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Law Governing Factory Administration And Assistance
  • Published at: 2006-09-11 00:00
  • Last modified at: 2012-11-14 12:43

(Translation, for reference only)

LAW GOVERNING FACTORY ADMINISTRATION AND ASSISTANCE

〔工廠管理輔導法〕

(Promulgated on March 14, 2001

Through Presidential Order Hwa-Tzung-I-Yi No. 9000046490 )

CHAPTER 1

GENERAL PROVISIONS

Article 1

This Law is enacted to promote industrial development and improve factory administration and assistance. Any such matters not provided for in this Law shall be governed by the provisions of other relevant laws.

Article 2

A "factory" as referred to in this Law means a facility that has a fixed location, is engaged in the manufacturing and/or processing of goods, and its building or land reaches a certain threshold of space or its production equipment reaches a certain threshold of electric power capacity or heat power.

The scope of the manufacturing and/or processing of goods, the threshold of space and the threshold of electric power capacity or heat power as referred to in the preceding Paragraph shall be prescribed by the central competent authority.

Article 3

The competent authority as referred to in this Law shall be the Ministry of Economic Affairs at the central government level, the municipal government at the municipal level, and county or city government at the county or city level.

Article 4

The task allocation among the competent authorities shall be as follows:

1. Central Competent Authority

(1) Drafting or promulgating regulations that govern factory administration and assistance and standards governing factory establishment;

(2) Handling approvals for factory establishment, and factory registration and its revocation, cancellation and termination;

(3) Investigating all factories nationwide and by industries;

(4) Approving or disapproving applications for access to nationwide factory registration documents;

(5) Assisting factories of selected industries;

(6) Investigating and supervising the enforcement measures against factories that fail to comply with this Law; and

(7) Assisting and supervising other matters related to factory administration and assistance.

2. Municipal/County/City Competent Authority

(1) Investigating factories within their respective jurisdictions;

(2) Approving or disapproving applications for access to factory registration documents within their respective jurisdictions;

(3) Handling factory closures and non-resumption of factory operations within their respective jurisdictions;

(4) Implementing guidance and assistance to factories within their respective jurisdictions;

(5) Implementing enforcement measures against factories within their respective jurisdictions that fail to comply with this Law; and

(6) Handling other matters as designated by the central competent authority.

Article 5

The central competent authority may delegate its power to the municipal/county/city competent authority or other government authorities with respect to factory establishment approval, and factories registration and its revocation, cancellation and termination, and other related matters.

An application with respect to the matters delegated pursuant to the preceding Paragraph shall be handled by the delegated authority.

Article 6

A business entity owning a factory may be a sole proprietorship, partnership, company or other juristic person that may be engaged in the manufacturing and/or processing business pursuant to the law and regulation.

Article 7

A factory should use the name of the business entity that owns it; if a business entity owns two or more factories, the names of such factories shall be distinguished from each other.

Article 8

A factory shall have a responsible person; a person lacking legal capability or only having restricted legal capability shall not serve as a responsible person of a factory.

A responsible person shall have his/her domicile or residence in the Republic of China.

CHAPTER 2

REGISTRATION AND ESTABLISHMENT APPROVAL

Article 9

The land to be used for establishing a factory shall be limited to land inside an industrial district within the scope of urban planning, land for Type D building out of the scope of urban planning, land inside an industrial district developed pursuant to the law, or land that may be used for factory establishment pursuant to other laws and regulations.

Article 10

After a factory is established, an application for registration shall be filed. The factory shall only commence the manufacturing and/or processing of goods after the competent authority approves the registration and issues a factory registration certificate; provided, that the foregoing shall not apply to military factories under the jurisdiction of the Ministry of National Defense.

A military factory under the jurisdiction of the Ministry of National Defense that is transformed into a public or private enterprise shall apply for registration pursuant to this Law within three (3) years from its transformation.

Article 11

A factory shall obtain an approval before its establishment in either of the following circumstances:

(1) Where its establishment requires the approval of the competent industrial authority pursuant to the law.

(2) In view of the policies regarding balanced industrial development, reasonable utilization of resources, or energy saving, the central competent authority requires such approval through a public announcement.

Article 12

Where its establishment has been approved, the factory shall apply for factory registration within the time limit specified in the approval; otherwise, the approval shall be invalidated.

The time limit referred to in the preceding Paragraph shall not exceed two years; provided, that if the factory registration cannot be completed due to a just cause, an application for extension of the time limit may be filed before the expiration of such time limit. Each extension shall not exceed one year, and not more than three extensions shall be granted.

Article 13

In applying for a factory establishment approval or registration, the following information shall be provided:

(1) Factory name and address.

(2) Name and domicile or residence of the factory's responsible person.

(3) Industry category and classification.

(4) Major products.

(5) Electrical power capacity, heat power and water consumption of the factory's production equipment.

(6) Space of the factory land and building.

(7) Other information as required by the central competent authority through a public announcement.

The industry category and classification referred to in Item 3 of the preceding Paragraph shall be as prescribed by the central competent authority through a public announcement.

