This Code was ratified to establish common rules for the organization of central administrative agencies and increase their administrative efficiency.

The Executive Yuan and its subordinate agencies (hereinafter referred to as “agencies”) shall be governed by this Code, with the exceptions of national defense, overseas diplomatic missions, police, prosecutorial, investigative, and coast guard agencies whose organizations are otherwise provided by their respective acts.
The Executive Yuan is defined as the first-level agency, and its subordinate agencies are defined as second-level, third-level or fourth-level agencies according to their hierarchies. The hierarchies of agencies may be determined in accordance with the complexity of agency functions and organization size with superior-subordinate, command and supervisory relations clearly defined, and need not contain each and every level.

The definition of terms used in this Code shall be as follows:
1.“Agency” means an organization established in accordance with organic laws or decrees (hereinafter referred to as “organic laws and regulations”) exercising public authority by making and expressing the will of the country within the scope of its defined functions.
2.“Independent agency” means a commission-type collegial organization that exercises its powers and functions independently without the supervision of other agencies, and operates autonomously unless otherwise stipulated.
3.“Affiliated institution” means an organization subordinate to an agency established in accordance with organic laws and regulations and vested with partial authority and duties to handle functions in line with the purpose of its establishment.
4.“Unit” means an organization established within an agency based on the division of organizational functions.

The organization of the following agencies shall be governed by laws, while the organization of other agencies shall be governed by decrees:
1. First-level, second-level and third-level agencies.
2. Independent agencies.
The establishment, adjustment and dissolution of agencies established by decrees as mentioned above shall be sent to the Legislative Yuan upon promulgation of the decree.