Civil Aviation Law of the Republic of Chin (2005)

Regulation Governing Air Freight Forwarder

As promulgated by Presidential Decree on May 30, 1953, amended on January 4, 1974, November 19, 1984, January 27, 1995, January 21, 1998 and further amended of June 2, 1999.

 

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Chapter I.   General Chapter VI.  Management of Civil Air Transport Enterprise
Chapter II.  Aircraft Section One   Civil Air Transport Enterprise
Chapter III.  Airman Section Two   General Aviation Enterprise
Chapter IV.  Airport, Airfield & Navigation Aids Section Three   Air Freight Forwarder
Chapter V.  Flight Safety Section Four   Air Cargo Distribution Center
¡@ Section Five   Airport Ground Handling Services
Chapter VII. Foreign Aircraft or Foreign Civil air Transport Enterprise Chapter VIII (Deleted)
Chapter IX Liability for Compensation Chapter X Penalties
Chapter XI Supplemental Provisions ¡@

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Chapter I.   General

 

Article 1

This Law is enacted to insure the aviation safety, a sound civil aviation system, compliance with international civil aviation standards, and promote the development of civil aviation.

 

Article 2

The terms used in this Law are defined as below:

1)      ¡§Aircraft¡¨ means any airplane, airship, balloon or other apparatus that can derive support in the atmosphere from the reactions of the air other than the reactions of the air against the earth¡¦s surface.

2)      ¡§Airport Terminal¡¨ means an area of land that is used for the landing and takeoff of aircraft, including its buildings and facilities to load/unload passengers/goods.

3)      ¡§Flight¡¨ means takeoff, navigation in the air, landing of aircraft and its taxiing on the ground before takeoff and after landing.

4)      ¡§Airman¡¨ means aircraft pilot, flight mechanic, ground mechanic, air traffic controller, technicians employed by an aircraft maintenance facility and aircraft dispatcher.

5)      ¡§Airfield¡¨ means any land or water that is used for takeoff, landing and surface movement of aircraft.

6)      ¡§Navigation Aids¡¨ means facilities designed for the support of aviation communications, meteorology, radio and visual aids as well as other installations providing safety guidance to aircraft in flight.

7)      ¡§Airway¡¨ means a control area or portion designated by the Civil Aeronautics Administration (CAA) and thereof established in the form of a corridor equipped with radio navigation aids.

8)      ¡§Special Flight¡¨ means any approved single flight such as an aircraft test flight, acrobatic flight, flight beyond prescribed limits or repair as well as maintenance, and ferry flight.

9)      ¡§Air Traffic Control¡¨ means a service operated by an appropriate authority to promote the safe, orderly, and expeditious flow of air traffic.

10)  ¡§Pilot-in-Command¡¨ means the pilot responsible for the operation and safety of an aircraft during flight time.

11)  ¡§Civil Air Transport Enterprise¡¨ means an undertaking directly engaging in the transportation by aircraft of passengers, cargo and mail for compensation or hire.

12)  ¡§General Aviation¡¨ means a business engaging in aerial tourism, survey, photographing, fire-fighting and searching, paramedic, hauling and lifting, spraying and dusting, as well as those authorized and other-than-air transport of passengers, cargo and mail flight operations for compensation or hire.

13)  ¡§Air Freight Forwarder¡¨ means, with the exception of forwarding or the delivery of mail, a business authorized to forward, through a civil air transport enterprise, air cargo and international trade and commercial documents for others for compensation or hire.

14)  ¡§Airport Ground Handling Service¡¨ means a service that performs towing and guiding of aircraft on the ramp; loading and unloading of baggage, cargo and meals; and cleaning aircraft cabin and other associated tasks.

15)  ¡§Catering Service¡¨ means a caterer who transports meals and beverage and other necessary articles to and from aircraft on the ramp.

16)  ¡§Air Cargo Entrepot¡¨ means a business for importing, exporting, transferring, collecting and distributing of air cargo; of handling in-and-out airport control areas for customs formalities, warehousing arrangement, facilities and services, and is provided for compensation.

17)  ¡§Aircraft Accident¡¨ means an occurrence associated with the operation of aircraft which takes place between the time any person boards the aircraft with the intention of flight until such time as all such persons have disembarked, in which a person, either within or without the aircraft, is fatally or seriously injured or the aircraft sustains substantial damage or structural failure, is missing or completely inaccessible.

18)  ¡§Aircraft serious incident¡¨ means an occurrence associated with the operation of aircraft which takes place between the time any person boards the aircraft with the intention of flight until such time as all persons aboard have disembarked, which almost result in an accident.

