Agricultural Law in Taiwan: Overview | Practical Law

Agricultural Law in Taiwan: Overview | Practical Law

A Q&A guide to agricultural law in Taiwan.

Agricultural Law in Taiwan: Overview

Practical Law Country Q&A 6-606-6505 (Approx. 21 pages)

Agricultural Law in Taiwan: Overview

by Yulan Kuo and Jane Wang, Formosa Transnational Attorneys at Law
Law stated as at 01 Dec 2022Taiwan
A Q&A guide to agricultural law in Taiwan.
The Q&A gives a high level overview of agricultural law, including acquiring agricultural companies and co-operatives, competition law, land ownership and usage rights, pricing and tender processes, tax and financing, crop seed business, importing crop seeds, commercial crop production and distribution, plant variety right protection, GM crops, GM foods, importing animals, gene patents, and product liability.

Agricultural Policy

1. Briefly outline recent agricultural policy and main developments in your jurisdiction.
Taiwan is a member of the World Trade Organization (WTO) and the World Animal Health Organization (Office International des Epizooties) (OIE). Taiwan is not a member of the Food and Agriculture Organization of the United Nations (FAO) or a party to the International Plant Protection Convention 1951 (IPPC).
Taiwan's most recent agricultural policy goals are to:
  • Increase the competitiveness of Taiwan's agriculture through advanced cloud information technology.
  • Develop and produce value-added products.
  • Enhance agricultural product safety.
  • Care for the well-being of farmers.
  • Improve the biotech crop industry.
Family farming is the foundation of Taiwan's agriculture industry. The Taiwan Government provides various advice and subsidies to support family farming. Foreign investors in agriculture must apply for government approval. The government also provides various incentives to foreign investment in agricultural parks, including tax reductions.

Subsidies

2. Is there a system for subsidies or other support for agriculture in your jurisdiction? Briefly outline its main provisions.
The Agricultural Development Act, which is the primary domestic legislation regulating agricultural issues in Taiwan, provides for the following measures to support agriculture:
  • The government must establish an agricultural development fund of TWD150 billion to promote farmers' welfare and agricultural development (Article 54, Agricultural Development Act).
  • The competent authorities must reward environment-friendly activities, such as setting aside agriculture activity or reforesting agricultural lands (Article 55, Agricultural Development Act).
  • The central competent authority must set up an agricultural loan programme for the raising and allocation of funds to agricultural loans, and establish a guidance system for financing loans (Article 56, Agricultural Development Act).
  • The government must establish an agricultural credit guarantee system and provide rewards or subsidies (Article 57, Agricultural Development Act).
  • The commissioned farmers' organisation handling the insurance programme must receive rewards and support from the government (Article 58, Agricultural Development Act).
To comply with the above obligations, Council of Agriculture under the Executive Yuan (COA) and the Agriculture and Food Agency provide subsidies for agriculture activities on a yearly basis.
Taiwan is also a member of the following organisations:
  • WTO.
  • Asia-Pacific Economic Cooperation (APEC).
  • Asia-Pacific Association of Agricultural Research Institutions (APAARI).
  • Afro-Asian Rural Development Organization (AARDO).
  • Asian Productivity Organization (APO).
Taiwan engages actively in facilitating communications and promoting agriculture technology for member countries, and enhancing Taiwan's competitiveness.

Environmental Issues

3. Do environmental issues form part of government support for agriculture in your jurisdiction? If yes, please give brief details.
Environmental issues form part of government support for agriculture in Taiwan.
To ensure the sustainability of agricultural production resources and reduce the impact of imported agricultural products on domestic agriculture, the competent authorities must encourage and reward environment-friendly activities, such as setting aside agricultural activity and reforesting agricultural lands (Article 55, Agricultural Development Act).
Additionally, the COA has adopted the Act for Sponsorship Guidelines of Organic and Eco-friendly Farming on 5 May 2017, which sets up a subsidy programme for agriculture that benefits the environment. The purpose of this Act is to:
  • Encourage more farmers to engage in organic and eco-friendly farming.
  • Increase the quality of the environment.
  • Advance the health and well-being of citizens.
  • Preserve environmental resources.
  • Pursue sustainable development by promoting environmental protection.

Regional Variations

4. Briefly outline how disadvantaged areas such as uplands are treated within agriculture.
Since 2006, Taiwan has started to engage in promoting multiple uses for disadvantaged areas. In recent years, most disadvantaged areas have been used as recreational farms, which:
  • Use rural landscapes, ecosystems, and environmental resources.
  • Integrate agriculture, forestry, fishery and animal husbandry activities.
  • Promote farm villages and the lives of farming families.
Uplands are often used for the cultivation of tea, which is an important agricultural product in Taiwan.
5. Is agriculture governed at national and local level? Briefly outline any regional framework and variations if applicable.
Agriculture is governed both at national and local level in Taiwan. At the national level, the competent authority is the COA. At local level, the competent authorities are city/county and municipal governments.
The COA formulates the Taiwan national agriculture plan, which includes the:
  • Drafting and supervising of agricultural policies and laws (for agriculture, forestry, fisheries, and livestock).
  • Drafting, planning, supervising, controlling, and evaluating of agricultural administration plans, mid-term and long-term development programmes, and important service tasks.
  • Drafting of agricultural land policies and related tasks.
  • Collection and analysis of relevant domestic and foreign agricultural information.
  • Approval and supervision of agricultural development plans.
  • Planning, implementation, co-ordination, and supervision of agricultural information and computerisation policies and related tasks, and planning reviews.
  • Drafting, planning, and supervising of farmer's association assistance, farmers' benefits, and agricultural extension policies, laws, regulations, and other affairs involving farmers' services.
  • Planning, implementation, and co-ordination of international agricultural co-operation policies, laws and regulations, programmes, plans, and other affairs involving international agricultural co-operation and exchanges.
  • Drafting and supervision of agricultural technology policies, laws and regulations, major programmes, administrative plans, and other affairs involving agricultural technology R&D and administration.
  • Drafting and supervision of agricultural irrigation policies, laws, regulations, and other affairs involving agricultural irrigation and agricultural engineering.
The city/county and municipal governments co-ordinate the implementation of the COA's plans.

