WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIOG/VAL/N/1/TPKM/1
1 July 2002
(02-3290)
Committee on Customs Valuation Original:  English/
anglais/
inglés
NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL
AGREEMENT ON TARIFFS AND TRADE 1994
SEPARATE CUSTOMS TERRITORY OF TAIWAN,
PENGHU, KINMEN AND MATSU
The following notification1, dated 24 May 2002, has been received from the Permanent
Mission of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
Comité de l'évaluation en douane
NOTIFICATION AU TITRE DE L'ARTICLE 22 DE L'ACCORD SUR LA
MISE EN ŒUVRE DE L'ARTICLE VII DE L'ACCORD GÉNÉRAL
SUR LES TARIFS DOUANIERS ET LE COMMERCE DE 1994
TERRITOIRE DOUANIER DISTINCT DE TAIWAN,
PENGHU, KINMEN ET MATSU
La Mission permanente du Territoire douanier distinct de Taiwan, Penghu, Kinmen et Matsu
a fait parvenir au Secrétariat la communication1 ci-après, datée du 24 mai 2002.
Comité de Valoración en Aduana
NOTIFICACIÓN DE CONFORMIDAD CON EL ARTÍCULO 22 DEL
ACUERDO RELATIVO A LA APLICACIÓN DEL ARTÍCULO VII
DEL ACUERDO GENERAL SOBRE ARANCELES ADUANEROS
Y COMERCIO DE 1994
TERRITORIO ADUANERO DISTINTO DE TAIWÁN,
PENGHU, KINMEN Y MATSU
Se ha recibido de la Misión Permanente del Territorio Aduanero distinto de Taiwán, Penghu,
Kinmen y Matsu la siguiente comunicación1, de fecha 24 de mayo de 2002.
                                                     
1 In English only./ En anglais seulement./ En inglés solamente.G/VAL/N/1/TPKM/1
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CUSTOMS LAW2
Promulgated on August 8, 1967. As Amended on July 17, 1968, August 24, 1971, July 27,
1974, July 16, 1976, December 8, 1978, July 18, 1979, February 6, 1980, August 30, 1980,
May 6, 1983, January 4, 1985, January 30, 1986, June 29, 1986, July 22, 1991, May 7, 1997and October 31, 2001.
N. B. In case of any discrepancy between this English translation and the Chinese
text, the Chinese text shall prevail.
CHAPTER I GENERAL PROVISIONS
Article 1
The collection of customs duty and the clearance of goods shall be governed by this Law.
Article 2
"Customs duty" is defined as the import duty leviable on goods imported from abroad.
Article 3
Customs duty shall be collected by Customs either on an ad valorem basis or on a specific basis
in accordance with the Customs Import Tariff under which different duty rates are classified into two
columns, to goods imported from countries or areas having reciprocal treatment with the Republic of
China and those having no such treatment. Countries and areas subject to each duty rate shall be listed
by the Ministry of Finance, after consulting with  the other government agencies concerned and being
reported to the Executive Yuan for approval. The Executive Yuan shall then notify the Legislative
Yuan of its approval for information. The Customs Import Tariff shall be separately promulgated after
enactment through the legislative process.
The Ministry of Finance may establish a Customs Tariff Commission to study and review
matters relating to the amendment of the Customs Import Tariff and the levy of special customs duty.
The Commission’s organization and nomination of its members shall be drawn up by the Ministry of
Finance and reported to the Executive Yuan for approval. Staff members for the Commission shall be
selected from employees within the stat utory quota of the Ministry of Finance.
Article 4
The Customs Import Tariff may, with respect to specified imported goods, stipulate separate
tariff rates for different quantities of such goods in order to implement tariff quotas.
Rules governing the methods of allocation, eligibility of application for allocation, collection of
premiums, performance bonds, fees and charges and management for the tariff quotas referred to in
                                                     
2 In English only.G/VAL/N/1/TPKM/1
Page 3
the preceding paragraph shall be prescribed by the Ministry of Finance, together with the authorities
concerned, and shall be submitted to the Executive Yuan for approval.
Article 5
The duty-payer of the customs duty shall be the consignee of the imported goods, or the bearer
of the bill of lading, or the holder of the imported goods, as the case may be.
Article 6
When a duty-payer, who is a legal person, a partnership or a non-legal body, is to be dissolved
or liquidated, the liquidator shall, prior to the allocation of the remaining assets, pay customs duty,
delinquent fees and fines sequentially according to law.
Any liquidator who violates the provisions of the preceding paragraph shall be liable to
payment of the outstanding amount.
Article 7
The customs duty, delinquent fee or fine, levied in accordance with the provisions of this Law,
but not collected within five years of the date on which such collection was finally determined, shall
no longer be collected. However, this stipulation shall not apply to a case which has been referred to
the court for enforced payment prior to the expiration of the five-year period and whose proceedings
have not yet been concluded.
Where installment or deferred payments are approved after the collection has been finally
determined, the aforesaid five-year period shall commence on the day following the  expiration of the
installment or deferred payments period.
The provisions of the preceding two paragraphs shall apply mutatis mutandis to all charges
leviable under this Law.
Article 8
Required customs formalities, as well as import declarations, invoices and other relevant
documents submitted by way of on-line transmission to customs computers, or via electronic data
transmission, which are recorded on customs computer files, shall be deemed to have completed the
formalities required in accordance with this Law.
Customs may, in considering the situation of the implementation of cargo clearance automation,
request firms that conduct declaration, transportation, storage, container yard and other business
regarding clearance to conduct business by on-line transmission or electronic data transmission.
Regulations governing registration, application procedure, management and any other required
matters regarding on-line or transmission referred to in the preceding two paragraphs shall be
prescribed by the Ministry of Finance.G/VAL/N/1/TPKM/1
Page 4
Enterprises conducting business in transmitting cargo clearance information to Customs by way
of on-line transmission or electronic data transmission of computers shall be subject to approval by
the Ministry of Finance. Rules governing approval qualifications, capital requirements, business
items, criteria for charges, examination of business hours and other required matters shall be
prescribed by the Ministry of Finance.
Article 9
Except for disclosures to personnel or authorities set forth below, customs personnel shall keep
confidential all customs declaration information pr ovided to Customs by duty-payers or exporters of
goods. Those in violation of this provision shall be subject to disciplinary action. Those accused of
violation of the criminal law shall be handed over to the relevant authorities for investigation:
(1) The duty-payer or the importer of the goods himself/herself or his/her successors;
(2) The agent or attorney of the duty-payer or the importer of the goods;
(3) Customs or tax collection authorities;
(4) Control authorities;
(5) Authorities which process appeals and/or litigation regarding customs matters;
(6) Authorities which conduct investigations of cases involving customs matters as prescribed
by law;
(7) Other authorities or personnel which may request that Customs provide customs declaration
information as prescribed by law; and
(8) Authorities or personnel which have been approved by the Ministry of Finance.
The provisions of the preceding paragraph shall not apply where Customs supplies information
to government authorities for statistical purposes th at does not disclose the name of the duty-payer or
importer of goods.
The provisions regarding disclosures by customs personnel in paragraph one shall apply mutatis
mutandis in the event of a disclosure of information specified in paragraph one by authorities and
personnel specified in items (3) to (8) of the same paragraph.
Article 10
Customs can proceed with post-clearance audit of the duty-payer, exporters, and related persons
within two years from the date following the releas e of the imports and/or exports. According to the
post-clearance audit result, any duty which is refundable or receivable shall be paid within three years
from the date following the release date.G/VAL/N/1/TPKM/1
Page 5
When Customs proceeds with the post-clearance audit referred to in the preceding paragraph,
Customs may request the duty-payer, exporters or related persons to provide records, documents,
accounting books and/or relevant files or data bases regarding the imports or exports, or notify such
relevant persons to go to the office of Customs for inquiry, or designate officers to proceed with an
investigation at the premises of such a person. The investigated person shall not evade, interrupt orrefuse such an investigation.
The related person referred to in paragraph one means the enterprise operating the business of
customs brokerage, transportation, storage, express delivery and any other business, groups or
persons.
Upon proceeding with the post-clearance audit, Cu stoms may request the relevant authorities
and/or organizations to provide related information or other documents regarding the imports and
exports.
Regulations governing the scope, procedure, required documents and other required matters
regarding the post-clearance audit shall be prescribed by the Ministry of Finance.