19)  ¡§Aircraft incident¡¨ means an occurrence associated with the operation of aircraft which takes place between the time any person boards the aircraft with the intention of flight until disembarkation of all those on board, other than what happen in the preceding two items.

20)  ¡§Ultra-light¡¨: means an aircraft which has power and capacity to carry passengers, is less than two hundred and eighty kilograms in net weight, has a maximum fuel tank capacity of twenty eight liters, has a take off speed of less than sixty five kilometers per hour for maximum take off weight, and power shut down speed is less than sixty four kilometers per hour.

21)  Flight safety related event means any occurrence of aircraft accident, aircraft serious incident, and aircraft incident incurred in operations of aircraft and the occurrence of ground safety events incurred in non-operations of aircraft.

 

Article 3

The Ministry of Transportation and Communications (hereinafter referred to as MOTC) shall establish the Civil Aeronautics Administration (hereinafter referred to as CAA) to administer affairs relating to civil aviation.

Regulations governing the organization of CAA shall be enacted separately.

 

Article 4

The use of air space and demarcation of control area, control zone, restricted area, dangerous area and prohibited area shall be determined by the MOTC in coordination with the Ministry of National Defense.

 

Article 5

The first inbound landing of an aircraft originating from any point in a foreign country, or an outbound aircraft taking off from the Republic of China to another country, shall conduct such landing or takeoff at a designated international airport. However, exception may be made in case of an emergency.

 

Article 6

In the event it is necessary for an aircraft to land at a military airfield, or to utilize the facilities of a military airport, the owner or operator of the aircraft shall apply to the military authorities through CAA for permission. However, an exception may be made for emergency landing.

When taking off from and landing at a military airfield, aircraft shall observe regulations of the airfield and abide by the instructions of the airfield authorities.

Chapter II.  Aircraft

 

Article7

All citizens, legal persons and government organizations of the Republic of China may enjoy the right to own aircraft according to this Law and other related statutes. MOTC may impose restrictions on such ownership of non-public use aircraft if air space is limited or facilities at air terminals are inadequate.

Foreigners, aside from complying with the provisions set forth in Chapter VII, shall not own aircraft in the Republic of China.

 

Article 8

The owner or operator of an aircraft shall apply to CAA for aircraft registration. A certificate of registration shall be issued if the application meets all appropriate requirements. No ROC-registered aircraft shall be registered in a foreign country without first canceling its Chinese registration.

Aircraft that have been registered in a foreign country shall not be allowed to apply for registration in the Republic of China until its registration has been cancelled.

 

Article 9

The owner or operator of a ROC-registered aircraft shall apply to CAA for an airworthiness inspection. A certificate of airworthiness shall be issued if the aircraft is found in compliance with the inspection.

Classification and limitation of the above-mentioned airworthiness inspection, conditions for application, rating, cancellation and abolition as well as for revocation and renewal, rules of airworthiness maintenance & repair, signing of certificate, documentation, airworthiness checks and collection of certificate charges, shall all be stipulated by MOTC.

 

Article 10

An aircraft may be registered as ROC aircraft under any of the following categories:

1)      Owned by ROC citizens.

2)      Owned by government organizations of the ROC.

3)      Owned by the following legal persons who have a principal office in ROC in accordance with ROC laws:

1) Unlimited company completely owned by citizens of the ROC.

2) Limited company with over two thirds of capital owned by citizens of the ROC and represented by directors who are citizens of the ROC.

3) Company formed by shareholders of both limited and unlimited liabilities, whose unlimited liability shareholders are citizens of the ROC.

4) Company limited by shares, whose chairman and over two thirds of the directors are citizens of the ROC, as well as more than two thirds of its capital owned by citizens of the ROC.

5) Other legal persons whose representatives are citizens of the ROC.

Except otherwise prescribed in this law, aircraft other than that of ROC nationality may not apply for registration in this country.

 

Article 11

Any non-ROC aircraft purchased from a foreign country on conditional terms by ROC citizens, legal persons or government agencies pending entitlement of ownership, or any such aircraft leased from a foreign country for a period more than six months, may be registered as an ROC aircraft if its registration in the foreign country has been duly cancelled, provided the purchaser or lessee is responsible for operating such aircraft and employing the required personnel and equipment.

      The purchaser or lessee may apply to the CAA for appropriate registration. However, such registration shall not construe proof of ownership.

Renewal is not required for registrations found to be in compliance with the provisions of this Article prior to the effective date of this Amendment.

 

Article 12

After the aircraft has been properly registered, the ROC nationality marks and registration number shall be displayed on a conspicuous part of the aircraft.

 

Article 13

The certificate of registration shall become invalid upon any of the following events:

1)      Transfer of aircraft ownership.

