BACKGROUND
This Memorandum of Understanding (MOU) embodies understandings
between the Taipei Economic and Cultural Office (TECO) in
Australia and the Australian Commerce and Industry Office (ACIO)
in Taiwan (hereinafter referred to as the Participants) and sets
out a framework through which the Food and Drug Administration
(FDA) in the Department of Health, Taiwan, may work with the
Biosecurity Services Group (BSG) in the Australian Government
Department of Agriculture, Fisheries and Forestry, in order to
facilitate the trade of dairy products between Taiwan and
Australia through the reduction or waiver of food safety
inspections. FDA and BSG are collectively referred to as the
Competent Authorities.

Through this MOU, the Participants intend to:

‧ ensure that dairy products traded between Taiwan and
Australia are safe, wholesome and meet relevant laws,
regulations and requirements established by Taiwan and
Australia (hereinafter referred to as Requirements); and
‧ recognise that Taiwan ’ s export inspection and
certification systems, as applied to dairy products, meet
Australia ’ s Requirements subject to successful completion
of an assessment of Taiwan ’ s food certification and
inspection system; and, where possible under the Imported Food
Control Act 1992, reduce the frequency of the import food
safety inspection in the event that the export of dairy
products from Taiwan to Australia is accompanied by export
certification which is issued by FDA (hereinafter referred to
as Certificate); and
‧ recognise that Australia ’ s export inspection and
certification systems, as applied to dairy products, meet
Taiwan ’ s Requirements; and reduce the frequency of the
import food safety inspection in the event that the export of
dairy products from Australia to Taiwan is accompanied by
export certification which is issued by BSG (hereinafter
referred to as Certificate).
‧ These intentions embodied in this MOU are set out as follows:

1. SCOPE AND EFFECT OF THIS MEMORANDUM OF UNDERSTANDING
This MOU covers dairy products which are produced and made in
the territories of the Participants and accompanied by a
Certificate. A Certificate will not be issued unless the
dairy products concerned meet the Requirements. Harmonised
System Codes of dairy products that are subject to this MOU
are listed in Annex to this MOU.

2. OPERATION OF THIS MEMORANDUM OF UNDERSTANDING
Nothing in this MOU affects in any way the rights and
obligations of the Separate Customs Territory of Taiwan,
Penghu, Kinmen and Matsu and Australia under the Marrakesh
Agreement Establishing the World Trade Organization (“ WTO
Agreement ” ).

3. RESPONSIBILITIES OF THE COMPETENT AUTHORITIES

3.1 The Competent Authorities will operate according to their
own export inspection and certification program covering
export of dairy products, as described in:

In the case of FDA, the Act Governing Food Sanitation and
associated Standards, including the Sanitary Standard for
Milk and Milk Products, Pesticide Residue Limits in Meat
Products and Scope and Application Standards of Food
Additives, that also require that dairy products exported
from Taiwan meet government requirements of an importing
authority, in this case, BSG, as provided under the Imported
Food Control Act 1992.

In the case of BSG, the Export Control Act 1982 and
associated Regulations and Orders, including the Export
Control (Milk and Milk Products) Orders 2005 that also
require that dairy products exported from Australia meet
government requirements of an importing authority, in this
case, FDA. BSG will only certify dairy products made in
Australia that comply with the Export Control Act 1982 and
associated Regulations and Orders, including the Export
Control (Milk and Milk Products) Orders 2005.

3.2 In the operation of the Requirements, the Competent
Authorities will mutually recognise each other as a foreign
importing authority that is capable of providing inspection
and certification of dairy products such that:

The import food safety inspection upon the trade of dairy
products from Australia to Taiwan will be reduced to 2% of
import shipments.

The import food safety inspection upon the trade of dairy
products from Taiwan to Australia will be reduced to a
percentage, in line with the Imported Food Control Act 1992,
after Australia recognises that Taiwan ’ s export
inspection and certification systems as applied to dairy
products, meet Australia ’ s requirements subject to
successful completion of an assessment of Taiwan ’ s food
certification and inspection system.

3.3 Each Competent Authority will immediately notify the other
in writing where a breach of the Requirements is found.

3.4 The Competent Authorities will inform each other in writing
of any proposed variations to the Requirements.

3.5 BSG will prepare an annual report for FDA on the compliance
with the Requirements of establishments registered by BSG to
export dairy products and their products, when these have
been exported to Taiwan in the preceding year.

