HELPING YOUR BUSINESS GROW INTERNATIONALLY Business Guide

1 CONTENTS

INTRODUCTION Why Taiwan? 4 About this Business Guide 16 RESEARCHING THE MARKET Where to begin 17 How we can help you 20 MARKET ENTRY Choosing the right location 22 Establishing a presence 24 GETTING STARTED Finding a customer or partner 32 Due diligence 33 Employing staff 34 Language 36 Marketing 38 Interpreters 40 BUSINESS ISSUES AND Business etiquette 42 CONSIDERATIONS Intellectual property rights (IPR) 47 Procurement 48 Regulations, incentives and tax 49 Getting paid and financial issues 53 Insurance 55 Management, control and quality assurance 56 Bribery and corruption 57 Getting to Taiwan 58 Taiwanese CULTURE Politics 61 Current economic situation 62 Religion 63 Challenges 63 CONTACTS 64

Disclaimer Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office) accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned.

2 3 INTRODUCTION WHY Taiwan?

Taiwan, formally known as the Republic of China, is strategically located at the heart of the Asia-Pacific region. Over the last three decades, it has transformed itself from an authoritarian one-party state, with an agrarian economy based on rice and sugar, into a thriving capitalist economy with a democratically elected government. Taiwan is now the 16th-largest trading nation in the world, according to the World Trade Organisation, with an economy founded on high-tech and creative industries.

Over the last three decades, Taiwan has Taiwan has also become a global centre averaged annual GDP growth of around 8 for R&D and a growing number of per cent. Taiwan’s economy grew by 5.2 per multinational companies (such as Intel, cent in 2011, as the rest of the world slowly Microsoft, Sony and HP) are choosing it as emerges from the economic downturn. The the focal point for R&D in the Asia-Pacific country’s economic success was, initially, region. The World Economic Forum’s World based on the manufacture of low-technology Competitiveness Report ranks Taiwan eighth goods. However, these labour-intensive in the world for R&D. industries have, increasingly, relocated to areas with a lower cost base, primarily China, It has developed one of the most advanced and Taiwan has successfully moved into telecommunications networks in Asia and higher value-added manufacturing and wireless penetration has almost reached exports, mainly in electronics and computers. saturation levels, thanks to a comprehensive infrastructure of Wi-Fi, WiFly, WiMAX and Taiwan leads the world in the manufacture 3.5G. The country aims to become the first of computer-related products and in the world that is entirely wireless, with semiconductors. Before the global recession, broadband access ports located throughout high-tech products made up around 51.6 the island. Almost half of the top 100 IT per cent of the country’s exports, compared companies in Asia have a presence in Taiwan. to 29 per cent in South Korea and 20 per cent in Japan. Accounting for 17 per cent According to the International Monetary of the global market, Taiwan’s photonics Fund, Taiwan’s economy is now the 26th- industry is estimated to be worth US$90 largest in the world. In 2010, it was ranked billion in 2011. It ranks as the leader in the 13th in global competitiveness rankings world for production volumes and second (World Economic Forum). in terms of production value.

4 5 INTRODUCTION WHY Taiwan? (CONTINUED)

The Country at a Glance between the two markets. This is expected The Taiwanese government is actively to boost bilateral trade significantly. promoting the development of six Full name: Republic of China (Taiwan) emerging industries: biotechnology; green Capital: Taiwan’s pro-investment policies and energy; culture and creativity; medicine Other main cities: , incentives are another major pull for and healthcare; tourism and high-end Area: 36,188 sq. km/13,972 sq. miles (roughly the size of Wales) investors. Free competition is encouraged agriculture. It is also focusing on four Population: 23.03 million (2010) and there are price controls only on basic “intelligent” industries: smart electric necessities. Qualified foreign companies vehicles; smart green buildings; cloud Major languages: Mandarin Chinese (official language), Min Nan Chinese (Taiwanese) can obtain listings on the Taiwan stock computing and patent commercialisation. and Hakka. English and Japanese are also widely spoken market by listing their shares or issuing There are incentives available to attract Ethnicities: Han Chinese and indigenous minority of Taiwanese aborigines Taiwan depositary receipts. The Taiwanese foreign and domestic investors in these Life expectancy: 73 years (men), 79 years (women) government encourages mergers and priority sectors. Major religions: Taoism, Buddhism, Christianity acquisitions that serve the public interest Monetary unit: (NT$) and protection is provided to foreign You can find more information on the patents, trademarks and copyrights. Taiwanese government’s Invest in Taiwan Nominal GDP: US$427 billion website at http://investtaiwan.nat.gov.tw/ GDP per capita: US$19,155 Since Taiwan joined the World Trade library/main_eng_general.jsp World ease 25 Organisation in 2002, it has opened up its of doing business domestic market to international investment Specific details of key investment ranking: and there are now very few industries that opportunities in Taiwan are listed on are closed to foreign investors (talk to page 10, under ‘Opportunities in Taiwan A leading choice for investors UKTI Taiwan for more details). Around 300 for UK companies’. Taiwan’s strategic location is one of its most With direct flights having been introduced UK companies already have a significant significant advantages for international in 2008, travellers can now fly from Taiwan presence in Taiwan, including HSBC, investors. It is ideally situated adjacent to major cities in China with a journey time Bank, , Arup to China and within easy reach of major of just one to two hours. and Mott Macdonald. UK retailers have been commercial centres and ports in the ASEAN well-received, with fashion labels such as (Association of Southeast Asian Nations) The continuing liberalisation of links across Burberry, Vivienne Westwood, Paul Smith, region. For example, the sailing time from the means that foreign Dunhill, Aquascutum, Ted Baker, Gieves Taiwan’s largest port, Kaohsiung, to five of companies are increasingly choosing Taiwan & Hawkes, Oasis and French Connection the largest Asia-Pacific ports (Hong Kong, both as a market in its own right and as a all gaining a foothold in the marketplace. Manila, Shanghai, Tokyo and Singapore) stepping stone into China. Taiwan signed Smaller, specialist UK companies have also is just over two days. This makes Taiwan the Economic Cooperation Framework invested in Taiwan, including suppliers to the a favoured choice for headquarters in the Agreement (ECFA) with China in 2010 vast semiconductor industry and specialist Asia‑Pacific region, as well as R&D facilities. to reduce tariffs and commercial barriers chemical company, Epichem.

6 7 INTRODUCTION uk trade (goods only) with taiwan 2004-2011 (£ thousands) WHY Taiwan? (CONTINUED) 2004 2005 2006 2007 2008 2009 2010 2011 UK exports 952,909 944,892 912,853 938,618 836,298 750,472 1,048,840 1,299,000 UK imports 2,395,505 2,267,258 2,390,453 2,421,774 2,482,862 2,095,982 2,892,369 3,336,000

Strong bilateral trade Inward investment TOP TEN UK importS OF GOODS TO taiwan IN 2011 (£ MILLIONS) Most of the world, including the UK, does There are currently around 180 Taiwanese not recognise Taiwan as a sovereign entity companies with an active presence in Item 2011 separate from China, due to the political the UK. In 2010/11, 14 more Taiwanese Telecoms and sound recording and reproducing equipment 759 disagreement between the two. This has firms established a presence in the UK, Electrical machinery and appliances 324 led to diplomatic isolation for Taiwan, but, including specialists in ICT, biotechnology despite this, the country enjoys a strong trade and healthcare. This helped to create Non-ferrous metals 273 and investment relationship with the UK. and safeguard over 200 jobs. Seventy Manufactures of metal 263 per cent of all Taiwanese investment in Office machines and adp machines 253 Exports Europe comes to the UK and nine of Road vehicles 252 Taiwan is the UK’s 44th-largest export Taiwan’s leading financial institutions are market. Only two other countries in Europe represented here, including the Bank of Miscellaneous manufactured articles 240 export more to Taiwan. In 2011, UK Taiwan, the Central Bank, the Financial Power-generating machinery and equipment 111 exports to the country were worth Supervisory Commission, Chang Hwa General industrial machinery and equipment 105 £1.3 billion, up 24 per cent on 2010. Commercial Bank and SinoPac Securities. The UK’s principal exports to Taiwan are: Iron and steel 98 electrical machinery; beverages; industrial machinery and equipment; metalliferous TOP TEN UK EXPORTS OF GOODS TO taiwan IN 2011 (£ MILLIONS) ores and metal scrap; medicine and Item 2011 pharmaceuticals. Power-generating machinery and equipment 181 Imports Beverages 159 Imports from Taiwan to the UK were worth Medicinal and pharmaceutical products 140 £3.33 billion in 2011, up 15 per cent on Metalliferous ores and metal scrap 100 2010. Taiwan is the 32nd-largest supplier of goods to the UK. The UK’s principal Electrical machinery and appliances 86 Taiwanese imports are: office machinery Miscellaneous manufactured articles 68 and automatic data processing systems; Specialised industrial machinery 57 telecoms and sound recording/reproducing equipment; electrical machinery and Road vehicles 50 miscellaneous manufactured articles. General industrial machinery and equipment 49 Iron and steel 45 Source: BIS analysis of HM Revenue & Customs data

8 9 INTRODUCTION WHY Taiwan? (CONTINUED)

