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Chapter 1 General Principles
Article 1
These Regulations are prescribed pursuant to the provisions of Paragraph 3, Article 23 of the Act for
the Establishment and Administration of Technology Industrial Parks (hereinafter referred to as “this
Act”).
Article 2
Business entities that have bonded commodities imported to and exported from the Technology
Industrial Parks (hereinafter referred to as “the Parks”) shall apply to Customs for supervision and
control as well as implement the bonded commodity ledgers management as approved by Customs;
relevant matters regarding business management of bonded commodities shall be conducted in
accordance with these Regulations.
The business entities that implement the ledgers management as prescribed in the foregoing
paragraph shall apply to Customs for manufacturing non-bonded goods; when those bonded goods
are imported to, and exported from, the Parks or other manufacturers who are not supervised and
controlled by Customs, they shall follow relevant regulations as business entities whose goods are
imported to, and exported, from duty-levying areas.
These Regulations are not applicable to business entities which have no bonded goods imported to,
or exported from, the Parks.
Chapter 2 Management of Bonded Commodities
Article 3
The bonded commodities under these Regulations refer to the following commodities:
1.Machinery, equipment, raw materials, fuel, materials, semi-finished products, and samples for
own use, experimental animals and plants, as well as goods for trade, warehousing and
transshipment, imported from abroad with exemption from import duties, commodity tax and
business tax pursuant to Article 21 of this Act.
2.Commodities sold by manufacturers located in duty-levying areas, and for which offsetting,
refund, reduction of, or exemption from, import duties, commodity tax or business tax has to be
made pursuant to Article 25 of this Act; however, this does not apply to commodities applicable to a
zero business tax rate.
3.Duty-free commodities deemed as importations or exportations imported from bonded factories,
bonded warehouses, free trade zones, science parks, agricultural biotechnology parks, the Parks
(including those from the same Park) or other bonded areas.
4.Goods imported from mainland China in special cases.
5.Processed semi-finished or finished products listed in the preceding four subparagraphs.
Article 4
Business entities shall appoint at least two bonded business personnel with high school (vocational
school) diploma or higher or equivalent education level, and the completion certificate of bonded
business personnel training held by private organizations examined and approved by the
Administration, Branches, or Customs to undertake the bonded business, and report the appointed
staff to Customs for approval; the Administration or Branches shall be informed by carbon copy.
The aforesaid bonded business personnel shall undertake the following activities:
1.Self-check of outgoing and incoming bonded commodities.
2.Compilation, verification, preparation, delivery, registration, management, filing, and safekeeping
of various ledgers, reports, and documents.
3.Other tasks as required by Customs according to business demand.
A trading business in the Parks may entrust specific personnel appointed by the bonded warehouse
to conduct various businesses listed in the 2nd paragraph instead of following the provisions
prescribed in 1st paragraph, if all the imported and exported goods are stored in a bonded warehouse
inside the Parks.
Customs, the Administration, or Branches may send personnel to perform random inspection or
re-examination of the bonded business described in 2nd paragraph at any time; those who are found
to fail to record data or conduct business based on facts, if any, shall be handled according to the
regulations stipulated in Article 33 of this Act or the Customs Anti-smuggling Act.
Article 5
Business entities may import bonded commodities only after they complete the company
registration or commerce registration, and obtain a customs control code from Customs.
Before completing the company registration or commerce registration, business entities may import
relevant machinery, equipment or raw materials for own use with the investment approval
documents issued by the Administration as well as a temporary customs control code from Customs,
and pay the deposits for import duties to Customs prior to customs clearance; business entities may
request deposit refunds at Customs after completing the company registration or commerce
registration and obtaining control approval from Customs.
Article 6
Business entities may obtain the Customs approval and check outgoing and incoming commodities
by themselves when importing and exporting the following items:
1.Commodities imported from, or exported to, duty-levying areas, free trade ports, and other Parks,
science parks, agricultural biotechnology parks, bonded factories, bonded warehouses, or other
bonded areas.
2.Commodities that are allowed for customs clearance at the place of import or export.
3.Commodities of small value or small quantity imported from, and exported to, foreign countries.
4.Commodities imported from, and exported to, foreign countries by business entities that meet
specific requirements.
5.Other commodities approved by Customs.
The specific requirements stated in the preceding 4th subparagraph will be announced after the
Administration consults with Customs.
Article 7
When business entities export goods from the Parks (or the factories) according to the provisions in
the previous article, the bonded business personnel, who gained approval from Customs after the
business entities reported the personnel to Customs, shall fill out the release order of the Parks for
the commodities out of the Parks (factories) pursuant to the regulations. The goods can be released
after self-check and inspection, and then the release order should be safeguarded by the bonded
business personnel in case Customs or the Administration may perform inspections when necessary.
The aforesaid release order shall be stamped by Customs first and then issued in numbered sequence.
The stamping is exempted by Customs if the order is allowed to be printed out via computer or
processed via electronic media; the use of serial number shall be reported to Customs, and the
receipt for the company may be filed in the form of electronic media for future reference.
Except for those that must be reported to Customs in advance for documents review or inspection,
the commodities listed in the 1st paragraph, if required to have an application filled in for
declaration, shall be entered in account books after being checked by the bonded business personnel
themselves with transaction evidence, packing lists, and other relevant documents, and be reported
on monthly basis.
For cases reported on a monthly basis, the incoming and outgoing date of last shipment shall be
regarded as the export or import date, and the application shall be filled in by the 15th day of the
following month in order to apply for clearance at Customs.
