The total distribution process of an international trade channel is handled through

The most common distribution route in Taiwan moves products from suppliers to distributors, from distributors to retailers, and then from retailers to consumers. Some suppliers shorten distribution channels by distributing products directly through retailers. Multi-level marketing is common in Taiwan, and direct selling organizations are well established. Foreign firms, especially those selling high-end merchandise, often rely on agents to connect them with distributors. However, for certain products, such as apparel, distribution channels tend to be more complex. To learn more about using an agent or distributor, direct marketing, or joint ventures/licensing, refer to pages 42 and 43.

Among Taiwan’s seven major ports, Kaohsiung and Keelung are the biggest, handling the bulk of traded goods and serving as the starting point for island-wide distribution networks. Also important is the Port of Taichung, which handles raw materials and commodities for energy and heavy industry.

Using an Agent to Sell U.S. Products and Services

Most foreign firms gain their initial foothold in the Taiwan market by appointing a local agent. The prospect of an agent relationship appeals to many Taiwan firms, which are well-known for their trade prowess. If the size of the market warrants, companies may consider setting up a branch office or subsidiary in Taiwan.

The American Institute in Taiwan’s (AIT) Commercial Section provides several services to help U.S. firms export their goods and services to Taiwan. Through the office in Taipei (covering northern and central Taiwan) and a branch office in Kaohsiung (covering southern Taiwan), we offer a variety of resources and services to help U.S. companies successfully enter the Taiwan market, including market research, agent or distributor searches, trade missions, trade shows, business matchmaking, due diligence checks on potential business partners, product launches, and commercial advocacy. The first step is to contact your local U.S.

Export Assistance Center to discuss which services you may require. These offices can help U.S. exporters determine which international markets are suitable for their products and services. Alternatively, contact information for the AIT Commercial Section is as follows:

AIT Commercial Section (Taipei) Tel: 886-2-2162-2000

Fax: 886-2-2162-2519

Email:

AIT Commercial Section (Kaohsiung) Tel: 886-7-335-5006

Fax: 886-7-338-0551

Email:

Establishing an Office

Establishing a subsidiary, branch, or representative office in Taiwan is relatively straightforward. However, there are setup and logistical issues to consider and an array of forms and procedures to complete in the process. In addition, a Chinese language company name is required. It is strongly recommended that new firms consult with local attorneys and accountants in order to identify relevant industry issues and complete all necessary steps for establishing a new entity.

The Ministry of Economic Affairs (MOEA) provides information on investing and setting up a company in Taiwan through the InvesTaiwan office. In addition to the link, InvesTaiwan can be reached by telephone at

+886-2-2311-2031.

Direct Marketing

Multi-level marketing has become a lucrative second job for many Taiwan professionals. Recent figures indicate that more than 3.64 million (16 percent) of Taiwan’s total population of 23 million, 68.93 percent of them female, work for multi-level sales businesses. These firms mainly specialize in healthcare, skincare, and household products. (Source: Fair Trade Commission)

Joint Ventures/Licensing

Foreign investors who wish to establish new enterprises in Taiwan through joint ventures, technical licensing, or other methods must file an application for approval by the Investment Commission (IC) of the Ministry of Economic Affairs (MOEA). The IC should issue a decision within two months of receiving a completed application. Capital should not be remitted for a joint venture investment until approvals have been obtained. Information regarding regulations for approval and consideration of foreign investment or technical cooperation is available at the Investment Commission website.

Express Delivery

Express delivery is commonly used in Taiwan. The fastest door-to-door services may take as few as two to three business days to reach Taiwan from major U.S. cities. On average, express delivery takes about three to five business days.

