Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

Article 1
　The Act is prescribed for the sake of maintaining the equilibrium of balance of
payments, stabilizing the financial market and instituting management of foreign
exchange.

Article 2

　For the purpose of the Act, the term "foreign exchange" used herein shall refer
to foreign currency, bills and notes, and marketable securities.

　The types of foreign marketable securities referred to in the preceding paragraph
shall be defined by the authority in charge of foreign exchange business.

Article 3
　The competent authorities in charge of foreign exchange administration shall be
the Ministry of Finance. The authority in charge of foreign exchange business shall
be the Central Bank of the Republic of China (Taiwan).

Article 4

　The competent authorities in charge of the foreign exchange administration shall
undertake the following tasks:

　1.To oversee and administer over the foreign currency claims and debts of the
　　government and state-run enterprises in compliance with the treaty or agreement
　　concluded with foreign government or international organization, if any;

　2.To oversee and audit the treasury's guarantee, management and repayment of
　　foreign debts;

　3.To review and approve foreign exchange settlement for imports, outward
　　remittances and borrowings made by governmentmilitary and administrative
　　agencies and to issue certificates accordingly;

　4.To communicate and coordinate with the Central Bank of the Republic of China  
　　(Taiwan) or the competent authorities in charge of foreign trade regarding 
　　foreign exchange related matters;

　5.To decide and execute disciplinary actions and fines pursuant to the Acts
　　herein; and

　6.Other foreign exchange related administrations.

Article 5

　The authorities in charge of foreign exchange business shall undertake the
following tasks:

　1.To draw up plans for foreign exchange reserve management and on foreign
　　exchange receipts and disbursements;

　2.To authorize and supervise banks engaging in foreign exchange operations;

　3.To regulate the supply and demand of foreign exchange in order to maintain an
　　orderly foreign exchange market;

　4.To examine and approve private outward and inward remittances;

　5.To supervise private enterprises' foreign borrowings guaranteed by authorized
　　banks, with reference to their management and their repayment on schedule;

　6.To purchase and sell foreign currencies, bills and notes and marketable
　　securities;

　7.To compute, compile, analyze and report the receipts and disbursements of
　　foreign exchange; and

　8.Other operations relating to foreign exchange.

Article 6
　Competent authorities in charge of foreign trade shall draw up import and export
plan according to foreign exchange management plan and the receipts and
disbursements as set forth in Subparagraph 1 of the preceeding Article.

Article 6-1

　Foreign exchange receipts, disbursements or transactions involving NT $500,000
or more or its equivalent in foreign currency shall be declared as required. The
declaration rules shall be stipulated by the Central Bank of the Republic of China.

　In the event there is fact to support the concern that a particular declaration
as set forth in the proceeding paragraph might be untruthful, the Central Bank of
the Republic of China (Taiwan) may make inquires and the inquired party shall be 
obliged to give explanations.

Article 7

　Inward and outward remittances specified below shall be sold to the Central Bank
of the Republic of China (Taiwan) or one of its authorized banks, or deposited into 
an authorized bank and sold in the foreign exchange market through said bank; the 
rules for exchange settlement shall be stipulated by the Ministry of Finance 
jointly with the Central Bank of the Republic of China (Taiwan):

　1.Foreign exchange revenues from export, re-export or other trading activities;

　2.Foreign exchange revenues received by a shipping business, insurance business
　　and people of other trades as a result of trade or service provided;

　3.Inward remittance;

　4.Income of an ROC national with domicile and residence within the territory of
　　the Republic of China from foreign investments that have had the government
　　approval;

　5.The principal, interest, net profits or technical remuneration received by a
　　domestic enterprise from foreign investments, financing activities or technical
　　cooperation that have had the government approval;

　6.Foreign exchange of other sources that shall be deposited or settled.

　Overseas Chinese or foreign individual who invest in high-tech business that can
help elevate the industrial level and promote economic development and have had
the government approval under special case status may use their foreign exchange
receipts from sources as set forth in the preceding Paragraph to offset the
foreign currency payments described in Subparagraphs 1, 2 & Subparagraphs 5 to 8
of Article 13 herein. Notwithstanding the foregoing provision, the balance of
periodic settlement thereof shall still follow the provisions specified in the
preceding paragraph; related measure will be stipulated by the Central Bank of
the Republic of China (Taiwan).

