Factory Management Act

Link to law: http://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?PCode=J0030043

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now
Chapter 1 General Provisions

Article 1

To promote industrial development and strengthen factory management and guidance, the Act is hereby establishment.

Article 2

The competent authority referred to herein: Ministry of Economic as referred to central; Municipal City Government as referred to Municipal City; County (City) Government as referred to County (City).

Article 3

The factory referred to herein mean a constant place with certain level of space available for manufacturing, processing goods or its production equipment reaching certain power capacity or thermal energy.
The scope of good manufacturing or processing, certain level of space and power capacity or thermal energy specified in preceding paragraph shall be announced by central competent authority.
The business with constant place for good manufacturing and processing but not satisfactory to preceding standards may still apply for permit or registration pursuant to the Act. Upon approval of competent authority, the business shall manage the factory in accordance with the Act.
In case that scope of factory is altered due to amendment of standards set forth in second paragraph, central competent authority shall specify deadline for application of permit or registration to the extent of said standards aiming at businesses originally beyond the factory scope. As to businesses without in the scope of factory, factory registration procedures shall be incorporated in said standards.

Article 4

The duties of competent authorities are as follows:
1.Central competent authority:
(1)Draw up or establish factory management laws and regulations and standards for factory establishment.
(2)National and industrial factory investigation.
(3)Approval of application for transcript of national factory registration
(4)Implement factory guidance to businesses selected
(5)Audit and supervise disposition to factories violating regulations of the Act
(6)Permit and registration of establishment, management and guidance for factories in science-based industrial park, processing zone, free trade zone, agricultural science park and other specific zones approved by Executive Yuan.
(7)Other guidance and supervision matters regarding factory management.
2.Competent authorities of Municipal City and County (City):
(1)Mange permit, registration of factory establishment and its cancellation and abolishment.
(2)Investigation of factories within the jurisdiction.
(3)Approval of application for registration transcript and certificate of factory within the jurisdiction.
(4)Implement guidance to factories with in the jurisdiction.
(5)Mange violation of the factory within the jurisdiction.
(6)Other matters assigned by central competent authority.

Article 5

Central competent authority may assign its subordinate organization, designate or commission other organization (institution) to manage matters specified in the Act.

Chapter 2 Registration and Establishment Permit

Article 6

The entity of factory shall be subject to sole proprietorship, partnership, company or that may engaging in manufacturing, processing pursuant to laws and regulations.

Article 7

The factory shall have the name of entity affiliated with. One entity has two or above factories within in same municipal city, county (city), science-based industrial park, processing zone, free trade zone, agricultural science park and other specific zones approved by Executive Yuan shall identify the factories.

Article 8

The factory shall have responsible person who shall not be incompetent or limited capacity for civil conduct. Meanwhile, the responsible person shall have residence or domicile in Taiwan.

Article 9

The land used for factory shall be subject to land in industrial zone of urban planning, non-urban Type D construction land, development industrial zone pursuant to law or other legal land available for establishing factory.

Article 10

After completion of factory construction, the factory shall apply for registration in accordance with the Act and shall not engage in manufacturing and processing without permission of competent authority. However, the military factory subordinated to Ministry of National Defense shall be exception.
In case that military factory of Ministry of National Defense has become a factory of public or private business, the registration shall be managed in accordance with the Act within three years from reformation.

Article 11

Where there is one of following circumstances, the factory shall obtain establishment permit in advance:
1.The factory shall have permit of industrial competent authority pursuant to laws.
2.The permission is required by announcement of central competent authority in consideration of equal industrial development, reasonable resources application or energy saving policies.

Article 12

Upon approval of establishment, the factory shall manage factory registration by deadline and the original permit will be invalid as overdue.
Preceding deadline of approval shall be two years. However, if it cannot be completed for just reason, the application for extension may be filed prior to expiration. The extension period shall be subject to one year and up to three times.

Article 13

The application for factory permit or registration shall specify following items:
1.Factory name and address
2.The name and residence or domicile of responsible person.
3.Industrial category
4.Major products
5.Power capacity, thermal energy and water volume used for production equipment.
6.Floor space of factory and building
7.Other matters specified in announcement of central competent authority.
The industrial category specified in item 3 shall be announced by central competent authority.