Article 11
The regulations regarding clearance and management of importation and exportation under this
Law shall apply mutatis mutandis to those of transshipment and transited goods.
CHAPTER II PROCEDURES GOVERNING CUSTOMS CLEARANCE
Section 1: Import Declaration and Examination
Article 12
Declaration of imported goods must be made to Customs by the duty-payer within fifteen days
following the arrival date of the transportation means on which the goods were carried.
Exporters shall declare exported goods to Customs within the prescribed period, before the
clearance or departure of the transportation means carrying such goods. Rules governing the
declaration, examination and release shall be prescribed by the Ministry of Finance.
Goods referred to in the preced ing two paragraphs may proceed with pre-entry declaration prior
to importation or exportation. Rules governing the pre-entry declaration of goods shall be prescribedby the Ministry of Finance.
Article 13
Upon import declaration, an import declaration form shall be filled out and submitted along
with a bill of lading, invoice, packing list and all other requisite import documents.G/VAL/N/1/TPKM/1
Page 6
Upon export declaration, an export declaration form shall be filled out and submitted along with
loading lists, booking notes, packing list, export permits and certificates of inspection required for
examination and all other related documents.
The packing list, import or export permits and certificates of inspection required for
examination and all other related documents referred to in the preceding two paragraphs may besubmitted prior to the release.
Article 14
For the purpose of expediting clearance of imported goods, Customs may release the goods
following examination and payment of duty, accordin g to required declaration matters, then carrying
out post-release scrutiny of those goods. Except for the duty-payer or related person who has been
notified that the imports will be subject to a post-clearance audit, in accordance with Article 10,
Customs shall notify the duty-payer of any refundable or recoverable duty found within six monthsfollowing the released date of the goods. The payment of duty originally made shall be considered
final after the expiry of this prescribed period.
For imported goods which are not examined and released with payment of duty under the
provisions of the preceding paragraph, and for which Customs is unable to determine immediately the
amount of duty payable, Customs may, at the request of the duty-payer, examine and release thegoods by allowing the duty-payer to submit documents required for scrutiny and pay an appropriate
deposit. Customs shall then conduct a post-release scrutiny in order to determine the amount of duty
payable within six months following the release date, failing which the customs value declared by the
duty-payer shall be accepted as the basis for determining the amount of customs duty payable.
Under any of the following circumstances, th e imported goods shall not be released with
payment of duty under the provisions of paragraph one. However, Customs may, at the request of the
duty-payer, examine and release the goods by allowing him/her to pay an appropriate deposit and
complete customs formalities within a prescribed  period. The deposit shall be confiscated if the duty-
payer fails to complete the formalities prior to expiry of the prescribed period:
(1) where the duty-payer fails to file relevant certificates for reduction or exemption of customs
duty in time but submission of them will follow;
(2) where the duty-payer fails to apply for the issu ance of an import permit in time but there is a
necessity for him/her to apply for clearance and prompt delivery of the imported goods.
However, this shall only apply to imported goods for which the importation is permitted;
(3) where Customs considers it necessary to examine and release the imported goods on
payment of a deposit.
Article 15
The responsible person of any transportation means for passengers or cargo , or the owner of the
transport, who is entrusted by such responsible person to carry passengers or cargo, shall report to
Customs upon the arrival of the transportation means or prior to its departure abroad.G/VAL/N/1/TPKM/1
Page 7
The term "responsible person" referred to in the preceding paragraph refers to the captain of a
vessel or an airplane, the master of a train, or the controller of any other transport means.
The owner of the transport conducting business referred to in paragraph one shall register with
Customs and pay a deposit. Rules governing customs clearance of transport and operation of
transportation for the responsible person and the ow ner of the transport who is entrusted by such
responsible person to transport, the qualifications, conditions, amount and type of deposit, application
procedure, registration and change of registration, certificate application and renewals and all other
required matters for the owner of transport shall be prescribed by the Ministry of Finance.
Article 16
The duty-payer may, with the approval of Custom s, provide an appropriate guarantee in lieu of
the customs duty and deposit payable under Article 14 of this Law. Implementation rules thereof shall
be prescribed by the Ministry of Finance.
Article 17
Prior to importation, the duty-payer or the duty-payer’s agent may apply to Customs for an
advance tariff classification ruling of the goods and Customs shall reply in writing.
Upon any changes to the tariff classification referred to in the preceding paragraph, Customs
shall state the reason to the duty-payer or the duty-payer’s agent in writing. If the duty-payer or theduty-payer’s agent can prove that a contract has been entered into, the transaction has been conducted
according to the contract and the ch ange in tariff classification will cause loss, the duty-payer or the
duty-payer’s agent may apply for an extension of the ruling’s validity, but such an extension shall not
exceed ninety days.  Provided that the tariff classification change involves import regulations, the
imported goods shall be subject to the import regulation in effect at the time of importation.
If the duty-payer or the duty-payer’s agent is dissatisfied with the advance tariff classification
ruling issued by Customs, he/she may apply to the Directorate General of Customs, Ministry of
Finance for a review prior to the importation of the goods. The Directorate General of Customs,
Ministry of Finance, shall then deal with the case in an appropriate manner, unless otherwise excepted
with a valid reason.
The implementation rules governing the application procedure for the advance ruling, time limit
for Customs’ reply and the review procedure of the Directorate General of Customs, Ministry of
Finance, shall be prescribed by the Ministry of Finance.
Article 18
Customs formalities, such as declaration and duty payment for goods, may be entrusted to a
customs broker. The respective broker shall assign certified employees to be responsible to examine
and endorse the customs declaration it submits to Customs on behalf of the duty-payer.
1. The customs broker under the preceding paragraph shall be approved by Customs before
conducting the company or business registration, and apply to Customs for the license of customs
broker along with the relevant documents after the completion of registration.G/VAL/N/1/TPKM/1
Page 8
The regulations governing capital requirements, qualifications and conditions of the responsible
person, the manager of the brokerage firm, and the employee responsible for the declaration,
application procedure for approval, registration and any registration changes, certificate application
and renewals, operation of customs declaration and any other required matters shall be prescribed by
the Ministry of Finance.
Article 19
With imported or exported goods, Customs may examine or exempt examination either by
authorization or by application. Customs may, if necessary, withdraw samples. The quantity of the
sample withdrawn shall be limited to  the quantity required for examination.
The method, time and location of the examination, the withdrawal of samples, and the scope of
exemption referred to in the preceding paragraph shall be prescribed by the Ministry of Finance.
When the goods are examined pursuant to paragraph one, it shall be the responsibility of the
duty-payer or the exporter to attend to the transportation, unpacking or the opening of the cases, as
well as the restoration of such packages to their original form or condition, with all expenses thus
incurred being borne by him.
Article 20
The time and place of loading and unloading of all imported and exported goods shall be
designated by Customs. In case the goods are of a perishable or dangerous nature, or for any special
reason approved by Customs, such loading and unloading will not be subject to time and place
limitations.
Article 21
When imported goods are not released by Customs, exported goods, examined and sealed by
Customs and/or supervised by Customs, which apply to be transported within the territory of the
Republic of China, may be approved by Customs to be transported via bonded transport.
The owner of the bonded transport referred to in the preceding paragraph shall register with
Customs and pay a deposit. Rules governing the qualifications, conditions, amount and type of
deposit, application procedure, registration and any registration changes, certificate application andrenewals, management and use of bonded transport and any other required matters shall be prescribed
by the Ministry of Finance.
Article 22
Imported or exported goods not released by Customs may be temporarily stored on warehouse
or container yard.
The firm operating the warehouse or container yard shall register with Customs and pay a
deposit. Rules governing qualifications, conditions, amount and type of deposit, applicationprocedure, registration and any registration changes, certificate application and renewals, storage,G/VAL/N/1/TPKM/1
Page 9
movement and management of goods and containers, and any other required matters shall be
prescribed by the Ministry of Finance.
Article 23
For the purpose of expediting clearance, the express goods may proceed at a specific place.
Rules governing the conditions and location of the establishment, classes, sorting and clearance
procedures of the express goods and any other required matters shall be prescribed by the Ministry of
Finance.
Article 24
Customs shall follow the Rules of Origin on Imported goods, when determining the origin of
imported goods. If necessary, Customs may request the duty-payer to provide the relevant certificate
of origin.
The Rules of Origin on Imported Goods shall be prescribed by the Ministry of Finance together
with the Ministry of Economic Affairs.
