Enforcement Rules of the Foreign Trade Act Article 12-1

The term “illegal transfer of exports/imports,” as mentioned in subparagraph 2, paragraph 4 of Article 16 of the Act, refers to exported products subject to quota restrictions that are not of Taiwan origin, but exported to countries or areas where import restraints are enforced under quotas set by Taiwan.The term “circumventing inspection,” as mentioned in subparagraph 3, paragraph 4 of Article 16, means that the exporter/importer, as required by the measures stipulated in paragraph 6 of Article 16 of the Act, failed to maintain relevant production materials and documentation or refused either to submit the said materials and documentation or declined to cooperate with the inspection.The term “overseas processing,” as mentioned in subparagraph 6, paragraph 4 of Article 16 of the Act, means that raw materials or semi-finished products that are processed abroad into finished products are subject to quota restrictions, after which these processed products are re-imported into Taiwan for re-export under the quotas set by Taiwan, or the products are exported directly from the overseas processing locations under the quotas set by Taiwan.