ACT 63

Customs duty paid on raw materials used in the manufacture of articles intended for export is refundable following exportation of the finished products according to the standards for the raw materials in the quantity required for normal production, unless the item of duty refund has been cancelled by the Ministry of Finance by public notice or the amount of the refundable duty, or percentage of it in the FOB price of the finished products is lower than the limit prescribed by the Ministry of Finance.
Customs duty leviable on raw materials may be recorded in books with guarantees provided by the manufacturers and offset following the exportation of the finished products.
Manufacturer may apply for a duty refund or an offsetting of the accounts for export products, with relevant export documents, within one year and a half following the date on which the raw materials were released for importation. 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 one year.
Regulations governing the refund and offsetting of customs duty paid on raw materials, 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.
Article 64
Under any of the following circumstances, the customs duty shall be refunded:
(1) where the imported goods are banned by law from sale or use within one year following importation, and are re-exported or destroyed under Customs supervision within six months following the date of such a ban.
(2) where it is confirmed by Customs that the goods are damaged or broken prior to picking up due to natural disaster, accident or force majeure and thus have no value.
(3) where the tax-payer applies for re-exporting or storing the goods in a bonded warehouse prior to picking up them, and the application is approved by Customs.
Article 65
In the case where there is shortage/excess of duty collection or refund, Customs, upon discovery, shall notify the duty-payer to pay or return the difference, or claim the over-collected/refundable amount. The duty-payer may also take initiative to apply for the payment or refunding.
The payment or refunding refer to in the preceding paragraph shall be made within one year. In the case of shortage/excess of duty collection, the time period shall be beginning following the date on which the duty was paid. In case of shortage/excess of refund, the time period shall be beginning following the date on which the duty refund notice was issued.
The shortage payable or refund receivable 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 the duty was paid, or following that on which the time limit for the duty payment expired, or following that on which the duty refund notice was issued by Customs, up to the date on which the shortage is paid or refund is received, calculated on a daily basis according to the annual interest rate of one-year fixed savings in Postal Savings which is effective on the date on which the duty is either due or paid.
The duty-payer shall pay the shortage duty or excess refund and the calculated interest in accordance with the preceding paragraph within fourteen days following the date of receiving the 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 duty payment period expired up to the date on which the outstanding amount of duty is liquidated in full.
Article 66
In the case of refunded money, Customs shall deduct the outstanding amount from the refund in order to offset the delinquent payment, and immediately notify the duty-payer of the balance.
CHAPTER IV SPECIAL CUSTOMS DUTY
Article 67
Imported goods that have directly or indirectly received a financial subsidy or any other form of allowance during the process of manufacture, production, sale, or transportation in the country of exportation or origin, thereby causing injury to any industry in the Republic of China, may be subject to the imposition of appropriate countervailing duty in addition to the customs duty leviable under the Customs Import Tariff.
Article 68
Imported goods that are found to have been imported at a price less than the normal value of its like product, thereby causing injury to any industry in the Republic of China, may be subject to the imposition of 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 the constructed 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 will be the basis for comparison.
Article 69
The term "causing injury to any industry in the Republic of China" referred to in the preceding two Articles means material injury, threat of material injury 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 subsidy and allowance 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, duty rate, commencement or termination date for imposing 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, determination, opinion statement, disposition procedure and any other required matters regarding application for imposition of 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 70
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 submit to the Executive Yuan for approval.
Article 71
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 or applicable tariff quota, within fifty percent of the statutory duty rate or quantity as provided for in the Customs Import Tariff, may be made on imported goods. The period of adjustment of duty rate or quantity shall be limited to one year.
The categories of goods subject to adjustment of duty rate or quantity referred to in the preceding paragraph, the range of actual adjustment, and the dates for commencing and terminating such adjustment shall be drawn up jointly by the Ministry of Finance and the related authorities, and be submitted to the Executive Yuan for approval.
Article 72
In the case where import relief or special safeguard measures are adopted in accordance with the Foreign Trade Act or other international agreements respectively, the Ministry of Finance may increase the duty rate, a tariff quota may be adopted or additional duties imposed on specified imported goods.
