaulting Party shall, within fifteen (15) days from
the expiry of the time referred to in paragraph 2, select a
member from the roster established under subparagraph (b) of
Article 15.8 (Establishment of Roster) to serve as the
member appointed by the defaulting Party;
(b) if the defaulting Party fails to select a member under
subparagraph (a), a member shall be selected by lot drawn by
the other Party from the individuals nominated by the
defaulting Party pursuant to subparagraph (b) of Article
15.8 (Establishment of Roster), to serve as the member
appointed by the defaulting Party.
4. The Parties shall jointly appoint the third member, who shall
serve as the chair of the arbitral panel. If the Parties are
unable to agree on the chair of the arbitral panel within
thirty (30) days after the date on which the second member
has been appointed, the chair shall be selected by lot from
the roster established under subparagraph (a) of Article 15.8
(Establishment of Roster).
5. The date of establishment of the arbitral panel shall be the
date on which the chair is appointed.
6. If a member of the arbitral panel appointed under this
Article becomes unable to act, a successor shall be appointed
in the same manner as prescribed for the appointment of the
original member and the successor shall have all the powers
and duties of the original member. In such a case, any time
period applicable to the arbitral panel proceedings shall be
suspended for a period beginning on the date when the
original member becomes unable to act and ending on the date
when the new member is appointed.
7. Any person appointed as a member of the arbitral panel shall
have expertise or experience in law, international trade,
other matters covered by this Agreement, or the resolution of
disputes arising from international trade agreements. A
member shall be chosen strictly on the bases of objectivity,
integrity, reliability, sound judgment and independence, and
shall not accept instructions from any Party. He or she shall
conduct himself or herself on the same bases throughout the
course of the arbitration proceedings. All members of the
arbitral panel shall comply with the Rule of Conduct for
panellists established under the Understanding of Rules and
Procedures Governing the Settlement of Disputes, which is
part of the WTO Agreement. If a Party believes that a member
is in violation of the bases stated above, the Parties shall
consult and if they agree, the member shall be removed and a
new member shall be appointed in accordance with this
Article. Additionally, the chair shall not be a citizen of,
have his or her usual place of residence in the territory of,
or be employed by, either Party.

ARTICLE 15.8 ESTABLISHMENT OF ROSTER
The Parties shall establish within one (1) year of the date of
entry into force of this Agreement and maintain:
(a) a roster of five (5) individuals, by mutual agreement of the
Parties, who are willing and able to serve as the chair of
the arbitral panel referred to in paragraph 4 of Article
15.7 (Composition of Arbitral Panels); and
(b) a roster of at least ten (10) individuals, with each Party
nominating at least five (5) individuals, who are willing
and able to serve as members of the arbitral panel referred
to in paragraph 3 of Article 15.7 (Composition of Arbitral
Panels),
who shall meet the criteria set out in paragraph 7 of Article
15.7 (Composition of Arbitral Panels). The Parties may, by
mutual agreement, change or include new individuals on the
roster established pursuant to subparagraph (a), whenever they
consider it necessary to do so. Either Party may change or
include new individuals on the roster established pursuant to
subparagraph (b), whenever the Party considers it necessary to
do so.

ARTICLE 15.9 SUSPENSION AND TERMINATION OF PROCEEDINGS
The Parties may agree to suspend, subject to such terms as the
Parties may consider appropriate, or terminate the proceedings
before an arbitral panel at any time by jointly notifying the
chair to this effect.

ARTICLE 15.10 PROCEEDINGS OF ARBITRAL PANELS
1. Unless the Parties agree otherwise, the arbitral panel shall
follow the model rules of procedure in Annex 15, which shall
ensure:
(a) that an arbitral panel shall meet in closed session;
(b) a right to at least one hearing before the arbitral panel;
(c) an opportunity for each Party to provide initial and
rebuttal submissions;
(d) that each Party ’ s written submissions, written versions
of its oral statement, and written response to a request or
question from the arbitral panel may be made public after
they are submitted, subject to subparagraph (f);
(e) a reasonable opportunity for each Party to submit comments
on the initial report presented pursuant to paragraph 3 of
Article 15.12 (Initial Report); and
(f) the protection of confidential information.
2. The arbitral panel may, after consulting the Parties, adopt
additional rules of procedure not inconsistent with the model
rules of procedure in Annex 15.