Opportunities in Taiwan for UK companies by Japanese and Korean styles and • Creative industries – The expansion of education. This is creating outstanding UK Trade & Investment (UKTI) has identified trends. Due to the increasing demand the Cultural & Creative Industries (CCI) opportunities for UK companies active in significant opportunities in the following for quality products, there are in Taiwan is a priority area and is one these areas. sectors in Taiwan: opportunities for UK companies in of the six key emerging sectors selected contemporary men’s and women’s wear, by Taiwanese authorities for national • Electronics, semiconductors and display • Aerospace – Taiwanese authorities plan premium accessories and sportswear. development. There are estimated to be – Taiwan leads the world in the to increase aviation-related investment over 49,450 CCI businesses in Taiwan, production of PCs, notebook PCs, Soho to £666 million by 2013, with the total • Telecommunications – Taiwan has one of providing some 195,160 jobs. The routers, cable modems, optical disk value of annual aerospace production the most advanced telecommunications Taiwanese government is investing more drives, modems, switches, hubs and expected to reach £2 billion by that sectors in Asia. The mobile and wireless than £107.7 million under the Creative WLAN, as well as being a key player in year. Taiwan’s Ministry of Transportation communications market is dominated by Taiwan framework. This is creating mobile handset production. Taiwanese and Communications (MOTC) is keen three key players – Chunghua Telecom; opportunities for UK companies in: ICT companies mainly use China as their to develop the aerospace industry Taiwan Mobile and FarEastone – which product design, incorporating packaging manufacturing base, keeping their and upgrade the capability for local are keen to expand into telehealth, design/industrial design and branding headquarters, R&D and sales departments manufacturers to carry out Original cloud computing and smart grid. The counselling services; architectural design in Taiwan. Taiwan has a worldwide share Equipment Manufacturing (OEM) work fourth player, VIBO Telecom, which and planning; creative education and of over 90 per cent of the OEM/ODM for international aerospace companies. entered the market after the other three, training; and the experience economy, (Original Design Manufacturer) market. hopes to distinguish itself by developing tied in with digital content development. It also dominates the semiconductor • Agriculture – The Taiwanese government innovative business models in the fields chip supply chain. There are opportunities is investing £500 million in agriculture of voice and data transmission. • Education and skills development – Due for UK companies in cloud computing, and rural development by 2012 as to its relatively small geographical area e-health and mobile health, green IT, part of its High-End Agriculture and • Construction – The Taiwanese government and short supply of natural resources, telematics, software applications on Health Excellence Programme. This has announced a number of large-scale Taiwan’s economic progress hinges mobile devices and WiMAX. will concentrate on food safety and public infrastructure projects, which will largely on its ability to develop human traceability, genetic technology, leisure generate opportunities for UK companies resources. It is therefore strongly • Environment – As one of the most and floral exports. There are opportunities over the next eight years. The main committed to the improvement of densely populated islands in the world, for UK companies in: marketing and projects are: rapid transit networks in education and skills. Under the Intelligent Taiwan’s usable land area is very limited. consultancy; food safety and traceability; Taiwan’s main cities; railway mainline Taiwan project, launched in 2009, a total The Taiwanese government spends genetics and animal welfare; and upgrades; Kaohsiung Free Port and budget of £6.64 billion will be allocated around £14 million a year on tackling orchid‑growing joint ventures. Eco‑Park; the Asia‑Pacific Maritime to this by 2016, covering 13 major soil and groundwater contamination and Air Logistics Centre in Taichuang; individual project areas such as English- and this is set to double over the next • Clothing and accessories – Italian and Taoyuan International Air City; urban language learning, Continual Personal few years, adding to investments by French designer labels dominate the regeneration and rural revitalisation Development (CPD), IT education, the private sector. Taiwan is actively Taiwanese market, while the market for projects across the country; and an digital learning, vocational training and seeking international partners with young girls’ fashion is strongly influenced island‑wide sewage system. teaching-quality improvement in higher expertise in this field. In addition,

10 11 INTRODUCTION WHY Taiwan? (CONTINUED)

the Taiwan Environmental Protection • Food and drink – Food and drink is the Administration (EPA) focuses on five key fifth-largest industry in Taiwan and one areas: promoting sustainability; reducing of its fastest-growing sectors. Some 40 carbon emissions; recycling; eliminating per cent of goods consumed in Taiwan pollution and promoting healthy, are imported. The continued expansion of sustainable lifestyles. ‘upmarket’ supermarkets on the island has prompted importers to look further afield • Financial services – Taiwan’s financial for value-added products, particularly to services industry, which accounts for European countries. Currently, over 80 10 per cent of its GDP, has changed per cent of the items offered by these greatly in the past couple of decades, supermarkets are imported, creating becoming international and liberalised. opportunities for UK companies in: Currently, there are 15 financial holding ready-to-eat food and drinks; alcoholic companies and 37 domestic in beverages; confectionery; organic Taiwan (3,264 branches in total). Thirty products and health foods. two foreign banks have been granted licences to date, and have established • Healthcare – Taiwan imported around around 140 branches in Taiwan. Some £1.1 billion of medical devices in 39 securities investment trust enterprises, 2010. There are many opportunities 23 non-life insurance companies and for UK companies supplying high-end 29 life insurance companies currently pharmaceutical products and medical do business in Taiwan. UK financial equipment. There are also opportunities services firms active there include: HSBC, in healthcare informatics/telecare services Standard Chartered Bank, Barclays, and long-term care provision for the Schroders, Aberdeen, PCL Life and elderly and disabled, as Taiwan is an First-Aviva (a joint venture between ageing society. First Financial Holding and Aviva). High rates of savings and ongoing financial • Low carbon economy – Over the next liberalisation make Taiwan an attractive five years, the Taiwanese government market for capital. There are opportunities will invest more than £50 billion in for UK companies in wealth management, promoting the green economy. Fifty foreign currency securities exchange, pilot low carbon communities will be pension fund management, public private selected by the end of 2011 and six low partnership and financial services training. carbon cities by 2014, as part of a plan to reduce carbon emissions and gradually

12 13 INTRODUCTION WHY Taiwan? (CONTINUED)

turn Taiwan into a low carbon nation. • Transport – The Taiwanese government By 2020, the island will be divided has announced 12 prioritised public Market strengths into four low carbon living spheres in construction projects, with a total These are the essential facts that companies doing business in Taiwan need to know: northern, central, southern and eastern budget of £66.5 billion over the next Taiwan. There are opportunities for UK eight years. The first priority is to build • Taiwan is the world’s biggest manufacturer of computer-related products and companies involved in: green energy, a fast and efficient island-wide semiconductors. energy conservation installations and transportation network. There are • The World Economic Forum ranks Taiwan eighth in the world for R&D and industry support (solar PV, LED PV opportunities for UK companies in: 13th (of 133 economies) for global competitiveness. lighting, wind power, biomass, hydrogen consulting engineering, signalling, and fuel cell), energy communication and station design and rolling‑stock parts. • Taiwan’s economy grew by 8 per cent over three decades. information and electric vehicles. • Taiwan is strategically located at the heart of the Asia Pacific, around 90 miles For more details on these and other off the coast of and within easy reach of all major ASEAN • Marine – Taiwan’s yacht industry is commercial opportunities, talk to UKTI commercial centres. export-oriented and imported hardware Taiwan. components and accessories are widely • Since joining the World Trade Organisation in 2002, Taiwan has opened up its used in finished yachts. Potential domestic market to international investment. opportunities for UK companies include: • Taiwan has a strong trade and investment relationship with the UK – only two other hardware components and accessories/ European countries export more to Taiwan than the UK. Imports to the UK from auxiliaries; naval architecture/exterior and Taiwan were worth some £2.9 billion in 2010. interior design; deck hardware; energy saving and green power; and innovative superyacht equipment and services.

• Power – Taiwan recognises the importance of developing more green‑energy projects and welcomes the input of UK renewable energy suppliers. There are opportunities for companies that specialise in offshore wind power, biomass and marine energy. There are also significant opportunities for consultants specialising in energy privatisation.

14 15 INTRODUCTION RESEARCHING THE MARKET ABOUT THIS BUSINESS GUIDE WHERE TO BEGIN

The main objective of this Business Guide About UK Trade & Investment Doing business with Taiwan Desk research is to provide you with basic knowledge UK Trade & Investment (UKTI) is the General introductory business information about Taiwan – an overview of its economy, government department that can help may seem rather daunting for about Taiwan is readily available and business culture and potential opportunities you achieve your international business those new to the market, but companies can obtain a reasonable amount and an introduction to other relevant issues. potential. We combine the national of preliminary insight through desk research. Novice exporters, in particular, will find it resources of the Department for Business, taking a strategic approach a useful starting point. Further assistance Innovation & Skills (BIS) and the Foreign is the key. Economic research and sector analysis is available from the UKTI team in Taiwan. & Commonwealth Office’s (FCO) global can be obtained from a large number of Full contact details are available at the end network of Trade Development Staff, to leading consultancies, research agencies and of this Guide. help you successfully win business overseas. Companies should conduct public‑sector trade promotion organisations. The Taiwan Business Guide is intended We treat every business as an individual reliable research before Furthermore, the increasing use of to provide general business advice and – that’s why we provide a tailored service, venturing into business in any e-commerce and B2B websites in Taiwan should not be used as a substitute for with specialist support covering a wide has made it possible to identify, and gain market research, due diligence, or legal range of industries. new territory and Taiwan is access to, potential partners across the and professional services. no exception. Good research globe. A good place to start is the UKTI Our capacity-building services can make a website, www.ukti.gov.uk, which provides real difference to your business at a very saves money and improves detailed country and sector information. reasonable price. To use our services, your efficiency and performance Registration is free and offers additional firm may need to meet certain eligibility benefits, such as access to business criteria. Your International Trade Adviser right from the start. opportunity alerts and information updates. (or equivalent person in Scotland, Wales and Northern Ireland) will be able to explain in more depth what these criteria are and advise you on costs.