Where the accumulative import volume of a category of goods is beyond the standard trigger volume, the additional duty referred to in the preceding paragraph shall be calculated based on the duty leviable on the imports determined by Customs; where the import price is lower than the standard trigger price, it shall be calculated based on the difference between the customs value determined by Customs under this Act and the standard price. For the levy of additional duty, the higher of the two values resulting from comparison in respect of the two standards shall apply.
The scope, duty rate, amount and period regarding the increase of duty, adoption of tariff quota or imposition of additional duty referred to in Paragraph One shall be drafted jointly by the Ministry of Finance and the related authorities, and submitted to the Executive Yuan for approval. The tariff quota shall be implemented in accordance with the regulations for tariff quota set forth in paragraph two of Article 5.
CHAPTER V PENALTIES
Article 73
In the case where the duty-payer of the imported goods fails to apply for clearance within the time period prescribed in paragraph one of Article 16, a late fee of NT$200 per day shall be levied beginning from the date following that on which the time period expires.
If the duty-payer of the imported goods still fails to apply for clearance following twenty 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 following the deduction of the customs duty levied and any other necessary expenses, Customs shall retain 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 national treasury.
Article 74
In the case where the import duty is not paid within the time limit prescribed in Article 43, 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.
If the import duty remains unpaid after the imposition of the delinquent fee for thirty consecutive days, the ruling prescribed in paragraph two of the preceding Article shall apply mutatis mutandis.
Article 75
When Customs conducts an investigation in accordance with the provisions of Paragraph Two of Article 13 and Article 42, the person being investigated who evades, interrupts or refuses the investigation or refuses to provide information, attend to the site to accept the inquiry of Customs or provide cooperation in investigation, 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 76
The original duty-payer, present holder of the goods shall pay the payable duty in accordance with Article 55 within fourteen days following the date of receiving the duty memo. In the case where duty is not paid within the prescribed time period, the procedures referred to in Paragraph One of Article 74 shall be undertaken by Customs.
If it is discovered that payment of the customs duty in accordance with Article 55 has not been made, a fine equal to the amount of the duty shall be levied in addition to the customs duty payable.
Article 77
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 this Act 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 may not exceed thirty percent of the amount of customs duty unpaid or recorded on the account.
Article 78
In the case where the finished products or duty-free raw materials of a bonded factory are moved out of the factory, in violation of the provisions of Paragraph Two of Article 59, 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 Act of Customs for the Suppression of Smuggling.
Article 79
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 customs duty was recorded to the date on which the outstanding amount of duty is paid in full. However, the delinquent fee may not exceed 30% of the duty recorded on account.
Under any of the following circumstances, the delinquent fee referred to preceding paragraph 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 natural disaster, accidents or other force majeure, certified by the local fire department 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 natural 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 80
Importation of any article referred to in the provisions of Article 15 of this Act, such article shall be confiscated unless otherwise prescribed in other laws.
Article 81
In the case where the enterprise conducting the customs declaration, transportation, storage, container yard and any other business related to clearance, whereupon proceeding with registration, the application procedure, management or any other required matters regarding on-line transmission or electronic data transmission of clearance information, violates the regulations prescribed in accordance with Article 10, 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 imposition of a fine may be repeated if necessary. In the case that such an enterprise does not rectify its behavior after the imposition of a fine for three consecutive times, a suspension of on-line declaration privileges may be adopted for a period of not more than six months.
Article 82
In the case where the enterprise operating on-line transmission or electronic data transmission network for customs clearance, wherein the business items, charging standards, business hours or any other required matters, violates the regulations prescribed in accordance with Paragraph Five of Article 10, the Ministry of Finance may warn and request such an enterprise to rectify its behavior within a specified time limit or impose a fine of not less than NT$100,000 and not more than NT$500,000. Such an imposition of a fine may be repeated if necessary. In the case that such an enterprise does not rectify its behavior after the imposition of a fine for three consecutive times, a suspension of on-line electronic data transmission privileges may be adopted for a period of not more than six months or the business license may be repealed.
