Legislative: |
1. Promulgated on August 5, 1981. 2. Amendment to Article 3, Article 13, Article 18 and Article21 promulgated on December 12, 1983. 3. Amendment to Article 2 promulgated on June 9, 1986. 4. Amendment to Article 2, Article 5, Article 9, Article 14, Article 16, Article 18, Article 21, Article 28 and Article 31 promulgated on May 17,1990. 5. Amendment to Article 8, Article 14, Article 19, Article 22, Article 26, Article 31, and Article 35~ Article 37 promulgated on June 19,2002. 6. Amendment to Article 7 and Article 19 promulgated on June 14,2006. 7. Amendment to Article 13 promulgated on November 28,2012. 8. Amendment to Article 6 and Article 35 promulgated on July 17, 2019. Following Executive Yuan Order Tai-Gui-Zi No. 1125014346 issued on July 27, 2023, authority over matters in the following provisions of the Act that previously fell under the jurisdiction of the Council of Agriculture, Executive Yuan, was transferred to the Ministry of Agriculture on August 1, 2023: Article 2; Paragraph 1 of Article 3; Article 4; Article 5; Paragraphs 1 and 4 of Article 8; Paragraph 12; Subparagraphs 3, 5, and 6 under Paragraph 1 of Article 13; Paragraph 3 of Article 14, Paragraph 2 of Article 15; Article 16; Paragraphs 1 and 3 of Article 22; Paragraph 2 of Article 26; Article 27; Article 29; Article 31; and Article 42. |
Content: |
Chapter 1 General Principles
Article 1
This Act has been enacted to establish and maintain order in the marketing of agricultural products, to regulate demand and
supply, and to promote transactional justice. Any matters not
covered by this Act shall be governed by other applicable
legislation.
Article 2
Competent authorities as defined by this Act: at the central
government level: the Council of Agriculture, Executive Yuan,
hereinafter referred to as the Central Competent Authority; at
the special municipality level, the respective special
municipal governments; at the county or city level, the
respective county or city governments.
Article 3
The following definitions apply in this Act:
1.Agricultural product: any vegetable, fruit, livestock, or
fishery product, or any other product from agriculture,
forestry, fishery, or animal husbandry, as well as its
processed product as designated by the Central Competent
Authority;
2.Agricultural wholesale market: an organization that
assembles and performs daily or periodic transactions of
agricultural products;
3.Farmer: A natural person directly engaged in the production
of agricultural products as defined by this Act;
4.Farmers’ organization: any legally organized farmers’
association, fishermen’s association, cooperative for
agricultural production and marketing, or cooperative farm;
5.Supplier: anyone who provides agricultural products to
agricultural wholesale markets;
6.Purchaser: anyone who purchases agricultural products from
agricultural wholesale markets;
7.Distributor: anyone who purchases agricultural products from
agricultural producers or agricultural wholesale markets and
ships and trades them in other markets;
8.Wholesaler: anyone who purchases agricultural products from
an agricultural wholesale market and sells them to retailers
or institutional consumers in the same market;
9.Retailer: a businessperson or entity that sells agricultural
products to consumers;
10.Agricultural corporation: a company engaged in agricultural
production as defined by this Act.
Article 4
The Central Competent Authority shall, in accordance with
national guidelines for agriculture production and marketing,
formulate national plans for the production, marketing, and
international trade of agricultural products. Local competent
authorities shall devise annual programs for implementing the
production and marketing plans.
Article 5
The Central Competent Authority shall monitor and report on
international circumstances in agriculture production and
marketing, as well as international market prices of
agricultural products. Special municipal, county, or city
governments shall monitor and report on domestic circumstances
of agriculture production and marketing, along with domestic
market prices of agricultural products.
Article 6
No one shall engage in the monopolization of the trade in
agricultural products, price manipulation, or intentional
deception regarding the quality or quantity of products to
gain an unfair advantage.
Additionally, no one shall deliberately disseminate rumors or
false information that could impact the prices of traded
agricultural products.
Chapter 2 Joint Marketing
Article 7
Joint marketing of agricultural products may be performed by a
farmers’ organization, taking two forms as following:
1.Wholesaling, which involves supplying for the purpose of
reselling or processing;
2.Retailing, which involves supplying directly to consumers.
In cases where farmers' organizations lack joint marketing
arrangements for certain agricultural products or
administrative divisions, farmers or agricultural production
and marketing groups may independently undertake such efforts,
with the government providing active assistance and guidance.
Article 8
Farmers’ organizations engaged in joint marketing and
distribution adjustments must receive assistance and guidance
from respective central and local competent authorities. The
regulations governing these organizations’ assistance and
guidance, incentives, joint marketing organization, training,
distribution adjustments, production and marketing forms,
cessation of operations, and monitoring shall be formulated by
the Central Competent Authority.
Agricultural products undergoing joint marketing by farmers’
organizations should be given priority at agricultural
wholesale markets.
The aforementioned joint marketing may be executed through
contracted production or supply between a farmers’
organization, its members, and agricultural wholesale markets.
Respective competent authorities shall award farmers’
organizations that exhibit outstanding performance in joint
marketing.
