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Chapter Law Content

Title: Highway Act CH
Category: Ministry of Transportation and Communications(交通部)
Chapter 3. Highway Transportation
Article 34
Highway automobile transportations are divided into two kinds: private and commercial. Private automobiles transportation can drive everywhere in the ROC territories; commercial automobiles shall operate under the specifications as follows:
(1) "Highway Automobile Transportation Enterprise": an enterprise which carries passengers within designated route(s) by bus.
(2) "Metropolitan Automobile Transportation Enterprise": an enterprise which carries passengers within designated area(s) by bus.
(3) "Tourist Bus Transportation Enterprise": an enterprise which uses buses waiting for hire and then taking passengers to anywhere.
(4) "Taxicab Transportation Business": includes businesses or individuals using sedans for hire with a driver, used by a single passenger or a small group of passengers within designated area(s).
(5) "Car Rental Business": a company that rents passenger cars to others.
(6) "Pickup Truck Rental Business": a company that rents pickup trucks to others.
(7) "Automobile Cargo Transportation Business": a business which provides freight delivery service with trucks.
(8) "Automobile Cargo Transportation within Designated Route(s) Enterprise": an enterprise which provides delivery services with trucks in designated route(s).
(9) "Container Truck Transportation Enterprise": an enterprise which transports containers with container trucks in designated areas.
The aforementioned operation routes or areas of commercial automobiles are subject to modification by highway authorities if necessary.
Article 34-1
After being ratified by the highway authorities, transportation enterprises are allowed to provide freight services for remote areas.
The applicable transportation enterprises, management regulations, category details, weight and volume, fee-charging standards referred to in the preceding paragraph shall be determined by the MOTC.
Article 35
Non-citizens or unincorporated enterprises of the Republic of China are banned from investing in commercial automobile businesses within the ROC boundaries; however, those who are approved by the MOTC may apply to invest in the following businesses: car rental, pickup truck rental, automobile cargo transportation, automobile cargo transportation within designated route(s), and container truck transportation.
Article 36
The operation of a commercial automobile business should be private except routes concerning remote regions and national defense, which shall be operated by the central or local governments. However, where the private institutions or enterprises cannot afford these routes, the government may take over their operation.
Article 37
Applications for commercial automobile should adhere to the following:
(1) Applications for operation of highway automobile transportation enterprise, tourist bus transportation enterprise, car rental business, pickup truck rental business, automobile cargo transportation business, automobile cargo transportation route within designated routes, or container truck transportation enterprise shall apply to the central highway authority.
(2)Metropolitan automobile transportation enterprise:
(a) Those belonging to municipalities should apply to the municipal highway authorities.
(b) Those belonging to county/city should apply to the corresponding county/city highway authority.
(3) Those who want to apply for a license of the taxicab transportation business shall apply to the special municipal city highway authority if the main office is located in the municipality; otherwise it shall apply to the central authorities.
For bus transportation providers operating routes which pass through provincial, county, and city highways under paragraph 1, subsections 2 of this article, the highway authority processing the application should obtain the approval of the highway authorities of neighboring municipalities ,counties ,cities. Those which do not approve should report to the central highway authorities for ratification.
Article 38
Highway authorities shall examine the applications of commercial automobile transportation enterprise applicants in accordance with the following requirements:
(1) It meets the regional transportation needs.
(2) It makes a tangible contribution to public convenience.
(3) It has adequate operating finances.
(4) It has a sufficient number of authorized vehicles, stations and premises with access-free facilities and equipments for passengers with mentally and physically disability.
Detailed regulations under this article are prescribed by the MOTC.
Article 39
The commercial automobile business ratified for preparatory work shall complete all preparatory work within 6 months after the day of approval.
The commercial automobile business should complete incorporation or business registrations under the Act during the preparatory period, and report to the appropriate highway authorities for the ratification and issuance of the commercial automobile business's licenses and the line permit for a highway and metropolitan automobile transportation enterprise before starting business or transportation operations.
If a commercial automobile business fails to complete preparatory work after ratification due to special circumstances, the provider may apply to the corresponding highway authority for an extension not to exceed 6 months. Once overdue, the ratification for preparatory work shall be cancelled. If the applicant applies for a highway or metropolitan automobile transportation enterprise, the application should also promulgate reapplication.
Article 39-1
License plates of taxicabs should be issued according to the regional population and the growth percentage of road surfaces in use.
This article does not apply to the issuance of individual license plates applied by excellent drivers.
