1 Linking you to Asia and beyond. 2 I. Background I. Background II. Why Taiwan II. Why Taiwan III....

1

Linking you to Asia and beyondLinking you to Asia and beyond

2

I. BackgroundI. Background

II. Why TaiwanII. Why Taiwan

III. Taiwan FTZ AdvantagesIII. Taiwan FTZ Advantages

IV. Introduction of IndustriesIV. Introduction of Industries

V. FTZs in TaiwanV. FTZs in Taiwan

3

Technological advances innetworking,

telecommunication,& information

Economicliberalization

Capital marketformation

The importance of internationaltrade

The importance of port economics

The role ofmultinationalcorporations

GlobalizationGlobalization

Globalization of world economy bolsters the increasing Globalization of world economy bolsters the increasing importance of international trade and the roles of ports importance of international trade and the roles of ports and MNCs.and MNCs.

I. BackgroundsI. Backgrounds

4

The increasing importance of air-/ seaportsThe increasing importance of air-/ seaports

Distrib

ution

centers

Logistics

centers

Transp

ort

centers

Airports

/

Seaports

Networking & Informationalization

Econ

om

ic L

ibera

lizatio

n

Inte

rnatio

naliza

tion


5

Upgrading

Core value-added we have

Innovation R&D Manufacturer Assembly Marketing Services

Regionalize

Globalize

Localize5% 5%

Resources：MIT. Donald R.Lessard， CEDI, CEPD U

pgrading

Global LogisticsGlobal

LogisticsKnowledgeEconomy

KnowledgeEconomy

EconomicStrategy

Develop High-TechFabricating Ability

Revise Economic Developing Position Revise Economic Developing Position


6

• The shortest flying time to 7 main cities of the Western Pacific: 2

hrs 55 mins

Locate at the Transportation Hub of AsiaLocate at the Transportation Hub of Asia

• The shortest average sailing time to 5 major regional harbors: 53 hours

53

124

7864

110

68

Kaohsiung HK Manila Shanghai Tokyo Singapore

6:15

4:554:15 4:00

3:30 3:25 3:052:55

Sydney Singapore Tokyo Seoul Manila Shanghai HK Taipei

Taiwan


7

Worldwide Market Share WW No. 1 WW No. 2

Motherboard 97.2%

WLAN NIC 88.4%

Server (System & Pure MB) 86.9%

Notebook PC 92.8%

VoIP Router 73.0%

DSL CPE 84.7%

Cable CPE 93.4%

LCD Monitor 76.8%

VoIP TA 70.0%

PDA 69.8%

IP Phone 52.8%

CDT Monitor 52.9%

Large Size LCD Panel 48.1%

DSC 42.3%

Server (System) 35.2%

ODD 29.0%

Desktop PC 32.6%

Various Worldwide Leading Products Made by TaiwanVarious Worldwide Leading Products Made by Taiwan


Source: MIC/III, April 2008

8

Abundant Capacity for Innovation and R&D GrowthAbundant Capacity for Innovation and R&D Growth

(2) R&D Growth(2) R&D Growth

190.52 197.63 204.97

224.43240.82

260.85

280.98

2.522.422.33

2.2

1.98 1.972.08

0

50

100

150

200

250

300

350

400

1999 2000 2001 2002 2003 2004 2005

NT$ billion

0

0.5

1

1.5

2

2.5

3

%

R&D Expenditure R&D Expenditure as a Percentage of GDP

3,693

4,667

5,371 5,431 5,298

5,938

5,118

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Case

1999 2000 2001 2002 2003 2004 2005

U.S. Patents Granted

(1) U.S. Patents Granted(1) U.S. Patents Granted


9

Full Functioning of the Industrial Clustering EffectFull Functioning of the Industrial Clustering Effect

Hsinchu Science Park Electronics and

Information Software Optoelectronics

Kaohsiung Petrochemicals Steel Electronics

Yunlin Technology Industrial Park

Textiles Optoelectronics

Nankang Software Park Software Knowledge Industries

Southern Science Park Optoelectronics Machinery Foodstuffs Biotechnology Environmental

Protection

Central Science Park Optoelectronics Precision Machinery Nanometer Materials Aerospace


10

Facilitating business activities

(streamlining procedures for granting entry and issuing landing visas to business

personnel; providing exhibition facilities and services)

Ease of financial operations

(permitting setup of holding companies for offshore

investment, and allowing OBUs to handle foreign-currency

transactions)

Rooting deeply in Taiwanwhile deploying globally

Within physical territory, but outside the customs territory

(autonomous management; exempted from customs checking and inspection, as well

as cargo tracking and escort)

Duty & tax exemption(exempt from customs duties,

commodity tax, sales tax, tobacco and wine excise tax)

Relaxing hiring ratio

for foreign workers

Allowing in-depth value-added processing(e.g. assembling, packaging,

manufacturing)

Free Trade Zones

Various Incentives for Attracting Businesses to FTZsVarious Incentives for Attracting Businesses to FTZs

