Free Trade Zone (FTZ)
In order to develop a global operation and management model and to ensure a free and international trade system, the government has promulgated the Act for the Establishment and Management of Free trade zones, which take effect on July 23rd 2003. It is hoped that the establishment of free trade harbor areas can enhance the competitiveness of Taiwan's economy. To facilitate the development of FTZs by reducing operating costs and improving efficiency, an amendment to the Enforcement Rules was made and announced on July 8, 2009.
There are now 7 harbor areas in operation as authorized by the Executive Yuan, including 6 sea harbors and 1 air harbor: Keelung Port Free Trade Zone, Taipei Port Free Trade Zone, Taichung Port Free Trade Zone, Kaohsiung Port Free Trade Zone, Su-ao Port Free Trade Zone, An-ping Port Free Trade Zone and Taoyuan Air Cargo Park Free Trade Zone.
Through comparison, you will discover and realize that among more than 600 Free Trade Zones and similar special administrative regions throughout the world, Taiwan FTZ is the most competitive. Free Trade Zones and special administrative regions are located and distributed throughout Asia, from Singapore, Hong Kong, Mainland China, Japan, Korea, to the Philippines.
The unique geographical advantage, strong transport capacities, the highly efficient customs clearance system, strong manufacturing capabilities, and the extraordinary B2B infrastructure of Taiwan enable enterprises to integrate business flow, logistics, cash flow, and information flow with swift processes in manufacturing, ordering, transport and sales to meet the demand of supply chain.
Taiwan has already established production bases in countries around the world. In terms of the size of the vendors, the goal of becoming a global business operational center has already been accomplished. The FTZ and Taiwan's manufacturing capabilities are complementary to each other, making this one of Taiwan FTZ's unique advantage. At the same time, new tools such as communication technology help master information for goods circulation. Together with mobile management and risk management skills, further operational convenience and safety control is achievable.
A comparison of Free Trade Zones in Asia
Features/
Region |
Aims |
Business Tax |
Operating Authority |
Businesses |
Taiwan |
Global
operational
management
mode.
Enhancing
national competiveness |
20% |
Private,
single window |
Import, export,re-export trade,storage, labeling,dismounting,re-packaging,assembling,testing,classification, and in-depth processing and manufacturing |
Singapore |
The center of logistics |
17% |
Private,single window |
Mainly e-export |
Korea |
The central |
22% |
Central or local government,single window |
Storage, sales,simple processing, product maintenance, international logistics |
Mainland China |
The center of commodities gathering and resources distribution in the Asia Pacific region |
25% |
Local government |
Processing,manufacturing,and international trade |
Japan (Okinawa) |
International interaction stronghold in Southern Japan |
30% |
Local government |
Processing,manufacturing,re-export,and storage |
Philippines |
The logistics central base in the Asia Pacific region |
--- |
Central unit,single window |
Import, export,and re-export |
Features/
Region |
Customs Clearance |
Circulation of Commodities |
Incentives |
Business Solicitation Approaches |
Taiwan |
Report |
Free access within the FTZ, self-management by manufacturers |
Provided with incentives |
Responsible by dedicated units |
Singapore |
Customs declaration |
Free access, self-management, re-packaging, labeling, assembling |
Provided with incentives |
Responsible by dedicated units |
Korea |
Customs declaration |
Free access,self-management,re-export, storage,re-packaging,labeling,direct processing,displaying,re-export |
Tax exemption and investment incentives |
--- |
Mainland China |
Customs declaration |
Self-management,bonded, labeling,assembling |
Consistent nationwide incentives, and local customized incentives |
--- |
Japan (Okinawa) |
Customs declaration |
Free access,bonded,re-packaging,labeling,assembling |
Tax incentives,grants, low interest financing, and regional development preferential |
--- |
Philippines |
Customs declaration |
Free access,self-management,bonded,re-packaging,labeling,assembling |
Provided with incentives |
--- |
Source: Based on "Free Trade Zone Planning and the Research on Practices of the Relevant Countries", Council for Economic Planning and Development.
FTZs are designed based on the principle of "within national territory but outside customs territory." The purpose of their establishment is to eliminate the barriers to the flow of goods, capital and people in international trade. It is hoped that with the integration of the supply chain and the convenience of harbors, enterprises can be more competitive.
The characters and advantages of free trade harbor areas can be categorized as follows: operation, efficiency, cost and service.
