BACKGROUND
This Memorandum of Understanding (MOU) embodies understandings
between the Taipei Economic and Cultural Office (TECO) in
Australia and the Australian Office in Taipei (hereinafter
referred to as the Participants) and sets out a framework
through which the Australian Government Department of
Agriculture and Water Resources, may work with the Food and Drug
Administration (FDA) in the Ministry of Health and Welfare,
Taiwan, in order to facilitate the trade of dairy products
between Taiwan and Australia through the reduction or waiver of
food safety inspections. The Department of Agriculture and Water
Resources and FDA are collectively referred to as the Competent
Authorities.

Through this MOU, the Participants intend to:
‧ensure that dairy products traded between Taiwan and
Australia are safe, wholesome and meet relevant laws,
regulations and requirements established by Taiwan and
Australia (hereinafter referred to as Requirements); and
‧recognise that Taiwan ’ s export inspection and
certification systems, as applied to dairy products, meet
Australia ’ s Requirements subject to successful completion
of an assessment of Taiwan ’ s food certification and
inspection system; and where possible under the Imported Food
Control Act 1992, reduce the frequency of the import food
safety inspection in the event that the export of dairy
products from Taiwan to Australia is accompanied by export
certification which is issued by the FDA (hereinafter referred
to as the Certificate); and
‧recognise that Australia’s export inspection and
certification systems, as applied to dairy products, meet
Taiwan ’ s Requirements; and reduce the frequency of the
import food safety inspection in the event that the export of
dairy products from Australia to Taiwan is accompanied by
export certification which is issued by the Department of
Agriculture and Water Resources (hereinafter referred to as
the Certificate).
‧These intentions embodied in this MOU are set out as follows:

1. SCOPE AND EFFECT OF THIS MEMORANDUM OF UNDERSTANDING
This MOU covers dairy products which are produced and made in
the territories of the Participants and accompanied by a
Certificate. A Certificate will not be issued unless the
dairy products concerned meet the Requirements. Harmonised
System Codes of dairy products that are subject to this MOU
are listed in Annex to this MOU.
2. OPERATION OF THIS MEMORANDUM OF UNDERSTANDING
Nothing in this MOU affects in any way, the rights and
obligations of the Separate Customs Territory of Taiwan,
Penghu, Kinmen and Matsu and Australia under the Marrakesh
Agreement Establishing the World Trade Organization (“ WTO
Agreement ” ).
3. RESPONSIBILITIES OF THE COMPETENT AUTHORITIES
3.1 The Competent Authorities will operate according to their
own export inspection and certification programs covering
the export of dairy products, as described in:

In the case of the FDA, the Act Governing Food Safety and
Sanitation and associated Standards, including the Sanitary
Standard for Milk and Milk Products, Pesticide Residue
Limits in Meat Products and Scope and Application Standards
of Food Additives, that also require that dairy products
exported from Taiwan meet government requirements of an
importing authority, in this case, the Department of
Agriculture and Water Resources, as provided under the
Imported Food Control Act 1992.

In the case of the Department of Agriculture and Water
Resources, the Export Control Act 1982 and associated
Regulations and Orders, including the Export Control (Milk
and Milk Products) Orders 2005 that also require that dairy
products exported from Australia meet government
requirements of an importing authority, in this case, FDA.
The Department of Agriculture and Water Resources will only
certify dairy products made in Australia that comply with
the Export Control Act 1982 and associated Regulations and
Orders, including the Export Control (Milk and Milk
Products) Orders 2005.
3.2 In the operation of the Requirements, the Competent
Authorities will mutually recognise each other as a foreign
importing authority that is capable of providing inspection
and certification of dairy products such that:

The import food safety inspection upon the trade of dairy
products from Australia to Taiwan will be reduced to not
more than 2% of import shipments.

