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FAQ-OEM (Original Equipment Manufacturer)

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  • Last updated:2021-08-13
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Q: What are the types of OEM?

A: For products with no concern of danger, local manufacturers are welcomed to establish production factory in the Center or supply the raw materials. In addition to two self-operated production lines for bakery and gardening, the Center also has production lines of processing operation for paper bags, wires, gold papers, electronics, and packaging of toys. We welcome reputable manufacturers to establish processing operation. Please contact the Business Section in the Center at (02)22616776 or 22616474.

Q: What are the limitations on types of OEM?

A: Products that may affect the security of the Center, management and order of the factory, or influence inmates’ mental and physical health will not be accepted.

Q: What is the limitation for the business scale of the OEM manufacturers?

A: There is no limitation for the business scale of the manufacturers. However, since the manufacturers should sign the OEM contract with the Center, the consistent supply for raw material in both time and quantity should be taken into consideration. For example, if the contract includes 10 workers, the manufacturer should pay the basic salary approved by the Center at NTD $100 x 10 people = NTD $1,000 for each work day. Under the condition of regular material supply, the compensation shall be paid by items completed to offset the basic salary. If the manufacturer suspends the production due to its own factors, the manufacturer shall still pay the basic salary.

 Q: What is the limitation on work hours for OEM manufacturers?

A: Work hours: Approximately 6 hours a day from Monday through Friday except national holidays. If the Center needs to suspend the production due to special circumstances, the manufacturers will be notified in advance, and the hours of suspension will be excluded for salary calculation. Special circumstances refer to outdoor activities, correctional activities, health education, and other natural disasters such as typhoons and earthquakes, for which the authorities have announced the suspension of work and school.

 Q: What is the limitation for the ways the manufacturers pay salaries?

A: The manufacturers shall pay salaries by work completed based on the pay rate table for manufacture processing. The closing day is within the last ten days of every month. The manufacturers shall pay the salaries in full by the fifth of the following month. No delay is allowed. If payment delays occur, the manufacturers shall pay interests on the delayed payment. If the period of the delay exceeds 20 days, the Center has the right to proceed with the liquidation of the equipment, products, and materials for compensation. The security deposit will be confiscated to cover insufficient funds.

Q: What is the limitation on product delivery?

A: The finished products will be delivered to the manufacturers at the Center. The manufacturers are responsible for shipping back the products. If there are defective products, and the fault is found to be the Center’s responsibility, the Center will be responsible for the repair at no cost. However, if the defective products are attributed to erroneous technical instruction or sample production from the manufacturers, the manufacturers should bear the repair costs. 

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