Manufacturing Food Products in Taiwan
Updated on Tuesday 09th July 2019
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When manufacturing food products in Taiwan, local and foreign companies have to comply with a set of regulations; such policies can refer to the safety of the products, the handling of the food products, the manner in which they have to be stored, the technical requirements applicable during the transportation of the food products, their labelling and numerous others.
Since food products can occasionally be contaminated with various toxic agents, a company manufacturing food products in Taiwan must also ensure a traceability system; our team of consultants in company registration in Taiwan can assist with an in-depth presentation on the rules imposed on businesses manufacturing food products; our representatives can also provide legal representation when starting this type of company.
What are the obligations of a food manufacturing business in Taiwan?
As presented above, a business manufacturing food products in Taiwan has to comply with a set of regulations that prescribe the standards at which such companies can conduct business activities. A company involved in the food industry must obtain specific licenses and permits for developing its activities from the relevant bodies. One of the main rules which establishes the obligations of a company manufacturing food products in Taiwan is the Act Governing Food Safety and Sanitation. The legislation stipulates the following:
- a business manufacturing food products in Taiwan will be considered a food business (Article 3);
- companies can be required to stop their manufacturing activities provided that the competent authority has detected food safety risks (Article 4);
- the company manufacturing food products in Taiwan must also register its factory where it carries its operations;
- Article 15 of the law stipulates that a food manufacturing company is not allowed to use goods that do not respect the health and sanitation standards applicable in Taiwan;
- this applies to goods that are deteriorated, that passed their expiration date, that are unripe, harmful for the human health, that have a higher level of pesticides or additives beyond the legal requirements;
- all food businesses, including food manufacturing companies, need to obtain a permit (Article 21) in order to lawfully develop commercial activities.
What is the value of the food market in Taiwan?
Those who want to open a company in Taiwan in the food industry should know that the production value of this market sector stood at $19,8 billion at the level of 2010. It had the highest level in 2013, when it reached $21,8 billion. The lowest value registered since 2010 and up until now was in 2016, when it accounted for $17,67 billion; in 2018, it reached a total of $17,9 billion. Foreign investors should also know the following details:
- the food processing industry in Taiwan accounts for a total of 6,215 companies;
- these companies represent an employment market of 160,000 employees;
- the food processing industry in Taiwan accounted for 3,2% of the country’s gross domestic product at the level of 2017;
- the top food imports in Taiwan (in the form of agricultural products) are from the United States of America, which has the highest share, of 28% of all the food imports;
- the other two top import markets are the European Union (accounting for 17%) and New Zealand (12%).
Are there any legal requirements for food additives in Taiwan?
Yes, companies manufacturing food additives in Taiwan have to comply with the national standards; our team of specialists in company formation in Taiwan can present the main regulations necessary in this case and the institutions which must approve the quality standards of such food products. The main institution that provides its consent for manufacturing food additives in this country is the Taiwan Food and Drug Administration.
Companies manufacturing food additives that will be used for food products can only manufacture additives that are included on the official list of approved additives. The extensive list of food additives, comprised of approximately 800 substances, is given by the Standards for Scope, Application and Limitation of Food Additives.
Companies manufacturing food products will also have to comply with environmental regulations, which are enforced by the Taiwan Environmental Protection Administration. It is necessary to know that following the regulations available in this country, the manufacturing company is the one in charge of the correct recycling procedure or disposal of various food products and their packaging, following specific methods. Businessmen are welcome to address to our team of consultants in company registration in Taiwan for further details on other legal requirements available for food manufacturing businesses.