Article 9
Farmers' organizations may impose necessary expenses for joint
marketing on participating agricultural producers; the fee-
charging standards shall be reported to special municipal,
county, or city competent authorities for approval.
To apportion accidental losses incurred during joint marketing
of agricultural products, farmers' organizations may devise a
method to collect mutual aid funds from the proceeds payable
to the agricultural producers; this method is subject to the
submission to and approval by special municipal, county, or
city competent authorities.
Article 10
The land required for packing houses used by farmers'
organizations for joint marketing is regarded as agricultural
land and is entitled to the provisions under Article 15;
additionally, the packing houses are eligible for the
deduction of house tax under Article 17.
Article 11
Farmers or farmers’ organizations engaged in joint marketing
are exempted from stamp duties and business taxes when selling
their agricultural products.
Chapter 3 Wholesaling
Article 12
Agricultural wholesale markets are deemed public utilities,
and their establishment, as well as the scope of their
business operations, shall be planned by respective competent
authorities and may be funded through government budgets.
The plans proposed by local competent authorities are subject
to submission to and approval by the Central Competent
Authority.
Article 13
Entities eligible to operate agricultural wholesale markets
are limited to the categories outlined in the following
subparagraphs:
1.Farmers’ organizations.
2.Legal persons jointly funded by farmers’ organizations.
3.Legal persons jointly funded by farmers’ organizations and
government agencies/institutions or township/city offices.
4.Legal persons jointly funded by farmers and distributors of
agricultural products.
5.Legal persons funded by government agencies/institutions or
township/city offices.
6.Legal persons funded jointly by government
agencies/institutions or township/city offices, farmers’
organizations or farmers, and distributors of agricultural
products.
Entities operating agricultural wholesale markets shall not be
for profit; their organization, except for the category in
Subparagraph 1 in the previous paragraph, is subject to the
provisions of a Company Limited by Shares under the Company
Act, mutatis mutandis. However, legal persons under the
categories in Subparagraphs 2, 3, 5, and 6 are exempted from
the requirements for the number and qualifications of founders
specified in Article 128 of the Company Act.
Agricultural wholesale markets operated by entities under
Subparagraphs 1 and 2 in Paragraph 1 shall be given priority.
Those operated by entities under Subparagraph 4 in Paragraph 1
are not eligible for benefits specified in Articles 12, 15,
and 17, including funds, land access, and tax reduction.
Article 14
The establishment of an agricultural wholesale market requires
the submission of a proposal to the special municipal, county,
or city competent authority for approval before commencement.
After establishment, the operating entity may initiate
operations only after registering with and obtaining permits
from the local competent authority. Operations shall not be
halted or canceled without prior approval of the local
competent authority, except in cases of force majeure.
The local competent authority may revoke approval for
establishing an agricultural wholesale market if the entity
deviates from the approved proposal, except when such
deviation is approved based on valid reasons. Regulations
governing personnel, financial, and business management, as
well as utilization and management of market cash balance,
purchaser transaction suspension durations, cancellation of
purchaser’s permits, and other relevant matters are
stipulated by the Central Competent Authority.
Article 15
Agricultural wholesale markets have priority in leasing public
lands or purchasing them from the government at promulgated
prices. For private lands, the competent authority shall
facilitate purchase or initiate legal procedures for land
expropriation. Additionally, markets may utilize agricultural
lands as specified by law.
Any changes to the utilization of the lands referred to in the
preceding paragraph require prior approval from the competent
authority.
Article 16
In cases where the lands, buildings, and/or facilities
utilized by an agricultural wholesale market are provided by
the government or a farmers’ organization, the usage fee
shall be determined by the special municipal, county, or city
competent authority within the cap set by the Central
Competent Authority.
Article 17
Agricultural wholesale markets receive a 50% deduction on
house tax, land value tax, or farmland tax for lands and
buildings.
Article 18
Anyone falling within any of the following subparagraphs is
eligible to register as a supplier to agricultural wholesale
markets:
1.Farmers.
2.Farmers’ organizations.
3.Agricultural corporations.
4.Agricultural producers approved by the special municipal,
county, or city competent authority.
5.Distributors.
6.Importers of agricultural products.
Suppliers falling under Subparagraphs 2 to 6 in the preceding
paragraph are required to maintain transaction records. When
necessary, the special municipal, county, or city competent
authority may request access to those records, and the
supplier shall not refuse or interfere with such requests.
Farmers not registered as suppliers under Subparagraph 1 may
supply their agricultural products to an agricultural
wholesale market using their personal identification card.
Agricultural wholesale markets are prohibited from setting a
minimum supply amount for individual farmers.
Article 19
Anyone applying to become a purchaser at an agricultural
wholesale market shall submit a specified amount of
performance bond to the market and shall obtain a purchaser’s
permit.
The specific amount of the performance bond shall be
determined by each agricultural wholesale market, subject to
the submission to and approval by the local competent
authority.
Article 20
Suppliers or purchasers in an agricultural wholesale market
are prohibited from engaging in both purchase and supply
businesses within the same market.
