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Laws and Regulations Regarding Hong Kong & Macao Affairs

Act Governing Relations with Hong Kong and Macau (History)

Act Governing Relations with Hong Kong and Macau

Promulgated by Presidential Order No. Hua-Tsung-(1)-Yi-Tze-8600080010 on April 2, 1997

Provisions Pertaining to Hong kong Implemented by Order of the Executive Yuan No.Tai-(86)-Chao-25199 on June 19,1997 to Take Effect on July 1,1997

Amendment of Article 24 promulgated by Presidential Order No. Hua-Tsung-(1)-Yi-Tze-8700121280 on June 17, 1998

Provisions Pertaining to Macau Implemented by Order of the Executive Yuan No.Tai-(88)-Chao-41883 on November 16,1999 to Take Effect on December 10,1999

Amendment of Articles 41, and addition of Articles 41-1 promulgated by Presidential Order on October 29, 2003 and implemented from March 1, 2004 by the Order of the Executive Yuan.

Amendment of Articles 47 and 62 promulgated by Presidential Order No. Hua-Tsung-(1)-Yi-Tze-09500075871 on May 30, 2006

CHAPTER I  General Principles

Article 1

This Act is specially enacted to regulate and promote trade, economic, cultural and other relations with Hong Kong and Macau.

For matters not provided for in this Act , the provisions of other relevant laws or regulations shall apply. However, the Act Governing the Relations Between Peoples of the Taiwan Area and the Mainland Area is not applicable except where explicitly specified in this Act .

Article 2

The term "Hong Kong" as used herein refers to Hong Kong Island, the Kowloon Peninsula, the New Territories and parts ancillary thereto, as originally administered by the United Kingdom.

The term "Macau" as used herein refers to the Macau Peninsula, Taipa Island, Coloane Island and parts ancillary thereto, as originally administered by Portugal.

Article 3

The terms the "Taiwan Area" and the "People of the Taiwan Area" as used herein shall be defined in accordance with the Act Governing the Relations Between Peoples of the Taiwan Area and the Mainland Area.

Article 4

The term "Hong Kong Residents" as used herein refers to persons who qualify for permanent residency in Hong Kong and who do not hold a travel document other than a British (Overseas) passport or a Hong Kong passport.

The term "Macau Residents" as used herein refers to those who have the right of permanent residency in Macau and hold no travel documents other than the Macau passport; or those who do hold a Portuguese passport but obtained the document in Macau prior to the end of Portuguese rule.

The rights and interests of Hong Kong or Macau Residents who are referred to in the above two paragraphs and who obtained the status of overseas Chinese prior to the end of British or Portuguese rule, as the case may be, and those of their spouses and children who meet the requirements for obtaining Republic of China nationality, shall be maintained and protected if such rights and interests were vested before the effective date of this Act .

Article 5

The Competent Authority referred to in this Act shall be the Mainland Affairs Council under the Executive Yuan.  

CHAPTER II  Administrative Affairs

Section 1  Organizations Dealing with Exchange Matters

Article 6

The Executive Yuan may establish or designate institutions, or commission non-governmental organizations in Hong Kong or Macau to handle matters regarding exchanges between the Taiwan Area and Hong Kong or Macau.

The Competent Authority shall submit regular reports on the operations of the above institutions or non-governmental organizations to the Legislative Yuan.

The organization and supervision of the commissioned non-governmental organizations mentioned in the first paragraph of this article shall be stipulated by law.

Article 7

Institutions that have been established or designated as well as non-governmental organizations that have been commissioned in accordance with the preceding article shall not enter into any agreement in any form with the Hong Kong or Macau government, or their respective authorized non-governmental organizations, without prior authorization of the Competent Authority.

Article 8

The Executive Yuan may allow the Hong Kong or Macau government, or their respective authorized non-governmental organizations, to set up establishments in and dispatch representatives to the Taiwan Area to handle matters regarding exchanges between the Taiwan Area and Hong Kong or Macau.

Personnel of said establishments must be residents of Hong Kong or Macau.

Article 9

The Executive Yuan may authorize the institutions or non-governmental organizations stipulated in Article 6 to certify documents produced in Hong Kong or Macau.

