At a recent meeting of the e-commerce development task force, Minister without Portfolio Tsai Yu-ling asked government agencies to connect to this global trend with an open mind, saying e-commerce could help Taiwan to break down international barriers to trade.
Tsai convened the meeting, which was also attended by 15 deputy ministers and the following 10 representatives of the Taiwan Internet and E-Commerce Association (TIEA) and Chinese Non-Store Retailer Association (CNSRA):
Jan Hung-tze, chairman of both PChome Online and the TIEA
Liao Shang-wen, chairman of both Eastern Media International Corporation and the CNSRA
Bill Lin, general manager of PayEasy
Gao Ming-yi, general manager of Books.com.tw
Allen Chang, general manager of FashionGuide
Jerry Chan, general manager of Neweb Technologies Co., Ltd.
Lin Wei-yong, senior manager of Yahoo!Kimo
Lin Zai-shang, director of Momo Mall
Jullian Wu, secretary-general of the TIEA
Bo You-lin, secretary-general of the CNSRA
The attendees exchanged opinions on future cross-border e-commerce development policy as well as barriers such as restraints on online transactions and products and regulations regarding online advertising.
Jan said the competitiveness of Taiwanese products is the advantage of Taiwan's e-commerce overseas, and he called for formulation of a comprehensive plan starting from providing assistance to industries with a regional focus. The government should give language support to industries engaged in international trade negotiations, eliminating cross-border imparity and establishing a healthy e-commerce environment, he recommended.
Liao pointed out the long-established prohibition of online trade of liquors. Saying that apart from countries that prohibit the liquor trade because of religious reasons, most nations have no restrictions on online liquor sales, he asked the government to properly open and regulate the online liquor market.
In response, Minister Tsai reiterated that selling alcohol to children and teenagers is prohibited and suggested creating a mechanism to prevent minors from making such purchases online. She noted that certain countries require shipping service providers to obtain special permits to ship alcohol, packages containing it to be specially labeled, and customers to present personal identification documents to receive it. Tsai directed the National Treasury Administration to consult overseas measures and invite alcohol vendors as well as children's welfare and civic groups for further discussion.
As announced last year by the Ministry of Health and Welfare (MOHW), a total of 455 pharmaceutical products including Chinese herbal medicine alcohol, menthol liquid, and ointment are to be permitted for online sale by qualified vendors.
In 2012, mail order or online purchase was permitted for 721 Class I low-risk medical devices, including band-aids, gauze, and denture cleaning tablets. Five more Class II medium-risk medical products joined the list in 2014, including body fat meters, condoms, and tampons, and the MOHW is considering extending permission to more Class II medical devices that are non-invasive, non-transplant, for household uses, and do not require professional instruction for mail or online sale.
Also discussed at the meeting were social media and word-of-mouth marketing methods commonly seen for skin care or cosmetic products sold online, including whether such marketing should be viewed as advertisement and thus subject to prior censorship and whether online platforms and bloggers are to be held accountable in cases of regulatory violations.
The MOHW responded that the issue involves amending the Statute for Control of Cosmetic Hygiene, adding that it will continue discussions with the private sector and legislators. As for other issues discussed at the meeting concerning regulations and enforcement, Minister Tsai pledged to continue relevant coordination at the task force's future meetings.
Thus far, government efforts to promote cross-strait trade and e-commerce include:
- To fast-track quality inspection for products exported to mainland China, the Bureau of Standards, Metrology and Inspection has facilitated standard inspection for such goods in accordance with the Cross-strait Agreement on Cooperation in Respect of Standards, Metrology, Inspection and Accreditation. It will gradually expand the list of products eligible for this inspection standard and promote local inspection.
- For agricultural products, the Council of Agriculture has implemented the Cross-strait Agreement on Cooperation in Inspection and Quarantine of Agricultural Products and will endeavor to establish rapid and direct customs procedures for fruit products, initially mangos, pineapples and sugar apples.
- In permitting imports of mainland Chinese cosmetic products, the MOHW is welcoming cooperation of cross-strait inspection agencies and the possibility of discussing mutual certification standards for cosmetic products, in accordance with the Cross-strait Agreement on Medical and Health Cooperation. However, as some businesses expressed concerns about unequal customs and inspection procedures in e-commerce trade across the strait, Minister Tsai encouraged the Taiwan Internet and E-Commerce Association to list the details of dissimilarities so that she and the task force can coordinate and tackle the problems.
- As for virtual payments for online games, the Executive Yuan will convene another meeting for related ministries to report on the current industry development strategies, international trends, and market barriers before inter-ministry coordination is carried out to search for the best solutions.