Agricultural Business Vehicles

6. What business vehicles are typically used in the agriculture sector? Are specific forms such as co-operatives used and are they open to foreign investment?
There are three specific business vehicles regulated for, and used in, the agriculture sector:
  • Farmers' organisations. These are farmers' associations, fishermen's associations, agricultural co-operatives, and irrigation associations that consist of farmers/fishermen. They are governed by the Taiwan Farmers' Association Law, Taiwan Fishermen's Association Law, Taiwan Agricultural Co-operative Law, and the General Provisions on the Organisation of Irrigation Associations.
  • Agricultural corporations. These are companies that engage in agricultural production or agricultural experimentation and research activities.
  • Agricultural research and experiment institutes. These are institutes, schools, or agricultural legal persons that engage in agricultural research and experimentation.
There is no law prohibiting foreign investment in a farmers' organisation, an agricultural research and experiment institute, or an agricultural corporation. However, farmers' organisations and agricultural research and experiment institutes must be set up for non-profit public welfare activities.
7. Is the acquisition of domestic agricultural business vehicles by foreign investors subject to special prior government approval(s)? If yes, set out the approval procedures and authorities involved.
As for foreign investment in other types of companies, foreign investors who want to acquire Taiwan domestic agricultural companies must apply to the Taiwan Investment Commission of the Ministry of Economic Affairs (MOEA) (Investment Commission) for foreign investment approval (Taiwan Act on Investment by Foreign Nationals). The application must be submitted by a local agent who is a natural person residing in Taiwan. A foreign investor must submit a duly completed application form (available for download on the Investment Commission's website) and relevant documents to the Commission.
After the Investment Commission grants approval, the investor must present the approval letter to its bank to process the inward remittance of the funds. After conversion and settlement of the foreign currency funds, the investor must apply to the Investment Commission for verification of its investment amount by submitting a duly completed Application Form for Verification of Investment Amount (available for download on the Commission's website), the original of the Inward Remittance Advice and Exchange Memo, and other relevant documents. After the Investment Commission approves the funds, the investor must apply to the relevant registry agency for:
  • Registration of the company/business or amendment of the existing registration, by presenting the approval letter for investment.
  • Verification of the investment amount.
For the acquisition of domestic agricultural companies, the Investment Commission will comprehensively review the application and seek opinions from the COA in deciding whether to grant approval, as investment in the agriculture and animal husbandry industries (such as seed production) is restricted. The Investment Commission will also consult with other relevant authorities to conduct a national security review, if deemed necessary.
8. Is there a specific competition (anti-trust) law regime for the agriculture sector? Briefly set out the aspects of the competition regime that are most relevant to agriculture (for example, restrictive agreements and practices and merger control).
Taiwan's Fair Trade Act (TFTA) is Taiwan's competition law. The purpose of the TFTA is to maintain the trading order, protect consumer interests, ensure fair competition, and promote economic stability and prosperity. The TFTA applies to agriculture without any exceptions.
In addition, the Agricultural Products Market Transaction Act specifically applies to agriculture. The purpose of this Act is to ensure order in agricultural product marketing, to adjust supply and demand, and to promote transactional justice. Agricultural products markets cannot be monopolised, prices cannot be restricted, and quality and quantities cannot be purposely changed. Additionally, rumours or false information that have an impact on the price of traded agricultural products cannot be disseminated (Article 6, Agricultural Products Market Transaction Act).

Acquiring and Holding Agricultural Land

Ownership

9. Are there restrictions on the acquisition of agricultural land? Consider any restrictions on local and foreign investors, and on legal entities and natural persons.
Lands of the following descriptions cannot be privately owned:
  • Lands lying within certain limits of the seacoast.
  • Lakes of natural formation that are needed for public use and riparian lands lying within certain limits of the shores such lakes.
  • Navigable waterways and riparian lands lying within certain limits of the banks of such waterways.
  • Waterways and lakes within the territorial limits of cities and townships, and riparian lands lying within certain limits of the banks of such waterways and lakes.
  • Public thoroughfares.
  • Lands with mineral springs.
  • Lands where waterfalls pass over.
  • Sources of water for public use.
  • Scenic spots and historic remains.
  • Other lands where private ownership is prohibited by law.
The following types of land cannot be transferred or leased to a foreign party, or be subject to encumbrances in favour of a foreign party:
  • Forest lands.
  • Fisheries.
  • Hunting grounds.
  • Salt fields.
  • Lands with mineral deposits.
  • Sources of water.
  • Lands in fortified and military areas.
  • Lands adjacent to the national borders.
This does not include the acquisition of land through inheritance, although such land must be transferred to Taiwanese nationals within three years after completion of the registration of inheritance. If the land is not duly disposed of within this time limit, the competent municipal or county (city) government must transfer it to the National Property Bureau for public tendering. In certain circumstances, foreign nationals can inherit other types of agricultural land without being required to sell it to Taiwan nationals within three years.
A foreign national who wishes to acquire agricultural land must meet the following requirements:
  • Be a national of a country that has diplomatic relations with Taiwan and allows Taiwan nationals to enjoy the same rights as its nationals under a treaty or the foreign country's domestic legislation (Article 18, Taiwan Land Act).
  • Foreign investment in agricultural industries must comply with the categories and criteria of technical-intensive and capital-intensive agriculture as specified and announced by the COA.
  • The foreign investor can acquire land to improve major infrastructure, the whole economy, and investment in agricultural operations for self-use, investment, and public welfare with the approval of the COA. The area and location of such land is subject to restrictions imposed by the relevant municipal or county (city) governments.
The application procedure for a foreign national to acquire agricultural land is as follows:
  • Stage one: the foreign national must file a land acquisition application along with the required documents with the COA.
  • Stage two: the COA must notify the foreign party of the approval by written confirmation and send a copy of the confirmation to the municipal or county (city) government where the agricultural land is located.
  • Stage three: the foreign party must submit a written request to the relevant municipal or county (city) government for examination and approval.
A foreign party who has leased or purchased agricultural land and has duly registered the lease or purchase will enjoy the rights and be subject to obligations under the relevant Taiwan legislation and regulations.
Private legal entities are prohibited from acquiring arable land, except for farmers' organisations, agricultural corporations, and agricultural experimentation and research institutes, with permission of the COA in compliance with the technology-intensive or capital-intensive standards and categorisations (Article 33, Agricultural Development Act).
Arable land is agricultural or grazing land that is designated as specific agricultural zones, general agricultural zones, hillside conservation zones, or forest zones, and established according to the Taiwan Regional Planning Law under Article 3.11 of the Taiwan Agricultural Development Act.