Article 8
　Except for the foreign exchange that shall be deposited or sold as provided in
Article 7 herein, citizens and foreign individual within the territory of the
Republic of China may hold foreign exchange and deposit it in the Central Bank of
the Republic of China (Taiwan) or one of its authorized banks; deposits of foreign 
currency may be withdrawn and held; the related deposit measure shall be stipulated 
by the Ministry of Finance jointly with the Central Bank of the Republic of China (Taiwan).

Article 9
　The total amount of foreign currency that may be carried by citizens or foreign
individual who depart the country shall be set by the Ministry of Finance in an
administrative order.

Article 10
　(deleted)

Article 11
　Passengers or service personnel of a transportation vehicle who carry foreign
currency into and out of the country shall report to the customs; related measure
will be set forth by the Ministry of Finance jointly with the Central Bank of the
Republic of China (Taiwan).

Article 12
　Foreign bills, notes and securities may be carried into and out of the country;
related measure shall be stipulated by the Ministry of Finance jointly with the
Central Bank of the Republic of China (Taiwan).

Article 13

　Foreign exchange needed to pay for the following expenses or activities may be
drawn by the payer from his/her foreign exchange deposit account as set forth in
Article 7 or bought in the foreign exchange market through an authorized bank, or
bought from the Central Bank of the Republic of China (Taiwan) or one of its 
authorized banks; related measures shall be stipulated by the Ministry of Finance 
jointly with the Central Bank of the Republic of China (Taiwan).

　1.Costs and expenses of merchandise approved for import;

　2.Expenses and obligations to be paid by the shipping business, insurance
　　business or people of other trades as a result of trade or service received;

　3.Expenses for attending school, taking a business tour, traveling, seeking
　　medical treatment, visiting relatives, employment, or doing business abroad;

　4.Money sent to support families abroad by citizens or foreign individualwho work
　　for a local business within the territory of the Republic of China;

　5.Principal, interests and net profits relating to investments of foreign
　　individual and overseas Chinese in the Republic of China;

　6.Payment for principal, interests and guarantee expenses of government-approved
　　foreign loans;

　7.Remuneration for foreign individual and overseas Chinese for technical
　　cooperation with local enterprises;

　8.Government-approved foreign investment or loan extended to foreign borrower;
　　and

　9.Other necessary payments and obligations.

Article 14
　Foreign exchange other than those specified in Paragraph 1 of Article 7 that
shall be deposited with or sold to the Bank or one of its authorized banks is
regarded as self-owned foreign exchange and may be used for the purposes described
in Subparagraphs 1 to 4, Subparagraph 6 and Subparagraph 7 of the preceeding
Article if so applied by its holder.

Article 15

　In case of the following imports, application may be made to the Ministry of
Finance for approval of exemption from foreign exchange settlement:

　1.Relief goods and materials from abroad;

　2.Goods bought by the government on foreign loan;

　3.Foreign donations received by school, or educational, research or training
　　institution or agency for teaching or research purpose;

　4.Foreign donations received by a charity or organization for relief purpose;

　5.Carry-on or personal effects of passengers and service personnel of a
　　transportation vehicle.

Article 16
　Gifts, samples and not-for-sale goods imported from abroad with value under a
certain limit may be imported under the approval of the customs; the aforesaid
limit shall be set by the Ministry of Finance jointly with the competent
authorities in charge of foreign trade in an administrative order.

Article 17
　When the reason for the disbursement of foreign exchange has ceased to apply or
changed so that the foreign exchange is not needed for making payment, in part or
in whole, the balance thereof shall be deposited into or sold to the Central Bank
of the Republic of China (Taiwan) or one of its authorized banks within a time 
period prescribed by the Central Bank of the Republic of China (Taiwan).

Article 18
　The Central Bank of the Republic of China (Taiwan) shall provide the Ministry of 
Finance with a report detailing foreign exchange purchases and sales, foreign 
exchange positions and guaranteed foreign liabilities on a regular basis.

Article 19
　(deleted)

Article 19-1

　In case of any of the following situations, the Executive Yuanmay decide and
announce with a public notification to close the foreign exchange market, suspend
or restrict all or some foreign exchange settlements, order the selling or deposit
of all or some types of foreign exchange into an authorized bank, or take other
necessary measure for a specific time period:

　1.When the domestic or foreign economic disorder might endanger the stability of
　　the domestic economy.

　2.When this country suffers a severe balance of payments deficit.

　The items and targets of aforesaid action shall be specified in Regulations
Governing Foreign Exchange Control stipulated by the Executive Yuan.

　The aforesaid decision shall be submitted to the Legislative Yuan for acceptance
within ten days after it is announced and shall become invalid once the Legislative
Yuan rejects it.