ARTICLE 15.11 INFORMATION AND TECHNICAL ADVICE
1. Upon request of a Party, or on its own initiative, the
arbitral panel may seek information and technical advice from
any person or body that it deems appropriate. Any information
and technical advice so obtained shall be made available to
the Parties.
2. With respect to factual issues concerning a scientific or
other technical matter raised by a Party, the arbitral panel
may request advisory reports in writing from an expert or
experts. The arbitral panel may, at the request of a Party or
on its own initiative, select, in consultation with the
Parties, scientific or technical experts who shall assist the
arbitral panel during its proceedings, but who shall not have
the right to vote in respect of any decision to be made by
the arbitral panel.

ARTICLE 15.12 INITIAL REPORT
1. Unless the Parties otherwise agree, the arbitral panel shall
base its report on the relevant provisions of this Agreement,
on the submissions and arguments of the Parties, and on any
information before it pursuant to Article 15.11 (Information
and Technical Advice).
2. Unless the Parties otherwise agree, the arbitral panel shall,
within ninety (90) days after the last member is selected,
present to the Parties an initial report containing:
(a) findings of law and/or fact together with reasons;
(b) its determination as to the implementation, interpretation
or application of this Agreement or whether the measure at
issue is inconsistent with the obligations of this Agreement
or whether a Party has otherwise failed to carry its
obligations under this Agreement or whether the measure at
issue causes nullification or impairment of any benefit
accruing to a Party under Chapters 3 (Trade in Goods), 4
(Rules of Origin), 6 (Sanitary and Phytosanitary Measures),
7 (Technical Barriers to Trade) and 8 (Cross-Border Trade in
Services) of this Agreement, or any other determination
requested in the terms of reference; and
(c) its recommendations for the resolution of the dispute.
3. The Parties may submit written comments on the initial report
within fourteen (14) days of its presentation or such other
period as the Parties may agree.
4. In case that such written comments by the Parties are
received as provided for in paragraph 3, the arbitral panel,
on its own initiative or at the request of a Party, may
reconsider its report and make any further examination that
it considers appropriate after considering such written
comments.

ARTICLE 15.13 FINAL REPORT
1. The arbitral panel shall present to the Parties a final
report covering the matters set out in paragraph 2 of Article
15.12 (Initial Report), within thirty (30) days of
presentation of the initial report, unless the Parties
otherwise agree.
2. The final report of the arbitral panel shall be made publicly
available by the Parties within fifteen (15) days of its
delivery, except that opinions expressed in such final report
by any member of the arbitral panel shall be anonymous.

