The Administrative Commission of the Free Trade Agreement
between the Republic of China and the Republic of Panama, in the
spirit of the objectives of the Agreement, to encourage
expansion and diversification of trade between the Parties, and
to create effective procedures for the implementation and
application of this Agreement, in accordance with the mandate
granted in paragraph 2 (a), (b), and (c) and paragraph 3 (d) of
Article 18.01 of the aforementioned Agreement,

HAS DECIDED TO

Amend paragraph 6 “ Administration of Quota ” of Annex 3.04 “
Tariff Reduction Schedule of the Republic of China ”, which
shall read as follows:

Upon the entry into force of the Agreement until December 31 of
the same calendar year, the proportion of the quota quantity
will be set according to the number of remaining implementation
months of that year divided by twelve (12).

Within thirty (30) calendar days of the entry into force of this
Agreement, the Republic of Panama shall decide and notify the
ROC which Party is to administer the quota allocation for TRQ
products negotiated under this Agreement.

Panama shall notify the ROC within the first thirty (30)
calendar days of each following quota year of this Agreement
which Party is to administer the quota allocation for the TRQ
products negotiated under this Agreement.

In the event that Panama does not notify the ROC within the
abovementioned period, the same quota administration system
shall continue its operations for that quota year.

In the event that Panama administers the allocation of quota,
the ROC shall only apply the in-quota tariff rates it has
committed under the WTO for those products. It is understood
that the ROC shall not apply any other duties, taxes or charges
to the TRQ products, with the exception of Harbor Construction
Service Dues,

Value-added Taxes and Trade Promotion Fees, which the ROC
applies to all imports. In the event that Panama requests the
ROC to administer the quota, the ROC shall not apply in-quota
tariffs or any other duties, taxes or charges, except for Harbor
Construction Service Dues, Value-added Taxes, Trade Promotion
Fees, and rent for import rights for the TRQ products. In this
case, the ROC shall allocate a quota on pineapple twice a year
and on all other products quarterly. In the event that a quota
is not fully allocated, the unallocated portion of the quota
will be added to the next allocation term of the same quota
year.

Imports exceeding the TRQ amount specified under the Agreement
shall be subject to their respective MFN out-quota rates.

Import licenses issued for the TRQ products can be used at any
time during the year, with the exception of pineapple for which
the importation periods will be from January 1 to March 31 and
from August 1 to December 31 of the same year.

However, the allocation of sugar quota is administered by the
Republic of Panama, and the Republic of China shall implement a
duty-free (0%) quota for sugar originating from the Republic of
Panama. For the sugar included in the duty-free (0%) quota, the
Republic of China will require the Certificate of Origin and
Tariff Quota Certificate (TQC) issued by the Republic of Panama.
It is understood that the ROC shall not apply any other duties,
taxes or charges to the sugar quota, with the exception of
Harbor Construction Service Dues, Value-added Taxes and Trade
Promotion Fees, which the ROC applies to all imports.

DONE in duplicate in the Chinese, Spanish and English languages,
all versions being equally authentic, in the event of any
discrepancy in the interpretation of this Decision, the English
version shall prevail.

For the Government of For the Government of
the Republic of China the Republic of
Yen-Shiang Shih Panama
Minister of Economic Roberto C. Henriquez
Affairs Minister of Commerce
Date: 6 (Day)/ 5 and Industry
(Month)/ 2011 Date: 17 (Day)/ 5
Place: Taipei City (Month)/ 2011
Place: Panama City

Witnessed by
Simon S. Y. Ko
Ambassador of ROC in Panama
Date: 17 (Day)/ 5 (Month)/ 2011
Place: Panama City