III. Advantages of Taiwan FTZIII. Advantages of Taiwan FTZ

11

Convenient cargo logisticsConvenient cargo logistics

Other FTZ’s

Bonded areasExport processing zone

Science Park

Tariff-liable areas

Report

Clear customs by rules

Clear customs according to rules

Report

Businesses in port

BusinessesIn port

Report

FTZ area

Gates


12

Taxes reductions, exemption and rebatesTaxes reductions, exemption and rebates

Tariff-liable areas

Other FTZs

Bonded areasExport processing zone

Science ParkBusinesses

in port

Businesses in port

Duty free goods, machinery and equipment

0 Business Tax Goods exported according to rules

Gates

1.Taxed as imported good2.Special rules for - inspection, processing - Re-export port-return area

Exemptions

FTZ area

Gates

According to Rules for Bonded Goods


13

Tax Incentives (II)Tax Incentives (II)

Current business income tax incentives:1. When an FTZ enterprise takes custody of foreign goods and those goods are subsequently rec

onsigned directly to a buyer overseas, business income tax will be levied only on the value added to the goods in the FTZ.

2. When an owner of foreign goods, in accordance with Article 14-1 of the Statute for Upgrading Industries, self-establishes or commissions an FTZ enterprise to establish a distribution hub for storage and simple processing of goods, income from the consignment of such goods to domestic customers will be exempt from business income tax.

Overseas customer

FTZ enterprise

Owner of foreign goods

Directly resold

Commissioning to store & consign

Domestic Customer

Commissioning for storage / simple processing


Tammy Turner

check 10% translation below

14

Thresholds

AValue-adding goods and logistics/distr

ibution services

BAfter-sales maintena

nce services

Internetional Logistics Enterprises

TargetedEnterprises

App

roval of Investment P

lan by MO

EA

Program

Office

(Increase) Paid-in capital≧

NTD 100 million

(Increase) Paid-incapital ≧

NTD 10 million

Includes new building construction for operations

≧ NTD 50 million

Does not include new building construction for operations

≧ NTD 30 million

Engaged in A or A+B services, new accumulated

revenues≧NTD 400 million

Engaged in B services, new accumulated revenues ≧NTD 300 million

En

terprise’s in

vestmen

t plan

mu

st be com

pleted

with

in 3years

Proof of in

vestmen

t plan

comp

letion

Ap

plication

of investm

ent cred

it or b

usin

ess tax exemp

tion

Important note: Applications must be submitted before Dec. 31, 2009 and within six months from the day after the approval for the establishment of a new company or increase capital change was issued.

“Regulations for Encouraging International Logistics Enterprises in Emerging, Important and Strategic Industries” give businesses the option of utilizing the shareholder investment credit or 5-year business tax exemption provided for in the Statute for Upgrading Industries

Tax Incentives (III)Tax Incentives (III)


15

Applying to establish operations in an FTZ

Required documents1. Application form2. Business plan (including financial plan)3. Freight management plan4. Specifics of processing for customs clearance and account management5. Investors’ proof of identification

Submission Qualified

Operation

s establishe

d

Approve

d

After six months in operation another assessment will be made to decide whether or not operations may follow the original business plan

Custom

s and other related departm

entsR

eview by the F

TZ

M

anagement

Jointly w

ith

Dedicated specialist are

assigned to provide assistance

Quick application Quick application process for setting process for setting up FTZ operationsup FTZ operations


16

Disem

barkation

foreign business personnel

Free Trade Zone

Visa-free (30 countries)

Landing visa (4 countries)

Visa (stay, resident)

Selective landing visa(not restricted to countries without embassy or consulate)

NotifyingForeignAirline

company

Documentscheck

Luggageclaims

Customsinspection Arrival

Urgent casesapproved and submitted via FTZ

management agency

MO

FA

(7 working days)

Convenience for Visa ApprovalConvenience for Visa Approval


17

Introduction of Industries Introduction of Industries

LogisticsLogistics

TechnicalTechnicalServicesServices

ICTICT ElectronicElectronicMaterialsMaterials

ShippingShipping

18

Scope: Transport and storage apart from passenger transportIncludes sea/land/air transport, storage, forwarding, storage/distribution, and customs clearance

A. Logistics Industry A. Logistics Industry

680.58 m tons

252.6 m tons

81.09 m tons

182,367 persons

10,824 companies

US$23.4 billion

2007

Inland

logistics volume

Import

logistics volume

Export

logistics volume

Number of employees

Number of companies

Revenue

State of the Industry

Scale:

Source:Department of Commerce, MOEA, April 2008

IV.IV. Introduction of Industries Introduction of Industries

19

• Steady economic growth• Equipment companies and technology are mature; room to grow for both foreign and domestic companies• Using high-tech sector to develop close-knit global supply chains• Many domestic companies are globalizing and deploying internationally

• Steady economic growth• Equipment companies and technology are mature; room to grow for both foreign and domestic companies• Using high-tech sector to develop close-knit global supply chains• Many domestic companies are globalizing and deploying internationally

Corporate synergy aspects Corporate synergy aspects

A. Logistics Industry A. Logistics Industry

Competitive Advantages Competitive Advantages

• Advanced logistics concepts, strong logistics technology application capabilities• Plentiful logistics and distribution experience• Development of new information technology• Steady development of logistics information hardware

• Advanced logistics concepts, strong logistics technology application capabilities• Plentiful logistics and distribution experience• Development of new information technology• Steady development of logistics information hardware