ARTICLE 15.14 IMPLEMENTATION OF FINAL REPORT
1. The final report of an arbitral panel shall be binding on the
Parties and shall not be subject to appeal.
2. On receipt of the final report of an arbitral panel, the
Parties shall agree on:
(a) the means to resolve the dispute, which normally shall
conform with the determinations or recommendations, if any,
of the arbitral panel; and
(b) the reasonable period of time which is necessary in order to
implement the means to resolve the dispute. If the Parties
fail to agree on the reasonable period of time, a Party may
request the original arbitral panel to determine the length
of the reasonable period of time, in the light of the
particular circumstances of the case. The determination of
the arbitral panel shall be presented within fifteen (15)
days from that request.
3. If, in its final report, the arbitral panel determines that a
Party has not conformed with its obligations under this
Agreement or that a Party ’ s measure has caused
nullification or impairment, the means to resolve the dispute
shall, whenever possible, be to eliminate the non-conformity
or the nullification or impairment.
ARTICLE 15.15 NON-IMPLEMENTATION – COMPENSATION AND SUSPENSION
OF BENEFITS
1. If the Parties:
(a) are unable to agree on the means to resolve the dispute
pursuant to subparagraph 2(a) of Article 15.14
(Implementation of Final Report) within thirty (30) days of
issuance of the final report; or
(b) have agreed on the means to resolve the dispute pursuant to
subparagraph 2(a) of Article 15.14 (Implementation of Final
Report) and the Party complained against fails to implement
the aforesaid means within thirty (30) days following the
expiration of the reasonable period of time determined in
accordance with subparagraph 2(b) of Article 15.14
(Implementation of Final Report),
the Party complained against shall enter into negotiations with
the complaining Party with a view to reaching a mutually
satisfactory agreement on any necessary compensatory adjustment.
2. If no mutually satisfactory agreement on compensatory
adjustment has been reached within twenty (20) days after the
Parties have entered into negotiations on compensatory
adjustment, or having agreed on compensatory adjustment, the
complaining Party considers that the other Party has failed
to observe the terms of such agreement, the complaining Party
may at any time thereafter provide written notice to the
Party complained against that it intends to suspend the
application to that Party of benefits of equivalent effect.
The notice shall specify the level of benefits that the
complaining Party proposes to suspend. The complaining Party
may begin suspending benefits thirty (30) days after the date
when it provides notice to the Party complained against under
this paragraph, or the date when the arbitral panel issues
the report under paragraph 6, whichever is later.
3. Any suspension of benefits shall be restricted to benefits
granted to the Party complained against under this Agreement.
4. In considering what benefits to suspend under paragraph 2:
(a) the complaining Party should first seek to suspend benefits
in the same sector or sectors as that affected by the
measure or other matter that the arbitral panel has found to
be inconsistent with this Agreement or to have caused
nullification or impairment; and
(b) the complaining Party may suspend benefits in other sectors
if it considers that it is not practicable or effective to
suspend benefits in the same sector.
5. The suspension of benefits shall be temporary and shall only
be applied until such time as the measure found to be
inconsistent with this Agreement, or to have caused
nullification or impairment has been removed, or a mutually
satisfactory solution is reached.
6. If the Party complained against considers that:
(a) the level of benefits that the complaining Party has
proposed to be suspended is manifestly excessive; or
(b) it has eliminated the non-conformity, nullification or
impairment that the arbitral panel has found,
it may request the original arbitral panel to determine the
matter. The original arbitral panel shall present its
determination to the Parties within thirty (30) days after it
reconvenes. If the arbitral panel determines that the level of
benefits proposed to be suspended is manifestly excessive, it
shall determine the level of benefits it considers to be of
equivalent effect.
7. If the arbitral panel cannot be reconvened with its original
members, the procedures for appointment for the arbitral
panel set out in Article 15.7 (Composition of Arbitral
Panels) shall be applied.

ARTICLE 15.16 OFFICIAL LANGUAGE
1. All proceedings and all documents submitted to the arbitral
panel shall be in the English language.
2. When an original document submitted to the arbitral panel by
a Party is not in the English language, that Party shall
translate the whole or such parts of the document that may be
relevant or as requested by the panel or the other Party into
the English language, and submit it with the original
document at the same time.

ARTICLE 15.17 EXPENSES
1. Unless the Parties otherwise agree, the costs of the arbitral
panel and other expenses associated with the conduct of its
proceedings shall be borne in equal parts by the Parties.
2. Each Party shall bear its own expenses and legal costs in the
arbitral proceedings.

CHAPTER 16
EXCEPTIONS

ARTICLE 16.1 DEFINITIONS
For the purposes of this Chapter:
tax agreement means a convention for the avoidance of double
taxation or other international taxation agreement or
arrangement.

ARTICLE 16.2 GENERAL EXCEPTIONS
1. Article XX of GATT 1994 and its interpretive notes are
incorporated into and made part of this Agreement, mutatis
mutandis, for the purposes of Chapters 3 (Trade in Goods), 5
(Customs Procedures), 6 (Sanitary and Phytosanitary
Measures), and 7 (Technical Barriers to Trade), 11
(Electronic Commerce) and 13 (Intellectual Property
Cooperation). The Parties understand that the measures
referred to in Article XX(b) of GATT 1994 include
environmental measures necessary to protect human, animal, or
plant life or health, and that Article XX(g) of GATT 1994
applies to measures relating to the conservation of living
and non-living exhaustible natural resources.
2. Subparagraphs (a), (b) and (c) of Article XIV of GATS
(including its footnotes) are incorporated into and made part
of this Agreement, mutatis mutandis, for the purposes of
Chapters 8 (Cross-Border Trade in Services), 9 (Investment),
11 (Electronic Commerce) and 13 (Intellectual Property
Cooperation). The Parties understand that the measures
referred to in Article XIV(b) of GATS include environmental
measures necessary to protect human, animal, or plant life or
health.