Where the release order is processed via electronic media referred to in Paragraph 2, it is necessary
to record the signature and date and retain the revision history.
Article 8
Business entities shall produce a bill of materials used per unit of various products (hereinafter
referred to as the bill of materials) in duplicate, and send it to Customs for reference within a month
after applying to Customs for taking over and inventorying, or after manufacturing new products,
and before the products are sent out of the Parks; Customs may perform an inspection and request a
manufacturing process statement and relevant documents if necessary. If the products are shipped
out of the Parks before the bill of materials is sent to Customs, the products will not be deleted from
the ledgers. However, if the commodities are samples, or if, for any special reason, business
entities have reported to Customs for reference with relevant certificates before export, and then
sent the required documents to Customs for reference within a month from the day after the export,
then the products will not be subject to this restriction.
After receiving the bill of materials, Customs shall return one copy to the business entities as the
proof for writing off in the tax account, and retain the other copy.
If there is any change in the original bill of materials, business entities shall produce a new bill in
which the reference or approval number of the original document is listed after the alteration, and
send the new bill to Customs for reference. The time limit for delivering the new bill is the same
as the stipulation in the 1st paragraph.
If the raw materials used by business entities have similar nature and functions and thus can be used
interchangeably, the business entities shall clearly indicate the materials in the bill of materials and
submit the bill to Customs for reference; combined clearance will then be allowed at the end of the
fiscal year.
When business entities write off bonded raw materials for their products, the materials shall be
deleted from the ledgers according to the quantity listed in the bill of materials that has been
submitted for reference or has been approved. Any leftover bits and pieces and waste materials
generated during the production process, if no attrition rate is listed in the material consumption of
the bill of materials or if no approval has been gained, may be verified and written off in the
bonding raw material accounts after being destroyed under joint supervision of the Administration
or Branches, Customs and taxing authorities.
The bill of materials is valid for three years, starting from the date when Customs gives its approval;
business entities shall send a new bill to Customs for reference prior to the expiration of the valid
period.
The bill of materials may be produced and filed in the form of electronic media, as approved by
Customs.
Chapter 3 Management of Bonded Accounts
Article 9
Business entities shall prepare ledgers for raw materials, materials (fuel), finished products,
machinery and equipment for own use, and goods in transit, and present the ledgers to Customs for
stamping. After stamping, business entities shall record the incoming and outgoing quantities of
products, warehouse inventory, status of machinery and equipment for own use, and other
conditions in details according to the regulations prescribed by Customs, in order to provide the
records for inspection by Customs, the Administration or Branches at any time.
Business entities that computerize the aforesaid ledgers shall input the relevant incoming and
outgoing data into the computer for filing according to the specific time limit, and print out
substitute monthly reports for the ledgers by the 20th day of the following month for reference.
The substitute reports for ledgers, as mentioned above, may be produced via electronic media after
Customs gives its approval, and shall be sent to Customs for reference within the time limit
prescribed above.
The non-bonded raw materials imported by business entities, if they can be mutually replaced with
other bonded raw materials, shall also be entered in the original ledgers for management, and shall
be listed separately in the annual balance sheet to be combined for computation purposes.
Article 10
Business entities’ bonded commodities moving into and out of the factory (warehouses) shall be
entered in the accounts within three days. However, bonded commodities imported from foreign
countries may be entered in the accounts within seven days after customs clearance.
Article 11
Business entities’ ledgers for bonded commodities and reports shall be compiled according to the
format prescribed by Customs, unless business entities acquire approval in advance from Customs.
Business entities shall preserve the ledgers and reports for 5 years after annual inventory taking;
related certificates shall be preserved for 3 years.
After the end of inventory taking, business entities may apply for approval from Customs to
preserve the aforesaid ledgers, reports, and relevant certificates in microfilms, tapes, floppy disks,
CDs, or other electronic media in sequence for the prescribed period; the originals may be destroyed.
However, if photocopies of the certificates and relevant documents are required when Customs is
conducting legal investigations, business entities shall be responsible for providing the required
documents.
Customs, the Administration, or Branches may send personnel to consult other ledgers, reports and
certificates with official documents due to supervisory or auditing demands in addition to the
bonded ledgers and reports, and business entities must not turn down the request.
Article 12
Business entities’ bonded commodities shall be stored in order at fixed warehouses or locations;
business entities shall assign numbers to the bonded commodities and prepare cards, in order to
continually record the quantities of storage, withdrawal, and inventory, in case of inspections which
may take place any time. If Customs allows the data to be computerized rather than to be recorded
in the record cards, business entities shall continually input the incoming and outgoing data of
bonded commodities into the computer for filing.
Business entities are in charge of guarding the aforesaid warehouses and locations where the bonded
commodities are stored. If any bonded commodities are released without permission, the
provisions in Article 36 of this Statute would apply.
When a business entity’ bonded commodities need to be temporarily stored in duty-levying areas
due to any special reason, the business entity shall explain why, where and how long the
commodities will be temporarily stored, as well as submit a floor plan where the commodities will
be temporarily stored and a copy of the building use permit; in the case of rental, the business entity
shall also submit a building lease, and then apply to the Administration or Branches for approval.
Also, the business entity has to provide a certain amount of guarantees to Customs according to the
related regulations of the Customs Act. Any import and export activities concerning the bonded
commodities shall be recorded in record cards for reference, and the bonded commodities shall be
retrieved within one year.