Section 2: Customs Value
Article 25
The customs value of imported goods subject to ad valorem of duties shall be determined and
calculated on the basis of the transaction value.
The term "transaction value" referred to in the preceding paragraph means the price actually
paid or payable for the imported goods sold from the exporting country to the Republic of China.
The following expenses shall be added into the customs value calculation, provided that such an
amount is not already included in the price actually paid or payable for the imported goods:
(1)commissions, brokerage, the cost of containers and the cost of packing incurred by the buyer;(2)the value, apportioned as appropriate, of the following goods and services supplied by the
buyer to the seller free of charge or at reduced cost for use in connection with the production
or sale for export of the imported goods:
(i) materials, components, parts and similar items incorporated in the imported goods;
(ii) tools, dies, moulds, and similar items used in the production of the imported goods;(iii) materials consumed in the production of the imported goods; andG/VAL/N/1/TPKM/1
Page 10
(iv) engineering, development, artwork, design, plans and similar items undertaken outside
of the Republic of China and necessary for the production of the imported goods;
(3) royalties and license fees related to the goods being paid by the buyer as a condition of the
sale of the goods;
(4) the proceeds for use or disposal of the goods the buyer accrues to the seller;(5) transport cost of the imported goods to the port or place of importation, and loading,
unloading and handling charges associated with the transport; or
(6) the cost of insurance.
Expenses added to the customs value in accordance with the preceding paragraph should be
added on the basis of objective, quantifiable information. Where objective and quantifiable data does
not exist, the customs value cannot be determined under the provision of this Article.
When Customs is doubtful of the truth and accu racy of the transaction documents provided by
the duty-payer, and remains doubtful when the duty-payer either fails to provide an explanation or
after the provision of such an explanation, the customs value cannot be determined under the
provision of this Article.
Article 26
The transaction value shall not be used as the basis for determining and calculating the customs
value of imported goods under any of the following circumstances:
(1) where there are restrictions as to the use or disposition of the goods by the buyer other than
restrictions which: (i) are imposed or required by law or public authorities in the Republic of
China; (ii) limit the geographical area in which the goods may be resold; (iii) do not
substantially affect the value of the goods;
(2) where the sale or the price is subject to some condition or consideration for which a value
cannot be determined with respect to the goods being valued;
(3) where part of the proceeds of any subsequent use or disposal of the goods by the buyer will
accrue to the seller, but where such an amount cannot be determined;
(4) where the buyer and seller are related and the relationship influences the transaction value.
For the purpose of sub-paragraph four of the preceding paragraph the buyer and seller shall be
deemed to be related only if:
(1) one of them is a manager, board director or supervisor of the other's business;
(2) they are legally recognized partners in business;G/VAL/N/1/TPKM/1
Page 11
(3) they are employer and employee;
(4) one of them directly or indirectly owns, co ntrols or holds five percent or more of the
outstanding voting stocks or shares of the other's business;
(5) one of them directly or indirectly controls the other;
(6) both of them are directly or indirectly controlled by a third person;(7) together they directly or indirectly control a third person; or
(8) they are spouses or relatives within a third-degree family relationship.
Article 27
If the customs value of the imported goods cannot be determined under the provisions of Article
25, the customs value shall be based upon the transaction value of identical goods sold for export to
the Republic of China, exported at or about the same time as the goods being valued. In applying this
Article, a reasonable adjustment shall be made to take into account value differences attributable tocommercial levels, quantity, transport costs, etc.
The term "identical goods" referred to in the preceding paragraph means goods which are the
same in all respects, including country of production, physical characteristics, quality and reputation,
as the goods being valued.
Article 28
If the customs value of the imported goods cannot be determined under the provisions of
Articles 25 and 27, the customs value shall be based on the transaction value of similar goods sold for
export to the Republic of China, exported at or about the same time as the goods being valued. In
applying this Article, a reasonable adjustment shall be made to take into account value differences
attributable to commercial levels, quantity, transport costs, etc.
The term "similar goods" referred to in the preceding paragraph means goods which, although
not alike in all respects, are produced in the same country, perform the same functions, have like
characteristics and like component materials, as the goods being valued, and are commercially
interchangeable with the goods being valued.
Article 29
If the customs value of the imported goods cannot be determined under the provisions of
Articles 25, 27 and 28, the customs value shall be based on a deductive value.
Customs may, according to the request of the duty-payer, reverse the order of application of this
articleArticle 29and Article 30 for a customs valuation.G/VAL/N/1/TPKM/1
Page 12
The term "deductive value" referred to in paragraph one means the customs value based on the
unit price at which the imported goods or identical or similar imported goods, are sold in the Republic
of China in the condition as imported, in the greatest aggregate quantity, at or about the time of the
importation of the goods being valued, to persons who are not related to the persons from whom they
buy such goods at the first commercial level,  are subject to deductions for the following:
(1) either the commissions usually paid or agreed to be paid, or the additions usually made for
profit and general expenses in connection with the sale of the imported goods or imported
goods of the same class or kind in the Republic of China;
(2) the customs duties, and other national taxes payable in the Republic of China by reason of
importation and sale of the goods;
(3) the transport and insurance costs and associated  costs incurred within the Republic of China
after the importation of the goods.
If neither the imported goods nor identical nor similar imported goods are sold at or about the
time of importation of the goods being valued, the customs value shall be based on the unit price at
which the imported goods or identical or similar goods are sold in the Republic of China in the
condition as imported, within ninety days following the day of the importation of the goods being
valued, to persons who are not related to the pe rsons from whom they buy such goods, in the
appropriate quantity, at the first sale, subject to deductions for the items enumerated in the preceding
paragraph.
If the imported goods are not sold in the condition as imported, then, if the duty-payer so
requests, the customs value shall be based on the unit price at which the imported goods, after further
processing, are sold in the greatest aggregate quantity to persons in the Republic of China who are notrelated to the persons from whom they buy such goods, due allowance being made for the value added
by such processing and the deductions provided for in paragraph three of this Article.
Article 30
If the customs value of the imported goods cannot be determined under the provisions of
Articles 25, 27, 28 and 29, the customs value shall be based on a computed value.
The term "computed value" referred to in the preceding paragraph means the sum of the
following:
(1) the costs and expenses of producing the imported goods;
(2) an amount for profit and general expenses equal to that usually reflected in the sale of the
imported goods or imported goods of the same class or kind as the goods being valued which
are made by producers in the country of exportation for export to the Republic of China;
(3) the transport cost of the imported goods to the port or place of importation, loading,
unloading and handling charges and insurance costs associated with the transport.G/VAL/N/1/TPKM/1
Page 13
Article 31
If the customs value of the imported goods cannot be determined under the provisions of
Articles 25, 27, 28, 29 and 30, the customs value shall be determined using reasonable means on the
basis of data available to Customs.
When the customs value is determined in accordance with the preceding paragraph, Customs
shall notify the duty-payer in writing of the method used to determine such a value, if requested to do
so by the duty-payer.
Article 32
Upon re-importation of machinery, apparatus and appliances sent abroad for repair or assembly,
or of goods exported abroad for further processing, the customs value of such goods shall be
determined in accordance with the following provisions:
(1) for machinery, apparatus and appliances sent abroad for repair or assembly, the actual cost of
repair or assembly shall be taken as the basis for calculating valuation;
(2) for goods exported abroad for further proc essing, the difference between the customs value
of such goods following further processing at the time of re-importation and that of imported
goods of the same kind at the time of exportation of such goods, prior to further processing,
shall be taken as the basis for valuation.
Article 33
In the case of imported goods on which only a rental or royalty is incurred, without a transfer of
ownership, the customs value shall be determined on th e basis of the rental or royalty amount plus the
transportation fee and insurance fee.
In a case in which the duty-payer under declares the rental or royalty referred to in the preceding
paragraph, Customs may determine the amount based on the information obtained through
investigation; provided, the annual rental or royalty amount is not lower than one tenth of the customs
value of the goods.
The imported goods on which duty is collected by rental or royalty pursuant to paragraph one,
in addition to the duty collected on rental or royalty, shall be provided a deposit or a guarantee by acredit institute based on the difference between the duty collected by rental or royalty and the total
liable duty on the customs value of the imported goods.
The paragraph one applies only to goods whose ownership is not transferable on account of
patent rights, trade secrets, or for any other specific reasons approved by the Ministry of Finance as a
special case.
