Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions

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Title：

Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions

Inactive Regulations

Announced Date： August 30, 1995

Amended Date： April 30, 2003

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Article 1

These Regulations are prescribed pursuant to Paragraph 1, Article 6-1 of Foreign Exchange Control Act.

Article 2

A person within the territory of the Republic of China who possesses or needs foreign exchange with the value equal to or over New Taiwan dollars 500,000, and engages in its receipts and disbursements or transactions (hereinafter referred to as the declarant) shall make declaration pursuant to these Regulations.

Article 3

When making a declaration of foreign exchange settlement against the New Taiwan dollar, a declarant shall truthfully fill out a Declaration Statement of Foreign Exchange Receipts and Disbursements or Transactions(hereinafter referred to as Declaration Statement)(see attached sample) according to supporting documents, such as a contract evidencing the Foreign Exchange Receipts and Disbursements or transactions. The declarant shall make the declaration to the Central Bank of the Republic of China (Taiwan)(hereinafter referred to as the Bank)through the banking enterprises authorized by the Bank to conduct foreign exchange business (hereinafter refereed to as banking enterprises).

The term "banking enterprises " as used in the preceding paragraph shall mean banks, credit cooperatives associations, credit departments of farmers' associations, credit departments of fishermen's associations, and the Chunghwa Post Co., Ltd.

The following declarants may use the Internet to send electronic declarations to the Bank through banking enterprises authorized by the Bank to engage in Internet foreign exchange business：

1.A company, a firm or an association established in the Republic of China pursuant to the laws of the Republic of China or registered with the government of the Republic of China(hereinafter refereed to as a company, a firm or an association), that has obtained a Uniform Number from the competent authorities.

2.An individual over 20 years of age residing in the territory of the Republic of China and holding a citizen's ID Card, Taiwan Resident Certificate or an Alien Resident Certificate that would not expire within one year.

Article 4

After filling out a Declaration Statement, a declarant may process the settlement of foreign exchange against the New Taiwan dollar involving the following foreign exchange receipts and disbursements or transactions. But if the nature of the settlement falls within the foreign exchange activities specified in Article 5, the settlement may not be processed until the banking enterprise has confirmed that the Declaration Statement is consistent with relevant contracts and letters of approval that evidence the foreign exchange receipts and disbursements or transactions in question:

1.Foreign exchange receipts from the export of goods or from the provision of services to non-residents by a company, a firm, an association , or an individual;

2.Foreign exchange disbursements for the import of goods by a company, a firm, an association, or an individual, or for services provided to a company, a firm, or an association by non-residents;

3.Foreign exchange purchased or sold within one year by a company or a firm with an accumulated amount not exceeding United State dollars 50 million; or foreign exchange purchased or sold within one year by an association or an individual with an accumulated amount not exceeding United States dollars 5 million; and

4.A single remittance by a non-resident not exceeding United States dollars 100,000. However, a foreign financial institution outside the territory of the Republic of China may not sell foreign exchange which is inward remittance.

Where the foreign exchange receipts, disbursements, or transactions from the export or import of goods as specified in Subparagraphs 1 and 2 of the preceding paragraph are processed with shipping documents, a certificate of foreign exchange settlements against the New Taiwan dollar for exports/imports drawn by a banking enterprise may serve as the Declaration Statement.

The term"non-resident" as used in these Regulations shall mean a foreign individual who does not have a Taiwan Resident Certificate or an Alien Resident Certificate, or who has relevant residence certificate which will expire within one year, or a company, a firm or an association that has not been officially registered within the territory of the Republic of China, or a foreign legal entity that has not been recognized by the government of the Republic of China.

Article 5

The settlement of foreign exchange against the New Taiwan dollar involving the following foreign exchange receipts and disbursements or transactions may not be processed until the banking enterprise has confirmed that the Declaration Statement is consistent with relevant contracts and letters of approval that evidence the foreign exchange receipts and disbursements or transactions in question :

1.A single remittance by a company or a firm with an amount over United States dollars 1 million;

2.A single remittance by an association or an individual with an amount over United States dollars 500,000;

3.Remittances approved by the competent authorities for direct investment or portfolio investment;

4.Outward remittances to Mainland China, except for remittances that do not require evidencing documents pursuant to other regulations of the Bank ;

5.Remittances for transactions conducted within the territory of the Republic of China involving goods or services located outside the territory of the Republic of China; and

6.Remittances that require evidencing documents for verification by banking enterprises pursuant to other regulations of the Bank.

Article 6

The settlement of foreign exchange against the New Taiwan dollar involving the following foreign exchange receipts and disbursements or transactions may not be processed until the declarant has received approval from the Bank by submitting the Declaration Statement along with evidencing documents through banking enterprises :

1.Essential remittances by a company or a firm whose accumulated amount of foreign exchange purchased or sold within one year has exceeded United States dollars 50 million; or essential remittances by an association or an individual whose accumulated amount of foreign exchange purchased or sold within one year has exceeded United States dollars 5 million;

2.The following remittances where a single remittance by a non-resident exceeds United States dollars 100,000 in foreign exchange purchased or sold:

(1) Funds for engaging in construction projects within the territory of the Republic of China;

(2) Guarantees and arbitration fees due for deposit as a result of pending legal cases within the territory of the Republic of China;

(3) Funds relevant to real estate for self use within the territory of the Republic of China that has been legally acquired or approved by the competent authorities; and

(4) Inheritance, insurance claims, and pensions legally acquired within the territory of the Republic of China.

3.Other essential remittances.