For more information, visit www.ukti.gov.uk

16 17 RESEARCHING THE MARKET WHERE TO BEGIN (Continued)

Consultation and bespoke research Overseas Market Introduction Service Events and seminars Questions to ask yourself before You should not rely solely on desk research. The Overseas Market Introduction Service UKTI organises events, seminars and you begin: Websites and online materials can be (OMIS) is a UKTI service available to workshops in the UK and Taiwan, covering out‑of-date and the quality and reliability companies interested in finding out more a wide range of business interests and • What are our business’ unique selling of content varies widely. Sometimes about an overseas market. In Taiwan, it can issues. Not only do these inform companies points? Is there likely to be a market you may simply be unable to find the assist you by undertaking tailored research about business opportunities and offer the for our product or service in Taiwan? information you’re looking for. This is using UKTI’s extensive network of dedicated latest market information, they also provide • Are there any legal barriers to our why it is essential to verify initial research researchers based across the country. a valuable platform for networking and business model? findings and conduct further investigations. sharing experiences with like-minded peers, • Whereabouts in Taiwan should we OMIS can provide: not to mention regular access to visiting start? Often this requires you to map out a • Market research and analysis Taiwanese delegations. • Do we have sufficient resources bespoke research brief with the help of - Sector reports (management time, project finance specialists, exploring what additional - Market initiatives Sign up to a forthcoming event by visiting and expenses) to fund our Taiwan information you might need to make an - Regulatory environment www.ukti.gov.uk project? effective entry into the market and how - Market opportunities • Who will be leading the project within you can make the contacts vital to success. Market visits and trade missions our company? • Identification of local contacts Visiting Taiwan is an invaluable part of the • Do we need to work with a partner UKTI offers a range of support services to - Agents process of market entry. You will experience in Taiwan to succeed? If so, can we UK businesses interested in researching the - Distributors the marketplace first-hand, and make the communicate effectively with them? Taiwanese market. - Suppliers contacts necessary to do business. This is • Have we evaluated business - Potential partners essential, but it will be much more effective risks (such as protecting our IP) Speaking to an expert with careful planning. and conducted research and due UKTI provides support for UK companies • In-market activities diligence? through a network of International Trade - Meeting arrangements UKTI organises regular trade missions • Do we know how to secure payments Teams based in the English regions. UKTI - Event organisation, such as workshops, to Taiwan where you can benefit from and get the right quality products? services are also available to companies in seminars, receptions, promotional group activities, in addition to your own Scotland, Wales and Northern Ireland. activities and product launches programme. It is unlikely that you will have the - Media relations and publicity answers to all these questions at the To arrange a consultation with your - Official premises and facilities OMIS can be used to support visits, outset and these “knowledge gaps” local International Trade Adviser, call providing bespoke meeting arrangements should form the basis of further research +44 (0)20 7215 8000 or use the database For more information about how OMIS with appropriate potential partners, and investigation. at www.ukti.gov.uk could help you in Taiwan, please contact agents and distributors, or with relevant your International Trade Adviser. government officials.

18 18 19 RESEARCHING THE MARKET HOW WE CAN HELP YOU

UKTI provides a wide range Overseas Market Introduction Service Export Communications Review (ECR) To contact UKTI in Taiwan directly: (OMIS) is a chargeable UKTI-led, tailored assesses the way companies communicate UKTI Taiwan of trade development service to access market and industry with overseas customers and makes practical British Trade & Cultural Office services designed to help information, identify potential contacts or recommendations for improvement. The 26F, 9-11 Song Gao Road assist in planning an event. service is managed for UKTI by the British Taipei, 11073 UK companies succeed Chambers of Commerce. Taiwan. in international markets. Passport to Export provides new and Tel: +886 (2) 8758 2088 inexperienced exporters with the training, Export Marketing Research Scheme (EMRS) Fax: +886 (2) 8758 2050 Some of these services are planning advice and ongoing support they offers support, advice and grant funding Email: [email protected] provided at zero or heavily need to succeed overseas. to eligible companies wishing to research http://ukintaiwan.fco.gov.uk a potential export market. The service is subsidised cost. All are Gateway to Global Growth is a free service managed for UKTI by the British Chambers delivered by experts with to experienced exporters. It offers a strategic of Commerce. review, planning advice and support to help extensive experience of companies build on their previous success FCO Country Updates provide authoritative overseas trade and detailed and develop new overseas markets. analyses of emerging markets and identify key issues relevant to UK businesses. The knowledge of the global Events and seminars are held across the UK updates are compiled by British embassies marketplace. If you are and Taiwan. They include specific sector- across the world, which have access to based activities. high-level government and business considering doing business contacts. www.fco.gov.uk in Taiwan, talk to us about Trade missions are organised to help UK companies visit the market they’re For more information on any of these how we can help you achieve interested in and talk face-to-face with services, please contact your local your goals. prospective business partners. UKTI also International Trade Team. organises missions in the UK to allow overseas delegates to meet with potential UK partners or investors.

Business opportunities can be emailed directly into your in-box, highlighting hot leads in your chosen overseas market. Companies can sign up for this free service by visiting www.ukti.gov.uk

20 21 Market Entry Choosing the right LOCATION

Geography Centres of business Taiwan is located 100 miles across the Taiwan has five special municipalities Taiwan Strait from mainland China, (Taipei, Xinbei, Taichung, and between Japan and the Philippines. It is an Kaohsiung), which are home to more than island nation, comprising the main island 13.7 million residents. The most important of Taiwan, along with Penghu, and commercial centres are Taipei, to the north, Matsu. Taiwan is 250 miles long and 88 and Kaohsiung to the south. miles across – roughly the size of Wales. Taipei is the capital of Taiwan and the A rugged mountain range, the second country’s political, economic and cultural highest in Asia after the Himalayas, covers heart. The Taipei metropolitan area (which more than half of the main island. The includes Taipei, Xinbei and ) has tallest mountain is Yushan, or “Jade a population of over 6.7 million people. Mountain”, which rises to 12,966 feet The city is served by two airports, Taipei (3,952 metres) above sea level and stands Songshan and Taiwan Taoyuan, and has at the heart of Yushan National Park. high-speed rail and road links to the rest Approximately 60 per cent of Taiwan is of the island. Taipei also has a modern and covered by forest. Having such a limited efficient public transport system, with five Taichung is situated in west-central Science and Industrial Park, usable land area makes it the second most metro lines in operation. Many of Taiwan’s Taiwan. The city’s Industrial Zone has located in Hsinchu City in the north, densely populated country in the world. leading companies have their headquarters the World Trade Centre building as its is one of the world’s leading centres of there, including ASUS, Chunghwa Telecom, focal point, which plays host to national semiconductor manufacturing. More Climate Mandarin Airlines and Tatung. For more and international exhibitions. Taichung is than 400 high-tech companies have a The climate of Taiwan is sub-tropical, information visit http://english.taipei.gov.tw home to Giant Bicycles and Nike’s Asian presence there, including the world’s except for the extreme south which is design centre and, with a population of top two semiconductor manufacturers, tropical. Occasionally, typhoons hit the Kaohsiung is the second-largest city 2.6 million, is the third-largest city in the Taiwan Semiconductor Manufacturing island during May to September. Apart in Taiwan, with a population of 2.9 country. For more information visit Company and United Microelectronics from this, Taiwan’s weather is temperate, million people. It is one of five special http://english.taichung.gov.tw/internet/english Corporation. Taiwan has the world’s with average temperatures of 22°C municipalities in Taiwan and a centre for highest concentration of 12-inch (summer temperatures are around 35°C manufacturing, refining, shipbuilding, wafer‑producing fabs, most of which in July; winter temperatures are around light and heavy industries. Kaohsiung are located at the Park. Close by are 12°C in January). International Airport is the second-largest National Chiao Tung University and airport in Taiwan, while its port is the National Tsing Hua University. country’s biggest. The city was host of the 2009 World Games and is home to the Republic of China navy.