2)      Aircraft is destroyed or damaged beyond repair.

3)      Aircraft is dismantled or abandoned.

4)      Forfeiture or loss of aircraft nationality.

 

Article 14

The certificate of airworthiness shall become invalid upon any of the following events:

1)      Expiration of the certificate.

2)      Invalidation or revocation of the certificate of registration.

3)      Aircraft fails to meet CAA airworthiness requirements.

 

Article 15

In case a registration or airworthiness certificate becomes invalid, CAA shall serve a public notice of its cancellation, and the holder of such certificate shall return it to CAA within twenty days from the date of invalidation.

 

Article 16

In case a registered aircraft is found to be in non-conformity with the provisions of the paragraph II of Article 8, Article 10 or Article 11, the CAA shall cancel the registration and order the certificate of registration be returned.

 

Article 17

At anytime a certificate of registration becomes invalid for reasons other than the two preceding articles, the CAA shall immediately revoke the aircraft registration certificate.

 

Article 18

Except as specifically provided in this Law, aircraft shall be governed by the provisions of the Civil Code and other appropriate laws.

 

Article 19

Aircraft may be an object of mortgage.

The provisions of the Chattel Secured Transactions Act with regard to movable property shall apply to mortgaging an aircraft.

 

Article 20

Unless duly registered, transfer of ownership, creation of mortgage, or lease of an aircraft, shall not be a defense against a third party.

 

Article 20-1

Rules governing the registration and cancellation of an aircraft nationality and ownership, mortgage and lease thereof, nationality insignia , registration numbering and registration fees shall be fixed by MOTC.

 

Article 21

Provisions of Article 11 to Article 14 and Article 16 to Article 19 of the Maritime Law shall apply to aircraft under joint ownership.

 

Article 22

Except as otherwise specified in this Law or other laws, aircraft shall not be detained, attached or provisionally attached from the time it takes off until completion of its flight.

 

Article 23

The design , manufacture, maintenance & repair, process of assembly and the end products of aircraft, aircraft engine and propeller, various aircraft equipment and component parts, shall be rated by CAA for a certificate.

Aircraft manufacturer shall submit aircraft production program in advance to CAA and complete provisional registration according to proper procedures. This will serve as basis for applying relevant certificates upon completion of manufacture. An aircraft having completed provisional registration pending formal registration shall not be used in general flight.

Aircraft provisionally registered as per above shall not be subject to the constraints of the terms of owners set forth in Article 10, paragraph one, subparagraph three and shall be exempt from provisional registration.

CAA may commission any other related agency, body or individual to perform the functions of rating prescribed in paragraph one. Measures concerning qualification, terms, obligation and supervision of those so commissioned shall be established by MOTC.

CAA shall establish the airworthy standards for the end products stated in paragraph one with regard to their design, manufacture, assembly, performance, operations limitation, flight maintenance & repair data.  Nevertheless, the airworthiness standards used in international practices, which are adoptable for domestic use, can be referred to after CAA approves.

MOCT shall provide rules governing the management of certification for the design, manufacture, assembly of the end products stated in paragraph one, for the rating classification and procedure, for setting up certification and technical documentation system, on application for rating or for increase or change of rating, on application for issuance, cancellation or renewal of a rating certification, for collection of certificate charges, for certification and regulating of manufacture and so forth.

MOTC shall set up rules for the end products stated in paragraph one with regard to rating classification and procedure of maintenance & repair factory, inspection handbooks, maintenance record, signing of certificate, conditions of maintenance & repair facilities, of equipment, tools and workers, institution of maintenance & repair and quality control systems, on application of rating, for increase or change of rating, for cancellation and renewal, collection of certificate charges and regulating of maintenance & repairs.

CAA may entrust other agency, body or individual to inspect a manufacturer or maintenance and repair factory with regard to their employees and facility and oversee their operations. Those being inspected shall not refuse, avoid or obstruct such inspections. The inspected shall be notified of any deficiency found and given a time limit in which to effect improvement. Subject to MOCT approval, CAA may suspend partial or entire operations of those who fail to make improvement within the time limit or for refusing, avoiding or obstructing inspections.

Chapter III.  Airman

 

Article 24

An airman shall be a citizen of the ROC, unless granted a special approval by MOTC.

 

Article 25

Airmen rated qualified after passing tests of theory and technology shall be issued a professional license by CAA. Only those in possession of such a license can be allowed to work on their respective jobs. The license should be carried with the person in performing his or her duties.

MOTC shall prescribe rules governing classification of ratings for the above-mentioned airmen, eligibility for applying a professional license and certificate of rating, items for tests of theory and technology, reexamination, periodical rechecks, additional rating, overdue rating, procedure for foreign airmen to apply for rating and collection of license fees.