Any and all disputes concerning the substantive content of the documents mentioned in the preceding paragraph shall be settled by the relevant authority or court.

Section 2 Entry and Exit Administration

Article 10

People of the Taiwan Area who travel to Hong Kong or Macau shall follow the general exit rules; however, for those entering the Mainland Area via Hong Kong or Macau, relevant rules in the Act Governing the Relations Between People of the Taiwan Area and the Mainland Area shall apply.

Article 11

Hong Kong or Macau Residents may, with permission, enter the Taiwan Area.

Regulations governing such permission shall be formulated by the Ministry of the Interior, and submitted to the Executive Yuan for approval and subsequent promulgation.

Article 12

Hong Kong or Macau Residents may apply for temporary or permanent residence in Taiwan. The regulations and procedures for so doing shall be formulated by the Ministry of the Interior, and then submitted to the Executive Yuan for approval and subsequent promulgation.

Annual quotas may be imposed on the numbers of Hong Kong and Macau Residents that may be granted temporary or permanent residency if necessary.

Article 13

The provisions of Chapters 5, 6, and 7 of the Employment Services Act on the employment, supervision, and punishment of foreign workers shall apply, mutatis mutandis, to the employment in the Taiwan Area of Hong Kong or Macau Residents.

Employment in the Taiwan Area of those Residents of Hong Kong or Macau specified in Article 4, Paragraph 3, of this Act shall be subject to special regulations, which shall be formulated by the Council of Labor Affairs in conjunction with other relevant agencies and submitted to the Executive Yuan for approval and subsequent promulgation.

Article 14

A Resident of Hong Kong or Macau who is seeking to enter or who is staying in Taiwan may, under any of the following five circumstances, be deported directly by law enforcement agencies. However, if such a Resident is involved in a case in which judicial proceedings have already begun, consent of the judicial authorities concerned shall be obtained before deportation:

(1) Entering the Taiwan Area without permission;

(2) Remaining in the Taiwan Area beyond the length of the permitted stay;

(3) Engaging in activities incompatible with the stated purposes of stay;

(4) Committing criminal acts for which there is sufficient proof; or

(5) Being suspected, with sufficient evidence, of endangering national security or social stability.

A Resident of Hong Kong or Macau as described in the preceding paragraph may be detained and ordered into labor service prior to deportation.

The previous two paragraphs also apply to those Residents of Hong Kong or Macau who entered Taiwan prior to the implementation of this Act.

The rules for deportation mentioned in the first paragraph and for the establishment and administration of accommodation centers for the detainment of Hong Kong or Macau Residents as mentioned in the second paragraph shall be formulated by the Ministry of the Interior and then submitted to the Executive Yuan for approval and subsequent promulgation.

Article 15

People of the Taiwan Area shall, under either of the following circumstances, be liable for the expenses of detention and deportation:

(1) Enabling Hong Kong or Macau Residents to enter the Taiwan Area illegally; or

(2) Illegally hiring Residents of Hong Kong or Macau.

When several persons are liable for the expenses referred to in the previous paragraph, they shall be jointly and severally liable.

Expenses incurred in cases covered under Item (1) shall be collected by the deporting authority. Said authority shall notify liable parties of the deadline for payment and make available copies of all relevant invoices and statements. Cases in which payment is not received by the deadline shall be referred to the court for compulsory collection.

Article 16

Hong Kong or Macau Residents permitted to enter the Taiwan Area who have not maintained a registered domicile in the Taiwan Area for ten full years may not register as candidates for public office, serve in the military, or organize political parties.

Hong Kong or Macau Residents referred to in Article 4, Paragraph 3, of this Act, who have entered the Taiwan Area with permission but have not maintained a registered domicile in the Taiwan Area for one full year may not register as candidates for public office, serve in the military, or organize political parties.

Article 17

The same regulations governing the entry, residency and employment of Taiwan residents shall apply to local employees of ROC organizations in Hong Kong or Macau who have worked for said organizations over a specified period of time. This shall also be true for said employees' parents, spouses, children who have yet to attain the age of majority, and spouses' parents, when applying to enter the Taiwan Area.