When the bonded goods of a business entity are temporarily stored in other business entities, the
business entity shall explain why, where and how long the commodities will be stored, as well as
submit relevant certificates and documents to the Administration or Branches to apply for approval.
The Administration or Branches will send a carbon copy of its approval to Customs, but the
business entity is not required to provide a certain amount of guarantees to Customs.
Business entities shall report to Customs when suspending their operation for 10 successive days or
more.
Article 13
After the approval given by Customs and prior to the implementation of ledgers management,
business entities shall set a date for inventory taking, and contact Customs for joint inventory taking.
However, the joint inventory taking with Customs may be exempted after verification by Customs
when the inventory is taken by a commissioned certified accountant with his or her signature as the
certification.
The raw materials, work in process, semi-finished products, finished products, goods in transit, and
machinery and equipment for own use that require inventory taking according to the provision in the
previous paragraph shall be categorized as bonded commodities for control and management.
Nevertheless, business entities may apply for changing the category of the above items to
non-bonded commodities at Customs with relevant documents or certificates.
Business entities shall take inventory annually, and compile inventory lists for bonded raw materials,
work in process, semi-finished products, finished products, goods in transit, and machinery and
equipment for own use prior to the annual inventory taking, as a reference for inspection. Customs,
the Administration, or Branches may take inventory at any time, as they deem necessary.
The aforesaid inventory shall be taken jointly with the personnel dispatched by Customs, unless
business entities have applied in advance for approval from Customs to commission a certified
account to take inventory and sign his or her name for certification.
When the bonded goods are approved to be temporarily stored in duty-levying areas, or cannot be
retrieved on the inventory date due to contracted processing, the business entities shall fill in an
application form, stating the address where the goods are temporarily stored, or the name of the
processor and the place where processing is done, and submit a list of commodities to apply to
Customs for the out-of-Park (factory) inventory at least 14 days prior to the inventory date.
The date of annual inventory taking shall not be less than 10 months at minimum, and no more than
14 months at maximum from the previous annual inventory taking, except when business entities
have obtained approval from Customs to advance or postpone the date of inventory taking for
specific reasons.
If any mistake is found after the inventory taking, business entities shall apply for reexamination at
Customs within 14 days following the day of inventory taking, and before the commodities are used;
no application will be accepted past the time limit.
In the event that the imported bonded commodities which are cleared through Customs prior to the
date of inventory taking cannot be transported into factories for inventory taking for some reason,
business entities shall, within 7 days following the day of withdrawal, present the original import
declaration form and a supplementary inventory list to Customs to apply for supplementary
inventory. Such commodities shall be included in the inventory list for the current year through
application after supplementary inventory.
Article 14
Business entities with a complete management system by computerizing control and management of
bonded commodities and production of ledgers and reports and capable of getting inventory lists
ready prior to the date of inventory taking, may apply for taking inventory without shutdown or
holiday inventory taking, at Customs a month before the inventory taking date, if the production line
cannot be interrupted due to the demand for production capacity.
Business entities that have gained approval from Customs for stock taking without shutdown may
be exempted from creating inventory cards for the bonded commodities on the production line, but
they shall provide relevant reports about the bonded commodities on the production line for
Customs inspectors to check promptly.
When the personnel sent by Customs cannot perform an inspection without shutdown or discover
major abuses, the personnel may order the enterprises to shut down for stock taking or set another
date to shut down the factories for inventory taking.
Article 15
Business entities shall submit the inventory statistical reports and balance statements of bonded raw
materials, machinery, equipment, and goods in transit, as well as analysis lists of inventory of
materials converted from work in process, semi-finished products, and finished products and of
materials converted from finished products exported and for domestic sales to Customs for review
according to the inventory, within three months after the stock taking.
The review from Customs may be exempted if the above reports and lists are approved by Customs
in advance, signed and certified by the certified accountant who took the inventory, and delivered to
Customs within three months following the inventory taking date.
For special reasons, the time limit for delivery of the documents for review or to Customs, as
stipulated in the preceding two paragraphs, may be prolonged by one month if Customs has given
its approval in advance; the time limit can only be prolonged once.
If there is no inventory surplus or loss on machinery, business entities may not be required to
compile machinery inventory statistical reports and balance statements.
The inventory lists signed and certified by the certified accountant commissioned to take inventory
stated in the 1st and 2nd paragraphs, analysis lists of inventory of materials converted from work in
process, semi-finished products, and finished products, as well as the analysis lists of materials
converted from finished goods exported and for domestic sales, may be saved in the form of
electronic media, as approved by Customs, and then sent to Customs for review.
Article 16
When the inventory of bonded commodities taken pursuant to the provisions of the previous article
does not correspond to the quantities in the book balance, business entities shall follow the
following regulations:
1.When the actual inventory counts are less than the quantities in the book balance, repayment of
duties and taxes can be exempted if the difference does not exceed the inventory allowance rate; if
the difference exceeds the inventory allowance rate, business entities shall amend the declaration
forms and repay overdue import duties, commodity tax, and business tax within 10 days from the
day following the reception of overdue tax bill issued by Customs.
2.When the actual inventory counts are more than the quantities in the book balance, business
entities shall incorporate the difference into the book balance. If the difference exceeds the
inventory allowance rate, business entities shall explain the reasons to Customs. If the quantity of
product materials listed in the bill of materials is higher, business entities shall amend the bill of
materials for the use of annual account settlement the following year.
