| Chapter (1) General Provisions |
|---|
| Article 1 | To enhance the competence of national defense technology, establish a self-reliant defense industry, expand national defense and military and civilian dual use technology, the National Chung Shan Institute of Science and Technology (hereinafter referred to as the “NCSIST”) is hereby established and this Act is hereby adopted. |
| Article 2 | NCSIST is an administrative corporation; the Ministry of National Defense (hereinafter referred to as the “MND”) is the competent supervisory authority of NCSIST. |
| Article 3 | Paragraph (1)
NCSIST is in charge of the following affairs:
Subparagraph (1)
Researching and developing, manufacturing, and selling defense technology and major weapon equipment.
Subparagraph (2)
Researching and developing, manufacturing, and selling military and civilian dual use technology.
Subparagraph (3)
Engaging in domestic and international technology cooperation, information exchange and promotion.
Subparagraph (4)
Engaging in domestic and international technology transfer, technical services, and industrial services.
Subparagraph (5)
Nurturing talents in defense technology.
Subparagraph (6)
Carrying out important national defense military facilities engineering.
Subparagraph (7)
Cooperating with the MND in major demonstration and urgent operational readiness.
Subparagraph (8)
Other matters relating to the objectives of establishing NCSIST.
Paragraph (2)
The regulations concerning sales, technological cooperation, technology transfer, and technical services specified in Paragraph 1 to 4 of the preceding paragraph shall be established by the MND.
Paragraph (3)
All the matters specified in Paragraph 1 involving state secrets, military secrets, or defense secrets shall be executed under the level of classification approved by the Ministry of National Defense in accordance with the relevant regulations of the Armaments Bureau and its affiliated units. NCSIST is liable for supervising and keeping confidential information security. |
| Article 4 | NCSIST is regarded as a government institution while conducting the procurement under Subparagraph 3 of Paragraph 1 in Article 105 of the Government Procurement Act, hereby the MND is its administrative authority. |
| Article 5 | Paragraph (1)
NCSIST is funded by:
Subparagraph (1)
Budgets approved and allocated by the government and donations (subsidies) from the government.
Subparagraph (2)
Donations from domestic and foreign, public and private institutions and groups and individuals.
Subparagraph (3)
Income from the research entrusted to NCSIST and the services provided by NCSIST.
Subparagraph (4)
Income from operations and research accomplishments.
Subparagraph (5)
Other income.
Paragraph (2)
The donations (subsidies) specified in Subparagraph 1 of the preceding Paragraph based on 3 percent of the national defense annual budget from MND are adjusted subject to the advanced research topics of national defense technology or the approval of production capability maintenance program proposed by NCSIST.
Paragraph (3)
The donations specified in Subparagraph 2 of Paragraph 1 are regarded as the donations to the government.
Paragraph (4)
The donations (subsidies) specified in Subparagraph 1 of Paragraph 1 that the entrusted manufacturing fee paid by MND is excluded. |
| Article 6 | Paragraph (1)
NCSIST shall adopt its articles of incorporation and the rules and regulations governing the management of personnel, accounting system, internal control, auditing and others, and shall submit them to the board of directors for approval and therefore submit them to MND for reference. The NCSIST rules and regulations relating to Paragraph 2 of Article 3 shall be approved by MND.
Paragraph (2)
NCSIST may adopt the rules and regulations governing the public functions it performs within the scope of relevant laws or legal orders, and shall submit them to the board of directors for approval and thereafter submit them to MND for reference. |
| Chapter (2) Organization |
|---|
| Article 7 | Paragraph (1)
There is a board of directors in NCSIST, with eleven to fifteen directors selected among the following people by MND and appointed by the Premier of the Executive Yuan. The same shall apply to the discharge of the directors:
Subparagraph (1)
Representatives of relevant governmental agencies, the minister of MND, the deputy minister of Ministry of Economic Affairs, and the deputy minister of National Science Council of the Executive Yuan are certainly definite directors.
Subparagraph (2)
Scholars and experts in the field of research of national defense technology.
Subparagraph (3)
Entrepreneurs, management experts, or the persons who make great contributions to NCSIST.