Article 83
In the case where the responsible person of the transportation means for passengers or cargo or the transportation firm entrusted by the responsible person, whereupon proceeding with the importation or exportation clearance, registration change, the certificate application or renewal of the firm, and other required matters, violates the regulations prescribed in accordance with Paragraph Three of Article 20, 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$6,000 and not more than NT$30,000. The imposition of a fine may be repeated if necessary. In the case that such a person does not rectify his or her behavior after the imposition of a fine for three consecutive times, a suspension of importation or exportation declaration privileges may be adopted for a period of not more than six months.
Article 84
In the case where the customs broker violates the regulations prescribed in accordance with Paragraph Three of Article 23, whereupon proceeding with registration change, certificate application or renewal, operation of the declaration business or any other required matters, Customs may warn and request such a broker to rectify his or her behavior within a specified 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. In the case that such a customs broker does not rectify his or her behavior after the imposition of a fine for three consecutive times, a suspension of on-line declaration privileges may be adopted for a period of not more than six months. However, in the case of serious violation, the broker license may be repealed without being limited by the continuous imposition of fines for three times.
In the case where the certified employee of the customs broker violates the regulations prescribed in accordance with Paragraph Three of Article 22, whereupon conducting the business of declaration and examination, endorsement or any other required matters, Customs may warn and request such an employee to rectify his or her behavior within a specified 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 or her behavior after the repeated imposition of a fine for three consecutive times, a suspension of declaration, examination and endorsement privileges may be adopted for a period of not more than six months, or his or her registration may be repealed.
Article 85
In the case where the firm of the means of bonded transportation, whereupon proceeding with registration change, certificate application and renewal, bonded transport use and management or any other required matters, violates the regulations in accordance with Paragraph Two of Article 25, Customs may warn and request such an owner to rectify its 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 its behavior after the repeated imposition of a fine for three consecutive times, a suspension of loading privileges may be adopted for a period of not more than six months, or its registration may be a repealed.
Article 86
In the case where the firm operating a warehouse or container yard, whereupon proceeding with registration change, certificate application and renewal, storage, movement and management of goods and containers and any other required matters, violates the regulations prescribed in accordance with Paragraph Two of Article 26, Customs may warn and request such a firm to rectify its behavior within a specified 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 for 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 registration may be repealed.
Article 87
In the case where the firm conducting an express delivery business, whereupon proceeding with the clearance of express consignments, sorting of goods or any other required matters, violates the regulations prescribed in accordance with Paragraph Two of Article 27, Customs may warn and request such a firm to rectify its behavior within a specified 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 for three consecutive times, a suspension of the express consignments clearance privileges may be adopted for a period of not more than six months.
Article 88
In the case where the firm operating the bonded warehouse, whereupon proceeding with registration change, certificate application or renewal, installation and equipment of the bonded warehouse, storage of goods, management or any other required matters, violates the regulations prescribed in accordance with Paragraph Four of Article 58, Customs may warn and request such a firm to rectify its behavior within a specified time limit or impose a fine of not less than NT$6,000 and not more than NT$30,000. Such an imposition of a fine may be repeated if necessary. In the case that such a firm does not rectify its behavior after the repeated imposition of a fine three for consecutive times, a suspension of bonded goods storage or monthly declaration privileges may be adopted for a period of not more than six months, or its registration may be repealed.
Article 89
In the case where the firm operating the bonded factory, whereupon proceeding with registration change, certificate application or renewal, installation and equipment of the bonded factory, processing, management and clearance of bonded goods, payment procedures for duty payable on goods distributed domestically and any other required matters, violates the regulations prescribed in accordance with Paragraph Three of Article 59, Customs may warn and request such a firm to rectify its behavior within a specified time limit or impose a fine of not less than NT$ 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 for three consecutive times, a suspension of part or whole of bonded factory business or monthly declaration privileges may be adopted for a period of not more than six months, or its registration may be repealed.