ARTICLE 16.3 ESSENTIAL SECURITY
Nothing in this Agreement shall be construed:
(a) to require a Party to furnish or allow to have access to any
information, the disclosure of which it considers contrary
to its essential security interests; or
(b) to preclude a Party from applying measures that it considers
necessary for the fulfilment of its obligations with respect
to the maintenance of international peace or security, or
the protection of its own essential security interests （
note 29）.

（note 29）For greater certainty, nothing in this Agreement
shall prevent a Party from taking any action which it
considers necessary for the protection of critical
public infrastructure, including but not limited to
communications, power, water, and transportation
infrastructure, from deliberate attempts intended to
disable or degrade such infrastructure.

ARTICLE 16.4 TAXATION
1. Except as set out in this Article, nothing in this Agreement
shall apply to taxation measures.
2. Nothing in this Agreement shall affect the rights and
obligations of either Party under any tax agreement in force
between the competent authorities of the Parties. In the
event of any inconsistency between this Agreement and any
such agreement, that agreement shall prevail to the extent of
the inconsistency. In the case of such tax agreement in force
between the competent authorities of the Parties, the
competent authorities under that agreement shall have sole
responsibility for determining whether any inconsistency
exists between this Agreement and that agreement.
3. Notwithstanding paragraph 2, Article 3.3 (National Treatment)
and such other provisions of this Agreement as are necessary
to give effect to that Article shall apply to taxation
measures to the same extent as does Article III of GATT 1994.
4. For greater certainty, subject to paragraph 2, Article 8.3
(National Treatment) and Article 9.5 (National Treatment)
shall not be applied to the adoption or enforcement of any
taxation measure aimed at ensuring the equitable or effective
imposition or collection of taxes permitted by Article XIV(d)
of GATS.
5. Articles 9.12 (Expropriation) and 9.16 (Settlement of
Disputes between a Party and an Investor of the Other Party)
shall apply to taxation measures to the extent that such
taxation measures constitute expropriation as provided for
therein （note 30）. An investor that seeks to invoke Article
9.12 (Expropriation) with respect to a taxation measure must
first refer to the relevant authorities specified in Annex
16, at the time that it gives notice under Article 9.16
(Settlement of Disputes between a Party and an Investor of
the Other Party), the issue of whether that taxation measure
involves an expropriation. If the relevant authorities do not
agree to consider the issue or, having agreed to consider it,
fail to agree that the measure is not an expropriation within
a period of six (6) months of such referral, the investor may
submit its claim to arbitration under Article 9.16
(Settlement of Disputes between a Party and an Investor of
the Other Party).
(i) the imposition of taxes does not generally constitute
expropriation. The mere introduction of new taxation
measures or the imposition of taxes in more than one
jurisdiction in respect of an investment does not in and
of itself constitute expropriation;
(ii) taxation measures which are consistent with internationally
recognised tax policies, principles and practices do not
constitute expropriation. In particular, taxation measures
aimed at preventing the avoidance or evasion of taxes
should not, generally, be considered to be expropriatory;
and
(iii) taxation measures which are applied on a
non-discriminatory basis, as opposed to being targeted at
investors of a particular nationality/citizenship or
specific individual taxpayers, are less likely to
constitute expropriation. A taxation measure should not
constitute expropriation if, when the investment is made,
it was already in force, and information about the measure
was made public or otherwise made publicly available.

（note 30) With reference to Article 9.12 (Expropriation) in
assessing whether a taxation measure constitutes
expropriation, the following considerations are
relevant:

