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Title: Refrigeration and Air Conditioning Industries Governance Act Ch
Date: 2004.04.14
Legislative: 1.Date:April 14,2004 (Announced)
Content: Chapter I - General Provisions

Article 1
This Act is enacted for the purpose of promoting the national energy policy, improving the
efficiency of energy use, elevating the technology of the refrigeration and air conditioning
enterprises, promoting the upgrading of the refrigeration and air conditioning industry, purifying
indoor air quality and protecting the health of all citizens.

Article 2
The competent authority shall mean the Ministry of Economic Affairs in the case of the central
government; the municipal government in the case of a municipality; or the county/city government
in the case of a county/city.

Article 3
The refrigeration and air conditioning enterprises under this Act shall mean enterprises engaging in
manufacturing freezing equipment, refrigeration equipment, air conditioning equipment,
environmental control equipment, clean rooms, chillers, energy storage equipment, and ventilation
equipment as well as planning, designing, supervising the construction of, appraising, inspecting,
constructing, installing, testing, servicing and maintaining related engineering work.
The planning, designing and construction supervision of the engineering work under the preceding
Paragraph shall be carried out in accordance with the Professional Engineers Act and the applicable
laws and regulations.
Where the equipment as referred to in the first Paragraph of this Article is not for public use, the
simple designs, construction supervision, installations or maintenance thereof are not subject to this
Act.

Article 4
When used in this Act, the following terms shall be defined as follows:
1. Freezing equipment: Equipment capable of lowering the temperature to below 0℃.
2. Refrigeration equipment: Equipment capable of lowering the temperature to below 10℃ but
above 0℃.
3. Air conditioning equipment: Equipment capable of controlling and adjusting the quality of indoor
air temperature, humidity, etc.
4. Environmental control equipment: Equipment that provides indoor environmental control needed
by industrial manufacturing processes.
5. Clean room: Special air treatment equipment that controls environmental factors, such as air
particles, micro-organisms, temperature, humidity, air pressure, type of air pressure motion, and air
movement.
6. Chiller: Refrigerating equipment that provides chilled water and brine needed by refrigeration
and air conditioning systems and processes.
7. Energy storage equipment: Storage tanks and equipment needed for freezing, refrigeration or air
conditioning.
8. Ventilation equipment: air conditioning equipment capable of intake of or output of air.
9. Full-time technician: A person having a refrigeration and air conditioning installation and repair
technician license.
10. Full-time engineer: A person having a refrigeration and air conditioning engineer, electrical
engineer or mechanical engineer license.

Article 5
A refrigeration and air conditioning enterprise shall not operate unless it has received a permit from
the competent authority in the municipality or county/city where the enterprise is located, has
obtained a business registration certificate, and joins a refrigeration and air conditioning engineering
industrial board of trade within one month.
The board of trade shall not unreasonably reject a membership application under the preceding
Paragraph.

Article 6
The central competent authority may entrust or commission the competent authority in a
municipality or county/city to grant a permit to a refrigeration and air conditioning enterprise,
approve its registration, revoke or rescind the permit, revoke or rescind the registration, order it to
suspend business or wind up its business, grant incentives or impose punishments, issue registration
certificates and perform other relevant tasks.

Article 7
A refrigeration and air conditioning enterprise shall faithfully operate its business using its expert
knowledge and shall not commit unjust acts in violation of its professional responsibilities when
performing designated or entrusted duties.
If a refrigeration and air conditioning enterprise causes damage to its principal or interested party
due to negligence, the enterprise shall be liable for damages.

Chapter II - Classified Administration

Article 8
The competent authority shall prepare a refrigeration and air conditioning enterprise directory
containing the following particulars:
1. The name, gender, date of birth, ID no., address, education and work experience of the
responsible person of the refrigeration and air conditioning enterprise.
2. The refrigeration and air conditioning enterprise's registration certificate number.
3. The territory where the enterprise operates.
4. The name, address and telephone number of the enterprise.
5. Other required matters.