Paragraph (2)
The number of the directors specified in Subparagraph 3 of the preceding Paragraph may not exceed one-third of the total number of directors.
Paragraph (3)
The number of the full-term directors may not exceed one-third of the total number of directors.
Paragraph (4)
The gender ratio of the directors specified in Paragraph 1 may not be limited by the preceding paragraph of Paragraph 5 in Article 5 of the administrative corporation law. |
| Article 8 | Paragraph (1)
There are three to five supervisors in the institute, selected among the following people by the MND and appointed by the Premier of the Executive Yuan. The same shall apply to the discharge of the supervisors:
Subparagraph (1)
Representatives of relevant governmental agencies.
Subparagraph (2)
Scholars and experts in the field of research, and experts in the national defense technology.
Subparagraph (3)
Scholars and experts in the field of law, accounting or finance.
Paragraph (2)
A managing supervisor shall be elected among supervisors.
Paragraph (3)
The gender ratio of the directors specified in Paragraph 1 may not be limited by the front section of paragraph 5 in article 5 of the rule of administrative corporation. |
| Article 9 | Paragraph (1)
The term of office of each director or supervisor is three years. The director or supervisor may be reappointed once upon the expiration of his or her original term of office. The number of members being reappointed may not exceed two-third of the total number of directors and may not be less than one-third of the total number of directors.
Paragraph (2)
The directors and supervisors acting on behalf of government agencies shall be replaced if their positions are changed, and may not be bound by the restriction on the times of reappointment as specified in the preceding Paragraph. If there is a vacancy existing in the directors and supervisors appointed according to Paragraph 1 of Article 7 and the preceding Article before the expiration of their terms of office, the vacancy shall be filled through the election by the MND and the appointment by the Premier of the Executive Yuan, and the term of office of the new director or supervisor shall continue until the expiration of the term of office of the original director or supervisor.
Paragraph (3)
The regulations relating to the appointment, discharge, and replacement of the directors and supervisors of NCSIST will be adopted by the MND. |
| Article 10 | Paragraph (1)
There is one chairman of the board of directors, and the minister of MND serves concurrently of this position.
Paragraph (2)
The chairman shall manage and oversee all affairs of NCSIST, while acting as the representative of the NCSIST to the public. If the chairman of the board of directors is unable to perform his or her duties, a director designated by the chairperson shall act in his or her place. If no such director can be designated, the directors shall select one among themselves to serve as the acting chairman. |
| Article 11 | Paragraph (1)
The authority of the board of directors is as follows:
Subparagraph (1)
Reviewing and discussing ten-year national defense science and technology development concept and five-year national defense science and technology research, application and production plan.
Subparagraph (2)
Reviewing and discussing annual operating (business) objectives and operational plans.
Subparagraph (3)
Reviewing and discussing the annual budget and the final accounts of the review.
Subparagraph (4)
Reviewing and discussing the rules and regulations.
Subparagraph (5)
Reviewing and discussing the disposition of or the creation of an encumbrance over private real estates.
Subparagraph (6)
Appointing and discharging the president.
Subparagraph (7)
Raising funds.
Subparagraph (8)
Reviewing and discussing the matters required by the Act to be resolved by the board of directors.
Subparagraph (9)
Reviewing and discussing other significant matters. |
| Article 12 | Paragraph (1)
The meetings of the board of directors shall be held once three months. An extraordinary meeting may be held if necessary.
Paragraph (2)
The chairman of the board of directors shall convene the meetings and act as the chairperson. A resolution of a meeting of the board of directors shall be made upon the approval of more than half of the directors present at the meeting representing more than half of all directors, provided that each of the resolutions specified in Subparagraphs 1 to 7 of the preceding Article shall be made upon the approval of more than half of all directors. |
| Article 13 | Paragraph (1)
The authority of the supervisors is as follows:
Subparagraph (1)
Supervising business and financial statuses.
Subparagraph (2)
Auditing financial accounting books, documents and information of assets.
Subparagraph (3)
Verifying financial statement reports.
Subparagraph (4)
Verifying or auditing other major matters.