Rules both for identifying the organizations and employees and for determining the period of employment referred to in the preceding paragraph shall be formulated by the Competent Authority and submitted to the Executive Yuan for approval and subsequent promulgation.

Article 18

Necessary assistance shall be provided to Hong Kong or Macau Residents whose safety and liberty are immediately threatened for political reasons.

Section 3 Cultural and Educational Exchanges

Article 19

The regulations governing Hong Kong or Macau Residents who enter the Taiwan Area for study shall be formulated by the Ministry of Education and submitted to the Executive Yuan for approval and subsequent promulgation.

Article 20

Regulations governing the verification and recognition of the academic records of Hong Kong or Macau Residents shall be formulated by the Ministry of Education and submitted to the Executive Yuan for approval and subsequent promulgation.

The academic records referred to in the preceding paragraph obtained before the end of British or Portuguese rule shall be governed by the original regulations and not by the regulations to be drawn up by the Ministry of Education as stipulated in the preceding paragraph.

Article 21

Hong Kong or Macau Residents may take the Examinations for Professionals and Technologists. The regulations governing the administration of said examinations for foreign nationals shall apply mutatis mutandis.

Article 22

The verification and recognition of the credentials of professional and technical personnel from Hong Kong or Macau shall be governed by the same regulations as those governing the recognition of credentials of foreign professional and technical personnel.

Article 23

Publications, motion pictures, videotapes, as well as radio and TV programs of Hong Kong or Macau origin may enter the Taiwan Area with permission, and may be published, produced, or broadcast in the Taiwan Area. The regulations governing such activities shall be formulated by the Government Information Office and submitted to the Executive Yuan for approval and subsequent promulgation.

Section 4 Transportation and Shipping

Article 24

Vessels of the Republic of China may sail to Hong Kong or Macau in accordance with the relevant laws and regulations. However, in the event of a threat to the security, public order, or interests of the Taiwan Area, the Ministry of Transportation and Communications or relevant agencies may impose necessary restrictions or prohibitions.

Vessels of Hong Kong or Macau may sail to the Taiwan Area in accordance with the relevant laws and regulations. However, the Ministry of Transportation and Communications or relevant agencies may impose necessary restrictions or prohibitions under any of the following circumstances:

(1) If the security, public order, or interests of the Taiwan Area may be threatened;

(2) If Hong Kong or Macau adopts discriminatory measures against vessels of the Republic of China; or

(3) If investigations prove that a vessel is owned by mainland Chinese company which without permission to sail between the Taiwan Area and Hong Kong or Macau .

Regulations governing affairs relating to vessels of Hong Kong or Macau when entering or exiting the ports and when berthing in ports in the Taiwan Area may be formulated respectively by the Ministry of Transportation and Communications or relevant agencies, and shall not be subject to the restrictions imposed by Article 25 of the Commercial Port Law.

Article 25

Foreign vessels may sail between the Taiwan Area and Hong Kong or Macau in accordance with the relevant laws and regulations. However, the Ministry of Transportation and Communications may, if necessary, restrict or prohibit the transportation of passengers and cargo based on the relevant provisions in the Shipping Industry Law.

Article 26

Civil aircraft registered in the Republic of China, Hong Kong or Macau may fly between the Taiwan Area and Hong Kong or Macau with permission from the Ministry of Transportation and Communications. However, in the event of changes in circumstances which possibly threaten the security of the Taiwan Area or constitute a major concern, the Ministry of Transportation and Communications may impose necessary restrictions or prohibitions.

Civil aircraft registered in Hong Kong or Macau which illegally enter the restricted areas of the Taipei Flight Information Region shall be warned or forced to leave the area, forced to land, or subjected to other necessary measures taken by agencies in charge of air defense.

Article 27

Foreign-registered civil aircraft may fly between the Taiwan Area and Hong Kong or Macau in accordance with air traffic rights exchanges and by reference to international air traffic conventions.

Foreign-registered civil aircraft which illegally enter the restricted areas of the Taipei Flight Information Region shall be warned or forced to leave the area, forced to land, or subjected to other necessary measures by agencies in charge of air defense.