Article 14

Where there is one of following circumstances occurs, no permit or recognition of change shall be allowed:
1.The environmental impact assessment shall be implemented in accordance with Environmental Impact Assessment Act, while its related environmental impact prospectus or report has not yet approved by environmental protection competent authorities.
2.Violate land control regulations.
3.Violate illegal construction or building purpose regulations.
4.Suspension of accepting newly establishment or expansion of existed factory is announced by central competent authority in accordance with section 2 of paragraph 1 of Article 17.

Article 15

Where there is one of following circumstances occurs, no registration or change registration shall be managed:
1.Products are prohibited from manufacturing pursuant to laws.
2.Violate land control regulations.
3.Violate illegal construction or building purpose regulations.
4.Specified business type, scope and magnitude of environmental protection competent authority, while its related environmental impact prospectus, report or pollution prevention plan has not yet approved by environmental protection competent authorities
5.The equipment is not satisfactory to factory establishment standards as required
6.No prior permission is obtained for product manufacturing as required.
7.No prior permission is obtained in accordance with regulations set forth in Article 11 or the factory construction is not complied with content approved.
8.Suspension of accepting newly establishment or expansion of existed factory is announced by central competent authority in accordance with section 2 of paragraph 1 of Article 17.

Article 16

Where there is change of items set forth in factory permit, the permission for change shall be acquired before managing factory registration.

Article 17

Central competent authority may take following actions as considering equal industrial development, reasonable resources application, ecological environment and maintenance of public benefit or requirement of international conventions or treaties such policies:
1.Require undertakings to permit for factory establishment or approval or registration.
2.Announce suspension of accepting newly establishment or expansion of existed factory for product or area selected.
3.Announce compulsory reduction or suspension of production in existed factory for product or area selected.
The type of undertakings set forth in paragraph 1 shall be added in accordance with type of factory, product items, operation method or other actions need to be taken under policies. The central competent authority shall establish the procedures governing additional undertakings.
The announcements set forth in item 2 and 3 of paragraph 1 shall be made by central competent authority upon approval of Executive Yuan.
For compulsory reduction or suspension of production in existed factory for product in accordance with regulations set forth in item 3 of paragraph 1, the Government may provide compensation. Central competent authority shall establish measures governing the scope, standards, procedures and matters regarding compensation.

Chapter 3 Management

Article 18

The competent authority may notice factory for filing or providing related information in consideration of sound factory management or maintenance public benefit as required. In addition, the competent authority may assign personnel to the factory for investigation if necessary, while the factory shall not evade, interfere or reject.
The personnel of competent authority shall present identity certificate as entering factory for investigation and shall not interfere or disturb production, management or disclose production secret.
For the control requirements of international convention or treaties, the factory shall declare the production and sales status of control articles within certain deadline, which is also applied to change. The competent authority may also assign personnel for investigation if necessary, while the factory shall not evade, interfere or reject.
Central competent authority shall establish measures governing the filing content, procedures, deadline, filing of change and other compliance matters as filing for control articles.

Article 19

The responsible person or interest related parties may apply to competent authority for transcript of factory registration or certificate regarding factory registration.
The interest related parties shall explain the reasons as applying for transcript or certificate.

Article 20

For closing of factory, the filing shall be made to competent authority. For failure to filing, the competent authority may cancel its factory registration directly.
It will be deemed as closing of factory where there is one of following circumstances:
1.The fact that is sufficient to confirm that the factory has been closed over one year.
2.The major production equipment of the factory has been moved and no manufacturing and processing is confirmed by the competent authority.

Article 21

The factory shall file dangerous objects manufactured, processed or used by the factory to competent authorities of Municipal City, Count (City) within ten days from the next day of manufacturing, processing and using dangerous objects over control volume.
Central competent authority shall establish the scope, type, control volume and its filing content, deadline, method, procedures and other matters for compliance.
The factory shall exercise due care as manufacturing, processing and using dangerous objects. For significant environmental pollution, labor safety accident seriously affecting factories around or public safety, the competent authorities of Municipal City, Count (City) may order to suspend the operation and make improvement. After elimination of reason for closing, the factory may apply to the competent authorities of Municipal City, Count (City) for resume of operation.
The competent authorities of Municipal City, Count (City) shall file the factory information as set forth in paragraph 1 and forward to related organizations.

Article 22

For manufacturing, processing and using dangerous objects over control volume, the factory shall purchase public liabilities insurance, except that it has already purchase public liabilities insurance pursuant to other laws and regulations.
The minimum insurance amount and measures of preceding insurance shall be governed by central competent authority after consulting with central insurance competent authority.