Article 14

Under any of the following circumstances, no establishment approval or amended establishment approval shall be granted to a factory:

(1) If an environmental impact assessment must be conducted pursuant to the Environmental Impact Assessment Law, and the environmental impact statement or assessment report for the factory has not been approved by the competent environmental protection authority.

(2) If the factory violates the land use control regulation.

(3) If the factory uses any building erected without proper licenses, or uses any building in a manner contrary to the intended use of such building.

(4) If the central competent authority has publicly announced that it will not accept any application to establish a new factory pursuant to Item 2, Paragraph 1, Article 17 of this Law.

Article 15

A factory may not apply for a registration or a change in its factory registration under any of the following circumstances:

(1) If the manufacturing of its products is banned by law or regulation.

(2) If it violates a land use control regulation.

(3) If its building was constructed without proper licenses, or is used in a manner contrary to the intended use of such building.

(4) If it falls within the business category, scope and size designated by the competent environmental protection authority, and its environmental impact statement or assessment report, or its pollution control and treatment plan has not been approved or agreed to by the competent environmental protection authority.

(5) If its facility fails to meet any applicable establishment standards.

(6) If the law requires an approval for the production of its products and such approval has not been obtained.

(7) If it fails to obtain an approval as required under Article 11 or fails to construct the factory pursuant to the contents of the approval.

(8) If the central competent authority has publicly announced a refusal to accept any application for the establishment of new factories or the expansion of existing factories pursuant to Item 2, Paragraph 1 of Article 17.

Article 16

If any matter stated in the establishment approval is changed, no factory registration shall be made unless the responsible person of a factory has obtained an amended establishment approval.

If any matter covered in the registration is changed, the responsible person of a factory shall apply for an amended registration.

A new factory establishment approval or registration shall be applied for if the factory is relocated or changes its industry category.

Article 17

In view of policy considerations for balanced industrial development, reasonable use of resources, preservation of the ecological environment, public benefits, and compliance with international conventions or agreements, the central competent authority may take any of the following measures:

(1) Conditions may be attached to a factory establishment approval or registration.

(2) For selected products or areas, a public announcement can be issued that no application for establishment of new factories or expansion of existing factories will be accepted.

(3) For selected products or areas, a public announcement can be issued to force existing factories to decrease or cease production.

Any conditions as referred to in Item 1 of the preceding Paragraph above shall be publicly announced by the central competent.

Any measure as referred to in Items 2 and 3 of Paragraph 1 above shall be adopted by the central competent authority upon an approval by the Executive Yuan.

If an existing factory is forced to decrease or cease production pursuant to Item 3 of Paragraph 1, the central competent authority may grant compensation; the regulations governing such compensation shall be prescribed by the central competent authority.

If a factory fails to comply with any condition as referred to in Item 1 of Paragraph 1, the central competent authority may order the correction of such failure or ceasing of the non-compliant activity within a time limit; if the factory still fails to make the correction or cease the non-compliant activity, its factory establishment approval or registration certificate shall be abolished.

CHAPTER 3

ADMINISTRATION

Article 18

In order to ensure sound factory administration, maintain public benefits, or comply with international conventions and agreements, the competent authority may notify a factory to file or otherwise provide relevant information. Where necessary, the competent authority may send an officer to investigate the factory; the factory shall not avoid, obstruct or reject such investigation.

When an officer of the competent authority enters a factory for investigation, the officer shall show the proper identification, and refrain from interfering with or hindering the factory's production or management or disclosing confidential production related information.

Article 19

The responsible person of a factory or an interested party may apply with the competent authority for a copy of the factory registration information. The responsible person of a factory or an interested party may apply with the competent authority for certification of matters in the factory registration.

Article 20

If a factory shuts down its operation, it shall return its factory registration certificate for cancellation; if the factory fails to return its factory registration certificate for cancellation, the competent authority shall issue a public notice to cancel the same. A factory shall be considered shut down under any of the following circumstances:

(1) If the factory is found based on facts to have stopped its operation for more than a year, except where the factory cannot resume its operation with just cause and an approval therefor has been obtained from the competent authority.

(2) If the factory has moved its major production equipment and the competent authority deems that it cannot continue any manufacturing or processing operation.

CHAPTER 4

ASSISTANCE

Article 21

In order to promote industrial development, the competent authority shall assist factories in the following areas:

(1) Conducting investigation, research, introduction, transfer and promotion of industrial production technology;

(2) Developing new products, designing industrial products, upgrading product quality, promoting automation, increasing productivity, and rationalizing management;

(3) Training industrial technical personnel;

(4) Establishing prevention, treatment or management technology for industrial pollution and industrial safety and sanitation; and

(5) Handling other matters related to industrial development.

Article 22

In order to improve the environmental quality, the central competent authority may assist factories within an industrial district or related factories out of the industrial district in setting up joint pollution prevention and treatment facilities.

CHAPTER 5

PENALTIES

Article 23

If any of the following circumstances regarding a factory are true, the competent authority shall order the acting person of that factory to stop its operation and impose a fine in an amount of NT$20,000 to NT$100,000; in case of non-compliance with such order, a further fine shall be imposed in an amount of NT$40,000 to NT$200,000; successive fines may be imposed.