Major Express Delivery Companies in Taiwan Airlife Freight (Taiwan) Corp. https://www.airlife-freight.com.tw/index.html

1F, No. 8, Lane 389, Sec. 5, Nanking E. Rd., Taipei 105, Taiwan

Tel: 886-2-27647711

Fax: 886-2-2769-2558

Email:

CNA International Logistics Co., Ltd. https://www.caie.com.tw/

2F, No. 158, Sec. 1, Xinsheng S. Rd., Taipei 10061, Taiwan Tel: 886-2-2394-6699

Fax: 886-2-2394-7799

Email:

DHL Taiwan

https://www.dhl.com/tw-en/home.html

1F, No. 82, Sec. 2, Jianguo N. Rd., Zhongshan Dist., Taipei 10416, Taiwan Tel: 886-2-2503-6858

Fax: 886-2-2505-0768

Federal Express Corporation (FedEx), Taiwan https://www.fedex.com/en-tw/home.html#

9F, No. 162, Sec. 2, Chang’an E. Rd., Zhongshan Dist., Taipei 10491, Taiwan Tel: 886-2-2181-1973

UPS International Inc. – Taiwan Branch Office https://www.ups.com/tw/en/help-center/contact.page

Address: 2F, No. 361, Danan Rd., Shilin Dist., Taipei 11161, Taiwan Customer Toll Free: 0800-365-868

Overseas dial-in: +886-2-2383-3868

United China Air Freight Co., Ltd. https://www.ucf.com.tw/?lang=en

1F, No. 105, Sec. 2, Jiuzong Rd., Neihu Dist., Taipei 11494, Taiwan Tel: 886-2-8791-9166

Fax: 886-2-8791-9260

Email:

Due Diligence

Prior to establishing a relationship with an unknown Taiwan company, it is wise to conduct a background check on the company. However, Taiwan’s privacy laws often make it difficult to collect background information on individuals. Local attorneys, accountants, and trade/industry associations can be excellent sources of information.

The AIT Commercial Section offers the International Company Profile (ICP) service to help U.S. firms conduct background checks in Taiwan. Please see Our services in Taiwan.

Resources

• AIT Commercial Section Services;

Commercial Service: International Company Profile (ICP) Service

The most common distribution route in Taiwan moves products from suppliers to distributors, from distributors to retailers, and then from retailers to consumers. Some suppliers shorten distribution channels by distributing products directly through retailers. Multi-level marketing is common in Taiwan, and direct selling organizations are well established. Foreign firms, especially those selling high-end merchandise, often rely on agents to connect them with distributors. However, for certain products, such as apparel, distribution channels tend to be more complex. To learn more about using an agent or distributor, direct marketing, or joint ventures/licensing, refer to pages 42 and 43.

Among Taiwan’s seven major ports, Kaohsiung and Keelung are the biggest, handling the bulk of traded goods and serving as the starting point for island-wide distribution networks. Also important is the Port of Taichung, which handles raw materials and commodities for energy and heavy industry.

Using an Agent to Sell U.S. Products and Services

Most foreign firms gain their initial foothold in the Taiwan market by appointing a local agent. The prospect of an agent relationship appeals to many Taiwan firms, which are well-known for their trade prowess. If the size of the market warrants, companies may consider setting up a branch office or subsidiary in Taiwan.

The American Institute in Taiwan’s (AIT) Commercial Section provides several services to help U.S. firms export their goods and services to Taiwan. Through the office in Taipei (covering northern and central Taiwan) and a branch office in Kaohsiung (covering southern Taiwan), we offer a variety of resources and services to help U.S. companies successfully enter the Taiwan market, including market research, agent or distributor searches, trade missions, trade shows, business matchmaking, due diligence checks on potential business partners, product launches, and commercial advocacy. The first step is to contact your local U.S.

Export Assistance Center to discuss which services you may require. These offices can help U.S. exporters determine which international markets are suitable for their products and services. Alternatively, contact information for the AIT Commercial Section is as follows:

AIT Commercial Section (Taipei) Tel: 886-2-2162-2000

Fax: 886-2-2162-2519

Email:

AIT Commercial Section (Kaohsiung) Tel: 886-7-335-5006

Fax: 886-7-338-0551

Email:

Establishing an Office

Establishing a subsidiary, branch, or representative office in Taiwan is relatively straightforward. However, there are setup and logistical issues to consider and an array of forms and procedures to complete in the process. In addition, a Chinese language company name is required. It is strongly recommended that new firms consult with local attorneys and accountants in order to identify relevant industry issues and complete all necessary steps for establishing a new entity.

