Generally speaking, ICP proposals from the foreign contractors is prefered to be consistent with Taiwan Government’s industrial policies as well as the needs of domestic industries. The foreign contractor may choose to carry out any one of, or a combination of, the categories of eligible ICP transactions as described below. Any other ICP transactions that are conducive to the development of domestic industries can be executed upon the approval from the Executive Committee.
Foreign contractors may transfer technologies to local institutions or companies that are conducive to the development or upgrade of domestic industries. Relevant examples include bogies for the railway vehicles, small turbine engine design, and Photo Inkjet Printer.
The credits to be granted for technology transfer will be the sum of the following items: (i) the estimated fair market value of the technology to be transferred multiplied by a factor ranging from one(1) to ten(10); and (ii) the actual direct time-material costs plus other direct costs for the activities of technology transfer, multiplied by a factor ranging from one(1) to ten(10).
Research and Development
Foreign contractors may initiate joint R&D projects with local institutions and/or companies or establish R&D centers that are conducive to the development or the upgrade of domestic industries. For example, the development of computerized training for CBT, research on acoustic suppression of fan blade flutter, and the 16G seat development.
The credits to be granted for research and development will be the actual direct time-material costs and other actual R&D direct costs shared by the Contractor, multiplied a factor ranging from one(1) to ten(10).
Foreign contractors may set up a sole proprietorship or subsidiary in Taiwan or participate in a joint venture with government entities or private companies in Taiwan; for example, the investment in ACX and the investment in Pacific Communications Services Co., Ltd.
The credits to be granted for direct local investment will be the amount of the Contractor’s paid-in equity investment, multiplied by a factor ranging from one(1) to ten(10).
Foreign contractors may provide personnel training programs to local institutions or companies in engineering, management, operation, examinations, testing as well as services. The FAA test flight pilot training is one such program; and so are the training programs for composite boarded structure fabrication, precision casting of engines, incinerator operation, management and industrial safety technology, quality assurance and certification, and environmental protection, health and safety.
The credits to be granted for training will be the sum of the following items: (i) the estimated fair market value of the training to be given, multiplied by a factor ranging from one(1) to five(5); and (ii) the actual direct time-material costs plus other direct costs for the activities of training, multiplied by a factor ranging from one(1) to five(5).
International Marketing and Trade Promotion Assistance
Foreign contractors may provide local manufacturers with assistance in international marketing such as market research, market survey, establishment of a price evaluation system, drafting of sales contracts, and expansion of sales channels. In addition, foreign contractors may make unrestricted gifts to independent organizations recognized to be dedicated to expanding and enhancing trade with Taiwan. Through these activities, the competitive edge of local enterprises in the international market is enhanced. Relevant examples include the evaluation of the Asia-Pacific maintenance center, and the manufacture of composite interpolators.
The credits to be granted for international marketing assistance will be the actual direct costs incurred by the Contractor for such assistance, multiplied by a factor ranging from one(1) to five(5).
Foreign contractors may procure locally manufactured products designated or approved by the Executive Committee. In principle, locally procured products must be exported; however, products approved by the Executive Committee for use in the procurement projects are not subject to this restriction. Examples of local procurement include purchase of CNC engines, liquid crystal displays, F-16 jet fighter components.
The credits to be granted for local procurement will be the sum of value of purchase orders accepted and performed, multiplied by a factor ranging from zero point two five(0.25) to two(2), depending on the technology level required for the product procured.
Foreign contractors may provide local institutions with assistance in verification, validation or certification for products design, manufacturing, and maintenance, or other relevant document of potential suppliers review.