Chapter 4 Agricultural Transportation and Distribution, Prices and Trade
Article 44
In maintaining the balance between agricultural production and distribution as well as reasonable prices of agricultural products, the competent authorities may organize domestic and international promotion activities or designate agricultural products to be produced and purchased with guaranteed prices by contract as concluded between parties of supply and demand.
Article 45
In response to prices fluctuations of domestic and international agricultural products and in order to stabilize the production and distribution of agricultural products, the government shall designate important agricultural products for the establishment of a stabilization fund either by the government or private sectors. The rules and regulations for the establishment, custody and utilization of the said fund shall be formulated by the central competent authority in concert with other authorities concerned.
Article 46
Joint supply and distribution, transportation and distribution, direct supply for factories or exports by farmers or farmers' organizations shall be deemed the first transaction on the wholesale market and shall be entitled to the exemption of stamp duties and business taxes pursuant to the applicable tax laws.
Article 47
Farmers shall be exempted from stamp duties and business taxes for selling self-produced agricultural products.
Article 47-1
Farms and agricultural cooperatives legally registered with the competent authority by farmers shall be exempted from profit-seeking enterprise income tax for selling self-produced primary agricultural products.
The primary agricultural products of the preceding paragraph shall be prescribed by the central competent authority in concert with the Ministry of Finance.
The regulations with respect to qualifications, conditions, contents, procedures, documents to be presented, and other related matters of the registrations of farms and agricultural cooperatives in the first paragraph shall be prescribed by the central competent authority.
The implementation period of profit-seeking enterprise income tax exemption in the first paragraph shall be within 5 years from the amendment on November 11, 2016.
The Executive Yuan may, in 6 months before the exemption period expired, decide to extend or terminate the exemption period based on actual situation.
Article 48
The central competent authority may, in concert with other authorities concerned, implement planned production and distribution of agricultural products or processed agricultural products of all kinds respectively, and shall coordinate the conflicting interests of each of agricultural industries of production, manufacturing, transportation and distribution.
Article 49
The competent authorities may, or upon the application of farmers' organizations or agricultural product processing industries, divide raw material supply zones into separate areas for raw materials purchase by contract. The said divided raw material supply zones may be changed by the competent authorities in accordance with the actual demand and supply.
Undivided raw material supply zones shall be subject to the allocation of raw materials by the competent authorities in concert with other authorities concerned.
Article 50
The competent authorities shall, in concert with other authorities concerned, assist farmers or farmers’ organizations in implementing the alignment of production, manufacture, storage and distribution, and shall encourage the establishment of factories on the industrial land of farming villages or within industrial zones to facilitate farmers’ employment and raw material supply.
Article 51
With respect to export of agricultural products and processed agricultural products, a convention can be covenanted to maintain methodical order of export.
The central competent authority shall designate agricultural products for farmers’ organizations or state-owned organizations to take charge of export or unified supply of the said products.
In respect of any raw and packaging materials required for processing agricultural products for export, and for materials imported to pack previously stated products, the tariff duties and commodity taxes that must be levied may be refunded by applying to the regulations of “the Customs Law and Statute Commodity Tax Act” after the end items are exported.
Article 52
The competent authorities of trade shall seek the central competent authority’s consent prior to granting import approval to agricultural products subject to import restrictions.
The competent authority of finance, in concert with the central competent authority first, shall then promulgate the type, quantity, allocation methods and allocation periods of quota, before implementing tariffs and quota on agricultural products.
In the event that the importation of agricultural products or processed agricultural products has caused or is likely to cause damage to domestic agriculture, the central competent authority shall meet with related central authorities concerned to formulate necessary measures, to establish a relief fund in the amount of NT$100 billion, and to adjust industrial structures or adopt safeguard measures, or to provide subsidization or relief measures for those deemed damaged or likely to be damaged sectors. The said relief measures for agricultural products damaged from importation as well as regulations with respect to the revenues and expenditures, the custody and the utilization of the said relief fund for agricultural products damaged from importation shall be formulated by the Executive Yuan.
The source of the aforementioned fund as stated in the last paragraph may, in addition to the government allocated budget to make up the deficiency in three years, include the surplus from selling agricultural products or processed agricultural products that are subject to restricted-importation measures and tariff or quota as approved by the government, as well as the income from selling the right to import of the said.
Article 53
In maintaining the order of production and distribution and ensuring fair trade of imported agricultural products, the central competent authority may, in concert with the competent authorities of finance and trade, adopt tariff-quota measures, safeguard and other special measures in accordance with applicable regime; or shall designate an agency responsible for importation matters, if necessary.
In the event that the exporting country of agricultural trade designates an agency handling export matters of a certain agricultural product to Taiwan, the central competent authority may, in concert with the competent authorities of trade, designate or establish a counterpart agency to handle the importation of the agricultural products of the exporting country.