Article 23

The factory that uses recycling flammable waste as materials for manufacturing and processing approved or permitted by industry competent authority shall file to the competent authorities of Municipal City, Count (City) monthly for the type and material inventory of said waste.
Central competent authority shall establish the filing content, deadline, method, procedures and other matters for compliance.
The competent authorities of Municipal City, Count (City) shall file the factory information as set forth in paragraph 1. Where there is abnormal stock found in the factory, it shall be reported to original industry competent authority and related organization immediately for management.
In case there is concern of environmental pollution caused by material leak or burning, the competent authority may order the factory to clean and mange it by deadline. For failure to clean or manage by deadline, the material to said extent will be deemed as waste and disposed in accordance with Waste Disposal Act.

Article 24

Where there is one of following circumstances occurs to the factory, the competent authorities of Municipal City, Count (City) shall cancel its factory permit or registration.
1.The information provided to the competent authorities of Municipal City, Count (City) as applying factory permit or registration in accordance with the Act is false and guilty determined by the court.
2.The permit or approval of industry competent authority as required to obtain in advance is cancelled as applying for factory permit or registration.

Article 25

Where there is one of following circumstances occurs to the factory, the competent authorities of Municipal City, Count (City) shall abolish its factory permit or registration.
1.The notice given to competent authority by justice agency to competent authority that forfeit of illegal articles manufactured and processed without permission is determined by the court.
2.Where there is injunction of closing operation or cancellation of factory registration due to violation of other laws determined and noticed by disposition agency to the competent authorities of Municipal City, Count (City).
3.The permit or approval of industry competent authority as required to obtain in advance is abolished as applying for factory permit or registration.
4.Being punished for two times and above due to material violation of the Act.
The competent authority shall forward relevant competent authorities after abolishing factory registration in accordance with preceding regulations.

Chapter 4 Guidance

Article 26

In order to promote industrial development, the competent authority shall implement guidance to the factor in term of following matters:
1.Investigation, research, introduction, transfer and promotion of industrial production technology.
2.The development, industrial product design, quality improvement, automation, enhancement of productivity and operational rationality
3.Training of industrial technology talents
4.Prevention of management of industrial pollution and industrial safety and health.
5.Other matters regarding industrial development

Article 27

Where there are five and more factories manufacturing, processing or using dangerous articles exceeding control volume in the same industrial zone managed by central competent authority and its subordinated organizations, central competent authority shall guide them to establish local joint prevention organization.
Preceding local joint prevention organization shall promote matters as follows:
1.Establish information system regarding dangerous articles of factory inside the organization.
2.Establish information system regarding factory and surrounding rescue arrangement inside the organization.
3.Enhance disaster and emergency response skills for factories inside the organization.
4.Establish articles of organization, disaster report model, mutual support agreement and other rights and obligations.
5.Other matters regarding joint prevention.
The factories manufacturing, processing or using dangerous article exceeding control as set forth in paragraph 1 without enrolling in local joint prevention organization, central competent authority shall guide them for enrollment.

Article 28

To improve environmental quality, central competent authority may guide related factories within or without in the industrial zone to mutually construct pollution prevention facilities.

Chapter 5 Punishment

Article 29

For factory manufacturing, processing or using dangerous article exceeding control violate paragraph 1 of Article 22 without public liabilities insurance, the responsible person of the factory shall be fine for NT$50,000 to NT$250,000 and shall be improved by deadline. For failure of compliance then, consecutive punishment shall apply.

Article 30

Where there is one of following circumstances occurs to the factory, central competent authority shall order the factory to suspend operation and complete factory registration by deadline. For engaging in manufacturing, processing without completion of registration, the person who conducts the activity shall be find for NT$20,000 to NT$100,000. For not compliance by deadline, the person who conducts the activity may be punished consecutively each time for NT$40,000 to NT$200,000 until suspension of operation:
1.Violate regulation set forth in paragraph 1 of Article 10 without completion of factory registration and engage in manufacturing and processing without permission.
2.Violate regulation set forth in paragraph 3 of Article 16 by failure to manage factory registration and engage in manufacturing and processing goods again for moving.
3.Continue manufacturing and processing after cancellation of factory registration in accordance with Article 24.
4.Continue manufacturing and processing after abolishment of factory registration in accordance with Article 25.

