REGULATIONS GOVERNING MAINLAND ENTERPRISES' ADVERTISEMENT IN TAIWAN WERE LOOSENED

03/01/2012

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On 28 December 2011, Mainland Affairs Council, Executive Yuan approved an amendment of "Regulations for Advertising Goods, Labor and General Services of the Mainland Area in the Taiwan Area" ("Amendment".) According to the Amendment, advertisements could be made for 247 subjects in Taiwan which mainland enterprises currently are allowed to make investment and 8,869 agricultural and industrial products. Three types of mainland funded enterprises may make advertisements in Taiwan:

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For sea and air transportation enterprises of mainland, airlines permitted to fly cross-strait air routes and maritime transport carriers providing direct transportation service for passengers and cargos may make advertisement for their permitted businesses;

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For investment subjects or industries in Taiwan allowing mainland funded enterprises to invest, the related mainland enterprises may make advertisements for the businesses they are permitted to invest and for their businesses chartered by industry competent authorities; and

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8,869 agricultural and industrial products open for import.

As for the 247 subjects in Taiwan open for mainland funded enterprises to invest, including services sector (138), such as airlines, sea transportation, restaurants, and the general business of Type II telecommunications operators; manufacturing sector (89), such as manufacturing of cars, electronic parts and components, textile and plastic products, etc.; and public construction (20), such as civil airports, harbors, material facilities for sightseeing, etc., and 8,869 agricultural and industrial products, they can all make advertisements in Taiwan.

Regarding goods and services of mainland for which advertisements are not allowed, the Amendment prohibits their advertisement made through placement marketing. Furthermore, contents that are not allowed to appear in advertising campaigns may not be shown through placement marketing either.