Regulations for Administrating Ocean Freight Forwarders Article 11

Any ocean freight forwarder shall pay a security bond in the amount of NT$3,000,000 when applying for a license. For each branch office to be established, the security bond in the amount of NT$300,000 shall be deposited additionally.An ocean freight forwarder which has insured its liability for its freight forwarding operations, or when entrusted by a foreign ocean freight forwarder to carry out the freight forwarding operations and the foreign ocean freight forwarder has also arranged liability insurance, may apply to the shipping administration for approval to reduce the security bond as set forth in the preceding paragraph to NT$600,000 and to NT$60,000 for each of its branch offices, by furnishing a copy of the insurance policy. The liability insurance shall be an insured amount not less than NT$2,000,000 per accident, and the aggregate of claims within an insurance period shall be no less than NT$5,000,000.Where a company has engaged in ocean freight forwarding for more than 3 years, has never been involved in any dispute over carriage in the most recent 3 years, and is covered by freight forwarding liability insurance, it may apply for a refund of the security bond referred to in the preceding paragraph, without interest. The liability insurance shall be an insured amount not less than NT$5,000,000 per accident, and the aggregate of claims within an insurance period shall be no less than NT$10,000,000.To take out an ocean freight forwarding liability insurance, a company shall have a coverage period of more than 1 year and may not suspend the insurance within the operation period. The company shall renew the insurance prior to expiration of the insurance policy, and submit the new policy to the shipping administration for filing and inspection.