THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE

BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S.

GOVERNMENT POLICY

Voluntary - Public

Date: 12/5/2017
GAIN Report Number: TW17023

Taiwan

Exporter Guide

2017

Approved By:
Chris Frederick
Prepared By:
Cleo Fu

Report Highlights:
Taiwan is the seventh largest market for U.S. food and agricultural products. In 2016, Taiwan
imported US$3.33 billion of food and agricultural commodities (including edible fishery products)
from the United States. Despite the success already achieved in the market by U.S. exporters,
Taiwan still offers growth potential for U.S. food and agricultural suppliers. This report is a
practical guide for U.S. food exporters interested in marketing and shipping products to Taiwan.
General Information:

I. Market Overview

Macroeconomic Situation

With a population of 23.5 million, Taiwan is a thriving democracy, vibrant market economy, and a
highly attractive export market, especially for U.S. firms. In 2016, Taiwan was ranked as the United
States’ 9th largest trading partner in goods, placing it ahead of markets such as India and Brazil. It
was also the 12th largest U.S. export market overall and the 7th largest export market for agricultural
and livestock products.

Agricultural Trade

Given Taiwan’s relatively small agricultural sector, its dependence on food and feed imports is
expected to continue to grow. According to Taiwan’s Council of Agriculture, Taiwan imported
US$3.33 billion of food and agricultural products (including edible fishery and forestry products)
from the United States in 2016, representing 26.5 percent of the total import market share. The
United States also exports many high-valued consumer-oriented agricultural products, including
beef, poultry, fresh fruit and vegetables, dairy, tree nuts and processed foods and beverages.

2016 Taiwan Consumer Oriented Products Imports and Exports

Ranking Countries Exporting to Taiwan

Amount Total Top 5 Imported Consumer Oriented Products
(US$ million) Import
Market
Share
(%)
Beef, chicken, apples, frozen potato products, pet
1 U.S. 1,566 29.82
food
2 New Zealand 660 12.18 Beef, kiwi, milk & cream, apples, cheese
Apples, pastry products, cookies/biscuits, beer,
3 Japan 441 8.15
non-alcohol beverages
Beef, milk and cream, lamb and goat meat, wine;
4 Australia 397 7.32
pet food
Beer, ginseng roots, vegetables, dried fruits,
5 China 241 4.45
condiments, and seasonings
 Ranking Countries Importing from Taiwan
Country Amount Share of Top Five Exported Consumer Oriented
(US$ million) Total Products
Taiwan
Exports
(%)
Bread, pastry, cakes, and puddings; non-
1 China 487 27.79 alcohol beverages, pineapples, other fresh
fruits, pasta
Live plants (cuttings and slips), non-alcohol
2 U.S. 297 16.92 beverages; tapioca; sauces and condiments;
pasta
Leguminous veg raw (soybean for human
food use), live plants (cuttings and slips),
3 Japan 202 11.5 fresh/dried guavas, mangoes, and
mangosteens, pastry products, other fruit
products
Non-alcohol beverage, pastry products,
4 Hong Kong 183 10.41
pasta, ginseng roots, waters
Live plants (cuttings and slips), pastry
South
5 70 3.98 products, juices, fresh/dried guavas,
Korea
mangoes, and mangosteens, cookies
Sources: Taiwan Directorate General of Customs

Bilateral and Multilateral Agreements

Taiwan has concluded free trade agreements with several countries, including New Zealand and
China (signed under the name of Economic Cooperation Framework Agreement) to reduce tariffs
and commercial barriers.

Representatives of the United States and Taiwan signed a Trade and Investment Framework
Agreement (TIFA) in 1994 to serve as the basis for consultations on trade and investment issues.
Taiwan’s accession to the World Trade Organization (WTO) in 2002 and the WTO Government
Procurement Agreement in 2009 led to the further dismantling of non-tariff barriers and a general
lowering of the remaining tariffs. These actions further enhanced U.S. opportunities in Taiwan
market.