The ratings of airmen in theory and technology as stated in paragraph one may be administered by a CAA commissioned agency or body. CAA shall prescribe measures relative to the qualification, condition, obligation and supervision of the agency or body so commissioned.

 

Article 26

CAA shall conduct periodical physical examinations of aircraft pilots, flight mechanics and flight controllers as well as temporary checks.

Those meeting the standard will be issued a Clean Bill of Health which should be carried with the person in performing his or her duties. Those who fail to pass the physical examination shall be suspended from duty.

CAA shall prescribe measures relating to the preceding airmen¡¦s bodily constitution, timing of examination, items of examination, procedure for requesting a review of those who fail to pass the examination and conditions for submitting such a request for review, the length of time required, collection of fees for such examination and rating, issuance of clean bill of health and the basis on which those who fail to pass examination must be suspended from duty.

Airmen¡¦s physical examination stated in paragraph one may be handled by a CAA commissioned agency or body. CAA shall provide measures relevant to the qualification, condition obligation and supervision of such an agency or body so commissioned.

 

Article 27

With a view to cultivating civil aviation personnel, MOTC may consult with the Ministry of Education (MOE) to establish a civil aviation school, or ask MOE to increase or adjust related departments in existing academic institutions.

Any private civil aviation training institution shall apply to MOTC for approval prior to getting accredited.

MOCT shall establish rules governing the above said airmen¡¦s training institutions with regard to classification of training, organization, application for setting up such a school, application for a permit, its cancellation and renewal, procedure for student enrolment, qualification of trainees, curriculum of training, facility and equipment for training, qualification of the faculty, as well as collection of license fees and management of training.

CAA shall establish a state-operated air terminal with MOTC approval. Air terminals to be operated by a municipality under direct Central Government jurisdiction shall have application submitted to CAA for MOCT approval before such air terminal can be established. The same applies in the event of abolishing an air terminal.

CAA may send personnel to inspect a civil aviation training institution; to monitor its operations including employees, training, and equipment; and to monitor its business.  The civil aviation training institution shall not refuse, avoid or impede such inspections, and will be notified of deficiencies if any, and shall improve within a certain period of time when so advised by the CAA.

Chapter IV.  Airport, Airfield & Navigation Aids

 

Article 28

CAA shall establish a state operated air terminal with MOTC approval. Air terminals to be operated by a municipality under direct Central Government jurisdiction shall have application submitted to CAA for MOCT approval before such air terminal can be established. The same applies in the event of abolishing an air terminal.

 

Article 29

An airfield may be established and operated by the central or local governments, by ROC citizens or legal persons specified in Article 10, paragraph 1, sub-paragraph 3 of this Law after applications filed with CAA and approved by MOTC in consultation with authorities concerned. The same requirements shall apply to the lease, transfer or abolition of airfields.

The operators and managers of an airfield as stated in the preceding paragraph shall be limited to ROC citizens.

 

Article 29-1

MOTC shall establish rules governing application for permission to set up a private airfield, application for a permit, registration, conditions for revocation and abolition, cancellation and renewal, collection of permit charge, suspension of operation or closure, flight control, meteorological forecast and weather report, designing and planning, safety service, request for temporary takeoff and landing and business management.

 

Article 30

No airport and airfield shall be utilized for any other purpose without CAA approval.

MOTC shall consult with the Ministry of National Defense for using a military airport or airfield.

 

Article 31

The installation, alteration and abolition of navigation aids within the territory shall become effective only with CAA approval.

Any person who installs such navigation aids shall comply with CAA regulations in managing these facilities.

 

Article 32

To bolster flight safety, CAA shall impose prohibition or restriction to a certain extent, on the heights of buildings and other obstructions around an air terminal, airfield or navigation aid installation and on the radiation angle of lighting thereof, and report the proposed move to MOTC which will consult with the Ministry of Internal Affairs (MOIA) and concerned agencies to reach consensus for a decision. It will then be announced by the municipal and county (city) governments. However, such a decision should not overrule any case of existing heights or lighting angles that has been specially approved by the Executive Yuan.

The MOTC in conjunction with MOIA and the Ministry of National Defense (MND) shall provide measures for regulating the heights of structures and radiation angle of lightings thereof, within certain range surrounding an air terminal, airfield and navigation aids, procedure for making public announcement, procedure for screening a proposed prohibition or restriction and for approving a special case.