Technical aspectsTechnical aspects

•Opening of Chinese market•Taiwan shares the same language and script as the potential Chinese market, which gives enterprises an opportunity to grow and a springboard to the international market

•Opening of Chinese market•Taiwan shares the same language and script as the potential Chinese market, which gives enterprises an opportunity to grow and a springboard to the international market

Market aspectsMarket aspects

•A good geographical location, suitable for the development of transshipment logistics•A tight-knit road network•Five FTZs•Integrated airport and seaport transportation•Establishment of a sound information and communications environment•Training and certification of specialist personnel

•A good geographical location, suitable for the development of transshipment logistics•A tight-knit road network•Five FTZs•Integrated airport and seaport transportation•Establishment of a sound information and communications environment•Training and certification of specialist personnel

Infrastructure aspectsInfrastructure aspects


20

Future Prospects

Encouraging transnational logistics operators to establish bases in TaiwanRecommending that star enterprises set up global operations

headquarters in Taiwan

Improving performanceStandardized, modularized,

automated, computerized processes

Strengthening of logistics/information/organizational networks

Adding value to services

Asset services

Value-added servicesIntegrated

supply chain services

Functional services

A. Logistics IndustryA. Logistics IndustryIV.IV. Introduction of Industries Introduction of Industries

21

Regular Internet users – 16.56 million

Home Internet connection rate - 71.7%

Mobile/wireless Internet service penetration rate - 26.1%

Mobile phone service penetration rate (not include PHS service) - 98.3%


B. ICT IndustryB. ICT Industry

Current StatusCurrent Status

A major procurement center for global ICT companies

Ranked first in worldwide ICT product market share for more than 13 products

Dominates IT hardware production value in PRC around 90%

Rapid growth of TFT LCD Monitor industry production, and ranked first with production value in worldwide

22

0102030405060708090

100110120 US$ Billion

2006 7.0 26 23.6 42.7 89.7

2007 7.5 32 34.3 45.8 105.4

InformationSoftware

Communications

LCD Panel ICInformationHardware

Note 1: Information Software covers the industry production value for computer software and embedded software products combined.

Note 2: Communications covers the industry production value for network-based communications, mobile phones and PDAs combined.



Taiwanese ICT Industry Statistics, 2006Taiwanese ICT Industry Statistics, 2006 －－ 20072007

23

The Taiwanese IT Hardware Industry‘s The Taiwanese IT Hardware Industry‘s Production Value, 2000Production Value, 2000 －－ 20122012

Millions USDGrowth %

Source: MIC/III, April 2008



0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

-10%

0%

10%

20%

30%

Production Value 47,019 42,750 48,435 57,171 69,664 80,980 89,656 105,449 118,520 130,391 142,663 153,733 164,472

Value YoY GR 17.9% -9.1% 13.3% 18.0% 21.9% 16.2% 10.7% 17.6% 12.4% 10.0% 9.4% 7.8% 7.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008(f) 2009(f) 2010(f) 2011(f) 2012(f)

24

C. Electronic Materials IndustryC. Electronic Materials Industry

Definition:

Materials used by the semiconductor, flat-panel, and packaging industries

Current status:

1. Development conforms to the “reverse integration model”

2. Products are mainly imported

3. The industry must develop to meet the needs of improving downstream applications

1. Development and Current Status1. Development and Current Status


25

2. Competitive Advantages 2. Competitive Advantages Taiwan’s downstream applications market is expanding rapidly

Taiwan’s downstream applications market is expanding rapidly

Outstanding process control

capability

Outstanding process control

capability

New applications are stimulating development of new materials

New applications are stimulating development of new materials

Ability to reduce costs Ability to

reduce costs

Government policy support Government policy support

C. Electronic Materials IndustryC. Electronic Materials IndustryIV.IV. Introduction of Industries Introduction of Industries

26

3. Future Prospects 3. Future Prospects

High demand for electronic materials used in flat-panel displays

The electronic materials market is expected to have an overall compound growth rate of 13.5% during the next five years

Falling manufacturing and transport costs will strengthen the industry’s international competitiveness

C. Electronic Materials IndustryC. Electronic Materials Industry


27


D. Technical Services Industry D. Technical Services Industry

1. Development and Current Status1. Development and Current Status

Definition: Includes the R&D services industry, design services industry, information services industry, automation services industry, management and consulting industry, and other technical service industries supporting industrial development.Development and current status:1. The industry production value chain has been broken up into areas of s

pecialization; the strength of integrated technical services has expanded the scale of the technical services market.

2. The industry has seen average annual growth of 13% in revenues over the last ten years, attracting foreign investment of USD 1.8 billion annually.