22 23 Market Entry Establishing a presence

Direct sales into Taiwan can be difficult. between the cost of purchasing products Taiwanese taxes and must file tax returns • Do they also represent any competing For most UK companies, it is more effective and selling them on (the profit) forms the on behalf of the foreign company. companies/products? to approach the market through local distributor’s income. • Can you communicate effectively with business partners (agents and distributors), Given these considerations, you need to your counterpart? who have the ability to distribute and Entering a market by working with an agent select agents and distributors carefully. provide locally based technical support. or distributor can have several advantages. Your local UKTI office can advise you on Once a working relationship has been Licensing and franchising are also It reduces time and costs, and companies how to commission a tailored report for established, the agent/distributor needs to increasingly popular options. gain the local knowledge and networks of your specific needs and can also provide a be managed actively by you: the agent/distributor in question. However, list of the best potential partners. A visit It is possible to set up a company office, there are also some drawbacks. Employing to Taiwan will enable you to meet some • visiting as regularly as is practicable at branch office, representative office, a third party results in an additional cost of them and appoint a local contact. a senior management level. This shows job‑site office or joint venture in Taiwan. to your products and you may also lose interest in, and commitment to, the Mergers and acquisitions are also an some control and visibility over sales and Suggested questions to ask agents/distributors agent and the market. It will also provide option, although you need to be aware of marketing. It can also have implications are listed below. You should also conduct you with an opportunity to learn about fair trade and anti-trust issues. Refer to for intellectual property rights protection, due diligence to verify this information. conditions in the market and see how page 26 for full descriptions of each of increasing the risk of your product being your products are doing these options. If you are planning to do copied or counterfeited. Background • working closely with the agent to show business in Taiwan, consult a lawyer about • Company size, history and ownership them how they can profit from your the possible options and how you plan In Taiwan, the Statute for Encouraging (private or state-owned) products to conduct the operation. UKTI can help Foreign Profit-Seeking Enterprises to • Quality and quantity of the sales force • helping to prepare marketing and sales you to identify local and international law Establish Distribution Centres was passed • Customer feedback and trade/bank plans for the agent and consultancy firms who can help. We in 2001. This sets out the regulations for references • providing regular training for sales staff can also provide validated lists of agents/ establishing international distribution and after-sales training for technical staff potential partners, key market players and agreements and logistics centres and Distribution channels in the UK potential customers; approach contacts on authorises tax incentives for foreign • Regional coverage • linking performance to incentives and your behalf to establish if they are interested investors. The Taiwanese Civil Code and the • Types of outlets covered and frequency agreeing milestone targets. in working with you; as well as arranging Fair Trade Law govern the management of of visits appointments and organising events. distributorships, while agency agreements • Transportation and warehousing facilities There is additional guidance on working are governed by the Civil Code alone. You with Taiwanese partners in later sections of Agents and distributors need to ensure that you organise tax affairs Are they right for you? this Guide. An agent is a company’s direct correctly, as agents are considered business • Does the agent/distributor have a representative in a market and is paid agents for income-tax purposes if they sign genuine interest in representing your commission, whereas a distributor buys contracts, accept purchase orders and store product? products from the manufacturer and sells and dispatch goods on behalf of a foreign • Can they benefit from actively promoting them on to customers. The difference company. A business agent is subject to your interests (is it a win-win)?

24 25 Market Entry Establishing A Presence (CONTINUED)

Licensing and franchising have a Taiwanese partner. However, this Licensing and franchising are alternative has now changed, thanks to the Taiwanese approaches to selling products and services, government’s continued efforts to ease but the exact business model will vary, regulations and encourage more foreign depending on the sector and company. investors in most industry sectors, such as A business may license the use of its consumer goods, banking and retailing. copyright, trademark, patent, technological For sectors like infrastructure, defence and knowledge and other intellectual property safety‑related industries, UK companies rights to manufacture and sell products or would still need a local partner. Please render services. Such licences need not be contact UKTI Taiwan for advice. government-approved, although patent and trademark licences must be reported to the Deciding what constitutes an appropriate Taiwan Intellectual Property Office. UKTI in legal entity for your business depends on Taiwan can provide detailed guidance on your intended scope. There are a number this, and franchising options. of legal structures that allow foreign investors to do business in Taiwan, as Establishing a permanent presence outlined on page 28. Each has its own Having a permanent in-market presence advantages, restrictions and drawbacks, can have several benefits, including: so it is essential to choose the option best suited to your aims. • demonstrating commitment • cutting out the ‘middle man’, providing It is usually more difficult to alter a direct access to the end customer/ business structure once a legal entity has supplier been incorporated or established, so it is • giving direct control over corporate essential to seek professional advice during strategy and activities the early stages of planning. UKTI can • enabling trading in the local currency offer dedicated one-to-one consulting and easing the conduct of business and incorporation services to assist UK transactions companies establishing various kinds of • fulfilling a legal requirement to have a permanent presence in Taiwan. Please permanent presence (relevant in certain contact us for more details. business activities and sectors).

In the past, foreign investors who wanted to do business in Taiwan were required to

26 27 Market Entry Establishing A Presence (CONTINUED)

Legal structures Branch offices Foreign investors in Taiwan can choose Foreign investors wishing to open a branch whether to set up a company office, a office must apply for a Certificate of representative office, a branch office Recognition and then obtain a Certificate or a job-site office, according to their of PSE (Profit-Seeking Enterprise) from planned activities. A brief description the relevant Taiwanese government of each option is provided below. The agencies. Special permits are required PricewaterhouseCoopers guide Doing for certain types of businesses. For more Business in Taiwan (www.pwc.com/tw/en/ details, contact the MOEA. Branch offices publications/doing-business-in-taiwan. can be used for companies that do not jhtml) contains detailed information plan to have their head office in Taiwan. about setting up a business in Taiwan. There is no minimum working capital Further information is also available from requirement if the branch’s activities relate UKTI in Taiwan. to international trade, but the head office must remit sufficient funds to enable the Job-site offices is acceptable for a JV structure to be one in Representative offices branch to operate. It must also appoint Job-site offices are ideal for foreign which there are two or more distinct legal Representative offices are often the first a branch manager and a litigious and investors who intend to contract long- entities that maintain separate identities. step taken by foreign companies when non‑litigious representative, who can either term construction work in Taiwan (for In certain government contracts, for establishing a permanent presence in Taiwan. be Taiwanese citizens or foreign nationals. example, foreign construction companies example, JV partners issue invoices and are They provide a vehicle through which the that undertake government projects paid separately, based on the percentage foreign investor can undertake activities Company offices there). A taxable, though not a legal, of participation. Each party files a tax such as market research, customer liaison Foreign investors need to obtain approval entity, job-site offices need only apply return and pays its taxes separately. and support. Representative offices can from the MOEA’s Investment Commission for business registration, as opposed to also organise business visits from company to set up a company in Taiwan. Once corporate registration. They are required Mergers and acquisitions headquarters, which can make the process approval has been obtained, it is possible to pay business tax and income tax and The Financial Institution Mergers Act and of obtaining business visas for visitors for foreign investors, with the exception are permitted to make purchases and issue the Financial Holding Company Act govern much easier. Public-relations work and local of those working in certain restricted government uniform invoices. consolidation among financial institutions administration are also permitted. However, industries, to establish an unlimited in Taiwan. Other industries are governed a representative office cannot conduct sales company, an unlimited company with Joint ventures by the Business Mergers and Acquisitions activities. This means they cannot sign limited-liability shareholders, a limited The term “joint venture” is not statutorily Act. Under certain circumstances, mergers contracts, receive income or issue invoices company, or a company limited by shares. defined in Taiwanese law. In its broadest may need to be submitted to Taiwan’s and tax receipts. Applications to establish sense, a joint venture (JV) is a co-operation Fair Trade Commission. There may be tax a representative office should be made to between two or more parties in a common incentives available if the proposed merger/ the Taiwanese Ministry of Economic Affairs undertaking. Usually this refers to an acquisition meets certain criteria. (MOEA, www.moea.gov.tw). incorporated JV company, but in Taiwan it

28 29 Market Entry Establishing A Presence (CONTINUED)

Foreign firms wishing to invest in or merge • Ministry of Finance: administration with companies in Taiwan should contact of taxation and customs the MOEA’s Investment Commission. www.mof.gov.tw

Regulatory agencies • Fair Trade Commission: competition For UK companies considering establishing policy and fair trade a presence in Taiwan, the following www.ftc.gov.tw regulatory agencies provide useful sources of information: • Food and Drug Administration: established on 1 January 2010 for the • Ministry of Economic Affairs (MOEA): licensing and inspection of food and issues business laws and regulations. pharmaceutical products Agencies include the Department of www.fda.gov.tw Commerce, the Investment Commission and the Industrial Development Bureau • Environmental Protection Administration: www.moea.gov.tw sets pollution control regulations and protects the natural environment • Bureau of Foreign Trade: an agency www.epa.gov.tw of the MOEA, responsible for executing trade policies and promoting trade • Council for Labour Affairs: administers www.trade.gov.tw labour policies and regulations www.cla.gov.tw • Taiwan Intellectual Property Office: for patent, trademark and copyright issues • Invest in Taiwan Office: a ‘one-stop shop’ www.tipo.gov.tw for companies looking to invest or register in Taiwan • Financial Supervisory Commission: http://investtaiwan.nat.gov.tw/library/ supervises banking, securities and main_eng_general.jsp insurance industries www.fsc.gov.tw

30 31 Getting Started Getting Started FINDING A CUSTOMER OR PARTNER Due Diligence