Raw materials in the same category or which can be mutually replaced and used alternately by
business entities, if some are bonded while others are non-bonded, shall be included all together for
annual inventory taking; accounts of bonded and non-bonded raw materials shall be written off
based on the quantities of actual use. If the quantities of actual use can not be ascertained, the
amount of bonded raw materials shall be written off as priority; repayment of duties and taxes can
be exempted for inventory loss in non-bonded materials.
The allowance rate of raw material inventory difference for business entities is based on the
allowance rate table of inventory difference of raw materials classified by industry and category in
bonded factories under Customs management.
Article 17
The duty-free machinery and equipment imported for own use may be deleted from the ledgers by
business entities and are not subject to ledger management after being imported for more than five
years; business entities may present the release order of outgoing commodities of the Parks without
customs declaration when releasing commodities.
Article 18
Business entities which have abolished or withdrawn investment shall follow the following
regulations and apply to Customs for closing inventory before the companies are dissolved or move
out of the Parks:
1.Business entities shall contact Customs to schedule inventory taking, or Customs shall set the
inventory-taking date, in order to take inventory.
2.Depending on actual situations, Customs shall seal and store the bonded commodities inside the
business entities or at the location designated by the Administration or Branches.
3.If repayment of duties and taxes is required for bonded commodities in the inventory, business
entities shall fill in the declaration form; regulations prescribed in the 1st Subparagraph, Paragraph 1
of Article 16 shall apply when the inventory counts are less than the quantities stated in the book
balance.
4.Bonded commodities in the inventory of business entities are prohibited from being transported to
duty-levying areas unless overdue duties and taxes have been paid. When business entities
announce bankruptcy, the inventory shall be handled in accordance with the Bankruptcy Act and the
relevant regulations. Before Customs issues tax bills, business entities may provide a certain
amount of deposits or guarantees to withdraw the bonded commodities for use due to production or
export demands, as approved by Customs, and they shall apply for case closure at Customs with
export documents, within a year from the day after the withdrawal. Those who fail to close the
case within the time limit are subject to the related regulations of the Customs Act.
If business entities which have abolished or withdrawn investment or terminated business fail to
take closing inventory mentioned in previous paragraphs, Customs may directly impose the duties
and taxes payable based on the book balance.
Chapter 4 Customs Clearance for Bonded Commodities
Article 19
Aside from customs clearance in the Parks, business entities may also choose to apply for customs
clearance for importations and exportations according to the regulations governing customs
clearance at Customs at the place of import or export.
Article 20
When applying for customs clearance in the Parks for commodities imported from foreign countries,
business entities shall declare the goods to Customs at the place of import upon the discharge of
cargos from ships or aircraft, and then transport the commodities to the Parks for customs clearance.
However, if the commodities are to be transported to the Parks adjacent to ports or airports without
passing through duty-levying areas, business entities do not need to escort the goods in
transportation or seal the goods before transportation.
Article 21
When applying for customs clearance in the Parks, in addition to following the provisions in the
preceding article, business entities shall store the commodities imported from abroad at the
registered and approved depots, container freight stations or the designated location in the Parks.
Business entities may apply for Customs’ approval to inspect the commodities mentioned in the
previous paragraph or to complete the formalities at their factory areas or other assigned locations,
and then release the commodities.
If the commodities mentioned in the previous two paragraphs are sporadic imports, with no more
than 10 pieces, gross weight not exceeding 20 kg per piece, and the value under the quota for
exemption from import permit as stipulated in the Management Regulations for Import of Goods,
business entities may attach the application for sealing and shipping the sporadic imports into the
Parks to apply for an additional seal at Customs at the place of import, and apply for customs
clearance at Customs when importing commodities into the Parks.
Article 22
When the commodities imported from abroad have been declared to Customs at the place of import
and conform to the special conditions prescribed in Paragraph 2, Article 6 in addition to being
processed according to the provisions in the preceding article, business entities may check the
commodities by themselves and send the commodities into the Parks with documents issued by
Customs after customs clearance.
Business entities shall apply for customs clearance before checking the commodities themselves and
sending the commodities into the Parks if the commodities are of small amount or small quantity, as
stipulated in the 3rd paragraph in the preceding article.
Article 23
Business entities shall apply for customs clearance in accordance with the regulations governing
import of general commodities when applying for exporting importations due to return, exchange,
or other reasons.
Article 24
To export commodities to foreign countries and undertake customs clearance in the Parks, business
entities shall store the commodities at the registered and approved export depots or other designated
locations, and enclose the packing list, shipping order and other relevant documents to apply for
customs clearance. However, the commodities may be stored at the places of business entities
when the commodities are to be shipped and exported in full container load.
After customs clearance, Customs officers will escort the commodities mentioned in the preceding
paragraph, or to monitor the commodities to be loaded into bonded trucks, packing boxes, or
containers which will be sealed and transported out of the Parks, and sign and issue export manifests,
container notes, or container lists which will be enclosed with the sealed commodities to be sent to
Customs located at the place of export. After Customs at the place of export verifies the
documents, the second attached copy of export manifests or container lists will be sent back to
Customs, in order to close the case. However, commodities are exempted from additional seal or
escort when the commodities are exported from ports or airports adjacent to the Parks.
The commodities stated in the preceding two paragraphs, if in a quantity of no more than 10, and
with gross weight not exceeding 20 kg per piece, as well as with value under the quota for
exemption from export permit as stipulated in the Management Regulations for Export of Goods
(hereinafter referred to as export permit exemption quota), may be exported directly by registered
parcel post after inspected by Customs at offices or the designated location; or, buyers or sellers
may assign personnel to transport the commodities out of the Parks after the commodities were
sealed, and deliver the commodities to Customs at the place of export, for the commodities to be
signed for and exported. In case of commodity loss incurred during the delivery, the relevant
regulations of the Customs Act shall apply.
