Exporting To Taiwan: How To Protect Your Wine Trademark And Navigate The Import Procedures

By Marie-Claude Veillette www.globalwinemeetings.com

Global Wine & Spirits – 2016 Market StudyTHE TAIWANESE WINE MARKET

INTRODUCTION 2

HOW TO PROTECT YOUR WINE & SPIRITS TRADEMARK IN TAIWAN 3

WHAT IS A TRADEMARK? 4

DO TRADEMARKS, COPYRIGHTS, AND PATENTS PROTECT THE SAME THINGS? 4.1

IS IT MANDATORY TO REGISTER A TRADEMARK IN TAIWAN? 4.2

IMPORT PROCEDURES 5

TAXES ON ALCOHOL AND CUSTOM DUTIES 5

ABOUT GLOBAL WINE MEETINGS 6

INDEX 7

Table of Contents

2THE TAIWANESE WINE MARKET

Taiwan is one of the fastest-growing markets for imported wine and spirits in the world. Since joining the World Trade Organization in 2002, Taiwan has become increasingly open to exports from around the globe and is now considered a prime springboard for wine exporters that are looking to do business in the wider Asia-Pacific region. Taiwan’s population is growing and Taiwanese are taking advantage of their increasing purchasing power, resulting in a rapidly-maturing market that has developed a sophisticated taste for wine, whiskey and other imported alcohol products. With a strong preference for red wines and alcoholic beverages with potent flavors, Taiwanese consumers have grown accustomed to evaluating wines based on price, presentation and quality; for producers, this means that it is very important to take the time to effectively develop product marketing and distribution strategies specific to the Taiwanese market.

QUICK FACTS

▪ Looking ahead to 2017, wine consumption in Taiwan is projected to grow by 25.7%. i

▪ This growth will be driven by an increasing number of imported wines and a growing wine-drinking culture.

▪ As the habit of drinking wine developed in Taiwan, consumers began seeking out wines of higher quality and are now willing to pay more for wine that they deem to be a fair value for the price.

INTRODUCTION

3THE TAIWANESE WINE MARKET

HOW TO PROTECT YOUR WINE & SPIRITS TRADEMARK IN TAIWAN

Intellectual Property Rights (IPR) infringement is one of the most common concerns for foreign companies doing business in Asia. Ideally, with some advance preparation and a little luck, your company will not have to deal with this problem; however if an infringement of your trademark does occur, the negative impact on your business could be significant. In Taiwan’s brand-driven market, your trademark is the most important thing that differentiates your product from that of a competitor.

Taiwan has a comprehensive intellectual property framework - including a dedicated Intellectual Property Court – and, despite not being a member of many international conventions, it does try to adhere to such conventions in practice.

Taiwan has bilateral, intellectual property-related agreements and memorandums of understanding with a number of countries including France, Italy, Spain, Switzerland, Liechtenstein, Austria, the Netherlands, Germany, the Czech Republic, the United Kingdom, the United States, Australia, Chile, Costa Rica, El Salvador, Guatemala, Nicaragua, Paraguay, the Philippines, Japan, and China.

4THE TAIWANESE WINE MARKET

WHAT IS A TRADEMARK?

A trademark typically protects brand names and logos that are used on individual goods and/or associated with particular services. Generally, a trademark encompasses a word, phrase, symbol, design, or a combination of these elements that is used by a company to sell products or services. The purpose of a trademark is to clearly distinguish one product from another.

DO TRADEMARKS, COPYRIGHTS, AND PATENTS PROTECT THE SAME THINGS?

No. Trademarks, copyrights, and patents all protect different types of intellectual property.

As mentioned in the previous paragraph, trademarks protect brand names and logos used for goods and services. A copyright protects an original artistic or literary creation. Patents protect unique inventions.

IS IT MANDATORY TO REGISTER A TRADEMARK IN TAIWAN?

No, it is not mandatory to register a trademark in Taiwan, but it is advisable to do so in order to better protect your market share by preventing people from counterfeiting your product or trying to confuse customers with similar branding or packaging.