Once you have identified the Tried and trusted methods include: Many of the problems that foreign companies responsible person is, so find out who you encounter when doing business in Taiwan are dealing with. best market-entry option for • Overseas Market Introduction Service could have been avoided by carrying out some your company in Taiwan, the (OMIS) due diligence at the outset. The shareholders of the company are responsible OMIS can tailor-make a list of potential for the amount of liability as stated as registered next step is to find potential customers, agents, distributors or partners There are different levels of due diligence, capital on the business licence. You can check customers or partners. and arrange a programme of meetings with appropriate for different situations. If your whether or not the registered capital has been them when you visit Taiwan. OMIS can also sole interest is in exporting, the best proof paid up by using a firm of accountants to get be used to arrange a seminar or product- of a Taiwanese company’s ability to pay is a a Capital Verification Report. introduction event in Taiwan, which can be letter of credit from the bank. If a company an effective way of getting your message can produce this, you do not need to check If you want to establish a business across to a number of potential customers. its financial standing as the bank will already relationship that goes beyond exporting, have done so. you will need to carry out further research. • Trade shows and exhibitions It is not enough simply to obtain a copy of Trade shows and exhibitions take place in A very simple piece of due diligence is to a company’s accounts, as they may not be Taiwan throughout the year and can be an obtain a copy of a company’s business accurate. Accounts in Taiwan are unlikely excellent way to meet potential customers licence. This will tell you the following: to be audited to the standards routinely face-to-face. Arranging appointments in expected in the UK, and companies may advance with pre-identified contacts is • the legal representative of the company have different sets of accounts for different essential if you want to make effective • the name and address of the company audiences, so it is advisable to use such data use of your time. • the amount of registered capital, which is in conjunction with information obtained also its limited liability from elsewhere. • UKTI-supported trade missions • the type of company UKTI supports a large number of trade • the business scope Good-quality consultancy and assistance missions to Taiwan, organised by trade • the date the company was established and are available from firms resident in Taiwan associations and local chambers of the period covered by the licence. and the UK. These companies can carry out commerce. They provide an excellent operational, financial, legal and technical opportunity for businesses to visit the You should check that the information due-diligence checks, typically by looking country to find out how business is done contained in the business licence matches at the actual operation of the business, and generate valuable sales leads. what you already know and, if it doesn’t, and building up a more accurate picture then find out why. If you want to verify by carefully interviewing people who work the information externally, you should go in and with the firm. UKTI has lists of through the Commercial Department at consultancies based in the UK and Taiwan the MOEA or a local lawyer. You will have that can provide due-diligence checks on more security if you know who the legally Taiwanese companies.

32 33 Getting Started Employing staff

Taiwan has a motivated and highly You will find details of labour-related • Recruitment companies such as Adecco Overseas training educated workforce. Workers here will health insurance, pensions and labour have offices in Taiwan. (www.adecco. Offering employees the opportunity to have undergone nine years of compulsory regulations in the PricewaterhouseCoopers com.tw/eng). Local people tend to use train overseas is very attractive at all levels. education, with extensive opportunities for guide Doing Business in Taiwan websites to find jobs, such as 104 Job Make sure that in return for providing such higher education in the country’s colleges (www.pwc.com/tw/en/publications/doing- Bank (www.104.com.tw). training, employees make a commitment and universities. Taiwan is world-renowned business-in-taiwan.jhtml) • Contact the British Trade and Cultural to stay with your company for a specified for its research in physics, engineering, Office, the British Chamber of Commerce period of time. agriculture, medicine, biotechnology, Recruitment channels or educational institutes. literature and art history. Taiwanese There are several channels for recruiting A word of caution: A lot of smaller workers are characterised by their diligence staff in Taiwan, particularly web‑based Recruitment process companies setting up an office in Taiwan and interest in learning and development channels given the high internet When you are recruiting in Taiwan, make may well just employ one person to deal at every stage of their career path. penetration in the country: sure that you carry out all the normal steps with all aspects of running the business. • Advertise jobs to UK graduates on the that you would if hiring in the UK. Although this may be convenient and Taiwan has faced labour shortages in UK’s official graduate careers website, cost-effective, it might not be the best way recent years, due to the fast pace of www.prospects.ac.uk/taiwan_job_market. • Ensure that candidates’ technical and to run your operation. If your employee is economic growth. Consequently, it is htm linguistic capabilities match their claims not familiar with the rules and regulations keen to attract high-quality skills from • Online job services, such as and that you hire staff at the right level pertaining to running an international overseas and has lifted any restrictions on http://hirecruit.nat.gov.tw/english for the role. office or business in Taiwan, then you employing foreign workers. By July 2009, www.jobera.com and may soon have to deal with issues of foreign workers accounted for 3.2 per cent www.taiwanesecareers.com • Carry out due diligence. This includes non‑compliance, which could prove very of Taiwan’s total workforce. • Classified job adverts in English are conducting personal background checks costly. Moreover, having one person in available in English-language daily and checking all references before control of all financial and legal aspects The Labour Standards Act stipulates newspapers, such as The China Post, offering the position. of the business is obviously risky. minimum standards for working conditions Taiwan News and Taipei Times in Taiwan, including minimum wages, • Other newspapers (some of which have • Offer appropriate remuneration. working hours, holidays and severance English-language pages) include: United Taiwanese labour regulations stipulate pay. The country has established a labour Daily News, China Times and Liberty that wages must not be less than the management committee whose aim is Times statutory minimum and must be paid at to promote good employer-employee • Trade media for key industry sectors, least twice a month, or in advance on a collaboration and establish labour welfare such as DIGITIMES, Business Today monthly basis. The Council for Labour schemes. More information is available Weekly, International Trade Biweekly Affairs is responsible for administering at http://investtaiwan.nat.gov.tw/matter/ and Business Next. For industry-specific policies and issuing work permits for show_eng.jsp?ID=11&MID=3 periodicals, please contact the relevant foreign professionals, www.cla.gov.tw. UKTI Commercial Officer in Taiwan Talk to UKTI Taiwan for advice on appropriate salary levels for particular types of employment. 34 35 Getting Started language

Mandarin Chinese is the official business Working hours language of Taiwan. However, Chinese Traditional script is used rather than Working hours in Taiwan are: Chinese Simplified script – the latter only 9.00 to 18.00 Monday to Friday being used in mainland China. English is widely spoken. Public holidays Public holidays in Taiwan reflect While high-level business meetings may be both Chinese and Western conducted mainly in English, your hosts influences. Traditional festivals will appreciate it if you use their language (holidays) include: whenever possible. When speaking in • Chinese New Year – Lunar New English, remember to speak slowly and to Year’s Eve and first three days of repeat key points. In order to save face, the first lunar month your Taiwanese hosts will not necessarily • Dragon Boat Festival – fifth day say that they don’t understand something. of the fifth lunar month • Mid-Autumn Festival – 15th day Interpreters may be required for business of the eighth lunar month meetings, particularly outside Taipei and other major cities. All important Other official holidays include: negotiations should be carried out with an • 1 January – Founding Day interpreter present so as to avoid doubt. • 28 February – Peace Memorial It is also advisable to have all written Day documents translated into Mandarin • 4 April – Children’s Day Chinese. UKTI can help you find a • 5 April – Tomb Sweeping Day translator or interpreter. • 10 October – National Day

36 37 Getting Started marketing

To reflect the fast-paced nature of the that would suit the launch of their more than 170 radio stations, including Taiwanese marketplace, and its highly product/s. UKTI in Taiwan can advise on the Broadcasting Corporation of China, sophisticated media, your marketing the most appropriate venues to announce CBS Radio Taiwan International and the strategy will need to be reassessed, the launch or presence of UK goods and English-language station International polished and refined on a continual basis. services in the country. Community Radio Taipei (ICRT).

Sales literature The media Newspapers Trade shows and exhibitions are a good Taiwan’s media is one of the freest in Asia. Major daily newspapers include: United way of meeting potential new customers, Laws which prohibit the promotion of Daily News, China Times, Liberty Times, but you still need to persuade them to independence from China or communism China Post, Taipei Times and Taiwan News. buy your product. Sales literature is more are not generally enforced. Consequently, effective if it’s in Mandarin Chinese as well there are hundreds of privately owned News agency as English and you need to decide what newspapers expressing different views, as Focus Taiwan is the English-language service kind of advertising is appropriate. well as multi-channel cable and terrestrial of the state-run Central News Agency. TV and more than 170 radio stations. Product and service adaptations According to Internet World Stats, there Day-to-day communications You may need to adapt your product or were more than 15 million internet users As with the UK, business people in Taiwan service to meet the needs of the Taiwanese in Taiwan in June 2009 and there are communicate mainly via the telephone, market. Marketing research can help you to plans to integrate telecoms, the internet mobile phone and emails. If you haven’t identify any adaptations you need to make. and broadcasting by 2014. You may wish met with your contacts face-to-face, it is to work with local marketing specialists advisable to write a letter or send an email Branding who will understand the most appropriate to introduce yourself. There are no particular considerations channels for reaching your target market. concerning branding in Taiwan. You will UKTI in Taiwan can provide contact details. need to check with the MOEA to see if the brand name or logo can be registered TV and radio in Taiwan. Then, consult with experts in The main commercial TV channels in branding or advertising agencies who will Taiwan are China Television Company be able to advise on the public perception (CTV), Chinese Television System (CTS), of certain words or images. Taiwan Television Enterprise (TTV) and Formosa Television (FTV). Cable TV news Sales promotion channels such as TVBS, CTiTV and ETTV Companies that appoint local partners can are also influential. In addition, there usually be guided by them with regards to is the Public Television Service (PTS), a the type of advertising and sales promotion non-profit public broadcaster. There are

38 39 Getting Started INTERPRETERS

While English is widely spoken in To get the best out of your interpreter: international businesses in Taiwan, you will generally need to employ interpreters • Hire a well-briefed professional • Avoid jargon, unless you know your during formal meetings and negotiations interpreter. Though this is likely to be interpreter is familiar with the terminology. to prevent any misunderstandings. expensive, it will be money well spent. • Listen to how your interpreter interprets There are two forms of interpreting. • Have your own interpreter available, even what you have just said. If you have given Consecutive interpreting means you speak if your Taiwanese counterparts have one a lengthy explanation but the interpreter and then your interpreter speaks: this is the for their side. With your own interpreter, translates it into only a few words, it may usual form for meetings, discussions and you should also be able to get some be that they have not fully understood. negotiations. Simultaneous interpreting post-meeting feedback concerning the Or they may be wary of passing on a involves the immediate translation of your nuances of what was said (and – just as message that is too blunt and will not be words as you speak them. This requires importantly – not said). well received by the audience. special equipment and can be expensive. It is generally used only for large seminars and • Try to involve your interpreter at every • Make sure that your message is getting conferences. Interpreting is a skill requiring stage of your pre-meeting arrangements. through clearly and in a tone that will not professional training. Just because someone The quality of interpretation will improve cause resentment. is fluent in English and Mandarin Chinese, greatly if you provide adequate briefing it does not necessarily mean that they will on the subject matter. Ensure your A list of translators and interpreters is make a good interpreter. interpreter understands what you are available on request from UKTI in Taiwan. trying to achieve. If you are giving a speech or presentation, remember that the need to interpret • Speak clearly and evenly with regular everything will cut your speaking time breaks for interpretation. Don’t ramble on approximately in half (unless using for several paragraphs without pause. Your simultaneous interpreting). It is essential interpreter will find it hard to remember to ensure that the interpreter can cope everything you have said, let alone with any technical or specialist terms in the interpret all your points. Conversely, don’t presentation. If you are giving a speech, speak in short phrases and unfinished give the interpreter the text well in advance sentences. Your interpreter may find it and forewarn them of any changes. impossible to translate the meaning if you have left a sentence hanging.