The Ministry of Economic Affairs (MOEA) provides information on investing and setting up a company in Taiwan through the InvesTaiwan office. In addition to the link, InvesTaiwan can be reached by telephone at

+886-2-2311-2031.

Direct Marketing

Multi-level marketing has become a lucrative second job for many Taiwan professionals. Recent figures indicate that more than 3.64 million (16 percent) of Taiwan’s total population of 23 million, 68.93 percent of them female, work for multi-level sales businesses. These firms mainly specialize in healthcare, skincare, and household products. (Source: Fair Trade Commission)

Joint Ventures/Licensing

Foreign investors who wish to establish new enterprises in Taiwan through joint ventures, technical licensing, or other methods must file an application for approval by the Investment Commission (IC) of the Ministry of Economic Affairs (MOEA). The IC should issue a decision within two months of receiving a completed application. Capital should not be remitted for a joint venture investment until approvals have been obtained. Information regarding regulations for approval and consideration of foreign investment or technical cooperation is available at the Investment Commission website.

Express Delivery

Express delivery is commonly used in Taiwan. The fastest door-to-door services may take as few as two to three business days to reach Taiwan from major U.S. cities. On average, express delivery takes about three to five business days.

Major Express Delivery Companies in Taiwan Airlife Freight (Taiwan) Corp. https://www.airlife-freight.com.tw/index.html

1F, No. 8, Lane 389, Sec. 5, Nanking E. Rd., Taipei 105, Taiwan

Tel: 886-2-27647711

Fax: 886-2-2769-2558

Email:

CNA International Logistics Co., Ltd. https://www.caie.com.tw/

2F, No. 158, Sec. 1, Xinsheng S. Rd., Taipei 10061, Taiwan Tel: 886-2-2394-6699

Fax: 886-2-2394-7799

Email:

DHL Taiwan

https://www.dhl.com/tw-en/home.html

1F, No. 82, Sec. 2, Jianguo N. Rd., Zhongshan Dist., Taipei 10416, Taiwan Tel: 886-2-2503-6858

Fax: 886-2-2505-0768

Federal Express Corporation (FedEx), Taiwan https://www.fedex.com/en-tw/home.html#

9F, No. 162, Sec. 2, Chang’an E. Rd., Zhongshan Dist., Taipei 10491, Taiwan Tel: 886-2-2181-1973

UPS International Inc. – Taiwan Branch Office https://www.ups.com/tw/en/help-center/contact.page

Address: 2F, No. 361, Danan Rd., Shilin Dist., Taipei 11161, Taiwan Customer Toll Free: 0800-365-868

Overseas dial-in: +886-2-2383-3868

United China Air Freight Co., Ltd. https://www.ucf.com.tw/?lang=en

1F, No. 105, Sec. 2, Jiuzong Rd., Neihu Dist., Taipei 11494, Taiwan Tel: 886-2-8791-9166

Fax: 886-2-8791-9260

Email:

Due Diligence

Prior to establishing a relationship with an unknown Taiwan company, it is wise to conduct a background check on the company. However, Taiwan’s privacy laws often make it difficult to collect background information on individuals. Local attorneys, accountants, and trade/industry associations can be excellent sources of information.

The AIT Commercial Section offers the International Company Profile (ICP) service to help U.S. firms conduct background checks in Taiwan. Please see Our services in Taiwan.

Resources

• AIT Commercial Section Services;

Commercial Service: International Company Profile (ICP) Service

What is international marketing distribution?

What is a global distribution strategy?

Which of the following modes of distribution affords the most control over the distribution channels but often at a cost that is not practical?

What are the global marketing channels?

What is one of the key elements in distribution decisions when it comes to choosing channels?