Demographics

Taiwan is a rapidly aging society. By 2026, over 20 percent of the population is expected to be over
65. This low birthrate caused changes in family structure, such as increasing female participation in
the workforce, childless couples, and the decline in multigenerational families. Consumption patterns
have also changed to reflect these trends with growth in the number of people frequenting
restaurants, consuming prepared foods, and eating healthier food in the pursuit of ways to spend their
increasing level of disposable income.
 Taiwan Demographics
2011 – 2016

2012 2013 2014 2015 2016

Birth Rates /1000 9.86 8.53 8.99 9.10 8.86
Fertility Rate 1.27 1.07 1.17 1.18 1.17
Death Rate /1000 6.63 6.68 7.0 6.98 7.33
Age 0 – 14 years (%) 14.6 14.3 14.0 13.6 13.3
Age 15 – 64 years (%) 74.2 74.2 74.0 73.9 73.5
Age 65+ years (%) 11.2 11.5 12.0 12.5 13.2
Source: Directorate General of Budget, Accounting and Statistics

Advantages Challenges
U.S. food products enjoy an excellent reputation U.S. food products are not always price
among consumers. competitive in Taiwan market.
The growing modern retail industry is looking for Taiwan is the United States 7th largest market for
new imported food products. agricultural exports but often overlooked by U.S.
suppliers eager to export directly to China.
The majority of consumers become more health U.S. exporters are sometimes reluctant to change
conscious and tend to be less concerned about product specifications to comply with Taiwan
costs when shopping. requirements/consumer preferences.
The popularity of American holidays and
Many U.S. companies are unwilling to provide
culture/lifestyle lead to promotional events
low volume, consolidated shipments of high-value
organized around these themes by restaurants and
products to importers/end users.
hotels throughout the year.
There is a wide variety of U.S. food products Consumers maintain a preference for “fresh” food
available to consumers. products over “frozen.”
Consumers are brand-conscious, and America is a Competition from agricultural and food exporters
leader in food brands that set trends. from countries with an FTA with Taiwan.
Increasing growth of fast food chains and casual Numerous food regulations and standards are not
dining restaurants is a key to industry growth. in line with U.S. or international standards.
II. Exporter Business Tips

Market Entry Strategy

Except for large exporting companies that maintain their representative offices in Taiwan, the
appointment of an import agent is a critical decision for most exporters. Importers prefer to see
product samples whenever possible and will often place small initial shipments to test the market
response.

Imported goods must conform to local standards and labeling regulations required for importing
products into this market. A local agent or distributor should be able to assist with obtaining the
necessary certifications and permits needed for importation.

Small to medium size exporters should work with the appropriate U.S. State Regional Trade Groups
(SRTG) to take advantage of the SRTG’s resources for marketing and promotion support in major
export markets. The four SRTGs are non-profit trade development organizations that help U.S. food
producers, processors and exporters sell their products overseas. They are funded by USDA's
Foreign Agricultural Service (FAS), individual state departments of agriculture, and private
industry. The SRTGs provide export assistance to companies located in their geographic region
through a variety of export programs and integrated marketing services. To learn more services
available from the SRTGs, find the SRTG for your geographic region in the list below and visit the
website.

 Western U.S. Agricultural Trade

Association (WUSATA)
 Southern U.S. Trade Association (SUSTA)
 Food Export-Midwest (previously named
MIATCO) (Food Export)
 Food Export-Northeast (Previously named
Food Export USA) (Food Export)

ATO Taipei strongly recommends U.S. food exporters exhibit in the USA Pavilion at the Taipei
International Food Show, which is the most influential trade show in the food industry in Taiwan,
taking place in June every year. The USA Pavilion exhibitors will receive on-site consultation
services from the ATO Taipei. ATO Taipei also organizes the USA Pavilion at the Taipei Building
Show to promote forest products. U.S. companies interested in these shows may contact ATO Taipei
for more details.
 2017~2018 Taiwan Trade Show Schedule

Show Name Show Date Products Featured

1 Taiwan Fruit & Vegetable Show Nov. 8-10, 2018 Fruit and Vegetables
2 Taiwan Int’l Fisheries & Seafood Show Nov. 8-10, 2018 Seafood
3 Taipei Int’l Food Show June 27-30, 2018 Food and beverages
4 Taipei Building Show Dec. 13~16, 2018 Forest products
(Tentative)

Foods Standards and Regulations

Taiwan’s Ministry of Health and Welfare (MOHW) is the central competent authority responsible
for the management of food safety. Taiwan’s Food and Drug Administration (TFDA) is modeled
after the U.S. FDA and is an agency within MOHW. TFDA is responsible for border inspection of
food products. TFDA officials are increasingly involved in ensuring food labeling compliance.