3. Over 90% of technical services businesses are SMEs.

28

D. Technical Services IndustryD. Technical Services Industry

2. Competitive Advantages2. Competitive Advantages

Development opportunities in specific areas

A strong manufacturing foundation

Globalization

Familiarity with the Chinese market

Worldwide deployment of Taiwanese companies


29

D. Technical Services Industry D. Technical Services Industry

3. Future Prospects 3. Future Prospects

There is tremendous room for growth in business services output

and employment

Demand for external services is increasing steadily

The technical services industry has enjoyed steadily increase in

output value and employment


30

I. Star of tomorrow’s international shipping market: AsiaI. Star of tomorrow’s international shipping market: Asia

Shipping IndustryShipping Industry

World's Top 15 Cargo Ports in 2007

Hong Kong12%

Shenzhen10%

Pusan6%

Long Beach4%

Qingdao5%

Ningpo-Zhoushan5%

Shanghai13%

Singapore13%

Antwerp4%

Los Angeles4%Guangzhou

4%

Hamburg5%

Kaohsiung5%

Rotterdam5% Dubai

5%

Singapore Shanghai Hong Kong ShanzhenPusan Dubai Rotterdam KaohsiungHamburg Qingdao Ningbo-Zhoushan GuangzhouLos Angeles Antwerp Long Beach

Arrows indicate 9 ports in Asia


31

2. Size of Taiwan’s Shipping Companies2. Size of Taiwan’s Shipping Companies

Three of Taiwan’s shipping companies are ranked in the world’s top 30 in terms of shipping capacity, and together account for 9.73% of the world’s shipping capacity.

E. Shipping IndustryE. Shipping Industry


Company Name TEUAccount of the

world’s shipping capacity

shipsAccount of the

world’s shipping capacity

Evergreen Croup 566,271 6.12 166 5.05

Yang Ming Line 253,104 2.74 82 2.49

Wan Hai Lines 117,578 1.27 72 2.19

Total 936,953 10.50 320 9.73

32

Such well-known container shipping companies as Maersk (ranked 1Such well-known container shipping companies as Maersk (ranked 1stst), ),

Evergreen (ranked 4Evergreen (ranked 4thth), Hanging (ranked 9), Hanging (ranked 9thth), APL (ranked 10), APL (ranked 10thth), OOCL ), OOCL

(ranked 11(ranked 11thth), Yang Ming (ranked 14), Yang Ming (ranked 14thth), Wan Hai (ranked 20), Wan Hai (ranked 20thth), HMM, and ), HMM, and

NYK are leasing container docks at the Port of Kaohsiung. These companies NYK are leasing container docks at the Port of Kaohsiung. These companies

have established a tight-knit transportation network providing worldwide have established a tight-knit transportation network providing worldwide

shipping services.shipping services.

3. Advantageous Ports3. Advantageous Ports



33

FTZ

Yes Logistics port area warehouse

（ automated ）

Port zone enterprise

4. Cooperation Strategy for FTZ Shipping and Logistics 4. Cooperation Strategy for FTZ Shipping and Logistics CompaniesCompanies

Partnership between Yang Ming Lines and Yes LogisticsPartnership between Yang Ming Lines and Yes Logistics

Tax bonded areaProcessing zone

Science park

Other FTZs

Yang Ming Lines ship ties up at dedicated terminal

Automated checkpoint system

Sea-air forwarding

Dedicated terminalFirst-come-first-served



Privatized loading and unloading



34

Scope: Four Seaports and One Airport

V. FTZs in Taiwan

Taichung Port FTZTaichung Port FTZ

Taoyuan Air Cargo Park FTZTaoyuan Air Cargo Park FTZ

Kaohsiung Port FTZKaohsiung Port FTZ

Taipei Port FTZTaipei Port FTZKeelung Port FTZKeelung Port FTZ

35

Keelung Port FTZKeelung Port FTZ

Map of Keelung PortMap of Keelung Port

FTZ area

36

Ideally SituatedIdeally Situated

1. Located at the intersection of trans-Pacific and inter-Asia shipping lines, Keelung is a major port for close-by shipping lines and a transhipment port for distant lines.

2. More than 30 shipping companies currently operate close to 100 shipping lines.

3. Links to over 130 ports in more than 40 countries.

4. Nearby northern Taiwan is the country’s political, economic, and consumer hub, and is also the source of 52% of Taiwan’s cargo.

Keelung Port FTZ

37

Companies Currently Operating in the FTZCompanies Currently Operating in the FTZ

彩躍公司擁寶國際

大優貿易東哲行磐亞實業

Keelung Port FTZ

38

Area Available for Corporate Use, and Suitable IndustriesArea Available for Corporate Use, and Suitable Industries

Area of West Wharfs No. 11-12

1. Areas: 115,000 m2

2. Annual rent: Approx. NT$0.55 billion

3. Uses: storage, logistics

West Wharf No. 14 Warehouse

1. Area: 2,064 m2 2. Annual rent: Approx.

NT$4.0 million. 3. Uses: storage, logistics

East Wharf No. 14 Warehouse and Vacant Space

1. Area: 2,000 m2

2. Annual rent: Approx. NT$1.44 m

3. Uses: storage, logistics

West Wharfs No. 7-9 Warehouse and Vacant Space

1. Area: 32,765 m2 2. Annual rent: Approx.

NT$29.0 m 3. Uses: storage, logistics,

container yard

Keelung Port FTZ

39

Initial area: 79 ha

Marine area: 2,064 haLand area: 1,038 ha (including offshore logistics warehouse area)

Taipei Port FTZ Taipei Port FTZ

40

Development TimetableDevelopment TimetableStage 1: Aug. 2005, 79 ha behind current restricted area.Stage 2: After 2008, the Port of Taipei container terminal will occupy approx. 110 ha Future development: Port plans call for the total eventual development of 1,038 ha of

land area.