 

Article 33

To deal with violation of prohibition or restriction rulings referred to in the preceding Article, CAA in conjunction with concerned agencies should notify the owner of the obstructive structure to make improvement within a time limit or to relocate. However, in the case of a specially approved structure as referred to in the preceding Article, the owner should be obliged to install obstruction lights and markings.

If such obstructive structures were already in place at the time the prohibition or restriction rulings were promulgated, CAA or the airfield manager shall pay compensation for relocation or for installing obstruction lights and marking.

 

Article 33-1

Buildings or other obstructive structures exceeding a certain height should have obstruction lights and markings installed. The allowable certain heights shall be affixed by MOTC in conjunction with the MOIA.

 

Article 34

Animals are prohibited from entering an airport, airfield or area of navigation aids. Animals or birds that have entered any of these areas which may have endangered aviation safety may be caught and/or killed.

The raising of pigeons or releasing of any objects that may be considered hazardous to flight safety is prohibited within a certain distance from the outer boundary of an airport or airfield.

The CAA or the airfield manager shall adopt appropriate measures to prevent racing pigeons, birds or animals from entering any area that is within a certain distance from the outer boundary of an airport or airfield.

The MOTC, in conjunction with organizations concerned, shall determine and advise the public the exact distance referred to in the preceding two paragraphs.

 

Article 35

In an effort to control the noise problem at civil airport, the CAA shall jointly collaborate with the Environment Protection Agency in the development of a noise abatement program.

CAA shall set up an ad hoc unit to carry out the task referred to in the preceding paragraph.

 

Article 36

The land needed for public airports, airfields and navigation aids may be requisitioned by the government in accordance with the laws.

 

Article 37

Fees shall be paid for the use of airport, airfield, navigation aids and related facilities. The scale of fees for using the above, for services rendered, and for noise control will be affixed and made public by MOTC.

The noise control fees referred to in the preceding paragraph shall be used exclusively for the control of noises.  It shall be used first in noise inhibiting facilities near an airport utilized by civil aircraft.  Any remaining money may be used to miscellaneous items such as local resident¡¦s health related compensation, electricity bill, house tax and land value tax.

Among various fees stipulated in paragraph 1, 8% of total amount of airport landing fees levied annually shall be earmarked as refunds to airports in accordance with the ratio each airport collect.  It shall be used as a subsidy for local resident¡¦s health related compensation, scholarship, social welfare, culture affairs, local infrastructure expenditure, and philanthropy.

The allocation and use of fees levied by paragraph 2 and 3 shall be formulated by MOTC.

Chapter V.  Flight Safety

Article 38

An aircraft shall carry the following documents during any flight:

1)      Aircraft registration certificate;

2)      Airworthiness certificate;

3)      Flight logbook;

4)      Passenger manifest when carrying passengers;

5)      Cargo and mail manifest;

6)      Aircraft radio station license.

If the documents described in the preceding paragraph are not in order or invalid upon the required CAA preflight checks, the flight shall be terminated.

 

Article 39

Special flight shall be performed only after an application filed with CAA has been approved.

 

Article 40

The owner or operator of an aircraft with an airworthiness certificate shall give the aircraft adequate maintenance and conduct preflight inspections according to regulations to insure the aircraft remain airworthy and meets appropriate safety standards.  If not airworthy, or so determined by the inspector or the pilot-in-command, the aircraft shall not be allowed to take off.

CAA shall send its staff or authorize another agency or body to send qualified technicians to inspect the aforesaid aircraft on periodical or spot-check basis in accordance with its regulations. The aircraft shall also be put under further CAA supervision. If the maintenance status falls short of airworthiness and safety requirements, the aircraft shall be grounded and its airworthiness certificate rescinded.

Civil Air Transport Enterprise shall publish its aircrafts¡¦ ages, flight hours, the latest maintenance records, and pilots¡¦ flight hours for passengers¡¦ reference in choosing carriers. 

Procedures for authorizing aircraft inspection, and the means or formats to publish the information mentioned in the preceding paragraph shall be formulated by MOTC.

 

Article 41

For the sake of flight safety, aircraft when airborne must submit to controls of general flight, visual flight and instrument flight and also follow instructions of flight control authority.

Measures of control for the above said general flight, visual flight and instrument flight shall be prescribed by CAA.

 

Article 41-1

Rules governing flight operation, preparation to flight, operational limitation to the performance of aircraft, aircraft instruments, equipment and documents, aircraft telecommunication and navigation equipment, aircraft maintenance & repair, the functions of flight crew, qualification of pilots and dispatchers, handbooks, forms and records, crew members for passengers cabin and security assignment shall be formulated by MOTC.

 

Article 41-2

Rules governing matters of flight safety-related such as publication of bulletins, fire-fighting, search & rescue, taking emergency measures, as well as investigation of non-aircraft accident or major incident, statistics and analysis, shall all be prescribed by CAA.