　The specified time period stipulated in Paragraph 1 shall not be longer than 20
days, provided the Legislative Yuan is not in session.

Article 19-2
　Intentional violation of the measures taken by the Executive Yuan pursuant to
Article 19-1 herein shall be subject to a fine under NT $3,000,000.
　Notwithstanding of the foregoing provision, the violator shall be exempt from
the penalty provided the Legislative Yuan rejects the measures taken by the
Executive Yuan subsequently.

Article19-3

　In response to UN Resolutions and the needs of international cooperation, the Financial 
Supervisory Commission (FSC) may, in conjunction with the Central Bank, after submitting 
to the Executive Yuan for approval, issue orders to specified banks to block the 
withdrawal,transfer, payment, or disbursement in, or otherwise take necessary measures 
against, accounts held by individuals, entities or institutions of certain countries or 
regions that are suspected of directly or indirectly using the accounts, money transfers,
currencies or other instruments of payment to finance terrorism or terrorist 
organizations, or engage in activities threatening international security. 

　The FSC shall make public the above measures and deliver the same to the Legislative Yuan
for approval within ten days after being public. The measures shall become immediately 
void if the Legislative Yuan votes against. 

　The said measures shall be lifted when causes thereof cease to exist.

Article 20

　Violation of Article 6-1 herein involving intentional omission of declaration or
making untruthful declaration shall be subjected to a fine of more than NT$30,000
and less than NT$600,000; the same provision applies to failure to provide
explanation within a specified time period or providing false explanation.

　Violation of Article 7 herein involving not selling or depositing foreign exchange
to or with the Central Bank of the Republic of China (Taiwan) or one of its 
authorized banks shall be subjected to a fine that amounts to twice the sum not 
deposited or not sold converted into New Taiwan Dollar at the then prevailing 
exchange rate, and the Central Bank of the Republic of China (Taiwan) will pursue 
the return of foreign exchange.

Article 21
　Violation of Article 17 herein shall be subjected to a fine that amounts to the
sum not deposited or not sold back converted into New Taiwan Dollar at the then
prevailing exchange rate, and the Central Bank of the Republic of China (Taiwan)
will pursue the return of foreign exchange.

Article 22

　People who engage in foreign exchange transactions illegally as a regular
profession shall be subjected to a prison term or detention of less than three
years, and/or a fine that amounts to their total business turnover; the foreign
exchange and the payment or proceeds thereof shall be confiscated as well.

　In case the representative of a juristic person, the agent of a juristic person
or a natural person, the employee or business associate of a juristic person in
other capacity violates the provision stipulated in the preceding paragraph while
conducting business, the juristic person or natural person shall be fined the same
amount as imposed on the offender.

Article 23
　Where the foreign exchange that shall be returned pursuant to the Acts herein is
not returned in the form of foreign exchange, a fine less than the amount that shall
be returned will be imposed.

Article 24

　In case of buying or selling foreign exchange that violates Article 8 herein, the
foreign exchange and payment or proceeds thereof will be confiscated.

　Where the amount of foreign currency carried while departing the country exceeds
the limit prescribed in Article 9 herein, the excess portion shall be confiscated.

　Foreign currency carried into or out of the country shall be confiscated, provided
it is not reported as required under Article 11 herein; in case of false reporting,
the excess portion shall be confiscated.

Article 25
　In the event that an authorized bank violates any of the provisions herein, the
Central Bank of the Republic of China (Taiwan) may suspend its foreign exchange 
business operations, in whole or in part, for a certain period of time, depending 
on the severity of the offense.

Article 26
　Cases of resisting payment of the fines imposed pursuant to the Act shall be
transferred to the court for compulsory execution.

Article 26-1
　The Executive Yuan may decide to discontinue the application, in whole or in part,
of Articles 7, 13 and 17 herein when the ROC experiences sustained international
trade surplus, a build-up of foreign exchange reserves or material changes in the
world economy.
　Within ten (10) days after the Executive Yuan has decided to resume the
application, in whole or in part, of the provisions of the preceding paragraph, it
shall be submitted to Legislative Yuan for acceptance. If the decision is not
approved by the Legislative Yuan, it shall become invalid.

Article 27
　The enforcement rules of the Act shall be drafted by the Ministry of Finance
jointly with the Central Bank of the Republic of China (Taiwan) and the competent 
authorities in charge of foreign trade, and sent to the Executive Yuan for approval.

Article 28
　This Act shall become effective on the date of promulgation.