Superior ConditionsSuperior Conditions1. Spacious hinterland, adequately deep basin. 2. Close to metropolitan Taipei, with plenty of

cargo sources.3. Close to Taoyuan International Airport;

convenient sea-air forwarding.

Third Bulk and General Cargo Center1. Area: 10 ha 2. Uses: Storage, logistics,loading/unloading & transshipment3. Open for occupancy after 2009

Area available for companiesArea available for companies

Taipei Port FTZ

41

Value-added plant area Logistics service areaLiving area

Plant area developed in

Stage 1

Plant area developed in Stage 1

Stage 2 development

areaIndividualized development

area

Individualized development

area


42

Air Cargo Park (partially completed)

Firms occupying high-rise plant/office high-rise

buildings inside national borders but outside customs

can engage in processing, manufacturing, assembly, maintenance, packaging,

testing, and trade.

Plans call for business offices, financial services, a conference and exhibition facility, and a five-star business hotel, plus health and recreational facilities and various facilities catering to daily life.

Air cargo terminal(completed)

The Far Glory Air Cargo Terminal located here

can handle a million tons of air freight annually

Warehouse/office building

(completed)

Provides offices and cargo management space to

airlines, forwarders, and customs brokers.

Domestic/foreign logistics center (completed)

Fresh produce and express goods delivery and distribution center

Corporate operations center (planned)

FTZ PlanFTZ Plan

MRT station

Taoyuan Air Cargo Park FTZ

43

Convenient TransportationConvenient Transportation

Freeways: Only 8 minutes to the Sun Yat-Sen Freeway and 15 minutes to the Second Northern Freeway via the airport access road.

West Coast Expressway: Only 15 minutes to the Port of Taipei and 10 minutes to the coastal industrial parks.

Taiwan Route 4: Exit at the Nankan Interchange and pass the Tai Mao Shopping Center; 7 minutes to the FTZ entrance.

Airport MRT: 40 minutes from the Guolin Station to Taipei Main Station, and 15 minutes to the HSR System's Taoyuan Station.

Taoyuan Airport FTZ


44

Bonded area

Lot-by-lot customs

clearance(declaration

form)

(waybill)

Monthly statement

(waybill)

Free from review

and inspection

Taoyuan International

Airport

Tax zone

Inside national territoryInside national territory, outside customs (Taoyuan

FTZ)Outside national territory

30 min.

After arrival of aircraft

Value-adding plants

When exporting, send to area B1before takeoff (1.5 hours)

An access apron leads directlyto the cargo terminal (within 2 hours)

Transfer to warehouse (within 3 hours) Entry to FTZ in 1 hourQuick exit in 3 hours

Speedy Customs ClearanceSpeedy Customs Clearance

10min.


45

Assembly, processing

Factory production, manufacturing

Maintenance and technical services

Procurement and offshore shipping centers

Tax-exempt and bonded raw materials, parts, and finished product storage

Conventional industry

High-tech industry

Logistics industry

International logistics centers and logistics processing

Third- and fourth-partylogistics

Operating Models Suitable for the FTZOperating Models Suitable for the FTZ


46

Companies Occupying the Air Cargo Park(48 Companies)Companies Occupying the Air Cargo Park(48 Companies) Compiled: March 18, 2008

Electronics Digital consumer electronics Life Technologies

Flat-panel displays Glory Optronics, Atan Technology, Shin an SNP

Memory modules Power Quotient International, Apacer Technology, OCZ Technology, Corsair Memory, Panram International, JD Digital Tech Co,.Ltd, Tideway Technology, PHISON Electronics, Zetex Electronic

Wafer dealer Sumitronics Taiwan

IC, electronics part dealers ASEC International, Powertronics, Prospect Technology, Sigurd Microelectronics

Electronic devices Tecoship Electronic, FMAX

Semiconductor equipment Process Partners International, ASML, FairTech

Opto communication devices Aurotek, Db Tech, Antenova, OE Tech

Monitoring devices COP Security System, Neotech Photoelectric, Topica Technology

Mobile mataining EgualLogic

Opto Film of Backlight module Glorysun Optoelectronics

Hardware & appliance

Small appliances UNICOND

Medical Medical devices Transonic Systems Asia

Logistics Logistics JSI Logistics Taiwan, ALL STAR LINK LOGISTICS, Farglory Logistics, MEC, FedEX