U.S. companies are advised to keep in mind the strict product labeling requirements enforced in
Taiwan. The label must also be translated into Mandarin. For more information regarding Taiwan’s
labeling requirements and food standard, please contact our Agricultural Trade Office or see our
latest Food and Agricultural Import Regulations and Standards (FAIRS) report:

 http://gain.fas.usda.gov/Lists/Advanced%20Search/AllItems.aspx

Tariffs and Import Controls

Taiwan’s tariff schedule, including import duties, can be found at the Directorate General of
Customs tariff database:

Directorate General of Customs Tariff Database

Trade statistics can be found at Bureau of Trade’s website:

Bureau of Foreign Trade (BOFT)

The following products are subject to a tariff rate quota (TRQ) or subject to special safeguards
(SSG)import safeguards: Peanuts, oriental pears, garlic, betel nut, chicken, chicken variety meats,
milk, certain pork and pork variety meats, Azuki beans, dried mushrooms, pomelos, persimmons,
and dried daylily flowers. The trigger volume of each SSG protected product is updated in real time
on the Customs Administration website: Special Safe Guard Database (Chinese only).
Rice

According to the WTO accession agreement, Taiwan's tariff rate quota (TRQ) for rice is 126 TMT
(144,720 MT brown equivalent), which accounts for approximately 10 percent of domestic rice
consumption. Taiwan’s rice TRQ is divided into two portions: 35 percent or 44 TMT (50,652 MT
brown equivalent) is reserved for private sector imports and 65 percent or 82 TMT (94,068 MT
brown equivalent) is set for public sector imports.

The U.S. country specific quota (CSQ) allocation is 56 TMT (64,634 MT brown equivalent). A shift
to increasing CSQ purchases of U.S. rice under the Simultaneous-Buy-Sell (SBS) regime has led to
opportunities to direct marketing U.S. rice to retail. By contrast, U.S. rice imported under the normal
CSQ tender regime is included in public reservoir stocks and is released to the market per COA
approval and oversight.

For information regarding import requirements and licensing, contact the following:

Bureau of Foreign Trade

1 Hu-Kou Street
Taipei, Taiwan
Tel: (886-2) 2351-0271
Fax: (886-2) 2351-7080
Website: http://www.trade.gov.tw/English/

III. Market Sector Structure and Trends

Sales and Marketing

Consumers are becoming more health conscious. In response, grocery operators, hypermarkets, and
supermarkets are bringing in more health and wellness products. Health-conscious consumers tend
to be less concerned about prices when shopping for products believed to be healthier and more
nutritious.

Business to consumer (B2C) online shopping is expanding robustly and reached US$18.56 billion in
2015, which 15 percent more than 2014. Group buying, online shopping apps, and several new types
of e-commerce shopping business models enjoy massive growth in the recent years. B2C business
continues to account for the most significant proportion of direct marketing sales. Young people
aged 20-39 are the primary customers for online shopping, while senior/retired people are catching
up as smartphone ownership among older adults has risen modestly in the past years.

For retail, food service and proceed food ingredients marketing tips, please locate the latest sectoral
reports at GAIN, or refer to the links below.

 Food Service - Hotel Restaurant Institutional_Taipei ATO_Taiwan_12-23-2016

 Food Processing Ingredients_Taipei ATO_Taiwan_12-21-2016
 Retail Foods_Taipei ATO_Taiwan_12-19-2016
Organic Foods Sector

Currently, a dominant trend in Taiwan is the demand for healthier products and healthier lifestyles.
Organic foods are becoming popular as consumers crave more natural and environmentally friendlier
products. The organic sector in Taiwan is rapidly growing as consumers become increasingly aware
of available products.

Due to the lead time of transportation and labeling application processes, the majority of imported
organic products are processed foods. According to regulations, Taiwan only allows products that
contain over 95 percent of organic ingredients can be labeled "organic."

The Council of Agriculture (COA) oversees Taiwan’s organic program, including imports. In 2009,
Taiwan’s Agriculture and Food Agency added the United States to the list of “recognized countries
whose standards are equivalent to Taiwan standards for organic agricultural and livestock products.”
Requirements for exporting to Taiwan are specified on the USDA Agricultural Marketing Service’s
website. As part of the agreement, the United States agreed to include the following statement on
USDA’s TM-11 form for shipments organic processed products and crops: “organic agricultural
products and organic processed products, accompanied by this certificate, were produced or
processed using zero prohibited substance.” Taiwan maintains a de facto zero tolerance for
agricultural chemical residues on unapproved compounds for organic products.

Under COA regulations, upon arrival at the port, imported organic products must apply to the
Agriculture Food Administration for approval to be labeled as organic. This requirement applies to
all imported products whether or not they are from a country on the list of “recognized countries
whose standards are equivalent to Taiwan.”