The rental or usage period of the imported goods as referred to in paragraph one shall be
approved by the Ministry of Finance.G/VAL/N/1/TPKM/1
Page 14
Article 34
The exchange rate used for the conversion of foreign currency prices for imported goods liable
to ad valorem duty shall be that which is currently published or approved by the relevant foreign
exchange authorities. The applicability of such exch ange rates shall be defined in an order issued by
the Ministry of Finance.
Article 35
In cases where a complete set of machinery, together with all essential equipment used directly
with the machinery in the production process, has to be imported in an unassembled and disassembled
state, packed separately due to excessive size or for any other reasons, such machinery and equipment
shall be liable to duty; duty will be assessed according to their respective tariff classification unless
pertinent documents have, prior to importation, been submitted to Customs for verification and have
been approved by Customs in which case duty shall be assessed according to the tariff classificationapplicable to the complete machinery with equipment as one set.
Article 36
With the exception of the machinery which is to be dealt with in accordance with the provisions
of the preceding Article, any other goods, which are made up of several different components,
imported in a disassembled state or packed separately, shall be liable to duty assessed according to thetariff classification applicable to the goods as one complete unit.
Article 37
For the purpose of determining the correct customs value of imported goods, Customs, besides
referring to the declaration documents cited in paragraph one of Article 13, may also take the
following additional measures:
(1) examine any other documents concerning the price of the imported goods sold by the seller
to the buyer;
(2) make inquiries into the transaction value or deductive value of the imported goods or
identical or similar goods, and examine past records of customs values assessed for previous
shipments;
(3) investigate account books and vouchers related to the imported goods or identical or similar
goods of other sellers;
(4) explore any other evidence pertinent to valuation.G/VAL/N/1/TPKM/1
Page 15
Section 3: Time Limits for Duty Payment and Administrative Remedy
Article 38
Customs duty shall be paid within fourteen days following the date of receiving the duty memo.
Article 39
Dutiable imported goods shall be released after the duty payment has been paid unless
otherwise prescribed in this Law or unless a guarantee has been filed with and approved by Customs.
Article 40
If the duty-payer is dissatisfied with the decision of Customs on the tariff classification,
customs value, amount of duty to be made up, or special duty, of the imported goods, may, within
thirty days following the date of receiving the duty memo, file a written protest with Customs in the
prescribed form, thereby requesting a review of the case and withdrawal of the goods after paying the
entire duty amount or providing an appropriate guarantee.
Article 41
With regards to the review application, Customs shall review its decision and make a statement
within two months following the day of receiving the application. Customs may, if necessary, extend
the time limit and if doing so shall notify the duty-payer. Such an extension shall be limited to only
one time and shall not exceed two months.
The original statement shall be delivered to th e duty-payer within fifteen days following the
date of decision.
Article 42
The duty-payer, if dissatisfied with the review d ecision referred to in the preceding paragraph,
may file an appeal to higher authorities and enter into administrative litigation according to the law.
In case any duty is refunded as a result of an irrevocable decision given on a review, appeal, or
in administrative litigation, Customs shall refund it within ten days following the date of decision on
the protest or receipt of the original written appeal or administrative litigation notice. The refund shall
include duty plus interest payable for the period beginning on the day following the date on which
duty was paid by the duty-payer up to the date on which a refund notice or treasury check is issued,calculated on a daily basis according to the annual fixed rate of interest of fixed savings of the
Directorate General of Postal Remittance and Savings Bank, effective on the date on which the tax or
duty was paid.
In case any duty is recovered as a result of an irrevocable decision given on a review, appeal, or
in administrative litigation, Customs shall issue a memo for the recoverable duty and notify the duty-
payer to repay the duty, within ten days following th e day of decision on the protest or receipt of the
original written appeal or administrative litigation notice. The duty to be recovered shall bear interestG/VAL/N/1/TPKM/1
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for the period beginning on the day following the pr escribed tax or duty payment period up to the date
on which the memo for the recoverable duty is issued, calculated on a daily basis according to the
annual fixed rate of interest of fixed savings, of the Directorate General of Postal Remittance and
Savings Bank, effective on the date on which the tax or duty became due.
Article 43
In case of a default on the payment of customs duty, delinquent fee or fine by the duty-payer or
the penalized person, Customs may notify the relevant authorities to prohibit the duty-payer or the
penalized person from transferring, or creating other rights on, the property within the extent of
his/her liability. Where the defaulter is a profit-seeking enterprise, Customs may advise the relevant
authority to further restrict it from reducing capital or canceling registration.
Where the duty-payer or penalized person fails to pay the customs duty, delinquent fee or fine
according to the provisions of this Law and there is an indication of concealing or transferring his/herproperty in order to evade compulsory execution, Customs may request the court for a provisional
seizure of his/her property without providing a guar antee. However, this shall not apply in the case
where the duty-payer or penalized person has already provided a sufficient guarantee.
Where the duty-payer or penalized person fails to pay the customs duty or fine amount
prescribed, the judicial authority or the Ministry of Finance may request the Bureau of Immigration of
the Ministry of the Interior in writing to restrict him/her from leaving this country. In the case of a
legal person, partnership or non-legal body, its responsible person or representative may be restricted
from leaving this country. Such restrictions sha ll be removed after a sufficient guarantee has been
provided by him/her. Implementation rules governing such restrictions shall be prescribed by the
Executive Yuan.
CHAPTER III PRIVILEGED DUTY TREATMENT
Section 1: Duty Exemption
Article 44
The following imported articles are exempt from customs duty:
(1) articles imported for use by the President and the Vice President of the Republic of China;(2) articles imported for official or personal use by diplomatic and consular officials of foreign
embassies, legations and consulates stationed in the Republic of China, and articles imported
by other organizations and personnel that are entitled to diplomatic privileges, provided that
the foreign governments concerned are extending reciprocal privileges to the Republic of
China;
(3) mail pouches imported by diplomatic missions and articles for personal use brought in by
government agency officials returning from overseas posts following the expiry of theirterms of office;G/VAL/N/1/TPKM/1
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(4) arms and ammunition, military equipment, vehicles, vessels, aircraft and accessories thereof,
and supplies imported solely for military use by military authorities and armed forces;
(5) relief articles imported by or donated to government agencies or public welfare and charity
societies conducting relief work;
(6) articles necessary for educational, research, or experimental purposes imported by public and
private schools or other educational or research institutions, compatible with the respective
nature of their establishment; athletic equipment and apparatus required by sports
organizations for training and participating in international athletic contests; provided that
both categories are finished products;
(7) monopoly goods imported by monopoly agencies solely for monopolized sales;
(8) decoration medals, insignia and other similar articles for use as tokens of commendation
conferred by foreign governments or organizations;
(9) official and private documents and the like;
(10) advertising matter and samples of no co mmercial value or within the limited value;
(11) marine products caught at sea by fishing boats of the Republic of China; or marine
products, whose quantities are within the limit prescribed by the Ministry of Finance,
caught at sea and shipped back by fishing boats of the Republic of China belonging to agovernment-approved overseas company invested in by citizens of the Republic of China.
(12) wrecked vessels, aircraft and their respective equipment salvaged from the sea;
(13) vessels registered with the Republic of China, engaged in trade for two years, and permitted
to be dismantled on account of overage or for any other reasons; however, non fixtures on
board these ships such as articles and tools for ships' use, foreign goods’ stocks, bunkercoal and oil, shall not be exempt from duty;
(14) fuel and materials used solely on ships, aircraft and other means of transport engaged in
international trade; however, in the case of in ternational carriers registered with a foreign
government, granting duty-free privileges is subject to reciprocal treatment by that foreign
government to carriers of the Republic of China;
(15) personal effects, carried by passengers for their own use;
(16) petty parcels imported by post within the limited value;
(17) pharmaceutical products or medical apparatus imported by government agencies in order to
prevent epidemics;
(18) equipment and articles imported by government agencies for emergency aid.G/VAL/N/1/TPKM/1
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(19) articles for personal use brought in by sailors, holding citizenship of the Republic of China
and a domestic household registration, returning from foreign countries or transferring to
another port.
Except for the goods referred to in the preceding paragraph, the accumulated customs value of
the imported goods in the same shipment, if within the limited value prescribed by the Ministry of theFinance, shall be exempt from customs duty.