Article 7

The banking enterprise shall examine and verify the identification documents or registration documents of a declarant, and advise the declarant on how to fill out a Declaration Statement when a declarant applies for declaration of foreign exchange settlement against the New Taiwan dollar at the banking enterprise. The banking enterprise shall affix its seal on the Declaration Statement as a proof for the provision of advice, and then submit the Declaration Statement or the Bank's letter of approval, the certificate of foreign exchange settlement for exports/imports and any other required documents along with the daily report of foreign exchange transactions to the Bank.

Article 8

Where a declarant mandates another person to declare foreign exchange settlements against the New Taiwan dollar on his/her behalf, the mandatary shall present a letter of mandate and identification documents of both the principal and the mandatary to the banking enterprise, and make the declaration in the name of the principal who shall assume all related responsibilities thereof.

A company or a firm that makes a declaration of foreign exchange settlement against the New Taiwan dollar in its own name on behalf of another party with the approval of the Bank shall be treated as the declarant.

Article 9

Unless otherwise provided by the Bank, a non-resident natural person making a declaration of foreign exchange settlement against the New Taiwan dollar specified in Subparagraph 4, paragraph 1, Article 4 or Subparagraph 3, Article 5 shall make the declaration in person with a passport or other identification documents.

Unless otherwise provided by the Bank, a non-resident legal entity making a declaration of foreign exchange settlement against the New Taiwan dollar specified in Subparagraph 4, paragraph 1, Article 4 or Subparagraph 3, Article 5 shall submit a letter of authorization authorizing its representative or agent within the territory of the Republic of China as the declarant, who shall be jointly responsible for the items declared together with the non-resident legal entity; while a foreign financial institution shall authorize a financial institution within the territory of the Republic of China to serve as the declarant.

A non-resident making a declaration of foreign exchange settlement through a banking enterprise pursuant to the rules set forth in Subparagraphs 2 and 3 , Article 6, shall submit a letter of authorization authorizing its agent within the territory of the Republic of China as the declarant, who shall be jointly esponsible for the items declared with the non-resident.

Article 10

A declarant using the Internet to make a declaration of foreign exchange settlement against the New Taiwan dollar shall first visit a banking enterprise in person to apply for and handle related items as stipulated. When the banking enterprise processes the application, it shall verify the declarant's identification document or basic registration information.

The banking enterprise that accepts declarations of foreign exchange settlement against the New Taiwan dollar by declarants through the Internet shall provide a sample Declaration Statement with a description of how it shall be filled out on its website. After confirming a match for the electronic signature on the eclarant's completed Declaration Statement, the banking enterprise shall submit Internet foreign exchange transactions, the Bank's letters of approval and other required documents along with daily report of foreign exchange transaction to the Bank.

Declaration records of foreign exchange receipts and disbursements or transactions in electronic format, as well as other written or faxed documents shall be properly stored for auditing, query, and printing purposes by banking enterprises and shall be retained for at least five years.

Article 11

A declarant making a foreign exchange settlement through the Internet pursuant to Article 5 shall fax the relevant foreign exchange settlement documentation that matches the originals to the banking enterprise; where a declarant makes a foreign exchange settlement against the New Taiwan dollar based on letters of approval from the competent authorities, the total accumulated foreign exchange settlement amount may not exceed the approved amount.

Where a declarant making a declaration of foreign exchange settlement against the New Taiwan dollar through the Internet is found to have made a false declaration, that declarant shall thereafter make declarations of foreign exchange settlements against the New Taiwan dollar in person at banking enterprises only.

Article 12

A declarant shall not change the contents of the Declaration Statement after making a declaration of foreign exchange settlement against the New Taiwan dollar, unless:

1.The declarant has unintentionally submitted untruthful information, has provided evidence to which, and has submitted an opinion letter issued by a lawyer or a banking enterprise indicating the same .

2.The declarant has already been penalized pursuant to Paragraph 1, Article 20 of the Foreign Exchange Control Act for intentionally making an untruthful declaration.

If a certificate of foreign exchange settlement against the New Taiwan dollar prepared pursuant to Paragraph 2, Article 4 is found to be inconsistent with the original evidencing document, the provisions of Paragraph 2 , Article 13 shall apply mutatis mutandis to the correction of the certificate.

Article 13

Where a declarant has not made foreign exchange settlement against the New Taiwan dollar for relevant foreign exchange receipts and disbursements or transactions, the certificate of transaction prepared by a banking enterprise shall serve as the Declaration Statement.

The declarant shall verify the accuracy of the contents of the certificate of transaction prepared by the banking enterprise. In the event that inconsistency has been identified, the declarant shall submit the relevant evidencing documents to apply for the correction with the Bank through the banking enterprise within 7 business days after the preparation of the certificate of transaction .

Article 14

In the event that there is reason to believe the items declared might be untruthful, the Bank may make inquires and the declarant concerned shall be obliged to give explanations honestly.

Article 15

A declarant that fails to make a declaration on purpose or makes an untruthful declaration on purpose, or gives no explanation in reply to the inquiry before a deadline or gives fraudulent explanations, shall be subject to penalty pursuant to the provision of Paragraph 1, Article 20 of Foreign Exchange Control Act.

Article 16

Except for situations described in Articles 8 and 9, a non-declarant who makes a foreign exchange settlement declaration on behalf of a declarant shall be penalized pursuant to Paragraph 1, Article 20 of Foreign Exchange Control Act concerning untruthful declarations.

Article 17

These Regulations shall become effective on the date of promulgation. Attachment: Declaration Statement of Foreign Exchange Receipts andn Disbursements or Transactions