Article 40
A commercial automobile business should begin its business within one month after receiving the license; and a highway and metropolitan automobile transportation enterprise should begin its operation within one month after receiving the line permit. Except in the event of natural disasters, emergencies, or other force majeure, which may be reported for sanction to corresponding highway authorities, and promptly begin business or operation after the reasons no longer exist, failure to begin business or operation within the time limit shall cause the automobile transportation provider's business license or operation line permit to be rescinded, and all commercial vehicle license plates to be revoked.
Article 40-1
The vehicle license plate applied by the newly established automobile transportation providers cannot be returned for canceling or transferred less than one year after being issued.
Article 40-2
Automobile transportation providers should use the same type brand new or year newer vehicle to replace the old one after which was canceled in a certain duration. Failure to complete operation within the time limit shall cause the commercial vehicle license plate to be revoked.
The "certain period" of the preceding paragraph, the industry applied for ,and the length of extension shall be determined by the MOTC .
Article 41
A highway route shall be operated by a single enterprise in principle. However, if the vehicles and equipments do not meet the public needs, or if another enterprise must pass through certain sections otherwise cannot complete their operation routes, the highway authorities may ratify 2 or more enterprises to share the same route.
A metropolitan automobile transportation enterprise should be approved in accordance with the percentage of regional population and the vehicles and equipment needed for public transportation. Highway authorities may ratify one or two or more providers according to actual circumstances.
Article 42
The prices for passengers and cargo transport of commercial automobile business shall be set jointly by the trade association of commercial automobile business and related labor union(s) by the "Commercial Automobile Business Price Standard Of Passengers and Cargo," then ratified by corresponding highway authorities, and are not subject to adjustment unless been sanctioned.
The principals of this article are provided by the MOTC.
Article 43
Transportation and miscellaneous fees for passengers and goods transported by commercial automobile business cannot be applied before announcement.
Article 44
The highway authorities may collect highway operation fees on automobile transportation providers, to serve as transportation incentives and subsidies, and to be used for highway safety management and maintenance.
The rate of collected highway operation fees under this article cannot exceed 10% of the transportation fee, and cannot exceed 20% of the transportation fee for freeways. Measures of collection and usage are drafted by the MOTC, and ratified by the Executive Yuan.
Article 45
The highway authorities should consider the needs of passenger and goods transportation, and assist commercial automobile businesses in developing joint transportation or joint operation between highways and railways, water transport, flight, and other highways.
Article 46
Automobile transportation providers should report to highway authorities for sanction before modifying organizations, increasing or decreasing assets, collateralizing property, or declaring suspension or termination of business. Within 2 months after an automobile transportation commercial vehicle causes a traffic accident which results in deaths or serious injuries, the highway authorities may not approve all or in part the vehicles transfer or cancellation after the victims, their spouses, or the relatives submit the prove documents made by the police authorities. The victims, their spouses, or the relatives are permitted to petition for provisional attachment or provisional injunction not subject to the limits.
The definition of relative in the aforementioned paragraph may be the lineal relative by blood or collateral relative by blood within 2nd degree of kinship.
The regulations about the number of non-approval transfer and cancellation of vehicles, the methods of vehicle value estimates and the options of vehicle prohibition change for automobile transportation providers under this article are enacted by the MOTC.
Article 47
The highway authorities may set the following orders to commercial automobile businesses that are considered to impair public interests or traffic safety due to misconduct:
(1) Improvement within a time limit
(2) If demanded improvements are not made within the given time limit or if improvements have been ineffective, partial business may be suspension
(3) For proprietors who fail to improve after more than 1 year of partial suspension, their commercial automobile business license may be revoked under the sanction of the MOTC.
If the commercial automobile business mentioned in the preceding paragraph directs any person that does not have a professional driver's license or is not a qualified driver to work as a driver, highway authorities shall investigate the severity of the situation and choose to proceed with the case under the subparagraph 3 of the preceding paragraph without giving a limited period of time for correction.
Under the first paragraph, when the business is subject to partial suspension or revocation of its business license under this article, highway authorities should take appropriate measures to maintain passenger and goods transportation activities, so that transportation does not become discontinued.
Article 48
When unusual disasters occur, highway authorities may mobilize automobiles, maintenance equipments, and required personnel within the jurisdiction district in order to cope with emergency needs, and the commercial automobile business has no reason to reject such requisition. Proprietors who suffer losses because of such utilization may apply for compensation.
Article 49
A commercial automobile business should transport passengers and goods safely and on time. However, emergency patients, postal packages, perishable goods, or other items with reasonable reasons concerning public welfare, may be given priority to be transported.
Article 50
A commercial automobile business has the right to refuse carrying goods whose nature may cause damage to other people's health or property. If automobile transportation providers experience damages in carrying such goods due to fraudulent reports, the shipper of the goods shall be liable to pay compensation for the damage.