Section 5 Economic and Trade Exchanges

Article 28

People of the Taiwan Area with income from Hong Kong or Macau sources shall be exempt from paying income tax on that income.

Juridical persons, organizations or other institutions of the Taiwan Area shall pay taxes on income earned in Hong Kong or Macau together with income from Taiwan. However, the amount of any taxes already paid in Hong Kong or Macau may be reported along with other taxes on foreign income already paid in accordance with the national tax laws of the source of income, and this amount may be deducted from the total amount of ROC taxes due.

The value of the deduction stipulated in the preceding paragraph shall not exceed the additional amount of tax due as a result of applying the appropriate tax rate to total combined taxable income from Hong Kong, Macau, and foreign sources, as well as domestic income.

Article 29

A Hong Kong or Macau Resident who has income from sources in the Taiwan Area shall pay income tax on said income in accordance with provisions of the Income Tax Law.

The income of Hong Kong or Macau juridical persons, organizations or other institutions from sources in the Taiwan Area shall be taxed in accordance with the provisions of the Income Tax Law governing profit-seeking enterprises headquartered outside the territory of the Republic of China.

Article 30

Individuals, juridical persons, organizations or other institutions of the Taiwan Area engaged in investment or technological cooperation in Hong Kong or Macau shall deal with the Ministry of Economic Affairs or other relevant agencies when applying for necessary permits or submitting required materials. The rules for this shall be formulated by the Ministry of Economic Affairs together with other concerned agencies and submitted to the Executive Yuan for approval and subsequent promulgation.

Article 31

The relevant regulations concerning foreign investment and remittance shall apply mutatis mutandis to investment in the Taiwan Area by Hong Kong or Macau Residents, juridical persons, organizations or other institutions. The regulations governing overseas Chinese investment and remittance shall apply mutatis mutandis to investment in the Taiwan Area by the Hong Kong or Macau Residents referred to in Article 4, Paragraph 3, of this Act.

Article 32

Financial and insurance institutions in the Taiwan Area may, with permission, establish branches or subsidiaries in Hong Kong or Macau. The relevant rules shall be formulated by the Ministry of Finance and submitted to the Executive Yuan for approval and subsequent promulgation.

Article 33

Relevant rules of the Act for Foreign Exchange Control shall apply mutatis mutandis to the regulation in the Taiwan Area of currency and negotiable instruments issued in Hong Kong or Macau, as long as they are fully backed by reserves and freely convertible.

In the event that the preceding conditions are not met, or if other major circumstances arise and are deemed harmful to the financial stability of the Taiwan Area, or as likely to seriously affect the financial policies of the Taiwan Area, then the inflow and outflow, exchange and other trading activities involving said currency and negotiable instruments in the Taiwan Area may be restricted or prohibited by the Central Bank of China in conjunction with the Ministry of Finance. However, said currency and negotiable instruments, if declared voluntarily to customs upon entry, may be taken out of the Taiwan Area.

Article 34

The Central Bank of China may regulate, restrict or prohibit the inflow and outflow of Hong Kong or Macau capital to and from the Taiwan Area when necessary to maintain the stability of financial or foreign exchange markets. The regulations for this shall be formulated by the Central Bank of China together with relevant agencies and submitted to the Executive Yuan for approval and subsequent promulgation.

Article 35

Trade between the Taiwan Area and Hong Kong or Macau may be conducted directly. However, if changes in the circumstances affect the major interests of the Taiwan Area, the Ministry of Economic Affairs, together with the relevant agencies, may impose necessary restrictions.

Hong Kong or Macau goods imported or carried into the Taiwan Area shall be deemed as imported items. The inspection, quarantine, administration, and taxation of such items shall thus be carried out in accordance with relevant import laws and regulations.

Goods exported to Hong Kong or Macau shall be deemed as export items and shall be treated in accordance with the relevant export laws and regulations.

Article 36

The intellectual property of Hong Kong or Macau residents or juridical persons may be copyrighted in the Taiwan Area in accordance with the Copyright Law, provided one of the following two conditions is met:

(1) The works are published or issued for the first time in the Taiwan Area or published or issued in the Taiwan Area within 30 days of their first overseas distribution; provided, however, that Hong Kong or Macau also accords the works of the individuals or juridical persons of the Taiwan Area protection under the same circumstances and that this is verified as true; or

(2) Individuals or juridical persons of the Taiwan Area may enjoy copyright protection in Hong Kong or Macau on the basis of agreements, accords, negotiations, and laws and regulations or customary practice in Hong Kong or Macau.