 

Article 42

No aircraft shall be allowed to fly over prohibited areas.

Aircraft flying over restricted or dangerous areas must comply with the applicable provisions of the regulations.

 

Article 43

Unless specifically permitted by CAA, aircraft shall not carry firearms, ammunition, explosives, poison gas, radioactive materials or other articles hazardous to flight safety.

Airmen, aircrew members and passengers shall not smuggle the abovementioned articles into an aircraft. Neither shall they use appliances that may interfere with aeronautical telecommunications from the time the aircraft door is shut with announcement forbidding such use up to the time the door is reopened.

The variety of the aforesaid appliances that may cause interference to aeronautical telecommunications shall be published by CAA.

 

Article 44

No object shall be dropped from an aircraft in flight, unless otherwise provided for by law, or unless the object dropped is necessary for the safety of flight or for rescue purposes.

 

Article 45

The pilot-in-command of an aircraft is directly responsible for the safe operation of that aircraft and may take any necessary steps to deal with an emergency.

 

Article 46

An aircraft, its passengers and cargo, shall be available for examination by appropriate authorities in accordance with law prior to and after a flight.

 

Article 47

CAA should help mediate in any dispute between the air carrier and passengers during or upon completion of a flight.

If passengers ignore efforts at mediation and refuse to leave aircraft after landing, the air carrier with CAA consent may request assistance of the Air Police Bureau to persuade or force passengers to leave aircraft after landing, the air carrier with CAA consent may request assistance of the Air Police Bureau to persuade or force passengers to leave aircraft.

Measures for mediation state in paragraph one shall be provided by CAA.

Chapter VI.  Management of Civil Air Transport Enterprise

 

Section One Civil Air Transport Enterprise

 

Article 48

Any person desiring to establish a civil air transport enterprise shall request MOTC through the CAA for permission to establish its business. Within a specified preparatory period the applicant shall, according to law, complete registration with appropriate authorities, execute agreements for conditional or unconditional purchase of aircraft, and submit to MOTC through CAA for approval.  If an applicant¡¦s business scope includes international transport, the applicant shall register with the Customs Office to acquire appropriate certification. The civil air transport enterprise may begin its operation only after receiving a same as business license from CAA.

The license shall become invalid if the enterprise fails to start operations within 24 months from the date the license was issued, or it has suspended operations over 6 months after starting its business. In this case, CAA shall report to MOTC to have the license revoked and notify agencies concerned to cancel its registration, unless an extension justified by special circumstances is applied for and approved through due process.

Before a civil air transport enterprise terminates its operation, advance notice must be served to MOTC through CAA. Within 30 days from termination, it should surrender the issued license for cancellation. If the license has not been surrendered within the 30-day period, CAA will issue a public notice advising that the license has been revoked.

 

Article 49

A civil air transport enterprise shall be formed as a company organization adhering to the following rules:

1)      Unlimited company with the entire body of its shareholders being citizens of the Republic of China.

2)      Limited company with over two-thirds of its total capital owned by ROC citizens, and its board directors being ROC citizens.

3)      Dual-partnership company whose unlimited responsibility shareholders are all ROC citizens.

4)      Company limited by shares with its two-thirds of capital owned by ROC citizens, and over two-thirds of its board chairman and board directors being ROC citizens.

For a company limited by shares, all the shares issued should be registered by name.

 

Article 50

A civil air transport enterprise should have secured international air traffic rights with relevant time zones and in possession of an air route certificate, before it can engage in international scheduled air carrier service on assigned air routes.

Similarly, civil air transport enterprise should have acquired aircraft takeoff & landing allotment for domestic airports or time zone and in possession of an air route certificate, prior to commencing domestic scheduled air carrier service on designated air routes.

The points of departure, intermediate points and destinations along the designated air routes related to in the foregoing two paragraphs, nature of service and validation date are all specified in the air route certificate.

Guidelines for the screening of international air traffic rights allocation stated in paragraph one shall be formulated by MOTC.

CAA shall prescribe measures for regulating aircraft takeoff & landing allotment for domestic airports and time zone.

 

Article 51

A civil air transport license or air route certificate is not transferable, and the license or certificate holder must not consider him- or herself as enjoying exclusive rights to operate the various services as prescribed in the permit or certificate thereof.

 

Article 52

A civil air transport enterprise holding an air route certificate, or any aircraft stopping over in ROC territory shall be required to carry mail in accordance with the provisions of the ROC Postal Law.

 

Article 53

Freight rates for airmail letters and air postal parcels shall be lower than those for ordinary air cargo.