40 41 Business Issues and Considerations Business Issues and Considerations Business etiquette

The Taiwanese market is a favourite among Face Guanxi (‘connections’) Your approach should be formal but foreign direct investors. However, while the There is also the concept of “face” As in mainland China, Taiwanese business friendly, although avoid making jokes as country’s thriving economy, liberalising (mien-tzu), which is found across Asia. relationships rely on guanxi (pronounced this could be interpreted as a lack of respect marketplace and widespread use of English strive for harmony in gwan shee), which essentially means social for your host. The hierarchical structure of in business makes it an appealing choice their business and personal relationships. or business connections based on mutual Taiwanese companies means it is important for UK investors, there are some significant To prevent loss of face, they will avoid interest or benefit.Guanxi opens doors to show respect for authority. Ideally, the cultural differences and challenges to be confrontation or will tell others what they and smooths the business process. It is most senior person in the team should enter aware of. want to hear rather than tackling issues therefore essential to spend time getting to the room first and greet the most senior head on. For example, rather than say know your business contacts and building Taiwanese representative. Always greet older Confucian values “no”, they might say “I’ll try.” This allows a strong relationship with them through or more senior people first. Make sure that Taiwanese society operates according to both the person making the request and regular and ongoing contact. you show due respect and use people’s Confucian values. These state that people the person turning it down to save face titles correctly. Address people by their title should respect authority and the collective, and maintain harmony in the relationship. You will find being introduced to a company and surname, unless you are invited to use behave virtuously, work and learn hard, Some Westerners can find this approach by a trusted third party, such as the British their first name. If a person does not have avoid extremes and live moderately. Taiwan confusing. Try rephrasing the question in Embassy, more effective than going in cold a corporate or government title, use the is a collectivist society. People treat others different ways so you can compare the – UKTI in Taiwan can help you here. If you honorific Mr, Miss or Madame, followed by with respect regardless of their personal answers you get. If you do cause someone make a mistake in business, always own up their surname. Leaders should sit opposite feelings and do not do anything to cause to lose face, for example, by embarrassing to it and demonstrate what you are doing to one another around the table. someone else personal embarrassment. You them, you can restore their dignity by put it right. will find that, if you can demonstrate these saying something like “Perhaps I didn’t Handshakes qualities, you will be more successful in explain myself clearly” or “I have done the Meetings A handshake is the most common form of your business relationships. same thing myself.” Meetings in Taiwan are generally loosely greeting when doing business in Taiwan. structured and may not stick to the Handshakes are softer than in some other planned agenda. They are as much about countries and your Taiwanese host may building relationships as they are about lower his eyes as a sign of respect. Men discussing business, so be prepared to should wait for women to extend their spend time on non-business topics. hand first. Never use your index finger to Meetings may extend well beyond the point at somebody. agreed time as Taiwanese business people regard concluding the meeting Body language satisfactorily as more important than You should offer and receive documents sticking to a particular timescale. It with your right hand, and food with both is worth remembering this if you are hands. Avoid showing the soles of your feet scheduling several meetings in one day. or pointing your foot at your host when crossing your legs as this is considered rude.

42 43 Business Issues and Considerations Business etiquette (CONTINUED)

Attire Business cards It is important that all gifts are carefully Taiwanese people tend to dress smartly in Business cards are exchanged, using both wrapped in quality paper - red, pink and business. Suits are recommended, or at least hands, after the initial introductions have yellow are considered auspicious colours, a jacket and tie. Tight skirts, low necklines been made. You should have one side of but white, blue or black should be avoided. and sleeveless tops should be avoided. your card translated into Mandarin Chinese There are certain cultural considerations and present it to your host with the to bear in mind. Do not give odd numbers Hierarchy translated side uppermost. Be sure to treat of gifts, or four of anything, as four is Hierarchy is an important concept in someone’s business card with respect. You considered unlucky. Also, try to avoid Taiwan. Please refer to pg 43 for details of should examine it before putting it away giving a clock or umbrella as a gift because how you should conduct business meetings and never write on someone’s card in their they are associated with bad luck. with due regard for peoples’ experience presence. One good tip is to ask a question and seniority. based on the information on the card. The gift is likely to be refused at first as a gesture of politeness. Attempt to give Names and titles Communication style the gift again, but do not force the issue. When addressing someone in business you The Taiwanese style of communicating You should give and receive a gift with should use their professional titles (professor, is indirect. They will take great care to both hands and it is customary to leave doctor, engineer) and honorific titles. avoid causing offence and, if they disagree it unopened when you are with the giver. with something, they will simply remain Gifts should always be reciprocated at Women in business silent. You need to listen patiently to what the same level – if not immediately then Women are an important part of the is being said (and not said) and avoid shortly afterwards. Taiwanese business environment and there becoming visibly frustrated or irritated. are no special considerations, other than Allow plenty of time for negotiations and Dining that regarding handshakes. Businesswomen remain dignified throughout. Whereas in Taiwanese people prefer to entertain in in Taiwan conform to the same types of the UK brevity is valued, in Taiwan it may public places rather than in their home. formalities as men. be interpreted as rudeness. If you are invited into your host’s home, therefore, you should consider it a great Punctuality Gift-giving honour and behave appropriately. When engaged in a business relationship in Giving small gifts to business Taiwan, you should ensure that delivery times acquaintances is common in Taiwan. When are clear and that you act quickly to remedy visiting the country, it may be useful to any problems. You can confirm meeting times bring a number of souvenir items, such as via email or phone, one day beforehand. English bone china, company pens or silk ties to give away on suitable occasions. High-quality Scotch whisky would normally make a welcome gift for valued contacts.

44 45 Business Issues and Considerations Intellectual property rights (IPR)

After its accession to the World Trade Organisation in 2002, Taiwan set about bringing its intellectual property laws up to the standard of the Agreement on Trade-Related Intellectual Property Rights (TRIP). The administration of patent, trademark and copyright laws falls under the authority of the Taiwan Intellectual Property Office (TIPO), part of the MOEA. For detailed information, contact TIPO or UKTI in Taiwan.

Taiwan Intellectual Property Office 3F, 185 Hsinhai Road, Sec.2 Taipei 10637 Taiwan. Tel: +886 (2) 2738-0007 www.tipo.gov.tw

46 47 Business Issues and Considerations Business Issues and Considerations Procurement Regulations, Incentives and Tax

Details of procurement opportunities for The Taiwanese government is committed Investment incentives the central government in Taiwan are to attracting foreign direct investment The Taiwanese government offers various available via the country’s e-government and the market is continuing to liberalise. incentives to make the market more procurement system: Fewer than 1 per cent of manufacturing attractive to foreign investors, generally http://web.pcc.gov.tw/tps/pss/tender. companies and 5 per cent of service in the form of tax breaks. The Statute do?method=goNews industries remain closed to overseas for Upgrading Industries (SUI), which investors. In particular, the Global Net administered these incentives, expired at Local governments have different Project will enable UK companies to the end of 2009. It will be replaced by a procurement systems. Contact UKTI Taiwan take advantage of greater cross-strait new Statute for Industrial Innovation. This for further information. co‑operation between Taiwan and China. will provide reduced tax rates for eligible companies, along with tax incentives Foreign investors must obtain foreign for R&D, skills development, operating investment approval (FIA) from the headquarters and international logistics Investment Commission of the MOEA. This and distribution centres in Taiwan. entails submitting an investment plan and There are also incentives available under relevant documentation. Approval may be the Statute for Investment by Foreign granted subject to certain conditions and Nationals/Overseas Chinese, the Business restrictions. Once a company qualifies for Mergers and Acquisitions Act, the Financial FIA status, it will be entitled to certain Institutions Merger Act and other laws. For benefits and incentives, such as permission more information talk to UKTI in Taiwan. to repatriate equity and loan investments, profits, interest and capital gains. Tax Taiwan aspires to a simple low-tax system. Details of regulations, incentives and In June 2008, the Taiwanese government tax related to overseas investment are formed a Tax Reform Committee which available on the Invest Taiwan website. made various recommendations relating to http://investtaiwan.nat.gov.tw/matter/ tax reforms. Among the key changes was a show_eng.jsp?ID=8&MID=3 reduction in the rate of corporate income tax from 25 per cent to 20 per cent, effective from 1 January 2010. The aim was to combat any negative effects from the expiry of the SUI and to make Taiwan a more attractive environment for investors.