Land Tenure and Usage Rights

10. Briefly outline the main ways that agricultural land is held. What usage rights are typically granted over agricultural land (for example, leases)? Are there restrictions (such as a maximum length of lease terms)? Consider any restrictions on local and foreign investors, and on legal entities and natural persons.
The main domestic laws regulating the acquisition of usage rights and ownership of agricultural land are the Taiwan Land Act, the Taiwan Agricultural Development Act, and the Taiwan Regional Planning Law.
The government can prohibit the transfer of ownership, the creation of encumbrance over, or the lease of any private land, if such transfer, encumbrance, or lease is considered to be inconsistent with national policies.
There is no maximum term for the lease (or use) of agricultural land. According to the Agricultural Development Act, the duration of lease agreements over arable land (see Question 9) is an issue that is mutually agreed on by lessors and lessees.
Foreign natural persons can acquire agricultural land, but must follow the relevant regulations and procedures outlined in Question 9. In principle, private legal entities are prohibited from acquiring arable land (Agricultural Development Act).
To prevent and control land pollution, special municipality and county/city authorities must jointly survey agricultural actions within designated pollution control areas, in conjunction with the agricultural and health agencies (Soil and Groundwater Pollution Remediation Act). A pollution control area is an area that has been delineated according to the scope of soil or groundwater pollution of a pollution control site or pollution remediation site. When necessary, the government can prohibit the growing of edible crops, the raising of poultry or livestock, or the cultivating or harvesting of marine animals and plants in pollution control areas.

Special Acquisition Procedures

11. Are there any compulsory tendering or prior approval procedures required for a sale of agricultural land? Briefly set out these procedures and any approvals required. Are there mandatory minimum land prices if the government sells agricultural land?
There is no law or regulation imposing a minimum purchase price if the government sells agricultural land. Land prices are determined by the market.
12. In which circumstances can the government authorities expropriate agricultural land?
The government authorities can expropriate private land to establish any of the following public interest undertakings and buildings, to the extent strictly required by such undertakings:
  • National defence undertakings.
  • Communication or transportation undertakings.
  • Public utility enterprises.
  • Water conservancy undertakings.
  • Public health and environmental protection undertakings.
  • Government office buildings.
  • Office buildings of local self-governing bodies and other public buildings.
  • Educational, academic, and cultural undertakings.
  • Social welfare undertakings.
  • State-owned enterprises.
  • Other undertakings for which land can be expropriated according to the law.
(Taiwan Land Expropriation Act.)

Water Controls

13. Is the abstraction of water controlled by licence or quantities? Briefly set out the main provisions, legislation and regulatory authorities.
The abstraction of water is controlled through the grant of water rights in accordance with the Water Act. Water rights are rights to use or make profits from surface or ground waters (Article 15, Water Act).
An application for water right registration must be filed with the municipal or county (city) authorities. An application for registration related to a water source flowing through two or more counties (cities) must be filed with the MOEA (Article 28, Water Act).
In principle, the duration of a water right is three to five years (Article 29, Enforcement Rules for Water Act).
The Water Act does not expressly provide for the quantity of water that can be used by a water right holder, and only states that the use of water is subject to restrictions based on needs. A water right holder must:
  • Install a water meter at the location of water intake.
  • File an annual water consumption record based on monthly water usage and actual volume of use.
The competent government authority can inspect the meter and water consumption from time to time.
The use of surface or ground water for the following purposes does not require water right registration:
  • Domestic use and livestock water consumption.
  • Water consumption under the Indigenous Peoples Basic Law.
  • Use of less than two cubic metres of hot spring water per household per day.
  • Abstraction of water by means of human power, animal power, or other simple means.

Tax

14. Which taxes apply to the sale and transfer of land ownership or usage rights?
The land value increment tax applies to the sale and transfer of land ownership. Land that has been assigned a value is subject to the land value increment tax based on the total amount of land value increment at the time of transfer of the land title (Article 28, Land Tax Act). The following progressive rates apply:
  • If the total amount of land value increment is less than 100% of the original decreed land value or the previous transfer value: 20%.
  • If the total amount of land value increment is more than 100%, but less than 200% of the original decreed land value or the previous transfer value: 30% on the portion in excess of 100%, in addition to the above 20% tax rate.
  • If the total incremental value is more than 200% of the original decreed land value or the previous transfer value: 40% on the portion in excess of 200%, in addition to the above 20% and 30% tax rates.
(Article 33, Land Tax Act.)
The transfer of agricultural land used for agricultural purposes to a natural person may be exempt from land value increment tax (Article 39-2, Land Tax Act; Article 37, Agricultural Development Act).