3.6 In the instance that a systems audit is required to initiate
and to continue the waived or reduced frequency of import
food safety inspection, each Participant should cover its
expenses associated with conducting the audit of the other
Participant's systems unless otherwise mutually decided.

4. ASSESSMENT AND VERIFICATION PROVISIONS

4.1 Each Competent Authority will check the validity of
Certificates accompanying shipments of dairy products issued
by the other Competent Authority.

4.2 Each Competent Authority will conduct random verification
sampling of dairy products exported from the territory of
the other Participant under this MOU. The verification
sampling will be conducted at the following rate:
(a) for imports of Australian dairy products into Taiwan, at a
rate of no more than 2 per cent of shipments arriving.
(b) for imports of Taiwanese dairy products into Australia, at
the most favourable rate available under the Imported Food
Control Act 1992.

In the event that a breach of the Requirements is found by a
Competent Authority, the rate thereof may be modified
subject to review and discretion of the Competent Authority
concerned prior to the expiration of the every three (3)
year period provided in Paragraph 9 of this MOU.

4.3 These assessments will be conducted taking into account the
“ Guidelines on procedures for conducting an assessment and
verification by an importing country of inspection and
certification systems of an exporting country ” contained
in the Annex to the Codex Alimentarius Commission (Codex) “
Guidelines for the Design, Operation, Assessment and
Accreditation of Food Import and Export Inspection and
Certification Systems ” (CAC/GL 26-1997).

5. TRANSPARENCY, INFORMATION EXCHANGE AND COOPERATION

The Competent Authorities will cooperate and communicate as
appropriate in relation to the operation of this MOU. This
will include, but not be limited to, communication and
cooperation on legislation, policies, procedures and
guidelines concerning enforcement and inspection. Specific
information that will be exchanged to facilitate the
continued operation of this MOU includes:

(a) Description of adverse findings during inspections conducted
by a Competent Authority that may cause product in trade to
fail the Requirements.
(b) Description of adverse findings of random compliance checks
carried out by a Competent Authority and the disposition of
implicated product and inspection rates that may be
applicable to subsequent shipments.
(c) Falsification of Certificates.
(d) Any standard, guideline and their subsequent amendment made
by the Codex where the commitments of the Competent
Authorities under this MOU may be involved.

6. NOTIFICATIONS

The Competent Authorities will utilise the Codex "Guidelines
for the Exchange of Information in Food Control Emergency
Situations" (CAC/GL 19-1995) when there is an identified risk
of serious public health effects related to the trade of
dairy products between Taiwan and Australia.

7. DISPUTE SETTLEMENT

In the event of disagreement between the Participants in
relation to the interpretation or application of this MOU,
the Participants should seek consultations between the
Competent Authorities, without prejudice to the rights and
obligations of the Separate Customs Territory of Taiwan,
Penghu, Kinmen and Matsu and Australia under the WTO
Agreement, or to the Participants' rights of resort to the
dispute settlement mechanisms of other international
organisations or to those that are established under any
other international agreement, or to relevant dispute
settlement mechanisms applicable in the territories of the
Competent Authorities.

8. LIAISON OFFICIALS

Taiwan Australia
Section Chief General Manager
Food and Drug Export Standards
Administration Branch
Department of Health Food Division
No. 161-2, Kunyang St., Biosecurity Services
Taipei, Taiwan Group
R.O.C. Department of
Agriculture, Fisheries
and Forestry
GPO Box 858
Canberra ACT 2601
AUSTRALIA

9. REVIEW, MODIFICATION AND TERMINATION
The provisions of this MOU will be reviewed after every three
(3) years from the date of coming into effect.

This MOU may be amended and supplemented as mutually
consented to in writing by both Participants at any time.

Either Participant may terminate this MOU at any time by
giving six (6) months ’ prior written notice to the other
Participant. This MOU will cease to have effect six (6)
months after receipt thereof by the other Participant.

10. COMING INTO EFFECT
This MOU will come into effect on 1 January 2011.

Signed at Canberra, on this twenty-second day of November, 2010
in two originals in the English language.

For Taipei Economic For Australian
Cultural Office in Australia Commerce Industry
Office in Taiwan
Dr Gary Song-Huann Lin Ms Alice Cawte
Representative, TECO Representative, ACIO