48 49 Business Issues and Considerations Regulations, Incentives and Tax (Continued)

The Tax Reform Committee ceased Customs and regulations Labelling and packaging regulations The usage, effective date, method of operations at the end of 2009, but the Taiwanese Commodity Labelling Law application and preservation and other Taiwanese government has pledged further Value Added Tax (VAT) sets out the general requirements for the necessary information must also appear reforms. A monthly publication from Value Added Tax is known as Business Tax labelling of any merchandise that is not if the commodity is considered dangerous; PricewaterhouseCoopers called Taiwan Tax in Taiwan. The receiver of imported goods covered by specific regulations. It requires has a limited time effectiveness; is related Updates provides an up-to-date picture of is responsible for paying the tax, which that labels in Chinese are affixed to the to public health and safety; has a special Taiwan’s changing tax environment. is 5 per cent calculated against the total commodity itself, to the inner and outer property; or has to be handled in a amount of duty-paying value, customs packing, or on the instruction sheet, special way. Exchange controls duty and harbour construction dues. If the showing information such as the name All foreign-exchange transactions are goods are subject to commodity tax, the of the commodity, composition, weight, administered by the Central Bank of formula to calculate business tax will also volume, quantity, specification, usage, the Republic of China (Taiwan). This include the cost of the commodity tax. place of origin and date of manufacture. imposes a limit of US$50 million per year for business entities and US$5 million Sales tax per year for resident individuals on any Foreign companies that do not have any foreign‑exchange transfer, inward or offices in Taiwan pay 20 per cent sales outward, other than trading or service tax (i.e. 20 per cent of the total invoice revenue. Certain exchange transactions price). If a UK company can provide a GUI must be reported to the Central Bank. (Government Unified Invoice) then it pays only 25 per cent tax of the net profit they make on the local contract. Branch offices, representative offices and Taiwanese agents can issue GUIs.

Export documentation It is essential to provide the correct documentation when exporting to Taiwan. UKTI in Taiwan can provide guidance and information.

Import controls Taiwan publishes a List of Commodities Subject to Import Restrictions, which sets out the goods for which an import licence is required. UKTI in Taiwan can provide details.

50 51 Business Issues and Considerations Getting Paid and Financial Issues

Incoterms Hua Nan Commercial Bank Exporters will find Incoterms 2000 a useful Mega International Commercial Bank guide for specifying their obligations for Fubon Bank delivering goods safely in international Taishin Bank contracts. Incoterms provide guidance on Chinatrust Bank the commonly used terms in international trade. It is a must read for a company’s UK banks include: marketing and sales team. HSBC Standard Chartered Bank Terms of payment Getting your goods to Taiwan Dynamic International (www.dynamic- UK exporters are advised to insist on a Other major foreign banks include: freight-shipping.co.uk/worldwide/asia/ confirmed, irrevocable Letter of Credit. If ANZ By sea: Taiwan has four major international taiwan/shipping-freight-taiwan.html). commercial factors dictate the need for ports - Kaohsiung (the largest), Taichung, Freight-forwarding companies like these more favourable terms, it is recommended BNP Paribas Keelung and Taipei (due for completion in can provide advice on the best way to that you consider these only after a period 2011). The Port of Kaohsiung, in southern transport goods to Taiwan from the UK. It of successful relations, having established The Bank of East Asia Taiwan, has a sailing time to five of the takes approximately three to four weeks to mutual confidence. The Bank of New York largest Asia-Pacific ports (Hong Kong, do this by sea, but this will depend upon the The Bank of Tokyo-Mitsubishi UFJ Manila, Shanghai, Tokyo and Singapore) of level of service the company provides, and Letters of Credit are normally opened four Crédit Agricole Credit Suisse AG just over two days, making it an important the time it takes for custom clearance. to six weeks prior to the shipment date. hub for the region. The expiry date of the Letter of Credit DBS Bank Courier: There are many companies will be geared very much to the promised By air: Taiwan has two international providing courier services to Taiwan, delivery date. It is important, therefore, airports - Taoyuan (also known as Chiang including DHL and FedEx. UKTI in Taiwan that delivery promises are fulfilled or the of South Africa Kai-Shek) in the north and Kaohsiung in the can provide more information. Letter of Credit will expire. State Street Bank and Trust Company south. Taichung Ching Chuang Kang Airport Sumitomo Mitsui Banking Corporation operates mostly domestic flights and flights Postal parcel/express mail service: Banking UBS to outlying islands. Taipei Songshan Airport The Chunghwa Post Co. Ltd is Taiwan’s Opening hours is a mid-size commercial airport and official postal service. It has 23 large Banks in Taiwan are open between All commercial banks are authorised foreign military airbase. offices throughout the country, along with 09.00 to 15.30, Monday to Friday. exchange dealers. Licensed money changers 1,300 post offices. The service delivers are also found in urban centres, ports, Freight forwarding: Sea and air-freight standard letters, registered mail, parcels Major local banks include: airports and major shopping complexes. services to Taiwan are provided by a and express mail across Taiwan. range of companies, including Sea Wing www.post.gov.tw/post First Commercial Bank (www.seawing.co.uk/infoTaiwan.asp) and Chang Hwa Commercial Bank

52 53 Business Issues and Considerations Business Issues and Considerations Getting Paid and Financial Issues Insurance (Continued)

Currency information The private sector in the UK provides goods, major services and construction The currency of Taiwan is the new Taiwan There are no limits on the amount of credit insurance for exports of consumer projects that require longer credit packages dollar, commonly referred to as the yuán, foreign currency (notes and/or traveller’s products, raw materials and other similar or that are in riskier markets. The Export which can be written in either of two cheques) visitors may import. goods. Speak to your banker or insurance Credits Guarantee Department (ECGD), forms: an informal 元 or a formal 圓, (used broker for more information, or contact the a separate UK Government department interchangeably). Notes come in NT$2,000, British Insurance Brokers’ Association for that reports to the Secretary of State for NT$1,000, NT$500, NT$200 and NT$100 impartial advice. Business, Innovation & Skills, provides a denominations. Coins come in NT$50, NT$20, range of products for exporters of such NT$10, NT$5 and NT$1 denominations. British Insurance Brokers’ Association goods and services. Tel: +44 (0)870 950 1790 (consumer Visitors may take up to NT$40,000 into helpline) Export Credits Guarantee Department Taiwan, but will need a permit from the Email: [email protected] Tel: +44 (0)20 7512 7000 Ministry of Finance for the import of www.biba.org.uk Email: [email protected] anything higher than NT$8,000, as well www.ecgd.gov.uk as a permit to export anything more than Private-sector insurance has some NT$40,000. limitations, particularly for sales of capital

54 55 Business Issues and Considerations Business Issues and Considerations Management, Control Bribery and corruption and quality insurance

UK companies use a variety of quality Particular attention to detail should be Corruption remains an issue in Taiwan. The assurance and management-control paid when sourcing products from Taiwan. news, in June 2010, that three High Court techniques in Taiwan. These include Specifications can be easily misunderstood, judges and a prosecutor had been detained extensive travelling by UK personnel, a so they need to be very clearly explained on suspicion of fixing the outcome of high- controlling or liaison presence in Taiwan and agreed, and a quality-management profile cases made world headlines. Taiwan’s and providing extensive training and system put in place with the Taiwanese ranking on the Transparency International management for Taiwanese staff. It is company. Consultancies can undertake all Corruption Perception Index is 33 (score important not to allow milestones to slip or part of this process on your behalf. 5.8), but this is an improving picture. by, whether these are attending a board meeting in a joint venture, or arranging Our advice to companies encountering a quality audit at a supplier. corruption in Taiwan is simple – don’t get involved. Not only are there issues of business integrity to bear in mind, but it is also, of course, illegal. Invariably, corruption is related to lack of professionalism and control, all of which are damaging to long-term business.