Living/department store

Tobacco Amansa

Conventional industry

Bicycles Sliding Bike Development, LIYANG GLOBAL

shoes Best Dragon International

Plastic film sales SoLux, toplink

Clothes Pink&White International


47

製表日期： 97.3Cargo terminal, 3rd floor

Airlines NCA, Far Eastern Air Transport, Air Macau, Cargolux Airlines

Cargo terminal, 4th floor

Customs brokers/forwarders

37 companies including DIMERCO EXPRESS (TAIWAN), MORRISON EXPRESS, U-FREIGHT (TAIWAN) , PANALPINA TAIWAN, FEC, KINTETSU WORLD EXPRESS (TAIWAN), SPEEDMARK TRANSPORTATION, GREAT EXPRESS, KUEHNE + NAGEL, SCHENKER (H.K.) LTD. TAIWAN BRANCH), AIR SUPREMACY TRANSPORTATION, UPS SUPPLY CHAIN SOLUTIONS (TAIWAN), MAXFREIGHT INTERNATIONAL LOGISTICS, DHL GLOBAL FORWARDING (SINGAPORE) PTE. LTD., TAIWAN BRANCH), DART EXPRESS (TAIWAN) LTD.), EVER HONEST WORLD TRANSPORT, GEODIS WILSON TAIWAN, HECNY TRANSPORTATION (TAIWAN), HONG KONG UNITED EXPRESS HOLDING COMPANY LTD., EVER RICH AIR FREIGHT, Shulman Air Freight International Taiwan.,Ltd, AIR INT‘L FREIGHT, ROYAL AIR FREIGHT (TAIWAN), CEVA LOGISTICS (TAIWAN), ALPHALOG FREIGHT SYSTEM CORP, HELLMANN WORLDWIDE LOGISTICS , CARGO-PARTNER LOGISTICS, TAIWAN NATIONAL AIRFREIGHT, LEAD YOUNG LOGISTICS INT’L, AIR-SEA TRANSPORT, JACKSON FREIGHT SYSTEM, ETICA EXPRESS, ACTEAM, SOUND HOPE GLOBAL LOGISTICS and HiView Express, etc.

Warehouse/office building,1st floor


Nippon Express, Marine Land Air, Lien Ti

Warehouse/office building, 2nd

floor


10 companies including Angkor Airways Corporation, Marine Land Air, Jui Sheng, Lian Ti, Leader Mutual, Trans Pacific Express and National Express, etc.

Hangar, 2nd floor Customs brokers/forwarders

Ta Heng

Airlines, Customs Brokers, and Forwarding Companies Airlines, Customs Brokers, and Forwarding Companies Occupying the FTZ (55 companies)Occupying the FTZ (55 companies)


Compiled: March 2008

48

Occupancy Application ProceduresOccupancy Application Procedures

Within 2 weeks after formal application

Civil Aeronautics Administration

Taipei Customs Office

Application for operating license

1 dayFarglory LogisticsTransfer of property

Within 3 weeks after formal application

Civil Aeronautics Administration

Taipei Customs Office

Application for preparatory license

Within 7 days after depositFarglory LogisticsContract signing

1 dayFarglory LogisticsDeposit

Handling periodAccepting unitItem


49

1F: NT$439/sq. meters 2F~5F: NT$409/sq. meters 6F~10F: NT$379/sq. meters

Stage 1 Cargo Park Rental PricesStage 1 Cargo Park Rental Prices

Building height: 10 stories

B1: Cargo handover, storage, and

transportation center

B2: Parking facility

Total area per floor: 4,192 sq. meters

Building B Building A

Occupied 37%

Available



FTZFuture fill area (approx. 413.6 ha )

Total port area:The port has a total area of approx. 11,285 ha Land area approx. 2,820 ha ( not including future filled

areas); 17 special-purpose areas for total 1,504 ha Space for 83 docks

The port has a land area of 2,820 hectares (approximately 1,504 hectares of this is used for 17 special-purpose areas); the entire port area may be included within the FTZ if circumstances warrant.

51

An Optimal LocationAn Optimal Location

Located in central Taiwan; offers lowest land transportation costs

A hub of East Asian shipping routes; shortest average sailing time to the Asia-Pacific’s five largest ports in the Asia-Pacific region

Shortest distance to ports along the coast of China

Taichung Port FTZ

120Kaohsiung107Keelung87Meizhou

1055Huludao760Qingdao437Macau

1047Yingkou667Ningbo395Hong Kong

997Qinghuangdao652Lianyungang240Wenzhou

958Dalian643Haikou227Shantou

975Tianjin620Zhanjiang158Fuzhou

900Yantai453Shanghai132Xiamen

DistancePortDistancePortDistancePort

Port Area AdvantagesPort Area Advantages

52

Convenient Transportation and Access to a Large Inland AreaConvenient Transportation and Access to a Large Inland Area

Convenient, extensive land, air, and sea transportation

Offers access to a large inland area consisting of central Taiwan’s eight cities and counties

Proximity to numerous industrial parks, export processing zones, and science parks

Taichung Airport

Changpin Industrial Park

Central Taiwan Science Park

Taichung Harbor Bureau

10

61

10乙

1

11乙

1乙

10

17

17

61

1217

136

Port AdvantagesPort Advantages

Taichung Port FTZ

53

Superb Port FacilitiesSuperb Port Facilities

48 existing docks of all types (total dock length of 11,474 meters)

42 public and private enterprises have invested NT$33.7 billion in the operation of port facilities.

The port’s shipping channel has been dredged to a depth of 16 meters and widened to 400 meters. The port can now accommodate 4,000-TEU container ships and 125,000-ton capesize bulk carriers.

Port AdvantagesPort Advantages

Taichung Port FTZ

54

1. Three areas of the FTZ are being developed in two stages. Total area is 536 ha, of which 117.75 ha remain available for business leasing.

2. Future expansion: The entire port area may be incorporated into the FTZ. Short-term plans call for logistics area I (approx. 82.55 ha) to be added to the FTZ first.