The import food safety inspection upon the trade of dairy
products from Taiwan to Australia will be reduced to a
percentage, in line with the Imported Food Control Act 1992,
after Australia recognises that Taiwan ’ s export
inspection and certification systems as applied to dairy
products, meet Australia ’ s requirements subject to
successful completion of an assessment of Taiwan ’ s food
certification and inspection system.
3.3 Each Competent Authority will immediately notify the other
in writing where a breach of the Requirements is found.
3.4 The Competent Authorities will inform each other in writing
of any proposed variations to the Requirements.
3.5 The Department of Agriculture and Water Resources will
prepare an annual report for the FDA on the compliance with
the Requirements of establishments registered by the
Department of Agriculture and Water Resources to export
dairy products and their products, when these have been
exported to Taiwan the preceding year.
3.6 In the instance that a systems audit is required to initiate
and to continue the waived or reduced frequency of import
food safety inspection, each Participant should cover its
expenses associated with conducting the audit of the other
Participant's systems unless otherwise mutually decided.
4. ASSESSMENT AND VERIFICATION PROVISIONS
4.1 Each Competent Authority will check the validity of
Certificates accompanying shipments of dairy products issued
by the other Competent Authority.
4.2 Each Competent Authority will conduct random verification
sampling of dairy products exported from the territory of
the other Participant under this MOU. The verification
sampling will be conducted at the following rate:
a) For imports of Australian dairy products into Taiwan, at a
rate of no more than 2 percent of shipments arriving.
b) For imports of Taiwanese dairy products into Australia, at
the most favourable rate available under the Imported Food
Control Act 1992.

In the event that a breach of the Requirements is found by
a Competent Authority, the rate thereof may be modified
subject to review and the discretion of the Competent
Authority concerned prior to the expiration of the every
three (3) year period provided in Paragraph 9 of this MOU.
4.3 These assessments will be conducted taking into account the
“ Guidelines on procedures for conducting an assessment
and verification by an importing country of inspection and
certification systems of an exporting country ” contained
in the Annex to the Codex Alimentarius Commission (Codex)
“ Guidelines for the Design, Operation, Assessment and
Accreditation of Food Import and Export Inspection and
Certification Systems ” (CAC/GL 26-1997).
5. TRANSPARENCY, INFORMATION EXCHANGE AND COOPERATION
The Competent Authorities will cooperate and communicate as
appropriate in relation to the operation of this MOU. This
will include, but not be limited to, communication and
cooperation on legislation, policies, procedures and
guidelines concerning enforcement and inspection. Specific
information that will be exchanged to facilitate the
continued operation of this MOU includes:
(a) Descriptions of adverse findings during inspections
conducted by a Competent Authority that may cause product in
trade to fail the Requirements.
(b) Descriptions of adverse findings of random compliance checks
carried out by a Competent Authority and the disposition of
implicated product and inspection rates that may be
applicable to subsequent shipments.
(c) Falsification of Certificates.
(d) Any standard, guideline and their subsequent amendment made
by the Codex where the commitments of the Competent
Authorities under this MOU may be involved.
6. NOTIFICATIONS
The Competent Authorities will utilise the Codex "Guidelines
for the Exchange of Information in Food Control Emergency
Situations" (CAC/GL 19-1995) when there is an identified risk
of serious public health effects related to the trade of
dairy products between Taiwan and Australia.
7. DISPUTE SETTLEMENT
In the event of disagreement between the Participants in
relation to the interpretation or application of this MOU,
the Participants should seek consultations between the
Competent Authorities, without prejudice to the rights and
obligations of the Separate Customs Territory of Taiwan,
Penghu, Kinmen and Matsu and Australia under the WTO
Agreement, or to the Participants' rights of resort to the
dispute settlement mechanisms of other international
organisations or to those that are established under any
other international agreement, or to relevant dispute
settlement mechanisms applicable in the territories of the
Competent Authorities.
8. LIAISON OFFICIALS
Taiwan Australia

Section Chief Assistant Secretary

Food and Drug Administration Export Standards Branch

Ministry of Health and Department of Agriculture and
Welfare Water Resources

No. 161-2, Kunyang St., GPO Box 858 Canberra
Taipei, Taiwan ACT 2601
R.O.C. AUSTRALIA

9. REVIEW, MODIFICATION AND TERMINATION
The provisions of this MOU will be reviewed every three (3)
years from the date of coming into effect.

This MOU may be amended and supplemented as mutually
consented to in writing by both Participants at any time.

Either Participant may terminate this MOU at any time by
giving six (6) months ’ prior written notice to the other
Participant. This MOU will cease to have effect six (6)
months after receipt thereof by the other Participant.

10. COMING INTO EFFECT
This MOU will come into effect on the date of the last
signature, and replace the Memorandum of Understanding
Governing the Waiver of Import Food Safety Inspection of
Dairy Products between Taiwan and Australia between the
Taipei Economic and Cultural Office in Australia and the
Australian Office in Taipei signed on 22 November 2010.

Signed in two originals in the English language.


For Taipei Economic For Australian
and Cultural Office in Office in Taipei
Australia
__________________ __________________
Dr David Lee Ms Catherine Raper
Representative, TECO Representative, AO

Date: 4/29/2016 Date: 6/5/2016
Place: TAIPEI Place: TAIPEI