Taking Security

15. How is security over agricultural land typically created and perfected to raise finance?
Most commercial banks do not consider agricultural land a particularly good security. Most banks are reluctant to provide financing based only on a mortgage/pledge over agricultural land due to the low value of agricultural land and transfer restrictions. To care for farmers and assist with agricultural development, the government has launched various agricultural project loans. Farmers who have borrowing needs can apply to their local credit departments and branches of banks, which have taken over the role of credit departments from farmers' and fishermen's associations. They can also submit applications to the Agricultural Bank of Taiwan. For information regarding agricultural project loans, visit Bureau of Agricultural Finance: Agricultural Project Loans. The Agricultural Bank of Taiwan has agricultural project loan assistants in different regions and can offer local assistance to farmers and fishermen.

Crop Seed Business

16. State the approvals/licences that are required to import new plant species or varieties and crop growing technologies. Briefly outline the approval process, legislation and regulatory authorities.
The Plant Variety and Plant Seed Act is the main law that regulates the crop seed industry in Taiwan. The COA is the competent authority at the central government level. The COA has established a Plant Quarantine Authority to supervise the import of plant and plant products into Taiwan.
To control plant diseases and pests and prevent their spread, the import of plant and propagation materials (seeds and seedlings) is subject to the following requirements:
  • The importer or its agent must apply to the Plant Quarantine Authority for quarantine of regulated articles to be imported or transited before their arrival at the port of entry. The importer or agent must not unwrap or move the plants or plant products before completion of the quarantine inspections.
  • On completion of the quarantine period, the Plant Quarantine Authority will either:
    • issue a certificate of non-compliance and prohibit the import of plants that do not comply with the Plant Variety and Plant Seed Act; or
    • issue a certificate of compliance for plants that comply with the Plant Variety and Plant Seed Act.
  • If any pest is found after quarantine inspection, the Plant Quarantine Authority must notify and request the importer or its agent to disinfect, destroy, or reship the materials together with the packages and containers.
  • Plants or plant products in transit that are suspected of carrying or possibly spreading pests may be subject to appropriate quarantine or other safety measures by the Plant Quarantine Authority.
  • The residues of plants or plant products carried by vehicles, vessels, or aircraft originated in foreign countries must not be unloaded.
(Plant Protection and Quarantine Act.)
The COA updates the List of Approved Imported Plants from time to time (see COA: List of Approved Imported Plants). The plants listed in this document can be imported. For plants that are not listed, the importer must apply for approval and provide the COA with documents and data required for risk assessment.
The COA's website contains information on quarantine requirements, including regulated articles, species of pests, measures in specific counties or districts, and the list of prohibited and restricted species (COA: Laws and Regulations Retrieving System).
Regarding the export of plant and plant products, the Taiwan authorities can provide a quarantine certificate to an exporter if required by the importing country. The Plant Quarantine Authority will issue a phytosanitary certificate on completion of the quarantine inspection.
Taiwan is a member of the WTO, but Taiwan does not have an IPPC co-ordinator. However, according to the COA, Taiwan follows the IPPC standards when issuing regulations relating to plant protection and plant health.
17. Briefly outline any additional approvals/licences that are required for:
  • Setting up R&D centres and test plots for new crops.
  • Crop seed production.
  • Commercial crop production.
  • Distribution of seeds or crops (wholesale, retail and e-commerce).

R&D Centres and Test Plots for New Crops

Like any company or association, R&D centres must apply to the Company Registry for registration as a company or an association. Except for GM plants, the establishment of an R&D centre and use of test plots for crop growing in Taiwan do not require approval or a licence.

Crop Seed Production

Plant seed enterprises are enterprises that engage in the business of breeding, propagation, importation, exportation, and/or sale of plant seeds (Article 3, Plant Variety and Plant Seed Act). To engage in such business, a seed enterprise must obtain approval from the special municipality or county/city competent authority and a plant seed enterprise registration certificate. A plant seed enterprise must be a natural person or a legal person with a fixed place of business. A plant seed enterprise must state its type of business from among the following items when applying for registration:
  • Breeding.
  • Propagation of seeds and nursery stock.
  • Export of seeds and nursery stock.
  • Import of seeds and nursery stock.
  • Sale of seeds and nursery stock.
  • Propagation, import/export, or sale of transgenic plant seed.
There is no minimum capital requirement. A plant seed enterprise engaged in breeding or propagation must possess the equipment required under the Requirements and Facility Standards for the Qualification of Plant Seed Enterprises.

Commercial Crop Production

There is no law specifically restricting commercial crop production in Taiwan and there is no requirement to apply for approval.

Distribution of Seeds or Crops

Only a plant seed enterprise (see above, Crop Seed Production) can import or export plant seeds, their harvested material, and products made directly from their harvested material. Generally, the importation and exportation of plant seeds, their harvested material, and products made directly from their harvested material is permitted. Certain plant seeds may be subject to import or export restrictions or prohibitions under international treaties or trade agreements, to protect plant variety rights, or due to public safety, sanitation, environmental protection, ecological protection, or policy needs. The COA, after consulting with the relevant authorities, publishes regulations on plant seeds that are subject to import/export restrictions or prohibitions.
Without COA approval, the importation or exportation of transgenic plants is prohibited.
Applicable restrictions or prohibitions do not distinguish whether the distribution is through wholesale, retail, or e-commerce.