Article 9
Refrigeration and air conditioning enterprises are categorized under Superfine Class or Class A, B
or C for meeting the following requirements:
1. A superfine refrigeration and air conditioning enterprise:
(1) Having a registered capital of more than NT$20,000,000.
(2) Having the experience or capability to manufacture or install an air conditioning system of more
than 1,000 tons or refrigeration engineering work of more than 500 horsepower.
(3) Employing at least one full-time engineer, one Class A technician, two Class B technicians, and
three Class C technicians.
2. A Class A refrigeration and air conditioning enterprise:
(1) Having a registered capital of more than NT$10,000,000.
(2) Having the experience or capability to manufacture or install an air conditioning system of more
than 500 tons but less than 1,000 tons or refrigeration engineering work of more than 200
horsepower but less than 500 horsepower.
(3) Employing at least one Class A technician, two Class B technicians, and three Class C
technicians.
3. A Class B refrigeration and air conditioning enterprise:
(1) Having a registered capital of more than NT$5,000,000.
(2) Having the experience or capability to manufacture or install an air conditioning system of more
than 100 tons but less than 500 tons or refrigeration engineering work of more than 50 horsepower.
(3) Employing at least one Class A technician, one Class B technician, and two Class C technicians.
4. A Class C refrigeration and air conditioning enterprise:
(1) Having a registered capital of more than NT$2,000,000.
(2) Having the experience or capability to manufacture or install an air conditioning system of less
than 100 tons or refrigeration engineering work of less than 50 horsepower.
(3) Employing at least one Class B technician and one Class C technician.
A full-time engineer may perform the work of a Class A technician, a Class A technician may
perform the work of a Class B or Class C technician, and a Class B technician may perform the
work of a Class C technician. The experience and capability and the qualifications of full-time
technicians and engineers under the preceding Paragraph shall be recognized by the method
prescribed by the central competent authority.
A Class C refrigeration and air conditioning enterprise may apply for change of its registration
certificate to a Class B refrigeration and air conditioning enterprise registration certificate only after
having manufactured or installed air conditioning systems totaling more than 100 tons or
refrigeration engineering work totaling more than 50 horsepower for more than one year. A Class B
refrigeration and air conditioning enterprise may apply for change of its registration certificate to a
Class A refrigeration and air conditioning enterprise registration certificate only after having
manufactured or installed air conditioning systems totaling more than 500 tons or refrigeration
engineering work totaling more than 200 horsepower for more than two years. A Class A
refrigeration and air conditioning enterprise may apply for change of its registration certificate to a
superfine refrigeration and air conditioning enterprise registration certificate only after having
manufactured or installed air conditioning systems totaling more than 1,000 tons or refrigeration
engineering work totaling more than 500 horsepower for more than three years.

Article 10
After a refrigeration and air conditioning enterprise's permit application passes the review of the
competent authority, the authority shall issue a registration certificate to the enterprise, publish the
particulars of the registration, and give a notice thereof to the refrigeration and air conditioning
engineering industrial board of trade.
A refrigeration and air conditioning enterprise registration certificate shall be valid for a period of
five years. Three months prior to the expiration of its registration certificate, a refrigeration and air
conditioning enterprise shall apply to the competent authority for renewal of its registration as well
as issuance of a new registration certificate. If no application for renewal is filed or the renewal
application is not approved, the original registration certificate shall become invalid upon the
expiration of the registration term.
The items subject to review for renewal application under the preceding Paragraph are the matters
set forth in the application documents as well as proof that taxes have been paid for the most recent
period.

Article 11
If a refrigeration and air conditioning enterprise suspends business, its registration certificate shall
be turned in to the competent authority for filing and recording and shall be returned upon
application for resumption of operations.
The period of suspension under the preceding Paragraph shall not exceed one year; otherwise, its
registration certificate shall be rescinded, provided that the suspension may be extended for one year
after the central competent authority approves an application for extension.
To close down or be dissolved, a refrigeration and air conditioning enterprise shall file a completed
application form together with its registration certificate to the competent authority for registration
of rescission.

Article 12
If a refrigeration and air conditioning enterprise suspends or resumes business or there is any
alteration in its original registered particulars, it shall file a report within 30 days from the date of
occurrence of the facts with the authority that registered the original particulars.
The provisions of Paragraph 1, Article 10 shall apply mutatis mutandis to the circumstances in the
preceding Paragraph.

Article 13
A refrigeration and air conditioning enterprise whose business registration is rescinded or that
suspends operations or voluntarily petitions for suspension of business shall cease operating a
refrigeration and air conditioning business from the day after the authority's decision or notice is
served. Nevertheless, if the enterprise has started work on but has yet to complete an engineering
project, the central competent authority may allow the enterprise to continue the work until the work
is completed.

Article 14
The central competent authority may, depending on the situation, conduct workshops or educational
training courses for full-time technicians. Full-time technicians of refrigeration and air conditioning
enterprises shall attend training courses or workshops on technical specifications within the time
limits set forth in the central competent authority's notices. If a technician fails any training or
workshop, the central competent authority may notify him/her to attend the training or workshop
again.
The guidelines for enforcing the provisions of the preceding Paragraph shall be prescribed by the
central competent authority.

Chapter III-Board of Trade

Article 15
A refrigeration and air conditioning engineering industrial board of trade shall be set up, be
organized and operate in accordance with the applicable provisions of Industrial Group Act.