Logistics Logistics 區區IIII

專業區專業區 II

(Wharfs West 1-7, 77 ha )

(Docks 20A-46, 278 ha )

(Docks 1-18, 181 ha )

Logistics area IILogistics area II

(31 ha )(31 ha )

Logistics area ILogistics area I

(82.55 ha )(82.55 ha )

Stage I, Oct. 31, 2005Stage I, Oct. 31, 2005Stage II, Aug. 8, 2006Stage II, Aug. 8, 2006

Current StatusCurrent StatusTaichung Port FTZ

55

Area FTZ enterprises Business services

Area 1

Eastern Media International Grain storage, logistics, transshipment

Express Container Terminal Corp. Container storage, consolidation

Elite International Service System Trade, storage, logistics, transshipment, transfer, forwarding, assembly, reorganization, packaging, repair, processing, exhibition, port warehouse management (13 items)

Fu Szu Storage Co. Motor vehicle storage, logistics

San Wei Co. Auto part & component trade, logistics, transshipment, transfer, assembly, reorganization, packaging

Trade-Van Information Services Technical services

Yurak International Trading Co., Ltd.

Plastic materials trade, logistics

Tonglin Logistics Trade, logistics, transshipment, transfer, forwarding, customs clearance

Ya Po (H.K.) Co. Trade, logistics, transshipment, transfer, assembly, reorganization, packaging, repair, processing, exhibition, technical services

Catscan Taiwan Limited Storage, logistics, transfer

HANG YAO LOGISTICS Trade, storage, logistics, forwarding, customs clearance, assembly, reorganization, packaging, port warehouse management

Universal Logistics Trade, storage, logistics, transfer, transshipment, assembly, reorganization, repair, port warehouse management

Area 2

Chien Shing Customs Broker Storage, logistics, port warehouse management

Evergreen International Storage and Transport Corp.

Container storage, consolidation, port warehouse management

Wan Hai Lines Container storage, logistics, consolidation, transshipment, transfer, assembly, reorganization, packaging, port warehouse management

Tehlong Warehousing &Storing Trade, storage, logistics, transfer, transshipment, port warehouse management

Area 3

Yi Chou Co. Fuel oil trade, storage, logistics, transshipment, transfer, manufacturing

Taiwan Fuel Oil Co. Fuel oil forwarding

Chenergy Global Oil storage, transshipment, processing

Pan Overseas Trade, Storage, logistics, processing, transshipment, transfer, port warehouse management

Companies Occupying the FTZ (20)Companies Occupying the FTZ (20) Taichung Port FTZ

56

11.97Triangle between Central 2nd Road and North 1st Road

5.18Area of #5B wharf

1.91Area of #12 wharf3.10Area of #5A wharf

1.74Area of #13 wharf0.86Area of #5 wharf

39.99Total

0.90Area of #8 wharf7.90Area of #4C wharf

0.86Area of #7 wharf1.51Area of #4B wharf


Area (ha)LocationArea (ha)Location

Area 1

Area 2


2.71Area of #44 & #45 wharf0.87Area of #25 wharf

14.85Area of #36 wharf


82.99Total



14.85Area of #37 wharf1.89Area of #20A wharf

Area (ha)LocationArea (ha)Location

10.27Total

10.27Area of #W6 wharf

Area (ha)

Location

Area 3

Land Available for LeaseLand Available for Lease

Logistics special purpose area Ⅱ

Apron is a container

wharf

Petrochemical industry special

purpose area

Taichung Port FTZ

57

A variety of suitable business items FTZ enterprises (17 items):

Trade, storage, logistics, container (goods) consolidation, transshipment, transfer, forwarding, customs clearance, assembly, reorganization, packaging, repair, processing, manufacturing, exhibition, and technical services. Non-FTZ enterprises:

Financial, loading/unloading, dining, lodging, conferences, transportation, transshipment, and other approved enterprises.

Occupant Recruiting TermsOccupant Recruiting Terms

1. As vertical or horizontal manufacturing integration demands, or to alleviate insufficient capacity, an FTZ enterprise engaging in processing or manufacturing may apply to outsource processing services from a company outside the FTZ.

2. An FTZ enterprise engaging in logistics may apply to outsource distribution reorganization or simple processing from a company in a bonded area or tax zone outside the FTZ. However, the original state of the goods must still be recognizable after reorganization or simple processing.

3. When processing services outsourced by an FTZ logistics enterprise have a major impact on the national economy, the enterprise may outsource substantially-altering processing services to a company outside the FTZ after the case is approved by the Executive Yuan Free Trade Zone Coordinating Committee.

Enterprises may apply to outsource processing

Taichung Port FTZ

58

Land use fees:

Leased area × section price × 5%;

The section price is currently NT$1,400 ～ 1,600/ ㎡

Management fees:

By area: Approx. NT$32.35 per square meter per year;

By tonnage: NT$30 per ton

Facility rent (including building rent):

The number of years of exemption from rent depends on the amount of investment; no facility rent must be paid during the exemption period.