(1) The factory manufactures or processes products without a factory registration certificate, in violation of Paragraph 1 of Article 10.

(2) The factory relocates itself without a renewed registration and manufactures or processes products at the new location, in violation of Paragraph 3 of Article 16.

(3) The factory continues manufacturing or processing products after the abolishment of its factory registration certificate for violation of Paragraph 5 of Article 17, Article 24, or Article 25.

(4) If the factory still manufactures or process products after a revocation of its factory registration certificate for violation of Article 29

Article 24

If any of the following circumstances regarding a factory exists, the competent authority shall abolish its registration certificate:

(1) Use of the entire factory site or buildings for any business other than the manufacturing or processing of products, and failure to comply with an order for correction within the specified time limit.

(2) Manufacturing or processing of banned or illegal goods and a court order for forfeiture of such banned or illegal goods has become final and irreversible, as notified by the prosecutor's office to the competent authority.

If the competent authority has abolished the factory registration certificate in accordance with Item 1 of the preceding Paragraph, it shall transfer the appropriate documents to other relevant authority for handling pursuant to the law.

Article 25

If any of the following circumstances regarding a factory exists, the competent authority shall order a correction within a specified time limit; in case of non-compliance with such order within the time limit, the competent authority shall impose a fine on the responsible person of the factory in an amount of NT$10,000 to NT$50,000, and order the factory to cease production and correct the situation within a further time limit; in case of non-compliance with such latter order, the competent authority shall order the factory to shut down, and abolish its factory registration certificate.

(1) Use of part of the factory site or buildings for a business other than the manufacturing or processing of products unless it is related to the products being manufactured or processed by the factory.

(2) A violation of a public announcement made pursuant to Item 3, Paragraph 1 of

Article 17.

Article 26

If a factory changes its industry category and manufactures or processes products without a new factory registration in violation of Paragraph 3 of Article 16, the competent authority shall notify it to apply for the new registration within a specified time limit; if the factory fails to comply, the competent authority shall impose a fine on the responsible person of the factory in an amount of NT$10,000 to NT$50,000 and order the factory to cease operation, and notify the factory to apply for the new registration within a further time limit; if the factory still fails to comply or its application is rejected in accordance with the law, successive fines may be imposed.

Article 27

If a factory violates Paragraph 2 of Article 16, the competent authority shall notify it to change registration within a specified time limit; if it fails to comply, the competent authority shall impose a fine on the responsible person of the factory in an amount of NT$5,000 up to NT$20,000 and notify the factory to change registration within a further time limit; if the factory still fails to comply or its application is rejected in accordance with the law, successive fines may be imposed.

Article 28

If a factory violates Paragraph 1 of Article 18, the responsible person of the factory shall be fined in an amount of NT$10,000 up to NT$50,000. Successive fines may be imposed.

Article 29

If any person provides false information to the competent authority in connection with an application for factory establishment approval or registration, the case shall be sent to the relevant authority for investigation of any criminal liability; if the court finds the person guilty and the judgment is final and irrevocable, the competent authority may order the factory to shut down and revoke its factory establishment approval or factory registration certificate.

Article 30

If any person fails to pay any fine imposed pursuant to this Law within a specified time limit as notified by the competent authority, the case shall be compulsorily enforced in accordance with the law.

Article 31

If a factory fails to comply with an order to cease production, or is ordered shut down, the competent authority, if necessary, may request the relevant electrical and water suppliers to suspend services to the factory.

In case of suspension of services as referred to in the preceding Paragraph, the electrical and water suppliers may not resume the provision of services to the factory until and unless the competent authority has issued a certificate that the cause for suspension of such services has ceased to exist.

CHAPTER 6

AUXILLARY PROVISIONS

Article 32

For any small manufacturing business with a profit-seeking enterprise certificate, which was established pursuant to the Factory Establishment Registration Regulation and exempted from the requirement of establishment registration before this Law becomes effective, if it is required to obtain a factory registration pursuant to this Law, it shall, within two years after the date of a public announcement issued by the central competent authority, apply for a factory establishment approval or registration pursuant to this Law. If it continues manufacturing or processing products either without applying for such approval or registration, or after its application is rejected according to the law, it shall be punished pursuant to Article 23.

Article 33

If a factory that has obtained a factory registration certificate pursuant to the Factory Establishment Registration Regulation before this Law becomes effective meets the requirements of this Law, it shall apply for a new factory registration certificate to replace the original one; if it fails to apply for such replacement or it does not meet the requirements of this Law, the competent authority shall issue a public notice to cancel its original registration certificate. If the factory continues manufacturing or processing products after such cancellation, it shall be punished pursuant to Article 23.

Article 34

All review fees, license fees, registration fees, copying fees, and certificate fees shall be payable by a factory when applying for an establishment approval, registration, change in establishment approval or registration, or when the responsible person of a factory or an interested person applies for copying of the relevant documents or the issuance of a certificate on factory registration matters. The standards of these various fees shall be prescribed by the central competent authority.

Article 35

The enforcement rules of this Law shall be prescribed by the central competent authority.

Article 36

This Law shall become effective from the date of promulgation.

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