- Operation-wise, 19 industries are allowed in FTZs. They are trade, storage, logistics, cargo management, transshipment, transfer, outsourced delivery, custom declaration, fabrication, reassembly, packaging, repair, assembly, processing, manufacturing, inspection, testing, exhibition and technical services. Enterprises can operate in the areas in the form of subsidiary companies, operating offices or departments. As there are lots of choices on the legal form of business to operate, enterprises may have more flexibility in running a business and thus become more competitive.
- Efficiency-wise, to expedite the flow of goods, the government imposes fewer administrative controls in FTZs. Companies in FTZs may engage in commodity control, on-line custom clearance and accounting on their own terms. There is a high level of autonomic management in contrast to loose administrative controls from the government. Inspection is spared for custom clearance when cargoes are shipped to or from FTZs. The same principle also applies to any transfer from one FTHA to another. Reports on the total flow of commodity between a FTHA and a domestic taxed area or a bonded area may be filed on a monthly basis to enhance the efficiency. In addition, to grant greater convenience and to simplify the process of arrival, foreign business visitors may request companies in FTZs to apply for "optional visa upon arrival" from competent agencies.
- Cost-wise, in FTZs, businesses may increase the proportion of foreign laborers to up to 40% of their employees. Other tax reduction measures include an exemption of custom, commodity tax, business tax, trade promotion service fee and harbor service fee on commodities and equipments. To invigorate the supply chain, business tax rate is reduced to zero for transactions of commodities, equipments and services between FTZs and domestic taxed areas or bonded areas. Government-owned businesses that register or commission storage and preliminary processing to companies in FTZs for subsequent transactions with domestic or foreign clients may be exempted from profit-seeking enterprise income tax in this regard.
- Service-wise, the Ministry of Transportation and Communication formed a "Free Trade Harbor Area Promotion Task Force" to deliberate on the policies pertaining to the development of FTZs. The task force is also responsible for coordination among different government agencies. A "Free Trade Harbor Area Operation Task Force" is formed in each harbor area. Each task force not only provides single-counter administrative services, but also supervises all related businesses in its respective area.

The Features of the Seven FTZs
Keelung Port Free Trade Zone
Port of Keelung Free Trade Zone covers Pier No.6 to No.22 on the east coast of Keelung and the Pier No.7 to No.9 and No.33 on the west coast. The total development area measures 71.16 hectares.
It is suitable for assembly, storage, processing, and re-export of precision components, value-added manufacturing and distribution of consumer products, and Multi-Country Cargo Consolidation (MCC).
In the surrounding area, there are Liudu Technology Park, Dawulun and Ruifang Industrial Parks, focusing on electrical and electronics, plastic products, cargo shipping, machinery and equipment manufacturing, metal manufacturing, food and beverage making, chemical materials and rubber products manufacturing and other sectors.
Advantages
- Direct connections to Freeway No.1 and No.3
- East and West Coast Express Highway providing convenient transportaion
- Located near the center of consumption, politics and economy in Northern Taiwan, abundant in resources
- Neighboring inland container terminals and three industrial zones
Kaohsiung Port Free Trade Zone
Port of Kaohsiung Free Trade Zone covers container terminals No. 1 to No. 5, Chungtao Commercial Harbor Area, Pier No.30 to No.39, the hinterland of the Cianjhen Commercial Harbor Area container center No.2, hinterland of intercontinental Container Terminal Phase 1 and Zone A5; and the Nan Hsing Project District. The total development area measures 520.42 hectares.
It is suitable for such sectors as storage, logistics, LME, Multi-Country Cargo Consolidation (MCC), steel and iron, metal products, machinery, industrial molds and so on.
In the surrounding area, there are many industrial clusters in steel and iron making, shipbuilding, petrochemical, plasticization, agriculture and fishery, refrigerated warehousing, screw manufacturing, metalworking, machine building, electronic component manufacturing and other sectors.
Advantages
- Owing to Direct Cross-Strait Marine Transport(Direct marine transportation between Taiwan and China) bilateral trade flow has grown substantially
- Tight shipping schedules; Convenient transshipments
- Located near Kaohsiung Export Processing Zone and Industrial Parks
- Connections to Freeway
- Located near Kaohsiung International Airport
Taichung Port Free Trade Zone
Port of Taichung Free Trade Zone covers Pier No. 1 to No.18, Pier No. 20A to No.46 and special zone for port industry development as well as the petrochemical industry specialty areas including West Pier No.1 to No.7 and West Pier No.8 to No.10 with the hinterland. The total development area measures 662.32 hectares.