Applicable areas:

Port facility areas (i.e., areas apart from the logistics special purpose area and the petrochemical special Ⅱuse area)

“Cooperative development” in accordance with the Commercial Port Act

Land rent: Construction period: Only land tax and other fees must be

paid;

Operation period: leased area × announced land price × 3 ％ ;

the announced land price is currently NT$1,800 ～ 2,300/ ㎡ ;

Or land use fees: leased area × section price × 5%; the section

price is currently NT$1,400 ～ 1,600/ ㎡ .

Concession fees: By area: Approx. NT$32.35 per square meter per year;

The tenant shall retain ownership of surface

structures

Applicable areas: Logistics special purpose area Ⅱ

and petrochemical special use area

“Lease of land” in accordance with the Act for Promotion of Private Participation in Infrastructure Projects or National Property Act

A company wishing to invest in an FTZ enterprise must pay rent (or user fees) and management fees to the Port of Taichung; the calculation of costs depends on the nature of the investment.

Investment Methods and CostsInvestment Methods and Costs

Taichung Port FTZ

59

Incentive Program (1)Incentive Program (1)

Implementation date:Effective Aug. 21, 2007.

Cargo types benefiting under this program:Pipeline and non-containerized cargo

How incentive is applied:For those meeting F1 customs declaration requirements for FTZ inbound warehousing and F5 export transfer, management fee (or terminal handling charges) and wharf passage fee is collected at one-fourth standard fee per transaction.

Taichung Port FTZ

60

Incentive Program (2)Incentive Program (2)

Period of implementation:

Pilot program to be conducted for one year from Mar. 1, 2008 to Feb. 28, 2009.

Cargo types benefiting under this program:

Pipeline and non-containerized cargo

How incentive is applied:

Management fee (or terminal handling charges) and wharf passage fee is collected at one-fourth standard fee per transaction under the following conditions:

1. when F4 customs declaration requirements for FTZ inbound warehousing of sea transport cargo and F5 export transfer are met;

2. when F1 customs declaration requirements for FTZ inbound warehousing and F2 outbound shipping by sea to tax levy destination are met;

3. when F1 customs declaration requirements for FTZ inbound warehousing and F4 outbound shipping to another FTZ are met.

Taichung Port FTZ

61

Kaohsiung Port FTZ

Chungtao Commercial Port: 17.72 ha

Container terminal No. 1-5: 397.69 ha

62

AdvantagesAdvantages

一港口二港口

Superior port characteristics: 16-meter water depth

Vessel traffic service system (VTS) insures safe navigation.

2007 container volume was 10.24

million TEU

Goods from Fuzhou and

Xiamen in China

Third-area ports such as the US and

Europe

Port of Kaohsiung Offshore Shipping Center

provides direct shipping service

Automated checkpoint control

system

Kaohsiung Port FTZ

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Hyundai Merchant Marine EMI

OOCL Logistics Kaochun Stevedoring

Taiwan Jih You Cargo Distribution International

Yes Logistics Lien Hai Terminal & Stevedoring

Hanjin American President Lines (Taiwan)

Kao’s Express Warehouse & Stevedoring Co., Ltd. Wan Hai Lines

Pacific Harbor Stevedoring Trade-Van Information

Formosa Logistics American Consolidation Service

Oriental Logistics Yang Ming Marine Transport

Tonglit Logistics OOCL

Suitable IndustriesSuitable Industries

Storage Simple processing

International logistics

Transshipment

Current occupant companies (20 companies)Current occupant companies (20 companies)

Kaohsiung Port FTZ

64

Thank You!Thank You!

Keelung Port FTZKeelung Port FTZ

Tel: 02-2420-6284-5Tel: 02-2420-6284-5

Fax: 02-242-95826Fax: 02-242-958260-

E-mail: [email protected]: [email protected]

Taipei Port FTZTaipei Port FTZ

Tel: 02-2420-6284-5Tel: 02-2420-6284-5

Fax: 02-2429-5826-0 Fax: 02-2429-5826-0



Tel: 03-383-3456Tel: 03-383-3456

Fax: 03-393-3456Fax: 03-393-34560-



Tel: 04-2664-2354Tel: 04-2664-2354

Fax: 04-2658-0547Fax: 04-2658-05470-


Kaohsiung Port FTZKaohsiung Port FTZ

Tel: 07-562-2608Tel: 07-562-2608

Fax: 07-521-4903Fax: 07-521-49030-


Council for Economic Planning Council for Economic Planning and Development (CEPD), and Development (CEPD), Executive YuanExecutive Yuan

Tel: 02-2508-7972Tel: 02-2508-7972

Fax: 02-2509-2683Fax: 02-2509-26830-

Department of Investment Department of Investment Services (DOIS), MOEAServices (DOIS), MOEA

Tel: 02-238-92111Tel: 02-238-92111

Fax: 02-238-20497Fax: 02-238-204970-


Industrial Development Industrial Development Bureau, MOEABureau, MOEA

Tel: 02-275-41255Tel: 02-275-41255

Fax: 02-2703-0160Fax: 02-2703-01600-

Commerce Department, Commerce Department, MOEAMOEA

Tel: 02-2341-1674Tel: 02-2341-1674

Fax: 02-2341-4395Fax: 02-2341-43950-

1 Linking you to Asia and beyond. 2 I. Background I. Background II. Why Taiwan II. Why Taiwan III....

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