As the owner of a registered trademark, you will have legal recourse if a problem arises and will be able to request that Taiwan’s Customs Agency prevent the importation or exportation of goods that infringe on your registered trademark. Therefore, if you are planning to do business in Taiwan over the long term, it is essential that you register your trademark at the very beginning of your activities. Remember to also secure other rights and properties including domain names, company names, patents and copyrights.

It is always a good idea to consult a law firm familiar with intellectual property law to help you identify the elements of your intellectual property that should be protected. These professionals can also guide you through the registration process. Once you have decided to apply to register a trademark in Taiwan, you will need to download the appropriate form from the Intellectual Property Office website of Taiwan’s Ministry of Economic Affairs. All of the applications and documents must be filed and submitted in Taiwan, using traditional Chinese language characters. Foreign applicants therefore need to provide an accurate Chinese translation of all their documentation.

If you would rather use an unregistered trademark, it’s suggested that you search the Intellectual Property Office database (or ask your attorney to conduct a search) for similar trademarks, to prevent you from inadvertently infringing on any existing registered trademarks.

5THE TAIWANESE WINE MARKET

TAXES ON ALCOHOL AND CUSTOM DUTIES

Before 2002, a monopoly on the sale of tobacco and alcohol in Taiwan had been in place for more than 50 years. During this period, customs duties, business taxes and commodity taxes were suspended. Since Taiwan joined the World Trade Organization, tobacco and alcohol taxes were introduced to replace the monopoly tax system. Taxes on imported alcoholic beverages are relatively high in Taiwan.

IMPORT PROCEDURES

In Taiwan, importers of any alcoholic beverages need to have a permit issued by The Taïwan Tobacco and Liquor Corporation (TTL) in order to operate.

When a shipment of foreign alcohol products arrives at one of the several ports in Taiwan (Port of Taichung, Port of Taipei, Port of Kaohsiung, or Port of Keelung), all of the contents are subject to pre-import inspection and possible analysis.

THE IMPORTER MUST PROVIDE THE FOLLOWING:

Application form for the inspection of imported alcohol

A photocopy of the Customs import declaration

Declaration form for the basic information about the imported alcohol

A certificate of origin

Any other documents required for the inspection

Paper copies of the specimen label page, or illustration

The importer needs to fill out the Customs Declaration Import Form online or in person and deliver the form to the Taipei Customs Office (TOCO) within 15 days of the cargo arriving in a Taiwanese port.

6THE TAIWANESE WINE MARKET

The Global Wine Meetings event, taking place April 19-20 2016 in Taipei, Taiwan, is designed to meet the needs of wine exporters who would like to export their products to Taiwan and elsewhere in the Asia-Pacific region.

The VIP Global Wine Meetings event is reserved exclusively for industry professionals. More than 500 buyers from local companies and more than 60 VIP buyers will be participating in this exciting event.

JOIN US IN TAIWAN AND BENEFIT FROM:

Direct access to major buyers from across Asia, all of whom are leaders in their respective markets;

Scheduled one-on-one meetings between wine producers and VIP buyers;

Strong visibility in the local market, thanks to local visitors to the event;

Fully-equipped booths for participants;

Tasting area where producers’ wine and spirits are the main attractions;

The opportunity to follow up in person with sales prospects;

Online marketing tools and support available before, during and after the event.

Global Wine Meetings is the result of a collaboration between Global Wine & Spirits (GWS) (www.globalwinespirits.com), the premier online network for wine professionals, and Break Events (www.break-events.com), whose teams boast more than 20 years’ experience in organizing wine and spirits events, including 8 years of experience in Asian markets.

www.globalwinemeetings.com | info@globalwinemeetings.com

Interested in exporting to Taiwan? Take part in Global Wine Meetings

7THE TAIWANESE WINE MARKET

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INDEX

i http://www.vinexpohongkong.com/wp-content/uploads/sites/2/2015/08/IWSR-Taiwan.pdfhttp://www.tipo.gov.tw/http://www.china-iprhelpdesk.eu/sites/china-hd/files/public/Taiwan_s1.pdf