Article 25
To apply for customs clearance at the place of export for commodities exported to foreign countries;
business entities may issue a release order and self-check the commodities before sending the
commodities outside of the Parks (factories).
Business entities may fill in the application for exporting commodities, self-check the commodities,
and send the commodities out of the Parks (factories) if the commodities are of small amount or
small quantity in accordance with the regulations prescribed in Paragraph 3 of the previous article.
Nevertheless, business entities shall attach export documents issued by Customs at the place of
export and apply to Customs for case closure within one month after the export. If business
entities fail to close the case within the time limit, they shall fill in the declaration form and repay
the duties and taxes according to the cases of commodities released from the factory, within 10 days
from the day following the expiration of the time limit for case closure.
Article 26
Business entities shall indicate the number of the bill of materials reviewed by Customs in the
declaration form for commodities exported to foreign countries; if the bill of material has not been
reviewed by Customs and thus no approval number was given, business entities shall indicate the
application number.
If the commodities are exported by other manufacturers or traders, business entities shall indicate
that “this batch of commodities is supplied by so-and-so company in the Technology Industrial
Parks; only this company may apply for deletion from the ledgers, and the export manufacturer is
not allowed to apply for tax refunds” in the declaration form, and then write off the commodities
from the ledgers after the export.
Business entities shall submit the details about the export declaration form mentioned in the
previous paragraph to the Administration or Branches for their reference by the 15th day of the
following month.
Article 27
When a business entity sells bonded commodities to another business entity in the same Park, both
the seller and buyer may proceed directly with the transaction without having to acquire permits and
file customs declaration; however, both parties shall jointly fill in and sign the transaction
application of business entities in the Park and file the application with Customs within 5 days after
the transaction; both parties may also jointly fill in and sign the declaration form and pay taxes to
Customs.
Delivery and reception of bonded commodities between business entities without transactions
involved shall follow the regulations in the preceding paragraph.
For the activities stated in the previous two paragraphs, business entities shall file a monthly report
by the 15th day of the following month by the method stipulated in Article 7. For those who file
declaration by paying taxes, they should follow the regulations regarding importing commodities for
domestic sales in Article 29.
Business entities shall report the transaction amounts stated in the 1st paragraph to the
Administration or Branches prior to the deadline prescribed in the previous paragraph.
Article 28
When manufacturers located at duty-levying areas sell commodities to business entities, and the
commodities must be applied for offset, refund, reduction of, or exemption from, import duties,
commodity tax, or business tax, the seller and buyer shall jointly fill in and sign a declaration form
and then file the declaration with Customs. Customs will issue the export certificate equivalent
within 10 days from the day following customs clearance.
When the commodities mentioned in the previous paragraph are eligible for a zero business tax rate,
business entities shall apply for customs clearance at Customs and acquire the export certificate
equivalent; alternatively, business entities shall sign and certify that they are the buyers in the
deduction receipt of the uniform invoice.
The commodities stated in the 1st paragraph, if required to have a declaration form filled in, shall be
entered in account books after a self-check, and be reported on a monthly basis.
When the commodities noted in the 1st paragraph are returned, the seller and buyer shall jointly fill
in and sign the declaration form and enclose photocopies of the original entry documents of
commodities into the Parks, to apply for the approval of exit of the commodities from Customs
within 3 months after the commodities entered the factory; the originally issued export certificate
equivalent shall be handed back for nullification. Those who have applied for offset, refund,
reduction of, or exemption from, duties and taxes shall return the offset or refunded duties and taxes
and notify the competent taxing authority before transporting the commodities outside the Parks.
If the returned commodities entered the factory more than 3 months prior, business entities shall
apply for customs clearance pursuant to the relevant regulations of general imported commodities,
and pay the import duties, commodity tax, and business tax according to law.
Article 29
Business entities shall follow the following regulations to submit monthly reports for the bonded
commodities imported to duty-levying areas for domestic sales:
1.Provide collateral of equivalent amount to Customs.
2.Create monthly registers of commodities for domestic sales, in which sale dates, product names,
specifications, quantity, prices, and estimated tax amounts shall be entered batch by batch before the
commodities are delivered out of the factory, and deliver the commodities within the collateral
amount in advance. However, those who have approval to adopt computer accounting, and have
the monthly report number confirmed by the seller in advance and registered in the ledgers and
related transaction documents, do not need to create monthly registers of commodities for domestic
sales.
3.Business entities shall fill in the declaration for the collection of commodities sold domestically in
the previous month and make up tax payment by the 15th day of the following month.
If the business entities mentioned in the previous paragraph are specialized trading industry, and the
bonded commodities imported to duty-levying areas were not manufactured in the Parks, the
business entities shall follow the Regulations Governing the Certification and Management of the
Authorized Economic Operators, and apply to Customs for becoming a General Authorized
Economic Operator.
If commodities with tax repayment made, as described in the 1st paragraph, have to be compensated
or exchanged due to damage or the specifications and quality in non-conformity with those stated in
the original contract, business entities shall fill in a declaration form with relevant certificates
attached to apply to Customs for a duty-free exit from the Parks within 3 months from the date
following the exit of commodities.