Paragraph (2)
Each supervisor exercises his authority independently. The managing supervisor shall attend the meetings of the board of directors on behalf of all supervisors. |
| Article 14 | Paragraph (1)
There is one president in NCSIST, nominated by the chairman and appointed by the board of directors. The same shall apply to the discharge of the president. The president should have experiences of national defense science and technology or business management. The term of office of president is three years. The president may be reappointed once upon the expiration of his original term of office.
Paragraph (2)
The president shall not exceed the age of sixty-five at his first term of office. If the president reaches the age of seventy before the expiration of his term of office, he shall be replaced immediately, provided that special exemptions may be made upon the approval of the Executive Yuan.
Paragraph (3)
The president is responsible for operations and management in accordance with the rules and regulations of NCSIST, resolutions of the board of directors and the authorization of the chairman of the board of directors. The president shall attend the meetings listed in the second Paragraph of Article 20 in this Act. |
| Article 15 | Paragraph (1)
Directors, supervisors, and the president shall comply with the principle of avoiding conflict of interest, and may not exploit powers, opportunities or means connected with their duties to contrive to gain benefit for themselves or related persons. The scope of conflict of interests to be avoided and how to deal with it when a violation occurs shall be decided by the MND.
Paragraph (2)
There shall not be any spousal relationship or any relationship of blood or marriage within the third degree between a director, a supervisor, and the president.
Paragraph (3)
The spouse, blood relatives within third degree, and relatives by marriage of directors, supervisors, and the president shall not hold positions of accounting, general affairs, or human resources with the NCSIST.
Paragraph (4)
The chairman and the president shall not employ his/her spouse, blood relatives within third degree, or relatives by marriage.
Paragraph (5)
For the purposes of this Ordinance, a related person means a spouse or a relative within the second degree. |
| Article 16 | Paragraph (1)
Directors, supervisors, and the president or their related persons may not engage in any trading, leasing, work contracting or other such transaction with the NCSIST. But this restriction shall not apply if there is a proper reason and if the board of directors has passed a special resolution approving it.
Paragraph (2)
If the NCSIST incurs loss or damage resulting from a violation of the provisions of the preceding paragraph, the person or persons who committed the violation shall be liable to compensate for the loss or damage.
Paragraph (3)
In the situation referred to in the proviso to Paragraph 1, the NCSIST shall proactively make public the content of the special resolution passed by the board of directors, within twenty days after the meeting, and shall report the same to the Ministry of National Defense for reference filing. |
| Article 17 | The directors and managing supervisors shall attend or guest on board meetings in person, and shall not appoint proxies to attend. |
| Article 18 | Paragraph (1)
A person to whom any of the circumstances listed below pertains may not be appointed as a director or supervisor:
Subparagraph (1)
Persons who are subject to the commencement of guardianship or assistantship and have not yet revoked those orders.
Subparagraph (2)
Persons who have been sentenced to imprisonment for a definite period or a more severe punishment, and have not been ordered a suspension of a punishment.
Subparagraph (3)
Persons who declare bankrupt and have not yet resume their rights.
Subparagraph (4)
Persons who have been deprived of civil rights and have not yet resume their rights.
Subparagraph (5)
Persons being diagnosed by a public hospital to be mentally or physically impaired to the extent that he/she is not capable of performing his duties.
Paragraph (2)
A director or supervisor to whom any of the circumstances listed in the preceding paragraph pertains, or who without valid reason fails to attend three successively meetings of the board of directors or board of supervisors, shall be dismissed.
Paragraph (3)
A director or supervisor to whom one of the circumstances listed below pertains may be dismissed:
Subparagraph (1)
There is substantial evidence of his/her having behaved in a disorderly manner or committed misconduct, such as to affect the image of NCSIST.
Subparagraph (2)
Having performed work perfunctorily or neglected duties, where there are specific facts.
Subparagraph (3)
Having committed serious breach of contract.
Subparagraph (4)
For two years repeatedly, the NCSIST’s annual performance review on the person has not met the standards set by the Ministry of National Defense.
Subparagraph (5)
There is substantial evidence of his/her having violated the Civil Service Administrative Neutrality Act.