Article 37

The registration of or other procedures related to patents, trademarks, and other industrial property rights in the Taiwan Area for Hong Kong or Macau Residents, juridical persons, organizations or other agencies shall be permitted under any of the following circumstances:

(1) Hong Kong or Macau and the Taiwan Area are all participants in international accords or agreements for protection of patents, trademarks or other industrial property rights;

(2) Hong Kong or Macau signs a bilateral agreement with the Taiwan Area regarding the mutual protection of patents, trademarks or other industrial property rights, or a reciprocal accord conferring protection of patents, trademarks or other industried property rights is signed through organizations or institutions with the approval of the Competent Authority.

(3) When Hong Kong or Macau accepts the registration of or other application related to patents, trademarks, and other industrial property rights for individuals, juridical persons, organizations or other institutions of the Taiwan Area.

When Hong Kong or Macau recognizes priority rights with regard to registration of patents, trademarks, and other industrial property rights for individuals, juridical persons, organizations or institutions of the Taiwan Area, Hong Kong or Macau Residents, juridical persons, organizations or other institutions may claim priority rights if they apply to the Ministry of Economic Affairs within 12 months of their first application in Hong Kong or Macau.

The stipulated period in the preceding paragraph shall be six months for design patents or trademark registration cases.

CHAPTER III Civil Matters

Article 38

The Law Governing the Choice of Law in Civil Cases Involving Foreign Elements shall apply mutatis mutandis to civil cases involving Hong Kong or Macau. For cases not provided for in the Law Governing the Choice of Law in Civil Cases Involving Foreign Elements, laws of the locality having the most significant contact with said civil cases shall apply.

Article 39

Unapproved juridical persons, organizations, or institutions from Hong Kong or Macau can not commit juristic acts in the Taiwan Area.

Article 40

Should unapproved juridical persons, organizations, or institutions from Hong Kong or Macau commit, under their own names, juristic acts in the Taiwan Area together with other persons, such other persons shall be jointly and severally liable for such juristic acts along with the juridical persons, organizations, or other institutions from Hong Kong or Macau.

Article 41

The operation of a Hong Kong or Macau corporate organization in the Taiwan Area shall be governed, mutatis mutandis, by provisions of the Company Law dealing with foreign companies.

Article 41-1

Any company , which invested in Hong Kong or Macau by individuals, juridical persons, organizations, or institutions from the Chinese mainland, under the circumstances of Article 73 of the Act Governing the Relations Between Peoples of the Taiwan Area and the Mainland Area, could apply the relevant provisions in that Act to deal with investments or taxes in Taiwan .

Article 42

In determining the conditions for the validity, jurisdiction, and enforceability of civil judgements made in Hong Kong or Macau, Article 402 of the Code of Civil Procedure and Article 4, Paragraph 1 of the Compulsory Execution Law shall apply mutatis mutandis.

Article 30 through Article 34 of the Commercial Arbitration Act shall apply to the validity, petition for court recognition, and suspension of execution proceedings in cases involving civil arbitral awards made in Hong Kong or Macau.

CHAPTER IV Criminal Matters

Article 43

Provisions of the Criminal Code shall apply to the following offenses committed in Hong Kong, Macau, or on the vessels or aircraft of Hong Kong or Macau:

(1) Offenses provided in each item of Article 5 of the Criminal Code;

(2) Offenses provided in each item of Article 6 of the Criminal Code committed by civil servants of the Taiwan Area; and

(3) Offenses not provided in items (1) and (2) above, which are committed by persons from the Taiwan Area, or against persons from the Taiwan Area, for which the minimum penalty is imprisonment of three years or longer, unless said offenses are not punishable under Hong Kong or Macau laws.