Article 31

Where there is one of following circumstances occurs to the factory, competent authority shall order the factory to improve, make up or file by deadline. For failure to improve, make up or file by deadline, the responsible person of the factory will be fined for NT$10,000 to NT$ 50,000. For not compliance, consecutive punishment may be applied:
1.Engage in businesses other than manufacturing and processing goods by using partial or whole factory or building. However, engaging in business related with products manufactured shall be exception.
2.Fail to manage factory permit or registration and engage in manufacturing and processing as change of industry category against paragraph 3 of Article 16.
3.Violate additional undertaking as set forth in section 1 of paragraph 1 of Article 17.
4.Violate reduction of production or volume as set forth in section 3 of paragraph 1 of Article 17.
5.Fail to file or provide related information or evade, interfere or reject investigation against paragraph 1 of Article 18.
6.Fail to file by deadline evade, interfere or reject investigation against paragraph 3 of Article 18.
7.Fail to file dangerous articles by deadline against paragraph 2 of Article 21.
8.Fail to file material inventory monthly against paragraph 1 of Article 23.
9.Violate regulations of paragraph 2 of Article 23 regarding filing content.

Article 32

For violation of paragraph 2 of Article 16, competent authority shall order the factory to manage change registration by deadline. Failure or prohibited from management by deadline, the responsible person of the factory will be fined for NT$5,000 to NT$25,000. For not compliance afterward, consecutive punishments shall apply.

Chapter 6 Supplementary Provisions

Article 33

To guide factories that are not registered for legal operation, the central competent authority shall consult relevant organizations for related measures.
The guidance period shall be from 2 June 2010 to 2 June 2020. Before the preceding guidance period ends, punishment regulations as set forth in paragraph 1 of Article 30 and paragraph 1 of Article 21 of the Regional Planning Act, Article 79 of the Urban Planning Act regarding violation of land or building use and paragraph 1 of Article 86 and section 1 of paragraph 1 of Article 91 of the Architecture Act shall not be applied to unregistered factories within a specific area.
The central competent authority shall consult relevant organizations for the announcement regarding the amendment of the Act within two years from 2 June 2010.

Article 34

Existing factories that had not been registered before 14 March 2008 that satisfy the environmental protection, fire, water conservancy and conservation of water and soil regulations may surrender their registration rebate to the local competent authority and apply for temporary factory registration before 2 June 2015 without the restriction of paragraphs 2 and 3 of Article 15.
To avoid increasing environmental pollution and jeopardizing public safety, the factories that manage to apply for temporary factory registration in accordance with the preceding regulation shall be restricted by change of business entity and factory registration items.
The central competent authority shall consult relevant organizations for establishment of standards for low pollution identification, procedures of make-up temporary registration, restrictions on change of entity and factory registration, surrender procedures, methods of use and other related matters.
Punishment regulations as set forth in paragraph 1 of Article 21 of the Regional Planning Act, Article 79 of the Urban Planning Act regarding violation of land or building use and paragraph 1 of Article 86 and section 1 of paragraph 1 of Article 91 of the Architecture Act shall not be applied to factories with temporary factory registration until the said registration becomes invalid.
A factory with temporary factory registration shall acquire legal use of the land and building certificate before 2 June 2020. Failure to acquire them will cause the temporary factory registration to become invalid upon expiration and the local competent authority shall punish the business in accordance with the regulations of Article 30.

Article 35

For rejection to comply with order for suspension or closing operation, competent authority may notice electric or water company to stop electric or water supply on site.
Unless there is certificate of elimination of reason for stop electric and water supply issued by competent authority, electric and water companies shall not resume the electric and water supply to factories out of electric and water supplies.

Article 36

The existed factories manufacturing, processing or using dangerous articles over control volume before enforcement of the Amendment shall file all their dangerous articles by deadline specified by central competent authority and purchase public liabilities insurance.
The factory that uses recycling flammable waste as materials for manufacturing and processing approved or permitted by industry competent authority before enforcement of the Amendment shall file to the competent authorities of Municipal City, Count (City) monthly for the material inventory in accordance with deadline announced by central competent authority after enforcement of the Amendment.

Article 37

The review fee, registration fee, transcript fee, certificate fee shall be applied to application for establishment permit, registration or permit and registration for change and application of the responsible person or interest related party for transcript or certificate of factory registration items. Meanwhile, central competent authority shall determine the charge standards.

Article 38

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

Article 39

The regulations shall come into force from the date of promulgation.