It is suitable for such sectors as basic precision machinery, computer, communications, and consumer electronics products, green energy, bicycle industry (supply-chain partners), automotive parts assembly, value-added manufacturing, and inspection & testing, and Taiwan-China petrochemical & petroleum products storage.
In the surrounding area, there are industrial clusters in bicycles, precision machinery, automotive components, hardware, green energy and hosiery industry.
Advantages
- Vast land in the port zone.
- Convenient transport network.
- Close to industrial parks, export processing zones, and Central Taiwan Science Park.
Taipei Port Free Trade Zone
Port of Taipei Free Trade Zone covers the East Pier District and the North Cargo Storage and Transportation Center No.3 to No.6 and other hinterland. The total development area measures 93.7 hectares.
It is suitable for automotive logistics, maritime express, sea-air transportation, Multi-Country Cargo Consolidation (MCC), agricultural products shipping and distribution, healthcare industry equipment and instrumentation, and intelligent logistics and other sectors with a focus on adding product value.
In the surrounding area, there are Wugu, Tucheng, Linkou, Guishan, Dayuan, Guanyin, Hsinchu and other industrial or scientific parks, each focusing on different industries. For instance, Tucheng Industrial Park is home to metals, electronic components and computer manufacturing industries. Linkou Industrial Park houses enterprises in machinery and equipment, and metal product manufacturing. Hsinchu Science Park is featured with electronic components, metal products, machinery and equipment manufacturing industries.
Advantages
- Featuring a cast hinterland and adequate water depth.
- Located near Taipei downtown; abundant in resources.
- Located near Taoyuan International Airport; providing a convenient sea-air transportation network.
Taoyuan Air Cargo Park Free Trade Zone
Taoyuan International Airport Free Trade Zone covers an area of 34.85 hectares at the northern edge of the Airport, and has a dedicated linking roadway to the aircraft aprons, which is like an umbilical cord that makes it a virtual extension of the Airside. This controlled area is an ideal place for multinational enterprises to help to integrate process operations and air transportation’s function.
It is mainly suitable for electronic industry. Currently, it involves industrial clusters in electronic manufacturing and service sectors (including digital consumer electronics, panels, wafer distribution, memory modules, semi-conductor equipment and communications, correspondence, networks, etc.), international logistics, medical products, cosmetics and bicycle assembly and other industries.
Advantages
- Leverage Taiwan’s manufacturing capability and provide high value-added products in the total supply chain.
- Utilize Taiwan’s strength in ICT industries to become a regional Repair & Maintenance center after service for consumer electronic products.
- Develop cold chain logistics services and jointly target the global market.
Su-ao Port Free Trade Zone
Port of Suao Free Trade Zone covers Pier No.1 to No.9 and warehouse stack facilities. The total development area measures 57.5 hectares.
It is suitable for international logistics and green energy sectors.
In the surrounding area, there are industrial clusters in cement, steel and iron, metal products and machinery and equipment manufacturing and other sectors.
Advantages
- Attracting green energy industries and developing Green cluster.
- Located near Lung Te and Letzer Industrial Park and Yilan Science Park.
- Located near the metropolitan area of Northern Taiwan(40 minutes from Taipei).
- Connecting to the Northern region via Expressway No.2 and Freeway No.5; reaching Hualien and Taitung via Expressway No.9 and Suao-Hualien Highway
An-ping Port Free Trade Zone
Port of Anping Free Trade Zone covers industrial zone Pier No.1 to No.7 in the controlled area, Pier No.8 to No.12 in the 5th Redevelopment Zone area, and Si Kun-Shen Dock Area Pier No.13 to No.20. The total development area measures 72.1 hectares.
It is suitable for logistics, warehousing, and international logistics sectors.
In the surrounding area, there are industrial clusters in agriculture and fishery, manufacturing, food processing, tourism, international healthcare, biotechnology and electronic component manufacturing.
Advantages
- Direct connections to Freeway No.1 and No.3
- Connect Provincial Highway No.17 and Expressway No.86. Access system of Anping Port is convenient.
- Located near the Industrial Parks, Science Park and Agricultural Biotechnology Park.
- Located near the Tainan Airport.
Leasing and Other Costs
The seven FTZs all vary in their leasing costs, though Keelung port, Taipei port, Su-ao port, Taichung port, Kaohsiung port and An-ping port charge land lease and management fees. As Taoyuan FTZ only offers warehouses for rent, there is no land leasing costs.