In the event that the bonded commodities imported to duty-levying areas for domestic sales, as
specified in the 1st Paragraph, are processed and exported, taxes may be refunded pursuant to the
Regulations Governing the Offsetting or Refund of Duties and Taxes on Raw Materials for Export
Products and other applicable regulations. However, taxes shall not be refunded for the
commodities for which tax refunds have been cancelled.
Article 30
In the case that business entities purchase bonded commodities from or sell bonded commodities to,
business entities in other Parks, park enterprises in science parks, park enterprises in agricultural
biotechnology parks, bonded factories, bonded warehouses, or other bonded areas, the buyer and
seller shall jointly fill in and sign a declaration and file the declaration with Customs, with duties
and taxes paid.
When the commodities mentioned in the preceding paragraph are returned, the buyer and seller shall
jointly fill out a declaration and follow the procedures for transporting the returned commodities
outside the Parks.
The commodities stated in the preceding two paragraphs shall be handled in the way prescribed in
Article 7, and business entities shall make the monthly report by the 15th day of the following
month; those who declare by paying duties and taxes shall follow the regulations regarding
importing commodities for domestic sales stated in the previous article.
In the case where business entities purchase bonded commodities from or sell bonded commodities
to port enterprises in free trade ports, the provisions of the Regulations Governing Customs
Clearance for Goods in Free Trade Ports shall be followed.
Article 31
In the case that business entities sell commodities to export-processing factories of tax credit for
export after processing, the buyer and seller shall jointly fill in and sign a declaration and file the
declaration with Customs.
The tax credit of export processing factories mentioned in the previous paragraph shall be handled
in accordance with the Regulations Governing the Offsetting or Refund of Duties and Taxes on the
Raw Materials of Export Products, and the date when Customs signed the declaration shall be
regarded as the import or export date.
The following regulations shall be complied with in returning the commodities specified in the 1st
paragraph:
1.Buyer and seller shall jointly fill in and sign a declaration in which the number of the original
declaration shall be indicated, and enclose the packing list and photocopies of the original
declaration, to apply for approval from Customs to undertake the return procedures and enter the
returned commodities in the accounts within one year after the commodities were transported
outside the Parks. Customs shall notify the taxing authority if the business entities have acquired
the export certificate equivalent.
2.Customs shall issue duplicates of the declaration for tax refunds after the procedures stated in the
preceding subparagraph are completed, for manufacturers that purchased the commodities, to apply
for offsetting or refund of duties and taxes.
Article 32
When business entities borrow, lend, or return bonded raw materials, semi-finished products, or
finished products, they shall submit the application jointly signed by both parties for business
entities borrowing or lending raw materials, semi-finished products, and finished products to
Customs within five days after the aforesaid items entered or exited the Parks (factories).
The commodities specified in the previous paragraph must be returned within three months
following the lending date. If the commodities haven’t been returned past the due date, or if
business entities fail to apply for closing the case at Customs, the regulations stipulated in Article 27
and 30 shall apply.
With the approval of the Administration or Branches, business entities may lend the bonded
machinery or equipment to other business entities located in the same Park. Also, within five days
of lending (borrowing) the above machinery or equipment, the lender and the borrower shall jointly
fill in a Non-Trade Application of Business Entity, and then apply to Customs.
The machinery or equipment stated in the previous paragraph cannot be borrowed for more than one
year, and should be returned to the lender right at the expiration. However, in special circumstance,
business entities may explain the reason and apply to the Administration or Branches for an
extension prior to the expiration; such an extension should not exceed one year and can only be
applied for once. In case that the machinery or equipment is overdue, Article 27 and Article 30
shall be complied with.
Chapter 5 Commissioning and Being Commissioned to Process, Repair, Test, and Exhibit
Bonded Commodities
Article 33
When the specialized trading industry in the Parks commissions manufacturers located at
duty-levying areas to process bonded commodities pursuant to the regulations prescribed in Article
24 of this Act, the processing is limited to reassembly, simple processing and unsubstantial
transformation.
The trading industry noted in the previous paragraph shall fill in the record cards of commodities
commissioned for processing exiting and entering the factory with the stamping by Customs, and
then declare the commodities at Customs and pay taxes as a guarantee when transporting the
commodities outside the Parks. The trading industry shall also fill in the declaration and file the
declaration with Customs when the commodities are returned.
The regulations stipulated in Paragraph 3 of Article 35 shall apply to the time limit for transporting
the commodities stated in the preceding paragraph back to the Parks and relevant details; the
computerized record cards, as approved by Customs, are subject to the regulations prescribed in
Paragraph 2 of Article 35.
Article 34
For commissioning manufacturers located at duty-levying areas to process bonded commodities,
business entities shall fill in the application for commissioned processing, indicate the factory
registration number or uniform number of the commissioned manufacturers (the name, address and
ID number in the case of natural persons), and apply for the approval from the Administration or
Branches with the following documents:
1.Photocopies of commissioned processing contracts or orders, provided that other related
certificates may be in lieu thereof, in the case of commissioned processing contracts by the business
entities to their branches established at duty-levying areas.
2.A piece of sample or a copy of drawings of commodities before and after processing. Samples
and drawings are not required if business entities have gained the approval from the Administration
or Branches for previous cases and provided the approval document number.
Article 35
Business entities’ bonded commodities, commissioned to manufacturers located at duty-levying
areas for processing, may enter or exit the Parks by batch. When the commodities exit the Parks,
business entities shall fill in the entry and exit record cards for the commodities commissioned for
processing with the stamping by Customs, and conduct self-check before the commodities are
transported out of the Parks. When the processed commodities are shipped back to the Parks,
business entities shall directly write off the entry from the original entry and exit record cards.