The Criminal Code shall also apply to offenses provided in each item of Article 5 of the Criminal Code, which are committed by Hong Kong or Macau Residents in foreign areas, or to offenses not stipulated in items (1) and (2) of Paragraph 1 of this Article, which are committed against persons from the Taiwan Area for which the minimum penalty is imprisonment of three years or longer, and which are punishable under the laws of the foreign areas involved.

Article 44

A case in which a sentence has been reached in Hong Kong or Macau shall nevertheless be pursued in the Taiwan Area in accordance with the laws of the Republic of China. However, should a sentence have been partially or entirely executed in Hong Kong or Macau, the penalty shall accordingly be partially or completely exempted in the Taiwan Area.

Article 45

Hong Kong or Macau Residents who commit rebellion or treason in places other than the Taiwan Area and report said offenses when applying to enter the Taiwan Area shall be exempted from prosecution and punishment upon being granted permission to enter the Taiwan Area. This also applies to Hong Kong or Macau Residents who are specially approved by the Competent Authority to be exempted from filing such reports when entering the Taiwan Area to attend conferences or activities approved by the central authority.

Article 46

Hong Kong or Macau Residents and approved or recognized juridical persons shall enjoy the right to file criminal and civil complaints should their rights be infringed in the Taiwan Area.

Unapproved or unrecognized Hong Kong or Macau juridical persons shall enjoy the rights specified in the preceding paragraph to the extent that juridical persons from the Taiwan Area are accorded the same treatment in Hong Kong or Macau.

Laws and regulations promulgated in the Taiwan Area on the right to file criminal and civil complaints of unrecognized foreign juridical persons, organizations, or other institutions shall apply, mutatis mutandis, to Hong Kong or Macau juridical persons, organizations, or other institutions.

CHAPTER V Penal Provisions

Article 47

Those who enable Hong Kong or Macau Residents to illegally enter the Taiwan Area shall be sentenced to imprisonment of up to five years, temporary detention of no more than two months, and/or a fine of not more than NT$500,000.

Those who commit the offense specified in the preceding paragraph in an attempt to make profits shall be sentenced to imprisonment of at least one but not more than seven years and may be fined not more than NT$1 million.

Attempted crimes specified in the preceding two paragraphs are punishable.

Article 48

Any owner, operator, captain, or pilot of a Republic of China vessel who violates orders pertaining to the restrictions or prohibitions specified in Article 24, Paragraph 1, of this Act, shall be fined at least NT$1 million but not more than NT$10 million. Furthermore, the sea vessel may be enjoined from sailing for a specified period of time, its pertinent certificates and licenses canceled or revoked, and the professional licenses or credentials of its captain or pilot suspended or revoked. Any owner, operator, captain or pilot of Hong Kong or Macau vessel who violates orders pertaining to the restrictions or prohibitions specified in Article 24, Paragraph 2, of this Act, shall be fined at least NT$1 million but not more than NT$10 million.

Any foreign vessel that violates orders pertaining to the restrictions or prohibitions specified in Article 25 of this Act shall be fined at least NT$30,000 but not more than NT$300,000. Furthermore, said foreign vessel may be prohibited, for a specified period of time, from loading and unloading passengers and freight in harbors of the Republic of China, or entering and exiting harbors of the Republic of China.

When the vessels specified in the first and second paragraphs of this article are fishing boats, the fine shall be at least NT$100,000 but not more than NT$1 million.

Article 49

Any owner, user, captain or pilot of a civil aircraft registered in the Republic of China who violates the terms of permission, or the orders pertaining to the restrictions or prohibitions specified in Article 26, Paragraph 1, of this Act, shall be fined at least NT$1 million but not more than NT$10 million. Furthermore, such civil aircraft may be grounded for a specified period of time, its pertinent certificates canceled or revoked, and the professional licenses of its captain or pilot suspended or revoked.

Any owner, user, captain or pilot of a civil aircraft registered in Hong Kong or Macau who violates the terms of permission, or the orders pertaining to the restrictions or prohibitions specified in Article 26, Paragraph 1, of this Act, shall be fined at least NT$1 million but not more than NT$10 million.