Port |
Investment Area |
Area (ha) |
Land Lease Fee |
Facility Lease Fee |
Management Fee |
Port of Keelung |
2/F of /F of East Warehouse No. 14 |
0.08 |
Section value * renting area * 5%. The provisions contained in the business solicitation announcement shall prevail. |
Construction cost * annual leasing rate. The provisions contained in the business solicitation announcement shall prevail. |
Fixed and variable management fees are included. The provisions contained in the business solicitation announcement shall prevail. |
Port of Taipei |
Logistics & Warehousing Area |
4~12 |
Section value * renting area * 5%. The provisions contained in the business solicitation announcement shall prevail. |
Construction cost * annual leasing rate. The provisions contained in the business solicitation announcement shall prevail. |
Fixed and variable management fees are included. The provisions contained in the business solicitation announcement shall prevail. |
Port of Suao |
Logistics & Warehousing Are |
6.25 |
Section value * renting area * 5%. The provisions contained in the business solicitation announcement shall prevail. |
Construction cost * annual leasing rate. The provisions contained in the business solicitation announcement shall prevail. |
Fixed and variable management fees are included. The provisions contained in the business solicitation announcement shall prevail. |
Warehouse No. 4 surrounding land |
1.81 |
Section value * renting area * 5%. The provisions contained in the business solicitation announcement shall prevail. |
Construction cost * annual leasing rate. The provisions contained in the business solicitation announcement shall prevail. |
Fixed and variable management fees are included. The provisions contained in the business solicitation announcement shall prevail. |
West Warehouse No. 4 |
0.63 |
Section value * renting area * 5%. The provisions contained in the business solicitation announcement shall prevail. |
Construction cost * annual leasing rate. The provisions contained in the business solicitation announcement shall prevail. |
Fixed and variable management fees are included. The provisions contained in the business solicitation announcement shall prevail. |
Port of Taichung |
Special Zone for Port Industry Development |
South side of Taiwan Boulevard and west side of Zhong'er Road |
44.99 |
Section value * renting area * 5%, counting from the delivery date. The provisions contained in the business solicitation announcement shall prevail. |
No facility lease fee will be charged in the contract period. If the investor intends to renew the lease upon expiration of the contract, the facility lease fee shall be charged only after the property right is transferred to Taiwan International Ports Corporation Ltd. The provisions contained in the business solicitation announcement shall prevail. |
Fixed and variable management fees are included. The provisions contained in the business solicitation announcement shall prevail. |
Port of Kaohsiung |
Nan Hsing Project District |
A3 |
2.45 |
Section value * renting area * 5%. The provisions contained in the business solicitation announcement shall prevail. |
No facility lease fee will be charged in the contract period. If the investor intends to renew the lease upon expiration of the contract, the facility lease fee shall be charged only after the property right is transferred to Taiwan International Ports Corporation Ltd. The provisions contained in the business solicitation announcement shall prevail. |
Fixed and variable management fees are included. The provisions contained in the business solicitation announcement shall prevail. |
A9 |
3.07 |
B2 |
1.80 |
Port of Anping |
pier No.1-2 outdoor storage yard |
1.15 |
Section value * renting area * 5%, counting from the delivery date. The provisions contained in the business solicitation announcement shall prevail. |
No facility lease fee will be charged in the contract period. If the investor intends to renew the lease upon expiration of the contract, the facility lease fee shall be charged only after the property right is transferred to Taiwan International Ports Corporation Ltd. The provisions contained in the business solicitation announcement shall prevail. |