Article 51
Passengers riding without tickets (or permits) or use invalid tickets (or permits) should be required to purchase tickets, and may be charged an additional 50% of the original price unless there is a valid reason. Automobile transportation providers may examine the shipper's goods if the provider has doubt about the name, quality, or number of the reported carried goods. . If the provider believes that carriage has been undercharged, after the examination the shipper may be charged a reimbursement fee no more than 4 times of the original carriage,.
Article 52
If carried goods cannot be delivered due to reasons which are unable to blame on the commercial automobile business, the business provider may hand over the goods to warehouses for safekeeping, and deliver warehouse receipts in place of carried goods, and expenses shall be reimbursed by the shipper or receiver of the goods.
This article also applies to carried goods that have not been drawn after the noticed drawing period.
Article 53
A commercial automobile business should announce notices to make claims for carried goods, safekeeping items, or items left behind of unknown ownership, and may receive ownership of items that have not been claimed by the oblige after 1 year of announcement.
Automobile transportation providers may auction the carried goods, safekeeping items, or items left behind described in this article during the announcement period, if the item may easily decay by nature, is difficult to take care of, or if its value will obviously not compensate the transportation and miscellaneous expenses, and temporarily keep the auctioned income.
Article 54
The following request claims shall become invalid if not exercised within 1 year:
(1) Damage compensations due to loss, damage, or delayed delivery of carried goods.
(2) Deferred payments or refunds of carriages or miscellaneous expenses.
(3) Delivery of carried goods.
(4) Payment of agency receipts.
Extinctive prescriptions of the above subsections are calculated from the following dates:
(1) For damage compensations due to loss, damage, or delayed delivery, since the date of payment.
(2) For deferred payments or refunds of carriages or miscellaneous expenses, since the date on which notes are filled and issued.
(3) For delivery of carried goods, since the expiration date of the delivery period.
(4) For payment of agency receipts, since the date on which the automobile transportation provider's agency payment receipt notice is issued.
Article 55
In addition to operating passenger and goods transportation, automobile transportation providers may be commissioned by individual operators to conduct the following practices:
(1) The application and receiving, renewal, and handing in for cancellation of vehicle registration plates, vehicle inspections, and registration of various changes.
(2) Paying annual registration fee, fuel consumption taxes, and other taxes, fees, and fines.
(3) Automobile liability insurance.
(4) Affairs related to driving accidents.
(5) Applications for car loans and registrations for the secured transaction on movable property.
(6) Other types of business as ratified by highway authorities.
Automobile transportation providers under commission of the aforementioned businesses should sign written contracts with clients, stating clearly the rights, obligations, and liabilities for breach of contract before accepting commission businesses. Contract forms are provided by the Ministry of Transportation and Communications.
Article 56
A taxicab transportation business should be ratified by highway authorities of the current location, under regulations provided by the Ministry of Transportation and Communications.
The rules of application procedures, requirements, obligations, etc. for taxicab transportation business as cooperatives will be enacted by both the MOTC and the Ministry of the Interior (MOI).
For taxicab transportation businesses established as cooperative associations, the regulations which specify establishment procedure, requirements of establishment approval and establishment approval annulment, members' qualifications and conditions, minimum number of members, business scope, management method and business operation shall be enacted by the MOTC and the Ministry of the Interior.
Article 56-1
For safeguarding civil aviation airport traffic order and to ensure passenger traffic safety, before formal operations, any type of transportation vehicle entering into a civil aviation airport shall have certain qualifications and obtain the relevant documents issued by the competent authority of the civil aviation airport.
The MOTC shall enact the regulations of eligibility criteria, application procedures, operational oversight, compliance issues, applicable airports, issuance of documents, the quota of taxicabs, reserving ratio, residence service fees, rewards for outstanding taxicab drivers, operation restrictions and prohibitions of shuttle relatives and all kinds of transportation vehicles into the civil aviation airport, the method of distraining, cancellation of vehicle licenses and stop requisitions for related documents for violators.
Article 57
A trolleybus transportation enterprise may follow articles 35-40, 42, 43, 45-47, and 49-54.
Article 57-1
To maintain traffic safety or business order for a commercial automobile business, highway authorities shall perform audits with police and appropriate authorities for any violation of Articles 47, 77 and 77-3.
Any violations found through the audits performed under the provisions in the preceding paragraph shall be confirmed by evidence data obtained by scientific equipment. The method of defining the evidence data obtained by scientific equipment shall be announced by highway authorities.
When highway authorities dispatch officers to perform roadside inspections, necessary precautions and protective measures shall be taken against any danger to their lives, bodies and health likely incurred due to their position and duty activities. Condolence payments to them shall be equivalent to those made to police officers on duty.