Rules governing the scope, items, quantities and limits of customs exemptions referred to in
sub-paragraphs 2 to 6, 10, 15, 16 and 19 of paragraph one shall be prescribed by the Ministry of
Finance.
Article 45
Imported goods shall be exempt from customs duty under any of the following circumstances:
(1) Goods lost, damaged or which have deteriorated, hence having no commercial value, while
in transit or at the time of unloading, provided that the fact has been reported to Customs at
the time of importation.
(2) Goods lost or damaged by flood, fire or other force majeure, hence having no commercial
value, following unloading but prior to release by Customs.
(3) Goods found to have been broken, leaking, damaged or rotten at the time of Customs’
examination, hence having no commercial value, provided it is not due to the negligence of
the warehouse keeper or any other party related to the goods.
(4) Goods to be returned to the exporter at the request of the duty-payer and approved by
Customs prior to release.
Article 46
When duty-paid imports are found to have been damaged or not conforming to the
specifications and quality as stated in the original contract, thereby necessitating compensation or
replacement from the exporter, the imported goods shall be exempt from duty on the condition that
the situation is reported to Customs within one m onth following the date of importation of the original
goods, and that all relevant documents submitted to Customs have been verified as accurate.
If the aforementioned goods are either machin ery or equipment, the report and application
submitted to Customs may be made within three months following the date of installation and test-run
of the machinery and equipment.
The imported goods eligible for compensation or replacement referred to in paragraph one shall
report for import within six months following the date of receiving the approval notice from Customs.
If necessary, an extension, not exceeding six months, may be applied for with Customs before the
expiration of such a period.G/VAL/N/1/TPKM/1
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Article 47
Samples, articles for scientific research, experiments, and/or exhibition, costumes and
paraphernalia of entertainment troupes, cinematographic equipment and supplies for making movies
and/or television films, instruments and tools needed for installation and repair of machines,
containers used for importing cargoes, finished products imported for repair and maintenance, andother articles approved by the Ministry of Finance shall be exempt from customs duty, provided that
they are to be re-exported abroad within six months following the date of importation or within the
time limit approved by the Ministry of Finance.
If the goods referred to in the preceding paragraph require an extension for the period of re-
exportation under special circumstances, an application for an extension stating the reasons shall be
submitted to Customs at the port of importation along with relevant documents. If the re-exportation
period was approved by the Ministry of Finance, then such an application shall be submitted to theMinistry of Finance.
Article 48
Samples, articles for scientific research, engineering machinery, cinematographic equipment
and supplies carried by professionals engaged in making movies and/or television films, instruments
and tools needed for installation and repair of machines, articles for exhibition, artwork, containersused for importing cargoes, costumes and paraphernalia of entertainment troupes, motion pictures and
video tapes mailed abroad by government agencies and other similar articles approved by the Ministry
of Finance shall be exempt from customs duty, prov ided that they are to be re-imported within one
year following the date of exportation or within the time limit approved by the Ministry of Finance.
If the goods referred to in the preceding paragraph require an extension for the period of re-
importation under special circumstances, an application for an extension stating the reasons shall be
submitted to Customs at the port of importation along with relevant documents. If the re-importation
period is approved by the Ministry of Finance, then such an application shall be submitted to the
Ministry of Finance.
Article 49
In cases where the goods imported are under duty reduction or exemption with a subsequent
deviation from duty reduction or exemption conditions on account of a transfer of ownership or a
change in their use, the original duty-payer or th e present holder of such goods shall be required to
pay duty to Customs at the port of importation, within  thirty days following the date of the ownership
transfer or the change in the use of the goods imported; the import duty levied shall be according to
the value and tariff rate applicable at the time when such a transfer or change occurred. However, the
duty shall be exempted after expiry of the time limit prescribed by the Ministry of Finance.
Imported goods on which duties are paid in installments or recorded on accounts shall not be
transferred until full payment of such duties is made unless they are under compulsory execution or
otherwise approved by Customs as a special case.G/VAL/N/1/TPKM/1
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Where the imported goods are under compulsory execution or approved as a special case as
provided for in the preceding paragraph, the transf eree may continue to pay the duties in installments
or record them on accounts.
Regulations governing the time limit for the recoverable duty exemption and the means by
which to make up the payable duty referred to in paragraph one shall be prescribed by the Ministry ofFinance.
Article 50
Raw materials imported for use in processing articles intended for export may be exempt from
duty if they are re-exported, and are approved by th e Ministry of Finance within one year following
the day on which the raw materials were released for entry.
The application for exemption for the re-exported raw materials referred to in the preceding
paragraph shall be submitted within six months following the date of exportation.
Article 51
Exports returned for any reason may be exempt from duty as finished products, if they are re-
imported within five years following the release date for exportation; however, the import duty
originally paid on the raw materials, refunded upon exportation of the goods, must be repaid in full.
The re-imported goods under the preceding paragraph which have a guarantee to be re-exported
upon completion of repair or maintenance, within six months following the date of re-importation,
shall be exempt from a repayment of duty on ra w materials which was refunded upon exportation of
the finished goods.
Section 2: Bonding
Article 52
Goods arriving at a port of the Republic of China may, prior to import declaration, apply to
Customs for entry of the goods into a bonded warehouse. Goods re-exported within the time limit
prescribed for storage in a bonded warehouse may be exempt from paying duty.
During the warehousing period referred to in the preceding paragraph, the owner of the stored
goods or the bearer of the warehousing receipt thereof may apply to Customs for permission toarrange, sort, divide up, assemble or repack such goods within the bonded warehouse.
The firm operating the bonded warehouse shall apply to the relevant Customs office for
registration and submit a deposit. Rules governing the qualification, conditions, installation and
equipment, amount and type of deposit, application procedure, registration and any registration
changes, certificate application and renewals, storage and management of goods and any other
required matters shall be prescribed by the Ministry of Finance.G/VAL/N/1/TPKM/1
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Article 53
Export processing factories may be registered , with the approval of Customs and under its
supervision, as bonded factories. All imported raw materials, except those ineligible for bonding as
co-proclaimed by the Ministry of Finance and the Ministry of Economic Affairs, stored and used in
such bonded factories for manufacturing or processing into exported products shall be exempt fromcustoms duties.
Finished products processed or manufactured by bonded factories and raw materials exempted
from customs duties, in accordance with the provisions of the preceding paragraph, shall not be
moved out of the bonded factories for domestic sale, unless approved by Customs and unless duties
have been paid on the finished products or raw materials in the form when they were moved out of the
bonded factories.
Bonded factories shall apply to the relevant Customs office for registration. Regulations
governing the qualification, conditions, capital requirements, application procedure, installation and
equipment, registration and any registration changes, certificate application and renewals, processing,
management, clearance, recoverable duty procedures for domestic sales of bonded goods and any
other required matters shall be prescribed by the Ministry of Finance.
Article 54
Firms operating the storage, transportation and distribution business of bonded goods at the
bonded location may apply to Customs for registration of its location as a logistics center.
Goods stored in a logistics center, if required for the operation referred to in the preceding
paragraph, may carry out reconditioning and simple processing.
Exported goods stored in a logistics center which are re-exported in their original form, or after
reconditioning or processing, shall be exempted from duty. Domestic goods stored in a logistics
center, except for items whose duty refund cancellation has been announced, may apply to offset or
refund duty following exportation in accordance with Article 57.
Firms operating a logistics center business shall apply to the relevant Customs office for
registration and pay a deposit. Regulations governing qualifications, conditions, capital requirements,amount and type of deposit, application procedure, registration and any registration changes,
certificate application and renewals, management and clearance of goods and any other required
matters shall be prescribed by the Ministry of Finance.
Article 55
Firms which sell goods to travelers entering or leaving the Republic of China may apply to
Customs for registration as a duty-free shop.
In the case in which bonded goods stored for sale by duty-free stores are sold to travelers within
the time limit and are exported, by way of carrying them out, in their original form, such goods shall
be exempted from duty.G/VAL/N/1/TPKM/1
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Bonded goods of duty-free shops shall be stored in bonded warehouses which specifically
provide the storage for duty-shops.
Firms operating a duty-free shop business shall apply to the relevant Customs office for
registration and pay a deposit. Regulations governing the qualifications, conditions, capital
requirements, application procedure, registration and any registration changes, certificate applicationand renewals, management, clearance, sales of goods, and any other required matters shall be
prescribed by the Ministry of Finance.
