This Act is enacted to promote the sound administration of tobacco and alcohol business and products.

The competent authority under this Act shall be the Ministry of Finance at the level of the central government, the municipal government at the level of the special municipality, and the county (or county-level city) government at the level of the county (or county-level city).

"Tobacco," as used in this Act, means products entirely or partially made of tobacco plants or other substitutes as ingredients, in a form suitable for smoking, chewing, sucking, snuffing, or other method of consumption.
"Tobacco plants," as referred to in the preceding paragraph, means plants of the Nicotiana of the Solanaceae, and including their leaves, stubs, seedlings, seeds, stems, scraps, etc. or their products, which are not ready for smoking, chewing, sucking, snuffing, or other method of consumption.

"Alcohol" as referred to in this Act shall mean beverages having an alcohol content by volume of more than 0.5 percent, and undenatured ethyl alcohol and other ethyl products that can be used for the production or preparation of the above-mentioned beverages. Alcohol which is regarded as medicine in accordance with the laws or regulations of the central health authority shall be exempt from administration as "alcohol" under this Act.
The term "alcohol content," as used in this Act, means the percentage of ethyl alcohol contained in the entire volume (of a specific beverage) at a temperature of 20 degrees as measured with a Celsius thermometer.
The term "undenatured ethyl alcohol," as used in this Act, means ethyl alcohol with an alcohol content by volume in excess of 90%, without adding therein any denaturant.
Undenatured ethyl alcohol may be imported only for industrial, pharmaceutical, medical, military, testing, experimental research, energy, alcohol production, or other uses which have been publicly announced by the competent authority.
Production or importation of undenatured ethyl alcohol for use in alcohol production is restricted to that which meets national standards for edible ethyl alcohol.
Regulations governing the registration for sale, documents evidencing purpose of purchase, denaturing, denaturing additives, reporting of inventory volumes of alcohol imported for sale, locations of storage sites, and other matters related to the production, import, and sale of undenatured ethyl alcohol will be prescribed by the central competent authority.

"Tobacco or alcohol business," as used in this Act, means any of the following three businesses:
1. Tobacco or alcohol producers: business operators engaging in the manufacturing of tobacco and/or alcohol products.
2. Tobacco or alcohol importers: business operators engaging in the importation of tobacco and/or alcohol products.
3. Tobacco or alcohol sellers: business operators engaging in the wholesale or retail of tobacco and/or alcohol products.
"Production," as used in this Act, includes manufacturing, repackaging, and related activities.

"Illegal tobacco" and "illegal alcohol" as used in this Act refer to any of the following circumstances:
1. Tobacco or alcohol produced without a license permit obtained pursuant to this Act.
2. Tobacco or alcohol imported without a license permit obtained pursuant to this Act.
3. Tobacco or alcohol produced by an alcohol or tobacco producer at a location other than the location of the factory listed in its license permit.
4. Tobacco or alcohol imported with a license permit obtained pursuant to this Act but not declared to customs, or for which declaration has been evaded, or which has been underreported by more than a specific amount.
5. Tobacco or alcohol transported by an R.O.C. fishing vessel that is not for personal use on that ship or is in excess of a specific amount.
The specific amounts under subparagraphs 4 and 5 above will be publicly announced by the central competent authority.
The tobacco or alcohol of Paragraph 1, Subparagraph 1 above does not include tobacco or alcohol for which there is a record of use in research or trial production, and which has not been commercially packaged for sale as a tobacco or alcohol product.

"Disqualified tobacco" and "disqualified alcohol" as used in this Act refer to one of the following circumstances:
1. Tobacco whose nicotine or tar content exceeds the limits of the Tobacco Hazards Prevention Act.
2. Alcohol produced with a type of alcohol other than edible ethyl alcohol that complies with national standards.
3. Alcohol that does not comply with hygiene standards.

"Responsible person," as used in this Act, means a person defined by the Company Act, the Business Registration Act, or other laws or relevant organizational charters as the person who is to assume responsibility.