Article 16
The refrigeration and air conditioning engineering industrial board of trade may be entrusted to
carry out surveys, analyses, valuations, research and other related activities on refrigeration and air
conditioning industries.

Article 17
The central competent authority may require the refrigeration and air conditioning engineering
industrial board of trade to report on the operational conditions, air conditioning employee turnover,
etc., of refrigeration and air conditioning industries.

Chapter IV - Encouragement and Punishment

Article 18
Encouragement given to refrigeration and air conditioning enterprises are as follows:
1. Public commendations.
2. Testimonials, medallions or professional medals.
Acts of refrigeration and air conditioning enterprises deserving the encouragement and the
guidelines for encouragement shall be prescribed by the central competent authority.

Article 19
If an enterprise operates a refrigeration and air conditioning business or places advertisements to
solicit refrigeration and air conditioning business without a registration certificate or when it is
punished with suspension of refrigeration and air conditioning operations or after its registration
certificate is rescinded, the enterprise shall be ordered to cease such operations and be fined not less
than NT$30,000 but not more than NT$150,000 and may be fined successively on a daily basis if it
continues its operations and does not do as ordered.

Article 20
In any of the following situations, a refrigeration and air conditioning enterprise shall be fined not
less than NT$20,000 but not more than NT$100,000.
1. The refrigeration and air conditioning enterprise operates a refrigeration and air conditioning
business without joining the refrigeration and air conditioning engineering industrial board of trade
in accordance with Paragraph 1 of Article 5.
2. The enterprise operates a refrigeration and air conditioning business without employing full-time
engineers or full-time technicians in accordance with Article 9.
3. The enterprise fails to apply for renewal under Paragraph 2 of Article 10 or refuses, hampers or
evades such renewal.
4. The enterprise suspends business, is punished with suspension of business, resumes operations or
closes down its business without observing the provisions of Article 11.
An enterprise conforming to the conditions set forth in Item 1 or 2 of the preceding Paragraph may
be ordered to suspend business or be given a time limit to complete the required procedures; if the
enterprise fails to complete the procedures within the time limit and continues operations, it may be
fined successively. An enterprise conforming to the conditions set forth in Item 3 of the preceding
Paragraph and that is given a time limit by the competent authority to complete the required
procedures, may be fined successively if it fails to do so within the time limit.

Article 21
A refrigeration and air conditioning enterprise in any of the following situations may be given a
warning or be punished with suspension of business for not less than three months but not more than
one year, depending on the circumstances:
1. The enterprise lends its refrigeration and air conditioning enterprise registration certificate to a
third party for operating a refrigeration and air conditioning business.
2. The enterprise is convicted by a court of law for arbitrarily cutting back materials/labor or
committing negligence, whereby a dangerous situation exists.
3. The responsible person of the enterprise is convicted by a court of law for illegally bidding for
any engineering project.
4. The enterprise prohibits its full-time technicians from attending training or workshops on
technical specifications notified by the central competent authority of such training or workshop.
5. The enterprise violates any other provisions of this Act.
If a refrigeration and air conditioning enterprise has been given three warnings, it shall be punished
with suspension of business for not less than three months but not more than one year; if an
enterprise has been punished with suspension of business for an accumulated period of three years
within a five-year period, its registration certificate shall be rescinded.

Chapter V - Additional Provisions

Article 22
A foreign refrigeration and air conditioning enterprise that has been incorporated and registered in
accordance with the laws of its home country shall apply to the central competent authority for a
permit to operate its business in Taiwan in accordance with this Act.

Article 23
An enterprise has obtained a refrigeration and air conditioning engineering enterprise registration
license in accordance with the previous Regulations Governing Refrigeration and Air Conditioning
Engineering Enterprises before the promulgation of this Act shall apply for replacement of its
original registration license with a refrigeration and air conditioning enterprise registration
certificate in accordance with the requirements set forth in Article 9 within one year upon the
promulgation of this Act.
An enterprise that violates the preceding Paragraph, its refrigeration and air conditioning
engineering enterprise permit and registration license shall have rescinded by public notices and the
authorities in charge of company or business registration shall be notified to rescind its company or
business registration or part of its registered particulars.

Article 24
The competent authority shall collect review fees, license/certificate charges, or service charges for
processing applications for reviewing or issuing, reissuing, replacing or changing certificates. The
fees shall be prescribed by the central competent authority.

Article 25
The permit application procedures and the formats of certificates under this Act shall be prescribed
by the central competent authority.

Article 26
The enforcement rules of this Act shall be prescribed by the central competent authority.

Article 27
This Act shall come into force from the date of promulgation.