Article 56
In the case in which imported goods are returned or exported by transshipment due to a mistake
made during loading, excessive unloading or any other special reasons prior to declaration, an
application shall be submitted to Customs for approval within fifteen days following the importation
date of the transportation carrying such goods; such goods shall be returned in their original form or
exported by transshipment within ninety days. In the case in which an application cannot be submitted
on time due to rational reasons, the application for storage in a bonded factory shall be submitted to
Customs in accordance with Article 52 prior to the stipulated period’s expiration.
Goods which were not carried out in accordance with the preceding paragraph may be sold or
disposed of, in accordance with paragraph two of Article 68 mutatis mutandis.
Section 3: Customs Duty Refunds
Article 57
Customs duty paid on raw materials used in the manufacture of articles intended for export is
refundable following exportation of the finished products.
Customs duty leviable on raw materials may be recorded on accounts with guarantees provided
by the manufacturers and offset following the exportation of the finished products.
Firms may, within one year and a half following the date on which raw materials were released
for importation, apply to Customs,  with relevant export documents, for a duty refund or an offsetting
of the accounts for export products manufactured from imported raw materials. After the expiration of
the prescribed time limit, the application for a duty refund or offset shall be rejected.
The time limit referred to in the preceding paragraph may be extended under special
circumstances approved by the Ministry of Finance. Such an extension shall not exceed a period of
one year.
Regarding the refund and offsetting of customs duty paid on raw materials, regulations
governing the approval standards and calculations of such a refund or offset, application procedure,
time limits, guarantees provided, records of the offset on accounts and any other required matters shall
be prescribed by the Ministry of Finance.G/VAL/N/1/TPKM/1
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Article 58
Duty-paid imported goods banned from use by the Government within one year following
importation are entitled to a refund of the duty paid, provided they are re-exported or destroyed under
Customs supervision within six months following the date of such a ban.
Duty-paid cinematographic films banned from exhibition are entitled to a refund of the duty
paid, provided they are re-exported or destroye d under Customs supervision within three months
following the date of the ban notice issued by the relevant authority in charge of motion picture
censorship.
Article 59
Upon discovery of a disproportionate duty collec tion or refund, either in an insufficient or
excessive amount, the compensated amount shall either be advised of by Customs, or applied for by
the duty-payer, whichever the case may be.
The above ruling shall be made within one year following the date on which the
disproportionate duty was paid, or one year foll owing the date on which the duty refund notice was
issued.
The compensated amount of duty referred to in paragraph one shall be collected or refunded
together with the interest payable for the period beginning from the date following that on which theduty was paid, or following the day on which the time limit for the duty payment expired, or
following the date on which the duty refund notice was issued by Customs, up to the date on which
the duty is compensated, calculated on a daily basis according to the annual fixed interest rate of fixed
savings, of the Directorate General of Postal Remittance and Savings Bank, effective on the date on
which the duty is either due or paid.
The duty-payer shall pay the disproportionate customs duty and the calculated interest in
accordance with the preceding paragraph within four teen days following the date of receiving the
compensation notice from Customs. In the case of delinquent payment made prior to the expiration of
the time limit, a delinquent fee shall be levied at the rate of 0.05 percent of the total amount of
customs duty unpaid per day, commencing on the date following that on which the prescribed dutypayment period expired up to the date on which the outstanding amount of duty is liquidated in full.
Should the amount still be outstanding within thirty days, a procedure of compulsory execution shall
be undertaken in accordance with the law.
Article 60
In the case of refunded money, Customs shall deduct the outstanding amount from the refund in
order to offset the delinquent payment immediately notifying the duty-payer of the balance.G/VAL/N/1/TPKM/1
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CHAPTER IV CONTRABAND
Article 61
The following contraband shall be prohibited from importation unless otherwise specifically
provided for in other laws and regulations:
(1) counterfeit currency, negotiable securities, bank notes, plates or dies for printing or casting
counterfeit currencies;
(2) gambling apparatus, lottery tickets or any other similar prize tickets issued in foreign
countries;
(3) books, magazines, pictures and any other articles considered obscene and/or  indecent;
(4) publications and other articles propagating Communism;
(5) articles infringing upon the rights of patents, designs, trademarks, and copyrights;
(6) other contraband as specified in other laws.
CHAPTER V SPECIAL CUSTOMS DUTY
Article 62
Imported goods that have directly or indirectly received a bounty or other forms of subsidy during
the process of manufacture, production, export, or transportation in the country of exportation or
origin, thereby causing injury to industry in the Republic of China, may be subject to the imposition
of an appropriate countervailing duty in addition to the customs duty leviable under the Customs
Import Tariff.
II. ARTICLE 63
Imported goods that are found to have been dumped at a price less than the normal value of its
like product, thereby causing injury to industry in the Republic of China, may be subject to theimposition of an appropriate antidumping duty in addition to the customs duty leviable under the
Customs Import Tariff.
The "normal value" referred to in the preceding paragraph means the comparable domestic selling
price in the country of exportation or origin in the ordinary course of trade.  In the absence of such a
domestic selling price, the comparable selling price exported to an appropriate third country, or theconstructed price consisting of the cost of production in the country of origin plus a reasonable
amount for administrative, selling, and other expenses, and normal profit as the basis for comparison.G/VAL/N/1/TPKM/1
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Article 64
The term "causing injury to industry in the Republic of China" referred to in the preceding two
Articles means material injury, threat of material in jury to the industry, or material retardation of the
establishment of such an industry in the Republic of China.
The amount of countervailing duty to be imposed shall not exceed that of the bounty and subsidy
received for the imported goods, and the amount of antidumping duty imposed shall not exceed the
dumping margin of the imported goods.
The scope, subject, amount, commencement or termination date for imposing a countervailing or
antidumping duty shall be prescribed by the Ministry of Finance after consulting with the relevant
authorities, and shall become effective on the date of the public announcement.
Regulations governing the qualification of applicants, application contents, investigations,
examinations, opinion statement, disposition procedure and any other required matters regarding theimposition of a countervailing duty and antidumping duty shall be drafted by the Ministry of Finance,
together with the relevant authorities, and shall be submitted to the Executive Yuan for approval.
Article 65
Should goods exported from the Republic of China or carried by any means of transport
belonging to the Republic of China be accorded discriminatory treatment by an importing country,thereby placing the goods of the Republic of China in a disadvantageous position as compared with
those of other countries in the market, the goods shipped from that country to the Republic of China
or carried by any means of transport belonging to that country may be liable to payment of an
appropriate retaliatory duty as decided by the Ministry of Finance, in addition to the customs duty
leviable in accordance with the Customs Import Tariff.
In making the decision as referred to in the preceding paragraph, the Ministry of Finance shall
consult with the relevant authorities and report to the Executive Yuan for approval.
Article 66
In the case of dealing with an extraordinary domestic and/or international economic situation, or
a situation to accommodate the supply of goods, or to provide a reasonable operational environment,an adjustment of customs duty, within fifty percent of the statutory duty rate as provided for in the
Customs Import Tariff, may be made on imported goods. In the case of a specific manufacturing
enterprise which has met the prescribed scale or criteria either through a merger or consolidation
during a specific period of time, its imported machinery and equipment, as approved in the merger or
consolidation plan, may be exempt from customs duty.
The designation of the concerned goods, range of tariff rate adjustment, category for specific
manufacturing enterprises, scale or criteria to be met and the dates for commencing and terminatingsuch a tariff rate adjustment or duty exemption shal l be drawn up jointly by the Ministry of Finance
and the Ministry of Economic Affairs and be submitted to the Executive Yuan for approval.
Following approval, the Executive Yuan shall immediately notify the Legislative Yuan of the action
taken for information.G/VAL/N/1/TPKM/1
Page 26
The duration of such a tariff rate adjustment shall be limited to one year beginning from the date
of commencement to the date of termination. Th e period of duty exemption for machinery and
equipment shall be limited to two years.
In the case of a merged or consolidated manufacturing enterprise as referred to in paragraph one
of this Article failing to accomplish the originally approved merger or consolidation plan, or meetingthe prescribed scale or criteria following the completion of the merger or consolidation plan, the
customs duties originally exempted shall be collected together with the delinquent fee to be levied in
accordance with Article 69. The machinery and equipment on which customs duties are exempted
shall not be resold or leased to a third party or used to establish a separate manufacturing enterprise
within five years following the date of
importation, violation of which shall be dealt with in accordance with the provisions of Article 49.