 

Article 54

A civil air transport enterprise shall give priority to transport airmail over that of passengers and cargo.

 

Article 55

Civil air transport enterprise shall notify MOTC through CAA regarding its freight rates for moving passengers and cargo on international scheduled air routes. For those rates on domestic scheduled air routes, shall notify MOTC through CAA to approve the range between the highest and lowest freight rates.  The same procedure applies in the event of rate changes.

Rules governing the utilization of airfare, special methods, application procedures for approval, effective day and any other relevant matters shall all be formulated by MOTC.

As a favorable consideration to residents in remote offshore islands such as Penghu country, Chinmen county, Lienchiang county, Lanyu island and Green island both in Taitung county, airfare subsidies shall be offered for travel by air to and from their residence or between offshore islands.

Aircraft in use for the above purpose include fixed wing type and helicopters.

Air carriers serving offshore islands with fixed wing aircraft and/or helicopters should be rewarded.

Measures of granting airfare subsidies as described in third paragraph and of reward in preceding paragraph shall be drafted by MOTC for ratification by the Executive Yuan (Cabinet).

Article 56

A civil air transport enterprise shall submit periodical reports to MOTC for record through the CAA, pertaining to the following:

1)      Business matters.

2)      Financial matters.

3)      Operations matters.

4)      Maintenance matters.

5)      Shareholders holding 3% or more of total shares.

Whenever deemed necessary, CAA may inspect the business and financial conditions and other relevant matters of the civil air transport enterprise.

 

Article 57

CAA may provide personnel to inspect a civil air transport enterprise and monitor its operations including employees and equipment. The civil air transport enterprise shall not refuse, avoid or impede such inspections, and will be notified of deficiencies if any; and shall improve within a certain period of time when so advised by the CAA.

If no improvement has been made within the specified period, or the civil air transport enterprise refuses, avoids or impedes inspections, the CAA may, with MOTC approval, take action necessary to restrict or suspend all or part of the air routes served by the civil air transport enterprise.

 

Article 58

A civil air transport enterprise shall, in addition to action taken in compliance with law, make a report to MOTC for record through CAA regarding any of the following events:

1)      Increase or decrease of capital.

2)      Issuance of corporate bonds.

3)      Contracts entered into between one civil air transport enterprise and another, or with any other related enterprise with regard to lease, joint transport and agency matters.

4) Change or relocation of principal operations and maintenance facilities.

 

Article 58-1

        Civil air transport enterprises shall report to CAA with a performance plan of alliance and submit related documentation to apply for approval and to file an application for MOTC¡¦s approval for their alliance before starting the alliance operation.  The MOTC is able to approve such alliance with conditions, period, limitations or burdens.

In the event that the civil air transport enterprises fail to operate an alliance in accordance with the performance plan, or the approved reasons for the alliance to cease to exist, or the alliance cause violation of public interest or civil aviation development, the CAA is entitled to withdraw its approval, revise the contents of approval, order to stop the alliance or amend the alliance actions.

The alliance shall be subject to the Fair Trade Commission¡¦s approval if the alliance mentioned in the first paragraph meets the scope of alliance actions under Article 7 of the Fair Trade Law.  The Reviewing Rules for Approving the Alliance shall be promulgated by MOTC together with the Fair Trade Commission of the Executive Yuan.

 

Article 59

To serve the needs of public interest, CAA may, with MOTC approval, instruct any civil air transport enterprise to adjust or increase designated air routes.

 

Article 60

In the event of any urgent requirement by the government, a civil air transport enterprise shall accept the direction of MOTC to carry out designated transport assignments.

 

Article 61

When a civil air transport enterprise is dissolved in accordance with the law, its license and air route certificate shall simultaneously become invalid. The license and air route certificate shall be returned to CAA for cancellation within 30 days.

 

Article 62

A civil air enterprise shall not continue operation beyond the expiration date specified in the license or air route certificate unless an extension is applied for and is approved in accordance with the laws.

 

Article 63

(Deleted)

 

Article 63-1

Rules governing the business items of civil air transport enterprise, limitation of eligibility, application for permission to set up business, application for a permit, registration, cancellation and renewal, amount of capital, change in company registration, procurement of aircraft, conditional purchase & sale, lease of aircraft, limitation of aircraft age, air routes preparation, application for launching a flight, approval for alliance, collection of certificate fees, business management, as well as air routes preparation of foreign civil air transport enterprise, establishment of branch office, setting up a general agent, collection of certificate charges and management of operations shall all be formulated by MOTC.