Plant Variety Rights

18. What are the legal conditions to obtain a plant variety right (PVR) and which legislation applies?
The following requirements must be satisfied to obtain a PVR:
  • Novelty. Before the filing date of the application, no plant seeds and no harvested material of such plant variety must have been sold or promoted inside Taiwan for more than one year or outside Taiwan for more than four years or six years.
  • Distinctness. The plant variety must be distinguishable on the basis of one or more recognisable and articulable characteristics from the most similar plant varieties that have been in general circulation.
  • Uniformity. Except for predictable natural variations, the characteristics of individual plants of the plant variety must exhibit uniformity in comparison with each other.
  • Stability. The main characteristics of the plant variety must remain unchanged after repeated propagation, or after a number of cycles of propagation, through a designated method of propagation.
Taiwan is not accepted as a member of the UN, and therefore unable to sign the International Convention for the Protection of New Varieties of Plants 1961 (UPOV Convention) or its subsequent revisions. Taiwan enacted a system to record species names and species variety rights based on the 1978 Act of the UPOV Convention. To encourage innovation and protect new species of parthenogenesis plants, the COA enacted the Plant Variety and Plant Seed Act based on the 1991 Act of the UPOV Convention (UPOV 1991).
In relation to how the priority right under Article 11 of UPOV 1991 operates in Taiwan, applicants from Taiwan can directly apply for plants right in the US, Japan, Australia and the EU. Further, the EU has agreed in writing that the Community Plant Variety Office (CPVO) will accept applications for PVR protection in all EU member states from a Taiwan natural or legal person. If two or more people have a dispute over who has the right to a particular plant species, a grower in Taiwan can claim the priority right based on the fact that they have already applied for the plant right outside the EU. As a result, Taiwan applicants can enjoy the same rights as nationals of EU member states and other UPOV members in the EU. However, the laws of several countries still provide that the priority right is only available to UPOV member countries (this needs to be further discussed by the countries through bilateral negotiations or at the WTO).
19. How is a PVR obtained in your jurisdiction?
The applicant must:
  • Show that the requirements for protection are present (see Question 18).
  • Submit information such as the scientific name of the plant species.
  • Identify the breeder and applicant.
  • Identify the specification for the PVR.
  • Submit relevant identification documents.
If two or more persons jointly own the right to apply for a PVR, the application must be jointly filed by these persons.
It may take one to three years to obtain a PVR, depending on the variety of the plant. After accepting an application for a PVR, the COA will make public the following information within one month from the day immediately following the application filing date:
  • The serial number and filing date of the application.
  • The applicant's name or title and address.
  • The denomination of the plant variety and the botanical taxon to which the plant variety belongs.
  • Other required matters.
20. How long does PVR protection last? Are there restrictions on the rights of the PVR holder or exemptions, such as farmer's privilege?

Term of Protection

The term of PVR protection depends on the type of plant, as follows:
  • For a tree or a perennial vine plant: protection lasts 25 years from the date of approval and publication of the PVR.
  • For all other plant species: protection lasts 20 years from the date of approval and publication of the PVR.

Extent of Protection

The holder of a PVR has the exclusive right to prevent others from engaging, without the holder's consent, in the following acts with respect to plant seeds covered by the PVR:
  • Production or propagation.
  • Conditioning for the purpose of propagation.
  • Offering for sale.
  • Selling or otherwise marketing.
  • Importing or exporting.
  • Holding for any of the above purposes.
(Article 24, paragraph 1, Plant Variety and Plant Seed Act.)
PVR protection also extends to dependent varieties listed in Article 25 of the Plant Variety and Plant Seed Act, including:
  • A variety essentially derived from a variety protected by the PVR, where such protected variety is not essentially derived from another variety.
  • A variety not clearly distinguishable from a variety protected by the PVR.
  • A variety that requires repeated use of a variety protected by the PVR in order to be produced.
PVR protection does not extend to any of the following acts:
  • Acts by an individual for non-profit purposes.
  • Acts for experimental or research purposes.
  • Acts for the purpose of breeding other varieties, but not including acts for the purpose of breeding dependent varieties.
  • Acts by farmers of keeping, for the farmer's own use, plant seeds of a variety protected by a PVR or of the harvested material obtained from plant seeds of dependent varieties. This rule is only applicable for certain types of plants listed by the COA. Currently, the list includes corn, peanuts, green beans, red beans, and soybeans other than edamame that are to be used as vegetables. Farmers are allowed to share or exchange seeds if this does not involve economic benefit and is only for growing for personal consumption. Under the current laws and regulations, it is unlikely that a breeder of a protected variety of seeds can restrict the farmer's privilege through contract.
  • Acts, at a farmer's request and for the purpose of providing the farmer with propagating material, of engaging in the conditioning and nursing of harvested material obtained from the propagating material of a variety protected by a PVR, or a dependent variety. This rule was drafted to protect the current system of rice production in Taiwan. Rice farmers generally obtain the required seedlings from seedling centres. If the seedling centres transferred the licence fees to the farmers for the rice that it provides, it would raise the cost of rice production and have an impact on rice production in Taiwan.
  • Acts of selling domestically or otherwise circulating any material of a variety protected by a PVR, or its dependent variety, by or with the consent of the holder of the PVR (but not including acts of further propagation of the protected variety).
  • Acts in respect of any material derived from the material referred to above, but not including acts of further propagation of the protected variety.

Restrictions on the Rights of the Breeder

Farmer's Privilege

21. Which legal actions are available to owners of PVR in the event of PVR infringements?
In the event of PVR infringement, a rights holder or its licensee can request:
  • The removal of the infringement and prevention of the risk of infringement.
  • Compensation for damages from an intentional or negligent infringer.
  • The destruction or other necessary measures to dispose of the infringing plants or the materials and tools used in connection with the infringement.
When the breeder's name has been infringed, the breeder can request a display of their name or other necessary methods to restore their name.
The PVR holder or its licensee must bring a claim before the lapse of the statute of limitation. This is two years from when the right holder has learned of the infringement and the identity of the infringer, or ten years from the infringing act, whichever is shorter.
A right holder can apply to the court for a preliminary injunction or emergency order to prevent harm.
There is no infringement when a farmer grows plants protected by a PVR for self-consumption. There is infringement if the farmer sells the harvest or grows seedlings (see Question 20, Extent of Protection).

Genetically Modified (GM) Crops

22. Set out the legislation and regulatory authorities in relation to genetically modified (GM) crops. Has your jurisdiction ratified the Cartagena Protocol on Biosafety 2002? What is your government's policy in relation to GM crops?
Taiwan has not ratified the Cartagena Protocol on Biosafety 2002. Although there is no special law on genetically modified organisms (GMOs) in Taiwan, the Taiwan Government has enacted laws and regulations that apply to the different stages of the use of GMOs.