Article 21
The initial wholesale transaction of agricultural products
shall take place in the local agricultural wholesale market
unless the following exceptions apply:
1.Products involved in joint marketing by a farmers’
organization for direct supply to export or processing.
2.Products retailed by farmers.
3.In areas where an agricultural wholesale market is not yet
established.
4.Farmers designated or approved by a project of the special
municipal, county, or city competent authority for direct
supply to export or processing.
Article 22
Anyone purchasing agricultural products from farmers in
districts without an established agricultural wholesale market
must carry a distributor’s permit, subject to inspection by
the competent authority when deemed necessary.
To obtain the distributor’s permit referred to in the
preceding paragraph, an application shall be made to the
special municipal, county, or city competent authority, with
no set cap on the number of permitted distributors.
Details related to the distributor’s permit, including
application procedures, criteria and required capital amount,
validity periods, and available supports and incentives, shall
be prescribed by regulations established by the Central Competent Authority for assistance, guidance, and management.
Article 23
To ensure a stable product supply, agricultural wholesale
markets may establish supply contracts, marketing programs
with guaranteed prices, financing arrangements, or other
applicable measures based on actual needs.
Article 24
In the initial wholesale transaction of agricultural products,
when the agricultural wholesale market issues sales vouchers
on behalf of farmers or farmers’ organizations, they shall be
exempted from stamp duties and business taxes.
Article 25
Transaction modes of agricultural wholesale markets include
auctioning, price negotiation, price marking, and bidding.
Suppliers may specify the lowest transaction price.
Article 26:
Suppliers are, in principle, responsible for grading and
packaging agricultural products sold at an agricultural
wholesale market. The market may assume this responsibility
for products not graded or packaged by suppliers, with
associated fees deducted from the payment for the products.
Regulations concerning grading and packaging standards,
periodic inspections, incentives for improvement, and the
purchase and usage of packing containers for agricultural
products shall be established by the Central Competent
Authority.
Article 27
Agricultural wholesale markets may impose a management fee on both suppliers and purchasers, with the fee-charging standards subject to review and approval by the Central Competent Authority.
Article 28
Agricultural wholesale markets offering grading, packaging, sorting, refrigerating, freezing, ice making, storage, transportation, electric slaughtering, or other related facilities may charge users fees based on fee-charging standards reviewed and approved
by the special municipal, county, or city competent authority.
Article 29
Operators of agricultural wholesale markets must obtain approval from the competent authority to engage in other
businesses. The operations and accounting of such businesses
shall be independent, and the competent authority may conduct
inspections at any time.
Article 30
Agricultural wholesale markets shall publicly announce
today’s transaction prices and quantities for its own
transactions and those of other important markets, at a
prominent location within the market.
Article 31
For unsatisfactory operation of an agricultural wholesale
market, the special municipal, county, or city competent
authority may issue an order for improvement or rectification.
When necessary, the local competent authority may request the
Central Competent Authority to mandate the market’s
reorganization, merger by operation of the law, or
cancellation of the operation permit.
Chapter 4 Retailing
Article 32
Any retail market engaged in agricultural product marketing
shall register with the special municipal, county, or city
competent authority.
Article 33
Farmers or farmers’ organizations may enter into contracts
with retailers or retailers’ organizations to supply
agricultural products required by the latter in districts
where no agricultural wholesale market has been established
yet.
Article 34
Special municipal, county, and city competent authorities
shall assist, guide, and manage the retailing of agricultural
products to safeguard public health, ensure production-
marketing coordination, and promote fair pricing and
profitability.
Chapter 5 Penal Provisions
Article 35
Anyone violating the provisions specified in Paragraph 1,
Article 6, or Paragraph 1, Article 14, shall be subjected to a
fine of more than NT$60,000 but less than NT$300,000, and
their permits shall be cancelled if applicable.
Anyone violating the provisions specified in Paragraph 2,
Article 6, in a manner that disrupts the orderly marketing of
agricultural products shall be subjected to a fine of more
than NT$60,000 but less than NT$300,000.
Article 36
Anyone violating the provisions specified in Article 20,
Paragraph 1 of Article 22, Article 29, or Article 32 shall be
subjected to a fine of more than NT$6,000 but less than NT
$30,000, and their permits may be canceled if applicable.
Article 37
Anyone falling under any of the following situations shall be
subjected to a fine of more than NT$3,000 but less than NT
$18,000, and their permits may be canceled if applicable:
1.Violating the provisions specified in Paragraph 2, Article
18.
2.Violating the provisions specified in Article 21.
3.Allowing others to use their distributor’s permit or
purchaser’s permit.
Article 38
Penalties stipulated in the Act shall be imposed by the
special municipal, county, or city competent authority after
conducting an investigation.
Article 39
Anyone who refuses to pay the fines stipulated in this Act
will be transferred to the court for compulsory execution.
Chapter 6 Supplementary Provisions
Article 40
(Deleted)
Article 41
(Deleted)
Article 42
The enforcement rules of this Act shall be established by the
Central Competent Authority.
Article 43
The effective date of this Act shall be determined by the
Executive Yuan through an order.
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