If business entities have obtained approval from Customs to computerize the aforesaid record cards,
they shall input the relevant incoming and outgoing data into the computer for filing within the
specified period, as prescribed in Article 10, and print out substitute monthly reports for record
cards for future reference by the 20th day of the following month.
The commodities specified in the 1st paragraph shall be shipped back within six months after
exiting the Parks. If the commodities cannot be shipped back as scheduled, business entities shall
apply to the Administration or Branches for postponement and state the reasons prior to the expiry
of the time limit. The time limit can only be extended by six months. If the commodities cannot
be shipped back to the Parks by the expiration date, business entities shall fill in a declaration and
pay the overdue duties and taxes within ten days from the day following the expiration date.
Business entities that export or ship commodities from the processing manufacturers or branches
located at other duty-levying areas to other bonded areas in their own name, shall attach duplicate
copies of the declaration issued by Customs at the place of import or other documents to apply to
Customs for closing the case.
Article 36
Business entities shall comply with the regulations in the 1st paragraph to the 3rd paragraph of the
preceding article when commissioning bonded commodities to port enterprises in free trade ports,
business entities in the same or other Park(s), park enterprises in science parks, park enterprises in
agricultural biotechnology parks, or bonded factories.
Article 37
Business entities may apply for shipping the duty-free molds and dies imported from abroad to the
commissioned processing factories for use; the application method and duration shall be subject to
the provisions prescribed in the preceding three articles.
Article 38
If business entities may accept the commission for processing from manufacturers located at
duty-levying areas, provided that the manufacturers shall be limited to those who have completed
the company or business organization registration with the competent authority at the time of
contracting.
When the aforesaid commodities enter the Parks, business entities shall fill in the entry and exit
record cards for the commodities that undergo the commissioned processing and check the
commodities themselves before transporting the commodities into the Parks (factories). Business
entities shall directly write off the entries from the original record cards when the processed
commodities are shipped out of the Parks.
If any bonded raw material or material is added into the commodities commissioned for processing
by business entities, before transporting the commodities out of the Parks, business entities shall
produce the list of materials indicating the commissioned processing contract and submit the same
to the Customs for future reference, and shall fill in a declaration and apply for customs clearance at
Customs when the processed commodities exit the Parks. The Customs may request any
documentary evidence about the commissioned processing when reviewing and approving the
declaration.
Customs duties shall be imposed on the aforesaid commodities based on 70% of the difference
between the import and export prices of the processed commodities after 30% of the price
difference has been deducted as service and processing fees. If, under special circumstances,
business entities apply to the Administration or a branch for an ad hoc project by presenting the
documents of proof issued by a certified accountant and the Administration or branch forwards the
case to Customs, customs duties shall be imposed on the bonded raw materials and materials added
during processing as well as the semi-finished products. Moreover, a report may be submitted on a
monthly basis, and a certain amount of collateral shall be provided for Customs in advance
according to the regulations in Paragraph 1 of Article 29.
The record cards noted in the 2nd paragraph, if approved to be computerized by Customs, are
subject to the regulations in Paragraph 2 of Article 35.
Article 39
Business entities shall comply with the regulations in the 2nd paragraph and 5th paragraph of the
preceding article when accepting the commission for processing from port enterprises in free trade
ports, business entities in the same or other Park(s), park enterprises in science parks, park
enterprises in agricultural biotechnology parks, or bonded factories.
If any bonded raw material or material is added in the aforesaid commodities entrusted for
processing, business entities shall fill in a declaration and apply for customs clearance at Customs;
the added bonded raw materials or materials may be written off from the ledgers.
Article 40
Business entities shall obtain approval from the Administration or Branches before shipping bonded
commodities to duty-levying areas for repair, inspection or testing, and the bonded commodities
shall be shipped back within six months from the day after the commodities exit the Parks. If any
special situation occurs, business entities may apply for postponement before the expiry of the time
limit; the duration of the extended period must not exceed six months. If the commodities can not
be shipped back within the time limit, business entities shall fill in a declaration and pay the overdue
duties and taxes within ten days from the day following the expiration date.
When shipping the aforesaid commodities out of the Parks, business entities shall fill in the entry
and exit record cards for bonded commodities sent for repair, inspection, and testing, and check the
commodities by themselves before shipping. The commodities may be directly written off from
the original record card when being shipped back into the factory.
If the value of the commodities specified in the 1st paragraph exceeds the limited amount jointly
promulgated by the Administration and Customs, business entities shall apply for customs clearance
at Customs and provide tax deposits before shipping the commodities out of the Parks.
The record cards mentioned in the 2nd paragraph, if approved to be computerized by Customs, are
subject to the regulations in Paragraph 2 of Article 35.
The machinery and equipment shipped out of the Parks in accordance with the regulations in the 1st
paragraph are limited to the original ones or new parts, accessories, or attachments of the same
specification, as identified by Customs, when being shipped back to the Parks. However, for
replacement by new parts, accessories, or attachments, the original parts, accessories, or attachments
shall be shipped back to the Parks together. When necessary, Customs may investigate whether the
consignor or the consignee uses the machinery and equipment for production purposes, jointly with
the Administration or Branches.
