Tobacco & Alcohol Administration
1.The history and abolition of the tobacco and wine monopoly system
The implementation of tobacco and wine monopoly in Taiwan started under Japanese occupation. The system has been in force for over forty years, and the revenues derived from tobacco and wine monopoly has made great contributions to the government finance. Later, in observance of the incidental resolutions reached by the Legislative Yuan in abolishing the "Provisional Rules on Tobacco and Wine Monopoly in Taiwan Province", also to correspond with the negotiated requirements in Taiwan's bid to join the World Trade Organization, and to satisfy the trend of economic liberalization, the abolition of the tobacco and wine monopoly system has become an inevitable move.
2.Implementation of the new tobacco and alcohol administration system
In order to promote the change in the tobacco and alcohol administration system, the Ministry of Finance (MOF) had scheduled the following principles for system changes:
(1) Separating tobacco and alcohol administrative control from production and marketing management.
The Taiwan Tobacco & Wine Board (TTWB) transformed into an enterprise purely for tobacco and alcohol production and marketing, and was placed under fair competition with other tobacco and alcohol producers and distributors.
(2) Abolishing monopoly rights and return to normal taxation systems.
Tobacco and alcohol will be levied various taxes such as customs tariffs, tobacco and alcohol taxes, as well as business taxes.
(3) Gradually liberalizing the market to allow production of tobacco and alcohol by the private sector.
(4) Strengthening tobacco and alcohol control and taxation, imposing special controls on tobacco and alcohol quality, hygienic control, marking, advertising promotions, and taxation levies.
(5) Establishing adjustment measures to minimize impacts on existing businesses, and assisting tobacco farmers, wine brewers and grape farmers in switching to other trades or crops.
In order to promote the changes in the tobacco and wine monopoly system, the MOF had thereby drafted the Tobacco & Alcohol Administration Act and the Tobacco & Alcohol Tax Act to replace the Provisional Rules on Tobacco and Wine Monopoly in Taiwan Province, which allowed to provide a basis for future tobacco and alcohol control and taxation. The two regulations mentioned above had been promulgated by the President on April 19th, 2000, and implemented on January 1st, 2002.“The Tobacco and Alcohol Administration Act” has been amended for 4 times, and the last amendment was promulgated on June 18, 2014. Most of the articles had come into force since January 1, 2015, but for those articles concerning the adjustment of tobacco and alcohol business were implemented after a grace period. All articles of the amendment have come into force on July 1st, 2016.
3.Organizational structure and businesses of tobacco and alcohol administration
● Organizational structure and businesses of the central authorities
(1) Under the tobacco and wine monopoly system, the MOF (NTA) was responsible for supervising monopoly businesses, tobacco and alcohol negotiations, and drafting tobacco and alcohol related regulations.
(2) After abolition of the tobacco and wine monopoly system, the MOF (NTA) is responsible for amendment and interpretation of the Tobacco and Alcohol Administration Act, inspection of imported alcohol, issuance of license permits for producers and importers of tobacco and alcohol products, seizing of illegal products, collection of government fees, as well as the planning and execution of tobacco and alcohol businesses on a national level.
(3) The address of MOF (NTA) is: No.1, Ln. 142, Sec. 6, Roosevelt Rd., Wenshan Dist., Taipei City 116, Taiwan (R.O.C.), telephone number: （02）2322-8000, and Website address is www.nta.gov.tw/Eng.
● Organizational structure and businesses of tobacco and alcohol –central relevant authorities
(1)Ministry of Health and Welfare, MOHW: establish maximum standards for nicotine and tar contents in tobacco, and control of "health warning" displayed on tobacco, as well as advertisement control.
(2) Environmental Protection Administration, EPA: engage in the control of environmental protection items concerning tobacco and alcohol producers.
(3) National Communications Commission, NCC: monitoring of tobacco and alcohol advertisements on broadcast and televised media.
● Local tobacco and alcohol authorities: conduct inspections and investigations concerning tobacco and alcohol producers, as well as the planning and implementation of tobacco and alcohol affairs on a local level.
● The Taiwan Tobacco & Wine Board (TTWB)
(1) Under the tobacco and wine monopoly system, the TTWB was exclusively responsible for the production and distribution of local made tobacco and alcohol, clamping down of illegal tobacco and alcohol, and import permit of foreign tobacco and alcohol products.
(2) After the abolition of the tobacco and wine monopoly system, the authority for tobacco and alcohol administrative control returns to the Central Government, and TTWB remains as an enterprise purely for the production and distribution of tobacco and alcohol products.
● The Tobacco and Alcohol Administration Act
● Enforcement Rules of the Tobacco and Alcohol Administration Act
● Regulations Governing Undenatured Ethyl Alcohol
● Regulations Governing the Labeling of the Alcohol Products
● The Administrative Regulations Governing the Inspection of Imported Alcohol
● Regulations Governing Rewards for Informing or Discovering Offences of Illegal Tobacco or Alcohol
● Fee Standards for Examination of Applications, Issuance of Certification, and Granting of Permission as Charged to Importers and Producers of Tobacco and Alcohol Products
● The Hygiene Standards for Alcohol Products
● Hygiene Standards for Alcohol Products Containers
● Tobacco and Alcohol License Permit (Producers and Importers) at a Glance