 

Section Two General Aviation Enterprise

Article 64

Any person to start a general aviation business shall request permission for doing so from MOTC via CAA and, within allotted preparatory period, complete registration with concerned authorities, have aircraft made available capable of undertaking a safe general aviation service duly screened by CAA for MOTC approval. Business can begin upon issuance of a general aviation license from CAA.

General aviation business that fails to start operation over 12 months from the date the CAA license was issued, or has suspended operation over six months after start-up, shall have its license revoked by CAA, who will also notify concerned authorities to cancel its registration, unless there are good reasons to justify an extension.

The aforesaid extension shall not exceed a period of six months, and it can be granted only one time.

 

Article 64-1

Rules governing the business items of general aviation enterprise, application for permission to set up the said enterprise, application for a permit, registration, cancellation and renewal, amount of capital, change in company registration, procurement of aircraft, conditional purchase and sale, lease of aircraft, limitation of aircraft age, application for making a flight, collection of certificate charge and business management shall all be formulated by MOTC.

 

Article 65

Paragraph three of Article 48, Article 40, Article 56, Article 57and Article 60 shall apply to the general aviation industry.

Section three Air Freight Forwarder

Article 66

Any person aspiring to work as air freight forwarder shall apply to MOTC via CAA for permission to set up business. Within a specified preparatory period the applicant shall, according to law, complete registration with appropriate authorities and submit to MOTC via CAA for approval. The forwarder-to-be may start operation only after receiving a license from CAA.

If the air freight forwarder fails to start up for over six months from the date license was issued, or has suspended operation for over six months after start-up, CAA shall advise MOTC to have its license revoked and notify concerned authorities to cancel its registration, unless an extension with justifiable reasons is applied for and approved.

To close down business, the air freight forwarder shall report via CAA to MOTC for record and, within thirty days after closure, turn in the air freight forwarder license.  If the license is not surrendered in time, CAA will make known cancellation of the license in a public announcement.

The extension referred to in paragraph two may not exceed six months, and will be granted once only.

 

Article 66-1

Air freight forwarder must be formed as a company organization and comply to the following rules:

1)      Unlimited company whose shareholders are all citizens of the Republic of China.

2)      Limited company with more than half of its total capital owned by ROC citizens, and more than half of its board directors are ROC citizens.

3)      Dual-partnerships company whose unlimited responsibility shareholders are all ROC citizens.

4)      Company limited by share whose board chairman and more than half of its board directors are ROC citizens.

The above restrictions will not override otherwise provided in a treaty or agreement.

 

Article 67

A foreign air freight forwarder can set up a branch company in the ROC according to law, by applying for MOTC permission through CAA.

Article 68

An air freight forwarder shall, within 6 months from the end of each year, submit to the CAA for record the following papers relating to its air freight forwarding business:

1)      Balance sheet.

2)      Income statement and business income tax returns.

3)      Volume of freight exported and imported.

 

Article 69

CAA may provide personnel to inspect various facilities and operations of any air freight forwarder. The forwarder shall not refuse, avoid or impede such inspections, and will be notified of any shortcomings and told to improve within a certain period.

 

Article 70

An air freight forwarder shall not employ any of the following persons to a management position, and where there is already a person employed, he or she must be dismissed:

1)      A person implicated in any one of the circumstances outlined in Article 30 of Corporate Law.

2)      A person whose previous air freight forwarder license was revoked less than 5 years before assuming the managerial position.

The provision in the preceding paragraph shall apply to the company board of directors and supervisors.

 

Article 70-1

Rules governing air freight forwarder, application to set up a branch office of foreign air freight forwarder, for a license, registration, cancellation and renewal, amount of capital, change in company registration, collection of license fees and business management shall be enacted by MOTC.

Section four Air Cargo Distribution Center

Article 71

Any person wishing to establish an air cargo distribution center shall apply, along with relevant documents, to CAA for permission from MOTC. Within a specified preparatory period, the applicant should complete registration with appropriate authorities according to law, prepare necessary sites, equipment and facilities, register with the customs office, obtain relevant supporting documents and submit to MOTC via CAA for approval. Only after receiving an air cargo distribution center license issued by CAA can the center begin operations.

In the event the air cargo distribution center fails to start operation for more than six months after the license was issued, or has suspended business for over six months after starting up, the CAA shall advise MOTC to have its permission withdrawn, then revoke the license of the air cargo distribution center and notify concerned authorities to abolish its registration. However, an extension may be applied for on the basis of justifiable reasons.

The aforesaid extension, if approved, shall not exceed a period of six months, and it can be granted just once only.

 

Article 72

A civil air transport enterprise may request permission from the MOTC through the CAA to set up an air cargo distribution center to self-handle the collection and distribution of cargo carried by its own aircraft.