Article 67
In the case where import relief or special safeguard measures are adopted in accordance with
Article 18 of the Foreign Trade Act or other international agreements, the duty rate may be increased,
tariff quota may be adopted or additional duties imposed on specified imported goods. The scope and
period of which shall be prescribed by the Ministry of Finance, in conjunction with the relevant
authorities, and shall be submitted to the Executive Yuan for approval.
The tariff quotas referred to in the preceding paragraph shall be implemented in accordance
with the tariff quota implementation rules prescribed in paragraph two of Article four of this Law.
CHAPTER VI PENALTIES
Article 68
In the case of imported goods failing to apply for clearance within the time period prescribed in
Article 12, a late fee of NT$ 18 per day shall be levied beginning from the date following that on
which the time period expires.
If the imported goods still fail to apply for clearance following thirty consecutive days of
having the late fee imposed, the goods concerned shall be disposed of by Customs by way of sale. If
any surplus proceeds of the sale remain followin g the deduction of the customs duty levied and any
other necessary expenses, Customs shall keep the surplus proceeds in temporary custody pending
claim by the duty-payer; the duty-payer concerned shall apply for a refund of the surplus proceeds
within a period of five years, after which time they  shall be surrendered to the government treasury.
Article 69
In the case where the import duty is not paid within the time limit prescribed in Article 38, a
delinquent fee shall be levied at the rate of 0.05 percent of the amount of duty per day beginning from
the date following that on which the time limit for duty payment expires.G/VAL/N/1/TPKM/1
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If the import duty remains unpaid after the imposition of the delinquent fee for sixty
consecutive days, the ruling prescribed in paragraph two of the preceding Article shall apply mutatis
mutandis.
Article 70
In the case where Customs conducts an investigation, in accordance with the provisions of
Article 10 and Article 37, in which the person being investigated, evades, interrupts or refuses an
investigation, rejects, without valid reason, to produce account books, documents and other evidence
as may be necessary regarding either the relevant goods or goods of the same kind, or refuses
Customs entry into relevant computer files or data bases to investigate relevant information, shall be
liable to a fine of not less than NT$ 3,000 and not more than NT$30,000. Repeated refusals may entail
repeated impositions of fines.
Article 71
The original duty-payer, present holder, transferor and transferee of the goods shall pay the
payable duty in accordance with Article 49 within fourteen days following the date of receiving the
duty memo from Customs. In the case where customs duty is not paid within the prescribed time
period, the procedures referred to in paragraph one of Article 69 shall be undertaken. Should the
customs duty still be unpaid within thirty days, the procedure of compulsory execution, in accordancewith Article 76, may be undertaken.
If it is discovered that full payment of the customs duty has not been made in accordance with
Article 49, a fine equal to the amount of the full duty shall be levied in addition to the customs duty
payable.
Article 72
In the case of a delinquent payment of customs duty involving exemptions of customs duties,
records on accounts and/or installment payment of customs duties for imported machinery,
equipment, apparatus, automobiles and necessary parts and components processed according to law
shall be handed over for compulsory execution. In addition, a delinquent fee shall be charged at the
rate of 0.05 percent of the total amount of customs duty unpaid or recorded on account per day,commencing from the date following that on which the prescribed time limit for duty payment expired
or on which the duty was recorded on the account to the date on which the outstanding amount of duty
is paid in full. However, the total amount of the delinquent fee charged should not exceed thirty
percent of the amount of customs duty unpaid or recorded on the account.
Article 73
In the case where the finished products or duty-free raw materials of a bonded factory are
moved out of the factory for domestic sale, in viola tion of the provisions of paragraph two of Article
53, such a violation shall be treated as smuggling goods into this country and shall be liable to
penalties in accordance with the relevant provisions of the Customs Preventive Law.G/VAL/N/1/TPKM/1
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Article 74
In the case where the amount of duty recorded on the account for raw materials imported for
manufacture of exported products cannot be offset within a prescribed period, a delinquent fee shall
be charged at the rate of 0.05 percent of the amount of duty payable per day, in addition to payment of
the customs duty so recorded, commencing on the date following the expiration on which the customsduty was recorded to the date on which the outstanding amount of duty is paid in full. However, under
any of the following circumstances, the delinquent fee shall not be charged:
(1) excessive amount of raw materials stored has been approved because of government export
controls or coordination with government policy;
(2) the factory suffers from a disaster under force majeure such as a typhoon, earthquake, fire,
flood, etc., certified to be true by the local police or internal revenue office;
(3) the duty recorded cannot be offset within the prescribed period due to a drastic change in the
international economic situation following which an exemption of the delinquent fee has
been agreed upon by the Ministry of Finance and the Ministry of Economic Affairs;
(4) the goods being exported are directly affected by a coup d'etat, war, strike or unforeseeable
disaster occurring in the importing country, declared to be true following investigation;
(5) the goods have been exported prior to the expiration of the prescribed period for duty refund
or offsetting of the accounts of customs duty recorded or within six months following the
expiration of the prescribed period for filing an application for duty refund or offsetting of
the accounts of customs duty recorded.
Article 75
All contraband imported in violation of the provisions of Article 61 of this Law shall be
confiscated except as otherwise provided for in other laws.
Article 76
The following amounts leviable or recoverable under this Law shall be handed over to the
relevant authority for compulsory execution if the following amounts are not paid after notification byCustoms, unless otherwise provided for in this Law:
(1) customs duty, delinquent fees, late fees and interest.
(2) fines imposed under this Law;G/VAL/N/1/TPKM/1
Page 29
(3) expenses incurred in the disposing of, sale or destruction of the imported goods for which no
proceeds from the sale are acquired or proceeds of the sale are insufficient to cover the
expenses, provided that the duty-payer was notified prior to such a disposing of, sale or
destruction;
If the duty-payer wishes to file a protest agains t the payment of customs duty or other levies as
provided for in the preceding paragraph, the proced ure prescribed in Articles 40 to 42 shall apply
mutatis mutandis.
The duty-payer may apply for a suspension handed over for compulsory execution of the
amounts leviable or recoverable, as stipulated in paragraph one, provided the duty-payer has requested
a review of the case in accordance with the provisions of Article 40 and has provided an appropriate
guarantee. However, a guarantee shall not be required again if the imported goods have already been
provided an appropriate guarantee for release according to Article 40.
The payment of customs duty as referred to in paragraph one shall take precedence over all
claims filed by ordinary creditors.
Article 77
When goods which are prohibited from importation arrive at a port of the Republic of China,
Customs shall order the duty-payer to return such goods abroad within a prescribed period. If theduty-payer abandons the goods in writing or fails to return the goods abroad within the prescribed
period, the goods may be disposed of by Customs. If there is a sales surplus after deducting the
customs duty leviable and any necessary expenses, they shall be surrendered to the government
treasury.
If goods subject to disposing of under the provisions of the preceding paragraph, paragraph two
of Article 68 and paragraph two of Article 69 cannot be sold and need to be destroyed, the duty-payer
shall be notified of the need to destroy such goods by himself/herself, under Customs supervision,
within the prescribed period. Failure to do so by the duty-payer will result in the goods being
destroyed by Customs, with any expenses associated  with such destruction being borne by the duty-
payer and paid to Customs within the prescribed period.
Article 78
In the case whereupon proceeding with registration, the application procedure, management or
any other required matters regarding on-line transmission or electronic data transmission of clearance
information, the enterprise, conducting the customs declaration, transportation, storage, container yard
and any other business related to clearance, violates the regulations prescribed in accordance with
Article 8, Customs may warn and request such an enterprise to rectify its behavior within a time
period or impose a fine of not less than NT$ 6,000 and not more than NT$30,000. Such an impositionof a fine may be repeated if necessary. In the case where such an enterprise does not rectify its
behavior after the imposition of a fine three consecutive times, a suspension of on-line declaration
privileges may be adopted for a period of not more than six months.G/VAL/N/1/TPKM/1
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Article 79
In the case whereupon proceeding with the importation or exportation clearance, registration
change and the certificate application or renewal of the firm which conducts the transportation
business, owns the transport, and other required matters, the responsible person, of the transportation
means for passengers or cargo or the owner of transport entrusted by the responsible person, violatesthe regulations prescribed in accordance with paragraph three of Article 15, Customs may warn and
request such a person or owner to rectify his/her behavior within a time limit or impose a fine of not
less than NT$ 20,000 and not more than NT$90,000. The imposition of a fine may be repeated if
necessary. In the case where such a person does not rectify his/her behavior after the imposition of a
fine three consecutive times, a suspension of importation or exportation declaration privileges may be
adopted for a period of not more than six months.