R&D and Experiments of GMOs (Upstream Stage)

The Ministry of Science and Technology (MOST) is the competent authority for GMO research, development, and experimentation. A laboratory that researches, develops, or engages in GMO experiments must comply with the Gene Reconstruction Experiment Principle enacted by the MOST. The Principle regulates:
  • Biosafety and ethics management of the laboratory phase of gene-modified engineering experiments sponsored by the government.
  • All GMO experiments for research and development.

Field Testing of GMOs (Midstream Stage)

The competent authority for field tests of GMOs is the COA. To regulate the impact of GM crops on the ecology and environment, the COA has issued administrative regulations, including:
  • Administrative Regulations for the Field Testing of Transgenic Plants.
  • Administrative Regulations for the Field Testing of Transgenic Aquatic Organisms.
  • Administrative Regulations for the Pastoral Raising and Breeding of Transgenic Aquatic Organisms.
  • Regulations for Approving Import/Export of Transgenic Plants.
The planting of GM crops must comply with the Plant Variety and Plant Seed Act and related administrative regulations enacted by the COA. Before selling GMOs in the market, GMOs must be evaluated through biosafety assessment, labelled, and monitored by the COA to ensure the safety of the ecology, environment, and consumers. For example, under the Act Governing Food Safety and Sanitation, food that have ingredients or components made of/from GMOs must be labelled expressly and monitored by the COA.

Food Made of/from GMOs (Downstream Stage)

The competent authority for foods made of/from GMOs (GM foods) is the Ministry of Health and Welfare (MOHW). The primary legislation is the Act Governing Food Safety and Sanitation. The MOHW issued administrative regulations to regulate GM foods, including requirements relating to the inspection, registration, labelling, import, and management of GM foods. See also Question 23.
23. Set out the permit/licensing requirements and prohibitions in relation to GM related activity and the key legislation and regulatory authorities.

Safety Evaluations

The use of GM crops in food products requires a safety assessment report of genetically modified food (GMF). The report must indicate the following:
  • The character of the GM crops.
  • Compositional analyses of key components.
  • Initial assessment of possible toxicity and/or allergic nature of newly expressed substances in recombinant-DNA plants.
  • Evaluation of metabolites.
  • Nutritional modification and food processing.
  • Antibiotic resistance marker genes.
  • Other considerations.
According to the Act Governing Food Safety and Sanitation, a health risk assessment is required if the GMF is used as a food raw material, even if there is no related regulation or guidance published. The competent authority is the Taiwan Food and Drug Administration (TFDA) under the MOHW.
If the GM crops are transgenic plants used for breeding, cultivation, lab experiments, or research and development, these transgenic plants must undergo field testing before they can be imported or bred domestically. The safety assessment report must indicate the following:
  • Background of research on the transgenic plant.
  • Botanic characters of the receptor plant.
  • Characters, gene reading frame, gene construct map, and stability of the transgenic gene.
  • Breeding method.
  • Difference between the transgenic plant and the receptor plant.
  • Cultivation management of the transgenic plant.
The main purpose of the regulations on transgenic plants is to reduce or avoid any unfavourable impact on the ecology in Taiwan. The competent authority is the COA.

Licensing and Approval Requirements

GM crops used in food designated by the TFDA in a public notice cannot be manufactured, processed, prepared, repackaged, imported, or exported without a product registration filed with, and a licence obtained from, the TFDA (Article 21, Act Governing Food Safety Sanitation). The TFDA has further published a Guidance for the Safety Assessment of Genetically Modified Foods, under which the term "GMO" refers to organisms whose genomes have been altered or modified by gene modification techniques rather than natural breeding or natural recombination.
The import and export of transgenic plants used for breeding, cultivation, lab experiments, or research and development require approval from the COA (Article 52, The Plant Variety and Plant Seed Act; Regulations for Approving Import/Export of Transgenic Plant). The current definition of "transgenic plant" includes all plants and seeds that are directly and indirectly derived from transgenic ancestors.

Enforcement

Under the relevant laws and regulations, the TFDA and the municipal governments can require food businesses or their representatives to provide relevant records, documents, and electronic files or databases of imported products when necessary (Article 32, Act Governing Food Safety and Sanitation). Food businesses or their representatives are prohibited from evading, impeding, or otherwise refusing such requests.
The TFDA and municipal governments can enter the place of manufacturing, processing, preparation, packaging, transportation, storage, and sales, to perform on-site examinations and to conduct sampling and testing (Article 41, Act Governing Food Safety and Sanitation; The Food Inspection Measure Regulation). When conducting an examination or sampling and testing, the TFDA can require food businesses of the place where the acts take place to provide the source and amount of raw materials or products, information on processing, quality assurance, sales counterparts, sales amounts, and other supporting information, evidence or records. This information can be reviewed, retained, and copied. If food products, food additives, food utensils, food containers or packaging, or food cleansers are found not to comply with the Act Governing Food Safety and Sanitation, they must be sealed.
Products that do not conform to the standards prescribed by the TFDA will be confiscated and destroyed (Article 52, Act Governing Food Safety and Sanitation). In such a case, the manufacturer, seller, or importer must immediately announce the termination of use or consumption of the goods and recall and destroy the goods. Where necessary, the TFDA and the municipal governments can carry out the recall and destruction with necessary charges. The TFDA and municipal governments must officially publish the company's name, address, name of the responsible person, and product name, as well as the circumstances of the violations of any food business that manufactures, processes, prepares, packages, transports, sells, imports, or exports these goods. In addition, the TFDA will restrict the importation of these goods.
Customs can also conduct examinations or exempt products from examination, either on authorisation from the Customs Administration of the Ministry of Finance or on application (Article 23, Customs Act; Article 9, Customs Anti-smuggling Act). Customs can take samples where necessary. The quantity of samples taken is limited to that which is technically required for examination. In the event of a violation of customs regulations, Customs will seize the cargoes (Article 17, paragraph 1, Customs Anti-smuggling Act).
In the event of a violation of food safety regulations, an enterprise can be liable to an administrative fine of between NTD30,000 and NTD3 million. In cases of serious violation, the business may be ordered to terminate or suspend operations for a certain period of a time. The TFDA or the municipal governments can also revoke all or part of the items listed in the company registration, the company's business registration, factory registration, or registration as a food business. When registrations are revoked, a new application for registration is not permitted for one year.
The container or external packaging of food products must conspicuously indicate in Chinese and with common symbols certain matters, such as the name of the ingredients (Articles 22, 24, Act Governing Food Safety and Sanitation). In the case of a mixture of two or more ingredients, each of the ingredients must be indicated separately from the highest percentage of the main ingredient to the lowest, and gene-modified raw materials. Sanctions for non-compliance with labelling requirements include confiscation and destruction of the products.
Where GM crops are manufactured, processed, prepared, repackaged, imported, or exported without a licence (see above, Licensing and Approval Requirements), an enterprise can be liable to an administrative fine of between NTD30,000 and NTD3 million (Article 47, Act Governing Food Safety and Sanitation). In cases of serious violation, the business may be ordered to terminate or suspend its operations for a certain period of a time. The TFDA can also revoke all or part of the items listed in the company registration, the company's business registration, factory registration, or registration as a food business. When registrations are revoked, a new application for registration is not permitted for one year.
The import or export of transgenic plants in violation of the mandatory approval requirements is punished by an administrative fine of between NTD1 million and NTD5 million. The plants in question can also be confiscated or destroyed.