Article 90
In the case where the firm operating the logistics center, whereupon proceeding with registration change, certificate application and renewal, management of goods, clearance or any other required matters, violates the regulations prescribed in accordance with Paragraph Four of Article 60, 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 for three consecutive times, a suspension of goods storage or monthly declaration privileges may be adopted for a period of not more than six months, or its registration may be repealed.
Article 91
In the case where the firm operating a duty-free shop, whereupon proceeding with registration change, certificate application and renewal, management of goods, clearance, distribution and sales or any other required matters, violates the regulations prescribed in accordance with Paragraph Four of Article 61, Customs may warn and request such a firm to rectify its behavior within a specified 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 for three consecutive times, a suspension of the duty-free shop operation may be adopted for a period of not more than six months, or its registration may be repealed.
Article 92
In the case where the firm applying for a refund and/or offsetting of customs duty for exported goods, whereupon applying for a refund or offsetting of customs duty, and in proceeding with account records for customs duty on raw materials or any other required matters, violates the regulations prescribed in accordance with Paragraph Five of Article 63, Customs may suspend the account recording privileges for a period of not more than six months.
Article 93
In the case where the firm liable for a deposit pursuant to Article 20, Article 25, Article 26, Article 58 and/or Article 60 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 94
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 Act of Customs for the Suppression of Smuggling and other relevant laws.
CHAPTER VI IMPLEMENTATION
Article 95
The following amounts leviable or recoverable under this Act shall be handed over to the relevant authority for compulsory execution if the following amounts are not paid within a given time limit, unless otherwise provided for in this Act:
(1) customs duty, delinquent fees, late fees and interest.
(2) fines imposed under this Act;
(3) expenses incurred in the disposal, sale or destruction of the goods for which there are no proceeds or the proceeds are insufficient to cover the expenses, provided that the duty-payer was notified prior to such a disposal, sale or destruction;
If the duty-payer wishes to file a protest against the payment of customs duty or other levies as provided for in the preceding paragraph, the procedure prescribed in Articles 45 to 47 shall apply mutatis mutandis.
The duty-payer may apply for a suspension of 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 45 and has provided an appropriate guarantee. However, a guarantee shall not be required again if the goods have already been provided an appropriate guarantee for release according to Article 45.
The payment of customs duty referred to in paragraph one shall take precedence over all claims filed by ordinary creditors.
Article 96
Customs shall order the duty-payer to return the prohibited goods abroad within a prescribed period. If the duty-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 national treasury.
If goods subject to disposal under the provisions of the preceding paragraph, Paragraph Two of Article 73 and Paragraph Two of Article 74 cannot be sold and are required to be destroyed, the duty-payer shall be notified of the need to destroy such goods by himself or herself, under Customs supervision, within the prescribed period. In the event of a failure to follow the terms of such notification by the duty-payer, such goods shall be destroyed by Customs, with any expenses associated with such destruction being borne by the duty-payer and paid to Customs within the prescribed period.
Where it is confirmed by Customs that the duty-paid or released goods are subject to return within a given time limit in accordance with Paragraph One and the duty-payer can not return the goods abroad, Customs may confiscate the guarantee money or order the duty-payer to pay the value of the goods.
CHAPTER VII SUPPLEMENTARY PROVISIONS
Article 97
With regards to the warehouse, container yard, bonded warehouse and/or logistics center registered in accordance with this Act, 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.
Regulations regarding matters, scope, required conditions and any other required matters pursuant to Paragraph One shall be prescribed by the Ministry of Finance.
Article 98
The duty-payer or exporter and any related person shall maintain all records, documents, accounting books and relevant computer files or data bases relating to the imported or exported goods for five years beginning on the date following that on which the imported or exported goods were released.
Article 99
Any duty leviable under this Act that is under the amount announced by the Ministry of Finance may be exempted.
Article 100
Where customs affairs are otherwise prescribed in an agreement signed between the government of the Republic of China and another country or region, such prescription shall apply.
Article 101
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. Regulations governing the items, objects, conditions, amount, standards, methods and procedures of such charges shall be prescribed by the Ministry of Finance.
Article 102
Enforcement rules of this Act shall be prescribed by the Ministry of Finance.
Article 103
This Act shall take effect on the date of its promulgation.