Fixed and variable management fees are included. The provisions contained in the business solicitation announcement shall prevail. |
pier No.5-7 outdoor storage yard |
2.19 |
Land behind Pier No. 10 |
3.02 |
Pier No.5 Simple shed |
0.03 |
Section value * renting area * 5%, counting from the delivery date. The provisions contained in the business solicitation announcement shall prevail. |
Construction cost * annual leasing rate. The provisions contained in the business solicitation announcement shall prevail. |
Fixed and variable management fees are included. The provisions contained in the business solicitation announcement shall prevail. |
Taoyuan Airport |
Value-added factory building |
4000m2 |
Please contact Farglory Free Trade Zone Co., Ltd. |
Space(Joint Development) |
8 |
Last Update Date:2018.12.26
Source:Taiwan Free Trade Zone Website
Investor Service Window
FTZ Recruitment Contacts
Single-service Window (individuals listed are directly responsible for FTZ recruitment matters)
National Port FTZ Service Center
Agency |
Position |
Name |
telephone no. & e-mail |
Maritime & Port Bureau, MOTC |
Associate Technical Specialist |
Wei-chun Chang |
+886-2-89786838
wcchang@motcmpb.gov.tw |
Taiwan International Ports Corporation (TIPC) |
Manager |
Chia-chen Hsieh |
07-5219000#3330
ayahsieh@twport.com.tw |
FTZ Service Center, Port of Keelung (Room 219, 2nd Floor, 6 Gangxi Street, Keelung City)
Agency |
Position |
Name |
telephone no. & e-mail |
North Maritime Affairs Center, Maritime & Port Bureau, MOTC |
Executive Officer |
Han-sheng Chi |
+886-2-8978-3580
hschi@motcmpb.gov.tw |
Business Division, Port of Keelung, TIPC |
Deputy Director |
Ching-shih Liang |
+886-2-2420-6369
liangcs@twport.com.tw |
Business Division, Port of Keelung, TIPC |
Manager |
Pei-Yi Lin |
+886-2-2420-6283
brooke@twport.com.tw |
FTZ Service Center, Taipei Port (2nd Floor, 123 Shanggang Road, Bali District, New Taipei City)
Agency |
Position |
Name |
telephone no. & e-mail |
North Maritime Affairs Center, Maritime & Port Bureau, MOTC |
Executive Officer |
Mei-fei Hou |
+886-2-8978-2120
mphou@motcmpb.gov.tw |
Business Division, Taipei Port, Port of Keelung, TIPC |
Manager |
Yi-hui Ho |
+886-2-2619-6025
hyh97@twport.com.tw |
FTZ Service Center, Suao Port (3rd Floor, #1 Harbor District, Suao, Yilan County)
Agency |
Position |
Name |
telephone no. & e-mail |
North Maritime Affairs Center, Maritime & Port Bureau, MOTC |
Executive Officer |
Hui-ting Chang |
+886-3-969-9083
htchang@motcmpb.gov.tw |
Suao Port Branch Office, Port of Keelung, TIPC |
Supervisor |
Shuo-tang Fang |
+886-3-997-2010
fang@twport.com.tw |
FTZ Service Center, Port of Taichung (No. 2, Taiwan Boulevard, Sec. 10, Wuqi District, Taichung City)
Agency |
Position |
Name |
telephone no. & e-mail |
Central Maritime Affairs Center, Maritime & Port Bureau, MOTC |
Officer |
Kuan-chao Tiao |
+886-4-2664-2531
kctiao@motcmpb.gov.tw |
Business Division, Port of Taichung, TIPC |
Supervisor |
Mei-hsiu Lin |
+886-4-2664-2254
hsiu@twport.com.tw |
FTZ Service Center, Anping Port (25 Xingang Road, South District, Tainan City)
Agency |
Position |
Name |
telephone no. & e-mail |
South Maritime Affairs Center, Maritime & Port Bureau, MOTC |
Officer |
Mei-hui Shen |
+886-6-300-0279
mhshen@motcmpb.gov.tw |
Anping Port Branch Office, Port of Kaohsiung, TIPC |
Manager |
Yu-Shao Ye |
+886-6-265-3014
ysyeh@twport.com.tw |
FTZ Service Center, Port of Kaohsiung (10 Penglai Road, Gushan District, Kaohsiung City)
Agency |
Position |
Name |
telephone no. & e-mail |
South Maritime Affairs Center, Maritime & Port Bureau, MOTC |
Officer |
Ko-Chiang Wang |
+886-7-262-0774
kcwang@motcmpb.gov.tw |
Business Division, Port of Kaohsiung, TIPC |
Deputy Director |
Yen-chao Wang |
+886-7-562-2380
T01550@twport.com.tw |
Business Division, Port of Kaohsiung, TIPC |
Manager |
Yong-mao Li |
+886-7-562-2207
T00117@twport.com.tw |
Taoyuan Airport Contact
Agency |
Position |
Name |
telephone no. & e-mail |
Taiwan Taoyuan International Airport Co. Ltd. |
Specialist |
Fu-yi Shiue |
+886-3-273-2103
smallsha@taoyuan-airport.com |
Farglory Free Trade Zone Co. Ltd |
Marketing Director |
Eric Chen |
+886-3-399-2888
T01550@twport.com.tw |
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