Animal and Animal Welfare Issues

Importing Animals

24. Briefly outline the import/export control measures for animals and related genetic resources.
The COA is responsible for enacting and supervising import/export control measures for animals and related genetic resources. The relevant governing law and regulations are the:
  • Statute for the Prevention and Control of Infectious Animal Diseases.
  • Quarantine Requirements for the Importation of Animals and Animal Products.
According to Taiwan's OIE delegate, the Quarantine Requirements were amended in 2019 to comply with the provisions on bovine spongiform encephalopathy (BSE) of the OIE Terrestrial Animal Health Code. In the near future, the COA may also amend the Quarantine Requirements with regard to boar semen, frozen uneviscerated fish, and beef imported from Paraguay.
For the list of prohibited or restricted species, see the website of the Bureau of Animal and Plant Health Inspection and Quarantine (Bureau of Animal and Plant Health Inspection and Quarantine).

Animal Welfare

25. Briefly outline the regulatory regime for animal welfare.
In the past, the Taiwan Government did not attach particular importance to animal welfare. The first Taiwanese non-governmental organisation (NGO) for animal welfare was founded in 1992, and other similar groups were established thereafter. Their work led to the adoption in 1998 of Taiwan's first legislation on animal welfare, the Animal Protection Act. NGOs and the government currently pursue several policies, including in relation to:
  • Animal welfare education.
  • Economic and experimental animal protection.
  • Building wild animal conservation areas.
26. Does the law of your jurisdiction allow for patentability of livestock genes on the grounds of isolating and purifying them? Is there legal protection for animal breeding know-how and a resulting animal nucleus?
Although an invention patent will not be granted in respect of animals, plants, and essential biological processes for the production of animals or plants (except for processes for producing microorganisms), isolated and purified genes can be patented if the genes meet the requirements of novelty, non-obviousness, industrial application, and enablement.
A patent can be granted for animal breeding if it is not for the natural biological process. In addition, the Trade Secrets Act may apply if animal breeding know-how meets the requirements of a trade secret. The term "trade secret" means any method, technique, process, formula, programme, design, or other information that may be used in the course of production, sales, or operations, and which also meets the following requirements:
  • It is not known to persons generally involved in information of this type.
  • It has economic value, actual or potential, due to its secretive nature.
  • Its owner has taken reasonable measures to maintain its secrecy.
Additionally, Taiwan has adopted the following special laws and regulations to protect the raising and/or breeding of protected or dangerous wildlife:
  • Wildlife Conservation Act.
  • Regulations Governing Raising and Breeding of Protected or Dangerous Wildlife.
There is no legislation that specifically protects an animal nucleus resulting from breeding.
27. Are there legal or practical restrictions on the introduction of new breeds/species, the breeding of certain animal species or certain breeding practices?
There are no legal or practical restrictions on the introduction of new breeds/species, the breeding of certain animal species, or certain breeding practices.
Where possible, live animals cannot be used in scientific experiments (Articles 15 to 18, Animal Protection Act). The use of live animals in scientific experiments must be:
  • Limited to a minimal number of animals.
  • Carried out in a way that inflicts the least pain or harm to the animals.
Institutions that conduct scientific experiments on animals must establish a care and use committee or panel to supervise scientific experiments conducted on laboratory animals. The relevant authority (COA or municipal governments) must, on a regular basis, select and hire scholars, experts, and representatives from relevant institutions and registered civil animal protection organisations to supervise and manage scientific experiments conducted on animals. There must be at least one veterinarian and one representative from a civil animal protection organisation selected for such supervision. The conditions of laboratory animals are examined immediately after scientific experiments are concluded. If the quality of life of the animals is affected by the partial loss of their body organs, or if they suffer chronic pain, the animals are euthanised immediately in a humane manner. Unless otherwise required for further scientific experiments, laboratory animals must be given sufficient time after such experiments for full recovery of their physiological functions before they are used again in other experiments.
Breeders must carry out pedigree registrations for their male breeding stock and for more than half of their female breeding stock (Article 14, Animal Industry Act). Breeders who have already conducted pedigree registrations on selling the breeding stock and fowl must attach the pedigree registration papers issued by the original pedigree registration agency. Breeding flocks or stock that have been entered on the pedigree register are subject to periodic follow-up and inspection by the competent authority. Registration holders who fail these inspections will have their registrations revoked. Pedigree registration is a regulatory requirement, but does not grant any rights in Taiwan. A registered breeder cannot claim infringement against any third party who, through illegal means, obtains the genetic material and uses it to breed other animals.