Article 41
For shipping bonded commodities to duty-levying areas for exhibitions, business entities shall first
obtain approval from the Administration or Branches; business entities shall also fill out the
application for exhibitions outside the Parks in order to gain approval from Customs, and then
self-check the outward and inward commodities. When necessary, Customs may conduct an
investigation into the usage of the aforesaid commodities at the exhibitions jointly with the
Administration or Branches, to see whether the usage has been altered.
If the value of the aforesaid commodities exceeds the limited amount prescribed in the 3rd
paragraph of the preceding article, business entities shall apply for customs clearance at Customs
and provide tax deposits before shipping the commodities out of the Parks. When the commodities
are shipped back, business entities shall apply to Customs for case closure with the application for
transporting the exhibited commodities back to the factory.
The commodities sent out of the Parks pursuant to the regulations in the 1st paragraph shall be
shipped back within six months from the day after the exit. If any special situation occurs,
business entities may apply for postponement before the expiry of the time limit; the duration of the
extended period must not exceed six months. If the commodities can not be shipped back within
the time limit, business entities shall fill in a declaration and pay the overdue duties and taxes within
ten days from the day following the expiration date.
Article 42
Business entities shall follow the regulations prescribed in Paragraph 2 of Article 35 and Paragraph
2 of Article 40 when shipping bonded commodities to port enterprises in free trade ports, business
entities in the same or other Park(s), park enterprises in science parks, or park enterprises in
agricultural biotechnology parks for repair, inspection, testing, or exhibition, or when shipping such
commodities to bonded factories for repair, inspection, or testing.
Article 43
Business entities shall follow the regulations prescribed in Article 38 and 39 when accepting the
commissions for repair, inspection, testing, or exhibition.
Article 44
The regulations in Article 40 shall apply when business entities transport bonded commodities to
duty-levying areas due to the need of labor service.
Article 45
The regulations in Article 40 shall apply when business entities send samples and advertisement
products to duty-levying areas for display, exhibition or probation.
If the aforesaid commodities are sold or given to manufacturers located at duty-levying areas, and
the value of each shipment does not exceed the tax-exempt quota stipulated in the Regulations
Governing Customs Clearance for Imported Advertisement Products and Samples, business entities
shall fill out the Parks’ application for shipping business entities’ samples and advertisement
products exempted from being damaged or having been damaged to duty-levying areas, and send
the commodities out of the Parks according to the following regulations:
1.Commodities that haven’t been damaged or contaminated shall be examined and released after
Customs evaluates the commodity price. Nevertheless, the accumulative amount of outgoing
commodities must not exceed NT$36,000 each month, and business entities shall submit a
declaration attached with the second copy of the original application for shipping commodities out
of the Parks to Customs by the 15th day of the following month.
2.Commodities without commercial value due to damage or contamination may be exempted from
the clearance formalities, and business entities may directly apply for examination and release at
Customs. However, the applications are limited to twice per day, or the outgoing quantity of two
applications may be compiled as one application. The accumulative amount must not exceed
NT$100,000 each month, and the total amount with the previous amount must not exceed
NT$136,000.
The items, quantities, and standards for recognizing damage or contamination of the commodities
mentioned in the 2nd subparagraph of the previous paragraph will be jointly announced by the
Administration and Customs.
Article 46
When carrying samples and advertisement products with the value under the export permit
exemption quota to foreign countries, business entities shall fill in an application, acquire the permit
issued by the Administration or Branches, and apply for examination or additional seal at Customs
before the release; business entities shall apply to Customs for case closure with the export
documents from Customs at the place of export within a month. If business entities fail to close
the case within the time limit, they shall fill in a declaration and pay the overdue duties and taxes
according to the procedures for shipping commodities out of the factory within 10 days from the
day following the expiration date for case closure.
Chapter 6 Other Management
Article 47
In the case that business entities transport commodities to duty-levying areas for processing, the
wastes and leftover bits and pieces generated after the processing shall be shipped back along with
the last shipment of processed commodities, and handled in accordance with the Parks’ provisions
for handling wastes and scraps. However, the wastes and leftover bits and pieces with overdue
duties and taxes imposed or recognized by Customs as having no commercial value or applicable to
a zero tax rate, are not required to be shipped back.
Article 48
If business entities’ bonded commodities stored at warehouses or work in process are stolen and in
shortage, business entities shall report to the police and obtain the certificate, as well as report to
Customs; after Customs verifies that it is true, business entities shall repay the duties and taxes and
write off the stolen goods from the ledgers within three months from the day after the robbery. If
there is any special situation, and approval is obtained from Customs, business entities may apply to
provide cash deposits for the temporary exemption from tax repayment, which must not exceed six
months. If the stolen commodities are still not found after the expiry of the temporary period, the
cash deposits will be substituted for payable duties and taxes, and the case will be closed. Customs
shall return the cash deposits for the found commodities.
Article 49
The commodities imported from duty-levying areas to the Parks for business entities to use or for
export in accordance with the provisions prescribed in Article 25 of this Act, if there is no need to
apply for reduction of, or exemption from, duties and taxes, or tax refunds, are exempted from
clearance formalities and ledger management when being shipped in and out of the Parks.
Article 50
If the outgoing parcels sent by the post offices in the Parks are bonded commodities, the formalities
for exporting or shipping the commodities out of the Parks shall be subject to the relevant
regulations prescribed by the Parks.
Customs may inspect or examine the aforesaid parcels sent out of the Parks.
Chapter 7 Supplementary Provisions
Article 51
These Regulations have been in effect since January 26, 2007.
Amendments to these Regulations shall be in force from the date of its promulgation.
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