A Study on Free Trade Zones in Taiwan

• Main Authors: Lin Keh Wen, 林克文
• Other Authors: 郭冠廷
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/61998894620514257986

碩士 === 佛光大學 === 政治學系 === 96 === The design and establishment of Free Trade Zones (FTZ) is under the concept of “Inside the Country and Outside the Customs.” That is to say goods which enter into FTZs may freely circulate within a FTZ or among FTZs; the government exerts the minimum administrative control and gives the maximum degree of autonomy to businesses operating within a FTZ, and eliminates various barriers of legal system to business activities in order to facilitate goods movement to and from FTZs. The ultimate goal of FTZ is to develop Taiwan into a leading international trade hub and a logistics center in the context of trade liberalization and globalization. The legal system is characterized by free movement of goods, autonomous management and one-stop service. Enterprises may freely conduct warehousing, transshipment and value-added operations within a FTZ or among FTZs, and they are exempt from taxation such as customs duty, commodity tax and business tax and are given less bureaucracy and simplified customs clearance procedures. Facing fierce trade competition that resulted from globalization, businesses must transcend the limit of boundary and develop an operation model of Global Logistics Management (GLM). They must also pursue a best operation model of low cost and high efficiency with regard to material, labor force, technique, warehouse and transportation, and distribution. Taiwan is a member of world economy, so grasping cross-national production is vital to the upgrade of economy and the enhancement of national competitiveness lest domestic industries be marginalized in the international trend of transformation. Taiwan has just established FTZs not long ago. Spurred by the establishment of FTZs by neighboring countries and areas and influenced by the trend of signing Free Trade Agreements, Taiwan made a right decision to set up FTZs making better use of its geographic advantage and its R&D and manufacturing capabilities in high tech industries. There have been 102 enterprises operating in five FTZs (four for seaborne cargo and one for air cargo); we have seen initial operation benefits in land development, labor employment and trading revenue. This study will focus on Taiwan elaborating the history of development and current operation situation of Taiwan’s FTZs. Through interview with field experts, the author will expound the times that Taiwan chose to establish FTZs and their benefits. The author will also make comparison and analysis on some FTZs in neighboring East Asian countries for our references. By way of evaluating the strength, weakness, opportunity and threat (SWOT), we can clarify the core value of Taiwan’s policy of setting up FTZs both in temporal and spatial aspects. In conclusion, the author proposes humble opinions hoping to make a little contribution to Taiwan’s future economic development and the establishment of GLM center.