Agricultural Safety and Product Liability

Standards

28. Summarise the system of food safety standard setting, the main regulator(s) and regulations. If industry input on the standards is possible, indicate how this is conducted.
The central government agency in charge of establishing food safety and standards is the TFDA, which operates under the MOHW. The primary responsibilities of the food safety division are to:
  • Draft and supervise food safety and sanitation policies and regulations.
  • Manage food labelling and food nutrient analyses.
  • Register and certify food products, food utensils, food containers, food packaging, and food additives; review alterations, transfers, and extensions of certificates; issue, renew, and reissue certificates.
  • Plan, manage and promote the policies on imported food and related products.
  • Plan food manufacturing process management.
  • Draft guidance on safety and sanitation policies and regulations for food businesses.
  • Handle other matters related to food management.
The main law regarding food safety in Taiwan is the Act Governing Food Safety and Sanitation, which regulates risk management for food safety, sanitary controls for food businesses, food sanitation controls, food labelling and advertisements, food import controls, food testing, and food examination and control. This Act authorises the TFDA to issue regulations and standards related to food safety matters.
Taiwan is not a member country of the Codex Alimentarius, but follows the rules of the Codex Alimentarius Commission. However, the dietary culture and habits, use of pesticides, and pollution background in Taiwan differ from that in other countries. Different standards are established by the TFDA based on the principle of risk analysis and scientific evidence. These standards include:
  • Standards for pesticide residue.
  • Standards for animal drug residue.
  • Standards for using food additives.
The standards in Taiwan may be more strict or lenient than the international standards in certain cases.

Liability

29. Set out the legal requirements to establish the liability of producers and suppliers for defective or contaminated food ingredients that cause damage, in relation to tort and product liability.
Article 191-1 of the Civil Code and Articles 7, 8, and 9 of the Consumer Protection Act provide for product liability based on tort for producers, manufacturers, distributors, suppliers, and importers. The requirements to establish are as follows:
  • The goods or services lack reasonably expected safety.
  • The goods or services cause injury to consumers or third parties.
  • Causation exists.
  • There is illegality.
  • There is culpability.
30. Which defences are available to the producer and/or supplier to avoid liability? For instance, is market-entry prior government approval a legal defence against product liability and under which conditions?
A producer, service supplier, and importer may be exempt from liability if they can provide evidence that their goods or services complied with the contemporary technical and professional standards of reasonable safety expectations when they entered the market or when they were provided. Further, if business operators can prove that they were not negligent, the court can reduce the amount of damages. In other words, the liability of producers, service suppliers, and importers is a no-fault (strict) liability.
Business operators engaging in the distribution of goods and provision of services are jointly and severally liable for damages with those who design, produce or manufacture the goods or services with respect to injury caused by such goods or services. Joint liability does not apply if they have exercised due care to prevent injury, or if the injury would have still occurred had they exercised due care (Article 8, Consumer Protection Act). In other words, the liability of the distributor and retailer is "negligent liability". Although a consumer can claim directly from the retailer in cases where the fault lies clearly with the producer, the retailer will not be liable if it can prove that it was not negligent. Negligence refers to a failure to exercise the due care of a good administrator.
31. Which types of damage are generally compensated by civil courts in food safety liability cases? For instance loss of value, reparation costs, loss of revenue, and personal injury. Are punitive damages available?
Where food-related products or services endanger the lives, bodies, health, or properties of consumers, those consumers can demand compensation for the injury actually suffered and the interest that has been lost as a result of the infringement (Article 216, Civil Code). The interest that has been lost is the interest that could normally have been expected, according to the ordinary course of things, the projects already decided on, equipment already purchased, or other particular circumstances.
A consumer can otherwise request punitive damages of up to five times the amount of the actual damages resulting from the injury caused by the business operator's wilful act of misconduct. If the injuries were caused by negligence, a punitive damage up to one time the amount of the actual damages may be claimed. (Article 51, Consumer Protection Act).
Based on the majority of relevant court judgments, consumers cannot claim compensation for pure economic loss and damage to the product itself under the Taiwan Civil Code or the Consumer Protection Act.
The statute of limitation for a claim arising from a wrongful act is the shorter of:
  • Two years from the date when the injured person becomes aware of the injury and the person liable for compensation. Ten years from the date when the wrongful act was committed.

Contributor Profiles

Yulan Kuo, Senior Partner

Formosa Transnational Attorneys at Law

T +886 2 2755 7366
F +886 2 2708 8435
E [email protected]
W www.taiwanlaw.com
Professional qualifications. National Taiwan University, Department of Law (LLB, 1983); Institute of Building and Planning (graduate study, 1990); University of Minnesota, Law School (LLM, 1998)
Areas of practice. Patent litigation; intellectual property; telecommunications and Internet; IT technology; biotechnology.
Professional associations. International Association for the Protection of Intellectual Property (AIPPI); Asian Patent Attorneys Association (APAA); American Intellectual Property Law Association (AIPLA); International Trademark Association (INTA); ACS.

Jane Wang, Partner

Formosa Transnational Attorneys at Law

T +886 2 2755 7366
F +886 2 2708 8435
E [email protected]
W www.taiwanlaw.com
Professional qualifications. National Taiwan University (LLB, 2000); University of California, Berkeley, CA, US (LLM, 2004)
Areas of practice. Patent litigation; Intellectual property; data protection; employment; competition; environment; emerging technologies.
Professional associations. International Association for the Protection of Intellectual Property (AIPPI); Asian Patent Attorneys Association (APAA); International Trademark Association (INTA); World Law Group; Licensing Executives Society International (LESI).