Subparagraph (6)
There is substantial evidence of his/her having accepted illegal lobbying or requests for favor for matters under his/her charge, or having used his/her position to accept hospitality or gifts, such as to harm public interests or the interests of the NCSIST.
Subparagraph (7)
There is substantial evidence of his/her having used NCSITS’s asset for purposes other than the needs of his/her duties.
Subparagraph (8)
There is substantial evidence of his/her having violated the principles of avoiding conflict of interest as stipulated in this self-government ordinance, or of his/her having violated the prohibition of transactions as specified in the forepart of Article 16 Paragraph 1.
Subparagraph (9)
Other conduct unbefitting of a director, supervisor or the president.
Paragraph (4)
Before dismissing someone pursuant to any subsection of the preceding paragraph, the Ministry of National Defense shall give the person appropriate opportunity to make a statement and to argue his/her case. |
| Article 19 | Adjunct directors or supervisors may not receive remuneration. |
| Chapter (3) Businesses and Supervision |
|---|
| Article 20 | Paragraph (1)
The supervisory authorities of the MND over NCSIST are as follows:
Subparagraph (1)
Approving the development plans of 10-year national defense technology, and the research, applications, and production plans of 5-year national defense technology.
Subparagraph (2)
Approving the rules and regulations, annual business plans and budgets, annual performance and financial statement reports, or receiving them as reference.
Subparagraph (3)
Inspecting the assets, financial and national secret protection status.
Subparagraph (4)
Evaluating business performance.
Subparagraph (5)
Selecting and giving suggestion to the directors and supervisors.
Subparagraph (6)
Imposing necessary penalties if the directors and supervisors violate laws and regulations during carrying out businesses.
Subparagraph (7)
Revoking, changing, terminating, demanding timely improvement, suspending operations or imposing other penalties if NCSIST violates the constitution or other laws and regulations.
Subparagraph (8)
Approving the disposition of or the creation of encumbrance over the private real estate.
Subparagraph (9)
Supervising other matters as prescribed by laws.
Paragraph (2)
The MND shall request NCSIST to participate in the conferences on national defense technology research and applications, and production relating to planning of military construction, and shall promulgate guidance on the development of national defense technology based on army establishing and military reconstructing conditions.
Paragraph (3)
NCSIST shall plan for 10-year development of national defense technology, 5-year research, applications, and production plans of national defense technology, and for annual business operations and budget allocations. |
| Article 21 | Paragraph (1)
The MND shall invite the representatives of relevant agencies, scholars, experts and impartial public figures to evaluate the performance of NCSIST.
Paragraph (2)
The methods, procedures and other relevant matters regarding the performance evaluation specified in the preceding Paragraph will be adopted by the MND.
Paragraph (3)
The contents of the performance evaluation are as follows:
Subparagraph (1)
Accessing the annual performance of NCSIST.
Subparagraph (2)
Measuring the operational performance and achievement rate toward the defined goals of NCSIST.
Subparagraph (3)
Making recommendations on the approval and allocation of funds of NCSIST.
Subparagraph (4)
Other relevant matters.
There shall be no less than 1/4 of any single sex in the board member structure.After the primary assessment in accordance with MND,the board members shall further evaluate the institute when on-site observation is required.
All the observed contents, reference, and results shall be fully documented in evaluation report. |
| Article 22 | Paragraph (1)
NCSIST shall make the guidance of 10-year national defense technology development and 5-year national defense technology research, applications, production plan under Paragraph 2 of Article 20, and submit to the MND for approval every four years.
Paragraph (2)
NCSIST shall make annual business plans and allocate its budgets, and submit to the board of directors for approval and report to the MND for reference filing. |
| Article 23 | Paragraph (1)
Within two months after the end of each fiscal year, NCSIST shall appoint certified public accountants for auditing and certificating the report of operations performance and the statement of receipt and expenditure, and submit to the board of directors for approval, and report to the MND for reference filing and to the audit department.