Article 80
In the case whereupon proceeding with registration change, certificate application or renewal,
operation of the declaration business or any other required matters, the customs broker violates the
regulation prescribed in accordance with paragraph three of Article 18, Customs may warn and
request such a broker to rectify his/her behavior within a time limit or impose a fine of not less than
NT$ 6,000 and not more than NT$30,000. The imposition of a fine may be repeated if necessary. Inthe case that such a customs broker does not rectify his/her behavior after the imposition of a fine
three consecutive times, a suspension of on-line declaration privileges may be adopted for a period of
not more than six months.
In the case whereupon conducting the business of declaration and examination, endorsement
and other required matters, the certified employee violates the regulations prescribed in accordancewith paragraph three of Article 18, Customs may warn and request such an employee to rectify his/her
behavior within a time limit or impose a fine of not less than NT$ 2,000 and not more than NT$5,000.
The imposition of a fine may be repeated if necessary. In the case that such an employee does not
rectify his/her behavior after the repeated imposition of a fine three consecutive times, a suspension of
declaration, examination and endorsement privileges may be adopted for a period of not more than sixmonths, or his/her registration may be repealed.
Article 81
In the case whereupon proceeding with registration change, certificate application and renewal,
bonded transport use and management or any other required matters, the owner of the bonded
transport violates the regulations in accordance with paragraph two of Article 21, Customs may warn
and request such an owner to rectify his/her behavior within a time limit or impose a fine of not less
than NT$ 3,000 and not more than NT$10,000. The imposition of a fine may be repeated if necessary.In the case such an owner does not rectify his/her behavior after the repeated imposition of a fine
three consecutive times, a suspension of loading privileges may be adopted for a period of not more
than six months, or his/her registration may be a repealed.
Article 82
In the case whereupon proceeding with registration change, certificate application and renewal,
storage, movement and management of goods and containers and any other required matters, the firm
operating warehouse or container yard violates the regulations prescribed in accordance withG/VAL/N/1/TPKM/1
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paragraph two of Article 22, Customs may warn and request such a firm to rectify its behavior within
a time limit or impose a fine of not less than NT$ 6,000 and not more than NT$30,000. Such an
imposition of a fine may be repeated if necessary. In the case that such a firm does not rectify its
behavior after the repeated imposition of a fine three consecutive times, a suspension of container and
goods storage privileges may be adopted for a period of not more than six months, or its registrationmay be repealed.
Article 83
In the case whereupon proceeding with the clearance of express goods, sorting of goods and any
other required matters, the firm which conducts the express delivery business violates the regulations
prescribed in accordance with paragraph two of Article 23, Customs may warn and request such a
firm to rectify its behavior within a time limit or impose a fine of not less than NT$ 6,000 and not
more than NT$30,000. Such an imposition of a fine may be repeated if necessary. In the case thatsuch a firm does not rectify its behavior after the repeated imposition of a fine three consecutive
times, a suspension of the express goods clearance privileges may be adopted for a period of not more
than six months.
Article 84
In the case whereupon proceeding with registration change, certificate application or renewal,
installation and equipment of the bonded warehouse, storage of goods, management and any other
required matters, the firm operating the bonded warehouse violates the regulations prescribed in
accordance with paragraph three of Article 52, Customs may warn and request such a firm to rectify
its behavior within a time limit or impose a fine of not less than NT$ 6,000 and not more than
NT$30,000. Such an imposition of a fine may be repeated if necessary. In the case that such a firmdoes not rectify its behavior after the repeated imposition of a fine three consecutive times, a
suspension of bonded goods storage privileges for a period of not more than six months or a
suspension of monthly declaration privileges may be adopted, or its registration may be repealed.
Article 85
In the case whereupon proceeding with registration change, certificate application or renewal,
installation and equipment of the bonded factory, processing, management and clearance of bonded
goods, payment procedures for duty payable on goods distributed domestically and any other required
matters, the firm operating the bonded factory violat es the regulations prescribed in accordance with
paragraph three of Article 53, Customs may warn and request such a firm to rectify its behavior
within a time limit or impose a fine of not less than NT$ 6,000 and not more than NT$30,000. Such
an imposition of a fine may be repeated if necessary. In the case that such a firm does not rectify its
behavior after the repeated imposition of a fine three consecutive times, a suspension of part or wholeof bonded factory business privileges may be adopted for a period of not more than six months, or its
registration may be repealed.
Article 86
In the case whereupon proceeding with registration change, certificate application and renewal,
management of goods, clearance or any other required matters, the firm operating the logistics centerviolates the regulations prescribed in accordance with paragraph four of Article 54, Customs may
warn and request such a firm to rectify its behavior within a time limit or impose a fine of not lessG/VAL/N/1/TPKM/1
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than NT$ 6,000 and not more than NT$30,000. Such an imposition of a fine may be repeated if
necessary. In the case that such a firm does not rectify its behavior after the repeated imposition of a
fine three consecutive times, a suspension of goods storage privileges for a period of not more than
six months or a suspension of monthly declaration privileges may be adopted, or its registration may
be repealed.
Article 87
In the case whereupon proceeding with registration change, certificate application and renewal,
management of goods, clearance, distribution and sales or any other required matters, a firm operating
a duty-free shop violates the regulations prescribed in accordance with paragraph four of Article 55,
Customs may warn and request such a firm to rectify its behavior within a time limit or impose a fine
of not less than NT$ 6,000 and not more than NT$30,000. Such an imposition of a fine may be
repeated if necessary. In the case that such a firm does not rectify its behavior after the repeatedimposition of a fine three consecutive times, a suspension of goods storage privileges may be adopted
for a period of not more than six months, or its registration may be repealed.
Article 88
In the case whereupon applying for a refund or offsetting of customs duty, proceeding with
account records for customs duty on raw materials or any other required matters, the firm applying fora refund and/or offsetting of customs duty for exported goods violates the regulations prescribed in
accordance with paragraph five of Article 57, Customs may suspend the account recording privileges
for a period of not more than six months.
Article 89
In the case where the firm liable for a deposit pursuant to Article 15, Article 21, Article 22,
Article 52 and/or Article 54 fails to pay the payable duty, fees or fines, Customs may offset such a
duty, fee or fine against the deposit made.
In the case where such a deposit is insufficient for the deduction referred to in the preceding
paragraph, Customs may notify such a firm to make up the shortfall within a prescribed period. In the
case where the firm fails to make up the shortfall prior to the expiration of the prescribed period,Customs may suspend business privileges for a period of not more than six months, or repeal its
registration.
Article 90
In the event that the goods delivered by bonded transport or stored in a warehouse, container
yard, bonded warehouse, or duty-free shop has been f ound to be deficient due to illegal withdrawal,
loss, theft or any other reason, the firm operating such a business shall be responsible to make up any
shortfall of the payable import duty.G/VAL/N/1/TPKM/1
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Article 91
Imported or exported goods which are involved in smuggling, duty evasion or other violations
of law shall be dealt with in accordance with the provisions of the Customs Preventive Law and other
relevant laws.
CHAPTER VII SUPPLEMENTARY PROVISIONS
Article 92
With Regards to the warehouse, container yard, bonded warehouse and/or logistics center
registered in accordance with this Law, and other business designated by Customs, matters which
were originally supervised and controlled by Customs may be managed autonomously by such a firm
after obtaining approval from Customs by  way of authorization or application.
The Customs shall audit the autonomously managed firm on a regular or irregular basis.
Rules regarding matters, scope, required conditions and any other required matters pursuant to
paragraph one shall be prescribed by the Ministry of Finance.
Article 93
The duty-payer or exporter and any related person shall maintain all records, documents,
accounting books and relevant computer files or data bases, etc, related to the imported or exported
goods for five years beginning on the day following that on which the imported or exported goodswere released.
Article 94
Customs may collect service charges for special services rendered to transport and imported or
exported goods as well as for the issuance of various certificates. Rules governing the collection of
such charges shall be prescribed by the Ministry of Finance.
Article 95
Rules governing the implementation of this Law shall be prescribed by the Ministry of Finance.
Article 96
This Law shall take effect on the date of its promulgation.
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