ARTICLE 16.5 RESTRICTIONS TO SAFEGUARD THE BALANCE OF PAYMENTS
1. For the purposes of Chapter 3 (Trade in Goods), the Parties
shall endeavour to avoid the imposition of restrictive
measures for balance of payments purposes.
2. Any such measure taken for trade in goods must be in
accordance with Article XII of GATT 1994 and the
Understanding on the Balance-of-Payments Provisions of the
General Agreement on Tariffs and Trade 1994, which shall be
incorporated into and made a part of this Agreement.
3. For the purposes of Chapters 8 (Cross-Border Trade in
Services) and 9 (Investment), in the event of serious balance
of payments and external financial difficulties or threat
thereof, a Party may adopt or maintain restrictions on:
(a) payments or transfers related to investments; or
(b) trade in services in respect of which it has obligations
under Articles 8.3 (National Treatment) and 8.4 (Market
Access), including on payments or transfers for transactions
relating to such obligations.
It is recognised that particular pressures on the balance of
payments of a Party in the process of economic development may
necessitate the use of restrictions to ensure, inter alia, the
maintenance of a level of financial reserves adequate for the
implementation of its programme of economic development.
4. The restrictions referred to in paragraph 3 shall:
(a) be consistent with the Articles of Agreement of the
International Monetary Fund;
(b) avoid unnecessary damage to the commercial, economic and
financial interests of the other Party;
(c) not exceed those necessary to deal with the circumstances
described in paragraph 3;
(d) be temporary and be phased out progressively as the
situation specified in paragraph 3 improves; and
(e) be applied on a non-discriminatory basis such that the other
Party is treated no less favourably than any non-Party.
5. Any restrictions adopted or maintained under paragraph 3, or
any changes therein, shall be promptly notified to the other
Party.
6. The Party adopting any restrictions under paragraph 3 shall
commence consultations with the other Party in order to
review the restrictions adopted by it.

CHAPTER 17
ADMINISTRATION AND FINAL PROVISIONS

ARTICLE 17.1 REVIEW ON THE IMPLEMENTATION OF THE AGREEMENT
1. In addition to the provisions for consultations elsewhere in
this Agreement, the Parties shall meet within a year of the
date of entry into force of this Agreement to review the
implementation of this Agreement; thereafter, subject to
mutual agreement, the Parties may meet biennially or
otherwise as appropriate.
2. Pursuant to paragraph 1, the Parties may:
(a) review the implementation and application of the provisions
of this Agreement including the work of any committees and
working groups established under this Agreement;
(b) establish and delegate responsibilities to any ad hoc or
standing committees, working groups or expert groups to:
(i) assign them with tasks on specific matters;
(ii) study and recommend to the Parties any appropriate
measures to resolve any issues arising from the
implementation or application of any part of this
Agreement; or
(iii) to consider, upon either Party ’ s request, new issues
not already dealt with by this Agreement; and
(c) consider any other matter that may affect the operation of
this Agreement.

ARTICLE 17.2 CONTACT POINTS
1. Each Party shall designate a lead agency as specified in
Annex 17 to serve as the contact point to facilitate
communications between the Parties on any matter covered by
this Agreement.
2. For the purposes of this Agreement, all communications or
notifications to or by a Party shall be made through its
contact point.

ARTICLE 17.3 ANNEXES AND APPENDICES
The Annexes and Appendices to this Agreement shall constitute
integral parts of this Agreement.

ARTICLE 17.4 AMENDMENTS
1. The Parties may agree on any amendment to this Agreement.
2. When so agreed, such an amendment under paragraph 1 shall
enter into force and constitute an integral part of this
Agreement after the Parties have exchanged written
notification certifying that they have completed necessary
internal legal procedures and on such date or dates as may be
agreed between the Parties.

ARTICLE 17.5 ENTRY INTO FORCE
This Agreement shall enter into force thirty (30) days after an
exchange of written notifications, certifying the completion of
the necessary legal procedures of each Party.

ARTICLE 17.6 TERMINATION
Either Party may terminate this Agreement by written
notification to the other Party and such termination shall take
effect six (6) months after the date of the notification.

IN WITNESS WHEREOF the undersigned, being duly authorised
thereto, have signed this Agreement

DONE in duplicate in the English language, on the 7th day
November 2013, at Singapore.

__________________ __________________
FOR THE SEPARATE FOR SINGAPORE
CUSTOMS
TERRITORY OF
TAIWAN, PENGHU,
KINMEN AND
MATSU

MR FA-DAH HSIEH MR CALVIN EU
REPRESENTATIVE TRADE
REPRESENTATIVE

TAIPEI SINGAPORE TRADE
REPRESENTATIVE OFFICE IN TAIPEI
OFFICE IN
SINGAPORE