Paragraph (2)
The said financial statement shall be audited by the audit department, and the outcomes of which shall be submitted to MND or other relevant institutes for further processing. |
| Chapter (4) Personnel and The Incumbent Protection |
|---|
| Article 24 | Paragraph (1)
Being along with the transfer the Chung-Shan Institute of technology of Armaments Bureau of MND, the employment, military service, appreciation, reward, punishment, performance appraisal, training and education, salary, insurance, pension, welfare, veterans, out of military service and other matters of interest to all military personnel comply with the original laws, for some of which are not applicable shall be otherwise specified by the Executive Yuan.
Paragraph (2)
Retaining the original benefits of military personnel, the Ministry of Defense may amend the organization referring to the arrangement table of classes and posts.
Paragraph (3)
The military personnel meeting the 1st item should act for the demobilization, out of military service in accordance with NCSIST personnel management regulations, and without money on auxiliary benefits. |
| Article 25 | Paragraph (1)
The original civilian employees along with the transfer of the Yuan will retain the previous title till retirement. The related matters referring to service, punishment, performance, training and education, salary, insurance, security, association, raising contingent, pensions, benefits and others of interest are in accordance with the applicable laws of the government employee’s service, for some of which are not applicable shall be otherwise specified by the Executive and Examination Yuan.
Paragraph (2)
The employees mentioned above serve in NCSIST after retirement or dispatch shall be in accordance with the personnel management regulations, and without money on auxiliary benefits.
Paragraph (3)
The government employees after retirement serve in NCSIST, the suspension of concessions and pension matters should comply with the government employees compensation regulations. |
| Article 26 | Paragraph (1)
All kinds of the staff who transfer to NCSIST, their rights and interests including service years, wage, insurance, retirement, pensions, welfare and so on will follow original relevant labor laws and regulations or contracts.
Paragraph (2)
The employees as mentioned as previous paragraphs, the beginning of their seniority date should be based on the original employment date before reorganization, and also adopted by the same retirement pension conditions. The employees who are legally suitable for Labor Standards Law, their retirement pension and severance pay should accord with the article 17, article 55, and the second item of article 84 under the Labor Standards Law. In spite of the organization restructuring, the total number of pension cannot be allowed to exceed in the sum of 45 month salaries based on the multiplicand of 45-month-average salary before their retirement. |
| Article 27 | Paragraph (1)
Military officers who are not willing to transfer along with NCSIST should be arranged by MND. Those who can not be arranged can apply for retirement by following original relevant laws and given consolation money equal to 7 months salary.
Paragraph (2)
The military officers given consolation money should be major at least and should satisfy certain qualification which is service year should be more than twenty years and reaching the maximum age of active duty or more than seven months before maximum year.
Paragraph (3)
Those military officers, who arrange by MND to other MND departments, retire from service or then stay in NCSIST, will not receive compensation money.
Paragraph (4)
The military officers who receive the differential compensation payment when they choose to retire and leave, within seven months of the above effective date, if they apply new jobs from governmental offices or corporate administration with paid positions, should submit extra compensation payment which is calculated beyond the period of the two jobs.
Paragraph (5)
The total amount of payments mentioned as paragraphs one and four in the article, are referred to basic pay, professional specialty pay, and supervisory pay which the military officers receive these payments happened at the month of retirement. |
| Article 28 | Paragraph (1)
The government employee who are not willing to transfer along with NCSIST can apply for retirement or be dismissed from restructuring by following original relevant laws and to be given consolation money equal to 7 months salary. But those who are reaching the age of retirement are not included.
Paragraph (2)
The public servants who receive the differential compensation payment when they choose to retire or lay off, within seven months of the above effective date, if they apply new jobs from governmental offices or corporate administration with paid positions, should submit extra compensation payment which is calculated beyond the period of the two jobs.
Paragraph (3)
The total amount of payments mentioned as former paragraph in the article, are referred to basic pay, professional specialty pay, and supervisory pay which the public servants receive these payments happened at the month of retirement or lay off. |
| Article 29 | Paragraph (1)
All kinds of staff who are not willing to transfer along with NCSIST, should be arranged by MND from restructuring. Those cannot be arranged can apply for retirement or be dismissed by following original relevant laws, regulations or contracts and to be given consolation money equal to 7 months salary. But those who are reaching the age of retirement are not included.