For more information regarding organic products labeling and applications, please refer to FAS’
annual Taiwan organic product report:

 Growing Demand for Organics in Taiwan Stifled by Unique Regulatory

B_Taipei_Taiwan_9-7-2017

Imported agricultural products, both conventional and organic, are subject to approval by the Taiwan
Food and Drug Administration (TFDA) and COA’s Bureau of Animal and Plant Health Inspection
and Quarantine (BAPHIQ) inspectors. After approval by port authorities, imported organic products
can apply to AFA for approval to be labeled and sold as organic. The approval process can take 1-2
weeks if no testing is required or up to a month or more if AFA selects a product for further testing.

Fish and Seafood products

Fish and seafood play a significant role in the Taiwan diet. Consumers eat an estimated 23.8
kilograms of fish and seafood annually. However, Taiwan is a net seafood exporter. Domestic
fishery and seafood production reached US$2.6 billion in 2016. The top five seafood products
Taiwan imports include cuttlefish, squid, shrimp, prawns, and salmon. U.S. is a major supplier of
Pollock, Rock lobsters, and oysters to Taiwan.
Despite gaining market share, the United States is not a significant supplier of seafood to Taiwan,
behind China and other Southeast Asian countries, which enjoy geographical proximity, and
transportation cost advantages.

Imported seafood products continue to be a niche in Taiwan’s seafood market. For instance, in spite
of the limited market share, prospects for high-quality/high-value U.S. fish and seafood exports to
Taiwan are promising due to increasing incomes and new dietary trends. Lobster, for example, is a
popular item served at wedding banquets, high-end buffet restaurants and during traditional holiday
events.
IV. Best Consumer Oriented Product Prospects

The growth of U.S. food and agricultural exports to Taiwan are mostly high-value consumer-
oriented products. While U.S. bulk commodity products exports to Taiwan are facing more
competition from developing countries with cheaper costs, U.S. exports of consumer-oriented
products, such as meat, poultry, and fresh fruits, enjoyed 42 percent growth from 2010 to 2016.

U.S.
Market
Imports
Share
Product From U.S. Key Constraints over Market Attractiveness for the
(% of
Category In 2016 Market Development USA
total
(US$ million)
import
market)
U.S. does not have full
market access for its beef Taiwan consumers have high
Beef 364 46.92% products to Taiwan due to regards for U.S. beef regarding
lingering BSE and quality and safety.
ractopamine concerns.
Special safeguards (SSG)
U.S. is one of a few countries
raise the tariff from 20
Chicken 130 91.94% certified to export poultry meat
percent to about 26.6
to Taiwan.
percent.
Taiwan consumers enjoy a
Taiwan is an important great variety of fresh fruits.
producer of fresh tropical U.S. offers different varieties of
fruits with high fresh fruits which Taiwan does
Fresh Fruits 229.9 31.74%
quality. U.S. exports are not produce locally. Top U.S.
sometimes facing SPS trade fresh fruit exports to Taiwan
barriers. are apples, cherries, peaches,
and grapes.
Local production meets U.S. continues to be the leading
Fresh
76 37.53% most of the vegetable supplier of broccoli, onions,
Vegetables
demand. lettuce, and potatoes.
The growth of this sector
Tree nuts are used for snack
may slow down due to
foods and as food ingredients
Tree Nuts 63 52.63% limited supplies and strong
and are promoted as healthy
demand competition from
food.
the mainland market.
The most significant barrier Taiwan pet food imports are
to entry for U.S. pet food is expected to grow moderately
Pet Food 45 31.60%
the ban on pet food over the next few years as pet
containing beef byproducts. ownership increases.
New Zealand enjoys duty-
free access as a result of a Consumption of cheese
Cheese 32 24.28%
free trade agreement signed products continues to grow.
with Taiwan in 2013.
Source: Global Trade Atlas
Section V. POST CONTACT AND FURTHER INFORMATION

Contact Information for FAS Offices in Taiwan

For Trade Policy/Market Access and General Agricultural Issues:

American Institute In Taiwan, AIT, Taipei
Office Hours: 8:00 AM – 5:00 PM
Telephone: (011-886-2)2162-2316
Fax: (011-886-2)2162-2238
Email-FAS: agtaipei@fas.usda.gov

For Market Development Assistance:

American Institute In Taiwan, ATO, Taipei
Office Hours: 8:00 AM – 5:00 PM
Telephone: (011-886-2)2705-6536
Fax: (011-886-2)2754-4031
Email-FAS: atotaipei@fas.usda.gov

Headquarters Contact Information:

Foreign Agricultural Service (FAS)
United States Department of Agriculture (USDA)
1400 Independence Avenue, SW
Washington, D.C. 20250
E-mail: info@fas.usda.gov
Website: http://www.fas.usda.gov