56 57 Business Issues and Considerations Getting to Taiwan

By air Travelling within Taiwan Buses Visas Taiwan has two international airports, Taipei has an extensive bus network, British nationals holding a passport with at Taoyuan (also known as Chiang Kai-Shek) Rail which has become more efficient with the least six months’ unexpired validity, who are Airport in the north, and Kaohsiung Airport Taiwan has a good rail system. The tourist introduction of bus lanes on the city’s visiting Taiwan for up to 90 days, do not in the south. In March 2010, China Airlines information hotline on 7173737 can major roads. Buses run from 06.00-22.30 require a visa to enter the country, provided began offering direct non-stop flights from provide details of fares and schedules, as and the basic fare is NT$15. A service they have a confirmed onward ticket and London Heathrow to Taiwan three times a can any travel agent or the service desk of runs every 15 minutes from the airport do not have a criminal record. An extension week. Eva Air flies seven times per week via Taipei Railway Station on 23713558. to the city centre between 07.50-23.30. of another 90 days can be granted to a Bangkok. Other carriers (e.g. Virgin, Cathay A complete listing of routes can be found person who enters Taiwan this way. British Pacific and British Airways) require transit Taipei Metro Rapid Transit (MRT) in the Taipei Bus Guide by Damien Brown, nationals who hold a passport of less than in Hong Kong. All Taipei MRT lines operate between available from Taipei bookstores. six months’ validity will not be permitted 06.00-24.00 and run approximately every to enter Taiwan unless a visa has been Getting to and from the airport five to eight minutes. The fare ranges from Car hire obtained prior to departure from the UK. Travelling from Taoyuan Airport to Taipei NT$20-NT$65. More lines are planned. Any foreigner who wishes to drive in Taiwan city centre takes 60-75 minutes and For more information about the Taipei must have a valid driver’s licence. For short- All enquiries about visas, work permits and costs NT$1,200-$1,500. The basic taxi Rapid Transit Corporation, visit the website: stay visitors, an International Driver’s Permit entry into Taiwan should be directed to fare is NT$70. Few taxi drivers speak or http://english.trtc.com.tw issued outside Taiwan will suffice, but if the Taipei Representative Office in the UK. read English, so it advisable to carry cards you are planning to stay in Taiwan for more You should allow two days to obtain a visa, with your destination address written in Road than six months, you are advised to obtain a although a same-day service is available. Mandarin. A hotel car can be booked with Traffic travels on the right in Taiwan. Taiwan Driver’s Licence. Car-rental companies the hotel reservation, costing on average The roads in Taipei and other big cities do exist, but self-drive is not a popular Taipei Representative Office NT$1,500-$1,800. Tipping is optional and are generally heavily congested. Freeways option because of the high number of traffic 50 Grosvenor Gardens at one’s personal discretion. There are no link most major cities, but traffic jams accidents and the difficulty in finding car London SW1W 0EB hard-and-fast guidelines. are common. parking spaces. Many visitors prefer to hire Tel: +44 (0)20 7881 2650 a car and driver through their hotel. www.roc-taiwan.org/uk Email: [email protected] Places to stay, eat and shop Opening hours: 09.30-12.30, Monday to As well as advising on business issues, the Friday UKTI team in Taipei can offer practical, on‑the-ground assistance with all aspects Time zone of your business trip to Taiwan, from where Taiwan is eight hours ahead of Greenwich to stay through to good places to eat or Mean Time. hold product launches.

58 59 Taiwanese CULTURE Taiwanese Culture Politics

In a highly competitive business China has claimed sovereignty over Taiwan previously been an authoritarian one-party environment, it is more important than since the end of the state. The trade agreement signed with ever to understand the business culture in 1949. As the Communists came to China in 2010 is seen as a landmark deal. of your target markets. Understanding power in China, the defeated Nationalist business culture helps you to understand, government fled to Taiwan. President anticipate and respond to unexpected President Ma Ying-jeou was sworn in behaviour. It also ensures that you Tensions have remained between Taiwan on 20 May 2008, ending eight years of behave in an acceptable way and avoid and mainland China ever since. China was Democratic Progressive Party rule. Mr Ma misunderstandings. Refer to the Business angered by the former President of Taiwan, was the youngest-ever cabinet minister Etiquette section for detailed guidance. Chen Siu-bian’s moves towards formal in 1988 and earned a reputation for independence. However, in March 2008, combating corruption as justice minister President Ma Ying-jeou came to power and from 1993-1996. He led the Nationalist has adopted a more conciliatory stance. Party () from 2005-7. Mr For the first time in 60 years, the leaders Ma’s conciliatory manner has earned the of China and Taiwan exchanged direct respect of his supporters and opponents messages in July 2009. A year later, the alike. His presidential campaign focused on two parties signed an historic trade pact. improving relations with mainland China and helping Taiwan’s financial services Despite this, China continues to insist that industry to establish itself there. The deal nations cannot have official diplomatic signed in 2010 is viewed by many as one relations with both China and Taiwan. This of the President’s major successes. has led to diplomatic isolation for Taiwan. It has formal diplomatic ties with only two dozen countries, mainly Pacific, South American and African states.

Taiwan has no seat at the United Nations, having lost it to China in 1971. Repeated attempts to regain representation at the UN have been blocked.

However, despite its diplomatic isolation, Taiwan has become one of Asia’s biggest traders. In the early 1990s, the island made the transition to democracy, having

60 61 Taiwanese Culture Taiwanese Culture Taiwanese Culture TAIWAN ECONOMIC FACTS 2011 Religion Challenges

The main religions in Taiwan are Taoism, Although the business climate in Taiwan taiwan Economic Facts 2011 (unless otherwise indicated) Buddhism and Christianity. Religion is not is improving all the time, some obstacles UK (as a a sensitive issue in the country and the still remain. There are a few market-access Taiwan comparison) constitution guarantees religious freedoms. issues faced by UK companies in the areas *Population 23.03 million 61.8 million of pharmaceuticals, alcoholic beverages (lot *GDP per capita (purchasing power parity – ppp) US$19,155 (2010) US$35,900 coding/white spirits), public construction *Nominal GDP US$427 billion US$2.25 trillion regulations, IPR and registering in Taiwan. (2010) *GDP growth (real) 5.2% 1.1% The British Trade and Cultural Office in Taipei takes market-access issues seriously and is **World Bank ease of doing business ranking 25 7 in regular discussions with senior officials ***Global Competitiveness Report ranking 13 (2011/12) 12 (2011/12) in Taiwan to tackle the problem. UKTI can Source: *Economist Intelligence Unit/**World Bank/***World Economic Forum offer advice on overcoming these challenges and provide up-to-date information about developments in the marketplace.

62 63 Contacts

If you have a specific export enquiry networking events. It has a close working Customs & regulations Standards and technical regulations about the Taiwanese market which is not relationship with the British Trade & answered by the information on this report, Cultural Office and the British Council. HM Revenue & Customs British Standards Institution (BSI) you can contact: www.hmrc.gov.uk www.bsigroup.com/en/sectorsandservices/ British Chamber of Commerce in Taipei Disciplines/ImportExport UK Trade & Investment Enquiry Service 26 Floor, President International Tower Economic information Tel: +44 (0)20 7215 8000 9-11 Song Gao Road National Physical Laboratory Fax: +44 (0)141 228 3693 Taipei 11073 The Economist www.npl.co.uk Email: [email protected] Taiwan www.economist.com/countries Tel: +886 (2) 2720 1919 Trade statistics You will be signposted to the appropriate Fax: +886 (2) 2720 9200 Export control section on our website, or transferred Email: [email protected] National Statistics directly to the British Trade & Cultural www.bcctaipei.com Export Control Organisation www.statistics.gov.uk/hub Office in Taipei. Or, you may contact the www.bis.gov.uk/exportcontrol British Trade and Cultural Office directly. Country information UK trade information Export finance and insurance www.ukti.gov.uk British Trade & Cultural Office BBC website 26th Floor, President International Tower, http://news.bbc.co.uk/1/hi/country_profiles Export Credits Guarantee Department Travel advice 9-11 Song Gao Road, www.ecgd.gov.uk Xin Yi District, FCO country profile FCO Taipei 11073, www.fco.gov.uk/en/travel-and-living-abroad/ Intellectual property www.fco.gov.uk/en/travel-and-living- Taiwan travel-advice-by-country/country-profile abroad Tel: +886 (2) 8758 2088 Intellectual Property Office Fax: +886 (2) 8758 2050 Culture and communications www.ipo.gov.uk NHS http://ukintaiwan.fco.gov.uk www.nhs.uk/nhsengland/Healthcareabroad CILT – National Centre for Languages – Market access British Chamber of Commerce in Taipei Regional Language Network in your area: Travel health (BCCT) www.cilt.org.uk/workplace/employer_ Market Access Database for Tariffs www.travelhealth.co.uk The BCCT champions the Britain-Taiwan support/in_your_area.aspx (for non-EU markets only) business interests of its members. It is an http://madb.europa.eu/mkaccdb2/ independent, non-government organisation Kwintessential culture guides indexPubli.htm made up of organisations affiliated with www.kwintessential.co.uk the UK and includes some of the most SOLVIT – Overcoming Trade Barriers prominent organisations in Taiwan. The (EU markets only) BCCT offers a range of membership www.bis.gov.uk/EUMarketAccessUnit activities, including presentations and 64 65 © Crown Copyright 2011 You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected] Any enquiries regarding this publication should be sent to our Enquiry Service by email: [email protected] or telephone: + 44 (0)20 7215 8000 (Monday – Friday 09.00-17.00) This publication is also available from our website at www.ukti.gov.uk

66 67 HELPING YOUR BUSINESS GROW INTERNATIONALLY

A range of UK Government support is available from a portfolio of initiatives called Solutions for Business (SfB). The “solutions” are available to qualifying businesses, and cover everything from investment and grants through to specialist advice, collaborations and partnerships. UK Trade & Investment is the Government Department that helps UK-based companies succeed in the global economy, and is responsible for the delivery of the SfB product “Helping Your Business Grow Internationally”. We also help overseas companies bring their high-quality investment to the UK’s dynamic economy – acknowledged as Europe’s best place from which to succeed in global business. UK Trade & Investment offers expertise and contacts through its extensive network of specialists in the UK, and in British embassies and other diplomatic offices around the world. We provide companies with the tools they require to be competitive on the world stage. For further information please visit www.ukti.gov.uk or telephone +44 (0)20 7215 8000.

Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation and Skills, and the Foreign and Commonwealth Office) accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. The paper in this document is made from 50 per cent recycled waste pulp with 50 per cent pulp from well-managed forests. This is a combination of Totally Chlorine Free and Elemental Chlorine Free. The inks are vegetable oil-based and contain resins from plants/trees and the laminate on the cover is sustainable, compostable and can be recycled. Published March 2011 by UK Trade & Investment © Crown Copyright URN 12/728