Paragraph (2)
The employees who receive the differential compensation payment when they choose to retire or lay off, within seven months of the above effective date, if they apply new jobs from governmental offices or corporate administration with paid positions, should submit extra compensation payment which is calculated beyond the period of the two jobs.
Paragraph (3)
The total amount of payments mentioned as former paragraph in the article, are referred to basic pay and professional specialty pay which the employees receive these payments happened at the month of retirement or lay off. |
| Article 30 | The regular contract workers of original organization can transfer to NCSIST and continue to work until expiry based on the contract and NCSIST should pay retirement pension to their personal account. Those who are not willing to transfer to CSIST should be given severance pay without consolation money based on relevant regulations and then terminate the contract. |
| Article 31 | Paragraph (1)
The labor pension account, contributed under the Labor Standard Act and the Labor Pension Statute, shall transfer to the NCSIST from the original agency on the date of establishment.
Paragraph (2)
For the severance and consolation paid by the original agency, MND may allocate budget by making adjustments within the original scope of the budget without being limited by Articles 62 and 63 of the Budget Act. |
| Article 32 | The original agency shall make a list of the employees who are on resentment, suspension (including dismiss not confirmed) and leave without pay to the NCSIST. After condition relief, those employees may choice to continue work for the NCSIST or may make decision to retire or severance with consolation added according to the Article 27 to Article 29 of this Act and with the assistance of MND. |
| Article 33 | All the rights and obligations may be applied mutatis mutandis to above military members and are independent in article 20,paragraph 1,of Non-Departmental Public Bodies Act Art.;Their severance and retirement payment shall be in accordance with Labor Pension Act.
Paragraph (2)
The employees hired by the NCSIST after the date of establishment will bear no government office statue and the Labor Standard Act shall govern. The retirement pension and severance will be in accordance with the Labor Pension Stature.
Paragraph (3)
The right and obligation for the personnel in the previous paragraph will be governed by the labor contract and work regulation. |
| Article 33-1 | NSSICT workers are not allowed to conduct international travel without authority’s permission.
International travel related affairs such as applications, conditions, procedures, execution and abolishemnt, and annexings are regulationed by MND. |
| Chapter (5) Accounting, Finance, Property and Tax exemption, Information Disclosure |
|---|
| Article 34 | The fiscal year adopted by the NCSIST shall be the same as that of the government. |
| Article 35 | Paragraph (1)
The NCSIST shall mandate a certified public accounting firm to audit and verify all its financial statements.
Paragraph (2)
10% of the NCSIST annual profit, which is after tax and reimbursement of previous year loss, shall distribute to the government. |
| Article 36 | Paragraph (1)
The asset and debts of the original agency which belong to the Armed Production and Service Operation Fund, Shall transfer to the NCSIST on the date of establishment.
Paragraph (2)
The competent supervisory authority may approve and allocate budget by making adjustments within the original scope of the budget in the year of the establishment of the NCSIST without being limited by Articles 62 and 63 of the Budget Act. |
| Article 37 | Paragraph (1)
At the establishment, If the NCSIST is in business needs to use the public property, it may be donated, leased or provided for use free of charge to the NCSIST. In the case of donation, Articles 25 and 26 of the Budget Act and Articles 28 and 60 of the National Property Act shall not apply.
Paragraph (2)
The NCSIST may procure public real estates after its establishment. The price for land shall be based on the announced current land value. The price for constructional improvement shall be based on its current value as assessed by the tax authority. Where the tax authority has not assessed the current value, the value shall be based on an assessment made by the public property management authority.
Paragraph (3)
Where a governmental agency approves and allocates budget to the NCSIST to purchase properties for a designated purpose, the properties shall be deemed public properties.
Paragraph (4)
Except for the public properties leased or provided for use free of charge as set forth in Paragraph 1 and the public properties prescribed in the preceding paragraph, all of the properties acquired by the NCSIST shall be deemed private properties.
Paragraph (5)
The NCSIST shall act as the manager of the public properties which are provided for use free of charge in Paragraph 1 and the public properties prescribed in Paragraph 3, and all profits arising from the properties shall be deemed income of the NCSIST without being subject to the restrictions specified in Paragraph 1 of Article 7 of the National Property Act.