Article 50

Any party engaging in investment or technical cooperation in violation of the provisions in Article 30 of this Act shall be fined at least NT$100,000 but not more than NT$500,000. Furthermore, said party shall be ordered to cease the investment or technical cooperation within a specified period of time. If the investment or technical cooperation is not ceased by the specified deadline, said party shall be repeatedly fined.

Article 51

Any party violating the provisions of Article 32 of this Act shall be fined at least NT$3 million but not more than NT$15 million. Furthermore, said party shall be ordered to suspend the establishment process within a specified period of time. If the establishment process is not suspended by the specified deadline, said party shall be repeatedly fined.

Article 52

Any party violating orders pertaining to the restrictions or prohibitions on the inflow and outflow of Hong Kong or Macau currency and negotiable instruments to and from the Taiwan Area provided for in Article 33, Paragraph 2, of this Act, shall have the undeclared currency or negotiable instruments confiscated by customs.

If orders pertaining to restrictions or prohibitions on the sale, exchange, or other transactions involving Hong Kong and Macau in the Taiwan Area provided for in Article 33, Paragraph 2, of this Act are violated, the currency, securities and other funds involved in such transactions shall be confiscated. If any bank or other institution designated by the Central Bank of China to conduct foreign exchange operations violates said orders, the Central Bank of China shall, according to the severity of the offense, partially or fully suspend the violator's foreign exchange operations for a specified period of time.

Article 53

Any party violating orders pertaining to the restrictions or prohibitions to be promulgated in accordance with Article 34 of this Act, shall be fined at least NT$3 million but not more than NT$15 million. If said party is a bank designated by the Central Bank of China to conduct foreign exchange operations, the Central Bank of China shall, according to the severity of the offense, partially or fully suspend the violator's foreign exchange operations for a specified period of time.

Article 54

Any person violating the provisions of Article 23 of this Act shall be fined at least NT$40,000 but not more than NT$200,000.

The publications, films, videotapes, and radio and television programs covered in the preceding paragraph shall be confiscated regardless of ownership.

Article 55

The fines prescribed in this Act shall be imposed by the agencies concerned. Cases in which said fines are not paid within the specified period of time shall be referred to the court for compulsory collection.

CHAPTER VI Supplementary Provisions

Article 56

Mutual judicial assistance between the Taiwan Area and Hong Kong or Macau shall be conducted on a reciprocal basis.

Article 57

Prior to the establishment of direct postal, transportation and commercial links between the Taiwan Area and the Chinese mainland, Hong Kong and/or Macau shall be considered as third areas.

Article 58

Permits granted before this Act is implemented to Hong Kong or Macau Residents for entry to the Taiwan Area or for other matters legally requiring permission shall not be revoked or changed after this Act is implemented, unless there are changes in the rules and regulations or the facts by which said permits were granted, or there is some other legal basis by which it should be revoked.

Article 59

Pursuant to the provisions of this Act concerning the issuance of permits and licenses, all relevant agencies, as well as the institutions and private organizations specified in Article 6 of this Act shall collect screening and licensing fees, wherein the standards for said fees are to be set by the relevant agencies.

Article 60

Following the implementation of this Act, should any change occur in the situation of Hong Kong or Macau such that the implementation of this Act endangers the security of the Taiwan Area, the Executive Yuan may request the President to order suspension of the application of all or part of the provisions of this Act pursuant to Article 2, Paragraph 4, of the Additional Articles of the Constitution. Furthermore, the Executive Yuan shall submit its decision and reasons within ten days to the Legislative Yuan for confirmation. Should half of the Legislative Yuan membership vote to withhold confirmation or to not deliberate the motion, said decision shall become null and void. To restore all or part of the provisions, the same procedures shall apply.

Should the application of any part of this Act be suspended and no other laws or regulations be formulated to govern relations between the Taiwan Area and Hong Kong or Macau, the relevant provisions of the Act Governing the Relations Between People of the Taiwan Area and the Mainland Area shall apply.

Article 61

The Enforcement Rules for this Act shall be formulated by the Executive Yuan.

Article 62

The implementation date for this Act shall be designated by the Executive Yuan. However, the Executive Yuan may designate separate implementation dates for all or part of its provisions as conditions warrant.

The amendments made to this Act on May 5, 2006 shall take effect on July 1, 2006.

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