Paragraph (6)
The public properties transfer in the paragraph 1, and the public properties which are provided for use free of charge in Paragraph 1 and the public properties prescribed in Paragraph 3, the regulations governing matters relating to management, use and profits will be prescribed by the MND.
Paragraph (7)
Upon the abandonment of use of public properties, the properties shall be handed over to the public property management authorities
Paragraph (8)
Where the Center no longer needs to use the donated public properties, it shall return the properties to the donating authority and may not dispose. |
| Article 38 | Paragraph (1)
The approval and allocation of budget by a governmental agency for the NCSIST shall be governed by legal budgetary procedures and supervised by the audit authority.
Paragraph (2)
If the budget in the paragraph 1 exceeds fifty percent of the annual budgetary income of the then current year, the competent supervisory authority shall submit the annual budgetary statement of the NCSIST to the Legislative Yuan for review. |
| Article 39 | The debts raised by the NCSIST shall be limited to self-liquidating loans, which shall be submitted to the competent supervisory authority for approval in advance. If it is likely that debts cannot be repaid by self-liquidation according to the outcome of budget implementation, the NCSIST shall promptly review and propose improvement measures to the competent supervisory authority for approval. |
| Article 40 | Paragraph (1)
The NCSIST’s procurement procedure shall be based on the principles of openness and fairness and in accordance with the treaties or agreements which are concluded by the Republic of China.
Paragraph (2)
The Government Procurement Act shall not apply to the procurement procedure in paragraph 1, except for the circumstances set forth in Article 4 of Government Procurement Act.
Paragraph (3)
Where a law other than the Government Procurement Act is applicable to the procurement subject to Article 4 of the Government Procurement Act as prescribed in the preceding Paragraph, the law shall prevail. |
| Article 41 | Paragraph (1)
The weapon, naval vessel, aircraft, armed combat vehicle, reconnaissance and communication equipment related to warfare, which sold or used by the NCSIST shall be free from the business tax.
Paragraph (2)
The research and development (manufacturing) project contract awarded by MND and its subordinate to the NCSIST shall be free from the business tax.
Paragraph (3)
The goods procured by the NCSIST and approved by MND for the military use, shall be free from commodity tax according to the Regulation for Exemption of commodity Tax on goods for Military Use.
Paragraph (4)
The weapon, equipment, vehicle, naval vessel, aircraft, and its accessory, and other material, which imported by the NCSIST for the military use shall be free from import duty according to the Regulation Governing Duty Exemption on goods for military use. |
| Article 42 | Paragraph (1)
The relevant information of the NCSIST with the exception under the National Security Protection act, shall be made available to the public pursuant to the Freedom of Government Information Act. The NCSIST shall take initiative in making its annual financial statements, annual business information and annual performance evaluation reports available to the public.
Paragraph (2)
The competent supervisory authority shall submit the performance evaluation reports prescribed in the preceding Paragraph to the Legislative Yuan for reference. The Legislative Yuan may, as it deems necessary, summon the head of the competent supervisory authority together with the chairman of the board of directors, the Director or related officers of the NCSIST to report the operation status and answer questions at the Legislative Yuan. |
| Chapter (6) Supplementary Provision |
|---|
| Article 43 | Any personnel who has objection against the administrative disposition given by the NCSIST may file an administrative appeal to the competent supervisory authority in accordance with the Administrative Appeal Act. |
| Article 44 | Paragraph (1)
If the NCSIST cannot achieve the objectives of its establishment due to change of circumstances or poor performance, the competent supervisory authority shall apply to the Executive Yuan for the dissolution of the NCSIST, which shall be enforced upon the approval of the Executive Yuan.
Paragraph (2)
If the NCSIST is dissolved, the government officer will be arranged by the MND or in accordance with related regulations to retire or severance. All other employment contracts with the employees of the NCSIST shall be terminated, and the remaining assets shall be turned over to the treasury with all debts assumed by the competent supervisory authority. |
| Article 45 | The enforcement date of this Act shall be determined by the Executive Yuan. |